Continued on page 4…

acecNEWS March 2016

Volume 18 / Issue 3

Republished with permission ©2016 The Gazette, Cedar Rapids, Iowa.

“It really boils down to economic develop-ment,” Foxwell said. “It’s a way for rural areas to compete with urban areas and maintain a quality of life for rural residents that’s on an equal footing.

“We liken it to the early days of rural elec-trification. Having electricity was viewed as a luxury by a lot of people at that time, but now it’s a necessity.”

The population of rural communities in the United States is falling, according to data from the U.S. Department of Agricul-ture’s Economic Research Service. Aver-age growth rates for rural areas fell from 0.7 percent in 2006 to below zero in 2011, where they have remained.

Rural broadband seen as essential By George C. Ford, The Gazette

Dianne Rissman remembers what life was like before she was able to get broadband Internet service at her business in rural Postville.

“We have old phone lines, and it would take 15 to 20 minutes to load a page. We would just finally give up,” said Rissman, co-owner with Caroline Clark of Forest Mills Quilt Shop.

“We used to have the old dial-up credit-card machine. We switched to the Square card reader, and in less than a year we saved enough in fees to pay for the iPad we need to run it.”

Clark and Rissman have fixed wire-less broadband Internet service through Allamakee-Clayton Electric Coopera-tive in Postville.

A receiver mounted on a utility pole is connected to their store by a cable. The receiver links up with a transmitter at the top of a grain silo in Postville.

Paul Foxwell, executive vice president and general manager of Allamakee-Clayton Electric Coopera-tive, said rural electric co-ops see the need to add Internet broadband service in rural communities that are not being served by other telecommunications providers.

Owner Caroline Clark at the Forest Mills Quilt Shop in Postville uses her iPad to conduct the store’s daily business. (Adam Wesley photos/The Gazette)

A wireless Internet receiver is connected to a utility pole near the Forest Mills Quilt Shop. A cable is run from this device to the shop to provide it with broadband Internet, via Allamakee-Clayton Electric Cooperative. (Adam Wesley/The Gazette)

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PerspectiveA message from Paul D. Foxwell,

Executive Vice President/General Manager

Regulation vs. innovationThose of us working in the electric utility industry recognize that we are entering an era of profound change. Much of this change is being driven by advancements in technology, but another major driver of change is envi-ronmental regulation. The Environ-mental Protection Agency’s Clean Power Plan is one such regulatory driver and has the potential to have a huge impact on the industry as well as on consumer rates. I’m all for technological innovation, but in my experience, forced innovation through regulation is not a good recipe for change leading to a sound and economically sustainable future. While I will concede that technolog-ical advancements can be coerced to some degree through incentives or even through mandates, generally such advancements are more suc-cessfully driven by market condi-tions and free enterprise. On the whole, the electric utility industry has been working hard to reduce its carbon footprint and its dependence on fossil fuels. There are climate change deniers out there, but overall public opinion and established science support the concept of climate change. Politi-cal processes are another matter, however, and the Clean Power Plan seems to be a case study in com-plexity, confusion and cost. This plan has been advanced by the cur-rent administration at a rate that was destined to surpass the industry’s ability to reasonably implement the mandated reductions in carbon emissions. States have been scram-bling to develop plans to achieve the targeted reductions, some of which

tend to pit one state against another. Iowa’s approach, as is typical for our state, has been one of common sense and coordinated effort between the Iowa Utilities Board, the Department of Natural Resources and the Iowa Economic Development Authority,

with plenty of opportunity for input from utilities and other parties.A recent decision by the U.S. Supreme Court granted a stay of the Clean Power Plan rule. This means that the rule is temporarily on hold and has no legal effect while the courts determine if it is lawful. During this period, the EPA cannot enforce any of the dead-lines or requirements in the rule, and states cannot be penalized for missing a deadline for compliance. The deadlines in the rule will likely be reset based on the length of time that the stay is in place. This stay was unprecedented in that the Supreme Court has never be-fore granted a stay prior to the Circuit Court of Appeals issuing a decision on the contested regulation. It was a split,

