Kenergy Corp Members' Handbook

MEMBER OWNEDService Driven

MEMBERS’ Handbook

Welcome to the Kenergy family. Whether you are a homeowner or business owner, I am eager to share some information about your electric distribution cooperative.

Kenergy is a unique utility. It is a member-owned nonprofit. As such, it operates differently from other business models. Profits, or margins, are put back into the cooperative to help run the busi-ness efficiently or are returned to member-owners through a capital credit retirement.

Members vote on who will represent their districts on the Board of Directors. All directors are Kenergy members, just like you. And when their terms expire, any member is eligible to run for

a board seat.

Your cooperative has a long, proud history. In October 1937, Kenergy’s predecessor — Henderson-Union RECC — was the first electric cooperative in Kentucky to supply power to a member. Henderson-Union merged with Green River Electric in 1999 to form Kenergy, which has more than 55,000 meters in 14 counties.

Your cooperative maintains more than 7,000 miles of power lines. Headquarters is located in Henderson. For your convenience, service centers are located at Hanson in Hopkins County, Hart-ford in Ohio County, Hawesville in Hancock County, Marion in Crittenden County and Owensboro in Daviess County.

Kenergy is a Touchstone Energy® cooperative. Touchstone Energy is a network of local, member-owned electric cooperatives throughout the country, which have a reputation for integrity, ac-countability, innovation and community service.

Your Kenergy staff and Board of Directors exist for one purpose: to provide you with safe and reliable electricity at an affordable price. It’s been that way since 1937 and will never change.

Again, welcome to Kenergy.

Greg StarheimPresident/CEO

WELCOME!

How to Contact Us 2

Membership and Service 2

Meter Reading and Reporting 4

How to Access Your Account 4

Billing and Payments 5

How to Read Your Kenergy Statement 6

Power Outage Preparation 7

Restoring Power 7

Facts About Generators 8

Electrical Safety 8

Kenergy and Member Equipment 9

Tree Planting Guide 9

Co-op Connections Card 10

Annual Meeting 10

Scholarships 10

Kenergy Board Districts 10

Kenergy Board Members 11

Rules and Regulations 12

Rebate Programs 13

TABLE OF Contents

MEMBERS’ Handbook 1

24-HOUR NUMBER:1.800.844.4832ANY OFFICE, ANY TIME

E-MAIL:[email protected]

HEADQUARTERS:6402 Old Corydon RoadP.O. Box 18Henderson, KY 42419-0018FAX: 270.826.3999

INTERNET WEB SITE:www.kenergycorp.com

SERVICE CENTERS:Hanson2620 Brown Badgett LoopP.O. Box 327Hanson, KY 42413-0327FAX: 270.322-3026

HOW TO Contact UsHartford1441 U.S. 231 NorthP.O. Box 73Hartford, KY 42347-0073FAX: 270.298.0331

Hawesville315 Hawes Blvd.P.O. Box 99Hawesville, KY 42348-0099FAX: 270.927.8817

Marion3000 U.S. Highway 641P.O. Box 268Marion, KY 42064FAX: 270.965.3534

Owensboro3111 Fairview DriveP.O. Box 1389Owensboro, KY 42302-1389FAX: 270.685.2279

BUSINESS HOURS:Henderson — 7:30 a.m. to 4:30 p.m.Owensboro — 7:30 a.m. to 4:30 p.m.Hanson, Hawesville, Hartford and Marion — 9 a.m. to noon and 1-4 p.m.

SOCIAL MEDIA:Kenergy uses Facebook, Twitter and YouTube to communicate important messages to its members, including information about outages, rebates, tax incentives and changes in policy.

Like us on Facebook at https://www.facebook.com/KenergycorpFollow us on Twitter at https://www.twitter.com/kenergycorpWatch our videos at http://www.youtube.com/kenergycorp

MEMBERSHIP and Service

2 MEMBERS’ Handbook

APPLYING FOR SERVICEAs a cooperative, Kenergy is owned equally by the members it serves and operates not-for profit. Each member pays a $5 membership fee and owns one share of the corporation. All member-owners have a voice in the co-op’s operations through a member-elected Board of Directors. Only one member-ship fee is required of members with multiple accounts. Upon termination of electric service, membership fees are refunded

when all financial obligations are satisfied or may be applied against the final bill. Service will not be made available to a former member until any previously existing indebtedness to the cooperative has been satisfied. All applicants for electric service also must complete an Application for Membership and Service and agree to the terms and conditions for electric service as provided in the application and the Articles of Incorporation and Bylaws of the cooperative. Applicant must furnish picture identification, his/her Social Security number, phone number, permanent address, place of employment and spouse’s name (if applicable). The applicant also must sign right-of-way easements. (If an application is received from a person residing with a delinquent customer at the premises where power was supplied to the delinquent customer, the application will be denied on the grounds that the applicant is applying as the agent of the delinquent customer.)

