Valley Rural Electric Cooperative, Inc.

10700 Fairgrounds RoadP.O. Box 477

Huntingdon, PA 16652-0477814/643-26501-800-432-0680

www.valleyrec.com

BOARD OF DIRECTORS

James StaufferChairman

Corey BrumbaughVice Chairman

Kevin StatesSecretary

Cindy BigelowTreasurer

Leroy BarnesPREA Director

Robert HolmesAllegheny Director

Mervin BrumbaughGregory HenryLinda McMath

CORPORATE OFF ICE HOURS

Monday - Thursday7 a.m. - 5:30 p.m.

HUNTINGDON/MARTINSBURG/SHADE GAPOFFICE HOURS

Monday - Thursday7 a.m. - 5:30 p.m.

OUTAGES & EMERGENC IES

1-800-432-0680

WHEN YOU signed up toreceive electric service fromValley Rural Electric Cooper-ative, whether that wasrecently or a few years ago,you did not become a cus-tomer of an electric utility.You became a co-op member.

There are several differ-ences between “customer”and “member.” One ofthose distinctions appearsin black and white on theelectric bill you just

received. It’s the capital credits returnlisted on your statement dated Nov. 30.

This line of text on your bill repre-sents the co-op’s best effort to balanceproviding you quality service at anaffordable rate with the need to coveroperating costs.

Private power companies return aportion of profits back to their share-holders. But Valley REC operates on anat-cost basis. As a member-owned, not-for-profit business, the co-op sets ratesto generate enough money to payexpenses, make payments on any loansand provide an emergency reserve. Atthe end of each year, we subtractexpenses from the revenue collectedduring the year. The balance is called anoperating “margin.”

The cooperative allocates and retiresthese margins (known as capital creditsor patronage refunds) based on howmuch electricity you purchased during ayear and how long you have been amember.

At electric distribution cooperatives,like Valley REC, it’s up to the board ofdirectors (or trustees as some co-ops callthem) to make a decision each year onwhether to retire capital credits. Thedecision is based on the financial healthof the cooperative.

Some years, the co-op may experience

high growth in the number of newaccounts. Or severe storms may result inthe need to spend additional funds torepair lines. These and other events mightincrease costs and decrease cash reserves,causing the board to decide not to retirecapital credits. For this reason, Valley’sability to retire capital credits reflects thecooperative’s strength and financial stabil-ity. Valley REC plans to continue a capitalcredits return into the foreseeable future.

Over the years, Valley REC hasreturned nearly $21 million to co-opconsumers. Valley is returning $476,419in this year’s retirement; your portionappears as the bill credit mentionedearlier.

Since a cooperative’s members arealso the people the co-op serves, capitalcredits reflect each member’s ownershipin, and contribution of capital to, thecooperative. This differs from dividendsprivate power companies pay share-holders who may or may not be cus-tomers of the utility.

The capital credits return representsmore than the equity of the business. Itserves as a reminder that decisions aremade based on what’s best for the mem-bership, not on increasing profit mar-gins. The goal is always the same — toprovide safe, reliable electric service atthe lowest possible cost. It’s one of theways “members” differ from “cus-tomers.”

Another difference is that you have asay in how the cooperative worksbecause you can vote at the annualmeeting, where district nominees arechosen to serve on the board of direc-tors. Nominating meetings are held eachyear in three of the co-op’s nine directordistricts to give members of those dis-tricts the opportunity to select nomi-nees. Watch upcoming publications forthe dates of the next meetings. We hopeto see you there.l

D E C E M B E R 2 0 1 4 • P E N N L I N E S 12a

One of 14 electriccooperatives servingPennsylvania and

New Jersey

COOPERATIVEconnection

G U E S T C O L U M N

Capital credits are part of themembership experience

ValleyRural Electric

Cooperative, Inc.

by Doug RolesDirector of MemberServices

UNTIL the advent of nuclear energy, theworld relied upon fossil fuel for comfort,commerce and growth. Early in the nuclearage, television programs predicted personalnuclear reactors would one day provide forour every energy and fuel need.

The reactor was soon used in a varietyof fuel applications, mostly military andgeneration of electricity. Idaho NationalLaboratories actually developed a nuclear-fueled aircraft engine. The concept was laterscrapped by President John F. Kennedywho, rightfully so, felt a reactor flying over-head might not be the best use of suchtechnology.

The space race gave us solar photo-voltaic (PV) technology, miniaturization ofelectronics and Tang, among other things.It’s no secret that electronics permeate ourlives and continue to grow more impor-tant. Look at today’s automobiles, forexample. One report finds that electronicstoday account for between 20 and 30 per-

cent (50 percent for hybrid cars) of auto-motive production, heading rapidly to 50percent. A primary benefit of such tech-nology is better fuel efficiency.

