GobNob wind turbine completed!Winter weather doesn’t stop construction crews

Farmersville, Ill. has a new landmark. Th e sleek, 230-foot tower on RECC’s GobNob wind turbine, sitting on a hill just a few hundred yards off Interstate 55, is a monumental sight that can be seen from up to 10 miles away. Oh, and it’s also a source of renewable energy for co-op members with no fuel costs, no pollution and no greenhouse gas emissions. All of the electricity produced by the wind turbine will be used by the 382 consumers on RECC’s Farmersville substation, and all RECC members will benefi t from the savings in the co-op’s monthly wholesale power purchases. Th e turbine’s 900 Kilowatts is about 5 percent of RECC’s peak demand, and it’s expected to generate about 2.6 million kilowatt-hours per year. RECC’s board of directors and staff have been pursuing the wind turbine project for two years. Th is is only the second turbine in the country to be owned and used by an individual co-op, and the

Page 2 November Board report

Page 3 Helping you save money

Pages 4-5 GobNob construction photos

Page 6 News & Notes

Page 8 Marathon water heaters

Volume 60, #1

January 2009

(Continued on page 4)RECC’s GobNob wind turbine can be seen from miles around on top of the coal waste pile at the former Crown I coal mine just east of Farmersville.

Clean

Loca

l

Renewable

EWT model chosen was the third to be installed in the U.S. Most of the thousands of turbines now in operation are part of large “wind farm” projects that sell electricity into the transmission grid. Capable of generating some electricity in winds as light as 4 mph, the EWT reaches full capacity in

about 26 mph winds. Th e generator automatically rotates on top

of the tower to face into the wind, and the blades’ pitch is adjustable to operate as effi ciently as possible. Th e turbine tower was erected before Christmas, but windy

conditions kept the blade assembly from going up until

Dec. 28. Internal wiring was completed in early January to get the turbine “online.” RECC President/CEO David Stuva says the GobNob project is the result of cooperation from many people and organizations. “First of all, we’re grateful to the Illinois Department of Natural Resources for granting a lease at the old Crown I mine property,” he says. Th is is a fi rst for the state of Illinois, and it

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Rural Electric Convenience Cooperative3973 W. State Route 104

P.O. Box 19

Auburn, IL 62615

217/438-6197

Fax: 217/438-3212

e-mail: recc@recc.coop

Board Of DirectorsJimmy L. AyersChairman

Chris WilcoxVice Chairman

John A. BeattySecretary-Treasurer

Cassie L. EigenmannAsst. Sec.-Treasurer

Thomas “Ted” DowsonLee W. Marten Mel RepscherErv ShoresDavid E. White

President/CEODavid Stuva

Rural Hilights (USPS 473-140) is published monthly for $3 per year by Rural Electric Convenience Cooperative Co. Publication Offi ce, P.O. Box 19, Auburn, IL 62615. Periodical postage paid at Auburn, IL and at additional mailing offi ces. Postmaster: Send address changes to Rural Hilights, P.O. Box 19, Auburn, IL 62615.

Dana Smith, editor

Regular Board meetingNovember 24, 2008 Th e regular monthly meeting of the board of directors of Rural Electric Convenience Cooperative Co. was held at the cooperative headquarters at 5 p.m. on Nov. 24, with all members present. Also present were President/CEO David Stuva; Manager of Offi ce Services Dean Fuchs; Manager of Operations and Maintenance Lou DeLaby; Field Engineer and Purchasing Agent Martin Hinton; Administrative & IT Specialist Sandy Lex; Senior Member Accounts Representative Shelley Crocks; AIEC Vice President of Engineering Carl Dufner and Attorney Jerry Tice. * Th e minutes of the Oct. 27 regular board meeting, and special meetings of Nov. 10 and Nov. 17, were approved as presented. * CEO Stuva called on Dean Fuchs and Shelley Crocks to present the delinquent account write-off s for the year 2007. Ms. Crocks reported management recommended writing off $8,356.28 in delinquent accounts, which represent .08 percent of the cooperative’s 2007 electric revenues * CEO Stuva introduced Carl Dufner from the AIEC, who reviewed the proposed electric rate changes for 2009. After discussion, the board agreed to defer fi nal approval to a December board meeting. * CEO Stuva introduced Sandy Lex, who, along with Dean Fuchs, reviewed a proposed “whistle blower” amendment to the cooperative’s Ethics Policy. Th ey explained the general nature of the policy would provide protection to co-op employees who report wrongful or harmful conduct by management or directors of the cooperative. Th ey also noted that a record retention policy is required, which will be reviewed with the cooperative attorney. * Th e Prairie Power Report was given by Director White. * CEO Stuva reported that there had been no IMEA Directors Meeting since the last meeting of the cooperative. * Th e AIEC report was given by Director Beatty, the alternate RECC director to the AIEC board. * Th e Attorney’s Report was given by Attorney Tice. He noted no recent communication had been provided from the city of Taylorville regarding the co-op’s franchise request.

