2016 ANNUAL REPORT - Riverland Energy · 2016 ANNUAL REPORT March 2017 Since 1940 Riverland Energy Cooperative ANNUAL MEETING ... Greg Sacia David Paudler Mark Vinz, President

2016 ANNUAL REPORT

March 2017

Since 1940

Riverland Energy Cooperative

ANNUAL MEETINGSaturday, April 1, 2017

Bring this slip in for registration to be entered for a chance to win door prizes!

Pancake Breakfast 8 a.m. – Meeting 10:15 a.m.

The 2017 Annual Meeting of the members of Riverland Energy Cooperative will be held on Saturday, April 1, 2017, at the Arcadia High School in the City of Arcadia, Wisconsin. Breakfast will begin at 8 a.m. The business meeting will be called to order at 10:15 a.m.

Agenda1. Approval of the 2016 Annual Meeting minutes2. Reports of the officers and directors3. Election of three directors District #3 for a term of four years District #4 for a term of four years District #8 for a term of four years5. Any old or new business to be brought before the membership6. Adjourn

David L. Anderson, Secretary

Notice2017 Annual Membership Meeting of

Riverland Energy Cooperative on Saturday, April 1, 2017

PRIZES!Riverland Energy Cooperative will offer its members who attend the annual meeting a chance to win prizes:

ADULTS• Flat-Screen TV• $100 Walmart Gift Card• Thirty $50 Electric Bill

Credits• Tabletop Electric Grill

KIDS• Bikes: One boy and one girl

bike (14 & under)• iPad (grades 9–12)

THIS IS YOUR ANNUAL MEETING DOOR PRIZE DRAWING STUB

Cut out and bring with you to the annual meeting!

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Arcadia High School, Arcadia, WI

ANNUAL REPORT

8:00 • Pancake Breakfast/Registration

10:15 a.m.• Call to Order• Pledge of Allegiance• Invocation• Notice of Meeting• Due Proof of Mailing• Announcement of Quorum• Approval of 2016 Annual Meeting Minutes• Introduction of Guests• Manager’s Report• Financial Report• Election of Directors• New Business• Drawing for Scholarships• Drawing for Door Prizes• Adjourn

Wisconsin Energy Cooperative News16

Board of Directors

DISTRICT MAP

Updated 2012

Fran Fedie Dan Filla, Vice President

David Anderson, Secretary/Treasurer

Greg Sacia David Paudler Mark Vinz, President

District 6 District 7 District 8 District 9

Beth Ede David Ernst Bob Lunde

District 1 District 2 District 3 District 4 District 5

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On behalf of Riverland Energy Cooperati ve and its Board of Directors,

I’m pleased to present you with the 2016 annual report.

I would like to take this opportunity to extend a special invitati on to you to join us April 1 for your annual meeti ng at the Arcadia High School. We will have a pancake breakfast fol-lowed by the business meeti ng, which will include scholarship drawings, door prize drawings, and director electi on results.

2016 was a good year. As an electric cooperati ve, it’s about reliability, aff ordability, and being responsive to our members and communiti es. We take managing costs and making sound investments on our system to support the safe delivery of reliable and aff ordable power seriously. The board of directors and employees are acti vely engaged with many issues at the local, state, and federal level, representi ng the cooperati ve member’s best interest in maintaining reliable and aff ordable energy. We do what a cooperati ve is supposed to do and that is to put our member’s best interests fi rst.

Financial StrengthIn summary, your cooperati ve is in excellent fi nancial shape and is positi oned to stay that way for the near future. We were able to return almost $1 million in general capital credit reti rements in 2016 and were able to rebate over $1 million back to you through our power-cost-adjustment (PCA). When the co-op controls its cost greater than expected, it is returned to you as a PCA on your electric bill.

We were also able to keep our rates stable again in 2016 and I am happy to announce that there will not be a rate increase for 2017. We will be conducti ng a cost-of-service study and rate study in 2107 to determine if we will need a rate increase in 2018.

Reliability Riverland Energy is conti nually improving its distributi on sys-tem by aggressively maintaining right-of-way and other main-tenance programs. In 2016, we installed more underground cable than any other year. We also replaced or installed 14.7 miles of three-phase lines and 32.1 miles of single-phase lines. Line crews also perform plenty of regular maintenance to safe-guard deliveries on our electric system. Last year, the crew and contractors trimmed trees along 370 miles of line and inspect-ed and maintained 1,683 cabinets and transformers. These maintenance projects help keep the system updated and helps to keep outages at a minimum. While typically we see a low outage ti me for our cooperati ve, this year we were higher than average due to the storms and fl ooding we had this summer.

Solar Riverland Energy, along with Dairyland Power Cooperati ve, constructed a solar garden at the headquarters building in Ar-cadia. The project was completed in December and energized in January of 2017. It was a long planning process and aft er researching cost and rates for the project, we felt it would best serve the membership to not sell off porti ons of the project as originally planned, but to keep it for all the members to be a part of. By working with Dairyland Power Cooperati ve as part of this project, we were able to get a Purchase Power Agree-ment (PPA) that we can use as a hedge against future whole-sale power costs. We want to share the benefi ts with all of the members of Riverland Energy Cooperati ve.

RCIRiverland Communicati ons, Inc., a subsidiary of Riverland Energy since 1994, was sold at the end of 2016. It was the DIRECTV franchise, WILDBLUE/Exede, Mainstreet Messen-ger, and broadband provider. We were unable to keep the required numbers of subscribers to make the business viable and we didn’t have the revenue to upgrade the broadband to today’s speeds. We sold the WILDBLUE/Exede and Mainstreet Messenger subscripti ons to Clark Electric Cooperati ve and the broadband porti on of the business to HBC out of Wino-na. While it was sad to let it go, it was a necessary business decision.

In closing, we will conti nue to keep a close eye on matt ers that aff ect you as a member of Riverland Energy Cooperati ve. I hope you can join us at the annual meeti ng on April 1 to learn more about what is happening at your cooperati ve. Thank you for the interest you have shown in your co-op and the confi -dence you place in us.

