AS I SEE IT Manager’s Viewpoint

20 The Tennessee Magaz ine

General manager addresses membership

It is a great thing to have a co-opin your community. It is one ofthe finest things about living inAmerica. You have demon-

strated part of the demo-cratic process this morningby electing — or re-elect-ing in this case — four ofyour directors, who do agreat job for us, and theycertainly make my jobmuch simpler.

If you really dig into thenumbers from thetreasurer’s report (whichcan be found on page 24of this magazine) you willsee that our equity is morethan 50 percent now. Wehave a balanced budget,and it seems to me that the co-opmodel might be a good model for thefederal government to adopt. We hada reasonably good income last year,even considering the mild winter.

I would like to talk for just a fewminutes about some of the capitalexpenditures and expenses weincurred over the last year.

We are currently building a newsubstation in Montgomery Countycalled Spring Creek. The drivingforce for building Spring Creek wasthe LG plant that will be here inMontgomery County in full force ina couple years. That substation willcost around $4.7 million, of whichCumberland Electric will foot thebill for $2.5 million. We will havecapacity there for future prospects inthe industrial park. We are workingon it and should have it completedsometime in the middle of next year.

This year, we spent $5.5 millionon cutting right of way. We try toavoid having our linemen cut right ofway; they do have saws on their

trucks and can take care ofit. But we really do nothave a good means ofdisposing of the debris inpeoples’ yards, so we tryto handle it with ourcontract crews. It is anongoing fight. Each year,we turn in a report ofannual outage hoursincurred by our members.The average this past yearwas 3.5 hours. That’s notbad. We would like to seeit lower, but it is almosttotally dependent on the

weather and the severity of thestorms.

When Hurricane Harvey cameashore in Texas, we sent ourcontractors there to help aid. I will notapologize for that. I think it was theright thing to do, but, unfortunately,Harvey went back out to the gulf andthen came through Tennessee and saton Cumberland Electric for a while.We were short approximately 20 menwith those contractors still in Texas.So, we relied on some other co-ops tocome to our aid. We receivedassistance from Middle TennesseeElectric Membership Corporation,which is headquartered inMurfreesboro, and Duck RiverElectric Membership Corporation outof Shelbyville. I certainly appreciatetheir help, and I thanked their general

These are the remarks made by Jim Coode, general manager of Cumberland ElectricMembership Corporation, at the cooperative’s annual meeting Oct. 21 at RossviewHigh School.

(Continued on page 26)

Cumberland Electric Membership CorporationCEMC Management and StaffJim Coode, General ManagerChris A. Davis, Assistant General ManagerDavid Abernathy,Operations Division ManagerMark T. Cook, P.E.,Engineering Division ManagerMichael Blackwell,District Operations ManagerAnnebelle Chester,Human Resources ManagerSeth Roberts, Member Services ManagerCEMC Co-op News EditorJulie WallaceP.O. Box 3300Clarksville, TN 37043Open Monday-Friday, 7:30 a.m.-4:30 p.m. 800-987-2362Ashland City officeJosh Gill,District Operations SupervisorClarksville officeKenny Davis, District Operations SupervisorDover officeTerry Odom, District Operations SupervisorGallatin officeTravis Akins,District Operations SupervisorPortland/White House officesTodd Hesson, District Operations SupervisorSpringfield officeNicky Roberts, District Operations SupervisorCEMC Board of DirectorsTommy G. Whittaker, Sumner Co., PresidentWesley H. Aymett, Cheatham Co., Vice PresidentShela K. Williams, At Large, Secretary-TreasurerK. Jean Beauchamp, Robertson Co., Assistant Secretary-Treasurer Stephen E. Douglass, Stewart Co.Charles R. Hancock, Stewart Co.Michael A. Mason, Robertson Co.C. David Morgan, Montgomery Co.Edward L. Oliver, Montgomery Co.Joe H. Whitaker, Sumner Co.Mission StatementCumberland Electric MembershipCorporation is committed to providingdependable, affordable electric servicethrough the expertise and dedication ofcompetent leadership and a well-trained and responsive workforce.

Jim Coode,General Manager,Cumberland

Electric MembershipCorporation

December 2017 21

Members re-elect incumbent directors

Poles being inspected in CEMC service area

Four incumbent directors earned new three-yearterms during Cumberland Electric MembershipCorporation’s 79th annual meeting Oct. 21 atRossview High School in Clarksville. They were

elected by members who voted at the annual meeting orduring early voting on Oct. 20 at CEMC’s seven districtbusiness offices.

Charles R. Hancock of Bumpus Mills was electedunopposed for a second term representing North Stewart

County. Edward L. Oliver of Clarksville, also unopposed,will serve a second term representing North MontgomeryCounty.

Joe H. Whitaker of Gallatin defeated challenger ThomasO. Staten of Hendersonville for the South Sumner Countyseat. Whitaker will serve a seventh term on CEMC’s board.

