GCEC Adjusts Rates
Gulf Coast Electric Cooperative
J U LY 2012
COVER STORY:
GCEC Adjusts Rates The cost associated with providing power continues to increase, in part due to environmental modifications Gulf Coast Electric Cooperative’s power supplier is required to make to generating plants. The James A. Vann Jr. Power Plant, shown here, is PowerSouth Energy Cooperative’s cleanest and most efficient fossil-fired generating facility. For details on GCEC’s rate adjustment, see pages 4 and 32.
Trustees Elect New Officers PAGE 8
Take Your Kids to Work Day at the Co-op PAGE 28
Energy Smarts
Making the Most of Your Electricity
Florida Currents (USPS PP-81) is published monthly for members for $6.84 per year, not including postage, by Ruralite Services Inc., 2040 A Street, Forest Grove, OR 97116—a not-forprofit Oregon cooperative corporation—to serve the communications needs of five consumer-owned electric utilities in Florida. Periodicals Postage rates is Pending at Forest Grove, Oregon 97116 and at additional mailing offices. Postmaster: Please send address corrections to P.O. Box 558, Forest Grove, OR 97116. HOW TO CONTACT FLORIDA CURRENTS
Have a problem receiving your edition of Florida Currents? Utility members should contact the local utility office listed on the back cover. Nonmembers should contact Ruralite Services, P.O. Box 558, Forest Grove, OR 97116-0558; (503) 357-2105; email [email protected]. Subscription services: Nonmember subscriptions $12 (US) per year; $25 (foreign) per year. Prepayment required. Allow 4 to 8 weeks for first issue. Be sure to identify which local edition you want to receive. Extra copies: $2 each, pre-payment required. Supply is limited. Identify edition, month and year. Contact Ruralite Services. Reprint permission: Direct all requests to Ruralite Services. MANUSCRIPTS AND PHOTOGRAPHS
Please do not send unsolicited materials. If interested in writing for Florida Currents, query first. Include a self-addressed stamped envelope for writer’s guidelines. Address requests and queries to Ruralite Services. DISPLAY ADVERTISING INQUIRIES
Contact Russell Green or Brenda Somes Ruralite Services Inc. P.O. Box 558 Forest Grove, OR 97116-0558 (503) 357-2105 PRINTED IN FLORIDA
Trend Offset Printing Services 10301 Busch Drive North Jacksonville, FL 32218 © 2012 Ruralite Services Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited.
Give Your Energy Use a Vacation
Going on vacation? Even if you plan to be away for just a few days, you can save energy in your home when you travel. Here are some tips from Gulf Coast Electric Cooperative that can give your utility bill a break while you take a break. • Water heater. Turn down the temperature on your water heater or turn it off completely so it does not keep the water warm while you are away. • Thermostat. During hot weather, turn the thermostat higher on your air conditioning system. You will save energy while ensuring your home does not get too warm. • Lights. Turn off all lights in your home. You may want to install timers on one or two lights for security. • Electronics. Unless you are recording something while away, unplug all of your electronic devices: computer, monitor and printer, TV and cable boxes, DVD player, microwave and digital clocks. Any electronics with digital displays, instanton features or remote controls consume energy even if they are not in use. For other tips on how to save energy—and money—visit Touchstone Energy’s energy-saving website at www.TogetherWeSave.com.
Inside
July 2012 Vol. 1, No. 9
Python Patrol Attacks Problem 12
Landowners join local, state and federal agencies in coordinated effort to battle the threatening invaders. Also In This Issue Side Roads 10 In the Kitchen 16 Florida Gardener 19
Festival Roundup 22 Outdoor Pursuits 24 Parting Shot 30
Your utility pages: 4, 5, 6, 7, 8, 25, 26, 28, 29, 32
J U LY 2 0 1 2
3
Gulf Coast
Q&A: Rate Adjustment Answers to commonly asked questions about rate changes
Reliability ratings show Gulf Coast Electric Cooperative keeps the power on 99 percent of the time. GCEC’s member satisfaction scores rank us among the top performers in the nation. Our commitment to our members is superior reliability at competitive prices and quality service, now and in the future. This high level of service requires a fair and equitable investment from each Gulf Coast Electric member. To ensure this, GCEC periodically evaluates its rates through a cost-ofservice study. Rate design is a balancing act between meeting our revenue needs while minimizing the overall financial impact to our members. As a not-for-profit organization, we must recover our costs of doing business, as well as maintain sufficient margins to reinvest in our electric distribution system. The cost-of-service study identifies the total revenue requirements for the cooperative. Through that study, costs are allocated appropriately to each
The cost of poles and wire for distribution lines have increased. 4
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member classification based on the service, equipment and infrastructure required to serve them. Once completed, rate structures are designed to meet the needs of each classification. The most recent cost-of-service study resulted in new rate schedules that go into effect with bills mailed out June 30. Q: How much will my bill increase?
A: The cost-of-service study ensures each member pays his or her fair share. Based on rate classification and consumption, the impact to the member will vary. The greatest difference in the new rates is the change in the facilities charge, which has increased for all members. Therefore, low-use members will see the greatest impact. While the facilities charge was increased, we decreased the cost per kilowatt-hour as it relates to energy and cost of power sold adjustment charges. Q: What does the facilities charge represent?
A: The facilities charge ensures your expectations for continuous power and outstanding member service are met. It gives each member a fair and equal share of the cooperative’s operation. It provides funds that must be invested now to maintain the quality, reliability and integrity of services our members have counted on and come to expect. Among the expense items covered by the facility charge are: • Trucks, wire, transformers, power poles and labor needed to build and maintain the electric distribution system. • Keeping pace with increased system investments to improve both capacity and reliability. • Implementing new technologies to provide increased reliability and operational efficiencies such as advanced metering. • Liability insurance, interest and taxes. Because all cooperative members benefit from having reliable electric service available when they want it, the facility charge ensures everyone pays their fair share of the basic costs—costs that exist whether or not a single kWh is used.
for GCEC Q: Who determines when a rate increase is necessary and the amount of the increase?
A: Gulf Coast Electric Cooperative’s Board of Directors and the CEO/General Manager continuously monitor the financial stability of the cooperative to determine if or when a rate increase is necessary. To establish the new rate structure, an independent, experienced firm is hired to review and recommend changes. GCEC is required by our financial institutions to maintain minimums in key financial indicators. Thus, management and your board must continue to evaluate rates to make sure your co-op remains healthy.
