CHELCO NEWSWith the end of 2014 rapidly approaching, CHELCO has

margins that are better than expected, so the cooperative intends to reduce members’ bills by approximately $300,000 in November.

“We base our budget on a certain number of kWh sales,” explained Chief Financial Offi cer Wayne Th ompson, “and this year we sold more power than we were anticipating.”

Th e savings will be refl ected in the distribution cost adjustment (DCA), which is currently a charge of $.004 (four mills) per kilowatt-hour. In November the DCA will change to a credit of $.002 (two mills) per kilowatt-hour, a savings to the member of $.006 (six mills) per kilowatt-hour. On a power bill of 1,000 kWh, the change in the DCA will amount to $6 in savings.

Th e reasons for CHELCO’s better than expected margins are threefold. Members’ participation in our Beat the Peak program, combined with CHELCO’s aggresive eff orts to manage loads, resulted in substantial savings. A stronger economy has led to better than average sales in 2014, and CHELCO’s enhanced eff orts to control costs contributed signifi cantly to savings.

As a nonprofi t cooperative, CHELCO takes pride in reducing members’ bills when unexpected margins are earned.

CHELCO members in 1994 and 2013 will be receiving capital credit retirement funds in December totaling more than $2 million.

Th e CHELCO Board of Trustees determined at its October meeting that the fi nancial condition of the co-op permits the return of capital credits. Th e total amount due to members is $2,011,958. Th ose receiving more than $15 will receive checks, while those due $15 or less will see a credit on their electric bill in December.

Each year, if CHELCO generates excess revenue, these margins are assigned proportionately to members on paper as capital credits. Th e amount of capital credits earned depends on kilowatt-hours purchased. Th e actual funds are used to pay for capital items, mostly electrical facilities. Th is investment of the members’ money in the business

becomes their ownership or equity. Aft er a period of time, the trustees may vote to retire these capital credits, that is, return the money to the membership.

“Capital Credits are not guaranteed,” explained Member Services Supervisor Ken Briadwood. “Th e board has to determine if they will be returned on an annual basis.” And the decision has been made to issue capital credits this year.

Th e board also decided the method by which capital credits are returned. Many cooperatives retire capital credits using the fi rst-in, fi rst-out method (FIFO), which means that capital credits invested for the longest time are returned to members fi rst. Others use the last-in, fi rst-out (LIFO) method, which repays capital credits that have been invested in the cooperative for the shortest period time fi rst. CHELCO will use a hybrid method in 2014, as it did in 2013.

CHELCO to reduce bills by $300,000

$2 million to be paid out to members

Choctawhatchee Electric Cooperative, Inc.November 2014Vol. 19 | No. 6

INSIDE THIS ISSUE: In brief (2) • CEO message (3) • CHELCO statements get a makeover (4-5)Timing matters (6)• Youth Tour 2015 begins (7) • Recipes(8)

How Do Capital Credits Work?

Electric co-ops have retired

$11 billion

to members since 1988.

Source: National Rural Utilities Cooperative Finance Corporation

Because electric co-ops operate at cost, any excess revenues, called margins, are returned to members in the form of capital credits.

Your co-op tracks how much electricity you buy and how much money you pay for it

throughout the year.

At the end of the year, your co-op

completes financial matters and determines

whether there are excess revenues, called margins.

Your co-op notifies you of

how and when you’ll receive your

capital credits retirements.

1

2

4

5

When the co-op’s financial condition

permits, your board of directors/trustees

decides to retire, or pay, the capital credits. 3

Your co-op allocates the margins to members as

capital credits based upon their use of electricity

during the year.

Explanation of savings

$2 Credit

$4 charge

Tota

l sav

ings

of $

6

*Based on 1000 kWh

Standardcharge

Savings

$0

$2

$2

$4

$4

Cha

rge

Cre

dit

November

2

(Publication number: 018-038; filing date 5/22/00) is a bi-monthly magazine of Choctawhatchee Electric Cooperative, Inc., published at 1350 W. Baldwin Ave., DeFuniak Springs, FL 32435. Periodicals Postage Paid at DeFuniak Springs, Florida, and at additional mailing offices. POSTMASTER:

Send address changes to , P.O. Box 512, DeFuniak Springs, FL 32435. The magazine keeps members informed on CHELCO news and events, available services and local happenings. Comments about the magazine should be directed to Tammy Kearce at tkearce@chelco.com or (850)307-1121.

Offices closed two days at ThanksgivingCHELCO will be closed Nov. 27 and 28 for the

Thanksgiving holiday. Offi ces will reopen Monday, Dec. 1. Have a great and safe holiday!

