Official publication of

Inside this issue...

www.mcleodcoop.com

McLeod Cooperative Power

October 2011

Do tankless waterheaters live up tothe hype 7

NEWSNEWS

2 & 4

LED Christmaslights rebateprogram 8

CapX2020 Brookings County-HamptonLook back/look forward

The CapX2020 projects were first proposed more thanfive years ago to increase electric reliability andaccess to new generation sources for Minnesota

electric customers and cooperative members. Those fiveyears have seen hundreds of public meetings, thousands ofcomments submitted to regulatory officials and, mostrecently, approval of Need and Route Permit applications. Upnext: line construction.

Here’s a brief look back and a look at what to expect inthe coming years as the CapX2020 lines are built to serveour members needs.

• 2006: Notice Plan filed with the Minnesota Public UtilitiesCommission (MN PUC) explaining the areas utilities wouldevaluate for new transmission infrastructure and how theyplanned to work with landowners, local governments andother officials to explain the projects and include them inthe process.

• 2007: Certificate of Need filed detailing the need for thenew transmission lines. Utilities held open houses toexplain the project and discuss land use and routing issueswith landowners.

• 2008: MN PUC holds public and evidentiary hearings onCertificate of Need to take public comment on the project.Route Permit filed in Brookings County-Hampton projectdetailing two alternate routes to be reviewed by MN PUC.

• 2009: MN PUC unanimously approves the need for theprojects. Regulatory review continues in Brookings County-Hampton proceeding, including public scoping meetings forEnvironmental Impact Statement; public informationmeetings were held after the Draft Environmental ImpactStatement was published; public and evidentiary hearingspresided over by Administrative Law Judge Richard Luis.

• 2010: MN PUC approved the majority of the BrookingsCounty-Hampton Route Permit; the segment between the

Cedar Mountain substation in Renville County and Helenasubstation in Scott County was sent back to theAdministrative Law Judge for additional study of potentialimpacts on birds along the Minnesota River. Routes throughSibley County, Le Sueur and Scott County continued to beamong options under consideration by the MN PUC.

• 2011: MN PUC approved the final segment of the RoutePermit finalizing the remainder of the route. The MN PUCapproved a Minnesota River crossing near Belle Plaine anda route through northern Sibley County, includingBismarck, Transit, Dryden and Arlington townships.Utilities prepare for construction and begin contactinglandowners to purchase necessary easements. Landownersin Sibley County are among the first to be contacted as the

segment through Scott, Sibley and Renvillecounties will be the first under construction.

• 2012: Construction is scheduled to begin in thesecond quarter; easement acquisition willcontinue along the central portion of the project.

• 2013: Construction will continue on substationsand the central portion of the project; easementacquisition on the eastern and western segmentswill begin.

• 2014: Construction will continue on all portionsof the project.

• 2015: Construction activities will be completedand the line energized.

The MN PUC approved a Minnesota River crossing near BellePlaine and a route through northern Sibley County, includingBismarck, Transit, Dryden and Arlington townships.

WinthropGaylord

Arlington

Page 2 • McLeod Cooperative Power Association • www.mcleodcoop.com

USPS 2220

Periodicals Postage Paid at Hutchinson, MNPOSTMASTER: Send address changes to

McLeod Cooperative Power NewsP O Box 70, Glencoe, MN 55336-0070

The McLeod Cooperative Power News is published monthlyfor $5 per year for members and $8 per year for

non-members by McLeod Cooperative Power Association1231 Ford Ave. North, Glencoe, MN 55336-0070

General Manager: Kris IngenthronEditor: Sue Pawelk

The McLeod Cooperative Power News is the official memberpublication of McLeod Coop Power Association and focuses

on our members, programs and events. All member story ideas and comments are welcome.

Send to Sue Pawelk at the address above.

Office Hours:Monday - Friday

7:45 a.m. - 4:30 p.m.

