12
Corn Belt Power Cooperative announced an agreement with 10 local farmer-owners in Palo Alto County in Northwest Iowa to purchase the output of the group’s 21-megawatt wind energy project. Humboldt-based Corn Belt Power Cooperative is a generation and transmission cooperative that provides electricity to 11 cooperatives and one municipal electric cooperative. These utilities pro- vide power to farms, rural residences, small towns and commercial/industrial customers in 28 Northern and Central Iowa counties. The community-based wind project includes 10 Suzlon S88 wind turbines, each of which has a capacity of 2.1 megawatts and is individually owned by local farmers. Construction of the towers will begin this fall with commercial operation expected by December 2006. The 10 local farmer-owners formed Crosswind Transmission, LLC, which will own and operate the transmission, substation and distribution facilities to carry electricity from the turbines and intercon- nect with Corn Belt Power Cooperative’s 69kV transmission line near its Ayrshire Substation in Palo Alto County. Under the terms of the contract, Corn Belt Power will purchase and receive all of the nameplate capacity and electric energy from the 10 wind tur- bines. “Corn Belt Power and its member distribution cooperatives have a long history of supporting rural development,” says Dale M. Arends, executive vice president and general manager, Corn Belt Power. “This is our first community-based wind energy project and we have experienced excellent coopera- tion working with the 10 local owners.” With the addition of this wind energy project, the proportion of Corn Belt Power’s renewable gen- erating resources will increase to nearly 15 percent of its entire generation portfolio. Corn Belt Power also receives wind energy from the Hancock County Wind Energy Center, owned and operated by FPL Energy near Duncan, Iowa, and hydropower from the Western Area Power Administration, which has several dams on the Missouri River. “As farmer-owners of Crosswind Transmission, we understand the impact of projects like this to our rural communities,” says Phil Sundblad, president from Crosswind Transmission, LLC in Albert City, Iowa.. “As with locally owned ethanol or biodiesel plants, rural communities reap the economic bene- fits from projects that stay within our rural neigh- borhoods; the domino effect is felt among local businesses, schools and governments. Working with electric cooperatives like Corn Belt Power and Iowa Lakes Electric Cooperative fits nicely into our busi- ness model of encouraging local community devel- opment. In Palo Alto and surrounding counties, Iowa Lakes Electric Cooperative receives and distributes wholesale power from Corn Belt Power. Terry L. Bruns, President/CEO, Iowa Lakes Electric Cooperative, comments, “We are pleased that our wholesale power supplier is continuing to diversify its fuel sources with renewable energy. This wind project is especially appealing since the owners are local to the Palo Alto County area.” Corn Belt Power Cooperative is owned by its member distribution cooperatives including Iowa Lakes Electric Cooperative, Estherville, Iowa. inside 6 7 2 Winter 2006-2007 Iowa Lakes Electric Cooperative ILEC NEWS Corn Belt Power Cooperative to Purchase Energy From Community-Based Wind Project Mike Thatcher, Vice President of Generation, Corn Belt Power, near the Hancock County Wind Energy Center. Iowa Lakes Electric Cooperative’s wholesale power supplier, Corn Belt Power Cooperative, will receive nearly 15 percent of its energy from renewable generating resources. Presidents Comments .2 January Rate Adjustment Expected Member-Owner Input Requested . . . . . . . . . .4 Pole Top Rescue Training . . . . . . . . . . .4 2006 Mitten Tree Fundraiser . . . . . . . . .5 Eagle Scout Builds Bridge . . . . . . . . . . . . .5 Board of Directors Receive Certificates . . .6 When is My Payment Due . . . . . . .6 Become a Leader of Your Cooperative . . . .7 Keep Holidays Safe . .8 Time to Winterize . . .8 Iowa Lakes in RE Magazine . . . . . . . . . .9 Oahe/Basin Tours . . .10 Iowa One Call . . . . . .10 Buy, Sell, Swap Ads . .11 The ILEC NEWS is a quarterly publica- tion specifically for ILEC member-owners. Look to the ILEC NEWS for cooperative news and events, industry updates, helpful hints and special features. Our Mission Iowa Lakes Electric Cooperative is dedicated to leadership and growth by providing reliable, competitively- priced energy while offering valuable services to benefit our members, our customers and the communities we serve.

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Page 1: ILEC - REC Info Center · ILEC NEWS Iowa Lakes Electric Cooperative Corn Belt Power Cooperative to Purchase Energy From Community-Based Wind Project ... Reading (AMR) system. Iowa

Corn Belt Power Cooperative announced anagreement with 10 local farmer-owners in Palo AltoCounty in Northwest Iowa to purchase the output ofthe group’s 21-megawatt wind energy project.

Humboldt-based Corn Belt Power Cooperativeis a generation and transmission cooperative thatprovides electricity to 11 cooperatives and onemunicipal electric cooperative. These utilities pro-vide power to farms, rural residences, small townsand commercial/industrial customers in 28Northern and Central Iowa counties.

The community-based wind project includes 10Suzlon S88 wind turbines, each of which has acapacity of 2.1 megawatts and is individually ownedby local farmers. Construction of the towers willbegin this fall with commercial operation expectedby December 2006.

The 10 local farmer-owners formed CrosswindTransmission, LLC, which will own and operate thetransmission, substation and distribution facilitiesto carry electricity from the turbines and intercon-nect with Corn Belt Power Cooperative’s 69kVtransmission line near its Ayrshire Substation inPalo Alto County.

Under the terms of the contract, Corn BeltPower will purchase and receive all of the nameplatecapacity and electric energy from the 10 wind tur-bines.

“Corn Belt Power and its member distributioncooperatives have a long history of supporting ruraldevelopment,” says Dale M. Arends, executive vicepresident and general manager, Corn Belt Power.“This is our first community-based wind energyproject and we have experienced excellent coopera-tion working with the 10 local owners.”

With the addition of this wind energy project,the proportion of Corn Belt Power’s renewable gen-erating resources will increase to nearly 15 percentof its entire generation portfolio. Corn Belt Poweralso receives wind energy from the HancockCounty Wind Energy Center, owned and operatedby FPL Energy near Duncan, Iowa, and hydropowerfrom the Western Area Power Administration,

which has several dams on the Missouri River.“As farmer-owners of Crosswind Transmission,

we understand the impact of projects like this to ourrural communities,” says Phil Sundblad, presidentfrom Crosswind Transmission, LLC in Albert City,Iowa.. “As with locally owned ethanol or biodieselplants, rural communities reap the economic bene-fits from projects that stay within our rural neigh-borhoods; the domino effect is felt among localbusinesses, schools and governments. Working withelectric cooperatives like Corn Belt Power and IowaLakes Electric Cooperative fits nicely into our busi-ness model of encouraging local community devel-opment.

