Inside Iowa Lakes First Broke Ground on the the Cranes Work Together by Hoisting the Base Section President/CEO Comments

The ILEC NEWS is a quarterly publication for ILEC member-owners. Spring 2009 Look to the ILEC NEWS for ILEC NEWS Iowa Lakes Electric Cooperative Cooperative news and events, industry updates, helpful hints and special Construction of Wind Farms Remains on Schedule features. Despite having an extremely cold and windy Iowa A 500-ton crane arrives at the turbine site winter this year, construction of your Cooperative’s two community-based wind projects remained on Our Mission schedule. There were only a few weather related delays Iowa Lakes Electric due to the cold temperatures and wind, whereas Cooperative is dedicated Wanzek Construction’s safety protocol required con - to leadership, growth struction to be temporarily suspended if the outside and environmental temperature dipped 5 degrees below zero or wind responsibility by providing speeds reached 22 mph to ensure the safety of the con - reliable, competitively- struction crews and to minimize potential damage. priced energy while If the weather related delays would have put the offering valuable services wind projects behind schedule, Wanzek was prepared to benefit our members, to power up portable generators with lighting towers our customers and the to illuminate the construction site to allow the crews The process of erecting each wind turbine was com - communities we serve. to continue working late into the evening during times pleted in phases, beginning with the installation of the of more favorable weather conditions. first of the three tower sections, called the base section. inside Iowa Lakes first broke ground on the The cranes work together by hoisting the base section President/CEO Comments ...... 2 Cooperative’s $43 million community-based wind of the tower into the air and attaching it to its concrete Powering Iowa’s Future project in June 2008 with a geotechnical review and pedestal base. Long and massive anchor bolts secure Customer Satisfaction Survey ...... 3 soil testing at each of the wind turbine sites. Once the base section of the turbine onto its concrete Salute to Our Team ...... 4 each turbine site location was determined, pre-con - pedestal. After the base tower section was attached and Iowa Legislators Welcomed struction work to prepare the area for the wind tur - secured, the remaining two sections of the turbine Back to Session ...... 5 bines began. tower were aligned and attached. Once assembled, the Heat Pumps Save Energy ...... 6 The first phase of pre-construction was to build completed tower pedestal stands 262 feet tall and Count on Your Cooperative for approximately five miles of new, industrial-grade weighs 276,000 pounds. Reliability ...... 7 roads. Without a finished road surface the elongated Assembling sections of the turbine tower Our Energy, Our Future Postcard . . . .8 semi tractor-trailers transporting the turbine parts would not be able to access the 14 turbine site loca - Plans Cancelled for Proposed tions. In total, it took 25 semi tractor-trailers to deliv - Sutherland Gnerating Station ...... 8 er all of the components needed to construct just one Planning a New Grain Bin? ...... 9 1.5 megawatt wind turbine. 2009 Annual Meeting and By mid-October the roads were in place and con - Director Candidates ...... 10-12 struction had started on the massive turbine founda - Automatic Bill Payment ...... 13 tions. The goal was to get the road infrastructure Above and Beyond ...... 14 completed, the foundations installed and the under - ground electric service, along with a fiber optics com - Introducing Kill A Watt ...... 14 munication system, buried before the ground froze. Energy Cost Adjustment ...... 15 Once the pre-construction work was completed, Arnold Motor Supply Expanding . . .16 the ground needed to freeze to support the significant ILCC Wind Energy Program weight of the cranes. In December, semi tractor-trail - The nacelle, which weighs 112,000 pounds, sits at Benefits from USDA Loan ...... 16 ers arrived at the wind farm sites hauling the construc - the top of the tower section near where the rotor blades tion cranes. Each wind farm was equipped with three are attached and houses all of the generating compo - Economic Development Overview .17 cranes, two smaller, 120-ton mobile cranes and one nents. The three fiberglass blades are manufactured as Register for Oahe Bus Tour ...... 18 large 500-ton crane. The 500-ton special purpose a matched set to ensure the 128 foot blades are symmet - Cooperation Among Cooperatives .18 crane had a long, lattice boom that extended 320 feet, rical and balanced. If the blades are not in balance, the Basic Electric Receives Grant ...... 18 about the length of a football field, that was needed to rotor blade assembly will not rotate smoothly and the Buy, Sell, Swap Ads ...... 19 erect the 262 foot turbine tower. vibrations would destroy the wind turbine’s generator located within the nacelle. Join Mr. Tight-Watt’s Co-op continued on pg. 5 EnergyCast! ...... 20 Powering Iowa’s Future Assigned electric service territories provide important benefits to member-owners and incentives to pursue economic development efforts for Northwest Iowa

owans receive electricity from their electric poles, transformer and wires. The certainty of know - utility, which is determined by designated serv - ing where and when we must do this allows your ice territories that were created over 30 years Cooperative to plan more efficiently and be as cost ago. In 1977, the Iowa General Assembly effective as possible. passed legislation that permitted the Iowa Under Iowa’s service territory law, all utilities are UItilities Board (IUB), which was then known as the treated equally. Every utility is landlocked and Iowa Commerce Commission, to establish exclusive assigned electric service territories are helpful to service territories for all electric utilities. As a result, Iowa’s cooperatives in dealing with density issues. each electric utility must provide safe, reliable electric Density refers to the number of member-owners a service to all customers in their assigned service ter - cooperative serves for every mile of utility line ritory and cannot serve customers in another utility’s installed and the lower the density, the higher the territory. cost of providing electric service. Cooperatives serve The IUB established these service territories by member-owners who live primarily in rural Iowa as creating boundaries in a line equidistant between we are all well aware. adjacent utilities with the flex - On average, Iowa’s ibility to consider such things cooperatives serve approxi - as preservation of existing cus - mately four customers for tomers and consideration of every mile of line available, natural or physical barriers. whereas Iowa Lakes serves, This legislative policy is on average, 2.59 member- stated as follows: “In the public owners for every mile of util - interest to encourage the ity line. The investor-owned Terry L. Bruns development of a coordinated (IOU) utilities in Iowa serve President/CEO statewide electric service at about 23 customers per mile Iowa Lakes retail, to eliminate or avoid of line and the municipal util - Electric Cooperative unnecessary duplication of ities serve nearly 54 cus - electric utility facilities, and to tomers per mile of line. promote economical, efficient, Cooperatives must spread and adequate electric service the operating costs of provid - to the public.” (Iowa Code Iowa Lakes serves, on average, ing electricity among a much 476.25) 2.59 member-owners smaller customer base than Iowa’s service territory law for every mile of utility line. either of the other two types has served Iowa well and has of Iowa utilities. become a model for other states to emulate. This law Without exclusive service territories, coopera - has provided stability to the utility industry, most tives would be at a significant risk of losing cus - notably in the areas of planning and development. tomers to other utilities and it is most likely – if that Electric utilities are very capital-intensive businesses were to occur – that cooperatives would lose those spending and investing millions of dollars each year. areas with the highest concentration or density of Cooperatives must determine as accurately as possi - electric customers. This would most likely include a ble the future electric needs of our member-owners large number of important commercial and industri - in order to ensure an adequate and reliable source of al (C&I) accounts. The operating costs of providing generation for today and at least 10 years into the electricity, however, would not decrease significantly future. Knowing with some degree of certainty who with the loss of these customers and so the remain - our member-owners are and what specific geograph - ing member-owner base would have to struggle with ic areas your Cooperative is responsible to serve the rate burden from the increase of a disproportion - helps us accomplish this planning process more al amount of operating expense combined with the effectively. Not only must cooperatives plan ahead to significant loss of the C&I operating revenue stream. meet existing member-owners generation needs, we Thus, exclusive service territories benefit the state of must also plan for system expansion and mainte - Iowa and the utility by providing member-owner nance of our existing physical delivery system – the account stability. 2 I L E C N E W S register for the oahe bus tour

Cooperatives have taken the obligation to community development programs. have helped attract, that makes for a positive win- serve seriously, which is part of the service Collectively Iowa’s electric cooperatives have win situation. Most importantly, it is not just your territory law. Not only do we install the utility some astounding statistics during 2007: Cooperative that benefits; it is all of the member- infrastructure necessary to serve the remote Ł Managed a $679 million electric utility owners of your Cooperative and the surrounding member-owner living in a home in the mid- business that employs 6,900 people and communities who benefit too! Absent assigned dle of a rural township, but we also work to generated $176 million in local income. service territories, there would be little incentive build and adequately maintain all areas of our Ł Leveraged $6.8 million in grants and loans for cooperatives to become involved in local eco - electric service territory. for a $220 million impact on local busi- nomic development and the level of economic Iowa’s cooperatives work closely with ness investment. development activity by Iowa’s utilities would sure - other utilities, cities and county economic Ł Provided financial and technical support ly decline. development professionals by attracting new for 44 wind turbines in their local areas It is important to remember that ethanol plants business and industry to Iowa. Your with a capacity to generate 38 megawatts or other agriculture related businesses should rec - Cooperative is also active in economic devel- of power. Regionally, Iowa’s electric coop- ognize this unique law and locate their new busi - opment efforts across Northwest Iowa by eratives provided economic support for ness or industrial plants within our Cooperative’s working individually with our member-own- 350 megawatts of power. electric service territory. That’s farmers helping ers to help them expand and grow locally. We Ł Invested $11.7 million in energy efficiency farmers, Iowans helping Iowans, and neighbors have assisted in the development of several programs and services and saved member- helping neighbors! industrial parks, housing and diversified serv- owners more than $18 million. Iowa’s two inventor-owned utilities (IOU’s) are ices for rural America such as Heartland Assigned electric service territories pro- located, headquartered or owned as corporations Security Services and Internet via satellite by vide cooperatives with the incentive to pursue in Madison, Wisconsin and Omaha, Nebraska not WildBlue. many different economic development in Northwest Iowa! Iowa’s electric cooperatives have invested efforts. When cooperatives know that we will Iowa Lakes Electric Cooperative is powerfully in their communities by contributing over be the electric provider to new businesses, dedicated to serve the member-owners of your COOPERATION AMONG COOPERATIVES $17 million statewide to support business and industrial parks or housing developments we Cooperative yesterday, today and tomorrow. The Power of Many Working As One!

