Annual Meeting

WVEC 70th Annual Membership Meeting

The 70th Annual Membership Meeting of Whetstone Valley Electric Cooperative, Inc. was called to order by President Gene Boerger at 1:00 p.m. on Saturday, April 2, 2011 in the Theater of Milbank High School at Milbank, SD.

President Boerger announced 250 voting members were present creating a quorum.

President Boerger invited everyone to join Jeremy DeVaal in singing the National Anthem. Former Director Ken Cameron gave the Invocation. President Boerger then introduced the Board of Directors and the National Rural Electric Association Director, Mark Hofer.

Secretary David Behrns entertained a motion to waive the reading of the Certification of Notice of Annual Membership Meeting. There was a motion and a second. President Boerger called for a motion to approve the minutes of the 69th Annual Membership Meeting as mailed out with the Notice of Annual Meeting. A motion was made from the floor that the minutes be approved as mailed out. The motion was seconded and carried.

President Boerger thanked everyone for coming and called on Director Bill Tostenson to present the Treasurer's report. Director Tostenson reviewed the 2010 Operating Statement and the Treasurer's Report as written on pages 7-11 in the Annual Meeting booklet. President Boerger asked for a motion to accept the treasurer's report as printed. There was a motion from the floor and a second. The treasurer's report will stand as read.

Attorney Harvey Oliver addressed the membership. He reviewed the by-law amendment regarding the term limits for directors. He called for a motion to accept the ballot as read. A motion was received and seconded. The minutes will read that both Dale Jensen and Bill Tostenson were elected by unanimous consent. As there were no petitions submitted for District 1, Director Behrns will fill that position until next year when petitions will be accepted for that district.

Manager Ahles reviewed the year's activity. In January, 2010, an ice storm came through causing about $1.2 million in damages. About 250 poles were broke and numerous lines were down. FEMA was able to help with about $900,000.00 for replacing/repairing line. The office implemented a new billing program and with our AMR meters installs, we can get better information about operating loads and usage. Voltage issues are easier to detect. Savings are already being seen with less line loss and fewer trips by our line department to trouble shoot consumer's issues. With the reduced line loss,we are hoping to see $100,000.00 increase to our bottom line.

Manager Ahles mentioned that the coop has received a refund on the workman's compensation policy due to no lost time. This is due to having no accidents while working or with the vehicles. He acknowledged the employees for their safe work practices.

A video presentation was played from Jeff Nelson, General Manager of East River Electric. He outlined the work plan that East River will be working on in the next year. They will continue to replace aging equipment while making necessary capacity and generating upgrades. There are several wind projects that will be functional in the future. Basin will have a coal based plant in Wyoming functional in mid-2011. All eyes are on the upcoming legislative sessions with regards to new laws/regulations, especially those that would negatively impact rural electric cooperatives. Mr. Nelson emphasized that load management is and will be a very useful tool that consumers have to manage their electric usage. He encouraged consumers to go to www.stopenergyleaks.com to get informed. He thanked both Manager Ahles and President Boerger for the leadership during the past year.

Manager Ahles informed the membership that wholesale costs have increased 18% over the last two years. Our 4% growth increase has stabilized this past year. We financed our long term debt and anticipate saving about $500,000.00 in the long run. With Basin looking at a possible mid-year rate increase, we hope to hold off on a rate increase for the rest of the year, but are likely to have a 7-10% rate increase in 2012.

Ed Anderson from SDREA gave a video presentation. He stated that the cap and trade is likely stopped for now, but we need to be aware of the direction the EPA is going. They would like to implement rules in place of laws not passed with regard to emissions. Manager Ahles and several directors will be attending a legislative rally in Washington D.C.

Jeff Trapp won the $1000 Basin Scholarship for 2010. Aspen Hopkins was our representative for the 2010 Washington, D.C. Youth tour. Eric Hansen and Marissa Ebben went on the 2010 Youth Basin Tour.

Manager Ahles announced the 2011 winners: Tiffany Mielitz and Mikayla Brakke will go on the Youth Basin Tour. Kelsey Bergquist won the Washington, D.C. Tour and Amber Zemlicka won the $1000 Basin Scholarship.

It was reported that Whetstone Valley Electric hosted the 2010 Charity Ride in September. Approximately 150-160 motorcycle riders enjoyed a weekend of food, fun and fundraising. These funds are used to help the cooperative employees and their families who have experienced a medical emergency. It was very successful in raising the most funds in its 8 year history- $24,000.00. A big "Thank You" goes out the WVEC employees Jack Hoeke and Mike Oines, for organizing this event.

Manager Steve Ahles then presented the service awards. Brandon Schmieg received his 5 year pin. Mike Trapp and Eric Pederson received their 10 year pins. Jack Hoeke was awarded a 15 year pin. Gail Barlund, Gene Sass and Steve Ahles received their 25 year pins.

President Boerger called for any old or unfinished business. There was none. He called for any new business. Director Loeschke entertained the idea of district meetings. Attorney Oliver clarified some points regarding what has been done in the past.

A motion was made from the floor to adjourn the 70th Annual Membership Meeting. The motion was seconded and carried.

President Boerger declared the meeting adjourned at 3:00 p.m.

The meeting was concluded by drawing names for the Annual Basin Tour and for other door prizes.