Phone: 320-864-31481-800-494-6272

24-hour outage: 1-800-927-5685Fax: 320-864-4850

Web site: www.mcleodcoop.com

Gopher State One Call 1-800-252-1166

BOARD OF DIRECTORS MCLEOD COOPERATIVE POWER NEWS

DDiiss tt rr ii cc tt 11Oria Brinkmeier, Lester Prairie

DDiiss tt rr ii cc tt 22Dale Peters, Secretary-TreasurerBrownton

DDiiss tt rr ii cc tt 33Roger Karstens, Hutchinson

DDiiss tt rr ii cc tt 44Doug Kirtz, Vice PresidentHector

DDiiss tt rr ii cc tt 55Allan Duesterhoeft, Hutchinson

DDiiss tt rr ii cc tt 66Lester RanzauGlencoe

DDiiss tt rr ii cc tt 77Bill Polchow, Asst. Secretary-TreasurerSilver Lake

DDiiss tt rr ii cc tt 88Keith Peterson, Hector

DDiiss tt rr ii cc tt 99Gerald Roepke, PresidentNew Germany

Going south forthe

winter?

Please notify theCooperative if youare heading south for

the winter. Although the Turtlewill send us your meter reading, we stillneed to know what payment arrangementsyou prefer.

Options are:• You can pay in advance.• Have the post office forward your mail.• You can sign up for auto pay and have the

payment automatically deducted fromyour checking or savings account.

• You can call us with a credit card payment.

Be sure to make arrangements beforeyou leave by calling 1-800-494-6272.

1Voluntary and Open Membership — Cooperatives arevoluntary organizations, open to all persons able to use

their services and willing to accept the responsibilities ofmembership, without gender, social, racial, political orreligious discrimination.

2Democratic Member Control — Cooperatives aredemocratic organizations controlled by their members,

who actively participate in setting policies and makingdecisions.The elected representatives are accountable to themembership. In primary cooperatives, members have equalvoting rights (one member, one vote) and cooperatives atother levels are organized in a democratic manner.

3Members’ Economic Participation — Memberscontribute equitably to, and democratically control, the

capital of their cooperative.At least part of that capital isusually the common property of the cooperative. Membersusually receive limited compensation, if any, on capitalsubscribed as a condition of membership. Members allocatesurpluses for any or all of the following purposes: developingthe cooperative, possibly by setting up reserves, part ofwhich at least would be indivisible; benefiting members inproportion to their transactions with the cooperative; andsupporting other activities approved by the membership.

4Autonomy and Independence — Cooperatives areautonomous, self-help organizations controlled by their

members. If they enter into agreements with otherorganizations, including governments, or raise capital fromexternal sources, they do so on terms that ensuredemocratic control by their members and maintain theircooperative autonomy.

5Education,Training, and Information — Cooperativesprovide education and training for their members,

elected representatives, managers and employees so theycan contribute effectively to the development of theircooperatives.They inform the general public, particularlyyoung people and opinion leaders, about the nature andbenefits of cooperation.

6Cooperation Among Cooperatives — Cooperativesserve their members most effectively and strengthen the

cooperative movement by working together through local,national, regional and international structures.

7Concern for Community — While focusing on memberneeds, cooperatives work for the sustainable

development of their communities through policies acceptedby their members.

All cooperative businesses adhereto seven guiding principles:The 7 Cooperative PrinciplesScenic calendars available

before Thanksgiving

McLeod Cooperative Power will againbe providing a scenic Minnesotacalendar for members on a first come,first serve basis. Color 2012 calendarswill be available in the Co-op officearound Thanksgiving.

Electric Heating Sales Tax Exemption

Electricity sold for residential spaceheating, when used as the primarysource of heat, is exempt from

Minnesota sales tax for the usage monthsof November through April. To qualify,members must complete an exemptionform, available from the Cooperative. If youhave signed an exemption previously, youdo not have to sign one again. We keep iton file. Heat on the load management rateis also eligible for the exemption but onlythe off-peak meter will not be taxed.

Call the office if you have any questions.

Page 3 • McLeod Cooperative Power Association • www.mcleodcoop.com

Former directorEdmund Ehrkepasses awayEdmund Ehrke, 79 , ofGlencoe passed awaySeptember 21. Edmund hadserved faithfully on theMCPA Board of Directorsfrom 1987-2005. He livedmost of his life on thefamily farm north of Platoand represented themembers of District 1. He issurvived by his wifeGlendora, children andgrandchildren.

Help us update our Critical Load list

Electricity is a lifeline for members with medical equipment.Please notify the Cooperative office if you rely on medicalequipment such as:

•Respirators, •Oxygen concentrators, •Home dialysis•Other equipment supporting life-threatening medical conditions

The Cooperative maintains a Critical Load list. In the event of aprolonged outage, we try to contact these members and alertthem that they may need to move to a place with power if theirbattery back-up is insufficient. It does not mean that we canrestore power to their location first.

