NEWS LINEJUNE 2016Citizens Electric Corporation’s monthly publication

Stable rates in 2016 The Annual Meeting of Shareholders

for Citizens Electric Corporation (CEC) was held on April 28 at

its headquarters in Perryville. Presenters included Board President Richard DeWilde, CEO Van Robinson, and Jeff Conrad of Wabash Valley Power Association. 

Rates expected to be stable in 2016Given that power supply costs represent

three-fourths of CEC’s expenses, member rates are very dependent on Wabash Valley’s costs to generate and transmit power to CEC. Th anks to Wabash’s diverse power supply portfolio and low prices for fuel and purchased power, CEC expects rates to be stable and does not anticipate a rate increase for 2016.

Retiring $2 million of capital creditsCEC will disperse $2 million in capital

credits in 2016. Th is represents 71% of 1994 capital credits and will be returned to members who purchased electricity from CEC in that year.

At the end of each calendar year, Citi-zens Electric calculates its margin, which is the amount by which revenue exceeds expenses. Margins are then allocated as “capital credits” to each member based on

the amount of electricity they purchased throughout the year. When the Citizens Electric Board of Directors determines it is fi nancially feasible and prudent, and when the fi nancial requirements of our lenders allow, capital credits are retired. In the interim, CEC uses the allocated, but unre-tired, capital credits to improve and expand the electric system and meet other capital needs. Th is reduces the need to borrow money and helps provide reliable electric

service.     Th is August, you will see the retirement

on your bill next to the line item, “Capital credit retirement,” or you will receive a check if you are no longer a member. To help ensure you receive your retirement, please provide CEC your current address if you leave the area or otherwise discontinue service.          

Capital credits benefi t all co-op members

• EPA is confi dent that the new ENERGY STAR lamp specifi -cation (Lamps 2.0) will deliver on the consumer experience with high quality, lower cost ENERGY STAR-certifi ed LED products entering the market in the near term. Manufactur-ers are already busy certifying to the new specifi cation with products estimated to be available as early as June. Th e new criteria has slightly higher effi cacy requirements allowing for some additional energy savings.

• ENERGY STAR specifi cations are established through a public process creating a level playing fi eld for all participat-ing manufacturers. Th e program does not arbitrarily pick winners and losers based on perceived reputation but rather relies on independent, third-party certifi cation to determine eligibility.

• ENERGY STAR criteria are designed to deliver a quality consumer experience to ensure that energy effi ciency comes

with no sacrifi ce in performance or features—avoiding the pitfalls associated with the early consumer experience around CFLs.

• ENERGY STAR criteria balance market realities such as cost versus quality, and consumer payback, as well as ensur-ing adequate product availability from multiple manufactur-ers. Th e product lifetime requirement is a critical element in this balancing act (i.e., you jeopardize the quality of the entire lamp when the lifetime is reduced past a certain point.)

• ENERGY STAR certifi cation off ers other assurances to the public and our utility partners.  All products are inde-pendently certifi ed based on testing in EPA-recognized laboratories and a sample of products is verifi ed “off -the-shelf ” annually. From a utility program perspective, this reduces key uncertainties regarding whether products are delivering on energy performance. It is evident from the annual Consortium for Energy Effi ciency (CEE) awareness survey that consumers appreciate and recognize the value ENERGY STAR off ers. ENERGY STAR-labeled light bulbs receive statistically higher satisfaction ratings compared to non-qualifi ed bulbs.

Members of Citizens Electric listened to reports during the Annual Meeting of Shareholders in Perryville. CEC holds a meeting each year to inform members about the corporation and vote on by-law changes and members of the CEC Board of Directors.

Why Energy Star?More than just a logo, Energy Star is a guarantee of quality

SEE MEETING PAGE TWO

Returning $2 million of capital credits this summer

NEWS LINE PAGE 2

Only Make Payments at Authorized SitesMake sure you are on the right site before entering your information

When you pay online, be sure you are on Citizens Electric’s o� cial website. � ere are many third-party websites who will collect utility payments. What they are doing is technically legal, but don’t be fooled, they are not a� liated with Citizens Electric. � ese sites will charge you extra fees to submit your payment. � ey will then mail a check on your behalf, and it will o� en take several days to reach CEC to be processed.

Search Bar Vs. Address BarWhen opening a browser, it is important to key in

www.CECMO.com rather than searching for Citizens Electric.

Typical Address Bar Typical Search Bar

• Citizens Electric never charges you to make a payment. If you are being charged, you are not at www.CECMO.com

• Your account balance will be clearly displayed. Citizen Electric will never ask for your balance.

• All payments made at www.CECMO.com will be made in ‘real-time’, there is never a delay. If the you are noti� ed that it could take several days to process, then you are not at www.CECMO.com

Spot the Differences

Member Services1500 Rand AveP.O. Box 368Perryville, MOwww.CECMO.com

Offi ce: 877-876-3511Email: citizens@cecmo.com Citizens Electric Corporation is an equal opportunity employer and provider

FROM PAGE ONE

Meetingby keeping costs and rates as low as possible. They’re also a fundamental part of CEC’s dedication to the cooperative business principles.

Citizens Electric Board President update

Richard DeWilde provid-ed an update on how capital credits are retired to deceased members, cyber security, and the Environmental Protection Agency’s (EPA) war on fossil fuels.

A 2015 by-law change now makes it easier for family members to have capital credits returned in a lump sum when settling the estate of a deceased member. This removes the chal-lenge of cashing checks for a deceased person and the yearly reminder of a lost love one. 

DeWilde also discussed the importance of protecting mem-ber information and the grid. Citizens Electric takes precau-tions to prevent identity theft of members and works with multiple entities to safeguard the integrity of the electrical system.

While the Clean Power Plan has been put on hold for now, it is important to understand the impact these EPA regulations could have on all Americans. Many industry experts believe that the EPA has overstepped its authority and is threatening the affordability and reliability of the nation’s electric system. As the EPA tries to eliminate the use of coal as a fuel for pow-er production, many reliable coal-fired power plants will be prematurely retired. We expect this to put upward pressure on costs and strain reliability in the future.

Citizens Electric CEO update

Van Robinson reported on

the continued growth of CEC’s infrastructure, member services, and commitment to safety. 

In 2015, CEC continued to replace antiquated conductor, inspect and replace aging poles, and complete loop circuits. Identifying and replacing items that could fail helps to prevent outages and improve reliability. Likewise, the construction of a new substation in the Mill-ersville area will accommodate growth and improve reliability in our southern district. 

With respect to member ser-vices, Robinson discussed the significant growth in prepaid metering. Over 1,000 members are taking advantage of this voluntary payment option and enjoying the convenience of paying by phone, on-line, or via our mobile app at any time.

Robinson also discussed the importance of employee safety and CEC’s new “Commitment to Zero” initiative. The orga-nization and its employees are committed to zero injuries at work and away from work. CEC can’t be productive and provide the service its members deserve if employees aren’t safe and healthy.

WVPA updateJeff Conrad reported on

CEC’s power supplier, Wabash Valley Power Association. Conrad discussed Wabash’s resource portfolio and the fuel mix. While coal still accounts for 57% of the fuel sources, that amount has been decreasing as Wabash continues to diversify.

Conrad also discussed the various programs and services that Wabash provides to CEC members. For example, Wa-bash’s PowerMoves program has paid nearly $1 million to local entities that have invested in energy efficiency upgrades.

Election resultsIncumbents Doyle Oehl,

John Lottes III, and Marion Kertz were re-elected to repre-sent their respective county.