When the Pocahontas County Barn Quilt committee decided tostart a barn quilt project, Pocahontas County Extension EducationDirector Nancy Jenson contacted Sue Peyton, from Sac County for helpgetting started. Sue Peyton whose son started Sac County’s barn quiltproject in 2005, told Jenson that if there was not the volunteer supportfrom the local electric cooperative to help hang the barn quilts that theyshould not start the barn quilt project.“One of my first calls was to TerryL. Bruns, Iowa Lakes Electric Cooperative’s President/CEO, who enthu-siastically supported the project,” said Jenson.

The Barn Quilts of Pocahontas County began in August 2005 toentice tourism and help preserve the agriculture heritage throughoutthe County. Since that time, Pocahontas County now has 28 barn quiltsites and three more expected by the end of the year.

According to Jenson, “The Pocahontas County Barn Quiltcommittee appreciates the support of Iowa Lakes ElectricCooperative in mounting the barn quilts.Without their expertise,our project would not have succeeded. Thank you Iowa Lakes!”

“A special thanks to the Pocahontas Service Center line crewwho has contributed hundreds of volunteer hours to mount the morethan 30 barn quilts currently displayed throughout Pocahontas andBuena Vista Counties,” said Terry L. Bruns, President/CEO. “Thisis just another outstanding example of your Cooperative’s com-mitment to community.”

inside

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2Manager’s Comments . .2Common Sense Energy for Iowa

Member AppreciationDays . . . . . . . . . . . . . . . .3

Tips when a FluorescentBulb Breaks . . . . . . . . . .4

Load Management . . . .4

Oahe/Basin Bus Tour . . .5

Financial Ratios . . . . . .5

Chebe® Bread . . . . . . . .6

CharacterCounts! . . . . .6

Touchstone Energy . . . .7

New Substations MeetIncreased Demand . . . .8

Youth Trip to D.C. . . . . .9

Walter Scott, Jr. EnergyCenter . . . . . . . . . . . . .10

Buy, Sell, Swap Ads . .11

Fall 2007Iowa Lakes Electric CooperativeILEC NEWS

Barn Quilts in Pocahontas CountyIowa Lakes Pitches In! Barn Quilt in Buena Vista County

Evan Balder, the son of David andPaula, started one of the first barn quiltprojects in Buena Vista County whenhe was a fifth grader at Albert CityTruesdale Elementary School, in AlbertCity, Iowa. Evan, along with the help ofhis family, started the barn quilt projectin January 2007 and wrapped up thequilt five months later in May 2007.

Iowa Lakes would like to congratu-late Evan whose barn quilt project

won a blue ribbon at the 2007Iowa State Fair!

The ILEC NEWSis a quarterly publicationfor ILEC member-owners.Look to the ILEC NEWS forCooperative news andevents, industry updates,helpful hints and specialfeatures.

Our MissionIowa Lakes ElectricCooperative is dedicatedto leadership andgrowth by providing reliable, competitively-priced energy whileoffering valuable servicesto benefit our members,our customers and thecommunities we serve.

Barn Quilt – Written by Evan Balder“ I needed a 4-H project this year andmy mom suggested a Barn Quilt. Wedid some research with the Sac CountyBarn Quilt Association and talked toRae Jean Nuehring who is helping withthe Barn Quilts in Pocahontas County.So we picked a pattern, measuredit onto our 4’ x 8’ sign boards, andpainted. After several coats of primerand paint, our quilt was ready to be puttogether, framed and hung. Thanks toDale Skog and his warm shop, wecould paint during the coldest days. Mydad, Uncle Dale and I then built theframe and attached the 8’ x 8’ quilt.Iowa Lakes Electric Cooperativeagreed to use their boom truck to hangour quilt. It is on the barn where myUncle Gary Balder lives on Highway 3,close to the M54 corner. The barn isowned by Mildred Hadenfeldt.Thanks go out to my family, ILECfor their complimentary service, and allthe other Barn Quilters mentionedabove who made it easier for us.”

Evan Balder painting his barn quilt

Barn Quilt in Rolfe, IA

Terry L. BrunsPresident/CEO

Iowa Lakes ElectricCooperative

2

Common Sense Energy for Iowa

The reasonably priced electric energy thatIowans currently enjoy is being ignored as theNew York Times, Washington Post and WallStreet Journal editorially propose that nationallyenergy costs have to increase significantly inorder to curb growing energy consumption, i.e.to mitigate future global warming.

The Senate Judiciary Committee has sched-uled votes on Senate Bill S. 772 to repeal the rail-roads’ anti-trust exemption (major league base-ball is the only other anti-trust exempt organiza-tion in the United States). Senator Harkin hassupported Iowa’s electric cooperatives with thisimportant issue while Senator Grassley haspolitely avoided providing any support.

Rural America and Iowa are getting financial-ly flattened by the unrestrained pricing power ofthe railroad industry. Put a penny on a railroadtrack, wait for a train to pass and see what hap-pens. Now you have a good idea of how ruralelectric cooperatives feel about our treatment bythe nation’s railroads.

Approximately 70-percent of Iowa’s reason-ably priced electricity is generated by coal whichhas to be delivered by rail in order to be econom-ical for such large deliveries.

Rail service has become so intermittent anddelivery so inconsistent that utilities can nolonger rely on a continuous supply of coal as ageneration resource. When there’s no coal, mostutilities turn to natural gas which is five to eighttimes more expensive than using baseload coal-fired generation plants.

House Energy and Commerce CommitteeChairman John Dingell is promoting a draft billthat includes a “carbon tax” on fossil fuels($100/per ton for the electric industry and 50cents/per gallon for the transportation industry)combined with a flawed commodity cap andtrade program. This proposal, if passed into law,has huge financial and economic impacts to thenational economy due to the inherent carbon taxmandates.

Earlier this year, the Office of Managementand Budget (OMB) halted all Rural UtilitiesService (RUS) loan lending for new baseloadelectricity generation. The House FY08Agriculture spending bill does not include any

baseload generation loan provisions while theproposed Senate Agriculture bill requires at leastan “AA” rating from a qualified rating agency forfuture cooperative electricity generation projectsto move forward.

Our elected officials at the State Capitol andour National Congressmen and Senators, espe-cially Senate Agriculture Committee ChairmanTom Harkin, need to clearly understand that theyare directly responsible for the additional energycosts that will be incurred by their legislativeactions and votes for punitive legislation man-dates.

Now is the appropriate time and an opportu-nity exists to bring these energy issues to our leg-islators attention in order to help them draft bet-ter legislation that is right for Iowa with aCommon Sense Energy approach.

Help Us to Help You by contacting your leg-islators and let them know your feelings aboutkeeping Iowa’s electricity a great value for todayas well as for tomorrow!

Here are the key contact information for your National Legislators:

n Senator Charles Grassley135 Hart Senate Office Building

Washington, D.C. 20510-1501Phone (202)224-3744chuck_grassley@grassley.senate.gov

n Senator Tom Harkin731 Hart Senate Office BuildingWashington, D.C. 20510-2202Phone (202)224-3254tom_harkin@harkin.senate.gov

n Congressman Tom Latham2447 Rayburn House Office Building

Washington, D.C. 20515-1505Phone (202)225-5476tom.latham@mail.house.gov

n Congressman Steve King1432 Longworth House Office BldgWashington, D.C. 20515Phone (202)225-4426steve.king@mail.house.gov

Much is at stake with the upcoming Iowa legislative session as well the Federal energy legislation currently being proposed in Washington, D.C.

As consumer demand for energy continuesto grow, how does your Cooperativeensure that an adequate supply of electric-

ity is available, is reliable and is affordable withoutharming the planet? This was the questionPresident/CEO Terry L. Bruns presented to hun-dreds of member-owners in attendance at each ofthe Cooperative’s four Member AppreciationDays events.

A total of nearly 950 member-owners were inattendance at all four of the member appreciationevents throughout the month of July. Each eventstarted with a complimentary dinner and theopportunity for the Cooperative’s employee teamand Board of Directors to interact with the mem-ber-owners.

During the evening, Bruns informed the crowdof the challenges Iowa Lakes is facing. Brunsexplained that the increase in demand for elec-tricity is not just local, it’s worldwide and theworldwide electricity consumption is expected todouble by the year 2030 to over 30 billion kilowatthours, according to the Energy InformationAdministration. However, Bruns explained thereare efforts by certain activist groups to drive downthe current emissions of greenhouse gases bydriving up the price of electricity in order to forcepeople to conserve and reduce electricity usage.

Other political groups suggest that no newcoals plants should be built ever – regardless ofthe emission levels. Bruns stressed that as nation-al and global demand for electricity continues togrow, additional base load generation is needed.Bruns explained that since electricity cannot bestored, the need for additional base load genera-tion is available consistently so that when you flipthe light switch, your lights turn on. “Instead ofeliminating coal fired plants, we need to embrace

and enhance the current technology to developcleaner burning or “greener” coal fired generationplants that will capture more greenhouse emis-sions while maintaining a balanced or diversifiedgeneration portfolio, which includes renewablegeneration such as wind and nuclear power,” saidBruns.

In addition, member-owners were treated to adelightful presentation by one of yourCooperative’s 2007 Youth Tour representatives -Sarah Chrestiansen and Kyle Anderson. Sarahand Kyle shared their recent experiences and pho-tos from their exciting week-long trip toWashington DC. Through outthe evening’s presentations, eightmember-owners won a $50 crediton their electric bill and at the endof the evening; one lucky mem-ber-owner won the grand prize ofa $100 off their electric bill! Inaddition to the bill credits,Heartland Security Services drewtwo lucky winners for one freesmoke detector and one free car-bon monoxide detector at eachmeeting. Plus, there were threelucky youngsters that won either a remotecontrol car or a set of Legos®. Also, everymember-owner in attendance was provid-ed a free Iowa Lakes Cell Mate as a gift.

Member Appreciation Days Winners

3

Rising Energy Consumption and Environmental IssuesTopics of Discussion at 2007 Member Appreciation Days

P O C A H O N T A S$50 WINNERS: Kenneth Eral,Pocahontas; Charles & PeggyHaman, Curlew; Alice Jessee,Pomeroy; Walter & LucilleWilkens, Albert City; FrancisLeners, Emmetsburg; LouieBeneke, Palmer; John Kramer,Pocahontas; Virgil Wagner,Pocahontas;$100 WINNER: Tom Flaherty, Pocahontas

E S T H E R V I L L E$50 WINNERS: Laverle &Joan Pomerenke, ArnoldsPark;Janet Hansen, Armstrong;Michael Christ Jr., Lakota;Marvin Fehr, Mallard; GaryJohnson, Estherville; Daryl &Bonnie Gross, Spirit Lake; JerrySanftner, Swea City; MarkPeters, Estherville;$100 WINNER: Melvin Weisbrod, Ringsted

S P E N C E R$50 WINNERS: Dean & LoisJohnson, Webb; RuthWhittington, Spirit Lake; WilburMerrill, Estherville; Roger Lundt,Spencer; John Sanders, SpiritLake; Clyde Weaver, Lake Park;Robert Treptow, Sioux City;Elizabeth Krebs, Lake Park$100 WINNER:Tom Nelson, Estherville

A L T A$50 WINNERS: Marlys Faber,Storm Lake; Arlene Lamont,Meriden; Marvin Peterson, Alta;Bruce French, Meriden; Arvid &Coleen Baughman, Newell;Francis & Jane Carlson, Alta;Gary & Anne Mohr, Fonda;John Pearson, Aurelia$100 WINNER: Dale Nydene, Storm Lake

1. Jim Hultgren, Board Treasurer, attempts to pick up pennies using a lineman’s safety glove.

2. Larry Walthart, Energy Advisor, answers member-owner questions at the Pocahontas event.

3. The complimentary dinners are always a big hit with everyone.

1.

