SECO Energy’s Engineering department recently embarked on a solar and battery energy storage pilot project. The cooperative contracted local solar array vendor Solar Trek to construct a 6,000-watt solar array and battery storage system at the Sumterville substation at its headquarters location. The project was designed and constructed over a nine-month period this year.
The new 6,000-watt solar array is ground mounted near Highway 470 to offset the utility-supplied power needed to serve the load in the switchgear enclosure. The energy storage batteries are housed in a cabinet outside of the substation switchgear. On average, the solar panels will produce 25 kilowatt hours (kWh) per day or about 750 kWh per month. Each panel is connected to a micro inverter that maximizes efficiency by converting DC to AC power at the panel. The battery storage is configured for charge by the solar system. This stored energy is released onto SECO’s electric system twice per day, in the morning before 9 a.m. and in the evening before 6 p.m.
Solar systems produce energy from the sun in the form of direct current (DC). To convert DC power to alternating current (AC) that is usable in homes and businesses, inverters are installed on each solar panel. The pilot project offers a variety of data for SECO’s Engineering staff to collect and study. SECO will measure the amount of AC power produced by the panels and the amount of energy the battery inverters will use to convert AC to DC then back to AC voltage. Also, SECO will assess the amount of energy required to charge the batteries and how much energy the battery inverter uses to convert DC to AC voltage. In its first month of operation, the system has produced 700 kWh of energy and approximately 300 kWh has flowed back into the grid.
CEO Jim Duncan stated, “The goal of the pilot project is to learn more about solar arrays and battery storage systems. This knowledge will better prepare SECO employees who assist members interested in solar investments at their homes or businesses. Ultimately, we will monitor the data collected to compare the costs and benefits of energy storage and determine if the efficiency of the project will lead to SECO investing in future large-scale solar enterprises.”
SECO Energy is an advocate for members who decide to invest in a member-owned solar array and want to interconnect with SECO’s electric facilities. The not-for-profit cooperative has devoted a section of its website to helping members understand their solar investment prior to committing to a project. Visit our Solar Power page for an overview of solar panels, inverters and net metering. Members can also use the Solar Estimator to determine the potential reduction in utility-supplied power they may expect after installing a solar system.
“Like” SECO’s Facebook page and “follow” @SECOEnergy on Twitter for news releases and cooperative updates.
Cooler temperatures arrived in Central Florida in November 2019. The monthly average temperature was a comfortable 67 degrees – which was the same average temperature in November 2018. The highest daily recorded temperature was 90 degrees and the lowest daily recorded temperature was 46 degrees. That’s a big fluctuation between hot and cold so both heating and cooling units likely ran in November.
November 2019’s average high temperature was 78 degrees with an average low temperature of 57 degrees. In November 2018, the average high temperature was 77 degrees while the average low temperature was 58 degrees.
Parts of the U.S. experienced record-breaking cold temperatures. Locally, we enjoyed 17 days of high temperatures over 80 degrees in November 2019. Rainfall for the month was 1.18 inches, which was down slightly from November 2018’s total of 2.21 inches.
The arctic fronts that arrived in Florida during November 2019 brought some very cold early morning temperatures. Members who turned on the heat during these temperature drops can expect to see an increase in energy consumption on their November billing statement. ENERGY STAR recommends setting your heat to no higher than 68 degrees during the winter months.
With the cooling temperatures, now is a good time to schedule an HVAC technician to service your unit. A well-maintained unit runs more efficiently and helps lower your energy usage. Read more about HVAC service and maintenance in November SECO News.
December 2019 forecast:
December 2019 is forecast for an average high of 72 degrees and an average low over 52 degrees with seven or eight days dropping into the 40s. Precipitation levels are forecast to be low with the best chance for rain at the beginning of the month.
To check historical usage, log into SmartHub to view past bills and consumption charts. If your usage is high, SECO offers several energy-efficiency tools to help you identify energy wasters. Take the Home Energy Assessment to receive a detailed email tailored to your home’s features and lifestyle. The energy-saving advice will provide low-cost ways to decrease your usage – and your electric bill.
