8 Hidden Account #’s in this issue(sorry for not including them in the last issue)

Find your # for a $25 credit on your account

STANDARD MAILU.S. POSTAGE PAIDD

RICHFIELD, UTAHPERMIT NO. 87

SPRING - 2015Volume 58 No. 2

HIGHLIGHTS

Official NOticeAnnuAl Meeting SeSSion feAturing Mike SchlAppi

Session 1: Tuesday, April 21 in Bicknell (Wayne HS)Session 2: Wednesday, April 22 in Orderville (Valley HS)

Catered Meal: 5:00 - 6:00 p.m.Mike Schlappi: 6:00 - 6:45 p.m. BUSINESS MEETING: 7:00 - 8:00 p.m.

AnnuAl Meeting SeSSionS

The Sessions of the 2015 Annual Member Meeting of Garkane Energy Cooperative, Inc. will be held Tuesday, April 21, 2015 at the Wayne High School Auditorium in Bicknell, UT; Wednesday, April 22, 2015 at Valley High School in Orderville, UT. The regular business meeting sessions will begin at 7:00 p.m. A catered meal will be served free to the public from 5:00 p.m. to 6:00 p.m. with Mike Schlappi speaking from 6:00 - 6:45 p.m. Business to be conducted at this year’s Annu-al Member Meeting includes announcing the results of the election of directors representing Districts 2, 5, 7, and 11 (voting by District only). Candidates for the board are profiled on Pages 6 and 7 of this edition of HIGHLIGHTS. Members in these districts will vote this year in their respective director elections. Election ballots will be mailed on Mar 30, 2015. If you do not receive your ballot by April 13, please call 1-800-747-5403. Instructions for voting will be included with the ballots. There will be no ballots mailed in District 5 and 7 as the candidates are run-ning unopposed. In accordance with the Coopera-tive’s Bylaws, if only one Nomination is made in a particular district, and such candidate satisfies the Director Qualifications, such candidate shall automatically be appointed as a Director, without the need to hold a Director election in accordance with this Bylaw Section (Section 4.05, Paragraph 2). Incumbent Director Terry Griffiths and Andy Gant are the only candidates to file a Nomination Petition in their respective districts; and, therefore, they shall be re-appointed as Directors. Garkane members are invited and encouraged to attend the session most convenient for their indi-

vidual circumstances. Garkane’s Annual Meetings are more than just business sessions. Annual Meetings give attendees the opportunity to learn more about Garkane and the important issues facing the mem-ber-owned cooperative. They also provide time to celebrate the cooperative way of doing business. Prior to the meetings, members will have the opportunity to visit with the Board of Directors and management, to view informative displays, and to en-joy a top notch speaker, who exemplifies a positive attitude among tragedy. Mike Schlappi, is a Hall of Fame gold medalist, puthor of SHOT HAPPENS, pro-fessional speaker, husband and father of five, and will inspire you with some workable strategies, tools, and mindsets that can be used to enrich your life. A story that began with a tragic accident has evolved into a lifetime of lessons and victories. The annual meeting is a free community event for all Garkane consumer/members. Door prizes will be given at the end of the business meeting (The Grand Prize will be a large Flat Screen TV). (0000247200)

When Mike Schlappi takes the floor, a dazzling smile greets you. Then, you notice the wheelchair. If ever a man was defined by what he can do, instead of what he cannot do, it is Mike Schlappi. This Hall of Fame athlete, Gold Medalist, World Champion, MBA, CSP, businessman, husband and father of five will entertain you and inspire you to take on and overcome your own limitations. Following a tragic accident as a teenager, Mike has proven that just because “you can’t stand up, doesn’t mean you can’t stand out”!

