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Legislature expected to bring big changes

When the 110th General Assembly gavels into session on January 10th, a number of issues of importance to electric co-ops stand to become major points of focus for lawmakers.  After the first week’s formalities and announcements of committee assignments, there will be a two-week recess to move offices and re-organize. Then, the session will kick into high gear as Governor Haslam will deliver his State of the State address on the first day that Members return to Nashville.

Currently, the State has a budget surplus of over $1 billion. The State of the State typically focuses on the Governor’s budget priorities, and this year’s address should provide no shortage of ideas on how to budget those surplus funds. The following day, January 31, will be TECA’s annual Day on the Hill and Legislative Reception. Attendees will witness first-hand the collective reaction of lawmakers to the new spending priorities.

In addition to passage of a budget, the Governor has publicly indicated on several occasions that he intends to focus on three large issues: transportation funding, broadband and the internet sales tax. Broadband has been a hotly debated topic at the Capitol for nearly a decade; however, most of the controversy has surrounded the role(s) of municipal electric utilities and existing private sector broadband providers. No significant legislation has passed, and pressure on lawmakers continues to increase to find solutions to the lack of adequate access to broadband in rural areas.

Meanwhile, both the Department of Economic and Community Development and the Tennessee Advisory Commission on Intergovernmental Relations have conducted studies to gauge the extent of the problem. ECD’s study found that 34 percent of rural Tennesseans lack access to basic broadband services, and both studies concluded that electric cooperatives are well positioned to help solve the problem but face legal restrictions from doing so.

Governor Haslam convened an inter-agency task force to discuss the topic and heard presentations from many interested parties, including electric cooperatives. While the final language is not yet available, it is expected that the Governor will propose comprehensive legislation to the General Assembly for consideration this year. We expect this legislation will include repealing laws that currently prohibit electric cooperatives from offering broadband internet service.

This would be the most significant and far-reaching legislation involving electric cooperatives in decades. Other broadband bills, in addition to the one brought by the Administration, could be introduced by other members of the Legislature.

While the legislative process is always difficult to predict, there should be a number of other bills that are of interest to co-ops. Legislation concerning net metering and third-party solar financing are anticipated to return in 2017. Representative John Ragan (R-Oak Ridge), should re-file his bill to create a Tennessee Energy Policy Council. The Tennessee Municipal Electric Power Association is expected to again pursue changes that would require a public referendum in any instance of the sale of a municipal electric plant. We will be watching for any potential state-level reaction to Nashville’s passage of a “One-Touch Make Ready” ordinance (also called “Climb Once”) regarding the process for making new pole attachments.  Increased interest in small-cell technology by the wireless phone industry could result in pole-attachment related legislation.

TECA’s Government Affairs team is prepared and looking forward to working with co-ops across the state through what could be a history-making legislative session.

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TECA celebrates 75th anniversary at annual meeting in Nashville

Tennessee Electric Cooperative Association celebrates 75th anniversary at annual meeting in Nashville

NASHVILLE – “Unified” was the theme of the 75th annual meeting of the Tennessee Electric Cooperative Association, held Sunday, Nov. 20, through Tuesday, Nov. 22, in Nashville. More than 350 electric cooperative leaders from across the state attended the event, and were reminded that they best serve consumer-owners when co-ops work together for a common purpose.

“Anniversaries present the unique opportunity to examine our past,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “The leaders who formed our co-ops and this association were visionaries, and their accomplishments merit our gratitude and celebration. TECA is using this occasion as an opportunity to refine our focus and prepare the association to meet the challenges of the next 75 years through the leadership, advocacy and support we provide.”

The first Dr. K. T. Hutchinson award was presented to Sen. Ken Yager in honor of his courageous support of electric cooperatives and rural Tennessee. Dr. Hutchinson was instrumental in the formation of electric co-ops in Tennessee in the 1940s and served as the first president of the Tennessee Electric Cooperative Association.

“Tennessee’s electric cooperatives have no better friend than Sen. Yager,” says Mike Knotts, vice president of government affairs for the Tennessee Electric Cooperative Association. “He is an enthusiastic supporter of rural Tennessee.”

During the meeting, elections were held for positions on the association’s board of trustees. Michael Watson, general manager of Duck River Electric Membership Corporation in Shelbyville; Larry Storie, a director for Volunteer Energy Cooperative in Decatur; and Steve Sanders, a director for Gibson Electric Membership Corporation in Trenton, were elected to four-year terms.

“Congratulations to those honored with leadership positions,” says Callis. “Their talents and ideas will be valuable as we continue our mission to serve Tennessee’s electric cooperatives and their members.”