President/CEO’s Report CEO Stuva reviewed the following reports which had either been mailed or distributed to all directors and attorney: Member and Public Relations, Job Training and Safety, Meters and Outages, Operations and Maintenance, Engineering and Construction, Cash Disbursements Summary, and Check Listing. Th e Board accepted the reports. Financial and statistical reports for October 2008 were reviewed and accepted. CEO Stuva also: * Reported that October 2008 kWh sales were 29 percent higher than October 2007, due to the grain drying season starting later. * Reported that the wind turbine is expected to be delivered on Dec. 15. Plans are being made for the crane to erect the turbine and other construction arrangements. Board Action Th e Board acted on the following: * Approved the application for, or reinstatement of, membership and electric service for 21 persons. * Approved delinquent account write-off s totaling $8,356.28 for the year 2007. * Approved the proposed “whistle blower” amendment to the cooperative’s Ethics Policy. * Approved an increase in the hourly fee paid to the Cooperative Attorney. * Voted to hold a special meeting on Dec. 18 at 6 p.m. to review the 2009 budget and other items. * Appointed delegates to meetings associated with the NRECA Annual Meeting in February 2009. * Approved a Resolution authorizing a loan from CoBank for the buyout from PPI and the purchase of the nine substations and associated transmission facilities serving RECC’s members. Th e meeting adjourned at 9 p.m.

Special Board meetingNovember 10, 2008 A special meeting of the board of directors of Rural Electric Convenience Cooperative Co. was held at the cooperative headquarters at 6 p.m. on Nov. 10, with all members present except John Beatty. Also present were President/CEO David Stuva; Manager of Offi ce Services

Board report

(Continued on page3)

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Dean Fuchs and Attorney Jerry Tice. Consultant Martin Blake participated by telephone. * Th e Board entered executive session to discuss RECC’s buyout negotiations with PPI. After the executive session ended, the meeting adjourned at 9:55 p.m.

Special Board meetingNovember 17, 2008 A special meeting of the board of directors of Rural Electric Convenience Cooperative Co. was held at the cooperative headquarters at 5 p.m. on Nov.17, with all members present. Also present were President/CEO David Stuva; Manager of Offi ce Services Dean Fuchs; Director of Member and Public Relations Dana Smith and Attorney Jerry Tice. * CEO Stuva presented Work Order Inventories for the period

October 2007 through August 2008 totaling $1,407,189.41 for approval. He reported that RECC had a loan application pending with RUS and upon approval of the loan, RECC would be able to draw funds in 2009 to pay $1,126,711.91 of the foregoing work orders and draw additional funds of $553,800.00 to reimburse the general fund for previously approved work orders. Th e board approved the work orders for submittal to RUS. * CEO Stuva presented the 2009 Capital Expenditure Budget proposal for $20,000. He noted that one large truck replacement was being deferred for another year. Th e board approved the Capital Expenditure Budget as proposed. * CEO Stuva reviewed the process the cooperative has gone through in investigating, reviewing and negotiating its buy-out of the wholesale power contract

with Prairie Power, Inc. Th e buy-out cost as certifi ed by PPI to RECC on Nov. 17 in the amount of $5,602,693.00 was reviewed. Th is includes the purchase of nine substations and 22.7 miles of transmission lines serving RECC members. RECC will be also required to pay $183,350.93 to reimburse PPI for its withdrawal costs as required by the PPI Withdrawal Policy. Attorney Tice reviewed the proposed Withdrawal Agreement and explained the procedures for fi nancing the withdrawal, completing and signing the withdrawal agreements, and closing the transaction. After discussion, it was approved unanimously to accept the PPI payment and terms for withdrawal of RECC from PPI and termination of the wholesale power contract and transmission services agreement. Th e meeting adjourned at 8 p.m.

