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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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Use caution near co-op equipment

As you find yourself spending more time outdoors this summer, Tennessee’s electric cooperatives remind you to exercise caution near electrical equipment maintained by the co-op.

Substations and power lines carry extremely high voltages, and if contact is accidentally made, the results can be dangerous––or even deadly.

Never climb trees near power lines. If you make contact with a tree that is touching a power line, your body could become the path of electricity from the line to the ground. If you encounter an animal trapped in a tree near power lines or inside a substation, do not attempt to remove it––no matter how furry and cute! Call your local co-op for assistance.

These days, we are seeing more remote-controlled toys, like drones and airplanes, which can be a great way to have fun outdoors. But these gadgets also bring new safety concerns. Remote-controlled toys should never be flown near power lines, substations or other electrical equipment.

Remember these safety tips when flying a remote-controlled toy:

  • Keep a safe distance from electrical equipment when you fly. If contact is accidentally made with a power line or a transformer inside a substation, many members of your community could be left without electricity.
  • Keep the remote-controlled toy in sight at all times.
  • Avoid flying if weather conditions are unfavorable. High winds could cause you to lose control of the remote-controlled toy.

Your safety is important to your co-op. We hope you will share the message of electrical safety so that you and others can enjoy plenty of summer days filled with fun! Visit everydaysafe.org for more electrical safety tips.

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The cooperative difference

I don’t think we realize how much we benefit from the internet and the communications services it provides. Not that many years ago, companies debated whether they should invest in having an online presence. I know that because I was involved in those conversations.

Today, you can go online to change your mobile phone’s data plan or increase the number of channels you receive from your broadband provider. You can start or stop services, and you can easily order everything from cat food to diapers — all conveniently delivered to your home in a few days (or even hours). Quite often, if you go to a company’s website, a dialogue box will pop up and allow you to order goods and services or make transactions in a chat exchange with an agent. Companies boast about how much they care about their customers, so they will go to any length to make things easier.

But have you ever tried to cancel any of those offerings?

Recently, I needed to cancel a couple of communications-related services. Unfortunately, neither of the two companies’ websites had an easy link for customers. I simply could not do this by email, text or chat. The only option was a voice conversation. Sounds easy enough, but they involved very lengthy conversations punctuated by long periods of time on hold. All told, I invested well over an hour of my time.

So much for making things easier for customers — though I was a departing customer.

I can appreciate that some actions require a conversation and many companies prefer a more personal interaction with their customers. Yet, this process seemed to be more about trying to convince me to change my mind or make it so painful that I would give up.

At cooperatives, we look at customers a bit differently. To begin with, we view you as what you truly are — member-owners and not customers. It is one of our founding principles, and it colors how we do our jobs. We’re happy to see you join the cooperative and sad to see you leave should you move away.

The American Customer Satisfaction Index (ACSI) is a measure of customer satisfaction. It is a well-respected national survey of the quality of products and services offered by foreign and domestic firms. It measures customer satisfaction on a scale of 0 to 100.

Electric cooperatives across the nation are evaluated by the ACSI and, quite frankly, we score very well. For years, we have been near the top of the rankings. Electric cooperatives led the energy sector in 2014-15 with a score of 81. (For comparison, Apple scored an 80.)

According to ACSI, “Across all 43 industries measured by the ACSI, electric co-ops have the 10th highest customer satisfaction score.”

It makes a difference when you’re treated like a member-owner and not just a customer. The lineman, the engineer and the member service representative view you as much more than a source of revenue. They work for you. The cooperative difference shows up in their commitment to their jobs, and it shows in how cooperative members rate them.

How do the communications companies I dealt with compare? I won’t “name names,” but their 2015 ACSI scores were near the bottom of nationally known companies. Their individual scores were 68 and 69.

From my personal experience, I think their survey scores might have been overly generous.

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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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Meaningful accomplishments

Have you noticed how news programs use the phrase “Breaking News?” I’ve always believed that label should mean a significant, unexpected event is underway and the reporters involved are relaying information in real time. But these days every cable news channel story is seemingly labeled as late-breaking and treated as urgent. Because of this, it is often hard to see the big picture through this dense fog of arguing pundits and so-called breaking news.