The second annual TECA Top Tenn Communications Awards were presented during the event. Duck River Electric Membership Corporation received an award for Best External Newsletter or Magazine Section; Appalachian Electric Cooperative, Best Internal Newsletter; Cumberland Electric Membership Corporation, Best Website; and Sequachee Valley Electric Cooperative, Best Use of Social Media. Gibson Electric Membership Corporation and Middle Tennessee Electric Membership Corporation each received Awards of Excellence in the Wild Card category, with Duck River Electric Membership Corporation, Sequachee Valley Electric Cooperative and Appalachian Electric Cooperative earning Wild Card Awards of Merit.

“It is important for electric cooperative consumer-owners to be educated and informed,” says Robin Conover, TECA’s vice president of communications and editor of The Tennessee Magazine. “We honor these winners for telling the electric cooperative story in a professional way across multiple platforms.”

The Tennessee Electric Cooperative Association provides legislative and communication support for Tennessee’s 23 electric cooperatives and publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.

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Tennessee crews to assist with Matthew restoration

Volunteer lineworkers from eight electric cooperatives to participate in restoration effort following massive hurricane

NASHVILLE – More than 80 electric cooperative lineworkers from Tennessee are heading to South Carolina and Florida to restore power to those affected by Hurricane Matthew.

“Eight electric cooperatives in Tennessee are sending personnel and equipment to Florida and South Carolina to assist electric cooperatives impacted by this massive storm,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “We are proud of these volunteers who are leaving their families to help others in need. This will be hard, dangerous work in difficult conditions.”

Electric cooperative organizations across the Southeast began developing response plans earlier this week, and details have been adjusted as the exact path of the storm and the extent of the damage became more certain. This cooperation is enabled through mutual-aid agreements among electric cooperatives.

Crews will be assisting Berkley Electric Cooperative near Charleston, South Carolina, and Clay Electric Cooperative in Keystone Heights, Florida.

“One day, we will need help,” says Callis, “and when that tornado or ice storm arrives, we know that this assistance will be repaid. Cooperation is one of the founding principles of electric cooperatives. It is what makes us different from other utilities.”

The Tennessee Electric Cooperative Association provides legislative and communication support for Tennessee’s 23 electric cooperatives and publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.

 

Assisting Clay Electric Cooperative in Keystone Heights, Florida:

  • 11 lineworkers from Appalachian Electric Cooperative, New Market
  • 12 lineworkers from Cumberland Electric Membership Corporation, Clarksville
  • eight lineworkers from Duck River Electric Membership Corporation, Shelbyville
  • eight lineworkers from Fayetteville Public Utilities, Fayetteville
  • 12 lineworkers from Middle Tennessee Electric Membership Corporation, Murfreesboro
  • 15 lineworkers from Upper Cumberland Electric Membership Corporation, Carthage

 

Assisting Berkley Electric Cooperative near Charleston, South Carolina:

  • 10 lineworkers from Plateau Electric Cooperative, Onieda
  • 11 lineworkers from Sequachee Valley Electric Cooperative, South Pittsburg

 

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Tennessee’s electric cooperatives celebrate National Co-op Month

Being part of a cooperative means being part of something special. Tennessee’s electric cooperatives are celebrating National Cooperative Month in October, along with 40,000 other cooperative businesses serving more than 120 million people nationwide.

“Cooperatives Build” is the theme of this year’s National Cooperative Month. “There are so many ways that cooperatives help to build a stronger rural America,” says Trent Scott, vice president of corporate strategy for the Tennessee Electric Cooperative Association. “Tennessee’s electric co-ops have a significant impact on the communities we serve in ways that go far beyond the delivery of energy.”

Consider these ways that co-ops build:

Cooperatives Build Trust

Most co-ops strive to adhere to seven key cooperative principles, which combine to help build trust between the co-op, its members and the community. For example, the first principle is Voluntary and Open Membership, which means that we are a voluntary organization open to all people to use our services and willing to accept the responsibility of membership. The second principle, Democratic Member Control, gives members a voice in the cooperative’s policies and decisions. Through the fifth principle, Education, Training and Information, co-ops enable members to contribute to the development of our cooperative.

Cooperatives Build Community

The seventh cooperative principle is Concern for Community. Cooperatives work for the sustainable development of their communities through employee involvement in local organizations, through charitable contributions to community efforts and through support for schools.

Cooperatives Build Jobs

Cooperatives generate jobs in their communities, keep profits local and pay local taxes to help support community services. Cooperatives often take part in community improvement programs, ensuring that everyone has an opportunity to benefit from the cooperative experience. Tennessee co-ops employee more than 2,600 employees across the state, creating many technical and professional career opportunities otherwise unavailable in rural communities.