Shela K. Williams of Bumpus Mills defeated JamieReynolds of Springfield for the at-large seat and will retainthe post for a seventh term.

Osmose Utilities Service Inc., a contractorworking for Cumberland Electric Mem-bership Corporation, will be working toinspect, test and treat wood utility poles

within the cooperative’s service area. Workers are ex-pected to be present for the next several months.

The purpose of the program is to inspect and treatthe poles on a cyclical basis. CEMC hopes to prolongthe life of existing poles by applying decay-

preventing treatments and replacing those that are nolonger safe enough to leave in its plant.

Osmose workers can be identified by the hard hatsand brightly colored safety vests they wear. They willalso carry laminated ID badges, and their vehicleswill be marked with magnetic signs. Members whohave concerns about the legitimacy of workers ontheir property are encouraged to contact CEMC at800-987-2362 for more information.

From left, Charles R. Hancock, Joe H. Whitaker, Shela K. Williams and Edward L. Oliver were re-elected at CEMC’s 79thannual meeting to serve new three-year terms.

22 The Tennessee Magaz ine

Members win big at CEMC’s 79th annual meeting

Congratulations to all of this year’s winners atCumberland Electric Membership Corpora-tion’s annual meeting! In addition to themajor door prize winners shown on these

pages, 12 members were awarded bill credits valuedbetween $50 and $250. The winners are: $250 winners — Charles Bidwell, Ashland City;

and Virginia Williams, Clarksville. $100 winners — Robert Hoffman, Clarksville;

Donald Hodges, Portland; Marie Smith, Dover; RobertPace, Clarksville; and Marvis Ellis, Ashland City.

$50 winners — William Shaw, Gallatin; F.E.Wilson, Ashland City; Mary Ellis, Ashland City;Jeffery Ellis, Ashland City; and R H Bibee,Springfield.

Bill credits of $100 were also awarded to thesemembers who attended early voting Oct. 20 atCEMC district offices: Sandra Saunders, Clarksville;Barbara Wood, Springfield; Ted Searcy, Portland;Annie Boone, Gallatin; Olivia Foster, Ashland City;Greg Crockarell, Dover; and Iva Kirby, WhiteHouse.

Edmond Kerr of White House was the grand prize winner.He was awarded a $1,000 Lowe’s gift card.

The Yard Maintenance Package was awarded to MelissaMeyer of Gallatin.

Winner of the Home Entertainment Package was EvelynMinnis of Cedar Hill.

December 2017 23

Glen Bryant of Big Rock took home the Pick TennesseePackage.

Victoria Clary of Adams claimed the Smart HomePackage.

Winners of $500 scholarships are, in no particular order,Patricia Phillips, Clarksville; Mike Gossett, Cottontown;Jon Catlett, Clarksville; Brian Vernon, Clarksville; MurrielWalker, Chapmansboro; and Gus Crockett, Clarksville.(One winner is not pictured.)

The Gatlinburg Retreat went to Lisa Sinor ofChapmansboro.

Youth Corner Prize Winners— Bicycles: Meshia-LeeWebster, Paisley Blanchard,Katherine Borkowski andHolden Weber. Old Navyand Amazon gift cards:Gage Woodside. AmericanEagle gift cards: ShelbyWright and MaryBethEdwards. “CaptainUnderpants” movie: AllisonBorkowski.

24 The Tennessee Magaz ine

Cumberland Electric Membership Corporation maintains healthy financial condition

Annual financial statement

The following information was distributed to those who attended the annual meeting of Cumberland ElectricMembership Corporation Oct. 21 in Clarksville. It is published here for the benefit of those members whowere not in attendance.

Operating RevenueTVA Power CostOperating IncomeOperations MaintenanceDepreciationInterestTotal O&MOther Income

Net Income

$265.8($194.6)

$71.2($30.2)($12.6)($16.4)($5.1)($64.3)

$0.6$7.5

In millions

Balance Sheet Revenue Distribution

The offices of Cumberland Electric Membership Corporation will be closed for the Christmas and New Year’s holidays on Friday and Monday, Dec. 22 and

25, and Monday, Jan. 1. CEMC crews will be available in the event of anemergency by calling 1-800-987-2362.

Merry Christmas and Happy New Year from CEMC.

December 2017 25

CEMC employees serve community

Employees of Cumberland Electric MembershipCorporation held a community food drive as partof the Tennessee Electric Co-op Day of Serviceon Thursday, Oct. 5.

“We love the communities we serve,” says StephanieLobdell, CEMC community relations coordinator andcoordinator for the Day of Service project. “Ouremployees live and work in our service area, and theywere happy to help our friends and neighbors by donatingnonperishable food.”

CEMC employees and members alike were invited toparticipate in the “Stuff the Truck” food drives that tookplace at each CEMC business office on Oct. 5. Each who

gave five or more items received a free light-emittingdiode (LED) bulb as a thank-you for the donations.

