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HomeMy WebLinkAbout20192338.tiffBOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW/ WORK SESSION REQUEST RE: PROXY BALLOT REQUEST 2019 DEPARTMENT: CLERK TO THE BOARD DATE: JUNE 17, 2019 PERSON REQUESTING: CHLOE A. REMPEL, DEPUTY CLERK TO THE BOARD Brief description of the problem/issue: High West Energy is amending their bylaws, and has afforded the Weld County Board of Commissioners the opportunity to vote. Bruce Barker, County Attorney, does not have any knowledge of ownership in the company, but it is possible High West Energy is allowing the Board the opportunity to vote because they service a property owned by Weld County. What options exist for the Board? (include consequences, impacts, costs, etc. of options) Bruce Barker, County Attorney, does not see any consequences from the Board voting on the bylaws for High West Energy. The Board can either vote via the proxy ballot form provided (following pages), or notify High West Energy that you would like to attend the meeting on Thursday, June 20, 2019, from 4:30 p.m. to 8:00 p.m., at 6270 County Road 212, Pine Bluffs, WY 82082. Recommendation: Please indicate your choice below. If you would like to vote on the provided ballot form, please turn to the flagged page and initial your selections. Sean P. Conway Mike Freeman, Pro-Tem Scott K. James Barbara Kirkmeyer, Chair Steve Moreno Attend Meeting Other/Comments: C,onsen+ apincick,� OCo(V\/ NI c. c. Ft COW), Cot C13(3), doccCKF-), t -t in Goes+ anerre OCo f V i (Vi 2019-2338 3C-Oo5a HIGH WEST ENERGY Changes to Bylaws This ballot offers members the opportunity to vote for or against changes to the bylaws, which are included in a leaflet that accompanied the mailing of this ballot. Most of the changes are minor corrections to grammar or legal descriptions, and they are marked in the leaflet for your review. There are three more significant changes to the bylaws (these sections are highlighted in the leaflet), and an explanation of each of the changes is included below. ARTICLE 1, SECTION 7 - REMOVAL OF DIRECTORS Article III, Section 2 of the bylaws lists the qualifications required to be a director for the cooperative. If or when a director is no longer able to comply with these requirements, and if they refrain from resigning from the Board, the current bylaws only grant the membership the authority to remove the director from the Board. This bylaw change grants the Board the authority to remove a director for failure to comply with the requirements. Two-thirds of the board must vote to exercise this authority. ARTICLE III, SECTION 8 - CHANGES IN RATES Due to changes over the years to Rural Development Utilities Service (RUS — formerly known as the Rural Electrification Administration) requirements, High West Energy is no longer required to submit rate changes to RUS, which makes this bylaw change necessary. HIGH West Energy will always notice and inform the membership and any state regulatory authorities (i.e. the Wyoming Public Service Commission) of any rate increases at least 30 days prior to those increases. ARTICLE XII - MEMBERSHIP IN OTHER ORGANIZATIONS To the Board, this seems like a section that is no longer necessary given how the cooperative operates. As an example, it appears the membership should be seeking approval to join membership -based organizations such as the Wyoming Rural Electric Association, Nebraska Rural Electric Association and the National Rural Electric Cooperative Association, as well as local organizations such as the Corn Growers, Stock Growers, Cattleman's, Wheat Growers and local chambers of commerce. By removing this bylaw, the Board of Directors can handle these membership decisions more practically and efficiently. Voting Instructions Please note: The first ballot we receive is the one that will be counted. We are unable to alter votes after they are received. Deviations from the voting instructions may invalidate your vote. PLEASE PLACE YOUR BALLOT INTO THIS ENVELOPE. In Person • Mark your selection by checking the appropriate box. • Fold the ballot and place into this envelope. • Seal this envelope, place into the return envelope, seal and bring to the annual meeting on Thursday, June 20, 2019. By Mail • Mark your selection by checking the appropriate box. • Fold the ballot and place into this envelope. • Seal this envelope, place into the return envelope, seal and mail. Mail -in ballots may be sent via United States Postal Service, hand - delivered to our Pine Bluffs or Cheyenne service centers or dropped into a High West Energy drop box. • Please allow sufficient time for delivery. • Envelopes must be received no later than June 19, 2019. HIGH WEST ENERGY Proposed revisions to High West Energy Bylaws highwestenergy.com REVISED BYLAWS HIGH WEST ENERGY, INCORPORATED 20182019 The purpose of HIGH WEST ENERGY, INCORPORATED, hereinafter called the COOPERATIVE, is to make electric energy available to its members at the lowest cost consistent with sound economy and good management. ARTICLE I - MEMBERS Section 1. Qualifications and Obligations. Any person, firm, corporation, or body politic may become a member of the Cooperative by: (a) Making application for membership as hereinafter specified. (b) Agreeing to purchase from the Cooperative electric energy as hereinafter specified, or otherwise agreeing to use the services furnished by the Cooperative on a continuing basis when such services shall be available, and; (c) Agreeing to comply with and be bound by the articles of incorporation of the Cooperative, these bylaws and any amendments thereto, the membership application and such rules and regulations as may from time to time be adopted by the board of directors, all of which shall constitute the "governing documents" and are binding agreements between the member and the Cooperative. No person, firm, corporation,, or body politic may own more than one (1) membership in the Cooperative. Two people may jointly become a member and their application for a joint membership may be accepted in accordance with the foregoing provisions of this section provided they each comply jointly with the provisions of the above subdivisions (a), (b), and (c),_and agree in writing that the Cooperative may rely upon the action of one individualmember of the joint membership as binding upon both for all matters pertaining to the business of the Cooperative and the member's purchase and use of electric energy. As required by the Cooperative for a cooperative purpose, each member shall: (1) provide the Cooperative safe and reliable access to or use of the member's property; and (2) pursuant to the terms and conditions specified by the Cooperative, and without compensation from the Cooperative, grant or convey in writing to the cooperative an easement, right-of-way, license, or other right or interest in member property in a form required by the Cooperative. A "cooperative purpose" is defined as: (1) purchasing, installing, constructing, inspecting, monitoring, operating, repairing, maintaining, removing, relocating, upgrading, or replacing the Cooperative's equipment or member equipment connected to the Cooperative's equipment; (2) providing a Cooperative service to the member or one or more other members; (3) providing electric energy to a person, or one or more other persons, or entities; or (4) safely, reliably, and efficiently operating the Cooperative or providing a Cooperative service. Page 1 Section 2. Purchase of Electric Energy. Each member shall, as soon as electric energy shall be available, purchase from the Cooperative electric energy used on the premises specified in their application for membership, and shall pay monthly for such electric energy at rates which shall from time to time be fixed by the board of directors. Production or use of electric energy on such premises, regardless of the source thereof, by means of facilities which shall be interconnected with Cooperative facilities, shall be subject to appropriate regulations as shall be fixed from time to time by the Cooperative. The board of directors may limit the amount of electric energy which the Cooperative shall be required to furnish to any one member. It is expressly understood that amounts paid for electric energy in excess of the cost of service are furnished by members as capital so furnished as provided in Article VIII, Section 2 of these bylaws. Each member shall pay to the Cooperative a minimum amount per month regardless of the amount of electric energy consumed, as shall be fixed by the board of directors from time to time. Each member shall also pay all amounts owed by the member to the Cooperative for electric energy and for all other services provided by the Cooperative to the member as and when the same shall become due and payable. Section 3. Non -liability for Debts of the Cooperative. The private property of the members of the Cooperative shall be exempt from execution for debts of the Cooperative and no member shall be individually liable or responsible for any debts or liabilities of the Cooperative. Section 4. Expulsion, Termination or Suspension of Members. The board of directors of the Cooperative may by the affirmative vote