Call and Notice
Agenda
of Annual Meeting of the
Jackson Electric Cooperative,
Black River Falls, Wis.
Jackson Electric Cooperative
78th Annual Meeting
of the Members
March 31 • 7 p.m.
Lunda Theatre, Black River Falls
As president of the Jackson Electric Cooperative (hereinafter
called the “Cooperative”), I do hereby call and give notice of
the Annual Meeting of the members of the Cooperative for
the year 2014 to be held at the Lunda Theatre in the City of
Black River Falls, Wisconsin, on Tuesday, March 31, 2015,
commencing at 7:00 p.m. for the purpose of acting upon the
following matters:
1. The reading of the unapproved minutes of the previous meeting of the members of the Cooperative and
the taking of necessary action thereon;
2. The reports of officers, directors, employees and committees;
3. Ratification of the report of the District Elections;
4. Such other further business as may come before the
meeting or any adjournment thereof.
Dated on this second day of March, 2015.
Gary L. Woods
Table of Contents
Notice of annual meeting.............................inside front cover
Agenda.........................................................inside front cover
CEO & president’s welcome......................................... page 4
Minutes of 2014 Annual Meeting................................. page 5
Balance sheet.............................................................. page 28
Comparative revenue & expense report...................... page 29
Audit report................................................................. page 29
Cost of power & operating expense............................ page 29
Fiscal year expenses.....................................inside back cover
Your cooperative’s growth...........................inside back cover
Kilowatt hour sales......................................inside back cover
Annual meeting rules............................................. back cover
Jackson Electric Cooperative directors.................. back cover
Operating personnel............................................... back cover
Doors open at 6:15 p.m.
Registration and refreshments
Call to Order....................................... Gary Woods, President
Invocation........................................................... Stanley Gran
Presenting of Colors...................... American Legion Post 200
Pledge of Allegiance...........................................All Members
Welcome............................................. Gary Woods, President
Youth Ambassador Scholarship Award.......... Kevin Babcock,
General Manager/CEO
Reading of Notice of Meeting.......... David Peasley, Secretary
Establish a Quorum.......................... David Peasley, Secretary
Reading of 2014 Meeting Minutes.. David Peasley, Secretary
President’s Report................................................ Gary Woods
Mike Anderson Memorial............................ Anderson Family
General Manager/CEO Report........................ Kevin Babcock
Guest Speaker........................................ Beata Kalies, WECA
Ratification of Directors..................... Niles Berman, Attorney
Elected Directors to be Ratified:
District 4.............................................................. Chris Curran
District 5............................................................ David Peasley
District 7............................................................... Brian Huber
Old Business....................................... Gary Woods, President
New Business...................................... Gary Woods, President
Question & Answer Session
Prize Drawings
Adjournment
Door Prizes!
l Big-screen TV
l 15 $100 cash prizes
$10 energ y
credit for every
registered
membership in
attendance!
THIS MAGAZINE COULD BE
YOUR SHOT AT A BIG PRIZE!
Bring it for a chance to win a $50 energy credit!
Welcome to
Jackson Electric Cooperative’s
78th Annual Meeting
Kevin Babcock
General Manager/CEO
A
s some of you may know, smudged eyeglasses
make objects difficult to see. It is sometimes
complicated to recognize what lies ahead, not
to mention notice the object right in front of you. When
the vision isn’t clear, a bit of madness or confusion may
occur. This year’s annual meeting will highlight your cooperative’s values: community, innovation, and accountability. With focus on those three values, even through
industry madness, the cooperative’s vision is clear—
members are #1.
Government has played a role in the electric industry since before the inception of the
Rural Electrification Act in 1935.
Before that time, electricity
was not available in the rural
areas. The Act provided federal
loans for the installation of electrical distribution systems to serve
rural areas. From there, members formed electric utility
cooperatives; hence, the reason Jackson Electric Cooperative exists. Rural electrification improved the lives of the
cooperative’s founders and the generations that continue
to follow.