Ever wonder what your power bill pays for?
67
on average,
of your monthly power bill is used to make electricity
Q: Will I continue to see the wholesale power cost adjustment on my bill each month?
A: Yes. Actually, we were able to give you a 1.5mil credit on your bill with this change.
Q: Will the new rates change the cost of my outdoor light?
A: Outdoor lighting charges also have been reviewed as part of the cost-of-service study as electric consumption is a component of the monthly charge. Members can expect to see small increases in the cost of outdoor lighting.
Q: Did rates increase as a result of the deployment of AMI (smart meters)?
A: No. GCEC is always looking for ways to better serve you, our member. The advanced metering system that is being deployed actually will provide operational efficiencies, as well as increase the reliability of your electric service. Q: Will commercial/industrial rates increase, or is this applicable only to residential rates?
A: Yes, the cost-of-service study is a comprehensive review of all rates to ensure each member, regardless of their rate classification, pays his or her fair share. Each member class should pay its fair share of costs without having one member class subsidizing the other.
Gulf Coast Electric’s Expenses: Operations & Maintenance:
Distribution System Expenses Member Service Related Expenses General Expenses
Fixed Costs: Depreciation Taxes & Interest
16 % 17% 67 %
Electricity Production
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5
Gulf Coast
The Charles R. Lowman Power Plant in Leroy, Alabama, is one source of Gulf Coast Electric Cooperative’s power. The coal plant— operated by PowerSouth Energy Cooperative—is equipped with air quality equipment. Q: Are copies of the rate schedule available?
A: Yes, after June 30, copies will be available on our website, www.gcec.com. Q: Why is GCEC increasing its rates?
A: GCEC is a not-for-profit electric membership cooperative. The only way to recover our costs is through our rates. We must restructure our rates to recover our costs on a more equitable basis. We have not raised our rates since 2007. We have delayed rate adjustments, but now we must adjust our rates to ensure the quality, reliability and integrity of the services we provide. While virtually all aspects of today’s cost of living continue to rise, GCEC prides itself on avoiding routine price adjustments. Pricing adjustments are something we only consider when we have to. Reliable electric service at a reasonable price is something our members can count on and that we deliver daily. Maintaining dependable service at the most affordable price remains the cornerstone of our business. To accomplish this, we must protect the financial stability of our organization by asking our member-consumers to share in these costs. 6
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Q: What is my cooperative doing to help control costs?
A: We understand many of our members are struggling to pay their bills in uncertain economic times. We are doing everything possible to keep costs down and look out for your best interests. However, some of these costs are beyond our control. For instance, PowerSouth must comply with environmental regulations and pass this expense along to its member-owners, including GCEC. These cost increases are beyond PowerSouth’s control, too. You also must consider the increase in the cost of materials. For example, since 2008, the cost of poles has risen nearly 11 percent, the cost of transformers anywhere from 31 percent to nearly 35 percent, depending on size, and the cost of wire anywhere from 7 percent to nearly 61 percent, depending on size. Q: How do GCEC’s rates compare with those of other utilities?
A: GCEC’s rates are competitive compared with investor-owned utilities in the area. This is remarkable when you consider Gulf Coast Electric has a
density rate of about eight members per mile of line, compared with an average of about 56 customers per mile of line for area IOUs. That means GCEC only has a fraction of the consumers IOUs have to share the cost of delivering electricity. Our costs of delivering power often can be more expensive when you consider the rural terrain we cover compared with the more urban areas covered by IOUs. Gulf Coast Electric Cooperative is approximately 95 percent residential, with a small percentage of commercial and industrial members to help carry the load. Q: What can I do as a consumer to help control costs?
A: We want to help you better manage your energy use and save money. Your choices affect your electric bill. We encourage our members to visit the Touchstone Energy Together We Save website at www.togetherwesave.com. You will find not only energy-saving tips, but a calculator. Enter energysaving measures and watch the savings add up. Your cooperative also offers free energy audits. Call our offices to set up an appointment. Pending environmental legislation could cause your bill to rise. You can help get a message to Congress about finding a balanced energy policy by participating in the Our Energy, Our Future campaign. Visit www.ourenergy.coop to send an email. Q: Is Gulf Coast Electric Cooperative offering any sort of load-control program to help put off or alleviate the need to build more power plants?
A: To meet the electric needs of our memberconsumers, we join with 19 other power providers throughout south Alabama and northwest Florida to secure generating resources. In doing so, we are able to minimize rate adjustments by gaining economies of scale that otherwise may not be available. To help PowerSouth Energy Cooperative, our power provider, control its peaks, or highest demand for power, we offer our member-consumers a load management system, H2O Plus. Load management helps control our overall energy costs during these times. Call our offices to find out if you qualify for this program. If so, we will install a switch on your water heater (at no cost to you) that will cycle your water heater during times of peak demand. In appreciation for your participation, we will issue a one-time credit of $25 to your GCEC account. n
GCEC President’s Message Continues from page 32
line with the actual cost of delivering electricity to our members and ensures each member is paying his or her share, whether the service is for a home or an “extra” service, such as a barn or shop. Like any other utility or service, GCEC has fixed costs that cannot be avoided. It costs GCEC the same amount to serve an “extra” service, such as a barn or shop, as it does a Kinneth Daniels home, although the home typically consumes more kWh of electricity. We are moving some of our costs into this $30.00 facilities charge. This is where they should be to ensure the cooperative charges and collects from each member fairly. If you use the GCEC average of 1,200 kWh a month, your average monthly bill will increase by 83 cents, or one-half a percent. This is a small rate increase, which is why we consider this to be more of a rate restructuring. Around 70 percent of each dollar you spend with the cooperative is used to pay for the cost of producing power. The largest cost is the fuel for generating the power. You can help GCEC and PowerSouth. We have energy conservation programs in place to put off or eliminate the need to build more power plants. We encourage you to visit the Touchstone Energy Together We Save website at www.togetherwesave.com. In addition to a wealth of energy-saving tips, the site contains a calculator. Enter energy-efficiency measures and watch the savings add up. We also encourage your participation in our H2O Plus program. H2O Plus is a load control program in which PowerSouth Energy Cooperative cycles water heaters throughout its service territory during times of peak demand. In appreciation for your participation in this program, we offer a one-time electric bill credit of $25. Find out more about this program by calling 265-3631. While I understand that no one likes cost increases, we have worked on your behalf to maintain retail electric power rates. Although we have a more challenging service territory compared with investor-owned utilities in the area—with only about eight members per mile of line to share the cost of delivering power versus the IOU average of 56 consumers per mile of line—we have managed to keep our rates competitive with theirs. Your board of directors does not take a rate adjustment lightly. We recognize the economic challenges our members face. Because of this, we will continue to control our costs, operate efficiently and provide you with the most reliable electric service possible, even as our dayto-day costs of doing business continue to rise. Thank you for your continued support and understanding.