To easily calculate how much energy your appliances, lighting, electronic devices, and other energy-using items in your home consume, use the Energy Estimator.
SECO Energy is a not-for-profit electric distribution cooperative serving 210,000 homes and businesses throughout seven Central Florida counties. We take pride in providing service to you, our member-owners, and most-valued Key Accounts. As your advocate, the SECO Energy Key Accounts team would like to inform you in advance of rate changes taking effect on January 1, 2020. We are communicating this to you BEFORE the public announcement to our general membership. We realize that many of you may have completed your budgeting process for the coming year, and we apologize for the untimeliness of this news. Unfortunately, our recent contract renewals with third-party vendors has prompted changes necessary for us to maintain a healthy cooperative and reliable electric service for your businesses.
Our 2020 outlook is a mix of good and bad news. The good news is wholesale power is stable, so we’re able to apply an increased Power Cost Adjustment (PCA), aka Hot Bucks, credit to your bill. Beginning January 1, the PCA will increase from $0.01570 to $0.02070. Wholesale power costs represent approximately 68 percent of your SECO Energy billing. The remainder of your bill is for cooperative operations including maintenance, restoration, construction and upgrades to the electrical distribution system on which you depend for reliable service. This is where the mix of bad news comes in. Our costs to construct and maintain the electrical distribution system are rising by a whopping 25 percent for 2020.
The labor market is very tight and contractors who perform maintenance are paying higher labor costs to keep workers on the payroll. This isn’t just a SECO Energy issue. Nationwide electrical utility contractors are struggling to maintain sufficient workforce. One of the more visible reasons was spurred when California utility PG&E was court ordered to significantly increase system maintenance and tree trimming to reduce fire risk. Florida lost a significant amount of its utility-related contract labor workforce to California and we are paying the price, despite a booming economy.
Our 2020 construction workplan continues to build upon our mission to construct, maintain and restore the electric system. Improvements such as storm hardening and tree trimming improve SECO Energy system reliability. System additions, upgrades and automation enhance the service so that disruptions to you are minimal. We have scheduled improvements throughout our entire service area that will also support and enhance our fast-growing system. A detailed map of key projects is included in the upcoming SECO News.
Another reason for the adjustments to our rates is the trend of declining average energy consumption of both residential and commercial facilities. Energy awareness and efficiency improvements along with new technologies have had an impact on kilowatt hour (kWh) sales. This contributes to the financial challenges facing our not-for-profit electric cooperative. In addition, the most recent cost of service study indicates the cost to serve members has risen. These factors and more necessitate an adjustment. The Residential (RES) customer charge will increase 17 cents per day, General Service (GS) will also increase 17 cents per day and the General Service Demand (GSD) customer charge will increase 50 cents per day. The demand charge associated with the GSD rate will also increase 20 cents per kW and the energy charge will change from $0.08890 to $0.09050 but with the increased Hot Bucks (PCA) credit applied to the bill, your energy costs per kWh will decrease. Our lighting rates will remain the same moving into the new year but will also benefit from a larger PCA credit.
The collective increases will raise SECO Energy’s total revenue approximately 3.5 percent for 2020. All changes as noted will be posted on January 1 in our rate tariffs at SECOEnergy.com and changes ensure parity between rate classes. In the meantime, I have linked to a document summarizing the changes reflected in this communication. If you have questions or are interested in a rate analysis to explore the impact of these changes on your billing, please contact your Key Accounts Consultant. We’re here to help!
The bottom line is that none of us like having to increase the customer charge or other components of your bill, but it is quite necessary to ensure continued service reliability. At the same time, we are pleased that stable fuel costs are allowing a larger Hot Bucks Credit (PCA) credit that will offset most or all of the increases depending on your respective usage level. These changes reflect the difficult balance between affordability and reliability.
For the full story on the 2020 Outlook – Rising Costs and a list and map of key projects, read Duncan’s Digest in the upcoming December SECO News.