2Get To Know The People Behind The Power

You probably didn’t know that when Taylor Albrecht is not maintaining your electric meter, he’s busy guiding hunts in and throughout Utah. “At the young age of 15 my dad excused me from school because his buddy had an elk tag on the fishlake unit and with only 3 days left in his hunt he needed help. We went up and my dad turned me loose with his friend and I took him to a few spots I knew were loaded with elk and called in some bulls for him. At the time I didn’t realize it but this hunt was what drove me forward to become a guide. When I turned 18 I started guiding for an outfitter on the fishlake plateau and Monroe mountain and have since been guiding hunts every year.” Even though Taylor gets to guide some amazing hunts with some amazing people, his favorite activity is still going hunting and spending time outdoors with his family, especially his two kids.

You probably didn’t know that when Clayton Johnson is not maintaining the Hatch area power lines as a journeyman lineman, he is helping his kids raise prize-winning sheep. He started raising sheep at the young age of 12, and now has increased his fold to over 100 sheep. His children work hard at raising and grooming the sheep to show them off at livestock shows, state fairs, and statewide auctions. He says it gives his kids a good work ethic, while providing extra cash, allowing his son to buy his first truck and his daughter to buy an ATV with their personal winnings.

(0000792201)

taylor albrecht clayton johnson

Taylor AlbrechtMeter Tech

TAylor Albrecht Hunting guide

Clayton JohnsonSheep farmer

Clayton JohnsonJourneyman Lineman

3

does mean we are moving into the land of 2-way communication with metering, but we don’t con-sider it smart metering. Last fall we started a small pilot program of what we regard as the next generation of our current one-way power line carrier system. However, we have no intention of invading your privacy and examining your per-sonal business to dictate how you use electricity or when you use electricity.With that being said, here’s a list of the main ob-jectives we are looking to accomplish with 2-way communication: (0000624824)

1. To get an accurate, monthly billable read-ing: This has always been our #1 goal as a coop-erative. If any of you have been members long enough, you may remember how we used to let members read their own meters in certain loca-tions and call it in to us. But as time has pro-gressed, we have moved to a combination of co-op employed meter readers and remote meter readings obtained with our now antiquated one-

cAlendArof eventS

April 10, 2015 Scholarship Applications Due

April 13, 2015 National Lineman Appreciation Day

April 17, 2015 Director Election 2, 11 Ballots Due

April 21, 2015 Board Meeting Loa, UT

April 21, 2015 Annual Meeting Loa, UT

April 22, 2015 Annual Meeting Orderville, Utah

June 1, 2015 Board Meeting Hatch, UT

June 29, 2015 Board Meeting Hatch, UT

As we all see the trend of wanting energy de-pendence, energy efficiency, and energy respon-sibility, it is important to understand where Gar-kane stands on this issue. WE WANT IT ALL. Not only do we want it all, but we want it at a decent price, programs and equipment that work well, and to do so responsibly and respectfully to our members. Garkane is, along with the rest of Amer-ica’s Rural Electric Cooperative community, in the midst of trying to choose the best path for our future in the electrical industry. We are continually faced with the probability of major changes in the generation and transmission of our current electric supply. Unfortunately, this translates into a likely increase in cost from top to bottom. The smart metering movement seems to be an important dynamic within the changing culture of electricity. With the smart meter, at least as far as Garkane Energy is concerned, we real-ly don’t believe ourselves associated with that movement. It would be unfair, however, to say we aren’t moving in a similar direction. Yes, this

Smart Meters And Garkane Energy

way PLC system.

2. To help troubleshoot and detect power out-ages: This is especially true in remote locations where members may not always be aware of an outage. Our goal is always to serve the consumer in the best way possible.3. Pre-Pay Metering: We are in the process of putting the pieces together to run a pilot test to investigate a pre-pay option. This is going to be a small test system only available in certain loca-tions at first, but if it is successful, we hope to be able to further expand that option over the next few years to the entire consumer base. There are some pretty scary reports as to the health effects of smart metering, but to our under-standing most of this has to do with RF commu-nications, which we do not have, or do we plan to ever have. Yes, there are EMF’s (electromagnetic frequency) in all things powered by electricity. That is just the physical nature of electricity and is unavoidable if you have power. I’m not going to discredit or argue the issues with smart meters because Garkane Energy doesn’t feel as though there are issues in our system. Our first goal is al-ways to provide the most reliable, reasonable and efficient power to our members. Article by - Nikki Dinges, Meter Forewoman