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7
Gulf Coast
Trustees Elect Officers
Gulf Coast Electric Cooperative’s Board of Trustees recently elected new officers. New officers are Kinneth Daniels, president; Gary Cox, vice president; Eddie Jones, secretary; and Robert Byrd, treasurer. Waylon Graham will serve on the PowerSouth Energy Cooperative Board of Trustees, with Jones as the alternate. Gus Wise and Doug Birmingham will serve on the Florida Electric Cooperatives Association Board of Trustees, with Byrd as the alternate.
Kinneth Daniels
Gary Cox
Eddie Jones
Waylon Graham
Gus Wise
Robert Byrd
H2O
Doug Birmingham
PLUS
Rupert Brown
H2O Plus, a program available to you from Gulf Coast Electric Cooperative, has the potential to dramatically reduce the demand for electricity. We need your participation! Using energy wisely has never been easier. A device that allows our power supplier to cycle your unit for short periods is installed on your electric water heater. By managing energy use when demand is high—when you and your neighbors are using the most electricity—our supplier can reduce demand when electricity is most expensive, putting off the need to build facilities to generate more power, alleviating or postponing those costs. An added benefit is the reduction of greenhouse gases, which helps our environment. You still will have enough hot water for showers and household chores. In fact, you shouldn’t even notice a difference in the amount of hot water available. For more information, please call GCEC’s Energy Services Representative Manuela Heyn. She will take down your information and, after ensuring the program is a good fit for your household, schedule someone to come to your home and install the device at no cost to you. For your participation, GCEC will make a one-time $25 credit to your electric bill. We look forward to hearing from you soon.
Office numbers: Southport—(850) 265-3631; (800) 568-3667 Wewahitchka—(850) 639-2216; (800) 333-9392 Panama City—(850) 481-1188 8
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Gulf Coast Trading Post For Rent Three-bedroom, two-bath home in Lynn Haven. Garage and fenced backyard. On cul-de-sac in quiet neighborhood with many trees. Painted inside and out in the last six months. Pets are allowed with approval. $900 a month. (850) 271-0289. Horse barn with five stalls, paddock and about 4 acres of pasture in Wewahitchka, one block from the old courthouse. Lease by the stall with discount for multiple horses. (740) 334-0341.
For Sale Queen bed set. Pillow-top mattress, frame, box spring, headboard, dresser with mirror and nightstand. $500. (850) 643-6378. G.E. Spacemaker microwave, black, barely used, $100. Image 425 GTX treadmill, $85. Dresser, white with gold trim, three drawers, $75. Guideposts children’s Bible story series, $25. (850) 722-0970 after 5 p.m.
Comfortmaker three-ton heat pump. Split unit, three years old. $1,000. (850) 773-8282. Rabbits, chickens and eggs. Also, English saddle, $50. (850) 896-5192. Fresh figs and muscadines. Figs available now and muscadines, including scuppernongs and bronze bullis, available in August. Wonderful for snacking and canning. (850) 722-4226 for prices and availability. Miniature donkeys. Jacks and Jennys, black, brown, grey and paints. All ages. $300 and up. Make great pets. Also standard donkeys. Betty, (850) 899-7424. Two quarter horses and a pony. Ride well on trails, very gentle, good for lessons. (850) 773-1957.
Real Estate 10 acres next to Sunny Hills at the end of two paved roads. One acre is cleared. Good home site and hunting. $40,000. (850) 867-9614.
Trading Post is a FREE service to members of Gulf Coast Electric Cooperative. To submit an item, please complete the form below. GCEC reserves the right to reject any and all ads. Due to magazine deadlines, it may take two months from the time of submittal for your ad to appear. PLEASE PRINT LEGIBLY OR TYPE. Please circle the category that applies: For Rent
For Sale
Real Estate
Free
Miscellaneous
Trade
Wanted
Items:
Is Your Ad Legible? Readers need accurate information. That cannot happen if your ad is not neatly written—or, better yet, typed. If your submission is illegible, it will not be printed. Three bedroom, 1½-bath home, plus guest cabin, on 2.74 acres. 205’ on lake with ramp and dock. Carport, front and back porches and 10x24 aluminum shed. Secluded with wood fence. $59,900. (850) 638-1141 or mrpotszer@ netzero.net. One-of-a-kind home in Wewahitchka, home of tupelo honey, rivers and Dead Lakes. On 1/2-acre in a highly desirable neighborhood. Three bedrooms, two baths, open carport with storage above and on the side with a heated and cooled walk-in closet, 20x30 workshop and pool. Minutes from the world’s most beautiful beaches and shopping centers. (850) 814-7477. Reduced! 2000 Zone III doublewide. Five bedrooms, three baths, set up on a nice 1.12 acres with pond. New deep well, appliances, remodeled, with many upgrades. No owner financing. East Callaway Heights area. $77,000. (850) 381-8964. Beautiful three-bedroom, two-bath home in Sandy Creek. Located on a cul-de-sac in a quiet, secure neighborhood. Two-car garage, woodburning fireplace, new metal roof. $139,000 OBO. (850) 871-5058 or (850) 913-0539. Waterfront on Dead Lakes in Wewahitchka. Two lots total 140’ on the water. Access to Chipola and Apalachicola rivers. Two-bedroom, 1½-bath 2010 Zone III mobile home. Just west of Highway 71 on Mitchell Road. $68,500. (850) 742-0046 for appointment.
Name: Address: City/State/Zip:
Four-bedroom, two-bath 1,600-sq.-ft. home on 2.2 acres near Scotts Ferry in Calhoun County. Loft, garage, seven RV hook-ups. Construction is 90% complete. $150,000, firm. (334) 726-3927. Land in Dunlap, Tennessee. Beautiful 7.8 acres on top of Fredonia Mountain in Sequatchie County. Land is flat with mainly trees and wild game. Will divide if interested. 20% down, will carry. (850) 265-5554. ½-acre corner lot. (850) 639-2220.