For more information, visit www.coopmonth.coop.

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Why we celebrate cooperatives

By Adam Schwartz

Every October, cooperatives from all sectors across the country celebrate National Cooperative Month. The purpose of this annual celebration is to recognize the cooperative difference and remind co-op members of the purpose and impact of the nation’s electric co-ops.

I must admit that occasionally, I too have been somewhat cynical of the many different “days” and “months” that are celebrated, but National Cooperative Month is truly an opportunity to celebrate.

Celebrating National Cooperative Month informs others about our unique business model, which is based on the Seven Cooperative Principles: Voluntary and Open Membership; Democratic Member Control; Members’ Economic Participation; Autonomy and Independence; Education, Training and Information; Cooperation Among Cooperatives; and Concern for Community.

For co-op employees and members that are familiar with the principles, the month of October is a great opportunity to renew our connection to each other and the purpose of our co-op. In the U.S., there are more than 29,000 co-ops serving in every single industry. Many co-ops from different sectors join together during the month of October to educate members in the community about cooperatives.

There are more co-ops in our local community than most people realize. Ace Hardware, True Value, Do It Best Hardware and credit unions are all co-ops. Co-ops are even represented on the shelves at our local grocery stores, such as Land O’Lakes, Welch’s, Organic Valley, Cabot Cheese, Sunkist, Ocean Spray and more.

According to the latest data, more than 130 million people belong to a co-op in the U.S. alone, and co-ops employ more than 2 million Americans.

This speaks to the heart of why we must take every opportunity to celebrate and teach others about the cooperative business model. So, plan your own co-op celebration by purchasing co-op products, look to do business with co-ops right here in our local community and be an active member of your local electric co-op.

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From the front lines to power lines

Electric co-ops care about veterans

By Anne Prince

Electric co-ops have long had a special affinity for veterans. Perhaps because they are both so closely aligned in outlook, focusing on service, mission and country. Maybe it’s because a disproportionate number of veterans come from rural communities and return to their hometowns following active duty. Or, maybe it’s due to the shared work ethic of teamwork, cooperation and a “get it done” attitude. Most likely, it is all of the above.

Network of caring

Tennessee’s 24 electric co-ops are among the more than 900 electric co-ops across the country to support and honor our nation’s veterans of all generations. We are grateful to have veterans within our ranks, and we are proud to serve veterans and their families within our local community. In addition to providing safe, reliable and affordable electricity, we care for the veteran community in a variety of ways.

We are not alone in our efforts to honor and serve veterans. As part of our national network of electric cooperatives, spanning 47 states and covering 75 percent of the nation’s landmass, there are countless programs that our family of co-ops has initiated. At the national level, we support the “Serve our Co-ops; Serve Our Country” program, a nationwide initiative aimed at employing and honoring veterans, military service members and their spouses. This program came with a great vision of forming a national coalition with the shared goal of hiring veterans into co-op jobs across rural and suburban America and setting them up for success in their local communities.

As part of a co-op veteran outreach effort, America’s electric cooperatives are working closely with federal partners, including the Department of Energy, Department of Labor, Department of Defense, Veterans Administration, labor unions and other trade associations on an industry-wide veteran hiring initiative, The Utility Workforce Initiative. Together, these groups are establishing a national employee resource group, Veterans in Energy, which will launch later this year to provide transition, retention and professional development support to military veterans working in the energy industry.

Many programs, one purpose

At the local level, electric co-ops across America have created their own programs tailored to the unique needs of their community. One of our neighbors to the north, Pennyrile Electric Cooperative in Kentucky printed more than 10,000 “thank you” cards that members signed and were later delivered to troops on active duty in nearby Ft. Campbell.

Many electric co-ops sponsor “Honor Flights,” enabling veterans from the Korean conflict and WWII to visit war memorials in Washington, D.C. at no charge. In the small town of Fort Dodge, Kansas, Victory Electric Cooperative partnered with the local VFW to create the “Vittles for Vets” program aimed at stocking the food pantry at the Fort Dodge Soldiers Home. Many of the veterans living there and in surrounding communities are on limited incomes, and the food pantry helps the veterans meet basic needs.

Other co-ops forge strong partnerships with the military bases in their service territories. In Wyoming and North Dakota, co-op leaders and staff serve on military-civilian boards and committees that support activities initiated by their respective bases.

While the activities may differ, a commitment to supporting and caring for veterans is apparent at every electric co-op across this great nation. Tennessee’s electric cooperatives are proud to be a part of the cooperative network that honors and supports veterans of all ages, ranks and branches of the military.

