3JUNE 2017

VIGILANTE ELECTRIC COOPERATIVE, INC.VIGILANTE ELECTRIC COOPERATIVE

P.O. Box 1049, Dillon, MT 59725-1049(406) 683-2327 or (800) 221-8271

Web site: www.vec.coopE-mail: contact@vec.coopOWNED BY THOSE WE SERVE

A Message from Your General Manager OutageNotificationNumbers

M-F 8 a.m. to 5 p.m.683-2327 or

(800) 221-8271

DillonAfter Hours Mon. - Thurs.

Justin Bair............925-1540Charles Wharton ..660-1878Gary Ferris ..........683-6321

Weekends683-2327 or

(800) 221-8271

WhitehallAfter Hours and Weekends

Marty Simons ......287-3950Chuck Romerio ....491-5466Zach Maershbecker....701-290-9265

TownsendAfter Hours and Weekends

John Moos............266-3605Chase White ........459-3892Marty Simons ......287-3950

As I write this article, there are twokey issues affecting your electriccooperative that I wanted to bring to

your attention. The first involves MontanaSenate Bill 363, allowing for funding for anAquatic Invasive Species (AIS) mitigationmeasure. The AIS impact funding is part ofa broad funding package targeting fishinglicenses and a new tax on hydropower gen-eration in Montana. The new hydropowergeneration tax is imposed on generatorslocated within the state of Montana and, inthe case of electric cooperatives, those thathave a generation portfolio of a more than50 percent hydropower mix. This means thatVigilante Electric and all of the BonnevillePower Administration (BPA) customers inwestern Montana will be affected. One posi-tive note on the funding source for this leg-islation from the cooperatives in Montana isthat it is for a period of just two years. We think that the AIS problem within the

state of Montana involves all of us. We arecommitted to doing our part for the long-term viability of our natural resources, butthe funding should come from all of uswithin the state, not just those usinghydropower generation. This additional taxon Vigilante Electric will have an adverseeffect on our budget, as the legislation willtake effect immediately, without any oppor-tunity to plan for it. Furthermore, we arefighting to ensure that there are not moretaxes or proposals for this AIS measureplaced on BPA itself through the NorthwestPower and Conservation Council, an advisorycouncil to BPA from the individual north-west region states. Through the MontanaElectric Cooperatives’ Association (MECA),our statewide association, we are vigorouslyfighting any new or additional taxes orlevies placed on the kWh energy we distrib-ute to you, the members.The second key issue is the possibility of

what is called a CRAC, or Cost Recovery

Adjustment Clause, withinour wholesale powerprovider BPA. This is a one-year adder toour monthly wholesale power bills, whichcan be significant. Due to complex pricingand generation issues, BPA may not receiveenough revenue to meet its regulatory obli-gations. Primary drivers in this CRAC deter-mination are a combination of wholesalemarket energy pricing, mild temperatures,significant snowpack in the northwest (andthus water for hydropower generation), sig-nificant wind generation and lower thanplanned usage within the region. Due to sig-nificant installation of wind generation inthe region, BPA may be in what is called anoversupply situation, whereby some windgeneration may be directed to be curtailed.In this case, BPA is required to pay the windgenerators to shut off. The result of all thisis higher wholesale power costs that areunbudgeted or unplanned for. From our perspective, the end result is

that we may need to raise our retail rates tocompensate for both the AIS and CRACmeasures. We are doing everything we canto control our costs and keep our rates aslow as possible, but some things are out ofour control. We will know much more onthe CRAC impacts in the next couple ofmonths. I will provide updates as theybecome available to me, and will do what Ican to keep you informed so you can do theplanning you need to do in operating yourown budgets. Having said that “bad” news,our residential and irrigation retail rates con-tinue to be the lowest in the state and someof the lowest in the country, and we aim tokeep it that way.We hope you enjoy the start of your sum-

mer, and if you need to contact me for anyreason, feel free to call me on my mobilephone at (406) 925-1085, or email me at rollie@vec.coop.

Rate Pressures

Rollie MillerGeneral Manager

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RURAL MONTANA

By Tom Tate

As the proliferation of electronics impacts our dailylives, we realize there simply are not enough outletsin our homes. This is particularly true for older

homes. As a result, we end up with a number of “outletexpanders,” more commonly known as power strips.Power strips are generic and fulfill a very simple function.

They are inexpensive and the quality, I suspect, is on parwith the price. Keeping this in mind, let’s look at factors to consider

when purchasing a power strip or a surge protector, thepower strip’s more talented cousin.Important tip: Make sure you know the amperage rating

of the outlet into which you are connecting the strip andother equipment. A residential circuit can overload if youare not careful.

Purchasing a power strip:• Look for power strips with a built-in circuit breaker. Ifyou connect too many electronics and devices, the stripwill kick out the circuit breaker rather than causing thebreaker in your electric panel to trip.

• Pay attention to the orientation of the outlets. The typicaldesign is along the length of the strip, facing the bottomor end of the strip. I recommend power strips with theoutlets perpendicular to the length of the strip.

