Three solar projects/programs coming soon

A BIMONTHLY PUBLICATION OF MIDLAND POWER COOPERATIVE WWW.MIDLANDPOWER.COOP | SEPTEMBER 2016

Inside this issue...Community donation . . . . . .2

Building electric rates . . . . .2

A message from CEO Bill McKim . . . . . . . . . .3

Low income energy assistance information . . . . .3

Use less energy during peak hours . . . . . . . . . . . . .4

RECare program info . . . . . .4

PRSRT STDU .S . Postage

PAIDPermit No . 21 Iowa Falls, IA

50126

Blair joins Midland team

Kolby Blair joined the Midland Power team in late June as an apprentice lineman in Boone.

Blair grew up in Rockwell City, Iowa, and attended line school in Trenton, Ga.

When he’s not working, Blair enjoys fishing, kayaking and pretty much anything outside.

Welcome Kolby!

Kolby Blair

If you primarily heat and cool your home with electricity and participate in the electric heat rate program, please note the winter rates will become effective for heat meters on October 1.

Most heat pumps are eligible for a special electric heat rate if they are used to heat and cool the majority of the residence; placed on a separate meter; and there are no other incentives or discounts being applied to that meter. Please read on to learn more about heat pumps.

Heat pumps heat a residence during winter and cools the residence in summer, trimming overall home heating and cooling costs by as much as 40 percent, according to the U.S. Department of Energy (DOE).

A properly installed heat pump system can deliver value to your home. If you would like more information about heat pumps, please contact the co-op at (800) 833-8876 or (515) 386-4111.

Winter heating rate begins Oct. 1

1 Community solar program to become available to Midland Power members

Midland Power is finalizing the details of a community solar program to be made available to members later this year. The cooperative is planning to construct a 147 kW solar array at its Iowa Falls service center. Members that purchase a subscription to the program will receive bill credits equal to a percentage of the monthly amount of production of the facility and the number of subscriptions they’ve purchased. At the launch of the program, 524 module subscriptions will be available. Should the cooperative receive substantial interest in the program, up to two more 147 kW sites will be constructed in the Midland Power service territory. This will be a great way for members to support a solar program without having to purchase, install and maintain their own solar generation facility. Watch for more details of this program in the November newsletter.

2 New business to offer solar systems

In a cooperative effort to best serve our members, Midland Power is partnering with other rural electric cooperatives to

form Iowa Choice Renewables, LLC. This organization will fill a void for members or others wanting to own solar generation or learn more about energy choices by providing reliable, fact-based alternative energy options.

Iowa Choice Renewables has been developed to offer services that complement traditional electric utility service. A turn-key solar package will be available, allowing for potential cost savings and involvement in renewable energy. By utilizing Iowa Choice Renewables’ services, electric cooperative members can maintain a touch point with their local cooperative to ensure that they purchase a safe and affordable renewable energy system to satisfy their energy needs. Watch for more details of this program in the November newsletter.

3 Solar being added to wholesale generation mix

Earlier this year, Midland Power announced it was partnering with Central Iowa Power Cooperative (CIPCO) to launch a new generation solar facility in Boone County. This project has been put on hold due to some regulatory and administrative issues, however, we hope to see the project move forward in 2017.

Want to learn more about solar?If these upcoming projects and programs

have you interested in learning more about solar, check out the Iowa Energy Center’s Solar PV Energy Guide. A PDF of the guide can be found at www.midlandpower.coop, or you may request a printed version at our office or by phone at (800) 833-8876.

Three solar projects/programs coming soon

Fun at the 2016 Farm Progress Show

Midland Power Cooperative joined other electric co-ops to host the Rural Electric Cooperatives of Iowa exhibit at the 2016 Farm Progress Show near Boone, Iowa, Aug. 30 — Sept. 1.

We were able to talk with many members at the show. Common topics of discussion at our exhibit included electric safety, energy efficiency and lighting, renewable energy, and regulatory concerns.

More than 700 electric cooperative members from 32 electric co-ops in Iowa registered to win prizes at our exhibit. We were also visited by people from at least 17 other states as well as some international show attendees.

Show attendees registering for prizes. Balloon in flight over show.

