annual meeting79th

WELCOME | YOUR MEMBERSHIP IS APPRECIATED!

BUSINESS MEETINGNational Anthem .................................................... Blaise StreetsInvocation .........................................Senior Minister Randy Kirk

First Capital Christian ChurchOpening Remarks/Minutes ..........................................Pat BookOfficial Meeting Notice/Quorum .............................David PoeElection Report/Vote ...................John Colin, REMC AttorneyFinancial Report Joe Boesing, CPA

Monroe Shine and Company, Inc.Manager’s Report ..........................................................David LettElection Results .............. Credential and Election CommitteeClosing Remarks ...............................................................Pat BookDrawing for Prizes ...................................................Bob Geswein

ENTERTAINMENTNashville recording artist Blaise StreetsBOOTHS ARE OPENLOCATED ON THE MAIN FLOOR NEAR THE CONCESSIONS

Member QuestionsEnergy EfficiencyHealth Screenings

5:30 - 7 p.m. 6:30 - 8 p.m.CHILDREN’S PROGRAMLOCATED IN THE AUXILIARY GYMNASIUM (ACROSS THE HALL FROM THE REAR ENTRANCE OF THE MAIN GYMNASIUM)

Activities for children ages 3-10.Supervised by REMC employees and student volunteers. Parents/guardians must sign in their children and pick them up from the same location at the conclusion of the meeting.

7 - 8 p.m.BUSINESS MEETINGLOCATED IN THE MAIN GYMNASIUM

DIRECTOR ELECTIONS

DRAWING FOR DOOR PRIZES

TUESDAY APRIL 4, 2017 Corydon Central High School

Annual Meeting Agenda Registration takes place from 5:30 - 7 p.m.

PERFORMANCE BY

Blaise Streets

In MemoriamCharles BookDirector and past board chairman. Served the REMC from 1971-1998

Ron SimpsonCorporate Attorney Served the REMC from 1990-2015

Mission Statement of Harrison REMCThe mission of Harrison County R.E.M.C. is to provide a well-informed membership with superior, competitively priced, electric and member related member service(s), accomplished by highly trained, committed employees. It is further the mission to improve the

quality of life of the member owners by promoting community, economic development and energy efficiency activities.

www.harrisonremc.com

Karen Albin (26 years)Member Services RepresentativeKyle Armstrong (5 years)LinemanBilly Baelz (18 years)LinemanHeather Balentine (1 year)Accounting AssistantTimothy Bland (1 year)LinemanRob Blank (25 years)LinemanRodney Brewer (12 years)Information Systems CoordinatorNolan Brightman (2 years)3rd Year ApprenticeJustin Bussabarger (7 years)LinemanBob Casabella (1 year)Information Systems Specialist Rodney Cecil (24 years)Working ForemanDixie Cockerell (19 years)Work Order/Material RepJerry Crosier (21 years)LinemanJean Dean (15 years)Member Services RepresentativeGary Eiler (44 years)Meter TechnicianJason Flock (19 years)Staking EngineerPerry Fraze (18 years)Field Services ManagerBrandon Gentry (10 years)Meter Technician Bob Geswein (22 years)Energy AdvisorLindsey Hardsaw (2 years)Member Services RepresentativeRebecca Hughes (1 year)Accounting AssistantCody Hussung (1 year)GIS Mapping Technician Kody Kennedy (2 years)3rd Year ApprenticeDebbie Koenig (24 years)Member Services RepresentativeRoy Leffler (18 years)Lineman

David Lett (32 years)CEOKeith Lieber (3 years)Accounting ManagerJeanne Melton (43 years)Member Services RepresentativeSteven Moore (9 years)Business ManagerClayton Nix (3 years)3rd Year ApprenticeBrandon Pace (1 year)Logistics TechnicianSara Perkins (1 year)Member Services RepresentativeCathy Racicot (10 years)Communications ManagerGlenn Reas (14 years)LinemanSteve Saltsgaver (14 years)Staking EngineerRandy Schoen (21 years)LinemanBob Sharp (7 years)LinemanGreg Smith (37 years)Lineman Deneen Stewart (4 years)Executive AssistantKim Stewart (20 years)Member Services RepresentativeJoseph Stilger (3 years)3rd Year ApprenticeRyan Strohbeck (4 years)System EngineerJustin Swarens (1 year)Operations-Administrative Technology ManagerKyle Voyles (1 year)3rd Year ApprenticeJim Walter (24 years)Operations Construction ManagerPriscilla Whitman (19 years)Member Services Representative Jason Windell (5 years)Working ForemanDeanna Zollman (30 years)Member Services Representative

HARRISON REMC Employees

The meeting was called to order on Tuesday, April 5, 2016, at 7 p.m. following the National Anthem performed by Susie Eastridge. Pastor Paul Greer from Trinity Assembly of God Church provided the invocation. President Book welcomed everyone in attendance and thanked them for coming. He introduced the REMC Board of Directors and recognized Jim Smith for his 33 years of service to the cooperative.