Time changeDaylight Savings Time ends Nov. 2. Be sure to set your clocks back one hour. It’s also a good time to change your fi re alarm batteries and mark your calendar for next year.

Electric News offers convenient, timely info

By scanning this QR code, you can sign up for CHELCO’s Electric News, an electronic, monthly newsletter that highlights items from CHELCO News magazine, as well as important updates and alerts.

Way to go Team CHELCOTeam CHELCO was recently named the 3rd highest fundraising team for the North of the Bay Relay for Life and will be recognized in 2015 as a “Team of Excellence.” The 2014 Relay for Life had 32 teams, with 86 survivors and 216 team members. The event raised more than $36,000.

Guess the location; you might win a prize!Follow Choctawhatchee Electric Cooperative (CHELCO) on Facebook and take the mystery location challenge. Every week we post a photo of a landmark in our service territory, and members who correctly identify the location are placed in a drawing for a $25 gift card. Locations are posted weekly and drawings are held at the end of every month. Are you up for the challenge?

Save money with Co-op connections Members can save money by using their Co-op Connections Card at local and national businesses. For a list of participating businesses, visit chelco.com and look under the “Programs and Services” tab.

In Brief...

Is $25 Yours?If the account number below matches

yours, sign this page and mail it with your

bill to CHELCO or drop it off at any office.

You’ll win a $25 credit on your next bill.

Jenevein9000033309

Pat CarlyleDistrict 1

Terry Pilcher Assistant Secretary/Treasurer | District 2

Jim BishopSecretary/Treasurer | District 3

James HaganDistrict 4

Ronald JonesPresident | District 5

Gerald EdmondsonVice President | District 6

Jim MillerDistrict 7

Gayle HughesDistrict 8

Burt CossonDistrict 9

CHELCO Boardof Trustees

3

Insight

Are we all on the same bridge?

STEVE RHODESChief Executive Offi cer

My mother used to ask me, “If everyone else jumped off

a bridge, would you jump too?” She was encouraging me

to make up my own mind about things, and that lesson has

stayed with me over the years.

When looking at the EPA’s proposed regulations to

decrease global CO2 emissions, it occurs to me that

just because we are jumping off that bridge, we

can’t expect other nations, such as China and India,

to follow suit. It doesn’t seem reasonable to expect

developing nations, who lack basic electric service, to

undertake expensive efforts that limit carbon emissions.

China alone emitted 358 million tons more carbon

in 2013 than in 2012, more than the rest of the world

combined, and is responsible for 25 percent of total

worldwide carbon dioxide emissions over the past fi ve

years. Other developing nations contributed an additional 58

percent to the number of total emissions.

In reality, the EPA itself estimates that its proposed rules

to curb carbon dioxide emissions from electric generation

will address only 0.18 percent of global carbon emissions.

The EPA argues that if we set an example, the rest of the

world will follow suit.

While I understand that many developing nations

applaude our efforts to curb CO2 emissions, I’m not sure

they are even on the bridge with us, much less perched on

the edge ready to jump.

NO MONTHLY BILLSFITS YOUR BUDGET

NO LATE FEES

Pay as yougo A PREPAY ENERGY SOLUTION

>>>

Contact us at (850) 892-2111 or visit our web site at www.chelco.com to find out if prepay is a good choice for you.

4

CHELCO statements get a makeover

Members may soon notice a change in

their CHELCO bill. In the month of

November, the format of CHELCO’s

paper statement will change.

“We have changed the formatting and the way

information is displayed to make it cleaner and

easier to understand,”

explained Revenue

and Billing Supervisor

Sharon Collinsworth.

The new bills will

have account and

billing information

in the upper right-

hand corner of the

statement followed by

usage details in the

gray shaded box,with

a detailed payment

history and usage chart

below.

The new bills feature

bold, red color on lines

that require immediate

attention by the

member, such as past

due amounts and due

dates.

“We have moved and

separated information

in a way that will make

it easier to comprehend

at a glance,” said

Collinsworth.