The Cooperative also tries to contact Critical Load members inadvance of a planned power outage. The notification allowsmembers to make alternative arrangements before the outage,if necessary.

If you or someone in your home relies on life supportequipment, and you have not yet notified the Cooperative,please complete the coupon and return with your next payment,or you can call the Co-op with the information. Please notify theCo-op if the person with the medical condition moves off thesystem, no longer needs life support or passes away, so that wecan keep our list current.

REA Critical Load List

____ Yes, medical life-support equipment is in use

Type of medical equipment or medical condition__________________________________

Battery Backup? ____ Yes ____ No

If yes, how long will the batteries last? ______________________________

Acct # ______________________________

Name ______________________________

Address ____________________________

City/State/Zip__________________________

Home Phone __________________________

Cell Phone __________________________

Please return to: McLeod Co-op PowerP.O. Box 70 Glencoe MN 55336

Why is my power out?

Power outages can happen many different waysbut the most common is caused bythunderstorms which bring strong winds andlightning. Lightning can strike poles orequipment on the poles, and wind can blowbranches down onto the power lines. Otherthings such as animals, extreme heat, andequipment failure can also be problematiccauses of outages. And then there are thehuman caused outages when people hit poles,lines, or pad-mount transformers with vehiclesor farm machinery.

I’m the last one on the line,why do my neighbors havepower and I don’t?

There are several scenarios that could causeyou to experience an outage, while yourneighbors still have power. Here are a few:• The accounts can be served by different

feeders, substations, or taps. There are manyoccasions where a member and theirneighbors are near the dividing point, oftencalled a ‘normal open point’. Everyone on oneside of the ‘normal open point’ mayexperience an outage, while everyone on theother side still has power.

• The account experiencing an outage is feddown-line from a protective device. Forexample, if a tree gets into a line, the closestprotective device is supposed to open and de-energize the line. It may happen that themember seeing the outage is the first accountdown-line from the device, while the neighboris up-line from the device and still has power.

• The member experiencing an outage couldhave a transformer fuse or other issue thatwould only affect them. This is a commonscenario with animals, lightning strikes and trees.

How long is the powergoing to be out?

Power outages can vary in size and length. Infact, the size of an outage usually is a goodindicator on how long the outage will last. If weonly have one outage to respond to, it is likelyyou will be back on quickly. If it is a substationfeeder outage, although quite a few people areout, the line workers can get everyone back onby fixing one problem in one location so thatalso would probably not be a long outage. If awind storm comes through and causes branchesto come down on lines in a variety of locations,it will take much longer to get all of thoseindividual problems repaired. It is difficult topredict how long it will take to get the lightsback on, especially before we know what is thesource of the problem and what will need to bedone to fix it.

Do I need to get agenerator?

Every situation is different. Some members mayneed a generator more than others; it alldepends upon the individual member’s needs.Members who have livestock or medical needsmight rely heavily on having power while otherscan go several hours without power. Most of thetime outages are minor in length and with someprecautionary measures can be handled veryeasily. To find tips on how you can prepare for apower outage visit www.safeelectricity.org.

My neighbor has alreadycalled in the outage. Do Ineed to report it too?

We always want members to report an outagewhether your neighbor has called in the outageor not. Every outage is important and your callgives us important information to determine theexact area of the outage and how widespread itmight be.

What is the best way toreport an outage?Should I call my director toreport an outage?

When the power goes out, please call the Co-opoutage number: 1-800-927-5685 as soon aspossible on your touch-tone phone. You can callthis number 24 hours a day/seven days a week.If you call from the phone number listed on yourelectric bill, it should automatically report theoutage for you after verifying some information.Just listen to the prompts you are given duringthe call.

If calling from a different number, you can stayon the line for a dispatcher to report youroutage address or location number. Please bepatient during major outages as phone lines canbe very busy. Don’t call you director to initiallyreport your outage. It is the fastest to call infrom your home phone and report it yourself.

If you still use rotary dial phone service insteadof a push button phone, then you could haveyour neighbor call for you or you could borrowsomeone’s cell phone.

Outage CallsDuring and following an outage we occasionally receive these generalquestions from members. We thought other members might have the same questions, so we are sharing some answers.

Page 4

As a Co-op Member, you are part of something POSITIVE

Power for Living: Electricity powers our lives in so many ways that we

don’t stop to think about. Since 1935, your Cooperative has always

been there, through rain, snow, sleet or wind, day and night, to make

sure you have the safe and reliable electricity you need for heating and cooling

your home, cooking your meals, taking hot showers and baths, running

appliances, lighting your home, running pumps, heaters and more.

