Appalachian Electric Cooperative — Your Touchstone Energy Cooperative

192 Pages·2016·28.39 MB·English

by  Robin Conover

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Appalachian Electric Cooperative — Your Touchstone Energy Cooperative
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Save the date AS I SEE IT
Manager’s Viewpoint
Size and scope of budgets may vary,
but the principle remains the same
Y
ou may work on yours at the On the plus side
kitchen table. Here at the Several factors make estimating
Co-op, we usually tackle ours revenue rather difficult. First, AEC’s
around a conference table. But revenue comes from the sale of
either way, budgets reflect electricity to more than
It’s not too soon to start realistic boundaries within 45,000 residential and
thinking about it. AEC’s 76th which we must live and commercial members of the
Annual Membership Meeting operate. They help us make Cooperative. But simple math
will take place this year on smart decisions about our won’t do when it comes to
Saturday, September 24 — and finances so that our finances projecting kilowatt-hour
we want to see you there! don’t end up making sales. Prevailing economic
You’ll see lots more conditions play a big role in
decisions for us.
information on this special how many new accounts are
Because it’s such an
event in the months ahead. established each year. During
important responsibility of
Mark your calendar and make tough times (including during
ours to manage our members’
plans now to join your friends Greg Williams the recent recession), we only
money wisely, I’d like to
and neighbors. share with you some of what AEC General Manager grew by around 50 new
members each year. Lately,
goes into developing AEC’s
we’re seeing an encouraging upward
annual budget. There are certain aspects
trend; we added more than 400 new
of our budget process that make it quite a
meters to our system last year. We must
bit more challenging than what typically
factor into our revenue projections an
takes place at a kitchen table!
estimated growth in membership.
Have you ever had to take the weather
Just what (and who) is involved
into account when you plan your family’s
The Co-op’s budget is prepared by
budget? Believe it or not, that’s exactly
management and our Accounting
what we have to do here at the Co-op!
Department staff. Beginning in April of
Trying to predict temperature patterns a
each year, the Finance Committee of our
year in advance is an imperfect art, to say
• It’s an incredibly complex Board of Directors conducts an extensive the least. About the best we can do is to
process to come up with our review of our estimated revenue for the take historical records into account and
annual budget, and it’s upcoming fiscal year — which begins in base our kWh sales estimates on what
something we take very July. Another meeting takes place would result in a “normal” year. If we
seriously. (usually in May) when the estimated have a really hot (or a really mild)
• As a not-for-profit expenses are reviewed. Final approval summer — or a bitterly cold (or a really
organization, we manage happens at the Board’s June meeting, mild) winter — we may end up missing
Cooperative resources with a when our directors pass the new budget, our projections by a long shot.
conservative approach which includes capital improvements Finally, our revenue estimates are
designed to come as close as
such as our Construction Work Plan, increasingly influenced by energy-
we possibly can to balancing
special projects to improve operations or efficiency measures undertaken by our
revenue to expenses.
replace outdated equipment/systems and members — and that’s a good thing!
• When an AEC rate increase
other items that are typically financed by We’re here to support those we serve by
happens, you can be certain
debt. But the process doesn’t end there. encouraging them to manage their energy
that we have undertaken
At every single Board meeting all use wisely through efficiency. New
every measure to keep it to an
absolute minimum in order to throughout the year, our directors review building standards and codes also play a
maintain a high degree of the budget document and compare our role in reducing energy consumption, and
reliability for our electric projected figures with actual revenues we must take that into account, as well,
system. and costs. when we budget.
20 The Tennessee Magazine
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Counting costs rate increase. This would be in addition to what will very
Maybe you’ve come up with a spreadsheet to help track likely be a rate increase passed down from TVA. Please
your household expenses. The Co-op has one of those, too know that one of the most important responsibilities I have
— only ours features 478 different expense-related as your general manager is to do my very best to represent
accounts! This massive document contains everything your interests in my dealings with TVA to help keep our
necessary in order to monitor all the various costs of wholesale power costs competitive and reasonable. My
operating and maintaining our electric system. goal as well as that of our Board is to constantly seek an
Our costs associated with providing power to our appropriate balance between affordable rates and a safe
and reliable electric system. We simply won’t be satisfied
members are directly linked to kWh sales. So if we under- or
with anything less.
over-estimate, we will miss our power cost projections as
Somebody once said, “A budget is just a method of
well. About 30 percent of our total power cost is what we
worrying before you spend money as well as afterward.”
refer to as “demand cost.” Here’s how it works: TVA bills us
Here at AEC, our focus is on putting in the thought and
for the highest one-hour peak demand each month.
effort to make sure we have a really sound budget based
Generally, this occurs on either the hottest or the coldest day
on carefully crafted estimates — and then sticking to it as
and hour of the month. No matter how mild the temperatures
closely as possible. When you head to the kitchen table
are for the entire rest of the month, our TVA power bill is
with your checkbook, calculator, bills and bank statements
dictated by that single point in time when either our heat
this month, I hope you’ll take a moment to remember that
pumps or air conditioners are working the hardest.
we’re doing essentially the same kind of thing right here at
your Cooperative. And, as always, with our members’ best
Doing what it takes to find the right balance
interests in mind.
Each year’s budget is
unique. I think most of our
members would be amazed at
Where the
just how much careful thought
and planning go into this
Money Goes
critically important document.
Everyone on the Co-op’s
management team and our
Board is fully engaged in the 80% Purchased Power
process. When all’s said and Cost of the power AEC purchases
done, AEC’s budget is no from TVA at a wholesale rate — including
demand charges, fuel cost adjustment, etc.
different than your family’s:
it’s all about making ends
meet with a finite amount of
income and ongoing (as well 15% Operations and Maintenance
as sometimes unexpected) Tree-trimming and other line
maintenance costs, repairs (including
expenses.
those due to storm damage) and ancillary
Any excess revenue is used
engineering costs
to retire debt or support
improvements to our electric
system per the reliability
requirements outlined in our 2.5% Administrative
power contract with TVA. By Costs associated with tasks performed by
the same token, if we fall office personnel, office services and
compliance/regulatory costs
short, we must find a way to
make up the difference. For
the past three and a half years,
we have managed our 2.5% Debt Service
expenses to revenue without Principal and interest on loans we
requiring an AEC rate increase have taken out to finance major
for our members — a fact of electric system improvements
which I’m very proud. Though
we continue to take steps to AEC expenses per revenue dollar
reduce costs in order to lessen With 80 cents of every dollar we take in going straight to TVA, your Co-op must pay for everything else it
impacts to our members, the takes to operate with the remaining 20 cents. This rigorous fiscal constraint means that we must make
Co-op’s next fiscal year’s that limited margin work very hard on behalf of our members.
budget may include a small
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McBee appointed to AEC Board
as Yates retires
R
ichard Yates, a longtime Grainger County undergraduate nursing
dairy farmer who has represented District 4 program since 1994. She
on Appalachian Electric Cooperative’s Board has volunteered at a number
of Directors, has stepped down after 36 years of medical clinics abroad,
of service to Co-op members. “We are indebted to led students on medical
Richard for his commitment to those we serve,” says mission trips and served on
AEC General Manager Greg Williams. “He has been an disaster relief teams.
active member of the Board’s Transportation Committee “Sue McBee has a heart
and has seen many changes over the course of his time for service,” says Williams,
as director. We’ll miss him at our meetings, and we wish “and that makes her a
him all the very best in his retirement.” perfect fit for our Board. I
Pursuant to the Cooperative’s bylaws, the Board of have no doubt that she will
Sue Cabbage McBee
Directors appointed Grainger County resident Sue be nothing less than a strong
Cabbage McBee to serve out Yates’ unexpired term, in advocate for those Cooperative members who are most
effect through AEC’s annual membership meeting on vulnerable. I look forward to working with her and our
September 24, 2016. A registered nurse for 41 years, other directors to make sure AEC continues to provide
McBee is currently an associate professor of nursing at financing options and energy-efficiency programs that
Carson-Newman University. With a Master of Science help those of our members who may be struggling with
degree in nursing from the University of Tennessee at energy costs. Sue will be a great addition to our Board as
Knoxville, she has had a wide range of clinical we work together to add value to the lives of those we
experiences and has taught in the Carson-Newman serve.”