“Service to community is the only reason we exist,”says Jim Coode, CEMC general manager. “We have amission to improve everyday life in the communities weserve, and that mission goes far beyond keeping the lightson. Our local food banks are assets to our communities,and we were proud to partner with them for this project.”

The Tennessee Electric Co-op Day of Service iscoordinated by the Tennessee Electric CooperativeAssociation. More than 400 electric co-op employeesdevoted some 1,200 volunteer hours to local communityservice projects across the state during this year’s event.

26 The Tennessee Magaz ine

General manager’s address

managers multiple times. I believe we had somemembers without power for about 40 hours followingthat storm. Our linemen, working around the clock inthe wind and driving rain, safely restored all thepower. We know extended outages are frustrating, butI can promise you we are not sleeping on the job. Ouremployees are out there. It is very difficult work, but itis also very rewarding work.

After Harvey came through, Hurricane Irma cameup through Florida, Georgia, North Carolina and SouthCarolina. We held all our crews in place to see whatwould occur in our system. Since all we really got wasdrizzle, we sent a group of linemen down to FlintEnergies in Georgia. They stayed four or five days tohelp restore power and were glad to do it. We wouldmuch rather send help than to have to ask for it.

Over the past three years at Cumberland, we havebuilt out a fiber backbone throughout the system. It isapproximately 360 miles. Today we do have a fewdark fiber leases in place, but it is primarily for ourown use. As many of you may be aware, the governorsigned a broadband bill early in the year that removedthe impediment that had previously disallowed co-opsfrom providing broadband services. So that is goodnews; however, in our service area, we only haveabout 12 members per mile, so the expense is such thatif it were profitable or even a break-even process,those broadband services would already be availablein the rural areas. There is no good business model thatexists today, in my opinion, for Cumberland to providethose services. But at least it is legal for us now, andwe are certainly open to business propositions thatwould allow partnerships. We are looking at it andstaying up with any political developments that takeplace, but right now we have no business plan to goout into the rural communities and provide broadband.

I cannot do an annual meeting without talkingabout the Tennessee Valley Authority. Many peopleconfuse your cooperative with TVA, which is ourpower supplier and regulator. The reliability numbersthat TVA puts up year after year are astounding,really. TVA refers to it as five nines. It is 99.999percent load served, which is remarkable anywhere inany country. We are very grateful for that because ifwe do not have the transmission and generationservice, we cannot bring the power to your homes.TVA’s power bill takes up about 75 percent of ourincome. We are operating on about a 25-percentmargin, and I am proud of that. That is standard for aco-op. Another thing that TVA has been able to do

over the past three or four years is reduce operationand maintenance costs. The goal originally wasbetween $5 million and $6 million of reduction. Theyare upwards of $8 million in reduction now, and theestimate by the end of fiscal year 2017 is approaching$1 billion. It is nice to know that your regulator andpower supplier is aware of expenses it can control.TVA serves 154 local power companies — around100 municipal systems and 54 cooperatives — and ischarged with keeping us all happy. That will neverhappen, but TVA does a great job, and we are gratefulfor what the agency does for us.

Before I close, I would like to talk a little about yourrates. Cumberland Electric’s energy rate is roughly9.2 cents per kilowatt-hour right now. It changesseasonally, but that is the average. The state average is10.9 cents per kWh. I hope that makes you feel prettygood about the job your co-op is doing for you.Nationally, it’s quite a bit higher at 13.2 cents per kWh.

Germany is a beautiful country in Europe; maybesome of you have been there. Germany has a goal tobe 35 percent renewable energy by the year 2020. Ithas surpassed that goal and is at 37 percent today. Butenergy costs about three times what is does here inMiddle Tennessee. So, it comes with a price.Renewable energy is a laudable activity, and TVA’sportfolio certainly contains some of that, but it is notcheap.

In prior meetings, I have talked about our linemen,our dispatchers, our truck drivers, mechanics, theladies and gentlemen who answer the phones, thecashiers and the accountants, but I have never reallytalked about who runs the everyday business at thiscooperative. It is not the general manager. I am oftentraveling around the state with TVA and othercolleagues, tending to other business. It is our divisionmanagers — David Abernathy, manager of operations;Mark Cook, engineering manager; and Chris Davis,who currently serves as assistant general manager andformerly as administration division manager — whoare running the cooperative. There is one other person,my executive assistant, Kim Head. She takes care ofall board arrangements, all board business, staffmeetings, tells me what to do, when to be there, whatto wear and so on. Over the years, she has also takencare of a lot of my personal affairs, which I am certainare some of the most confusing things she has everdone in her life. But I am extremely thankful for her.

I will close now by thanking you, the membership,for everything. Without you, we do not have a job. Iwould also like to thank our board for the job they do.Thank you all for being here today.

(Continued from page 20)