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CEO REPORT Answering Your Questions About Consolidation


B Y D E N N I S K R U E G E R G E N E R A L M A N A G E R


C


onsolidation with another electric cooperative


is a huge issue for the Kiwash membership. Many of you are asking tough


questions, and I want to provide answers so everyone can gain better knowledge of the issues.


Consolidation boils down to a simplified statement: the Kiwash management and Board of Directors are offering members a proactive opportunity to reduce costs and ensure a financially stronger electric cooperative. Here are a few questions that have come to light so far:


Why can‘t I vote by mail or proxy on this matter?


The board of director are following the 1939 Rural Electric Cooperative Act Title 18 O.S.§437.7 subpart (g) that states, “Each member shall be entitled to one vote on each matter submitted to a vote at a meeting. Voting shall be in person.” Your directors believe this is the most lawful method to hold this election and this is the format they will follow.


2 | KIWASH ELECTRIC COOPERATIVE | 2014 ANNUAL REPORT August 10 • Cordell High SchoolVOTE!


Will Kiwash members still have fair representation on the new, CKenergy Electric Cooperative board of trustees?


Yes, you will. The Caddo Electric board of directors is strikingly similar to that of your co-op. Their board members are farmers, ranchers, and small business people, just like your Kiwash board. They are rural people with rural, western Oklahoma values. The new CKenergy Electric Cooperative will operate as a twelve member board of directors. A minimum of three Kiwash directors will serve as voting board members and the remainder as one-year consultants. Remember, Caddo Electric has roughly four times the number of members as Kiwash, and board representation will reflect this fact.


Is the board of directors considering consolidation because they are unwilling to seek a new CEO after my retirement?


No. Consolidation offers a unique cost-saving opportunity that is very appealing to your directors. They hope it’s as appealing to the membership. Should the referendum fail, the potential to save $20 million- plus dollars over the next 10 years will fail with it, and the search for a new CEO would begin.


What happens to Kiwash members’ capital credits and electric rates?


If the measure passes in August, beginning January 1, 2016 all capital credit accounts and existing electric rates will transfer to the new entity, CKenergy Electric Cooperative.


Who decides if the consolidation will take place?


The member-owners of both cooperatives will ultimately decide. All necessary information will be presented, and members will have the opportunity to vote for or against consolidation at their respective co-op annual meetings. Both Caddo Electric and Kiwash Electric intend to keep members as well informed as possible so they can make an educated decision. Caddo Electric members will vote on August 7 in Anadarko. Kiwash members will vote on August 10 at the Cordell High School auditorium.


The Kiwash Annual Meeting gives you the opportunity to voice your opinion by casting a vote. I hope you and every other Kiwash member will take advantage of it by voting on August 10. In the meantime, keep asking questions. I am more than happy to answer them.


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