General Manager’s MessageJerry Sorenson

annual report inside pages.indd 1 3/11/17 7:49 PM

Wisconsin Energy Cooperative News16b

Self-improvement is universal to the human experience. We continuously seek ways to grow and improve. Our libraries and book stores are full of literature to refer to. We visit our local places of faith to hear how to strength-

en our beliefs. We watch the news for information that will help us make decisions about matters such as the stock mar-ket, the weather, and basically just to know what is happening in the world that may affect our future decisions. Each year, we pursue methods to do a little better than the year before. We try to stretch our minds, and find ways to educate and enlighten ourselves. As you ponder the year ahead, please consider the memberships that you already have, and how those memberships would be more beneficial to you if you utilized them more often.

Whether it be a membership to a fitness club or to some-thing like the Food Co-op, we all seem to know that the more involvement and engagement we have with the memberships we currently hold, the more benefits they will provide. Have you thought about your membership with Riverland Energy Cooperative? Here are some simple ways to help you become more involved:

• When you are mailed a ballot to select someone in your area as a District Committee Representative, be sure to vote and return the ballot.

• If you are chosen to be a representative, please be sure to attend the District Committee Representative meet-ing that you have been nominated for.

• Read The Outlet Newsletter which is included in your bill each month.

• Be sure to check out the website, which provides mem-bers with valuable information about the cooperative at www.riverlandenergy.com.

• Like Riverland Energy Cooperative on Facebook, face-book.com/RiverlandEnergyCoopertive.

• Read the WECA magazine mailed to your home, which each member receives a subscription to.

• Attend the Annual Meeting (each spring), as well as Member Appreciation Day (each year in October).

• Vote for the board of directors when it is your district’s time to vote.

• When you have a question or concern, please call the Riverland office or contact your director so that we may answer your question and attend to any issues at hand.

I urge you to take action and get involved with Riverland Energy. The cooperative gains strength and value when it has members who are engaged and eager to work together. I look forward to seeing you at the annual meeting on April 1. Please join us for breakfast—it is one of the perks of getting engaged with your membership!

The President’s MessageMark Vinz

FOCUSED ON YOUR STREET.NOT WALL STREET.

Riverland Eenergy Cooperative is owned by our members, not shareholders. So we don’t just answer to you – we have answers for you.


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Consolidated statement of revenue

2015 2016

OPERATING REVENUES: $34,890,304 $35,213,373

OPERATING EXPENSES:Cost of Providing Services $22,027,334 $22,238,012Distribution - Operations 1,657,476 1,948,034Distribution - Maintenance 2,179,085 2,357,518Consumer Accounts 419,605 395,649Consumer Services & Infomation 700,598 764,657Administrative & General 1,588,022 1,538,801Depreciation 2,770,003 2,823,010Taxes 398,234 403,849Other Deductions 9,210 8,075

Total $31,749,566 $32,477,606

OPERATING MARGINS BEFORE FIXED CHARGES: $3,140,738 $2,735,768FIXED CHARGES:

Interest on Long-term Liabilities $1,749,473 $1,791,777Other Interest $41,706 $60,072

Total $1,791,178 $1,851,848

OPERATING MARGINS AFTER FIXED CHARGES: $1,349,559 $883,920

G&T AND OTHER CAPITAL CREDITS: $1,338,849 $1,136,984

NET OPERATING MARGINS $2,688,409 $2,020,903

NON-OPERATING MARGINSInterest Income $43,054 $42,540Other Nonoperating Margins $52,199 $45,950

Total $95,252 $88,490

Margins before income taxes $2,783,661 $2,109,393Income taxes (61,000) (3,000)

NET MARGINS FOR PERIOD $2,844,661 $2,112,393

PATRONAGE CAPITAL BEGINNING OF PERIOD $41,401,408 $43,067,562$44,246,069 $45,179,955

RETIREMENT OF CAPITAL CREDITS ($1,178,507) ($1,267,582)PATRONAGE CAPITAL END OF PERIOD $43,067,562 $43,912,372

Consolidated Statement of Revenue

Patronage Capitaland

As of December 31


Wisconsin Energy Cooperative News16d

2015 2016ASSETS:UTILITY PLANT, at cost

Electric Plant in Service $98,074,993 $103,159,684Construction Work in Progress (467) 53,461Total Utility Plant $98,074,526 $103,213,145Less: Accumulated Depreciation (33,159,902) (35,433,084)

NET UTILITY PLANT $64,914,624 $67,780,062

INVESTMENTS, at costInvestments in Associated Org. $17,212,971 $17,852,695Investments in Economic Dev. 136,685 219,009 Other Investments 4,185 2,464

Total $17,353,841 $18,074,168

CURRENT ASSETSCash and Cash Equivalents $922,937 $1,048,485Notes Receivable - net 38,870 (130)Accounts Receivable - net 3,296,027 3,407,994Materials and Supplies 635,257 594,181Other Current Assets 116,264 89,169

Total $5,009,355 $5,139,699

DEFERRED DEBITS $1,980,968 $1,705,272

TOTAL ASSETS $89,258,789 $92,699,201

EQUITIES AND LIABILITIES:EQUITIES

Patronage Capital $33,687,165 $35,180,121Operating Margins - Current year 2,750,029 2,025,219Non-Operating Margins 94,632 87,174Other Margins and Equities 6,535,735 6,619,859

Total $43,067,561 $43,912,372

LONG-TERM DEBT $39,906,788 $44,373,851

CURRENT LIABILITIESNotes Payable $2,385,000.00 $200,000.00Accounts Payable 2,186,487 2,358,458Consumer Deposits 262,879 288,556Other Accrued Liabilities 940,689 1,024,200

Total $5,775,055 $3,871,215

DEFERRED CREDITS $509,385 $541,763

TOTAL EQUITIES AND LIABILITIES $89,258,789 $92,699,201

Balance SheetAs of December 31


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2006 2015 2016Total Services in Place 16,508 17,604 17,817 Miles of Line - Overhead 2,083 2,033 2,025 Miles of Line - Underground 1,100 1,287 1,337 Kilowatt-hours Sold 253,074,245 267,338,400 271,703,772 Kilowatt-hours Purchased 266,748,408 280,491,013 284,509,940 System Losses 5.40% 4.92% 4.71%Peak Kilowatt Demand 62,362 63,529 67,925 Ave. Monthly kWh per Customer 1,133 1,095 1,100 Revenue per kWh Sold 9.8 12.8 12.6Ave. Monthly Bill per Customer $118.99 149.12$ 149.30$ Cost per Kilowatt Purchased 5.9¢ 7.7¢ 7.68¢Full-time Employees 46 47 49Total Utility Plant $68,935,487 $96,992,398 $102,111,773Plant Investment per Service $4,175.88 $5,509.68 $5,731.14Total Long-Term Debt $30,788,034.00 $39,836,826.11 $43,901,003.86Debt per Service $1,865.04 $2,262.94 $2,464.00Services per Line Mile 5.19 5.30 5.37 KWh Sales per Line Mile 79,508 80,524 80,816.11