Benefits of 2-Way Communication

4

Cash In OnHidden Account

Numbers

We have inserted eight randomly selected Garkane Account Num-bers in the text of various articles in this month’s edition. If your ac-count number is less than 10 dig-its it will begin with a zero. For example, if your account number was 4444 and was inserted into one of the various articles in this month’s edition, it would will be listed as (0000004444). If you find your account number, call Garkane toll-free at 1-800-747-5403. We’ll credit $25.00 to your account as a lucky winner! Just one more rea-son to read HIGHLIGHTS.

Garkane Energy Cooperative, Inc.

VOLUME 58 - NO. 2

GARKANE HIGHLIGHTS is published quarterly (January, April, July, and October), by Garkane Energy P.O. Box 465 Loa, Utah 84747 1-800-747-5403

As the official publication of the Cooperative, the purpose of HIGHLIGHTS is to commu-nicate to members information concerning their electric coop-erative, and to offer suggestions and ideas regarding the safe, effi-cient and economical use of elec-tric energy.

BOARD OF DIRECTORSLaDon Torgersen- Koosharem (435) 638-7531Trent Hunt-Loa (435) 836-2165Terry Griffiths-Orderville (435) 648-2591Carl Boyd, Jr.-Tropic-President (435) 679-8418Tracy Potter -Torrey (435) 425-3128Reed Munson-Escalante (435) 826-4422Rodney Ence-Duck Creek Village (435) 682-2526Boudicca Joseph-Big Water (928) 660-1560 Nanell Robinson-Kanab (435) 644-2752Andy Gant-Kanab (435) 689-0348Tyler Barlow-Hildale (435) 467-5636

GENERAL MANAGER/CEODan McClendon

HIGHLIGHTS Neal R. Brown, Editor

SurpluS iteMS for SAle Bids from Garkane Members are currently being accepted on the following items:

Item #1: 2003 GMC, 2500HD, single cab, 154,473 miles VIN - 1GTHK24G43E295790, located in the Kanab, UT office• Been serviced at appropriate service intervals and has no major problems

Item #2: 2006 Chevy, 2500HD,Extended cab, (not pictured)Vin 1GCHK29G56E258809

Please submit bid in a sealedenvelope with “Bid - Item #” clearly written on the outside to Garkane Energy, P.O. Box 465, Loa, UT 84747. Sealed bids will be accepted until 5:00 p.m. Fri-day, May 15, 2015. Garkane Energy reserves the right to accept or reject any and all bids.

5

This program is funded by Garkane consumer members who voluntarily round up their electric bills to the nearest dollar. Garkane Energy is committed to not only providing you with reliable and affordable en-ergy, but to improving the quality of life of the communities it serves. By participating in Op-eration Round-Up and donating a few cents a day, you can help make your neighborhood a safer and healthy place to live. Start making donations today for a better tomorrow. Visit www.garkaneenergy.comto enroll, or call any Garkane office.

What do Emergency Medical Technicians and an energy Co-op have in common? They both work hard to selflessly serve their community. Garkane was able to donate to the Henriev-ille EMT program to train new medical technicians. With these donations, Henrieville will be able to put these 100% volun-teer individuals through an ex-pensive and time consuming certification process. Garkane Energy was able to collect the life-saving donations through its Operation Round-Up program.

Garkane’s Operation Round-Up Program Donates To Henrieville EMT

a performing arts scholarship. I began studying architecture and finished my Architectural de-sign certificate. I met my wife, Calleen while at Dixie College and married in St. George. We have been mar-ried for nearly 24 years and have two daughters, Cyla who is 18 attending DSU and Maesen who is 14. As a family we like to travel and go to the theater. We have had season tickets to several theaters and both of my daughters are involved in the performing arts. My hobbies include metal detecting, building things, motorcycle and bike riding, and spend-ing time with my family.We lived in St. George for four years and then moved to Salt Lake where I received a heating, ventilation, air conditioning, and refrigeration design certificate from SLCC. I worked in the heating and air conditioning industry for 10 years as a contractor and then I joined a nation-al company that specialized in energy manage-ment. That experience gave me a different per-spective on my own energy consumption and I began looking at ways we can all better manage the resources we have. I am thrilled to be in-volved with Garkane as an energy advisor. What is your favorite quote? “Not all who wander are lost.” from the poem “All that is Gold does not Glitter.” By J.R.R. Tolkin