DEPOSITSResidential Service: A $251 deposit is required from all new residential members. The deposit will be refunded after 12 months if the member has established a good payment record. Interest on deposits will be calculated at the rate prescribed by law and will be applied yearly to the member’s account. A two-twelfths (2/12th ) deposit is required from residential


members who have an outstand-ing debt, have been released to the credit bureau, filed bankruptcy or have a history of meter tampering. The deposit may be waived if the member 1) has established an ac-ceptable credit record with Kenergy, 2) provides an acceptable letter of credit from another utility for the past 12 months of service, or 3) has an existing member with a good payment record sign as a guarantor. Non-residential and three-phase members under 1,000 KW deposits shall be based upon actual use of the member at the same or similar premises for the most recent 12-month period, if such informa-tion is available. If use information is not available, the deposit will be based on the load information pro-vided by the member. The deposit amount shall not exceed 2/12th’s of the member’s actual or estimated annual bill where bills are rendered monthly. Commercial members may select one of three methods for meeting the deposit requirement: •Cash(Interestondepositswillbecalculatedattherate

prescribed by law and applied to the member’s account annually.)

•Irrevocableletterofcreditfromabank. •Suretybond. Recalculation of Deposit: If Kenergy has held the deposit for 18 months or more, the member has the right to request a recalculation of the deposit based on his actual electricity usage. If the deposit held differs by more than $10 for residential members or by more than 10 percent for non-residential members from deposit calculated on actual use, Kenergy will refund any over collection and may collect any underpayment. Refunds will be made either by check or credit to the member’s bill, except that the cooperative will not be required to refund any excess deposit if the member’s bill is delinquent at the time of the recalculation.

TEMPORARY SERVICEA member requesting temporary service may be required to pay all cost of construction, removing, connecting and discon-necting service. Facilities which are temporary in nature, such as for construction contractors, sawmills, oil wells, carnivals, fairs, camp meetings, etc., will be provided to members mak-ing application for same, provided they pay an advance fee equal to the reasonable cost of constructing and removing such facilities, along with a deposit for estimated kilowatt-hour us-age. Upon termination of temporary service, the payment paid on estimated usage will be adjusted to actual usage and either a refund or additional billing will be issued.

TRANSFERRING SERVICEA current Kenergy member who has his or her electric bill

paid to date may transfer service by phone to another loca-tion served by the cooperative. An advanced notice of three working days is required. A service charge is applicable to any disconnecting or reconnecting of seasonal or temporary service.

ELECTRICAL INSPECTIONElectrical inspections are required for code compliance or public and personnel safety. The following rules will be ap-plied with any Kenergy service:

1. All new installations, regardless of size or nature of use, will require inspection.

2. Disconnected services, regardless of type, must be in-spected if disconnected for 12 months or more.

3. Temporary boards/services provided by member or builder will require inspection when new and before reconnecting.

4. Camps — All river camps and all services for mobile campers will require inspection when new and before reconnecting.

5. Oil wells will require inspection when new and before reconnecting.

6. Any service will be inspected before reconnecting when disconnected for these reasons:

•Fire, •Attherequestofthememberforthepurposeofrepair

or replacement of parts, •IfdeterminedunsafebyKenergypersonnel.7. Reconnects on mobile homes will be inspected only if

the wiring between the meter pole and mobile home has been installed or replaced, or a different mobile home is in place from the last time a service was active.

READING YOUR METERABOUT YOUR KENERGY METERResidential members have digital cyclometers, which read like a car odometer. The numbers on the cyclometer should be recorded in the blocks on the payment stub just as they appear on the meter. The reading and date should be returned to the cooperative when paying your monthly bill. When a member fails to submit a monthly meter reading, the bill is estimated based on the account history. This is indicated as ESTIMATED on the bill. After six consecu-tive months of estimations, a Kenergy employee will be dispatched to obtain an accurate meter reading. For this service, a charge is added to the individual member’s bill. Should you fail to submit a meter reading when paying your bill, you may report the reading online by logging in under

Theft of services is a Class A misdemeanor unless the value of service is three hundred dollars ($300) or more, in which case it is a Class D felony. KRS 514.060

METER READING and Reporting


Manage Your Account or by calling the cooperative’s voice mail number: 1.800.844.4832 and follow the phone prompts. Be prepared to give the voice mail attendant, after the tone, the account name (the name appearing on your Kenergy bill), ac-count number, your telephone number, meter reading and the date you read the meter. Kenergy members may record their monthly meter reading via our web site:www.kenergycorp.com