Key Operating Indicators


Wisconsin Energy Cooperative News16f

Greg Sacia, Dairyland DirectorDairyland Power Director Report

Dairyland maintains stable rates for 2017In recogniti on of its 75th anniversary, Dairyland Power Coopera-ti ve honored its legacy and the strong foundati on built by past cooperati ve leaders during 2016. At the same ti me, Dairyland has been executi ng business plans that align with the strategic guidance of the board and member cooperati ves. As your representati ve on the Dairyland Board of Directors, I am pleased to report that Dairyland’s rates will remain stable for 2017. I assure you that Dairyland staff is dedicated to providing a safe, reliable, and sustainable supply of electricity that remains aff ordable for members of Riverland Energy Cooperati ve. Dairyland is implementi ng business plans in all areas of operati ons to achieve the cooperati ve’s top strategic prioriti es.

Cooperati ve Purpose: Exceeding members’ expectati ons is Dairyland’s vision. Dairyland staff are committ ed to living the seven cooperati ve principles and leveraging the cooperati ve advantage. They are focused on improving communiti es and the quality of life in our region.

Employee Development: Dairyland is focusing on att racti ng, developing, and retaining talented leaders who are focused on serving co-op members. Maintaining and improving perfor-mance depends on a skilled and moti vated work force.

Resource Diversifi cati on: Diversifying the energy resource mix and expanding the use of renewable energy are strategic prioriti es. Dairyland staff have developed a long-term “preferred plan” for generati on resources that diversifi es intenti onally and thoughtf ully by using the best economic decisions for a sustain-able resource mix. In 2016, Dairyland announced agreements for 15 new solar installati ons with total solar generati on of 20 MW. As a cooperati ve initi ati ve, the solar faciliti es are being built in the service areas of Dairyland’s member cooperati ves. The advan-tages of multi ple projects in separate locati ons include: diverse weather patt erns, distributed grid infrastructure impacts, and locally based renewable energy. Together, the solar faciliti es will be able to produce enough renewable energy to power over 3,000 homes. The solar installati ons will range between .5 MW to 2.5 MW in scale.

They will be tracking systems which follow the path of the sun to increase energy producti on. All are expected to be operati onal by summer 2017. Although these projects consti tute Dairyland’s largest solar investments to date, Dairyland also purchases energy from other major solar installati ons (Westby, Wis., Oronoco, Minn., and Galena, Ill.). Dairyland’s Solar for Schools renewable energy and educati on initi ati ve is establishing solar generati on at three high schools and one college campus in its western Wisconsin service territory. In additi on, there are over 900 consumer-owned distributed generati on solar installati ons in Dairyland’s service area. Dairyland’s leadership role with solar energy supports is part of its strategy to diversify generati on resources. Eff orts conti nue to further diversify resources without stranding the assets and investments of members. In additi on to the solar projects, a power purchase agreement with EDP Renewables for the output of the Quilt Block 98 MW wind power project in southwest Wisconsin was announced at Dairyland’s 75th Annual Meeti ng in June. Dairy-land’s preferred plan is also designed to provide members value in terms of costs, which can be a challenge. A number of other opti ons are being evaluated, including natural gas generati on, additi onal wind, and other renewable resources. Dairyland works with its member cooperati ves on policies that help the development of consumer-owned renewable projects including small-scale wind turbines and photovoltaic systems (solar). Dairyland is also a leader in the Nati onal Renewables Cooperati ve Organizati on, which is working to develop renewable resources for all electric cooperati ves across the nati on.

Competi ti ve Service: Ensuring rates and services are competi -ti ve is criti cal to the economic well-being of the region as well as the long-term viability of Dairyland and our cooperati ve mem-bers. Stable rates for 2017 refl ect Dairyland’s focus on effi ciency improvements and wise management of controllable costs and risk. Dairyland is also investi ng in prudent transmission opportu-niti es that will improve reliability and add value for members. Local and regional transmission improvements/pro-jects, purchased power and transmission costs all have sig-nifi cant impacts on the bott om line. However, fuel to operate

While celebrati ng 75 years of serving cooperati ves in the region, Dairyland

Power Cooperati ve is focused on “Living the Cooperati ve Advantage.”


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its generati ng faciliti es conti nues to be Dairyland’s largest annual expense, with barge and rail transportati on of coal consti tuti ng a signifi cant porti on of that cost. Dairyland’s plants used about 2.2 million tons of coal in 2016, including its 30 percent share of the Weston 4 power plant. (This is the same amount used in 2015.) Net margins in 2016 were $23.1 million, compared to 2015 margins of $26.7 million. Dairyland’s total net generati on and pur-chased power was fairly stable at 5.7 billion kilowatt -hours (kWh), compared to 5.9 billion kWh in 2015. A mild winter and decreased energy use by some commercial customers contributed to slightly lower energy loads. Class A member loads were also fairly stable with a slight increase to 4.8 billion kWh from 4.7 billion kWh. Total operati ng rev-enues for 2016 decreased to $414.8 million, as compared to $418.3 million in 2015.

Financial Strength: Maintaining fi nancial strength and competi ti ve access to capital are criti cal to delivering on Dairyland’s Strategic Plans. However, building Dairyland’s fi nancial strength must be bal-anced with maintaining competi ti ve rates and service for members. To ensure long-term fi nancial strength, the Dairyland board has implemented a Strategic Financial Plan to maintain “A” rati ngs from Moody’s and Standard & Poors credit rati ng agencies. Based on the plan, Dairyland has been taking steps to increase mar-gins and has developed access to market-based fi nancing through the adopti on of a bond indenture to provide additi onal funding fl ex-ibility and availability if the federal RUS (Rural Uti liti es Service) is not able to meet future cooperati ve fi nancing needs. Dairyland also im-plemented a syndicated line of credit which provides cost-eff ecti ve short-term fi nancing. This access to capital is criti cal for Dairyland’s ability to provide members’ service today and conti nue to upgrade the system in the future.

