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Tennessee co-ops applaud passage of Rural Act

The House on Tuesday passed the RURAL Act, protecting more than 900 electric cooperatives throughout the nation from the risk of losing their tax-exempt status when they accept government grants for disaster relief, broadband service and other programs that benefit co-op members.

The Senate is poised to pass the bill later this week, and President Trump is expected to sign it into law.

The RURAL Act was NRECA’s top legislative priority for the year because of the profound threat to the business model of not-for-profit co-ops. Tens of thousands of co-op leaders, employees and members across the country rallied to advocate passage of the bill.

Lawmakers passed the popular bipartisan legislation in the final hours of the 2019 session as part of a larger tax and spending bill that funds the government through September 2020.

“We are grateful to members of the Tennessee delegation who supported this important legislation,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “While these changes may seem subtle, they will have a meaningful impact on Tennessee co-ops and the people they serve – lowering costs, protecting rates and encouraging investment in rural infrastructure.”

The Tennessean published a guest editorial by TECA calling on lawmakers to support the Rural Act. The op-ed appeared online last week and in print today.

The bill’s passage fixes a problem created in 2017 when Congress passed the Tax Cuts and Jobs Act, which redefined government grants to co-ops as income rather than capital. That change made it difficult for many co-ops to abide by the 15% limit on non-member income to keep their tax-exempt status. The RURAL Act once again exempts grants from being counted as income and is retroactive to the 2018 tax year.

Without the fix, some co-ops would have had to start paying taxes this spring after receiving grants in 2018 or 2019 to repair storm damage, bring high-speed internet to rural communities or invest in renewable energy and energy-efficiency programs. Many co-op leaders feared they would have to raise rates for members to pay the new taxes.

The legislation attracted more than 300 co-sponsors in the 435-member House and more than half of the senators. The effort was led in the House by Reps. Terri Sewell, D-Ala., and Adrian Smith, R-Neb., and in the Senate by Rob Portman, R-Ohio, and Tina Smith, D-Minn.

NRECA lobbyist Paul Gutierrez credited the victory to a collaborative campaign strategy that included co-ops’ grassroots efforts to alert their senators and representatives to the issue.

“This was an amazing NRECA team and membership effort, including co-op members at the end of the line,” he said. “We had great legislative champions in the House and Senate, and they worked tirelessly to get this included in the final tax package.”

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Electric co-ops give Tennesseans the power to be more

State’s electric cooperatives gather in Nashville to explore the opportunities facing co-ops

NASHVILLE – The 78th annual meeting of the Tennessee Electric Cooperative Association was held Sunday, Nov. 24, through Tuesday, Nov. 26, in Nashville. Nearly 400 electric cooperative leaders from across the state attended the event where they discussed the significant impact co-ops have, challenged one another to meet the needs of their communities and learned more about emerging technology and power supply issues.

During an address to electric co-op leaders, Gov. Bill Lee commended co-ops for their service to rural Tennessee. “What you do is important to me, and it is critically important to Tennessee’s rural communities,” said Lee. “You bring not light but life to rural Tennessee.”

“Our co-ops are uniquely positioned to have a positive impact on the rural and suburban communities we serve,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “From infrastructure to education to communications, co-ops invest more money in rural Tennessee than almost any other group. We know that these communities matter, and we have a vested interest in their success.”

Kevin Murphy, president of Southwest Tennessee Electric Membership Corporation in Brownsville, was elected president of the TECA board of trustees. Dave Cross, manager of Plateau Electric Cooperative in Onieda, was named vice president, and Steve Sanders, director for Gibson Electric Membership Corporation in Trenton, was named secretary.

Elections were also held for three positions on the association’s board of trustees. Keith Carnahan, CEO of Meriwether Lewis Electric Cooperative in Centerville; Albert Dicus, director from Caney Fork Electric in Madisonville; and Greg Williams, manager for Appalachain Electric Cooperative in new Market, were elected to four-year terms.

Mike Partin, CEO of South Pittsburg’s Sequachee Valley Electric Cooperative, was also elected to serve as Tennessee’s representative on the National Rural Electric Cooperative Association board of directors.

“We congratulate those selected to serve in leadership positions,” says Callis. “We depend on our co-ops to provide guidance and counsel for the association, and we are grateful for their willingness to serve.”

The fifth annual TECA Top Tenn Communications Awards were presented during the event. Meriwether Lewis Electric Cooperative received an award for Best External Newsletter or Magazine Section; Middle Tennessee Electric Membership Corporation, Best Internal Newsletter; Meriwether Lewis Electric Cooperative, Best Website; Southwest Tennessee Electric Membership Corporation, Best Use of Social Media; and Middle Tennessee Electric Membership Corporation, Best Video. Duck River Electric Membership Corporation, Appalachian Electric Cooperative and Sequachee Valley Electric Cooperative received Awards of Excellence in the Wild Card category, with Gibson Electric Membership Corporation, Duck River Electric Membership Corporation and Caney Fork Electric Cooperative earning Awards of Merit.

Four co-ops were presented with certifications from the Rural Electric Safety Achievement Program for 2019. Receiving certifications at this year’s event were Fort Loudoun Electric Cooperative, Meriwether Lewis Electric Cooperative, Tennessee Valley Electric Cooperative and Upper Cumberland Electric Membership Corporation.

“We believe that Tennesseans should not be constrained by where they choose to live, and we are committed to closing the gap between opportunities in places like Nashville and Chattanooga and the opportunities that exist in New Market, Centerville and hundreds of other rural and suburban communities,” says Callis. “The continued success of co-ops and the communities we serve depend on people choosing to live and raise their families here – not in spite of the limitations, but because of the abundant opportunities.”