METER TAMPERING Meter tampering is a criminal violation of the law. It reads: “When the utility has discovered evidence that by fraudulent or illegal means a customer has obtained unauthorized service or has diverted the service for unauthorized use or has obtained service without same being properly measured, the service to

the customer may be discontinued without notice. The utility shall not be required to restore service until the customer has complied with all rules of the utility and regulations of the Kentucky Public Service Commission and the utility has been re-imbursed for the estimated amount of the service rendered and the cost to the utility incurred by reason of fraudulent use.” Kenergy uses a number of methods for the detection of the fraudulent or illegal use of electricity.

1234567890

1234567890

12345671234567890

HOW TO ACCESS Your Accountwww.kenergycorp.com1.800.844.4832Kenergy recently rolled out an automated phone system that allows you to pay bills or give meter readings 24 hours a day. You can pay with a check, credit or debit card. You receive a confirmation number that provides proof of payment.

MY ACCOUNTNeed to check your account while on the go? Now you can access your account from your smart phone or tablet. Go to your favorite app store to download the free app.

BILLING and Payments

PAYMENTSBills are due and payable on or before the payment date indicated on your bill. Payment may be made by mail or at any Kenergy office. Cash or checks, VISA, MasterCard and Novus-issued credit cards and bank-issued debit cards are ac-cepted. Each office has an after-hours depository. If you have more than one account with the same due date, you may mail a single check for the total combined amount of the monthly bills and your meter readings in any one of the return envelopes provided by the cooperative. Members’ monthly statements list both a net and gross payment amount, with the gross amount being 5 percent (5%) greater. In the event the bill is not paid within 20 days, the gross amount applies. Any member 65 years old and older who has submitted proof of age will not be levied the gross payment amount if the bill for his/her primary residence is paid within 30 days. Kenergy offers several payment and billing options (Credit Card Payments, Budget Billing Plan, Bank Draft Payments) to make paying your bill more convenient.

BANK DRAFT PAYMENTKenergy offers a bank draft plan for the automatic payment of electric bills. There is no check to write, and a record of your payment is included on your bank statement. The plan does not eliminate the need to read your meter each month. PAY YOUR BILL ONLINETo pay your bill online, go to www.kenergycorp.com and login under My Account. PAY YOUR BILL BY PHONECall 1.800.844.4832 and follow the prompts.

CREDIT CARDSKenergy accepts Visa, MasterCard and Novus-issued credit cards for the payment of electric bills, as well as for the payment of other Kenergy services and prod-ucts. Have your card available when paying in person at one of the offices or when contacting the cooperative by phone. BUDGET BILLING PLANKenergy offers a Budget Billing Plan for its single-phase accounts, which allows a member to pay the same amount for 11 months and any balance due the 12th month. Some members may be due a refund the 12th month. For more information, please e-mail [email protected]

SETTLEMENT OF DISPUTESIf you have any questions or disputes regarding a bill or electric service, please contact Kenergy first. The Kentucky Public Service Commission (PSC) has a toll-free number for use by consumers with questions about their electric service or with complaints: 1.800.772.4636. Members may also correspond with the PSC by mail at Kentucky Public Service Commission, 211 Sower Boulevard, Frankfort, KY 40601. By e-mail, members may reach the PSC at [email protected]. ASSISTANCE PROGRAMSPartial Payment Plan: Residential members who are unable to pay their bills in accordance with Kenergy’s regular payment terms may go to one of the cooperative’s offices during normal business hours to make arrangements for a partial payment plan and retention of electric service. Such arrangements should be made before a serviceman arrives to disconnect a meter for nonpayment. Should a member fail to honor the mutually agreed-upon payment schedule, the member’s service may be disconnected without prior notice. Kenergy is not obligated to negotiate ad-ditional partial payment plans with members who currently are delinquent under a previous partial payment plan. WinterCare Energy Fund: Kenergy participates in the statewide WinterCare Energy Fund to provide its members with a voluntary means of assisting those in need in paying their electric bills. A space is provided on your bill to indicate the amount you wish to contribute. Those in need of WinterCare assistance should contact either the Audubon Area Community Services or Pennyrile Allied Community Services office in their county. The co-op also has an employee-funded assistance program.


FUEL ADJUSTMENT CLAUSE

The Fuel Adjustment Clause passes along the cost of fuel (mainly coal) used to generate electricity.

ENVIRONMENTAL SURCHARGE

This charge covers the cost of complying with the Federal Clean Air Act and other federal, state, and local environmental laws and regulations.

