Rio Grande Electric Co-op March 2018 1

Rio Grande Electric Cooperative, Inc.Rio Grande Electric Cooperative,

Message From The GM/CEOBy Dan Laws

nc., InR

MARCH 2018

Rio Grande has had three rate increases in the last 28 years. The last one went into effect on May 5, 2010. As a board and management, we have worked hard to hold the line on rates, while paying competitive salaries and performing needed upgrades to the system. Reliable electricity, at an affordable price, when serving some of the most rural sparsely populated

country in the U.S., is a challenge.

Costs continually increase that are beyond our control. In an effort to keep the country safe from cyber-attacks on the Nation’s electric grid, new regulations are being implemented. While they are important, they come with a cost. The Federal Energy Regula-tory Commission (FERC), the National Electric Reliability Council (NERC), the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT), are all engaged and have requirements that RGEC must meet. We are happy to do our part, but it forces us to make improvements to cyber security, as well as our monitoring and reporting requirements.

The cost of the service trucks RGEC purchases for the linemen to do their job has increased. Eight years ago, they cost about $45,000 fully rigged out, now they are pushing $60,000. Risk insurance we are required to have is increasing in cost. Insurance for things we never needed before must now be purchased. I could go on and on, but the bottom line is things are more expensive. If RGEC is to remain solvent, we must raise rates to meet these financial pressures. What is especially bad about this particular rate increase is the fact that residential rates are going to be impacted the most.

So, why is the residential class increase so much higher than the system average? It’s because over that last eight years, the residential class has fallen behind in covering the cost of bringing electric energy to residences. RGEC’s rates are cost-based, not market-based. They are designed to recover actual costs, not what the market will bear.

Why then did the residential class fall behind? There are a number of factors. Increases in operation and maintenance costs that are allocated to the various classes of service (rates) can, of necessity, impact one class more than another. Growth in certain classes of service versus others can impact this amount. System improvements that increase rate base can impact one class of service over another. In the case of residential rates, maintenance, operations and plant growth had the greatest impact. During the last five years, RGEC has performed a significant amount of system improvements. Those improvements increased the value of distribution lines, which in turn drives up the cost to serve a particular class. It ends up being a good news/bad news thing. The good news is we have made roughly $45 million in system improvements over the last five years; the bad news is it is one of the cost components that necessitates a rate increase.

We have put off a rate increase as long as we can. Accordingly, we will be implementing this rate increase on or after May 5, 2018. I know you do not want to hear this, and frankly, I do not want to have to say it, but it is necessary. In the days and weeks ahead, you will hear lots of people speculate on what the “real truth” is behind this rate increase. What I have written here is the real truth, but if you have questions please call and ask. Don’t propagate rumors that have no foundation in truth. We will be conduct-ing meetings across the service territory to explain the rate increase. Please watch for the announcements in our magazine pages, on billing statements, and on the Rio Grande website (www.riogrande.coop) and Facebook (www.facebook.com/rgec.coop) pages.

“We have put off a rate increase as long as we can.”

March 2018 Rio Grande Electric Co-op2

There’s about one more month in which senior students can apply for

one of twenty-two $1,500 scholarships in the Co-op’s 2018 scholarship competi-tion.

Two 12th grade (senior) students from each of RGEC’s eleven director districts will be selected to receive the funds to assist in furthering their education at an accredited college, community college, university, or vocational school, for the Fall 2018 Semester.

Information and registration packets were distributed to school districts throughout the Cooperative’s service territory in Janu-ary. The forms and rules are also available on RGEC’s newly redesigned website, www.riogrande.coop, under the “Extras” menu tab.

Completed entries must be postmarked by April 20, 2018. Winners will be selected by an impartial panel of judges, in a blind judging, without knowledge of the student’s family name, director district, or RGEC operations area. Scholarships may be presented during the students’ end-of-year awards ceremony or graduation. If selected to receive a scholarship, students must sign the acceptance form and return it to RGEC’s corporate offices in Brackettville, Texas by June 29, 2018.