Secretary-Treasurer Jim Smith reported that a notice of the annual meeting was mailed to each member of the cooperative as shown on the co-ops records. He also reported the REMC bylaws require 2% of members be present to conduct business. Mr. Smith acknowledged there were more than the required members present tonight.

President Book asked if there were any objections to the acceptance of the 2015 Annual Meeting Minutes as printed on the back page of tonight’s program. There being no objections, the minutes were approved. President Book then introduced the corporate attorney, John Colin.

Attorney Colin stated this was his first annual meeting as the corporate attorney for the REMC. He then recognized Ron Simpson for his past 25 years of service as the corporate attorney for the REMC. Mr. Colin informed the membership that the REMC is guided in the conduct of its corporate affairs by the Indiana REMC Act, the Cooperative’s Articles of Incorporation and the bylaws of the cooperative. This year we will be electing directors from Districts 2, 3, and 6 for three-year terms. To be eligible for membership on the board of directors, a candidate must have been a bona fide resident of the district in which he or she stands for election and must remain a resident of that district during his or her term. Other eligibility requirements apply and are available online or upon request.Attorney Colin then described the appointment of the Credentials & Election Committee and introduced said members. Mr. Colin then introduced the candidates:

• District #2 is Pat Book• District #3 is Brian Koetter• District #6 is Gordon Ingle and Craig

Engleman

There were no petitions received to oppose the incumbent for District 2 and 3. Mr. Colin then called for the vote. The Credentials & Election Committee collected the votes.

Jim Smith introduced Joe Boesing, partner with Monroe Shine & Company, Inc., who presented the Financial Report. After the Financial Report concluded, President Book stated that the Treasurer’s report be accepted as printed in tonight’s annual meeting program, unless there was an objection from the floor. No objections were made so the Treasurer’s report was accepted. President Book then introduced David Lett, CEO to deliver the Manager’s report.

Mr. Lett, thanked everyone for attending the Annual Meeting and recognized those members over 90 years of age. He informed the membership that during the past year, Barbara Bullington, Frank Crosier and Chuck Seitz retired from the REMC. He went on to thank the retirees for their years of dedicated service, and wished them the best in their new endeavors.

A video prepared by Hoosier Energy and Harrison REMC was played that covered today’s electric energy environment and detailing some of the programs offered by your REMC.

Mr. Lett stated that 2015 marked a special year in REMC history. With its 45 employees, the REMC staff worked approximately 85,600 work hours without recording a single hour of time lost to an injury.

Mr. Lett then introduced Tom VanParis, the CEO of Indiana Electric Cooperatives. Mr. VanParis shared a little about how Indiana Electric Cooperatives benefits Harrison REMC and other electric cooperatives in Indiana.

Mr. Colin returned to the podium at 7:45 and called for the election results, which were presented by Robert Harmon, Chairperson of the Credentials and Election Committee. Mr. Harmon certified that the election of directors was fairly and impartially conducted and the following members were elected as directors:

• District #2 is Pat Book• District #3 is Brian Koetter• District #6 is Craig Engleman

At 7:47 p.m. President Book gave his closing remarks and asked if there was any unfinished business or new business. There being none, the meeting adjourned at 7:48 p.m. Mr. Geswein then came to the podium to draw for door prizes. The event concluded at 8:15 p.m.

Respectfully submitted,JAMES D. SMITH

Minutes78th Annual Meeting

APRIL 5, 2016 AT 7:00 P.M

CORYDON CENTRAL HIGH SCHOOL GYMNASIUM CORYDON, INDIANA

HARRISON

FLOYD

CLARK

CRAWFORD

WASHINGTONORANGE

District 8

District 2

District 7

District 9

District 3

District 5

District 4

District 6

District 1

Harrison

Boone

Heth

Posey

Morgan

Spencer

Taylor

Jackson

Franklin

Blue River

Webster

Greenville

Jennings

Franklin

Lafayette

Georgetown

Wood

Posey

Washington

New Albany

Jackson

Carr

Director DistrictDave Poe District 1Pat Book District 2

Brian Koetter District 3David Walther District 4Darin Duncan District 5Craig Engleman District 6

Todd Uhl District 7Danny Wiseman District 8Roy Zimmerman District 9

WHERE YOUR DOLLAR WENT

IN 2016

Purchased PowerOperating Expense

73% 13%

6%

4%

2%

Depreciation

2%

TaxesInterest Expense

Operating Margins

CONDENSED STATEMENT OF OPERATIONS2016 2015

Operating Revenues $56,801,241 $57,828,107Purchased Power 41,173,119 42,305,388Operating Expense 7,403,460 7,026,608Depreciation 3,358,935 4,171,517Taxes 1,105,961 1,145,560Interest Expense 1,360,663 1,361,625

Total Operating Expense $54,402,138 $56,010,698

Operating Margins $2,399,103 $1,817,409

Other Income and Deductions 606,508 477,929

Net Income from Operations $3,005,611 $2,295,338

Hoosier and Other Patronage Allocations 2,161,163 2,072,603

CONDENSED BALANCE SHEET2016 2015

Utility Plant 94,563,724 91,842,300Accumulated Depreciation (28,906,361) (27,541,769)Investments and Other Assets 28,278,649 28,854,638Current Assets 8,879,913 7,779,166

Total Assets $102,815,925 $98,934,335

Equities 72,226,537 67,911,801Long-Term Debt 22,968,919 23,719,289Current & Other Liabilities 7,620,469 7,303,245

Total Equities and Liabilities $102,815,925 $98,934,335

2,184 MILES OF ENERGIZED LINE 22,749 CONSUMERS 10 CONSUMERS

PER MILE OF LINE

The following individuals are candidates for board seats at the 2017 annual meeting. There were no opposing candidate petitions received from districts 4 and 5.