• Get a smart strip. These are becoming more common andless expensive. With smart strips, one outlet serves as amaster, receiving power all the time. The other outlets donot receive power until the master device is turned on.This is ideal for home entertainment setups. If you are connecting expensive electronics, you may

want to consider a surge protector. Here, price is even moreimportant because a cheap surge protector can be worse than

none at all for two reasons. One, they use cheap, smallsurge-fighting components. Two, these components can failand the strip still will provide power, all without any indica-tion that its protective side is gone. Like power strips, there are some key factors to consider

when buying a surge protector.• Go for a significant joule (pronounced jewel) rating. Thisis a measure of how much energy it can withstand.

• Cable and internet connection protection. You may wantto consider this for your entertainment and computingneeds as surges can enter via any wired connection. Besure the protector is designed to handle a digital televi-sion. Otherwise, it can cause pixilation if it’s onlydesigned for analog signals.

• Indicator light that shows if protection has burned out.• The same outlet orientation as previously mentioned.• Power-conditioning feature (for PCs, this is a nice-to-havefeature, but not a necessity).

• A smart capability as mentioned above.Power strips and surge protectors are worth the invest-

ment when you follow these simple suggestions. Don’t get“burned” by purchasing cheap, inefficient strips and protec-tors — pun intended.

Cooperative OutreachCareer Talk

By Rod Siring, Member Services

Recently, Vigilante Electric Cooperativewas asked to participate in a careerfair organized by Beaverhead County

High School. The fair was for current sopho-mores and juniors, and designed to open thestudents minds to not only career options butthe skill sets needed by area businesses.This year, the school was interested in

having a lineman and an engineer talk withits students. In true cooperative spirit, two ofour managers found time to take part in thisevent. As an organization, we would like tothank Manager of Engineering Gary Ferrisand Line Superintendent Justin Bair for tak-ing time out of their busy schedules to par-ticipate in this event.

Power strips versus surge protectors

Manager of Engineering Gary Ferris

Line Superintendent Justin Bair

VIGILANTE ELECTRIC COOPERATIVE, INC.

5JUNE 2017

We would like to congratulate Vigilante ElectricCooperative Office Manager Raquel Reno-Morastfor successfully completing an intensive program

in electric utility management at the University ofWisconsin, Madison.The Robert I. Kabat Management Internship Program

(MIP) is a series of workshops offered by the NationalRural Electric Cooperative Association in conjunction withthe University of Wisconsin. The program guides partici-pants through all facets of the electric utility industry,including the many changes occurring around the nation. According to General Manager Rollie Miller, “The MIP

training is intense, advanced training, and I am happy tohave my management team complete it, and am especiallyproud of Raquel for her effort related to this. We work verywell together as a unit, and this training can be attributed tosome of that success. I would also like to thank the board oftrustees for allowing budget funding for this type of training.”Raquel is one of only a few electric utility management

staff that will graduate from the Management InternshipProgram this year. MIP participants go through three 10-day sessions

designed to challenge and educate participants in new, inno-vative management techniques. Participants leave with abetter understanding of what consumers want — and how toensure they get it.By also covering the unique principles that govern the

operations of electric cooperatives, the program helps theco-op analyze other business ventures it may want to enter,as well as enhancing the core organization.Only rural electric cooperative CEOs and top-level man-

agement participate in the program. This allows greateremphasis of study on management challenges and theaspects of consumer-ownership that cooperatives enjoy.Participants learn to focus on member value as part of day-to-day decision making.Raquel has completed one of the most exclusive educa-

tional programs in the nation for electric cooperative man-agement. We congratulate her for this accomplishment andthank her for her dedication to our organization.

Strengthening Our FutureReno-Morast Graduates from theManagement Internship Program

Noel Earns JourneymanCertification

Vigilante ElectricCooperative would like totake this opportunity to

introduce you to our newestemployee, Chelsey Hutchison.Chelsey will be working in our

Dillon office as the consumerclerk. She is a Montana nativeraised in Helena, and she has aBachelor of Arts Degree in literature from the University ofMontana-Western. Most recently, she worked as theAdmissions Coordinator for the Montana Youth ChallengeAcademy. Chelsey and her husband, Adam, have two daughters,

Raylee Ann and Stevie Jo. We would like to welcomeChelsey and her family to our organization and look forwardto a long association.

On the ClockChelsey Hutchison

In February of 2016, MorganNoel joined Vigilante ElectricCooperative as an apprentice

lineman working out of ourDillon shop. We would like totake this opportunity to congratu-late Morgan on successfully com-pleting his apprenticeship andearning his journeyman linemancertification through theMountain States ApprenticeshipProgram.This apprentice program is

quite intensive, taking about four years to complete and aminimum of 7,000 hours of on-the-job training and relatedinstructional class work. General Manager Rollie Miller stat-ed, “This is a major milestone for any lineman to achieve,and I am proud of Morgan completing the program withsuch high success. He is a great employee and we are happyhe is a part of our team.”

Co-op ConnectionsPrescription Discount Tracker

Total Paid Claims YTD ....................................574Total Savings YTD ..............................$21,891.31Total Savings Percentage..........................42.51%February Paid Claims ..........................................7February Savings ..................................$1,700.70February Savings Percentage ..................60.74%

Morgan Noel

Chelsey Hutchison

Office Manager Raquel Reno-Morast receiving hercertificate of completion from Gary Pfann, director,executive and staff education at National RuralElectric Cooperative Association.

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