A newsletter for members ofProviding energy for life.Tri-County Electric Cooperative

August 2016

The Trip of a Lifetime77th Annual Meeting of MembersOne-hundred and three high school students participated in Missouri’s 53rd annual

Missouri Electric Youth Tour to Washington, D.C., June 10-16. Local delegate was Sadie Davis of Memphis. Sadie was sponsored by Tri-County Electric Cooperative, in Lancaster.

The seven-day tour provides an action-filled week for high school students, offering them opportunities to learn firsthand what it is like to be involved in politics, leadership positions, community service and today’s pressing issues.

“The Youth Tour is the highlight of the summer for many students and we’re proud to send our best and brightest to Washington, D.C. this year to participate,” said Mike Marsch, director of Member Services for the Association of Missouri Electric Cooperatives.

Highlights included the young people visiting with representatives from their congressional districts and touring famous monuments, the Smithsonian Institution’s museums and Arlington National Cemetery. The group also took a sightseeing and dance cruise on the Potomac River one evening with delegates from other states.

Other events of the week included participation in the Electric Youth Day, during which a special program coordinated by the National Rural Electric Cooperative Association brought together more than 1,600 Youth Tour delegates from across the United States. The delegates enjoyed featured speeches by government leaders and motivational speakers, such as Mike Schlappi, an inspiring four-time Paralympic medalist and two-time world wheelchair basketball champion.

Since 1964, the nation’s cooperative electric utilities have sponsored more than 50,000 high school juniors and seniors for visits to their U.S. congressional delegations, energy and grassroots government education sessions and sightseeing in Washington. For more information about the AMEC Youth Tour program, please go to www.amec.org/content/youth-programs.

Tri-County Electric Cooperative, a member-owned, locally operated, electric utility that serves 6,300 homes, farms and businesses in parts of Northeast Missouri, held its 77th

Annual Meeting of Members on July 7th, 2016. The meeting took place at the Scotland County High School in Memphis, MO.

Approximately 177 members registered at the event and 1,018 cast ballots in the election of directors. During registration, members and their families enjoyed a meal made by Elaine Forrester and the Rutledge School Restoration, then watched a slideshow of the 2015-2016 year.

The business portion of the meeting featured reports from Board President Mark Van Dolah, and General Manager Jane Bahler-Hurt. In addition to these reports Sadie Davis, a senior at Scotland County High School, made a video for the members to enjoy on her recent 2016 Youth Tour trip to Washington D.C.

Members elected the following individuals to represent them for a three-year term on Tri-County Electric’s Board of Directors:

District 3 - Scotland County Eastern Seat: Kenneth (Kenny) McNamar (Incumbent) District 6 - Putnam County: William (Bill) Triplett (Incumbent) District 9 - Adair County: Kelley Church (Incumbent)

At the re-organizational board meeting held after the Annual Meeting of Members, the following officers were elected:

President: Mark Van Dolah Vice President: Harley Harrelson Secretary: David Koch Assistant Secretary: Kelley Church Treasurer: Bill Triplett Assistant Treasurer: Joe Sebolt Other board members include: Melody Whitacre, Kenny McNamar, and Rusty Anders.

Continued on Next Page

Members enjoyed a meal made by Elaine Forrester and the Rutledge

School Restoration while the Scotland

Co. FFA helps serves ice cream

and Pepsi products.

Everyone stands as Cole Tippett sings the National Anthem as

the Scotland Co. FFA completes the posting

of colors.

AECI Representative Glennon Scheid

speaks to a member about how we

generate our power.

77th Annual Meeting of Members Continued...

The cooperative gave out multiple energy certificate credits to registered members. Ten winners were chosen for the Early Bird Drawing, Twenty-two winners for the Regular Drawing and six winners for the Grand Prize Drawing. Two Kindle Fires were given as this years

Kid’s Grand Prize. All winners are listed below:

Early Bird Winners $25 Energy Certificate

Olin Anderson GlenwoodMax & Judith Sloniger LivoniaMary Cassady NovingerJerry Watson MemphisLarry & Rose Aldridge Queen CityCarolyn Durham KirksvilleLennie Doscher MemphisMorris McNabb Queen City Curtis Schmitter DowningRobert Shelley Memphis

