Small Changes Make A Big Difference!

Operation Round Up® is a program that rounds up members’ monthly electric bills to the next whole dollar amount. The resulting funds are put into a special account to assist others in need. The funds collected through Operation Round Up are used for a variety of projects, programs and items throughout the Nodak service area.

The Round Up board meets quarterly and considers each application that has been received since the previous meeting. It awards funds to the applicants based on how well the application fits the original funding guidelines: 1) Individuals or families in crisis; 2) Services – ambulance and fire; 3) Community youth needs with emphasis on permanent benefit; 4) Scholarships with emphasis on re-education of displaced agricultural people; 5) Senior needs with emphasis on permanent benefit; and 6) No requests for funding of utility and space heating energy will be accepted.

Operation Round Up is a voluntary program with roughly 60 percent of the 14,751 members participating. Since the program started, a total of $882,329 has been distributed to individuals  and organizations throughout the Nodak Electric service area.

2018 Recipients

  • Altru Ambulance Service $125.00
  • Aneta Ambulance Service $125.00
  • Binford Ambulance Service $125.00
  • Cooperstown Ambulance Service $125.00
  • Drayton Ambulance Service $125.00
  • Finley Ambulance Service $125.00
  • Fordville Ambulance Service $125.00
  • Hillsboro Ambulance Service $125.00
  • Hoople Ambulance Service $125.00
  • Hope Ambulance Service $125.00
  • Lake Region Ambulance Service $125.00
  • Lakota Ambulance Service $125.00
  • Larimore Ambulance Service $125.00
  • McVille Ambulance Service $125.00
  • Michigan Ambulance Service $125.00
  • Northwood Ambulance Service $125.00
  • Pembina County Ambulance Service $125.00
  • St. Ansgar Hospital Ambulance Service $125.00
  • Valley Ambulance & Rescue Squad $125.00
  • West Traill Ambulance Service $125.00
  • Joshua Amundson $1,500.00
  • Patty Clifton $1,250.00
  • Emiliano Contreras $1,250.00
  • Grace Hesse $425.00
  • Jaxon Hesse $400.00
  • Daniel Jallo $2,500.00
  • Robert Johnson $300.00
  • Francine McClendon $300.00
  • James Ottem $458.00
  • Charles Schwarz $1,250.00
  • Raenette Tewes $1,250.00
  • Vicki Tresenriter $1,250.00
  • Jeff Unterseher $1,250.00
  • Thomas Wetzel $1,250.00
  • Kassie Wilson $500.00
  • Cavalier HS After Prom Party $50.00
  • Central Valley HS After Prom Party $50.00
  • Dakota Prairie HS After Prom Party $50.00
  • Devils Lake HS After Prom Party $50.00
  • Drayton HS After Prom Party $50.00
  • Fordville-Lankin HS After Prom Party $50.00
  • Grafton HS After Prom Party $50.00
  • Grand Forks Central HS After Prom Party $50.00
  • Griggs County Central HS After Prom Party $50.00
  • Larimore HS After Prom Party $50.00
  • Midway HS After Prom Party $50.00
  • Minto HS After Prom Party $50.00
  • Park River HS After Prom Party $50.00
  • Red River HS After Prom Party $50.00
  • Thompson HS After Prom Party $50.00
  • Valley-Edinburg After Prom Party $50.00
  • Janet Bennet $500.00
  • Dennis Denault $1,000.00
  • Grace & Jaxon Hesse $1,500.00
  • William Morin $875.00
  • Tyler Nakonechney $1,895.00
  • Stephanie Nordstrom $500.00
  • Gloria Peterson $500.00
  • Gloria Seltvedt $1,000.00
  • Coleman Stadstad $2,500.00
  • Gary Woinarowicz $300.00
  • BreAnn Ziegelmann $917.00
  • Angela Zimmerman $882.00
  • Cooperstown Bible Camp $1,000.00
  • Grace Hesse $376.00
  • Matthew Houska $400.00
  • Anna Magnuson $800.00
  • Duane Marynik $1,500.00
  • Michael Mertens $2,000.00
  • Dick Olsen $1,400.00
  • Everly Peterson $2,500.00
  • Raenette Tewes $1,250.00
  • Gracie DeCoteau $535.00
  • Brooke Estvold $429.00
  • Deborah Heath $300.00
  • Grace Hesse $443.00
  • Jaxon Hesse $388.00
  • Kierra Hodny $250.00
  • Roger & Julie Jackson $2,450.00
  • Jose Patlan, Jr $150.00
  • Luke Riley $1,000.00
  • Charles Schwarz $1,000.00
  • Gloria Seltvedt $1,000.00
  • Allan Stokka $2,500.00
  • Chad Tetrault 1,500.00
  • Emmalynn Tomlinson $300.00
  • Jeff Unterseher $1,000.00
  • Veterans Honor Flight of ND/MN $1,000.00

Total $56,273.00

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Treasurer’s Report

As treasurer of Nodak Electric Cooperative, thank you for your patronage this past year and thank you for the opportunity to present the 2018 financial statements of the cooperative.