Phone: Mail your ad to: The Trading Post; Gulf Coast Electric Cooperative; P.O. Box 8370; Southport, FL 32409; return with your electric payment; or email ad information to [email protected].
One-acre lakefront lot in Leisure Lakes gated community. Located on the largest lake. Pete, (850) 722-4886.
Miscellaneous Have dump truck; need full-time work. (850) 773-4654. J U LY 2 0 1 2
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Gulf Coast
TWACS Project Nearly Complete Automated meters speed outage recovery, assist member service efforts If you don’t have a new, automated meter, you will soon. Gulf Coast Electric Cooperative is nearly finished installing two-way automated communication system meters in its service territory. TWACS uses power lines to send information from your new meter back to your cooperative. This takes fewer than 10 seconds and does not affect electric service. How does this technology help you? Commands to read your meter are sent consistently, so your billing periods are more even. Meter-reading details are seamlessly integrated into GCEC’s customer service and billing software, so bills can be issued more promptly. Meter accuracy goes hand in hand with billing accuracy. GCEC meters are calibrated to industry standards and are tested before installation. TWACS technology also allows GCEC to monitor voltage, detect meter tampering, conduct meter rereads, store several days’ worth of data to give you a daily consumption use for high bills, notify us of a power outage and obtain accurate meter readings with no estimations. The cooperative will have the option to disconnect and reconnect non-pay accounts from the office. Before these new modules were installed, many of these tasks required GCEC to send personnel to your home to complete the work, causing a delay in providing you with service. Installation is simple and fast. You will not be charged service fees for installation or the cost of the new meter. Here is what happens when a new TWACS meter is installed: A line technician knocks on your door to alert you we will be interrupting your service momentarily. We do not need to enter your home. If you are not home, we leave a note on your front door notifying you of the installation. Your power will be off for a few minutes while the technician performs his or her duties. This includes gathering information such as your old meter number, an ending read, your new meter number, a new read and the TWACS module number. The technician does some field inventory to make sure everything in our billing system is correct on your account. Once the installation is complete, you need to reset all of your digital clocks and other electronic devices. We apologize for this inconvenience. n 26
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David Syfrett arrives at a member’s home to perform a meter change-out. He records identifying information from the new TWACS meter before installing it.
David knocks on the member’s door to let them know the power will be interrupted for a few minutes.
David records the reading on the old meter and takes a photo of the old meter before it is removed.
David opens the meter box, replaces the old meter with a new, automated meter and re-seals the box.
David takes a final picture of the installed new meter to show that its reading starts at zero.
Gulf Coast
Sharing Their Work Lives Gulf Coast Electric Cooperative participated in National Take Our Daughters and Sons to Work Day on April 26, inviting employees to bring a child to spend a day at work with them.
Tomica Lowery with son Caleb Carter.
Jimbo Nunery with granddaughter Brooke Sewell.
Chad Brackin with daughter Breanna.
David Syfrett with son Zack.
Kaci Rhodes with daughter Kaley.
28
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Tony Morrell with daughter Aubrey.
Betty Horne with great-niece Kristen Ward.
Bryan Newton with daughter Taylor.
Chris Pippin with son Riley. j u ly 2 0 1 2
29
FL-154
Offices 722 West Highway 22 P. O. Box 220 Wewahitchka, FL 32465 (850) 639-2216 or (800) 333-9392 9434 Highway 77 P. O. Box 8370 Southport, FL 32409 (850) 265-3631 or (800) 568-3667 6243 East Highway 98 Panama City, FL 32404 Phone: (850) 481-1188 www.gcec.com
CEO/General Manager Michael E. White
Trustees President Kinneth Daniels Vice President Gary Cox Secretary Eddie Jones Treasurer Robert Byrd Doug Birmingham Jimmy Black Rupert Brown Waylon Graham Gus Wise Jr. Trustees normally meet the third Tuesday of each month at 12:30 p.m. CST. The board meets at the Wewahitchka office in even-numbered months (February, April, June, August, October and December) and the Southport office in odd-numbered months (January, March, May, July, September and November). The mission of GCEC is to continually evaluate and implement technologies and seek solutions that fulfill a diversified memberships’ changing expectations for cost-effective, dependable utility services through a dedicated and responsive workforce. 32
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GCEC President’s Message
Market Factors Spur Rate Restructure and Increase Gulf Coast Electric Cooperative’s top priority as a nonprofit electric utility is to provide its members with affordable and reliable electricity. Despite our most vigilant efforts, sometimes GCEC’s cost of doing business increases, and we must pass on those increased costs to our members. Dramatic downturns in the U.S. economy during the past few years have deeply affected your cooperative. In 2008 and 2009, we ended the year with less-active meters than we had at the beginning of the year. Just as you are a member-owner of Gulf Coast Electric See page 4 for a Q&A Cooperative, GCEC about the rate changes is a member-owner Kinneth Daniels of PowerSouth Energy Cooperative, a generation and transmission cooperative. In 2011, PowerSouth Energy Cooperative had to increase its cost of service to its members, including GCEC, by 2.5 percent. This is a relatively small increase when you consider the cost of environmental regulations PowerSouth must comply with. Nonetheless, it is an increase GCEC has absorbed for several months without passing the increase along to you, the end-users. As we end the first half of 2012, low electric markets continue to hurt the financial position of your cooperative. We had a mild winter, with lower than expected kilowatt-hour sales. Moreover, the cost of materials we purchase is on the rise. For example, since 2008, the cost of poles has risen nearly 11 percent, the cost of transformers anywhere from 31 percent to nearly 35 percent, depending on size, and the cost of wire anywhere from 7 percent to nearly 61 percent, depending on size. Combined, these factors have led your cooperative board to make a difficult decision. Beginning with the June 30 bills, there will be a rate adjustment. We have worked diligently to keep our costs down so we could postpone rate increases to our members, but we are out of options. We have not implemented a general rate increase since 2007. That is a significant achievement given cost increases in the overall general marketplace. Effective June 30, the monthly facilities charge will increase from $19.45 to $30.00 for residential members. Increasing the facilities charge helps bring this fee more in Continues on page 7
GCEC offices will be closed Wednesday, July 4, for Independence Day.