2.

3.

P R E V E N T I O N T I P S

WHAT TO DO IF A FLUORESCENT LIGHT BULB

BREAKSFluorescent light bulbs contain a very small

amount of mercury sealed within the glass tubing.EPA recommends the following clean-up and disposal guidelines:

Open a window and leave the room for 15 minutes or more.

Carefully scoop up the fragments and powder with stiff paper or cardboard and place them in a sealed plastic bag.• Use disposable rubber gloves, if available

(i.e., do not use bare hands). Wipe the area clean with damp paper towels or disposable wet wipes and place them in the plastic bag.

• Do not use a vacuum or broom to clean up the broken bulb on hard surfaces.

Place all cleanup materials in a second sealed plastic bag.• Place the first bag in a second sealed plastic

bag and put it in the outdoor trash container or in another outdoor protected area for the next normal trash disposal. Note: Some states prohibit such trash disposal and require that broken and unbroken lamps be taken to a local recycling center.

• Wash your hands after disposing of the bag.

If a fluorescent bulb breaks on a rug or carpet:• First, remove all materials you can without

using a vacuum cleaner, following the steps above. Sticky tape (such as duct tape) can be used to pick up small pieces and powder.

• If vacuuming is needed after all visible materials are removed, vacuum the area wherethe bulb was broken, remove the vacuum bag (or empty and wipe the canister) and put the bag or vacuum debris in two sealed plastic bags in the outdoor trash or protected outdoor location for normal disposal.

What Is Load Management?Load Management is a program that helps moderate wholesale power costs,

improve system efficiencies and balance electric supply and demand. One goal ofa load management program is to keep the amount of electricity used in balancewith the amount of electricity generated, which results in the reduced or thedelayed need to build future power plants.

A second goal is the availability and price of electric energy in the wholesalemarketplace. By managing or interrupting electric loads so that all are not on atthe same time, your Cooperative is able to reduce or shift wholesale power pur-chases to a low-cost time of day (off-peak), thus saving money and resources.

A third goal is to maintain member-owner’s existing comfort levels. Themajority of your Cooperative’s existing load management participants are notinconvenienced by the load management program. In fact, most member-ownersactually forget specific equipment is cycled off and on because there is no changein the hot water availability or comfort level in the house.

An electric utility system works best when electric load remains steady 24hours a day. But because of our lifestyles and human activities, electric demandvaries from hour to hour. At certain times of the day – usually evening meal times– demand usage and wholesale power prices are the highest. Electric use drops offsharply later in the evening hours. This creates peaks and valleys in the electricload pattern and market prices.

Why Offer Load Management?By managing the electric use through load-control programs electric utilities

can level those peak demands and price fluctuations and therefore operate theentire system more efficiently. Under load management programs, certain equip-ment, including water heaters, is cycled off and on while still maintaining adequatecomfort levels for the member-owners.

Member-owners participating in load management programs agree to haveload interrupting switches installed on qualifying equipment. When electricdemand or energy prices reach peak levels, the switches cycle the equipment offand on to control electric demand, thus helping decrease electric costs foreveryone.

For more than 20 years, Iowa Lakes has provided its member-owners inCherokee County with the successful energy conservation Switch Makes Centsload management program. Current Switch Makes Cents participants in CherokeeCounty agree that comfort levels are maintained in the home even when theequipment is switched off periodically during high demand or peak time periods.

Iowa Lakes is preparing to offer this worthwhile program to all our member-owners in 2008/2009. Contact your local energy advisor at Iowa Lakes and askabout our energy efficiency equipment rebates, special rates and incentives avail-able to you through your Cooperative’s Switch Makes Cents program.

4

Customer Energy News

Conserve Energy and Save Moneywith Load Management

12

3

4

Iowa Lakes is now a certified CFL recycling drop-off center for our member-owners. Because there is a very smallamount of mercury in each CFL bulb, member-owners can voluntarily bring their used CFL bulbs to Iowa Lakes’ officein Estherville and we will ship these bulbs to a fluorescent environmental disposal service center that will recycle anddispose of these used CFL bulbs properly. At this time, Iowa law does not have CFL recycling requirements. Eventhough the state of Iowa does not require that CFL bulbs be recycled, Iowa Lakes would like to encourage everyone todrop off your used CFL bulbs to be recycled and let us help you do the right thing environmentally!

Some member-owners of Iowa Lakes ElectricCooperative can say they have seen exactly wheretheir electricity originates.

Three separate three-day educational power supplytours were sponsored this summer by Iowa Lakes ElectricCooperative and Northwest Iowa Power Cooperative(NIPCO), one of your cooperative’s wholesale power sup-pliers. In addition to the educational portion of the tour,member-owners enjoy good food and fellowship.

At the Oahe Power House near Pierre, SD, participantshad the opportunity to try their skill at controlling theMissouri River during adverse weather conditions. Theinteractive display shows the many considerations the U.S.Army Corps of Engineers takes when operating the dams.

On the second day of the tour in West-central NorthDakota, the member-owners were amazed at the numberof products made from lignite coal at the Great PlainsGasification plant. Electric power and natural gas are theprinciple products, but there are also many other chemi-cals, fertilizers and adhesives, as well as CO2 which is pipedto Canada and used for oil recovery.

Another highlight of the tour was a visit to the adjoin-ing coal mine. Seeing some of the largest equipment in theUnited States in operation is spectacular. Some of thetourists even watched as coal was blasted in a mine pit. Themember-owners were pleased to know there is enoughcoal for future generations to come and to see the success-ful results of reclamation of the land after mining is com-plete. The land is carefully returned to either natural prairieor cropland depending on its original use. Often member-owners catch a glimpse of the antelope that graze on thereclaimed acres.

In addition to the tours, the member-owners got abrief look at electric cooperative history, and gained anew understanding and pride in their ownership of thecooperative. The tours are part of the cooperatives’ com-mitment to provide education for directors, employeesand member-owners.

If you would like to be a part of this experience nextyear, watch this newsletter for the opportunity to enter thedrawing for next years participants.

Cooperative Banker Reviews Key FYE 2006 Financial Ratios with Board of DirectorsBy Terry L. Bruns, President/Chief Executive Officer

On September 27, 2007, your Cooperative’s banker,Regional Vice President Steve Kettler who represents theNational Rural Cooperative Finance Corporation (CFC),Herndon, Virginia updated your Board of Directors onyour Cooperative’s financial performance for the calen-dar year of 2006.

CFC’s Key Ratio Trend Analysis (KRTA) provides acomprehensive 5-year historical review with 145 key per-formance ratios included in this report that analyses and

compares Iowa Lakes to electric cooperatives nationally (819) within the State ofIowa (34) by similar system size (84) as well by primary wholesale power supplier.

Various key ratios and operating results that maybe of interest to member-owners are as follows:

Iowa Lakes is ranked the 4th highest cooperative system in Iowa for average number of consumers served (11,964).Iowa Lakes is ranked the 12th lowest cooperative system in Iowa for average number of consumers served per mile of distribution line (2.55).Iowa Lakes is ranked the 2nd highest cooperative system in Iowa for total kilowatt-hours sold (420,160).Iowa Lakes is ranked the 16th highest cooperative system for the average number of consumers served per employee (192.97).Iowa Lakes is ranked the 5th highest cooperative system in Iowa for annual growth in Total Utility Plant by investment dollars (8.37%).Iowa Lakes is ranked the 4th highest cooperative system in Iowa for average residential kilowatt-hour usage per month (1591.09 kWh).Iowa Lakes is ranked the 9th lowest cooperative system in Iowa for Total Controllable Expenses per Total kWhs sold in mills per kWh (13.89 or 1.39 cents per kWh).Iowa Lakes is ranked the 10th lowest cooperative system in Iowa for Farm Residential revenue per kWhs sold in mills (90.33 or 9.03 cents per kWh).Iowa Lakes is ranked the 14th lowest cooperative system in Iowa for small commercial revenue per kWhs sold in mills (77.56 or 7.76 cents per kWh).Iowa Lakes is ranked the 12th lowest cooperative system in Iowa for Large Commercial revenue per KWHs sold in mills (51.05 or 5.10 cents per kWh).Iowa Lakes is ranked the 8th highest cooperative system in Iowa for Modified Debt Service Coverage (2.07) whereby our CFC debt covenantsrequires 1.35 ratio two of the last three years to be in compliance.

In summary, your Cooperative’s electric retail rates are at or below the Iowamedian for revenue received from all member rate classes and operating expensesare well below the Iowa median on a per kilowatt-hour sold basis.

Most all of your Cooperative’s key financial ratios remain strong or stable eventhough the cost of wholesale energy (65 cents per every dollar paid to Iowa Lakesby member-owners in 2006) is rising and will continue to rise.

This financial performance by your Cooperative validates our mission toyou, the member-owner, which is: “Iowa Lakes Electric Cooperative is dedicat-ed to leadership and growth by providing reliable, competitively priced energywhile offering valuable services to benefit our members, customers and thecommunities we serve.” Thanks for allowing your Cooperative team to serveyou electrically today as well as tomorrow and into the future. The Power ofMany, Working as One!

M e m b e r - O w n e r N e w s

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OAHE/BASIN TOURS

DeWayne and Berneice Maass of Lakota along with Karen and MichaelSchaaf of Algona enjoyed a trip to the Oahe Power House in South Dakota.

6

In 2007, in an effort to further expand his eight-year old business, Iowan Dick Reed completed apersonal journey and moved his growing compa-ny, Chebe Bread Products, back to Spirit Lake inthe Iowa Lakes Corridor.

“Vermont was beautiful, but difficult for dis-tribution. Spirit Lake, Iowa seemed like the per-fect spot to relocate. The Iowa Lakes area has thequalities of rural Iowa with the added benefit of amore vibrant tourist economy. Spirit Lake is closeto the interstate for easy distribution and has astrong workforce for production. It’s a differentway of life and it’s been great to be back,” saidReed, owner of Chebe Bread Products.

Chebe products (pronounced chee-bee) arevariations on Brazilian cheese bread, a staple inBrazilian culture made primarily of manioc flour,a derivative of the yucca root. Products consist oftwo lines, one of oven-ready frozen dough suchas pizza crust and rolls, and another of dry mixes.

They are available in most Hy-Vee foodstores, other grocery and specialty storesaround the country and online directly at

www.chebe.com. Reed says there is grow-ing international interest in his stock ofdry bread mixes and frozen products. Now

working on developing new gluten-freeproducts, he expects to double his revenues

and staff in the next three to four years.

Chebe® Breads develops products that fight allergies“Dick’s move from the East Coast back to

Spirit Lake illustrates that our area has a lot tooffer to businesses,” said Kathy Evert, presi-dent of the Iowa Lakes Corridor DevelopmentCorporation. “The Iowa Lakes region has astable and predictable business climate andwelcomes new business, industry, and entre-preneurs. We are thrilled to welcome Dickback.”

