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Monogram Refrigeration to expand operation in Pickwick EC service area

Refrigeration products manufacturer to create 210 new jobs in Pickwick Electric Cooperative service area

Tennessee Gov. Bill Haslam, Department of Economic and Community Development Commissioner Bob Rolfe and Monogram Refrigeration, LLC officials recently announced that the company will expand its manufacturing facility in Selmer. Monogram, a leading manufacturer of upscale refrigerators, freezers and other refrigeration products, will invest $9.3 million and create approximately 210 new jobs in McNairy County. The company’s manufacturing facility has been located in Selmer since 1986.

“In Tennessee, we strive to make our state the perfect location not only for companies to locate new operations, but for existing companies to expand,” Haslam said. “With our ready-to-work workforce and business-friendly climate, existing companies are able to excel in Tennessee. I thank Monogram, one of our most well-known brands, for reinvesting and expanding in Tennessee and for helping us get one step closer to our goal of making Tennessee the No. 1 location in the Southeast for high quality jobs.”

“I want to thank Monogram for choosing to expand in McNairy County and for creating 210 new jobs in Selmer,” Rolfe said. “Monogram has a long history in Tennessee, and it means a great deal that a company of this magnitude is expanding its operations here and creating even more job opportunities for Tennessee residents. This is a fantastic win for Selmer and McNairy County, a Tier 4 Distressed county, and I appreciate Monogram for its continued investment in Tennessee.”

Monogram is a subsidiary of GE Appliances (GEA), a Haier company, a leading U.S. manufacturer of household appliances.

“The state of Tennessee and McNairy County have been terrific partners. They’ve worked with Monogram over the years as we’ve grown our refrigeration business in Selmer,” Raymond Deming, vice president, Monogram Refrigeration Operation, LLC, said. “Now, their continued support will help us bring to Selmer an entirely new product line and create approximately 210 jobs ranging from production associates, skilled trades and professional employees that will take our employment close to 400.”

With this expansion, Monogram will be adding 120,000 square feet to its existing building in Selmer. In addition to a new line of column-style refrigerators and freezers, Monogram will begin manufacturing packaged terminal air conditioners (PTACs), a line of commercial heating and cooling products sold under the Zoneline® brand. Production of the new refrigeration products will begin later this year and production of the new Zoneline air conditioning units will begin in early 2018.

“What a great day for the town of Selmer and McNairy County,” McNairy County Mayor Ronnie Brooks said. “I want to thank GEA-Haier for investing in us. We appreciate the confidence that the company has placed in our county, our economic development team and our great workforce here in McNairy County.”

“This is great news for the town of Selmer and our workforce,” Selmer Mayor John Smith said. “I am very pleased that GEA-Haier is expanding and bringing over 200 quality jobs to the town of Selmer. This is a true testament of the company’s confidence with our local team, the State of Tennessee and the leadership at the manufacturing facility in our community.”

“I am thrilled that GEA-Haier has chosen to make this investment in Selmer,” McNairy County Economic Development CEO Eddie Crittendon said. “These 210 jobs will have a huge impact on this community. Monogram has a great team here in Selmer and I am honored that GEA-Haier has chosen to grow with us here in McNairy County.”

“TVA and Pickwick Electric Cooperative congratulate Monogram Refrigeration on its plans to invest and expand operations in Selmer, Tennessee,” TVA Senior Vice President of Economic Development John Bradley said. “We are pleased to partner with the state of Tennessee, McNairy County Economic Development, the City of Selmer and McNairy County officials to help existing companies like Monogram thrive and add jobs in the community.”

Selmer and McNairy County are represented by Sen. Dolores Gresham (R – Somerville) and Rep. Ron Gant (R – Rossville) in the Tennessee General Assembly.

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Move Over media release 2018

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Cold Winter Helps TVA Set Records

by Michael W. Kahn, staff writer for NRECA

After seeing the mildest winter in almost five decades last year, the winter of 2018 was a very different story for the Tennessee Valley Authority.

A colder-than-normal January helped TVA set three of its top 12 winter peak demand records, as well as an all-time record for energy demand in a 24-hour period: 706 million kilowatt-hours.

The provider of electricity to more than 150 co-ops and municipal systems reported May 4 that electricity sales climbed 6 percent in the first six months of fiscal 2018. At the same time, operating costs were down 4 percent, which TVA credited to more hydro and natural gas production, along with cheaper natural gas.

TVA raised base rates 1.5 percent last October. But John Thomas, chief financial officer, said the authority was “able to more than offset” that through fleet performance and lower fuel costs.

While the base rate increased from 4.8 cents to 5 cents, the fuel rate slipped from 2.1 cents to 1.8 cents. “So the overall effective rate to our customers is lower this year for the first six months than it was last year,” Thomas told a conference call.