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Into the Unknown

David Callis, executive vice president and general manager, Tennessee Electric Cooperative Association

The Lewis and Clark expedition was, for the early 1800s, a “moon shot” of epic proportions. The United States was a young and growing country. President Thomas Jefferson had just brokered the Louisiana Purchase, doubling the size of the nation, and a thorough exploration was in order. Capts. William Clark and Meriwether Lewis led a party of 33 soldiers and guides. Not knowing the challenges they would face, they embarked on an 8,000-mile journey that would take well over two years.

Planning for the trip began months earlier. They made use of everything. The barrels in which they packed their provisions were lined with lead to keep things dry. When the barrel was empty, the lead could be fashioned into ammunition. The iron staves holding the barrels together were used to trade with the natives in the region.

Jack Uldrich, noted author and futurist, has written and taught extensively about Lewis and Clark’s Corps of Discovery. In his book “Into the Unknown,” he writes, “How can we prepare for the future? What skills will we need? What tools? What equipment? Where do we even start? These are the very questions Louis and Clark asked themselves, and we could look to them for inspiration.”

There are lessons to be learned from Lewis and Clark in how we face an uncertain and changing future. In fact, we’ve been down this road before.

In 1935, when Congress created the Rural Electric Administration (REA), no one could imagine the transformation it would bring to rural America. Most rural residents were still living as their parents and grandparents had in the 1800s. There were visionaries like young Rep. Lyndon Johnson who championed the work of the REA. The idea that rural residents deserved the same “luxuries” as city-dwellers took hold, and change began. By the 1940s, rural America was well on its way to parity.

But it didn’t happen overnight, and it took a lot of planning. It took legislative changes, and it took dedication and commitment from those who would be served.

Before the REA would grant loans to cooperatives, residents who would be served were required to invest capital. Many were hesitant to get involved in the fledgling electric cooperative movement. It took the commitment of leaders in the community to get on board and convince their neighbors to also join. Johnson, himself, went door-to-door in the Texas Hill Country, encouraging farmers to pay $5 each to jumpstart Pedernales Electric Cooperative.

Today, Pedernales is still providing power and opportunity to the Hill Country. Johnson wrote in 1959, “I think of all the things I have ever done, nothing has ever given me as much satisfaction.”

Uldrich again: “The 21st century is a time of accelerating, almost exponential, change. Advances in computer electronics, telecommunications, and medicine are announced every day. Genomics, nano technology, wireless technologies, the Internet, fuel cells, solar cells, DNA analysis, the sequencing of the human genome, stem cell research, voice recognition technology, and even the advancement of knowledge itself are propelling us faster and faster downriver, and, like Lewis and Clark, we don’t know what’s around the next bend.”

In the electric cooperative community, we spend a lot of time preparing for the journey. As technology has advanced, we’ve changed with it. Over the years, the pace of change continues to accelerate.

Though we can’t anticipate what’s next on the horizon, we have the people, the resources and the dedication to continue to do what we’ve done since the beginning.

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Tennessee Co-op Receives First USDA ReConnect Grant

HALLS, TENN. – U.S. Secretary of Agriculture Sonny Purdue presented the nation’s first ReConnect grant to Forked Deer Electric Cooperative today at an event in Halls, Tenn. The co-op will use the $2.8 million grant to build a fiber-to-the-home network and bring broadband to the electric co-op’s rural consumers.

The USDA’s Rural e-Connectivity loan and grant program, or ReConnect, was established to build modern broadband infrastructure in rural areas. The program was funded by an initial $600 million Congressional appropriation.

“There are a lot of advantages that electric co-ops have when it comes to broadband,” said Secretary Purdue while speaking at a grant ceremony today at Forked Deer Electric Cooperative in Halls. “You know your customers, you already have lines, you have an obligation to serve, and this fits right into your business model. I truly believe that broadband will bridge the rural/urban divide.”

“This is a big day for Forked Deer Electric Cooperative,” said the co-op’s CEO Jeff Newman. “High speed internet access is more than a convenience – it is absolutely necessary for education, healthcare and commerce. Our rural communities cannot be left behind. These funds will assist Forked Deer Electric Co-op in bringing modern connectivity to the communities we serve, and it is exciting to think of the impact that will have right here in Lauderdale County.”

“It is noteworthy that an electric co-op in Tennessee is the first recipient of a ReConnect grant,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “Tennessee co-ops have demonstrated the ability to maximize state and federal funds. For every dollar of grant money received, Tennessee co-ops are investing $15 of their own money. This multiplier means that Tennessee electric co-ops are stretching grant funds further to have the greatest impact.”

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Twenty-nine projects completed on 2019 Day of Service

NASHVILLE – Twenty-nine service projects were completed by electric co-op employees on or around Thursday, Oct. 17 thanks to the 2019 Tennessee Electric Co-op Day of Service. Thirteen co-ops allowed 480 employees to volunteer more than 1,000 hours in service to their local communities.

“It is no secret that electric co-op employees care about the communities where they live and work,” says Trent Scott, TECA’s vice president of corporate strategy and organizer of the event. “They give back to their communities each day by keeping the lights on for their friends and neighbors. The Day of Service is different – it is a unique opportunity to make our state and these individual communities better places. Each of the projects completed during this year’s event are important, but the impact is multiplied when co-ops across the state work together to improve everyday life for the people and places we serve.”

Service projects completed for this year’s event include volunteering at schools, nursing homes and food banks; serving meals to first responders and school bus drivers; collecting food, toys, clothing and other supplies for local pantries; and partnering with organizations like United Way, Second Harvest Food Bank, Friends of Radnor Lake and Habitat for Humanity.