Redding succeeds Sharp on AEC Board
F
ollowing different in that regard. His years of experience in banking
procedures outlined will be advantageous in our ongoing effort to maintain the
in the Cooperative’s highest possible standards of financial stewardship. He
bylaws, AEC’s also brings to us the perspective of the next generation of
Board of Directors appointed Co-op members, a point of view that will be useful in our
Grainger County banker Dan deliberations on behalf of those we serve. I look forward to
Redding to fill the unexpired working with Dan on issues of importance and welcome
term of retired Director Doris him to our Board.”
Sharp at the Board’s March An assistant vice president and branch manager for
29 meeting. Redding will Citizens Bank & Trust Co. of Grainger County, Redding
represent members in AEC’s has worked in the community banking sector for 15 years,
District 1, which covers most primarily in the Lakeway area. A graduate of Jefferson
of the Jefferson City area as County High School, he obtained his undergraduate degree
Dan Redding
well as the southern part of from Carson-Newman University and completed the
Grainger County and the Graduate School of Banking at Louisiana State University.
southwestern portion of Hamblen County. He has served on the boards of ALPS (Adult Day Care
“Dan is an outstanding addition to our Board,” says Services) in Morristown and Habitat for Humanity and is a
AEC General Manager Greg Williams. “Every director graduate of both the Jefferson County and the Hamblen
brings something valuable to the position, and he’s no County Leadership programs.
22 The Tennessee Magazine
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Arbor Day and Tree Line USA
Lots of great reasons to celebrate all the benefits trees bring to our lives
A
rboriculture. It’s just a fancy word for growing Another Tree Line USA
trees and taking good care of them. Which is Award for AEC —2016
something we believe in here at AEC. As marks the 11th year in a
evidence of this, the Co-op has once again received the row that the Co-op has
Tree Line USA award from the National Arbor Day received this special
recognition from the
Foundation.
National Arbor Day
“I couldn’t be more proud that we are now in our
Foundation. AEC is
second decade of being recognized with this honor,” says
represented in this photo
AEC Vice President of Engineering and Operations Joe
by Vice President of
McCarter. “The Co-op spends a lot of effort managing
Engineering &
rights of way throughout our service area. In fact, costs
Operations Joe McCarter, left, Right-of-Way Supervisor James
associated with vegetation management/tree-trimming are
Morgan, second from left, and Member Services Director Mitch
the single largest line item in AEC’s Operations and Cain, right. Tom Simpson, Regional Urban Forester with the
Maintenance budget every year. But the rewards of that Tennessee Department of Agriculture, is also pictured.
work are great. We take a lot of pride in following best
practices when it comes to tree-trimming and other wrapped up with food and a whole lot of fun! Public
aspects of our program. The best part is knowing that the officials gathered at the City Center complex in Jefferson
work we do means that the reliability of our electric City to commemorate the occasion by raising the Arbor
system is enhanced and the health of trees in our Day Foundation flag. State and county foresters were in
community is protected.” attendance, along with AEC folks and elected officials.
And the benefits of those trees are significant. Offering Remarks focused on the importance of trees and the steps
habitat for wildlife. Providing aesthetic beauty. Absorbing being taken by Jefferson City to obtain the Arbor Day
excess carbon dioxide in the atmosphere. Conserving Foundation’s “Tree City USA” designation.
energy in residential neighborhoods. Filtering pollutants. Community engagement and education continued with
Raising property values. The list goes on. tree-planting along the banks of Mossy Creek. Fifth-grade
The Tree Line USA program includes five core students from Jefferson Elementary School joined the Co-
standards: quality tree care, annual worker training, tree- op in helping to “Reclaim the Creek,” beautifying a
planting and public education, tree-based energy formerly overgrown and underused area through an effort
conservation and an annual Arbor Day celebration. AEC spearheaded by Carson-Newman University. AEC
places emphasis on each area, raising public awareness donated the trees, and Walmart provided hot dog lunches
and making sure employees and contract crews are doing to those in attendance. It was a gorgeous spring day to be
what it takes to meet the requirements necessary for the out of the classroom, learning about trees and all the
designation. things they bring to our lives.
The Co-op’s
celebration of Arbor Required clearance:
Day 2016 began with a what you need to know
about landscaping
formal ceremony
around pad-mounted
around a flagpole and
transformers — Most
folks think of right-of-way
Sometimes, “hands-on” management in terms of
involves a little DIRT — preventing
With assistance from tree/vegetation growth
John Cox Landscaping, that might interfere with
local students helped overhead power lines. But
plant four flowering it’s just as important to make sure that you keep the area around
dogwood trees that will pad-mounted transformers clear. AEC service personnel must be
provide a wide range of able to access this equipment; that includes being able to open the
benefits to our transformer and maintaining an adequate space around it in
community. They also which to work. The Co-op requires property owners to keep
learned the proper way to vegetation at least 6 feet away from the back and sides of the
plant and care for a tree. transformer, with a 12-foot clearance in front.
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People worth knowing in Co-op Country
David Skeen
Telling stories through historic images set to music
Let’s get one thing straight David Skeen uses his front porch
right off the bat. They’re way “office” to edit video on his laptop. He
more than just “old pictures.” taught himself how to use the
The historic photographs that Windows-based “Movie Maker”
software program and also how to
longtime Jefferson City resident
upload the finished videos to
David Skeen uses in his videos
YouTube.
are important visual reminders
of a time gone by. In combination is married to the former Mala
with carefully selected songs that Hudson. The couple lives on
serve to help interpret the theme Paul Drive in the Twin Oaks
of a given group of images, they subdivision. They have two
make an evocative statement daughters and five grandchildren.
about Jefferson City people and When looking for a way to
places that few can now organize and share the historic
remember. photographs that others had
loaned to him, Skeen hit upon the
I
t’s an unconventional idea of video — specifically,
hobby, to say the least. And working with still photographs in
he certainly didn’t set out to an understated yet effective
become the Ken Burns of storytelling approach that
Jefferson City. But while he may eschews voiceover narration in
not share the acclaim of the favor of slow pans and a backing
award-winning documentary track chosen specifically to
filmmaker, local realtor and underscore the mood and topic of
property manager David Skeen a given selection of images.
finds great reward in helping preserve local history For example, Bruce Springsteen’s “Your Hometown”
through the videos he produces and uploads to YouTube. plays to a montage of iconic street scenes from Jefferson
“I’ve always loved this town,” Skeen says. “Jefferson City in the 1940s and ’50s, while Colt Ford’s “Drivin’
City is just special, somehow. I think back to the time Around Song” is a perfect accompaniment to a series of
when everybody here knew everybody else. You went photos depicting bobby-soxers waving from convertibles
downtown on Friday or Saturday night to see all your and high-schoolers leaned up against their sweet rides.
friends. There was a closeness and an innocence back then Skeen is quick to note that the marriage of audio and video
that’s hard to imagine in today’s world. I think many of us is one of the most-enjoyed aspects of his work: “I love
miss the time when life was slower and more simple.” music — all kinds of music. The songs I’ve featured in my
About eight years ago, Skeen began seeking out videos have inspired me, and people tell me the music really
photographic evidence of those bygone days. “People adds to their experience of the historic photographs. When
knew that I was fond of old photographs,” he explains, possible, I even go so far as to match up a particular image
“and they’d show me their snapshots, old yearbooks or with a corresponding lyric at just the right part of a song. It’s
newspaper clippings. I’d take digital photographs of their not that easy to do, but it sure is fun when it works.”
pictures, and I guess the word just sort of spread among While he prefers to let the music and the photos speak
folks around here.” for themselves, Skeen worked to identify locations and (in
And, of course, a lot of people knew Skeen’s family. many cases) individuals who appear in the photographs,
His father, Carl Skeen, was a residential builder/developer which are discreetly labeled with on-screen graphics
and furniture store owner, and David is the eldest of 10 featuring the names of people and places. It’s taken quite a
children. A graduate of the old Jefferson High School, he bit of detective work to track down some of these folks,
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An image from a recent YouTube
search for “Davidvideo40” features a
listing of approximately 60 of
Skeen’s videos. Each one averages
about four minutes in running
length, and several have more than
4,000 views — and not just from
folks here in Co-op Country, but from
many different states and even some
foreign countries.
faces and places. Many of them
say they watch the videos with
tears in their eyes — just because
of the sweet old memories
associated with how things used
to be and seeing people they
recall from their younger days.