The industry continues to be challenged with
government regulations that could affect members’
pocketbooks. In 2014, more than 1.1 million advocates
submitted comments to the Environmental Protection
Agency (EPA) opposing the EPA’s proposals that could
potentially shut down coal-fired power plants and restrict
the construction of new coal-fired power plants. Jackson
Electric Cooperative members submitted nearly 2,000 of
those comments. Clearly, electric cooperative members
are concerned their quality of life and electric reliability
may be sacrificed by these proposed regulations.
Sometimes the vision at the federal level is clouded
with madness, confusion, and frustration, but decisions
made at a local level by your cooperative keep focus on
the members. Because Jackson Electric Cooperative is
member-owned, accountability is built in through the
4 • Wisconsin Energy Cooperative News
Gary Woods
President
election of your board of directors. Costs are kept minimal, as we operate as a not-for-profit entity. In 2014,
Jackson Electric Cooperative returned $864,000 in capital
credits to its members. Since the beginning of capital
credit returns, the cooperative returned to its members
nearly $9.7 million. Members have a stake in the cooperative. Decisions are made on your behalf to protect your
investment.
Recognizing the need to embrace innovation as
a vital piece to the cooperative’s success is sometimes
complicated. Technology is ever changing, and keeping abreast of new applications and skills is essential to
the cooperative’s growth. If new technology is not embraced, we chance lagging
behind. Electric cooperatives are known
to be innovators. In 2014, Jackson Electric
Cooperative converted service territory maps
to iPads. Easy access for the line crew to the maps
equates to decreased outage response time. Continued
line maintenance plays a crucial role in electric reliability.
A mobile bill-paying app is available for members who
use Android or Apple based smartphones, a convenient
bill paying option for members on the go.
Jackson Electric Cooperative is passionate about the
communities it serves. Your directors and employees are
your neighbors. It is the cooperative’s desire to revitalize
the quality of life for members with the support of building successful communities. The cooperative is active in
supporting youth education and the promotion of energy
efficiency for more comfortable living. Youth and adults
continuing their education received $7,500 in scholarships in 2014. Energy efficiency incentives totaled more
than $98,000.
Sometimes through madness and confusion, eyeglasses are smeared. Jackson Electric Cooperative will
keep values in focus; the vision continues on the members. Thank you for attending your 78th annual meeting.
2014 Annual Report
77th Annual Meeting of Jackson Electric Cooperative • March 11, 2014, at 7 p.m.
1. The 77th Annual Meeting of Jackson Electric Cooperative was held at the Lunda
Theatre in Black River Falls, Wisconsin, on March 11, 2014, at 7:00 p.m. President
Gary Woods called the meeting to order. Other board members present were Dan
Smrekar, Dave Peasley, Jerry Huber, Junior Jacobson, Roger Hansen, Stan Gran,
Brian Huber and Chris Curran. Niles Berman, attorney, was also present.
2. The invocation was given by Stan Gran.
3. Following the Presenting of the Colors by American Legion Post 200, all in
attendance recited the Pledge of Allegiance led by Ken Schoolcraft.
4. Gary Woods welcomed all in attendance.
5. The Youth Ambassadors were introduced and Greg McFarland presented the
Youth Ambassador Scholarship to Brandi Shramek, daughter of Pat and Cindy
Shramek.
6. The reading of Notice of Call and Notice of Meeting was conducted by Secretary
Dave Peasley. It was announced that a quorum was present and the meeting would
proceed.
7. Motion was made and seconded that Secretary Dave Peasley dispense with the
reading of the minutes for the 2013 annual meeting and approve as submitted.
Motion carried unanimously.
8. President Woods shared that the Cooperative had a successful year financially in
2013 and was able to give back to the members in the form of capital credits. He
stressed that members should not see a rate increase in 2014. He discussed the
monetary savings from the Cooperative’s load management programs. Continuing
on he outlined power line maintenance and the upcoming new line construction.
He also mentioned the newly constructed solar array at the Cooperative’s
headquarters.
9. The Mike Anderson Memorial of $1,000 was presented to the Jackson County
Interfaith Caregivers by the Anderson family on behalf of Jackson Electric
Cooperative.