J U LY 2012
COVER STORY:
GCEC Adjusts Rates The cost associated with providing power continues to increase, in part due to environmental modifications Gulf Coast Electric Cooperative’s power supplier is required to make to generating plants. The James A. Vann Jr. Power Plant, shown here, is PowerSouth Energy Cooperative’s cleanest and most efficient fossil-fired generating facility. For details on GCEC’s rate adjustment, see pages 4 and 32.
Trustees Elect New Officers PAGE 8
Take Your Kids to Work Day at the Co-op PAGE 28
Energy Smarts
Making the Most of Your Electricity
Florida Currents (USPS PP-81) is published monthly for members for $6.84 per year, not including postage, by Ruralite Services Inc., 2040 A Street, Forest Grove, OR 97116—a not-forprofit Oregon cooperative corporation—to serve the communications needs of five consumer-owned electric utilities in Florida. Periodicals Postage rates is Pending at Forest Grove, Oregon 97116 and at additional mailing offices. Postmaster: Please send address corrections to P.O. Box 558, Forest Grove, OR 97116. HOW TO CONTACT FLORIDA CURRENTS
Have a problem receiving your edition of Florida Currents? Utility members should contact the local utility office listed on the back cover. Nonmembers should contact Ruralite Services, P.O. Box 558, Forest Grove, OR 97116-0558; (503) 357-2105; email [email protected]. Subscription services: Nonmember subscriptions $12 (US) per year; $25 (foreign) per year. Prepayment required. Allow 4 to 8 weeks for first issue. Be sure to identify which local edition you want to receive. Extra copies: $2 each, pre-payment required. Supply is limited. Identify edition, month and year. Contact Ruralite Services. Reprint permission: Direct all requests to Ruralite Services. MANUSCRIPTS AND PHOTOGRAPHS
Please do not send unsolicited materials. If interested in writing for Florida Currents, query first. Include a self-addressed stamped envelope for writer’s guidelines. Address requests and queries to Ruralite Services. DISPLAY ADVERTISING INQUIRIES
Contact Russell Green or Brenda Somes Ruralite Services Inc. P.O. Box 558 Forest Grove, OR 97116-0558 (503) 357-2105 PRINTED IN FLORIDA
Trend Offset Printing Services 10301 Busch Drive North Jacksonville, FL 32218 © 2012 Ruralite Services Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited.
Give Your Energy Use a Vacation
Going on vacation? Even if you plan to be away for just a few days, you can save energy in your home when you travel. Here are some tips from Gulf Coast Electric Cooperative that can give your utility bill a break while you take a break. • Water heater. Turn down the temperature on your water heater or turn it off completely so it does not keep the water warm while you are away. • Thermostat. During hot weather, turn the thermostat higher on your air conditioning system. You will save energy while ensuring your home does not get too warm. • Lights. Turn off all lights in your home. You may want to install timers on one or two lights for security. • Electronics. Unless you are recording something while away, unplug all of your electronic devices: computer, monitor and printer, TV and cable boxes, DVD player, microwave and digital clocks. Any electronics with digital displays, instanton features or remote controls consume energy even if they are not in use. For other tips on how to save energy—and money—visit Touchstone Energy’s energy-saving website at www.TogetherWeSave.com.
Inside
July 2012 Vol. 1, No. 9
Python Patrol Attacks Problem 12
Landowners join local, state and federal agencies in coordinated effort to battle the threatening invaders. Also In This Issue Side Roads 10 In the Kitchen 16 Florida Gardener 19
Festival Roundup 22 Outdoor Pursuits 24 Parting Shot 30
Your utility pages: 4, 5, 6, 7, 8, 25, 26, 28, 29, 32
J U LY 2 0 1 2
3
Gulf Coast
Q&A: Rate Adjustment Answers to commonly asked questions about rate changes
Reliability ratings show Gulf Coast Electric Cooperative keeps the power on 99 percent of the time. GCEC’s member satisfaction scores rank us among the top performers in the nation. Our commitment to our members is superior reliability at competitive prices and quality service, now and in the future. This high level of service requires a fair and equitable investment from each Gulf Coast Electric member. To ensure this, GCEC periodically evaluates its rates through a cost-ofservice study. Rate design is a balancing act between meeting our revenue needs while minimizing the overall financial impact to our members. As a not-for-profit organization, we must recover our costs of doing business, as well as maintain sufficient margins to reinvest in our electric distribution system. The cost-of-service study identifies the total revenue requirements for the cooperative. Through that study, costs are allocated appropriately to each
The cost of poles and wire for distribution lines have increased. 4
j u ly 2 0 1 2
member classification based on the service, equipment and infrastructure required to serve them. Once completed, rate structures are designed to meet the needs of each classification. The most recent cost-of-service study resulted in new rate schedules that go into effect with bills mailed out June 30. Q: How much will my bill increase?
A: The cost-of-service study ensures each member pays his or her fair share. Based on rate classification and consumption, the impact to the member will vary. The greatest difference in the new rates is the change in the facilities charge, which has increased for all members. Therefore, low-use members will see the greatest impact. While the facilities charge was increased, we decreased the cost per kilowatt-hour as it relates to energy and cost of power sold adjustment charges. Q: What does the facilities charge represent?
A: The facilities charge ensures your expectations for continuous power and outstanding member service are met. It gives each member a fair and equal share of the cooperative’s operation. It provides funds that must be invested now to maintain the quality, reliability and integrity of services our members have counted on and come to expect. Among the expense items covered by the facility charge are: • Trucks, wire, transformers, power poles and labor needed to build and maintain the electric distribution system. • Keeping pace with increased system investments to improve both capacity and reliability. • Implementing new technologies to provide increased reliability and operational efficiencies such as advanced metering. • Liability insurance, interest and taxes. Because all cooperative members benefit from having reliable electric service available when they want it, the facility charge ensures everyone pays their fair share of the basic costs—costs that exist whether or not a single kWh is used.
for GCEC Q: Who determines when a rate increase is necessary and the amount of the increase?
A: Gulf Coast Electric Cooperative’s Board of Directors and the CEO/General Manager continuously monitor the financial stability of the cooperative to determine if or when a rate increase is necessary. To establish the new rate structure, an independent, experienced firm is hired to review and recommend changes. GCEC is required by our financial institutions to maintain minimums in key financial indicators. Thus, management and your board must continue to evaluate rates to make sure your co-op remains healthy.