Ownership: At your Cooperative, you aren’t just a “customer,” you’re

part owner in the business. While you share the costs of the business,

you also share in the profits through capital credits. You vote on new

Bylaws, you elect representatives on the Board of Directors, and you can bring

up topics for discussion at the Annual Meeting. Members are the lifeblood of

any cooperative. We appreciate your patronage.

S olutions-based Technology: Rural electric cooperatives light the way

when it comes to exploring new technology to become less dependent

on foreign sources of fuel, to invest in viable alternative energy sources,

and to use the vast resources of inexpensive coal available to us in a clean and

responsible manner.

I nfluential: Rural Electric Cooperative

members total approximately 42 million

people in 47 states. We own and

maintain 42 percent of the nation’s power

distribution lines and own $112 billion in

assets. That makes us all part of a very big

voice. Recent member grass-roots efforts

have swayed the opinions of elected

representatives away from some harmful, expensive energy legislation. But

there’s more to do...you are part of the voice that can help to make sure that

electricity remains reliable and affordable.

T eamwork: Cooperation among cooperatives and members is a principle

of a cooperative. While we extend help to other cooperatives during

storm restoration and more, we also help our members conserve energy

and reduce their bills through effective energy management programs. Your

Cooperative is an excellent, unbiased source of energy information.

I nvolvement in Community: Through Operation Round Up®, community

volunteerism, the Chambers of Commerce, organizational partnerships

and event sponsorships, your cooperative is actively involved in its area

communities to help them remain economically sound, happy and safe places to

live and grow a family.

V alue: We are always looking for ways to add value to our members’

lives by providing options such as satellite internet technologies,

Heartland Security Services and more. The same spirit that banded

our ancestors together years ago to bring much-needed electricity to the

countryside is still present at your Cooperative today.

E ducation: As a member/owner, you have a right to know how the

Co-op is doing, what challenges we face, what decisions we grapple

with, and what technology and government legislation will affect all of

our futures. We keep you updated through the monthly newsletter, the website,

bill stuffers, letters, Co-op events such as Member Appreciation Day and Coffee

With the Co-op, and the Annual Meeting. We also use these vehicles to alert

you to programs, money-saving promotions, rebates and energy options so you

can make informed energy choices.

Page 5

INDUSTRYNews

New energy standardfor fridges announced

Google details anddefends electric use

Is it time to reinvest in your heating system?

Packages available:

• Fire and furnacemonitoring

• Flooding• Burglary• Medical Alerts• Livestock monitoring• Carbon monoxide • And more...

Visit www.heartlandss.com

I n the “good ole days” of the Co-ops emerging dualfuel program, members were allowed to installwood-burning stoves and fireplaces as viable back-

up units for their electric heating system during times ofcontrol. Back then, controls werepredictable, usually tied toweather, and most often duringthe late afternoon and earlyevening. People who used wood,or another manual fuel source,were home during that time andcould stoke the fire to keepthings warm.

The old saying that “The onlything that’s constant is change”applies to our dual fuel programtoday. Control times are changingand most likely won’t revert towhat we are used to. There willmost likely continue to be morecontrol periods, with control beingused more in the mornings and evenon weekends, which had not beendone in years past. We understandthat members without automaticback-up systems are going toexperience these changes the most.

Perhaps you’d like to invest in a newautomatic heating system...you can’tsee yourself chopping wood five or10 years from now. But your electricheating system is working great andit seems a shame to spend money ona new system. Here’s a couple ofoptions to consider:

If you have an electric baseboard heating system and noductwork, the simplest option would be to install a

thermal storage (ETS) heater. This efficient system usesoff-peak electricity to heat specially-designed bricksinside a super-insulated chamber. When heat is neededduring control times, these bricks provide supplemental

heat. They come in manydifferent sizes to suit any need;room-sized units would work thebest in this situation.

If you already have ductworkthroughout your home for yourcentral air, installing a furnaceas an automatic back-up makesthe most sense. An ETS or fossilfuel furnace would work well.

Want to cut your heating billsin half?If you’re not already on the Co-op’s dual fuel program, there aremany options to consider that willutilize your current heatingsystem. Now’s the time to consultyour Co-op’s EnergyManagement Technicians todiscuss what makes the mostsense. You’ll qualify for the Co-op’s low energy managementelectric rate, which can save youhundreds of dollars every year.