A healthy byproduct of Chebe’s products,several of which were pictured in the June 11,2007 issue of People Magazine, is that they arenaturally gluten-free. This is a comfort tothose who suffer from Celiac disease, a strongallergic reaction to any kind of gluten. Glutenis a special protein that is present in wheat,rice, oats and other grains. It is estimated that1 in every 133 Americans suffers from Celiacdisease, which causes abdominal pain, musclecramping, and dehydration simply by eatingfood from grocery store shelves that containgluten.

The gluten-free market is growing rapidlyand makes up 99 percent of Chebe’s market.The company, which was founded out ofReed’s West Des Moines living room in 1999,originally relied on a New York-based compa-ny for its manufacturing. Chebe has sincedeveloped its own manufacturing facilities.Their Spirit Lake facilities in the LakesBusiness Park, Reed hopes, will help bringanother dimension to the town’s service,tourist, and agriculture-based economy.

Note: Reprinted with permission from Iowa Lakes CorridorDevelopment Corporation

The main ingredientsin Chebe products aremanioc flour andmanioc starch, whichare derived from themanioc root. Manioc, atropical plant, is alsoknown as yucca andcassava. Processedmanioc is a very versa-tile food ingredient thatis prepared in manydelicious ways.

E C O N O M I C G R O W T H N E W S

SUPPORTING CHARACTER COUNTS! DEVELOPMENT TRAINING

Iowa Lakes Electric Cooperative once again sponsored and hosted a two-daytraining session at the Cooperative’s Estherville headquarters facility to help assistarea schools with their character development programs. Approximately 30 areaeducators participated in the training workshops organized by the Institute forCharacter Development called Character Counts! through Drake University.

The Character Counts! program provides educators with the tools needed toinstill the six pillars of character: Trustworthiness, respect, responsibility, fairness,caring and citizenship. These six characters of ethical values (pillars) help build thefoundation of good character.

“Iowa Lakes supports the Character Counts! program because its six pillars aresimilar to the Cooperative’s four core values of integrity, innovation, accountabilityand commitment to community,” said Amy Howard, Manager of Customer Services.Iowa Lakes Electric Cooperative is proud to support Character Counts! by buildinga strong, caring youth and adults throughout Northwest Iowa.

7

Charity funds raised by golfers reached arecord $34,620 on July 16, 2007, during theeighth annual Touchstone Energy MidwestGolf Invitational, pushing the total raisedthroughout the history of the tournamentover the $200,000 mark.

Iowa Lakes Electric Cooperative, alongwith Northwest Iowa Power Cooperative(NIPCO), one of Iowa Lakes’ wholesalepower suppliers, helped sponsor the event atthe Dakota Dunes (SD) Country Club. Theevent was attended by 88 golfers representingapproximately 61 businesses from nine stateareas.

The funds raised will be donated to thekids’ healthcare charity, St. Luke’s Children’sMiracle Network in Sioux City, IA. Throughthis event, the rural electric cooperatives – allaffiliated with Touchstone Energy – part-nered with 27 local, regional and national

businesses to show their commitment tocommunity by raising money for a regionalcharity. St. Luke’s Children’s Miracle Networkhas received a total of $195,470 since theevent began. The total raised for charities,including Children’s Miracle Network, overthe event’s eight-year history is $206,970.

Children's Miracle Network is a non-profit organization dedicated to saving andimproving the lives of children by raisingfunds for 170 affiliated hospitals serving chil-dren throughout the United States. Since itbegan in 1989, St. Luke’s Children’s MiracleNetwork has raised more than $4.5 millionfor children’s healthcare in Siouxland. Allgifts to St. Luke’s Children’s Miracle Networkstay locally and are used to purchase newequipment and supplies and support pro-grams and services designed specifically forchildren and their families.

Iowa Lakes Electric Cooperative, along with Corn Belt PowerCooperative and other neighboring distribution cooperatives, helpedsponsor the Touchstone Energy hot air balloon during Register’sAnnual Great Bike Ride Across Iowa (RAGBRAI) when thousands ofbicyclists came to Spencer, Iowa on Sunday July 22, 2007.

However, the winds were too strong Sunday evening in Spencerand the balloon could not fly, although the route had the 10,000-pluscyclists pedal by the displayed basket and Touchstone Energy trans-port van. Weather conditions were better on Monday evening inHumboldt, IA where RAGBRI visitors were given tethered ridesabove the downtown festivities. The balloon and its crew then trav-eled on to Hampton, IA for the next evening’s events.

The Touchstone Energy balloon, which is over 77 feet tall and 60feet wide when fully inflated, was created in 2000 to serve as a good-will ambassador for Touchstone Energy Cooperatives, promoting thebrand and the values of integrity, accountability, innovation andcommitment to community.

Cheri White, chief pilot and general manager of the balloon team,has been flying balloons for over 30 years and has over 1,250 pilothours. She is a former Women’s National Hot Air Balloon Champion.

White comments,“RAGBRAI is a fascinating event. The commu-nities really pull together to host – there’s an amazing amount ofwork to make it all happen. It’s a good place for the TouchstoneEnergy balloon to appear because it promotes the goodwill of thecooperatives and their involvement in their communities.”

Touchstone Energy Golf Event Raises Dollars for Kids’ Health Care

Touchstone EnergyMakes Appearance at RAGBRAI

Caption: pictured from left to right [PaulHindman, Cherokee Rural Water, JedSkogerboe, Manager of Business &Community Development, Iowa Lakes ElectricCooperative; Pat Walsh, Cherokee Foreman,Iowa Lakes Electric Cooperative; DickAnderson, Superintendent of FieldOperations, Iowa Lakes Electric Cooperative.

This summer, Iowa Lakes Electric Cooperative’s line crews werebusy building and expanding the distribution facilities for the threenew substations that Corn Belt Power Cooperative has built withinthe Cooperative’s eight county service territory to meet theincreased demand for electricity by Iowa Lakes’ member-owners.

The three new substations (Vernon, Hummel and Range) areowned by Corn Belt Power Cooperative, one of yourCooperative’s two wholesale power suppliers, who is responsiblefor the construction, operation and maintenance of the transmis-sion lines and substation facilities that deliver electricity to yourCooperative’s distribution facilities. It is your Cooperative who isresponsible for delivering the electricity from the substation toyou, our member-owners. Each substation took approximatelytwelve months to plan, develop, and construct at a cost of approx-imately $500,000 each.

“While expanding and upgrading substations is costly, they doprovide valuable benefits to Iowa Lakes’ member-owners such asincreased capability of the substation to meet the present and thegrowing power requirements of our member-owners,which is beingdriven primarily by the overall economic growth in Northwest Iowa,a quickly developing ethanol industry and industrial and commer-cial expansions throughout our electric service territory,” said RickOlesen, Vice President of Operations and Engineering.

8

New Substations Meet

Increased Demand

Above, crews

install pad mount-

ed switch gear

outside the

Vernon Station.

Iowa Lakes’ linemen

assist Corn Belt Power

Cooperative by rerout-

ing and rebuilding

transmission lines into

the Ayrshire Station.

“For example,” Olesen continues,“the Vernon substation will deliv-er 5,000 KVA of electrical power to support the Daybreak poultry facil-ity near Graettinger, IA, the Range substation will deliver 5,000 KVA ofelectrical power to support the increase in residential growth aroundthe East Lake Okoboji/Lower Gar area near Milford, IA and theHummel substation will deliver 7,500 KVA of electrical power to sup-port the Green Plains Renewable Energy - Superior Ethanol plantlocated near Superior, IA.”

From the new Hummel substation, Corn Belt Power Cooperativewill build a new 69,000 volt (69 KV) transmission line that will extendfrom the substation approximately 1.5 miles and tie into an existingtransmission line. The Vernon substation required the most significanttransmission extension with approximately 6.5 miles of 69 KV trans-mission line extending from East of Wallingford to the substation siteEast of Graettinger, IA.

Not only did your Cooperative’s line crews and Corn Belt PowerCooperative have an aggres-sive new constructionschedule this summer, butthey also have been work-ing on upgrading existingsubstations and distribu-tion facilities.

continued on page 9

At right: Todd Bell, lineman from the Emmetsburg Service Center Linecrew, assistsin installing the transmission line at the Ayrshire Switching Station.

Sarah Chrestiansen and Kyle Anderson of Estherville, IA were amongthe more than 1,500 high school students from across the country whoparticipated in the Rural Electric Youth Tour held June 9-15, 2007, inWashington, D.C. Selected on the basis of application questionnaire,interview and their academic achievements, Chrestiansen and Andersonwere sponsored by Iowa Lakes Electric Cooperative.

Each year in June, an activity-filled week affords these high school stu-dents opportunities to learn first-hand what it is like to be involved in pol-itics, community development and today’s social issues.

“Cooperatives support the Youth Tour because they realize thattoday's teenagers need an opportunity to experience government first-hand,” says Tresa Hussong, Vice President of Customer & CorporateRelations. “The Youth Tour is a life-changing experience for many of theparticipants. Educational opportunities such as the Youth Tour, areextremely important to cooperatives and the communities we serve.”

While in Washington, the Iowa Youth Tour delegation, made up of 42students, met with congressional leaders, visited historic sites includingArlington National Cemetery and Mount Vernon. The group alsoexplored the Smithsonian museums and nearby monuments. The themeof the 2007 Youth Tour was “Commitment to Community.”

Chrestiansen and Anderson said, they had the experience of a lifetimeworking with peers from other states and the NRECA staff during theWashington stay.

9

Iowa Lakes Electric Cooperative is pleasedto announce that Board of Director, VernonWinterhof of Aurelia, Iowa has been electedto the Iowa Area Development Group (IADG)board of directors. IADG, which was estab-lished in 1985, provides business and com-munity development services to clients andcommunities of Iowa’s Electric Cooperativesand participating municipal utilities.

Winterhof’s familiarity with the electriccooperatives, agri-business, Iowa State

University extension program, and commu-nity based philanthropy will be valuable inhelping govern and guide IADG. Winterhofhas served nine years as a board of directorfor Iowa Lakes Electric Cooperative and fouryears as a director Northwest Iowa PowerCooperative (NIPCO). He has also been activein a variety of community and state leader-ship positions. Congratulations to VernonWinterhof!

Electric Cooperative Youth Visit Nation’s Capital;S e e G o v e r n m e n t i n A c t i o n

SarahChrestiansen

andKyle

AndersonW

ashington,D.C.|2007|Youth

TourTrip

W I N T E R H O F E L E C T E D T O B O A R D O F D I R E C T O R S

“While in Washington, D.C., I met people from all overIowa and the country and visited historical monuments,museums and Capitol Hill,” Chrestiansen said. “I learnedso much about our nation’s history and the role of electriccooperatives in the energy industry.”

“What I learned on the Youth Tour makes me proud tobe an American and to show that America’s young peopleare involved and care about this country and our commu-nities,” Anderson said.

Line crews finished an expansion project atthe Gar substation, located East of ArnoldsPark, IA, which was expanded and upgradedfrom 5,000 KVA to a 7,500 KVA substation sizeto provide improved electric service to TheIowa Great Lakes area in response to continuedgrowth of residential housing developments. Inparticular, the Gar substation project willimprove voltage support and will allow foradditional switching capabilities during electri-cal outages in the area.