In Palo Alto and surrounding counties, IowaLakes Electric Cooperative receives and distributeswholesale power from Corn Belt Power. Terry L.Bruns, President/CEO, Iowa Lakes ElectricCooperative, comments, “We are pleased that ourwholesale power supplier is continuing to diversifyits fuel sources with renewable energy. This windproject is especially appealing since the owners arelocal to the Palo Alto County area.”

Corn Belt Power Cooperative is owned by itsmember distribution cooperatives including IowaLakes Electric Cooperative, Estherville, Iowa.

inside

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2

Winter 2006-2007Iowa Lakes Electric CooperativeILEC NEWS

Corn Belt Power Cooperative to Purchase Energy From Community-Based Wind Project

Mike Thatcher, Vice President of Generation, Corn Belt Power, near theHancock County Wind Energy Center. Iowa Lakes Electric Cooperative’swholesale power supplier, Corn Belt Power Cooperative, will receivenearly 15 percent of its energy from renewable generating resources.

Presidents Comments .2January Rate AdjustmentExpected

Member-Owner InputRequested . . . . . . . . . .4

Pole Top RescueTraining . . . . . . . . . . .4

2006 Mitten TreeFundraiser . . . . . . . . .5

Eagle Scout BuildsBridge . . . . . . . . . . . . .5

Board of DirectorsReceive Certificates . . .6

When is My Payment Due . . . . . . .6

Become a Leader ofYour Cooperative . . . .7

Keep Holidays Safe . .8

Time to Winterize . . .8

Iowa Lakes in REMagazine . . . . . . . . . .9

Oahe/Basin Tours . . .10

Iowa One Call . . . . . .10

Buy, Sell, Swap Ads . .11

The ILEC NEWSis a quarterly publica-tion specifically forILEC member-owners.Look to the ILEC NEWSfor cooperative newsand events, industryupdates, helpful hintsand special features.

Our MissionIowa Lakes ElectricCooperative is dedicatedto leadership andgrowth by providing reliable, competitively-priced energy whileoffering valuable servicesto benefit our members,our customers and thecommunities we serve.

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2006 BUDGETED EXPENSESPower Cost . . . . . . . . . . . . . . . . . . . . .66%Operations & Maintenance . . . . .10%Consumer Accounts . . . . . . . . . . . . .5%Administrative & General . . . . . . . .5%Interest Expense . . . . . . . . . . . . . . . .5%Depreciation . . . . . . . . . . . . . . . . . . . .9%

PROJECTED EXPENSES 2015Power Cost . . . . . . . . . . . . . . . . . . . . .72%Operations & Maintenance . . . . . . .9%Consumer Accounts . . . . . . . . . . . . .5%Administrative & General . . . . . . . .4%Interest Expense . . . . . . . . . . . . . . . .3%Depreciation . . . . . . . . . . . . . . . . . . . .7%

Since April of this year, I have identified to mem-ber-owners the potential for a rate adjustment in 2007by your Cooperative. We have all seen the effects ofthe price volatility in the energy markets as we fill ourcars, trucks, propane or fuel tanks and feel that impactin our checkbooks everyday. The operating costs ofdoing business with your local electric cooperative arealso increasing and can be divided into two generalcategories. The first category is the cost of the electric-ity itself (generation and transmission) and the secondis the cost of delivering electricity (distribution).

Iowa Lakes Electric Cooperative purchases all ofthe electricity we sell at retail from two wholesale sup-pliers: Corn Belt Power Cooperative (Humboldt,Iowa) and Northwest Iowa Power Cooperative (LeMars, Iowa).

Corn Belt Power Cooperative has experiencedthe most significant cost increases in wholesale elec-tric rates in recent years. Corn Belt Power’s Board ofDirectors recently approved wholesale rate increases,including the ability for Corn Belt Power to recoverfuture wholesale energy increases by passing along awholesale power cost adjustment (WPCA), to itsmember distribution cooperatives, including IowaLakes, which becomes effective January 1, 2007.

Today, your Cooperative pays on average 66cents of every revenue dollar received by mem-ber-owners in wholesale power cost which isanticipated to increase to 72 cents for every rev-enue dollar received by the year 2015.

Since the year 2000, the price of propanehas increased about 39%, fuel oil nearly 100%and natural gas approximately 30%. In directcomparison, the price increases for your elec-tricity have been moderate.

The second category of your retail electricrates is the cost of delivering the electricity pur-chased at wholesale from the substation to theelectric meter at your home, business or farm(distribution costs).

This portion of your Cooperative’s operat-ing cost has been stable. Many individual costincreases such as health insurance and proper-ty taxes have been absorbed internally throughthe increased operating efficiencies of a larger,stronger and more diversified electric coopera-tive since the formation of Iowa Lakes duringthe merger and consolidation in 1986 and 1989.

Terry L. BrunsPresident/CEO

Iowa Lakes Electric Cooperative

2

January Rate Adjustment Expected

Learn how to identify the best ways to save energy in your home by visiting your Cooperative’s website www.ilec.coop and clicking on the Home Energy Audit link. This is a free, easy-to-use HomeEnergy Savings tool that will calculate how much energy and money member-owners can save byimplementing energy efficiency improvements. Also visit www.useelectric.com for energy efficient products, tips and information.

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PPRREESSIIDDEENNTT//CCEEOO CCOOMMMMEENNTTSS

As you can see by the graph providedabove, your Cooperative’s long range financialforecast identifies the anticipated cost increas-es by these two major cost categories. (Note:Generation and Transmission equals whole-sale energy costs and distribution equals yourCooperative’s delivery costs.)

While virtually all aspects of today’s cost ofliving continues to rise, the member-owners ofIowa Lakes Electric Cooperative have enjoyedmany years of rate stability as depicted in theIowa Lakes Historical Average Cost Per kWhgraph. As we all know, there are not too manycommodities that you can purchase today forthe same price as they were in 1940.