FARM PROGRESS SHOW PRIZE DRAWING WINNERS:R-M Distributors, Vail, Iowa, won the generator. H and L Clausen Farms of Pocahontas, Iowa, won the freezer. The three winners of MECO Lock and Go Grills were Darrel Kirsch, Wesley, Iowa; Brenda Keppler, Strawberry Point, Iowa; and Chris Praska, New Hampton, Iowa. The six $50 VISA gift cards went to Carolyn Wuerzburger, Keiths-burg, Ill; Carolyn Stundebeck, Salisbury, Mo.; Leroy Robinson, Storm Lake, Iowa; Carolyn Ross, Odgen, Iowa;

Caleb Van De Stroet, Ames, Iowa; and Nick Girres, West Bend, Iowa!

Linemen show the dangers of using tall equipment near overhead power lines during a high voltage safety demonstration at the Farm Progress Show.

The Energy InsiderPAGE 2 September 2016

Building electric rate structures

Bicycle winner Tyce Jass with Midland Power’s Dan Olson.

Congratulations to Tyce Jass, the winner of the bicycle drawing at the Iowa Falls member open house, and Isaiah Ruter, the bicycle winner from the member event/annual meeting in Boone.

Here they are receiving their new bicycles with Midland Power’s local member service representatives.

Drawing winners receive bicycles

Jass ready to roll with his new bicycle and helmet.

Ruter on his new bike with Midland Power’s Roger Hammen.

Isaiah Ruter selecting his new bike and helmet with the assistance of Ronn at Skunk River Cycles, Ames.

Concern for community

True to the cooperative principle of Concern for Community, numerous Midland Power employees donated cash or supplies for the 2016-2017 school year. Employee efforts were combined with a matching donation by the cooperative

to contribute more than $500 worth of supplies to the local school district through a donation drive coordinated by New Opportunities.

Thanks to all of the employees that contributed to this program.

From left, Midland Power employees Colleen Radebaugh, Angie Sabus, Kim Wright, Colleen Newell, and Kara Boyle pose with New Opportunities’ Teresa Lansman and some of the supplies donated by Midland Power and its employees. Additional non-pictured employees also made school supply donations.

COMMON RATE CLASSES AT MIDLAND POWER COOPERATIVESINGLE PHASE THREE PHASE SPECIAL USES

Residential, farm, or small commercial (small-to-average energy consumption) - This is the most basic rate for electric service from Midland Power and it is used by the majority of accounts .

Three phase - This rate applies to accounts that require three phase electric service and infrastructure to meet their electric needs, usually large farms and commercial facilities .

Heat rate - A special rate for homes and small businesses that heat (and cool) with electricity that is separately metered .

Residential, farm, or small commercial (larger energy consumption) - This rate applies to those that have basic service, but use a lot more power to support their small business or farm or larger household needs .

Demand/Energy rate - This rate applies to accounts that demand a lot of electricity at moments in time that require the co-op to build the capacity to meet their demand, including production, manufacturing facilities, and some farming operations .

Wholesale electric costs to increaseMidland Power has been working on its cost of

service study and is planning to implement rate changes January 1, 2017, with the intent to keep the residential rate class revenue neutral. However, your co-op has recently learned that its wholesale costs will increase after Nov. 1. While this won’t impact the rate structures that are being set by your co-op, it will mean that wholesale power cost changes will continue to be passed on to members in the energy adjustment charge (EAC) on monthly bills.

Our wholesale power supplier is working to reduce expenses, re-tool existing coal generation facilities, and invest in additional wind generation to better compete in the marketplace and meet new regulatory requirements. Your co-op continues to work to find cost saving measures and manage controllable costs to keep rate increases to a minimum — all while maintaining the distribution system to keep our electric service reliable. The 2013 merger with Humboldt County REC is one action taken to keep members’ rates stable and delay rate increases for the membership. As a not-for-profit cooperative governed by a board of fellow co-op members, we strive to provide reliable service at affordable prices. Additionally, Midland Power offers energy efficiency programs and encourages members to use electricity efficiently to help manage their electric bills.

It is a complex process to analyze operating expenses and capital expenditures, and then determine how to cover them with electric rate classes and cost categories. For major rate changes, Midland Power Cooperative hires a consultant to conduct a cost of service study. The study assigns costs by rate class and cost category (see table below and on page 3) and determines how much revenue the

cooperative needs to cover costs and minimize service interruptions.

The goal in defining a rate structure is to generate sufficient revenue and reflect the cost of providing service, while keeping it as simple as possible for our members. Every time we adjust rates, we strive to keep changes to a minimum.