5 to 4 decision in favor of the stay (which could be in jeopardy with the recent death of Justice Scalia). One thousand three hundred seventy-one C dash three S

What does all of this mean to the future of the Clean Power Plan? Simply put, it means that at least five justices had serious reservations about the legal issues surrounding the plan, sufficient enough to warrant review by the D.C. Circuit Court. That review will likely take place in June of this year, with a decision as early as this fall. In the mean time, each state has the option of continu-ing to develop its own plan or of simply halting the process until the matter is decided.In any case, the stay is very welcome in that it provides additional time for decision making. This is a situation where we need to get it done right, not fast. We cannot transition the electric utility industry away from fossil fuels overnight. The Clean Power Plan, however well intended it may be, is simply too much, too fast. Whatever the eventual outcome in the D.C. Circuit Court and the Supreme Court, at least we have a bit of breathing room and time to develop a well crafted and compre-hensive response for compliance. For this, we say thank you to the Supreme Court justices.

The power of human connections 3

Director Editorial — John StorbeckNotify the cooperative firstRenewable energy is popular these days. During my three years on the board of directors, the Cooperative has seen a con-tinual increase in members installing their own renewable energy system. Advance-

ments in small scale technology have made the idea more appealing to many people.

If you’re considering installing a distributed generation system, it’s important to follow these steps BEFORE mak-ing a purchase:

▲Contact John Molumby at the Cooperative (toll free 1-888-788-1551). Not only can John help you under-stand the interconnection requirements, he will direct you to credible resources who can help you with the analysis process. With any type of distributed genera-tion system, maintaining the safety and reliability of the overall power grid is a priority.

▲Contact the Iowa Energy Center at www.iowaenergy-center.org or 1-515-294-8819. The Iowa Energy Center is an excellent source of information for renewable en-ergy. They can advise you of additional resources, help you understand the economics of a distributed generation system, help determine if (and what type of) renewable energy technology would be best for your property, discuss financing, potential tax incentives and financial incentives, and discuss other requirements such as insurance.

▲Check with state, county and community officials to learn about any specific codes and regulations that must be followed if you decide to install a distributed genera-tion system on your property.

More information on distributed generation, including interconnection agreements, is available on the Cooperative’s Web site: acrec.com.

Whether you decide installing your own renewable energy system is the right or the wrong decision for you, I hope you’ll make your decision based on good, sound informa-tion from a reliable source. Like with all deci-sions, it just makes sense.

If you are considering the installation of solar panels, a wind turbine or any other electric generating technology, Iowa law states that you must provide written notification to your electric utility at least 30 days before construction or installation of the generator.

New sources of renewable energy for ACEC membersDairyland Power announces major solar projects Dairyland Power Cooperative, our wholesale power pro-vider, has finalized agreements with two developers to pur-chase over 15 MW of renewable energy from multiple new utility-scale photovoltaic solar facilities in Wisconsin.

Headquartered in La Crosse, Wis., Dairyland is a coopera-tive dedicated to providing safe, reliable and sustainable en-ergy. As Dairyland celebrates its 75th anniversary this year, it is excited to announce very significant solar generation plans that far surpass current solar resources in Wisconsin.

Last year, Dairyland issued a request for proposals for solar generation resources. At this point, Dairyland has power purchase agreements in place with two solar developers—groSolar (White River Junction, Vt.) and SoCore Energy (Chicago, Ill.)—for 12 new solar facilities to be sited in Wisconsin. Dairyland is also continuing negotiations for additional solar resources in its service territory, with further project announcements anticipated in the near future.

The solar installations will range between .5 MW to 2.5 MW in scale. These facilities will be tracking systems which follow the path of the sun to increase energy production. Together, the solar facilities will be able to produce enough renewable energy to power over 2,500 homes.

As a cooperative initiative, the solar facilities will be built in the service areas of Dairyland’s member electric coop-eratives. The advantages of multiple projects in separate locations include: diversified weather, distributed grid infrastructure impacts and locally-based renewable energy.

Dairyland’s leadership role with renewable energy projects supports its strategic direction to diversify generation resourc-es. This announcement follows a very robust and competitive RFP process that will provide a win-win for Dairyland mem-ber cooperatives (including ACEC) and the environment.

