A BIMONTHLY PUBLICATION OF MIDLAND POWER COOPERATIVE WWW.MIDLANDPOWER.COOP |JULY/AUGUST 2020

PRSRT STDU.S. Postage

PAIDPermit No. 21 Iowa Falls, IA

50126

Inside this issue...Geothermal for a healthier home . . . . . . . . . . .2

Leadership Report . . . . . . . .3

Safety Tips . . . . . . . . . . . . .4

Marathon Electric Water Heaters . . . . . . . . . .4

Annual Meeting and Election Results

Midland Power Board President begins the co-op’s first Annual Meeting available by live stream.

We will be closed Monday, Sept. 7 in

observance of Labor Day. Phones answered 24/7.In June, many Midland Power members

were active in the life of their co-op by mailing in their ballot and/or viewing the annual meeting presentation on the Midland Power Facebook Page. We thank you for your continued involvement, even as we are socially/physically distant during the pandemic.

At the annual meeting on June 24, 2020 the following directors were elected to serve three-year terms on the board: incumbents Paul Heineman, District 1; Mike Coleman, District 3; and Jack Runge, District 4; plus Doug Robey of Ames was elected to serve District 2.

Members elected to serve as the 2021 Nominating Committee were

District 1: Rich Larson, Tanner Lawton and Richard Schneider. District 2: Christopher Paulson, Donald Uthe and Jamie Weydert. District 3: Brody Bertram, Charles Bormann and Allen Mains. District 4: Royle Duncan, Larry Engelson and Duane Kruckenberg.

At the board organizational meeting immediately following the annual meeting, the following directors were elected as officers:

President – Jack Runge; Vice President – Mike Coleman; Treasurer – Rick Thompson; Secretary – Randy Christensen; Assistant Secretary/Treasurer – Joel Skow.

Prize WinnersThe following are names of members

that were drawn from those that cast a ballot in the 2020 elections. They will receive the prize of a $50 bill credit on their next bill.

District 1: Larry Fatka, Paton; Kay Johnson, Woodward; Dan Pemble, Scranton.

District 2: Richard Lehms, Polk City; Robert Berggren, Le Grand; Paul Thede, Boone.

District 3: Carol Coleman Rev Trust, Humboldt; John Myers, Hardy; Tracy Burger, Gowrie.

District 4: Sara Kadolph, Hubbard; William Geil, Iowa Falls; Arvin Klemme, Hubbard.

If you would like to view the 2019 Annual Report document or the video from the meeting, both are available at www.MidlandPower.Coop.

Do you SmartHubTM?

Learn more about this easy way to monitor your

energy use, pay your electric bill, report power

outages, and more at www.MidlandPower.Coop!

Download the free app today!

Safe Digging is No Accident: Always Call 811 Before You DigVisit call811.com for more information.

The Energy InsiderPAGE 2 JULY/AUGUST 2020

By Roger Hammen Member Service Representative, Midland Power Cooperative

ASSETS 2019 2018UTILITY PLANT

Electric plant in service $ 125,762,701 $ 120,649,023Construction work in progress 8,989,410 6,454,524

134,752,111 127,103,547Less accumulated depreciation 44,814,540 41,650,488

89,937,571 85,453,059

OTHER NONCURRENT ASSETSInvestments in associated organizations 21,070,761 19,889,657Other equity investments 94,205 119,767Other investments 3,652,032 3,131,663

24,816,998 23,141,087

CURRENT ASSETSCash and cash equivalents 4,903,721 8,158,760Accounts receivable, less allowance of $151,326 and $141,867, respectively

5,446,500 5,256,818

Materials and supplies at average cost 1,213,906 1,385,720Current portion of other assets and investments 306,000 362,000Other current and accrued assets 302,398 218,584

12,172,525 15,381,882

DEFERRED DEBITS 918,010 927,451

TOTAL ASSETS $ 127,845,104 $ 124,903,479

MEMBERS’ EQUITY AND LIABILITIES 2019 2018MEMBERS’ EQUITY

Patronage capital $ 18,227,593 $ $ 15,162,633Other equities 44,918,847 43,661,609

63,146,440 58,824,242

LONG-TERM DEBT, less current portion 56,074,887 57,926,593

ACCRUED POST-RETIREMENT BENEFITS 450,025 482,567

CURRENT LIABILITIESCurrent portion of long-term debt 2,541,196 2,485,151Accounts payable 4,133,566 3,739,653Consumer deposits 216,556 190,448Accrued taxes 620,003 576,609Other current and accrued liabilities 417,068 391,347