“The improved ability to perform substa-tion maintenance through equipment redun-dancy and switching flexibility further

enhances the reliability of our electric distribu-tion system,” said Olesen.

Other substation expansions involved theRembrandt substation near Rembrandt, IA andthe Pocahontas substation near Pocahontas, IA,along with hundreds of individual new serviceextensions and upgrades.

In addition, Corn Belt Power Cooperativeconstructed a 69 KV transmission switchingstation named Pelican Station located East ofMilford, IA to ease capacity constraints andimprove reliability to our member-owners.According to Olesen, “This particular area hasbeen supported by Alliant Energy transmission

facilities which had reached its full capacity andhad experienced frequent reliability problemsdue to winter ice and wind conditions, and thePelican Station will greatly improve the reliabil-ity of the transmission grid in this area.”

Iowa Lakes and Corn Belt PowerCooperative are also making safety enhance-ments to the substations, by installing securitycameras inside the chain link fencing. The newsecurity cameras will enhance public safety atsubstations while providing valuable visualinformation during outages or storm relatedevents.

New Substations Meet Increased Demand, cont.

Another Great Timeat the Clay County Fair!

Thanks to all of you who came to visit usat Iowa Lakes Electric Cooperative’sbooth during the Clay County Fair. Theteam at Iowa Lakes enjoyed talkingabout the benefits of energy efficiencyand renewable energy sources. MichaelRiedman, Electric Technology Coordina-tor, Basin Electric Power Cooperativeentertained those who stopped by thebooth with his crowd pleasing electricgadgets, which included the motorizedr2d2 droid from the Star Wars films that

responds to voice commands and the self-balancing Segway® PersonalTransporter that had people of all ages waiting in line for their turn tomaster riding the two-wheeled scooter.

Over 730 member-own-ers received their free ILECCell Mate and refrigeratormagnet by filling out thefair coupon located in theAugust monthly newsletterand dropping it off at ourfair booth.

Congratulations to thewinners of the daily draw-ings who received a $25credit on the October bill statement. Winners were: Robert Elser, LakePark; Donald Heerdt, Ringsted; Hazel Barth, Spencer; Dennis & Karen Rut-ter, Spencer; Robert & Ruth Lowry, Milford; Leland Halder, Pocahontas;Lorene Hoffman, Lake Park; Bob Sonksen, Curlew; Joe Warburton, Mil-ford. Thanks again to all of you that stopped by to say hi at the fair. Wehad a great time and we hope to see you and many more member-own-ers again next year!

N e w s Y o u C a n U s e

B U I L D I T R I G H T WO R K S H O P S

I L E C N E W S

6

Workshops are hands-on and will run from 9 a.m. to 3 p.m.Morning refreshments begin at 8:30 a.m. and a noon meal isincluded. Registration is free. Pre-registration is encouraged someal plans can be made. For more information or to register,contact Iowa Lakes Electric Cooperative at 800-225-4532 or byemail anni@ilec.coop. You can also register online atwww.build-it-right.com.

“Build It Right” Energy EfficiencyConstruction Workshops Planned

Iowa Lakes Electric Cooperative will join area Touchstone EnergyCooperatives in sponsoring four energy-efficiency building workshopsthis fall. The full-day Saturday classes will be held November 10 andDecember 1, 2007 in the carpentry shop at Iowa Central CommunityCollege (ICCC), Fort Dodge, Iowa; November 17, 2007 at Iowa LakesElectric Cooperative’s office headquarters in Estherville, Iowa andDecember 8 at the Carrollton Inn, Carroll, Iowa.

“Helping our member-owners become more energy-efficient isimportant,” says Terry L. Bruns, President/CEO. “Through this work-shop we’ll offer practical ideas for them to save money, increase thecomfort of their homes and make the best use of energy resources. Theworkshop can provide assistance whether you are building, remodelingor just upgrading your home.”

Workshop leader is Bill McAnally, energy efficient building expertand ICCC carpentry instructor. Class participants will learn the mosteffective things they can do (or hire contractors to do) to save energy -including insulation, window replacement, heating system upgrades andtightening their homes from air leaks. Area vendors will be on hand todemonstrate energy efficient products and technology.

This is the sixth year Iowa Lakes Electric Cooperative has spon-sored fall workshops as part of its “Build it Right” focus on energy effi-cient construction.

More than 500 people attended an event cel-ebrating the completion of the Walter Scott, Jr.Energy Center Unit 4 August 7, 2007, in CouncilBluffs. The 790-megawatt plant, jointly ownedby Corn Belt Power Cooperative, MidAmericanEnergy Company and 13 other utilities, came online June 1, 2007.

The Walter Scott, Jr. Energy Center Unit 4 isthe first of its kind in the nation to employadvanced supercritical technology, which hasthe capacity to produce enough electricity topower 650,000 homes and businesses. With thisproven technology, carbon dioxide emissions

are reduced by approximately 15 percent permegawatt of electricity generated compared tocoal-fueled power plants built in the 1970sand 1980s. That means less coal is required forthe generation of an equivalent amount ofelectricity output.

Greg Abel, president, MidAmerican EnergyHoldings Company, commented on the successof the construction project, “With passage ofHouse File 577 six years ago, the legislatureallowed the framework for Iowa’s energy policy,which led to this project. This plant demon-strates the importance of bringing long-termenergy and reliability to the Midwest.MidAmerican and its joint owners have secureda new energy supply by developing energyresources within the state.”

Abel also emphasized the advantagesoffered by the advanced supercritical technolo-gy of the new coal plant. “This is the first plantin the U.S. to use advanced supercritical tech-nology. This plant proves it’s possible, with avail-

able and proven technology, to use the nation’smost abundant natural resource to help meetconsumers’ growing appetite for electricitywhile addressing concerns about the environ-ment.”

Iowa Governor Chet Culver andCongressman Steve King also spoke at theevent, recognizing the unit as a reliable source ofpower for Iowa.

Walter Scott, Jr. Energy Center Unit 4 repre-sents a $1.2 billion investment and is the largestelectric generation project in Iowa.Construction began in September 2003 andemployment numbers peaked at more than2,000 with an estimated $300 million in con-struction payroll. With the addition of Unit 4,Walter Scott, Jr. Energy Center employs 207people with an annual payroll of $17.5 million.

Corn Belt Power Cooperative is one of IowaLakes Electric Cooperative’s wholesale powersuppliers who owns 5 percent, or 42 megawattsof the 790-megawatt plant.

New Walter Scott, Jr. Energy Center The largest electric generation project in Iowa

10

ANTIQUES AND COLLECTIBLESFor Sale: Step Tool Box, mounts on axle of A orB JD tractor; 18' JD Straight Disc; 18' Internation-al either straight or made to tandem disc; 16'bottom half of wood extension ladder. 712-843-5788.For Sale: Antique 4 row corn planter.Antique stainless steel shoes. 712-843-5788.HOUSEHOLD ITEMSFor Sale: 10,000 BTU window air conditioner,$75. 712-336-4243 or 712-336-1288.For Sale: Patio Set: Table, Chairs and Umbrella.Good condition. 712-284-1481.For Sale: 1000 gal. Propane Tank, power cleanedand painted, like new. 712-843-5788 For Sale: 6’ Anderson Patio Sliding door withscreen. Excellent condition. 712-338-4047.ELECTRONICSFor Sale: Radio Shack Electronic Keyboard, Cus-tom Tone Synthesizer, Variable Touch Response.Instruction and song books included, $200. 50’TV tower w/antenna, $250. 712-852-4929.VEHICLESFor Sale: 1998 Chevy S10 Pickup 4 cyl. 2WD,5Spd, Dark Blue, Gray Inter, Ext. cab w/3rd door.171,000 mi., $3000. 712-376-2215.For Sale: 1996 Chrysler Town&Country Van. 712-332-6341 or 712-744-3271.For Sale: 2000 Buick Century, white 4 door,clean. 712-260-1805.For Sale: 1998 white Oldsmobile 88, 4 door,excellent care, 150,000 miles, $1850. 712-443-8811.

RECREATIONFor Sale: Fish house. 11’L x 7’4”W x 7’4”H. 712-363-0161 after 4pm.For Sale: Class A Motor Home 1978 GMC Royale,top of line, completely up dated, alwaysgaraged, no smokers/animals, ready to roll. 712-336-2549 or 712-330-6339.For Sale: 1979 20' Majestic Travel Trailer, awning,air, microwave. Very sharp. 712-336-5017 or712-330-4998.For Sale: 2003, 29ft, Fifth Wheel Travel Trailer, 2slides. Bought new; used 6 times. Very goodcondition. 712-262-2556.For Sale: Pontoon Swim Float 8’x12’, w/slide &ladder. $150 OBO. 641-585-2420 or 641-590-6340 cell.FARM EQUIPMENTFor Sale: SnowCo grain cleaner, always inside. 6row banding fertilizer w/nurse cart. 712-338-4839.For Sale: 1964 IH 2606 Industrial Tractor, 6 cylgas, heavy duty hydraulics & large bucket, $4500.712-284-1819 or 712-299-1491.For Sale: Axle mounted tool box and step com-bination for JD A or B tractor. 712-843-5788.For Sale: HOUGH 30 Payloader, Excellent Condi-tion. 712-434-2430.For Sale: Tractor Chains for M Farmall, $175;Wheel Weights full plus half set, $15 each;Hydrolic Pump for M Farmall, $150. 712-362-2682 8am-2pm or leave message.For Sale: Wire Dog Panels, like new. 712-260-8176.

For Sale: Steel posts in bundle of 5. 712-843-5788.For Sale: 1949 H Farmall, $1000. 712-362-57598am-2pm or leave message.For Sale: 10" Craftsman Table Saw, $150; 250AMP Lincoln Welder AC/DC, $400. 712-362-57598am-2pm or leave message.For Sale: 20’ windmill. 712-425-3242.FARM PRODUCEFor Sale: About 25 acres of brome grass to becut & bailed. 712-362-7266 or 712-362-3318.LAWN AND GARDENFor Sale: 2003 Scotts JD Riding Lawn Mower, 42"cut, 17hp, 149 hours--Excellent condition, $750(Picture upon request.) 515-884-0038 or 515-320-1448.For Sale: Redwood deck 11'5" x 17'5". Includessteps, railing and seating. Excellent condition.712-338-4047.LIVESTOCKFor Sale: 4 Mares. 2 App.; 2 quarter. 712-864-3684.FREEFree: Kittens, mostly gray. 712-843-5395.Free: Antique upright piano, you move. 712-838-4300 or 712-838-4899.WANTEDWanted: 6 hp outboard motor, Evinrude, blueblack color, Fisherman written on front. 712-426-4372 or 712- 426-2480.

n To Whom it May Concern,I felt compelled to write this thank you to the

employees of ILEC and recognize the employeesthat worked with me on 09/07. My mother want-ed to put the overhead service wires under-ground and upgrade the 100-amp service to a200-amp. I was already out at the farm when thecrew from ILEC showed up. I was in AWE. For amoment it seemed like I was the only customerthese guys had. To make a long story short, I mustsay and I can’t reiterate this enough, I wasimpressed with the entire crew’s attitude and per-formance. They all were very cautious and kind.They even took extra precautions not to damagethe grass even though it was a pasture. Thankyou one more time for having such a great crew.