of not less than two-thirds (2/3) of the members thereof, expel, terminate, or suspend any member who shall have violated or refused to comply with any of the governing documents. Expulsion, termination, or suspension can only take place by a procedure that is fair and reasonaole. Such procedure shall include fifteen (15) days prior written notice of expulsion, termination, o r suspension and the reasons therefor and an opportunity for the member to be heard, o rally or in writing, not less than five (5) days before the effective date of the expulsion, termination, or suspension by a person or persons authorized to decide that the proposed e xpulsion, termination, or suspension not take place. At the discretion of the board of directors a procedure deviating from the aforementioned notice requirements may be u tilized so long as it also be fair and reasonable if it fairly and reasonably takes into account all the relevant facts and circumstances. To the extent membership expulsions, termination, o r suspension will result in a loss of electric energy service to a member, the Cooperative must comply with all relevant Public Service Commission regulations and procedures related thereto. Any member so expelled, terminated, or suspended may be reinstated as a member by a vote of the members at any annual or special meeting of the members or by two-thirds (2/3) vote of the board of directors. The action of the members or the board of directors with respect to any such reinstatement shall be final. Page 2 Section 5. Withdrawal of Membership. Any member may withdraw from membership at any time. However, withdrawal does not relieve the member from any obligations the member may have to the Cooperativecorporation which predate the withdrawal, including for payment for electric e nergy or other Cooperative services used or received by the member. Section 6. Transfer and Termination of Membership. (a) Membership in the Cooperative and a certificate representing the same shall not be transferable, except as hereinafter otherwise provided, and upon the death, cessation of e xistence, expulsion or withdrawal of a member the membership of such member shall thereupon terminate, and the certificate of membership of such member shall be surrendered forthwith to the Cooperative. Termination of membership in any manner shall n ot release the member from the debts or liabilities of such member to the Cooperative. (b) A membership may be transferred by a member to his or her self and ato the member's partner, as the case may be, jointly., upon the written request of such member and compliance written agreement by each partner with the provisions of subdivisions (a), (b)1 and (c) of Section 1 of this Aarticle. Such transfer shall be made and recorded on the books of the Cooperative and such joint membership noted on the original certificate representing the membership so transferred. (c) When a membership is held jointly, upon the death of either individual, such membership shall be deemed to be held solely by the survivor with the same effect as though such membership had been originally issued solely to him/her, as the case may be, and the joint membership certificate may be surrendered by the survivor and upon the recording of such death on the books of the Cooperative the certificate may be reissued to and in the name of such survivor; provided, however, that the estate of the deceased shall n ot be released from any membership debts or liabilities to the Cooperative. Section 7. Removal of Directors and Officers. The members may remove one (1) or more directors elected by them without cause. A director may only be removed if the number of votes cast to remove the director would be sufficient to elect the director at a meeting to elect directors. Such removal must occur at a meeting called for that purpose, with notice of the meeting so stating. An officer may be removed by the board of directors at any time with or without cause. A director may also be removed by a 2/3 vote of the board of directors if the director ceases to qualify as a board member under Article III, Section 2, of these bylaws, or if the board member misses more than 25% of the board meetings in any given year, or the board member's absences from board meetings has a deleterious effect on High West Energy, as determined by the board of directors in its sole discretion. No director or officer shall be personally or financially liable in the event of removal except for malfeasance in office. Section 8. Resignation of Board Members. A director may resign by giving written notice of resignation to the board of directors, its presiding officer, or to the president of the Cooperative. Page 3 ARTICLE II - MEETINGS OF MEMBERS Section 1. Annual Meeting. The annual meeting of the members shall be held each calendar year at such time and place as shall be determined by the board of directors and designated in the notice of the meeting, for the purpose of electing directors, passing upon reports covering the previous fiscal year and transacting such other business as may come before the meeting. If the election of directors shall not be held on the day designated herein for any annual meeting, or at any adjournment thereof, the board of directors shall cause the election to be held at a special meeting of the members as soon thereafter as possible. Failure to hold the annual meeting at the designated time shall not work a forfeiture or dissolution of the Cooperative. Section 2. Special Meetings. Special meetings of the members may be called by at least three (3) directors or upon a written request signed by at least ten percent (10%) of all the members, and it shall thereupon be the duty of the secretary to cause notice of such meeting to be given as hereinafter provided. Special meetings of the members may be held at any place within the Countywhere the Cooperative conducts business and as determined by the board of directors. Section 3. Notice of Member Meetings. Public notice of time and place of the holding of each annual election and meeting shall be published not less than ten (10) days previous thereto in the newspaper primed n earest to the place where the principal office of the Cooperative is located. Written or printed notice stating the place, day and hour of the meeting and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) days, nor more than twenty (20) days before the date of the meeting, either personally or by mail, by or at the direction of the secretary, or by the persons calling the meeting, to each member. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail, addressed to the member at their address as it appears o n the records of the Cooperative, with postage thereon prepaid. The notice for special meetings shall be the same as that required for annual meetings, except that no pualic n otice need be given. The failure of any member to receive notice of an annual or special meeting of the members shall not invalidate any action which may be taken by the members at any such meeting. Section 4. Quorum. As long as the total number of members shall exceed ten percent (10%) of all members of the cooperative utility present in person or by proxy or one hundred (100) members present in person, whichever is fewer, shall constitute a quorum for the transaction o f business at all meetings of the members. If less than a quorum is present at any meeting, a majority of those present in person may adjourn the meeting from time to time without further notice. Section 5. Voting. Page 4 Each member shall be entitled to one (1) vote and no more upon each matter submitted to a vote at a meeting of the members At all meetings of the members at which a quorum is present, all questions shall be decided by a vote of a majority of the members voting, whether present at the meeting, or represented by mail vote, except as otherwise provided by law, the articles of incorporation of the Cooperative or these bylaws A joint membership shall be entitled to one (1) vote and no more upon each matter submitted to a vote at a meeting of the members and the Cooperative is specifically authorized to accept the vote of either individual as the vote of the joint membership The board of directors shall by appropriate action taken, provide that the board of directors shall be elected for staggered terms of office of one, two or three years, and that the area or areas within which the members reside shall be divided into districts and that the directors shall be elected by or according to such districts The board of directors in the first year when staggered terms of office are established shall determine the manner in which such terms are established in the districts within the Cooperative of Laramie, in the State of Wyoming, specified in the notice of special meeting Except as provided in Article III, Section 3, when there is a single nominee, the election of directors shall be by ballot on which each member shall vote the name of such person as is to be elected from the member's district and in balloting for directors each member shall only have the right to cast one (1) vote, from the 'list of nominees, for the director of their choice from their district The