If you are already on the Co-op’sdual fuel program and want toupgrade your system for addedconvenience and comfort, give usa call and we’ll go over averagecosts and options with you so youcan make an informed decision.

The U.S. Department of Energy announcedFriday new efficiency standards forrefrigerators it says will cut the energy

use of most new models by 25 percent. Atypical refrigerator in 2014 will use about one-fifth as much electricity as one from the mid-1970s, the department said in a release datedAugust 26.

The standards have been revised three timessince their enactment in 1987, and the lateststandards are based on a joint recommendationfiled in 2010 with the Department of Energy bythe groups and refrigerator manufacturersrepresented by the Association of HomeAppliance Manufacturers.

"New fridges are bigger and cheaper thanthey've ever been, but due to several rounds ofstate and national efficiency standards they usemuch less energy," said Steven Nadel, executivedirector of the American Council for an Energy-Efficient Economy. "These new standards willdeliver even more benefits for consumers andthe environment."

~Energy Central

E very time a person runs a Google search,watches a YouTube video or sends a messagethrough Gmail, the company’s data centers full

of computers use electricity. Those data centersaround the world continuously draw almost 260million watts — about a quarter of the output of anuclear power plant.

Google says that people conduct over a billionsearches a day and numerous other downloads andqueries. But when it calculates that average energyconsumption on the level of a typical user theamount is small, about 180 watt-hours a month, orthe equivalent of running a 60-watt light bulb forthree hours.

In part because of special arrangements thecompany has made to buy electricity from windfarms, Google says that 25 percent of its energy wassupplied by renewable fuels in 2010, and estimatesthat figure will reach 30 percent in 2011.

Google also released an estimate that an averagesearch uses 0.3 watt-hours of electricity. Whenmultiplied by Google’s estimate of more than a billionsearches a day, the figure yields a somewhatsurprising result: about 12.5 million watts ofGoogle’s 260-million-watt total can be accounted forby searches, the company’s bread-and-butterservice. The rest is used by Google’s other services,including YouTube, whose power consumption thecompany also depicted as very small.

~New York Times

This ETS room heater is a clean, efficient and cost-effectiveoption for supplemental heat in rooms you use the most.

By adding an electric plenum heater to your existingfossil fuel furnace, you qualify for the half-price dualfuel electric rate!

Page 6 • McLeod Cooperative Power Association • www.mcleodcoop.com

The Cold Weather Rule,which is part of thePublic Utilities Act,prohibits utilities fromdisconnecting a

residential customer for nonpaymentduring the coldest months of the year.Your Cooperative strictly adheres tothat law and offers sources of help forthose unable to pay their bill. The lawreads as follows:

1From Oct. 15 through April 15, aCooperative cannot disconnect a

customer if it would affect thatperson's primary heat source and if:

• You declare an inability to pay.

• Your total household income is less than 50 percent of the StateMedian Income.

• Your account is current for thebilling period immediately prior toOct. 15, or if you have entered intoa payment schedule and arereasonably current with yourscheduled payments.

2Before disconnecting service to aresidential customer during the

cold weather month, the Cooperativewill provide the following informationto the customer:

• Notice of the proposeddisconnection.

• A statement of the customer's rightsand responsibilities.

• A list of local energy assistance providers.

• A statement explaining availabletime payment plans and otheropportunities to secure continuedutility service.

3Any residential customer whoseservice is disconnected on Oct. 15

may be reconnected if:

• The outstanding balance is paid.

• A mutually acceptable paymentschedule is arranged.

• A re-connection plan is requestedby an income eligible customerwho agrees to pay the current billand arrearages over the coldweather months by agreeablepayment arrangements.

4The Cooperative will notdisconnect service to a residential

customer who has not responded to adisconnection notice without firstinvestigating whether the dwelling isactually unoccupied. This investigationshall include a personal visit to thedwelling. If the unit is found to beoccupied, the Cooperative willimmediately inform the occupant ofhis or her rights under this policy.

5Number of days after notificationbefore disconnection. If an

involuntary disconnection is to occurbetween Oct. 15 and April 15, then thedisconnection will not occur on aFriday or on the day before a holiday.

