Our increasingly connected world is giving scammers more opportunities to connect with unsuspecting consumers, and local authorities, utilities and other businesses are working overtime to keep people informed. They suggest that ‘if you see something, say something,’ is a vigilance adage that can help prevent you, your family or your business from being victimized.   

“The Federal Trade Commission has been hearing about scammers impersonating utility companies in an effort to get your money,” said Lisa Lake, a federal consumer education specialist. “Your reports help us fight these scams.”

Electric cooperatives are among the businesses and consumer organizations supporting Utilities United Against Scams (UUAS). The international consortium of electricity, natural gas, water and sewer providers, and trade and industry associations is sharing information on payment scams, identity theft, sales and service schemes.

Imposter scams are the most common type of fraud reported to the Federal Trade Commission (FTC), according to UUAS officials. “Impersonators call homes and small businesses demanding payment for supposedly delinquent bills and threatening to terminate service.”

The frequency of the incidents picks up during peak heating and cooling seasons, in part because consumers are most concerned when temperature extremes increase the urgency of maintaining utility service.

Variations on the scam are also becoming more common. Rather than making an initial claim that a consumer owes an outstanding balance, some scammers are now claiming an overpayment is the reason for a telephone call to a consumer. They will make contact in an attempt to get banking information so they can process a refund.

“Never give banking information over the phone unless you place the call to a number you know is legitimate,” wrote the FTC’s Lake in an FTC blog.

There has also been an uptick in door-to-door scams by people claiming to represent utility providers like your electric co-op. Representatives knock or ring the doorbell offering to replace or repair a meter or other device, or solicit personal information to sign a consumer up for programs that could reduce their energy bills.

They may try to charge you for the phony service, sell you unnecessary products, collect personal information for use in identity theft or simply gain entry to steal valuables, officials said.

High-pressure demands are a common tactic in many of the schemes. Urging immediate decisions or actions, like immediate payment, particularly by a specific option like a gift card, wire transfer, cell phone or third-party computer app should raise serious concerns.

Utility-connected scams are common, because utility services are so common. Lighting, heating, water and sewage services are all essential to modern living, so any threat of service disconnections can provoke a lot of anxiety.

Your first defense is personal awareness of your account status, including knowing whether balances are up to date. This is becoming more important as scammers use more automatic dialers or robocalls to phish for potential marks.

“Even if the caller insists you have a past due bill, that’s a big red flag,” said Lake, offering an alternative response. “Contact the utility company directly using the number on your paper bill or on the company’s website. Don’t call any number the caller gave you.”

The House on Tuesday passed the RURAL Act, protecting more than 900 electric cooperatives throughout the nation from the risk of losing their tax-exempt status when they accept government grants for disaster relief, broadband service and other programs that benefit co-op members.

The Senate is poised to pass the bill later this week, and President Trump is expected to sign it into law.

The RURAL Act was NRECA’s top legislative priority for the year because of the profound threat to the business model of not-for-profit co-ops. Tens of thousands of co-op leaders, employees and members across the country rallied to advocate passage of the bill.

Lawmakers passed the popular bipartisan legislation in the final hours of the 2019 session as part of a larger tax and spending bill that funds the government through September 2020.

“We are grateful to members of the Tennessee delegation who supported this important legislation,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “While these changes may seem subtle, they will have a meaningful impact on Tennessee co-ops and the people they serve – lowering costs, protecting rates and encouraging investment in rural infrastructure.”

The Tennessean published a guest editorial by TECA calling on lawmakers to support the Rural Act. The op-ed appeared online last week and in print today.

The bill’s passage fixes a problem created in 2017 when Congress passed the Tax Cuts and Jobs Act, which redefined government grants to co-ops as income rather than capital. That change made it difficult for many co-ops to abide by the 15% limit on non-member income to keep their tax-exempt status. The RURAL Act once again exempts grants from being counted as income and is retroactive to the 2018 tax year.

Without the fix, some co-ops would have had to start paying taxes this spring after receiving grants in 2018 or 2019 to repair storm damage, bring high-speed internet to rural communities or invest in renewable energy and energy-efficiency programs. Many co-op leaders feared they would have to raise rates for members to pay the new taxes.

The legislation attracted more than 300 co-sponsors in the 435-member House and more than half of the senators. The effort was led in the House by Reps. Terri Sewell, D-Ala., and Adrian Smith, R-Neb., and in the Senate by Rob Portman, R-Ohio, and Tina Smith, D-Minn.