Whitetail deer are the smallest members of the North American deer family. This deer is found throughout Florida from the Panhandle to The Keys. Whitetail deer are so named for its ability to raise its tail like a white flag to warn other deer of danger nearby.
This deer has sharp hearing, a keen sense of smell, an athletic body and an apprehensive personality. In summer, whitetail deer are a brownish-red, but in winter their coat changes to a grayish-brown color. This color change happens quickly in just a few weeks.
A whitetail deer’s size varies depending on its habitat. Florida’s adult male whitetail deer are much smaller than the reindeer that pull Santa’s sleigh. Its average weight is 115 pounds, but deer found in North Florida can reach upwards of 190 pounds. Females are generally smaller than males and average 90 to 120 pounds.
Males or “bucks” grow antlers each spring which are often used in fights to establish dominance and compete for females during breeding season. Females or “does” give birth to one to three fawns in late spring to early summer. In the wild, a whitetail deer will typically live about 5 years, but some have been found to be as old as 11 years.
The costs of virtually everything required to operate a modern electrical system are increasing rapidly. Our 2020 outlook is a mix of good and bad news. The good news is wholesale power costs are stable, so we’re able to apply a higher, member-favorable Power Cost Adjustment (PCA aka Hot Bucks) credit to your bills starting January 1. The bad news is the customer charge component for both residential and certain commercial members is increasing. The residential increase is 17 cents a day and the commercial customer and demand charge increases vary by rate type.
SECO’s mission is to construct, maintain and restore the electric system. We construct new facilities to meet growth demands. We upgrade and maintain the electric system to prevent outages. When an outage occurs, we restore as quickly as possible. Unfortunately, the costs associated with our three mission-critical focuses are rising at an alarming rate.
The 2020 construction work plan tops $55 million to construct new and upgrade existing infrastructure. Tree trimming, storm hardening and system maintenance work is performed largely by contract labor.
Construction and maintenance costs are rising by a whopping 25 percent in 2020. The job market is tight and contractors who perform system reliability maintenance are paying higher wages to keep workers on their payroll. This isn’t just a Florida utility phenomenon – it’s happening nationwide and was spurred when California utility PG&E was court ordered to significantly beef up their tree trimming and system maintenance programs to reduce fire risk. Florida lost a significant amount of its utility-related contract labor workforce to California and we are paying the price despite a booming economy.
SECO Energy is experiencing systemwide growth. Every part of our service territory requires infrastructure additions, system upgrades, storm hardening, tree trimming or communications improvements whether you live north, south, east or west of our headquarters.
You may be wondering why the financial benefit of customer growth isn’t covering rising costs, and it’s a valid question. The answer lies in the low average residential member’s energy consumption. In our service area, the average kilowatt hour (kWh) monthly consumption today is 1,037. This average consumption is much lower than our cooperative peers due to the growing Central Florida trend of energy efficient homes and businesses, use of natural gas appliances, and a strong increase in solar installations. Low energy consumption equals a lower monthly bill – that is good for our members. Less energy consumption and use of solar are also good for the environment. So, what’s the downside?
There are significant financial challenges to low kWh sales, even for a not-for-profit electric provider in a growth environment. We must adjust the monthly customer charge that is collected to cover the costs associated with the delivery of power and system reliability maintenance.
A recent cost of service study indicates that the cost of delivering power and maintaining infrastructure in the residential sector is nearly $35 a month. Currently, we apply an average residential customer charge of $25 a month (83 cents a day). We are bridging that gap by increasing this customer charge by 17 cents a day. Commercial account customer and demand charge increases vary based on the cost of service study. Those adjustments are detailed in our rate tariff online. These collective increases will raise total revenue by about 3.5 percent.
We have tightened our corporate belts to carefully monitor controllable expenses while striving to maintain system reliability, but as I mentioned previously and as you can see on the 2020 Project Map, new construction, upgrades and maintenance are required across our entire service territory.
In response to growth and to preserve reliability, we must build new substations, add power transformers at existing substations, upgrade voltage and conductor and convert critical overhead facilities to underground. The work plan includes building new communication towers, upgrading our radio system and installing fiber-optic cable and microwave backhaul for automated communications that facilitate faster outage restoration. To storm harden, we must support an aggressive pole replacement and vegetation management program systemwide. All of these components play critical roles in the delivery of reliable power and speedy restoration in the event of an outage.