6Any disputes over a residentialcustomer's inability to pay for

service, income eligibility,reasonableness of payment schedule orany other issue which a customercould raise under the Cold WeatherRule shall be referred for hearing, afterreasonable notice, to the Cooperative'sBoard of Directors. The Cooperativeand the customer shall have the rightto present evidence and be heard inperson at that hearing. TheCooperative's Board of Directors shallissue a written decision within 10 daysafter the hearing. No disconnectionshall occur while a dispute is pending.

7The Cooperative will notify allmembers, prior to Oct. 15, of its

Cold Weather Rule and provide thenames and addresses of human serviceagencies and local energy assistanceproviders that may be of assistance inpaying electric bills.

Cold Weather Rule helps Co-op memberswith utility bills during winter months

EnergyassistanceprovidersKandiyohi, McLeod &Meeker County areasHeartland Community Action AgencyPO Box 1359, 200 4th St. SWWillmar, MN 56201Toll free: 1-800-992-1710McLeod: 320-587-5244

McLeod County areaMcLeod County SocialService Center1805 Ford Avenue NorthGlencoe, MN 55336(320) 864-3144(320) 587-95331-800-247-1756 (Toll Free)

Renville County areaRenville County EnergyAssistance Program105 S. 5th Street, Suite 203H,Olivia, MN 56277320-523-2202(320) 523-1161 Emergency 24 hr phone

Sibley County areaSibley County Social Services111 8th StreetGaylord, MN 55334(507) 237-4000

MN Valley Action Council110 6th StreetGaylord, MN 55334(507) 237-2981

464 Raintree RoadMankato, MN 56001(507) 345-68221-800-767-7139 (Toll Free)

Carver County areaScott-Carver-DakotaCommunity Action Agency712 Canterbury Road SouthShakopee, MN 55379(952) 960-9700

Wright County areaWright County Community Action130 West Division StreetMaple Lake, MN 55358(763) 963-6500

Utility Payment Arrangements forMilitary Service PersonnelWhen a household member has been ordered intoactive duty, for deployment, or for a change ofduty station, some customers may find it hard topay their utility bills. Minnesota law protects thesemilitary personnel from shut-off if they cannot paytheir utility bills in full.

How to ApplyContact McLeod Co-op Power at 1-800-494-6272to obtain an application and make a payment plan,which you must keep to qualify for protection.

Payment Plans• If your household income is below the state

median household income, pay ten percent ofyour households gross monthly income towardgas/electric bill; or

• If you receive energy assistance, pay ten percentof your household's gross monthly incometoward your gas/electric bill; or

• If your household income is above the statemedian income, make and keep a payment plan.

Right to AppealIf you and McLeod Co-op Power cannot agree on apayment plan, you have the right to appeal to theMinnesota Public Utilities Commission. McLeodCo-op Power will not disconnect your serviceduring the appeal process.

Military Service Personnel Assistance

Page 7 • McLeod Cooperative Power Association • www.mcleodcoop.com

Rebates for high-efficiency heat pumps andair conditioners will continue to requireinstallation by a "registered contractor"

which has been designated as a quality installerand is listed on the hvacreducation.net web site. Alist of all “registered contractors” in Minnesota ison our Cooperative web site atwww.mcleodcoop.com.

There will be no rebates in 2011 fordishwashers, clothes washers, ordehumidifiers. Refrigerator/freezer unitswill require recycling of the old unit toquality for rebates.

2011 RebatesGround Source Heat Pumps (controlled oruncontrolled)

Residential ..................................................$400/tonCommercial ................................................$400/ton

Air Source Heat Pump13 SEER ............................................................$33014 SEER ............................................................$48015 SEER ............................................................$58016 SEER or higher ............................................$630

Ductless Air Source Heat Pump ......................$300

Central Air Conditioner13 SEER ............................................................$ 3014 SEER ............................................................$18015 SEER ............................................................$28016 SEER or higher ............................................$330

Storage Space Heating ................................$ 40/kW

Uncontrolled electric water heatergoing on the Storage Water Heating with high efficiency water heater* ..................................$200

Storage Water Heating* (New constr.) ........$100

4 hour peak shave to Storage Water Heating* ....................................$100

Heat pump water heater (New constr.)........$100

Heat pump water heater replacing non-controlled electric ..............................$200

ENERGY STAR Refrigerator with recycling of old unit ............................................$75

ENERGY STAR Freezer with recycling of old unit ..................................$75

*(Marathon or equivalent energy rated heater)

ENERGY STAR rebateprogram for 2011

An unlimited and instant supply of hotwater definitely sounds like a goodidea, but a number of cooperatives are

concerned about the impact that tankless waterheaters might have on the load placed on theirdistribution system and on consumers’ electricservice panels

They can really increase thecooperative’s wholesaledemand cost of electricity,particularly during peakusage hours, which aregenerally in the morning andearly evening hours. Thehigh cost of purchasing,installing and maintaining atankless water heater caneasily outweigh the energysavings — particularlycompared to McLeod Co-op Power’s ElectricThermal Storage WaterHeating program.