Regular Winners$25 Energy Certificate

Marlene Cowell ArbelaChris & Mallory Oliver GlenwoodDanny Norton MemphisElaine Forrester MemphisVirginia Griswold Queen CityGlenwood Housing GlenwoodGilbert Schmitter Queen CityBilly & Janie Wernert NovingerGeorgia Triplett LivoniaJames Kirkham LivoniaEmily Hoffman Kirksville Anne Forry KirksvilleEugene & Lila Spray BaringDavid & Carla Pulliam GreentopJames & Lynette Vassholz MemphisBeverly Shively GlenwoodDavid Kinney Kirksville Richard & Pam Weatherly DowningMichael Small MemphisJanet Hamilton ArbelaKevin Wheeler GlenwoodKenneth Hoover GorinBruce Childress Memphis

Grand Prize Winners$100 Energy Certificate

Morris McNabb Queen CityJimmy & Ina McNary LancasterJames & Lynette Vassholz MemphisJeff & Lacy Gottman GreentopSchuyler Co. Lib LancasterRobert Watkins Lancaster

Kid’s Grand Prize Kindle Fire

Kara Bulen ArbelaMalakai Gates Livonia

Board Director Kenny McNamar (Left) gets a bucket truck ride from Journeyman Lineman Richard Shaw (Right).

Linemen Baylon Belt (Left), Cameron Kirmse

(Middle) and Chisom Darnell (Right) working the Tri-County bucket

truck ride booth.

AMEC representative, Chris Massman speaks

to a Tri-County Member about the Fairness Down

the Lines Campaign which informs the public on how

we use diverse fuel mix to provide members with

reliable power.

Members enjoy a meal made

by Elaine Forrester and the Rutledge School

Restoration.

AMEC Representative, Chris Massman (Left)and Tri-County Board Director, Joe Sebolt (Right), pose for a

photo.

How Much of My Bill is Due to Environmental Measures/Costs?

From the Manager’s desk:

Co-op Connection Deals Participants Area DealColton’s Steakhouse: Kirksville Only $5 off any purchase of $25 or moreLovegreen Ford-Chrysler: Kirksville $5 off an oil change* Plus, buy 4 oil changes* and get the 5th one free. FREE tire inspection with oil change purchase.*Applies to light trucks and passenger vehicles.Smith, Moore & Co: Kirksville Free Portfolio Review / Free Annuity & Life Insurance Review / 50% Commission discount on your 1st stock tradeThe Turkey Roost: Kirksville $25 off any full size turkey mountSubway: Both Kirksville locations Get 1 free 21 oz. drink w/ purchase of footlong sub. One per customer. Payless Shoe Store: Kirksvile 10% off total transactionBlue Sky Ammo: Downing $10 off puchase of gunInternational Eyecare Center: Kirksville/Memphis $10 off comprehensive eye exam; 20% off eyewear (frame and lenses) Not valid with other discounts or insurance.Walker Motors: Memphis Free detail with collision repairKirksville Farm & Home: Kirksville 10% off Carhartt or Under Armour clothing (reg. price)Woody’s Tire Auto & Towing: Kirksville $5.00 off-17 pint trop artic lube up to 5 qt. of trop artic oilCook’s Mens Store: Memphis 20% off reg. price boots/shoes (Red Wing, Wolverine, Justin companies, Rocky, Hush Puppies, New Balance)Depot Inn & Suites: LaPlata 10% off regular room or the meal suiteBellacino’s Pizza & Grinders/TCBY: Kirksville 10% off any menu item of regular priceNancy’s Foot Care: Memphis 1 Hour Reflexology Sessions Get One FreeKJ’s Boutique: Kirksville 20% off any $25.00 or more purchase (excludes Wewood watches) Visit www.connections.coop for all the discounts

For those of our members who were unable to attend our 77th Annual Meeting of Members, I would like to share with you a vital part of my report:

Though Tri-County has made tremendous strides in recent years, we did have to increase member rates in April of this year. The rate increase was caused by increased purchased power costs, it currently resides in the power cost adjustment (PCA) and it will remain there until the October bill paid early in November. At that point, the PCA will be zeroed and spread into base rates. This redistribution of rates will include no additional revenue for the co-op. The purpose of the redistribution is to ensure fair and equitable rates between classes of members. Member classes include: residential, commercial, schools, large power, sales for resale, and street lights. The effect of redistribution on individual rate classes will vary. However, a vast majority of our membership will see very little impact starting on the October bill.

The increase in power supply costs is due to power suppliers facing cost pressures from changing fuels, material costs and environment regulations. These regulations are changing the mix of energy generated profoundly. Coal assets generated 68% of our power supplier’s energy at the end of 2015, but only 54% of the energy so far in 2016 (See charts).