Each employee who participated in this year’s event received a Day of Service t-shirt thanks to the generous support of sponsors Bass, Berry & Sims, CoBank, CT Consultants, LogicomUSA and The Tennessee Magazine.

This is the third Day of Service event conducted by Tennessee co-ops. In its three-year history, 1,236 employees have volunteered more than 3,100 hours to complete 75 individual projects in co-op communities across the state.

In the photo: TECA employees Tina Smith, Mallory Dunavan, Amy Jordan, Laura Beth Laden and Trent Scott volunteered to help with the construction of a new hiking trail at Radnor Lake State Natural Area near the association’s office in Nashville.

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MTEMC teams with Tesla

Middle Tennessee Electric selects Tesla battery to drive power savings

Murfreesboro – Middle Tennessee Electric (MTEMC) has teamed with Tesla, one of the most innovative technology companies in the energy industry, to test a new program intended to save its members money via a cutting-edge energy management process.

Middle Tennessee Electric has installed the latest Tesla Powerpack at one of their substations in Murfreesboro, TN. The Tesla Powerpack is a battery energy storage system (BESS) designed for a wide range of uses.  In this pilot program, it will be used to reduce MTEMC’s energy demand charges from the Tennessee Valley Authority (TVA) and improve demand response time to its members when additional energy is needed. “We’re really excited about what the Tesla Powerpack allows us to do. It’s yet another asset we can use to improve the quality of our system while being financially responsible stewards of our members’ resources,” says Chris Jones, MTEMC President/CEO.

The BESS’s primary purpose will be to help reduce MTEMC’s monthly wholesale electricity purchases during peak demand hours, a change that should result in saving the cooperative tens of thousands of dollars annually. This is done through a process called energy time shift for distributed generation. The process allows the BESS to be charged when TVA rates are lower during low usage hours and is then discharged when energy demand costs are higher.  Middle Tennessee Electric members will benefit significantly because they will be billed based on the lower off-peak rates in effect when the BESS was being charged rather than the higher on-peak rates normally charged when the electricity is used during those peak hours.

In addition to saving the cooperative money, the Tesla Powerpack allows MTEMC to evaluate innovative energy technology and educate members about its Distributed Energy Resources (DER). “Education is another important benefit of the project. As with any new technology, there is a lot to learn as we educate our employees and members,” says Avery Ashby, an MTEMC electrical engineer. “A better understanding comes from owning, operating and maintaining new technology, so we can advise our members to make informed decisions as more distributed energy resources are adopted in our service area.”  MTEMC currently operates a subscription solar power program called Cooperative Solar as another part of its DER offerings to members.

Jones continues, “We exist to serve our members by making their lives better. As one of the largest electric cooperatives in the nation, we are constantly looking for new ways to improve the reliability and affordability of electricity for our members, and the Tesla Powerpack allows us to realize those goals. Members should be focused on living their lives, not on the system powering them.”

The deployment of Tesla technology is one of the latest innovations MTEMC has embraced in its role to be their members’ trusted energy advisor and provider. MTEMC provides electricity and community programs to more than 500,000 Tennessee residents through 230,000 metered accounts. The MTEMC service area covers more than 2,100 square miles and is served by more than 12,000 miles of electric line across parts of 11 Tennessee counties including Cannon, Rutherford, Williamson and Wilson counties.

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Electric co-ops light the midway to start the 2019 Tennessee State Fair

NASHVILLE – Jamie Perrigo, operations superintendent for Tri-County Electric Membership Corporation in Lafayette, flipped the switch to light the midway and officially start the 2019 Tennessee State Fair on Friday, Sept. 6, in Nashville. Tennessee’s electric co-ops have sponsored the opening ceremony of the fair since 2014.

Attendees of the opening ceremony heard from legislators, elected officials and others, including Nashville Mayor David Briley and Trent Scott, vice president of corporate strategy for the Tennessee Electric Cooperative Association.

“The fair is a celebration of life in Tennessee – specifically rural Tennessee,” said Scott. “There are exciting things happening here in Nashville, but it is important that we not overlook what happens out there – past the city limits signs in rural and suburban Tennessee. Rural Tennessee is home to 37 percent of the state’s population and 30 percent of personal incomes. What happens out there matters. It matters to the people who live there, but it should matter to everyone. Co-ops are proud to serve rural Tennessee and advocate for rural communities every day. We’re also proud to be here tonight to kick off the 2019 Tennessee State Fair.”

The fair runs Sept. 6 – 15 at the Fairgrounds in Nashville. Learn more at tnstatefair.org.

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Tennessee co-ops respond to Hurricane Dorian

NASHVILLE – While most Tennesseans enjoyed a long Labor Day weekend, several lineworkers from Tennessee’s electric co-ops were heading to Georgia and North Carolina to assist with Hurricane Dorian recovery efforts. Twenty-two lineworkers – ten from Southwest Tennessee Electric Membership Corporation in Brownsville and 12 from Sequachee Valley Electric Cooperative in South Pittsburg – are traveling to the coast to restore power to areas affected by Hurricane Dorian. The powerful storm is expected to impact coastal areas of Florida, Georgia and the Carolinas later this week.

“Lineworkers have a desire to serve others,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “It always impresses me how quickly our crews volunteer to help, even without knowing the conditions they will face or how long they will be away from their families.”

The uncertainty of Dorian’s track has made preparations far more difficult than usual. If the storm ultimately makes landfall along the South and North Carolina coast, Tennessee may be asked to send additional crews.