Ever wonder what your power bill pays for?
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on average,
of your monthly power bill is used to make electricity
Q: Will I continue to see the wholesale power cost adjustment on my bill each month?
A: Yes. Actually, we were able to give you a 1.5mil credit on your bill with this change.
Q: Will the new rates change the cost of my outdoor light?
A: Outdoor lighting charges also have been reviewed as part of the cost-of-service study as electric consumption is a component of the monthly charge. Members can expect to see small increases in the cost of outdoor lighting.
Q: Did rates increase as a result of the deployment of AMI (smart meters)?
A: No. GCEC is always looking for ways to better serve you, our member. The advanced metering system that is being deployed actually will provide operational efficiencies, as well as increase the reliability of your electric service. Q: Will commercial/industrial rates increase, or is this applicable only to residential rates?
A: Yes, the cost-of-service study is a comprehensive review of all rates to ensure each member, regardless of their rate classification, pays his or her fair share. Each member class should pay its fair share of costs without having one member class subsidizing the other.
Gulf Coast Electric’s Expenses: Operations & Maintenance:
Distribution System Expenses Member Service Related Expenses General Expenses
Fixed Costs: Depreciation Taxes & Interest
16 % 17% 67 %
Electricity Production
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Gulf Coast
The Charles R. Lowman Power Plant in Leroy, Alabama, is one source of Gulf Coast Electric Cooperative’s power. The coal plant— operated by PowerSouth Energy Cooperative—is equipped with air quality equipment. Q: Are copies of the rate schedule available?
A: Yes, after June 30, copies will be available on our website, www.gcec.com. Q: Why is GCEC increasing its rates?
A: GCEC is a not-for-profit electric membership cooperative. The only way to recover our costs is through our rates. We must restructure our rates to recover our costs on a more equitable basis. We have not raised our rates since 2007. We have delayed rate adjustments, but now we must adjust our rates to ensure the quality, reliability and integrity of the services we provide. While virtually all aspects of today’s cost of living continue to rise, GCEC prides itself on avoiding routine price adjustments. Pricing adjustments are something we only consider when we have to. Reliable electric service at a reasonable price is something our members can count on and that we deliver daily. Maintaining dependable service at the most affordable price remains the cornerstone of our business. To accomplish this, we must protect the financial stability of our organization by asking our member-consumers to share in these costs. 6
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Q: What is my cooperative doing to help control costs?
A: We understand many of our members are struggling to pay their bills in uncertain economic times. We are doing everything possible to keep costs down and look out for your best interests. However, some of these costs are beyond our control. For instance, PowerSouth must comply with environmental regulations and pass this expense along to its member-owners, including GCEC. These cost increases are beyond PowerSouth’s control, too. You also must consider the increase in the cost of materials. For example, since 2008, the cost of poles has risen nearly 11 percent, the cost of transformers anywhere from 31 percent to nearly 35 percent, depending on size, and the cost of wire anywhere from 7 percent to nearly 61 percent, depending on size. Q: How do GCEC’s rates compare with those of other utilities?
A: GCEC’s rates are competitive compared with investor-owned utilities in the area. This is remarkable when you consider Gulf Coast Electric has a
density rate of about eight members per mile of line, compared with an average of about 56 customers per mile of line for area IOUs. That means GCEC only has a fraction of the consumers IOUs have to share the cost of delivering electricity. Our costs of delivering power often can be more expensive when you consider the rural terrain we cover compared with the more urban areas covered by IOUs. Gulf Coast Electric Cooperative is approximately 95 percent residential, with a small percentage of commercial and industrial members to help carry the load. Q: What can I do as a consumer to help control costs?
A: We want to help you better manage your energy use and save money. Your choices affect your electric bill. We encourage our members to visit the Touchstone Energy Together We Save website at www.togetherwesave.com. You will find not only energy-saving tips, but a calculator. Enter energysaving measures and watch the savings add up. Your cooperative also offers free energy audits. Call our offices to set up an appointment. Pending environmental legislation could cause your bill to rise. You can help get a message to Congress about finding a balanced energy policy by participating in the Our Energy, Our Future campaign. Visit www.ourenergy.coop to send an email. Q: Is Gulf Coast Electric Cooperative offering any sort of load-control program to help put off or alleviate the need to build more power plants?
A: To meet the electric needs of our memberconsumers, we join with 19 other power providers throughout south Alabama and northwest Florida to secure generating resources. In doing so, we are able to minimize rate adjustments by gaining economies of scale that otherwise may not be available. To help PowerSouth Energy Cooperative, our power provider, control its peaks, or highest demand for power, we offer our member-consumers a load management system, H2O Plus. Load management helps control our overall energy costs during these times. Call our offices to find out if you qualify for this program. If so, we will install a switch on your water heater (at no cost to you) that will cycle your water heater during times of peak demand. In appreciation for your participation, we will issue a one-time credit of $25 to your GCEC account. n
GCEC President’s Message Continues from page 32
line with the actual cost of delivering electricity to our members and ensures each member is paying his or her share, whether the service is for a home or an “extra” service, such as a barn or shop. Like any other utility or service, GCEC has fixed costs that cannot be avoided. It costs GCEC the same amount to serve an “extra” service, such as a barn or shop, as it does a Kinneth Daniels home, although the home typically consumes more kWh of electricity. We are moving some of our costs into this $30.00 facilities charge. This is where they should be to ensure the cooperative charges and collects from each member fairly. If you use the GCEC average of 1,200 kWh a month, your average monthly bill will increase by 83 cents, or one-half a percent. This is a small rate increase, which is why we consider this to be more of a rate restructuring. Around 70 percent of each dollar you spend with the cooperative is used to pay for the cost of producing power. The largest cost is the fuel for generating the power. You can help GCEC and PowerSouth. We have energy conservation programs in place to put off or eliminate the need to build more power plants. We encourage you to visit the Touchstone Energy Together We Save website at www.togetherwesave.com. In addition to a wealth of energy-saving tips, the site contains a calculator. Enter energy-efficiency measures and watch the savings add up. We also encourage your participation in our H2O Plus program. H2O Plus is a load control program in which PowerSouth Energy Cooperative cycles water heaters throughout its service territory during times of peak demand. In appreciation for your participation in this program, we offer a one-time electric bill credit of $25. Find out more about this program by calling 265-3631. While I understand that no one likes cost increases, we have worked on your behalf to maintain retail electric power rates. Although we have a more challenging service territory compared with investor-owned utilities in the area—with only about eight members per mile of line to share the cost of delivering power versus the IOU average of 56 consumers per mile of line—we have managed to keep our rates competitive with theirs. Your board of directors does not take a rate adjustment lightly. We recognize the economic challenges our members face. Because of this, we will continue to control our costs, operate efficiently and provide you with the most reliable electric service possible, even as our dayto-day costs of doing business continue to rise. Thank you for your continued support and understanding.