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Stay focused on safety during harvest

During harvest season, many farmers reap the benefits of advancement in agricultural technology. With the help of GPS auto-steer devices, farmers are able to decrease driver error and maximize productivity. Yet despite these advances, safety risks remain. To help farmers stay out of harm’s way, Safe Electricity shares tips for a safe harvest.

GPS with auto-guidance provides farmers with real-time location data about a field, which can be used for crop planning, map making, navigation assistance and machinery guidance. During harvest, this technology allows drivers to have their hands off the steering wheel as the combine maneuvers itself through the field. Thanks to this technology, farmers can more easily and efficiently maintain accuracy even during low-light conditions, which enhances productivity.

“One critical part of safety around electricity is awareness,” explains Kyla Kruse, communications director of the Safe Electricity program. “It’s important to remember that farm machinery is vulnerable to hitting power lines because of its large size, height and extensions. Being aware of the location of overhead power lines and planning a safe equipment route can help reduce accidents.”

In equipment with auto-guidance systems, less focus is needed on steering, which may lead some drivers to think that they do not need to be as aware of navigation issues. However, even while using a GPS with auto-steering, farm workers need to keep safety in mind and stay focused on their surroundings.

Putting safety first requires alertness, focus and knowledge of potential hazards and safety steps. Varying pass-to-pass accuracy levels and potential issues, such as power poles not being correctly plotted in the system, reinforce the need for drivers to stay focused on the location of the farm equipment while in the field and to be ready to take action if necessary.

Regardless the technology used on the farm, keep the following electrical safety guidelines in mind:

  • Use a spotter when operating large machinery near power lines.
  • Keep equipment at least 10 feet from power lines—at all times, in all directions.
  • Look up and use care when moving any equipment such as extending augers or raising the bed of grain trucks around power lines.
  • Inspect the height of farm equipment to determine clearance.
  • Always set extensions to the lowest setting when moving loads to prevent contact with overhead power lines. Grain augers should always be positioned horizontally before being moved.
  • Never attempt to move a power line out of the way or raise it for clearance.
  • If a power line is sagging or low, contact your local electric cooperative.

If your equipment does make contact with a power line, do not leave the cab. Immediately call 911, warn others to stay away and wait for the utility crew to cut the power.

The only reason to exit equipment that has come into contact with overhead lines is if the equipment is on fire, which is rare. However, if this is the case, jump off the equipment with your feet together and without touching the ground and machinery at the same time. Then, still keeping your feet together, hop to safety as you leave the area.

For more information on electrical safety, visit everydaysafe.org.

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Electrical safety lessons for kids

We all know electricity plays a major role in our everyday lives, and it is a powerful resource that should be respected. Unfortunately, our children often do not understand the dangers of electricity. Tennessee’s electric cooperatives encourage you to share electrical safety tips and lessons with your little ones as often as possible. We also understand their attention spans run short, so here are a few creative ways to get them involved.

Depending on the age of your child, consider designating an “electronics deputy.” The deputy should be responsible for pointing out electronics in your home that are not in use and keeping appliances safe from liquids. Reward your deputy for pointing out overloaded outlets or other potentially dangerous situations.

Emphasize the importance of fire prevention with your children, and create a family fire drill plan as an extra precaution. Incentivize your children by rewarding those who followed the plan and made it safely out of the home.

While it is fun and engaging to turn safety into a game, it is important to ensure your children understand the risks they are facing if they do not practice electrical safety.

One of the most important safety tips you can give your kids is to avoid any downed power lines. In fact, it is best to avoid power lines, transformers and substations in general. A downed power line can still be energized, and it can also energize other objects, including fences and trees. Make sure your kids understand the potential dangers of coming in contact with a downed power line or low hanging wire. And, if they encounter a downed power line, ask them to tell you or another adult to call their local electric cooperative.

Here are a few other safety tips you can share with your kids:

  • Never put metal objects in outlets or appliances.
  • Do not overcrowd electrical outlets.
  • Never mix water and electricity.

No matter how you choose to get your kids interested in staying safe around electricity, your local electric cooperative is here to help. To learn more about being everyday safe, visit everydaysafe.org.

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Co-ops light state fair midway

Cumberland Electric Membership Corporation lineman James Crowder flipped a ceremonial switch to light the midway at the 2016 Tennessee State Fair on Friday, Sept. 9.

CEMC lineman Jame Crowder lights the midway during the opening ceremony of the 2016 Tennessee State Fair.

CEMC lineman Jame Crowder lights the midway during the opening ceremony of the 2016 Tennessee State Fair.