The bottom line is that none of us like having to increase the customer charge, but it is quite necessary to ensure continued service reliability. At the same time, we are pleased that stable fuel costs are allowing a larger Hot Bucks Credit (PCA) that will offset most or all of the increase depending on your respective usage level. These changes reflect the difficult balance between affordability and reliability.
Sincerely,
Jim Duncan
Chief Executive Officer
Each year, SECO Energy employees participate in an employee-funded United Way Pledge Drive. Our employees understand that local community support is needed year-round and not only during the Christmas season.
The 2020 United Way Pledge Drive was an amazing success. SECO employees pledged $70,316 to United Way agencies in ten local counties. This total increased almost seven percent over 2019.
Citrus, Lake, Marion and Sumter Counties are where the bulk of our employees live and received the highest dollar amounts in donations. The breakdown by county is:
Join us in United Way’s mission to improve lives by mobilizing the caring power of communities to advance the common good. To donate or volunteer, visit United Way online.
Kathy Judkins – Senior Consultant for Civic, Charitable & Government Relations
Length of Service: 12 Years
“SECO IS COMMUNITY FOCUSED.” Kathy Judkins, Sr. Consultant for Civic, Charitable & Government Relations is a fourth-generation Floridian residing in Marion County. Her role with SECO Energy focuses on the cooperative principle of Concern for Community. Kathy manages annual SECO employee-giving campaigns and is excited that SECO is nearing the $1 million United Way contribution mark in the coming year. Kathy is honored to give hope to members in our service territory through SECO employee contributions to United Way. She also manages the Toys for Tots campaign companywide and is proud of SECO employees’ efforts to bring joy to children in our service territory on Christmas. Kathy also develops relationships with State Legislators and U.S. Congress members in Washington, D.C., to engage on issues related to the energy industry that could affect SECO’s ability to provide affordable, reliable service to our members.
SECO Energy and our employees are long-time sponsors of Relay For Life events that support the American Cancer Society. Our superhero employees participated in the Sumter County Relay For Life event on Saturday, November 2. The SECO team’s theme was “Superheroes Finish The Fight.”
In 2019, SECO raised $25,655 for the American Cancer Society to support cancer research, patients and caregivers and to fight for a cure.
Learn more about Relay For Life or donate to the American Cancer Society online.
SECO Energy and our employees are Making A Difference at Christmas by donating toys for local children through our Annual Marine Toys for Tots collection drive. Members also joined in the gift-giving by adding new, unwrapped toys in the donation boxes at our five Member Service Centers.
Toys donated through Toys for Tots are delivered to local children. The donated toys remain in our local communities. For many children, toys donated by our generous employees and members will be the only gifts under the Christmas tree.
SECO employees rallied to pack Santa’s sleigh by donating over 60 bicycles and tricycles for local children, along with hundreds of other gifts. New this year, SECO’s member-funded Pennies from Heaven program matched this number with additional bike purchases. It’s clear that our employees enjoy playing Santa for local children through Toys for Tots.
Thank you to our generous employees and members who are willing to share their Christmas joy and spirit with others. Making A Difference at Christmas brings happiness to children across our area.
December is the month of giving, goodwill and cheer. Keep the Christmas spirit alive in the new year by joining SECO Energy’s Pennies from Heaven program. By joining Pennies from Heaven, SECO rounds up your bill to the nearest dollar and donates those pennies to charitable causes in the communities we serve.
The small change donated through Pennies from Heaven supports financial assistance to worthy causes in our service area. Requests for Angel Fund bill payment assistance are administered through several area agencies by calling 211 or visiting 211 online.
This year, we are excited to announce that Pennies from Heaven will purchase bicycles and tricycles to match the number donated by SECO employees! Thus far, employees donated over 60 bikes and trikes and SECO will double the amount. This means hundreds of local children will get their Christmas wish of a new bike courtesy of SECO employees and SECO members who donate to Pennies from Heaven.