Deadline Nearing For Scholarship Contest

Member AdvisoryMeetings

Member Advisory Committee meetings are being held this month, at which a portion of the meeting will be devoted to information about the upcoming rate increase being implemented over the next few months. The meetings will be held in each of RGEC’s operations areas, with the exception of El Paso.

Meetings will be held at RGEC offices, as follows:

March 6 Alpine March 7 Dell CityMarch 13 BrackettvilleMarch 15 Carrizo SpringsMarch 20 Fort Stockton

Time To Think About Summer Cooling

Wow! Where has the time gone? Before you know it, you’ll be turning on the AC

unit, if you haven’t already. Time to make sure it is up to the task of keep-ing your home comfortable as effi-ciently as possible.

Start with making sure it has clean filters, regardless of the type of unit. Even window units with reusable filters should have them cleaned. If your home has a central air conditioning system, make sure you have the proper filter size installed, and an extra or two on hand, as you’ll need to change them every couple of months, or as recommended by the manufacturer.

Consider having a professional evaluate your home’s cooling system. They will check the refrigerant level, and recharge, if necessary. This will help it operate as efficiently as possible.

When the sun begins to bake Co-op Country, remember to draw blinds or shades in the heat of the day, to keep the heat out.

Ceiling fans can be utilized to help you feel cooler. Remember to reverse the blades from the winter setting. Fans, both the ceil-ing and portable varieties, are economical to operate, if they are turned off when people are not in the room.

Don’t underestimate the value of trees. Their shade helps make your home cooler. According to the USDA, the cooling power of a healthy shade tree equals 10 room-size air conditioners run-ning 20 hours a day. Shade the southeast, west, and southwest sides of your house to help you keep your cool this summer.

A listing of Member Advisory Committee members for each area can be found on the Co-op’s website, www.riogrande.coop under the “Cooperative” tab.

Rio Grande Electric Co-op March 2018 3

In RGEC’s service territory, Spring Break is often the first chance to enjoy outdoor activities since

school started in the fall. Most school districts observe Spring Break in mid to late March, when it may even be warm enough to take part in waters-ports like swimming and boating, or to at least go fishing. But, it can become a dangerous time, if children, teens, and even adults, for that matter, are not made aware of the potential dan-gers lurking in seemingly safe places.

Last year, this point was, sadly, driven home. A group of East Texas Boy Scouts on a boating outing were tragi-cally electrocuted when the mast of their catamaran reportedly came in contact with a low-hanging powerline.

Electric Shock Drowning (ESD) is another topic that is just beginning to be recognized as a cause of death, because it is believed to often go un-reported because electrocution isn’t a cause of death that a medical exam-iner typically considers in a drowning death.

ESD most often strikes near fresh water boat marinas where boats or nearby lights or appliances may be leaking voltage into the water. It doesn’t happen in salt water, because salt water is a better conductor of electricity than the human body. Fresh water doesn’t conduct electricity, but mammals do. If people (or their pets) swim in fresh water that is electrified by a boat or machinery leaking volt-age, they can be electrocuted.

Boat owners and those who own/manage marinas should make sure GFCIs and ELCs are regularly tested to help ensure that no electricity escapes into the water.

Spring Break DangerWater & Electricity Don’t Mix

4 March 2018 Rio Grande Electric Co-op

Weatherization Assistance May Be Available

Agency Local Phone Local Agency

Email

Toll Free FromLandline Only

8:00 a.m. – 5:00p.m. Monday

Friday

Counties Served

CommunityCouncil of SouthCentral TX, Inc.

(830) 303 4376 bdeike@ccsct.org (888) 606 8889 DimmitEdwardsKinneyMaverickUvaldeVal VerdeZavala

Big BendCommunityActionCommittee, Inc.

(432) 729 4908 aebbcac@gmail.com (888) 606 8889 BrewsterCulbersonHudspethJeff DavisPecosPresidioTerrell

CommunityActionCorporation ofSouth Texas

(361)664 0145(800) 695 0314

Rafael.trevino@cacost.org (888) 606 8889 Webb

Concho ValleyCommunityAction Agency

(325) 653 2411 mbethune@suddenlinkmail.com (888) 606 8889 Crockett

El PasoCommunityAction Program,Project Bravo,Inc.