Statewide trade associations like the Tennessee Electric Cooperative Association coordinate mutual aid assistance for co-ops in their respective states. When a state determines that it needs assistance, requests are made to surrounding states. The statewide organizations in those states work with their local co-ops to organize crews and make arrangements for lodging and food. Working out details ahead of time allows crews to respond quickly when a need arises.

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2019 Washington Youth Tour delegates return home

NASHVILLE – 185 students, teachers and co-op chaperones have returned from a week in our nation’s capital as delegates of the 2019 Washington Youth Tour. The annual event, sponsored by the Tennessee Electric Cooperative Association and the state’s 23 electric co-ops, provides young leaders with an opportunity to explore the nation’s capital, learn about government and cooperatives and develop their leadership skills. Students were selected for the trip by writing short stories titled “Electric Cooperatives – Connecting Communities” that explain how co-ops provide communities with much more than electric power.

“We take great pride in recognizing the best and brightest from across Tennessee,” said Todd Blocker, vice president of member relations for the Tennessee Electric Cooperative Association and tour director. “By honoring their accomplishments through programs like the Washington Youth Tour, we show these future leaders that their co-op cares about the future. We want these young people to come home with a better understanding of their nation and new passion to serve their community.”

Tennessee’s Youth Tour delegates saw the White House and memorials to past presidents Thomas Jefferson, Abraham Lincoln and Franklin Delano Roosevelt as well as monuments honoring the sacrifices of veterans of World War II and the Vietnam and Korean Wars. During visits to the museums of the Smithsonian Institution, the touring Tennesseans saw and experienced natural, historical and artistic treasures. Other fun stops included historic homes of former presidents — George Washington’s Mount Vernon and Jefferson’s Monticello — as well as Ford’s Theater and a boat cruise down the Potomac River. The group also paid a solemn and sobering visit to Arlington National Cemetery where the delegtes laid a wreath at the Tomb of the Unknowns.

For many, the highlight of the trip was hearing from Holocaust survivor Ms. Esther Starobin at the United States Holocaust Memorial Museum. Her advice to the delegates was, “Don’t be a bystander in this world. You have to know history and pay attention to it. Get involved and learn as much as you can with more than a single viewpoint.”

The group was welcomed to the U.S. Capitol by Sens. Lamar Alexander and Marsha Blackburn and members of the Tennessee congressional delegation who posed for photos and answered questions.

While in D.C., winners were announced in the statewide competition for the Robert McCarty Memorial Scholarships. Jacob Coble from Meriwether Lewis Electric Cooperative, Alyssa Hampton from Fayetteville Public Utilities and Melanie Garcia from Appalachian Electric Cooperative were awarded $3,000, $2,000 and $1,000 Robert McCarty Memorial Scholarships for having the first, second and third place papers of the more than 10,000 papers submitted across the state.

McCarty was an employee of Volunteer Energy Cooperative and longtime chaperone on the annual Youth Tour. McCarty lost a battle with cancer in 2015, and sponsoring cooperatives renamed the scholarships in honor of his love for young people.

Keslin Moore, a senior from Sequachee Valley Electric Cooperative was awarded a $10,000 Cooperative Youth Ambassador Scholarship. Moore was a 2018 delegate of the Washington Youth Tour. In the year following the tour, delegates who remain engaged with their sponsoring cooperative and complete certain community service requirements are eligible for the scholarship. Moore’s name was randomly selected from among the 50 delegates from across the state who completed the requirements.

“An investment in these young people is also an investment in the communities we serve,” said David Callis, CEO of the Tennessee Electric Cooperative Association. “These are exceptional students, and our hope is that their youth tour experience empowers them to return home and make a difference in their communities.”

President Lyndon Johnson inspired the Washington Youth Tour in 1957 when he encouraged electric cooperatives to send youngsters to the nation’s capital. In the years since, more than 6,000 young Tennesseans have been delegates on the Washington Youth Tour.

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Youth tour scholarships awarded in Washington, D.C.

WASHINGTON, D.C. – Tennessee’s electric cooperatives awarded $16,000 in scholarships to Washington Youth Tour delegates on Tuesday evening, June 18, in Washington, D.C.

Keslin Moore, a senior from Sequachee Valley Electric Cooperative was awarded a $10,000 Cooperative Youth Ambassador Scholarship. Moore was a 2018 delegate of the Washington Youth Tour. In the year following the tour, delegates who remain engaged with their sponsoring cooperative and complete certain community service requirements are eligible for the scholarship. Moore’s name was randomly selected from among the 50 delegates from across the state who completed the requirements.

2018 Washington Youth Tour delegate and $10,000 Cooperative Youth Ambassador scholarship winner Keslin Moore and Sequachee Valley EC employee Cathy Black.

Jacob Coble from Meriwether Lewis Electric Cooperative, Alyssa Hampton from Fayetteville Public Utilities and Melanie Garcia from Appalachian Electric Cooperative were awarded $3,000, $2,000 and $1,000 Robert McCarty Memorial Scholarships for having the first, second and third place papers of the more than 10,000 papers submitted across the state.

McCarty was an employee of Volunteer Energy Cooperative and long-time chaperone on the annual youth tour. McCarty lost a battle with cancer in 2015, and sponsoring cooperatives renamed the scholarship in honor of his love for young people.

More than 135 high school Juniors from across the state are in the nation’s capital this week for the 2019 Washington Youth Tour. The annual event teaches students about public policy, history, leadership and electric cooperatives. The tour is coordinated by local electric cooperatives, the Tennessee Electric Cooperative Association and the National Rural Electric Cooperative Association.

“An investment in these young people is also an investment in the communities we serve,” said David Callis, CEO of the Tennessee Electric Cooperative Association. “These are exceptional students, and our hope is that their youth tour experience empowers them to return home and make a difference in their communities.”