Enroll in Pennies from Heaven to put your extra pennies to good use in charitable causes in our communities. Just a few cents every month can change lives. Learn more about the program or enroll online.
SECO Energy District 7 Trustee Joseph Kusiak has completed two cooperative-focused board certifications from the National Rural Electric Cooperative Association (NRECA). Mr. Kusiak completed the courses required to earn both the Credentialed Cooperative Director (CCD) and the Board Leadership Certificate (BLC).
The NRECA’s CCD is the first certificate in a three-part education program for Board of Trustee members of Directors of an electric cooperative. The courses encompassed in the CCD curriculum prepare Trustees to fulfill their fiduciary duty as elected officials who serve on behalf of the cooperative’s members.
Trustee Kusiak also earned the BLC, the second part of NRECA’s Board of Trustees Director curriculum. The BLC courses focus on specific industry and governance issues that directly affect electric cooperatives today. Lessons focus on risk management, power supply, parliamentary procedure, technology and policy development.
Mr. Kusiak resides in Dunnellon and has been a SECO member since 2002. He was elected to serve as District 7 Trustee in a special election to fill a Board vacancy on October 25, 2018.
Trustee Kusiak stated, “I am honored to continue my professional development by completing the CCD and BLC courses offered through the NRECA. This knowledge will help me in my role serving as the District 7 representative on SECO Energy’s Board of Trustees. I appreciate the trust my fellow members have placed in me.”
CEO Jim Duncan stated, “Congratulations, Mr. Kusiak, for completing the Board certificate courses to advance your knowledge of the energy industry. SECO Energy is grateful for your time and dedication to serve the cooperative’s membership through your Board service. Thank you.”
Learn more about SECO Energy’s Board of Trustees and read a short bio about Joseph Kusiak. “Like” SECO’s Facebook page and “follow” @SECOEnergy on Twitter for news releases and cooperative updates.
SECO Energy congratulates District 3 Trustee Gerald Anderson who has completed the requirements to earn the Credentialed Cooperative Director (CCD) certificate from the National Rural Electric Cooperative Association (NRECA).
The CCD is the first of a three-part certificate program offered by the NRECA for Board of Trustee members or Directors. Participants complete courses on director duties and liabilities, understanding the electric business, board operations and processes, strategic planning and financial decision making. The courses encompassed in the CCD curriculum prepare Trustees to fulfill their fiduciary duty as elected officials who serve on behalf of the cooperative’s members.
Mr. Anderson has been a SECO member for five years and resides in The Villages. He was elected to represent the members of District 3 at a special election to fill a Board vacancy on May 13, 2019.
Trustee Anderson stated, “I am pleased to continue my education through the NRECA’s Director Certificate Program. The lessons I’ve learned help me to sharpen my skills in the energy industry. I look forward to continuing as the District 3 Trustee to represent my fellow SECO members.”
CEO Jim Duncan stated, “Congratulations, Mr. Anderson, on completing your Credentialed Cooperative Director certificate. I am grateful for your commitment to SECO members through your service on the SECO Board of Trustees. Thank you.”
Learn more about SECO Energy’s Board of Trustees and read a short bio about Gerald Anderson. “Like” SECO’s Facebook page and “follow” @SECOEnergy on Twitter for news releases and cooperative updates.
SECO Energy employees have participated in an annual employee-funded United Way Pledge Drive for local communities for decades. During the 2020 United Way Pledge Drive, SECO employees donated $70,316 that will benefit local families living in SECO’s service area.
The $70,316 pledged by SECO employees for the 2020 drive is an increase of seven percent from the 2019 pledges. The donated funds will be distributed among ten local counties. The bulk of SECO employees live in Citrus, Lake, Marion and Sumter Counties and received the highest dollar amounts in donations. The breakdown by county is:
Citrus: $7,799
Lake: $14,316
Marion: $23,002
Sumter: $21,559
Other Counties (Hernando, Levy, Orange, Pasco, Polk and Volusia): $3,640
CEO Jim Duncan stated, “SECO’s ever-generous employees and their commitment to the communities we serve made our 2020 United Way Pledge Drive extremely successful. Our employees understand that local families need financial support year-round, and United Way is instrumental in leading the charge to improve lives. I truly appreciate the efforts of our employees and applaud their generosity.”
