RE-ELECT REC DIRECTORS
Proven Effective Leadership
We all know that REC is a fantastic organization, staffed by some of the finest, most dedicated people in the world. We also know that these are challenging times in the electric industry with rapid changes in technology, regulations, and oversight.
As many are fond of saying, elections have consequences and this year’s election is extremely important in determining the future of REC and its ability to continue to provide safe, affordable, reliable, and sustainable electricity. Over the years, REC has been fortunate to have PROVEN, EXPERIENCED, and EFFECTIVE BOARD LEADERSHIP. According to our recent JD Power customer satisfaction surveys, the vast overwhelming majority of you are satisfied with the direction of the Cooperative and our stewardship of YOUR COOPERATIVE.
YOU have a choice: to continue with PROVEN, EFFECTIVE, EXPERIENCED leadership or allow your Cooperative to be taken over by agenda driven candidates who don’t have YOUR best interests front and center. These candidates receive funding and support from environmental groups and have used hyperbole, half-truths, and innuendo to malign the Board and the Cooperative. A “Fact vs Fiction” table below will set the record straight and provide a clear choice.
The choice is yours and it’s a very important choice. The three of us are dedicated to continuing the outstanding leadership you deserve and we humbly and respectfully request your vote.
All the best,
J. Mark Wood
FICTION VS FACT - THE CHOICE IS YOURS
|THE BOARD IS NOT-TRANSPARENT AND OPERATES IN SECRECY|
|The Board doesn't provide financial information or information on Capital Credits||A recent initiative by YOUR Board led to the creation of a "Governance Center" and "Document Center" available at www.myrec.coop. These pages include recent audited financial statements, annual reports, the Cooperative Strategic Plan, the Cooperative's Capital Credit policy as well as recent tax-returns (as a not for profit entity, the Cooperative files a Form 990)|
|The Board is sitting on $400 million in Capital Credits it refuses to return to Member-Owners||Each year, the Board calculates the optimum amount of capital credits to return to Member-Owners consistent with our anticipated capital needs for the upcoming years. The more Capital Credits which are returned increases the need to borrow funds which reduces future capital credits. The $400 million RePower REC refers to represents your share of Cooperative assets -- the poles, substations, infrastructure, adn other assets used to meet your electricity needs.|
|The Board doesn't communicate with Member-Owners||
|THE BOARD IS OVERCOMPENSATED AND BOARD PAY IS NOT DISCLOSED||Electric Cooperative Directors receive compensation for their services just as Directors of public companies do. Compensation is necessary to recruit and retain leaders with the requisite skills and knowledge who are willing to devote the time necessary to serve. REC's Director's compensation policy is included in the Governance Center at www.myrec.coop. Additionally, individual Director compensation is available in the Form 990 tax filings. REC's Board compensation is on the low-side compared to other simaliarly sized electric cooperatives and, unlike some cooperatives, this Board receives no health insurancec benefits.|
|THE ELECTION PROCESS IS NON-TRANSPARENT AND UNFAIR||The process for electing directors is simple and member-friendly, and all members are encouraged to participate in the director election. Members can attend the meeting and vote in-person, or they can participate by proxy. The proxy can be submitted either by mail, or online by members who are enrolled in MyREC SmartHub. The proxy form and instructions are very clear in the mechanics of proxy voting: members can check a box and write in the name of another member to whom they assign their vote, or check a box to assign their vote directly to the board of directors. The instructions clearly state that if a member does not check either of the above options, then the proxy vote will be assigned to the board of directors. Members may instruct their proxy holder, either the board or another person, how to cast their vote, or members can allow their designated proxy to decide on their behalf.|
|THE BOARD ENTERED INTO A 45 YEAR POWER SUPPLY CONTRACT WHICH RESULTS IN HIGHER POWER COST.||The RePower leaders sent the contract to a third party for review. This third party performed an imcomplete and inaccurate analysis based on a one-year snapshot. This long term contract provides increased hedging against future price hikes and protects our Member-Owners. Think of it as a fixed rate mortgage vs adjustable rate. An adjustable rate mortgage may be less expensive at a given point in time but doesn't provide the hedging that a fixed rate mortgage does--an adjustable rate is subject to widely gyrating rates/ Bottom line, we, as experienced leaders in the industry belive the power purchase contract we negotiated provides teh maximum protections possible.|
|REC's BOARD ISN'T INTERESTED IN RENEWABLES OR SUSTAINABILITY||