Growth: Opportuniti es to improve effi ciencies and provide competi -ti ve costs and service can be created through growth of the system.

Dairyland is pursuing a “smart growth” strategy to grow and add businesses and jobs that benefi t the enti re system. Dairy-land is also partnering with others to strengthen the transmis-sion infrastructure in our region.

Safety Culture: The safety of employees, members, and the general public remains a foundati onal value. Dairyland em-ployees conti nue to educate, promote, and maintain the safety focus as they strive for an operati onal goal of “zero incidents.” These eff orts are showing improvements in safety metrics. Operati onal Excellence: Dairyland strives for high availability and reliable performance of its power plants and transmission system, as well as the overall performance of the organizati on. The expectati on is that Dairyland’s operati onal performance will be 100 percent compliant and in the top ti er for the industry. The Genoa Stati on #3 (G-3) and John P. Madgett (JPM) coal-fi red generati ng stati ons once again achieved “World Class Status” for their minimal forced outage rates due to boiler tube failures (BTFs) in 2016. As Dairyland tracks operati onal performance at its plants, lowering forced outage rates is a key objecti ve. Safety is also enhanced, as a reducti on in forced outage rates minimizes potenti al hazards that can be caused by BTFs. A scheduled major turbine overhaul and mainte-nance outage was completed at G-3 in January 2017. These signifi cant projects are contracted every eight years to ensure operati onal effi ciency and reliability. Dairyland is in the midst of rebuilding a vintage transmission line that extends 71 miles from Genoa through La Crosse to Alma, Wis. Known as the “Q-1” transmission line, this line is the primary provider of electricity for the City of La Crosse and the surrounding areas. It is in criti cal need of re-building from 65 years of use and exposure to the elements to

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Wisconsin Energy Cooperative News16h

District Committee Meeting MinutesSaturday, March 4, 2016

The District Committee Conference was held at the Arcadia High School in Arcadia, Wisconsin, on Saturday, March 4, 2017. President Mark Vinz, who served as chairperson, called the meeting to order at 10:05 a.m. President Vinz appointed David Anderson as recording secretary.

President Vinz introduced the Riverland Energy Cooperative Board of Directors and General Manager Jerry Sorenson. Manager Sorenson introduced Riverland Energy Cooperative’s staff, reviewed the agenda, and explained the responsibilities of the District Committee members.

Sorenson provided a manager’s report that included that there would not be a rate increase this year. The report also re-viewed several state and national political issues and explained the potential impact on our cooperative, the recent sale of RCI, solar project update, and the Nuclear Waste Policy Act of 1982 regarding fuel storage and the related cost impact on Riverland Energy Cooperative. Several questions were asked by committee members and discussed.

President Vinz covered the annual meeting rules used to govern the conduct of the annual meeting. A motion was made with a second to approve the rules as presented, motion carried.

Tim Holtan gave the operations report stating Riverland Energy Cooperative added 234 new services in 2016 and continued system improvements with line rebuilds and underground cable replacement. Other maintenance projects included tree trimming, right-of-way spraying, pole testing, underground cabinet inspections. Tim also pointed out the advantages of some of the latest technology that crews have been utilizing and informed the committee of a new metering system the cooperative is testing. Tim also showed pictures of this past year’s storm damage and destruction to power poles and lines. Several questions were discussed.

Aaron Torud provided a member services update, recent re-bate changes, LED lighting showing examples of replacement and the payback. Aaron also pointed out the rapid progress in technology including battery storage development.

Kristina Marsolek presented the financial report including rev-enues versus cost of power, operating costs, revenue, average residential use, long-term debt & equity, equity ratio, patron-age capital returned, total services & services per mile, outage time per member and line loss.

Manager Sorenson led the COPA (Cooperative Owners for Political Action) annual meeting. Highlights included the num-ber of members involved and how a member can make their contribution.

District Committee members from districts 3,4, and 8 were dismissed and went into caucus for director candidate nominations.

Other committee members dismissed for lunch at 11:40 a.m.

At 12:40 p.m. the meeting reconvened.

Manager Sorenson announced the candidates nominated by district. District 3 – David Ernst, Bernard Pronschinske, and John Stettler; District 4 – Bob Lunde; and District 8 – Dave Paudler.

Manager Sorenson extended a thank you to Karen Skroch for the lunch, reminded all attendees of the per diem and mileage reports, and thanked all for coming.

With no further business to discuss President Vinz adjourned the meeting.

Meeting adjourned at 12:41 p.m.

Respectfully submitted David L. Anderson, Recording Secretary


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Director Candidates

David G. Ernst, IncumbentFountain City

Occupati on: David is a former dairy farmer who sti ll owns his family farm. The ti llable acreage is currently rent-ed to a local farmer. David also works part-ti me for a neighboring dairy farmer. David and his wife, Donna, are currently the owner/operator of Cross Ridge Retreat, a short-term

vacati on rental. David’s occupati ons off er fl exibility needed for family commitments.

Family: David and his wife, Donna, have two children: Kyler Rose (8th grade) and Chance (6th grade).

Community acti viti es: David served on the Buff alo County Board of Supervisors representi ng district 14 (Town of Cross and Town of Milton) for 12 years. During his tenure, he served on the Finance, Human Resources, Law Enforcement and Health and Human Services committ ees. His peers elected him as county vice chairman for six of those years. David is current-ly serving as treasurer on the St. Michael’s Lutheran Church Council. David is also very involved in his children’s school and sports acti viti es, and he volunteers whenever possible.

Special hobbies and interests: David and his family enjoy trav-eling and exploring new areas. When ti me allows, David enjoys golfi ng, downhill skiing, snowmobiling, and hiking. David also enjoys reading, especially World War II history.

Comments: Being elected to the Riverland board four years ago has been a very rewarding experience. Riverland Energy and the electric cooperati ve industry place a strong emphasis on conti nuing educati on in order to keep up with changing legislati on, energy sources, etc. I have achieved my Creden-ti aled Cooperati ve Director Certi fi cate. Classes ranged from Financial Decision Making to Board Roles and Relati onships. I have also achieved my Board Leadership Certi fi cate. Those 10 classes ranged from Crucial Conversati ons in the Boardroom to Understanding the New World of Power Supply.