Attendees of the opening ceremony heard from legislators and elected officials, including Nashville Mayor Megan Berry and Robin Conover, editor of The Tennessee Magazine.

“Like the fair, electric cooperatives have a tradition service and innovation,” said Conover. “Our local cooperatives are leaders in their communities and are constantly working to find new and creative ways to better serve their members. Tennessee’s electric co-ops make a significant impact on the state’s rural counties and small towns. We serve more than 2.5 million Tennesseans, and our service areas cover 71 percent of the state. We provide jobs for 2,600 employees and pay more than $63 million in taxes. We also keep the lights on 99.96 percent of the time and invest about $10 million each month in infrastructure. Clearly, we believe each small town and community plays its own vital role in the fabric of Tennessee.”

Co-op linemen from across the state presented “Everyday Safe” demonstrations during the fair, educating students, farmers, first responders and others on the importance of electric safety.

“For more than 150 years, the fair has been a celebration of rural Tennessee life,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “It is where World War I hero Sgt. Alvin York showed his prize Hereford and generations have marked the beginning of autumn. It is an honor for Tennessee’s electric co-ops to be a part of this great event.”

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Callis addresses TVA board, discusses energy efficiency

During the regular TVA board of directors meeting on Thursday, August 25, David Callis, executive vice president and general manager for the Tennessee Electric Cooperative Association, expressed appreciation to the TVA board for viewing energy efficiency as a generated resource. Callis also thanked TVA staff for their support of an energy efficiency program being developed by Tennessee’s electric cooperatives that will help low-income homeowners make needed improvements to their homes.

“Most businesses don’t want you to use less of what they are selling,” said Callis. “But that is what we have been trying to do – you at TVA and us as local power companies – and that is where energy efficiency comes into play.”

“Over the past year and a half, Tennessee’s electric cooperatives have been working closely with the Tennessee Department of Environment and Conservation on a program that has the potential to improve the energy efficiency of hundreds, even thousands, of homes across the valley,” said Callis. “The best part of this program is that it targets families that don’t have the financial resources to make those improvements on their own and are unlikely to qualify for (other) loans.”

“TVA staff has been fantastic,” Callis concluded. “It has been a collaborative process from the beginning.”

 

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Tennessee co-ops make contribution to Louisiana co-op employee fund

More than 40 electric co-op employees in Louisiana have lost their homes following devastating floods. Today, Tennessee’s electric cooperatives made a $10,000 donation to a fund established by the Association of Louisiana Electric Cooperatives to assist co-op employees.

“On multiple occasions, Louisiana co-ops have enthusiastically answered our call for help following storms and other events, and our thoughts and prayers are with them this week,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “We encourage co-ops across the nation to join us in supporting Louisiana co-ops. Co-op Nation is strongest when we support one another.”

The Tennessee Electric Cooperative Association provides legislative and communications support for Tennessee’s 23 electric cooperatives and publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.

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Co-ops pull together at Super Pull

Tens of thousands of people attended the 2016 Lions’ Club Super Pull of the South in Chapel Hill on Friday and Saturday, July 22 and 23. The event was sponsored by the Touchstone Energy Cooperatives of Tennessee and TECA.

More than 70 volunteers from Tennessee’s Touchstone Energy Cooperatives volunteered to make the event a success. At the Touchstone Energy Cooperatives of Tennessee booth, members registered to win a riding lawn more and learned about electric safety and efficiency. Visitors could win tubes of caulk, LED lightbulbs or receptacle gaskets while learning about energy efficiency and TVA’s eScore program. The Touchstone Energy hot air balloon team flew over the stands with the American flag during the opening ceremony and gave tethered rides each evening.

“I was very impressed by the spirit of cooperation and community commitment demonstrated by our volunteers. The support was tremendous,” says Steve Oden, director of member services for Duck River EMC. “We thank everyone who spent two hot days under the Tennessee Touchstone Energy Electric Cooperatives tent or helping with the hot air balloon.”

“It was encouraging to see our co-ops work together on this event,” says Trent Scott, vice president of corporate strategy for the Tennessee Electric Cooperative Association. “The partnership between Touchstone Energy, co-ops and TECA allowed us to have a presence and reach our members in ways that no single co-op could have done. We are exploring additional opportunities for us to work together to tell the story of Tennessee co-ops.”

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Tennessee Magazine gets the Willies

The Tennessee Magazine staff took home awards of merit for best photo and best editorial at the Willie Award Ceremony held Monday evening, Aug. 11, at the The National Press Club in Washington, D.C. The National Rural Electric Statewide Editors Association Willie Awards is a peer-reviewed program that recognizes excellence in electric cooperative statewide consumer publications.