Eating carrots will greatly improve your eyesight, cracking your knuckles leads to arthritis, watching too much TV will harm your vision. We’ve all heard the old wives’ tales, but did you know there are also many misconceptions about home energy use? Don’t be fooled by common energy myths.

Myth: The higher the thermostat setting, the faster the home will heat (or cool).

Many people think that walking into a chilly room and raising the thermostat to 85 degrees will heat the room more quickly. This is not true.

Thermostats direct a home’s HVAC system to heat or cool to a certain temperature. Drastically adjusting the thermostat setting will not make a difference in how quickly you feel warmer. The same is true for cooling. The Department of Energy recommends setting your thermostat to 78 degrees during

summer months, and 68 degrees during winter months.

Myth: Opening the oven door to check on a dish doesn’t really waste energy.

While it can be tempting to check the progress of that dish you’re cooking in the oven, opening the oven door does waste energy. Every time the oven door is opened, the temperature inside is reduced by as much as 25 degrees, delaying the progress of your dish and, more importantly, costing you additional money. If you need to check the progress of a dish, try using the oven light instead.

Myth: Ceiling fans keep your home cool while you’re away.

Many people think

Don’t be fooled by energy myths

MYTHS » PAGE 3

cost of doing business, we anticipate that our rate structure will need to evolve to better reflect these shifts in the utility landscape. Although there are a wide array of rate structures to be found in the electric utility industry, they generally have four components (shown above).

According to our 2011 cost of service study, our access charge for residential accounts should be approximately twice as much as they currently are. Consequently, our current study is taking a close look at these charges and there is a possibility of raising this charge to better reflect the costs associated with this charge. Because our current access charge is artificially low, the unrecovered costs in this area are being

added to the energy charge. Should access charges be raised, in a revenue neutral situation energy charges would be lowered proportionally.

Overall, analyzing rates and correctly allocating costs is a complex process. Appropriately, the board of directors and staff continue to proceed through this process in a judicious and thoughtful manner, and with the following objectives:

• The cooperative will implement rates based on a cost-of-service study per-formed by an expert in this field.

• Rates should be structured to collect the co-op’s fixed costs through monthly fixed charges and the co-op’s energy

costs through energy charges.• Costs should be allocated to those

rate classes that create the costs for the co-op.

• Rate subsidies should be kept to a minimum.

• All members should provide a margin to the system.

We end where we began, with a focus on you, the member. The cooperative was formed with the purpose of empowering our members to improve the quality of their lives through reliable and affordable power. Accordingly, any changes made to the cooperative’s rate structures will be made with that purpose in mind.

Working to provide reliable, affordable energy

One of the best parts of managing an electric cooperative is the ability — indeed the responsibility — to focus on providing absolutely the best possible service at the lowest possible cost to the customer – you, the member of Midland Power. In my prior position in the direct marketing industry, that focus wasn’t always the case, as often the number on the bottom line became more important than the customer.

Over the past year or so I have mentioned that your board of directors and Midland Power’s staff have been working with a consultant on a cost of service and rate study. The focus of these studies has been to analyze Midland Power’s rate structures to ensure that they properly reflect the co-op’s costs and support the co-op’s revenue needs. It is at this point that our focus on keeping the business financially stable on behalf of all members and our efforts to provide safe, reliable service at the lowest possible cost, intersect.

Given the numerous changes impacting the electric utility industry and the rising

The Energy InsiderSeptember 2016 PAGE 3

By Bill McKim CEO, Midland Power Cooperative

MYTHSCONTINUED FROM PAGE 2

this is true. Ceiling fans cool people, not rooms. Ceiling fans circulate room air but do not change the temperature. A running ceiling fan in an empty room is only adding to your electricity use. Remember to turn fans off when you’re away and reduce your energy use.

Myth: Reducing my energy use is too expensive.

Many consumers believe that reducing energy use requires expensive up-front costs, like purchasing new, more efficient appliances or construction upgrades to an older home. But the truth is, consumers who make small changes to their energy efficiency habits, such as turning off lights when not in use and sealing air leaks can see a reduction in energy consumption.

Remember, energy efficiency doesn’t have to be difficult. Focus on small changes to save big. Learn more about ways to save energy by visiting www.midlandpower.coop.