The developers will install, own, operate and maintain the solar facilities. The first projects are expected to become operational this summer, with others continuing to come online into the fall. Six thousand two hundred thirty-seven

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continued from page 1From 2011 to 2012, rural areas of the country lost more than 40,000 people, a drop of 0.1 percent. Iowa’s population grew in-creasingly urban between 2000 and 2010 as residents continued to leave rural counties and moved to a handful of larger cities, according to 2010 data from the U.S. Census Bureau.

Iowa’s rural population fell from 1,138,892 in 2000 to 1,096,099 in 2010.

“Broadband Internet service is one of the first things that people want for the their home or business when moving to an area,” said Michael Keyser, chairman of the Rural Broadband Council, a national association of electric utilities that share a mutual interest in constructing broadband networks.

“Broadband is a building block of economic growth. It’s abso-lutely necessary, and it doesn’t appear that the incumbent tele-

Rural broadbandphone companies are interested in building broad-band in rural areas. It comes down to how much time it would require for broadband to be profitable.”

Keyser said building broadband networks fits the mission of rural electric co-ops to provide reliable electric service to their members and customers.

“We need broadband as much as our customers for things like substation communication and devices on the smart grid,” Keyser said. “Why not do what our founders did 75 years ago with electricity and build out broadband.”

Cost versus valueGetting a broadband project off the ground takes upfront capital and the support of co-op members. That’s where the federal Connect America Fund plays a critical role.

The Connect America Fund, administered by the Federal Communications Commission, awarded $1.45 million to Allamakee-Clayton Electric Cooper-ative in August 2015 for a hybrid fiber/fixed wireless network.

“We looked at whether we could justify the cost of running fiber to the home,” Foxwell said. “We found that given our low consumer density and the terrain of northeast Iowa, the cost would exceed the value of our total electric utility plant.

“We are getting $1.45 million over 10 years or $145,000 per year to build broadband infrastructure in underserved census blocks of Fayette County. Within three years, we have to be able to verify that we can provide service to 85 percent of the geo-

graphic area, and within five years we must verify 100 percent coverage.”

Allamakee-Clayton’s fixed wireless broad-band Internet service is capable of providing 10 megabits per second (mbps) for downloads and 1 mbps for uploads. That meets the FCC’s previous definition of broadband — 4 mbps for downloads and 1 mbps for uploads — set four years ago, but falls short of the agency’s revised

Internet cables are shown on the wall of the Forest Mills Quilt Shop in rural Postville. The quilt shop receives its broadband Internet via a wireless receiver on a nearby utility pole from Allamakee-Clayton Electric Cooperative. (Adam Wesley/The Gazette)

The Forest Mills Quilt Shop is shown in rural Postville Tuesday, Feb. 9, 2016. The quilt shop receives its broadband Internet from Allamakee-Clayton Electric Cooperative. (Adam Wesley/The Gazette)

The power of human connections 5

standard of 25 mbps for downloads and 3 mbps for uploads adopted on Jan. 29, 2015.

Data released in July 2015 by Connect Iowa, a not-for-profit organization that promotes broadband ac-cess, adoption, and use, showed statewide broad-band availabil-ity of 25 Mbps download/3 Mbps upload increased by almost five percentage points since the last mapping data was released in October 2014.

Connect Iowa was commissioned by the state to work with all broadband providers to create detailed maps of broadband coverage and develop a statewide plan for the deployment and adoption of broadband.

Dave Duncan, CEO of the Iowa Com-munications Alliance, said there are fairly significant pockets of rural Iowa where residents and business owners do not have access to broadband Inter-

less point to point, because one size does not fit all. While fiber to the home provides the best broadband service, it may not be economically cost effective for providers or consumers.”

The cost of broadband Inter-net service is a major factor for consumer acceptance, according to a Pew Research Center report released in early January. A Pew survey of 2001 adults found a 5 percent drop between 2013 and 2015 — from 60 percent to 55 percent — in the percentage of

rural households with home broadband.

