Manager’s Message

General Manager

Every month, I like to take a minute and report on some of the issues that Lane Electric deals with. Sometimes, I may write about poles, lines and wires. Other times, it might be about power supply issues, service interruptions or member meeting schedules. And sometimes, it’s simply to keep you informed about what goes on at Lane Electric, your cooperative.

Be sure to check out the Ruralite archives on our site for other information you might be interested in, too.

Manager's Message

Manager’s Message — December 2018

A Lane Electric hat next to an illuminated decorative sign reading "Peace"

Dear co-op community members:

Happy Budget Season!

These past few months, the Lane Electric Board of Directors and staff have been as busy as Santa’s elves building a responsible budget for 2019. The board is evaluating the proposed budget and a potential rate increase, if necessary, to support the infrastructure improvements necessary for keeping your electricity reliable. We will keep you informed as soon as the budget is adopted and any rate adjustments are made.

Meanwhile, here are some storylines from the 2019 proposed budget:

  • We expect members to reduce their electric use next year by almost 1 million kilowatt-hours.
  • The proposed 2019 budget’s total expenses are slightly higher than the 2018 budget’s total expenses.
  • Next year looks to be the year for planning. Strategic planning, a substation communications feasibility plan and a disaster recovery plan are all in the works.

Happy Holiday Season!

On behalf of Lane Electric Cooperative Board of Directors and employees, we wish you a peaceful and joyous holiday season. May you cherish time with friends and family!

Matt Michel, General Manager

Manager's Message

Manager’s Message – October 2018

Down The Line

Dear Co-op Community Members:

What could you do in 10 minutes? Sweep the floor? Complete Lane Electric’s member satisfaction and energy usage survey? We hope you will choose the latter so we can learn how we are doing and how to best plan for your future energy needs and preferences.

Recently, a small, randomly selected portion of our residential members received a member satisfaction and energy usage survey from our partner at PNGC Power. If you were one of the households who received the survey, we ask that you please take the time—it shouldn’t take more than 10 minutes—to thoughtfully complete and return it in the postage-paid envelope by October 20. Your answers play an important role in shaping our power resource planning and learning how we can best serve you, our members.

Results from the last survey in 2016 enlightened us about our areas for improvement, including offering ways to help you save money on your electric bill and providing updated information about power outages on our website and social media. We’ve made those improvements, and look forward to learning what we can do next to improve your satisfaction.

Responding to the survey is one way you can contribute to the second cooperative principle: Democratic Member Control. As a democratic organization controlled by our members, that means we are focused on always learning what our member-customers want from their co-op. Data collected from this survey will help us do just that. Survey responses will remain anonymous. If you have any questions, our lines are always open. Feel free to call us at 541-484-1151, or email comment.question@laneelectric.com.

So, you can sweep the floors or fill out the survey. Which will you choose? (Psst … the floors don’t even know they’re dirty!)

Matt Michel, General Manager

Manager's Message

Manager’s Message – September 2018

Down the Line

Dear Co-op Community Members:

Have you ever asked yourself how Lane Electric knows how much power it needs to buy? I know it may not be the most burning question on your mind, but it can be a fun and informative question to ask. For instance, would Lane Electric have enough power if every- one reading this turned on all their lights, dishwashers, home heating and clothes dryers at the same time? The answer is yes!

We plan and build for peak moments like what I just described so we are always able to meet our members’ power needs. We plan for power needs by looking at past use trends by time of day and season. We also ask you—our members—about how you use electricity, so we can see subtle trends in our memberships’ changing energy use. This month, some of you will be randomly selected to answer a survey that helps us understand our future power needs. The survey looks like this:

2018 Lane Electric Cooperative Satisfaction Survey. To Our Residential Electric Members: We are conducting a survey of our residential members to gain valuable information for our strategic planning and communication efforts. Thank you for helping us by participating in this survey. It should take you about five minutes to complete this questionnaire. Space is provided at the end of the survey to provide any additional comments or feedback that you may have. All of your responses to this questionnaire will be held confidential and will not identify you in any way. Please return this survey in the enclosed envelope by October 15. If you misplace the return envelope, we request that your return the form to the following address: Electric Cooperative Survey Processing, 1050 Regent St., Suite L3, Madison, WI 53715-1263

In the article “A Survey in Your Future“, you can learn more about this survey and how it plays an important role in our power resource planning.