10. General Manager/CEO Greg McFarland introduced the board of directors. He also
recognized the employees. He discussed regulations that could potentially increase
the cost of wholesale power by 75 to 80 percent. Thirty-seven-and-a-half percent
of the nation’s energy and 87-1/2 percent of the member’s energy comes from
coal. Proposed regulations will halt construction of new coal-fired power plants
and possibly shut down existing coal-fired plants. He explained action.coop and
asked members to complete and sign cards that will be sent to the EPA.
11. On a motion duly made, seconded, and carried, the following Resolution was
approved, ratifying the director elections held for Districts 2, 3, and 8:
BE IT RESOLVED, that the election of Junior Jacobson as Director for
District No. Two (2) on January 15, 2014, for a three-year term; the election
of Jerry Huber as Director for District No. Three (3) on January 13, 2014, for
a three-year term; and the election of Dan Smrekar as Director for District
No. Eight (8) on January 21, 2014, for a three-year term; be and the same are
hereby ratified and confirmed.
12.Attorney Niles Berman described the proposed Article and Bylaw Amendments,
including proposed new provisions on annual meeting rules, arbitration of
disputes, and indemnification of officers and directors. The proposed amendments
had also been included in the meeting Notice. Attorney Berman described several
corrections to the Bylaw amendments as published: he described corrected
references to the board in the amendments to Article II, Sections 6 and 7; and he
described corrected renumbering of Articles X – XV. He asked if any member
wished to have any of the proposed amendments considered separately for
purposes of discussion or action, and there was no such request. Then, on a
2014 Annual Report
motion duly made, seconded, and carried unanimously, the members adopted the
following Resolution approving the proposed amendments to the Restated Articles
of Incorporation and to the Bylaws as incorporated in the Notice but with the
corrections as described to the meeting:
WHEREAS, the Board of Directors of Jackson Electric Cooperative
regularly reviews the Restated Articles of Incorporation and the Bylaws of
the Cooperative to ensure that they continue to conform to applicable law and
current practices and encourage efficiency in the operation and governance of
the Cooperative; and
WHEREAS, in the Board’s judgment certain amendments to the Articles and
Bylaws would advance those goals; and
WHEREAS, those proposed amendments have been included in the Notice of
this meeting and are attached to and incorporated in this Resolution; and
WHEREAS, the members at this 2014 annual meeting of the Cooperative
concur that adoption of those amendments, including corrections described to
the meeting, would serve the best interest of the Cooperative and its members,
THEREFORE BE IT RESOLVED, that the attached amendments to the
Restated Articles of Incorporation and Bylaws, as corrected, be and they hereby
are adopted, effective as of the date of this meeting on March 11, 2014.
13. Attorney Berman then reported on the recommendation of the redistricting
committee. On a motion duly made, seconded and carried, the members adopted
the following Resolution:
WHEREAS, Article III, Section 6 of the Bylaws charges the Board of
Directors with responsibility to re-district to assure reasonably equal
representation to all members; and
WHEREAS, the President appointed a committee to study the current districts
and determine if any changes are called for; and
WHEREAS, the Board of Directors has considered the report of the committee
and recommends the changes to the districts described to this meeting,
THEREFORE, BE IT RESOLVED, that to further the goal of assuring
reasonably equal representation, and pursuant to the recommendation of the
Board of Directors, the realignments of the director districts be and hereby
are approved for all elections or appointments occurring after the date of
this meeting and until any further realignment of the districts pursuant to the
Bylaws.
14. Old Business – none
15. No New Business was brought before the meeting. President Woods stated it is the
members who make the Cooperative successful and strong.
16. One member commented on the impact of expected EPA regulations. No questions
were asked.
17. A $50 energy credit was won by Eugene Hart of Black River Falls. The big screen
TV was won by Genell Severson of Hixton. Fifteen members won $100 cash
prizes. Each membership in attendance was given a $10 energy credit to be applied
on their next billing statement.
18. There were 244 registered members in attendance at the meeting; total attending
were 354.
19. Motion was made and seconded to adjourn the meeting. Unanimous. The meeting
adjourned at 8:07 p.m.