Delegates will return home on Thursday, June 20, but they have already experienced a great deal on this year’s trip. For many, the highlight of the trip was hearing from Holocaust survivor Ms. Esther Starobin at the United States Holocaust Memorial Museum. Her advice to the delegates was, “Don’t be a bystander in this world. You have to know history and pay attention to it. Get involved and learn as much as you can with more than a single viewpoint.” Learn more about Ms. Starobin’s story on the Holocaust Memorial Museum website.

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Young leaders depart for Washington, D.C.

NASHVILLE – More than 135 students from across Tennessee are headed to Washington, D.C., as a part of the 2019 Washington Youth Tour. The annual event, which begins on Friday, June 14, provides young leaders with an opportunity to explore the nation’s capital, learn about government and develop their leadership skills.

The Washington Youth Tour is sponsored by the Tennessee Electric Cooperative Association and local electric cooperatives from across the state. Students were selected for the trip by writing a short story titled “Electric Cooperatives – Connecting Communities” that explains how co-ops provide communities with much more than electric power.

Delegates on this year’s trip will visit museums and monuments, including the White House and the Capitol Building. The group is also scheduled to meet with Sens. Alexander and Blackburn as well as other members of Tennessee’s Congressional delegation.

“Each year Tennessee co-ops provide education, leadership and scholarship opportunities to hundreds of students from across Tennessee,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “Today’s young people are tomorrow’s teachers, Senators, doctors and entrepreneurs, and we’re investing in a brighter future for these young leaders and the communities we serve. Youth tour gives these students the opportunity to experience history and democracy up-close, and we hope they return with a deeper appreciation of America and a desire to serve their communities.”

President Lyndon Johnson inspired the tour in 1957 when he encouraged electric cooperatives to send youngsters to the nation’s capital. In the years since, more than 6,000 young Tennesseans have been delegates for the Washington Youth Tour.  Politicians, business leaders, authors and athletes are Washington Youth Tour alumni, including Apple CEO Tim Cook.

The Tennessee Electric Cooperative Association provides leadership, advocacy and support for Tennessee’s 23 electric cooperatives and publishes The Tennessee Magazine, the state’s most widely circulated periodical. Visit tnelectric.org or tnmagazine.org to learn more.

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Co-op leaders discuss Tennessee issues with DC lawmakers

NASHVILLE – More than 50 electric co-op leaders from Tennessee traveled to Washington, D.C., on Tuesday, April 30, to talk with members of the Tennessee congressional delegation about issues important to the state’s rural and suburban communities.

During meetings with lawmakers, co-op leaders discussed energy, connectivity and other topics, including:

  • highlighting the need for rural and suburban America to be included in future infrastructure investments
  • supporting legislation that protects the tax exempt status of co-ops receiving income from infrastructure grants or FEMA reimbursements. An unintended consequence of the recent Tax Cuts and Jobs Act changes the way co-ops account for such income, placing tax exemption at risk in some cases and increasing costs for ratepayers.
  • TVA rates and ownership of transmission assets owned by TVA and the Power Marketing Administrations.

Lawmakers were also invited to visit their local co-ops to meet employees, attend annual meetings and tour co-op facilities.

“We bring co-op leaders to Washington, D.C., to build relationships,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “We want lawmakers to know and trust us, and we want them to think about us as they make decisions. Visits like this provide us with a valuable opportunity to educate lawmakers about co-ops and our communities.”

Photos from the event are available online.

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Utility worker assault bill progresses

Senator Todd Gardenhire (R – Chattanooga) has successfully moved Senate Bill 481 though the Senate. It passed by a vote of 27-5 on March 18. This legislation includes utility workers among other first responders and will subject offenders that commit assault against them to enhanced penalties.

The bill has also been approved by the House of Representatives. In a rare show of bi-partisan sponsorship in this General Assembly, Representative Darren Jernigan (D – Nashville) successfully shepherded the legislation with minimal opposition. Only Governor Lee’s signature remains for this change to become law.

“Linemen and other utility workers should certainly be counted among first responders in the communities they serve,” says Mike Knotts, vice president of government affairs for TECA. “This legislation shows the support that these community heroes have from their co-ops and from state lawmakers.”

The pace of activity in the 2019 General Assembly has peaked as many Committees have closed and bills are moving quickly toward the House and Senate floors. The focus of the legislature is shifting to formation of the state’s budget, and TECA will be working diligently to see that budget priorities that benefit electric co-ops are heard by the Finance committees.

Chief among them is funding of the Tennessee Broadband Accessibility Grant Fund for which Governor Lee has proposed $20 million of new funds. In 2018, the Legislature increased Governor Haslam’s request by 50% in the final budget ($10 million proposed, $15 million funded). Key members of the Finance Committees have expressed interest in a similar increase for 2019, but additional funding is by no means assured.

TECA continues to track other important pieces of legislation moving through the 2019 General Assembly.

Increased Penalty for Illegal Drone Use

Senate Bill 306 by Senator Jon Lundberg (R – Bristol) and Representative Bud Hulsey (R – Kingsport) has been signed into law by Governor Bill Lee. 

This legislation increased the penalty to a Class E felony for operating a drone over a critical infrastructure facility without the consent of the owner. This makes a violation punishable by one to six years in prison and a fine of up to $3,000.

The law defines critical infrastructure facility to include “An electrical power generation system; electrical transmission system, either as a whole system or any individual component of the transmission system; or electrical distribution substation.”

It was previously a misdemeanor offense, which made enforcement of the violations a low priority of law enforcement. Should your cooperative feel the need to notify your local authorities of violations, you may now let the call center know that the crime is a felony and warrants dispatch of officers to investigate.