If you receive a survey, please take the time to thoughtfully complete it and return it in the postage-paid envelope.

Thank you in advance for being a part of your co-op’s planning.

Matt Michel, General Manager

Manager's Message

Manager’s Message – August 2018

Down the Line

Dear Co-op Community Members:

Lane Electric Cooperative has been in business for nearly 80 years. You experience the “electric” part every day. How we go about the business of safely providing you reliable electricity is the “cooperative” part.

What does it mean to be a cooperative business?

A cooperative business generally forms to meet a local need. For- profit businesses only offer a service or good because it’s profitable.

Sometimes, consumers must collaborate to acquire a good or service by creating a member-based cooperative. Lane Electric formed in 1939 to bring electricity to the upper McKenzie River and Veneta areas after no investor-owned utility would do so. It simply wasn’t profitable enough, and it still isn’t.

A cooperative business is nonprofit. When it comes to this tax-exempt status under Section 501(c)(12) of the Internal Revenue Code, a cooperative must receive 85 percent or more of its income from members. The sole purpose of that member income must be to meet annual losses and expenses. In other words, Lane Electric doesn’t chase profits to grow the business. We grow the business for members to have affordable access to electricity in rural Lane County.

A cooperative business is democratically controlled. Periodic member meetings occur to elect directors to the board of directors on a one-member, one-vote basis. Sustaining democratic governance requires a good functioning relationship between the board of directors and the general manager. To maintain checks and balances on certain democratic functions, members sometimes participate in co-op committees. Lane Electric’s Nominating Committee, and Elections & Credentials Committee are two examples of members ensuring our democratic processes serve the membership. Please contact me about participating on a member committee.

A cooperative business operates at cost. A cooperative cannot operate for a profit or below cost. There’s a sweet spot between those two extremes called operating “at cost.” At the end of the fiscal year, excess operating net revenues are allocated back to members according to the amount of electricity used by each member. As a cooperative member, every year you are credited an allocation of any excess net revenues—capital credits—to ensure the co-op hits that sweet spot.

Finally, a cooperative is a grassroots organization. It’s not “the government.” It’s all of you, together. It’s consumers collaborating to plan for and meet local needs. That sounds like simply being neighborly. A cooperative business takes being neighborly to the next level.

Matt Michel, General Manager

Manager's Message

Manager’s Message – July 2018

Down the Line

Dear Co-op Community Members:

The Seven Cooperative Principles explain the ideals for why a cooperative business organization exists. Put another way: The Seven Cooperative Principles are like our nation’s Declaration of Independence that we celebrate every July. For example, in May, Lane Electric conducted its annual election to the board of directors. Members completed their ballots and re-elected incumbents Chris Seubert from the Central District and Jerry Shorey from the Oakridge District.

That is cooperative principle No. 2 in action: Democratic Member Control. You are a member of a local democratic organization controlled by its members. Every member has an equal vote—one member, one vote. You elect representatives from the membership to set co-op policies and make decisions. Your representatives are accountable to the membership for their responsibilities to the co-op on behalf of the membership.

Local control through a democratic process. That sounds “self-evident,” doesn’t it? That sounds like Lane Electric is “deriving their just powers from the consent of the governed …” Read on below and think about how great it is to be a part of a local co-op that preserves your right to have a democratic voice in your electric service.

Matt Michel, General Manager


In Congress, July 4, 1776

The unanimous Declaration of the thirteen United States of America

When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

Manager's Message

Manager’s Message – June 2018

Down the Line

Dear Co-op Community Members:

There have been several developments on spilling more water for fish in the Columbia and Snake rivers and the impact that has on your power bill.

In May, the Bonneville Power Administration announced the state of Oregon’s court-ordered spill experiment cost $38.6 million in lost hydroelectric generation. After BPA’s spending reductions in fish and wildlife costs and other adjustments, BPA whittled the cost down to $10.2 million. The cost to Lane Electric is nearly $52,000. BPA will finalize the amount in late June. We knew an increase was coming—see the September 2017 Ruralite back page—and we budgeted for it. That in turn, had an impact on the April rate increase.