With the priority being to report on the immediate and instantaneous, we often miss out on stories of significance that take place over a longer period of time. One such story took place this year, and while it is rooted in partisan politics, I urge you to look past the party labels and focus on the incredible accomplishment.

On April 22, the Tennessee General Assembly completed its work for the year and adjourned. Standing at the front of the Senate to bring down the final gavel was Ron Ramsey. As a state senator, speaker of the Senate and lieutenant governor, his presence was no surprise. However, this stroke of the gavel may have been his favorite.

The story began almost a quarter-century ago when Ramsey was first elected to the State House of Representatives. As a member of the legislature in his first term, he was pretty well assured of one thing: His first day as a legislator would neither result in any accomplishments nor change the course of the state’s history. In 1992, Ramsey’s political party held very little clout in the General Assembly. And by very little, I really mean none. Republicans had not held a majority in the legislature since just after the Civil War. No Republican had served as lieutenant governor since 1869.

The five-hour drive from Blountville to Nashville must have seemed a lot longer in those first years, even after being elected to the State Senate in 1996. For many in the political world at that time, the perpetual minority status of Republicans was perceived to be permanent. But little in this world is truly permanent, and Ramsey spent the next 10 years working toward an accomplishment that very few ever thought possible.

In January 2007, the political winds had shifted, and Ron Ramsey was elected speaker of the Senate and lieutenant governor. The story of how this was accomplished could take up several pages of this publication, but that’s not the accomplishment I want to share with you. Ramsey then led a virtual revolution in the political makeup of the General Assembly, resulting in Republicans holding supermajorities in both the House of Representatives and the Senate. But that is not the accomplishment I find remarkable.

What I find so refreshing about this story is how it ends. It does not end the way all too many do — with a scandal or an electoral defeat. When Ron Ramsey gaveled the Senate to a close at the end of April, he was at the peak of his political career with near-unlimited ability to wield his influence. Very few politicians will ever achieve the level of power that Ron Ramsey enjoyed at that moment. And like so many politicians, he desired a new position with a new title.

For Ramsey, though, that new title is “Papaw.” While his position in Tennessee history is timeless, his position as a grandfather is not. So he did what few powerful politicians do, stepping aside on his own and relinquishing the leadership position he’d earned.

Thank you, Ron, for demonstrating to me that no matter what our professional passions might be, our priorities should always start with the people closest to our hearts. That is an accomplishment with lasting meaning.

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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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2016 Washington Youth Tour

Nearly 140 high school seniors from across Tennessee returned last week from the 2016 Washington Youth Tour.

The popular event included sightseeing, visits with elected officials and lots of fun meeting peers from across Tennessee and the nation. Delegates earned their spots on the Youth Tour for writing winning short stories titled “Electric Cooperatives: Powering Everyday Life.” In their winning entries, the talented young writers described how member-owned, nonprofit electric co-ops strengthen their local communities and improve lives across their service areas while providing safe, reliable, affordable energy.

“We take great pride in recognizing the best and brightest from across the state,” said Todd Blocker, director of member relations for the Tennessee Electric Cooperative Association and tour director. “By recognizing their accomplishments through programs like the Washington Youth Tour, we show these leaders of tomorrow that their hometown electric co-op is more than a utility provider; these students are active members of their community and fully invested in its prosperity.”

For more than 50 years, the Washington Youth Tour has taken students from electric co-op service areas to our nation’s capital to learn more about our country and the cooperative business model. The annual event is coordinated by local electric cooperatives, the Tennessee Electric Cooperative Association and National Rural Electric Cooperative Association (NRECA). This year’s Youth Tour involved 1,700 students from 43 states.

“Young Americans given the opportunity to come to Washington, D.C., by their electric cooperatives experience a life-changing event,” said NRECA Interim CEO Jeffrey Connor. “They talk to their elected officials in person, connect to our nation’s rich history and have a hands-on experience with democracy. Youth Tour enriches their understanding of the political process and the vital importance of direct engagement. As a result, they return to their communities with a deeper commitment to the communities they represent.”

