MJM holds 2010 annual meeting
Posted on 03-23-2010
Chris M. Spears, President/CEO
M.J.M. Electric Cooperative, Inc.
www.mjmec.coop
FOR IMMEDIATE RELEASE:
March 22, 2010
Members of MJM Electric Cooperative turned out for the organization’s 71st annual meeting of members on Saturday, March 13, at the Carlinville High School.
Board Chairman Robert Lehmann spoke of the ever-present changes in the electric industry. “Major changes seem to be happening very quickly and consumers should expect the cost of energy to increase as a result of these changes and the need to add more base load generation of power,” he said. “This cooperative is committed to helping you find ways in which you can save on your electric bills at a time when energy costs are increasing. As a member-owned, not-for-profit electric cooperative, our goal is affordable and reliable electricity.”
He cited the Waxman-Markey Bill, also known as the American Clean Energy and Security Act that passed in the U.S. House in June 2009. He noted the EPA’s (Environmental Protection Agency) announcement in December that it plans to regulate carbon emissions under the Clean Air Act. “More than one half of our electricity in America is being generated by burning coal because it has traditionally been a low cost source of power," Lehmann said. "However, burning coal produces carbon emissions. When Congress or the EPA puts limits on the carbon being emitted, it will cost a lot more to keep burning coal as penalties of some sort will be assessed. Consequently, other more expensive sources of power will be utilized. Even if a way is found to burn coal with fewer carbon emissions, it will still cost more to generate power from coal in the future than it does today.”
Lehmann encouraged members to seek help from MJM in the areas of energy efficiency and conservation. He mentioned the “Together We Save” campaign developed by Touchstone Energy last year, which includes an informative Web site and radio and TV announcements. A link to the “Together We Save” Web site can be found on MJM’s Web site which is www.mjmec.coop. There are some simple ways to achieve savings, such as using compact fluorescent light bulbs. "Installing 10 CFL’s could save you $60 a year or $5 per month on your electric bill,” he said. “Adding insulation to your attic is another way in which you can save. Adding nine or 10 inches in your attic will save you close to $300 a year, and right now you can get a 30 percent tax credit to help pay for it.”
In his closing remarks, Lehmann acknowledged MJM’s board of directors and thanked the members of the cooperative for attending the annual meeting.
MJM President/CEO Chris Spears shared a list of 2009 accomplishments. The cooperative continued an aggressive tree trimming program and cleared approximately 190 miles of line. This effort along with some others has resulted in decreasing average outage hours to below 2003 levels, reducing line loss, and improving reliability while reducing overtime hours.
A recent survey conducted showed the cooperative's American Customer Satisfaction Index (ASCI) score has risen from 71 to 75 between 2007 and 2009. The utility industry average is 74. "This is an accomplishment that we are proud of but we intend to do even better,” Spears said. He commended the board of directors, previous management and the employees for their part in making this happen. He added that “this is a team effort.”
In 2009, MJM prepared and processed more than 110,000 electric bills, changed out 370 bad poles, 175 OCR’s/breakers, and a number of line regulators and substation regulators. The cooperative built five and a half miles of line and connected around 70 new services.
Spears mentioned MJM's involvement in youth programs such as Youth Day, a program where every year the cooperative sponsors high school juniors on an educational trip to Springfield, Ill. Last year MJM sponsored five students at the Youth Day event and two of them were selected to attend the Youth to Washington Tour in Washington, D.C. The cooperative was one of the sponsors of an electric safety demonstration program recently organized by the University of Illinois Extension. It took place in Carlinville and included all of the fourth graders in Macoupin County. “This is an outstanding electric safety demonstration and it helps save lives. We were thankful for the opportunity to help sponsor this program and will be glad to help support the same program in other parts of our service area.”
Spears spoke about the cooperative's plans for the future, which include upgrading a 1998 billing system and adding online payment options. “The cooperative will also change out more bad poles, OCR’s/breakers and regulators. One substation transformer has already been replaced with a larger transformer and two other substation transformers will be upgraded later in the year. It will replace around five miles of line this year and continue tree trimming efforts.”
Additionally, the cooperative is planning to install an Automated Meter Reading (AMR) system. He explained that AMR systems have been around since 1978 and stated that most of the cooperatives in Illinois utilize this type of system and the majority of cooperatives in the country are also using an AMR system. An AMR system would eliminate the need for members to read their own meters and would allow the cooperative to improve restoration efforts when there is a loss of power. Correct readings will be easily obtained and estimated bills will not be necessary. The cooperative will be able to track consumption history on a daily basis if needed. Furthermore, the cooperative will be ready for “time of use” rates when they become available. Cash flow will improve and there will be a reduction in labor expenses.
Spears also talked about the challenges associated with increasing costs related to wholesale power, materials, transportation, government mandates, environmental compliance and more. “We are taking steps to control costs.” For example, the cooperative has had an opening for a Lineman for more than two years now but it has held off on filling that position. It has also found that significant savings can be achieved by utilizing remanufactured substation transformers instead of buying brand new transformers. A remanufactured substation transformer is just as efficient as a new one and it comes with the same warranty as a new one but costs substantially less than a comparable new substation transformer costs. Furthermore, a recent survey found that 97 percent of the members seldom or never contact or visit the office on a Saturday. The office has been open eight hours every Saturday for a number of years but a decision was made recently to close the office at noon beginning in June.
“A small increase in rates may be necessary later this year or early in 2011,” he said. “A cost of service study is being conducted to help determine the actual cost associated with providing electric service to the different rate classes. Such a study will help to ensure that rates are fair and that sufficient revenue is being generated to cover expenses.
Spears thanked the MJM members for coming and the board and employees for their dedication and hard work. He expressed his appreciation for the opportunity to serve MJM and its members as their CEO.
Kathy Joyce, vice president of administration for Wabash Valley Power Association, Inc. and Duane Noland, President/CEO of the Association of Illinois Electric Cooperatives were guest speakers. Joyce discussed some of the reasons why wholesale power costs have increased, which involve loss of older, lower cost contracts, costs associated with plants being off line for maintenance, and an increase in the price of uranium. She also showed a video illustrating the different sources of power being utilized by WVPA. Sixty-six percent of its power currently comes from coal, but WVPA is also utilizing pet coke, nuclear and a number of renewable resources including landfill gas to energy plants, dairy farm biogas plants, wind energy projects, and a solar farm. Additionally, WVPA owns fifty percent of the Holland Energy natural gas plant located in Shelby County, Ill. Noland discussed the grassroots efforts of the “Our Energy Our Future” campaign. He encouraged all cooperative members to continue talking to their legislators about energy-related issues.
Directors William R. Heyen of Gillespie, Gary Morrison of Fieldon and W. Kay Schultz of Godfrey were re-elected to three-year terms on the co-op’s board of directors.
Musical entertainment was provided by brother/sister team, Tommy and Frankie Miller. Tommy is a graduate of Carlinville High, and is currently a sophomore at Blackburn College. Frankie is a sophomore at Carlinville High School. A number of prizes were given away before the meeting concluded and a delicious pork chop lunch followed.
M.J.M. Electric Cooperative is a member of Touchstone EnergyÒ — an alliance of more than 702 local, consumer-owned electric utilities around the country. M.J.M. Electric is committed to providing superior service based on four core principles: integrity, accountability, innovation and commitment to community. The co-op serves more than 9,243 members over 1,722 miles of line in Macoupin, Jersey, Montgomery, Bond, Fayette, Greene and Madison counties. For more information visit www.mjmec.coop.
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