Lake Region Electric Cooperative
Lake Region Electric Cooperative (LREC) held its 86th annual meeting on Thursday, April 13, at Life Church in Fergus Falls, with satellite in-person meetings in Frazee and Parkers Prairie, together with an online attendance option via livestream. Approximately 1,200 people attended the event either in-person or via livestream—marking the second year in a row that attendance for LREC’s annual meeting has been around 1,200. Providing several meeting attendance options has worked very well these past two years, and LREC members who were unable to attend the live meeting are encouraged to watch the annual meeting video at www.lrec.coop/annualmeeting.
Before the meeting and during the meal catered by Betty’s Pantry, Tim Eggebraaten, known as the “Off Duty Chief,” kept the members and attendees entertained by playing live music and interacting with the crowd.
Meeting Topics
LREC’s Board Chair Tom Jennen opened the meeting and spoke about being grateful for his opportunity to serve on a board elected by LREC members. Jennen stated that the board must be proactive and continue to look at ways to continue the co-op's well-being. Jennen highlighted that LREC’s members come first and thanked LREC’s employees who serve the membership. Jennen recognized the retirement of District 8 director Sid Wisness and his 15 years serving the LREC members. Jennen was honored to be part of a cooperative that received national recognition by being presented with the annual 2022 National Rural Electric Cooperative Association Cooperative Purpose Award, which recognizes electric co-ops that work with their membership to make outstanding contributions that result in visible, lasting improvements to the quality of life and the purpose of the cooperative in the community. Jennen stated that the LREC board of directors approved general service rate changes that will go into effect in September. Jennen concluded his remarks by stating that the member-owners of LREC are the reasons for LREC’s existence, and that LREC would not be in business if not for all its member-owners.
LREC CEO Tim Thompson presented ways LREC continues to engage its members and mentioned positive feedback received from the membership during LREC’s last member survey. Thompson expressed LREC’s priority on providing reliable service and highlighted the many upgrades made to transmission lines and substations, and that the upgrades allow LREC members to experience improved reliability. Thompson provided the members with a look at innovative technology that LREC has invested in to help with its mission of prioritizing reliability. Thompson discussed LREC’s rate history and projections, noting that LREC’s rate stabilization plan has added new revenue streams that benefit LREC members.
Thompson explained in detail the reasons for the LREC rate changes that will go into effect September, most notably the increased wholesale cost of power and higher costs of materials. Thompson explained the Cost-of-Service Study completed by an independent rate consultant that guided the decision to make rate changes effective later this year in September. Thompson reported that the cooperative was in a financially strong position and that a record amount of $1,859,794 of capital credits was paid to members in 2022. Thompson concluded his remarks by expressing his appreciation of “Local People Working Together,” in which the member-owners come together to elect their directors who make decisions on a local level that are in the best interests of the co-op's membership.
Special guest Zac Ruzycki, Director of Resource Planning for Great River Energy (GRE), presented on GRE’s generation resources, including key reliability assets such as GRE’s gas peaking generation. Ruzycki discussed the Carbon Free Standard law passed in Minnesota earlier this year and indicated that GRE is well positioned to be in compliance with the law with minimal action because of decisions that GRE and its members have made since 2010 in anticipation of a carbon constrained policy landscape. Ruzycki concluded his presentation by sharing that GRE is (1) competitively positioned for compliance with new governmental policies; (2) early actions and decisions in past years have yielded long-term rewards; and (3) that GRE has a diverse resource mix that addresses energy and reliability needs.
Director elections
LREC welcomes one new director, Jim Gronbeck, who was elected by acclamation in District 8. Incumbent director Cecil "Bud" Hensel of District 2 was elected by acclamation, and incumbent director Patrick Meyers of District 5 was elected by acclamation. Gronbeck will fill the open seat left by Sid Wisness, who retired after serving as District 8 Director for 15 years.
Photos
Photo 1: An overhead view of LREC’s membership enjoying their dinner at Life Church in Fergus Falls.
Photo 2: CEO Tim Thompson delivers his address during the LREC 86th Annual Meeting on April 13.
Photo 3: While waiting to enter the 86th Annual Meeting at Life Church in Fergus Falls, LREC members took in the sight of two bucket trucks holding up the American flag.