This brings us to the future of fuel.Renewable energy is making steadyinroads into the energy portfolios of coop-eratives. Yet, the future of fuel has manymore intriguing possibilities. Natural gas(NG), electricity, carbon dioxide (CO2) andelectronics all stand to play a major role inthe future of fuel.

The United States has enormousreserves of natural gas. Under proposednew emission rules, the EPA expects NGused for generating electricity to helpreduce greenhouse gas production. Nowhere is where it really gets exciting. CO2,when combined with the proper type ofbacteria, can be converted into ethanol foruse as a vehicle fuel. A working plant isalready doing this near Fort Myers, Fla.Then there is an exothermic process withthe acronym of EcoKap that promises tocombine CO2, steam and NG with ahematite (iron ore) catalyst andmicrowave energy to produce ethanol,diesel, propane, and electricity. Theseprocesses are converting the greenhousegas into an asset rather than a liability.

Finally, there is a project under devel-opment by Lawrence Livermore NationalLaboratory entitled Laser Inertial FusionEnergy (LIFE). Cold fusion has been atopic of research and discussion fordecades. At one time, the potential wasdescribed as “generating electricity in aMason jar on the kitchen table.” Just like

personal reactors, that hasn’t happened,but LIFE has the near-term promise toproduce almost inexhaustible renewable,clean energy.

Where does electricity figure in as afuel of the future? The output of manynew technologies is clean, renewable andabundant electricity. Research in nearlyevery sector of the economy is focused onthe use of electricity as the premier point-of-use fuel because it has no emissionswhen used. Tesla Motors (Tesla) is prov-ing skeptics wrong on a regular basis withits advancements in battery technologyfor the creation of long-distance electriccars. Tesla is now investing a substantialamount of money into building theworld’s largest battery-production facility.Electricity will continue to be the singlemost valuable fuel in terms of advancingmodern civilization.

Future fuels promise to be exciting. Inthe meantime, there is another, much olderfuel that anyone can use today. It requiresno exotic technology or government pro-gram to operate. That fuel is conservation.When we take the time to use our resourceswisely and in the most economical mannerpossible, we create the greenest watt of all,the one that was never used.l

Sources: TechnoAssociates (http://e2af.com/trend/071210.shtml), ecokap.com, life.llnl.gov,Wall Street Journal

Tom Tate writes on cooperative issues forthe National Rural Electric Cooperative Asso-ciation, the Arlington, Va.-based service armof the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives.

12b P E N N L I N E S • D E C E M B E R 2 0 1 4

Valley Rural Electric Cooperative, Inc.

B y T o m T a t e

Nuclear technology and the future of fuel

Electronic payment options save time and treesValley REC members who want to get

away from paper statements and writingchecks can “electrify” their bill-paying expe-rience.The co-op’s E-Bill and pay-by-phone

options allow consumers to pay bills at theirconvenience. The systems provide membersthe ability to receive statements electroni-cally, set up recurring payments and sign upfor new service.“There is no fee to members for using

electronic bill payment,” Terri Cohenour,office services clerk, says. “Some payment

services add an additional charge for phoneor online payments. Valley does not.”One group of members who may be

especially interested in the electronic pay-ment and statement options are Valley RuralElectric Cooperative members who will seemonthly bills for seasonal accounts, insteadof quarterly bills, beginning in January.“Also, their bill is no longer going to be

due the 25th of the month. It will now bedue on the 20th,” Melissa Shetrom, seniorbilling clerk, explains.To use one of Valley REC’s electronic bill

Valley Rural Electric Cooperative, Inc.

D E C E M B E R 2 0 1 4 • P E N N L I N E S 12c

Electronic payment options save time and trees

A 2014Youth Tour student sponsored by Valley REC has beennamed as one of 19 recipients of a national service grant. TaylorBoonie, daughter of Troy and Erica Boonie of Petersburg (Hunt-ingdon County), plans to use the $500 award — from theNational Rural Electric Cooperative Association (NRECA) andgenerationOn — to raise awareness for Special Olympics.

Recipients will use the grants to jumpstart service projectsthat range from providing food for those in need to supplyingart materials to youngsters and visiting with seniors. In order tobe eligible for the grant, students had to attend the 2014 ElectricCooperative Youth Tour, hosted by NRECA in Washington, D.C.

“I chose the Special Olympics because my grandfather (EarlHarris of Huntingdon) has been volunteering with them formany years and I have just started volunteering as well,” Tay-lor explains. “It’s amazing to see the look in the participants’eyes as they get to participate in the events. I wanted to do asmuch as I could to help.”

The goal of Taylor’s project is to promote the SpecialOlympics and to raise enough money to help the local event’ssoftball coordinators to buy newer and safer bases. To help out,Taylor plans on selling awareness bracelets. Taylor’s concern forthe safety of athletes drove her to apply for this grant, whichwill help her raise the money needed for the new equipment.