James Clegg - Kanab OfficeEnergy Advisor

My name is James Clegg and I’m excited to join Garkane Energy. I was raised in the small farming community of Midway, Utah. I am the youngest of six children. I graduated from Wasatch High School where I was involved in everything from football to yearbook. I was the sterling scholar in drama and debate and I went to Dixie College on

If you could choose anyone, Who would you pick as your mentor? Nikola Tesla because he was probably the most brilliant, inventive mind ever!What’s the #1 most played song on your iPod? I love RUSH but I live in a house full of girls and so we listen to all things musical the-ater and Broadway.If you could learn to do anything, what would it be? I would love to learn how to fly an air-plane.What do you miss most about being a kid? When I was a kid I could wander and explore all day and never worry about being missed. My mom knew I would come home when I got hun-gry. I still love to wander but I don’t have as much time to do it. What’s the most amazing meal you’ve ever had? The most amazing meal I’ve ever had was Bar-B-Que at Rudi’s in New Mexico. I traveled there for business a few years ago and this lit-tle restaurant changed my life. I have been on a personal quest ever since to recreate the magic. Hunting, Fishing, Camping, or Hiking? Hik-ing/Wandering- preferably on a motorcycle.

(0001236800)

Garkane Welcomes James Clegg As A New Energy Advisor

6 Member Petition Nominations were filed by the following individ-uals as required by Garkane Energy Cooperative’s Bylaws to become can-didates for the cooperative’s Board of Directors. The filing deadline was February 13, 2015. In accordance with the Cooperative’s bylaws, if only one Nomination is made in a particular district, and such candidate satisfies the Director Qualifications, such can-didate shall automatically be appoint-ed as a Director, without the need to hold a Director election in accordance

with this Bylaw Section (Section 4.05, Paragraph 2). In Districts 5, & 7, these incumbant directors were the only ones to file a Nomination Petition and thus shall be appointed as directors. Gar-kane members in District 2 and District 11 will receive ballots in the mail, with the election results being announced at the Annual Meeting Session on April 21, in Bicknell, Utah, and April 22, in Orderville, UT. The candidates have furnished the following background in-formation to assist voting members in making an informed choice.

Session #1 - TuesdayApril 21, 2015Bicknell, UtahAuditorium - Wayne High School

Owner - Boulder Mtn. Electric, Torrey Town Water and Maintenance Supervisor PREVIOUS WORK EXPE-RIENCE: Electrical Contractor/Electrician, Torrey Town Water and Maintenance supervisor, heavy equip-ment operator, and I have worked in various construc-tion trades for the past 20 years. OTHER BOARDS, CIVIC SERVICE, CHURCH SERVICE: Wayne County Volunteer Fire Department Chief and member, Wayne County Search and Rescue, High Angle Rope Rescue, Wayne County Noxious Weed Board, and have held various positions as a member of the LDS church and Boy Scouts of America. EDUCATIONAL BACKGROUND: Graduate of Wayne High School, general education classes at Utah Valley State College, Electrical Trade School, and Culi-nary Water Operator CertificationWHAT SPECIFIC STRENGTHS WOULD YOU BRING TO GARKANE’S BOARD OF DIREC-TORS: Being an electrician for 18 years and business owner of an electrical company has shown me not only how to respect electrical energy, but how important and precious energy is. I’ve seen firsthand what it takes to build and maintain the electrical infrastructure in our area. I understand the maintenance and cost that comes with this kind of infrastructure. Being involved with many different types of leadership positions, I under-stand the importance of listening to the members to re-solve the issues and challenges as a team.DESCRIBE YOUR POSITION ON SPECIFIC IS-SUES FACING GARKANE: Alternative power sourc-es, consumption of energy techniques in the home and business place, and higher energy power costs are just a few issues facing Garkane. I plan on pursuing alter-native, affordable energy sources including: solar, hydro and wind energy, and working with the home and busi-ness owners on how to conserve energy. I will work with others to do everything possible to maintain affordable and safe energy for all of Garkane’s members.

