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November 2016 Cooperative Connections

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November 2016 Cooperative Connections NOVEMBER 2016 VOL. 17 NO. 7 Co-ops Vote: Ensuring Rural America is Heard P8-9 Manager Column Budget Process will Help Determine 2017 Rates This is the time wholesale power rates. For example, the entire system had a of year when we mild winter and spring. This lowers sales and consequently begin the budget revenues that are necessary to cover the cost of operations. process. We In the past, our power supplier has had subsidiaries such as analyze what Dakota Gasification to help us manage through diminishing we expect for electric sales. Unfortunately, there have been record low sales, wholesale natural gas prices as well as commodity prices. Under these power rates, our conditions, even the sales of co-products, such as fertilizer that construction is produced at Dakota Gas, cannot make up the difference in work plan, and revenue. Even as revenue from these types of sales has been fixed costs, etc. reduced, electric usage in the Basin family is still growing and This analysis will so there are necessary capital expenditures that are needed to help the Board of support system growth. Directors set the Finally, we are also experiencing the impact of 2017 retail rates environmental regulations. Through 2015, Basin Electric for members. and its subsidiaries have invested more than $1.5 Billion As you read a on emission control technology. Annually, more than few months ago, $181-Million is needed to operate and maintain those Tim McCarthy we did receive a controls. None of this even takes into account the potential wholesale power rate impact of the Clean Power Plan, which could add $5 Billion General Manager/CEO increase from our in costs to Basin-member electric cooperatives over the next 15 power supplier in years. August. We were able to hold off any retail rate increases until So, what are we doing? Basin Electric was able to cut 2017 because of our focus on internal efficiencies, growth in $100-Million from its consolidated operating budget. Sioux sales, and a revenue deferral plan. Valley Energy is continuing to keep distribution costs stable We know there will be a rate increase for members this and monitor budget considerations extremely carefully. We are coming year—what we don’t know right now is the percentage also working to represent you and electric cooperative member of the increase and the date it will go into effect. The Board interests in Pierre, St. Paul and Washington, D.C. to try and will be reviewing the full analysis and rate scenarios in minimize the financial impacts of state and federal regulations. December. Once this process is completed, we will provide a In the end, there is great value to electricity and while costs more detailed report to the membership. are increasing, we have been fortunate here in the Midwest So, what is behind the rise in wholesale power costs and to have some of the lowest cost electricity in the nation. It is why does it impact your electric bill so significantly? our commitment to continue to invest appropriately in the Well, first off--more than 65 percent of your monthly distribution system -- balancing rates, reliability, and customer electric bill goes directly to our power suppliers to purchase the service. energy you use. Increases in the cost of wholesale power have Look for information toward the end of December or early the most significant impact on your bill. Sioux Valley Energy in January regarding rate increases. SVE will also hold 10 has worked hard and has been successful in keeping costs district meetings throughout the month of March where we applied to the distribution system stable. will be providing you additional information on this issue. Currently, a lot of “out-of-the-norm” factors are impacting 2 November 2016 • COOPERATIVE CONNECTIONS Budget Process will Help Determine Call 811 Before 2017 Rates Digging This Fall (USPS No. 497-440) Spring is an optimal time of year to dream up and achieve your landscap­ General Manager/CEO ing masterpiece, but in many parts of the country, planting shrubs in early Tim McCarthy fall gives the plants a head start at establishing roots in the season’s cool, moist Editor-Carrie Law soil. Perhaps you’re planning to build a new deck to enjoy those cool autumn evenings. If any of your fall projects require digging––such as planting trees or Board of Directors shrubs, or setting posts––remember to dial 811 first. President, Rodney DeMent, Humboldt, S.D. Underground utilities, such as buried gas, water and electric lines, can be a Vice President, Allan