In addition to the added power cost, the state of Oregon’s lawsuit added an estimated 1,001,743 more metric tons of CO2 into the Pacific Northwest atmosphere. This is equivalent to putting 217,770 more cars on the road for a year! According to the Oregon Global Warming Commission, transportation emissions were already a primary driver of Oregon’s increasing CO2 emissions. This experiment made Oregon’s carbon profile worse without any assurance fish would benefit.

Meanwhile, back in Washington, D.C., the House of Representatives passed H.R. 3144, a bipartisan bill that would call a “timeout” on the spill experiment. During the House floor debate, Oregon Rep. Kurt Schrader (D-Canby) spoke eloquently in support of the common-sense bill. The bill is now in the Senate and faces a long road, but raising the issue for open discussion is worth the effort.

Oregon’s 18 electric co-ops will continue advocating in Congress and Salem for a coherent, common-sense energy policy in Oregon that balances the complex and vital issues of carbon, affordable power and fish passage mitigation. You have a voice on this issue through Lane Electric. Be a part of a grassroots effort by joining ORECA Grassroots on our website (bottom-right at www.LaneElectric.com). You will receive updates and calls to action.

Finally, thank you for coming out to have dinner with us in May at one of the co-op’s five district meetings. All of us at Lane Electric—the board and employees—enjoy being your host and sharing time with you. From Crow to Lowell to Westfir to Dorena and Blue River, we gathered together to be a part of a grassroots tradition. Take another look at the small communities I just listed—each with their own story, yet all connected in the shared co-op community of Lane Electric. The district meetings are fun, social and informative, so make it a habit to attend every year. We look forward to seeing you.

Matt Michel, General Manager

Manager's Message

Manager’s Message – March 2018

Dear Co-op Community Members:

In the Oregon Legislature’s 2018 Short Session, Lane Electric joins Oregon’s 17 electric co-ops in advocating for a cap-and-trade bill that addresses both carbon and affordability. The ORECA position statement is reproduced below.

Matt Michel, General Manager


Statement of the Oregon Rural Electric Cooperative on Association Cap-and-Trade Legislation: HB 4001 and SB 1507

For the last few months, ORECA has worked collaboratively with the Clean Energy Jobs Utilities and Transportation work group to address our initial concerns with SB 1070, particularly with respect to the ability of electric cooperatives to comply as regulated entities under a state cap-and-trade program. We greatly appreciate the efforts of Sen. Dembrow and Rep. Helm to work constructively with us to improve the legislation.

However, we cannot support HB 4001 and SB 1507 until the state of Oregon recognizes their current environmental policies are not only inconsistent with the proposed cap-and-trade legislation, they are punitive for rural Oregonians.

ORECA members buy their power from the Bonneville Power Administration, which markets the power produced at federal dams. The state of Oregon continues to aggressively pursue policies and operations that significantly reduce hydropower generation at the federal dams in the Columbia River Basin. Spilling water at these dams has far-reaching ramifications for electric cooperatives and the environment that the state of Oregon refuses to acknowledge. For example, increased spring spill is estimated to cost $40 million to consumers, will increase carbon emissions by approximately 840,000 metric tons a year and has unintended consequences for migrating juvenile and adult salmon. It is clear the state of Oregon will not be able to meet its carbon goals if federal hydropower continues to be devalued. Unfortunately—despite our best efforts—the state of Oregon has been unwilling to find any common ground with respect to the operation of the federal dams.

While we also appreciate the sponsor’s sincere interest in developing a carbon proposal that invests in rural Oregon, we have many unanswered questions about how the cap-andtrade policy will impact electric utility rates, transportation costs and jobs in rural Oregon and “frontier” Oregon areas such as Harney County. These questions require significant examination that the short session cannot provide. Nevertheless, ORECA and Oregon’s electric co-ops stand ready to work with the Oregon Legislature and Gov. Kate Brown on these issues, including opportunities to reduce carbon through the electrification of the transportation sector using carbon-free hydropower.

Manager's Message

Manager’s Message – February 2017

Dear Co-op Community Members:

Down the Line

What does it mean to be a member of a co-op community in today’s world and, specifically, an electric co-op community? More than you may realize.

First, a co-op is a not-for-profit organization. Rate increases don’t maintain a profit for shareholders. The co-op exists to provide service to its members at cost.