A highlight in my serving has been going to Madison and Washington, D.C., to represent all of you as member–owners in meeti ng with local and federal elected offi cials to discuss important issues for the cooperati ve and the future of energy.

I was elected by my fellow Riverland board members to

DISTRICT 3

Bernard PronschinskeArcadia

Occupation: Bernie and his wife op-erated a successful 50 cow/200-acre dairy farm for 32 years. Since selling the dairy herd, he has rented out the cropland. He has been employed by Tractor Central (John Deere) for the past six years, transferring and deliv-ering parts and equipment as well as

warehousing. He works out of the Arcadia location.

Family: Bernie and his wife, Lynn, have two adult children, Marci and Troy, and two grandsons, Wes and Colin. Lynn is a retired manager for Kwik Trip in Whitehall.

Community activities: Bernie is an usher and lay distributor at Holy Family Parish, and a 4th Degree member of Msgr. Andy Assembly, and Knights of Columbus.

Special hobbies and interests: Bernie enjoys spending time with family and friends. He still does some hobby farming and ATV riding.

Comments: While I was farming, I served as director on Buf-falo Electric and then Riverland Energy Cooperative boards. I also served as a statewide director on the Wisconsin Feder-ation of Cooperatives (now Cooperative Network) board for 11 years. I served several terms on the Arcadia Cooperative Association Board, which is now part of Allied Cooperative, as well as serving as a delegate with Foremost Farms.

be an alternate representati ve on the Dairyland Power Board of Directors.

With your support, I look forward to conti nuing to serve as your representati ve on the Riverland Energy Cooperati ve Board of Directors. I will be a voice for you in making import-ant decisions aff ecti ng your cooperati ve. In order for our rural communiti es to be successful, reliable energy at an aff ordable rate is essenti al. I will also try to ensure all Riverland employ-ees have the resources they need to provide all of you the electric services you as member owners deserve.


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Director Candidates

Robert Lunde, IncumbentOsseo

District 4

Occupation: Currently a retired dairy farmer and business manager.

Family: Robert and his wife, Mar-garet, have three sons and seven grandchildren.

Community activities : Robert is a member of Kings Valley Lutheran Church; a member of Osseo Rod and Gun Club; supervisor for the Town of Sumner; and a member of the Trempealeau County Board of Adjustments and Appeals.

Special hobbies and interests: Hunting and fishing.

Comments: I have been a member of Dairy Farm Supply and other co-ops for several years. I am a past recipient of the Wis-consin Co-op Builder Award, Ally of Cooperative Electrification Award, and past Trempealeau Electric Cooperative director, as well as past president of Dairyland Power Cooperative. I have served on the Riverland Energy board for the past four years and earned my Credentialed Cooperative Director status and Board Leadership Certificate. I am running for the board to better serve you, the member-owner.

Occupation: John grew up on a dairy farm near Fountain City and returned to the family farm with his family in 1977 from Racine, where he worked in Industrial Engineer-ing at the Case tractor plant. From Fountain City, his off-farm work

included manufacturing in Winona, Minn., and later teaching at Red Wing Technical College. He is currently retired and still living on the family farm, now owned and operated by his daughter and son-in-law.

Family: John and his wife, Mary, have three children: Karen, Heidi, and Steve.

John StettlerFountain City

District 3, Continued

Community activities: John has served on various church boards and committees and has served on the Buffalo County 4-H Club Foundation Board.

Comments: I grew up on a dairy farm, and I understand power outages during milking. Electric cooperatives paved the way for rural America. Throughout my professional and communi-ty life I have understood and valued the cooperative form of organization. I have helped organize and I have served with several cooperatives in the past. It is my nature to learn and understand issues. I also understand the importance of various views to seek common ground. The end goal is to uphold the values and principles of our cooperative in the best interest of all of its members. I will pledge to do that.


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Director Candidates

Occupati on: Reti red from GCS Soft ware, Inc.

Family: David and his wife, Eileen, have two children: Heather, BA from UW-Platt eville, MA from Penn State University, Doctorate in Musicology

from Florida State University, teaching in Florida at Tallahassee Community College; and Jonathan, BA from UW-La Crosse, working at GCS Soft ware as technical support specialist.

Community acti viti es: David has been a trustee on the Hol-men Area Foundati on for nine years and served as president for two terms. He has been a Holmen Community Center board member for 10 years; he served 18 years on the Town of Onalaska Town Board and four years as town chairman. He has served eight years as a director of Riverland Energy Cooperati ve, earning Credenti aled Cooperati ve Director (CCD) and Board Leadership Certi fi cate (BLC). David has served three years on Wisconsin Electric Cooperati ve Associati on (WECA)

David Paudler, IncumbentOnalaska

District 8

board and has started his second year as board chair. David att ends Bethany Church.

Special hobbies and interests: Scuba diving, ATV trail riding, kayaking, boati ng, vegetable gardening, and woodworking.

Comments: I am very interested in the energy situati on of our country and would like to conti nue to be involved with chang-ing our country’s policies and laws to make energy aff ordable to our cooperati ve owners and our country. I have had the honor from our REC board to go to Washington, D.C., for the last seven years to our legislati ve conference sponsored by the Nati onal Rural Electric Cooperati ve Associati on (NRECA) to help educate our representati ves on how new laws or regula-ti ons aff ect our member–owners. I have worked with many of our state and federal representati ves and many departments of the government on projects while on the Town Board of Onalaska. I feel I can use these connecti ons while working on projects and legislati on by being re-elected to the Board of Directors of Riverland Energy Cooperati ve.

Voti ng Authorizati on Necessary for Organizati ons

Authorizati on must be given for voti ng at the Annual Meeti ng for non-individual members of the co-operati ve such as a church, school, cooperati ve, government body and corporati on. All of these members are enti tled to representati on and one vote, but the proper procedure must be followed to exercise this right. Each member should see that a representati ve is designated in writi ng.

An authorizati on form will be enclosed with the mail-in ballots. If your organizati on is to be repre-sented at the Annual Meeti ng, the form must be completed and returned with your ballot or be brought by the representati ve to the Annual Meeti ng.


Wisconsin Energy Cooperative News16l

The 2016 annual membership meeting of Riverland Energy Cooperative was held on Saturday, April 16, at the Arcadia High School in Arcadia, Wisconsin.