Weinacht, Colton, S.D. shovel thrust away from turning a fall project into a disaster. Secretary, Allan Kooima, Volga, S.D. Treasurer, Arlyn Zylstra, Jasper, Minn. Play it safe by dialing 811 to find out where utility lines run on your prop­ Henning Hansen, Elkton, S.D. erty. Your call will be routed to a local “one call” center. Tell the operator where Mark Rogen, Garretson, S.D. you’re planning to dig and what type of work you will be doing, and affected Gary Drost, Luverne, Minn. local utilities will be notified. Bruce Martinson, Jasper, Minn. In a few days, a locator will arrive to designate the approximate location of Gregg Johnson, Pipestone, Minn. Gary Fish, Brandon, S.D. any underground lines, pipes and cables. These areas will be marked with flags Dave Daniel, Wentworth, S.D. or paint so you’ll know what’s below. Then the safe digging can begin. Although many homeowners tackling do-it-yourself digging projects are Sioux Valley Energy Cooperative Connections is published aware of “Call Before You Dig” services, the majority don’t take advantage of monthly by Sioux Valley Southwestern Electric Cooperative, Inc., PO Box 216, Junction Hwy 34 & 77, Colman, SD 57017, the service. A national survey showed that only 50 percent of homeowners for its members. Customers subscribe to the publication as called to have their lines marked before starting digging projects, according to part of their electric cooperative membership. The purpose the Common Ground Alliance (CGA), a federally mandated group of under­ of Sioux Valley Energy Cooperative Connections is to provide reliable, helpful information to Sioux Valley Energy ground utility and damage prevention industry professionals. CGA data also customers on matters pertaining to electric cooperatives and shows that an underground utility line is damaged every six minutes in the better living. U.S. because someone decided to dig without first dialing 811. Subscription information: Electric cooperative members Even simple tasks like installing a new mailbox post can damage utility devote not more than 50 cents from their monthly electric lines, which can disrupt service to an entire neighborhood, harm diggers and payments for a subscription. Non-member subscriptions are potentially result in fines and repair costs. available for $12 annually. Periodicals Postage Paid at Colman, SD 57017 and at additional mailing offices. Never assume the location or depth of underground utility lines. There’s no need: the 811 service is free, prevents the inconvenience of having utilities POSTMASTER: Send address changes to: interrupted and can help you avoid serious injury. For more information about PO Box 216, Colman, SD 57017. How to contact us: local services, visit www.call811.com. Phone: 1-800-234-1960 e-mail: [email protected] Website: www.siouxvalleyenergy.com This institution is an equal opportunity provider and employer. If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http:// www.ascr.usda.gov/complaint_filing_cust.html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at [email protected]. Sioux Valley Energy’s headquarters, Colman, S.D. COOPERATIVE CONNECTIONS • November 2016 3 Safety Tips Reader Recipes Kidsʼ Corner Safety Poster Tricks, Treats and “Call before you dig.” Safety Make Halloween Crockpot a Scream! Creations It’s the time of year to stock up on sweet treats and fill the Crockpot Corn Butternut Squash and Apples yard and home with decorations as ghosts, goblins and caped crusaders plan their invasion of your neighborhood. Safe Elec­ 2 (16 oz.) bags frozen corn 2 T. sugar 2 small butternut squash, peeled and cut into 1/4 cup apple cider tricity urges everyone to make sure your costumed visitors are 8 oz. cream cheese, softened 1 tsp. salt 1-1/2-inch chunks (about 8 cups) 1/4 cup firmly packed brown sugar kept safe by following some basic electrical safety guidelines. 1/4 cup melted butter 1 tsp. pepper 2 apples, such as Braeburn or Gala, 1/4 cup (1/2 stick) butter, melted peeled, cored and cut into 1-inch chunks 1 T. pumpkin pie spice Safe Electricity suggests the following to avoid potential Combine all ingredients in crockpot. Cook on HIGH (about 4 cups) 1 tsp. salt safety hazards: setting for 2 hours or LOW for 4 hours. 1 large red onion, cut into 1-inch chunks 1 tsp. thyme leaves • Use only lights that have been safety tested and approved Beverley Allbee, Woonsocket 1/2 cup chicken broth 1/2 cup toasted flaked coconut by Underwriters Laboratory (UL). Look for the UL label on the box and on each string. Calico Beans Place squash, apples and onion in slow cooker. Mix remaining ingredients except • Make sure extension cords are in good condition.
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