Compared to other consumer productsand services, electricity is a bargain. As thedemand for electric energy continues to riseand the costs of fuels increase, your electriccooperative is committed to providing safeand affordable electricity at the lowest possiblecost. Believe it or not, the national cost of elec-tricity today, when adjusted for inflation, is lessthan what it cost in 1980. Very few commodi-ties have remained such a good value.

Your Cooperative’s Board of Directors andemployee team have all worked to minimize

the cost of your electric energy by:• Implementing the Automated Meter

Reading (AMR) system. Iowa Lakes is realizing numerous internal efficiencies in reduced labor expenses and improved billing efficiencies and accuracies.

• Continuing load management programs which reduces electricity usage during peak demand periods.

• Promoting high-efficiency electric heating equipment, water heaters and other energy saving tools.

You also can play an important role in con-trolling your energy costs by implementingenergy-saving measures. Take advantage ofIowa Lake’s Change a Light, Change the Worldcompact fluorescent light bulb (CFL) cam-paign by replacing the standard light bulbs inyour home with a CFL style bulb. Iowa Lakesmember-owners can receive a $2 InstantRebate on qualified bulbs at participating AceHardware,Do It Best,Hardware Hank,Hy-Vee,Menards, Mills Fleet Farm, Theisens and TrueValue Hardware locations through November30, 2006 or while supplies last (limit 12bulbs/membership).

1940 1960 1980 2000 2006

8¢ 8¢

9.8¢

2.4¢

5.3¢

While virtually all aspects of today’s cost of living continues torise, the member-owners of Iowa Lakes Electric Cooperativehave enjoyed many years of rate stability as depicted in thegraph above, which does not take into consideration anadjustment for inflation.

Iowa Lakes Electric Supports Local Schools with “Casual for Community” Fund

Ann Ingvall of Iowa Lakes Electric Cooperativepresents the Emmetsburg elementary education staffwith a donation of school supplies for theEmmetsburg School District. The school supplieswere purchased through Iowa Lakes ElectricCooperative’s Casual for Community Fund.

Iowa Lakes Electric Cooperative established theCasual for Community Fund in January 2006 to helparea charitable, educational and non-profit groups.The Cooperative’s office employees are awarded theopportunity to wear blue jeans on Fridays by volun-tarily donating $5 monthly to the Casual for

Community Fund. At the discretion of an employee-led committee, the Casual for Community Funds aredonated to local organizations within Iowa LakesElectric Cooperative’s eight county service territory.

“As a Cooperative, we take great pride in ourcommitment to our communities by giving back andsupporting those organizations that make a differ-ence in the lives of both our member-owners and ouremployee team,” stated Terry L. Bruns,President/CEO. Casual for Community has been awin-win program for both the Cooperative’s officeteam and local charitable organizations!”

0%

10%

20%

30%

11.9

%17

.9%

10.7

%

10.3

%

16.8

%

13.2

%

8.0%

8.8%

5.7%

7.3%

4.9%

4.9%4.

2%

2.4%

Projected Future Rate Increases

2009 2010 2011 2012 2013 2014 2015

Generation & TransmissionDistribution

Iowa Lakes Historical Average Cost Per kWh for Residential/Farm Accounts

Your Cooperative has worked with an independ-ent consulting firm on a cost of service study toestablish rate changes that are fair and equitable to allmember-owners. In addition to the increased cost ofwholesale power (generation and transmission),your Cooperative also needs to factor in theincreased operating costs associated with deliveringreliable electric service. Maintaining dependable andsafe electric service at affordable prices, while pro-tecting your Cooperative’s financial viability, remainsthe cornerstone of Iowa Lakes Electric Cooperative.

Knowing an increase is unavoidable, an offi-cial rate increase notice will be mailed to eachmember in accordance with the IowaAdministrative Code and Iowa Utilities Boardwith the expectation that a rate increase will beimplemented January 1, 2007.

Thank you in advance for your thoughtful con-sideration with this important but necessary finan-cial matter concerning your Cooperative.

The Power of Many, Working as One!

Ann Ingvall of Iowa Lakes and the Emmetsburgelementary education staff from the Emmetsburg School District.

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While they hope and pray it is a skill they never haveto use, Iowa Lakes Electric Cooperative’s linemen partic-ipated in Pole Top Rescue Training during theCooperative’s monthly Safety Meeting on October 10,2006 at the Spencer Service Center.

Pole Top Rescue Training is designed to provideinstructions for linemen who may need to rescue fellowlineman who may be injured and is left hanging on thepole or in a bucket. The speed and care involved in thisprocess could make the difference between the life anddeath of a co-worker who is unconscious.

This unconsciousness could be caused from contactwith an energized line or even because of some suddenillness such as a heart attack. The Pole Top RescueTraining simulates emergency rescues. How quickly andaccurately a lineman can perform the necessary proce-dures is critical during this practice program.

The rescue training requires a lineman to call in the“May Day” emergency on the radio so that Iowa Lakes’dispatchers know where to send emergency help. Thelineman must then get climbing gear from their truck,survey the scene for potential hazards, put on theirclimbing gear and climb a 40-foot pole to lower a 200-pound mannequin down to the ground with the help ofa rope, known as the life-line.

After the mannequin is on the ground, the linemanmust climb down the pole, remove his high-voltagesafety gloves and climbing gear and begin administer-ing CPR. To complete the exercise successfully, theentire procedure has to be completed in less than four(4) minutes to prevent brain damage to a victim due tolack of oxygen. Pole top rescues are not common, butthey do happen. Safety First!

On August 8, 2005 the Energy PolicyAct of 2005 (EPAct 2005) was signed intolaw. Among many of the provisions of thisfederal legislation are five (5) federal ratemaking standards that have been added tothe Public Utility Regulatory Policies Actof 1978 (PURPA).

On July 27, 2006 the Board ofDirectors of Iowa Lakes ElectricCooperative agreed and approved to vol-untarily consider these five (5) new ratemaking standards as the Cooperative iscurrently exempt from these federalrequirements.

The five (5) new standards include: (1)Net Metering; (2) Smart Metering andReal-Time Pricing; (3) Fuel Diversity; (4)Fossil Fuel Generation Efficiency; and (5)Distributed Operation Interconnection.

Consideration of these new standardsbegins August 2006, for interconnectionand smart metering and August 2007 forthe remaining three (3) standards.