- Brad Smith, Spencer, IA

n Dear Iowa Lakes Electric,I would like to thank you for providing the

Character Counts training for all the teachersand administrators in the surrounding area whocould attend at no charge The training was awe-some! So was the food. Thank you for supportingchildren, families and teachers as we strive toenhance character in ourselves and others.

- Tammy Delaney,Spencer Community Schools

n Iowa Lakes ElectricThank you so much for the gift of the savings

bond. I truly appreciate your support! It was verygenerous of your business.

- Abby Salton, 2007 Iowa State Fair Queen

n Terry Bruns and Staff,Thank you so much for the most interesting

and informative presentation on “Safety First.” It iscaring people like you who take the time out oftheir busy schedule to go the extra mile to make adifference and make the world a better and saferplace. I appreciate all you did for us!

- Marie Kaye Shaffer,Director/Extended Day Services

n NIPCO and Iowa Lakes,Marlene and I want to thank you for the

opportunity to go on the Oahe Basin Tour. Wecan appreciate all the investment and work of thepeople who provide us with electric power at theflip of a switch. All the accommodations, busride, motel rooms and meals were all A #1.

- Thanks, Wayne Parker

L E T T E R S F R O M O U R M E M B E R - O W N E R S

11

Ads are printed in the order in which they are received. The ILEC NEWS publication is published quarterly. Classified ads are published only in the ILEC News quarterly newslet-ter. Please mail or email your classified ads by the 20th of the month prior to the ILEC News publication. Ads are limited to 25 words or less. Please, no real estate, commercialbusiness or competing product ads. Iowa Lakes accepts no responsibility as to the accuracy or condition of the items listed below. In addition, Iowa Lakes does not warrant orexpress any opinion whatsoever as to the fitness or appropriate usefulness of any item as listed by owner. Email classified ads to maryd@ilec.coop or mail to 702 S. 1st St.,Estherville, IA 51334.

702 South 1st St.•Estherville,IA51334

QUIZ CORNER

1. What was the average construction cost to build each of the 5,000 KVA substations? ______________________________________________________________________________________

2. Compared to the coal plants built in the 1970s and 1980s, the new Walter Scott, Jr.Energy Center coal plant is the first plant in the U.S. to use advanced supercritical technology that will reduce carbon dioxide emissions by what percent? __________________

3. Out of the 34 electric cooperatives in Iowa, your Cooperative is ranked the ______________lowest for Total Controllable Expenses per Total KWhs Sold.

Name ________________________________________________________________________________

Account Number______________________________________________________________________

Iowa Lakes will continue to draw fourlucky members each quarter who willreceive $25 credits towards their electricbills. This quarters $25 winners were:Ronald Behrens, PalmerPaul Barrett, PocahontasPaul Stumpf, FondaDawn & Daniel Decker, Armstrong

Please continue to send in your completed QuizCorner forms by the 15th of the month prior to thenext quarterly publication.

! OFFICE HOURS:8 a.m. to 5 p.m. (Mon- Fri)Contact Iowa Lakes 24hours/day, 7 days/weekwith the following toll-freenumbers:

Customer Service:(800) 225-4532 (24 hr.)(Primary and Emergency)

Internet Services: Sales (800) 225-4532Tech Support:(888) 326-5196

Customer and SatelliteServices Fax: (712) 362-2819

Call Before You DigIowa One-Call (800) 292-8989

Visit Us Online: www.ilec.coop

E-Mail: ilec@ilec.coop

Newsletter Editor: Tresa Hussong

As of August 1, 2007 Iowa Lakesnow offers energy efficient cashrebates on air conditioners based onthe unit's energy efficiency ratings.

WINDOW A/C (Energy Star) . . .$50/unit

*Seasonal Energy Efficiency Ratio (SEER) rates the efficiency of an air conditioner. The higher the SEER rating of a unit, themore energy efficient it operates.

Energy Efficient Cash RebatesCENTRAL A/C• 14 Seer* (min.) . .$200/unit• 15 Seer. . . . . . . . .$300/unit• 16+Seer . . . . . . . .$400/unit

inside

The ILEC NEWSis a quarterly publication forILEC member-owners. Look tohere for Cooperative news andevents, industry updates, help-ful hints and special features.

Our MissionIowa Lakes Electric Cooperativeis dedicated to leadership,growth and environmentalresponsibility by providing reliable, competitively-pricedenergy while offering valuable services to benefit ourmembers, our customers andthe communities we serve.

Summer 2009Iowa Lakes Electric CooperativeILEC NEWS

President/CEO Comments . . . . . . . . . .2Affordable and Reliable Electricity

Climate Change Legislation . . . . . . . .3

Salute to Our Team . . . . . . . . . . . . . . . .4

New Emmetsburg Service Center . . .4

2009 Annual Meeting Recap . . . . . . .5

AERO Race Wheels Featured on TV . .6

Replica of the U.S.S. Monitor . . . . . . .6

Local Contractors Recognized . . . . . .7

2009 Scholarship Winners . . . . . . . . .7

It's Not Easy Being Green . . . . . . . . . .8

Notice of Energy Independence Act .8

McCormick Chosen for YouthLeadership Council . . . . . . . . . . . . . . . .9

CFL/Incandescent Bulb Comparison10

Federal Weatherization Program . .11

ILEC Honored with Impact Award . .12

Cooperative Closes $43 Million forWind Project . . . . . . . . . . . . . . . . . . . .12

Spotlight on Excellence Award . . . .13

Add Energy Efficiency & Save . . . . . .14

Buy, Sell, Swap Ads . . . . . . . . . . . . . .15

continued on page 3

WIND PROJECT: MISSION ACCOMPLISHEDC O O P E R A T I V E U P D A T E

Cooperative’s two wind farmsare located in areas with excel-lent wind resources, theSuperior site, with its slightlyhigher elevation, is expected togenerate, on average, slightlymore kilowatt-hours of windenergy per year.

How Wind Turbine ProducesElectricityAs the wind blows and

pushes against the turbine’sblades, it causes them to spin.The turbine blades are connect-ed to a shaft and when theblades spin, the shaft turns. Theshaft is connected to a generatorthat makes electricity. Inside thegenerator, there are coils of cop-

per wire that are attached to theturbine shaft. As the shaft spins,the magnets and their magneticfields, induce electrons in thecopper wire, producing electric-ity. The electricity producedtravels through a cable down theturbine tower, through a trans-former and into a distributionline that feeds directly into theexisting substations that servesthe ethanol plants. The Cooperative’s wind tur-

bines will generate electricity inwind speeds between 6 to 56mph. At wind speeds between20 and 22 mph, the turbine shaftrunning through the generatoris turning at the optimal rateand a majority of its energy isbeing converted into electricity.

Your Cooperative’s two windfarms, which began generatingrenewable energy in March 2009, arehome to a groundbreaking applica-tion in the renewable energy field. Itis the first-in-the-nation wind ener-gy project of its kind designed togenerate renewable energy to serveanother renewable energy source.The two wind farm sites are strategi-cally located near two existingethanol plants that Iowa LakesElectric Cooperative currentlyserves. One site is located northwestof Superior Ethanol, LLC nearSuperior, Iowa, and the other site issouth of Global Ethanol near Lakota,Iowa.Your Cooperative is pleased to

report that even though the twowind farms have only been operat-ing a few months, both wind farmsare generating at or above what thedetailed wind studies projected eachsite would generate on a month-by-month basis. From an equipment standpoint,

the two wind farms are identical.Each wind farm consists of seven,1.5-megawatt GE turbines each witha capacity of 10.5 megawatts. TheSuperior location is generatingapproximately the same amount ofenergy that the ethanol plant will useduring the year, about 37 millionkilowatt-hours. The Lakota site iscurrently generating slightly lessthan the Superior wind farm. Thedifference is due to a change ofapproximately 200 feet in groundelevation between the two windfarms. As a rule, wind speed increas-es with height. While both of your

Illustration © Midwest Windpower.

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 2

Iidentified that President Obama’s proposed capand trade (tax) legislation could penalize andtax a family of four with an additional $45,000

in energy taxes over the next 10 years.As a benchmark, a cooperative farm/residential

account using 1,725 kilowatt-hours (kWhs) permonth emits 1.73 tons of carbon dioxide from itselectricity usage.Over the next decade electric cooperatives

must build 21,000 megawatts of new generatingcapacity to meet the growing demand for electrici-ty just to keep the lights on!According to the U.S. Energy Information

Administration, the nation’s electricity consump-tion is growing annually at a rate of 1.07 percent.What this means is that by the year 2030 electrici-ty demand will have increased by 26 percent!If electric consumers don’t become seriously

engaged with their federal and state legislators, theprice for your electricity will become much more

expensive than expected and everyone, includingthe nation’s economy will suffer financially.In Iowa alone, approximately 75 percent of

Iowa’s electricity is generated by coal. On the Eastand West coasts, approximately 25 percent of theirelectricity is generated by coal. Therefore, who doyou think is going to be more heavily penalized if acarbon tax is implemented by the ObamaAdministration and passed by the democraticallycontrolled Senate and House of Representatives?Iowa’s electric consumers could find themselves

in a critical situation where electricity may not bereliable and the price paid for each kWh willbecome so expensive that a family’s budget for thelow to middle income citizens of Iowa will have thehardest time paying their electric bill.Help us to help you, by going online to

www.ourenergy.coop to help get your federal legis-lators onboard with a better energy future for all.

Governor Chet Culver recently signed two billsdesigned to expand Iowa's wind energy industry.One bill sets aside $1 million in tax credits for windenergy companies that engage in research anddevelopment. The other bill, that benefits IowaLakes Electric Cooperative’s member-owners,allows your Cooperative to qualify for the windenergy production tax credit for wind energy gen-erated.This legislation starts to level the playing field

and allows wind projects similar to yourCooperatives to be able to utilize renewable energytax credits of 1 cent per kilowatt-hour. Iowa Lakes Electric Cooperatives’ $43+ million

cooperative-based wind project is in two locations.Seven of the 14, 1.5-megawatt wind turbines arelocated near Superior, Iowa, and the other seventurbines are located near Lakota, Iowa. The electri-cal output of the wind turbines is used by ethanolproduction plants. Annually, the 14 wind turbines are expected to

generate electricity that is equivalent to the amountof electricity needed to power approximately 4,000of Iowa Lakes Electric Cooperatives’ member-owners homes or farms.

“Wind energy, along with biofuels, has helpedtransform our state into the nation’s leader inrenewable energy,” Gov. Culver said. “With thislegislation, we will go even further, encouragingnew wind energy development in communitieslarge and small while creating good-paying green-collar jobs for Iowans.”Iowa is No. 2 in the nation in the generation of

electricity from wind turbines, behind Texas,recently leapfrogging California, which had beenNo. 2 in the country for several years.

Terry L. BrunsPresident/CEOIowa Lakes

Electric Cooperative

affordable and reliable electricity?My speech at this year’s 2009 annual meeting focused on affordable and reliableelectricity for all Iowans. Thanks to the 223 member-owners who attended.

