Open Director Position In District 1

While the national elections of the past November may be fading from your memory, voting for politicians is not the only way we as co-op members can practice democracy.

Every co-op, whether it’s Nodak Electric Cooperative, your credit union, or a farm cooperative, follows the basic principle of democratic member control. Cooperatives are democratic organizations controlled by their members who actively participate in setting policy and making decisions. All these cooperatives work on the same system of one member, one vote. Most often, you are asked to vote and elect individuals who will represent you on the board of directors. These folks are your friends, neighbors and may even be you!

Any member in good standing of the co-op can run for the board. Of our nine board members, three are elected each year at our annual meeting in April, which means with only a few exceptions all members have the opportunity to run for the board each year. This year, we again have three director positions up for election; however, one of our incumbent directors has chosen not to seek reelection. That means we will certainly have at least one new board member when the election is finished. Will it be you?

Being a member of the co-op’s board is an incredibly important position. A director’s decisions impact issues such as service, rates, work plans and bylaws. These positions hold great responsibility and require men and women who understand our communities’ needs and serve the cooperative members’ best interests.

If you or someone you know is interested in hearing more about how to run for a seat on your cooperative’s board of directors, contact us at the headquarters in Grand Forks and we’ll help you through the process. Even if you choose not to have that level of participation, you should all feel empowered to reach out to current board members and candidates, or encourage your friends and neighbors to participate. When our members are actively involved with the cooperative, we are all better off.

As a cooperative, we invite our members to take an active role. In fact, it is critically important to the survival of the cooperative business model that we use our voices to be heard on the issues that matter to us.

The cooperative business model is a great one – it fosters engagement and creates strong communities. Over 100 years ago, President Theodore Roosevelt recognized this value when he said, “The cooperative is the best plan of organization. Under this plan, every business is governed by a board, every person has one vote and only one vote. Everyone gets profits based on their use of the cooperative. It develops individual responsibility and has a moral, as well as financial value.”

Those words are more true today than ever before. Let your voice be heard and take the time to participate in your cooperative’s election and your cooperative’s board of directors.

In closing, I’d like to thank Director Lee McLaughlin for his 25 years of dedication to the Nodak board of directors. His countless contributions have been invaluable in making Nodak what it is today. We wish him luck in his next adventure, and extend our heartfelt thank you for his service on our board.

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Retirements

Vern Dubuque
Engineering Representative

After 42 years of employment at Nodak Electric, Vern Dubuque has retired. Born and raised on a farm west of Grand Forks, Vern started working part time at Nodak in May 1975. He was promoted to full-time status in January 1976 as an engineering representative, a position he held for his entire career.

Vern and his wife, Pam, have two children and two grandchildren. In his spare time, Vern enjoys deer hunting, fishing and UND hockey. He is looking forward to traveling and spending more time at the lake in the summer.


Lee McLaughlin
Director, District 1

Lee McLaughlin, a Nodak board member since 1991, is retiring.

McLaughlin also represents Nodak on the Minnkota Power Cooperative board and represents Minnkota on the North Dakota statewide board. Through the National Rural Electric Cooperative Association, he became a cooperative credentialed director and attended board leadership classes.

McLaughlin earned a bachelor’s degree in agricultural economics from North Dakota State University. He is a former board chair of the Walsh Rural Water District and Walsh County Farmers Union. A former county fair board member, he served 14 years as a 4-H leader.

McLaughlin spent 11 years as vice president of agricultural lending at Bremer Bank in Grafton before returning to the family farm in 1982. In 2008, NDSU honored McLaughlin and his wife, Judy, with the Outstanding Agriculturist Award. The McLaughlins retired from farming in 2011.

They are members of St. Joseph’s Catholic Church in Lankin, where Lee has served in leadership positions. The McLaughlins have three grown children and seven grandchildren.


Wayne Rocksvold
Warehouseman

Wayne Rocksvold, warehouseman, has retired after 31 years of service.

In September 1986, Wayne started at Nodak as a warehouseman, which was a job of many duties.

Retirement for Wayne will include spending more time with his wife, Julie, two kids and playing with his two young grandkids. He will also enjoy cleaning his fleet of motorcycles, a trip to Sturgis and spending every day with his dog, Walter.