Net Metering.Net metering service is service to an elec-tric customer in which excess electricitygenerated by the customer from an eligibleon-site generating facility is offset againstelectric energy provided to the customerby the utility during the applicable billingperiod.

Fuel Source Diversity.Fuel source diversity involves the imple-mentation of a plan to minimize depend-ence on one fuel source and to ensure thatthe electric energy the utility sells to cus-tomers is generated using a diverse rangeof fuels and technologies, includingrenewable technologies.

Fossil Fuel Generation Efficiency.The fossil fuel generation efficiency stan-dard involves development and imple-mentation of a ten-year plan to increasethe efficiency of a utility’s fossil fuel gener-ation.

Time-Based Metering andCommunications (Smart Metering).Time-based metering is a time based rateschedule where the rate paid by electric

customers varies during different timeperiods to reflect the variance, if any, in theutility’s costs of acquiring electricity.

Interconnection.The interconnection standard sets forththe terms under which electricity generat-ed by a customer may be connected to autility’s facilities.

Iowa Lakes Electric Cooperative’sBoard of Directors plans to consider theinformation solicited by this notice inconjunction and coordination with itswholesale power suppliers Corn BeltPower Cooperative (Humboldt, IA) andNorthwest Iowa Power Cooperative(LeMars, IA) and evaluate the voluntarilyimplementation of any or all of theseEPAct 2005 standards on behalf of thebest interests of the Cooperative mem-ber-owners.

All member-owners of Iowa LakesElectric Cooperative, the U.S. Secretary ofEnergy and any affiliated electric utility ishereby notified and requested to partici-pate by providing information, evidenceand written testimony to:

Mr. Terry L. Bruns, CPAPresident/Chief Executive OfficerIowa Lakes Electric Cooperative702 South First StreetEstherville, Iowa 51334-1890

All of the information provided inwriting, evidence enclosed and written tes-timony must be submitted to the aboveaddress no later than March 15, 2007.During the second quarter of 2007, yourBoard of Directors will review the inputand suggestions received, undergo addi-tional training about these standards anddetermine which, if any, of these standardshave practical implications or potentialimplementation for your Cooperative andthen set the direction for the managementteam to complete.

Thank you for your input with thisimportant federal legislation. Help Us toHelp You! The Power of Many, WorkingAs One!

Member-Owner Input Requested

4

CCOOMMMMEENNTTSS

We take safety seriously

P o l e T o p R e s c u e T r a i n i n g

ILEC lineman, Ryan Bosse,Storm Lake Service Center,

demonstrates his pole top rescue skillsduring training.

Page 5: ILEC - REC Info Center · ILEC NEWS Iowa Lakes Electric Cooperative Corn Belt Power Cooperative to Purchase Energy From Community-Based Wind Project ... Reading (AMR) system. Iowa

Commitment to Community is part ofIowa Lakes Electric Cooperative’s mission. Justrecently, Iowa Lakes Electric Cooperativedonated and delivered five new utility poles,valued at $1,150 to Michael Kruse, age 13.Michael used the poles to construct a newbridge at Jim Hall Habitat area south ofEstherville, Iowa, in order to receive his EagleScout rank.

Impacting the lives of young people isextremely important to Iowa Lakes ElectricCooperative.“Youth in our community are thefuture”, says Tresa Hussong, Vice President ofCustomer and Corporate Relations. “We arehappy to be able to support our communitieswe live in and serve.”

Iowa Lakes Electric Cooperative donates toother various organizations throughout theeight-county service territory including Relayfor Life, Camp Foster, 4-H and new for 2006the Alzheimer’s Association Memory Walk.

At times throughout the year, Iowa Lakesalso donates material and equipment for proj-ects within the communities. “We not onlydonate material and equipment but manyemployees donate their time after-hours toassist with these projects” says Rick Olesen,Vice President of Operations and Engineering.

The employee team volunteered an out-standing 6,286 hours of their own time back toyour communities in the 2005 calendar year.

2006 Mitten Tree FundraiserIowa Lakes Electric Cooperative helped make the holidaysbrighter for individuals in the Cooperative’s service territory.

Iowa Lakes Electric Cooperative held its second annual mitten tree kick off onFriday, October 20, 2006. KUOO radio was at the Iowa Lakes Electric headquar-ters broadcasting live from 10 a.m.- 12 p.m. to help kick off this worthwhile win-ter project. To the left, member-owner, Helen Oppedal of Ruthven donated 32hand-crochet items, including hats, mittens, scarves and lap blankets. The mittentree is a community-minded fundraiser in which winter weather accessories andnon perishable food items are collected and donated locally throughout commu-nities in Iowa Lakes’ service territory.

In 2005, the charity fundraiser delivered overwhelming results allowing 229children in Northwest Iowa to have new mittens, stocking hats, scarves, and snowboots to help keep them warm during the winter.

Iowa Lakes Electric Cooperative member-owners can donate new chil-dren’s mittens, scarves, hats, boots and non perishable food items to help dec-orate the mitten tree located at the Estherville headquarters building. All win-

ter weather accessories and non perishable food items willbe donated to Upper Des Moines Opportunity locationsthroughout the Iowa Lakes eight-county service territory.Please bring or send your donations to 702 South 1stStreet, Estherville, IA, 51334, by December 31, 2006.Donations can also be dropped off at the KUOO radio sta-tion in Spirit Lake. Help us to help others!

Each member-owner making a donation to ourmitten tree will receive a compact florescent light bulb com-pliments of Iowa Lake Electric Cooperative. The Power ofMany, Working as One!

5

O u r C o m m u n i t y C o m m i t m e n t

Michael Kruse, 13, stands on his newlycompleted bridge he built to become anEagle Scout.

Iowa Lakes’ employees, Steve Kuball and Chris Hoffman deliver poles used to construct a new bridge south of Estherville.

I O W A L A K E S E L E C T R I C C O O P E R A T I V E S U P P O R T S

Commitment to Community

Helen Oppedal of Ruthven, Iowaplaces her hand-crochet mittens onthe 2006 mitten tree.

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From left, Dennis Knoner, Jerry Beck, S. Vance Hjelm, Jim Hultgren,Alan Madden and Thomas Mortenson are Certified CredentialedDirectors at Iowa Lakes Electric Cooperative headquartered inEstherville, Iowa. Knoner, Beck, Hjelm, Hultgren, Madden andMortenson were recently honored at the National Rural ElectricCooperative Association’s Region V meeting for their commitmentto education and attainment of the certificate.