Important Message to our MembersAt the June meeting of the Board of Directors’ of Tri-County Electric Cooperative, the board reviewed the following items:

• The board reviewed and approved the proposed agenda.• The board reviewed and approved the regular board meeting minutes (05/23/2016).• The board heard a presentation from Larry Feltner on the rate study.• The board reviewed and approved new memberships.• The board reviewed and approved write-offs for March.• The board approved the 2016 Annual Meeting of Members Agenda.• The board approved a safety resolution.• The board received a safety report and a member services report. • The board received a report of operations.• The board reviewed financial reports.• The board reviewed expenditures in detail.• The board heard director reports on NEP, AECI and AMEC.

The next board meeting has been set for July 7, 2016.

June 2016 Board Report

Energy Generated YTD April 2016

Energy Generated 2015

Energy produced is shifting away from coal generation toward gas and renewable generation reducing the co-op’s carbon footprint. However, shifting to new generating facilities equates to financial pressures on our power suppliers. Our power suppliers should be commended for holding Tri-County’s rate increase to only 7%. Tri-County, in turn, held our rate increase to members to only 4.3%. Both Tri-County and our power Suppliers worked diligently to minimize the increase necessary.

Please note, the rate redistribution occurring in the upcoming October bill is designed to provide fair and equitable rates to all members. This redistribution includes no additional revenue for Tri-County, just a redistribution between rate classes. To find out more information regarding this manner please look on our website, in future PowerSource articles and bill stuffers.

Associated Electric Co-op, Inc.

In 2013, our generator, Associated Electric Cooperative, spent about $142,000 per day or a total of $52 million on environmental controls ($6 million on operating costs and

maintenance and $46 million on fixed costs). This translates to roughly $37 for the average retail member in 2013.

Associated Electric halted coal mining in Missouri and switched to burning low-sulfur Wyoming coal in 1994 to improve air quality by reducing emissions of sulfur dioxides early and more than regulations required. Associated Electric also installed equipment to reduce nitrogen oxides on its large coal units. All of these environmental steps add up to more than $1 billion. Associated Electric also is voluntarily reducing mercury emissions years ahead of the compliance date by being the first to use a treated coal.

Despite Associated’s excellent environmental record and innovative use of technology to control emissions at lower cost, more mandates from the Environmental Protection Agency on carbon and other air emissions, water quality and coal ash storage and handling threaten to significantly increase the cost of producing electricity. Continued on next page

A newsletter for members ofProviding energy for life.Tri-County Electric Cooperative

Additional background: EPA marches ahead on regulating carbon emissions under the Clean Air Act. EPA’s Greenhouse Gas Tailoring Rule effective for utilities in 2011 requires Associated to report and monitor carbon emissions before and after projects to determine whether significant increases in emissions are probable. The rule also requires permitting and submission of a best achievable control technology analysis, which will become more stringent over time, making compliance strategies and costs unpredictable.

EPA also proposed its first carbon emissions standard for new power plants March 27, 2012. Known as a “New Source Performance Standard” or NSPS, the rule forces a roughly 50 percent reduction in CO2 emissions on new coal plants – requiring their carbon emissions be about the same as today’s combined-cycle natural gas plants.

Standards also were proposed for new combined-cycle gas units. However, emissions from our generator’s combined-cycle gas units are already lower than the proposed emissions limits. The rule could impact existing coal-fired plants if they undergo significant modification. There is no commercially available technology to separate or store CO2 emissions on our existing coal plants or on new pulverized coal units.

How Much of My Bill is Due to Environmental Measures/Costs? Continued...

Is There Really Any Such Thing as Clean Coal?

Technology makes it possible to use coal to generate electricity and still meet today’s stringent environmental standards. Coal is our most abundant domestic fuel. Nearly half of the electricity generated in the United States comes from coal. With investment in technology our

abundant coal supply can remain a source for clean, affordable and reliable electricity.

Due to investments and technology, the air in the United States is cleaner today than it has been since 1970. Data from the Environmental Protection Agency show that from 1970 to 2012:gross domestic product increased 219 percentvehicle miles traveled increased 165 percentenergy consumption increased 47 percentU.S. population grew by 53 percentEmissions dropped 72 percent in the U.S.

Between 1970 and 2012, total emissions of six principal air emissions (carbon monoxide, lead, nitrogen oxides, volatile organic compounds, particulate matter, sulfur dioxide) dropped 72 percent in the U.S.

