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T he first of the year saw a significant rate increase to the membership. While Sheridan Electric Cooperative cannot control rate increases from our power supplier, we can control what costs we incur at your cooperative. In the most part, the rate increase in January was the result of the power costs from the power supplier, but another factor to remember is that we had just come off an unprecedented three years of infrastructure buildout. What this means is this: When activity like the transmission buildout occurs, you have additional issues to deal with when the project is completed. Items like extra inventory, extra people and scheduling are all components that need attention after the work is complete. Inventory reductions in both departments were conducted so now you will see the lowest inventory for many years within these doors. The need for the inventory used to build the new infrastructure was history and not needed for the future. The foreseeable future was comprised of a “lean” and “trim” inventory that supported only what we needed to keep the maintenance process sustainable and cost-effective. We have reduced the number of critical parts on site, but have also identified where we can get these parts in a short amount of time if needed. Why stock them, if they are one to two hours away? Traditional parts like poles, wire and transformers were kept at traditional levels to protect our membership from storm damage, and to ensure a quick response when disaster may strike. This discipline frees needed dollars to perform additional tasks that may need to be completed. People and positions were also looked at, and not in the pretense of eliminating positions, but to glean the most from all that we have. During this extreme construction time, your cooperative was carrying an extra person to cover the tasks that needed to be completed. Now, through attrition, we will have two people fewer than during construction, and one extra person less just due to reorganizing. Compelling budgetary items were looked at from a standpoint of need versus want. As you can guess, the needs quickly outweighed the wants. Only the equipment needed to keep our lines in the air were approved. Items that enhanced our safety program were also approved. The balance of the requests went under intense scrutiny. What happens now? What happens now is this: After all components have met a critical look, they will be converted to a balance sheet to assess where we are. The board also reviews this data and assists us in making the best possible decision for the membership. These next decisions will all filter down to rates to the membership. Are they to high? Are they too low? Only this intense study of the balance sheet will tell us. This is a study in which we will look at margins, cash and investments. Once this is complete, a better understanding of the rate targets will be realized. Though this seems like a long process to complete, it is mostly having the discipline to follow through with the steps that make it a seamless process. LiveWire Sheridan Electric Cooperative Sheridan Electric Cooperative - Medicine Lake, Mont. 406-789-2231 MAY 2017 WHAT’S INSIDE? Explanation of rate increases What are we teaching our kids? Statistical report Explanation of rate increases BY SCOTT WESTLUND MAY 2017 3

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Page 1: WHAT’S INSIDE? LiveSheridan Electric CooperativeWire ... · less heat, so they are safer to operate. They can also last up to 10 times longer than the standard incandescent bulb

The first of the year saw a significant rate increase to the membership. While Sheridan

Electric Cooperative cannot control rate increases from our power supplier, we can control what costs we incur at your cooperative.

In the most part, the rate increase in January was the result of the power costs from the power supplier, but another factor to remember is that we had just come off an unprecedented three years of infrastructure buildout.

What this means is this: When activity like the transmission buildout occurs, you have additional issues to deal with when the project is completed. Items like extra inventory, extra people and scheduling are all components that need attention after the work is complete.

Inventory reductions in both departments were conducted so now you will see the lowest inventory for many years within these doors. The need for the inventory used to build the new infrastructure was history and not needed for the future. The foreseeable future was comprised of a “lean” and “trim” inventory that supported only what we needed to keep the maintenance process sustainable and cost-effective.

We have reduced the number of critical parts on site, but have also identified where we can get these parts in a short amount of time if needed.

Why stock them, if they are one to two hours away?

Traditional parts like poles, wire and transformers were kept at traditional levels to protect our membership from storm damage, and to ensure a quick response when disaster may strike.

This discipline frees needed dollars to perform additional tasks that may need to be completed.

People and positions were also looked at, and not in the pretense of eliminating positions, but to glean the most from all that we have. During this extreme construction time, your cooperative was carrying an extra person to cover the tasks

that needed to be completed. Now, through attrition, we will have two people fewer than during construction, and one extra person less just due to reorganizing.

Compelling budgetary items were looked at from a standpoint of need versus want. As you can guess, the needs quickly outweighed the wants.

Only the equipment needed to keep our lines in the air were approved. Items that enhanced our safety program were also approved. The balance of the requests went under intense scrutiny.