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Gulf Coast
Trustees Elect Officers
Gulf Coast Electric Cooperative’s Board of Trustees recently elected new officers. New officers are Kinneth Daniels, president; Gary Cox, vice president; Eddie Jones, secretary; and Robert Byrd, treasurer. Waylon Graham will serve on the PowerSouth Energy Cooperative Board of Trustees, with Jones as the alternate. Gus Wise and Doug Birmingham will serve on the Florida Electric Cooperatives Association Board of Trustees, with Byrd as the alternate.
Kinneth Daniels
Gary Cox
Eddie Jones
Waylon Graham
Gus Wise
Robert Byrd
H2O
Doug Birmingham
PLUS
Rupert Brown
H2O Plus, a program available to you from Gulf Coast Electric Cooperative, has the potential to dramatically reduce the demand for electricity. We need your participation! Using energy wisely has never been easier. A device that allows our power supplier to cycle your unit for short periods is installed on your electric water heater. By managing energy use when demand is high—when you and your neighbors are using the most electricity—our supplier can reduce demand when electricity is most expensive, putting off the need to build facilities to generate more power, alleviating or postponing those costs. An added benefit is the reduction of greenhouse gases, which helps our environment. You still will have enough hot water for showers and household chores. In fact, you shouldn’t even notice a difference in the amount of hot water available. For more information, please call GCEC’s Energy Services Representative Manuela Heyn. She will take down your information and, after ensuring the program is a good fit for your household, schedule someone to come to your home and install the device at no cost to you. For your participation, GCEC will make a one-time $25 credit to your electric bill. We look forward to hearing from you soon.
Office numbers: Southport—(850) 265-3631; (800) 568-3667 Wewahitchka—(850) 639-2216; (800) 333-9392 Panama City—(850) 481-1188 8
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Gulf Coast Trading Post For Rent Three-bedroom, two-bath home in Lynn Haven. Garage and fenced backyard. On cul-de-sac in quiet neighborhood with many trees. Painted inside and out in the last six months. Pets are allowed with approval. $900 a month. (850) 271-0289. Horse barn with five stalls, paddock and about 4 acres of pasture in Wewahitchka, one block from the old courthouse. Lease by the stall with discount for multiple horses. (740) 334-0341.
For Sale Queen bed set. Pillow-top mattress, frame, box spring, headboard, dresser with mirror and nightstand. $500. (850) 643-6378. G.E. Spacemaker microwave, black, barely used, $100. Image 425 GTX treadmill, $85. Dresser, white with gold trim, three drawers, $75. Guideposts children’s Bible story series, $25. (850) 722-0970 after 5 p.m.
Comfortmaker three-ton heat pump. Split unit, three years old. $1,000. (850) 773-8282. Rabbits, chickens and eggs. Also, English saddle, $50. (850) 896-5192. Fresh figs and muscadines. Figs available now and muscadines, including scuppernongs and bronze bullis, available in August. Wonderful for snacking and canning. (850) 722-4226 for prices and availability. Miniature donkeys. Jacks and Jennys, black, brown, grey and paints. All ages. $300 and up. Make great pets. Also standard donkeys. Betty, (850) 899-7424. Two quarter horses and a pony. Ride well on trails, very gentle, good for lessons. (850) 773-1957.
Real Estate 10 acres next to Sunny Hills at the end of two paved roads. One acre is cleared. Good home site and hunting. $40,000. (850) 867-9614.
Trading Post is a FREE service to members of Gulf Coast Electric Cooperative. To submit an item, please complete the form below. GCEC reserves the right to reject any and all ads. Due to magazine deadlines, it may take two months from the time of submittal for your ad to appear. PLEASE PRINT LEGIBLY OR TYPE. Please circle the category that applies: For Rent
For Sale
Real Estate
Free
Miscellaneous
Trade
Wanted
Items:
Is Your Ad Legible? Readers need accurate information. That cannot happen if your ad is not neatly written—or, better yet, typed. If your submission is illegible, it will not be printed. Three bedroom, 1½-bath home, plus guest cabin, on 2.74 acres. 205’ on lake with ramp and dock. Carport, front and back porches and 10x24 aluminum shed. Secluded with wood fence. $59,900. (850) 638-1141 or mrpotszer@ netzero.net. One-of-a-kind home in Wewahitchka, home of tupelo honey, rivers and Dead Lakes. On 1/2-acre in a highly desirable neighborhood. Three bedrooms, two baths, open carport with storage above and on the side with a heated and cooled walk-in closet, 20x30 workshop and pool. Minutes from the world’s most beautiful beaches and shopping centers. (850) 814-7477. Reduced! 2000 Zone III doublewide. Five bedrooms, three baths, set up on a nice 1.12 acres with pond. New deep well, appliances, remodeled, with many upgrades. No owner financing. East Callaway Heights area. $77,000. (850) 381-8964. Beautiful three-bedroom, two-bath home in Sandy Creek. Located on a cul-de-sac in a quiet, secure neighborhood. Two-car garage, woodburning fireplace, new metal roof. $139,000 OBO. (850) 871-5058 or (850) 913-0539. Waterfront on Dead Lakes in Wewahitchka. Two lots total 140’ on the water. Access to Chipola and Apalachicola rivers. Two-bedroom, 1½-bath 2010 Zone III mobile home. Just west of Highway 71 on Mitchell Road. $68,500. (850) 742-0046 for appointment.
Name: Address: City/State/Zip:
Four-bedroom, two-bath 1,600-sq.-ft. home on 2.2 acres near Scotts Ferry in Calhoun County. Loft, garage, seven RV hook-ups. Construction is 90% complete. $150,000, firm. (334) 726-3927. Land in Dunlap, Tennessee. Beautiful 7.8 acres on top of Fredonia Mountain in Sequatchie County. Land is flat with mainly trees and wild game. Will divide if interested. 20% down, will carry. (850) 265-5554. ½-acre corner lot. (850) 639-2220.