On their 2016 visit, Tennessee’s Youth Tour delegates saw the White House and memorials to past presidents Thomas Jefferson, Abraham Lincoln and Franklin Delano Roosevelt as well as monuments honoring the sacrifices of veterans of World War II and the Vietnam and Korean Wars. During visits to the museums of the Smithsonian Institution, the touring Tennesseans saw and experienced natural, historical and artistic treasures. Other fun stops included historic homes of former presidents — George Washington’s Mount Vernon and Jefferson’s Monticello — as well as Madame Tussauds Wax Museum, the Hard Rock Cafe and a boat cruise down the Potomac River. Among other Youth Tour highlights were a solemn and sobering visit to Arlington National Cemetery where the group laid a wreath at the Tomb of the Unknowns and a stirring Sunset Parade performance by the U.S. Marine Drum and Bugle Corps and Marine Corps Silent Drill Platoon.

The group was welcomed to the U.S. Capitol by Sens. Lamar Alexander and Bob Corker and members of the Tennessee Congressional delegation who posed for photos and answered questions.

Hope Kelley from Meriwether Lewis Electric Cooperative, Katie Torrance from Volunteer Energy Cooperative and Kaitlyn Springer from Sequachee Valley Electric Cooperative were awarded $3,000, $2,000 and $1,000 Robert McCarty Memorial Scholarships for having the first, second and third place papers of the more than 10,000 papers submitted across the state. McCarty was an employee of Volunteer Energy Cooperative and long-time chaperone on the annual youth tour. McCarty lost a battle with cancer in 2015, and sponsoring cooperatives renamed the scholarship in honor of his love for young people.

Megan Lewis, a senior from Tri-State Electric Membership Corporation, was awarded the $10,000 Cooperative Youth Ambassador Scholarship. Lewis was a 2015 delegate of the Washington Youth Tour. In the year following the tour, delegates who remained engaged with their sponsoring cooperative and completed certain community service requirements were eligible for the scholarship. Lewis’s name was randomly selected from among the 70 delegates from across the state who completed the requirements.

“Our commitment to community is what sets cooperatives apart from other businesses,” said David Callis, CEO of the Tennessee Electric Cooperative Association. “The Washington Youth Tour is one way we show the youth of our service area that their co-op is more than their electricity provider. We genuinely care about the prosperity of our communities, and that includes providing special opportunities for these exceptional students and preparing them for future success.”

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NRECA Names Former U.S. Rep. Jim Matheson New CEO

(Arlington, Va.) — The National Rural Electric Cooperative Association (NRECA) today announced that former U.S. Rep. Jim Matheson has been selected to serve as NRECA’s 6th chief executive officer. Matheson will succeed Jo Ann Emerson, who was stricken by a severe illness in August of last year.  He will join the association and assume his duties as CEO in July.

“On behalf of our board of directors, we are extremely excited to have Jim join NRECA,” said NRECA President Mel Coleman. “Jim will bring to the position a broad knowledge of the issues facing rural America and will be an inspirational leader for America’s Electric Cooperatives.”

Matheson currently serves as principal, public policy practice for Squire Patton Boggs, a large well-respected international law firm based in Washington, D.C.  During his tenure in the U.S. House of Representatives, from 2001 to 2015, he served as a member of the House Energy & Commerce Committee.  The respect Matheson has on both sides of the aisle, and his ability to bridge political and policy divides to find common ground, will serve NRECA and all member cooperatives very well.

“I am excited by the opportunity to lead NRECA and to continue to build on its remarkable record of service to its members,” Matheson said. “I am honored to be associated with this member-driven organization that has a strong reputation for quality and integrity.  I look forward to working collaboratively with all of the cooperative community as we look to the future.”

In addition to his extensive background in Congress and public policy, Matheson worked in the energy industry for several years.  He was a project development manager in the independent power industry. He worked at two consulting companies, including his own firm, providing services to large energy consumers.

Jim was born and raised in Salt Lake City, Utah.  He attended public schools in Salt Lake City, received a Bachelor’s Degree in Government from Harvard University, and an MBA in Finance and Accounting from UCLA.