TECA Executive Vice President and General Manager David Callis received an award of merit for best editorial for Resiliency (Oct. 2015), and Robin Conover, vice president of communications and editor of The Tennessee Magazine, received best photo for this image from The Lions Roar (July 2015).

“Our staff works very hard to create quality content for the readers of The Tennessee Magazine,” says Conover. “Keeping readers engaged with interesting features, editorials and photography is our goal each month. It’s exciting to be recognized by our peers.”

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Co-ops issue statement on state broadband study

NASHVILLE, July 19, 2016 – Tennessee’s electric cooperatives are encouraged by the findings and recommendations released earlier today by the Tennessee Department of Economic and Community Development concerning broadband availability across the state.

The report states that current regulatory barriers restrict investment and competition, specifically mentioning a law that prevents the state’s member-owned electric cooperatives from providing broadband access. Electric cooperatives serve 71 percent of the state’s landmass, including a majority of the rural and economically disadvantaged regions identified in the study as areas of greatest need.

“Limited access to broadband has serious consequences for rural Tennessee, and co-ops are uniquely positioned to provide real solutions,” says David Callis, CEO of the Tennessee Electric Cooperative Association. “Co-ops have a legacy of expanding critical services beyond the city limits. A generation ago, the issue was power; today it is broadband. “

“Tennessee’s electric cooperatives appreciate Governor Haslam and Commissioner Boyd for their leadership on this important issue,“ says Callis. “This study should serve as a roadmap to the legislature to remove restrictions and foster competition. Co-ops are committed to working with the state to identify real solutions that will benefit rural and suburban Tennessee.”

A copy of the report is available here.

The Tennessee Electric Cooperative Association provides legislative and communications support for Tennessee’s 23 electric cooperatives and publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.

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Contact:
Trent Scott | Vice President of Corporate Strategy | [email protected] | 731.608.1519

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Cyber counter-attack

About 3:30 in the afternoon last December 23, operators at three electric utilities halfway around the world in western Ukraine found themselves not to be solely in control of their computer terminals. Someone from outside the utilities had taken over the controls and started opening circuit breakers at more than 27 substations, cutting power to more than 200,000 customers. Thousands of fake calls clogged utility switchboards, preventing people from phoning in to get information about the outage. Utility workers switched to manual operations, and it took three hours to restore power.

That’s not a movie plot. And if you missed or forgot about that news report from last year, people who run electric utilities have not. Attention to cyber security at electric utilities has been growing fast in the past few years, and the Ukraine attack pushed that trend into overdrive.

“It’s garnered a lot of attention from the federal government and throughout the industry,” says Barry Lawson, Associate Director of Power Delivery and Reliability for the National Rural Electric Cooperative Association (NRECA).

A big part of Lawson’s job is helping the nearly 1,000 electric co-ops in the country understand digital-age dangers, and ensuring that they know how to protect and secure the power supply, electric grid, and co-op members and employees from Internet mischief.

Electric co-ops are showing they do understand the importance of cyber security, says Cynthia Hsu, Cyber Security Program Manager for Business and Technology Strategies at NRECA.

“Electric co-ops were the first utilities to test and use the U.S. Department of Energy’s cyber security self-assessment tool,” says Hsu. “They are often on the cutting edge of implementing best practices to improve their cyber security capabilities.”

While the Ukraine cyber attack has been studied in-depth by U.S. utilities and the Federal Department of Homeland Security, most analysts see a large-scale attack by hackers as unlikely to succeed in this country. The reports characterize the Ukraine attack as extremely well planned and coordinated, but not technically sophisticated.

The Ukraine incident actually started as early as March of last year, when utility workers received e-mails with Microsoft Office documents, such as an Excel spreadsheet, from the Ukrainian parliament. But the emails were not from the Ukrainian parliament. When workers followed the email instructions asking them to click on a link to “enable macros,” malicious malware embedded in the documents––called BlackEnergy 3––secretly infected the system. Among other capabilities, BlackEnergy 3 can enable an adversary to observe and copy all the keystrokes made on the infected computers, giving hackers passwords and other login information needed to access the utility’s operations control systems.

Defenses against that kind of attack are pretty basic, and you’ve probably even heard the warnings yourself—don’t click on any links or attachments unless you were expecting the message to be sent to you. Utilities are increasing their efforts to enhance and formalize their security plans, processes and controls. New cyber security standards require upgraded levels of training for utility operators, multiple layers of security to shield operational and control systems from the Internet and even stricter procedures for visitor access (physical and electronic) to control rooms. These utilities are regularly audited for cyber security compliance, and regulators, such as the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC), can levy strict penalties for not following standards.