New Iowa wind energy law benefits Iowa Lakes ElectricCooperative’s member-owners

2

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 3

That was one of several findings accordingto a national poll commissioned by theArlington, Virg.-based National Rural

Electric Cooperative Association. The findings,released in May are particularly important at thistime because Congress is considering climate leg-islation that could result in the average Americanfamily’s household electric bill increasingbetween $50 and $100 every month, according tothe National Rural Electric CooperativeAssociation and the Tax Foundation, respectively.“According to the study, 78 percent of

Americans expect that their elected representa-tives will know – and will tell them – how muchtheir electric bills will increase in addressing con-cerns about climate change,” said Terry L. Bruns,president/CEO. “Family budgets are alreadystrained by rising energy costs, and climatechange legislation that does not take consumercosts into account will place significant burdenson Iowa households.”The National Rural Electric Cooperative

Association estimates that legislation being con-sidered right now, The American Clean Energyand Security Act of 2009 (HR 2454), could lead tothe average Iowa household’s electric bill increas-ing 37 percent, which means Iowans paying $100a month for electricity would end up paying $137a month or nearly $450 more a year for their elec-tricity. The increased cost would be the result of the

federal government imposing carbon costs ontoconsumers to encourage reduced electricityusage. The study, conducted by Washington,

D.C.-based Lauer Johnson Research,

found that 68 percent of respondents disagreedwith Congress taking that approach.

Glenn English, CEO, National Rural ElectricCooperative Association, said U.S. energy policywill definitely change to achieve reductions in theemission of carbon dioxide. “The question isn’t ifthey will happen, but how,” English said. Last month, the U.S. Environmental

Protection Agency announced it was ready to usethe federal Clean Air Act to limit emissions ofcarbon dioxide, along with five other greenhousegases blamed for contributing to global warming.However, the agency said it hoped Congresswould adopt a legislative solution instead.Recently, 27 Iowa electric cooperative repre-

sentatives spent three days in Washington, D.C.,meeting with Iowa’s congressional delegation toensure Iowans’ elected representatives under-stand their constituents’ perspective on this issue. “As champions for our member-owners’ best

interests, electric cooperatives are dedicated togetting the message through to Congress: anyregulations on carbon dioxide emissions mustcome through simple, affordable and flexible leg-islation that can be sustained over the decadesneeded to make a difference,” Bruns said. Your Cooperative encourages you to express

your concerns to Iowa’s congressional delegationabout keeping electric bills affordable atwww.findabalancedsolution.com More than300,000 American consumers, including approx-imately 9,000 Iowans, have contacted members ofCongress about keeping electric bills affordable.Help us to help you. It’s the power of many work-ing as one!

Climate Change Legislation

STUDY: More than Half of Americans – 58 percent – Unwilling to Pay 1 Cent More on Climate ChangeMore than three-fourths of Americans agree that Congress should know how much climate legislation is going to cost consumers before they approve new energy policy.

continued from page 1

The generator's efficiencydrops when the wind speeds areabove or below this optimalrange. This is the differencebetween wind energy and con-ventional power plants, like coalplants, those turbines turn at asteady rate, fed by a constantsupply of energy from burningcoal. To help mitigate the vary-ing wind speeds and achievemaximum efficiency, the tur-bine blades automaticallychange pitch to catch more orless wind. At very high wind speeds,

above 55 mph, the wind tur-bines cease power generationand shut down. This is a safetyfeature that protects the windturbine from damage. Oncethe wind speed drops back to asafe level, the wind turbine willbegin power generation again.

Many local, state and federal legislatorsand officials, environmental advocates

and energy industry representatives will jointhe Iowa Lakes Electric Cooperative representativeson Thursday, August 20 at 10 a.m. for a public ded-ication of the Cooperative’s two new renewableenergy wind farms.

The dedication event is open to the public andwill be held at Superior 71 Drive-In movie theatre,located approximately two miles west of Superior,Iowa, at the junction of Hwy 9 and Hwy 71. Theevent will offer guided bus tours of the Superiorwind farm site between 8 – 10 a.m. prior to the com-mencement of the dedication ceremony.

JOIN USAUG. 20

WIND FARM DEDICATION CEREMONY

3

WIND PROJECT:MISSION ACCOMPLISHED

C O O P E R A T I V E U P D A T E

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 6

Employee safety and training are fundamen-tal cooperative values for Iowa Lakes ElectricCooperative and Chris Hoffman of Estherville,Iowa has successfully completed the highestlevel of training an electric lineman can achieve.Over the last four years, Hoffman has complet-ed the Merchant Job Training & Safety Program(MJTS) which included 576 hours of academictraining for an apprentice lineman to advance tojourneyman lineman status. The MJTS Program is administered to utili-

ty line personnel throughout the world and is

comprised of 17 key competency topicsrequired for utility journeyman lineman per-sonnel. In order to complete the program,Hoffman needed to complete each instructionaltopic, pass each section test and take a compre-hensive examination that tests knowledge overall four years. Successful completion of theMJTS Program, concurrent with a structuredon-the-job training program, demonstrates thatHoffman has the knowledge and experiencenecessary to become a journeyman lineman.Congratulations Chris!

Hoffman Earns Journeyman Lineman Status

Journey lineman Chris Hoffman (left) ispresented his journeyman lineman certificate from Rick Olesen, vice presi-dent of operations and engineering.

C O O P E R A T I V E N E W S

� R I B B O N - C U T T I N G C E R E M O N Y

New Emmetsburg Service Center Less than a year after ground was

broken, the Emmetsburg line crewhave moved just a few blocks east andare now working out of theCooperative’s new service centerlocated on the southeastern side ofEmmetsburg in the southwest cornerof the new industrial park. An open house for the new 11,500

square foot facility was held onTuesday, June 23, 2009, and consistedof a ribbon cutting and dedicationceremony and tours of the servicecenter. The Cooperative offered com-plementary cookies, refreshments andappreciation gifts to those in atten-dance. On time and on budget, the final

construction items were finished upthis spring and the line crew movedinto the new $2 million facility in

May. Planning for the new servicecenter began in the summer of 2006and construction of the building wasstarted in August 2008. HenningsenConstruction of Spencer was the gen-eral contractor for the project. The Emmetsburg service center

needed to be replaced because theCooperative had outgrown the previ-ous 4,500 square foot building. Theoriginal Emmetsburg service centerhad been in use since 1951, and eventhough this facility had been remod-eled and expanded to accommodatethe growing needs of the Cooperative,it no longer provided adequate spaceto accommodate the larger hydraulicutility trucks, material and equipmentstorage. The Emmetsburg service center

is one of Iowa Lakes Electric’s six

maintains local service centers in Estherville,Emmetsburg, Swea City, Pocahontas, Spencer, StormLake, and Cherokee. Because of the board of directors’commitment to operate and maintain a local presencein these communities, the average time it takes torespond and restore electricity during a power outageis drastically reduced.The new service center includes offices for the line

crew, foreman and energy advisor along with an upperlevel conference room, a warehouse and a storage mez-zanine. The large bays will accommodate all of the

Cooperative’s vehicles assigned to the Emmetsburg serv-ice center. The original 50-year-old Emmetsburg servicecenter facility had been become inadequate to houselarger, more sophisticated utility trucks and equipment.The new 175,000 square foot fenced storage yard, locat-ed on the north side of the building will allow the servicecenter to conveniently store materials and utility poles. Energy efficiency was also a major concern when

planning the building. An efficient geothermal heatpump heats and cools the office portion and conferenceroom of the service center. The shop area has in floorheat supplied by an electric boiler.

local service centers, inaddition to the service cen-ter facility at the headquar-ters in Estherville. IowaLakes Electric Cooperative

4

Left photo: State Senator John P. "Jack" Kibbieand wife, Kay, attended the event.

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 7

iowa lakes electric cooperative

2008 Annual Report

“The pessimist complains about t

he wind;

the optimist expects it to chan

ge;

the realist adjusts the sails.”

- William Arthur Ward

2 0 0 9 A N N UA L M E E T I N G R E C A P

5

0

100

200

300

400

500

600Kilowatt-Hour Sales Growth (in millions)

ʻ05 ʼ06 ʻ07 ʼ08

From top left, clockwise: Jerry Beck, JamesHultgren, Gary Rouse and Alan Madden.

District IJerry Beck of Spencer

District IIJames Hultgren of Alta

District IIIGary Rouse of Ayrshire

District IVAlan Madden of Ringsted

INCUMBENT DIRECTORS RE-ELECTED

More than 340 member-owners and guestsattended Iowa Lakes Electric Cooperative’sAnnual Meeting held on Saturday, April 18, 2009,at the Clay County Regional Events Center inSpencer, Iowa. Thank you to all member-owners who active-

ly participated in the democratic process of elect-ing your board of directors who are accountableto the membership. Treasurer Jim Hultgren reviewed with the

audience the Cooperative’s complete set of finan-cial statements contained in the 2008 AnnualReport, based on review by independent auditors.Hultgren highlighted the Cooperative’s solidfinancial position, along with some significanttransactions that took place throughout 2008.Hultgren explained the increased investment inthe Cooperative’s electric utility plant of over $129million on December 31, 2008, compared to $84million as of December 31, 2007. Hultgrenexplained that the majority of the growth in utili-ty plant was related to the Cooperative’s two windprojects. Hultgren reviewed the financing of theCooperative’s two wind farms and was pleased toinform the audience that the Cooperative wasrecently issued $43 million in Clean RenewableEnergy Bonds (CREBs) with a zero percent inter-est rate as permanent financing for the project. In 2008, Iowa Lakes experienced a 9 percent

growth in kilowatt-hour sales bringing the totaloperating revenues recorded for the year tonearly $43 million. Hultgren reported that IowaLakes’ purchase power expense continues toincrease each year. In 2008, purchase powerexpense grew from 69.99 cents of each dollarcollected from energy sales in 2007 to 71.11cents of the dollar in 2008. In his financial address, Hultgren also

reviewed the Cooperative’s margins for the yearand drew attention to the $2 million in deferredrevenue that was approved by your board ofdirectors to help stabilize future electric rates.The Cooperative plans to recognize thesedeferred revenues beginning 2010-2012 or laterdepending upon the forecasted increases of

wholesale power costs. Looking forward, President/ CEO Terry L.

Bruns spoke in-depth on the proposed climatechange legislation and the potential impacts thisnew policy could have on the affordability offuture electricity. Bruns stressed that the proposedcarbon tax legislation would increase electric billshundreds of dollars a year because electric utilitieswould be required to pay the federal governmentfor carbon dioxide emissions that their electricitygeneration creates. Bruns also explained how yourCooperative, along with hundreds of electriccooperatives across the nation, have established anetwork of grassroots advocates that support rea-sonable solutions for an economy wide, balancedenergy solution to address climate change. Bruns also announced that the Cooperative

will implement a wholesale power cost adjust-ment to take effect on June 1, 2009, and to bebilled beginning on July 1, 2009. Bruns concludedhis report by urging the audience to let their voic-es be heard by contacting their U.S. senators andcongressional representatives and let them knowthat you are concerned about the current climatechange legislation. The final speaker of the morning was Kirby

Berhow, manager of renewable fuels, who sharedwith the audience a very interesting presentationthat highlighted the construction of theCooperative’s two wind projects. A board meeting was held following the annu-

al meeting. L. Kirby Range was re-elected to serveas chairman. Alan Madden was re-elected to serveas vice chairman, Steve Williams was re-elected toserve as secretary and James Hultgren was re-elected to serve as treasurer. Additional highlights of the morning included

a free continental breakfast prior to the start of thebusiness meeting. At the conclusion of the annualmeeting, 10 lucky member-owners won doorprizes. In addition, each member-owner in atten-dance received a free, green recyclable grocerybag along with an energy efficient LED holidaylight set.

