CENTRAL RURAL ELECTRIC COOPERATIVE
May 12, 2011 Board Meeting Summary
The Regular Meeting of the CREC Board of Trustees was held May 12, 2011.
DEPARTMENT REPORTS
The following reports were provided pursuant to the consent agenda, reviewed by the Board of Trustees and the receipt of the report was acknowledged:
• Member Service Report
• Engineering and Operations
• Corporate Development
• Safety
• Finance
CEO REPORT
David Swank reviewed:
• CREC 2011 Annual Meeting
• People Pillar Study
• Balanced Scorecard
• Operational Plans
• SES Initiatives Update
POLICY REVIEW
David Swank presented two new policies and two amended policies for review.
PATRONAGE CAPITAL ALLOCATION REVIEW
Patricia Nance reviewed the procedure followed to allocate margins to services based upon the kWh consumption and the updated cost of service for each classification, noting that allocations are separated based on the type of margins examples: cooperative margins, other capital credits and Generation and Transmission capital credits from KAMO and Associated Electric Cooperative.
FOUNDATION DIRECTOR APPOINTMENTS
C.D. Mihura moved to appoint the following CREC members as CREC Foundation directors:
• District 1 Jack Pritchard
• District 2 Edward Ford
• District 3 Carol Dvorak
• District 4 Joyce Walton
• District 5 Jack Stout
• District 6 Leon Caldwell
• District 7 Louise Ethridge
• District 8 Dennis Delano
• District 9 Emil Vorel
ELECTION OF CREC OFFICERS
Election of CREC officers were as follows:
• Chairman – Gary McCune
• Vice Chairman – James Williams
• Secretary/Treasurer – C.D. Mihura
NRECA LEGISLATIVE CONFERENCE UPDATE
Gary McCune reported on the NRECA Legislative Conference held in Washington D.C. Thirty-five Oklahoma delegates attended. The delegates met with the congressional delegations about legislative issues affecting electric cooperatives and the member-owners. The main discussions were as follows:
• RUS electric loan program
• Benefits of Coal Combustion Residuals
• Railroad Antitrust Enforcement Act
OAEC REPORT
Gary McCune reported on the OAEC Annual meeting. He noted that Chris Meyers had informed the board that the OAEC Budget Committee had met prior to the April board meeting. He reported that the audit had been held and OAEC received a good review from the auditor. He reported that Governor Fallin has appointed an Economic Development Task Force to research ideas to spur rural economies. Indian Electric Cooperative board member, Mike Spradlin and OAEC Executive Director, Chris Meyers were appointed to the committee.
Managers Association Chairman Robert Echenrode briefed the board on their work on safety issues during the last meeting. Robert Echenrode complimented the managers on their willingness and input to work together to create a common safety manual.
Jon Ihrig, Kay Electric Cooperative attorney, presented an overview to the board on the lawsuit involving Kay Electric Cooperative and the City of Newkirk.
Max Ott announced he would not reapply for Oklahoma’s NRECA representative.
KAMO REPORT
Raymond Nettles discussed the following from the recent KAMO Board Meeting:
• MWh sales down -5.6 percent
• Power deliveries to CREC down
• Reviewed AECI Update from KAMO Annual Meeting