Customer Satisfaction Survey Shows Iowa Lakes in Favorable Light e v i t a r s e

96% e Your Cooperative’s Board of Directors Your Cooperative is pleased to questions, Iowa Lakes was award - p v o Overall i t o a C r and employee team would like to thank c

report that the survey results ed an ACSI score of 86 – which is e

Satisfaction i p r t o c o those of you who took part in your 92% e

showed that member-owners are well above average compared to l C

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Cooperative’s fourth annual American r

very satisfied and are loyal to their other Touchstone Energy 90% r y k e e r a t n n L s E

u Customer Satisfaction Index (ACSI) survey. a

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The ACSI survey is one of the most recog - r 2008 ACSI results below: score of 79 and the electric indus - y t e h i l c i m t 85% u A

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Ⅲ 92 percent of the member- try average score of 73. An ACSI

T d c i i r t M

United States and is one of the most effective owner respondents said they score of 86 places Iowa Lakes c e l tools for measuring customer satisfaction. are somewhat or very satisfied Electric Cooperative 13 points E The survey results are used to track trends in with Iowa Lakes higher than the utility industry member-owner satisfaction and to compare Ⅲ 84 percent of the member- average! the Cooperative’s ACSI score to other elec - owner respondents would As depicted in the graph [to ʻ05 ʼ06 ʻ07 ʼ08 86% 79% 73% 78% tric cooperatives and the electrical utility choose Iowa Lakes as their elec - the right], this marks the fourth 92% of the member- industry in order to make improvements. tricity provider consecutive year that our mem - owner respondents The same ACSI questions are used year Ⅲ 88 percent of the member- ber-owners have given Iowa Lakes after year and throughout the electric indus - owner respondents said Iowa top marks in customer satisfac - said they are some - try making the ACSI survey the only statis - Lakes has exceeded their expec - tion! “I would like to extend my what or very satisfied tically valid comparison that provides a uni - tations personal thanks to each and every with Iowa Lakes form, cross-industry measure of customer Ⅲ 86 percent of the member- employee team member for your Electric Cooperative satisfaction. During the telephone survey owner respondents said Iowa individual efforts to meet and conducted December 2008, a group of 250 Lakes was very close to being exceed our member-owners randomly selected member-owners were an ideal utility company expectations while providing safe asked to evaluate the Cooperative based on Based on the results of the four and reliable electricity,” says the four ACSI questions. President/CEO, Terry L. Bruns.

3 salute to our team

Cooperative Service Awards

During the Cooperative’s annual holiday n 10 year service award party, the following Cooperative employ - Employees honored: Mary Duitsman, cus - ees and directors were honored with serv - tomer service representative; Jeremy ice awards recognizing their long-term Madden, lineman of the Emmetsburg years of service. service center crew; Aaron Ruschy, fore - man of the Estherville and Swea City serv - n Five year service award ice center crews; Jason Thorson, lineman Employees honored: Ryan Boss, lineman of the Cherokee service center crew. of the Storm Lake service center crew; Board Member honored: Chris Hoffman, lineman of the Estherville Jerry Fuerstenau of Mallard, Vernon 2008 Service service center crew; Patty Pelzer, customer Winterhof of Aurelia Award Winners service representative, Nicole Planting, n 20 year service award Top Photo payroll accountant/ HR assistant; Bobbi Jo Joe Caven, lineman of the Spencer service Front Row: Jason Ruschy, customer service representative; Lindsay Swanson customer service repre - center crew. Thorson, Lindsay sentative. Swanson, Ryan Bosse, Mary Duitsman. Back Row: Clay n 30 year service award Board Member honored: Carstens, Nicole Planting, Aaron Ruschy, Patty Pelzer, Joe Clay Carstens, foreman of the Spencer Tom Mortenson of Cherokee Caven, Jeremy Madden, Bobbi Jo Ruschy, Chris Hoffman service center crew. Bottom Photo Directors Vernon Winterhof, Tom Mortenson and Jerry Fuerstenau

SALUTE TO OUR COOPERATIVE EMPLOYEES Estherville/Swea City Service Center Team Wins 2008 Outage Award! The Estherville/Swea City ning the outage award over the last service center team narrowly won 15 years that we have had the com - the 2008 Outage Award with the petition,” said Vice President of lowest number of member-owner Operations and Engineering, Rick outage hours for the year! As illus - Olesen. “This year, the outage trated on the graph below, the award difference between the serv - Estherville/Swea City service cen - ice centers was the closest contest ter area experienced only 6.5 fewer in the history of the competition!” outage hours than Spencer’s serv - The Estherville/Swea City ice center’s area during the year. Foreman, Aaron Ruschy was pre - Estherville/Swea City narrowly sented the award by Rick Olesen, Pictured left to right, front row: Mat Kilgore, Tyson Nielsen, Chris captured the victory from the during Iowa Lakes’ February Hoffman. Back row: Cal Wolterman, Aaron Ruschy-(foreman), Brian Spencer service center that held Safety Meeting. The commemora - Johanson, Rick Johnson, Joel Quastad, Larry Walthart-(energy advisor). the outage award title for the previ - tive plaque recognizing the crew’s 2008 Year-to-Date Outage Hours ous two years. exceptional accomplishment will Each year, Iowa Lakes Electric be proudly displayed at both the 238.3 Cooperative’s seven service center Estherville and Swea City service 167.6 153.1 crews compete for the lowest centers. Congratulations to the 133.2 139.7 amount of outage hours both Estherville/Swea City service cen - monthly and annually. “We are ter teams! proud that of each of our service Cherokee Emmetsburg Estherville Spencer Storm Lake centers has had the honor of win - & Pocahontas & Swea City 4 Member-Owner News

Construction of Wind Farms Remains on Schedule (cont.) IOWA LEGISLATORS Once the three rotor blades were attached to the nacelle, one turbine weighs approximately WELCOMED BACK 560,000 pounds, equal to nearly seven fully loaded semi tractor-trailers. TO SESSION Installed on the top of the nacelle are two instruments to record wind data - an anemometer President/CEO, Terry L. Bruns, along and a wind vane. The anemometer measures the with more than 130 electric cooperative wind speed and the wind vane measures the direc - representatives, was in attendance at a wel - tion of the wind. The wind data collected from Above, Terry L. Bruns visits with Rep. come back reception for Iowa legislators, wind vane directs the wind turbine’s blade assem - Chuck Soderberg held at the Quality Inn & Suites in down - bly to turn into the prevailing direction of the town Des Moines, on Jan. 13, 2009. change and environmental goals that sup - wind. Once the blade assembly is facing into the Cooperative representatives discussed port affordable and reliable electricity. wind, the anemometer data determines the best renewable energy issues, energy-efficiency Your Cooperative will continue our position of the rotor blades angle and pitch to take measures and the importance of coal as a conversations with your elected officials full advantage of the wind speeds. highly efficient base load generation source and we encourage you to contact your leg - On Feb. 25, 2009, only nine months since Iowa with their legislators. Cooperative repre - islators and let them hear your voice on Lakes first broke ground on your Cooperative’s sentatives also stressed the concern of high - keeping Iowa’s electricity rates affordable. two community-based wind projects, Wanzek er electric bills if the Iowa Legislature and On March 24, 2009, your Cooperative’s Construction attached and secured the 14th, and Gov. Culver adapts the state’s energy inde - Board of Directors and employee team final, rotor blade assembly to the nacelle of the last pendence plan being developed by the Iowa attended and participated in the wind turbine, thereby completing construction of Power Fund Board and the Iowa Office of Cooperative’s “REC Day on the Hill” in Des wind projects. Energy Independence. Moines, Iowa. After General Electric (GE) commissioning According to Iowa Power Fund Board What you can do is ask your elected crews conducts the detailed inspection and testing Chairman Fred Hubbell, the doubling of officials questions. You don’t need to be an of all 14 wind turbines, Iowa Lakes anticipates the electric rates and implementing energy effi - energy expert to ask questions. Asking wind farms to begin generating wind energy by ciency mandates may be part of Iowa’s questions helps find the answers to solve the end of March 2009. After the two wind farms energy future. Hubbell said he believes that the problem of balancing climate change are fully operational and reach peak performance Iowa’s electricity rates have been held artifi - goals with keeping your lights on and your levels, they will generate at least 71 million kilo - cially low and that making electricity more electric bills affordable. watt hours of community-based wind energy each expensive will help reduce the demand for Right now, members of Congress, as year, which is the equivalent to serving almost more electricity. “We as consumers will not well as state elected officials, are hearing 3,700 of our member-owners’ farm/residential change unless there are some kind of man - from lots of different interest groups who homes. dates to take us in that direction,” Hubbell have ideas about how to address climate Ł June 2008 stated during a speech at the Iowa change. No one is talking to consumers, Ņ Soil testing begins Association of Electric Cooperatives however. We need a plan people can live Ņ 14 turbine sites determined Annual Meeting, Dec. 5, 2008. “I don’t like with today while we deal with the climate Ņ Pre-construction: 5 mi. of industrial- it any better than you do, but sometimes change problem of tomorrow. grade roads built mandates are the only way to make change Far too often questions don’t get asked happen,” Hubbell stated. by policy makers until plans go wrong. We Ł October 2008 It is important that Iowa’s legislators believe it makes more sense to know the Ņ Turbine foundation built, underground understand the impact that future energy answers before the laws are passed. You can electric service and fiber optics commu - policies wOill hauve orn IoEwanns electrric bg illsy,. h elOp your erlec tedF ofuficiatls uand ryoe urself by nication system buried Your Cooperative supports policies that having this conversation. The electric bill Ł December 2008 address the concerns Aabo uDt gilaoblaol cglimuaete Wyouit shave Awilml be eyoruirc owa n! Ņ Cranes arrived on site Ņ Base section installed to pedestal Ņ Turbine towers aligned and attached To make things easy, we have a Web site that will send an e-mail for you. Ņ Nacelle (all generating components) Go to www.OurEnergy.Coop and plug in your address. There you’ll be able to ask a and fiberglass blades placed on top series of questions to your representatives in Washington, D.C. We’re kicking this effort off with a basic but critical question: What are they doing to make sure we’ll have Ł February 2009 the power we need in the future? Ņ Final rotor blades assembled 5 ENERGY EFFICIENCY Customer Energy News

