News from the Board

December 22, 2009 - Board Meeting Highlights
September 17, 2009 - Board Meeting Highlights
July 30, 2009 - Board Meeting Highlights

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Board Meeting Highlights
Meeting held December 22, 2009

• Mr. Sump reported that effective January 1, 2010, the IRS mileage reimbursement rate will be $.50 per mile, a reduction from $.55 in 2009.

• The financial reports for the period ending November 30, 2009 are as follows: kWh sales decreased 2.7% over the previous year.  Total revenues for November were $4.5 million compared to $4 million in 2008.  kWh purchases for the month increased 1.5% from the previous year.  Year-to-date operating expenses were $11.6 million, an increase from $11.3 million in 2008.  Fixed costs, including depreciation, interest and taxes were $8.9 million to date, an increase from $8.2 million in 2008.  The year-to-date margins are a negative $1.8 million compared to $259,000 the prior year.

• The Board unanimously approved the Proposed Bylaw Revision Article I, Section 6 as follows:    Section X.  Member to Grant Easements to Cooperative and to Participate in Required Cooperative Load Energy Efficiency and Energy Management Programs     Each member, upon request by the Cooperative, shall execute and deliver to the Cooperative grants of easement or right-of-way over, on and under such lands owned or leased by or mortgaged to the member in accordance with reasonable terms and conditions as the Cooperative shall require for the furnishing of electric service to the members or for other members or for the construction, operation, maintenance or relocation of the Cooperative’s electric facilities.  The Cooperative may initiate energy efficiency and energy management programs to assist members in reducing energy usage, controlling the cost of wholesale power purchased on behalf of the members, and to comply with State and Federal laws, rules and program requirements.  In the event such programs are initiated, each member may be required to participate.

• The President & CEO reviewed the 2010 budget proposals comparing data for the 2009 projected budget and the 2010 proposed budget.  Following discussion, the Board approved the 2010 Budget and Work Plan as presented.

• The Board considered the appointment of trustees to the SCI Membership Community Fund, Inc. Board of Trustees.  Current vacancies required the appointment of a Trustee from Owen County and Brown County and one at large.  Three applications had been received for consideration all representing Owen County.  The Board appointed Jeff Harris and Mark Duling to fill the Owen County vacancy and the at large vacancy.  The Brown County vacancy will be considered at the January meeting upon receipt of applications.

• The next regularly scheduled meeting of the Board of Directors will be held at 5:00 P.M. on Thursday, January 28, 2010, at the Cooperative’s headquarters in Martinsville.

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.