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Three director positions open

Nominating committee members appointed
The board of directors has appointed the committee on nominations. At its meeting scheduled for 10 a.m. Thursday, Feb. 16, 2017, at the Nodak headquarters building, 4000 32nd Ave. S., Grand Forks, the committee shall prepare and post a list of nominations for the director positions slated for election.

Committee members are: Richard English, Grafton, 701-352-3266; Daniel Flanagan, Edinburg, 701-993-8544; Jason Hanson, Webster, 701-395-4317; Richard Hanson, Grand Forks, 701-739-0950; Lawrence Kadlec, Pisek, 701-284-6289; Neal Klamm, Thompson, 701-559-2198; Julie Lemm, Hillsboro, 701-636-5465; Glenn Rethemeier, Larimore, 218-779-3222; and Paul Retzlaff, Aneta, 701-326-4235.

Three director positions open
Three director positions will be open at the annual meeting on April 6, 2017. The directors whose terms expire in 2017 are:

  • District 1 – Open
  • District 2 – Pete Naastad
  • District 3 – Steve Smaaladen

Nomination by committee
If you are interested in being nominated or would like to nominate an individual, you may contact a committee on nominations member.

Nomination by petition
Nominations may also be made by petition signed by at least 15 cooperative members. The signed petition must be received at Nodak’s headquarters by Monday, Feb. 20, to verify nominee qualifications and allow sufficient time for voting by mail.

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New year. Same great rebates!

Add home comfort and energy efficiency to your New Year’s resolutions with help from Nodak Electric Cooperative

New electric water heater rebates

Enjoy reliable hot water and save money at the same time with Nodak Electric Cooperative’s electric water heating rebate program.

Water heating is one of the largest energy expenses in most households, making it a smart area to try to improve efficiency. New electric water heaters are among the most efficient and durable products in the market today. With great new incentives from your cooperative, it has never been more affordable to upgrade.

All rebate-qualifying water heaters must be on the off-peak program, which allows your water heater to draw electricity during times of low demand, such as late at night, when it’s less expensive. The water heater is temporarily turned off during high demand periods, both saving energy and money on your monthly bill. Participants in the off-peak program also receive a lower monthly rate for the electricity their water heater uses.

Rebate requirements:

  • Must be new purchased electric water heater installed on Nodak Electric’s system.
  • Must be on off-peak/load control.
  • Must be 240 volts and hard-wired.
  • Tankless water heaters do not qualify for rebate.
  • Hybrid heat pump water heaters do not qualify for rebate.
  • Rebate limit of $500 per member-account.
  • Maximum $300 rebate for coupling of two water heaters in parallel or series.
  • Multifamily dwellings do not qualify for rebate; exceptions considered on case-by-case basis

Contact Nodak Electric Cooperative today to find out more about the water heater rebate program!

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Nodak awards $2,000 in grants through RDFC funds

Thriving, prosperous communities and nonprofit organizations are essential to the strength of our region. To build that strength in its service area, Nodak Electric Cooperative awarded $2,000 in grants to Gardar Township Hall and Adams Rural Fire District through the Rural Development Finance Corporation (RDFC).

RDFC provided the grant funds in order to make more people aware of its larger loan program that funds community-based projects and nonprofit entities with low-interest financing.

The Gardar Township Hall project received $1,000 through Nodak Electric that was used for expenses related to a major renovation effort on the 100-year-old building. The building was moved this fall to a new, structurally sound foundation where several projects are set to begin.

As a lifelong resident of the township, Nodak board chairman Paul Sigurdson is happy to see the town hall being brought back to life. He remembers when the building was bustling with community dances, civic organizational meetings and school basketball games.

“I’m afraid there wouldn’t be anything left of Gardar if the township hall had gone,” Sigurdson said. “It’s kind of a nostalgic place. We would use it for all sorts of community events and clubs.”

Residents believe the building can once again be the heart of the community. So far, about 75 percent of the $50,000 fundraising goal for Phase 1 of the project has been reached. In addition to moving and stabilizing the building, funds will be used to install new doors and windows, re-side the building and replace the roof.

Phase 2 of the project, which is estimated at $55,000, would include the installation of bathrooms, kitchen facilities, electrical upgrades and a heating system.

The project wouldn’t be possible without countless volunteers who stepped up to provide expertise, labor, materials and other services. Resident Dawn Eckhardt has been coordinating donations for the project locally and through a GoFundMe page. She is also keeping people informed through Facebook.