“May the Winds Be Favorable”

ANNUAL MEETING

‘09

Your Cooperative's 2008 Annual Report contains acomplete set of financial statements and the Notesto the Financial Statements. A copy of the reportcan be found online at www.ilec.coop.

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 10

I N T H E S P O T L I G H T

Tweezers and Super Glue are impor-tant tools to Larry Bowers, whoused them to construct a 1/48th

scale copy of the Civil War ironclad, theU.S.S. Monitor.Fascinated with model building since

boyhood, Bowers, who is vice president ofinformation systems for Northwest IowaPower Cooperative (NIPCO) in Le Mars— one of your Cooperative's wholesalepower suppliers — builds boats and shipsfrom scratch, buying the plans and thencreating scale models from raw materials.He began his basswood version of the

Civil War boat in the late 1990s and com-pleted it this spring. Bowers estimates con-servatively that over the 10-year period heput 1,200 hours into the project, but alsowith long periods when he ignored themodel.He bought the wood for the Monitor

locally, he said, but had to order someparts and scrounge other supplies to com-plete the project. For instance, he orderedthe Monitor’s 12,000 rivets from a compa-ny that manufactures products for hobby-ists. The rivets are so tiny that they are halfthe diameter of a common straight pin.Bowers said he Super Glued each of the12,000 tiny rivets into a tiny hole he drilledwith a tiny drill bit.Adding the required gears to the

Monitor was a head-scratcher. “I struggledfor months on how to make them,” Bowerssaid. “I was going to make them out ofwood, but then someone told me copymachines have a lot of gears.” So he paid avisit to an office machine supply businesswhere they let him harvest a boatload of

tiny gears from a junked copy machine.The Monitor’s canvas awning original-

ly was a linen drafting sheet from NIPCO’sengineering department, where at onetime construction plans were drawn onwax-coated fabric sheets. Bowers said heboiled the old drawing, which removedboth the inked lines and the wax, leaving aclean piece of high-quality linen.The model is more than just the shell

of the boat. Parts of the Monitor are cutaway to show the detailed interiors, whichfeature the crew’s living quarters, enginesand gauges, louvered doors, ladders andeven cannon balls. About 50 light-emit-ting diodes illuminate the interior. Bowers earned a first place “gold” rib-

bon in his model’s category at the 33rdannual Midwestern Model Ships & BoatsContest and Display held in May at theWisconsin Maritime Museum atManitowoc, Wis. He is looking for a per-manent home for the model in a museumor a Civil-War oriented institution.The ironclad Monitor was a Union

ship, unique because of its revolving tur-ret. She is famous for her participation inthe first-ever naval battle between twoironclad warships, the Battle of HamptonRoads off Virginia on March 8 and 9,1862. The boat was suited for river battles,but not for the open seas. She was lost onDec. 31, 1862 off the North CarolinaOuter Banks when heavy seas swampedher while under tow. The wreckage waslocated in 1973 and has been designated aNational Historic Landmark. Salvagedparts of the vessel are on display at theMariner’s Museum at Newport News, Va.

Featured onTelevisionAt Iowa Lakes Electric Cooperative we

have many successful commercial andindustrial accounts. One of those commer-cial and industrial accounts, AERO RaceWheels, Inc., was recently featured on thepopular television show “How It’s Made” onthe Science Channel. The four-minute seg-ment premiered on May 8, 2009, that alsofeatured Swiss Army Knives, player pianorolls, and oil tankers. The episode which willappear in the future as reruns on both theScience Channel and eventually theDiscovery Channel; is entitled the thirdepisode of the sixth season of “How It’sMade.” In June of 2008, AERO invited a produc-

tion crew into its plant to film footage. Thefilming took two days and concentrated onthe production of its 59 Series NASCARapproved wheel. “As a company, we are veryhonored and excited that “How It’s Made”selected AERO Race Wheels to be part oftheir program,” AERO Vice President JoeMiller said.AERO Race Wheels, Inc. is a manufac-

turer of steel racing wheels and accessories.Established by “Skip” Miller in 1995, AERORace Wheels has created a great product thathas grown in popularity to become thelargest premier steel racing wheel supplier.AERO’s superior products have allowedthem to establish several contingency part-nerships with various racing associations likethe IMCA, CRA, USCS, TriState ModifiedSeries, and it is the official wheel of theAMRA. With AERO’s popularity and suc-cess we at Iowa Lakes Electric Cooperativeare proud to call them one of our keyaccounts. Congratulations!

Replica of the U.S.S.Monitor Becomes aDecade-Long Hobby

6

Bower's model is on display in the lobby at your Cooperative's headquarters facility inEstherville. Come see the unique display and outstanding craftmanship!

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 11

2009 SCHOLARSHIPWINNERS ANNOUNCED

Two exceptional students were awarded a$1,000 college scholarship provided by yourCooperative and Basin Electric PowerCooperative located in Bismarck N.D. Christopher Sievers, a 2009 graduate of

Sioux Central Community School, was chosenfrom 26 outstanding applications receivedfrom member-owner dependents for the 2009– 2010 school year. Christopher plans to attendthe Iowa State University this fall majoring inanimal science. Christopher is the son of Toddand Laura Sievers, Albert City. Olivia Skogerboe, a 2009 graduate of Spirit

Lake High School, was selected from the mem-ber-cooperative employee dependent applica-tions. Olivia plans to attend the University ofIowa to study social sciences. Olivia is thedaughter of Jed and Eileen Skogerboe, SpiritLake.Iowa Lakes is proud to show our support of

the outstanding academic, extra-curricular andleadership achievements of our area youththrough the Cooperative’s college scholarshipprogram. Congratulations to Christopher andOlivia!

I L EC NEWS

On March 24, 2009, Iowa Lakes Electric Cooperative hosted our annual DealerAppreciation Dinner to honor our independent, local heating and cooling contractorsfrom throughout our electric service territory. At the annual event, Iowa Lakes thanked thecontractors for their commitment to installing energy efficient equipment, such as electricwater heaters and electric heating and cooling equipment, for our member-owners.

“Buying a new, energy efficient electric heating or cooling system can be one of thelargest investments a homeowner can make in their home, but one that could actually payfor itself over a period of several years with the right equipment,” said Larry Walthart, IowaLakes’ Energy Advisor. Both Iowa Lakes’ energy advisors and our local heating and cool-ing contractors are well qualified to provide current information and advice you need tomake the right decision. “We view our local heating and cooling contractors as an exten-sion of our sales staff,” Walthart says.The Dealer Appreciation Dinner was held at the King’s Pointe in Storm Lake, Iowa.

Following the dinner, a short presentation was given on Iowa Lakes’ energy efficiencyrebates. Four local dealers were recognized and honored during the evening for top salesin energy efficient equipment.

Local Heating & Cooling Contractors Recognized

USDA Rural Development has guaranteed loan and grant financing available forrural Iowans to help them reduce their energy costs and save money. Funds are available through the Rural Energy for America Program, also known as

Section 9007, in the 2008 Farm Bill. Last year a record 167 rural businesses and produc-ers in Iowa received nearly $14.3 million through this program.Renewable energy systems include wind, solar, biomass, bio-energy, biogas (anaerobic

digestion), geothermal, or hydroelectric, ocean, renewable biomass or hydrogen.Energy-efficiency improvements to a facility, building or process that reduces energy

consumption such as retrofitting, lighting or insulation may also be eligible. Examplesinclude improvements to increase R-value of side-walls or ceilings, environmental com-puter controllers, more efficient heating systems, windows, doors, lighting, ventilationsystems, cooling system equipment, pumping systems, commodity handling systems,drying systems, etc. Grants can be for up to 25 percent of total eligible costs. A guaranteed loan only or a

combination guaranteed loan and grant cannot exceed 75 percent of total eligible costs. Agricultural tillage equipment, used equipment and vehicles are not eligible. Funds

are not available for residential use. Costs incurred before submitting an application arenot eligible. Projects must be located in rural areas or communities of less than 50,000 res-idents. Information is available at www.rurdev.usda.gov/ia or by calling 515 284-4663.

Rural Development’s Energy Program Can Help

REDUCE ENERGY COSTS

Top left photo: 1st place top dealer, Dave and Dan Lucasand ILEC's Mark Courtright. Top right: ILEC's LarryWalthart, Marty Currans (3rd place top dealer, CurransPlumbing and Heating) and ILEC's Doug Vlasman. Insetphoto: Mark Courtright presents Van Conover with thedoor prize of a one night stay at King's Pointe.

D

OOR P R IZ E WIN

NE

R

7

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 14

Electricity has been generated byhydro, wind, biomass, and other renew-able resources in the United States formore than a century. Today, 11 percent ofthe power electric cooperatives providecomes from renewables, compared to 9percent for other types of utilities. And this total will only continue to

grow if Congress, as expected, follows thelead of 28 states and the District ofColumbia and sets renewable portfoliostandards (RPS) for electric utilities. Theselaws require investor-owned utilities,competitive electric generation suppliers,as well as some municipal electric systemsand electric cooperatives to add increasingamounts of “clean and green” electricity totheir retail power supply mix (rangingfrom 10 percent to 30 percent) by a certaindate (mostly between 2018 and 2025).No two state-based RPS laws are the

same, mainly because access to renewableresources differs by region. Hawaii,Nevada, and North Carolina allow energy

efficiency to count toward half of theirRPS. Ten states including Texas, Nevada,and Illinois, include solar water heating.Others specify certain percentages for aspecific type of generation. One proposal being considered by

Congress would create a renewable elec-tricity standard (RES), requiring all elec-tric utilities to obtain 25 percent of theirretail power supply from renewablesources by 2025. A national RES wouldlikely augment, rather than pre-empt,existing state RPS laws. Since renewable energy technology

generally produces power for a muchhigher cost per kilowatt-hour than con-ventional fuels, such as coal, natural gas, ornuclear, RPS and RES mandates directlyincrease the price of electricity. Electriccooperatives are working closely withCongress and other groups in an effort tokeep electric bills as affordable as possible.

Iowa Lakes Electric Cooperativehereby gives public noticeregarding the process it will followin implementing the provisions ofthe Energy Independence andSecurity Act of 2007 (EISA ’07),which amended the Public UtilityRegulatory Policies Act of 1978(PURPA). EISA ’07 established fournew Federal standards underSection 111(d) of PURPA thatrequires certain utilities, includingIowa Lakes Electric Cooperative, toconsider the following new PURPAstandards:

1. Integrated Resource PlanningEach electric utility shall integrateenergy efficiency resources into itsplans, and adopt policiesestablishing cost-effective efficiencyas a priority resource. Energyefficiency resources are obtainedby providing incentives to retailconsumers for the installation ofenergy efficient equipment.