What happens now?What happens now is this: After all

components have met a critical look, they will be converted to a balance sheet to assess where we are. The board also reviews this data and assists us in making the best possible decision for the membership.

These next decisions will all filter down to rates to the membership. Are they to high? Are they too low? Only this intense study of the balance sheet will tell us. This is a study in which we will look at margins, cash and investments. Once this is complete, a better understanding of the rate targets will be realized.

Though this seems like a long process to complete, it is mostly having the discipline to follow through with the steps that make it a seamless process.

LiveWireSheridan Electric Cooperative

Sheridan Electric Cooperative - Medicine Lake, Mont. 406-789-2231

MAY 2017

WHAT’S INSIDE?• Explanation of

rate increases

• What are we teaching our kids?

• Statistical report

Explanation of rate

increasesBY SCOTT WESTLUND

MAY 2017 3

Page 2: WHAT’S INSIDE? LiveSheridan Electric CooperativeWire ... · less heat, so they are safer to operate. They can also last up to 10 times longer than the standard incandescent bulb

LiveWire

What are we teaching our kids?BY SCOTT WESTLUND

Recently, I was in a discussion with Rick Knick, the manager of Sheridan Electric

Cooperative. He was telling me a story about disliking national news because of the political bashing the right and left do on a continual basis. During the continued discussion, we both likened it to verbal bullying.

While Rick was flipping through the channels, he came across a national channel that was showing a story of a gifted girl who was playing the piano, at a public gathering, to raise awareness on bullying.

After the report, on the same

channel, a news report started and the first things out of a reporter’s mouth was more public bashing.

As per Rick, it was a great story about the child, but the next phase cancelled it all out.

As I thought about the discussion, I was reminded of the last eight years and the way the news channels bashed the administration at that time.

Why I didn’t write about this before astounds me, but I have to think how we are setting a

Statement of nondiscriminationThis institution is an equal opportunity provider and employer.Sheridan Electric Cooperative is the recipient of federal fi nancial assistance from the U.S. Department of Agriculture (USDA). The USDA prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at 202-720-2600 (voice and TDD). The person responsible for coordinating this organization’s nondiscrimination compliance efforts is Rick Knick, manager. To fi le a complaint of discrimination, write to USDA, Director, Offi ce of Civil Rights, 1400 Independence Ave., S.W., Washington, DC 20250-9410, or call toll free 866-632-9992 (voice) or 800-877-8339 (TDD) or 866-377-8642 (relay voice users). USDA is an equal opportunity provider and employer.

4 MAY 2017

Page 3: WHAT’S INSIDE? LiveSheridan Electric CooperativeWire ... · less heat, so they are safer to operate. They can also last up to 10 times longer than the standard incandescent bulb

Sheridan Electric Cooperative

double standard for our children, and it is all about the children.

In society today, we denounce bullying of any kind—physical, verbal or intimidation. We strive to have schools that also support and defend against bullying in our schools, thus attempting to create a more stable learning atmosphere.

We have a society that knows this is unacceptable, as we teach our kids. So what happens when we turn on the TV at the home, and watch national news conducting a verbal assault on government or other entities?

Are we hypocrites for watching a form of bullying and accepting it, or furthermore, are we watching it with our kids and accepting it?

This has to be confusing our legacies as to what is right and what is wrong.

Later in the month, I was in a class in Great Falls. The class was verbal de-escalation and active shooter training. During the class, a participant asked this extraordinary instructor, “Why we are seeing such an increase in violence now versus years ago?” His opinion was a simple one. He stated that he feels it

is the types of things that are on TV and video games that are causing the uptick. Television

is almost always stories of war, talking

down to people, and the pitfalls of life, versus the little girl playing the piano bringing awareness to bullying.

Video games that are realistic enough to be an active shooter places these thoughts in the heads of our young people. Beating people up and crashing cars are all forms of video games to which our young people are exposed.

Where are the days of the simple messages for our young people?

I sometimes find it hard to spend cooperative money with stations that support this kind of behavior. We may have a very good ad about our cooperative values that sends the right message, and then in the next few minutes, the station will send another story of horror, or bullying, canceling out the previous messages.

I say it is hard, but I also know that it is the world we live in today. The dollars will continue to be spent to get the cooperative message out to the world today. Today’s world is interconnected in ways that we never dreamed it would be. Our lives are “online” at all times, right along with our legacies.