“It’s been amazing to see the number of people not just locally but all over the country who are connecting with the project and sharing stories,” Eckhardt said. “We already have people contacting us about when it will be ready to start holding events.”

To donate to the project, visit:
Facebook: www.facebook.com/GardarNDTownshipHall
GoFundMe: https://www.gofundme.com/2gn322c

New Adams fire department

The Adams Rural Fire District also received a $1,000 grant to help construct a new 6,250-square-foot fire hall on Main Street. Nodak Director Luther Meberg presented the check to Fire District Board President Jody Erickson this fall.

“Every little bit helps,” Erickson said. “It keeps our costs down, and we’re very thankful for that.”

The $300,000 project replaces the town’s existing fire hall that was built in the 1960s. Space limitations were a driving factor in building new, a decision that received strong support from the community, Meberg said.

“There were height issues with the fire trucks,” Meberg said of the existing building. “They could barely get them inside the door. The place was jampacked.”

The new fire hall will have plenty of room to work on vehicles and has a dedicated training area for the 15-20 volunteers and the associated quick response team. The new building provided an added bonus to the community, as a new mechanic shop will soon open in the old fire hall.

“It’s a very cool project,” Erickson said. “Filling a hole on Main Street in a small town with something like this doesn’t happen very often.”

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Trip of a lifetime

It’s not often that writing a two-page essay leads to the trip of a lifetime. But for Britton Bina, the extra effort won him an all-expense-paid week in Washington, D.C. The junior at Park River Area High School was one of 1,700 students from around the country selected to participate in the 2016 Electric Cooperative Youth Tour held June 11-17. Bina had the opportunity to learn more about electric cooperatives, visit famous historical monuments and get to know fellow students from cooperatives across the country. Th e action-packed tour included visits to the Smithsonian, the National Archives, Arlington National Cemetery, the WW I, Vietnam and Korean War Veterans Memorials as well as the Jefferson and Lincoln Memorials and the Washington Monuments.

In addition to sightseeing, Bina and other North Dakotans on the tour had the chance to meet and ask questions of the North Dakota delegation. Nodak Electric Cooperative sponsored Bina, whose parents, Cameron and Estelle, are Nodak members. Bina’s winning essay was in response to this topic: Pick one of the four Touchstone Energy® core values – innovation, integrity, accountability and commitment to community – and describe how you see this in action at Nodak Electric Cooperative. Bina wrote about Nodak’s commitment to serving its members no matter the circumstances. He highlighted the efforts to bring power out to farms in the 1940s and the significant work necessary to restore electric service during storms. “Through rough times, the merging of companies and the harshest of weather, Nodak has and will continue to give people electricity when they need it,” Bina wrote. He also highlighted when the lights came on for the first time for his great grandfather. “Since my great grandfather flipped that switch many years ago, many amazing lights have shone bright, all because Nodak has the commitment to keep them shining bright,” Bina’s essay concluded.

The Youth Tour program continues to foster the grassroots spirit of the rural electric cooperatives by demonstrating to our youth how our government works and what the electric cooperative business model is all about. Since 1964, the nation’s electric cooperatives have sponsored about 50,000 high school students on education sessions in Washington, D.C. Nodak will be looking to sponsor another deserving student for the 2017 Youth Tour to be held June 10-16. For more information, check our this page. The essay deadline is Jan. 31, 2017.

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2017 Director Elections

Nodak Electric Cooperative, Inc. will hold its 77th annual meeting Thursday, April 6, 2017, at the Alerus Center in Grand Forks, N.D. Election for three positions will be held at the annual meeting. Members who desire to serve as a member of the Nodak Board of Directors may be nominated in one of two ways:

  1. By the Nominating Committee. The committee will meet Thursday, Feb. 16, 2017.
  2. By a petition signed by 15 members of Nodak in good standing. The petition must be submitted to Nodak’s office 45 days prior to the annual meeting (Monday, Feb. 20, 2017).