NRECA’s Lawson describes an example of one type of security technology, a security token—a physical device an operator would carry with them that changes their password every 30 seconds.

NRECA has also worked with the Department of Energy to develop software called Essence, which constantly monitors a utility’s system for even a microsecond of irregularity that might indicate some kind of hacking attempt or malware is interfering with the system.

With all that attention to keeping the electricity flowing, Lawson says there’s another major cyber-threat receiving high-priority attention from electric co-ops—protecting data and critical utility information to avoid identity theft of members’ information. He says some co-ops hire firms to periodically try to hack into their computer systems, so the co-op can identify and fix the holes in their security.

Lawson describes a scary world of cyber terrorists, organized crime, issue-oriented groups or just kids in their basement seeing what kind of trouble they can cause on the Internet. At the same time, he compares those high-tech threats to risks posed by hurricanes or the everyday need for paying attention to safety at the electric cooperative. Co-ops regularly use risk assessment and management practices to balance a wide range of threats to their systems.

“Physical security and cyber security are becoming just another cost of doing business,” says Lawson. “You’ll never be 100 percent secure, and all you can do is try your best to keep up with the bad guys. It’s a fact of life in these days and times we’re living in.”

Paul Wesslund writes on cooperative issues for the National Rural Electric Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives.

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Member, not customer

Many businesses use the word “member” to describe their customers. Places like Sam’s Club or Costco and even American Express like to refer to their customers as members. You pay a fee to buy their goods and services, but that is really all you get for the “membership.” No right to vote for the Board of Directors or to participate in any meaningful way in the organization.

For Tennessee’s electric cooperatives, membership really does mean something more than just the right to buy electricity. Co-ops of all types are founded on seven cooperative principles that give us guidance and strategic direction. Membership also gives you rights as an owner of the co-op.

Brett Fairbairn is the director of the Center for the Study of Co-operatives at the University of Saskatchewan in Canada. He makes the case that member relations is not just part of what co-ops should be doing, but in fact is the fundamental core business of the cooperative.

He further lays out the three strategic concepts that any co-op must get right in order to survive and thrive:

Economic linkage

Co-ops are connected to you. There is a business relationship that serves you (the member) and the co-op. Since co-ops are solely owned by people in the community, they have a mutual interest to ensure that both the co-op and the member do well and prosper.

Transparency

As an owner of the co-op, you have a right to know how it operates and how decisions are made that directly impact you. If the co-op is transparent and combines this trait with integrity and fairness, it will build trust with the members.

Cognition

In this case, cognition is best defined as how your co-op thinks. It includes the current and historical identity, the mission and the sense of shared values with co-op members. Research, education and training are critical functions that co-ops must conduct on an ongoing basis to ensure that we always have the best information to make decisions.

The cooperative business model is the best one on earth, but like any enterprise, it is up to the human beings who work at the co-op, who serve on the board and the members like you to ensure that the principles and values do not fade over time.

First and foremost, Tennessee’s cooperatives strive to be thought of as member-owned, and that gives you the best value of any utility. If we succeed, our community thrives and you will always value being a member – not a customer.

Adam Schwartz is the founder of The Cooperative Way a consulting firm that helps co-ops succeed. He is an author, speaker and member-owner of the CDS Consulting Co-op. You can follow him on Twitter @adamcooperative or email him at [email protected].

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Tennessee electric cooperatives visit D.C. lawmakers

[WASHINGTON, D.C.] – Members from Tennessee’s electric cooperatives visited with Tennessee’s Congressional delegation on Thursday, June 23, in Washington, D.C. They joined more than 40 co-op leaders from across the state in the nation’s capital to discuss issues important to co-ops and co-op members.

“Elected representatives make decisions and pass laws that have serious consequences for Tennessee’s electric cooperatives and their members,” says David Callis, executive vice president of the Tennessee Electric Cooperative Association. “It is important that we tell the electric cooperative story and inform Members of Congress of the impact of proposed legislation.”

Co-op members discussed environmental and power supply issues with Members of Congress during their visits. “It is important that we communicate with how legislation affects rates and reliability for everyday Tennesseans,” says Callis.

The Tennessee Electric Cooperative Association is a trade group representing the interests of Tennessee’s 23 electric distribution cooperatives and the 1.1 million consumers they serve. The association publishes The Tennessee Magazine and provides legislative and support services to Tennessee’s electric cooperatives.