“Concern for community is the seventh cooperative princi-ple, and we’re so excited our next generation of leaders hasembraced it so readily,” says NRECA CEO Jo Ann Emerson.“We’re excited about being able to provide yet another oppor-tunity for students to expand their horizons while engagingwith their local communities, and we look forward to follow-ing these impressive youth leaders.”

The 19 grants were awarded through a joint partnershipbetween NRECA and generationOn, the youth service division ofPoints of Light, the world’s largest organization dedicated to vol-unteer service.

Detailed information about the grant recipients and their proj-

ects can be found onlineat www.nreca.coop. TheYouth Tour has broughthigh school students toWashington, D.C., forthe past 50 years. Whileon the tour, studentsparticipate in leadershiptraining, engage in one-on-one conversationswith elected officials,jumpstart their nationalpeer network and tourWashington, D.C.

Students apply forYouth Tour throughtheir local electriccooperative. Nearly50,000 students haveparticipated in this pro-gram over the years.

A global youth serv-ice movement, genera-tionOn says it’s igniting

the power of kids to make their mark on the world. As Points ofLight’s youth service enterprise, generationOn inspires, equips,and mobilizes youth to take action through generationOn serv-ice clubs, schools, youth organizations, campaigns, and youthleadership initiatives. It also provides tools and resources toyouth, families and educators to help kids change the world andthemselves through service. For more information, visit genera-tionon.org.

NRECA is the national service organization that representsthe nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives, which provide service to 42 mil-lion people in 47 states.l

payment options, go to Valley’s homepage(www.valleyrec.com) and click on the “BillingInfo” tab and then the “View & Pay Bill”option. To make a payment by phone or toset up recurring payments, members cancall 800-432-0680 and follow the prompts.Payments by credit and debit cards andelectronic check transaction are accepted.“Most people go on the program so that

they don’t have to write out a checkmonthly,” Melissa says. “You do not have tosign up for electronic payment to stop get-ting a paper bill.”

To do away with having a paper bill arrivein the mail, chose the “receive an electronicstatement” option after clicking on the“View & Pay Bill” link.“You can store a credit card in there and

have it make a payment automatically oryou can go in and make the payment your-self,” Melissa adds.For privacy and security reasons, Valley's

employees do not process payments directlyover the phone. To use the automated phonesystem, call the phone number listed aboveand follow the prompts.

GRANT RECIPIENT: 2014 Youth Tour studentTaylor Boonie shows off her Special OlympicsT-shirt. Taylor has received a $500 grant thatshe plans to use to promote the program.

Valley REC Youth Tour student is one of 19generationOn Service Project grant recipientsB y D o u g R o l e s , Director of Member Services

PHOTO BY LUANNE ECKENRODE

12d P E N N L I N E S • D E C E M B E R 2 0 1 4

Valley Rural Electric Cooperative, Inc.

HIGHLIGHTED in this column is arecent addition to the Valley REC team,Michelle Dreibelbis. Michelle joined Val-ley Rural Electric Cooperative in March.She works in the consumer servicesdepartment at the corporate office, onFairgrounds Road, near Huntingdon.

A native of Snow Shoe (CentreCounty), she is a 1992 graduate of BaldEagle Area High School.

Michelle enjoys work environmentsthat let her meet new people. Before com-ing on board with Valley REC, sheworked as a teller at Clearfield Bank &Trust, Huntingdon.

“It was a good job. I enjoyed it,”Michelle says. “It was fast-paced and yougot to see a lot of people.”

Michelle has also worked in the fit-

ness industry. She was employed as anexercise coach for two years by Curves ofHuntingdon, where she taught Zumbaclasses and worked in sales and promo-tions.

While rearing her children, she taughtaquatics classes at the YMCA in Belle-fonte. There she created what she callsher “surf & turf” class that included floorexercises and water aerobics.

Michelle says her experience in bank-ing helped her to quickly learn her newresponsibilities. Her daily routine includesprocessing payments, answering phonecalls and staffing the front desk, whereshe gets to meet many co-op members.

Asked what she enjoys most about hernew position, Michelle says, “The people

I get to meet and the people I work with.”Michelle lives in Huntingdon with her

boyfriend, Ryan Silfies, and her two chil-dren, Josiah, 17, and Katrina, 19. Josiah is asenior at Huntingdon Area High School,where he is a percussionist in the schoolbands. Katrina is pursuing a degree inforensic psychology at Gordon College inBoston, Mass.

Michelle enjoys spending time withfamily. Much of that fellowship revolvesaround “anything outdoors.”

“We kayak, fish, hike and boat,” shesays.

Michelle’s co-workers certainlyappreciate her quick smile and her can-do attitude. She’s one of the people youcan count on. l

B y D o u g R o l e s

Director of Member Services

The directors and employees of Valley Rural Electric Cooperativewish you a Merry Christmas and a Happy New Year!

Meet youremployees

NEW EMPLOYEE: Michelle Dreibelbis works at the corporate office in the consumer services department.