Names are changingThe back of the statement, which defi nes terms

and abbreviations found on the face, has also

changed. In September, CHELCO’s Formula

Rate Requirement (FRR), which accounts for

distribution costs, was renamed the Distribution Cost

Bill Date:8/11/2014Total Owed:$140.18

Current Detail of Power Charges Service Dates Meter Readings

MeterFrom To

No.Days Previous Current

Multiplier Usage Type of Reading Rate

Name: Email: Your Phone #: Board District:

Choctawhatchee Electric Cooperative, Inc. P.O. Box 512 DeFuniak Springs, Florida 32435-0512

0250500750

100012501500

Previous ChargesTotal Owed Last Statement $143.73

Payment-Thank You $-143.73Remaining balance last statement $.00

Current Months Charges

Basic Service $26.00984 KWH @ .07046 $69.33Wholesale Power Cost Adjustment .030917 $31.66984 FRR @ 0.004 $3.941--GAL NP - 100 Watt HPS @ 5.56 $5.56

Subtotal $136.49Gross Receipts Tax $3.40Sales Tax $0.29Amount due by 5pm 09/03/2014 $140.18

Total owed as of this statement $140.18

TipsIf your schedule is full, remember you can make paymentsand add funds to your account at our kiosk located outside thelobby of our DeFuniak Springs office. Payments can also bemade at our website; just visit www.chelco.com.

Usage ChartCompare No. Days Total KWH Avg KWH

This Month 31 984 32Last Month 30 1017 34A Year Ago 31 914 30Your Electricity use over the past 13 Months

2013 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2014

Visit our websiteto pay your bill online

Pay by phone: 850.892.5069x490

2 REGULAR

8/11/2014$.00$140.18$140.18

$4.73

SHARON COLLINSWORTH182 STANLEY DRFREEPORT, FL 324396201

Choctawhatchee Electric Cooperative, Inc.Owned By Those We Serve

Monthly Bill Statement

ADDRESS SERVICE REQUESTED

Please detach and return the portion below with your payment to avoid posting delays. Please do not staple or paperclip.

Make checks payable to CHELCO

Please check if providing new contact information on the back.

Choctawhatchee Electric Cooperative, Inc.P.O. Box 512DeFuniak Springs, FL 32435-0512

Account:Statement:

Bill Date:Remaining balance last statement:

Current amount due by 5pm 09/03/2014:Total owed as of this statement:

After 5pm 09/03/2014 add:Amount Paid:

3

Account:358Statement:81Service Address: 182 STATE DRDescription: HOUSE

(850)892-1234IMA MEMBER imember@gmail.com

IMA MEMBER182 STATE DR

35881

0811201400000 8100000140180

Map No: Bill Cycle: Type of Bill: XXX-YY-010

Currently in Use

ANYVILLE USA 32487-6201

79999912 07/08/2014 08/08/2014 31 1829 2813 1 984 kWh R1

Contact Customer Care at 850.892.2111 • Toll Free 800.342.0990 • www.chelco.com • Regular business hours: 8am – 5pm

PREVIOUSBILL

55pppmmmmm

Areas highlighted in yellow have

changed.

Bill Date:8/11/2014Total Owed:$140.18

Account:358Statement:81Service Address: 182 STATE DRDescription: HOUSE

Current Months Charges

Basic Service $26.00984 KWH @ .07046 $69.33Wholesale Power Cost Adjustment .030917 $31.66984 FRR @ 0.004 $3.941--GAL NP - 100 Watt HPS @ 5.56 $5.56

Subtotal $136.49Gross Receipts Tax $3.40Sales Tax $0.29Amount due by 5pm 09/03/2014 $140.18

Total owed as of this statement $140.18

8/11/2014$.00$140.18$140.18

$4.73

Account:Statement:

Bill Date:Remaining balance last statement:

Current amount due by 5pm 09/03/2014:Total owed as of this statement:

After 5pm 09/03/2014 add:Amount Paid:

35881

5

Adjustment (DCA) to more accurately refl ect its

purpose, and that name change is now refl ected on

members’ bills.

The term “wholesale power adjustment” (WPA)

was also changed to “wholesale power cost

adjustment” (WPCA) to better refl ect its purpose and

align it

with the

DCA,

since

the two work in tandem. And, that change is now

refl ected in the new statement backer as well.

The Wholesale Power Cost Adjustment (WPCA)

accounts for actual energy costs, while the DCA

accounts for those expenses related to the delivery of

power to members, including materials, equipment

and labor.

The DCA rate

fl uctuates annually

depending on the cost

of goods and services

for the previous

year. The back of the

statement was also

updated to include

CHELCO’s current

kiosk information and

locations, as well as

updated hours and

contact information for

all area offi ces. Other

billing and payment

options have also been

added to the reverse

side. These include

paperless billing, bank

draft and e-check

options.

“By including the

defi nition of terms

and abbreviations

on the statement

backer, we are trying

to give members an

easy reference for

better understanding

their bills,” said

Collinsworth.