(915) 562 4100 lponce@projectbravo.orgwebsite: www.projectbravo.org

(888) 606 8889 El Paso

West TexasOpportunities,Inc.

(806) 872 8354 wtxop.info@gmail.com (888) 606 8889 Reeves

In New Mexico, it is called the Low Income Home Energy Assistance Program (LIHEAP) Program. For energy assistance information and application in New Mexico, visit the Yes New Mexico website at https://www.yes.state.nm.us, call (505) 827-7266, or email LIHEAP Manager Marilyn Newton-Wright at marilyn.wright@state.nm.us.

The Texas Department of Housing and Community Affairs operates the Weatherization Assistance Program with funds from the U.S. Department of Energy (DOE), and the U.S. Department of Health and Human Services Low Income Home Energy Assistance

Program (LIHEAP). WAP is designed to help low income customers control their energy costs through installation of weatherization materials and education. The program goal is to reduce the energy cost burden of low income households through energy efficiency. If you qualify, the program may help with such things as weatherstripping, insulation, patching holes in the building envelope, and possibly repair inefficient heating and cooling systems.

To find out if you qualify for this assistance program, contact the agency listed for the county in which you reside.

Pcreqh

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Rio Grande Electric Co-op March 20185

Updated Bill Format Coming Next Month

Beginning next month, Rio Grande will launch a new bill format, that promises to be easier on the eyes, and easier to under-stand.

1. Your account num-ber and current pay-ment due date.

2. Service Summary shows a summary of your transaction his-tory, and total amount due.

3. Important informa-tion from the Co-op.

4. Service Address, rate description and meter information is printed at the top of each service.

5. kWh Usage History provides a 13-month look at each service.

6. Current Charges for electric usage.

7. Payments can be made online or by phone.

8. Account number and amount due. To ensure proper credit, please detach and return bottom portion with your payment.

For those who elect to set up Auto Draft, steps 7 and 8 don’t apply. If you choose, you can still receive a paper bill.

-- AUTO DRAFT PAYMENTS --

Call us at 800-749-1509 to set up auto bank draft or auto credit card payments!

March 2018 Rio Grande Electric Co-op6

Like and follow us on Facebook for information on outages, weather, and other issues that impact your electrical service and your membership in RGEC. You

can even use it to report outages (which is very handy when there’s no phone service). Go to www.facebook.com/rgec.coop.

If you aren’t on Facebook yet, we have a how-to section on the Co-op’s website, www.riogrande.coop. It’s under the “Helpful Links” section on the homepage called Sign Up For Facebook.

Gary Nichols Retires

After approximately 14 years of service to the members of RGEC, Gary Nichols of the El Paso office officially retired February 9. During his tenure with the Co-op, Gary was always willing to go where he was most needed. He served as Area Supervisor in Marfa and in Alpine, a brief stint as Area Operations Manager in Fort Stockton, and as Project Manager and Construction

Superintendent in El Paso. We wish him well, as he enters the exciting new world of possibilities retirement presents, and offer sincere thanks for his dedication to the Co-op and its members.

The unsuspecting Gary was the victim of an Annual Meeting bit, in which the entertainer made him the ventriloquist’s “dummy.” Gary was good-natured about the whole thing.

Facebook “Likes” as of 2/12/18

4,366 Receive E-Bills

As of the January billing cycle, 4,366 RGEC members had opted to get their bills electronically. Some still wanted a paper bill mailed to them, but there are many who have

gone completely paperless. If E-Bill would help simplify your life, sign up through the SmartHub app, or call us at 800-749-1509.

SmartHub Provides Insight Into Power Usage

Using RGEC’s SmartHub App, members can check many aspects of their account. Want to see how much energy you used when the weather turned cold? SmartHub can

do that. Maybe you had houseguests and you want to see what they cost you in terms of extra energy used. SmartHub can do that, too. Just download the SmartHub App from the Apple Store, for iPhones, or Google Play for Android. It’s free, and easy to use.