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Youth Tour inspires students, fosters civility in an era lacking it

By Justin LaBerge

On a mild Monday evening less than a week after Mardi Gras, 18-year-old Collin Craig was sitting in a downtown New Orleans hotel room talking to himself. He wasn’t having some sort of psychological episode; he was practicing an important speech.

The next day Collin would stand on a stage in a giant exposition hall at the New Orleans Convention Center. Behind him would be a dazzling array of video screens, some projecting his image larger than life. In front of him would be a sea of 6,000 faces, all several decades older than him, and all quietly waiting to hear what this high school senior from Slocomb, Ala., had to say.

Tuesday morning arrived, and Collin stood backstage in the green room waiting. The emcee called his name, music started playing, and Collin climbed up the steps and into the spotlight. He stood at the podium, and, reading from the kind of teleprompter that’s typically reserved for presidents, told the crowd gathered for the 74th annual meeting of the National Rural Electric Cooperative Association (NRECA) about the journey he’d taken in the past year.

A year earlier, Collin had been selected by Wiregrass Electric Cooperative to participate in the 2015 Electric Cooperative Youth Tour.

Every June, nearly 1,700 students from electric cooperatives across the country, including 134 from Tennessee, converge in our nation’s capital for the Youth Tour. Students spend the week visiting monuments and museums, meeting Senators and members of Congress from their state, learning about leadership and the cooperative business model, and forging lifelong friendships with fellow Youth Tour participants from far-away places who were strangers just a few days before.

Each of the 44 states that participate in the program selects one member of their delegation to represent it on the Youth Leadership Council. Members of the council come back to Washington for additional leadership development experiences, serve as youth ambassadors at events hosted by their state’s electric co-ops and represent their states at the annual meeting of America’s electric cooperatives.

The Youth Leadership Council elects one of its members to be the group’s spokesperson and deliver an address at the annual meeting. Last year, they selected Collin.

In his speech, Collin told the audience, “there is a bigger picture that can only be reached through the actions we take to make the world a better place. We can’t do that by ourselves. It’s a collective effort from the leaders in our community who take action and look beyond their own lives.”

When he concluded his remarks, he was given a standing ovation and NRECA President Mel Coleman praised Collin and his 43 fellow members of the Youth Leadership Council.

Though Collin was the man in the spotlight at the annual meeting, all Youth Leadership Council members are leaders in their schools, communities and extracurricular activities.

Shantelle Des Marais, a freshly minted high school graduate from Pipestone, Minn., is one of them.

As a three-sport athlete and competitive dancer, Shantelle keeps a busy schedule. Though she is active in her community, coaching children enrolled in beginner gymnastics and track programs at the local rec center, she had never really paid attention to politics.

Last year, she saw a flyer for a program sponsored by her local electric cooperative, Sioux Valley Energy, called EmPower Youth Leadership. She talked to her school counselor and applied for the program.

After completing the program, she was selected to be a member of the Minnesota Youth Tour delegation, and was later chosen to be the state’s Youth Leadership Council delegate.

“At the start of this whole process, I didn’t even know what a co-op was at all,” Shantelle said. “Now I’ve learned so much about the model and the Seven Cooperative Principles, and it reminds me of how I’d like our country to run. I wish we could all keep those principles in mind and be good to one another.”

Her experience with Youth Tour and the Youth Leadership Council inspired the 18-year-old to get involved in her first presidential election. Not only did Shantelle caucus for the first time, she was selected to be a county delegate.

“The best thing about this whole experience is that it has opened my eyes to different possibilities,” she said.

Another young woman who participated in this eye-opening program was Emma DeMaranville from Tonganoxie, Kan.

Emma was familiar with her local electric cooperative, but had no idea how many different types of cooperatives there are and the impact they’ve had throughout the U.S. and the world.

Her grandmother had seen the opportunities other students had gained through the Youth Tour program and urged Emma to apply.

An active member of Family Career and Community Leaders of America who also participates in forensics, debate and theatre, Emma was selected to represent Leavenworth-Jefferson Electric as a member of the Kansas Youth Tour delegation.