Cooperative Broadband Clarifications Passes House 81-8

Having already been passed by the Senate on a unanimous vote, House Bill 172 by Pat Marsh (R – Shelbyville) was considered by the House of Representatives on Monday, April 8. The bill clarifies elements of the Broadband Accessibility Act to encourage competition in co-op-served areas. After a brief discussion (Debate on the bill can be viewed here) the bill passed on a vote of 81–8.


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Co-ops host young leaders in Nashville

NASHVILLE – Forty-six high school juniors from across the state are attending the Tennessee Electric Cooperative Association’s annual Youth Leadership Summit this week in Nashville.

Delegates to the annual event get a hands-on look at state government, build networking and leadership skills and develop a better understanding of energy generation and their local electric cooperative.

Delegates visited the State Capitol Building today to meet members of the Tennessee General Assembly. A house staff member explained the process required to pass legislation, and students debated and voted on a mock bill. Delegates also had an opportunity to sit in on committee hearings.

In addition to lawmakers, students also heard from Tennessee leaders like Christine Williamson, Ms. Tennessee 2018; Adam Hammond, anchor for Nashville’s NewsChannel5; and Trooper Jeffrey Buchanan with the Tennessee Executive Protection Detail.

Delegates to the Youth Leadership Summit are encouraged to be leaders and use their talents to improve rural Tennessee. “Electric co-ops want to see the places we serve grow and prosper, and these young people are important to their communities,” says Todd Blocker, vice president of member relations for the Tennessee Electric Cooperative Association and director of the Youth Leadership Summit. “Small towns and rural communities need talented and engaged young people who are invested, and that is what we are doing with our Youth Leadership Summit delegates. We want them to leave this experience with a new appreciation for where they live, prepared to be the leaders of their generation.”

Each of Tennessee’s 23 electric co-ops sponsored two delegates to participate in this year’s Youth Leadership Summit.

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Telling the co-op story on Capitol Hill

NASHVILLE – Gov. Bill Lee stressed the importance of rural Tennessee while speaking with electric co-op leaders during the Tennessee Electric Cooperative Association’s 2019 Legislative Conference on Tuesday evening, Feb. 12.

“I grew up in rural Tennessee, so rural issues matter a lot,” said Lee, a resident of Fernvale and member of Middle Tennessee Electric Membership Corporation. “I think what happens in rural Tennessee should matter to every Tennessean. That’s why our first executive order was in fact to strengthen our rural communities and to require every department of state government to give an impact statement on how they impact rural communities.”

Gov. Bill Lee at the 2019 TECA Legislative Conference

Lee spent nearly an hour with co-op members and staff discussing the administration’s plans and policy positions and the role that co-ops play in the communities they serve. Broadband was a popular topic of discussion.

“In my own home we don’t have broadband,” said Lee. “I have first-hand experience what a challenge that can be. I don’t run my business out of my home and I am not educating children there, but I have a taste of how difficult that would be. It is really important that we continue to expand broadband service so that Tennesseans all across the state have access to it.”

More than 150 electric co-op members from across the state were in Nashville for the 2019 Legislative Conference to deliver an important message to lawmakers: electric co-ops are important to Tennessee.

The 2018 election brought seven new senators and 26 new representatives to this year’s General Assembly. Co-op members, directors and staff met with familiar faces and with many new ones during 100 separate meetings with lawmakers.

“While many of these freshman legislators know about co-ops, some do not,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “It is important for us to tell the story of electric co-ops, and the co-op members who are with us today in Nashville are delivering a powerful message – rural and suburban Tennessee matters and electric co-ops are a big part of their growth and prosperity.”

“State lawmakers are often asked to make tough decisions that can impact electric co-ops and the lives of the 2.5 million consumers they serve,” says Mike Knotts, vice president of government affairs for TECA. “Electric co-ops maintain a presence in Nashville and Washington, D.C., to help lawmakers understand how legislation will impact the people back home.”

During visits, co-op members spoke to legislators about local governance, tax issues, broadband and other regulatory concerns that affect the ability of electric co-ops to provide affordable and reliable energy and other services that matter to rural and suburban communities.

Electric co-ops are best known for energy, but they have far reaching impacts on rural and suburban areas of the state. From economic development to youth programs to broadband expansion, electric co-ops enable many Tennessee communities to grow and prosper. Learn more at tnelectric.org/cooportunity.

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New Year, New General Assembly, New Legislators

Last week, the 111th General Assembly of the state of Tennessee began its two-year session, and operative word for all Capitol-watchers is “new.” With so many first time members of the Legislature who are still learning about the legislative process and how best to represent their districts, Tennessee’s electric co-ops have work to do.

The upcoming TECA legislative conference, day on the hill, and legislative reception offer co-op Boards and staff a great opportunity to interact with legislators, both new and old, and engage in important public policy discussions. If your cooperative has not yet registered to attend, please do so. We look forward to seeing you there.

TECA’s public policy partner is the law firm of Bass, Berry, and Sims. They recently published a helpful and concise overview of the beginning of this General Assembly.

With the new session comes change not seen in Tennessee government in recent history, as over 30 new lawmakers were sworn in on the first day. Lieutenant Governor Randy McNally (R-Oak Ridge) was again elected as Speaker of the Senate, and Glen Casada (R-Franklin) was elected to replace outgoing House Speaker Beth Harwell (R-Nashville). Harwell served as Speaker of the House for eight years.

Governor-elect Bill Lee (R-Franklin) will be sworn in on January 19, 2019. Lee’s first major task of the start of his first year will be to finalize his commissioner appointments and present his budget. Lee is expected to give his first State of the State address and release his budget on March 4, 2019.