(0001843200)

OCCUPATION: Electrical Contractor

PREVIOUS WORK EX-PERIENCE: Own and op-erate Hunt Electrical, Inc. 1998 - current.

OTHER BOARDS, CIV-IC SERVICE, CHURCH SERVICE: Utah Rural Electric Association Board (2014 –current) Garkane Energy Board of Direc-tors (2009 - current), Garkane Energy Vice Presi-dent (2011), Garkane Propane Vice President (2010), Garkane Propane Secretary/Treasurer (2009), Wayne County Volunteer Search and Rescue (1998 - 1999), Scout Leader (2001 - 2004 and 2009 - 2013), Chief of Loa Fire Department (2002 - 2004), Member of Loa Volunteer Fire Department (1990 - current)EDUCATIONAL BACKGROUND: Wayne High School 1992 Graduate, Utah Valley University: General Education, Mountain View Training Center: Electrical Continuing Education, National Rural Electric Associ-ation: Credentialed Cooperative Director. CCD certifi-cation with National Rural Electric Co-op Association. (currently enrolled in courses to receive BLC certification with National Electric Coop Association)WHAT SPECIFIC STRENGTHS WOULD YOU BRING TO GARKANE’S BOARD OF DIRECTORS: As the current director for District 2, I bring strengths and an extensive knowledge of the electric industry. I have worked as an Electrical Contractor for seventeen years, which has given me a great amount of experience work-ing with Garkane and other power companies. I work with the consumers and employees of Garkane on a daily basis.

Doing this, keeps me informed about the needs and con-cerns of our community. Supporting Garkane consumer/members takes a lot of time and energy. Being self-em-ployed allows me to devote the necessary time it takes to get the job done and represent the consumer appropriately. As a board member, I have received the required qualifi-cations by attending National Rural Electric Co-op Assn. Training Programs and taking the appropriate courses to be a Credentialed Cooperative Director. These courses have given me a greater understanding of the needs of ru-ral communities and the issues we are facing as electric cooperatives, in providing power to their communities. This credential is essential to fully understand every as-pect of the Power Industry. It has been very beneficial to me and to the individuals I represent. I hold many qualities that make me a strong and successful board member. I am honest, hardworking, and an open-minded individu-al. I am a good listener and problem solver. I have a lot of experience working on committees through public and church callings. I enjoy being active in my community and I am committed to keeping Rural Utah a great place to live.DESCRIBE YOUR POSITION ON SPECIFIC IS-SUES FACING GARKANE: As a board member, my main position is to listen to and address the concerns of Garkane consumer/members by providing quality cus-tomer service. As issues arise, it is important to educate the community and to make research based decisions. Our responsibility is to protect Rural Utah by dealing with all issues and providing cost efficient energy to this area. As the District 2 board member, I am committed to finding new and clean ener-gy sources.

FAMILY: Stephanie Williams-spouse two daughtersOCCUPATION: Business

diStrict 2Trent HuntLoa, Utah

Session #2 - WednesdayApril 22, 2015Orderville, UtahAuditorium - Valley High School

Free Catered Meal: 5:00 - 6:30 p.m. Mike Schlappi 6:00 - 6:45 p.m. BUSINESS MEETING: 7:00 - 8:00 p.m.