 

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Comcast pays delinquent pole fees to DREMC

[SHELBYVILLE] – No interruption of service will occur for more than 7,000 Comcast cable TV and Internet subscribers in Franklin and Moore counties after the company paid delinquent pole attachment rental fees owed to Duck River Electric Membership Corporation (DREMC).

Earlier this month, DREMC put Comcast on notice that rental fees for using space on co-op utility poles would have to be paid by June 24 to avoid disconnection of power supplies and detachment of cable, fiber optics and other equipment. The delinquency dated back to 2015.

Almost a week of negotiation preceded Comcast’s decision to pay the past-due amount. During this time, Comcast customers were asked to contact corporate officials to urge that they act to keep service uninterrupted.

“Our contention was that Comcast should pay for the right to use our utility poles, that our electric co-op members should not be subsidizing their business or corporate profits. The majority of our members don’t have access to service from Comcast or other cable television and broadband providers. It is not fair that they should be providing a free ride for any company using our poles,” said DREMC President and CEO Michael Watson.

He noted that DREMC faced the same issue with Comcast in 2014.

“I am glad we were able to resolve this problem without affecting those subscribers of Comcast who have been paying their cable and Internet bills all along.”

Watson also thanked state lawmakers and federal elected officials who became involved so that Comcast customers would not be penalized by loss of service.

“They worked behind the scenes on behalf of their constituents, and we certainly appreciate their willingness to help,” he said.

Duck River EMC, a Touchstone Energy® cooperative, is a not-for-profit, member owned utility providing electric and other services to more than 73,000 homes and businesses in southern Middle Tennessee. Duck River EMC serves an area of approximately 2,500 square miles in Bedford, Cannon, Coffee, Franklin, Giles, Grundy, Hickman, Lawrence, Lewis, Lincoln, Marion, Marshall, Maury, Moore, Rutherford, and Williamson counties.

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Touchstone Energy to sponsor 2016 Super Pull of the South

Tennessee’s Touchstone Energy Cooperatives will be sponsoring the Chapel Hill Lion’s Club Super Pull of the South on Friday and Saturday, July 22 and 23.

“We are excited about the platform that this event provides us to tell the story of Tennessee’s Touchstone Energy Cooperatives,” says Trent Scott, vice president of corporate strategy for the Tennessee Electric Cooperative Association. “The partnerships between Touchstone Energy, participating co-ops and TECA allow us to have a presence and reach our members in ways that no single co-op can.” All 10 Touchstone Energy cooperatives in Tennessee are participating in this year’s event.

The Touchstone Energy hot air balloon team will be giving tethered rides and lifting the American flag over the stands each night during the opening ceremony. Co-op members visiting the Touchstone Energy booth will learn about electric safety and quick and effective ways to save energy. “We are pleased to have TVA joining us this year,” says Scott. “We will be telling members about the eScore program and handing out caulk, LED light bulbs and receptacle gaskets.” Members will also have the opportunity to win a riding lawn mower and other prizes.

Co-op members attending the event are encouraged to visit the Touchstone Energy Cooperatives of Tennessee booth just outside the entrance to the stands.

 

Touchstone Energy On Tour visited the event in 2015, and the footage they filmed became a part of their latest national advertising campaign.

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Move Over Tennessee

Five years after the Tennessee’s Move Over Law was expanded to include utility workers, lineman continue to face roadside hazards

[NASHVILLE] – In 2011, following efforts by Tennessee’s electric cooperatives and municipal utilities, the state’s Move Over law was revised to not only include police, firefighters and other first responders, but utility workers as well. Unfortunately, motorists do not always heed the law.

“We have had cars come through at high rates of speed, hitting the cones we have set up and clipping the outriggers that we have down to support the trucks,” says Greg Bryant, a lineforeman with Gibson EMC. “I think people care, they just don’t pay attention like they should.”

The requirements of the law are simple. On a four lane road, if safety and traffic conditions allow, a driver approaching a utility vehicle with flashing lights should move into the far lane. On a two lane road or when changing lanes is not possible, a driver should reduce their speed.

Electric co-op vehicles aren’t the only utility vehicles covered; service vehicles used by municipal electric systems, telephone companies and utility districts are also protected by the law.

“July marks the 5th anniversary of the expansion of the law, but most motorists are still not aware of it,” says David Callis, CEO of the Tennessee Electric Cooperative Association. “Our lineman perform an important job for our community. Changing lanes or slowing down to give them a little space is a simple courtesy that could save a life.”

More information about the law is available at moveovertennessee.org. Bumper stickers are available to help your co-op spread the word about the law. Co-ops can use discount code “moveoverco-ops” when ordering bumper stickers for their fleet.

 

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