July 16, 2010

 

The LES Administrative Board held its regular monthly meeting July 16 at the Lincoln Electric Building. Items from the meeting, as well as other pertinent information, include the following:

 

SEP receives another $1 million to fund energy-efficiency measures

Another $1 million in credits to spur customers to install energy-efficient equipment is now available through Lincoln Electric System’s popular Sustainable Energy Program, it was announced Friday (7/16) by LES Administrator & CEO Kevin Wailes at the Administrative Board meeting.

The Sustainable Energy Program offers credits on equipment to residential, commercial and industrial customers to make their homes and businesses more energy efficient, he said.

“At mid-year, our finances were on target as projected,” Wailes said. “This enables us to apply another $1 million to the Sustainable Energy Program as originally budgeted.”

He pointed out the first $1 million in credits was reserved in a little over two months, and he expects these funds to be claimed quickly as well. About $233,000 of that amount is already reserved for customers who had applied for credits after this year’s initial program funding was gone and who are now eligible to participate in the program.

“Given the impact on customers who have installed energy-efficient equipment through the program, it’s easy to understand why the funds will be reserved quickly,” Wailes said. “After analyzing the savings for just two-thirds of our customers who have received Sustainable Energy Program credits so far this year, the amount of energy saved is equal to the annual use of 383 homes. That’s a significant savings.”

He said the Sustainable Energy Program is making three important contributions to the community. “The program saves our customers’ money, helps the environment by reducing energy consumption and demand growth, and serves as a local economic stimulus during financially-challenging times.”

Funds are available on a first-come, first-served basis to residential customers who install insulation and heat pumps or air conditioners, and to commercial and industrial customers for retrofitting efficient lighting and taking other energy-saving measures, he said.

To take advantage of the program, Wailes said customers should contact contractors participating in the LES program, who are listed on les.com. Contractors will provide an immediate credit, called an LES Green Credit, when eligible equipment is purchased. LES customers with accounts in good standing are eligible for an incentive, he said.

The program offers the following incentives:

• Whole-House Sealing and Insulation – Residential customers in existing homes with no wall insulation and minimal attic insulation can qualify for up to 50 percent of the project cost up to $1,000 to seal penetrations and upgrade insulation to current code standards. Customers also may qualify for a federal tax credit.

• High-Efficiency Heat Pump and Central Air Conditioning – Residential and small- to mid-sized commercial customers are eligible for incentive payments when replacing existing cooling systems. Heat pumps with a SEER rating of 15-16.99 qualify for a $150 per ton credit and $500 per ton for a SEER rating of 17 or higher. Air conditioners with a SEER rating of 17.00 or higher qualify for a $250 per ton credit. Replacement projects are limited to 50 tons. Customers also may qualify for a federal tax credit.

• Commercial and Industrial Lighting Retrofit – Incentive payments of up to $75 per fixture are available for customers reducing energy consumption and costs associated with lighting.

• Commercial and Industrial Energy Efficiency – Large commercial and industrial customers can receive incentives for achieving energy and peak demand savings through one or more of the following demand-shifting or energy-efficiency measures: air conditioning/chiller replacement, efficient motors retrofit, variable frequency drives retrofit, compressed air systems audit and upgrade, energy management system installation or upgrade and systems commissioning. A custom program is also available for consideration of other peak demand and energy-efficiency measures.

Contact information for contractors participating in LES’ Sustainable Energy Program is located on LES’ Web site at www.les.com.

 

LES recognized as one of 'Healthiest Companies in America'

Interactive Health Solutions recognized Lincoln Electric System today (7/16) as one of the “Healthiest Companies in America” for 2010 by significantly reducing employee healthcare costs through employee participation in a prevention-based health program.

IHS cited LES as one of 34 U.S. corporations out of more than 1,200 they evaluated that have significantly reduced healthcare costs through employee participation in a prevention-based health program in the workplace.

Brad Hiller, IHS vice president of sales, presented the award at the meeting of the Administrative Board and thanked LES for its commitment to employees, noting that 70 percent of healthcare costs are related to a person’s lifestyle choices. “If we can get our population to engage health management, we not only can improve productivity at work but also benefit healthcare costs.”

The ranking is based on a series of clinical evaluations of employee participants across an index of key health indicators designed by the Arlington Heights, Ill. company, a provider of population health management programs.

