News from the Board

September 17, 2009 - Board Meeting Highlights
July 30, 2009 - Board Meeting Highlights
June 25, 2009 - Board Meeting Highlights

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Board Meeting Highlights
Meeting held September 17, 2009

• Jean van Biezen, Vice President of Cooperative Relations, gave the staff report for the month bring the board up to date on the ongoing communication plan and shared the Cooperative’s 70th Anniversary video to be shown at the Annual Meeting.
• Director Heather Mollo reported on the recent meeting of the Facilities Committee .  She reported that the committee reviewed the energy audit of the facilities and toured the facilities and grounds.  The committee discussed critical areas that may need immediate attention and recommended moving forward with a building site feasibility study for SCI’s current location as well as a new greenfield site.  The Board approved the recommendation of the Facilities Committee.
• Chairman Rex Franklin presented a plaque to retiring Director Roy Hardesty in appreciation and recognition of his 24 years of service as a Director of SCI.
• The Board of Directors approved the execution of a long-term loan with CoBank converting $4 million of the current line of credit loan balance to permanent long-term financing.
• The financial reports for the period ending August 31, 2009, were reviewed.  KWh sales decreased 13% over the previous year.  Total revenues for August were $4.7 million compared to $4.6 million in 2008.  Kwh purchases for the month decreased 21% from the previous year.  Year-to-date operating expenses were $8.5 million, a decrease from $8.7 million in 2008.  Fixed costs, including depreciation, interest and taxes were $6.5 million to date, an increase from $5.8 million in 2008.  The year-to-date margins are a negative $1.5 million compared to $987,591 the prior year.
• Greg McKelfresh, Senior Vice President of Business Technology, discussed the BPL project in the Mooresville area reporting that IBEC is continuing to address operational changes within their organization that should help address many of the current issues with the project.
• The Board approved the Power Requirements Study 2008-2028 prepared by Hoosier Energy.  The study is used by SCI and Hoosier Energy to help plan for future distribution, transmission and power supply facilities and needs.
• The next regularly scheduled meeting of the Board of Directors will be held at 5:00 P.M. on Thursday, October 29, 2009 at the Cooperative’s headquarters in Martinsville.

Board Meeting Highlights

Meeting held July 30, 2009

• Phil Mattison, Vice President of Operations, reviewed the past 5 years of data regarding outages on SCI’s system.  He discussed changes that have affected the number of outages and reduced the duration of outages including the implementation of the in-house dispatch center, the AMR system, and in-house right-of-way crews.
• CEO Sump discussed the recent area member meetings reporting that an estimated 480 members attended the meetings to hear about climate change legislation, energy efficiency programs, and SCI’s BPL project. 
• Mr. Sump reported that SCI Services, LLC has completed the purchase of the security business from Daviess-Martin REMC and the documents to execute the $250,000 loan from the REMC to SCI Services, LLC were presented for approval.  The Board approved a $250,000 loan to SCI Services, LLC for a ten year term with a variable interest rate (currently 4.95%) to be repriced annually based on the long-term variable interest rate offered by Cooperative Finance Corporation (a current REMC lender).
• SCI received a request from Indiana Statewide REC, Inc. for an additional corporate contribution to the Indiana FORE (Friends of Rural Electrics) political action committee due to the number of utility related issues currently before the Indiana legislature.  The Board approved an additional contribution of $2,000.
• The CEO reported that there will not be a contested director election at this year’s annual meeting as only the incumbent board members had submitted petitions.  Due to the non-contested election, ballots will not be mailed to the membership but will be distributed at the Annual Meeting for voting. 
• The Board appointed the Election Committee for the 2009 Annual Meeting to be held September 19, 2009, at the Mooresville High School.
• The next regularly scheduled meeting of the Board of Directors will be held at 5:00 P.M. on Thursday, August 27, 2009 at the Cooperative’s headquarters in Martinsville.

Board Meeting Highlights

Meeting held June 25, 2009

• Jack Hubbard, Vice President of Engineering, reviewed five proposed projects submitted for stimulus funds including load control devices, meter data management software, a prepay meter program, in-home display unit, and distributed automation equipment.
• Mr. Sump reviewed the year-to-date outage history which indicates more outages than the previous year but less outage hours.  This is a positive indicator that the automated system is helping to reduce outage time.
• CEO Sump reviewed financial reports for the period ending May 31, 2009.  Year-to-date KWh sales decreased 3.6% over the previous year.  Total revenues for May were $4.4 million compared to $3.7 million in 2008.  Wholesale power costs for the month were $2.7 million, an increase of 18.9% from the previous year.  Total operating expenses were $5.3 million, an increase from $5.1 million in 2008.  Fixed costs, including depreciation, interest and taxes, were $4.1 million, an increase from $3.5 million in 2008.  The year-to-date margins are negative $856,190 compared to $1.7 million the prior year. 
• Greg McKelfresh, Vice President of Business Technology, updated the Board on the BPL Project reporting that 709 regeneration units have been set in the Mooresville area on three substations.  Members in those areas have been notified of the availability of the BPL and sign-ups are being taken.
• The CEO reported that the Member Advisory Committee will meet on July 6 and Maureen Ferguson of Indiana Statewide will be attending the meeting to discuss the climate change legislation.
• Mr. Sump reported that Daviess-Martin County REMC had accepted the offer from SCI Services, LLC to purchase their existing security accounts and SCI Services will proceed with the purchase as previously approved by the Board.
• The next regularly scheduled meeting of the Board of Directors will be held at 5:00 P.M. on Thursday, July 30, 2009 at the Cooperative’s headquarters in Martinsville.