REA Annual Meeting Summary
Hello Fellow OCREA Members,
You are receiving this email because you are on my old list of OCREA members, which is extremely outdated. Unsubscribe if you do not want to receive these ≈yearly emails. Welcome new subscribers!
The Ontonagon County REA held their annual meeting on June 27th. Here's my brief summary.
People Present
All board members attended except Randy Myhren (District 1/Green/Firesteel/Toivola), absent for illness.
Also in attendance:
- Dallas Aho, CEO
- Pat Greenly, attorney
- Staff: Kielsey Preiss and Alice
- Justin Sirenen, Operations Manager
- 58 members and 6 by proxy, constituting a quorum (≥50)
Board president Mike Gaunt presided.
Board Elections
Elections for district 2 and 6 directors were not contested, so board members Paul Koski (District 2/Ewen/Trout Creek/Lake Mine) and Mildred Ann Gasperich (District 6/Boston Location) remain on the board. Nominating petitions for the 2026 election were posted (late).
You can contact the director for your district with any questions about the coop; contact information is posted.
Dallas Aho remarks
This year the coop worked on a policy review, updated the easement system, finally finished the meter project to convert everyone to new meters, updated their cybersecurity, tied up lagging audit reports (delayed because for the CEO change). The office staff worked on cleaning up old document and updating and standardizing forms.
Board meetings are now open to members, in person and online. [Links to join are given on the news page, however I can't find a list of meeting dates and times. I've requested that this information be posted.]
The board is setting up a committee to review the Articles of Incorporation and Bylaws.
Financials
(apologies, my financial notes are not very detailed; see audit report.)
Statements distributed at the meeting, balance sheet and income statement:
Dallas Aho reported that "financials did not meet goals" for 2025 because of increased costs of power, operations, maintenance, and service; costs have increased while energy sales are flat. Costs were $7.6 M vs revenue of $6 M, for a margin of -499,212.
As a result, a rate study is underway to determine a rate increase. He says the new rates approved at the May 18th meeting are a "place holder", with numbers to be finalized after the study.
Potential increases (per May 18th meeting): monthly charge +$4 residential, +$6 seasonal and $0.0231/kWh.
As of this year, all OCREA power is purchased through a long-term contract with Wolverine Power Cooperative, which Dallas expects to stabilize costs.
The Cooperative is committed to purchase its electric power and energy requirements from the Wolverine Power Supply Cooperative, Inc. until December 31, 2035 in varying capacities over the contract period. This agreement contains renewal, termination and rate change clauses but does not include any requirements for minimum purchases to be made by the Cooperative. [audit report]
Operations
Justin reported that crews cleared 55 miles of right-of-way and responded to >80 member tree calls (and several other things that I didn't catch). People expressed appreciation for the operations crew.
Member Motions and Q&A
Motion 1: Member Mel Haskel asked for a member vote to request a "forensic audit" of REA books for 2022 and 2024, concerned about some expenditures
Discussion points:
- What is a forensic audit? CPA investigates books to look for fraud or improper expenditures.
- cost: $10-15K/year, about $30K for two years (approx $5/member).
- Bill H.: frivolous complaints over the last few years have cost lots of money for lawyers.
Voted down: 16 Yes/35 No.
Motion 2: Mel Haskel ask for the board to "consider reviewing the conflict of interest policy and report any lapses in following the policy.
Vote: approved 22 Yes/ 21 No.
Other member comments [I didn't get everyone's name; some of these, as well as written comments will eventually be addressed online].
- Several questions about the $17M debt, liabilities, accounting. (I missed the details.)
- Concern about data centers, don't let them increase our rates.
- A: REA has a "capped maximum tariff"; a new data center can't just jump in with a huge project. (I think this refers to the Rate Book section D-8.00, which allows "large power service" up to 150kW; data centers are much larger.)
- (me) I'm concerned that energy sales are flat given the global drive to electrify energy systems. What is the coop doing to promote heat pumps, batteries, and the new EVs that can provide backup electricity to a home? All these would save money for members and increase sales for the coop.
- Comment: we appreciate the linemen!
- Comment (Mel Haskel): Concerned about accountability, non-compliant nominating petitions, conflicts of interest.
- You can contact Mel at ontoreacoop@proton.me to learn more about his complaints.
- Comment: "board members of all organizations always have an agenda," the election notice was too late.
- Question about bush clearing in Hancock.
Other items
- The next board meeting is July 20 at 9:30. Check the news page for the on-line link. Next year's schedule will be decided at that time.
- This year there were no presentations from Wolverine, MECA, or youth travelers, as in past years.
- Many prizes were distributed. (Mel got the first one!)
- Lunch was lovely.
Energy Mix (my notes)
The global picture on energy is an incredible rapid conversion from dirty, expensive fossil fuels to clean "electrotech" systems (Ember Energy). The cost of solar panels has dropped by 95% since 2000 (cost of the panel per Watt; Our World in Data). Even our home panels, installed in 2015 are becoming obsolete—new panels have almost twice the capacity for the same size. Utility-scale battery cost have plummeted by 84% in just 10 years.
Australia is now offering three hours of free electricity per day in some places, because solar generation and battery capacity are producing more electricity than they can sell.
REA power now comes from Wolverine, which is currently 60% carbon-free (solar, wind, nuclear) and 19% renewable (solar and wind), but still includes gas and coal sources. Wolverine says it's committed to 100% carbon-free generation by 2030. New generation includes two large solar facilities, in Gaylord and Gemstone, each 150 MW, amounting to 22% of their current 1360 MW of generation. For the additional 58% of carbon-free power they are depending on a power purchase agreement from Palisades Nuclear plant, scheduled to re-open sometime in 2026. Sadly, their webpage doesn't indicate any plan to invest in new battery technology, which could take the place of their gas "peaking plants" and lower costs because they smooth the timing of generation and demand.
OCREA could save money for members and sell more electricity.
- Promote heat pumps. Households in Maine are saving over $1000/year by converting from propane heat to heat pumps.
- And electric heat doesn’t cause your house to explode, Charlevoix, Delta County, Kent County, Alto.
- Promote EVs. EVs are clean, quiet, dependable, and save money, Calculate your savings for converting to an EV.
- Promote Battery back-up. Battery power stations come in multiple sizes and are cleaner and safer than a gas generator.
Electrification is win-win for members and for the coop.
That's all for now.
Enjoy the summer.
- Sarah
p.s. This is my own unofficial email list; I do not have access to the coop's members list. Use the links here to subscribe or unsubscribe.
p.p.s. This newsletter is sent via my CRAG site, which is not affiliated with OCREA.