David W. Peasley, Secretary
Jackson Electric Cooperative • 5
Jackson Electric Cooperative
Comparative Balance Sheet
(as of April 30, 2014)
What We Have (Assets)
Electric Plant20132014
Electric Property at Cost
$ 38,044,476
$ 38,774,282
Construction in Progress
133,349
239,628
Less Estimated Depreciation 13,733,023 14,637,092
Net Value Electric Property
$ 24,444,802
$ 24,376,818
Other Assets and Deferred Charges
Cash-General & Operating Funds
$
Other Investments
Amount Due From Members for Electric Service
Line Material Inventories
Prepayments & Deferred Charges
Total Other & Deferred
$
Total Assets
$
1,252,167
$ 1,169,514
9,297,529 9,755,542
1,712,854 1,831,139
546,573
578,508
1,106,756
954,353
13,915,879
$ 14,289,056
38,360,681
$ 38,665,874
What We Owe (Liabilities)
Long Term Debt
2013
2014
Total RUS Construction Advances
$ 11,925,000
$ 11,925,000
Payments on Principal (Cumulative)
(7,772,269) (7,938,205)
Net RUS Loan Obligation
4,152,731
3,986,795
Cooperative Finance Corp.
7,682,813
7,334,210
Dairyland Power Co-op.
163,850
145,095
Federal Financing Bank 10,692,495 10,812,786
Other Long Term Debt
400,000
400,000
Total Long Term Debt
$ 23,091,889
$ 22,678,886
Other Liabilities & Credits
Notes Payable
$
0
$
0
Amounts Due Suppliers (power, materials, etc.)
1,010,635
1,012,896
Deposits Made by Consumers
173,651
170,139
Accrued Taxes, Insurance & Payroll
131,125
131,774
Accrued Interest & Other Liabilities
749,586 1,143,838
Miscellaneous Deferred Credits
603,458
29,910
Total Other Liabilities and Credits
$ 2,668,455 $ 2,488,557
What We Own (Net Worth)
Memberships Fees & Other Capital
$
778
$
778
Capital Credits Distributed 11,191,769 12,067,333
Capital Credits Assignable 1,407,790 1,430,320
Total Members’ Equity (Net Worth) 12,600,337 13,498,431
Total Liabilities
28 • Wisconsin Energy Cooperative News
$ 38,360,681
$ 38,665,874
2014 Annual Report
Comparative Revenue & Expense Report
For the Fiscal Year Ending April 30, 2013 & 2014
Our Revenues
Electric Energy Sales
Total Operating Revenue
2013
$19,610,958
$19,610,958
2014
$ 19,981,049
$ 19,981,049
Our Expenses
Cost of Power Purchased
$ 13,300,652
$ 13,583,156
Maintenance & Operations of Lines 1,386,048 1,653,687
Consumer Accounts Expense
425,703
448,911
Customer Service & Informational Expense
216,977
252,000
General Office Salary & Expense
542,282
555,222
Board of Director Expense
92,181
97,105
Miscellaneous & Other General Expense
505,038
494,414
Estimated Depreciation 1,256,198 1,257,336
Taxes
200,990
205,660
Interest & Loan Expense
903,556
904,455
Total Cost of Electric Service
$18,829,625
$ 19,451,946
Net Operating Margins
$
781,333
Other Margins
Capital Credits
Net Non-Operating Margins
$
932,287
Total Patronage Capital for Distribution
$
1,713,620
$
231,426
762,106
993,532
$ 1,522,635
Cost of Power & Operating Expense Growth
Audit Report
T
2014 Annual Report
529,103
214,365
717,922
he Rural Utilities Service
(RUS) and the National
Rural Utilities Cooperative
Finance Corporation (CFC)
requires an annual independent
audit be made of the Cooperative’s records. Copies of the
complete audit are sent to RUS
and CFC and are available at
the office of the Cooperative
for member’s review. The auditing firm of Bauman Associates from Eau Claire, Wis. will
be performing our next audit
on April 30, 2015.