Second, a co-op is a federal tax-exempt organization. This helps keep your electricity costs lower because the co-op doesn’t pay a federal corporate income tax.

You may have heard about investorowned utilities returning money to their customers in 2018 because the company expects a smaller income tax bill. Those customers will now get to experience what electric co-op members experience every year with capital credits. If in any year Lane Electric collects more in rates than is needed for expenses, capital credits are allocated to each member based on electricity use.

Third, a co-op’s core principles and values are embodied in the Seven Cooperative Principles: 1. Voluntary and Open Membership 2. Democratic Member Control 3. Member Economic Participation 4. Autonomy and Independence 5. Education, Training and Information 6. Cooperation Among Cooperatives 7. Concern For Community Lane Electric Co-op is a grassroots community business. As a co-op member, you have a voice in the co-op, which exists to serve you, its member. You elect community-minded

neighbors to serve on Lane Electric’s seven-member board of directors. They, in turn, hire a general manager to prudently oversee and plan co-op operations.

How does this all affect the recent $4 increase to Lane Electric’s fixed basic charge for all rate classes? The increase is needed to provide service at cost, not for profit. The Lane Electric Board of Directors reviewed staff’s budget proposal in depth to provide transparency into the budgeting process.

The board concluded additional revenue was needed to maintain the financial health of the co-op.

An increase to the fixed charge instead of the kilowatt-hour use charge avoids overcollecting money from members if unusual weather causes greater electricity use.

Lowering the single-phase demand threshold to 31 kilowatts fairly allocates more cost to those members using greater system capacity.

In other words, when a rate increase happens for Lane Electric Co-op community members, it happens because it is the responsible thing to keep the co-op financially healthy for its community.

Don’t forget to check the Capital Credits to see if you have capital credit money to collect.

Matt Michel, General Manager

Manager's Message

Manager’s Report – January 2018

Down the line

Dear Co-op Community Members: This winter is shaping up to be colder than recent years and thankfully without a major ice storm like the Pre-Christmas Iceaggeddon last year that knocked us all for a loop. As I write this a week before Christmas, I hope I haven’t jinxed our good fortune of no major storm! As you weather this winter, remember that your electric Co-op is here to help you manage your electric bill. For example, you can track your usage online with SmartHub, manage your bill with Pay As You Go, or give us a call to talk about energy efficiency programs and ideas.

In November, I let you know that the Co-op’s financial health allowed the Board to avoid a rate increase this winter when your electric bill naturally goes up, and that in April increasing costs would cause a rate increase for the first time in over a year. Effective on bills printed on or after April 1st, there will be a $4.00 increase to the monthly Basic Charge for all rates classes. For those single-phase account with a demand billing component—typically commercial accounts—the threshold for billing the Demand Charge will decrease from over 50 kW to over 31 kW.

What is driving the need to increase rates? Increased wholesale power costsaccount for nearly one-third of it, including a new fish spill surcharge caused by the State of Oregon’s lawsuit against the federal agencies that manage the Columbia River federal hydroelectric system to mitigate for fish impacts.Another one-third of it comes from staffing changes to improve the meteringsystem and enhance our

line extension design services for members. The remainder is driven by inflationary health care costs, improvements in our safety education program, and more energy assistance grants. Charging for kW demand at the lower threshold point of 31 kW and above will help account for the trend of higher peak capacity use.

There’s more timely news I want to share with you. The January retirement of two longtime Co-op employees: Wayne Schvaneveldt and Dave D’Avanzo.

Wayne retired in early January after over 38 years at the Co-op! Quite a run, Wayne!

Wayne was the friendly and helpful serviceman for you up the McKenzie and out in Dorena. His soft-spoken, kind, and steady presence at the Co-op will be missed. May your retirement bring you well-deserved happiness and joy, Wayne.

Dave D’Avanzo will retire at the end of January. Many of you have worked, and laughed, with Dave since 2002 in his role as the face of the Co-op in your community. Dave is a larger-than-life guy who is great to have around. His Lane Electric family and the entire Oregon electric cooperative family will miss him as he and his wife write the next chapter of their lives together. Best wishes on your retirement, Dave.

Matt Michel, General Manager