Tennessee House Committee Updates

As Lee begins his work he will be working with all new leadership in the House. In addition to the new Speaker, Majority Leader and Caucus Leader, the House has brand new committees and committee chairs. There is sure to be an extended learning curve this session with so many new legislators and committee chairs. The list of committees and committee chairs for the House can be found here.

Tennessee Senate Committee Updates

In the Senate, there were fewer changes. No new committees were created in the Senate, but there are five new chairs of committees. The list of committees and committee chairs for the Senate can be found here.

After the inauguration, the Senate will take an additional week to organize before returning to business on January 28, 2019. The House will return sooner to resume its business on January 23, 2019. The bill filing deadline will be the first week of February. House members will continue to have 15 bills unless they chair a committee. In that instance, a chairman will have an additional five bills that must be related to the subject matter of his or her committee.

111th General Assembly App

General Assembly App

The 111th Tennessee General Assembly app features a continually updated, searchable database of contact, staff and committee information as well as district maps, photos, leadership roles and social media profiles for members of the Tennessee House and Senate. The app also contains information on the governor and his cabinet and the Tennessee congressional delegation. The app was developed through a partnership between the Tennessee Electric Cooperative Association and Bass, Berry & Sims PLC.

The free app is available for iPhone, iPad and Android devices and can be found by searching for “Tennessee General Assembly” in the Apple App Store or Google PLAY Marketplace.

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Day of Service has impact

NASHVILLE – More than 400 electric co-op employees participated in the 2018 Tennessee Electric Cooperative Day of Service on Thursday, Oct. 18. Twenty-five individual service projects were completed across the state with 13 co-ops allowing 425 employees to volunteer more than 1,000 hours in service to their local communities.

“It’s amazing what giving hearts and willing hands can do!” says Vanessa Clayborn, manager of member services at Meriwether Lewis Electric Cooperative in Centerville, Tenn. “We had 53 employees participate in this year’s Day of Service, and the results are staggering and life-changing for those who participated and those we helped.”

“It is really incredible to see the passion that co-op employees have for their communities,” says Trent Scott, vice president of corporate strategy and organizer of the event. “We frequently talk about service to community, and this event puts words into action in very real and tangible ways.”

Service projects completed for this year’s event include four energy efficiency workshops or safety demonstrations, five parks and playgrounds cleaned and refurbished, seven food and clothing drives, four luncheons for local veterans or first responders and two home building projects.

This is the second Day of Service event conducted by Tennessee co-ops. In its two-year history, 756 employees have volunteered more than 2,000 hours in service to their communities.

Photos from the 2018 Day of Service event:

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UPDATED – Tennessee co-op volunteers assist with Hurricane Michael Recovery

NASHVILLE – More than 180 volunteer lineworkers from 20 electric co-ops across Tennessee are heading to Georgia, Florida and North Carolina to assist with Hurricane Michael recovery efforts. This is the largest storm assistance effort made by Tennessee co-ops in recent years.

The dangerous Category 4 hurricane brought strong wind, significant rainfall and widespread power outages to the northern Gulf Coast. Tennessee co-op are assisting with efforts to reconstruct the severely damaged electric infrastructure in the region.

The Tennessee Electric Cooperative Association in Nashville coordinates requests for mutual aid and makes travel and lodging arrangements for crews who respond.

“Working on high-voltage lines on a sunny day is dangerous, but in disaster conditions the danger is exponentially greater,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “Please keep these brave volunteers in your prayers.”

Below is the most up to date list of crews and their locations:

  • Appalachian Electric Cooperative – 11 lineworkers to Talquin Electric Cooperative in Quincy, Florida
  • Caney Fork Electric Cooperative – Nine lineworkers to United Energy in Statesboro, North Carolina
  • Chickasaw Electric Cooperative – Five lineworkers to Grady Diverse Power Cooperative in LaGrange, Georgia
  • Cumberland Electric Membership Corporation – nine lineworkers to Grady Electric Membership Corporation in Cairo, Georgia
  • Duck River Electric Membership Corporation – 14 lineworkers to Colquitt Electric Membership Corporation in Moultrie, Georgia
  • Fayetteville Public Utilities – eight lineworkers to Diverse Power Cooperative in LaGrange, Georgia
  • Fort Loudoun Electric Cooperative – eight lineworkers to Mitchell Electric Membership Corporation in Camilla, Georgia
  • Gibson Electric Membership Corporation – eight lineworkers to Carroll Electric Membership Corporation in Carrolton, Georgia
  • Holston Electric Cooperative – nine lineworkers to Talquin Electric Cooperative in Quincy, Florida
  • Middle Tennessee Electric Membership Corporation – eight lineworkers to Excelsior Electric Membership Corporation in Statesboro, Georgia
  • Mountain Electric Cooperative – 12 lineworkers to Mitchell Electric Membership Corporation in Camilla, Georgia
  • Plateau Electric Cooperative – four lineworkers to Gulf Coast Electric Cooperative in Wewahitchka, Florida
  • Powell Valley Electric Cooperative – 12 lineworkers to Suwannee Valley Electric Cooperative in Live Oak, Florida
  • Sequachee Valley Electric Cooperative – 10 lineworkers to Mitchell Electric Membership Corporation in Camilla, Georgia
  • Southwest Tennessee Electric Membership Corporation – 10 lineworkers to Grady Electric Membership Corporation in Cairo, Georgia
  • Tennessee Valley Electric Cooperative – 10 lineworkers to Mitchell Electric Membership Corporation in Camilla, Georgia
  • Tri-County Electric Cooperative – eight lineworkers to Diverse Power Cooperative in LaGrange, Georgia
  • Tri-State Electric Cooperative – five lineworkers to Mitchell Electric Membership Corporation in Camilla, Georgia
  • Upper Cumberland Electric Membership Corporation – 11 lineworkers to Flint Energies in Warner Robbins, Georgia
  • Volunteer Energy Cooperative  – 10 lineworkers to Sumpter EMC in Americus, GA
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TECA submits e-connectivity comments to RUS

NASHVILLE – The Tennessee Electric Cooperative Association submitted feedback regarding the Rural Utilities Service’s e-Connectivity Pilot Program during a comment period provided by the RUS.

