Flathead Electric Cooperative Announces Election Results

Ballots were due at the offices of auditing firm, JCCS, by April 5th. Flathead Electric received certification from CPA, Tony Vanorny, at JCCS that 5,734 total ballots were received. The certification also stated that incumbents, Chris Byrd-District #1 and Doug Grob-District #4 were reelected to continue to sit on the Board of Trustees for the Co-op. George Taylor-District #7, was the only opposed Trustee in this year’s election and he received 2,400 votes. Challenger Bruce Measure won the District #7 seat, by receiving 3, 055 votes. The Board and staff wish to extend a sincere thank you to those who voted and encourage members to continue to stay involved with the future success of Flathead Electric Cooperative.

Rate Increase Based on Rising Wholesale Costs

Although a significant wholesale power rate increase has been imposed on the Co-op, the Board of Trustees for Flathead Electric elected not to hike the retail rates at a comparable level. Instead, rates will be adjusted incrementally, over time. Trustees feel that spreading expenses out will help smooth the transition into higher power costs, as many people struggle to pay their bills during this unstable time in our economy.

Flathead Electric will be implementing an average annualized rate increase of 3.75% across all rate classes as a result of increased wholesale power costs. The majority of residential members will experience an increase of less than $4.75 per month. The increase will affect two aspects of your bill; the monthly Basic Charge that helps cover the Cooperative’s minimum fixed costs and the Energy Charge for the amount of energy consumed. A residential member of Flathead Electric Cooperative using 1,000 kWh per month, will now pay $84.52 rather than $80.14 under the old rate. Bills issued after June 1, 2013 will reflect the new rates, which will include energy usage from May.

CleanHydro Highlights Hydropower and River Values

Flathead Electric Cooperative’s primary power supply is hydropower purchased from the Bonneville Power Administration.  We are extremely fortunate to have this low cost, clean resource.  It is important for all of us to understand what dynamics exist that could put this essential resource in jeopardy, however, and we will do our best to keep you informed.

A public education effort, called CleanHydro, is being coordinated by Northwest RiverPartners , an alliance of utilities, ports, businesses and farming organizations, that advocate for a balanced approach to managing the federal hydropower system on the Columbia and Snake Rivers.  Other regional and national organizations with a stake in hydropower and river commerce are also supporting the effort to educate the public about these resources and their benefits.

Terry Flores, Executive Director of RiverPartners, noted that the organization’s public opinion surveys show a lack of understanding and appreciation for the tremendous value that the Columbia and Snake River system brings to the Northwest, both economically and environmentally. “For those of us who grew up in the Northwest, it was always a given that hydropower was the premier renewable energy source; and the energy production benefits of our dams were also well known.”

Today, Flores says, there is a whole new audience that needs to be educated: “Many people have moved into the Northwest from other places, and younger generations know very little about hydropower and the river system’s contributions.  They didn’t grow up with them.  Hydropower doesn’t have the kind of ingrained recognition it once did.  So in a sense, we’re reintroducing – and reminding – the public of the tremendous value these resources bring to our lives.”

And with a changing energy industry, hydropower has been overlooked in recent years.  “We’ve seen huge growth in other renewable sources of energy, particularly wind.  These have been so prominent in the popular media that it’s given rise to a perception that they are the only renewables out there,” Flores said.  “We just want to make sure that hydropower is considered in the same context.”

Besides accounting for 90 percent of the region’s renewable energy, the system of dams and locks on the Columbia and Snake Rivers create a river highway allowing billions of dollars of goods to be transported by barge, creating thousands of jobs and boosting the economy. The hydropower system allows crops grown by local farmers to feed the Northwest and the world. “We have a great story to tell,” Flores noted. “It simply hasn’t been getting out – now it will.”

For more information, visit CleanHydro.com.

Cutting-edge Battery to be tested at the Co-op

Zinc Air Inc (ZAI) and Flathead Electric Co-op have announced an agreement to install a battery on FEC’s campus in Kalispell. This installation will help demonstrate how ZAI’s technology can deliver on the long-held promise of battery storage technologies in delivering cheap, clean and abundant power.

"This is another major step for Zinc Air and commercializing our technology. Working with FEC will give us first-hand knowledge and experience in the operation of the battery system.” said Peter Walters, COO of ZAI. "Running these tests in our own back yard is also a great way for us to support the local economy,” stated ZAI CEO Dave Wilkins.

This customer field trial will allow ZAI and FEC to run a number of applications for both Utility and end user benefits, such as peak demand reduction and load shifting. Cheryl Talley, FEC’s Director of Member and Energy Services, said she is, “interested in results of the project and how it might benefit members of the Co-op.”

Zinc Air, based in Columbia Falls, is delivering its first field installations this year with its first commercial deployments in 2014. The energy storage systems will be used primarily for smart grid applications and renewable integration of wind and solar.

Energizing the Economy

Flathead Electric Cooperative was contacted by a local journalist recently, inquiring about FEC’s role in economic development. We discussed the Co-op’s 157 employees and their purchases and contributions, along with Flathead Electric’s duty to help strengthen the community through donations. We talked about FEC’s responsibilities in providing affordable power to its membership so people can spend their money otherwise; and we discussed the significant part the utility plays in supporting the Valley’s tax base.

It may come as a surprise to some (as it did to the journalist) that FEC is the largest property tax payer in Flathead County.  Flathead Electric contributed approximately $4.3 million to the local economy in 2012, to support schools, roads and so on.  FEC pays property taxes on its vehicles, office buildings, 30 substations and other real estate.  But it may also surprise people to learn that the Co-op pays property tax on every one of its roughly 50,000 power poles and on each of its 4,500 miles of energized line!