Approximately 56 percent of our revenue is related to commercial accounts that are not entirely affected by seasonal variances in climate, which gives us revenue stability as compared to other cooperatives in our region. Those commercial accounts added $2 million worth of revenue in 2018 as compared to 2017. Additionally, the other 44 percent of our revenue comes from the general service members who are affected by extreme cold in the winters and the heat of the summers. As a result of those seasonal climate changes, those accounts, along with 463 newly metered accounts, added $1.6 million to the revenue roles in 2018, for a total revenue value of $106.7 million. Total expenses for 2018 measured $104.3 million compared to $100.8 million 2017, with $2.9 million coming from power costs due to increased kilowatt-hour sales volume.

Margins for 2018 were valued at $3,131,575, which was within $133,000 of the 2017 level. Even though the weather may throw our projections off in any given year, we budget for margins in the $3 to $3.5 million mark each year, and we have been consistent in reaching those levels.

As member-owners of the cooperative, you are welcome to a more detailed explanation of the finances of Nodak Electric if so desired. Please feel free to contact our office for additional information and assistance.

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Aim High

Utility Privatization of Grand Forks Air Force Base and Cavalier Air Force Station

Nodak Electric Cooperative has done its best to make sure the Air Force lives up to that motto by providing safe, reliable and economical energy to the military branch for many years. Through a Utilities Privatization (UP) agreement signed in 2018, the partnership will continue for at least 50 years.

A member of Nodak Electric, the Air Force has purchased electricity from the cooperative for numerous military needs including missile, surveillance, fighter, bomber, air-tanker and drone missions. In 2018, that relationship changed when the UP Project Management Office at the Air Force Civil Engineer Center privatized utilities at the Grand Forks Air Force Base and the Cavalier Air Force Station.

UP began more than 20 years ago in response to the Defense Reform Initiative Directive 49 – mandating all military branches to develop plans to privatize utilities on military bases, such as electrical power, natural gas, water and wastewater treatment. UP establishes a partnership and direct investment for both the Air Force and Nodak because systems are privatized where fiscally attractive and operationally sound.

Nodak is the Grand Forks and Cavalier bases’ UP contractor for electrical power distribution infrastructure only. Nodak’s 50-year utility services contract becomes a “must-pay bill,” meaning funds will always be used for utility system maintenance, operation, renewals and replacements.

Cited benefits include:

  • Air Force funds industry standard upgrades to installation utility systems, in coordination with the contractor’s accepted schedule;
  • Air Force can focus resources on the core mission;
  • Base mission is not impacted during utility system transfer;
  • Military civil engineers still receive training on privatized systems when training is included in the utility services contract;
  • Readiness of installation personnel is not negatively impacted;
  • It provides long-term operational stability.

The process of UP began approximately six years ago, when the Air Force solicited contracting partners to privatize utilities on its military installations. Nodak submitted a Request for Proposal on Oct. 8, 2012. It consisted of four main parts:

  • An introduction of who Nodak is as a power supplier;
  • Nodak’s past performance based on information provided by existing commercial/industrial members;
  • Nodak’s steps on providing superior service;
  • Method of determining inventory costs.

On Dec. 1, 2018, Nodak Electric Cooperative became the owner, operator and maintainer of the electric utility infrastructure at the Grand Forks Air Force Base, located 14 miles west of the city of Grand Forks and the Cavalier Air Force Station, located 15 miles south of the U.S.-Canadian border.

During the negotiation phase, discussion centered on addressing initial system deficiencies, operating and maintenance cost adjustments, identification of special equipment needed, installation access to equipment and specific training requirements.

Nodak was awarded and signed the privatization contract in June 2018 with the Defense Logistics Agency (DLA) and began a 150-day transition period to true-up actual physical inventory of distribution assets at both installations, order necessary equipment and materials, determine the number of credentialed workers needed, develop a training plan for air base personnel, find a suitable temporary service center building and procure any special equipment.

Nodak will continue to “Aim High” while providing services to the Air Force.

Photo courtesy of Grand Forks Air Force Base.

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Message To Our Members

When we look back on Nodak’s history, 2018 will be remembered as the year we were awarded the utility privatization contract for the Grand Forks Air Force Base and the Cavalier Air Force Station. After six years in development, we were awarded contracts for the maintenance, repair and replacement of the electric distribution systems at the two military facilities. Over the next 50 years, the government will benefit from safer, more reliable distribution systems, and our members will enjoy additional revenue and margins that will help keep our rates affordable. The military has been a valued partner of ours for many years – this new agreement solidifies that relationship for decades into the future.

Affordable power is the reason Nodak was established 79 years ago and today it remains a primary focus. We are fortunate to have a committed Board of Directors and a team of dedicated employees to help accomplish this goal. Spurred by a year without a wholesale rate adjustment, in 2018 we were able to hold retail rates

steady for the second straight year. Our Deferred Revenue Program also played a small part in helping us stabilize our rates. In 2014, we established a Deferred Revenue Program by setting aside excess revenue that can be recognized in years when we don’t quite hit our budgeted margins. Your Board also created a Financial Goals Policy that establishes metrics of financial ratios we strive to meet each year. These two initiatives help ensure we are able to retire capital credits, maintain stable rates and enjoy a healthy, robust financial position. This commitment to financial security is a critical piece to the health of your cooperative and our ability to provide safe, reliable and affordable electric service to our members for years to come.

Over the last several years, your cooperative has enjoyed steady growth in both total number of metered services and in kilowatt-hour sales. In 2018, we topped the milestone of 20,000 metered services for the first time as well as an increase of nearly 3.8 percent in kilowatt-hour sales. Continued growth serves to stabilize rates by providing a larger number of members and an increased number of kilowatt-hours to spread fixed costs over. One of our largest growth areas is the Grand Forks region. We were pleased to begin a new 20-year franchise agreement at the beginning of the year with the city of Grand Forks and to continue the valued partnership we’ve enjoyed with the city and residents of the region.

Having a growing, financially healthy cooperative is obviously something we strive for. Beyond the comfort of a strong balance sheet, this financial security puts us in a position where we can return our members’ investment in the cooperative back to the members. Once again, your Board of Directors chose to return your patronage investment and retire $1.4 million in capital credits in 2018. This capital credit retirement is part of the Board’s continued commitment to be good stewards of your capital and give it back to you in a timely fashion.

In addition to providing low-cost power to our members, commitment to community is one of our core guiding principles. As a means to fulfill that commitment, our Operation Roundup Trust continues to make lasting impacts on the lives of our neighbors in need. By amassing pennies from bills rounded up to the nearest dollar from the almost 8,500 members who participate in the program, our Operation Roundup board was able to donate more than $56,000 last year to worthy causes. Since its inception, our Roundup board has put more than $88 million of your pennies to work helping individuals and organizations throughout the Nodak Electric service area. What a shining example of how each of us doing a little bit can make a huge impact. One of the cooperative movement’s greatest assets is we have the strength in numbers to accomplish our objectives.

The utility industry continues to change slowly in some areas and more rapidly in others. As we look ahead, we see opportunities as electric vehicles and smart homes gain popularity and technologies become more prevalent. We also see challenges in the ever-increasing complexity of our industry. Your Board of Directors and employees see a bright future ahead as we commit to innovate and adapt to these changes. Our mission is to serve the needs of our membership, and we are as committed as ever to fulfilling that pledge. Thank you for your support and patronage over the past year and thank you for the opportunity to serve you and be part of this wonderful organization. We look forward to visiting with you at the annual meeting on April 11 at the Alerus Center in Grand Forks.

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Be Fire Prevention Smart, Don’t Get Burned!

Electricity usually makes life easier by powering kitchen appliances, gadgets and electronics we use for entertainment. However, that same electricity contains the potential to destroy homes and take lives. Electric fires are more destructive than any other type of fire, and they are twice as deadly. Safe Electricity has the following information to help you keep your electric system safe.

  • Consider getting an electric inspection of your home, especially if it is an older home or you have never had an inspection.
  • If an electrical fire starts in your home, do not use water to extinguish it. Water conducts electricity, and you could get an electric shock. Use an extinguisher that is approved for use on electrical fires.
  • Flickering lights, warm, cracked or sparking outlets all indicate electrical problems.
  • If circuits trip, fuses blow or someone gets a shock, your home has an electrical problem. Get an electric inspection.
  • Do not overload outlets, use an extension cord as a permanent wiring solution, or use light bulbs that are not rated for the socket.
  • Contact an electrician about installing an Arc Fault Circuit Interrupter (AFCI). An AFCI monitors the flow of electricity in your home. If the flow of electricity is irregular and could cause a fire, the AFCI shuts off electricity.
  • Inspect electrical plugs and cords annually. If they are frayed or cracked, repair or replace them. Do not place cords under rugs or staple or nail them to the wall.

Source: safeelectricity.org

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Those Annoying Blinking Clocks

Don’t you just hate those blinking “12:00” clocks? Manufacturers could build in a backup system to avoid this, but that would increase the cost and you may not want to pay the extra amount for the device.