Rio Grande Electric Co-op March 2018 7

P o l e o p F i r e sPoletop fires usually result from damage to insulators, which are especially

susceptible to damage from weather. The insulators are made from ma-terials that resist the flow of electric current. They are used as supports

to keep the electric lines from touching the poles or other electric lines, and are necessary to deliver your power. They can be damaged by lightning strikes and hail. Hail can crack or chip the porcelain insulators, allowing the electricity to “track” a path to the ground. This type of damage can be almost impossible to detect by linemen patrolling the lines. Even a hairline fracture can cause a major outage, under the right conditions.

Dry conditions also create problems which go undetected, until small amounts of moisture -- even humidity -- set a disastrous chain of events in motion. The villain in this scenario is dust. It’s hard to believe something most of us consider mildly irritating, and something to be dealt with only when cleaning house or washing the car, could cause such problems for the electric distribution system. But under certain conditions, dust can be just as devastating as a lighting strike. It accumulates on insulators, and when it combines with moisture of any kind, it creates a path which conducts electricity. This is called a “flashover”. Flashovers often start fires on the tops of poles. There is no practical way to keep insulators dust-free in RGEC’s service territory of approximately 35,000 sq. miles.

If you live in an older home, it probably wasn’t designed to accommodate the use of as many electronics as we have today. Keeping sensitive electronic devices working means proper household wiring and grounding are essential.

The National Association of Certified Home Inspectors says, “Grounding of electrical receptacles (which some lay people refer to as outlets) is an important safety feature that has been required in new construction since 1962, as it minimizes the risk of electric shock and protects electrical equipment from damage. Modern, grounded 120-volt receptacles

have a small, round ground slot centered below two vertical hot and neutral slots, and it provides an alternate path for electric-ity that may stray from an appliance. Older homes often have ungrounded, two-slot receptacles that are outdated and potentially dangerous.” If your outlets do not have a ground, a licensed electrician should upgrade them.

Most voltage sags are generated inside a building, according to experts at Power Standards Lab. For example, in home wiring, the most common cause of sags is the starting current drawn by refrigerator and air conditioning motors. Some electronic equipment lacks enough internal energy storage, and can’t ride through sags in the supply voltage.

Just the reverse of voltage sags, swells are caused by a quick reduction in load on a circuit. If your lights get brighter when the re-frigerator or air conditioning unit turns off, you are having voltage swells. Those whose homes do not have a correctly sized meter loop or transformer may notice this problem more than others. That is why it is important to notify RGEC of any home improve-ment projects which require additional electrical load, so that the transformer can be sized correctly.

It may help to move equipment to a dedicated circuit. Avoid putting sensitive devices such as personal computers, modems, etc. on the same circuit as air conditioners and kitchen appliances. The answer to the problems caused by sags and swells, especially for computer systems, would be the addition of an Uninterrupted Power Supply (UPS) unit. These units allow time to save your work/shut down the computer normally. Make sure the UPS you buy also has surge suppression capabilities.

The Co-op does what it can to mitigate the effects of lightning strikes to the electric distribution system, but these measures can and should be backed up by home surge suppressors. Many power strips have basic surge protection built in. It’s up to you to de-termine the protection product which best needs your needs, based on the type of electronics in your household.

Results of a poletop fire on the drizzly morning of February 15. Photo by Lineman Apprentice III Alberto Rocha.

Protecting Electronics

8 March 2018 Rio Grande Electric Co-op

RIO GRANDE ELECTRIC COOPERATIVE, INC.Summary of Board Meeting Minutes

October 8 , 2016

Note: The summary above is provided so that members can follow the activities of the board, and is not in-tended to be exhaustive. Should you wish to know more detail on a particular item or items, please contact the director for your district or the General Manager/CEO’s office.