All we can do is guide them to filter out what is right and what is wrong, and continue to be good role models.

1: NOTIFY

2: WAIT

4: RESPECT

3: CONFIRM

Call before you dig!

The 811 process:

5: DIG CAREFULLY

MAY 2017 5

Page 4: WHAT’S INSIDE? LiveSheridan Electric CooperativeWire ... · less heat, so they are safer to operate. They can also last up to 10 times longer than the standard incandescent bulb

In the spirit of efficiency, Sheridan Electric Cooperative is giving away compact fluorescent lights (CFLs) each month. Each month’s winner will receive 24 new CFL

bulbs. A CFL produces the same amount of light for less than half the cost. The bulbs also produce about 75 percent less heat, so they are safer to operate. They can also last up to 10 times longer than the standard incandescent bulb. You could save $80 a year by switching to CFLs throughout your home! So this month, take a moment to complete and mail the coupon. Maybe you’ll be this month’s lucky winner and save on your energy costs. Good luck! n

Lighting to be given awayName: ____________________________________

Address:__________________________________

__________________________________________

Phone number:_____________________________

Account number: ___________________________

Congratulations to Marty Westgard for winning this month’s light giveaway.

SHERIDAN ELECTRIC CO-OPMedicine Lake, Mont. 59247

406-789-2231

TRUSTEESWayne Deubner, President .......................Brockton, Mont.Rod Smith, V. President .............................. Dagmar, Mont.Rob Rust, Sec. ................................................ Alkabo, N.D.Kerrey Heppner, Treas. ..........................Plentywood, MontAlan Danelson, Trustee ............................... Scobey, Mont.Andrew Dethman, Trustee .......................Brockton, Mont.Rick A. Hansen, Trustee ..................................Froid, Mont.Warren Overgaard, Trustee ......................... Westby, Mont.Harlan Skillingberg, Trustee .................Plentywood, Mont.

EMPLOYEESRick Knick ............................................................ManagerRiley Tommerup ............................Office Mgr./AccountantScott Westlund ............Marketing/Member Service ManagerPam Lund .............................................. Billing SupervisorJamie Ator ........................................................AccountantLisa Salvevold ...........................................Office AssistantTorie Waller.............................................Work Order ClerkKory Opp............................................Line SuperintendentBryan Lenz ...................................................Line ForemanNick Oelkers .................................................. Staking TechTim Ereth ............................................Operator/UtilitymanJosh Johnson .........................Electrical General ForemanTom Hinds ........................................... Electrical ForemanSteve Augustine ................................... Line Sub ForemanTristan Ereth ................................... Apprentice ElectricianRonnie Gillett .................................. Journeyman LinemanDan Roeder .................................... Journeyman LinemanShawn Sansaver ............................ Journeyman LinemanJosh Marottek ................................ Journeyman LinemanBill Baillie........................................... Apprentice LinemanJosh Ming.......................................... Apprentice LinemanJim Bakken ..........................................Material SpecialistVicky Haddix .......................................................Custodian

OUTAGES • CALL 24 HOURS A DAY 406-789-2231

OFFICE HOURS: 7 a.m. to 4:30 p.m.Monday through Friday

February 2016 February 2017

Total miles of line 2,849 2,833Consumers billed 3,057 3,085Kilowatt-hours purchased 11,795,266 12,207,934Kilowatt-hours sold 11,089,279 10,700,476Average KWH per residential consumer 1,387 1,410Average bill per residential consumer $122.59 $125.60Cost of purchased power $522,343 $636,188Margins year to date $656,594 $578,071

LINE DEPARTMENT STATS February 2016 February 2017

Weather .................................................................................. 3 ......................... 5 Age or deterioration ................................................................ 0 ...................... 0Animals and public ................................................................ 0 ....................... 0Power supplier........................................................................ 0 ......................... 0Equipment.............................................................................. 0 ......................... 0 SUMMARY OF WORK COMPLETED February 2016 February 2017 Year to date

Pole installations .............................. 14 ..............................1 ..........................1 New construction............................. 435 ...........................865 .................16,322Miles driven................................ 18,185 .....................22,288 ................44,282New accounts ...................................... 4 ...............................1 ..........................6Accounts retired .................................. 4 ...............................0 ..........................0

Sheridan Electric Cooperative STATISTICAL REPORT

6 MAY 2017