Some members have a hard time believing that we’d like to help them reduce their monthly electric bills. After all, what business doesn’t want to sell more of its products? We do want to sell electricity, and each kilowatt-hour sold helps pay for the distribution system we use to deliver clean, effi cient electric energy to more than 5,700 consumers. But unlike most businesses, “profi t” is not our ultimate goal. Meeting the needs of our member-owners is what we’re really about. So, we help you determine the most effi cient way to use energy at home or work. For tasks such as lighting, electricity is the obvious choice of energy, but are you using the best technology available? We’ve encouraged more effi cient fl uorescent lighting and high-pressure sodium outdoor lighting for years, and last year we gave away more than 4,000 compact fl uorescent bulbs to our members. For some tasks, such as water

heating, you have a choice of fuels. We’ve promoted the most effi cient electric water heaters, educated members on saving hot water, and taken advantage of the storage capability of water heater tanks by cycling the heater elements to reduce our peak demands in our Dual Meter and Peak Switch programs. Th is reduces the operating cost for the owner, and helps reduce our wholesale power costs, which benefi ts all members. For space heating, the proven effi ciency of heat pumps and geothermal systems is saving energy and money for hundreds of co-op members. Equipment rebates and our Dual Meter rate make these systems even more aff ordable.

Member programs RECC off ers several programs to save money, with our products as well as others. Our Energy Resource Conservation Loans at 5 percent interest can be used for upgrades to

We want to help you save money!high-effi ciency electric heating systems, and to improve home weatherization. We also off er helpful information online and in print for home energy audits, appliance usage, home building ideas and much more. Allied programs including the PNG long distance service, DTN SpeedNet wireless Internet, and membership program for Air Evac Lifeteam off er more savings on services that are important to our rural area. Another unique program from RECC and other electric co-ops across the country is the Cooperative Connections card. Th is free card gets you discounts from many local, regional and national businesses. It even saves on prescription drug costs with discounts at most pharmacies on name-brand medicines. It’s all part of looking out for you, our members, for your energy needs and beyond. We really do want the best solution for you!

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advances their goal of promoting more renewable energy sources. Our turbine will not aff ect the seasonal hunting programs that the Department of Natural Resources off ers at the site. “We also needed the fi nancial assistance provided by the USDA Rural Development program, Illinois Department of Commerce and Opportunity and the Illinois Clean Energy Community Foundation. Th eir grants helped reduce our upfront expenses, and the remainder of the project cost was fi nanced with

a zero-interest loan through CoBank, in the federal Clean Renewable Energy Bond program.” A dedication ceremony is planned at the GobNob site in February, with federal, state and local offi cials on hand to celebrate the project completion. Watch the local media for details, or check our Web site at www.recc.coop. Photos of the construction process are shown on pages 4-5 of this newsletter. GobNob… a reason to fi nally be glad we live on the windy prairie!

(Continued from page 1)

The three 75-foot sections of tower were delivered a week before Christmas. A bulldozer was on hand to assist trucks up the hill, or when slipping on ice or mud at the top.

Each section of tower was lifted by a 550-ton crane, and bolted into place by the installation crews.

The main crane takes about eight hours to assemble and disassemble, with its complex rigging and multiple cable pulleys.

Construction completed

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The nacelle sits on top of the tower, and will hold the generator and blade assembly.

The generator, weighing 62,000 pounds, is prepared for lifting to the top of the tower.

Crews wait for the generator to be gen-tly placed onto the nacelle, where it’s securely bolted in the vertical position.

The three blades, each 80 feet long, are attached to the rotor hub on the ground. The blades were lifted to the generator just after dark on Dec. 28.

It’s a long way down on the 230-foot ladder inside the tower! There are two “fl oors,” at the tower joints, where workers can stop to catch their breath when climb-ing. Fortunately, most of the electronics are located at the bottom of the tower.

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News & NotesNews & Notes

RECC is sponsoring up to 10 area students for the popular Rural Electric Youth Day in Springfi eld on April 1, and a chance to win a free trip to Washington in June. Th e Youth Day program includes touring the Capitol, the new Abraham Lincoln Museum and other historic sites, and meeting with their state legislators. Two of those students will be selected to attend the Youth To Washington trip, June 12-19, with about 1,000 other young people from around the country. Any junior attending a high school in RECC’s service area is eligible for these expense-paid programs. Application request forms will be sent to our local schools later in January, or students can call our offi ce. We will mail a complete application kit and background information directly to the student. Th e application includes a summary of the student’s school and civic activities and accomplishments, and a brief essay question pertaining to the rural electric program.