During harvest season, many farmers reap the benefits of advancement in agricultural technology. With the help of GPS auto-steer devices, farmers are able to decrease driver error and maximize productivity. Yet despite these advances, safety risks remain. To help farmers stay out of harm’s way, Safe Electricity shares tips for a safe harvest.

GPS with auto-guidance provides farmers with real-time location data about a field, which can be used for crop planning, map making, navigation assistance and machinery guidance. During harvest, this technology allows drivers to have their hands off the steering wheel as the combine maneuvers itself through the

field. Thanks to this technology, farmers can more easily and efficiently maintain accuracy even during low-light conditions, which enhances productivity.

In equipment with auto-guidance systems, less focus is needed on steering, which may lead some drivers to think that they do not need to be as aware of navigation issues. However, even while using a GPS with auto-steering, farm workers need to keep safety in mind and stay focused on their surroundings.

Putting safety first requires alertness, focus and knowledge of potential hazards and safety steps. Varying pass-to-pass accuracy levels and potential issues, such as power poles not being correctly plotted in

the system, reinforce the need for drivers to stay focused on the location of the farm equipment while in the field and to be ready to take action if necessary.

Regardless of the technology used on the farm, keep the following electrical safety guidelines in mind: • Use a spotter when operating large

machinery near power lines.• Keep equipment at least 10 feet from

power lines—at all times, in all direc-tions.

• Look up and use care when moving any equipment such as extending augers or raising the bed of grain trucks around power lines.

• Inspect the height of farm equipment

to determine clearance.• Always set extensions to the lowest set-

ting when moving loads to prevent con-tact with overhead power lines. Grain augers should always be positioned horizontally before being moved.

• Never attempt to move a power line out of the way or raise it for clearance.

• Contact the co-op if a power line is sag-ging or low or a new driveway has been placed beneath the lines.

If your equipment does make contact with a power line, do not leave the cab. Immediately call 911, warn others to stay away and wait for the utility crew to cut the power.

For more information on electrical safety, visit SafeElectricity.org.

Stay focused on safety during the harvest

COST CATEGORIESENERGY CHARGE

(KWH)DEMAND (CAPACITY)

CHARGEENERGY ADJUSTMENT

CHARGE (EAC)ACCESS (FACILITIES)

CHARGEFor a distribution

cooperative like Midland Power the primary source of this cost is the variable (energy) portion of our wholesale power costs. Each member pays a certain amount on a per-kilowatt-hour (kWh) basis in their respective rate class. For smaller accounts, a portion of the Demand charges are incorporated into the energy bill.

These charges are primarily itemized to member accounts that require larger amounts of electricity. Given the size of these accounts, they require greater infrastructure investments, such as bigger wires, transformers and breakers. Overall, Demand-related expenses are attributable to investment-related costs such as substations, poles, wires and transformers.

The EAC is a pass-through charge or credit applied to your monthly bill exclusively due to fluctuations in the wholesale power costs charged to Midland Power. Revenues from the EAC are not retained by Midland Power; they are paid to our wholesale power suppliers.

This is a flat monthly charge that represents the fixed costs of making electric service available to your meter. The amount you are charged is reflective of the type of service you are receiving and doesn’t fluctuate based upon the amount of energy (kWh) that you use. Generally, this charge covers a portion of expenses such as the cost of meters, customer accounting and billing, and your service entrance.

The Energy InsiderPAGE 4 September 2016

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: [email protected]

Facebook: www.facebook.com/midlandpower

Bill McKim, CEO

Bruce Keeney, VP of Operations

Norm Fandel, VP of Business Development & Member Services

Jeff Brophy, VP of Finance

Board of Directors: Earl Check, Randy Christensen, Michael Coleman, Charles Gilbert, Paul Heineman, Tom Ingebritson, Kim Rinker, Tom Ross, Jack Runge, Joel Skow, Rick Thompson, James

Weigel

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 [email protected].

Midland Power has always extended a helping hand to people in need. That’s why we have established RECare, a program of members helping members.

You can help those in need to weatherize

their homes and pay winter heating bills. If you are interested, please complete and return this form to our office.

Any amount you give will be greatly appreciated!

RECARE CONSUMER AUTHORIZATION FORM - Yes, I want to contribute to RECare.

____ I will make a one-time contribution to RECare. My check is enclosed.____ I will contribute $________ per month for ________ months to RECare. I understand this amount will be automatically added to my monthly electric bill.