“Every kid on Youth Tour has big aspirations, and their goals inspired me to do something with my career and future that could make an impact,” Emma said. “Being in the nation’s capital with some of the most passionate and intelligent people I have ever met made me feel like I could do anything.”

One common theme mentioned by all three of these young leaders was the need to cooperate, be respectful and find common ground to solve problems.

Collin recounted the many spirited conversations he had with other YLC delegates on important issues. “There were times when we might have different opinions, but there were never any fights, rivalries or hatreds. In fact, we used these debates to strengthen each other. We learned how to unite. Diversity doesn’t cause adversity, it can demolish it,” he said.

Emma said she’s gained a better understanding of other people, and the similarities and differences in their lives. “I want to do bipartisan work to make a difference for the people around me. Youth Tour helped me see the struggles others face, and has instilled in me a desire to create change on a global level.”

Shantelle said her experiences have helped her realize that great leaders are real people, too. “You go to the Martin Luther King, Jr. Memorial or the Lincoln Memorial, and you think about the great things these leaders did and how they helped me get where I am today. It always feels like something so far off. But then I got to meet my Senators and you realize that they’re real people and maybe I could do this some day.”

All three of these students plan to attend public universities in their home states this fall, and say the experiences they’ve gained over the past year have influenced what they’ll study and how they plan to live their lives after college.

“If you had asked me a year ago what I wanted to do with my life, I would’ve said ‘I don’t know. Probably something with computers.’ I still plan to major in computer science, but that’s just the foundation for many different things Youth Tour has inspired me to pursue,” Collin said.

Youth Tour is a joint investment made by your local electric cooperative, the Tennessee Electric Cooperative Association and the National Rural Electric Cooperative Association. When Youth Tour participants arrive in Washington each June, the expectation is that they will learn from our political leaders and be inspired to do great things in their communities.

Based on the wisdom and maturity displayed by Collin, Shantelle and Emma, our future is certainly bright, and our current elected leaders could learn as much from the students as the students learn from them.

Justin LaBerge 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.

 

  • How do co-op youth programs impact our local communities? Read [link or reference article] to find out. <IMAGE>

 

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What’s in it for “we?”

One of the most attractive features of cooperatives is that we answer the popular question, “What’s in it for me?” with “What’s in it for we!” Cooperatives are formed when the market fails to offer a good or service, with decent quality, at an affordable price. Electric cooperatives in Tennessee were formed in the 1930s because, when investor-owned utilities realized there was not enough profit to be made in our community, they refused to offer electricity.

The founding members of these co-ops went door to door to collect $5 in order to raise a portion of the original investment the co-op needed. Those “go-getters” realized the only way to get electricity for me was to get it for we, the whole community.

Cooperative ownership is in the hands of the people who use the co-op’s goods and the services (not investors), so not only do co-ops start out answering the question of “What’s in it for we?” – they continue to answer that question for as long as they exist.

These days, we often hear about companies that abandon their local communities and move overseas in search of cheaper labor. This negatively impacts the community through job loss, decline in housing values and school closures. Because local residents own a majority of cooperatives, they are less likely to leave their community. In fact, it would be impossible for Tennessee’s electric cooperatives to operate elsewhere. The co-op is a critical part of what makes the community a community.

The way co-ops continue to answer the question, “What’s in it for we?” is critical to their survival. It is imperative that we keep you – our members – as the primary focus. Keeping rates as low as possible is one major part of that focus, but ensuring that we provide real value as your trusted energy advisor is also extremely important.

By maintaining that focus with your help and support, we will continue to be able to serve the “me” and the “we” in our community long into the future.

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Co-ops are prepared for summer storms

Summer is here, school is out and families are gearing up for a few months of fun and relaxation. While summer brings much fun in the sun, it can also bring the occasional severe storm. In the event of a power outage, you can trust that your local electric cooperative is ready to respond.

The major cause of most power outages comes from damage to power lines due to falling trees and branches. We work year round – through right-of-way clearing – to ensure power lines in our service territory stand little risk of being damaged by trees, branches or other types of vegetation.