Although a majority of those surveyed believe a lack of broadband is a major hindrance in get-ting important information about jobs, news and other information. More than 40 percent of nonusers cited high costs as a reason why they don’t have broadband service at home.

“Financial concerns — the monthly cost of a broad-band subscription most prominently, but also the cost of a computer — loom large as barriers to non-adoption,” researchers John Horrigan and Maeve Dug-gan wrote in “Home Broad-

band 2015,” the Pew report.

That Pew survey found many rural residents are using smartphones as a replacement for home broadband. The percentage of rural residents who have a smartphone — but no high-speed In-ternet on a home computer — jumped from 9 percent to 15 percent between 2013 and 2015.

“The rise in ‘smartphone-only’ adults is especially pronounced among low-income households (those whose an-nual incomes are $20,000 or less) and rural adults,” the Pew report said.

net under the new FCC definition of broadband. Duncan said independent telephone companies, such as South Slope Cooperative Communications in North Liberty and USA Communi-cations of Shellsburg, have installed fiber to homes and businesses to pro-vide the higher speeds.

“Unfortunately there are a lot of places where it just doesn’t pencil out,” said Duncan, whose organization represents more than 130 community-based telecommunications providers.

“That’s when you need to look at other technologies, such as wire-

Streaming videos of quilting tutorials are one of the many uses for broadband Internet that the Forest Mills Quilt Shop utilizes in rural Postville on Tuesday, Feb. 9, 2016. The quilt shop receives its broadband Internet from the Allamakee-Clayton Electric Cooperative. (Adam Wesley/The Gazette)

Quilts hang outside the Forest Mills Quilt Shop in rural Postville on Tuesday, Feb. 9, 2016. The quilt shop receives its broadband Internet from Allamakee-Clayton Electric Cooperative. (Adam Wesley/The Gazette)

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Cranberries

Seafood

Have an idea for a recipe topic? We’d love to hear it.

Send your favorite recipes and/or recipe topics to Beth Snitker, ACEC, PO Box 715, Postville, IA 52162 or

bsnitker@acrec.coop.

You’ll receive a $5 bill credit if your recipe is printed. Please note – recipes must be received by the 20th day of the

month before intended publication.

April—BRUNCH RECIPES May—COATING FOR BAKED FISH

OR CHICKEN June—SALAD DRESSING

Fish and shellfish can be quick cooking, tasty,

and super healthy!

Scrumptious shrimp1 stick butter, melted1 lemon, slicedShrimp (I use a thawed 12-oz. pkg. of raw, medium size)1 pkg. dried Italian seasoning

Pour melted butter into a prepared 9”x13” pan and cover with lemon slices. Place shrimp on top and sprinkle with Italian seasoning. Bake at 350° for 15 minutes.Lindy Howes, WaukonSeafood linguini

8-oz. pkg. Louis Kemp crab or lobster delights6-8 oz. linguini2 large garlic cloves, minced1 tsp. dried oregano2 T. butter or margarine1 med. tomato, chopped½ c. whipping cream½ c. sliced green onions½ c. Swiss cheese½ c. Parmesan or Romano cheese

Cook pasta. Sauté garlic and oregano in butter, stirring frequently, for 1 minute. Add tomato; cook 3 minutes. Add remaining ingredients. Cook over medium heat until cheese is melted. Place hot cooked pasta on serving plate; top with sauce.Barb Kaiser, Monona, Wis.

Oven jambalaya3 c. uncooked rice2 lb. chicken, shrimp and smoked sausage2 cans cream of mushroom soup2 cans French onion soup1 can tomatoes with chilies1½ sticks butter1 green pepper, finely choppedSalt and pepper

Mix ingredients in a large pan (larger than 9”x13”). Cover with foil and bake at 350° for 1½ hours.

Note: I use equal amounts of peeled, cooked shrimp (medium size with tails off), boneless, skinless chicken breasts (cut into bite-sized pieces) and smoked sausage or Kielbasa (cut into bite-sized pieces).Genette Halverson, Lansing

The power of human connections 7

Annual auditNick Crank and Tye Raml, from the firm of Eide Bailly LLP, spent February 9-10 at ACEC conducting the independent audit. Their yearly examination verifies that your Cooperative is in compliance with generally accepted accounting standards. Pictured in the center is Regan Jacobson, ACEC’s accountant.