NRECA lobbyist Paul Gutierrez credited the victory to a collaborative campaign strategy that included co-ops’ grassroots efforts to alert their senators and representatives to the issue.

“This was an amazing NRECA team and membership effort, including co-op members at the end of the line,” he said. “We had great legislative champions in the House and Senate, and they worked tirelessly to get this included in the final tax package.”

The following op-ed by David Callis appeared in The Tennessean on Friday, Dec. 13. You can view the article on The Tennessean’s website.

PASS THE RURAL ACT

An op-ed by David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association

In 2016 the Tennessee legislature and the governor’s administration published reports about the lack of broadband in rural areas. A major area of concern was the prohibition on electric cooperatives providing broadband and a lack of funding.

As a result, the General Assembly passed the Tennessee Broadband Accessibility Act in 2017 to ensure that one day all Tennesseans will have access to broadband internet. The legislation allows electric cooperatives to provide broadband internet service and provides grants to jumpstart the efforts of willing providers.

Lawmakers in Washington, D.C., have also recognized the need for rural broadband deployment. Since low population density and high costs are major hurdles to successful rural broadband deployment, state and federal grants are essential tools in efforts to bridge the digital divide. Congress recently appropriated more than $600 million that will be distributed through the USDA’s Re-Connect program that focuses exclusively on expanding access to broadband in rural America.

However, another significant hurdle surfaced last year. An unintended consequence of federal tax law changes threatens to impose additional financial burdens on rural communities and hamper broadband expansion.

Let me explain. Most of the nation’s 900 consumer-owned electric co-ops are recognized as tax-exempt organizations by the IRS as long as they receive no more than 15 percent of their income from non members.

Under the 2017 tax law, federal, state and local grants now count toward that 15 percent threshold. If that limit is exceeded, a co-op will lose its tax-exempt status for that year. Lawmakers acknowledge that the threat to electric co-ops is an unintended consequence.

This undermines a successful business model that has served America’s rural communities well for decades. It doesn’t matter if the money is for storm recovery, broadband deployment or economic development. If a co-op’s non member income exceeds 15 percent because of the grant, the cooperative could be forced to pay taxes on the grant amount.

Last month, Forked Deer Electric Cooperative was the first cooperative in the nation to receive a grant from the U.S. Department of Agricutlure’s new Re-Connect program. They were awarded a $2.8 million grant that will allow the cooperative to reach areas across 425 square miles of their sparsely populated West Tennessee service area that lack broadband service. U.S. Secretary of Agriculture Sonny Purdue toured Lauderdale County, and during his speech announcing the grant, he told the audience, “We know when rural America thrives, all of America thrives.”

I couldn’t agree more.

However, receiving this grant puts the co-op dangerously close to the 15 percent limit for non member revenue. If Forked Deer Electric Cooperative is fortunate enough to receive additional grants for broadband or economic development, they could easily exceed the 15 percent limit. If a natural disaster caused significant damage to the electric system, grants from FEMA (Federal Emergency Management Agency) could also force the cooperative into becoming taxable.

Rural America faces serious challenges, and few organizations are investing more money and effort into solving these problems than consumer-owned electric co-ops.

Congress inadvertently created this problem, and now co-ops are urging Congress to fix it. Pending bipartisan legislation known as the RURAL Act (H.R. 2147 and S.1032) clarifies that government grants should not jeopardize the tax-exempt status of electric co-ops. The act, introduced by Reps. Terri Sewell (D-Ala.) and Adrian Smith (R-Neb.) and Sens. Rob Portman (R-Ohio) and Tina Smith (D-Minn.), will restore certainty and common sense.

The bipartisan RURAL Act has been co-sponsored by nearly all of Tennessee’s congressional delegation, including Sen. Marsha Blackburn and Reps. John Rose, Phil Roe, Tim Burchett, Scott DesJarlsis, David Kustoff, Chuck Fleischman and Mark Green. We thank them for their support. Their leadership and commitment to helping rural Tennessee will help ensure that co-ops won’t jeopardize their tax-exempt status. Electric co-ops should be able to focus on their core missions of providing affordable and reliable power and enhancing the quality of life in their communities without fear of a federal tax bill.

Time is running out, and lawmakers need to pass legislation this year. Passage of the RURAL Act is essential for America’s rural communities.

As co-ops across the nation prepare to apply for the next round of broadband grant funding for rural America, relief from this taxing problem can’t come soon enough.