Despite our best efforts, during major storms, damage can occur to transmission stations, substations and power lines. When this happens, our first priority is to safely restore power to as many members as possible in the shortest amount of time.

We start by mobilizing our line crews and other critical staff. Every phone line available is utilized to take your outage report calls. The big problems are handled first – like damage to transmission lines, which serve tens of thousands of people. These problems must be corrected before we can focus on other areas where more localized damage may have occurred.

Co-op line crews inspect substations to determine if the problem starts there, or if there could be an issue down the line. If the root of the problem is at the substation, power can be restored to thousands of members.

Next, line crews check the service lines that deliver power into neighborhoods and communities. Line crews repair the damaged lines, restoring power to hundreds of people. If you continue to experience an outage, there may be damage to a tap line outside of your home or business. Make sure you notify your local co-op so crews can inspect these lines.

We will do our best to avoid power outages, but sometimes Mother Nature has other plans.

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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June 2016

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Members speak up at 2016 TECA TennCom Conference

The name was not the only change visible in this year’s TECA Marketing, Communications and Member Service Conference, now known as TennCom. A new session allowed attendees to hear from co-op members.

Four co-op members from various backgrounds and all parts of the state participated in the first “State of the Member” panel discussion. Panelists were Wendy Abbott from Sequachee Valley EC, Ashley Brown from Duck River EMC, Ryan Hysmith from Southwest Tennessee EMC and Tarren Quarrels from Tennessee Valley EC .

“It is incredibly important that we understand the needs of our members,” says Trent Scott, Vice President of Strategy for TECA and facilitator of the panel discussion. “We recognize that this was not a scientific study, but it does provide co-op employees with valuable insights into the perceptions, ideas and attitudes of co-op members.”

When asked if the panelist considered themselves customers or members, one responded “customer” and three responded “both.” “I said customer, but if you stress what it means to be a member, you feel like you are not just buying something. You feel like you are getting more for your money,” said Ryan Hysmith, a finance professor at Freed Hardeman University and member of Southwest Tennessee EMC. “I agree,” added Tarren Quarrels, a small business owner and member of Tennessee Valley EC. “I think that education on the benefits of being a member over a customer is important. Explaining that you are a partial owner helps people know that their voice is being heard.”

When asked how they paid their bills, the two older members reported paying online and the younger panelists reported paying in the office. “I have always been an old-school person, and we always paid in person. About six months ago, I did go online and pay our bill, and it is awesome,” said Wendy Abbott. “These were not the responses that I expected, but it is a good reminder that age, or any other demographic, is not an accurate way to predict member preferences,” says Scott.

When asked what source was used to generate a majority of the energy in their home, three of the four panelists responded “hydro.” “It is helpful for us to be aware of misconceptions,” says Scott. “We must not simply ask our members to take action on issues, but we must also help them understand how those issues affect them.”

The panel shared their thoughts and opinions on other topics such as energy efficiency, rates, legislative activities and broadband. Listen to audio of the entire session above.

 

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Become a Co-op Voter

If you are a co-op director, every few years you ask people to vote for you. Here is a question for you – when was the last time you voted in a political election?

As member-owned electric cooperatives, voting is already in our DNA. By holding membership meetings, it’s how we maintain electric utilities which are responsive to our members needs. But voting also plays a crucial part in our representative democracy. Federal, state and local elections offer an opportunity to exercise a civic responsibility — to select the best leaders for our communities.

Yet in places all over America, especially in areas served by electric cooperatives, we aren’t exercising that right. In the 2012 national elections, voter turnout dropped overall, but the decline in rural counties was 18 percent—twice that of the nation as a whole.

And when voters miss the chance to vote, they also lose the opportunity to communicate their concerns to our leaders about the issues that matter to us, where we work, live, and raise families.

Reliable electricity, access to rural broadband and the quality of our healthcare system are just a few issues we all care about. Still, they only become priorities if enough people show elected officials that they are paying attention. Registering to vote and voting are the most effective ways to send this message.