candidate from each district receiving the highest number of votes, for the term of years for which the director in said district is nominated, shall be elected for the term specified in Section 2 of Article III of these bylaws Section 6. Mail Voting Any members who is absent from any such meeting may vote by mail Each vote must be clearly marked on the ballot, and the ballot must be signed by the member and placed in a sealed envelope bearing the member's name and addressed to the secretary of the cooperative When such ballot so enclosed is received by United States mail from any absent member, it shall be accepted and counted as a vote for directors by ballot of such absent member at such meeting Such mail ballots shall be counted toward the quorum requirements as set forth in Section 4 of Article II of these Bylaws with respect to the action taken on the Election of Directors and/or Bylaws The provisions of this section shall not be mandatory in the case of recall of one or more directors as provided in Section 7 of Article I of the Bylaws Section 7. Order of Business. The order of business at the annual meeting of the members, and so far as possible at all other meetings of the members, shall be essentially as follows (a) Report on the number of members present in person inorder to determine the existence of a quorum (b) Reading of the notice of the meeting and proof of due publication thereof, or the waiver or waivers of notice of the meeting, as the case may be Page 5 (c) Reading of unapproved minutes of previous meetings of the members and the taking of necessary action thereon unless Waived by members present (d) Presentation and consideration of, and acting upon, reports of officers, directors, manager and committees (e) Election of directors (f) Unfinished business (g) New business (h) Adjournments ARTICLE HI - DIRECTORS Section 1. General Powers The business and affairs of the Cooperative shall be managed by a board of seven (7) directors which shall exercise all of the powers of the Cooperative except such as are by law, by regulatory agencies and commissions, or by the articles of incorporation of the Cooperative or by these bylaws conferred upon or reserved to the members Section 2. Oualifications and Tenure. The persons named as directors in the articles of incorporation of the Cooperative shall compose the board of directors until the next annual meeting or until their successors shall have been elected and shall have qualified At each annual meeting of the members beginning with the year 1980, directors shall be elected by ballot, by members of their district, to serve for the term for which they were elected or until their successor shall be elected, and shall have qualified, subject to the provisions of these bylaws with respect to the removal of directors No member shall be eligible to become or remain a director or to hold any position of trust in the Cooperative whose bona fide and primary residence has not been in the area served by the Cooperative and the district from which they are elected for at least the previous 180 days, or who is in any way employed by or financially interested in a competing enterprise to any of the Cooperative's majority -owned businesses or a business selling electric energy or supplies to the Cooperative, or a business primarily engaged in selling electrical or plumbing appliances, fixtures or supplies that are financed through the Cooperative to the members of the Cooperative Moreover, a director must have capacity to enter into legally binding contracts Additionally, no member is qualified to become a director or to remain a director if, during the five years immediately preceding the date for election of the director or the term of service as director, that individual has been convicted of a felony Nor shall any director have a material financial interest with any person or entity where such interest could compromise the director's independent judgment and fiduciary duties on behalf of the Cooperative Finally, no individual employed by the Cooperative shall be eligible or qualified to become a director until five years after the individual's last date of employment with the Cooperative When a membership is held jointly, either one, but not both, may be elected as a director, provided, however, that neither one shall be eligible to become or remain a director or to hold a position of trust in the Cooperative unless both shall meet the qualifications hereinabove set forth Nothing in this section contained shall, Page 6 or shall be construed to, affect in any manner whatsoever the validity of any action any meeting of the board of directors Page 7 aken at Section 3. Nominations. It shall be the duty of the board of directors to appoint, not less than sixty (60) days n or more than one hundred twenty (120) days before the date of a meeting of the members at which directors are to be elected, a committee on nominations consisting of not less than five (5) nor more than eleven (11) members, who shall be selected so as to insure equitable representation on the committee to the district areas served or to be served by the Cooperative. No officer or member of the board of directors shall be appointed a member of such committee. The committee shall prepare and cause to be posted at the principal office o f the Cooperative at least forty (40) days before the meeting a list of nominees for director from each district. The secretary shall cause to be mailed at the expense of the Cooperative with the notice of the meeting a statement of the number of directors to be elected, if any. The members may, at any meeting at which a director or directors shall be removed, as hereinbefore provided, elect a successor or successors thereto without compliance with the foregoing provisions with respect to nominations. Notwithstanding anything in this section contained, failure to comply with any of the provisions of this section shall not affect in any manner whatsoever the validity of any election of directors. Moreover, if there is no more than one nominee for any one district, there shall be no ballot mailed and no vote taken on the nominee for that district, and he or she shaL be deemed elected by acclamation. Section 4. Vacancies. Subject to the provisions of these bylaws with respect to the removal of directors, Notwithstanding any other provision of these bylaws, vvacancies occurring in the board of directors, whether by resignation, removal, or otherwise, shall be filled by a majority vote of the remaining directors, and directors thus elected shall serve until the next meeting of the members or until their successors shall have been elected and shall have qualified. Section 5. Compensation. The board of directors may fix the compensation of directors as allowed by law. If authorized by the board, board members may also be reimbursed for expenses actually and n ecessarily incurred in carrying out such Cooperative business or granted a reasonable per diem allowance by the board in lieu of detailed accounting for some of these expenses. No board member shall receive compensation for serving the Cooperative in any other capacity, n or shall any close relative of a board member receive compensation for serving the Cooperative, unless the payment and amount of compensation shall be specifically authorized by a vote of the members or the service by the board member or their close relative shall have been certified by the board as an emergency measure. Section 6. Rules and Regulations. The board of directors shall have the power to make and adopt such rules and regulations, not inconsistent with law, the articles of incorporation of the Cooperative, the rules or regulations of any agency or commission, or these bylaws, as it may deem advisable for the management, administration and regulation of the business and affairs of the Cooperative. The board shall also have authority to secure such types of insurance coverage Page 8 for the Cooperative and its present and retired employees, directors and officers it shall deem necessary. Section 7. Accounting System and Reports. The board of directors shall cause to be established and maintained a complete accounting system, which among other things, and subject to applicable laws and rules and regulations of any regulatory body, shall conform to such accounting system as may from time to time be designated by the Administrator of the Rural Development Utilities Service Program -of the United States of AmericaDepartment of Agriculture, or of the Cooperative's primary lienholder if not the Rural Development Utilities ProgramService or its successor." The board shall cause to be made by a certified public accountant a full and complete audit of the accounts, books, and financial condition of the Cooperative as of the end of each fiscal year. A report of such audit shall be submitted to the members at the next annual meeting. Section 8. Change in Rates. administrator of the Rural Development Utilities ProgramService of the United States of AmericaDepartment of Agriculture, or to the Cooperative's p-r4mary ti -e go-lder if not the Runt Development Utilities ProgramService or its successor, of any approved change in the rates charged by the Cooperative for electric energy. ARTICLE IV - MEETINGS OF DIRECTORS Section 1. Regular Meetings. A regular meeting of the board of directors shall be held without notice other than this bylaw, immediately after the annual meeting of the members. A regular meeting of the board of directors shall also be held monthly at such time and place in Laramie County, Wyoming, or at such other location where the Cooperative conducts business, as the board of directors may provide by resolution. Such regular monthly meetings may be held without notice other than such resolution fixing the time and place thereof. Section 2. Special Meetings. Special meetings of the board of directors may be called by the president or any three (3) directors. The secretary shall cause oral or written notice of special meetings of the board of directors to be given to each director. Said notice shall fix the time and place which shall be in Laramie County, Wyoming, or in any district served by the Cooperative, for the holding of any special meeting of the board of directors called by them. Section 3. Notice. Notice of the time, place and purpose of any special meeting of the board of directors shalt be given at least five (5) days previous thereto, by written notice, or two (2) days if delivered personally or by telephone, to each director at their last known address. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail so addressed with postage thereon prepaid. The attendance of a director at any meeting shall constitute a waiver of notice of such meeting, except in case a director shall attend a Page 9 meeting for the express purpose of objecting to the transaction of any business because the meeting shall not have been lawfully called or convened. Section 4. Quorum. A majority of the board of directors shall constitute a quorum for the transaction of business at any meeting of the board of directors, provided, that if less than a majority is present, the directors present may adjourn the meeting from time to time without further notice. Directors may attend and participate by telephone or other electronic means upon approval by the board. Section 5. Manner of Acting. The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the board of directors. ARTICLE V - OFFICERS Section 1. Number. The officers of the Cooperative shall be a president, vice president, secretary and treasurer. The offices of secretary and treasurer may be held by the same person. Section 2. Election and Terms of Office. The officers shall be elected by oral or written ballot, annually, by and from the board of directors at the first meeting of the board of directors held after each annual meetirg of the members. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as possible. Each officer shall hold office until the first meeting of the board of directors following the next succeeding annual meeting of the members or until their successor shall have been duly elected and shall have qualified, subject to the provisions of these bylaws with respect to the removal of officers. Section 3. Removal. Any officer or agent elected or appointed by the board of directors may be removed by the board of directors whenever in its judgment the best interests of the Cooperative will be served thereby. Section 4. Vacancies. Except as otherwise provided in these bylaws, a vacancy in any office may be filled by the board of directors for the remaining portion of the term. Section 5. President. The president of the Cooperative: (a) Shall be the principal executive officer of the Cooperative and shall preside at all meetings of the members and the board of directors; (b) Shall sign, with the secretary, certificates of membership, the issue of which shall have been authorized by resolution of the board of directors, and may sign any deeds, mortgages, deeds of trust, notes, bonds, contracts, or other instruments authorized by the board of directors to be executed, except in cases in which the signing and execution thereof shall be expressly delegated by the board of directors or by these bylaws to some other Page 10 officer or agent of the Cooperative, or shall be required by law to be otherwise signed or e xecuted; and, (c) In general, shall perform all duties incident to the office of president and such other duties as may be prescribed by the board of directors from time to time. Section 6. Vice President. In the absence of the president or in the event of theirthe president's inability or refusal to act, the vice president shall perform the duties of the president, and when so acting, shall have all the powers of and be subject to all the restrictions upon the president and shall perform such other duties as from time to time may be assigned to them by the board of directors. Section 7. Secretary. The secretary shall perform or have authority to delegate the following duties: (a) Keep the minutes of meetings of the members and the board of directors in one o r more books provided for that purpose; (b) See that all notices are duly given in accordance with these bylaws and as required by law; (c) Be custodian of the corporate records and of the seal of the Cooperative which is affixed to all certificates of membership prior to the issue thereof and to all documents, the e xecution of which on behalf of the Cooperative under its seal is duly authorized in accordance with the provisions of these bylaws; (d) Keep a register of the post office address of each member which shall be furnished to the secretary by such member; (e) Sign with the president certificates of membership, the issue of which shall have been authorized by resolution of the board of directors; (f) Have general charge of the books of the cooperative in which a record of the membersnumbers is kept; (g) Keep on file at all times a complete copy of the bylaws of the Cooperative, containing all amendments thereto, which copy shall always be open to the inspection of any member, and at the expense of the Cooperative forward a copy of the bylaws and of all amendments thereto to each member; and, (h) In general, perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to them by the board of directors. Section 8. Treasurer. The treasurer shall perform or have authority to delegate the following duties: (a) Have charge and custody of and be responsible for all funds and securities of the Cooperative; (b) Receive and give receipts for monies due and payable to the Cooperative from any source whatsoever, and deposit all such monies in the name of the Cooperative in such bank o r banks as shall be selected in accordance with the provisions of these bylaws; and, (c) In general perform all the duties incident to the office of treasurer and such other duties as from time to time may be assigned to them by the board of directors. Page 11 Section 9. Chief Executive Officer / General Manager. The board of directors may appoint a Chief Executive Officer / General Mmanager who may be, but who shall not be required to be, a member of the Cooperative. Thine personmanager shall perform such duties as the board of directors may from time to tine require of them and shall have such authority as the board of directors may from time to time delegate vest in them. Section 10. Bonds of Officers. The treasurer and any other officer or agent of the Cooperative charged with responsibility for the custody of any of its funds or property shallmay be bonded in such sum and with such surety as the board shall determine. The board in its discretion may also require any other officer, agent or employee of the Cooperative to be bonded in such amount and with such surety as it shall determine. Premiums for such bonds shall be paid by the Cooperative. Section 11. Compensation. The compensation of every officer, agentor employee shall be fixed by the board of directors. Section 12. Reports. The officers of the Cooperative shall cause to be submitted to each annual meeting of the members, reports covering the business of the Cooperative for the previous fiscal year and showing the condition of the Cooperative at the close of such fiscal year. ARTICLE VI - CONTRACTS, CHECKS, AND DEPOSITS Section 1. Contracts. Except as otherwise provided in these bylaws, the board of directors may authorize any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument in the name and on behalf of the Cooperative, and such authority may be general or confined to specific instances. Section 2. Checks, Drafts, etc. All checks, drafts, or other orders for the payment of money, and all notes, bones, or other evidences of indebtedness issued in the name of the Cooperative shall be signet and countersigned by such officer or officers, agent or agents, employee or employees, of the Cooperative and in such manner as shall from time to time be determined by resolution and policy of the board of directors. Section 3. Deposits. All funds of the Cooperative received by any employee hereof shall be turned over to the treasurer of the treasurer's duly authorized designee, as soon as conveniently possiblemay be and shall be handled by the treasurer in accordance with Article V, Section 8, of these bylaws. ARTICLE VII - MEMBERSHIP CERTIFICATES Section 1. Certificates of