The e-Connectivity Pilot Program was was made possible by a $600 million appropriation from Congress in the Consolidated Budget Act of 2018. The USDA is working to create new funding and finance offerings through this pilot program to expand rural broadband in underserved rural and tribal areas.

Comments made by TECA to the RUS highlighted the successes of Tennessee’s electric co-ops in broadband and the need for additional funding to speed deployment. TECA affirmed comments made by the National Rural Electric Cooperative Association and requested consideration of seven additional suggestions:

  • Projects that achieve universal service inside a provider’s service territory should be incentivized over similar projects that leave significant gaps in coverage between communities
  • Projects that leverage additional investment in broadband infrastructure beyond the receipt of a grant itself should be incentivized over a similar project(s) that rely solely upon the program itself for its existence
  • Allow applicant(s) an opportunity to rebut any challenges of eligibility by third parties
  • Allow flexibility to award funds to any party participating in a partnership or other project that involves multiple eligible parties
  • Allow grants to be payable in multiple awards, rather than a single payment, if so desired by the recipient
  • Allow a small percentage of grants to be usable for start-up expenses of subsidiary entities
  • Provide loan products inside the pilot program at an interest rate below what is otherwise available by existing RUS programs, including FFB loans, or other more advantageous terms.

“We believe that the RUS’s e-Connectivity Pilot Program has the potential to have a meaningful impact on the expansion of broadband in rural Tennessee,” says Mike Knotts, vice president of government affairs with the Tennessee Electric Cooperative Association. “We appreciate Secretary Purdue and the team at RUS for considering the input of Tennessee’s electric cooperatives.”

You can read TECA’s full comments below.

[pdf-embedder url=”https://www.tnelectric.org/wp-content/uploads/2018/09/TECA-RUS-e-Connectivity-Comments.pdf” title=”TECA RUS e-Connectivity Comments”]

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UPDATED – Tennessee co-ops rally volunteers to assist with hurricane recovery

NASHVILLE – More than 140 lineworkers from 15 Tennessee electric cooperatives will soon be heading to North Carolina to assist with Hurricane Florence recovery efforts. The massive hurricane is expected to leave widespread damage across much of the Atlantic seaboard.

Tennessee electric co-op crews are planning to leave from multiple locations beginning on Wednesday morning. Most will ride out the storm in western or central North Carolina before heading further east once the storm passes through. It is unclear how long they will be in North Carolina.

“Our crews have a reputation for responding quickly, working safely and showing compassion to those who have been impacted by storms like this one,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Associaiton. “We commend their desire to serve and wish them well in the days to come.”

Please keep the people of the Atlantic coast, as well as our volunteer lineworkers and their families, in your thoughts and prayers in the days ahead.

Below is a list of Tennessee co-ops providing assistance and the name and location of the co-op they will be helping. This information is likely to change as the storm nears the coast.

  • Appalachian Electric Cooperative in New Market, Tenn. – 12 lineworkers to Piedmont EMC in Hillsboro, North Carolina
  • Caney Fork Electric Cooperative in McMinnville, Tenn. – eight lineworkers to Pee Dee EC in Wadesboro, North Carolina
  • Chickasaw Electric Cooperative in Somerville, Tenn. – five lineworkers to Randolph EMC in Asheboro, North Carolina
  • Cumberland Electric Membership Corporation in Clarksville, Tenn. – 10 lineworkers to South River EMC in Fayetteville, North Carolina
  • Duck River Electric Membership Corporation in Shelbyville, Tenn. – nine lineworkers to Lumbee River EMC in Red Springs, North Carolina
  • Fayetteville Public Utilities in Fayetteville, Tenn. – eight lineworkers to Tri-County EMC in Dudley, North Carolina
  • Holston Electric Cooperative in Rogersville, Tenn. – eight lineworkers to Lumbee River EMC in Red Springs, North Carolina
  • Meriwether Lewis Electric Membership Corporation in Centerville, Tenn. – five lineworkers to Cape Hatteras Electric Cooperative in Buxton, North Carolina
  • Middle Tennessee Electric Membership Corporation in Murfreesboro, Tenn. – 15 lineworkers to Carteret-Craven EC in Newport North Carolina
  • Plateau Electric Cooperative in Onieda, Tenn. – 13 lineworkers to South River EMC in Fayetteville, North Carolina
  • Sequachee Valley Electric Cooperative in South Pittsburg, Tenn. – 10 lineworkers to Four County EMC in Burgaw, North Carolina
  • Southwest Tennessee Electric Membership Corporation in Brownsville, Tenn. – 10 lineworkers to Jones-Onslow EMC in Jacksonville, North Carolina
  • Tri-County Electric Membership Corporation in Lafayette, Tenn. – eight to Energy United in Statesville, North Carolina
  • Tennessee Valley Electric Cooperative in Savannah, Tenn. – 10 lineworkers to Central EMC in Sanford, North Carolina
  • Upper Cumberland Electric Membership Corporation in Carthage, Tenn. – 12 lineworkers to Four County EMC in Burgaw, North Carolina
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