member-owners enjoy new heat pump heat pumps Save Energy Heat pumps can deliver up to 200 percent heating efficiency and up to 300 percent cooling efficiency!

Greater Efficiency A central air conditioner is usually the most costliest appliance to run in the average home. A heat pump, on the other hand, is up to 300 percent energy efficient because it does not cool the air, it simply transfers warm air from your home to the outside, which substantially reduces your cool - ing cost!

Mark and Judy Wehrspann of Milford, Iowa, have recently Energy efficient cash Rebates purchased a new home following Mark’s retirement from To encourage you to install energy efficient equipment, Iowa Lakes Lakeside Laboratory in Spirit Lake. The Wehrspanns have offers energy efficient cash rebates. The more efficient the equipment, the always lived in state lab homes that had eithera gas or propane greater the rebate (as listed below). heating system installed. Mark, who has been interested in geot - hermal heating over the years, got some encouragement from Ground Source Heat Pump ...... $300/ton Iowa Lakes’ Superintendent of Field Operations, Dick (3.5 COP and higher) Anderson and Manager of Technical Support, Doug Dau. Mark and Judy have now lived in their new home with a geothermal heating and cooling system for just over a year and Air to Air Heat Pump are very happy with their decision. “Judy and I are totally 14 Seer ...... $400/unit pleased with our decision to go with a geothermal heat pump. 15 Seer ...... $500/unit The up-front cost is expensive, but the payback is immediate,” 16 Seer ...... $600/unit stated Mark Wehrspann. “Our geothermal heat pump is very efficient.” Window A/C (Energy Star) ...... $50/unit

HOW A HEAT PUMP WORKS Central A/C 14 Seer* (min.) ...... $200/unit 15 Seer...... $300/unit 16+Seer ...... $400/unit

*Seasonal Energy Efficiency Ratio (SEER) rates the efficiency of an air condi - tioner. The higher the SEER rating of a unit, the more energy efficient it is. contact your energy advisor Please contact Iowa Lakes at 800-225-4532 to find out if an electric heat pump is right for your home!

2009 RATES FOR COOPERATIVE SERVICES

Here’s a look at the current rates for Cooperative services available to member-owners in 2009:

Setting pole for member-owner ....$150/hour, 1 hour minimum Mileage ...... $2.50/mile Labor (business hours) ...... $50/hour Labor (after hours) ...... $100/hour After Hours Service Call ...... $100/hour 6 Outage Hours 25 22.73 Historic Overview I L E C N E W S 20

COUNT ON YOUR COOPERATIVE FOR 15 Outage Hours 25 10 22.73 HOiusttaogriec HOouvres rview 25 20 22.73 Historic Overview 5 RELIABILITY 20 15 .62 On average, member-owners experienced the lowest number of electric service 2.1 0 15 .569 interruptions in 2008 since the formation of Iowa Lakes Electric Cooperative in 1986! 10ʻ8 9 ʻ90 ʼ92 ʻ94 ʼ96 ʻ98 ʼ00 ʻ02 ʼ04 ʻ06 ʼ08 Your Cooperative set an all-time record in 2008 in which member-owners experienced, 10 5 on average, only .569 hours/consumer of service interruptions during the year. Your 5 Cooperative’s previous record for the fewest hours of service interruptions was set in 2.1 2.1 ..62 0 .576..59 6639 1999 with only .62 hours/consumer of service interruptions during the year. 0 ʻ89 ʻ899 0 ʻ 9ʼ90 2ʼ9 ʻ29 ʻ49 4ʼ 9ʼ966 ʻ ʻ9988 ʼ00 ʻʻ0022 ʼ 0ʼ40 4ʻ0 ʻ60 ʼ60 8 ʼ08 Not only did your Cooperative set an all-time electric service reliability record, but we also have the best service reliability record compared to all other Iowa cooperatives 7.63 and investor-owned utilities (IOU) over the past five years. Providing you, the member- Below, a closer look at the average outage 7.63 owner with outstanding electric service reliability does not happen by chance. This is hours per consumer from 2005-2008. the direct result of your board of directors’ commitment to operate and maintain six local service centers in addition to its headquarters service center facility in Estherville. .834 2.74 In addition, it takes a well-designed and technology advanced electric distribution 1.05 system, a program of maintaining and inspecting the electric distribution system to .834 .569 1.58 2.74 1..075 86 .569 determine any replacement, maintenance and repair needs - along with a team of .834 1.58 2.74 .786 knowledgeable, well trained and dedicated employees. It also takes a comprehensive H1o.u05rs/Consumer .569 maintenance program that includes an annual pole inspection and treatment program, 1.58 ʻ05 .ʼ7086 6 ʻ07 ʼ08 an annual overhead and underground line inspection combined with vegetation man - ʻ05 ʼ06 ʻ07 ʼ08 10 Yr Avg ‘81-’85 ‘89-’08 agement to trim trees and shrubbery that could interfere with providing you, the mem - ber-owners, with safe and reliable electricity. All of these programs are the result that ʻ05 ʼ06 ʻ07 ʼ08 when you flipped the light switch in your home or business, your lights turned on 99.9935 percent of the time. .87 .87 Yet, your Cooperative recognizes that there are many factors that affect service reli - ability, many of which are beyond our direct control, including severe wind, rain, ice, .60 farm equipment, auto accidents and transmission grid interruptions. .50 Each year, your Cooperative submits the following detailed service interruption Number of outages, on average, that every member- report to the Iowa Utilities Board (IUB) based on the cause, frequency, and duration of owner experiences per year. service interruptions and impact on the Cooperative’s member-owners. Keep in mind 79.51 that the lower the number the better the performance rates. 66.82 System Average Interruption Frequency In.8de7 x .(8SA7 IFI) tracks the number of out - ʻ05 ʼ0 6 ʻ07 ʼ08 50.03 ages, on average, that every member-owner experiences pe.r6 y0ear. This index is calculat - SAIFI ed by dividing the total number of service interruptions b.y5 t0 he total number of 34.11 Cooperative member-owners. For example, a SAIFI of 1.0 would mean every member- owner on average experienced one outage per year. Your Cooperative’s 2008 SAIFI index was 0.50! Length of outages, on average, 79.51 that every member-owner System Average Interruption Duration Index (SAIDI) measures the length of out - 66.82 experiences per year. ages, on average, that every member-owner expʻe0ri5e n cʼ0e d6 e aʻc0h7 y eʼa0r.8 This index is calcu - ʻ05 ʼ06 ʻ07 ʼ08 lated by dividing the total number of minutes each member-owner is interrupted by the 50.03 total number of Cooperative member-owners. For example, a SAIDI of 100 minutes 34.11 would mean every member-owner on average experienced 100 minutes of service interruptions during the year. Your Cooperative’s 2008 SAIDI index was 34.11! Customer Average Interruption Duration Index (CAIDI) measures the average length of outages for member-owners experiencing an interruption in service. The ʻ05 ʼ06 ʻ07 ʼ08 CAIDI index is a very good indicator of a utility’s response time. The CAIDI is calcu - SAIDI (In Minutes) lated by dividing the total minutes of service interruptions by the total number of mem - ber-owners interrupted. For example, a CAIDI of 100 minutes would mean every mem - ber-owner that experienced an interruption was without electric service for 100 min - 91.72 utes. Your Cooperative’s 2008 CAIDI index was 68.53! 83.83 In the event of an outage, you can contact your Cooperative 24 hours a day, seven days a week at 800-225-4532. We have an emergency restoration plan for securing CAIDI 76.67 68.53 and sharing equipment and personnel resources during widespread service inter - (minutes) ruptions from all cooperatives throughout the state of Iowa, Minnesota and South Dakota. This plan includes procedures to help facilitate and coordinate the manage - ʻ05 ʼ06 ʻ07 ʼ08

ment of a disaster as well as training components to prepare the entire employee team to handle an emergency situation. Average length of outages for member-owners experiencing an interruption in service. The CAIDI index is a very good Your Cooperative is dedicated to keeping your lights on and we are proud that we indicator of a utility’s response time. have consistently provided you with an outstanding level of electric service reliability. 7