Chad WilliamsLoa, Utah - Dist. 2

7

diStrict 11

Terry GriffithsOrderville, Utah

Preston BarlowColorado City, AZ

diStrict 5

Guy TimpsonColorado City, AZDist. 11

Andy GantKanab, UT

diStrict 7

FAMILY: A family of 13 that shares a wonderful love to-getherOCCUPATION: Electrician, Paramedic

PREVIOUS WORK EXPERIENCE: Build-ing Inspector (8 years), Paramedic (17 years), Practical Radiological Techni-cian, Master or Journeyman Electrician (20 States), Electrical Contractor (5 states)OTHER BOARDS, CIVIC SERVICE, CHURCH SERVICE: Arizona Strip Landfill Corporation 1995-2004, Reliance Electric Board of Directors, Colorado City Fire DepartmentEDUCATIONAL BACKGROUND: High School Class of ‘92; 2 years private college; Dixie College Paramedic Program

WHAT SPECIFIC STRENGTHS WOULD YOU BRING TO GARKANE’S BOARD OF DIRECTORS: As an electrical contractor, it will benefit the Board to have someone that is working with the Garkane employees on the street level as well as the management level. With the EMS experience, there is a keen sense of duty for the safe-ty and well-being of the Garkane employees as well as our members. Having had experience with permitting and op-erating a solid waste facility, I have some exposure to gov-ernment regulatory agencies and their processes. Work-ing from coast to coast has expanded the understanding of multistate licensing and intergovernmental cooperation.DESCRIBE YOUR POSITION ON SPECIFIC IS-SUES FACING GARKANE: Deseret rate increase: The Co-op has already completed a rate study which is vital before making rate changes. Garkane is on the right track with their proposal for the Twin Cities. Garkane’s decisions on rates affects the cost of living for every home and business in the entire service area. I take that seriously. I appreciate Garkane’s active part in the De-seret Board and keeping rates down. Conservation and Alternative Energy Sources: I agree with the direction that Garkane is heading, finding ways to benefit members that are energy conscious. Conser-vation and alternative energy sources continue to grow in interest nationwide. Garkane can be a leader in offering savings to residential and commercial customers through alternative means. Additional Customer Service in the Twin Cities: The Garkane Energy members in the Twin Cities need access to the Hildale Payment office 8-5 in-stead of just morning hours.

FAMILY: Marjo-rie-Spouse 11 beautiful children, and I come from a large family, all of whom are still here in the area of Colorado City, Hildale, and Centennial Park.OCCUPATION: Plus One Company, & part-owner in the local health food store Bonne SauntePREVIOUS WORK EXPERIENCE: . I was part owner and Company Manger in Truss Design, the local Truss Plant here in Colorado City from 1999 thru 2011.OTHER BOARDS, CIVIC SERVICE, CHURCH SERVICE: I recently served on the Utility Board of Hildale and Colorado City for six years until being removed by city council for taking on a religious view change in 2011. I enjoyed very much the time spent on that board with other of my fellow citizens.EDUCATIONAL BACKGROUND: I have some col-lege credits, not enough for an Associates Degree as of

yet.I attended the UREA seminar in Logan Utah in the sum-mer of 1991 as a Junior in High School. WHAT SPECIFIC STRENGTHS WOULD YOU BRING TO GARKANE’S BOARD OF DIREC-TORS: As a member of a previous utility board I be-lieve I could help to keep the most affordable services available to the Garkane members along with keeping Garkane a strong and vital Utility Service Coop.DESCRIBE YOUR POSITION ON SPECIFIC IS-SUES FACING GARKANE: Colorado City/ Hildale in particular face unique circumstances with Garkane and an open communication with the Coop and it citizens I believe is very necessary, I believe I can help with that. I believe Garkane in the past has faced some daunting issues here in Colorado City and Hildale particularly and masterfully met those challenges and I believe I could help to continue in that effort.

Terry Griffiths was the only candidate to file a nomination petition for district 5. According to the bylaws, he will be re-elected and will serve a three year term.

Andy Gant was the only candidate to file a nomination petition for district 7. According to the bylaws, he will be re-elected and will serve a three year term.

