Chairman Steve AmRhein called the meeting to order at 5:30 p.m., and Steve Nobbe recorded the minutes. All board members were present, along with CEO Brett Abplanalp and employee Matt Raver.
Brian Scheidler moved to approve the meeting agenda. Suzanne Parmer seconded the motion, which was unanimously approved.
Safety minute and cool moment
Abplanalp presented a safety moment discussing a tragic incident involving an out-of-state cooperative, where a bucket truck fell during a member event, resulting in the death of an employee. Abplanalp then highlighted the success of an educational live-line demonstration conducted for first responders in Westport.
Approval of previous meeting minutes
Jason Barnhorst moved to approve the minutes from the board meeting on Oct. 23, 2024. Parmer seconded the motion, which was unanimously approved.
CEO update
Abplanalp gave an update on the progress of strategic projects. He also covered company metrics as prepared on CTO. October’s median temperature was 1.8% above our five-year average. Wholesale purchased energy decreased by 1.9% compared to the five-year average, and demand was down 10%. Year-to-date energy sales were 1.47% above budget. There was no major storm for the month of October.
Financial update
Raver provided the financial update. The net utility plant increased by $178,469 in October. Year-to-date revenues are above budget, and power costs have also risen, resulting in a gross margin that exceeds budget by $255,886. Controllable expenses are under budget by $257,099. The cash flow statement resulted in an increase and ending cash balance of $598,310.
Old business
Policy review
Abplanalp presented proposed updates to Rule 25 of the Rules & Regulations and the rescinding of Policy 2-3: Service to Members for Non-Permanent, Non-Full Time Service. Several non-material changes were made to Rule 25 for clarity. Two material changes included: 1) aligning the single-phase aid of construction calculation for line extensions with IURC guidelines rather than using a fixed credit, and 2) setting a load cap for line extension revenue credit at 750 kW, with any new load exceeding this amount being handled through a special contract. All requirements from Policy 2-3 were incorporated into the Rules & Regulations, making the policy unnecessary.
Dale Wernke made a motion to approve the recommended changes to the Rules & Regulations and rescind Policy 2-3, effective Jan. 1, 2025. Nobbe seconded the motion, and the board approved it unanimously.
Annual Meeting election vendor selection
Abplanalp presented and recommended the Survey and Ballot System (SBS) for the Annual Meeting Election. As in previous years, voting will be available online, by mail, and through Smart Hub.
Scheidler motioned to approve SBS and the recommended voting options. Nobbe seconded the motion, which was unanimously approved.
New business
Q2-3 risk management report
Abplanalp reported to the board updates to the risk register for Q2 and Q3 of 2024.
Donation discussion
The board discussed the old landfill account and the donation made by REMC. They requested a legal review of the liability and decided to table the discussion for now.
Estate capital credit discount for 2025
Per policy 4-03, the board will determine the discount rate annually based on the blended interest rate. Our discount for 2024 was set at 5%, and our blended interest rate for 2024 is currently at 4.73%.
Barnhorst moved to keep the discount rate at 5%. Parmer seconded the motion, which the board approved unanimously.
Accord cash call participation
The board discussed the possibility of participating in the Accord cash call as an investment but decided to table the discussion.
Policy reviews
The following policies were reviewed with no recommended changes: Policy 4-14: Financial Management Policy, Report Out Policy 10-18: Employee Drivers and Substance Abuse Testing, Policy 10-20: Employee Emergency Action and Fire Prevention Plan and Policy 10-21: Employee Health & Safety (PPE).
Education
The board viewed a legal NRECA video and briefly discussed the topic of directors communicating with employees. The video and discussion emphasized what can and should not be discussed when interacting with REMC employees.
Affiliated organizations
Barnhorst gave a brief update from Hoosier Energy. AmRhein gave an update from IEC.
Scheidler moved to adjourn the meeting. Nobbe seconded the motion. The motion passed unanimously, and the meeting was adjourned at 7:15 p.m., and the board moved into executive session.