7,928,389 7,383,208

DEFERRED CREDITS 245,363 286,869

TOTAL MEMBERS’ EQUITY AND LIABILITIES $ 127,845,104 $ 124,903,479

Balance Sheet

Over the years, building science professionals have looked to alternative building practices and better heating and cooling systems to produce a more energy efficient and healthier home. Typical gas heating systems can easily release contaminants into your home that can cause or add to any number of

health issues. Occupants with existing conditions such as allergies or asthma could be adding to their health issues by using gas appliances. Gas heating systems can introduce contaminated moisture in the home and can become a transfer system for unwanted particles such as molds and allergens. Carbon monoxide poisoning can always be a threat when burning gas as well.

For decades, geothermal heating and cooling systems have been a proven, clean, renewable source for heating, cooling, and domestic hot water. The ability of geothermal to utilize free, renewable energy from the earth is unsurpassed and offers our members a healthy, economical, and energy efficient alternative to conventional gas. Reduced, cost-effective rates through Midland Power Cooperative add to the benefits of owning a geothermal system. This, combined with available rebates and tax credits, helps offset the initial costs making the system a very attractive investment.

There is a growing interest in renewable energy sources, such as solar, to reduce or offset energy needs. While these alternative sources allow people to generate their own electricity, individual homes may not see a huge benefit to installing a solar system. Virtually all energy produced by solar comes in a timeframe where most consumers are unable to utilize it. Most residential energy consumption comes late in the day and into the evening when the array is producing little-to-no energy. It is important to understand that a solar system must be sized to specific, individual consumption needs. It is rarely beneficial to overproduce and likely will not offset energy usage equal to expectations.

A geothermal system can reduce energy consumption 24 hours per day, 7 days per week. It will do this rain or shine, day or night, 365 days per year. The ability of the system to convert the earth’s energy into usable heating and cooling comes with an efficiency rating of 300-400%. This is to say that for every penny spent to operate the system, it delivers 3-4 cents of energy in return. The system also can greatly reduce the cost of producing hot water for domestic use since much of your hot water is produced in the process. In most cases, geothermal has a much better return on investment than a solar system or most other renewable energy sources. Earth’s energy is constant. Other renewable production sources fall off when the sun doesn’t shine or the wind doesn’t blow.

Geothermal heating and cooling can offer a very cost effective, healthy alternative to a conventional gas system. Because you are utilizing the earth’s energy, there is far less need for reliance on fossil fuels which can ultimately enhance health and decrease carbon emissions. The ability to enhance your living space and increase comfort while decreasing contaminates is beneficial economically as well as ecologically. In today’s world, we are all striving to create a healthier, cleaner living space. Geothermal can offer you a more cost effective, reliable source of renewable energy that will perform now and into the future.

Your furnace might be burning money.

Compared to traditional heating and cooling systems, an efficient electric heat pump uses less energy – saving you money in the long run. Visit our website to see available equipment rebates and calculate how much you could save by going electric.

515-386-2385midlandpower.coop

DANGERHIGH

VOLTAGE

DANGERHIGHVOLTAGE

Did you know?Your co-op serves an average of 3.1 consumers per mile of distribution power lines, while Iowa’s investor-owned utilities (IOUs) average 27.5 consumers per mile. This is trumped by municipalities in Iowa; they serve 55.9 consumers per mile.

3 consumers/mile with residential

access charges of $34.25 result in $102.75/mile

Utilities averaging 28 consumers/mile with

residential service fees of $9.25 result in $259/mile

Utilities averaging 56 consumers/mile with

residential service fees of $12.95 result in $725.20/mile

$103/mile $259/mile $725/mile

How much does a utility receive in residential access charges each month?