82015 rAte increASe froM power Supplier,

deSeret power - rAte chAngeS by clASS

As mentioned in the 2015 Winter issue of HIGHLIGHTS, Garkane’s power supplier, Deser-et Power, is increasing its wholesale power rate to Garkane by 9%. Garkane hired an independent par-ty to complete a cost of service study to help Gar-kane determine how Deseret’s wholesale power rate adjustment will affect our current retail rates. That being said, Garkane’s rate adjustment to our con-sumer/members will take effect May 1, 2015. We expect this increase to be approximately 4-5%. Gar-kane will still be very competitive with other rates in Utah and well below the nation’s average. A pub-lic hearing regarding this rate increase occurred on March, 30, 2015 at Garkane’s Hatch office at 1:00 p.m. We know this news is not the best, but we are doing everything we can to help keep your power rates down while maintaining a level of quality ser-vice. It is our desire to be open and transparent with you so you can plan for the future. More informa-tion is available on our website. Please check these often, as they will provide information on methods you can use to decrease your power bill. We sug-gest that you also visit TogetherWeSave.com for suggestions and tips on how to conserve energy and save money on your power bill. The purpose of the public hearing that oc-curred on March, 30 2015, in the Garkane Hatch Office at 1;00 p.m (was to receive comments and to review with the membership, Garkane Energy Coop-erative’s proposed general rate increase to all Utah residential member-owners. (0000023400)

A list of all changes by rate class can be

found on our website at

www.garkaneenergy.com

System Wide Changes

92015 rAte increASe froM power Supplier, deSeret power - rAte chAngeS for gArkAne

General Service 1 General Service 2

Irrigation Lighting

Net Metering Rates will be posted to: www.garkaneenergy.com/content/net-metering-0

(0000929806)

10

Operating RevenuesLine1 Revenues $ 25,654,856 $ 26,392,171

Expenses and Deductions

2 Cost of Sales 9,603,888 10,313,7903 Transmission Expense 201,427 254,9264 Distribution Expense 2,038,799 1,850,9285 Consumer Accounts Expense 798,583 820,5646 Customer Service Expense 153,239 114,6257 Administrative & General Expense 5,101,719 4,930,0588 Depreciation & Amortization Expense 3,018,822 2,917,6149 Tax Expense 704,516 650,10710 Interest Expense 1,380,348 1,330,25911 Other Deductions 45,302 46,97912 TOTAL COST OF SERVICE 23,046,643 23,229,850

13 OPERATING MARGINS 2,608,213 3,162,321

Non-Operating Margins & Other Credits

14 Interest Earnings 36,769 43,40315 Other Capital Credits & Allocations 484,716 441,58216 Misc. Non-Operating Income 19,202 6,81917 Gain/(Loss) on Disposition of Property 94,044 191,69718 Other (Including Extraordinary items) 1,191,421 18,57519 Provision for Income Taxes (158,126) (148,096)

20 NET MARGINS $ 4,276,239 $ 3,716,301

21 Patronage Capital - Beginning of Year 35,635,762 32,416,10622 Refund of Patronage Capital Credits - (496,645)

23 PATRONAGE CAPITAL - END OF YEAR $ 39,912,001 $ 35,635,762

2013

gArkAne energy cooperAtive, inc.conSolidAted StAteMentS of revenue

And pAtronAge cApitAldeceMber 31, 2014 And deceMber 31, 2013

2014

11

gArkAne energy cooperAtive, inc.conSolidAted bAlAnce SheetS

deceMber 31, 2014 And deceMber 31, 2013

20132014ASSetSline Long-Term Assets 24 Plant $ 108,356,007 $ 102,423,607 25 Less: Depreciation (40,669,233) (37,792,643)26 NET PLANT 67,686,774 64,630,964

27 Non-Utility Property 2,417,748 2,046,43128 Investments in Assoc. Organizations 1,810,380 1,758,28129 Other Investments 318,315 315,379

30 TOTAL LONG-TERM ASSETS 72,233,217 68,751,055

Current Assets31 Cash 3,666,150 2,423,26232 Accounts Receivable - Net 3,227,021 4,200,59433 Materials and Supplies 2,942,220 2,919,25334 Prepayments & Other Accrued Assets 152,811 188,59835 TOTAL CURRENT ASSETS 9,988,202 9,731,707