$
(fiscal years)
16,000,000
14,000,000
12,000,000
10,000,000
Dollars
8,000,000
6,000,000
4,000,000
2,000,000
0
1999
Cost of Power
2004
2009
2014
Operating Expenses & Margins
(More financial reports on the inside back cover)
Jackson Electric Cooperative • 29
Fiscal Year Expenses/Dollar of Revenue -‐ 2014 Interest
4.53%
Operating
Margins
2.65%
Fiscal Year Expenses/Dollar of Revenue -‐ 2013 Operating
Margins 3.98%
Interest 4.61%
Cust. Service &
Sales 3.51%
Admin. &
General 5.74%
Cust. Service &
Sales 3.28%
Admin. &
General 5.81%
Depreciation
6.29%
Depreciation
6.41%
Line Maint. &
Construction
8.28%
Line Maint. &
Construction
7.07%
Power Cost
67.98%
Taxes 1.03%
Power Cost
67.82%
Taxes 1.02%
Your Cooperative’s Growth
(January 1–December 31)
2014 2009 2004 19991994
Number of members as of December 31
6,252
6,150
5,813
5,203
4,704
Miles of line as of December 31
1,461
1,418
1,342
1,263
1,191
Connected services as of December 31
7,515
7,344
6,897
6,215
5,441
Meters per mile as of December 31
5.14
5.18
5.14
4.92
4.57
Kilowatt-hours (kWh) sold
190,520,706
156,797,551
145,690,681
101,275,994
87,908,819
Cost of power purchased
$13,149,588
$10,316,131
$5,798,661
$3,807,848
$3,374,136
Total energy sales for year
$19,756,876
$15,125,876
$10,028,939
$7,369,900
$6,100,505
Ave. kWh sold to residential
consumer per month
1,012
1,006
998
992
899
$149.08
$129.10
$89.49
$75.62
$74.36
Ave. bill per residential
consumer per month
Kilowatt Hour Sales
(calendar years)
200,000,000
180,000,000
160,000,000
kWh 140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
1994
1999
2004
2009
2014
2014 Annual Report
Annual Meeting Rules
1. The meeting will be conducted in accordance
with Roberts Rules of Order Newly Revised
edition.
2. Any speaker must be recognized by the Chair
before speaking.
3. Only members and duly registered guests will
be recognized by the Chair; each person so
recognized must give his or her name.
4. Unless otherwise approved by the Chair, those
recognized are to limit their questions and
comments to three minutes, with any rebuttal
limited to two minutes.
5. Questions and comments from members and
duly registered guests will be in order during
old and new business sessions, and at the conclusion of the officer reports, if invited.
6. No resolution affecting Jackson Electric Cooperative may be submitted by any member,
unless written copies have been received by
Jackson Electric Cooperative by February 13,
2015. This will permit time for review by the
Jackson Electric Cooperative Board of Directors to make its recommendation to the meeting
as to approval or rejection.
7. No signs or handouts will be permitted within
the building of the place of the meeting, except such handouts as required for the official
conduct of the Annual Meeting. No handouts
made available outside of the building will use
the name of the Cooperative, its letterhead or
logo to imply that the Cooperative supports or
opposes any resolution.
Jackson Electric
Cooperative Directors
President Gary Woods.......................................District 9
Vice President Jerry Huber...............................District 3
Secretary/Treasurer David Peasley...................District 5
Stanley Gran......................................................District 1
Junior Jacobson.................................................District 2
Chris Curran......................................................District 4
Jerry Wagner.....................................................District 6
Brian Huber.......................................................District 7
Daniel Smrekar.................................................District 8
Operating Personnel
Kevin Babcock – General Manager / CEO
Jeff Cook – Finance Manager
Ron Blado – Member Services Manager
Eric Steien – Line Superintendent
Dalton Berg
Pam Bjerke
Carol Blaken
Steve Bucholz
Matt Bush
Brian Dolesy
Don Fortun, Jr.
Jerel Gunning
Jesse Hansen
Carmen LaGaisse
Dan McKevitt
Scott Peterson
David Ripp
Brian Schultz
Steve Tenner
Steve Wold
Hazy Wood
Bertina Zager
8. No demonstrations shall be held within the
building of the place of the meeting.
Annual Meeting Voting Procedures
1. Voting may be by voice vote (one vote per
membership)
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