When we go to the polls with the cooperative principle of “Concern for Community” in mind, we instantly improve our political system. It’s a system designed to produce a government “of the people, by the people and for the people.”

I’d like you to join me in a new initiative to get every eligible person registered to vote—you, me, family, friends, and co-op employees—and take the pledge to BECOME A CO-OP VOTER.

This campaign will help get out the vote and insert issues important to co-ops into the public discussion. “Co-ops Vote” will help boost voter turnout in our service areas to ensure that our voices are heard loud and clear every day, and especially on Election Day.

Visit vote.coop and take the pledge to BECOME A CO-OP VOTER to support your community and electric cooperative when casting your vote in 2016. The site will give you information on your elected officials and candidates, the voter registration process, election dates and locations, and background about eight key co-op issues we want our elected leaders to understand: rural broadband access, hiring and honoring veterans, low-income energy assistance, cybersecurity, water regulation, rural health care access, affordable and reliable energy, and renewable energy.

It’s critically important that we increase rural voter participation in National, state, and local elections. If you’re not registered to vote, you need to do so by July 5th to be able to vote in primaries and many local elections. It’s easy to do and it only takes a few minutes. You can access links to register to vote online at vote.coop

Co-ops Vote is non-partisan. It’s critically important that we increase rural voter participation in National, state, and local elections. Another good way to help on a personal level is this: If you are campaigning for re-election to your co-op board this year, take an extra moment and ask that member to go to vote.coop and take that pledge to become a co-op voter! Please help our rural voice be heard!

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2016 Legislative Wrap Up

On Friday, April 22, after several hours of debates and disagreements between the House and the Senate over controversial amendments to bills, the second session of the 109th General Assembly adjourned for the year.

The final days of session often equate to the last days of school for students, and legislators begin to lose some of the normal decorum. One Representative sang a portion “Purple Rain” in honor of the passing of Prince, while another displayed a mixed martial arts belt, saying he brought it to the House chambers because he was “ready to rumble.” Finally, as legislators filed out of the Capitol after their last floor session of 2016, staff members clapped and cheered.

Nevertheless, the legislature had a productive year filled with the passage of legislation that will impact all Tennesseans. Among these include a plan to end the Hall income tax by 2022, approval of a property tax break for disabled veterans, creation of online voter registration and an increase in K-12 school funding of $223 million.

Other hotly debated topics included an attempt by the House to override Governor Haslam’s veto of the legislation making the Bible Tennessee’s official state book (failed), directing the attorney general to sue the federal government over its refugee resettlement program (passed), and defunding the University of Tennessee’s Diversity Office and using the money to pay for minority scholarships (passed).

TECA staff worked diligently this year to ensure that electric co-op interests were protected, and this session was a productive and successful one. Below is an update of the top priorities for TECA this year.

  • Ad Valorem Tax/Unclaimed Property: TECA supported an effort to delete an ad valorem tax exemption and update the unclaimed property process for electric co-ops passed unanimously in both the House (95-0) and Senate (33-0) Chambers. TECA staff is pleased with the smooth passage of this legislation and grateful to the sponsors, Representative Art Swann (R-Maryville) and Senator Ken Yager (R-Kingston), for carrying it on our behalf.
  • Drones Near Infrastructure Facilities: TECA supported a bill that creates a prohibition against using a drone to photograph or video critical infrastructure facilities, such as electric generation and transmission facilities, as well as distribution substations. The bill has passed the full Senate and House, and has been signed by the Governor.
  • Property Assessed Clean Energy Act (PACE): Allowed local governments to lend money to property owners to install distributed generation and energy efficiency improvements, with repayment of the loan being made through a special assessment against the property tax. The legislation was opposed by TECA and other organizations because it ignored the process and requirements of TVA for distributed generation and interconnection, and did not satisfactorily address safety concerns. The legislation was placed in a summer study, and TECA staff will monitor the progress of any study and keep you informed of the outcome.
  • Broadband: Three separate broadband bills were withdrawn this year due to lack of support by the House Business & Utilities Subcommittee. The Broadband Expansion Act, which would have provided electric co-ops retail authority and was supported by TECA, was the first proposal that would have recognized electric co-ops as potential broadband providers. Other failed bills included two that would have authorized municipal electric systems to expand broadband service outside of their service territory. Even though support from the committee was lacking for all three proposals TECA anticipates a compromise proposal to be introduced next year.