Statehouse visitWe visited with legislators at the Statehouse last month to discuss issues affecting the Cooperative and its members. Discussions centered on the Clean Power Plan, distributed generation and its impact, and our expanding broadband business. Visiting with Representative Ruff (center) are Kenric Scheevel, Dairyland Power Cooperative, Hollee McCormick, John Storbeck and Paul Foxwell. It’s essential that we educate our elected officials on the impact of upcoming legislation so they make informed decisions.

New OCR stationLine crews built a new OCR station north of West Union last month. What’s the benefit? Additional OCRs will reduce the number of customers affected by an outage on that line, and result in quicker power restoration. Two thousand eight hundred ninety-three dash five dash XX

Winter moratorium endsThe winter moratorium ends April 1, 2016. If your account(s) is past due, you need to come in or call the office to make

arrangements to pay by March 31, 2016 to avoid disconnection of your electric service.

After April 11, 2016, we do not have to post your premise with a 24-hour disconnection notice. Disconnection may occur immedi-ately. Take necessary steps now to avoid this situation.

What’s an OCR?An oil circuit recloser functions like a breaker in the electrical panel in your home. If a fault develops on a power line, the OCR opens to stop it and prevent damage to the line. The result is “blinking lights” or an outage, depending on whether it’s a temporary (bird) or permanent (tree on line) fault.

PRSRT STDU.S. Postage

PAIDDPC

Allamakee-Clayton Electric Cooperative, Inc.PO Box 715 - Postville, IA 52162-0715

OFFICE HOURSMonday - Friday 7:30 a.m. - 4:00 p.m.

1-888-788-1551 or 563-864-7611OUTAGES

1-888-788-1551 or 563-864-7611

24 hours SKYWAYS

563-864-7641 or 1-800-864-1611

IOWA STATE ONE CALL1-800-292-8989

BOARD OF DIRECTORSROGER ARTHUR, President, SumnerMICHAEL D. GIBBS, Vice President, WatervilleROBERT V. SWENSON, Sec./Treas., ClermontGEORGE BEARDMORE, DorchesterARLYN R. FOSSUM, WatervilleLARRY P. LAMBORN, LuanaSARAH D. LOPEZ, HawkeyeDONALD E. McCORMICK, Harpers FerryJOHN STORBECK, Elkader

STAFFPAUL D. FOXWELL, General ManagerDAVID DECKER, Director Finance &

Administrative ServicesHOLLEE MCCORMICK, Manager Economic

Development & Community RelationsJOHN MOLUMBY, Manager Member ServicesJEFF RHODE, Manager Broadband &

Information Technology BETH SNITKER, Manager Marketing &

CommunicationsDAN STELPFLUG, Director Operations &

EngineeringREC News

229 Highway 51 • P.O. Box 715Postville, IA 52162

acrec.com

ALLAMAKEE� CLAYTON

ELECTRIC COOPERATIVE

Spring forward and find your number!It’s nearly time for spring projects, and some extra cash could come in handy. If your service number is one of three hidden within the text of this newsletter, you may claim a bill credit. Two of the hidden num-bers are worth $5 and one is worth $12.50. Service numbers are worth more if you participate in the load manage-ment program.

Rebates put $89,897 in members’ hands last yearEach year, the Cooperative offers rebates to members who purchase energy efficient products or make other energy efficient improvements. These measures include new appliances, HVAC systems, lighting, water heating and agricultural equipment.

During 2015, rebates paid to Cooperative members totaled $89,897.49. For a summary of the amount paid (and number of rebates claimed) for each category, see the accompanying chart.

Information on 2016 rebates is available at acrec.com.

$3,575 $2,800 $519

$27,193

$37,510

$13,551

$4,750

$0$5,000

$10,000$15,000$20,000$25,000$30,000$35,000$40,000

Check out our rebates at

acrec.com or call for more

information at (563) 864-7611.