Prior to the meeting, a pancake breakfast was served to approximately 650 people by Pogy’s Catering.

President Mark Vinz called the meeting to order at 10:15 a.m. and led the membership in the Pledge of Allegiance. He then introduced Pastor Mary Ann Bowman for the invocation. Vinz then introduced the current directors, welcomed guests, and recognized past directors and employees.

Attorney Niles Berman was introduced to preside over the meeting as acting chairman. He proceeded to cover the annual meeting rules and voting procedures adopted by the District Committee Conference, emphasized the use of voting cards, and stated we will follow Roberts Rules, Newly Revised, latest edition (11th) to cover other procedural questions, as provided in the Bylaws.

David Anderson, secretary, was introduced to read the Notice of Meeting and Due Proof of Mailing. He then announced a quorum of 305 registered members in attendance at the start of the meeting.

Mr. Berman asked for any corrections to the minutes of the 2015 annual meeting, which were printed in the annual report. A motion was made and seconded to dispense with the reading of the minutes, and to approve them as printed. Motion carried.

Mr. Berman described the four-year director terms that resulted in no election at the 2016 meeting.

Mr. Berman introduced the proposed bylaw change that was recommended for approval. He explained the proposed amendment to the Bylaws in Article 1, Section 10 regarding dispute resolution. The membership did not present questions or comments to the bylaw amendment, so Mr. Berman moved forward, calling for a motion to approve the bylaw amendment to Article 1, Section 10 as printed in the annual report. A motion was made, seconded and carried unanimously to approve the amendment as proposed, and the bylaw amendment was adopted.

Manager Jerald Sorenson was introduced and started with a welcome to members and a thank you to employees. It was announced that “Ask Willie” forms should be handed to any employee and would be answered in cooperative publications. He discussed community involvement by the cooperative and the scholarship and youth ambassador programs. Manager

Sorenson also stated that for the third year in a row, the co-op would not have a rate increase.

Manager Sorenson announced the cooperative awarded its third Community Cares grant to seven recipients. Recipients included the Strum First Responders, Friends of the Whitehall Library, Dover-Gilmanton First Responders, Gateway Area Council of the Boy Scouts of America, St. John Lutheran/St. Lawrence Catholic Churches, Onalaska United Methodist Church and the Arcadia Lioness Club.

Manager Sorenson continued with a history and current activity of the cooperative and rural electric movement. An update on technology included solar, iPads for field crews, outage texting services and online payments.

Directors Mark Vinz and Greg Sacia were recognized for achieving Gold Status in continuing education credits with NRECA and Riverland Energy Cooperative. Dana Kelroy, editor of the WEC News, presented the honorable mention award for Energy Education to Cooperative Communication Specialist Beth Alesch.

President Vinz thanked all who helped with the meeting and then called upon Mr. Berman to close the business meeting. Mr. Berman noted that there was no unfinished business carried over from the 2015 meeting, and he then asked if there was any new business. There being none, a motion was made, seconded and carried to adjourn the business session at 10:52 a.m.

The meeting was turned back over to Jerry Sorenson who explained how scholarship dollars are made available through the Federated Youth Foundation for educational purposes. He called upon Aaron Torud and Tim Holtan to help conduct the random drawings for the $1,000 scholarships in each of 14 area schools and one at-large scholarship. Any high school student in attendance could register for a last chance drawing of an iPad mini, which was won by Ty Parker.

Kids’ door prizes were awarded as follows: Emily Waller (girl’s bike), and Peyton Wolfe (boy’s bike). Ken Sonsalla won the Kindle Fire, Tiphany Kokott won the grill, and Jerald Dekan won the flat-screen TV. Thirty names were drawn for the $35 electric bill credits, with members indicating their presence in order to claim their prize. Additional prizes were also awarded by Gundersen Tri-County Hospital for those who signed up at their health booth.

Respectfully submitted,

David L. Anderson, Secretary

2016 Annual Meeting MinutesSaturday, April 16, 2016


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ensure reliable power delivery. Wood poles are replaced by steel poles, which are much less prone to deteriorati on. Dairyland plans to fi nish the fi nal segment of the line in 2017. In fall 2015, Dairyland completed the Holmen to Marshland segment of that line (that porti on now known as Q-28). To protect the environment, Dairyland contracted for a heavy-lift helicopter to set poles for a porti on of this segment in the Van Loon Wildlife Area (Black River Bott oms). The fi rst seg-ment was 21 miles, completed in 2012 from Genoa to La Crosse. Partnerships in transmission infrastructure projects support our strategies for Operati onal Excellence as well as Growth. Dairyland is an 11 percent owner of the CapX2020 Hampton-Rochester-La Crosse 345 kV line, which was completed in 2016. A segment of the 345 kV line from North Rochester to Briggs Road (La Crosse area) was completed and put into service in the fall of 2015. The line was built to serve local load and is delivering expected results by reducing congesti on, enhancing reliability, and providing access to economic energy, including renewable resources. As part of the project, CapX2020 rebuilt approximately 24 miles (Alma south to Marshland) of Dairyland’s existi ng line as a double circuit 345/161 kV transmission line, saving Dairyland’s members millions of dollars. Dairyland is parti cipati ng in two other regional 345 kV transmission projects which are in various phases. Dairyland is a 5 percent parti cipant in a porti on of the Badger Coulee Project (La Crosse to north Madison). Constructi on is underway and the line is scheduled to be in service in 2018. Dairyland also is a 9 percent parti cipant in the Cardinal-Hickory Creek project (Madison to Dubuque), which is going through the approval pro-cess. A study area from Dubuque County, Iowa, to Dane County, Wisconsin, has been identi fi ed for the approximately 125-mile, 345-kilovolt line. Both projects have MISO MVP (multi -value pro-ject) status, which make them a good investment for Dairyland’s members. Every year, Dairyland also rebuilds, constructs, or upgrades approximately 50 miles of 69 kV transmission lines to improve service and reliability. Dairyland works closely with the local member cooperati ve, landowners, local offi cials, and state departments of natural resources to meet their expectati ons during the constructi on of these projects.