Tankless water heaters do not store hot water;they heat water on demand with a series ofheating elements when a hot water faucet orvalve is opened. Because of the additionalelectrical load they create, tankless water heatersoften require an upgrade in electrical service.

A traditional tank water heater with 4,500-wattelements operates on a 30-amp circuit breaker.One whole-house tankless model boasts four7,000-watt elements for a total electrical load of28,000 watts. This requires wiring and a circuitbreaker that can handle at least 120 amps.

If a tankless water heater is installed in anexisting home without upgrading the electricalservice, low voltage or sudden voltage drops arelikely, which can cause dimming and blinkinglights, issues with sensitive computer andelectronic equipment, among other problems.

Check with McLeod Co-op Power to determineif you must improve yourelectric service to support atankless water heater.

Efficient water heatingalternatives

Consumers looking for an efficientwater heater should consider asuper insulated electricresistance unit. These appliancesare often the most cost-effectiveoption over the long term.

McLeod Co-op Power memberswho enroll in the Electric Thermal StorageWater Heating program can receive a lowerelectric rate for electricity used for waterheating. Participants agree to have their waterheater “charged” overnight with inexpensive off-peak electricity to provide enough hot water tosupply the following day’s use.

There are many simple ways that you can saveon water heating costs including low-flowshower heads, faucet aerators, washing clotheswith cold water, and just being more aware ofyour hot water usage. All of these are morepractical and provide a greater return oninvestment than installing in a tankless water heater.

Heat pumps save energyand money

W hen people think of home energy conservation, they often think

about heating. According to the U.S. Department of Energy, space

heating accounts for 34 percent of the average homeís energy budget.

You can lower your heating costs and energy consumption by installing a

heat pump. Whether itís a ground source or air source heat pump, the unit

does not generate heat, it harnesses the heat already present in the ground

or outdoor air and concentrates it for inside use.

Heat pumps cool your home by collecting the heat inside your house and

effectively pumping it outside.

A ground source heat pump provides over three times more heat than it

consumes in energy and can easily trim over 50 percent from your home

heating bill. It is a complete stand-alone heating/cooling system when

operated on the regular uncontrolled electric rate. If a member chooses to

put it on the Dual Fuel Program, then the cost per kWh is about half as

much as the regular rate but a backup automatic furnace or heating system

is required to heat the home during Dual Fuel control times. The control

times are expected to total 150-250 hours per heating season, although the

program allows for a maximum of 400 hours of control per year.

An air source heat pump is less expensive and easier to have installed, and

can provide about 50 percent of your homeís heating needs and all of your

cooling needs. Your fossil fuel furnace provides the heating on the cold

days. Air source heat pumps are usually operated on the half-price off-peak

rate. They are cycled during the summer peak cooling times. They operate

mostly in fall and spring and on mild winter days for heating, so they are

usually not operating during Dual Fuel control times anyway. An air source

heat pump will operate down to about 25 degrees Fahrenheit outside

temperature. To operate below this temperature, they need to be coupled

with an electric plenum heater or duct heater.

Both air source and ground source heat pumps installed in 2011 may

qualify for a rebate. Call 1-800-494-6272 for details. See page 7 for

rebate details.

Do tankless water heaters live up to the hype?

A wall-mounted tankless water heater heatswater as it is used with heating elements thatare activated when a hot water faucet or valve isopened. Consumers can generally save more onenergy costs by using traditional water heatersefficiently.

Page 8 • McLeod Cooperative Power Association • www.mcleodcoop.com

Conservation and electricrates: A balancing act

McLeod Cooperative Power putsa lot of effort into helping itsmembers conserve energy.

Conservation may seem like an oddpursuit for an electric cooperative — abusiness helping its members buy less ofthe very product it sells. But there aretwo important reasons why thecooperative helps its members becomemore efficient.