I L E C N E W S I NDUSTRY N EWS Plans cancelled for proposed Sutherland Generating Station Unit 4 hybrid power plant On March 5, 2009, Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corporation, along with the project’s three other partners, including Corn Belt Power Cooperative (one of your Cooperative’s two wholesale power suppliers) cancelled plans to construct the proposed Sutherland Generating Station Unit 4 in Marshalltown, Iowa. The decision to cancel the project is based on a combination of factors including the current economic and financial climate; increas - Our Energ y, Our Future ing environmental, legislative and regulatory uncertainty regarding A Dialogue With America regulation of future greenhouse gas emissions and the terms placed on the proposed power plant by regulators. “While our company is disappointed in this missed opportunity to further Iowa’s efforts to grow its economy and position our state as We have an energy challenge, America. a leader in renewable energy, we will continue to focus our efforts on We need your help. Send your postcard to expanding our renewable energy resources and energy efficiency ini - tiatives and reducing our environmental impact,” said Interstate Iowa Lakes Electric Cooperative today! Power and Light President, Tom Aller. Corn Belt Power Cooperative Executive Vice President and Fill out the insert below and return to Iowa Lakes Electric General Manager Ken Kuyper states, “It’s regrettable that this plant Cooperative. We will compile these responses and send them to won’t be built. This new source of generation was an important part your Congressmen/Senators. of our plan for meeting the growing demand for electricity from the people of rural Iowa. Corn Belt Power will work to determine the next best alternative to the Sutherland plant. We will continue to do ! everything we can to meet our cooperative member-owner’s need for reliable and affordable power.” To keep ele ctric bills a ﬀordabl e, we need to ma ke su re Cong ress is THANK YOU FOR YOUR DEDICATION lis tening to Iowa’s ele ctric co-ops I sup port public i nvestme nt th at imp roves our n atio n’s abili ty to ONG IME deli ver a ﬀordabl e, reliable ele ctrici ty. I suppo rt wise i nvestme nts th at L -T di versify our n atio n’s ene rgy po rtfolio and make our cou ntry mo re ene rgy ENGINEER RETIRES Now mo re than ever, I am very con cerned about wh at rising ene rgy costs will do to the average person. Many do not h ave the AFTER 25 Y EARS abili ty to p ay higher ele ctric bill s. My ele ctric coope ra ti ve is working OF SERVICE ! hard to keep my ele ctric b ill a!orda bl e. I understa nd that dealing wi th ene rgy and e nvi ron me nta l p roble ms is compli cated a nd will t ake time. My ele ctric coope rati ve i s rea dy to hel p you b alan ce t hese p rio rities and " nd a s olution. Will you p lease work wit h the e lectric coope ra tives to be sure publ ic p olicy meets my need for On Aug. 22, 2008, Blaine Strampe retired after pro- a! ordable e lectric ity? viding 25 years of electrical engineering services to Iowa Thank you for your attentio n to my concerns. I look forward to hea ring from you. Lakes Electric Cooperative. Strampe had served as the chief electrical engineer for the Federated Engineering PLEAS E PRIN T Group that provided engineering services for five area Name ______electric cooperatives, one of which was Iowa Lakes Electric Cooperative. Strampe also served on the E- Mail ______National Rural Electric Cooperative Association’s Home Add ress ______Transmission and Distribution Engineering Committee for 17 years. City ______The employee team and board of directors would State ______ZIP ______like to thank Strampe for his dedication and support Co-op Name ______over the last 25 years and we wish him and his family the best in his retirement. Signatur e______

Date ______

8 CALL BEFORE THE GRAIN BIN PAD IS POURED | CALL BEFORE THE BIN SITE IS CONFIRMED | CALL BEFORE YOU PURCHASE OR ADD ANY NEW MOTOR LOADS Planning a New Grain Bin? Before planning for a new grain bin (or grain bin built near an existing electric line to move an existing bin), make sure that which does not provide the clearances you contact your Cooperative’s local energy required by The American National advisor to review the specific safety clear - Standards Institute (ANSI) C2-1997 ances along with the electric service “National Electrical Safety Code,” Rule requirements and associated charges. In 234f. This paragraph “b” shall apply only to order to meet your expectations and to pro - grain bins loaded by portable augers, con - vide you with the electricity when and veyors or elevators and built after Sept. 9, where you need it, please allow a mini - 1992, or to grain bins loaded by perma - mum of six to eight weeks lead-time by nently installed augers, conveyors or eleva - following the guidelines listed below. tors built after Dec. 24, 1997. Contact your energy advisor before To promote safety, it is also suggested the grain bin pad is poured to ensure it is that you post warning signs indicating located a safe distance from overhead “loading” and “non-loading” sides of the power lines. bin. Iowa Lakes Electric Cooperative has Your local energy advisor will provide free warning decals available that can be 1you with the assistance you need for a safe used to alert others around grain bins. environment for those living and working Safety First, Always! near or around the grain bins. The State of Contact your energy advisor before Iowa requires specific clearances for over - the bin site is confirmed to ensure there head electric lines around grain bins, with are adequate electrical facilities in place different standards for those filled by to handle the new electric load. portable or permanent augers, conveyors Your local energy advisor will deter - and elevators. mine the electric service requ2irements (sin - Electric wires should be at least 15 feet gle or three phase service) relative to the from the non-loading side of the grain bin; grain bin’s motor size and review with you at least 18 feet from the highest filling or the associated service extension charges. probing port on the bin; and a clearance of at least the bin height plus 18 feet from the SERVICE EXTENSION CHARGES loading side of the grain bin. Electric serv - Member-owners are charged a contri - ice cannot be provided to a grain bin instal - bution in aid of construction to extend or lation that does not meet these specific upgrade the Cooperative’s existing service clearances. facilities to your bin site. The service exten - According to the Iowa Electric Safety sion charges are based on the distance and Code found in Iowa Administrative Code the additional kVA capacity of load Chapter 199—25.2(3) b. an electric utility installed or added. may refuse to provide electric service to any

Minimum bin set back requirements from electric wires (ft.) Bin Wire Height (ft.) Height (ft.) Contact your energy advisor before you purchase the bin or add any new motor load to ensure that your load functions properly and does not compromise the quality of the Cooperative’s electrical service delivered to others. 3Individual motors of 25 horsepower (HP) or larger require an engineering analysis and may require the installation of “soft start” equipment to reduce voltage problems. According to the Iowa Electric Safety Code found in Iowa Administrative Code Chapter 199 – 20.4(15) b., an electrical utility may refuse or disconnect service without notice in the event of “customer use of equipment in a manner which adverse - ly affects the utility’s equipment or the utility’s service to others.” Your Cooperative has a “Shared Power” program that requires large, seasonal loads of 25 kVA or larger to share in the annual costs for transmission and distribution capacity. In order to determine the annual Shared Power requirement, the trans - former is sized to meet your highest expected demand during the year. The Shared Power program is a cost-effective and con - venient program that offers you the flexibility and local control of your farming operation. Remember, when you communicate EARLY with the pro - fessionals at Iowa Lakes Electric Cooperative we can help you plan for a safe and cost effective new grain bin. Help us to help Add 5 feet to allow for displacement of electric wires due to wind. you! 9 IN THE SPOTLIGHT: Plan to Attend Your 2009 Annual Meeting April 18

A EETING NNUAL M ‘09 Annual Meeting Location Map SATURDAY, APRIL 18 EVENT N Clay Co. Regional 9 am Doors Open (Registration Begins) Events Center • Continental breakfast served West 18th Street 800 West 18th St. Spencer • Visit with fellow member-owners, employees and directors Country G Spencer, Iowa Club r Clay County a • Display area opens. Check out the great deals available on n

Fairgrounds d

WildBlue™ high-speed wireless Internet, Heartland Security v

e Spencer W Systems, energy efficient water heaters and more! est 4th St East 4th St 10 am Business Meeting • Secretary’s Report 11th Ave. SW 11th St. SE • Nominating Committee 360th St. Report • Chairman’s Report • Treasurer’s Report DON’T • President/CEO Report FORGET! REMEMBER to bring your • Director Election Official Registration Card. It will allow • Prize Drawing you to be eligible for the door prize drawings. You must be present to win. n DISTRICT I CANDIDATES