YOUR CO-OP IOWA’S IOUS IOWA’s MUNICIPALS

Geothermal For A Healthier Home

The Energy InsiderJULY/AUGUST 2020 PAGE 3

Jack Runge Bill McKim

2019 2018OPERATING REVENUES $ 49,168,085 $ 50,776,768

OPERATING EXPENSESCost of power 34,223,268 35,779,131Distribution expense - operations 1,186,518 1,584,659Distribution expense - maintenance 2,800,862 2,435,405Consumer account expense 667,062 709,403Consumer service and information expense 258,549 315,222Sales expense 227,355 297,418Administrative and general expense 1,961,087 1,691,597Maintenance expense 187,515 160,089Taxes 56,549 48,811Depreciation 3,561,354 3,475,531Miscellaneous 33,124 28,717

45,163,243 46,525,983

OPERATING MARGINS BEFORE INTEREST EXPENSE 4,004,842 4,250,785

INTEREST ON LONG-TERM DEBT 1,961,417 1,912,213

OPERATING MARGINS AFTER INTEREST EXPENSE 2,043,425 2,338,572

CAPITAL CREDITS 2,923,987 5,209,645

NET OPERATING MARGINS 4,967,412 7,548,217

NON-OPERATING MARGINSInvestment income 312,880 250,530Gain on disposition of property and equipment 99,961 90,638Other non-operating income (expense) (163,113) 79,442

249,728 420,610

NET MARGINS $ 5,217,140 $ 7,968,827

Revenue and Expense

Midland Power Cooperative belongs to the communities it serves. In 2019, the co-op retired $1 million in patronage

dividends to past and present members.

Leadership Report from 2019 annual report

We are happy to report that 2019 was a successful year for your co-op.

SafetyOne key component to all that we do is safety. Our team members train monthly on safety topics, and we continuously work to implement the best-known safety procedures and protocols. Midland Power Cooperative not only utilizes safety and training resources offered through the Iowa Association of Electric Cooperatives, we also have team members dedicated to leadership in the area of safety. This includes Safety Coordinator Chase Bachman (who joined your co-op’s team in September of 2019) and Vice President of Technical and Member Services Mike Wright.

Safety education doesn’t stop at our team members. Your co-op also invests in public campaigns to increase electric safety education and awareness and participation in the state’s Move Over Slow Down law. In Iowa, drivers that see a vehicle with flashing lights on the side of the road must move over or, if that is not possible, slow down. It just might save a life.

ReliabilityTree trimming, pole testing, electrical cabinet inspections, meter testing, and a robust new-to-replace-old infrastructure program are just a few areas in which your co-op invests to maintain reliable service to the membership. Last year, your co-op invested $2.8 million in maintenance programs such as performing vegetation management (tree trimming and spraying of right-of-way vegetation growth) across one-fifth of the co-op’s more than 4,000 miles of power lines. We also have contractors that test power poles and inspect electrical cabinets on one-tenth of the distribution system. These 5- and 10-year rotations help the co-op maintain a reliable system. In 2019, we replaced 35 miles of power lines, including some underground power lines.

AffordabilityMidland Power is owned by the member-consumers it serves. We don’t have far-off investors. Instead, the co-op allocates any excess income to be returned to the membership at a future date. This is one great benefit of being a member of a not-for-profit cooperative – we don’t make decisions to increase profits, we make decisions based on providing safe, reliable, affordable and sustainable power to the communities we serve.

In late 2019, Midland Power retired $1 million in patronage dividends to current and former members.

Your cooperative hasn’t increased rates since January 2017, and the routine business practice of a cost of service study (COSS) was conducted in 2019. The COSS is performed by expert consultants that analyze the co-op’s utility plant maintenance and investment costs, as well as the rates the co-op charges to different groupings of members. The COSS helps the co-op design rates

consistent with charging each type of membership based on what it costs the co-op to serve that type of membership. We are happy to report that there is little-to-no need for changes in the co-op’s rates to members as of the completion of the study in late 2019.

Sustainability Your co-op believes in a diverse power supply. We offer multiple programs to help our members support wind and solar technologies. The co-op’s Community Solar program allows members to support solar and receive a bill credit each month based on the performance of the solar array in Iowa Falls. Anyone can view the production of the solar array at www.MidlandPower.Coop. Additionally, any member may elect to support the Green Pricing program through a one-time contribution or monthly line item on their bill. Funds from this program are used to invest in future renewable energy projects. Investments in solar are also taking place through our cooperatively-owned power suppliers. Work is underway for what will be Iowa’s largest solar farm (a 100-megawatt facility south of Wapello) and what will be the largest solar farm located in South

Dakota (a 128-megawatt facility east of Rapid City).

If members are interested in on-site solar, Iowa Choice Renewables is available to discuss members’ individual goals and offer information and products to help members meet their goals.