He said testing in 2009 showed more than 75 percent of LES participants were rated in the low to no risk category, which he called impressive. One employee was identified as having a severe life-threatening situation.

“As the nation continues its focus on healthcare, we expect population health management programs in the workplace to become a standard benefit for employees who improve individual health while efficiently lowering overall healthcare costs,” said Joe O’Brien, IHS chief executive officer. “We know that 15 percent of employees at most companies accrue 78 percent of all medical costs. But the data show that through proactive engagement in preventive healthcare, smart companies can start changing those numbers for the better.”

According to a study by The American Journal of Health Promotion, employers who invested in worksite health promotion saw a 28 percent reduction in sick leave absenteeism, 26 percent reduction in use of healthcare benefits and a 30 percent reduction in workers’ compensation claims and disability management.

Comprehensive preventive health programs provide testing focusing on specific medical problems that are contributors to high medical costs and low employee productivity, O’Brien said. IHS research indicates that in a typical company 58 percent of employees have medical conditions that are unknown and not being treated and require some type of medical intervention. The IHS program serves as a healthcare “detective,” finding symptoms and indicators before they become a treatable disease. Employees are assessed before they are symptomatic, rather than after they become ill and start incurring medical costs.

LES plans public meetings on structure of future rates

Electric rates could be affected by Congressional legislation and technology that make more energy use information available to customers, said Lincoln Electric System Consumer Services Vice President J. Todd Hall. In response, LES will hold four meetings with the public to explain how electric rates are determined and to have a conversation with the public on the design of future rates.

The four, hour-long, noon-time meetings start Wednesday, July 28, with an explanation of how LES currently sets rates, he said. Subsequent meetings will build on previous meetings and provide customers a view of the cost of service approach to setting rates and opportunities in the future to use new rate methods.

“We are seeking the engagement and input of our customers regarding how LES can best address the challenges and opportunities facing us through our rates,” Todd said. “We hope customers will become engaged and attend the meetings, although we don’t expect they will be available every time meetings are presented. Nevertheless, their insight will help us identify a direction for rates as we prepare for changes in the industry.”

He encouraged all LES customers to attend. Each presentation will last about 30 minutes, with customer discussion and a questions and answers session the remainder of the hour.

Meetings are set to last from 12-1 p.m., and customers are urged to take their lunch with them. Metered parking is available at Eagle Landmark Garage, 14th & N streets. A map of downtown parking can be found here. The topics, dates and locations of the meetings are as follows:

• July 28 / Current Rate Making at LES - Bennett Martin Public Library Auditorium (4th floor), 14th & N streets

• Aug. 18 / Influences on Electric Rates - Center for People in Need, 3901 N. 27th St.

• Sept. 8 / Electric Rate Options - Bennett Martin Public Library Auditorium (4th floor), 14th & N streets

• Sept. 29 / Electric Rate Options - Center for People in Need, 3901 N. 27th St.

Videos of the presentations and a survey will be made available on les.com for those unable to attend the meetings but wanting to offer their opinions.

 

Arthur Parks joins Administrative Board

Arthur Parks was seated Friday (7/16) as a member of the LES Administrative Board.

He is claims manager – property and casualty at State Farm Insurance where he has been employed since 1993. He leads the centralized auto claims operation for the six-state Heartland Zone. Lincoln is the sixth community where he has worked with the firm: Columbia, Mo., West Lafayette, Ind., Salem, Ore., DuPont, Wash., and Bloomington, Ill.

At State Farm, he has held leadership positions with its credit union, and he is leading a study of existing and emerging demographics in the Heartland Zone. He also has worked with legislators in several states on issues affecting the insurance industry.

He has been involved with the United Way and Chamber of Commerce and served on a school district citizen’s advisory council. He has been a Scoutmaster with the Boy Scouts of America and has volunteered as a YMCA youth sports coach the past five years.

Arthur was born and raised in St. Louis, Mo., and earned a bachelor’s degree in accounting in 1992 from Truman State University in Kirksville, Mo.

He was appointed by Lincoln Mayor Chris Beutler and approved by the Lincoln City Council when Kathy Campbell resigned from the board after serving six and one-half years.

 

The following statistics for June were presented to the Board:

June 2010	June 2009	Change
Number of Customers
129,610	129,074	+536 (+0.4%)
Retail Electricity Use (MWh)
291,517	277,030	+14,487 (+5.2%)
12-Month Average Outage Time/Customer (minutes)
18.5	13.9	+4.6