Membership. Page 12 Membership in the Cooperative shall be evidenced by a certificate of membership which shall be determined by the board of directors not contrary to, or inconsistent with, the articles of incorporation of the Cooperative or these bylaws. Such certificate shall be signed by the president and by the secretary of the Cooperative and the Cooperative seal shall be affixed thereto. Section 2. Lost Certificates. In the case of a lost, destroyed= or mutilated certificate, a new certificate may be issued therefore upon such terms and such indemnity to the Cooperative as the board of directors may prescribe. ARTICLE VIII - NON-PROFIT OPERATION Section 1. Interest or Dividends on Capital Prohibited. The Cooperative shall at all times be operated on a cooperative non-profit basis for the mutual benefit of its members. No interest or dividends shall be paid or payable by the Cooperative on any capital furnished by its members. Section 2. Capital Credits . Capital credits, sometimes referred to as patronage capital, are those amounts furnished by the members to the Cooperative in excess of the operating costs and expenses properly chargeable against the furnishing of electric energy to the members.In the furnishing of electric energy, the Cooperative's operations shah be so conducted that all members will, through their patronage and to assure that the Cooperative is obligated to account on a patronage basis to all its members, for all amounts received and receivable from the furnishing of electric energy in excess of operating costs and expenses properly rnishing of electric energy. All such amounts in excess of operating costs and expenses at moment of receipt by the Cooperative are received with the u nderstanding that they are furnished by the members as capital. The Cooperative is o bligated to credit the capital account of each member all such amounts in excess of o perating costs and expenses. The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each member is clearly reflected and credited in an appropriate record to the capital account of each member, and the Cooperative shall, within a reasonable time after the close of the fiscal year, notify each member of the amount of capital so credited to the account. Operating costs and expenses properly chargeable against the furnishing of electric e nergy shall be defined as all normal operating costs, including, without limitation, depreciation, taxes, cash expenditures and similar charges, which are properly chargeable against operating revenue in accordance with accepted utility accounting principles, less any item of revenue considered a recovery of expense, less any interest income derived from investments or loans to members, margins from the sale of goods and services as provided amounts received and receivable from the furnishing of electric energy as charges billed to members in accordance with applicable rate schedules for electric energy, which are Page 13 considered as expense recoveries rather than revenues subject to inclusion in the basis for patronage capital credit allocation. Any amount owed the Cooperative by any person, firm, or corporation not paid at the time when a patronage capital credit refund or retirement shall otherwise become due, shall be paid from the refund, and only the amount of such refund in excess of the amount owed by the member shall be refunded to the member. If the capital credit retirement does not V �e indebtedness. In making allocation of individual members' credits, such allocations shall be on a flat and equal percentage of total energy charges for all consumers, without discrimination, except urban members in towns where a franchise tax has been levied upon the revenue from members served in the town. Nothing provided herein shall prevent the Cooperative from determining the amount to be allocated on the basis of total energy charges by rate of revenue class as may be from time to time determined by the Board. The Board shall determine the method, basis, priority, and order of retirement, if any, for all amounts furnished as capital. Notwithstanding any other provision of these Bylaws, the method, basis, priority1 and order of retirement of patronage capital, if any, chosen by the Board may include retiring amounts furnished as capital at a discount. In no event, however, shall patronage capital be retired if such retirements would violate any applicable law or regulation, or if such retirements would breach any provision of any mortgage or loan contract executed by the Cooperative upon the authority of the Board pursuant to the applicable provisions of these bylaws. No retirements of capital credits shall be made except in nominal amounts as provided below, unless: (a) Notwithstanding any other provisions of these bylaws, the board of directors may, in the exercise of its sole discretion, authorize refund of current patronage capital credits out of turn, if amounts are available from current revenues. (b) Capital credited to the account of each member shall be assignable only on the books of the Cooperative pursuant to written instruction from the assignor and on_y to successors in interest or successors in occupancy in all or part of such member's premises served by the Cooperative, unless the board of directors, acting under policies of general application, shall determine otherwise. (c) If the costs and expenses exceed the amounts received and or receivable from and directly related to the furnishing of electric energy, hereinafter referred to as "loss", then the board of directors shall have the authority under accepted accounting practices and applicable tax law to prescribe the manner in which such loss shall be handled; provided, however, such method is consistent with the regulations of the Cooperative's primary lien holder. Insofar as permitted by law, the Board is authorized to net margins or losses cif any separate divisions of the Cooperative into one or more allocation units. credit retirement shall otherwise become due, shall be paid from the retirement, and only the amount of such retirement i•n excess of the amount owed by the member shall be Page 14 refunded to the member. If the patronage capital credit retirement does not exceed such amount owed by the member, no refund shall be made until the indebtedness has been canceller by retirement of patronage capital applied against the indebtedness. Notwithstanding any other provision of these bylaws, the board of directors, at its discretion, shall have the power at any time upon the death of any member, if the legal representatives of their estate shall request in writing that the capital creditsed allocated to any such member be retired prior to the time such capital credits would otherwise be retired u nder the provisions of these bylaws, to retire capital creditsed to any such member immediately upon such terms and conditions as the board of directors, acting under policies of general application, and the legal representatives of such member's estate shall agree u pon; provided, however, that the financial condition of the Cooperative will not be impaired thereby. Notwithstanding any other provisions of the bylaws or other provision of the membership certificate, if any member or former member fails to claim any cash retirement of capital credits or other payment from the Cooperative within two years after payment of the same has been available to them by notice or check mailed to them at their last address furnished by them to the Cooperative, such failure shall be and constitutes an irrevocable assignment and gift by such member of such capital credits or other payment to the Cooperative. Failure to claim any such payment within the meaning of this section shall include the failure by such member or former member to cash any check mailed to them by the Cooperative at the last address furnished by them to the Cooperative. The assignment and gift provided for under this section shall become effective only upon the expiration of two (2) years from the date when such payment was made available to such member or former member without claim therefore and only after the further expiration of sixty (60) days following the giving of a notice by mail and publication that unless such payment is claimed within said sixty (60) day period, such gift to the Cooperative shall become effective. The notice by mail herein provided for shall be one mailed by the Cooperative to such member or former member at the last known address by certified mail, return receipt requested, and the notice by publication shall be an insertion in the Cooperative's n ewsletter. The sixty (60) day period following the giving of such notice shall be deemed to terminate sixty (60) days following the last date of publication thereof. In addition, the Cooperative shall comply with all notice and other provisions of applicable state law relating to the redemption and/or payment of unclaimed capital credits or other payments from the Cooperative. In the event that the Cooperative should engage in the business of furnishing utility type services other than electric energy, all amounts received and receivable in excess of costs and expenses properly chargeable against