It’s all about bringing back a
special time in a very special
place, and I find a lot of
satisfaction in that.”
If you’d like to share some
and the task is incomplete. “You’ll see some places where historic photos of Jefferson City or the area around it,
I’ve inserted a question mark. If anyone out there happens including those showing the lives of local people, you can
to know who that person was — or is — I’d sure be glad contact David Skeen at 865-368-0933 or email him at
to have that information.” [email protected].
For folks without access to the Web, there’s another
way to view Skeen’s videos. As in years past, he plans to
have a booth at
Do you have a tip on something
“Old Time
worth doing, a person worth Saturday,”
knowing or a sight worth seeing here in Jefferson City’s
Co-op Country? Pass along your ideas street fair held each
to: Becky Burks, Communications year on the first
Coordinator, Appalachian Electric Saturday in
Cooperative, P.O. Box 400, New Market, October. He sells
TN 37620; email [email protected]; or reasonably priced
call 865-475-2032, ext. 1173. DVDs of several of
his videos and will
be happy to autograph them for customers. And if you’re
not in a buying mood, well, chances are he’ll be glad to
just reminisce with you about how Jefferson City used to
be once upon a time.
“That’s been the best part of this whole deal,” he says.
“People tell me they are touched by seeing old familiar
Always on the hunt for historic images of Jefferson City people
and places, Skeen maintains a file of resources for future projects.
He has a “wish list” of photos he’d like to be able to access —
mostly of some iconic or colorful characters who added a
distinctive flavor to the life of the town back in the day. “I’d be
thrilled if anyone out there happened to have some photos of Ray
Rogers, Mac Epps, Slick Bateman, Dr. Frank Milligan, Stooge Hicks
or Bill Tate,” he says. “I’d make digital copies of your photos and
give your originals right back to you.”
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AEC Essay Contest winners headed to D.C.
M
ore than 1,000 juniors at Grainger High for consideration in a statewide competition, with three
School, Jefferson County High School and Tennessee winners awarded an extra $1,000, $2,000 or
Morristown West High School recently $3,000 in scholarship money.
competed in the Washington Youth Tour By participating in activities designed to help them
(WYT) Essay Contest sponsored by AEC. Four students stay engaged with their Co-op and in the life of their
— two male and two female — were recognized as first- community, all six first-place students from AEC’s
and second-place winners from each school. service area have qualified for the Cooperative Youth
Two students from each school were offered the Ambassador Program, which means their names will be
opportunity to join AEC on a weeklong, expense-paid placed in a drawing for an additional $10,000
trip to Washington, D.C., in mid-June, while second- scholarship.
place winners each received $100. From the six WYT is a joint effort of AEC, the Tennessee Electric
first-place winners, an overall winner will be selected to Cooperative Association and National Rural Electric
receive a $2,500 scholarship to continue his or her Cooperative Association. Watch for details and photos in
postsecondary education. The winning essay is submitted the September issue of The Tennessee Magazine.
Dhilan Shannon Ashlin Min-Jae Sam Karli
Ramaprasad Clarke Thomas Park Horton Combs
Morristown West High School Jefferson County High School Grainger High School
Area high school students represent AEC in Nashville
J
efferson County High School student Jonathan
Royster and Grainger High School student Madison
Hodges would be the first to tell you that their time
in the State Capitol was an experience they’ll
remember for a long time.
Chosen and sponsored by AEC, Hodges and Royster
attended the Tennessee Electric Cooperative’s annual
Youth Leadership Summit held in Nashville on March 21-
23. Along with other high school juniors from across the
state, they joined legislators for a town hall meeting in the
House chamber, where they were welcomed by Speaker
Beth Harwell. The theme of this year’s event was “Small
Towns, Big Ideas.” Attendees were encouraged to use their
leadership talents to improve rural Tennessee.
