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) 715-284-5385 • 800-370-4607 Outage Only Number 855-222-DARK (3275) www.jackelec.com Your Touchstone Energy® Partner
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