Annual Meeting

Newark, Ohio, May 19, 2008 – Licking Rural Electrification, Inc. (the Cooperative) held its 72nd Annual Meeting at the C-TEC facility in Newark, Ohio. Entertainment prior to the meeting was provided by the Hettinga Family from Utica, Ohio. The meeting began with a call to order by Chairman Arland Rogers, followed with an invocation by Mr. Jack Schmidt, the Pledge of Allegiance led by Mr. Richard Gummer and the singing of the National Anthem. The meeting was conducted using the Cooperative’s traditional democratic process.

Chairman Rogers welcomed all of the attendees and read a copy of the Official Notice of the Annual Meeting.  The minutes of the previous meeting were distributed along with an approval of the 2007 minutes. Mr. Rogers discussed the responsibilities of the Board of Directors and reviewed the Strategic Plan implemented by the Board. The goals mentioned concerned safety, service to members, assimilation of technology, distribution reliability, member owned communications, and a financial plan. He also read the revised Mission and Vision Statements created by the Board and noted a number of goals that were met by management of the Cooperative during 2007. Mr. Rogers then introduced the Board of Directors and invited Mr. David Potter, CEO of The Energy Cooperative to speak.

Mr. Potter introduced and thanked his staff and his wife, Camilla. Mr. Potter discussed issues of Safety and announced that through the hard work and dedication of employees, Licking Rural Electrification became Safety Accredited in 2007 by the National Rural Electric Cooperative Association (NRECA).

Mr. Potter followed by answering 3 of the most often asked questions of the Cooperative’s members. Mr. Potter discussed the Gas Cost Recovery (GCR) rates and explained the GCR is the cost of natural gas at the wellhead, the cost of transporting the gas to the service territory and the over/under

recovery of gas costs from previous months. It is important to note that higher GCR adjustments are not rate increases. The Cooperative earns its margin through the distribution of gas, not through its purchase and resale

 Mr. Potter assured the members that The Energy Cooperative is working hard to find ways to reduce the gas cost while providing reliable service, but he also showed great concern for future energy resources and told members to be prepared for the impending increase in natural gas and other energy prices. He urged members to contact their elected officials regarding reliability of service and rising rates.

Mr. Potter addressed the question of Capital Credits and stated that according to Code, the Cooperative shall pay Patronage Capital to its members if the paying out of capital does not harm the financial stability of the Cooperative. Questions concerning members on fixed incomes were answered by providing ideas for energy conservation, explaining the budget billing program offered by the Cooperative, and assistance programs such as HEAP and LEADs in Licking County.

Mr. Nelson Smith shared the audited highlights of the 2007 financials which included total revenue and refunds. Mr. Daniel Gunsett, legal counsel, reviewed the Amendment to Code regarding easements and right-of-ways. The amendment was approved by the members in attendance.

Mr. Ken Keylor from Buckeye Power was the guest speaker for the evening. Some key points from his speech were supply and demand for electricity, limited options for new capacity, viability of existing coal-fired units, and the urging of members to write letters to legislation concerning clean energy technology funding and development.

The Chairman of The Energy Cooperative Round-Up Foundation, Mr. Jay Barker, provided a presentation on the awards given in 2007 which totaled $190,410.00 He quoted past recipients of Round-Up awards and thanked members of the Cooperative for generously rounding up their bills in order to provide the charitable funds available for the Round-Up Foundation.

Ms. Margy Klein presented Scholarship Awards as follows:

Winners of the $2,000 scholarships:

Emily Cassell of Mount Vernon High School. 

Natalie Szemetylo of West Muskingum High School.

Russell Seidell of Granville High School.

John Graham of Tri Valley High School

Runner Ups received $1,000 awards:

Madison Benner of Heath High School.

Jordan Shriver of East Knox High School.

Stephen Bartels of Centerburg High School is the recipient of a $500 scholarship in conjunction with Touchstone Energy® for Special Achievement.

Sean McCoy, a home-schooled student, was selected to participate in the 2008 Youth Tour, which is an all-expense-paid, week-long trip to Washington, DC during the month of June.  The winner of the 2007 Youth Tour Trip, John Graham of Tri Valley High School, gave a speech during the meeting and told of his experience during his trip. He thanked the Cooperative and its members for the opportunity to participate.

The Board of Director elections were announced by the Teller Committee as follows:

District #1- Donald Hawk

District #6 – John Klauder

District #8 - Gary Clark

With deep appreciation, Mr. David Potter asked the Board of Directors to approach the stage as he presented Mr. Arland Rogers with an award for 36 years of service on the Board. Mr. Rogers retired in May of this year as Chairman. Mr. Potter thanked Mr. Rogers for his dedication over the years, through turbulent times and good times.The meeting was then adjourned by Mr. Rogers, followed by the drawing of door prizes given to the Cooperative’s members.