If you are interested, or would like to know which district you reside in, please contact Nodak’s office at 701-746-4461 or 1-800-732-4373 for more information

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Perspective

Your cooperative purchases 100 percent of its wholesale power from Minnkota Power Cooperative, our generation and transmission cooperative. As you are probably aware, the power we purchase from Minnkota comes from several different resources. The lion’s share – about 60 percent – comes from coal and the other roughly 40 percent comes from renewable sources such as wind. Over the years, we’ve advocated an “all-of-the-above approach” when it comes to energy production and use, meaning that we believe we should use all of North Dakota’s bountiful resources to serve the energy needs of our membership. In part, that’s why today we have a generation mix that includes coal, wind, hydro and other small generation sources.

So, you could say that because of the generation mix we purchase, through the normal course of doing business with Nodak, you already receive roughly 40 percent of your power from renewable sources; however, that is a bit of an oversimplification. Actually, all of the energy produced by Minnkota is placed on the high-voltage transmission system and is essentially mixed together and sold to Minnkota’s 11 member cooperatives, with the balance being sold into the wholesale markets. Once the energy is placed on the grid and all blended together, you can’t really be sure where the renewable energy is delivered, or where the fossil fuel-based energy is delivered.

To address this issue, the Midwest Renewable Energy Tracking System (M-RETs) was created and each kilowatt-hour of energy produced from a renewable source in the region is given a Renewable Energy Credit, or REC. An REC is a verification that electricity was generated from an eligible renewable resource before it was introduced into the electric grid. These RECs are then bought and sold or traded among those who want to be considered the end user of that renewable energy, and the REC is then retired when the energy is used. M-RETs tracks each of these RECs to ensure they are only used once.

Someone’s desire to have RECs retired on their behalf can come from a wide variety of interests. Some power companies have a mandate to sell a certain portion of their electricity from renewable sources, yet may not have enough of their own renewable generation to comply. Some companies are making products that they have a desire to market in a manner indicating they were produced with less environmental impacts. Federal government buildings are under a presidential direction to seek more renewable energy. And finally, some homeowners have a desire to utilize more renewable products due to their position on environmental impacts. Whatever the reason may be, through the purchase and retirement of RECs renewable energy goals can be attained.

To that end, we are introducing the Infinity Renewable Energy program. Nodak members who wish to purchase renewable energy for their home or business now have the option to do so by participating in our Infinity Renewable Energy program. Options to purchase 100 kilowatt-hour blocks of renewable energy, or 100 percent of your monthly energy needs, are available to those who wish to have RECs retired on their behalf. Participation in the program only takes a phone call and has no long-term commitments. On page 5, you’ll find a complete description of the program features and cost. If this is something you’re interested in, please call us and we will help ensure that the energy you use is recognized as coming from a renewable source.

In closing, I want to recognize that this publication will reach you during the holiday season, and I want to express our heartfelt thank you for your patronage and support this past year. We also want to remind all of you to think safety with your holiday lighting and decorating so we may all have a “merry and bright” holiday season. Happy holidays.

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Thank You, Roger; District 2 Director Needed

Cooperatives operate according to a set of seven core principles. One of those principles is Democratic member control. What that means is that we are governed by policy-driven initiatives set by a board of directors made up of member-owners. Member participation in electing that board of directors, as well as serving on the board of directors, are key factors in ensuring the cooperative is operated according to the expectations of our member-owners.

In the coming weeks, members of District 2 have a unique opportunity to help your cooperative by serving on its board of directors. Longtime director Roger Diehl has retired from the board after dedicating 40-plus years of service to Nodak, leaving a vacancy on our board. According to our bylaws, the remaining board members must appoint a replacement to serve in director Diehl’s position until the next election in April 2017. Accordingly, the board is asking interested parties to let their interest be known.

Your board of directors fulfills many vital roles for the cooperative that can be both challenging yet rewarding. Not only are they the ultimate decision-makers when it comes to setting the direction of the cooperative, they are also the local connection to the cooperative membership. Board members represent our eyes and ears throughout our service area. They bring back member concerns and suggestions, provide a local neighbor for you to discuss cooperative business with and represent your interests at the board table.

In the coming years, the co-op board and management will face many challenges working to provide reliable service at affordable rates while navigating the onslaught of new regulations and a push toward a carbon-constrained world. Your cooperative can only be as strong as the people who actively participate in it, so your board of directors is looking for someone with a strong commitment and a desire to help Nodak through the challenges that lie ahead.

If you are a Nodak member residing in District 2, meet the qualifications to be a director and want to help shape Nodak’s future, please let us know. Send us a letter expressing your interest and explaining your unique abilities for serving as a Nodak director. For more information regarding the requirements and process for submitting your letter of interest, refer to the notice on page 2 or go to our website at www.nodakelectric.com.

And finally, I want to express our heartfelt gratitude and thanks to director Diehl for his many years of service on our board and his unwavering support to Nodak Electric and cooperatives in general. He has been a zealous advocate for the betterment of our cooperative and his contributions to making Nodak what it is today will be a lasting legacy. Thank you, Roger.

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Facility charge explained

Undoubtedly, the most unappreciated and misunderstood part of anyone’s electric bill is the facility charge, the monthly fee that is there no matter how much electricity we use. From a rate perspective, it’s one of the most frequent things we get questioned about, so I thought I would use my space here to shed some light on this part of your monthly bill.

There are two basic components to most power bills – the fixed monthly charges and the charges that vary with how much electricity you use. Facility charges are the fixed part of the rate that is there to help ensure equity among ratepayers. If you think about your own property – whether it is a house, farm or business – you will realize that for each of them Nodak has made a significant investment to bring power to that location.

In addition to these site-specific investments to bring power to your home or business, there are also investments needed to serve everyone and are shared by the entire system. All this initial infrastructure cost must be somehow recovered in our rates and be constantly maintained to provide safe, reliable power to our members.

In addition to the electric infrastructure investment, there are a whole host of expenses we incur that have nothing to do with how much electricity each member uses. One very simple example: at the end of each month, we read your meter, calculate and audit your bill, and have it printed and mailed to each consumer. This is a relatively small cost, but illustrates that with some expenses, regardless of how much electricity you use, it costs approximately the same to perform this function for all members in each rate class. Because of this, we include those expenses in the facility charge for each of those rate classes.

If we didn’t include these costs in the facility charge, they would have to be included in the cost of power so Nodak could bring in the proper amount of revenue each month. If we used that approach, the average energy user would pay about the same as they do now, while those who use very little electricity would pay significantly less than their share of the fixed costs of operating the business, and large users would end up paying many, many times more than their fair share of those costs.

I like to think of it in terms of billing you for the power cost in one part of your bill and billing you for what it costs us to deliver the power in another area. The facility charge is meant to cover what it costs to deliver the power to you, and the rest of the charges are meant to cover the cost of the electricity we purchase on your behalf.

Obviously, the cost to deliver power to members can vary significantly. In high-density urban areas, we typically have multiple accounts fed off the same transformer, and we use much less distribution line per metering point than we would for a rural account that has its own transformer and significantly more dedicated distribution facilities. Conversely, some of our largest accounts have an entire substation dedicated to a single account because they have such large power requirements. For this reason, we have different monthly facility charges for the various rate classes based on the cost we incur to deliver power to members of that rate class, independent of how much power is consumed.

Consequently, urban accounts pay a lower monthly fee than rural accounts do, while commercial accounts require a higher monthly fee due to the more expensive metering and large transformers required for those accounts. All this is done in an attempt to bill each rate class an amount closely resembling what it costs to serve that particular rate class.

Hopefully, you can see that a lot goes into designing rates that are both fair and equitable among our members and between different rate classes. Nobody really likes the facility charge, but it is necessary to ensure we have rate equity.

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Staying Connected

When we gather to celebrate the 76th annual meeting of Nodak Electric Cooperative, you’ll see the theme chosen for our event is “staying connected.” As members of an electric cooperative, staying connected is an important notion. Staying connected with your cooperative by attending the annual meeting, participating in cooperative governance and using the latest technology to do business with your co-op are all ways to assist in ensuring Nodak provides the level and quality of service you desire as an owner.

Staying connected with the other member-owners of your cooperative through meeting attendance, political action committee membership and social media engagement brings us all together as a grassroots advocacy group that has strong influence with lawmakers in Bismarck and Washington, D.C. This co-op connection is an important resource for us as we continue to advocate on behalf of our membership to state and federal leaders and regulators.