TVA retired its Johnsonville Fossil Plant in December and its Allen Fossil Units 1-3 in March. But Bill Johnson, TVA president and CEO, made clear, “We expect coal-fired assets to continue to be part of our diverse generating mix for years to come.”

“We have continued to invest in our coal fleet, which remains an important part of TVA’s system,” he told the call.

Still, “TVA believes a diverse portfolio will continue to provide the most consistently low rates for our customers,” Johnson noted.

“One of the major changes for us is more nuclear capacity,” he said. “More nuclear power is a key part of our effort to make TVA’s power system cleaner and more diversified.”

For the first half of fiscal 2018, TVA said net income was up 140 percent from a year ago, to $750 million. Operating revenues were $5.3 billion, an increase of 5 percent from a year earlier.

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Co-ops advance agenda during 110th General Assembly

Working late into the evening, the 110th General Assembly completed its work and adjourned SINE DIE on Wednesday, April 25, 2018. At least, we think they did (see below). It was a successful session for Tennessee’s electric cooperatives. Two significant pieces of legislation championed by co-ops are now law, and numerous bills with negative impacts were defeated.

Given that the final hours included acrimonious debate between the chambers, tension between the House and Senate was high. The first bill of the final day became the final bill of the session, as it required two separate Conference Committees to reconcile differences in the language. What was so unusual was that the committees produced the same legislative language in their reports. The first one failed when voted on by the House, the second (and identical) one passed several hours later.

However, the more detail-oriented Capitol watcher may wonder whether or not adjournment actually took place. According to the State Constitution, the legislature can only adjourn if either the House or the Senate passes a joint resolution and the other body concur in the same resolution. That is not what happened in 2018. After the long and sometimes bitter final day, both chambers passed their own resolutions and neither body formally endorsed the other one.

Barring a constitutional crisis, don’t expect any members of the legislature to call for their colleagues to return to Nashville to correct the formality, though. Election season has now begun.

Elections will re-shape representation

The summer and fall of 2018 will likely see record amounts of campaign activity. Six republicans, three democrats, and 26 independent candidates have filed petitions to be listed on the ballot to become Tennessee’s 50th governor since the term-limited Bill Haslam is unable to seek a third term. A competitive race to replace the retiring Bob Corker in the United States Senate could have national implications in terms of which political party controls the majority of seats. These two statewide races alone could result in over $50M of campaign spending as television commercials and direct mail pieces flood the state.

Additionally, three of the nine members of the United States House of Representatives are either retiring or seeking other office. This means the citizens of their districts will have the opportunity to elect new members of Congress. In the case of the 2nd Congressional District, in Knoxville and surrounding areas, it will be the first time since 1965 the Congressman will not hav the last name Duncan.

And now that the legislature has adjourned, state candidates are free to join their federal counterparts and fully engage in fundraising activities. Many primary elections will immediately kick into high gear, as the high degree of change could result in as much as one-third of the state legislature being new in 2019. Among state representatives who represent districts that include a electric cooperative, only two incumbent House members are running for re-election without opposition.

This election season will test the ability of co-ops to effectively engage with their legislative delegations. TECA staff stands ready to help member electric systems connect with candidates and demonstrate cooperative principle number seven – Concern for Community.

2018 Legislative Summary

Short summaries of the major issues that were enacted into law are provided below. In addition to the summaries provided below, you can view the final bill reports for this session, which include information about numerous pieces of legislation that were defeated throughout the year (smart meters, round up programs, utility board composition, and others).

Electric Cooperative Easements

SB 1646 / HB 1591

The State House and Senate approved legislation that will ensure efficient use of cooperative infrastructure for the provision of telecommunications and broadband services. After passage of the Broadband Accessibility Act in 2017, electric cooperatives were allowed to sell retail broadband services for the first time in their history. However, as many co-ops began to examine the possibilities a significant stumbling block to providing these services needed to be removed.

The fastest route to building broadband networks is for a cooperative to utilize its existing poles and routes of electric line for installation of new fiber-optic cables. However many of those routes cross private property, where the easement allowing access to the property was either prescriptive or limited to the provision of electric energy. This same issue has been the subject of significant litigation in Missouri, so TECA’s government relations team set out to change state law. Senator Ken Yager (R-Kingston) and Representative Gerald McCormick (R-Chattanooga) filed legislation to ensure that any easement used by a cooperative for the provision of electric energy could also be used for the co-op’s secondary purposes.

Thankfully, the General Assembly listened and passed Senate Bill 1646. After consideration by seven committees as well as the full House and Senate, the bill was approved unanimously. While other states have struggled with this issue, this legislation serves as a fantastic example of how electric cooperative’s unified voice can make a real difference at the Capitol.

Click here to see the final version.