The Co-op’s service territory extends into parts of Lincoln, Lake, Sanders and Park Counties as well, bringing its total property tax contribution to over $4.6 million for 2012.

NOTICE
FLATHEAD ELECTRIC WANTS TO
WARN YOU ABOUT RECENT ENERGY SCAMS IN THE AREA

Have you ever received a postcard in the mail inviting you to a free dinner where you will be shown how to save on your energy costs?

Read what these local residents had to say about their costly encounters:

 “This company provided a great meal and a very professional presentation. They convinced me that I could save energy by installing their product. I’ve since learned that the product is basically useless and I’m out $995!”

“I was led to believe that by putting their aluminum 'insulation' in my attic, my electric bills would be cut in half and I would receive a rebate from the Co-op. But that aluminum doesn’t save energy or qualify for a rebate and may even lead to harmful humidity levels in my home. I can’t believe I was duped out of $2,800!”

Please call us before giving your hard-earned money to an unknown. We want to put a stop to these unscrupulous practices in our community.

Flathead Electric wants to notify you in the event of a planned power outage

We encourage members to use our Phone Number Update System, which provides an easy way to update not only your home phone number, but your cell and work phone numbers as well.

Call 751-2928 any time of day and enter your Flathead Electric account number then follow the voice prompts. Keep in mind that the number you designate as your “home” number will be the number that Flathead Electric will call if there is a planned outage in your area.

Whitefish Hydro a Go

With a start-up date of September 7, 2012, Flathead Electric Co-op officially began a two-phase power purchase agreement with the City of Whitefish for the advance purchase of electricity generated from the city’s hydro-electric generator. Flathead Electric paid the city $400,000 in advance for energy to be generated and delivered to the power grid during the first phase. This money, plus a $200,000 American Recovery and Reinvestment Act (ARRA) grant, provided through the Montana Department of Environmental Quality, was used to rebuild the hydroelectric facility. During Phase 2, Flathead Electric will accept generated energy in exchange for energy delivered to select accounts with the Public Works and Parks Departments.

FEC General Manager Ken Sugden says the deal is mutually beneficial: “Pre-purchasing the energy made the project feasible for Whitefish and gives Flathead Electric another local source of clean energy. Eventually, the energy will be used in the City of Whitefish’s own water and sewer pumping loads.” Whitefish City Manager Chuck Stearns agrees that the deal is reciprocal: “Flathead Electric gets to diversify its power source and, once our loan is offset, the energy goes toward our own consumption. I want to thank FEC for its tremendous effort in making this project go forward.”

Flathead Electric Receives Coveted Award

Flathead Electric Co-op has received Bonneville Power Administration (BPA) top honors for Excellence in Energy Efficiency! Ross Holter, Energy Services Supervisor at FEC, says the distinction is especially gratifying, considering the quality of nominations: “We shared this recognition with the Snohomish Public Utility District out of Washington State, which is approximately seven times our size in terms of members and staff. I think the BPA was particularly impressed with what our Co-op has been able to accomplish with limited resources.”

In presenting the award, Acting Vice President of BPA, Karen Meadows, said: “Quite simply, Flathead Electric exemplified each of the criteria we established.” Here in part are her comments during the recent award ceremony at BPA headquarters in Portland, Oregon:
“FEC’s achievement was well beyond what would be expected of a utility of their size and geography. They have shown remarkable creativity in the means by which they have promoted their efficiency programs in their largely rural service territory. They have pursued nearly every efficiency opportunity available in all conservation sectors and are adding more programs in 2012, when many of their peers are cutting back. Flathead has demonstrated over and over their willingness to collaborate with their neighboring utilities and host regional events, and they have received high profile recognition for their efforts. What we found most compelling in Flathead’s nomination was the steps they’ve taken to succeed in their service area, and how effective they have been despite the challenges that are inherent in a rural setting. Though Flathead presented us with a wealth of information highlighting their achievements, I’d like to point out some of the programs and accomplishments that stood out:

• Flathead has introduced tiered rates that provide a financial incentive for their customers to use less power.
• They have established a loan program to allow their commercial and industrial customers to finance the upfront cost of efficiency upgrades.
• Flathead has pursued a unique marketing effort featuring a "gang" of Flathead Electric Energy Efficiency employees packing caulking guns, spray foam cans, and CFL's, and making you an offer you can’t refuse. This campaign used television placement and public transportation to reach a difficult to access rural population.

These efforts have led to remarkable success; in 2011 Flathead acquired more than 2 average megawatts of efficiency--an increase of over 40% from the previous year and a phenomenal achievement given their total load. I am proud to present Flathead with the second annual Award for Excellence in Energy Efficiency.”

Flathead Electric’s energy efficiency campaigns have also been recognized by the Montana Electric Co-op Association and the Northwest Public Power Association, among others in the industry. Cheryl Talley, FEC Director of Energy and Member Services, says the BPA honor, however, is the ultimate stamp of approval: “Flathead Electric has always maintained high standards when it comes to energy efficiency, but the validation of our efforts from BPA will serve to motivate us even further.”

According to BPA data, the Northwest has been a leader in treating energy efficiency and conservation as a power resource for more than 30 years. The Northwest Power Act of 1980 called on the Northwest to give energy conservation top priority in meeting its power needs, and the region quickly learned that a megawatt saved is the equivalent of a megawatt produced. Today, energy efficiency is more important than ever. It is clean and emission free. It is also low cost relative to new energy generating resources. It serves our national goals of reducing our carbon footprint and enhancing our energy independence. In short, it is the world's most environmentally and economically friendly energy resource.