Annual Meeting 2011
Note: The 2012 Annual Meeting will be held March 17 (St. Patrick's Day), 10 a.m. at Carlinville High School.
Progress Continues, Reliability Increases, and New Services are Offered
CEO Spears discussed the Cooperative's ongoing efforts to improve service and reliability. Average outage hours per member were at a 10-year low in 2010 and the number of overtime hours logged by employees was also at a 10-year low. Spears attributed these reductions to the Cooperative's tree trimming and right of way clearance program, which was started in 2008, and to ongoing maintenance and system improvements. He told the crowd of approximately 250 that M.J.M. linemen replaced 432 poles and 159 OCR’s in 2010 while contractor crews cleared 289 miles of trees and brush. Additionally, in the last year, the Cooperative upgraded and replaced substation transformers at the Rinaker and Nutwood substations. He shared with the crowd that it was evident that these efforts, especially the tree trimming, have made a significant difference. When a major winter storm came through the area on January 31st, very little damage occurred in the areas where tree trimming and right of way clearance had taken place.
M.J.M. Electric Cooperative is now offering on-line bill payment and is accepting credit cards, debit cards, e-checks, and automatic payments. Members were encouraged to visit www.mjmec.coop where they could register for EBill. Members can view their current bill, payment history, billing history, make payments or submit meter readings on the EBill site. While these services were only recently made available, many have already taken advantage of them. Because on-line services are now available, it is difficult to justify the expense associated with keeping the office open on Saturday since very few members call or visit the office on Saturday. Members can also obtain assistance from the Cooperative Response Center (CRC), an after hours contact center utilized by the Cooperative.
Spears reported that the Cooperative is moving forward with plans to install an Automated Meter Reading (AMR) system. He explained that the AMR system will allow the Cooperative the ability to have much closer oversight of the distribution system, improve operating and billing efficiencies and will have a payback of 8 years or less. Spears reviewed a number of benefits including meter reading, improved outage detection and restoration efforts as well as improved billing accuracy. He addressed some of the negative and costly attributes associated with a self read system. Additionally, he said that the AMR system will make it possible for members to take advantage of forthcoming energy management/demand response programs and “time of use” rates, which can help members control costs. Spears discussed plans to make the billing period more current. For example, the bills due in March were for January usage under the existing self read system. The AMR system would make it possible for the Cooperative to bill for February usage in March. However, this will create a “catch up” month whereby an additional month of usage will need to be paid at some point in time. Spears stated that the Cooperative did not want to create a hardship on its members and consequently had decided to allow its members 15 months to pay for the extra month. Therefore, members will end up paying for about 2 extra days per month during the 15 month period. He said that substation equipment for the AMR system is being installed by M.J.M. linemen at this time and that H.D. Supply will start changing out meters in May. It will take approximately one year to complete the entire installation.
Members were told that M.J.M. had a Cost of Service Study conducted in 2010, which found that current charges are not sufficient to satisfy the requirements of its lender. The study also found that the monthly Facility Charge, which is currently $20.50, should be $34.50. CEO Spears explained that the Facility Charge covers the cost of the poles, lines, transformers, etc. necessary to make the electric service available when a member decides to use it. Initially the Cooperative was going to increase the Facility Charge by $6.50 per month. The Cooperative had also planned to apply all of the revenue from the “catch up” month on the AMR system. Nonetheless, it has since decided to use some of the money from the “catch up” month to offset the need for a higher increase to the Facility Charge. This action will allow the Cooperative to limit the Facility Charge increase to $2.00, which will take effect in May. Chairman Lehmann stated “we are member focused and accountable to those we serve. Costs are rising for all of us, but when it comes to your electric bill, the rates are set to simply cover the cost of doing business, not to generate profits for distant shareholders.”
Presentations were also made by N. Duane Noland, President/ CEO of the Association of Illinois Electric Cooperatives and by Sabrina Kapp, Manager of Communications for Wabash Valley Power Association. After all of the reports were made, Director’s Robert Lehmann, District 4, Louis Johnson, District 5 and James R. Niemann, District 7 were each re-elected to a 3 year term. Southern Gospel Entertainment was provided by Mark and Pam Fisher, followed by a drawing for prizes. A number of prizes were made available, including a grand prize of a $150 electric bill credit won by Donald Breitwiser of Bunker Hill. Each member in attendance received a $5 bill credit, lunch and an energy saving CFL bulb.
M.J.M. Electric Cooperative is a member owned and controlled, not for profit, at cost electric provider. It is a member of Touchstone Energy an alliance of more than 703 local, consumer-owned electric utilities around the country. M.J.M. Electric is committed to providing superior service based on four core principles: integrity, accountability, innovation and commitment to community. The Cooperative serves more than 9,200 accounts over 1,700 miles of line in Macoupin, Jersey, Montgomery, Bond, Fayette, Greene and Madison counties.