FROM THEBOARDROOM

Iowa Lakes Electric Cooperative Board of Directors Earn Credentialed Cooperative Director (CCD) Certificate

Recently six Iowa Lakes Electric Cooperative boarddirectors received their Credentialed CooperativeDirector certificate from the National Rural Electric

Cooperative Association (NRECA).The NRECA Credentialed Cooperative Director or CCD

program, requires attendance and demonstrated under-standing of the basic competencies contained in five corecourses: Director Duties and Liabilities; Understanding theElectric Business; Board Roles and Relationships; StrategicPlanning; and Financial Decision Making.

Today’s electric utility environment poses new demandson electric cooperative directors, particularly increasedknowledge of changes in the electric utility business, newgovernance skills and a working knowledge of cooperativeprinciples. Iowa Lakes Electric Cooperative’s Board ofDirectors has a strong commitment to work throughNRECA to sharpen this body of knowledge for the benefit oftheir electric cooperative member-owners.

6

FRI E N

DL Y R E M I N D E R • F R I E N D LY

REM

IND

ER • FRIENDLY REMINDER

AMRautomated meter readingFR

IEND

L Y R E M I N D E R • F R I E N D LY R

E MIN

DER •

FRIENDLY REMINDER

AMRautomated meter reading WHEN IS MY PAYMENT DUE?

Every month, dates you need to know:• Your meter will be read on the last business day of the month or

the first business day of the following month.• You will receive your billing statement by the middle of the month. • The due date shown on your bill (typically the end of the month)

indicates the day your payment must be received by Iowa Lakes. Please complete the lower portion of your monthly bill and return it to Iowa Lakes Electric Cooperative by the DUE DATE shown on your bill to avoid any late fees.

BUDGET BILLING PLANTo avoid large fluctuations in your monthly bills during the year, sign up for our budget billing plan. Your budget payment isreviewed annually and adjusted accordingly.

For more information,contact Iowa Lakes at 800-225-4532.

IMPORTANT BILLING INFORMATION

Please remember to send inyour payment by the due dateindicated on your billing stub.

x x x x x x x$149.2512/29/06

12/15/06 12/29/06

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7

Be a Leader of Your Cooperative

County Line

Districts I and II

KossuthDickinson

Clay Palo Alto

Buena VistaCherokee Pocahontas

Emmet

• Be an independent thinker, but capable of cooperating.

• Acquire the knowledge necessary to cope with the issues of a modern electricutility, including finance, management and communications.

• Possess the character and demeanor that will reflect favorably on behalf ofthe Cooperative.

• Be willing to listen and learn.• Be of sufficient stature to command the

respect of management, employees,fellow board members and the general public.

• Be willing to commit adequate time to the work of the board, to be an effective

member and properly discharge duties of the board of directors.

• Subordinate personal and other business interests to the needs of the Cooperative when making a decision.

• Be willing to accept the unpleasantmoments of a director’s experience.

• Let management manage.

Other criteria include:• Be a resident of one of the districts

open for election.• Receive electric service from the

Cooperative.• Have an account in good standing.

DIRECTOR NOMINEE APPLICATION

I, the undersigned, a member of Iowa LakesElectric Cooperative, hereby applies as a nomineefor directorship of Iowa Lakes ElectricCooperative from district I, or II (circle the appro-priate district), and request that my name be sub-mitted to be placed on the ballot for the 2007 elec-tion for directorship from said district to be held atthe 2007 annual membership meeting (4/14/07).

I understand the nominating committee willstrive to select other candidates in my district.

I certify that I am receiving electric servicefrom Iowa Lakes Electric Cooperative in district Ior II (circle the appropriate district) and am amember in good standing of Iowa Lakes ElectricCooperative.

I certify that I am not employed by, financiallyaffected by, or have other interests in a businesswhich is in competition with Iowa Lakes ElectricCooperative, its affiliates, or sells its products orservices to the cooperative.

If elected a director, I agree to abide by theArticles of Incorporation and Bylaws and Policiesof Iowa Lakes Electric Cooperative.

Signature__________________________________

Account No: ______________________________

Date: ____________________________________

Other criteria of a board member as identified by NRECA include:

District I and II Elections in 2007A director’s responsibility consists of having the ability and knowledge to set

policy and approve programs that are the basis for operating your Cooperative,according to information compiled by the National Rural Electric CooperativeAssociation (NRECA) in Washington, D.C. A director must have the time to attendmonthly board meetings, other special meetings and seminars. These special ses-sions are necessary to keep directors informed on the various aspects of yourCooperative and the electric utility industry.

If you would like to apply, complete the “DirectorNominee Application” below and return it to IowaLakes’ Estherville office to the attention of thePresident/CEO, Terry L. Bruns, prior to January 10,2007. Thank you for your interest.

District I

District II

DID YOU KNOW...for about the price of lunch at your favoriterestaurant, most of our member-owners getall the convenience and comfort of electricity for a day.

That’s a day of heating, cooling, hot water, entertainment, clean clothes, lights and home-cooked meals.

ELECTRICITY...A GREAT VALUE!

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K e e p i n g H o l i d a y C e l e b r a t i o n s

B r i g h t a n d S a f e !Glittering lights and decorations, festive parties and fabulous foods are beautiful holidaytraditions in Iowa and throughout the United States. But some of the things that makethe holidays so special can also pose electrical and fire hazards if handled carelessly.

Cook with CareAccording to the National Fire Protection Association, cooking has been the leadingcause of home fires since 1990. When bringing out the electric mixers, slow cookers,turkey roasters and food warmers to prepare for holiday baking and entertaining,Iowa Lakes Electric Cooperative offers these tips to avoid shocks and fires in thekitchen.

• Inspect all small appliances and electric cords to make sure they are in good repair, and read operating instructions before use.

• When purchasing new kitchen appliances, look forUL-listed models with automatic shut-off features.

• Never plug more than one high-wattage appliance into a single outlet.

• Stay focused and attentive to baking, brewing andsimmering foods.