the furnishing of such services may, insofar, as permitted by law, be prorated annually on a patronage basis and allocated to all members which are holding an active membership from the sales of electric energy. Such amounts may be allocated and retired following thes-aid procedures a fi listed in Article VIII, Section 2 Page 15 hereof, and shall not be returnable to the members from whom such amounts were obtained as provided in this section. All other amounts received by the Cooperative other than from the furnishing of electric energy and other utility type services shall, insofar as permitted by law, be (a) used to offset and losses incurred during the current or any prior fiscal year as may be determined in Article VIII, Section 2, (b) used to establish reserves and other capital not assignable to the members prior to the dissolution of the Cooperative, and (c) to the extent not needed for these purposes allocated to the members. Such amounts will be allocated and retired following said procedures as listed in Article VIII, Section 2 hereof. Section 3. Property Rights of Members. In the event of dissolution or liquidation of the Cooperative, after (a) all outstanding indebtedness of the Cooperative shall have been paid; and (b) all capital furnished through patronage shall have been retired as provided in these bylaws, the remaining property and assets of the Cooperative shall be distributed among the members and former members (referred collectively in this Section 4 of Article VIII as members") in the proportion which the aggregate patronage of each bears to the total patronage of all members during that period, insofar as is consistent with law and practicable as determined by the board of directors. Section 4. Acknowledgement of Members. The members of the Cooperative, by dealing with the Cooperative, acknowledge that the terms and provisions of the articles of incorporation and bylaws shall constitute and be a contract between the Cooperative and each member, and both the Cooperative and the members are bound by such contract as fully as though each member had individually signed a separate instrument containing such terms and provisions. The provisions of these bylaws shall be called to the attention of each patron of the Cooperative by posting in a conspicuous place in the Cooperative's office. ARTICLE IX - WAIVER OF NOTICE Any member or director may waive, in writing, any notice of meetings required to be given by these bylaws. ARTICLE X - DISPOSITION OF PROPERTY The Cooperative may not sell, mortgage, lease or otherwise dispose of or encumber any of its property other than: (a) Property which in the judgment of the board of directors neither is nor will be necessary or useful in operating and maintaining the Cooperative's system and facilities; provided, however, that all sales of such property shall not, in any one (1) year, exceed in value ten percent (10%) of the value of all the property of the Cooperative: (b) Services of all kinds, including electric energy, in the ordinary course of business; and, (c) Personal property acquired for resale, Page 16 unless such sale, mortgage, lease, or other disposition of encumbrance is authorized at a meeting of the members by the affirmative vote of at least two-thirds (2/3) of the members voting thereon at such meeting in person, and the notice of such proposed sale, mortgage, lease or other disposition or encumbrance shall have been contained in the notice of the meeting:. However,provided, however, that notwithstanding anything herein contained, the board of directors, without authorization by the members, shall have full power and authority to borrow money subject to the approval of the Public Service Commission of the States of Wyoming, Colorado and Nebraska and in connection with such borrowings to authorize the making and issuance of bonds, notes or other evidences of indebtedness and, to secure the payment thereof, to authorize the execution and delivery of a mortgage or mortgages, or a deed or deeds of trust upon, or the pledging or encumbrancing of any or all of the property, assets, rights, privileges, licenses, franchises and permits of the Cooperative, whether acquired or to be acquired, and wherever situated, all upon such terms and conditions as the board of directors shall determine. ARTICLE XI - FISCAL YEAR The fiscal year of the Cooperative shall begin on the first day of January of each year and end on the thirty-first (31st) day of December of the same year. ARTICLE YIi--�- - - I----�---- ----- The Cooperative shall not become a member of any other organization without an • notice of said meeting shall specify that action is to be taken upon such proposed membership as an item of business, "provided, however, that the board of directors may authorize" membership in any organization formed solely for the purpose of furthering the pcogram and principles of rural electrification. ARTICLE XIIt - MEMBER The word, "member'," shall include aAny individual, partnership, corporation, trust, unincorporated association or joint venture, a government) or any department or agency thereof, or any other entity. Reference to the use of the word "his" herein shall refer to the word "member" regardless of genderUnless the context requires a different interpretation, use of the pronouns such as his or hers, shall be gender neutral, and the plural shall include the singular, and vice versa. ARTICLE XIIIV - SEAL The corporate seal of the Cooperative shall be in the form of a circle and shall have inscribed thereon the name of the Cooperative and the words "Corporate Seal, Wyoming." ARTICLE X V - AMENDMENTS Page 17 These bylaws may be altered, amended, or repealed by the members at any regular or special meeting, provided the notice of such meeting shall have contained a copy of the proposed alteration, amendment or repeal. Pursuant to state law, the board of directors of the Cooperative may also amend the bylaws. Page 18 Dear Members, As we reflect on another successful year and look forward to important and exciting changes, we would like to invite you to the 82nd Annual Meeting of High West Energy, Inc., on Thursday, June 20, 2019, at our headquarters in Pine Bluffs, Wyoming (6270 County Road 212). The annual meeting is a family - friendly event where members meet employees, enjoy good food, entertainment, and conduct the important business of the Cooperative, where you are not only a member, but also an owner. We sincerely thank you and all members for your support and your commitment to playing an active and vital role in your co-op. Our employees exemplified our hard-working core value throughout 2018 as we continued our four-year plan to invest approximately $35 million to enhance the High West electric system. In 2018, we spent $7.8 million on additions and upgrades to our distribution and transmission systems. This enduring commitment ensures the quality of our infrastructure and reliable service for you. High West also elevated our level of dedication to the communities we serve. As a cooperative, we believe we have a duty every year to volunteer resources of people, time and money to improve the quality of life of our members. In 2017, our employees logged more than 3,800 volunteer hours; in 2018, we increased our volunteer hours to nearly 5,000. From a financial perspective, we set records for prosperity and stability at High West. That success afforded us the flexibility to plan for the future in a way that will benefit our members. We completed 2013 with actual operating revenues of $49.9 million and a total margin of $4.55 million, both of which are record -highs for the cooperative. In the financial section of this report, you will see our operating revenue listed as $47.9 million and our margin as $2.55 million. The reason for these differences is that High West chose to defer $2 million of those funds so we can use that money to minimize the impact of projected power cost increases on you. This deferment is part of our long Hello! commitment to responsible financial management on behalf of you, the cooperative's members and owners. Several years ago, we announced a rate increase for 2018 of 5.5 percent as a reaction to rising wnolesale electricity prices. Heading into 2018, we carefully examined our economic outlook and saw we were on sound financial footing. Realizing the 2018 increase would no longer be necessary, we canceled it. As we see it, your hard-earned money should stay in your pockets whenever possible. After all,the High West Energy vision is to be the trusted partner in the solutions we provide to our members and customers. We strive to earn that trust by conducting ourselves with irtegrity every single day. On behalf of all the cooperative employees, we thank you and look forward to a successful 2019. Ed Prosser President Brian Heithoff CEO/General Manager 2 2019 Arnual Report HIGH WEST ENERGY Contact Information High West Energy, Inc. 6270 County Rd. 212 I PO Box 519 Pine Bluffs, WY 82082-0519 (307) 245-3261 (888) 834-1657 Cheyenne Service Center 3302 1-80 Service Rd. Cheyenne, WY 82009 F. E. Warren Air Force Base 1890 Mule Deer Bldg 848 I PO Box 9567 Cheyenne, WY 82005 Potter Service Center 900 Sherman