JERRY BECK JAMES SONIUS (Incumbent) SPENCER , I OWA SPENCER , I OWA

Education: Two years of college; the electric industry by providing reli - Education: 1 ½ years post high school National Rural Electric Cooperative able, competitively priced electricity to Association Credentialed Cooperative our member-owners. Occupation: Farming, custom cattle feeding, retail live - Director Certificate; various board stock equipment sales leadership courses. Long-term goals: Seeking opportuni - ties that will enhance the What are your strengths: Outgoing, level headed, com - Occupation: Farmer Cooperative’s position in the energy municator, personable, 20 years of co-op management industry. What are your strengths: I have been Short-term goals: To provide policy and direction to on the ILEC Board of Directors for Biggest concern: Regulations placed management for the continuance of a strong energy eight years and am very dedicated to on energy (electricity) that are politi - cooperative. the Cooperative. I have taken the nec - cally motivated causing exorbitant essary courses to become a costs instead of using a common sense Long-term goals: Maintaining a strong financial energy Credentialed Cooperative Director. I approach. cooperative that can provide reliable, affordable, safe and have owned and managed a successful clean energy for our future demands. steel building and grain bin business. I Other organizations and activities am willing to listen to our member- you are/have been active in: Biggest concern: Operating efficiently and affectively in owners, to find a solution to any prob - Township trustee for many years; an increasing governmental regulated environment lems that arise and I am prepared to member of the American Quarter make decisions based on facts. Horse Association and I collect and Other organizations and activities you are/have been restore antique tractors and attend active in: Administrative chairman – Zion United Short-term goals: Keeping Iowa tractor rides. Methodist Church, Township Trustee, Iowa Cattlemen’s Lakes Electric Cooperative a leader in Association, Clay County Fair Association 10 IN THE SPOTLIGHT: ONE MEMBER, ONE VOTE Plan to Attend Your 2009 Annual Meeting April 18 Director Elections for All Four Districts

Dickinson Emmet Kossuth Join your fellow members at Iowa Lakes Electric Cooperative’s 2009 Annual Meeting. The Annual Meeting will be held on Saturday, April 18, 2009. The meeting will take place at the Clay County Regional Events Center located on the Clay County Clay Palo Alto Fairgrounds in Spencer, Iowa. The purpose of the meeting will be DISTRICT I to elect board directors and conduct the regular annual meeting DISTRICT II business. Please join us for a free continental breakfast, business DISTRICT III meeting and drawings! Cherokee Buena Vista Pocahontas DISTRICT IV

n DISTRICT II CANDIDATES

ARRY JAMES P. H ULTGREN L DAVID R. E VANS (Incumbent) SCHLICHTING NEWELL , I OWA ALTA , I OWA STORM LAKE , I OWA

Education: B.A. English, Pomona College; Education: B.S., M.S. Agricultural & Education: High school M.S. & PHD English, University of Virginia Biosystems Engineering at Iowa State University; National Rural Electric Occupation: Retired Businessman Occupation: Vice President for Academic Cooperative Credentialed Cooperative What are your strengths: Strong Affairs & Dean of the Faculty, Buena Vista Director Certificate and Board Leadership work ethic and willingness to look at University, Storm Lake, Iowa. Certificate all views. Business background. What are your strengths: I understand man - Occupation: Farmer Short-term goals: To maintain good agement of a complex organization. I am electrical services and prices good working with people. I can assimilate What are your strengths: I am not afraid to large amounts of information quickly and ask the tough questions. Analytical analysis Long-term goals: To insure that all think critically and strategically. and oversight of business decisions. Positive vision for the future. ILEC customers have all the energy that is needed at competitive prices. Short-term goals: I want to understand ILEC’s operations thoroughly and how the Biggest concern: Government Cooperative fits into Iowa’s energy infra - Short-term goals: Reliable, low-cost and intervention in private affairs of structure. affordable electricity for our member- owners. business and people. Long-term goals: I would like to help ILEC Other organizations and activities achieve a leadership position in affordable, Long-term goals: I am a strong advocate of you are/have been active in: sustainable, clean energy in Iowa. More gen - green, renewable power and would like to Cherokee Lions Club erally, I am interested in fostering sustainable see our member-owners share in the gener - energy practices nationally. ation of renewable power.

Biggest concern: I am very concerned Biggest concern: The need for additional about how the current economic situation electrical generation capacity so that ILEC is will affect Iowa’s families and business cli - able to meet the electrical demand for our mate. member-owners.

Other organizations and activities you Other organizations and activities you are/have been active in: Formerly Oklahoma are/have been active in: Trustee at church, Sustainability Network; Iowa Dialog Center; Aurelia School Board, Buena Vista FSA numerous academic organizations. County Committee, Northwest ISU Farm Board and Iowa Corn and Soybean Growers. 11 IN THE SPOTLIGHT: Plan to Attend Your 2009 Annual Meeting April 18

A EETING NNUAL M n DISTRICT III CANDIDATES ‘09

n DISTRICT IV CANDIDATE GARY L. R OUSE CHAD BOYSEN (Incumbent) POCAHONTAS , AYRSHIRE , I OWA ALAN MADDEN IOWA (Incumbent Running Unopposed) Education: Two years of college Education: Ayrshire High School and Iowa RINGSTED , I OWA Lakes Community College Occupation: Farmer Education: BS AG Economics, South Dakota State 1 Occupation: Farmer University; National Rural Electric Cooperative What are your strengths: Problem Association Credentialed Cooperative Director solving, communication, long term What are your strengths: I have completed Certificate thinking and wind energy. the National Rural Electric Cooperative Credentialed Cooperative Director certifica - Occupation: Crop Insurance Agent, Pioneer Seed tion course work during first term in office. Short-term goals: Help keep the cost What are your strengths: My training to become a Works well with the CEO and Board of of electricity low and reliability, safety Credentialed Cooperative Director (CCD) has Directors. Has become familiar with many and benefits to cooperative member- strengthened my decision making ability. My past aspects of the energy industry including pro - owners high. experience on the Board has given me the knowl - duction and distribution. edge to have a strong vision for the future of ILEC. Long-term goals: Finding more Short -term goals: To maintain contact with locally controlled renewable energy Short -term goals: ILEC will face unknown chal - the member-owners in District III regarding lenges as a result of the current economic condi - sources, cutting costs and increasing their energy needs and concerns. benefits to ILEC member-owners. tions. I want to use my experience to contribute to facing those challenges. Long -term goals: To work with the rest of Biggest concern: Future cost of the ILEC Board of Directors to ensure the Long -term goals: Continue solid growth of the electricity continuous delivery of competitively priced Cooperative is essential. That growth will assure electricity to our member-owners utilizing competitive and reliable power for our member- Other organizations and activities environmentally responsibility and commu - customer-owners. you are/have been active in: Church, nity friendly means. Knights of Columbus, Township Biggest concern: The general economic instabil - clerk, Pheasants Forever, cattle and Biggest concern: The effects of government ity and how it may impact ILEC. mandates and regulations on energy costs. hogs. Other organizations and activities you are/have Other organizations and activities you been active in: 4-H programs in Emmet County are/have been active in: Elder at Zion including: Chairman of Beef Committee and Co- Lutheran Church, Silver Lake Township Chair of Auction Committee; Beginning second term Trustee as Emmet County Board of Supervisor; Past President Emmet County Cattlemen’s and Past Board member of Stateline Cooperative.

JULY 2009 S M Save the Date! T W T F S 1 2 3 4 5 6 2009 Member Appreciation Days 7 8 9 10 11 12 13 14 15 16 17 18 19 20 July 7 ...... Summit Evangelical Church, Alta 21 22 23 24 25 July 9 ...... Pocahontas Expo Center, Pocahontas 26 27 28 29 30 July 15 ...... Regional Wellness Center, Estherville July 16 ...... Regional Events Center, Spencer 12

Members Helping Members

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A ! E E AUTOMATIC BILL PAYMENT A S Y • • S T F R E E • F A qI hereby authorize Iowa Lakes Electric Cooperative to initiate variable debit entries to my account at the financial institution named below for pay - ment of my monthly electric bill. I will continue to receive a monthly bill. The bill will state in the bottom right-hand corner “Bank Draft DO NOT PAY”. The Free and Easy Way to Pay The amount of my bill will be deducted from my account on the 20th of the month. (If that day should fall on a weekend or holiday, the deduction will Your Monthly Electric Bill! be processed on the following business day.) It is also understood that I agree to be bound by the operating rules and Let the bank pay your electric bill with Automated guidelines of the National Automated Clearing House Association and shall Clearing House (ACH). No more worries whether your elec - have rights set forth here with respect to all entries initiated by Iowa Lakes tric bill was paid or if it reached your Cooperative on time. Electric Cooperative pursuant to this agreement. ACH is a convenient way to pay your monthly bill. If you It is understood that this agreement may be terminated by me (or either sign up for ACH, your monthly electric bill payment is of us) at any time by written notice to Iowa Lakes Electric Cooperative. Any such notifications to Iowa Lakes Electric Cooperative shall be effective only automatically deducted from your bank account. with respect to entries initiated after receipt of such notification. Member-owners no longer need to write a check and mail it or worry about forgetting to pay your bill on time. Bank Account Information All you have to do is fill out and sign the Automatic Bill Name of Financial Institution: ______Payment Form (on the right) along with a voided check Routing Number: ______and return to Iowa Lakes Electric Cooperative. Bank Account Number: ______The amount of your electric bill will be deducted from Type of Account: q Checking q Savings your specified account on the 20th of the month. (If that day should fall on a weekend or holiday, the deduction Signature will be processed on the following business day.) Authorized Signature (Primary): ______Authorized Signature (Joint): ______If you have any questions about Automated Payment, Date: ______please call Iowa Lakes Electric Cooperative at 800-225- 4532 for more information. Electric Account Information Electric Account Number(s): ______Name (as it appears on electric bill): ______**Please attach a voided check.

Have you visited us online? www.ilec.coop

Iowa Lakes’ Web site is packed with great member-owner information! For resources ranging from energy usage calculators to local CFL recycling centers, you will find an incredible amount of useful products, timely updates and valu - able tips on our Web site. While your on-line, enter the monthly drawings for free prizes, sign up for the automatic bill payment option or learn more about our energy efficiency programs, services and rebates. Our Web site is easy to navigate with drop down menus located along the top of the page. We encourage you to check out our Web site and we look forward to your feedback. Check us out at www.ilec.coop.

13 I L E C N E W S Above and Beyond

Superintendent of Field Operations, Dick Anderson was recently awarded the Touchstone Energy Power & Hope Award after he came to the rescue of an Emmet County One lucky member-owner of Iowa Lakes Electric Sheriff’s Department jailer. Cooperative has a new way to save energy. Bob The Touchstone Energy Power & Speed was one of six winners of a Smart Strip seven- Hope Employee Recognition outlet surge protector with energy-saving electron - Program recognizes and honors elec - ics. The surge protectors were the door prizes given tric cooperative employees who have by Iowa Lakes Electric Cooperative and the reached out and helped the community Touchstone Energy® Cooperatives of western Iowa at the Siouxland Home Show in Sioux City. under the most difficult of circumstances. Dick Anderson Anderson was one of 26 nominees honored dur - The special surge protector works with comput - ing the 2009 National Rural Electric Cooperative As the prison guard was escorting the prison - er systems, entertainment systems and workshops. Association Annual Meeting in New Orleans, La. er back to the squad car, the prisoner tried to This is how the surge protector works: Plug the con - Anderson, who was driving back to the escape again by assaulting the guard and attempt - trol device (computer or television) into the strip’s Cooperative’s service center in Estherville, came ing to drive off with the running squad car. main outlet; connect always-on devices (such as a upon a life threatening situation. A convicted Anderson intervened again and removed the fax, cable box or satellite receiver) to the red “con - prisoner, who had escaped from the squad car he prisoner from the car. The Sheriff’s Department stant on” outlets; and plug everything else into the was traveling in was attempting to choke the soon arrived at the scene to assist. white switched outlets. jailor/guard with the chain on his handcuffs. Not Anderson was honored by the Emmet The Smart Strip monitors the current flow and deter - knowing if the prisoner was armed Anderson County, Iowa Sheriff’s Department for his display mines if the control device is on, off or in the sleep single handedly removed the prisoner off the of bravery without considering the danger to his mode. It turns the peripherals off when the main jailor/guard preventing the situation from own life. Congratulations Dick! device is not in use, and on again when it is used. becoming any more serious. Congratulations to Bob!

News You Can Use Introducing Kill A Watt™ What Are Your Appliances BOB EMGARTEN Consuming? HIRED AS NEW Are you aware of how much energy COOPERATIVE that big screen television or that old, spare refrigerator in the basement or ENGINEER garage is using? With the Kill A Watt™ electricity usage monitor, you can dis - cover how much electricity your house - As Iowa Lakes Electric Cooperative conducted a year-long, hold appliances consume and which nationwide search for a new electrical engineer, we found the appliances continue to consume electric - most qualified candidate working right in our own office! ity even when turned off (phantom Robert (Bob) Emgarten, a licensed Professional Engineer loads). Simply plug the Kill A Watt™ monitor (PE) who has worked 22 years for the Federated Engineering into any household outlet and plug your appliance into the Kill Group that provided engineering services for five area electric A Watt™ and the monitor will display how much electricity is cooperatives (including Iowa Lakes Electric Cooperative) being consumed, regardless of whether the appliance is turned brings over 25 years experience in electrical engineering to on or off. The Kill A Watt™ display will count electricity con - your Cooperative. sumption by the kilowatt hour (kWh) enabling you to calculate We are very fortunate to have Bob join Iowa Lakes Electric your electrical operating costs by the day, week, month, even an entire year. Cooperative. Bob has a long history working with Iowa Lakes Member-owners can borrow the Kill A Watt™ monitor and is very knowledgeable of our electric distribution system. from the Cooperative free of charge for a one week time Bob is a great addition to our employee team,” said period. Simply stop by the office in Estherville or call President/CEO, Terry L. Bruns. your Cooperative at 800-225-4532 to “check-out” a Kill A Emgarten, and his wife Mary, who are also member-owners Watt™ monitor for use in your home for a one week time of the Cooperative, reside in the rural Spirit Lake area and have period. four children. Welcome Bob! 14 Members Helping Members POWER COST Your Board of Directors has approved freezing retail ADJUSTMENT rates for at least the first six months during 2009.

As the demand for electricity continues to grow, so does the A balanced, common-sense approach is needed in develop - demand to build additional generation resources. At the same ing a national energy policy that ensures adequate, reliable and time, other factors which affect the cost of wholesale power such affordable electric service. Any plan to significantly alter our as the construction of new generation facilities, cost of fuel, rail energy policy or reduce carbon emissions must include respon - transportation costs and environmental regulations. All these sible investments in all resources — by maximizing energy con - factors have combined to force the price of electricity produc - servation and efficiency, investing in renewable energy and tion up across the country and also at your Cooperative. encouraging additional generation from reliable technologies To pay for the production cost increases, and to ensure that such as nuclear and cleaner burning coal. These are all compo - safe, reliable and environmentally responsible electric service nents of a long-term solution to our nation’s energy, environ - continues, your Cooperative’s two wholesale power suppliers mental and economic challenges. raised your Cooperative’s wholesale rates on Jan. 1, 2009. Member-owners can be part of the energy solution to help Despite significant wholesale cost increases from your keep electricity rates as low as possible by starting a conversation Cooperative’s two wholesale power suppliers, your Board of with your elected officials. Log on and ask the questions about Directors has approved to continue freezing retail rates for at energy policy that can be found at www.ourenergy.coop. least the first six months during 2009. During 2008, your Cooperative internally absorbed whole - Amounts Invested in sale power cost increases of at least $500,000, so this proposed price freeze cannot, and will not, last forever. Energy Efficiency by Over the last six years your Cooperative’s wholesale power Iowa’s Electric Cooperatives costs — which is currently almost 70 percent of your

Cooperative’s operating costs — has increased by 35 percent and $12,000,000 we expect yearly increases in wholesale power costs in the upcoming years. One reasonable method to appropriately pass $10,000,000 on just the wholesale power cost increases is through a power cost adjustment (PCA). A power cost adjustment (PCA) is a line $8,000,000 item charge on your monthly billing statement that may fluctu - ate on a monthly, quarterly or annual basis depending on the $6,000,000 increase or decrease in your Cooperative’s wholesale power costs. $4,000,000 To help member-owners deal with rising costs, your Cooperative has several energy efficiency programs that have $2,000,000 been developed in addition to existing programs that encourage wise energy use to help you manage your monthly electricity 0 bills. 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

© Copyright 2009 Iowa Association of Electric Cooperatives. Reprinted with permission of Living with Energy in Iowa magazine. ! Members Helping Members Members Helping Members What is RECare? RECare Participation Form RECare provides local community action agencies Yes, I want to be part of “members helping members” and contribute to RECare. with funds to help low-income families pay for winter m heating bills and weatherize their homes. This program I will make a one-time contribution to RECare. My check is enclosed. allows you to help other less fortunate electric coopera - m I will contribute $____per month to RECare. I understand that this amount will be tive member-owners. automatically added to my monthly electric bill. Through RECare, you may make a one-time contri - bution or a monthly pledge that will automatically be Name: ______added to your monthly electric bill. As little as one dollar Address: ______a month will help others. To participate, please complete City, State, Zip: ______the form below and return it with your monthly billing Acct. #: ______statement to Iowa Lakes Electric Cooperative. Thank you for your support of this worthwhile program! Please return reply form with your Iowa Lakes billing statement 15 ECONOMIC ARNOLD MOTOR SUPPLY IS GROWTH EXPANDING IN SPENCER NEWS Long-time Spencer based company investing and creating jobs

