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November, 2015 www.harmonelectric.com 2010 Ice Storm and FEMA Mitigation Projects Update


We are approaching the end of 2015 and will soon begin a new year. As the year ends, we thought it fi tting to provide an update on your cooperative’s existing FEMA mitigation projects.


As you recall, on January 27, 2010 Harmon Electric experienced the worst natural disaster in its 72-year history. A major ice storm dev- astated Harmon’s entire service territory. All meters lost power, and there were fi ve long days before the fi rst meter was restored to service. Over 5,000 poles were replaced during this ‘emergency recovery pe- riod,’ with the last residential meter receiving power after 24 days.


Thirty crews and around 200 linemen were called in to help during this initial recovery period. Contractors from around the country and eight cooperative crews from Oklahoma and Texas assisted. The logistics of housing, feeding, keeping fuel, poles, and materials were overwhelming. We averaged 12 volunteers a day preparing approxi- mately 90 meals. The cost just to get the lights back on during this emergency restoration period was $12 million.


Employees spent long hours away from their families to ensure members’ electric power was restored as quickly and safely as pos- sible. Everyone went above and beyond duty and performed magnifi - cently, considering the enormity of the situation.


We remain grateful that, despite trying working conditions, no one was injured. This is impressive considering the number of linemen working and the challenging conditions of their work environment.


Keep in mind, this enormous undertaking was needed solely to restore power. In many cases, the work was patched and adminis- tered quickly in order to get the lights on. Once power was restored, the board and management had a major decision to make: Keep the system as it was or fully assess it for any further repairs needed to bring the system up to code and in line with safety and reliability standards.


The board and management decided to hire an Oklahoma City-based engi- neering fi rm, Guernsey & Company, to assess the system. Guernsey used professional staking technicians to fully assess the distribution system. Approximately 1,500 miles of line needed to be inspected to deter- mine the extent of damage.


Following guidelines from the Federal Emergency Management Agency (FEMA), Guernsey’s as- sessment began while repairs were still underway.


30 crews, 200 linemen 2010 Ice Storm Emergency Recovery Period


ing task that took several months. Completion of the assessment showed much of the system needed repairs and/or replacement of co-op infrastructure. Nearly


This was a daunt-


24 days until last


residential meter came on


$12 million to restore power


1,000 miles of Harmon’s 1,900-mile distribution system had signifi - cant damage and qualifi ed for FEMA mitigation funding.


Based on the data provided, the board and management determined it was not a viable option to leave the system in a state of disrepair. In every decision made at Harmon Electric, your co-op leadership weighs one major consideration: How will it impact the member at the end of the line? If the system was left untouched, Harmon Electric could have serious reliability and safety issues. Applying for FEMA funds was a conscious effort, as we would eventually have to rebuild the majority of the lines that qualifi ed for FEMA funds.


Simply put, if we hadn’t applied for FEMA mitigation funding, 100 percent of the expense to rebuild would have been borne by mem- bers instead of 25 percent. This would have been detrimental to each member because of potential rate increases associated with this debt.


The fi rst hurdle was to determine whether Harmon Electric qualifi ed for FEMA funds. It took two years for inspection and approval of the work and bidding process. Once everything was approved, Harmon Electric had four years to complete the needed restoration effort, per FEMA guidelines.


March 16, 2016 is the deadline for completion of this work. Dealing with numerous contractors, engineers, suppliers, stakers, inspectors, plus making sure the fi nances are in place has been a major undertak- ing.


5,000 poles replaced


Although we are nearing the end of one of the biggest challenges for Harmon Electric, we still face challenges in the future. Determin- ing the fi nal cost once all mitigation projects are complete is like aiming at a moving target and could possibly bring about a rate increase to Harmon’s members. As we get closer to the end and mitigation projects come to a close, we’ll have a better idea of the fi nancial obligations we face.


1,000 miles damaged


Even though we currently don’t have a fi rm number, we feel it wise to prepare for the future. The board and management are exploring options to cut expenses and fi nd innovative ways to minimize any rate adjust- ment that might be necessary to cover additional debt required to fi nance Harmon’s portion of these FEMA mitigation projects.


In future newsletters, we will take every opportunity to keep you up-to-date on the activities of your cooperative. Your co-op will continue to keep you, the member, at the forefront of every decision as we continue to provide safe and reliable electricity to your home.


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