PO Box 84 Potter, NE 69156 highwestenergy.com highwestwiring.com hwds.com Page Information 2 3 4-5 6 7 8 9 10 11 13-17 18 19 Welcome from Ed & Brian Contact Information 2018 Annual Meeting Minutes Official Meeting Notice Agenda & Schedule Explanation of Changes to Bylaws Board of Directors Revenues & Expenses Balance Sheet Employees 2018 Annual Meeting Photographs 2019 Scholarship Recipients Follow Us 0 facebook.com/highwestenergy 0@highwestenergy Brian Heithoff CEO/General Manager Lindsay Forepaugh Chief Financial Officer Dave Crouse Chief Information Officer Management Team Konnie Keehnen Member Services Manager Dave Golden Engineering Manager Ken Haas Operations Manager Mary Powell WAFB Operations Manager Jim East Marketing Manager Carol Macy High West Wiring Manager SMARTHUB Download SmartHub to view your usage on a daily basis and pay your bill. iPhone, Android or Computer HighWestEnergy.com High West Energy 13 2018 Annual Meeting Minutes High West Energy, Inc. 2018 Annual Meeting Minutes Pine Bluffs, WY, June 21, 2018 The 81st Annual Meeting of the members of High West Energy, Inc., was held at High West Energy's headquarters in Pine Bluffs, WY at 6:30 p.m., Thursday, June 21, 2018. Following registration, dinner, and a vendor show, the meeting was called to order by President Ed Prosser. President Prosser welcomed everyone in attendance and recognized current and retired board members, employees, veterans, special guests, and invited speakers. The invocation was given by Dave Crouse,C10 of High West Energy. The reading of the 2018 Notice of Annual Meeting was given by Hank Bailey, Attorney at Law and General Counsel for High West Energy, Inc., whose firm has represented the cooperative for 40 years. It was determined that a quorum was present and that the business of the meeting could move forward. It was moved, seconded and unanimously approved to dispense with the reading of the 2017 annual meeting minutes. ELECTIONS Hank Bailey presided over the election. The business of the meeting was to take action upon the following matter: A. The Nominating Committee submitted the names of Michael Lerwick, District 11, and Ed Prosser from District 13, as nominees for three-year terms. B. Bylaw review and changes supported by the Board of Directors were presented for a vote. PRESIDENT'S REPORT President Ed Prosser reported that High West Energy is 81 years old and getting better with age and he was proud to announce they are headquartered in Pine Bluffs, WY. He reported on increased energy sales year -over -year for the past several years, balancing assets and resources to provide a good value to the membership, investing in our system, adjusting to the industry and marketplace; all so High West Energy can provide even greater value in the future. CEO'S REPORT CEO/General Manager Brian Heithoff thanked the dedicated members in attendance. He reported that High West Energy is working hard to deliver safe, reliable, and competitively priced e nergy and services. He predicted 2018 will be as strong as 2017 as we continue to decrease our operating costs per kWh sold; a direct measure of fiscal responsibility. As a result, we were able to cancel the rate increase forecasted for 2018 and are predicting n o increase in 2019. He announced the redesign of the rate structure to reduce subsidization between and among our rate classes. He reported that due to growth, we can invest in rebuilding and maintaining our e lectric system at increased levels, leading to better reliability. CEO Heithoff applauded High West Energy employees who give back in so many ways. Rural areas are losing population rapidly, but High West Energy encourages their employees to make their communities the best place to live, work, play and raise a family. YOUTH TOURS 2018-19 scholarship winner Kenzie Graves introduced the other scholarship winners and thanked the Board of Directors and members on behalf of all the winners. High West Vision Statement 4i 2019 The vision of the High West companies is to be the trusted partner in the solutions we provide. Annual Report Energy sponsored two students for the 2017 Youth Tour in Washington DC., Alison Mickelson of Carpenter, WY and Mattie Johnson of Potter, NE. Alison thanked High West Energy for the sponsorship and recapped the trip, calling it an amazing experience. She asked the members to tell the children in their Lives to apply for Energy Camp and Youth Tour for an unforgettable, o nce in a lifetime experience. GUEST SPEAKERS Mike McInnes, Chief Executive Officer ofTri-State Generation & Transmission Association discussed the privileges and opportunities co-op members e njoy with a not -for-profit rural e lectric cooperative with easy access to all employees and management to answer all their questions and needs. There are times at annual meetings where he gets to shake the hand of someone who remembers getting electricity for the first time, which changed their lives forever. He never gets tired talking to members. Shawn Taylor, Executive Director of WREA spoke about what the Wyoming Rural Electric Association does for Wyoming co-ops and members, including the production of the Wyoming Rural Electric Newsletter (WREN),sponsoring the youth tour, and advocating at the Wyoming Legislature on behalf of electric co-ops. Kim Christensen, General Manager of NREA reviewed her credentials to the members and explained what the association does for Nebraska co-ops. She congratulated High West Energy on 81 years of good, solid service and declared there is no better place to live than rural America. She reminded the members they own the co-op,they have a vote, and they have a chance to run for a seat on the board of directors. She reminded the members what a miracle electricity is and to thank their co-op for providing safe, reliable, affordable power. ELECTION RESULTS The election committee counted all ballots cast for Bylaw changes, and Districts 11 and 13. Hank Bailey announced that all proposed Bylaw changes passed, and Ed Prosser and Michael Lerwick were re-elected for three-year terms. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS & GENERAL DISCUSSION CEO/General Manager fielded questions and comments from the members on providing internet,asking ng that a grace period not be considered a delinquency, looking at the Connect America funds and/or working in partnership with telecons to provide rural internet, and challenges related to cybersecurity. Any items not answered will be discussed at an upcoming board meeting. As there was no other business brought before the membership, President Prosser called for adjournment. There was a motion and a second. All were in favor. Meeting adjourned at 7:27 p.m. MISCELLANEOUS Prizes were drawn and announced. The member's name that was drawn randomly for the progressive jackpot was not in attendance so the amount in 2019 will be $1,200. DATED: This 21nd day of June 2018. Dan Acheson, ,29a. away Secretary of the Board Mission Statement The mission of the High West companies is to serve our members and communities by providing safe, reliable and competitively priced energy and services. HighWestEnergy.com High West Energy 1 5 Official Meeting Notice Notice of annual meeting of the members of High West Energy, Inc. Notice of annual meeting of the members of High West Energy, Inc. This annual meeting of the members of High West Energy, Inc. will be held at High West Energy headquarters in Pine Bluffs, Wyoming at 6:30 p.m. on Thursday,June 20, 2019 to take action upon the following matters: The reports of officers, directors, and committees. Take action on proposed bylaw changes. All other business which may come before the meeting, or any adjournment or adjournments thereof. In connection with the election of three directors scheduled for this meeting, the following members have been nominated by the Nominating Committee, which is appointed by the Board of Directors of the corporation, pursuant to the bylaws: 1. District 14: Jerry Burnett 2. District 16: Jamie Fowler 3. District 17: Kevin Thomas Because there are no additional candidates for the Board of Directors, these three members will be automatically elected to the board in accordance with Article II, Section V and Article III, Section 3. DATED this 23rd day of April, 2019. Respectfully, fiekeg, Dan Acheson, Secretary Directions From Cheyenne and Colorado: Head east on I-8O,take exit 401 at Pine Bluffs to Parson Street,turn left. Go to Lincoln Hwy (HWY 30) turn left. Turn right onto County Rd 212 and cross railroad =racks. Turn right into the High West Energy property. From Sidney: Head west on 1-80, take exit 401 at Pine Bluffs to Parson Street, turn right. Go to Lincoln Hwy (HWY 30) turn left. Turn right onto County Rd 212 and cress railroad tracks. Turn right into the High West Energy property. Pine Bluffs, WY 0 9 High West Energy Bluffs V e nary Ginn 0 of, M9 Bluffs Sinclair Exxon sica Rest *Arno e wan it 2 ■ Sin ■ C Wnmr ( c wrx E I, : me Bluffs enior ► ig►: 6 1 2019 Annual Report Thursday, June 20, 2019 High West Energy HO 6270 CR 212 Pine Bluffs, WY 82082 Annual Meeting Schedule 4:30 p.m. -6:30 p.m. Registration, Craft Fair & Dinner 6:30 p.m. -8:00 p.m. Business Meeting & Prize Drawings t y Dinner Menu French Dip, Potato Salad, Chips, Fruit, Cake Because this is a celebration event, please note that a photographer and videographer will be present. 