Service Dates Meter ReadingsMeter

From To Previous Current Multiplier Usage Type of

Reading Rate

Name: Map No: Bill Cycle:

Email: Type of Bill:

Your Phone #: Board District:

Choctawhatchee Electric Cooperative, Inc. P.O. Box 512 DeFuniak Springs, Florida 32435-0512

0250500750

100012501500

Total owed as of this statement $140.18

TipsIf your schedule is full, remember you can make paymentsand add funds to your account at our kiosk located outside thelobby of our DeFuniak Springs office. Payments can also bemade at our website; just visit www.chelco.com.

Usage ChartCompare No. Days Total KWH Avg KWH

This Month 31 984 32Last Month 30 1017 34A Year Ago 31 914 30Your Electricity use over the past 13 Months

2013 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2014

2 REGULAR

8/11/2014

$140.18$140.18

$4.73

SHARON COLLINSWORTH182 STANLEY DRFREEPORT, FL 324396201

ADDRESS SERVICE REQUESTED

Please detach and return the portion below with your payment to avoid posting delays. Please do not staple or paperclip.

Please check if providing new contact information on the back.

Choctawhatchee Electric Cooperative, Inc.P.O. Box 512DeFuniak Springs, FL 32435-0512

Account:Statement:

Bill Date:

After 5pm 09/03/2014 add:Amount Paid:

3

Account:358

Service Address: 182 STATE DR Description: House

(850)892-1234IMA MEMBER imember@gmail.comXXX-YY-010

IMA MEMBER182 STATE DRANYVILLE USA 32487-6201

35881

Contact Customer Care at 850.892.2111 • Toll Free 800.342.0990 • www.chelco.com • Regular business hours: 8am – 5pm

DaysNo.

Statement:81

$26.00$69.33$31.66

$3.94

$3.40$.29

8/11 Basic Service984 KWH @ .07046

1--GAL NP - 100 Watt HPS @ 5.56Subtotal

Gross Receipts TaxSales Tax

79999912 07/08/2014 08/08/2014 31 1829 2813 1 984 kWh R1

To pay online visit www.chelco.comTo pay by phone call 850.892.5069x490

Make checks payable to CHELCO

$136.49

Choctawhatchee Electric Cooperative, Inc.Owned By Those We Serve

Monthly Bill Statement

Transaction Detail

984 WPCA @ .030917984 DCA @ 0.004

Previous Balance: $143.73

Current Charges $140.18

Payment/Adjustments: -$143.73Past Due: $.00

Past Due: $.00

Total Owed:Current Amount Due by 5pm 09/03/2014:

7/10 Previous Balance $143.738/6 Payment-Thank You $-143.73

Current Charges Due: 9/03/2014

$5.56

Total Due: $140.18

Bill Date: 08/11/2014

NewBill

CHELCO statements get a makeover cont.

Areas highlighted in yellow have

changed.

Account:358Statement:81

Previous Balance: $143.73

Current Charges $140.18

Payment/A// djustments: -$143.73Past Due: $.00

Current Charges Due: 9/03/2014Total Due: $140.18

Total owed as of this statement $140.18

$26.00$69.33$31.66

$3.94

$3.40$.29

8/11 Basic Service984 KWH @ .07046

1--GAL NP - 100 Watt HPS @ 5.56Subtotal

Gross Receipts TaxSales Tax

$136.49

Transaction Detail

984 WPCA @ .030917984 DCA @ 0.00A 4

7/10 Previous Balance $143.738/6 Payment-Thank You $-143.73

$5.56

8/11/2014

$140.18$140.18

$4.73

Account:Statement:

Bill Date:

After 5pm 09/03/2014 add:Amount Paid:

35881

Past Due: $.00

Total Owed:Current Amount Due by 5pm 09/03/2014:$

6

Timing your energy use keeps power costs down“Members are our best resource to keep costs low,” said

CHELCO Energy Advisor Kevin Campbell. Because the price of wholesale power rises and falls

depending on the type of fuel (coal, natural gas, nuclear, hydro, etc.) generating electricity, the time of day when power is used ultimately determines the price of electricity. For example, power generated with coal costs less than starting up a natural gas plant to meet peak electricity consumption on hot, humid summer weekday afternoons or extremely frigid winter mornings.

CHELCO remains committed to providing members with affordable power, but there are some costs that the cooperative cannot control. However, members can help by keeping an eye on the clock and

being aware of peak demand. For instance, during the coldest winter months, members

who do energy-intensive tasks such as laundry and dish washing during off-peak hours, usually in the afternoon or early evening, help CHELCO keep costs low.