What Do You Do to Clean up the Emissions from Burning Coal?

Our generator, Associated Electric Cooperative, has an impressive record of environmental compliance and innovation. It was one of the first utilities to convert to 100 percent low-sulfur coal to reduce sulfur dioxide emissions.

Associated Electric installed equipment to reduce nitrogen oxides on its large coal units. Using this equipment and NOx allowances, Associated Electric complies with the Clean Air Interstate Rule at the lowest cost for members. Associated Electric was nationally recognized by the U.S. Department of Interior for innovative and successful mine reclamation and restoration. The co-op voluntarily began reducing mercury emissions years ahead of the 2016 compliance date by using a treated coal. Associated Electric’s switch to cleaner, low-sulfur coal at its New Madrid and Thomas Hill power plants in 1994 continues to position Associated well to meet additional regulations.

Associated spent $52 million in 2013 on environmental control measures to improve air quality, including $6 million on annual operating and maintenance and $46 million on fixed costs.

What are You Doing to Research Cleaner Ways of Producing Electricity?

Our generator’s coal plants have burned a refined coal that reduced mercury emissions voluntarily and ahead of regulations while saving $9.7 million in 2013 for Associated Electric Cooperative. Research continued to find the most economical method for reducing mercury

emissions when MATS took effect in 2016.This research is helping keep rates as low as possible for members while meeting environmental commitments.

In another project, Associated Electric has tested a technique that uses sodium bicarbonate, or baking soda, to reduce acidic gases like SO2 from emissions. The technology has the potential to save members more than a billion dollars in capital equipment costs if further emissions reductions are imposed on us.

Additional background: Associated broke ground as the first to reduce mercury emissions with use of CyClean refined coal at its two coal plants beginning in 2009. These reductions, as well as Associated’s conversion to low-sulfur coal, were apart of Associated’s proactive work to meet EPA’s new Mercury and Air Toxics Standard (MATS) by the 2016 compliance date.

Associated first completed demonstration projects at New Madrid and Thomas Hill power plants in 2009 to determine whether CyClean refined coal could reduce mercury and to what extent.

Results were promising, and in 2010 Associated signed a 10-year contract to burn the refined coal. Associated employees’ research and persistence also helped the cooperative capture an economic benefit under a law that encourages production of refined coal. In 2011, the first full year of burning refined coal in cyclone units at both plants, Associated received about $7.3 million to offset its fuel expense. In 2012, Associated received $8.3 million. In 2013, Associated received another $8.3 million.

Associated conducted additional mercury controls testing in 2013 on Thomas Hill Unit 3, a pulverized coal unit that cannot use the same CyClean refined coal. The refined coal qualified the fuel for the same tax credit under a 2004 law and helped to offset Associated’s fuel cost about $1.4 million in 2013, bringing total revenue from refined coal to $9.7 million in 2013. However, due to maintenance issues discovered with the 2013 refined coal test on Unit 3, Associated continues to research and fine-tune use of a refined coal on that unit.

When burned, refined coal converts mercury into a form that sticks to ash particles, which are then captured and disposed in compliance with state regulations. With the use of this refined coal, Associated is significantly reducing the cost of reducing mercury emissions, and complying with the Environmental Protection Agency’s Mercury and Air Toxics Standards (MATS) as of April 2016.

TO REPORT AN OUTAGE

Call Toll-Free888-457-3734

Local 660-457-3733

Before Calling:Check your breakers or fuses

Check to see if your neighbors have power

When calling be sure to have the following:

Your nameMember number

Location Which account (if you have

multiple accounts)

Tri-County Electric CooperativePO Box 159

Lancaster, MO 63548660-457-3733 or 888-457-3734

www.tricountyelectric.org

Board of DirectorsPresident-Mark VanDolah

Vice President-Harley HarrelsonSecretary-Dave KochTreasurer-Bill Triplett

Rusty AndersKelley Church

Kenny McNamarJoe Sebolt

Melody Whitacre

General ManagerJane Bahler-Hurt

EditorAlexandra Shetler

Tri-County Fee ScheduleLate Payment Fee $5.00

Meter Test Fee $30.00Returned Check Fee $30.00Collection Trip Fee $30.00Trip Fee for Member’s Side Outage

Office Hours $60.00After Hours $120.00

Reconnect FeeOffice Hours $120.00w/in 12 mos. $120.00After Hours $180.00

Dates To Observe: Office Closed

Labor Day: September 5

Veteran’s Day: November 11