One first for 2019 was the Electrify Iowa! Summit, held in September and hosted by Iowa Rural Power Education Foundation and the Iowa Environmental Council. Employees of Midland Power were in attendance and the

co-op’s Senior Vice President of Business Operations Norm Fandel presented on the co-op’s long-time participation in load management and energy-efficiency programs. Another topic at the summit, in which co-ops have been researching, was energy storage.

Community and TeamIt takes a really great team of employees that is dedicated to serving our community to make all this possible. In 2019, our team members came together to give back during our two community days spent making improvements at the Girl Scout Camp north of Boone. Such projects allow our employees to support programs that invest in our youth and future leaders. It also allows employees across our four community service points and different departments to work together.

There have been many benefits of serving our members from service centers in four communities. It has helped us recover more quickly from multiple storms and eased the process of implementing COVID-19 protocols. We look forward to expanding the accessibility of our team members by opening an office in the Boone community in 2020. This office will be within a 20-mile radius of 45% of our membership and will be a good addition to our offices in Jefferson and Humboldt.

As we navigate 2020….Those of us at the co-op enjoy interacting with members in person, but the necessary measures to reduce the spread of the novel coronavirus reinforced our commitment to utilize technologies that allow multiple employees to work remotely if needed. The SmartHub online platform and app allows members to access their account, make payments, review electric use, contact the co-op and even report power outages from their cell phone or computer.

2020 is proving to be a unique year, and in true cooperative spirit your board of directors came together to approve the 2020 patronage retirement to take place much earlier in the year. The retirement of $1 million in patronage took place in June 2020. This patronage retirement comes at a time when many of our members face uncertain situations due to COVID-19, and we hope this will provide some relief for our membership.

As a cooperative, Midland Power truly belongs to the local communities we serve. We look forward to continuing to provide safe, affordable, reliable, and sustainable electricity to the communities we serve.

Jack Runge, Board PresidentBill McKim, CEOMidland Power Cooperative

Safety is a core value at Midland Power. In 2019, the co-op produced commercials to raise awareness of Iowa’s Move Over Slow Down law.

Norm Fandel presents at the summit.

October 2019 groundbreaking at future Boone office.

The Energy InsiderPAGE 4 JULY/AUGUST 2020

A bimonthly publication of Midland Power Cooperative Headquarters: 1005 E. Lincoln Way, Jefferson, Iowa

Humboldt Office: 1210 13th St. North, Humboldt, Iowa Service centers: Boone, Humboldt, Iowa Falls, Jefferson

Mailing address: P.O. Box 420, Jefferson, IA 50129-0420Office Hours: 7:30 a.m. - 4:00 p.m. weekdays

515-386-4111 or 800-833-8876, Calls answered 24 hours a day, 7 days a week

Web Site: www.midlandpower.coop E-mail: mpcrec@midlandpower.coop

Facebook: www.facebook.com/midlandpower

Bill McKim, CEONorm Fandel, Sr. Vice President of Business Operations

Mike Wright, VP of Technical & Member Services

Board of Directors: James Byriel, Randy Christensen, Michael Coleman, Charles Gilbert, Bill Harleen, Paul Heineman, Tom Ingebritson,

Kim Rinker, Doug Robey, Jack Runge, Joel Skow, Rick Thompson

The Energy Insider Editor: Abbey Sprague

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 program.intake@usda.gov.

MARATHON® Non-metallic electric water heaters are durable, lightweight, and warranted not to leak

as long as you own your home*

• Best Construction: Seamless, blow-molded polybutene inner tank wrapped infilament-wound fiberglass

• Best Durability: Toughest and strongesttank in the residential water heaterindustry

• Best Functionality: No anode rod,recessed brass drain valve, and bowl-shaped tank bottom that drainscompletely

• High Efficiency: 2.5 inches of foaminsulation minimizes stand-by heat loss

• Best Value: Durability eliminates cost ofbuying and re-installing a new waterheater every10 years (national average)

• Best Warranty: Residential Application:Lifetime limited warranty on tank and 6-years on parts*

* Warranty is provided to original customer in a residential application after online product registration is complete. Registration must be completed within 90 days of installation. See Warranty Certificate for complete information.

HOT WATERFOR LIFE!

FEATURE SHEETResidential Water Heaters | Marathon Series

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In keeping with its policy of continuous progress and product improvement, Rheem reserves the right to make changes without notice.