The blinking is often set into motion by the cooperative’s line safety devices used to avoid frequent and prolonged outages. The devices are called oil circuit reclosers. They operate by opening the circuit for an instant when the line is contacted by an object such as a squirrel, racoon, tree limb blowing in the breeze, etcetera. The object usually frees the line on the first blink. If not, the recloser will operate two more times. If the line is still not clear, the device will shut down the power until a serviceman clears the line and closes the oil reclosers.

Thus, the safety devices either avoid outages or shorten the outage time and decrease the area affected. They also prevent damage to the line, which is another way of keeping electricity at the lowest possible cost. When the clocks blink 12:00, keep in mind the manufacturer is trying to save you money, and we are trying to provide you dependable service at the lowest possible cost.

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Transfer, New Hire

Jesse Sturman, apprentice lineman, transferred full time to the Construction crew from the Grand Forks crew.

 

 

 

 

New hire Trent Edens joins the Cavalier crew. Trent started as a seasonal apprentice lineman with both the Devils Lake and Michigan crews. Trent is from Bemidji, Minn.

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Load Control Questions?

If you are one of the more than 2,000 Nodak Electric Cooperative members who participate in the money-saving off-peak program, there is an easy way to see when your electric heat or water heater is being controlled.

Just click on Current Off-Peak Status to see if that load is being controlled. You will need to know your load group and double order to understand the chart. To see if you are being controlled, just look for the group number on the left and the double order number on the top and match those two up. You are controlled if the box says OFF. Load group and double order numbers are usually listed on your load management receiver for each relay on the upper left or on a label placed on the unit. If you are unsure of your load group and order number, please give Member Services a call at 800-732-4373.

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A New Generation Committed To Serving You

Most organizations undergo employee demographic changes over their business life cycle, with the average time that an employee stays working for the same employer an average of 4.6 years. This statistic comes from the Bureau of Labor statistics and varies by occupation, but it is indicative of the mobile society we now live in. Opportunities abound for the millennials and generation X employees in the workforce today, and they will not hesitate to jump jobs for those new opportunities.

After many years of very static employment, Nodak Electric has also joined in the ranks of employers, especially cooperatives, who have witnessed significant employee turnover over the last five years. After a flurry of hiring in the early to mid-1980s, those seasoned employees have now moved into their retirement years and another group of younger employees are eager to take their places. From the period 2014 through 2018, a total of 17 employees have retired from Nodak, or 26 percent of our employees. Those 17 employees took with them 563 collective years of experience, or an average of 33.1 years of service for each retired employee. That amount of experience is quite different than the average time on the job for today’s employee, but it signifies the fact that Nodak employees know they are working for an organization that takes care of its members as well as its employees.

From the members’ perspective, on the surface it might seem that losing this much experience would be a cause for concern, especially when it comes to restoring service after a power outage. However, with a total employment force of 65 employees, there remains a solid core of experience to guide the 19 new employees who have been hired in the past five years. History has a way of repeating itself and the trend for employee turnover remains relatively high at Nodak, with another 20 employees eligible for retirement within the next five years. Change is inevitable; we are an industry that has witnessed many changes over the last 80 years of our existence. Employment changes are just one of the latest to occur.

These new employees bring with them a new perspective and in many cases a new way of doing things that might even be more efficient than in the past. They embrace the new technology that Nodak has implemented in the past decade without the need for a long learning curve. Safety, commitment to service and respect for our member/owners remains the same, regardless of whether he/she is a new employee or someone who has many years of service with the cooperative.

So, if you see someone driving down the road in a Nodak vehicle or if you hear an unfamiliar voice on the phone that you maybe do not recognize from the past 33 years, rest assured that your power delivery is in good hands for both you and the next generation.

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Hoveland Retires

Greg Hoveland retired from the construction crew with 30 years of service. Greg started with the Fordville crew in 1988, transferred to the Emerado crew and later was promoted to construction crew foreman. We wish Greg well in his retirement.

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Electrical Continuing Education Classes

2019 Electrical Workshops, February 5th and 6th
Minnkota Power Cooperative Headquarters
5301 32nd Ave. South
Grand Forks, N.D.

Minnkota Power Cooperative and the associated systems will again provide an opportunity for area electricians to obtain credits for license renewal by attending one of the continuing education classes being offered throughout Minnkota’s service area.

This marks the 31st year of the successful program, which is aimed at providing area trade allies with the latest information on electrical code and practices.

The electrical workshops will be held Feb. 5 and Feb. 6 at Minnkota Power Cooperative’s headquarters in Grand Forks.

The registration fee is $75 for eight code credits. Taking the class on both days will not qualify for 16 code credits. Registration can be done online at www.minnkota.com. Registration must be completed at least seven days prior to the seminar.

For residential building contractor continuing education workshops, contact your local home builders association.

For more information about the program, call (701) 795-4292 or email questions to contractortraining@minnkota.com.

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