First, the state of Minnesota requires it.McLeod Co-op Power is subject to theConservation Improvement Program, astate law that requires every electricutility to prove energy savings equivalentto 1.5 percent of their annual retailenergy sales. For McLeod Co-op Powerthe 2011 goal is to reduce sales by over2.8 million kilowatt-hours.

Second, conservation savesmembers money.

“Conservation is an ounce of preventionto avoid a pound of cure,” said CustomerService Manager Sue Pawelk. “In thiscase, the cure is more than a pound —it’s a multimillion-dollar power plant.”

By reducing energy sales, conservationdoes slightly increase the price ofelectricity. However, in most cases it’sless expensive than investing in a newpower plant.

“We’re going to meet future demand inone of two ways: by continuing to investin additional generation resources or byhelping our members conserve electricity.As a member-owned cooperative we’drather invest in our members,” saidPawelk. “Encouraging our members toparticipate in our energy conservationefforts such as installing CFLs or newENERGY STAR appliances provides acontinuous stream of energy savings over the life of the energy-savingmeasure. This energy savings helps to reduce future wholesale rate increases and provides a valued service to our members.”

Interested in learning how to conservemore electricity? Call McLeod Co-opPower at 1-800-494-6272.

Conservation = lower bills

Even if rates go up, your billdoesn’t need to. The most directway conservation benefitscooperative members is that they need less electricity. Usingless electricity helps membersbetter manage their monthlyelectric bills.

LED Holiday Lighting PromotionNov. 1 - Dec. 24, 2011

Or while supplies last

$2 instant rebate per strand ofLED Holiday Lights

purchased at these participating stores:

• Hite Hardware in Glencoe• Ace Hardware in Hutchinson• Home Solutions in Norwood Young America

Any LED brand of 50 or more bulb strands eligible for rebate.

Customer name: __________________________

Address: ______________________________

____________________________________

# of strands purchased (Max. 5): ____

Only members of McLeod Co-op Power are eligible for rebate. Onecoupon from MCPA Newsletter for up to five light strands for a maximumtotal rebate of $10 per customer. Reproductions of coupon are notallowed. One strand of non-LED holiday lights should be turned in foreach LED strand purchased (up to five).

1231 Ford Ave. & Hwy. 22 Glencoe, MN

1-800-494-MCPA

LED Christmas light stringseligible for $2 rebate

Turn in your old lights and get up to$10 off new LED light strings instantly

To get members to decoratetheir homes — both indoorsand outdoors — with the very

efficient LED (Light Emitting Diode)lights, the Cooperative is offering arebate of $2 per string of lights.

The three participating hardwarestores in our service area are:Hutchinson ACE Hardware, HiteHardware in Glencoe and HomeSolutions in Norwood YoungAmerica. The rebate offer is availableonly to McLeod Cooperative Powermembers November 1 throughDecember 24, 2011 or while lightsupplies last. Each member may usethis coupon in the newsletter to get the$2 per string rebate on up to fivestrings of LED holiday lights, for amaximum rebate of $10 per member.Save this coupon becausereproductions will not be accepted!

LED Christmas lights come in mini-light sizes, icicle lights, larger C6lights (sized like the larger outdoorlamps used 20 years ago), LED ropelight and many other varieties. Theycan be used indoor or outdoor. LEDstrings use 90% less energy than astring of mini-bulbs. They last 50,000to 100,000 hours. They are safer andare cool to the touch. If one bulb goesout, the rest stay lit. They also are

sturdier and are difficult to damage.Many even come with a lifetime ormany-year warranty. LED light stringsare the best and most efficient way todecorate for Christmas or any holiday.

1. Cut out the coupon on this page.

2. Take the coupon and up to 5 old strings ofholiday lights to one of the hardware storeslisted on the coupon.

3. Purchase one to five strings of LEDChristmas lights that have at least 50 bulbsper string.

4. Present your completed coupon at thecheckout with your old strings to get $2 offeach string you are purchasing, up to amaximum rebate of $10 per member.

If members purchase ENERGY STARLED holiday light strings from adifferent retailer than these threeparticipating stores, and want toreceive the rebate, they must bring fiveold strings of lights to the Co-op, andgive us a sales receipt for their lightpurchase along with the completedrebate form. These alternate rebateswill be accepted through December27, 2011. A credit for the rebateamount will be applied to the nextelectric bill.

YOU MUST FOLLOW THESE STEPSCAREFULLY TO GET YOUR REBATE: