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2015 Legislative Outlook

The Tennessee General Assembly returned last week with 23 new faces and a list of old problems to address. The first week of session was primarily ceremonial in nature culminating with the inauguration of Governor Bill Haslam for his second four-year term and the announcement of committee composition in both the House and the Senate. A two-week recess will allow for reorganization, as members will move their offices and staff is reassigned in order to be prepared for the next two years of lawmaking.

They will return on February 2 to begin a special session, called by the Governor, to consider Insure TN. This program is controversial, as it will use a combination of Federal funding and an assessment on hospital revenue to expand the population of citizens who qualify for TennCare (the state’s version of Medicaid). Since it is a special session of the legislature, Insure TN is the only topic that can be considered.

The special session is planned to last one week, with regular session set to commence on February 9. Major issues expected to dominate the headlines after Insure TN is settled include: revisions to the state’s educational standards (known as “Common Core”), proposals to regulate abortion providers and clinics, a discussion about funding for road projects which will include possible restructuring of the gas tax, and the inevitable disagreement over passing the state’s budget and its impact on funding for all other proposed new or revised programs.

Issues of concern for electric cooperatives will be many, although we cannot be 100% sure of all issues until the deadline for filing bills as passed. This year, the deadline is set for February 12 – although any delays in the Special Session could push that deadline back. TECA is proactively encouraging legislation to address liability concerns that arose from a court case regarding property owner claims of inverse condemnation. This legislation would reestablish a statute of limitations on the amount of time a property owner could bring such an action.

Also, TECA has been involved with a coalition of concerned parties who have been studying the State’s reaction to the EPA’s proposed Clean Power Plan. Director of Government Affairs, Mike Knotts, testified to joint meeting of the House and Senate Government Operations committees on this topic in December.  Click here to see the full video of the hearing, Mike’s testimony begins at 00:50:30. Legislation is likely to be proposed to guide the state’s reaction to EPA’s plan, once its becomes final later this year. TECA’s main concern is preserving all of the remedies, both legal and legislative, available to ensure that EPA’s plan does not harm cooperative members through unnecessary hikes in rates or reductions in reliability.

If you want to stay informed throughout the legislative session, join the mailing list for our legislative newsletter – View from the Hill.  To do so, sign up by clicking here.

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Energy Education

“Education is learning what you didn’t even know you didn’t know.” This quote, from historian Daniel Boorstin, sums up the challenge that we face in the electric utility industry.

As we get older, we (hopefully) become fairly well educated and consider ourselves to have a wider breadth and depth of knowledge. We tend to have a reasonably good knowledge in our job and perhaps a few other areas. But it’s a big world and it’s difficult to be an expert in every field.

I have – at best – a cursory knowledge of farming. In fact, if we’re dependent on my farming skills to feed us, we’re all going to starve. Recently, a friend and colleague of mine told me about an innovation that he was using at his farm. He began using large grain bags as temporary corn storage. He tells me that this technique is used in other countries, but isn’t common in the United States. His farm uses specialized equipment that attaches to a tractor, which provides the power source for an augur that fills the bags. Each plastic bag is 10 feet wide by 300 feet long, holds 12-13,000 bushels and is not reusable. He described them as “Hefty bags on steroids.”

The point of the story is that this is something that I never knew existed, but this temporary storage can help make the difference in his farming operation being successful and grain being available when needed. That’s important. I now know something that I didn’t know that I didn’t know.

By its very nature, electricity is charged – positive or negative. Unfortunately, energy policy has become politically charged. That’s not something of our choosing, but it is the reality in which we operate.

That’s where we come in. We need to be their source of information. Because of the abundance of opinions – many of them incorrect – in the energy policy arena, we have an obligation to our members to provide them with facts. Many people are making decisions based on erroneous information.

Let’s help them know what they don’t know they don’t know.

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Matheny retires, Partin to lead SVEC

Sequachee Valley Electric Cooperative’s Board of Directors has named Mike Partin SVEC’s new President and Chief Executive Officer. Partin succeeds Robert W. (Bob) Matheny who retired earlier this month after serving for over 16 years,. Partin will be the seventh manager/CEO in the Cooperative’s 75 year existence.

“Mike is knowledgeable and experienced in the electric cooperative industry, having grown in responsibility and leadership over the course of his career,” said Board Chairman Mike Jordan. “The Board has complete confidence in his ability to lead SVEC in the delivery of safe, reliable, affordable electric service to its 35,000 members.”

Partin began his career with SVEC in 1998, serving first as Vice President of Marketing and Member Services and for the past 5 years, as Chief Operating Officer. He is an alumnus Grundy County High School and Middle Tennessee State University. Partin is also a graduate of the National Rural Electric Cooperative Association’s management program at the University of Nebraska, Lincoln. Partin has also served in various capacities with industry related organizations including Touchstone Energy Cooperative, the Tennessee Valley Public Power Association and the Tennessee Electric Cooperative Association.

“I am certainly humbled and honored that the Board has put their trust in me to lead the cooperative,” said Partin. “I look forward to the opportunity to work with our Board and the dedicated men and women serving our communities and members. Our industry is on the brink of tremendous change and I look forward to the challenge of navigating SVEC into the future.”

Partin and his family live and farm in the Pelham Valley on the same land that has served his family for generations. Mike and his wife Kim, a teacher at Monteagle Elementary School, have two daughters, Macy and Maty. The Partins attend Monteagle Church of Christ.

After more than forty years in the electric utility industry, the last sixteen at Sequachee Valley Electric Cooperative, President/CEO Bob Matheny retired on January 2.

Matheny began his career at SVEC in July 1998, after the passing of the previous manager, Bob Pickering. Early in his career Matheny gained electric utility experience working in member and energy services with TVA and two cooperatives in Florida. He then served as general manager for Tri-County Electric Cooperative in Michigan for almost 15 years before taking the reins at SVEC.

During Matheny’s tenure, the Cooperative has grown in membership, miles of line and advanced in technology, improving reliability for members and helping the Cooperative operate more efficiently.

While at SVEC, Matheny served  as a director on several national and regional industry-related boards, such as the National Rural Telecommunications Cooperative, the Cooperative Response Center and Southeastern Data Cooperative. Matheny was also a member of the South Pittsburg Rotary Club and served as a member of the Marion County Partnership for Economic Development and a term on the Marion County Chamber of Commerce board.

“I have enjoyed a long career and worked with many dedicated people over the past 40 years,” Matheny said. “Thank you for your support. I am very proud of the accomplishments we made at SVEC.”

He and his wife Joyce plan on retiring to Florida and spending more time with family.

Sequachee Valley Electric Cooperative, a Touchstone Energy® cooperative, is a non-profit organization offering reliable, low-cost electricity to 35,000 members in Bledsoe, Grundy, Marion and Sequatchie counties. SVEC is an equal opportunity provider and employer.

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Tennessee Legislative App

Legislative directory app connects residents to elected officials

NASHVILLE – Tennesseans interested in government and politics now have a powerful tool for connecting with their elected representatives.

Announced today, the 109th Tennessee General Assembly app features a continually updated, searchable database of contact, staff and committee information as well as photos, leadership roles and social media profiles for members of the Tennessee House and Senate.  The app also contains information on the governor and his cabinet and the Tennessee Congressional delegation.

app-iconDeveloped by the Tennessee Electric Cooperative Association and Bass, Berry & Sims PLC, the 99-cent app is available for iPhone, iPad and Android devices and can be found by searching for “Tennessee General Assembly” in the Apple App Store or Google PLAY Marketplace.

phone2015“We have produced print directories of the General Assembly for more than 30 years, and this is our fourth year to release an app,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “It is important for Tennesseans to be active and involved with their elected officials, and the app is a tool that makes it easy to speak up on issues that are important.”

“The app is ideal for anyone who wants to monitor the activities at the state Capitol and is designed to be the best reference possible for those who are interested in or work with Tennessee legislators,” says Dick Lodge, partner with Bass Berry & Sims PLC.

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

Images:
Download high resolution graphics of the app icon and the app.

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Five tips for space heater safety

As temperatures drop this winter, many will look for supplemental heating sources for their homes. Space heaters can be a good alternative for those who want to warm one area of their home without turning up the thermostat on the central heating system. However, space heaters are also responsible for 32 percent of house fires, according to the National Fire Protection Association. If you are planning to use a space heater in your home this winter, review these tips from Tennessee’s electric cooperatives to keep you, your family and your property safe.

Materials – What are the components of your space heater made of? Parts like metal grating can be hot to the touch and may burn anyone who gets too close. Make sure you purchase a heater that is cool to the touch and has guards over the coils just in case little fingers get too close.

Placement – While it can be tempting to place a small heater on a shelf so it is not in the way of pets and children, it is safest to leave the heater on a level floor on a nonflammable surface. Keeping the space heater on the floor can keep it from falling over, preventing fire hazards. Also, remember that space heaters and bathrooms are not a good combination, unless the heater is designed for bathroom use. Moisture can damage the heater.

The most important rule about space heater placement is the three-foot rule. Whether you are using the heater in the bedroom, living room or kitchen, space heaters should always be kept three feet away from flammable materials and out of the way of children and pets.

Special Features – Does your space heater have an auto shutoff function if tipped over? Auto shutoff can be a lifesaver. If you currently own a space heater without auto shutoff, consider purchasing a heater with this important safety feature.

Cords – You should never use an extension cord when plugging in a space heater as it can cause overheating. The space heater should be plugged directly into a wall outlet, and should be the only thing plugged in to the wall outlet. Also make sure cords aren’t in a high-traffic area so they are not a tripping hazard.

Use – Never leave a heater unattended while in use. If you are leaving your home or going to bed, make sure to unplug the heater.

Following these tips and making sure to follow the manufacturer’s instructions can keep you safe this winter.

April Lollar writes on consumer and cooperative affairs for the National Rural Electric Cooperative Association, the Arlington, Va.-based service organization for the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives.

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Electric co-ops effectively respond to disasters

In the summer of 2012, the derecho that swept hurricane-force winds from the Great Plains to the Atlantic seaboard knocked out power to more than four million people. The damage caused by this devastating storm cost the nation $2.9 billion.

Disasters, whether caused by nature, accidents or hostile acts, exact an enormous cost, both in economic and human terms. Electric cooperatives have a unique and effective approach to emergency management and disaster recovery: mutual assistance. Following a disaster, co-ops will rapidly deploy support staff and equipment to emergency and recovery zones to assist sister co-ops.

Because the national network of transmission and distribution infrastructure owned by electric cooperatives has been built to federal standards, line crews from any co-op in America can arrive on the scene ready to provide emergency support, secure in their knowledge of the system’s engineering.

We work closely with other first responders, state and local government and the Federal Emergency Management Agency (FEMA) to ensure an effective and coordinated response in the event of an emergency.

Since cooperatives are not-for-profit organizations, we are eligible for financial assistance from FEMA, which can fund a major portion of the cost of emergency work to restore power and the cost of repairing, restoring, rebuilding or replacing damaged facilities. This system gives electric cooperatives the ability to respond effectively and quickly in times of crisis and protects the financial interests of the cooperative members as the same time.

Unfortunately, with tighter budgets, securing FEMA reimbursements after a disaster has become more difficult. Following Superstorm Sandy, Congress changed the rules: FEMA now allocates funds for rebuilding based on an estimate of costs, not on the actual cost. If the estimate is higher than the actual cost, the excess funds must be used for FEMA-approved projects. But if the estimate is low, the co-op must pay the difference.

Electric cooperatives across the country learn from disasters. We learn how to protect our systems better, and we learn how to become more resilient. When it comes to resiliency, we have a good story to tell. We serve our member-consumers in the most rugged, remote terrain in the country. And we have learned how to restore power in extremely difficult circumstances.

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Resolve to make your home more energy efficient

Happy New Year! This is the time of year when we often resolve to make changes of all types. Here’s an idea for you. Instead of focusing on the typical resolutions, such as losing weight and exercising more, why not resolve to make your home more energy efficient? And with winter in full swing, this is a good time to think about making energy-efficiency improvements to your home. Your thermostat is in full heating mode and generally, winter heating requirements cause us to spend more money than we do for cooling. This is because the laws of nature dictate how heat behaves on Earth. As a reminder, heat moves to cool.

On a cold winter day, the heat generated by a heating source is moving through building materials, cracks around doors and windows, unsealed holes created by electrical and plumbing penetrations and improperly installed and inadequate insulation. Furthermore, winter usually doles out a larger temperature difference between the indoor thermostat setting and the outdoor temperature. The greater the temperature difference, the more energy is required to maintain the desired temperature inside your home.

To be clear, not all homes are energy inefficient. So how does one know whether or not his/her manufactured or standard built home is energy efficient? Here is a simple way to do it, based on your average monthly utility usage. Simply multiply the square footage of your home by 10 cents. For instance, a 1,500-square-foot home multiplied by 10 cents (.10) equals $150.00. A 2,000-square-foot home multiplied by 10 (.10) cents equals $200. And so on.

Next, calculate your total electric bills for a one-year period. If you heat with natural gas or propane, be sure to add those bills into the total. Next, divide the total by 12 months to establish the monthly average. If your monthly average exceeds the square-footage multiplied by 10 cents (.10) calculation, you most likely have an opportunity to make some energy efficiency improvements.

Tennessee’s electric cooperatives can help identify and offer solutions for high bills and comfort issues. Contact your local cooperative or visit our efficiency archives for many energy savings ideas and solutions.

In the meantime, stay warm and start working on your energy efficiency resolution!

Bret Curry is the residential energy manager for Arkansas Electric Cooperative Corporation.

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The power of policy impacts our members

It seems you can’t turn on a TV, listen to the radio or pick up a newspaper without hearing about ineffectiveness in government. It often seems that no matter what we do or who we vote for, we don’t feel truly represented in either our state or national governments.

Tennessee’s electric cooperatives understand how that feels, and we have been there ourselves. That feeling, along with a strong desire to take action, is the reason why we have dedicated staff that works to ensure our members’ interests are represented, and heard, by elected officials.

Members of our government relations and policy teams work tirelessly to tackle complicated regulatory and policy issues. They apply these issues to the ever-changing energy market and then evaluate how those issues impact our communities. They have a deep understanding of the needs of the communities we serve, and they use that knowledge to ensure that your needs are represented in major legislative decision-making.

The ability to impact change is a huge part of being a member of an electric co-op. We don’t lobby elected officials on behalf of investors with the aim to increase profit margins. We work with elected officials to make sure that your interests are being considered to ensure that you will always be provided with safe, reliable and affordable electric service. That is the cooperative difference.

But it isn’t just our government relations team that helps us affect policy and legislative change. Your voice makes a huge difference in how quickly and effectively we can drive change. Through our grassroots advocacy programs we encourage you to bring your ideas to the table and to make your voice heard. This is how we show state and national officials that we are acting in your best interest. Your collective voice shows that we represent communities and families, not corporate interests.

The next time you are feeling frustrated, the next time you want to be heard or the next time you want to make a change in your community, call your local power company. Find out what we are doing to represent your interests, and find out how you can help affect change in our communities.

Meghaan Evans writes on consumer and cooperative affairs 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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Energy efficiency and the tiny house movement

A “tiny house movement” has gained attention nationally as a reaction to the increased construction of larger homes. Popularized by the documentary “Tiny,” a television show, and other media coverage, these homes typically measure less than 1,000 square feet – a far cry from the typical American home. In 1973, the average U.S. home measured 1,660 square feet. Since then, U.S. homes have grown by over 60 percent to reach an average size of 2,598 square feet in 2013 – despite a slight dip in 2008 through 2010. But do smaller homes actually use less energy? What are the factors that determine how much energy a house consumes?

As the size of homes increases, so do the energy demands on it. There’s additional space to be heated or cooled, more lighting is required, and it’s likely that the number of appliances will increase as well. Examining only a home’s size will show a strong positive correlation between the square footage of a home and its energy consumption. To look at an extreme case, homes that measure over 6,400 square feet (the top 1 percent of homes) use two and a half times as much electricity as home sized at 1,600 square feet; but this isn’t the whole story. Other factors such as the age of the home, climate, income and behavior influence energy consumption as well. Energy Information Administration (EIA) data shows that homes built after the year 2000 use only 2 percent more energy than homes built before 2000 even though the newer homes are on average 30 percent larger and contain more electronic appliances.

There are several reasons for this equilibrium in energy use despite the greater building size. First, homes are becoming more energy efficient. They are lit with CFLs and LEDs instead of incandescents and use more efficient appliances. For example, an older refrigerator can use about twice as much energy as a newer model of similar capacity. Second, homes are being built with more energy-efficient features. This includes better building shells, modern windows and more insulation. Larger homes in particular are more likely to include these types of energy-saving features. These changes are due not just to technological advances but policy changes that tightened building codes and raised the minimum energy efficiency standards for appliances. Programs such as EnergyStar have helped to educate consumers about the efficiency and cost-savings of their products. Lastly, more Americans are moving south to more moderate climates. This means that less energy is used on space heating, and although the southern migration has resulted in a 56 percent increase in energy used for air conditioning, it’s not enough to offset the space heating reduction.

What this ultimately means is that the amount of energy a home uses is not pre-determined by its size. While moving into a tiny home may not be practical or possible — they are often not allowed under current zoning regulations and only make up around 1 percent of homes – realize both large homes and small homes have the potential to be efficient or inefficient. Rather than moving into a tiny home to save energy, consider looking into energy-efficient retrofits – contact your local electric co-op for ways to save.

Thomas Kirk is a technical research analyst specializing in energy efficiency and renewable energy for the Cooperative Research Network (CRN), a service of the Arlington, Va.-based National Rural Electric Cooperative Association.

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