Phone: Mail your ad to: The Trading Post; Gulf Coast Electric Cooperative; P.O. Box 8370; Southport, FL 32409; return with your electric payment; or email ad information to [email protected].
One-acre lakefront lot in Leisure Lakes gated community. Located on the largest lake. Pete, (850) 722-4886.
Miscellaneous Have dump truck; need full-time work. (850) 773-4654. J U LY 2 0 1 2
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Gulf Coast
TWACS Project Nearly Complete Automated meters speed outage recovery, assist member service efforts If you don’t have a new, automated meter, you will soon. Gulf Coast Electric Cooperative is nearly finished installing two-way automated communication system meters in its service territory. TWACS uses power lines to send information from your new meter back to your cooperative. This takes fewer than 10 seconds and does not affect electric service. How does this technology help you? Commands to read your meter are sent consistently, so your billing periods are more even. Meter-reading details are seamlessly integrated into GCEC’s customer service and billing software, so bills can be issued more promptly. Meter accuracy goes hand in hand with billing accuracy. GCEC meters are calibrated to industry standards and are tested before installation. TWACS technology also allows GCEC to monitor voltage, detect meter tampering, conduct meter rereads, store several days’ worth of data to give you a daily consumption use for high bills, notify us of a power outage and obtain accurate meter readings with no estimations. The cooperative will have the option to disconnect and reconnect non-pay accounts from the office. Before these new modules were installed, many of these tasks required GCEC to send personnel to your home to complete the work, causing a delay in providing you with service. Installation is simple and fast. You will not be charged service fees for installation or the cost of the new meter. Here is what happens when a new TWACS meter is installed: A line technician knocks on your door to alert you we will be interrupting your service momentarily. We do not need to enter your home. If you are not home, we leave a note on your front door notifying you of the installation. Your power will be off for a few minutes while the technician performs his or her duties. This includes gathering information such as your old meter number, an ending read, your new meter number, a new read and the TWACS module number. The technician does some field inventory to make sure everything in our billing system is correct on your account. Once the installation is complete, you need to reset all of your digital clocks and other electronic devices. We apologize for this inconvenience. n 26
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David Syfrett arrives at a member’s home to perform a meter change-out. He records identifying information from the new TWACS meter before installing it.
David knocks on the member’s door to let them know the power will be interrupted for a few minutes.
David records the reading on the old meter and takes a photo of the old meter before it is removed.
David opens the meter box, replaces the old meter with a new, automated meter and re-seals the box.
David takes a final picture of the installed new meter to show that its reading starts at zero.
Gulf Coast
Sharing Their Work Lives Gulf Coast Electric Cooperative participated in National Take Our Daughters and Sons to Work Day on April 26, inviting employees to bring a child to spend a day at work with them.
Tomica Lowery with son Caleb Carter.
Jimbo Nunery with granddaughter Brooke Sewell.
Chad Brackin with daughter Breanna.
David Syfrett with son Zack.
Kaci Rhodes with daughter Kaley.
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Tony Morrell with daughter Aubrey.
Betty Horne with great-niece Kristen Ward.
Bryan Newton with daughter Taylor.
Chris Pippin with son Riley. j u ly 2 0 1 2
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FL-154
Offices 722 West Highway 22 P. O. Box 220 Wewahitchka, FL 32465 (850) 639-2216 or (800) 333-9392 9434 Highway 77 P. O. Box 8370 Southport, FL 32409 (850) 265-3631 or (800) 568-3667 6243 East Highway 98 Panama City, FL 32404 Phone: (850) 481-1188 www.gcec.com
CEO/General Manager Michael E. White
Trustees President Kinneth Daniels Vice President Gary Cox Secretary Eddie Jones Treasurer Robert Byrd Doug Birmingham Jimmy Black Rupert Brown Waylon Graham Gus Wise Jr. Trustees normally meet the third Tuesday of each month at 12:30 p.m. CST. The board meets at the Wewahitchka office in even-numbered months (February, April, June, August, October and December) and the Southport office in odd-numbered months (January, March, May, July, September and November). The mission of GCEC is to continually evaluate and implement technologies and seek solutions that fulfill a diversified memberships’ changing expectations for cost-effective, dependable utility services through a dedicated and responsive workforce. 32
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GCEC President’s Message
Market Factors Spur Rate Restructure and Increase Gulf Coast Electric Cooperative’s top priority as a nonprofit electric utility is to provide its members with affordable and reliable electricity. Despite our most vigilant efforts, sometimes GCEC’s cost of doing business increases, and we must pass on those increased costs to our members. Dramatic downturns in the U.S. economy during the past few years have deeply affected your cooperative. In 2008 and 2009, we ended the year with less-active meters than we had at the beginning of the year. Just as you are a member-owner of Gulf Coast Electric See page 4 for a Q&A Cooperative, GCEC about the rate changes is a member-owner Kinneth Daniels of PowerSouth Energy Cooperative, a generation and transmission cooperative. In 2011, PowerSouth Energy Cooperative had to increase its cost of service to its members, including GCEC, by 2.5 percent. This is a relatively small increase when you consider the cost of environmental regulations PowerSouth must comply with. Nonetheless, it is an increase GCEC has absorbed for several months without passing the increase along to you, the end-users. As we end the first half of 2012, low electric markets continue to hurt the financial position of your cooperative. We had a mild winter, with lower than expected kilowatt-hour sales. Moreover, the cost of materials we purchase is on the rise. For example, since 2008, the cost of poles has risen nearly 11 percent, the cost of transformers anywhere from 31 percent to nearly 35 percent, depending on size, and the cost of wire anywhere from 7 percent to nearly 61 percent, depending on size. Combined, these factors have led your cooperative board to make a difficult decision. Beginning with the June 30 bills, there will be a rate adjustment. We have worked diligently to keep our costs down so we could postpone rate increases to our members, but we are out of options. We have not implemented a general rate increase since 2007. That is a significant achievement given cost increases in the overall general marketplace. Effective June 30, the monthly facilities charge will increase from $19.45 to $30.00 for residential members. Increasing the facilities charge helps bring this fee more in Continues on page 7
GCEC offices will be closed Wednesday, July 4, for Independence Day.