On Dec. 16, 2008, a long-time Spencer employ over 550 people, of which approxi - based company, Arnold Motor Supply, pur - mately 86 work in Spencer at the warehouse chased the 20,250 square foot spec building and the parts store. The new training center located at Technical Park South in west will bring customers from around the Spencer from Spencer Industries Midwest for training on the company’s paint Foundation. systems, Industrial Coatings procedures, Work has begun to get the building and other automotive and industrial related ready for occupancy and once the building matters. is ready to move into, Around Motor Supply The spec building was a partnership plans on adding five to six new jobs. The between Iowa Lakes Electric Cooperative, new building for the company’s Industrial Corn Belt Power Cooperative, the city of Coatings Division will include a blending Spencer, and Spencer Industries Iowa Lakes Electric Cooperative’s President/CEO, facility, a training facility for the equipment Foundation. The partners each contributed Terry L. Bruns, second from right, and Jim Vermeer, division called Arnold Group Equipment, cash to the development of the first few lots left, vice president of business development, Corn and office space for both entities which are in Technical Park South and the two spec Belt Power Cooperative, meet with representatives now located in Sioux City and at the Arnold buildings, one now occupied by Johnston from the City of Spencer, Spencer Industries Motor Supply auto parts store on South Automotive. Iowa Lakes Electric Grand in Spencer. Cooperative and Corn Belt Power Foundation and Arnold Motor Supply to close on the Arnold Motor Supply has been based in Cooperative also provided low-interest sale of the spec building in the Spencer Technical Spencer since 1927. With facilities in five financing of the building for Spencer Park South. states in the Midwest, they serve the auto - Industries Foundation. motive replacement parts industry. They

USDA Rural Development’s Energy Program Can Help Reduce Energy Costs Since 2003, USDA Rural Development has assisted nearly 400 producers and rural businesses in Iowa with guaranteed loans and grants for renewable energy and energy efficie ncy projects. Renewable energy examples include geothermal, wind, ethanol and biodiesel. Energy effi - cienWINDcy examples include new refrigeration equipment, grain drying systems and improved insulation. Businesses that use a large amount of energyE, suNERch as restauGYrants, grocery stores, bakeries, greenhouses and others may benefit from an energy ‐efficient upgrade that these funds Contact Chris Mercer, (712) 732-1851 could help finance. Total project costs can be as little as $6,000 for energy efficiency updates and $10,000 for renewable energy projects. or visit www.rurdev.usda.gov/ia

Iowa Lakes Electric Cooperative USDA Loan Benefits WIND ENERGY Iowa Lakes Community College Wind Energy Building COOPERATIVE ENERGIZES COMMITMENT TO IOWA’S RENEWABLE ENERGY

A $360,000 grant secured by Iowa Lakes Electric Cooperative through the U.S. Department of Agriculture will benefit the Wind Energy and Turbine Technology program at Iowa Lakes Community College. The funds were initially announced for the Sustainable Energy Education Center/Wind Energy building in mid-2008. “This is a prime example of Iowa Lakes’ commitment to Iowa’s renewable energy and we are proud of the college’s leadership role to help create jobs, economic opportunity and essential renew - able energy services in northwest Iowa,” said President/CEO, Terry L. Bruns of Iowa Lakes Electric Cooperative. The Wind Energy and Turbine Technology program continues to grow rapidly and needs additional classroom space. “We’re building these facilities in response to growing enrollment that surpasses the college’s abil - ity with current facilities to serve the amount of interest from students around the country,” said Dr. Harold Prior, president of the college. “Our partnership with Iowa Lakes Electric Cooperative, Terry L. Bruns, Rick Olesen and all the employee team at Iowa Lakes Electric Cooperative has been exemplary,” Prior added. “Their support President/CEO Terry L. Bruns, right, presents Iowa of our initiative to expand the Wind Energy & Turbine Technology program has enabled the college Lakes Community College President, Dr. Harold to make those expansions in programming in a timely manner.” Prior, center, and Robert L'Heureux, chief financial Iowa Lakes Electric Cooperative applied for the grant through the Office of Rural Development officer with a check that will benefit the Wind of the USDA. Once approved, the college submitted the necessary documentation to support the Energy and Turbine Technology program at Iowa grant application. 16 Lakes Community College. Iowa Lakes Electric Cooperative has access to funding resources to stimulate economic growth and develop - ment in its service area. One such funding source is the Rural Economic Development Loan and Grant (REDL&G) Program that was specifically designed to assist job creation projects in rural areas. Iowa Lakes Electric Cooperative can apply to this unique USDA program that allows for up to $740,000 in zero percent interest financing to assist in area business expansions. For more than 10 years, your Cooperative has supported rural development projects by securing REDL&G funds help create jobs, economic opportunity and essential services in rural areas that strengthening the local economy. For example, after the town of Parkersburg was hit by an F5 tornado during the spring of 2008, Iowa Lakes provided $50,000 for the construction of a new 9,558 square foot commercial building. Iowa Lakes was one of 13 electric cooperatives to help provide funds for the project (see photo on the right).

Iowa Lakes Electric Cooperative prides itself in being proactive in economic development activities within its service area by creating and fostering economic development opportunities for the benefit of its member-owners, local communities and regional economic vitality.

1998 1998 2002 2003

FINANCING: $250,000 FINANCING: $250,000 FINANCING: $240,000 FINANCING: $175,000 ENTITY: Iowa Great Lakes ENTITY: Spencer Industries ENTITY: Community Care ENTITY: Albert City Chamber of Commerce Foundation Center Improvement Corporation PROJECT: 30,000 sq. ft. spec. PROJECT: 20,000 sq. ft. spec. PROJECT: 18-unit assisted living PROJECT: Pleasant View Home commercial building commercial building complex addition 16-unit Independent Living LOCATION: Lakes Business LOCATION: Spencer Technical LOCATION: Ruthven, Iowa Facility Park, Spirit Lake, Iowa Park, Spencer, Iowa JOBS CREATED: 6 LOCATION: Albert City, Iowa JOBS CREATED: 2 JOBS CREATED: 4 JOBS CREATED: 2

2004 2004 2006 2008

FINANCING: $150,000 FINANCING: $125,066 FINANCING: $162,000 FINANCING: $258,000 ENTITY: Nystrom Leasing, Inc ENTITY: Estherville Industrial ENTITY: Spencer Industries ENTITY: Estherville Good PROJECT: 23,000 sq. ft. Development Corporation Foundation, Inc. Samaritan Center expansion to building leased to PROJECT: 30,000 sq. ft. spec. PROJECT: 20,250 sq. ft. spec. PROJECT: Expansion and reno - Metal Works, Inc. and MWI commercial building commercial building vation of the Special Care Unit Components, L.L.C. LOCATION: Estherville LOCATION: Spencer Technical LOCATION: Estherville, Iowa LOCATION: Spencer Technical Technical Park, Estherville, Iowa Park South, Spencer, Iowa JOBS CREATED: 4 Park, Spencer, Iowa 2009 JOBS CREATED: 6 In 2006, Iowa Lakes financed In 2008, Arnold Motor Supply FINANCING: $360,000 $50,000 for Nystrom Leasing’s purchased the spec. building. ENTITY: Iowa Lakes Community second building expansion, See complete story details on College creating six additional jobs. page 16. PROJECT: Expansion to the Wind Energy & Turbine Iowa Lakes Electric Cooperative prides itself in being proactive in economic Technology Program LOCATION: Estherville, Iowa development activities in Northwest Iowa. The Power of Many, Working as One! 17 I L E C N E W S register for the oahe bus tour

Each summer, Iowa Lakes Electric Cooperative helps sponsor the Oahe/ Basin Bus Tour — a fun-filled pilgrimage across the historic Dakotas to the Great Plains of our nation to the very heart of our electric generation system. During the three-day expedition, member- owners will visit Beulah, North Dakota and one of the largest coal producers in the United States. This is a must-see trip for anyone wanting a greater understanding of electricity generation! To enter the drawing for this unforgettable trip, fill out the registration form on the left and return it to Iowa Lakes Electric Cooperative by May 15, 2009. If you are selected, there is a minimal charge of $50 per couple. The remainder of the expenses for the trip are provided by Iowa Lakes Electric Cooperative and Northwest Iowa Power Cooperative. Six Iowa Lakes member-owners and their guests will be drawn as lucky winners with their choice of tour dates in July and August.