Youth Day/Youth Tour plansEquipment rebates still available

We’re still off ering rebates for high-effi ciency electric heating systems, water heaters and electric ranges and clothes dryers! In addition to the cleanliness, safety and convenience of electric appliances, our rebates make them even more aff ordable. Th e list of rebates is found on page 7 of this newsletter. We also have information on super-effi cient heat pumps and geothermal heating/cooling systems, along with a list of area contractors with many good installations under their belt. Give our offi ce a call for more details, at (800) 245-7322. We “dodged an icicle” in mid-

December when ice storms hit just north of us, while several of our sister co-ops suff ered extended outages. Snow and ice storms are an inevitable part of the winter season, however, and they can lead to downed power lines and outages. Remember the following tips to stay safe and warm should you fi nd yourself in the dark after a severe winter event:

December bills may be higher

Electric bills for December 2008 usage are out, and many members may see an increase from the previous month. First of all, it’s not due to the coming rate increases – that change won’t be seen until the February billing statements come out. Th e Christmas holiday is one frequent contributor to increased energy use due to decorative lighting, holiday cooking, more company – even kids being home from school means more TV and appliances being used. Last December was also pretty cold, which means the heating systems ran more and extra space heaters may have been used. Look at the actual kilowatt-hours used on your bill, and compare it to last year’s December usage instead of to your November bill.

Winter storm safety

• Never touch a fallen power line, and assume all wires on the ground are “hot.”

• In the event of an outage, an alternate heating source—such as a fi replace, propane space heater or wood stove—may be used. Extreme caution should be taken.

• Plan to stay in an area of the home where the alternate heat source is located.

• Fuel- and wood-burning heating sources should be vented. Be sure to follow manufacturer’s directions.

• Make sure carbon monoxide detectors and smoke detectors are working properly.

• Do not use a gas-powered oven for heating. A gas oven may go out or burn ineffi ciently, leading to carbon monoxide poisoning.

• If you use a portable generator to power a heating source, be sure the generator is located outside your house for proper ventilation. Do not use a generator in an attached garage.

• Never connect generators to power lines. Th e reverse fl ow of electricity can electrocute an unsuspecting utility worker.

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_______Clothes Dryer, Electric Replacement – $25

_______Clothes Dryer, New Home or Gas Conversion – $25

_______Electric Range, Electric Replacement – $25

_______Electric Range, New Home or Gas Conversion – $25

_______Water Heater, Standard Warranty – $200 (less than 10-yr waranty)

_______Water Heater, Life–long Warranty – $250 (10-yr or longer warranty)

MEMBER RESPONSE PAGE

Electric heating equipment rebatesAn electric heat rebate form must be completed. Minimum system sizes apply.

• Geothermal System – $500/home

• Air Source Heat Pumps – $500/home (with electric back-up)

• Air Source Heat Pumps – $200/home (with gas back-up)

_______Peak Switch

_______Dual Meter Heating Rate

_______Security Light Rental

_______Convectair Heaters

_______New Home Energy Guidelines

_______Surge Suppressor Lease

_______Co-op Power Plus™ Visa

_______DTN Wireless Internet

_______Marathon Lifetime-Warranty Water Heaters

_______Long Distance Saving Rates

_______AT&T Wireless Cellular Phone Savings

Please send me information on services from RECC:

Member Name Account No.

Mailing Address

Town Phone

Rural Electric Convenience CooperativeP.O. Box 19, Auburn IL 62615Telephone: (800) 245-7322 (RECC) or (217) 438-6197 • www.recc.coopNormal offi ce hours 8 a.m. to 4:30 p.m.

Please include a copy of your sales receipt for your new electric equipment, purchased and installed within the past 12 months.

Electric equipment rebate request

Th is water heater is for: _______New Home _______Gas Conversion

_______Electric Replacement

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P.O. Box 19Auburn, IL 62615

Marathon water heaters

Why Marathon? Because we believe, if you want your water heater to give you years of service, you must get one that will stand the test of time. Marathon off ers a lifetime no-leak warranty, guaranteed to last as long as you own your home. Th is will save you the future expense of buying a replacement heater and paying to have it installed. With a plastic inner tank and outer casing, the Marathon will not rust or corrode.

Rural Electric Convenience Cooperative proudly offers the Marathon water heater in 50 and 75 gallon models.

Rural Electric Convenience Cooperative

Marathons also are among the most effi cient water heaters you can buy, with foamed-in-place insulation that surrounds the tank on the sides, top and bottom. For more information, please call our offi ce at (800) 245-7322 or visit our Web site at www.recc.coop, and look under the “Services & Products” heading.