Southwest Tennessee Electric Membership Corporation and Aeneas Internet and Telephone Form Partnership to Bring Broadband Internet to West Tennessee

Broadband via gigabit fiber coming soon to Southwest Tennessee Electric’s consumer-members

Brownsville, Tennessee – December 11, 2019 – Southwest Tennessee Electric Membership Corporation and Aeneas Internet and Telephone announce today that they have formed a partnership to build and expand a gigabit fiber network to bring broadband communications to the region. This partnership will pave the way for a multi-year, multi-million-dollar investment into West Tennessee’s future. The new network will eventually expand to provide high-speed internet access to every consumer-member in Southwest Tennessee Electric’s service area.

The network will allow Southwest Tennessee Electric to build one of the most advanced electric distribution systems in Tennessee. The communication network will allow the cooperative to monitor and remotely manage equipment across the utility’s 11-county service area, reducing cost, improving reliability, and increasing operational efficiency.

The gigabit fiber network will also allow Southwest Tennessee Electric and Aeneas to bring broadband internet and telephone services to many unserved areas of southwest Tennessee. Construction’s first phase of nearly 1,000 miles of fiber optic cable will begin in the spring of 2020. Phase one will take approximately one year to complete and will focus on Tipton County and Chester County. Additionally, grant applications have been submitted to serve Hardeman and Haywood counties. Following phases will be launched based on participation and interest. The entire project is expected to take five years to complete.

“We have heard the call from our consumer-members all over the service area who are asking for reliable high-speed internet service,” said Kevin Murphy, president of Southwest Tennessee Electric. “Recognizing that retail broadband service would be a new space for the cooperative, we began looking for a local partner with similar mission and purpose – serving the rural communities of West Tennessee. We found that strategic partnership with Aeneas Internet and Telephone. Aeneas is passionate about local customer service, and that is the culture and purpose that we looked for in a partner.”

“Our common mission is to serve our neighbors,” Murphy said. “That, coupled with their expansive knowledge of the technology required to operate a gigabit fiber network, makes this a perfect fit.”

“What an exciting time for West Tennessee!” said Stephen Thorpe, CEO of Aeneas Internet and Telephone. “For years we have worked with Southwest Tennessee Electric on various projects bringing broadband service to rural communities around West Tennessee. The need for broadband is growing rapidly, and in today’s world we really do rely on it being available to all of us – not just those that live in or around the metro areas. Our founder Jonathan Harlan instilled in us a commitment to the communities we live in and the people we serve – to always have our customers and community our top priority. This is why he believed Southwest Tennessee Electric would be a perfect partner because we share cultures and beliefs. All of us here at Aeneas are excited to partner with Southwest Tennessee Electric to continue with Mr. Harlan’s legacy and help bring this much needed service to even more people in the communities we serve!”

About Southwest Tennessee Electric Membership Corporation

Based in Brownsville, Tennessee, Southwest Tennessee Electric Membership Corporation is a consumer-owned, not-for-profit electric cooperative distributing power to 50,000 meters in parts of 11 West Tennessee counties. The cooperative powers nearly 50 communities of various sizes and maintains more than 4,000 miles of electric distribution lines. With offices in Haywood, Tipton, Madison, and Chester counties; STEMC has been community focused for almost 85 years.

About Aeneas Internet and Telephone

Headquartered in Jackson, Tennessee, Aeneas Internet and Telephone has been named to Entrepreneur magazine’s Hot 500 list of fastest growing businesses in the United States, as well as BusinessTN magazine’s Hot100 and Inc. Magazine’s Inc 5,000. Founded in 1995, Aeneas offers a myriad of services including gigabit fiber broadband, local and long distance, VoIP, office phone systems, commercial web hosting and corporate e-mail, network security, off-site file storage, data center services, managed networking, and more.

If you would like more information about Southwest Electric Membership Corporation, please call Billy Gordon at 731-585-0538, or email [email protected].

If you would like more information about Aeneas Internet and Telephone, please call Stephen Thorpe at 731-554-9200 or email [email protected]

This holiday season, give the gift of tech! If you’re searching for the latest gadgets and electronics to gift but don’t know where to start, we’ve got you covered.

Here’s a list of ideas for your tech-savvy friends and family members, and with a range of prices and interests, there’s sure to be something for everyone.

Gifts for those on the go: We all have that one friend who never stays in one place, so they’ll appreciate gifts that keep them charged and entertained while on the go.

A portable charger (or power bank) can keep their smart phones and tablets juiced, and the good news is this gift won’t drain your wallet. You can purchase portable chargers online or at local retailers for as low as $20. Typically, these compact devices can fully charge an iPhone three times before running out of steam.