“These young people will be the next generation of
community leaders — and electric cooperative member-
owners,” said Mitch Cain, AEC member services director.
“As a longtime supporter of local schools and education, As part of their time at the Youth Leadership Summit,
it’s an honor for the Co-op to help prepare these young Madison Hodges and Jonathan Royster met with a
leaders for the opportunities and challenges that are number of Tennessee state legislators, including Rep.
ahead.” Jerry Sexton.
26 The Tennessee Magazine
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Cumberland Electric Membership Corporation — Your Touchstone Energy Cooperative
CEMC JUNE 2016.qxp_03_CEMC_0616_ 5/10/16 3:54 PM Page 20
Cumberland AS I SEE IT
Manager’s Viewpoint
Electric
Membership
We are prepared
Corporation
CEMC Management and Staff
for summer storms
Jim Coode, General Manager
David Abernathy,
Operations Division Manager S
Chris A. Davis, ummer is here, school is out These problems must be corrected
Administrative Division Manager and families are gearing up for before we can focus on other areas
Mark T. Cook, P.E.
a few months of fun and relax- where more localized damage may
Engineering Division Manager
Annebelle Chester, ation. While sum- have occurred.
Human Resources Manager mer brings much fun in the CEMC’s line crews
Seth Roberts, sun, it can also bring the inspect substations to
Member Services Manager
occasional severe storm. In determine if the problem
CEMC Co-op News Editor the event of a power out- starts there or if there could
Julie Wallace
age, you can trust that be an issue down the line. If
P.O. Box 3300
Clarksville, TN 37043 Cumberland Electric Mem- the root of the problem is at
Open Monday-Friday, bership Corporation is the substation, power can be
7:30 a.m.-4:30 p.m. ready to respond. restored to thousands of
800-987-2362
The major cause of most members.
Ashland City office Jim Coode,
power outages comes from Next, crews check the
Josh Gill, General Manager,
damage to power lines due service lines that deliver
District Operations Supervisor Cumberland
Clarksville office to falling trees and power into neighborhoods
Electric Membership
Kenny Davis, branches. We work year- Corporation and communities. Crews
District Operations Supervisor
round — through repair the damaged lines,
Dover office
Terry Odom, right-of-way clearing — to ensure restoring power to hundreds of people.
District Operations Supervisor power lines in our service territory If your outage continues, there may be
Gallatin office
stand little risk of being damaged by damage to a tap line outside your home
Travis Akins,
District Operations Supervisor trees, branches or other types of or business. Make sure you notify
Portland/White House offices vegetation. CEMC so crews can inspect these lines.
Todd Hesson,
Despite our best efforts, during We will do our best to avoid power
District Operations Supervisor
major storms, damage can occur to outages, but sometimes Mother Nature
Springfield office
Nicky Roberts, transmission stations, substations and has other plans. Be sure to check our
District Operations Supervisor power lines. When this happens, our website, www.cemc.org, on your
CEMC Board of Directors first priority is to safely restore power smartphone for the latest updates
Tommy G. Whittaker,
to as many members as possible in the during a power outage.
Sumner Co., President
shortest amount of
Wesley H. Aymett,
Cheatham Co., Vice President time.
Shela K. Williams, We start by
Avoid setting your
At Large, Secretary-Treasurer
mobilizing our line
K. Jean Beauchamp, Robertson Co., thermostat at a colder
Assistant Secretary-Treasurer crews and other
setting than normal
Stephen E. Douglass, Stewart Co. critical staff. Every
Charles R. Hancock, Stewart Co. when you turn on your
phone line available
Michael A. Mason, Robertson Co.
C. David Morgan, Montgomery Co. is utilized to take air conditioner. It will not
Edward L. Oliver, Montgomery Co. your outage report cool your home any
Joe H. Whitaker, Sumner Co. calls. The big faster and could result in
Mission Statement problems are handled excessive cooling and
Cumberland Electric Membership
Corporation is committed to providing first — like damage unnecessary expense.
dependable, affordable electric service to transmission lines,
through the expertise and dedication of
which serve tens of Source: energy.gov
competent leadership and a well-
trained and responsive workforce. thousands of people.
20 The Tennessee Magazine