DEDICATED CREW HELPS COOPERATIVE IN NEED

COOPERATION AMONG COOPERATIVES

On Nov. 9, 2008, Iowa Lakes Electric Cooperative dispatched six linemen (Jason Thorson, Joel Quastad, Todd Bell, Dennis Rodger, Brian Scott and Brad DeWall), two basket trucks, one digger truck and a pole trailer to South Dakota to assist West River Electric Association Inc., and Butte Electric Cooperative restore power to their member-owners who were without elec - tricity caused by a major snow storm. For over six days, Iowa Lakes’ storm crews, along with 25 crew members from neighboring cooperatives and independent contractors, worked long hours each day to help restore power to as many member-owners as quickly and safely as possible. It was reported that at one point, the storm had downed more than 2,000 utility poles and the damage extended the entire Front Row (pictured left to right): Jason Thorson, Joel Quastad, Todd Bell. length of the western part of the state of South Dakota. Back Row: Dennis Rodger, Brian Scott, Brad DeWall

News You Can Use Basin Electric Power Cooperative Receives Grant for Carbon Capture Technology Basin Electric Power Cooperative, head - in the ground at oil wells to force oil to the infrastructure enhances the carbon capture quartered in Bismarck, N.D., is receiving a surface. The process will include injecting a and sequestration demonstration project ’s $300 million U.S. Department of Agriculture small percentage of CO2 into a deep saline viability. grant for its Antelope Valley power plant in formation to determine the viability of that The Agriculture Department grant North Dakota to demonstrate carbon capture method for storing CO2. comes in the wake of a 2008 Energy and storage technology that will capture The new project is being paired with a Department decision to cancel the 3,000 tons of carbon dioxide per day. Basin Electric coal gasification plant that FutureGen carbon capture and sequestration Basin Electric ’s project will capture and produces synthetic natural gas from coal and project in Illinois in favor of multiple smaller pressurize CO2 and pipe it to oil fields in sends its CO2 emissions by pipeline to projects around the country. 18 Canada. The gas will be injected and stored Canadian oilfields for oil recovery, and that Ads are printed in the order in which they are received. The ILEC NEWS publication is published quarterly. Classified ads are published only in the ILEC News quarterly newsletter. Please mail or email your classified ads by the 20th of the month prior to the ILEC News publication. Ads are limited to 25 words or less. Please, no real estate, commercial business or competing product ads. Iowa Lakes accepts no responsibility as to the accuracy or condition of the items listed below. In addition, Iowa Lakes does not warrant or express any opinion whatsoever as to the fitness or appropriate usefulness of any item as listed by owner/seller. Email classified ads to [email protected] or mail to 702 S. 1st St., Estherville, IA 51334. AUTOMOTIVE For Sale: 1971 Ford Pick Up, ¾ ton. $2,000. HOME FURNISHINGS For Sale: 1996 Chrysler Town & Country, OBO. 712-858-4647. For Sale: Very Good Condition, Lester 140,000 miles, good work auto. 712-744- For Sale: 1965 Ford Ranchero Body straight, Spinet Piano — Betsy Ross edition, bench 3271 or 712-322-6341. some rust, needs engine $1,200. OBO. 712- included, reasonably priced at $150. 712- For Sale: 1960 Ford Falcon 4dr, 6cyl, stick, 858-4647. 336-4875 or 712-336-1131. new brakes, white color. $1,200. OBO. 712- For Sale: 1966 Ford Mustang. For restora - For Sale: Large hot tub or spa in good condi - 858-4647. tion. $2,000. 712-858-4647. tion. 712-865-3308. For Sale: 2006 Ford 500 4door PS, PB, AC FARM EQUIPMENT/PRODUCTS RECREATION Automatic CD player, PSeats, 24,000 miles. For Sale: JD pull 8 row 30” corn planter; JD For Sale: ’79 Majestic Travel Trailer, 20’ self $13,500. OBO. 712-858-4647. A-W tandem disc; Peck 8-60 Auger; 200 bu. contained. Includes: ’88 Chevy cargo van For Sale: 1995 Ford Crown Victoria PS, PB, gravity wagon; JD 6 row mounted rotary with heavy duty hitch & sway bars. $1,750. AC. New tires and front end alignment. hoe. 712-426-3577. 712-336-5017. Good mechanical condition. White w/Blue For Sale: 1989 International Diesel 400 bu. WANTED interior. $3,800. OBO. 712-858-4647. Oswald Mixer box 4 auger. 5 & 2 speed. WANTED: 6600 or 4420 JD Combine. 712- For Sale: 1964 Corvair Convertible 6cyl, Excellent condition. 712-853-6303. 852-9307. 4speed. No title parts car. $800. OBO. 712- For Sale: BISON meat, locally produced and WANTED: Waste Oil (No Anti-Freeze) will 858-4647. processed. We can deliver. All other bison pick up. 712-858-4647. For Sale: 1979 Ford Ranchero. Body straight, products available. 712-286-5678. some rust, needs engine. $1,200. OBO. 712- For Sale: Black walnut shells for whoever 858-4647. has a use for them, price reasonable & nego - tiable. Albert City 712-843-5565.

LETTERS TO THE COOPERATIVE

n I want to thank you as I am paying my n Thank you for the CFL Energy Star last electric bill after our Hartwig family has lights you sent us. I have already replaced been with REC and Iowa Lakes Electric the last two regular bulbs with them. Thank Let us k ee p since 1938. The meter pole is still in use. I you for the $25 credit we received from the could not have better service after 71 years. Quiz Corner Drawing. We enjoy reading the watc h while it Whenever our electric power went off, the newsletter and doing the Quiz Corner. Its rai ns line crew had power in a very short time. great how you keep us informed on what’s Wish you kne w when you r sump pump The worst was in January 1975. Our neigh - going on within the Co-op. Thank you for wasn’t keepin g up? Wish you had kno wn bors and we were out for about three days. I the excellent service you give us. that you r sump pump quit befo re seeing want to thank you for all the many years I’ve Roger & Fran Schaefer wate r all ove r you r basement ﬂoo r? been with the company and all meeting and door prizes I have gotten. Sign up for a Hea rt la nd Sec ur ity Your Past Time Customer, n The Ruthven–Ayrshire Post Prom sys tem by Apr il 30, 200 9 Robert Hartwig Committee extends its sincere appreciation and a FREE wa ter to you for your contribution to our post se nsor! * n Iowa Lakes Electric, prom party. Thank you especially for your Thank you so much for donating the use concern for the young people of our com - Secu rity systems ﬁtted of your trencher/backhoe to Pat Walsh so he munities. Thank you for your donation! with special senso rs can help detect could put in a water line for our 4-H Club. Ruthven-Ayrshire Post Prom smoke, wate r and Our 4-Her’s truly appreciate companies like Committee tempe ratu re changes 1-800-225-4532 yours. With your help, we can make the best within you r home . better!! Thank you ever so much! Certain rest rictions appl y. May not b e combined with any othe r o ffe rs. Cherokee Cavaliers 4-H Club Ask how you can receive a 10% disc ount on Hea rt la nd Sec ur ity sys tems a nd m on itor ing ! 19

* PRSRT STD US POSTAGE PAID SIOUX CITY IA PERMIT 138

702 South 1st St. • Estherville, IA 51334 Reach Us OFFICE HOURS: 8 a.m. to 5 p.m. (Mon- Fri) Contact Iowa Lakes 24 hours/day, Join M r. Tight- Watt ʼs 7 days/week with the following toll-free Co-op EnergyCast! numbers:

Join Mr. Tight-Watt’s Co-op EnergyCast! Customer Service: Topic: CFLs - types, styles, uses and energy efficiency savings (800) 225-4532 (24 hr.) Guest Expert: Rob Kirkpatrick, chief operting officer, Service Concepts (Primary and To Participate: Login through a link on Iowa Lakes’ Web site, Emergency) www.ilec.coop. No pre-registration required. Internet Services: FREE Prize Drawings for Participants Sales (800) 225-4532 Live Online Seminar Tech Support: Wed. April 15, 2009 Now you can attend a live, on-line energy efficient seminar and get (888) 326-5192 7:00 - 7:30 p.m. tips from an energy expert every third Wednesday of each month. Customer/Internet Services Fax: (712) 362-2819 $100 CONGRATULATIONS TO OUR RECIPE WINNER inside ER WINN During the month of December, member-owners had the opportuni - ty to share their favorite holiday recipes in our online Recipe Center and be automatically entered into a drawing for $100 in glass bakeware. Member-owner, Alice Kollasch’s recipe was the lucky winner from all the recipes entered. Call Before Poppy Seed Salad Dressing Iowa Lakes’ Amy 1/2 cup lukewarm water 1 Tbsp chopped onion Slowly add 1 1/2 cups extra Howard, Manager of You Dig 1/2 cup raw honey 1 Tbsp poppy seeds virgin olive oil. Customer Service (left) Iowa One-Call 1/4 cup raw apple cider vinegar Blend all 6 ingredients listed Blend. Chill. Enjoy presents Alice Kollasch with (800) 292-8989 2 Tbsp mustard (not powder) above in blender. new glass bakeware

Iowa Lakes will continue to draw four lucky members QUIZ CORNER each quarter who will receive $25 credits towards their Visit Us Online: electric bills. This month’s $25 winners were: www.ilec.coop Please continue to send in your completed Steve Burgeson, Armstrong, Iowa Quiz Corner forms by the 15th of the month Donald K. Mummert, Aurelia, Iowa E-Mail: [email protected] prior to the next quarterly publication. Mildred V. Hansen, Marathon, Iowa Lampe Farms, Havelock, Iowa Newsletter Editor: Tresa Hussong 1. Now that the construction on your Cooperative’s wind farm is complete, the wind farms began generating wind energy at the end of ______

2. In 2008, your Cooperative set a new record for the least number of service interruptions. On average, how many outage hours/consumer did member-owners experience in 2008? ______

3. What is the date of the 2009 Annual Meeting? ______

Name ______Account Number ______!