Rio Grande Electric Cooperative, Inc. is an equal opportunity provider and employer.Rio Grande Electric Cooperative, Inc. es un proveedor y empleador que ofrece igualdad de oportunidades.

*Stephen Haynes, President District 4P.O. Box 1088 Rocksprings, TX 78880 830-395-2283

*Billy Foster, Vice President District 5 P.O. Box 163Langtry, TX 78871 432-291-3232

*Rowdy Holmsley, Secretary District 6P.O. Box 221 Sheffield, TX 79781 432-836-4350

*Priscilla Parsons, Treasurer District 2P.O. Box 517 Crystal City, TX 78839 830-374-9775

Sandra Archuleta District 9PO Box 221Dell City, TX 79837 915-964-2464

*Jamie Ballew District 3P.O. Box 559 Brackettville, TX 78832 830-563-2869

*Warren Cude District 8 P.O. Box 1686 Ft. Stockton, TX 79735 432-395-2304

*Mark Daugherty District 7P.O. Box 744 Alpine, TX 79831 432-345-2604

*Tim Edwards District 7 P.O. Box 3012 Kent, TX 79855 432-259-3301

*Janice “Jan” Metcalf District 3A P.O. Box 366 Brackettville, TX 78832 830-563-9047

David Nelson District 1HC2 Box 53 Carrizo Springs, TX 78831 830-876-3223

*M. Keith Richardson District 9 10571 US Hwy. 62/180 Salt Flat, TX 79847 915-964-2838

David Wharton District 4A106 Bauer Dr., Suite B.Del Rio, TX 78840 830-395-2297

Dan Laws, General Manager/CEOP.O. Box 240, Brackettville, TX 78832 general_manager@rgec.coop 830-563-6112 (W)

* Credentialed Cooperative Director

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Summary of Board Meeting MinutesJanuary 17, 2018

A meeting of the Rio Grande Electric Cooperative, Inc. Board of Directors was held at the Area office in Fort Stockton, Pecos County, Texas at 8:10 a. m., January 17, 2018. The following directors were present for the meeting: Sandra Archuleta, Jamie Ballew, Warren Cude, Mark Daugherty, Tim Edwards, Billy Foster, Stephen Haynes, Rowdy Holmsley, Jan Metcalf, Keith Richardson, Priscilla Parsons, and David Whar-ton Jr. Also present for the meeting, were General Manger/CEO Daniel G. Laws, CEO In Training Roger Andrade, Chief Operating Officer Theresa Quiroz, Chief Financial Officer Shawn Stanley, Director of Human Resources Martha Gerardo and Executive Assistant to the GM/CEO Sonya Cruz.

Approved December 20, 2017 Board Minutes, As PresentedHeard Financial ReportsConducted CEO In Training EvaluationApproved A Two-Phase System-Wide Rate Increase, Following Review Of The Results Of A Cost Of Service Study Commissioned In August, 2017, With The Phase 1 Portion of 13.8% To Be Effective With The Billing Cycle For Bills Rendered On Or After May 5, 2018 Approved Renewal of CoBank Revolving Line of CreditApproved Board Policy 1.2.6 – Capital Management, As Amended To Include An Updated Capital Credit Retirement Plan for 2017-2046Approved CEO In Training Roger Andrade As General Manager/CEO Designee And Chief Operating Officer Theresa Quiroz As Alternate Designee, Pursuant To Board Policy 1.1.3 – Delegation of Authority From The Board of Directors To The GM/CEOHeard Review of Board Policy 1.1.8 Code of Conduct For The General Manager/CEO By Rowdy HolmsleyReviewed Safety & Health Program And Safety TrendsHeard Chief Executive ReportHeard Committee ReportsApproved Director, General Manager/CEO & CEO In Training ExpensesApproved November 2017 New/Revoked MembershipsReviewed Check Register And Arrears ReportAdjourned 1:38 P.M.

Pass The Word!

The Co-op’s employment page is a great resource. There, you can find the job specifi-cations of each position for which RGEC is seeking qualified personnel, as well as the application forms. Just go to www.riogrande.coop/employment.