CHELCO members can help keep future power costs low by conserving electricity during peak times.

Here are some tips: • Limit the use of hot water by postponing showers, baths,

dishes and laundry until off-peak times.

• Adjust the thermostat to 68 degrees in the winter or 78 degrees in the summer.

• Turn off unnecessary lights and appliances.

CHELCO sincerely appreciates members’ efforts to conserve electricity and reduce demand during peak hours. “Controlling peak demand can help reduce power costs,” said Campbell. “Severe heat or cold creates the potential of greatly increasing the cost of wholesale power, but the good news is that members can help limit peak demand.”

When extreme weather is forecast, CHELCO will send an automated call alerting members of the upcoming peak. Controlling demand also helps long-term. Our power supplier must have adequate generating resources in place to meet our greatest demand for electricity. Reducing peak demand is a way of controlling the need to build more generating capacity.

CHELCO Energy Advisor Kevin Campbell

POSITIVEEnergy

7

CHELCO provides students with educational toursIt’s Youth Tour time again, and CHELCO is looking for

high school juniors, whose parents are CHELCO members, to participate in the 2015 program. Youth Tour offers a valuable opportunity for student leaders to learn more about American history, government and the role of electric cooperatives.

Youth Tour packages have gone out to local high schools. Each school selects two juniors to compete in CHELCO’s Youth Tour program. Every student who participates in the program has the opportunity to attend a two-day trip to visit Florida’s Capitol, Supreme Court and Challenger Learning Center. They also get to meet students from other co-ops throughout the state. After the Tallahassee trip, the same students compete in a 10-minute interview to determine who will go to Washington D.C.

Washington D.C. winners enjoy a weeklong, all-expense-paid trip to the nation’s capital, where they join 1,500 Youth Tour representatives from across the country. One of the 2014 Washington winners said, “Before leaving (for Washington), I had so many expectations of what my time in D.C. would be like, and the trip surpassed them all.”

Contact your high school counselor if you, or your junior, are interested in being a Youth Tour student.

Dates of Youth Tour events:

● Tallahassee trip: Feb. 18-19 ● Competition and banquet: March 5 ● Washington, D.C., trip: June 13-18

Energy Effi ciency

Be merry and bright, but don’t let your holiday light shine all night. Save money on your electric bill by installing a light timer for your decked out home. It can help lower your electric bill and reduce energy consumption. Use a manual timer plugged into an electrical outlet to automatically turn lights on and off

as scheduled.

2014 Youth Tour Washington Winners, (left to right) Ian Kampert, Nick Wilkinson, Mary Kathryn Myrick and Allison Findling.

2014 Youth Tour Representatives in Tallahassee on the steps of the State Capitol.

8

1 tbsp. cooking oil2 cloves garlic1 pound fresh green beans, trimmed

GARLICKY GREEN BEANS

Heat oil in skillet over medium-high heat. Stir in garlic and cook until slightly brown (about 20 seconds). Add green beans and cook until beans begin to soften (about fi ve minutes). Remove from heat and let stand fi ve minutes before serving.

CHELCO’S recipe page will be moving to its new online home in January. Details to come in the December issue of CHELCO News 2.

3 large sweet potatoes1 cup sugar2 eggs, beaten½ tsp. salt1 stick butter½ cup evaporated milk1 bag mini marshmallows3/4 cup chopped pecans2 tsp. vanilla extract

SWEET POTATO CASSEROLESubmitted by: Kathy Benton

Preheat oven to 325 degrees. Peel potatoes and cook until soft. Drain and whip them. Add sugar, eggs, salt, milk, butter and vanilla extract. Mix well and put into greased 1 ½ quart casserole dish. Bake at 325 degrees for 25 minutes. Remove from oven and put pecans and marshmallows on top. Return to oven for fi ve minutes or until brown.

BAKED HAM

Preheat oven to 350 degrees. Place ham in a roasting pan, and press whole cloves into the top at 1 to 2 inch intervals. Pack the top with a layer of brown sugar. Pour enough water into the bottom of the roasting pan to come to a 1 inch depth, and cover the pan tightly with aluminum foil or a lid. Bake four to fi ve hours in the preheated oven (22 minutes per pound), or until the internal temperature of the ham has reached 160 degrees, making sure the meat thermometer is not touching the bone. Let stand for about 20 minutes before carving.

One 12 lb. ham (approximate)½ cup whole cloves1 cup packed brown sugar