2024 Annual Meeting

Paulding Putnam Electric Cooperative’s (PPEC) 88th Annual Meeting of Members premiered on Facebook and YouTube at 10 a.m. on Saturday, March 23, 2024. More than 2,500 viewers tuned in to watch the meeting over the weekend for co-op updates and a recap of 2023. This marks the highest viewership the co-op has seen for the annual meeting.

Board election results were announced by PPEC attorney Brian Gorrell, with each elected to serve a three-year term.

• Incumbent Tim Derck of Antwerp was re-elected to District 3 (represents Carryall, Crane, Benton, and Harrison townships in Paulding County, Ohio). No candidates submitted petitions to run against Derck, so he was re-elected by affirmation.
• Incumbent Ken Niese of Ottawa was re-elected to District 7 (represents Monroe, Palmer, Liberty, and Greensburg townships in Putnam County, Ohio). No candidates submitted petitions to run against Niese, so he was re-elected by affirmation.
• Incumbent Adam Schnipke of Fort Jennings was re-elected to District 8 (represents Perry, Jackson, Monterey, and Jennings townships in Putnam County, Ohio; Marion Township in Allen County, Ohio.) No candidates submitted petitions to run against Schnipke, so he was re-elected by affirmation.

Board Chairman Steve McMichael, Secretary-Treasurer Tim Derck, and President and CEO Randy Price reflected on 2023’s challenges and successes, highlighting how the cooperative provides “unmatched value” to its members.

“In 2023, power was available 99.99% of the time because we invest $3-4 million each year in upgrades to our electric system, delivering unmatched power reliability,” said Board Chairman McMichael. “We also take immense pride in giving back locally and are committed to the communities we serve.”

Price discussed the upcoming rate adjustment, approved by the PPEC Board of Trustees, effective on the electric bills PPEC mails in May (due in June). Due to rising costs, the average residential PPEC member using 1,200 kilowatt-hours a month will see a monthly increase of $26.45. Some members may see more or less, depending on their rate, home, and energy usage.  Here is the breakdown:

• The monthly service charge is increasing by $6.50 (from $35 to $41.50 per month). This covers the fixed costs PPEC has to ensure reliable power is available to you 24/7/365 through wires, poles, transformers, and other equipment, as well as maintenance, taxes, etc.
• The distribution energy charge (kWh charge) is increasing just over a ½ cent (from 1.9 cents to 2.5 cents per kWh). This is the cost to bring electricity from PPEC’s substations to your home.
• The Generation and Transmission Charge is increasing by 2.3 cents (from about 8.1 cents per kWh to about 10.4 cents per kWh). This covers costs associated with producing electricity and moving it from a generation facility to the distribution substation. The Wholesale Power Cost Adjustment (WPCA) – which includes the fuel, transmission, and demand charges from PPEC’s wholesale power supplier – will be rolled into the generation and transmission charge, setting a new base moving forward.

“Transmission prices have increased significantly in recent years,” said Derck. “In the past, the cost of transmission has been roughly 10% of our purchased power bill. Now, this cost is over 24% and is expected to continue rising.”

Derck elaborated that since 2020, average equipment prices for everyday materials like wire, poles, and transformers are up 40-60%. “A 50 KVA padmount transformer alone has seen a 78% price increase during the last four-year construction work plan,” Derck said.

The co-op’s last rate increase was in 2018, meaning the upcoming increase averages out to 1.6% per year over that six-year timeframe. The average residential customer in Ohio pays 13.9 cents per kilowatt-hour, while the average Indiana customer pays 14.6 cents. After PPEC’s rate adjustment, the average residential Paulding Putnam member will pay 12.9 cents per kilowatt-hour – still lower than the average in both Ohio and Indiana. 

“We truly do empathize with members and have delayed this rate increase as long as possible to reduce the impact on you,” Price stated. “Our average member’s bill is less than $7 a day. Think of all the ways electricity improves your life… that’s a pretty good value.”

Price reminded members that PPEC operates at-cost and does not aim to make a profit.

“As a member-owned, not-for-profit co-op, maintaining dependable service at the most affordable price remains the cornerstone of our business model. This will never change,” Price said.

In 2023, McMichael reported that PPEC paid $2.5 million back to 23,000+ current and former members via capital credits patronage – a perk of co-op membership.

McMichael shared the various ways members can save, including free home energy audits, rebates, and load management programs from PPEC. He also shared that the co-op will be introducing a new feature to SmartHub this spring called “Home Energy Analytics,” giving members appliance usage breakdowns and estimated bill projections to better help them control electric bills.

“This new savings feature is only available to SmartHub users, so please make sure to sign up,” he said. “We want to put the power to save in your hands, and empowering members has always been the co-op way.”

McMichael reported that due to member growth in Indiana, the board approved a re-districting initiative to allow for more equitable representation in each of the nine board districts. Scipio, Maumee, Jefferson, and Jackson townships in Allen County, Indiana, are moving from District 5 to District 3. Crane Township in Paulding County, Ohio, is moving from District 3 to District 4. All other districts will stay the same. Members can see their district listed at the top right of their electric bill.

Other 2023 highlights reported on included:

• More than 1,700 members, families and kids enjoyed PPEC’s 2023 carnival member appreciation day at the Paulding County Fairgrounds. Members were reminded to save the date for this year’s event on Aug. 3, 2024, at the Fort Wayne Children’s Zoo from 5-9 pm.
• PPEC installed 202 new services and upgraded nearly 100, mainly due to growth on the west side of the co-op’s system around New Haven, Indiana. The co-op rebuilt 15 miles of old line, replaced over 300 poles, performed upgrades to seven substations, and installed over 2,000 advanced RF meters to give members more accurate energy usage data to track in SmartHub.
• PPEC was recognized with three national “Spotlight on Excellence” awards through NRECA for Member Appreciation Day (Best Event), their REA employee program, and a SmartHub marketing campaign.
• Last fall, the cooperative gave local legislators a tour of our Mone “peaking” gas plant in Convoy, Ohio, to educate them on how reliable electricity could be at risk due to dwindling baseload generation, increasing demand on the grid, and government energy policy.
• PPEC members have two new donation options for capital credits, meaning they can give their annual retirement to Operation Round Up for local groups who apply for specific charitable funding or to America’s Electric Cooperatives PAC to make their voice heard in the legislative world and help keep electricity reliable and affordable. Learn more or sign up online at www.PPEC.coop/capital-credits.

A total of $1,000 in bill credits were drawn at random from those members who watched the meeting and left a comment. Winners were as follows: