ANNUAL MEMBERSHIP MEETING
HELD AUGUST 11, 2007
THREE RIVERS COMMUNITY COLLEGE

The Annual Membership Meeting was held on Saturday, August 11, 2007 at the Three Rivers Community College in Poplar Bluff, MO.   A total of 1,047 members registered for the Meeting with an estimated 3,000 individuals present.  The activities included a Directors election, business meeting, entertainment, attendance prize drawings, and health screenings.  All present seemed to appreciate the air conditioned facilities of Three Rivers Community College.
 
DIRECTOR ELECTION
                                                                    
The Cooperative had four director positions to be filled at this year’s Annual Meeting and the following members were elected to a three year term on the Board of Directors:                       
1.  Andy Clark – Poplar Bluff            2.  Speedy Ketcherside - Wappapello
3.  Max Clayton - Campbell             4.  Allen Below - Dexter

The Cooperative has a total of twelve directors and the other eight Directors are as follows: 
1.  Denver Ligons - Ellsinore            2.  Mark Yarbro – Poplar Bluff
3.  Leon Martin - Naylor                   4.  Ed Crow - Dexter 
5.  J. T. Moody - Clarkton                6.  Curtiss Webb - Gatewood
7.  Tim Yates – Mill Spring              8.  Jeff Holloway - Puxico

Following the Annual Business Meeting of the Cooperative, a reorganization of the Board of Directors was held and the following officers of the Board were elected:
Mark Yarbro – President
Leon Martin – Vice President
Speedy Ketcherside – Secretary/Treasurer

COOPERATIVE BUSINESS MEETING

Report of the President – Mark Yarbro:
During the Business Meeting President Mark Yarbro reported that the Cooperative ended 2006 in a strong financial condition and had begun 2007 in a good financial position.  The financial records of the Cooperative were mailed to each member and were audited by Kraft, Miles, & Tatum, Certified Public Accountants.  President Mark Yarbro reported that the Cooperative ended 2006 with an operating margin and has not had a rate increase since 2004.
President Yarbro reported that the Cooperative continued to grow with the addition of 346 consumers and 46 miles of line in 2006.  The Cooperative also refunded capital credits again in 2006.
President Yarbro told the members that the automated meter reading system was completed except for 700 meters and the system had been an added service for the members and would improve the operating efficiency of the Cooperative.  The Cooperative’s annual operating expense was $251 per consumer compared to the state average of $359 per consumer.  President Yarbro thanked the members for the opportunity to provide their electric service and thanked the employees for their dedication.
Report of the Manager – Stan Estes:
General Manager Stan Estes reported on the results of a recent member survey which revealed that the members had been very satisfied with the electric service provided by the Cooperative.  Cooperative members had given the Cooperative an overall rating of 9.39 out of a possible 10 for the service they received.  The members would like fewer outages, shorter outages, and fewer line blinks but indicated that the Cooperative employees had quick response to outages.Manager Estes told the members that the Cooperative had experienced a long period of time in which the Cooperative had only small increases in operating cost and only a few rate increases.  The cost to produce electricity has remained stable for a number of years; however, this will change in the future.
The Manager reported that the Cooperative had increased rates to it’s members in 1991, reduced rates in 1995, and increased rates in 2004.  The Cooperative’s current rates are similar to those it had in 1991.  In 2005, the average cost paid by residential consumers in the United States was 9.5¢ per Kwh while in Missouri the average was 7.1¢ per Kwh and at Ozark Border Electric the average paid was 6.5¢ per Kwh in 2005 and again in 2006.
The Manager said the challenge facing the Cooperative is one of improving the quality of service to a membership with increased electrical needs during a period of rising power cost.  The Manager pointed out that the Cooperative members in Missouri are fortunate in that they own generation facilities and do not have to depend on someone else to produce the power they use.
The Manager reported that the power cost for Ozark Border represents 58% of the cost to operate the Cooperative and that the Cooperative had been notified to expect an increase in power cost in 2008.  The Manager reviewed with the members that the reasons for the increase are as follows:
1.  One is the increased cost of coal along with increased transportation cost to deliver coal from the Wyoming coal mines to the Missouri power plants.  Missouri Cooperatives’ coal fired generating plants use about 10,000,000 tons of coal per year, and in a recent 12 month period coal cost increased $5.00 per ton.
2.  The cost of natural gas which is used in peaking plants has increased in recent years.
3.  New EPA regulations will require the installation of more environmental equipment on Missouri power plants at a cost of $330 million.
4.  Another generating plant will be needed by 2013 and this will further increase the cost of producing electricity for Missouri Cooperatives.
5.  Because of dryer than normal conditions, the cost of hydro power has increased along with a decrease in the amount available.
6.  New transmission lines are being built to handle the increased load of our members.

     Ozark Border Electric Cooperative is owned by the same members it serves. Therefore, anytime the Cooperative and its members can work together to reduce operating costs, the savings benefit both the Cooperative and its members. Some suggestions on ways to work together are as follows:

1. CURRENT ADDRESS AND TELEPHONE NUMBERS - It is important that the Cooperative is able to contact its members both by mail and by telephone. Your help in providing the Cooperative with a current address and current telephone number results in improved service and reduced operating cost. During outages the telephone numbers are a quick and easy way of identifying your account. If your telephone number is on file all you have to do is give us your number and tell us the power is off. Call any of the Cooperative's five offices or 1-800-392-0567 with your correct address or telephone number.

2. RIGHT-OF-WAY CLEARING - One of the largest expenses of the Cooperative is the cost of cutting or trimming trees near the power lines. One of the major causes of power outages is trees or tree limbs. Tree limbs contacting the electric lines are not only unsafe buy they also cause line loss. The Cooperative has over 5,738 miles of right-of-way to keep cleared and we need your help. First, do not plant trees under or near power lines. Second, when the Cooperative contractor, Townsend Tree Service, comes in your area let them cut any tree under or near the power line. A tree near a power line is a never-ending expense, which has to be trimmed every three to four years. The Cooperative is committed to keeping the right-of-ways clear in order to reduce outages and line loss, but we need your help.

3. REPORT DAMAGE DURING OUTAGES - The Cooperative provides service to over 37,500 consumers located on 5,738 miles of line, and when an outage occurs it is helpful if members report any damage they observe. Never touch or get near a downed power line, always report it to the Cooperative immediately. Your help can reduce outage time and operating cost.