• Keep cooking areas clean and free of grease.• Make sure a working fire extinguisher is on hand,

and know how to operate it.• Never stand in or near water when using electrical

appliances for preparing food! Also, make sure thatthe outlets near sinks are equipped with properly tested ground fault circuit interrupters (GFCI’s) to prevent shocks when using electric appliances near water.

Decorating Do’s and Don’tsAdditional tips for safe holiday decorating in a home and business.

• Water fresh-cut trees frequently and place them away from heat sources, suchas heat registers, fireplaces, radiators and televisions.

• Make sure extension cords are in good condition and UL-approved to carry the electrical loads expected.

• Match plugs with outlets. Do not force a three-pronged plug into a two-pronged outlet or extension cord and do not remove the third prong.

• Avoid overloading outlets. If necessary, use surge protector strips that have circuit breakers to prevent overloads when multiple outlets are needed.

• Keep electric cords away of high-traffic areas. Do not run them through doorways; staple, nail or tack cords to the wall; or hide them under rugs or carpets.

• Outdoors, use only lights, cords, animated displays and decorations rated for outdoor use. Cords should be plugged into outlets equipped with GFCI’s. Usea portable GFCI if outdoor outlets do not have them.

• Always unplug lights before going to bed or leaving your home.

“Overloaded electrical systems are a major cause of fire,” warns Terry L. Bruns,President/CEO. “Flickering or dimming lights and monitors, sparks from appliancesor outlets, and wall plates, plugs or cords that are warm to the touch are warning signsthat demand immediate attention.”

H E A T I N G T I P S F O R Y O U

Lower Iowa weather temperatures often mean risingheating bills. Before pinching pennies to prepare, take afew simple steps to make your home more energy efficientand cost effective this winter.

Energy dollars can pour out of homes through draftydoors, windows, attics, walls, floors and basements, whilesafety risks go unnoticed. Iowa Lakes Electric Cooperativeencourages you to make a small investment of time for bigdividends in keeping your home warm and safe this win-ter. “Most winterizing steps can pay for themselves rela-tively quickly with heating bill savings,” says Terry L.Bruns, President/CEO. “And don’t overlook simple ener-gy-saving steps such as closing vents and doors to roomsyou don’t use. These are effective energy-saving tips thatcost you nothing.”

Your Cooperative encourages the following steps tohelp cut costs and improve efficiency.

• Use your thermostat effectively. Turn it down when you are away from home or sleeping,and keep it at the lowest comfortable level when you are at home. Consider buying a programmablethermostat to automatically adjust the temperature.

• Look for air leaks. Feel for drafts and look for sunlight around windows or doors to find leaks that need sealed. Check around fixtures that penetrate walls, such as exhaust fans and electrical outlets,and look for gaps near dryer vents, chimneys and faucet pipes. Caulking and weather stripping are inexpensive and among the simplest, most effective ways to lower heating costs.

• Check and clean your furnace filter. To save energy and improve heat circulation, do this everymonth. It is not too late to have a professional check and, if necessary, service your furnace to ensure peak efficiency and safety.

• Use sunlight’s natural heat to your best advantage. Open curtains and blinds on sunny days to let the sunlight warm your home, and closethem on gloomy days and at night to keep the heatinside.

• Ensure your house is well insulated. Insulating flooring above and ceilings below unheated spacesand walls can have noticeable results for comfort level and heating bills.

• Close the fireplace damper. When you are not using your fireplace, close the damper to prevent heat from escaping and cold from entering through the chimney.

• Install storm windows in place of screens.Double-pane windows with low-e coating can helpreduce heating bills by 34 percent in cold climateslike Iowa compared to uncoated, single-pane windows. If you have older or leaky windows that cannot be replaced, consider temporary fixes suchas plastic film kits that create the effect of an interior storm window.

For more energy saving tips, visit our website www.ilec.coop and click on the Saving on Heating Costs article. 8

time to winterizeCustomer Safety News

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C o n g r a t u l a t i o n sJeri Colsrud from Wallingford!

Jeri won a digital camera for participating in an online survey that asked her for comments about her favorite Touchstone Energy television ad. Amy Howard, Manager of Customer Services (left), presents Jeri with her digital camera.

Reprinted with permission from September 2006 issue of Rural Electric magazine © National Rural Electric Cooperative Association

Iowa Lakes Electric Cooperative was featured in theSeptember 2006 issue of Rural Electric (RE) Magazinedue to the cooperative’s involvement in the boomingethanol industry within its service territory. Iowa LakesElectric Cooperative currently has a 100-million gallonethanol plant online, another 100-million gallon plantscheduled to come online this fall, while constructionhas begun on a third 50-milliongallon plant and there arerumors of more ethanol plantprojects within all eight countiesthat Iowa Lakes ElectricCooperative serves in northwestIowa.

“You go 100 miles in any direc-tion and there’s just a tremen-dous growth in this kind of plantand in ethanol production,” says Rick Olesen, VicePresident of Operations and Engineering.

The ethanol plants have helped Iowa Lakes balance

its growing load between residential members andcommercial and industrial members. “When we start-

ed our economic developmentefforts in the ‘80s, we were hoping toget to achieve a 40 percent commer-cial and industrial load,” saysPresident/CEO Terry L. Bruns.“Because of Iowa Lakes’ commit-ment to economic development inour communities, our commercialand industrial loads are now at 50percent and growing.”

Rural Electric Magazine is published monthly bythe National Rural Electric Cooperative Association,edited for the electric cooperative industry.

I N T H E S P O T L I G H T :Iowa Lakes Electric Cooperative Featured in National Magazine

Iowa Lakes Electric Cooperative’s President/CEO,Terry Bruns fills E85 into the gas tank of a cooperativevehicle at Riverside Sinclair in Estherville, Iowa.

Above, Iowa LakesElectric DirectorSteve Williams onhis Storm Lake cornfarm appears on thecover of the RuralElectric Magazine.

At right, a mound ofcorn inside MidwestGrain Processorsplant outside Lakota,Iowa.

Your electric cooperative works hard to hold our electric cooperative works hard to holenergy prices down. Now you can help control

your energy use right at home.Visit www.ilec.coop and click on Home Energy Saver. Easy questions provide a clear picture of where and how you use energy, every day. You’ll get a list of ideas to help you save energy and money.

• Free¥ Developed by Lawrence-Berkeley National Labs¥ 12-question survey is quick and easy to complete¥ Covers your whole house¥ Easy-to-understand results¥ Printable recommendations you can take to

your local hardware/home improvement store

Providing powerful tools to save money.