Name: _______________________Signature:________________________

Address: ___________________ City: ______________ State/Zip: ________Please mail to: RECare, Midland Power Cooperative, PO Box 420, Jefferson, IA 50129-0420

Extend a Helping Hand with RECare

Peak hours are the busiest times for your local electric cooperative, since many people are using electricity at the same time. In addition, it costs more to generate electricity when demand soars during peak periods—and the cost of your electricity also may rise. Obviously, using less electricity during peak periods can save your co-op—

and you—money. Here’s how you can help during peak

hours, which generally are on the coldest winter days between 4 p.m. and 9 p.m.:

• Shift household chores and activities away from peak periods. Wait to run your dishwasher until you go to bed, for instance.

• Use the most energy-efficient applianc-es you have. Your microwave oven, for example, uses considerably less energy than your stove or cooktop.

• If you’re buying a new appliance, make sure you get a highly efficient one.

Look for “Energy Star” labels when you’re evaluating different models.

• Be aware of your energy consumption, and try to get in the habit of using energy efficiently year round.

Use the energy you need, but use it wisely! You’ll help your co-op avoid building expensive new power plants—and that, in turn, will help keep your electric rates stable.

Reduce energy use during peak hours

If you have a gasoline or liquid propane (LP) tank located on your property, you should always be concerned about its safe operation.

The image above shows the recommended locations for a gas or LP tank from a meter pole.

Maintaining safe distances will help to prevent fuel vapors from collecting in the conduit or electrical box. If fuses were to blow or an electrical arc to occur, a lethal explosion could result. Contact your local electric cooperative if you have any questions or need more information.

WHEN TO APPLY: Elderly (60 & over) and/or disabled:

October 1, 2016 to April 30, 2017 All other households:

November 1, 2016 to April 30, 2017

WHAT TO TAKE: Proof of Income (for all household members age 19, and

over) Most recent 3 months' check stubs, award letter from Social Security or 2015 tax return

Social Security numbers for all household members (documentation required)

Recent heat bill Recent electric bill

WAGE EARNERS: Please bring copies of your check stubs for the three-month period preceding the date of application, or a copy of your federal income tax return. FIXED INCOME: This income may include: Social Security Benefits, Supplemental Security Income, Family Investment Program, Veteran's Assistance, Unemployment Insurance, and pensions. Please bring copies of your most recent 3 months' check stubs. SELF-EMPLOYED/FARMERS: Please bring a copy of your most recent federal income tax return. FIP RECIPIENTS: Please bring your current DHS Notice of Decision or contact your local office for acceptable document information.

If you receive alimony or child support, it will also need to be verified.



















ATTENTION: RESIDENTIAL CUSTOMERS NEED HELP WITH YOUR HEATING BILL?

The 2016-2017 Low-Income Home Energy Assistance Program (LIHEAP) has been established to help qualifying low-income Iowa homeowners and renters pay for a portion of their primary heating costs for the winter heating season.

The assistance is based on household income, household size, type of fuel, and type of housing. If you are not sure where to apply, please write to:

LIHEAP Iowa Department of Human Rights Capitol Complex Des Moines, IA 50319

or, call your local community action agency.











INCOME MAXIMUMS Household Three Month Annual

Size Gross Income Gross Income 1 $5,198 $20,790 2 $7,009 $28,035 3 $8,820 $35,280 4 $10,631 $42,525 5 $12,443 $49,770 6 $14,254 $57,015 7 $16,069 $64,278 8 $17,889 $71,558

For households with more than eight members, add $1,820 / $7,280 for each additional member.







24-HOUR

PAY-BY-PHONE

SECURE

Try our automated 24-Hour Secure Pay-by-Phone system to pay by electronic check or credit card* over the phone

Looking for a way to pay your Midland Power Cooperative bill 24-hours a day, without a computer or mobile device?

(888) 470-4623*VISA, Master Card, and Discover Card accepted for residential accounts.

ATTENTION RESIDENTIAL CUSTOMERS NEEDING HELP WITH YOUR HEATING BILL:ATTENTION: RESIDENTIAL CUSTOMERS

NEED HELP WITH YOUR HEATING BILL? The 2016-2017 Low-Income Home Energy Assistance Program (LIHEAP) has been established to help qualifying low-income Iowa homeowners and renters pay for a portion of their primary heating costs for the winter heating season.























Documents

Three solar projects/programs coming soon