A Bluetooth speaker is another great gift to keep those on the go entertained. Whether they’re listening to their favorite tunes or watching the latest flick, Bluetooth speakers can clarify and amplify volume to satisfy any media enthusiast. Prices range depending on features, but you can purchase a quality Bluetooth speaker online or at local retailers for as low as $30.

Gifts for the chef: Every foodie knows that temperature matters when mastering the perfect cut of meat. A Bluetooth-connected thermometer can help your chef ensure a delicious (and safe-to-eat) meal. Just download the associated app and keep an eye on the grill right from your smart phone or tablet. Prices vary from $30 to $200, but you can purchase these handy gadgets online or at any big box store, like Wal-Mart or Target.

A digital kitchen scale is a must for any culinary pro. No more guessing––the easy-to-read digital screen ensures the exact weight or amount required for that perfect dish. Prices vary depending on the weight the scale can handle, but you can find a 13-pound max weight scale for about $20 on Amazon.com.

Gifts for the pet owner: Let’s face it––pet owners would be lost without their fur babies. Luckily, pet tracking products continue to advance, so pet owners can always keep a watchful eye on their furry friends. Most trackers simply attach to your pet’s collar. Prices vary depending on the tracker’s capabilities, but some features include water resistance, health monitoring and exceptional battery life. You can purchase pet trackers online or at your local pet store.

Speaking of keeping an eye on pets, you can also purchase surveillance cameras for real-time monitoring––some cameras even allow you to toss treats to your furry friend while you’re away. Additional features include a microphone (so you can talk to your pets), a built-in laser toy (for our feline friends) and the ability to snap a photo or take video from your smart phone. Prices vary depending on the bells and whistles, but you can purchase a pet camera for as low as $40 on Amazon.com.

With so many electronics available today, you’re sure to find the perfect gift for your tech-savvy loved ones. Happy shopping!

State’s electric cooperatives gather in Nashville to explore the opportunities facing co-ops

NASHVILLE – The 78th annual meeting of the Tennessee Electric Cooperative Association was held Sunday, Nov. 24, through Tuesday, Nov. 26, in Nashville. Nearly 400 electric cooperative leaders from across the state attended the event where they discussed the significant impact co-ops have, challenged one another to meet the needs of their communities and learned more about emerging technology and power supply issues.

During an address to electric co-op leaders, Gov. Bill Lee commended co-ops for their service to rural Tennessee. “What you do is important to me, and it is critically important to Tennessee’s rural communities,” said Lee. “You bring not light but life to rural Tennessee.”

“Our co-ops are uniquely positioned to have a positive impact on the rural and suburban communities we serve,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “From infrastructure to education to communications, co-ops invest more money in rural Tennessee than almost any other group. We know that these communities matter, and we have a vested interest in their success.”

Kevin Murphy, president of Southwest Tennessee Electric Membership Corporation in Brownsville, was elected president of the TECA board of trustees. Dave Cross, manager of Plateau Electric Cooperative in Onieda, was named vice president, and Steve Sanders, director for Gibson Electric Membership Corporation in Trenton, was named secretary.

Elections were also held for three positions on the association’s board of trustees. Keith Carnahan, CEO of Meriwether Lewis Electric Cooperative in Centerville; Albert Dicus, director from Caney Fork Electric in Madisonville; and Greg Williams, manager for Appalachain Electric Cooperative in new Market, were elected to four-year terms.

Mike Partin, CEO of South Pittsburg’s Sequachee Valley Electric Cooperative, was also elected to serve as Tennessee’s representative on the National Rural Electric Cooperative Association board of directors.

“We congratulate those selected to serve in leadership positions,” says Callis. “We depend on our co-ops to provide guidance and counsel for the association, and we are grateful for their willingness to serve.”

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

Four co-ops were presented with certifications from the Rural Electric Safety Achievement Program for 2019. Receiving certifications at this year’s event were Fort Loudoun Electric Cooperative, Meriwether Lewis Electric Cooperative, Tennessee Valley Electric Cooperative and Upper Cumberland Electric Membership Corporation.

“We believe that Tennesseans should not be constrained by where they choose to live, and we are committed to closing the gap between opportunities in places like Nashville and Chattanooga and the opportunities that exist in New Market, Centerville and hundreds of other rural and suburban communities,” says Callis. “The continued success of co-ops and the communities we serve depend on people choosing to live and raise their families here – not in spite of the limitations, but because of the abundant opportunities.”