Plant Decommissioning: Projects are underway to successfully complete decommissioning of the La Crosse Boiling Water Reactor (LACBWR) and the Alma Stati on in a manner that ensures public safety and compliance with all regulatory requirements, while minimizing the cost impact on Dairyland’s members and reducing future liabiliti es. Dairyland has contracted with EnergySolu-ti ons, a nati onal radioacti ve waste services con-tractor for the fi nal decommissioning of LACBWR. Under the agreement, EnergySoluti ons temporarily holds the license and assumes responsibility for

the decommissioning of the LACBWR site. When completed, the license will return to Dairyland. LACBWR has not operated since 1987; however, the used fuel had remained on-site unti l it was transferred to the Independent Spent Fuel Storage Installati on (ISFSI) on the south end of the Genoa Site in 2012. The fuel is monitored around the clock at the ISFSI, in accordance with NRC regulati ons. In October 2016, Dairyland accepted a sett lement off er of $73.5 million from the U.S. Court of Federal Claims for damages related to the government’s breach of contract with LACBWR, Dairyland’s shutdown nuclear facility. The net proceeds of the sett lement are being returned to Dairyland’s member cooperati ves in February 2017. The Nuclear Waste Policy Act of 1982 gave the govern-ment responsibility for storage of the nati on’s spent nuclear fuel, with a deadline of Jan. 31, 1998, to begin accepti ng the fuel. The sett lement is the result of Dairyland’s second round of liti gati on with the U.S. government regarding LACBWR. It represents the 2007–2012 ti me frame for expenses related to the development of the Independent Spent Fuel Storage Installa-ti on (ISFSI) dry cask storage site and the transfer of fuel to casks. It also includes Dairyland’s ongoing costs related to spent fuel storage. You may recall Dairyland was successful in recovering $37.6 million in LACBWR costs that were previously incurred. One-half of that was returned to Dairyland’s member co-ops in-cluding Riverland Energy Cooperati ve in January 2013, while the rest is being returned to member co-ops via rate relief through 2021. Dairyland plans to fi le a third claim for breach of contract damages incurred since 2013. This claim will primarily be com-prised of costs related to the presence of the ISFSI at the Genoa Site.

I am pleased that Dairyland is positi oned fi nancially and opera-ti onally sound. I assure you that Dairyland conti nues to plan to meet our future energy needs.

DPC director report, conti nued from page 16g


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Youth Ambassadors 2017 Youth Ambassadors

Maya Smith

Juhl Kuhlemeier

Ryan Mikelson

Lacie Johnson

Curtis Weltzien

Nicole Sendelbach

Cassandra Berg

Sam Olson

Alexis Schank

Kollin Stirn

Kayla Kaczorowski

Bradley Schowalter

Wesley Branter

Benji Schaefer

Ben Behan

Sam Jansen

Kaitlyn Anderson

Makayla Saul

Jenny Montreuil

Sadie Wulff

Halle Taylor

Andrea Kubishak

Katherine Laehn

2016 Youth Ambassadors included: Front row l-r: Briar Putz, Jake LaDuke, Collin Weltzien. Middle row l-r: Jacob Schilling, Isaac Dunham, Connor Murphy, Hannah Schlesser, Jolene Servais, Emily Rybarczyk, Madison Tennant, Kenzi Wick, Darla Smith, Ellie Johnson, Keegan Craney, Morgan Anibas, Shelbi Noffke, Andrew Brevick, Jarett Pearson, Jonah Bacon. Back row l-r: Jacob Hong, Isaiah Loewenhagen, Tanner Engen, Bennett Moen, Kendra Myren, Ryan Ostertag, Greta Monson, Mitchell Hong. Missing from photo: Megan Wagner, Skylar Newman, Johanna Wulff, Hailey Bork, Tessa Brantner, Treyce Halvorsen.

Michael Sonsolla, Arcadia High School, was the youth ambassador selected to

attend the National Rural Electric Cooperative Association’s Youth Tour in Washington, DC.

The Youth Tour was open to all youth ambassadors who were part of the youth ambassador program for the previous year. They are selected through an essay contest.

2016 Youth Tour

The Distinguished Scholarship Award recipient was Jake La Duke of C-FC, who received a scholarship in the amount of $600. Skylar Newman (Gilmanton), Johanna Wulff (Gilmanton), and Hannah Schlesser (Arcadia) all received leadership awards.

Wisconsin Energy Cooperative News16n

Always Call Before You Dig.

One easy call gets your utility lines marked and helps protect you from injury and expense.

Safe Digging Is No Accident: Always Call 811 Before You Dig

Visit call811.com for more information.

Bill Mason, Project ManagerWilly Nicksic, LinemanJon Nygren, IT SpecialistBrett Palmer, LinemanDamian Pasch, LinemanSteve Paulson, LinemanAdam Pronschinske, LinemanTed Ravnum, Fleet & FacilitiesPete Reuter, MaterialsMark Schamaun, Line ForemanCindy Scharr, Consumer Accounts RepresentativeAdam Siebenaler, LinemanSharon Sluga, Operations Coordinator Jerald Sorenson, General ManagerRob Sosalla, Project ManagerTom Tidquist, Line ForemanAaron Torud, Manager of Member ServicesTyler Vitse, LinemanJoyce Woychik, Consumer Accounts Representative

2016 Retirees:Roger Schmidtke, Materials ManagerMike Hestekin, Line Foreman, ArcadiaLonnie Sass, Line Foreman, Alma

EmployeesJosh Abramczak, LinemanBeth Alesch, Marketing & CommunicationsTodd Anibas, LinemanPete Boos, LinemanMike Burkart, Load Management TechnicianJenny Curran, Load Management TechnicianNiki Dunn, Executive Assistant/HR SpecialistBrandon Foss, LinemanDoug Gerrits, Project ManagerBrian Glass, LinemanStella Harm, Member ServicesScott Hayes, Load Management TechnicianKevin Helgeson, Line ForemanTammy Hilmanowski, Operations/PayrollTim Holtan, Manager of OperationsTodd Hong, LinemanMorgan Kozey, Member ServicesDale Kennebeck, Operations/MappingDale Kircher, LinemanRoyce Kosik, LinemanMary Larson, Office Coordinator/Capital CreditsKristina Marsolek, Accounting SupervisorDillon Marten, LinemanBarb Mathson, Accountant/Bookkeeper


