Paulding Putnam Electric Cooperative’s (PPEC) 86th Annual Meeting of Members premiered on Facebook and YouTube at 10 a.m. on Saturday, March 19, 2022. More than 700 viewers tuned in to watch the meeting over the weekend to hear co-op updates, a recap of 2021, and election results.
More than 29% of eligible District 4 members voted in PPEC’s 2022 elections, many enjoying the new capability to vote conveniently online through their secure SmartHub account.
Board election results were announced, with each board member elected to serve a three-year term:
• Incumbent William Dowler of Paulding was re-elected to District 2 (represents Van Wert County in Ohio). No candidates submitted petitions to run against Dowler, so he was re-elected by affirmation.
• New trustee William ‘Bill’ Beckman was elected to District 4 (represents Emerald, Jackson, Blue Creek, and Paulding Townships in Paulding County, Ohio; Delaware township in Defiance County, Ohio). District 4 had an open seat with three candidates running for election after Jay Dangler’s decision not to run for re-election. Candidates Scott Strahley and Fred Pieper (both from Paulding) also ran.
• Incumbent Steven McMichael was re-elected to District 5 (represents Maumee, Adams, Jefferson, and Jackson Townships in Allen County, Indiana). No candidates submitted petitions to run against McMichael, so he was re-elected by affirmation.
The election was run by a third-party company named Survey and Ballot System. The certified election results can be found at www.ppec.coop/2022AnnualMeeting.
Board Chairman Dr. John Saxton, Secretary-Treasurer Dr. Ron Black, and President and CEO George Carter reflected on 2021’s challenges and successes, highlighting the “huge struggle” PPEC endured last year.
“Not only have we had to battle through the pandemic as you all have, but we also dealt with material shortages and price increases like we have never seen. In some cases, price was irrelevant because the material was unavailable,” said PPEC President and CEO George Carter. “This may last well into next year and will continue to put pressure on our service cost.”
Carter also reported that the cost of purchased power from Buckeye Power (PPEC’s electricity supplier) increased dramatically this year, two factors for which include the price of fuel and the transmission cost. To put the fuel cost into perspective, Carter reported that for the year 2007, the total cost of fuel averaged $471,000 per month. Meanwhile, in January (one month) of this year alone, the cost was $1.1 million.
The same is true for transmission costs, but higher.
“Since 2015, transmission costs have increased $3 million and are now 20% of our total Buckeye bill,” Carter said. “Looking back to 2007, total transmission costs were just above $1 million; in 2021, the total was just under $6 million. That’s a nearly six times increase! This trend is expected to continue and will undoubtedly put upward rate pressure on the cooperative.”
Other 2021 highlights reported on during the meeting included:
• PPEC received its highest-ever score in the comprehensive RESAP safety inspection, conducted by Ohio’s Electric Cooperatives.
• Total margins were down from the prior year – a result of higher wholesale power costs from Buckeye Power – but above budget at $4.78 million.
• The largest capital credits refund in co-op history: $2.3 million was returned to members last December via capital credits – this is proof of each member’s ownership in the co-op.
• Member growth increased in 2021, with sold kilowatt-hours increasing 5% over the prior year
• Three apprentice linemen graduated from the 4-year, hands-on Central Ohio Lineworker Training (COLT) program in Mt. Gilead, Ohio, and will soon be journeyman linemen: Terry Minic, Garrett Gerdeman, and Jordan Mohler.
• Retiree Mary Arend was commended for her 26 years of service to the co-op as a member service representative.
• Members were asked to save the date for PPEC’s Member Appreciation Family Fun Event on Saturday, July 23, 2022.
Board Secretary-Treasurer Dr. Ron Black reported that “the financial health of our cooperative is strong,” with operating expenses under budget by $326,000 (5%) and utility plant investments – including poles, wires, transformers, and other equipment – increasing by $5.7 million in 2021. PPEC’s auditing firm of Bashore, Reineck, Stoller, and Waterman issued an unqualified, or clean audit opinion.
Board Chairman Dr. John Saxton gave an overview of the board’s concerns and priorities, including setting the company’s tone, ensuring safety is top of mind, reviewing budgets and monitoring performance. Succession planning was reviewed to address board turnover.
“Currently, we have five board members with less than five years of experience on the board,” said Dr. Saxton. “Additionally, this year, Trustee Jay Dangler chose not to seek reelection, so we welcomed a new board member in District 4. It takes several years to get a good understanding of the industry and what’s required, which is why we require educational training through our National Association – NRECA. We must maintain this active education, which is vital for a strong board.”
Dr. Saxton also addressed 2021’s detailed strategic planning session, including preparation for electric vehicles (EVs).
“Will EVs have a major impact? Should the cooperative install charging stations? If members buy EVs will their existing home services be able to manage the additional load? Will the existing electrical system manage the additional load if EVs are the majority of vehicles produced in coming years? Changes to the grid take years of planning and construction…your board is committed to providing the membership with a reliable electric system and reasonable rates, meaning we must continually plan, stay educated, and empower our employees.”
A total of $750 in bill credits were drawn at random from those members who watched the meeting and left a comment. Winners were as follows:
$50 BILL CREDIT WINNERS:
• Leonissa Hermiller, Columbus Grove (OH)
• John Pier, Oakwood (OH)
• Machetta Salyers Porter, New Bavaria (OH)
• John Smalley, Cecil (OH)
• Janice Gfell, New Haven (IN)
• Paula Meek, Hicksville (OH)
• Staci Miller, Grover Hill (OH)
• Kevin Kettels, Continental (OH)
• Sandra and Anthony Payton, New Haven (IN)
• Valerie Turner, Hoagland (IN)
• Karen and Dennis Ricker, Delphos (OH)
• Christine Gable, Ottawa (OH)
• Jill and Nathan Patrick, Ottawa (OH)
• Eugene F Siefker, Columbus Grove (OH)
• Jerry Schlaudroff, Monroeville (IN)
To view the annual meeting recording, visit www.ppec.coop/2022AnnualMeeting. PPEC’s 2021 Annual Report, 2021 audit, and the certified election results can be found here as well. Those wanting more information can call the office at 800-686-2357.
Paulding Putnam Electric Cooperative is proud to serve more than 12,900 members in Paulding, Putnam, Defiance, Van Wert, and Allen counties in Ohio, and Adams and Allen counties in Indiana. Since 1935, our not-for-profit model has allowed us to provide affordable, reliable, and safe power to rural areas with pride.