UNWIND SURCREDIT

A credit received from two large industrial customers in exchange for obtaining long-term power contracts.

REFUND FROM FINAL RATES

In any year that Big Rivers’ earn-ings exceed a pre-determined level, it may seek approval to rebate those excess earnings to Kenergy and the two other distribution cooperatives who share ownership of Big Rivers. The rebate then is shared among you, the members.

MEMBER RATE STABILITY MECHANISM

A pool of money (known as a reserve account) to be used to offset the charges listed above after taking into account the Unwind Surcredit and the Rebate Adjustment. This pool will be used to the degree necessary to keep electric rates at the same level they were before the Unwind took place.

NO N FAC PPA RIDER

A charge or credit to adjust the base rate for power purchased by Big Rivers’ from other sup-pliers.1. You should always be sure your account information is up to date, doing so will

allow us to assist you quickly when you contact us.

2. Account summary.

3. Communications and current information or energy-saving tips.

4. Meter information shows your current meter reading, previous meter reading, meter multiplier and current bill KWH usage. This area also shows budget billing information if you are set up on this type of payment plan.

5. You can see in graph form your monthly usage for the past 13 months.

6. Payment stub area: Please remove this section and mail it in with your payment by the due date. Please be sure to enter your current meter reading and the date your meter was read.

HOW TO READ Your Kenergy Statement


1234567890

1234567890

12345671234567890

6

4

2

5

1

3

To view Kenergy’s rates, go to http://www.kenergycorp.com/myHome/kenergyRate.aspx

REMEMBER: THE FIRST 72 IS ON YOU. Have an emergency plan in place, including back-up pow-er supply, if a member of your household depends on life support or needs other medical equipment. For more information on emergency preparedness, go to www.kenergycorp.com or call 1.800.844.4832.

POWER OUTAGE Preparation

24-HOUR NUMBER1.800.844.4832

ANY OFFICE, ANY TIME

RESTORING PowerWhen electricity goes out, most of us expect power will be restored within a few hours. But when a major storm causes widespread damage, longer outages may result. Co-op line crews work long, hard hours to re-store service safely to the greatest number of consumers in the shortest time possible. Here’s what’s going on if you find yourself in the dark.


PORTABLE ELECTRIC GENERATORS can be a good way to keep lights, re-frigerators and other appliances running if a power outage occurs. If a residential customer depends on medical equipment, a portable generator can provide much needed power in an emergency. However, improper installation or use can be dangerous to you, your property, and our line workers who may be working in the area. If you have a standby generator, be sure that it's installed safely and call us to let us know you have one. Always follow the manufacturer's instruc-tions to avoid injuring someone or damaging your generator or appliances. For more information, go to www.kenergycorp.com or call 1.800.844.4832.

ELECTRICITY is so much a part of our daily lives that it is easy to forget it can be dangerous — even deadly. When you are working out-side, remember to look up! Know where power lines are in your yard. Even the simplest tasks — carrying extension ladders, trimming tree limbs or installing a patio umbrella — can become dangerous if something you are carrying touches a power line. For more information about electrical safety, go to www.kenergycorp.com or call 1.800.844.4832.

WE RESPECT THE EFFORT and care our members invest in making their properties at-tractive. However, landscaping around electrical equipment interferes with our ability to deliver reliable power. Kenergy recommends leaving at least 10 feet of clear space in front of pad-mount transformers. Linemen use an 8-foot fiberglass hot stick that requires about 10 feet of “elbow room” in front of the access panel.


FACTS ABOUT Generators

ELECTRICAL Safety

Kenergy and Member Equipment


KENERGY ANDMember Equipment

KENERGY EQUIPMENT

KENERGY EQUIPMENT

TREE Planting Guide

KENERGY makes available to all members a Co-op Connec-tions Card. This free card can provide up to 60 percent off prescription drugs at local stores. Please check with your pharmacy for discounts that may be available. Also, the card offers discounts on hotel stays, car rentals and more. Formore details, go to www.kenergy-corp.com.

KENERGY awards twenty-four $500 scholarships at the co-operative’s Annual Meeting in June. For more information about scholarships, go to www.kenergycorp.com or call 1.800.844.4832.


CO-OP

BOARD Districts

SCHOLARSHIPS

ANNUAL MEETINGKenergy’s Annual Meeting is held each year in June. The location alternates between Owensboro and Henderson. Watch for details in Member Matters, which is the monthly newsletter that comes in the mail with your bill statement.

