CFC announces Starheim’s new role

Kenergy announces the resignation of its President and Chief Executive Officer Greg Starheim.

Starheim has served in that role since July 2012.

In his notice of resignation, Starheim indicates the reason for his departure from Kenergy is to accept a position as senior vice-president for the National Rural Utilities Cooperative Finance Corporation (“CFC”), a prominent and well-respected national organization that provides debt financing and other financial services to electric cooperatives across the country. CFC is an important lender and business partner to both Kenergy and Big Rivers Electric Corp.

“This was a very difficult decision,” says Starheim. “I have thoroughly enjoyed being at Kenergy and having become part of the western Kentucky community.”

“We accept Greg’s resignation with regret but wish him well in his new position,” says Kenergy Board Chairman Bob White. “We are grateful for his leadership and service over the last three years but support his decision to go to work for such a respected and vital organization to the electric cooperative program.”

CFC was formed in 1969 as a cooperative-owned organization to raise funds from the capital markets in support of electric cooperatives. Their current loan and related-guarantee portfolio exceeds over $22 billion in financing.

“Efforts to find a replacement for Starheim are already under way,” says White. “The Board has established a search committee and has retained the services of an executive recruitment firm to assist in the process of selecting a new CEO. We hope to have our new CEO in place by the end of the summer.”

Starheim will continue to serve at Kenergy until he assumes his new duties at CFC in July 2015.

Kenergy is an electric distribution cooperative serving 56,000 member-owners in a 14 county region in western Kentucky.

By President and CEO Greg Starheim

Kenergy’s management team continuously looks for ways to improve service to members, to strengthen system reliability and to operate more efficiently.

I am excited to announce an upcoming upgrade to Kenergy’s electric system that will achieve all those objectives.

This year, Kenergy will undergo a replacement of existing meters with a new digital advanced metering system.

HENDERSON, KY. – Kenergy’s Board of Directors recently voted to return $3 million to its members in the form of a capital credit retirement during the summer of 2015.

The difference between a cooperative such as Kenergy and an investor-owned utility is that a cooperative is owned by those it serves. As a member-owner, members share in the co-op’s profits.

At the close of each fiscal year, profits are allocated back to the membership in the form of capital credits. This allocation is based on the dollar amount of electricity purchased during the same year.

The 2015 retirement is for electricity purchased between 1984 and 1986.

For the 2015 retirement, current members can expect a credit on their June bills. Former members who are eligible will receive checks in June also.

At this time, Kenergy continues to calculate amounts to be paid to members. After statements are mailed, members with questions may call the co-op’s office.

Regarding the estates of deceased members, capital credits are retired on a prorated basis upon notification of death. Therefore, some deceased members’ estates already received their retirement for 1984 through 1986.

Since 2012, Kenergy has returned more than $10 million to its members and former members in the form of capital credit retirements.

Stacy McDonald has been promoted to a Member Service Representative.

As such, she will be responsible for providing courteous, accurate and prompt service to members and the general public. She will assist members with deferred payment agreements and perform other member service functions.

Before coming to Kenergy in early January, Stacy worked 11 years as an office manager at Ohio Valley Medical Associates. She is completing her associate’s degree in business administration and is set to graduate in May.

Stacy lives in Robards with her husband, Scott, and son, Hunter.

Her hobbies are reading, traveling, cooking and spending time with family and friends.

In accordance with state law, the Kentucky Public Service Commission (PSC) has calculated the annual interest rate to be paid on member deposits for 2015.

Reserve funds that have been applied to fully offset a 2014 increase in Kenergy’s wholesale power costs to the co-op’s 19 industrial members is expected to end in August. The fund’s depletion will end a credit on Kenergy bills this class has received since Feb. 1, 2014.

Business members should expect their credits to end at the same time.

Earlier projections had the reserve fund drying up in July.

“We are pleased the credits are expected to remain intact until August,” said David Hamilton, Vice President of Member Services. “We’re sure our commercial and industrial members will be pleased with this additional assistance.”

Prior to Kenergy’s Annual Meeting to be held on June 9, individuals will be elected to represent District 2, 7 and 10.

A ballot listing the qualified candidates in a contested district election will be mailed in May to each Kenergy member residing within the district.  Members will also have the option to vote online in 2015.

FRANKFORT, Ky. (April 25, 2014) – The Kentucky Public Service Commission (PSC) today adjusted the revenue and rates of Big Rivers Electric Corp. to reflect the January departure from its system of the Century Aluminum smelter in Sebree.

The rates for the remaining customers will increase, although not by as much as the utility requested. Customers will not feel the effect of the rate increases until next year. The PSC agreed to let Big Rivers use reserve funds to fully offset the increases for as long as possible.

Once the reserve funds are exhausted, residential customers will see monthly bills increase by about $15 on average. But the actual size of any increase will vary depending on which of three distribution cooperatives serves that customer and on individual usage patterns.