District 4 David Walther (Incumbent)SPOUSE AND CHILDREN: Sharyn, 1 childOCCUPATION: Owner/Operator, Dave Walther’s Auto/Truck Equipment Services LLCEDUCATION: Lanesville High School, Ivy Tech Graduate, Credential Cooperative Director CertificateORGANIZATIONS: Harrison REMC board member, Lanesville Heritage Weekend, American Society of Agronomy, St. John’s Lutheran ChurchMEMBER OF HARRISON REMC: 39 years

District 5 Darin Duncan (Incumbent)SPOUSE AND CHILDREN: Deonne, 3 childrenOCCUPATION: President/CEO, Civilcon Inc.EDUCATION: South Central High School (1987 Valedictorian), University of Louisville Bachelor of Science in Engineering Sciences and Masters of Engineering in Civil Engineering, Licensed Professional EngineerORGANIZATIONS: Harrison REMC board member, Hoosier Energy board member (past Chairman), Harrison County Regional Sewer District board member, Corydon Rotary Club, ACES Power Marketing board memberMEMBER OF HARRISON REMC: 24 years

District 7C. Todd Uhl (Incumbent)SPOUSE AND CHILDREN: Lisa Crecelius Uhl, 2 childrenOCCUPATION: Owner, Todd Uhl LLCEDUCATION: North Harrison High School, BBA Northwood University, Credential Cooperative Director CertificateORGANIZATIONS: Harrison REMC board member, Harrison County Agricultural Society board member, Harrison County 4-H council member, 4-H Leader for 31 years, Unity Chapel UMC church usher, Indiana State Fair board president, Indiana State Fair Commission member, North Harrison FFA Advisory board, Farm Bureau member, Harrison County Cattleman’s Association memberMEMBER OF HARRISON REMC: 28 years

Eric Wise (Candidate)SPOUSE AND CHILDREN: Kandie, 2 childrenOCCUPATION: Harrison County PlannerEDUCATION: East Carolina University, American Institute of Certified PlannersORGANIZATIONS: Lincoln Hills Boy Scout Troop 4412 committee, Connect Harrison County Inc. board member, Indiana Planning Association, American Planning AssociationMEMBER OF HARRISON REMC: 19 years

Director CandidatesDistrict Map

Audited results as of March 13, 2017.

Cooperatives around the world operate according to a core set of principles. These seven principles, along with the cooperative purpose of improving quality of life for their members, make electric cooperatives different from other electric utilities.

1. Open and Voluntary Membership Open to all without gender, social, racial, political, or religious discrimination.

2. Democratic Member Control One member, one vote. Your voice will be heard.3. Members’ Economic Participation Members democratically control the capital

of the cooperative. The economic benefits of the cooperatve are returned to the members, reinvested in the co-op, or used to provide member services.

4. Autonomy and Independence Cooperatives are autonomous, self-help organizations controlled by their members. Together, you are autonomous.

5. Education, Training and Information Cooperatives provide education and training for members so they can contribute effectively to the development of their cooperatives.

6. Cooperation Among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, regional, national and international structures.

7. Concern for Community While focusing on member needs, cooperatives work for the sustainable development of their communities through policies accepted by their members. We live here, and we work here, too.

The Seven Cooperative Principles

Local Operating Expenses Per Member*National Comparison (5 Year Average)

*Based on national survey data compiled by Construction Finance Corporation Cooperative of other REMCs.

759 REMCs with HIGHER

EXPENSES than Harrison

REMC (93%)

54 REMCs with LOWER

EXPENSES than Harrison

REMC (7%)

Harrison REMC is one of the top co-ops in the nation at keeping costs

low?

9.3¢11.8¢ 12.2¢ 12.5¢ 13.3¢

27.5¢

Louisiana IndianaAverage

Hawaii

Source: US Energy Informa�on Administra�on, h�p://www.eia.gov/electricity/monthly/

Na�onalAverage

RegionalAverage

LOWEST

HIGHEST

HarrisonREMC

2016 Average Cost per kWh Used (Residential)

Employees

Employees

Electric Accounts Member Sales(kWh)

Electric Plant

2006 2016

50 47 21,583 22,749 511 505 $67 $95-6%

decrease +5%increase -1%

decrease+40%

increase

MILLION MILLIONMILLION MILLION

Harrison REMC Statistics (Changes from 2006-2016)

Did you know?