Construction Features• Temperature and Pressure Relief

Valve – factory installed

• Water Resistant Grommets – keep outoverhead moisture and condensation

• Seamless Molded Non-metallic InnerTank – can’t rust or corrode

• Fill (Dip) Tube – high temperaturecommercial grade dip tube for greaterdurability

• Heating Elements – Thermally fusedupper element provides protection againstdry-firing. Titanium lower element forsuperior resistance to lime build-up

• Polyethylene Outer Jacket – resistsdents and scratches during transit,installation and beyond

• Filament-Wound Fiberglass Tank –has unmatched strength

• Recessed Drain Valve – out of the wayof brooms, feet and ankles

Canadian models have different model numbers than U.S. models. Add a “C” before the model number (e.g. CMR85245C) when ordering. Water heaters furnished with standard 240 or 120 volt AC, single phase non-simultaneous wiring and 4500 watt upper and lower heating elements. 3000 and 3800 watt elements are also available.If heating elements of different wattages than those shown are demanded, they must be specifically requested. For height to top and T&P and heat traps add 3-1/2” to the height to water connection. Maximum test pressure: 300 PSI. Maximum working pressure: 150 PSI.* *Recovery calculations used are based on 4500 watt elements used in non-simultaneous operation.

**Recovery = wattage/2.42 x temp. rise °F.Example: 4500W = 21 GPH

2.42 x 90°

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Marathon Specifications

Marathon Point-of-Use SpecificationsDESCRIPTION FEATURES DIMENSIONS (SHOWN IN INCHES)

T Y RECOVERY APPROX.P GAL. MODEL ELEMENT IN GPH TANK HEIGHT TO SHIP WT.E CAP. NUMBER WATTAGE VOLTAGE AT 90° RISE HEIGHT WATER CONN. DIAMETER (LBS)

POU 15 MR15120 2000 120 9.1 31-3/4 35-3/4 21-3/4 58

POU 19.9 MR20120 2000 120 9.1 30-1/2 34-1/2 23-1/2 61

POU 19.9 MR20230 3000 240 13.6 30-1/2 34-1/2 23-1/2 61

* This water heater is intended only for use as part of an electric thermal storage or demand response program. This water heater will not provide adequate hot water unless enrolled in such a program and is activated by your utility company or another program operator. Please confirm the availability of such a program in your local area before purchasing or installing this product.

Uniform Energy Factor and rated gallon capacity based on Department of Energy (DOE) requirements.

OUTLASTS STANDARD ELECTRIC

WATER HEATERS

DESCRIPTION FEATURES ROUGHING IN DIMENSIONS (SHOWN IN INCHES) ENERGY INFO.TYPE

NOMINALGALLON

CAPACITY

RATEDGALLON

CAPACITYMODEL

NUMBER

UEFFIRST HOUR

RATING G.P.H.

RECOVERY IN G.P.H.

90° F RISETANK

HEIGHTHEIGHT TO

WATER CONN. DIAMETER

APPROX. SHIP WT.

(LBS.)

UNIFORMENERGY FACTOR

(UEF)

Tall 30 28 MR30238C† 38 17 49 49-1/2 21-5/8 75 0.88

Tall 30 28 MR30245C† 38 21 49 49-1/2 21-5/8 75 0.88

Tall 40 38 MR40245C† 51 21 61-1/2 65-1/2 21-3/4 90 0.92

Tall 50 50 MR50245C† 57 21 62-3/4 66-3/4 23-1/2 100 0.91

Short 50 48 MSR50245C† 41 21 43-1/4 47-1/4 28-1/4 95 0.90

Tall 85 84 MRG85245C* 77 21 66-1/4 70-1/4 28-1/4 134 0.92

Tall 100 101 MRG105245C* 83 21 66-3/4 70-3/4 30-1/4 152 0.90

Midland Power Member Pricing: 50 gal. tall . . . . . . . . . . . . . . . . $400 50 gal. short . . . . . . . . . . . . . . $450 85 gal. . . . . . . . . . . . . . . . . . . . $490 105 gal. . . . . . . . . . . . . . . . . . . $625

7,200 volt lines

Yearson the job

Restoringpower to

500MEMBERS16

But right now it’s YOU I’m worried about.

His job is dangerous enough. The last thing heneeds is for you to drive into his utility truck because you ignored theflashing lights, cones and signs. When you see utility crews at work, slow down and move over. You have the power to protect a life.

00773_IAEC_MoveOver_Ads_horizontal_v04.indd 1 6/6/19 3:56 PM