Throughout the summer, TECA staff will continue to monitor the progress of the studies being conducted by the Department of Economic and Community Development and the Tennessee Advisory Commission on Intergovernmental Relations, and we remain hopeful that the outcome of the studies will bring Tennessee one step closer to solving the problem of rural broadband access.

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May 2016

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Reliable electricity is becoming even more reliable

Your electricity is on almost all the time. You knew that.

But you might not know how much of the time it’s on. And that the amount of time it’s on has been getting better every year.

Electricity has become so reliable that the numbers for a typical American home sound crazy. For most people, the total amount of time without power (an outage) is less than two hours a year—that means their electricity is on 99.977169 percent of the time.

“You can’t have 100 percent reliability all the time on something as large as an electric distribution system,” says Tony Thomas, principal engineer at the National Rural Electric Cooperative Association. And although U.S. electric service on-time is just a decimal point from perfect, Thomas says, “Reliability has been getting much better.”

To understand the improvements in electric utility reliability, you need to be introduced to what Thomas says are known as “the three sisters:” the acronyms SAIDI, CAIDI and SAIFI.

Those stand for different ways to measure how power outages affect consumers. Here’s what they mean:

SAIDI shows how long an average customer goes without power during a year. It stands for System Average Interruption Duration Index. It’s calculated by dividing all of a utility’s power interruptions by the number of customers that utility serves. Analysts caution against citing a national average SAIDI because of the huge differences in utilities across the country and how data is collected. But a report from the Institute for Electrical and Electronics Engineers (IEEE) puts the typical customer as being without power 115 minutes a year.

SAIDI numbers do not include extremely long or very short outages, since they could drastically skew the results among utilities and make the numbers less useful. Extremely long outages, like those caused by a major storm, can sometimes last more than a day. The short outages that are not included in SAIDI are, for example, cases like a utility circuit breaker quickly opening and closing.

SAIFI shows how often the power goes out for each customer. It stands for System Average Interruption Frequency Index. It’s calculated by dividing the number of customer interruptions by the number of customers.

CAIDI shows the average time it takes to restore power after an outage. It stands for Customer Average Interruption Duration Index. It’s calculated by dividing SAIDI by SAIFI.

All three of those reliability measures have been improving in the past few years, according to IEEE reports. The amount of time a utility customer was without electricity for the year (SAIDI) declined about 20 percent in the most recent four years of figures, from 143 minutes in 2011, to 115 minutes in 2014.

The number of outages per typical consumer in a year (SAIFI) went down from 1.16 to 1.07. And how long each of those outages lasted (CAIDI) declined from 117 minutes in 2011 to 104 minutes in 2014.

Thomas credits advances in utility technology for those improvements.

More and more mechanical electric meters are being replaced with automated smart meters that do more than just measure the bulk use of electricity coming to the meter at your house. They can also monitor whether electricity is delivered to your house at all, as well as the voltage quality of that electricity.

“With automated meters, utilities can know a consumer is out of power before the consumer knows it,” Thomas says.

Another step toward utilities spotting and solving outages faster is the more widespread adoption of high-tech monitoring systems. These SCADA systems (it stands for Supervisory Control and Data Acquisition) are typically set up as several computer monitors in a control room, each showing a different view of the utility’s service area, including weather maps and detailed schematics of each power line, substation and home or business served.

“Prices have dropped for SCADA systems, just like for all software in the last few years,” Thomas says. “Utility technology has gotten a lot better in the last 10 years.”

Thomas credits electric cooperatives with making special use of technology to overcome the barriers of long distances between consumer-members. Outages and other routine changes in power flow can be more quickly and easily addressed remotely, without having to make a long drive to a home or substation.

“Rural electric co-ops have done an amazing job of adopting technology and putting it to use,” Thomas says. “And all this technology just translates into better operation of the electric system.”

Rise of Reliability

Rise of Reliability

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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