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W I N N E R

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I L E C N E W S

Some members-owners of Iowa LakesElectric Cooperative went right to thesource of their electric power this summer.

Three separate educational power sup-ply tours were sponsored by Iowa LakesElectric and Northwest Iowa PowerCooperative (NIPCO) this summer. In addi-tion to the educational portion of the tour,members-owners enjoyed good food andfellowship with neighboring electric cooper-ative’s member-owners.

At the Oahe Power House near Pierre,S.D., participants had the opportunity to trytheir skill at controlling the Missouri Riverduring adverse weather conditions. Theinteractive display shows the many differentconsiderations the U.S. Army Corps ofEngineers has to take when operating thedams.

On the second day of the tour in west-central North Dakota, the member-ownerswere amazed at the number of products thatare made from lignite coal at the GreatPlains Gasification plant. Electric powerand natural gas are the principle products,but there are also many other chemicals, fer-

tilizers, and adhesives, as well as CO2 whichis piped to Canada and used for oil recovery.

Another highlight of the tour is a visit tothe adjoining coal mine. Seeing some of thelargest equipment in the United States inoperation is spectacular. The member-own-ers were pleased to know there is enoughcoal for generations to come and to see thesuccessful results of reclamation of the landafter mining is complete. The land is careful-ly returned to either natural prairie or crop-land depending on its original use. Oftenmember-owners catch a glimpse of the herdof antelope that graze on the reclaimedacres.

In addition to the tours the member-owners got a brief look at electric coopera-tive history, and gain new understandingand pride in their ownership of theCooperative. The tours are part of theCooperatives’ commitment to provide edu-cation for directors, employees and mem-ber-owners.

If you would like to be a part of thisexperience next year watch this newsletterfor the opportunity to enter the drawing.

Oahe/Basin Tours a Big Success

Members Helping MembersWhat is RECare?

RECare provides local community action agencieswith funds to help low-income families pay for winterheating bills and weatherize their homes. This programallows you to help other less fortunate electric coopera-tive member-owners.

Through RECare, you may make a one-time contri-bution or a monthly pledge that will automatically beadded to your monthly electric bill. Even one ($1.00)dollar a month will help others. To participate, pleasecomplete the form below and return it with your month-ly billing statement to Iowa Lakes Electric Cooperative.Thank you for your support of this worthwhile program!

Members Helping MembersR E C a r e P a r t i c i p a t i o n F o r m

Yes, I want to be part of “members helping members” and contribute to RECare.m I will make a one-time contribution to RECare. My check is enclosed.m I will contribute $____per month to RECare. I understand that this amount will be automatically added to my monthly electric bill.

Name: ________________________________________________Address:________________________________________________City, State, Zip: __________________________________________Acct. #: ________________________________________________

Please return reply form with your Iowa Lakes billing statement

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Tour I: Ernie Porath & Carol Byers; Eli and Margaret GrimmTour 2: Ernie & Beverly Glienke; Shirley & Myles Pedersen;

Carol & Steve WilliamsTour 3: Eugene & Margaret Ferris; Marly & Vernon Gregg

Tour I

Tour 3

Tour 2 I T ’ S T H E L A W. . .I O W A O N E C A L L

Iowans need to notify Iowa One Call at 1-800-292-8989 at least 48 hours (excluding weekends andlegal holidays) prior to digging or excavation. Thiscall sets into motion a process resulting in the mark-ing of underground facilities, commonly thought ofas underground utility lines, with colored flags andpaint markings, indicating where people shouldavoid digging.

Iowa Code requires notification of Iowa One Callbefore any digging or excavation on propertywhether on a farm or a home in a city or town. Asdefined by Iowa law, excavation is an “operation inwhich a structure or earth, rock or other material inor on the ground is moved, removed, compressed, orotherwise displaced by means of any tools or equip-ment. This includes, but is not limited to, digging,drilling, driving, grading, scraping, trenching, tiling,tunneling, ditching and demolition of structures.”

A potential point of confusion relates to IowaOne Call requirements specific to farming. IowaCode, Chapter 480 states that normal farming opera-tions do not require prior notification. “Normalfarming operations” refer to plowing, cultivating,planting and harvesting that are common to mostfarms and DO NOT penetrate the soil more than fif-teen (15) inches in depth. Anything going deeperthan fifteen (15) inches during fieldwork is not “nor-mal farming operations” and requires contactingIowa One Call. So for chisel plowing, sub soiling, rip-ping, tiling, terracing, fence post installation andwaterway work, you may need to make the under-ground utility locate call. Remember, it’s the law.

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Ads are printed in the order in which they are received. The ILEC NEWS publication is published in February, May, August and November. Classified ads are published only inthe 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 addi-tion, Iowa Lakes does not warrant or express any opinion whatsoever as to the fitness or appropriate usefulness for any item as listed by owner. Email classified ads [email protected] or mail to 702 S. 1st St., Estherville, IA 51334

n Dear Terry,I would like to write a message of thanks to

Iowa Lakes Electric on behalf of my wife, mygrandchildren and myself. This past Saturdaynight due to storms in the Storm Lake area, ourpower went out due to a lightning strike close toour house. My twin grandchildren were spendingthe night at our home, and needless to say at theage of 3 they were quite upset.

What I believe was less than an hour, I hearda truck outside our place. It was a huge relief tosee that big Iowa Lakes Electric truck with itslights beaming up on our power pole. Within acouple of minutes our power was back on.

Thank you to your company for being soprompt and for people like Ryan Bosse who wasout in that truck that night. It is so assuring toknow that when situations like storms happen,wehave the dependability of Iowa Lakes Electric tobe there for us. Your people that go out in thesestorms are to be commended for the outstandingdedication and work they do. We are proud to bemembers of Iowa Lakes Electric!

Sincerely, Larry Schultz, Storm Lake

n On behalf of the Patrons of Fine Arts andELC Fine Art Students and Faculty, we wish to

extend a huge THANK YOU for your donationsof the grill and charcoal lighter. Also thanks toJack Schoon for grilling that evening! ThePatrons of Fine Arts Tailgate wa s a huge success.We appreciate your support in our community.

n On behalf of Spencer Community Schools, Iwould like to thank you and your staff who deliv-ered the school supplies for our students. This is avery kind and generous contribution and will beappreciated by many students and parents in thecommunity. Our teachers were also very appre-ciative.Sincerely, Greg Ebeling, Superintendent,Spencer Community School District

n Dear ILEC,Thank you so much for your very generous

donation to Teen Serve! Your wonderful gifthelped make possible home improvements forthose physically and/or financially unable to doso themselves. You helped make a positive andlasting difference in many lives and many com-munities. Thanks for this gift and all you do allyear to help others.