82nd Annual Meeting Annual Meeting Agenda Welcome Remarks and Call to Order Ed Prosser, Board President Invocation Reading of the 2019 Notice Henry F. Bailey, Attorney Determine Existence of Quorum Minutes of the 2018 Annual Meeting President's Report Ed Prosser CEO/General Manager's Report Brian Heithoff Election of Directors and Changes to Bylaws Unfinished Business New Business and General Discussion Report of Election Committee Adjournment IPCIS rat High West Energy's Board of Directors are, from left: Jamie Fowler, District 16; Dan Acheson, District 15; Michael Lerwick, District 11; Gary Smith, District 12; Ed Prosser, District 13; Jerry Burnett, District 14 and Kevin Thomas, District 17. Explanation of Proposed Bylaws Changes Article 1, Section 7. Removal of Directors Article II, Section 2 of the bylaws lists the qualifications required to be a director for the cooperative. If or when a director is no longer able to comply with these requirements, and they refrain from resigning from the Board, only the membership can remove the director from the Board currently. This bylaw change grants the Board the right to remove a director for failure to comply with the requirements upon a two-thirds vcte. Article III, Section 8. Change in Rates Due to changes over the years to Rural Development Utilities Service (RUS - formerly known as the Rural Electrification Administration) requirements, we are no longer required to submit rate changes to RUS, making this bylaw change necessary. Note that we will always notice and inform the membership and any state regulatory authorities (i.e. the Wyoming Public Service commission) of any rate increases at least 30 days prior to those increases. Article XII. Membership in other Organizations To the Board,this seems like a section that is no longer appropriate given how the cooperative operates. As an example, it appears the membership should be seeking approval to join membership -based organizations such as the Wyoming Rural Electric Association, Nebraska Rural Electric Association and the National Rural Electric Cooperative Association, as well as local organizations such as the Corn Growers, Stock Growers, Cattleman's, Wheat Growers and local Chambers of Commerce. From a practical standpoint, it is felt these membership decisions can be adequately decided by the Board of Directors. 8 12019 Annual Report Ed Prosser President District 13 BUFORD HighWestEnergy.com Board of Directors Jerry Burnett Vice President District 14 Michael Lerwick District 11 DISTRICT 14 DISTRICT 16 DISTRICT 13 HILLSDALE DISTRICT 14 Jamie Fowler District 16 DISTRICT 11 ALBIN DISTRICT 12 BURNS PINE BLUFFS CARPENTER HEREFORD GROVER Dan Acheson Secretary District 15 HARRISBURG BUSHNELL DISTRICT 15 KIMBALL Kevin Thomas District 17 DISTRICT 17 POTTER Gary Smith Treasurer District 12 High West Energy 19 Revenue and Expenses 2017 2018 TOTAL OPERATING REVENUES 48,740,910 47,903,381 Purchased Power 31,546,162 32,037,702 Operation & Maintenance Expense 4,347,372 4,707,398 Customer & Collection Expense 946,622 939,145 Operating Expenses: General & Administrative Expense 3,193,262 3,476,176 Taxes 456,474 469,650 Depreciation & Amortization Expense 4,755,038 3,241,209 TOTAL OPERATING EXPENSES $45,244,930 $44,871,280 Net Electric Operating Revenue 3,495,980 3,032,101 Less: Interest on Long Term Debt 2,058,107 2,201,804 Margins from Operations: Interest Expense Short Term 68,941 12,503 Other Expenses 11,948 12,870 TOTAL MARGINS FROM OPERATIONS $1,356,984 $804,924 Non -operating Margins Interest 23,190 62,029 Other Investments, Margins & Capital Credit 277,127 527,596 Other Margins: Tri-State Generation & Transmission f 1,606,758 1,158,620 TOTAL OTHER MARGINS $1,907,075 $1,748,245 'TOTAL MARGINS $3,264,0591 $2,553,169 Balance Sheet ASSETS 2017 2018 Utility Plant: Total Utility Plant $108,758,413 $113,832,057 Depreciation -37,253,595 -38,705,647 TOTAL DEPRECIATED VALUE $71,504,818 $75,126,410 Current Assets: Cash 3,298,750 3,052,186 Receivables 7,665,336 5,405,962 Materials 3,440,991 3,199,523 Prepayments 302,386 295,637 Other TOTAL CURRENT ASSETS $14,707,463 $11,953,308 Oth e r A ssets: Deferred Debits 104,595 139,506 Investments 25,136,147 25,762,703 Deferred Revenue 0 2,000,000 $25,240,742 $27,902,209 TOTAL OTHER ASSETS TOTAL ASSETS I $111,453,023 $114,981,927 LIABILITIES AND CAPITAL 2017 2018 Equity: Patronage Capital $33,347,010 $34,386,528, Memberships 0 0 Other Equities 2,797,286 2,874,761 TOTAL DEPRECIATED VALUE $36,144,296 $37,261,289 LONG-TERM DEBT $61,877,935 $63,885,676 Current Liabilities: Accounts Payable 3,684,394 3,619,059 Notes Payable 1,614,792 0 Other Liabilities 3,012,554 3,344,879 Customer Deposits 102,052 115,455 TOTAL CURRENT LIABILITIES $8,413,792 $7,079,393 Other Liabilities: Regulatory Liabilities 0 2,000,000 Deferred Credits 5,017,000 4,755,569 TOTAL OTHER LIABILITIES $5,017,000 $6,755,569 b& TOTAL LIABILITIES AND CREDITS I $111,453,0231 $114,981,927 HighWestEnergy.com High West Energy 111 Troy Burke Electrician Jim Darden Accountant HighWestEnergy.com Colt Alexander Lineman Mike Candiracci IT Network Administrator Leanne DeBruyn Payroll/ Benefits Administrator Doug Elgin Engineering Aide Meet the Team Nate Begger Crew Foreman Dalton Clark Lineman Lynn DeFair Scheduler/Coordinator Bryan Ferguson Lineman Sally Brelsford Member Services Representative Tim Cline Warehouse Jim East Marketing Manager Lindsay Forepaugh Chief Financial Officer David Crouse Chief Information Officer Valerie Eastman Inventory Supervisor High West Energy 1 13 Dave Golden Engineering Manager Tanner Hinton Lineman 14 1 2019 Miles Killham Lineman Jeremy Fryda Crew Foreman Kimberly Gotfrey Member Services Representative Trevan Hinton Lineman Meet the Team Tyler Gabel Lineman Ken Haas Operations Manager Jessica Klaurens Operations Assistant Tucker Hohn Lineman Blayne Gilbert Electrician Brian Heithoff CEO/General Manager Chris Jackson Jacob Hemstrom Lineman Konnie Keehnen Information Systems Specialist Member Services Manager Patrick Knoepfle Lineman Kebly Konig Information Support Specialist Annual Report Les Lewis Crew Foreman Wiring Rachel Manley Work Order Accountant HighWestEnergy.com Lucas Lang Engineering Aide William Longly Lineman Joy Manning Energy Management Advisor Susan McGaugh Executive Assistant Meet the Team Tim Lang Staff Engineer Tim Lynch Electrician John Marsh Crew Foreman Wiring Gus Miller Lineman Cortney Lewis Building & Facilities Coordinator Carol Macy Wiring Manager Joni McCluskey Controller Josh Murkin Electrician Bert Macy Substation & SCADA Technician Dean McCluskey Crew Foreman High West Energy 1 15 Jesse Robbins Lineman Joe Shogrin Lineman stet John Ott Dispatch Coordinator Mike Rotert Lineman Bobby Sonnie Lineman Meet the Team k -- Jordan Powell Lineman Chad Schaefer Engineering Staff Terry Steege Senior Technology Engineer Marvin Powell Operations Manager, FEW AFB Craig Schuessler Crew Foreman Kerry Steele Cashier/ Receptionist Your Local I.T. Service Provider Specializing in: • Computer repair • Sales and installation • Virus removal • Custom programming • Networking & consulting services • Phone & tablet repair Lloyd Sisson Engineering Manager Bret Steger Information Systems Technician/Developer HIGH WEST DIGITAL SOLUTIONS A High West Energy Company In Cheyenne & Pine Bluffs (307) 245-4333 hwds.com f !m u g+ Dustin Thompson Lineman Rachel VanDeMark Mapping Specialist Mark Warden Lineman HighWestEnergy.com Karl Zerck Lineman Meet the Team Kristi Vasko Member Services Representative Brandon Wheeler Lineman Sam Trujillo Electrician Derek Walls Locator/Collector Bart Wilshusen Crew Foreman Chris Zitek Meter/AMI Technician Jeremy Tucker Lineman Garrett Zwiebel Lineman Bryan Warden Lineman Don Wood Warehouse High West Energy 117 • Electrical system maintenance • Lighting design • Circuit installation • Outlets & ceiling fans LU17 - LULU >Cfl0lar5nip vvIr1r1ers Cassidy Weibel $1,000 Cheyenne, Wyoming Jessica Gingerich $500 Dix, Nebraska Clay Kinnison $1,000 Grover, Colorado Katherine Reader $1,000 Kimball, Nebraska Sarah Davis $1,000 Peetz, Colorado Emily Keiter $1,000 Hillsdale, Wyoming Kenzie Spear $1,000 Cheyenne, Wyoming Sheridan Magninie $500 Dix, Nebraska Jack Ickes $500 Burns, Wyoming MacKenzie Faircloth $500 Cheyenne, Wyoming Tucker Norman $500 Pine Bluffs, Wyoming Jade Cass $500 Hereford, Colorado Madison Heithoff $1,000 Pine Bluffs, Wyoming Kenzie Graves $1,000 Pine Bluffs, Wyoming On behalf of High West Ener ,Tri-State Generation & Transmission, and Basin Electric Power Cooperative, we are pleased to announce 9Y the winners of our scholarships for the 2019-2020 school year. Each applicant filled out an application that highlighted their strengths, activities and honors.They also wrote an essay that addressed pp pp .9 why it is important for members of a community to help each other. Recipients were chosen by panel of judges from across the service territory, who have a background in education. Congratulations to p a all the recipients on your academic achievements! HighWestEnergy.com High West Energy 19 Hello