In 2015, the EPA issued what’s being considered its most far-reaching environmental regulation ever, the Clean Power Plan. Enacted at the direction of the Obama Administration, the Clean Power Plan calls for reductions in carbon dioxide emissions from existing fossil fuel power plants averaging 32 percent across the United States. Each state was given a target level of reduction to collectively achieve the President’s goal. North Dakota was saddled with one of the highest reductions across the entire country at 45 percent! In light of the fact that more than 30 percent of the power we serve to our members already comes from renewable wind and hydroelectric resources, we feel this federal push away from coal goes too far. Nodak has always supported a resource mix that uses all of North Dakota’s bountiful natural resources in a thoughtful, deliberate way. That is why we continue to fight on your behalf and support the 28 states and dozens of others who are litigating this overly burdensome rule.

Another way we work on your behalf is our efforts to keep rates affordable through sound planning for the future. At the end of 2014, we embarked on a long-range plan to help stabilize your electric rates by creating a revenue deferral plan. Through this plan, $4 million was placed in an account to be used in future years to ease the effects of wholesale power cost increases. In 2015, our wholesale power provider put in place a 5 percent rate increase that would ultimately raise the cost of our wholesale power by $3.1 million in 2015. Half of the revenue deferred from previous years was brought back onto our operating statement in 2015 to help delay the need to pass along that wholesale rate increase to our members. Wholesale power costs make up 85 percent of our total operating costs, so being able to soften the effects of wholesale power cost increases is only possible through this long-term planning. Your retail cost of power from Nodak did not increase in 2015.

Technology continues to play a key role in our efforts to provide information and interaction with our membership. In 2015, we added the pay-by-phone feature where members have 24-hour access to account information and payment options right over the phone. We also added our interactive outage map to our web pages so in the event of service disruption, members with Internet access are able to assess the extent of the problem. These new features are just a few examples of how we continually strive to make connections with your cooperative easy and informative. For quite some time now, members have been able to view and pay bills online, sign up for services, read The Nodak Neighbor and much, much more. Of course, you can always pick up the phone or stop into our office and we will be happy to serve you the old-fashioned way – face to face.

The future looks bright for your cooperative. Although weather created a small dip in sales for 2015, we grew by almost 500 new services and our crews installed more than 210 miles of new line. Steady growth in our membership is the key to keeping costs in check. As costs escalate over time, the ability to share those among a larger, more diverse group benefits everyone. On behalf of the board and the staff at Nodak, we want to thank you for the opportunity to serve the membership and manage our growing cooperative.

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New payment option available

New payment option available

On page seven of this month’s Nodak Neighbor you will see an article announcing the rollout of our newest option for paying your Nodak Electric bill, Pay-by-Phone. This is the newest of the many options members have for paying their bill. We brought this new service online for a number of reasons, but security and convenience top the list.

For those members who don’t have a computer with Internet access, or for those who do but prefer to transact their business over the phone, this option is for you. Once your account is set up, Pay-by-Phone allows you to make a payment to Nodak without giving any of your information to a live person. In this method, the entire transaction is done directly with computerized prompts, quickly and easily, 24-hours a day, seven days a week, totally secure.

Now, if paying by phone isn’t exactly your cup of tea, we have a host of options for you to choose from. Signing up for electronic billing will get you the opportunity to view your bill online, pay by credit card or electronic check, print a receipt, review previous months’ bills, etc., all online. Once a month, you will receive an email reminding you that your bill is ready, and you simply log on to our website and pay it over the Internet.

For those who prefer to have the entire process automated, as I do, Auto Pay Bank Draft is for you. When you sign up for this automatic payment plan, your payment is automatically drawn from your checking or savings account on a certain day each month. You still receive a paper “copy” of your bill for your review reminding you of when the payment will be taken out of your account, and for how much. The rest happens all by itself and you don’t have to worry about remembering to pay the bill, write a check or mail it in. It’s very simple.

Of course, you can always drop a check in the mail as folks have done for many years, pay in the drop box in our parking lot or stop into the front desk during business hours and take care of it face-to-face with one of our customer service representatives.

Offering multiple options to transact your business is important to us because we want to make it as convenient as possible for you, our member-owners. We also want to ensure the highest level of security and dependability in each of the options we provide. All of our payment methods employ the highest level of safeguards available, so rest assured your information is safe with us.

Of course, we are always happy to see our members who stop into the headquarters in Grand Forks. In fact, we look forward to it. So, if you are one of the folks who prefers to take care of business in person, stop in and say “hi” the next time you’re here. If you prefer one of the more high-tech options, check out one of the many alternative payment methods we have to offer. You’ll be glad you did.

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