Sincerely, Todd & Kim Hartsock,Directors, Teen Serve Co-Sponsor Team

n Thank you so much for the weeks stay atCamp Foster! Madison had a great time and meta lot of new friends. She also learned to play theguitar. We really appreciate it!Sincerely, Nancy Harman

n Dear Folks at ILEC,Thank you for the $25 credit for participating

in the Quiz Corner Drawing. You folks are thebest! Kind Regards, Curt Stowell, Pocahontas

n Dear Iowa Lakes Electric Coop,Thank you for sponsoring a Youth Softball

team this summer. Your support of our commu-nity’s youth is an investment in their future and apositive summer activity to participate in.Opportunities such as youth baseball and softballwill give memories that will last a lifetime.

Dave Spurgin, Estherville Parks & Rec

n Dear Iowa Lakes Electric,My name is Brandyn Niemeyer, I am 11 years

old. I live in Zearing, Iowa. I have been showingsheep at Marcus for 5 years. Thank you for spon-soring my ribbons and making it possible to havea Marcus fair. Brandyn Niemeyer

L E T T E R S F R O M O U R M E M B E R - O W N E R S

AUTOMOBILESFor Sale: 1993 Buick LeSabre Limited.Good Condition. 712-838-7762.FARM EQUIPMENTFor Sale: 28” Bin Fan (MFS) 10hp. GoodShape. 712-865-3457.For Sale: Westendorf big bale fork $400.00.Farm Hand small sq. bale fork, can pick up8 small bales, w/Westendorf quick attachbrackets $500.00. 712-272-4243.For Sale: 510 JD Disk Ripper, 60’6” roofauger, 20’8” roof auger. 712-262-7410 or712-260-3273.For Sale: Sukup Guidance System, 315-784-5554.For Sale: 8’ Lundell 3 pt hookup snowblower; 9hp Briggs and Stratton Versatile35’ truck auger; 518 Oliver trip bottomplow. 712-848-3955.For Sale: Pony or horse drawn buckboard.Excellent shape—4 new car tires. $575.00OBO 712-848-3175.

For Sale: Old John Deere 3 bottom plowand hay rake, old wooden flat bottomwagon, 10 old barn doors, old pick axe,hand saws, yoke, milk can, bale hooks, &post hole diggers. 712-262-3753.For Sale: 20’ Gooseneck trailer, 4 new tires$1,500.00 0B0. 712-848-3175.For Sale: Horse drawn 2 seat buckboard.Wooden spoke wheels w/rubber rollerbearings and brakes. A-1 condition$2,500.00. 712-848-3175.For Sale: 18’ x 5” Auger—$75. with hop-per—$100.; 3 pt. fast hitch CAT.II—$125.; 2miles Barb Wire #80. 712-732-6218.RECREATIONFor Sale:1990 18’ Forester Boat w/walkthru bow. Ski tripod, 2 wells & seat struts,2001 4 cyl Merc 115 outboard motor, trail-er, am/fm radio. $4,500.00. 712-858-4464.For Sale: 1981 Harley Davidson SuperGlide, great condition. $8,000. 712-262-9238.

PETSFor Sale: Mitten Kittens. 712-330-7354.COLLECTIBLESFor Sale: Collection of model railroadingcars, structures, videos, magazines 712-368-4653 after 6pm.LIVESTOCKFor Sale: Reg. 7 year old paint mare. Broketo ride & drive. $2,000.00 OBO 712-848-3175.For Sale: 2 year old paint stud, gentle, hal-ter broke. $800.00 OBO 712-848-3175.CONSTRUCTION MATERIALSFor Sale: 4x4, 2x6, and other assorted treat-ed lumber sizes. 14-6 1/2’ T Steel, 3-6x8’wooden posts, 7-5x6’ posts. 712-209-2806.For Sale: 500 gallon Propane Tank. 712-732-4530.FARM PRODUCTSFor Sale: Grass hay in small, square bales.Stored inside. 712-225-5811 mornings orleave message.

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702 South 1st St.• Estherville,IA51334

INDICIAHERE

QUIZ CORNER

1. What is the rebate dollar amount Iowa Lakes is offering during compact flourescentlightbulb campaign?________________________________________________________________

2. What percentage of Corn Belt Power Cooperatives generation comes from renewable sources? ______________________________________________________________

3. How do you know when your monthly payment is due? __________________________

Name ______________________________________________________________________________

Account Number ____________________________________________________________________

Iowa Lakes draws four lucky memberseach quarter who will receive $25 creditstowards their electric bills. This month’s$25 winners were:Donald Wiese, LarrabeeCheryl Purvis, NewellCharles Hertzke, LakotaHelen Ames, Meriden

Please mail your completed Quiz Corner forms by the 15thof the month prior to the next quarterly publication. Thequarterly newsletter is published in February, May, Augustand November.

!ILEC OFFICE BUSINESS HOURS:8 a.m. to 5 p.m. (Mon- Fri)Contact Iowa Lakes 24hrs./ day, 7 days/week withthe following toll-freenumbers:

Customer Service:(800) 225-4532(712) 362-7870(Primary and Emergency)

Internet Services: Sales (800) 225-4532Tech Support: (888)-326-5192

Customer Services Fax: (712) 362-2819

Call Before You Dig:Iowa One-Call(800) 292-8989

Visit Us Online:www.ilec.coop

E-Mail: [email protected]

Editor: Tresa Hussong

CONSUMER ALERT - BEWARE OF SCAM

Iowa Lakes Electric Cooperative warns consumers to beware of scams preying on the fears of risingenergy costs. Consumers need to ask manufacturers of energy-saving products to prove than anevery-saving opportunity exists for you, prove that the technology actually works and prove that thetechnology is cost effective compared to competing products. Get the documentation in writing;reliable companies are more than willing to share the information. Ask for testimonials from othercustomers and do not be afraid to ask companies you trust for their opinion of the product.