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2016 Scholarship Recipients

Alma High SchoolCole Engstrand, son of Andrew and Karen Engstrand

Arcadia High SchoolRob Hoesley, son of Bruce and Dana Hoesley

Blair-TaylorHigh SchoolIsaac Sexe, son of Keith and Jackie Sexe

C-FC High SchoolJordan Kaczorowski, son of Joseph Kaczorowski and Kalene Engel

Durand High SchoolJoselyn Hurlburt, daughter of William and Tatia Hurlburt

Eleva-Strum High SchoolJosie Olson, daughter of Ronald and Lori Olson

G-E-T High SchoolMorgan Peters, daughter of Alan and Maria Peters

Gilmanton High SchoolNicholas Urness, son of Tim and Ellen Urness

Holmen High SchoolMadelyn Ploessl, daughter of Barry and Lisa Poessl

Independence High SchoolBrennan Christianson, son of Pat and Nancy Christianson

Mondovi High SchoolGarrett Kees, son of Scott Kees and Lisa Russell

Onalaska High SchoolKonrad Ernst, son of Paul and Nancy Ernst

Osseo-Fairchild High SchoolFern Hall, daughter of Tiffany Hall

Whitehall High SchoolRobert Runkel, son of Joseph Runkel

At-Large – Onalaska Luther High SchoolElla Loersch, daughter of Mark and Lisa Loersch

Riverland Energy awards 15 high school students with $1,000 scholarships each year. The 2016 recipients listed below were selected in a random drawing at the annual meeti ng on April 16, 2016.

Co-op Owners for Politi cal Acti on (COPA) gives you, the member-owner, the opportunity to use your voice on behalf of your cooperati ve. State and federal govern-

ment offi cials make policy decisions that aff ect your local cooperati ve and your way of life. This program is an easy way for you to help determine who gets elected to make those decisions.

The Acti on Committ ee for Rural Electrifi cati on® (ACRE) is the politi cal acti on committ ee (PAC) of the nati on’s electric cooperati ves. Founded in 1966 by the approximately 1,000 cooperati ves of the Nati onal Rural Electric Cooperati ve Asso-ciati on (NRECA), it supports candidates for state and federal offi ce—those in offi ce now and running for offi ce—who will speak for and protect the interests of cooperati ves and their member-owners.

Maintaining a strong grassroots presence in the politi cal process is instrumental to the long-term success of the co-operati ve program and the communiti es they serve in these unpredictable ti mes.

To join our ACRE-COPA program, contact our offi ce or sign up at the annual meeti ng.

ACRE - Co-op Owners for Political Action


Wisconsin Energy Cooperative News16p

Community Cares Grant 2016 marked the third year the co-op was able to award grants to members and organizati ons in our community. Through Community Cares, members can choose to round up their monthly electric bills to the next dollar amount and donate the extra cents to assist non-profi t organizati ons throughout Riverland Energy’s service area. In 2016 the recipients included:

Friends of the Whitehall Public Library $300Arcadia Lioness Club $300Gateway Area Council – Boy Scouts of America $300Strum First Responders $300Onalaska United Methodist Church $300St. John’s Lutheran/St. Lawrence Catholic, Alma $300Dover-Gilmanton First Responders $300

To sign up for the program, visit our Community Cares page onour website at www.riverlandenergy.com.

Community Cares, members can choose to round up their


Kids, grab your art supplies and draw a poster that tells our readers how you play and work safely around electricity. The posters should display a clear, creative picture of this year's theme: "How do you stay safe at your home or farm when

around electricity?" No matter what you draw, have fun! Cash prizes will be awarded in each division.

DIVISIONS:Preschool to kindergartenFirst grade to second gradeThird grade to fourth grade Fifth grade to sixth grade

DEADLINE:Posters must be received at any of our offices no later than 4 p.m. on Wednesday, May 31, 2017.

RULES:• Posters must be on white, 8.5-by-11-inch paper.• Posters must depict the theme, “How do you stay safe at your home or farm

when around electricity?" • Print the child’s name, address, age, and parents' names on the back of the

posters.

PRIZES:One winner will be selected in each division and will be awarded $25.

WINNERS:Winning posters, along with the child’s photograph, will be featured in Riverland Energy’s center pages of the Wisconsin Energy Cooperative News magazine, as well on our Facebook page.

Entries can be dropped off at any of our offices, or e-mailed to [email protected].

2016 Poster Contest WinnersThe 2016 Electrical Safety Month contest was a coloring contest for preschool through sixth grade. Prizes of $25 each were awarded in each age category.

The winners include:

Grades 1–2Layna Wozney (Arcadia)Parents: Jon and Kara Wozney

Grades 5–6Gavin Bragger (Independence)Parents: Shannon and Johann Bragger

Preschool to K:Serene Mather (Holmen)Parents: Chad and Amy Mather

Electrical Safety Month Poster Contest

Grades 3–4 Sophia Paulson (Onalaska)Parents: Terry and Kolette Paulson

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Jerry Sorenson, General ManagerN28988 State Road 93, P.O. Box 277, Arcadia, WI 54612

608-323-3381 • 1-800-411-9115www.riverlandenergy.com

Wisconsin Energy Cooperative News18

Beth Alesch, Editor

District Offices1472 Hwy. 35 Onalaska, WI 54650 608-783-2238 • 1-800-411-9115

1225 S. Main St., P.O. Box 248Alma, WI 54610608-685-4440 • 1-800-685-4415

Outages & EmergenciesCall 1-800-927-6206 24 hours a day

Office HoursArcadia: 7:30 a.m.–4:00 p.m. Onalaska: 7:30 a.m.–4:00 p.m.Alma: 7:30 a.m.–4:00 p.m.

Officers of the Board of Directors:Mark Vinz, Onalaska, PresidentDan Filla, Arcadia, Vice-PresidentDavid Anderson, Trempealeau, Secretary/Treasurer

Riverland Energy Cooperative is the recipient of Federal financial assistance from the U.S. Department of Agriculture (USDA). The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political belief, reprisal, or be-cause all or part of an individual's income is derived from any public assistance program. (Not all prohib-ited bases apply to all programs.) Persons with disabilities who require alternative means for communica-tion of program information (Braille, large print, audiotape, etc.) should contact USDA¹s TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider, employer, and lender.

Statement of Nondiscrimination

Documents

2016 ANNUAL REPORT - Riverland Energy · 2016 ANNUAL REPORT March 2017 Since 1940 Riverland Energy Cooperative ANNUAL MEETING ... Greg Sacia David Paudler Mark Vinz, President