36 TOTAL ASSETS $ 82,221,419 $ 78,482,762

liAbilitieS & pAtronAge 37 PATRONAGE CAPITAL $ 39,912,001 $ 35,635,762

Long-Term Debt38 Deferred Income Tax Liability - Net 511,434 441,86539 Accumulated Operating Provisions 781,374 1,881,31640 CFC Mortgage Notes 32,143,757 31,791,15841 TOTAL LONG-TERM DEBT 33,436,565 34,114,339

Current Liabilities42 Accounts Payable 1,916,752 2,542,22043 Consumer Deposits 697,463 707,53644 Other Current Liabilities 3,465,443 3,356,22045 TOTAL CURRENT LIABILITIES 6,079,658 6,605,976

46 Deferred Credits 2,793,195 2,126,685

47 TOTAL LIABILITIES AND PATRONAGE $ 82,221,419 $ 78,482,762

12

Dear Members of Garkane Energy Cooperative,

It’s that time of year again - an-nual meeting time! On behalf of Garkane Energy, we’d like to per-sonally invite you to join us on April 21, in Bicknell at Wayne High School, and April 22, in Or-derville at Valley High School. We look forward to gathering with you - members of the com-munity, and members of Garkane - to catch up, hear what you have to say while enjoying some good food and fellowship.

This event is not only a chance to visit with members of our commu-nity but it’s also a great opportuni-

ty to learn about our new energy efficiency programs. We’ve recently hired an Energy Advisor to promote these programs to help you save on your en-ergy bills, while using energy during off-peak hours. Our annual meetings make it possible for us to gather feedback from you by providing a forum where you can let us know how we can better serve you and your family.

This is an occasion to discuss and learn more about the issues affecting our local communities. It’s also an opportunity for you to exercise one of your greatest benefits of being a member of an electric co-op, by voting for the upcoming year’s board of directors. Garkane is unique because it is not owned by investors, and is not run by an appointed board of directors. We are run by a democratically electred board of directors, a board who is given the privelege to serve because of your vote.

From the CEO’s DeskOur directors are members of your community and they are concerned with the issues you face every day because they face them too. Garkane recently received a 9% rate increase from Deseret Power, our wholesale provider. After the public rate hearing, it looks like the increase will only be an average of 4-5%, and not the full 9%. This rate increase will most likely take affect on May 1st, 2015.

We understand this is not good news, but the democratic and open elec-tion is one of the many benefits that make our electric cooperative stand out from other utilities. Having a voice in who makes major decisions that directly affect your life and family is the cooperative way.

We remain dedicated to providing you with safe, reliable, and affordable electric service. Even in our shifting energy climate, electricity remains a very good value. In today’s world, you won’t find many items that cost less than $5. You can purchase a gallon of milk, a gallon of gas, or a Big Mac meal from McDonalds. Electricity has the lowest cost per day of any of those items listed above. A day’s worth of power is almost a neccessity and its cheaper than most lunch items we consume on a regular basis. Electricity is still a great bargain.

Sincerely, Dan McClendon

(0000184104)

Garkane Telephonenumbers24-Hour Outage

and Emergency Number(Including Propane)

1-800-747-5403

Loa Office435-836-2795

1-800-747-5403 (toll-free)

Hatch Office435-735-4288

1-888-735-4288 (toll-free)

Kanab Office435-644-5026

1-888-644-5026 (toll-free)

Colorado City/Hildale Office435-874-2810

Loa Office120 West 300 South

Loa, UT 84747

Hatch Office468 South North HWY 89

Hatch, UT 84735

Kanab Office1802 South HWY 89A

Kanab, UT 84741

Colorado City/Hildale Office1185 West Utah Avenue

Hildale, UT 84784

by Dan McClendon

average cost of a Big Mac meal

average daily cost of electricity

Electricity is expressed on a daily basis using EIA 2013 Average U.S. Monthly Residential Bill of $107

ElectricityTHE VALUE OF