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SIEC Board Meeting Summary June 2014

What does it cost to construct NEW power lines?
Monthly FIXED Charge allows DECOUPLING from VARIABLE Energy Revenue!!




SIEC Board Meeting Summary June 2014

- Consider revising Policy GB-39 Patronage Dividend Policy
- Approve FEMA Hazard Mitigation Project Engineer application #3

- Review Rural Electric Research Council Solar Workshop Info
- Approve LED Security Light Replacement Evluma 40W -- 3 years
- Approve Cities Reliability Insurance Agreement or Mutual Aid
- Approve IUB required Reliability Plan for 2014
- Approve Estate Patronage Retirements
- Executive Session: CEO/Manager Evaluation
- Discuss Sales for Resale

 Any suggestions please contact Mark Aeilts, CEO: (maeilts@sie.coop)



What does it cost to construct NEW power lines?

Summary of a few of the Six Year Work Plan Costs: (Please contact our office if you want more info on the even more expensive cost of generation & transmission lines) 

18 miles of Singal Phase Overhead     $58,000/mile

21 miles of Three Phase Overhead     $88,000/mile

13 miles of Three Phase (heavier conductor) $115,000/mile


Monthly FIXED Charge allows DECOUPLING from VARIABLE Energy Revenue!!

Every electric company has two kinds of costs: fixed and variable. Fixed costs include personnel, equipment and distribution lines that must be paid despite weather conditions or energy sales. Variable costs are fluctuating costs such as the price paid for electricity and the amount of electricity used by the member. Revenue decoupling is just a way of separating the revenue, the fixed cost of distribution from the ups and downs of electricity consumed.

Revenue decoupling enables full support of energy efficiency as required by the Iowa Utilities Board (IUB) and its resulting environmental benefits without having to sacrifice financial stability. Utility rate structures are based upon averages. The advantage to YOUR Co-op is less undercharging in moderate weather. The advantage to YOU is less high bill complaints in extreme weather. 

Revenue decoupling only addresses the delivery portion, about 25%, of YOUR total bill. It is important to remember that the cost of the electricity, the actual energy consumption, makes up the majority of YOUR bill – typically about 75%. As YOU choose YOUR consumption it is reflected in the supply portion of YOUR bill.

Nondiscrimination Statement: In accordance with Federal law and U.S. Department of Agriculture policy, this institution is prohibited from discriminating on the basis of race, color, national origin, age, disability, religion, sex, and familial status. (Not all prohibited bases apply to all programs). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington D.C. 20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD).


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