Connections Card


DISTRICT 1 — GLENN COX(Includes all of Lyon, Caldwelland Hopkins counties, excludingmembers on the east side ofHighway 109 in Hopkins County)396 Mill Bluff RoadFredonia, KY [email protected]

DISTRICT 2 — ROBERT WHITE(Includes Union and Crittenden counties, excluding members on the south side of Highway 70 in Crittenden County)1839 State Route 270 EastSturgis, KY [email protected]

DISTRICT 3 — CHRIS MITCHELL(Includes Webster and Hopkins counties, excluding members on the west side of Highway 109 in Hopkins County)11940 State Route 270 WestClay, KY [email protected]

DISTRICT 4 — RANDY POWELL(Includes all of west Henderson County, excluding members on the east side of the Pennyrile Parkway and the northern merging run of Highway 41)8260 Whitelick RoadCorydon, KY 42406270.533.6243 [email protected]

DISTRICT 8 — WILLIAM REID(Includes all of northeast Daviess County, excluding members on the south side of Highway 54 and members on the west side of Highway 431) 4818 Highway 144 Owensboro, KY 42303 270.684.5631 [email protected]

INDUSTRIAL DIRECTOR — STEVE HENRY(Represents 19 large industrial members)3038 Hidden Lake PointOwensboro, KY [email protected]

DISTRICT 5 — WILLIAM DENTON(Includes all of east Henderson County, excluding members located on the west side of the Pennyrile Parkway and the northern merging run of Highway 41)PO Box 456Henderson, KY [email protected]

DISTRICT 6 — LARRY ELDER(Includes all of west Daviess County, excluding members located on the east side of Highway 431)2245 Hayden Bridge RoadOwensboro, KY [email protected]

DISTRICT 7 — JOHN WARREN(Includes all of southeast Daviess County, excluding members on the west side of Highway 431 and members on the north side of Highway 54)4701 Millers Mill RoadOwensboro, KY [email protected]

DISTRICT 9 — BRENT WIGGINTON(Includes all of Hancock County)1791 Park RoadHawesville, KY [email protected]

DISTRICT 10 — JONATHAN AYER(Includes all of McLean and Ohio counties)5483 State Route 136ECalhoun, KY [email protected]

KENERGY Board Members

Board members are elected for three-year terms. Directors are elected only from nominations by petition. To learn more about this process, go to www.kenergycorp.com or call 1.800.844.4832.


RULES and Regulations

RESIDENTIAL MEMBER BILL OF RIGHTSAs a residential member of a regulated public utility in the Commonwealth of Kentucky, you are guaranteed the following rights subject to Kentucky Revised Stat-utes and the provisions of the Kentucky Public Service Commission Administrative Regulations: • You have a right to service, provided you (or a

member of your household whose debt was ac-cumulated at your address) are not indebted to Kenergy Corp.

• You have the right to inspect and review Kenergy’s rates and tariffed operating procedures during Ken-ergy’s normal business hours or on the coopera-tive’s web site at www.kenergycorp.com.

• You have the right to be present at any routine Kenergy inspection of your service.

• You must be provided a separate, distinct discon-nect notice alerting you to a possible disconnection of your service, if payment is not received.

• You have the right to dispute the reasons for any announced termination of your service.

• You have the right to negotiate a partial payment plan when your service is threatened by disconnec-tion for non-payment.

• You have the right to participate in a near equal, leveled payment plan for your electric service.

• You have the right to maintain your utility service for up to thirty (30) days upon presentation of a medical certificate issued by a health official.

• You have the right to prompt (within 24 hours) restoration of your service when the cause for discontinuance of the service has been corrected.

• If you have not been disconnected, you have the right to maintain electric service for thirty (30) days when you present a Certificate of Need issued by the Kentucky Cabinet for Human Resources between the months of November and the end of March.

• If you have been disconnected due to non-payment, you have the right to have your electric service reconnected between the months of November through March provided you:

1. Present a Certificate of Need issued by the Kentucky Cabinet for Human Resources; and

2. Pay one-third (1/3) of your outstanding bill ($200.00 maximum); and

3. Accept referral to the Human Resources Weatherization Program; and

4. Agree to a repayment schedule that will cause your bill to become current by October 15.

• You have the right to contact the Kentucky Public Service Commission regarding any dispute you have been unable to resolve with Kenergy Corp. Call toll free 1.800.772.4636.


avings$Rebate Program

Smart$

Kenergy has numerous rebates available. For more de-tails, call 1.800.844.4832 and talk to a Member Service Representative or go to www.kenergycorp.com and click on the Smart Savings button.

REBATE Programs

24-HOUR NUMBER1.800.844.4832 • ANY OFFICE, ANY TIME

www.kenergycorp.com

MEMBER OWNED Service Driven

Documents

Kenergy Corp Members' Handbook