Sales Tax on Utility Fees

SB 2121 / HB 2232

In response to an anticipated rule-making from the Department of Revenue, TECA joined with TMEPA, the Tennessee Gas Association, the Tennessee Association of Utility Districts, and the Tennessee Municipal League to propose legislation that prohibits the Department from applying sales tax to many fees charged to commercial and industrial utility customers. These fees, such as connection fees, have never before been subject to sales tax. The bill was sponsored by Sen. Ken Yager (R-Kingston) and Rep. Steve McDaniel (R-Parkers Crossroads).

Thankfully, the legislature listened. After some initial procedural uncertainty due to the bill’s effects of “forgoing” revenue to the state, the bill sailed through committees with broad support. It was enacted and made the law of the land on April 27.

Click here to see the final version.

Small Cell Legislation

SB 2504 / HB 2279

Titled the “Competitive Wireless Broadband Investment, Deployment, and Safety Act of 2018,” legislation that was intended to promote the deployment of small cell technology to facilitate 5G wireless services was passed after significant behind the scenes negotiation. However, those negotiations never spilled over into the legislative process as committee meetings saw little public fanfare over the issue.

The new law creates minimum standards for local governments to create siting requirements for small wireless facilities, and effectively prohibits local governments from imposing stricter requirements than those prescribed in the legislation. It also creates a maximum annual rental fee that local governments may charge for allowing this equipment to be attached to its buildings, water towers, traffic signals, light poles, etc.

Importantly, the language exempts electric cooperative (and all other electric distribution) infrastructure from the effects of the bill.

Click here to see the final version.

Broadband Accessibility Grants

Recognizing the need for the State’s investment in ensuring broadband becomes available for all Tennessee citizens, Governor Haslam included $10M in his original budget proposal for the Tennessee Broadband Accessibility Grant Program which is administered by the Department of Economic and Community Development. Rep. David Hawk (R-Greeneville) and Sen. Ken Yager both presented amendment requests to their respective finance committees, at TECA’s request, that would increase the fund. Additionally, Governor Haslam recommended an additional $5M of funding through his requested supplemental amendment to the budget.

At the end of the day, the budget passed by the legislature includes a total of $15M of broadband grant funding. The department will begin accepting applications in mid-July. To learn more about the program, visit ECD’s website.

At the end of March, TECA participated in Broadband Summit with the Governor and ECD. See the story here. We appreciate the dedication that Governor Haslam and his administration has shown to electric cooperatives and their involvement in broadband.

Flickr image by Casey Fleser

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National Electric Safety Month

[NASHVILLE] – May is National Electric Safety Month. Electricity is an important part of our everyday lives, but each year unsafe and careless practices lead to fires, injuries and even deaths. Tennessee’s electric co-ops remind the public of the dangers of electricity and provides these tips to keep you and your family safe:

WHEN OUTSIDE

  • Keep people and pets away from damaged power lines and other electrical equipment. Don’t touch anything in contact with downed lines such as a car, tree, fence or clothesline.
  • Don’t climb trees or fly kites, remote control airplanes, drones or balloons near power lines. If you get something stuck on a power line, call your local electric cooperative or 911 and stay away!
  • Keep a safe distance from overhead power lines when working with ladders or installing objects such as antennas or gutters on your home.
  • If a power line falls on your car, stay inside the vehicle. Call yourself or ask someone to call 911, then your local electric cooperative. If you must exit the car, open the door and jump free of the car so that your body clears the vehicle before touching the ground. Once you clear the car, shuffle away using small steps with both feet on the ground until you are at least 50 feet away.

IN YOUR HOME

  • All electrical work should be performed by a licensed electrician.
  • Use GFCI-protected outlets in kitchens and bathrooms. Water and electricity do not mix.
  • Routinely check cords, outlets, switches and appliances for signs of damage. Immediately stop using damaged electrical devices and have them replaced or repaired.
  • Do not overload outlets with too many devices or appliances.
  • Never run extension cords under rugs or carpets.
  • When replacing bulbs, always follow recommended wattage recommendations.
  • Test smoke alarms once a month, and replace batteries once a year.
  • Don’t throw water on an electrical fire. Use an approved fire extinguisher.

ON THE FARM

  • Keep equipment at least 10 feet from lines – at all times, in all directions.
  • Inspect the height of the farm equipment to determine clearance.
  • Always use a spotter when operating large machinery near lines.
  • Use care when raising augers or the beds of grain trucks around power lines.
  • Always remember to lower extensions to the lowest setting when moving loads.
  • Never attempt to move a power line out of the way or raise it for clearance.
  • If a power line is sagging or low, call the local utility immediately.
  • If your equipment does hit a power line, stay in the cab. Call 911, warn others to stay away and wait for the utility crew to cut the power. If a fire or another situation makes it necessary to leave, jump clear and move away.

Electric co-ops routinely provide electric safety demonstrations for schools and other groups. Contact your local co-op for more information or to schedule a demonstration.

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