SECO’s Senior Consultant for Civic, Charitable & Government Relations Kathy Judkins spearheads the annual employee giving campaign. She stated, “United Way’s mission is to improve lives by mobilizing the caring power of communities around the world to advance the common good.” To join SECO Energy employees in supporting United Way, visit them online to donate or volunteer.
Learn more about SECO Energy’s Concern for Community online. “Like” SECO’s Facebook page and “follow” @SECOEnergy on Twitter for news releases and cooperative updates.
Just in time for the holiday season, SECO Energy’s Board of Trustees approved a Capital Credits return (retirement) of $3.5 million to current and former members. Since SECO Energy was founded in 1938 as Sumter Electric Cooperative, Inc., the cooperative has retired more than $66.8 million to current and former members.
SECO Energy is a not-for-profit electric utility. As such, SECO’s almost 210,000 members own a portion of the cooperative’s equity and their energy purchases build patronage capital. Ownership is defined through the annual process of allocating each member’s share of the co-op’s margins from the prior year. The annual amounts for each member who purchases electric service during the year are referred to as Capital Credit allocations.
Capital Credits are the accumulation of all prior year’s revenue after the co-op’s operating costs and expenses are paid. These credits are allocated on a pro-rata basis to each SECO Energy member’s account as Capital Credits. Annually, SECO examines the financial position of the cooperative and makes a recommendation to the Board of Trustees on the “retirement” of Capital Credits.
CEO Jim Duncan stated, “This year’s Capital Credits retirement of $3.5 million means that a portion of the cooperative’s equity is being returned to current and former members. Each current member who receives a 2019 Capital Credits retirement will see the retirement amount on the November billing statement listed as a line item. Commercial members with retirements over $1,000 will receive a check.”
Current members will find their retirement on the November billing statement a on line item labeled “Gen. Ret. Credit.” Former members receiving a retirement will be mailed a check. Former members should update their current address with the cooperative to receive future Capital Credits returns.
This year’s $3.5 million Capital Credits retirement is a lower number than in years past. The cost of delivering power to new members, constructing new facilities to meet new members’ demand for power and maintaining existing infrastructure is rising faster than SECO’s revenues.
To learn more about Capital Credits online. “Like” SECO’s Facebook page and “follow” @SECOEnergy on Twitter for news releases and cooperative updates.
October 2019’s monthly average temperature was a warm 79 degrees – which was 2 degrees warmer than last October’s average temperature of 77 degrees. The highest daily recorded temperature was 92 degrees and the lowest daily recorded temperature was 65 degrees.
Central Floridian’s felt the effects of Tropical Storm Nestor in the middle of the month with increased rainfall. In October 2019, rainfall came in at 4.73 inches – up from 1.81 inches last October.
October 2019’s average high temperature was 87 degrees which matches the average high temperature for October 2018. The average low temperature was 71 degrees, which was 3 degrees higher than the average low of 68 degrees in October 2018.
Based on the warmer average temps and higher than projected kilowatt hour sales, many members received an electric bill for October usage that is higher than the bill received for usage in October 2018.
November 2019 forecast:
November 2019 is forecast for an average high of 78 degrees which is the same as the average high temperature in November 2018. The best chance for rain is at the beginning of the month and the forecast looks to be drier in November 2019 compared to November 2018.
If you want to check historical usage, log into SmartHub to view past bills and charts. If your usage is high, SECO offers several energy-efficiency tools to help you identify energy wasters. Take the Home Energy Assessment to receive a detailed email tailored to your home’s features and lifestyle. The energy-saving advice will provide low-cost ways to decrease your usage – and your electric bill.
To easily calculate how much energy your appliances, lighting, electronic devices, and other energy-using items in your home consume, use the Energy Estimator.