2. Rate Design Modifications toPromote Energy EfficiencyInvestmentsEach electric utility shall “alignutility incentives with the delivery ofcost-effective energy efficiency; andpromote energy efficiencyinvestments.”

3. Consideration of Smart GridInvestmentsEach electric utility shall considersmart grid investments beforepermitting investments in non-advanced grid technologies. SmartGrid is the use of communicationand modern computing to operatethe electric power grid.

4. Smart Grid InformationAll electric customers should begiven direct access to informationconcerning time-based electricityprices in the wholesale marketalong with available retai l rates. Allcustomers should also have access

to the data concerning the sourcesof power provided by the utilityincluding greenhouse gasemissions associated with eachtype of generation.

Please note that Iowa Lakes ElectricCooperative is required to“consider” adopting thesestandards. There is no requirementto adopt the standards. However,the consideration and decisionmust be based on the evidence inthe record developed for thisconsideration; and the rationale forthe decision on each standard mustbe documented in writing.

Written Comments. Interestedpersons may submit writtencomments on the potentialimplementation of the abovereferenced standards on or beforeAug. 3, 2009, and such writtencomments will be available to anyinterested party requesting a copyon or before Aug. 10, 2009.

Comments can be delivered inperson or by U.S. Postal Service tothe Iowa Lakes Electric Cooperativeoffice:Iowa Lakes Electric Cooperative702 South 1st StreetEstherville, IA 51334

Hearing. The hearing to considerany written comments submittedwill be held by the Iowa LakesElectric Cooperative on Aug. 27,2009, at 10:00 a.m. at theCooperative’s Esthervilleheadquarters.

Final Determination. Iowa LakesElectric Cooperative’s Board ofDirectors will make a finaldetermination on the standards onor before Dec. 17, 2009.

Questions or comments should bedirected to Bob Emgarten, SystemEngineer, 800-225-4532 orbobe@ilec.coop

I L EC NEWS

NOTICE OF ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

OFFICIAL NOTICE

It's Not Easy Being GreenCongress debates national renewable energy standard

Sources: Database of State Incentives for Renewables & Efficiency, NRECA

What Can You Do?Electric cooperatives are asking elected offi-

cials to address climate change issues in anaffordable and environmentally responsiblefashion. We’re ready to provide insight into howvarious policy proposals like RPS and RES willimpact consumers, and we’ll urge lawmakers toreach the right answers.In unity with 42 million other electric co-op

consumers around the country, ask your U.S.representative and senators to work with elec-tric cooperatives to keep electric bills affordable.Get involved in this effort by participating in theOur Energy, Our Future™ grassroots campaignat www.ourenergy.coop. Help us to help you!

8

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 15

In January, Iowa LakesElectric Cooperative sent out twocompact fluorescent light (CFL)bulbs, one “soft white” color andone “daylight” color, to each of itsmember-owners as part of the“See the Light” campaign. The“See the Light” campaign pro-motes the energy efficiency ofCFL bulbs, as well as educatespeople on the various types ofCFL bulbs available. Includedwith the energy-efficient lightbulbs was a survey comparingthe two types of bulbs. Member-owners had the

opportunity to fill out the surveyand send it back by April 30,2009, to enter themselves into agrand prize drawing for a newENERGY STAR® front-loadmatching washer and dryer.There were also drawings forenergy bill credits of $100, $50,and $25. From the many returned sur-

veys, Rick and Jolene Hotovec ofStorm Lake, Iowa, won the grandprize washer and dryer. Winnersof the energy bill credits wereScott Frye of Laurens, PearlMoser of Cylinder and BruceNieland of Newell, Iowa.

Rick and Jolene did not justreturn the survey, but they haveinstalled both CFL bulbs in theirhome. Jolene explained how the“soft white” CFL was hard to getused to initially, but is now morethan happy with the bulb. TheHotovec’s prefer the “daylight”CFL, which they have put in theirliving room. Along with the twofree CFL bulbs the Hotovecs haveinstalled, they have taken othersteps to improve the efficiency oftheir home by installing all newwindows and adding additionalinsulation. Jolene and Rick also hang

their clothes out on a line in thesummer to cut back on energyuse. Jolene plans to continuehanging her clothes outsidedespite their new ENERGYSTAR dryer.

Melander’s TV & ApplianceCenter of Storm Lake deliveredthe washer and dryer to Rick andJolene’s farm outside of StormLake where they have lived forthe past 15 years. Rick and Jolenewere happy to see their old dryergo, which they have had for 30years. Rick and Jolene have a his-tory and understanding of the

importance of energy efficiency.Jolene’s father, John Marron,worked for the formerPocahontas REC for 30 years andthey appreciate the service elec-tric cooperatives provide to their

local communities. Jolene andRick look back fondly upon theformer Pocahontas REC as is evi-dent by the old REC memorabil-ia displayed in their china cabi-net. Congratulations to all ourlucky winners!

I l luminate your Knowledge aboutCompact Fluorescent Lamps

SEETHE

MEMBER-OWNERS WIN GRAND PRIZEB Y C O L I N B R O W N

Justin McCormick, of Spencer, Iowa,recently returned from the 2009 RuralElectric Youth Tour, where he was chosen torepresent Iowa on the Youth LeadershipCouncil of the National Rural ElectricCooperative Association (NRECA).Representing Iowa and sponsored by

Iowa Lakes Electric Cooperative and theIowa Association of Electric Cooperatives,McCormick will join young people from 46other states in assisting the national tradeassociation conduct its upcoming annualmeeting in 2010. In addition to performingspecific jobs at the big event, the YouthLeadership Council members will have theopportunity to increase their knowledgeabout national energy issues affecting elec-

tric cooperatives and the consumers theyserve. Typical duties include providing assis-tance to NRECA staff, participating in edu-cational forums and staffing an informationbooth during the annual meeting. The Youth Leadership Council will be a

central part of the opening general sessionceremony, which will showcase McCormickcarrying the Iowa flag to the stage during theParade of Flags opening ceremony.The Youth Leadership Council is an

extension of the Rural Electric Youth Tour, agroup of more than 1,400 high school stu-dents who are sponsored jointly by NRECA,local electric cooperatives and theirstatewide associations in 46 states. The YouthTour meets in Washington, D.C., in June of

each year where theyvisit with their statedelegations in boththe U.S. House andSenate, attend edu-cational seminarsand visit historicallandmarks. Eachstate attending theYouth Tour selectsa representative for the YouthLeadership Council. The Youth LeadershipCouncil then attends a week-long summerLeadership Conference back in Washington,D.C., where they take courses on leadershipand how to write and deliver speeches.Congratulations, Justin!

MCCORMICK CHOSEN FOR YOUTH LEADERSHIP COUNCIL

I L EC NEWS

9

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 16

Mr. Tight-Watt's Co-op EnergyCast WinnerMember-owner Dave Lind from Spirit Lake, Iowa attended our Co-op EnergyCast in May and hisname was drawn as winner of a $50 Menard’s gift card. Congratulations, Dave! Our Co-opEnergyCast is a live, on-line energy efficient seminar where member-owners can get tips from anenergy expert.Thanks to all member-owners who participated in our Co-op EnergyCasts. Ournext Co-op EnergyCast will be held this fall in October. More details will follow in coming ILECNews.

Have you resisted buying those funny look-ing, curlicue light bulbs because they’re tooexpensive? Yes, compact fluorescent light (CFL) bulbs

cost more than incandescent bulbs. But you’llsave money in two ways: They use only a frac-tion of the electricity and you won’t have to buyreplacement bulbs for some time.A recent western Iowa shopping trip found

60-watt equivalent CFL bulbs priced from $1.61to $5.22 each. Larger 100-watt equivalent bulbsranged from $1.86 to $6.99. By comparison, tra-ditional incandescent light bulbs – both 60- and100-watt varieties – ranged from 28 cents to 97cents each. The price check took place at threestores, including an Iowa-based farm store, aMidwestern home improvement chain and anational low-price retailer.

CFL bulbs save large amounts ofelectricity compared to traditionalbulbs. If your electric rate is 8 cents perkilowatt-hour, it would cost you $2 peryear to burn that 100-watt equivalentbulb three hours per day. By contrast, anincandescent 100-watt bulb would burn$9 worth of electricity. In other words,you’re paying 4.5 times more for elec-tricity to burn that incandescent bulb.You’ll also save with CFL bulbs

because they last much longer thanincandescent bulbs. CFL bulbs are ratedto last from 8,000 hours to 12,000 hours.By contrast, incandescent bulbs rangefrom 750 hours for the cheapest bulbs,to 1,500 and 2,000 hours for extended-life bulbs.

� Students from two local school districtswere given the chance to learn about electri-cal safety and energy efficiency. On May 15,2009, 90 first graders at Estherville’sDemoney Elementary School were given apresentation by employees of Iowa LakesElectric Cooperative. The same demonstra-tion was seen by the fourth graders in SpiritLake three days later. Iowa Lakes’ energy advisor Jack Schoon

presented a demonstration on electricalsafety to the students. “Lightning Liz” and“Neon Leon” were the stars of the realisticprogram demonstration that uses real elec-tricity to allow the children to witness howelectricity travels through conductors likemetal, human bodies, tree limbs and kites.These figures, two glass dolls fitted with fil-aments inside, lit up as Schoon demonstrat-ed each of them becoming victims of a vari-ety of electrical accidents. One of Iowa

Lakes’ linemen, Joel Quastad, showed thestudents the equipment and one of the dig-ger derrick trucks. He also demonstratedhow to build and reconnect electric powerlines. The Cooperative has recently expanded

the safe electricity demonstration to includeinformation about energy efficiency. TheCooperative’s energy advisor LarryWalthart and customer service representa-tive Bobbi Jo Ruschy had a presentation andgames for the kids that touched on sourcesof energy, what renewable energy is andhow to reduce usage. The students enjoyedthe demonstrations while learning along theway. Spirit Lake fourth grade teacher LindaJohnson reinforced this in a thank you letterto Iowa Lakes stating, “Our 4th gradersLOVED it! They all commented on NeonLeon and how much they learned aboutsafety.” Safety First, Always!

Area Students Learn Valuable Electrical Safety Lessons

CFL/Incandescent BulbPrice ComparisonSave $$ and Electricity With CFL Bulbs

�OPTIONS:You can buy CFL bulbs for many types oflight fixtures with options for cool or warmlight colors. Many of the CFL bulbs nowcome as incandescent bulb lookalikes, eliminating the spiral tube. Check theshelves at your local retailers to find thesevarieties of CFL bulbs: outdoor post lights,bug lights, mini spiral lights, reflector flood-lights, ceiling fan lights, decorative candelabra lights, vanity globes and more.

STUDENTSLEARN HOW

TO STAY SAFE!

10

Energy advisor Jack Schoon demonstrates electrical safety.

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 13

Looking for ways to save on energy costs? Find out where your energy dollars are being spent.Whether it's helping you with energy saving tips, planning for a new addition to your home ordeciding on a space or water heating system that will best suit your needs, your local energy advi-sors are ready with smart energy choices for you. Talk to the expert energy advisor in your localarea to find out which heating and cooling system would be right for you. To schedule your freeenergy audit, call Iowa Lakes at 800-225-4532.

I L EC NEWS

In the interest of public safety, the Iowa General Assemblyenacted legislation in 2007, establishing a program of electricianlicensing and inspection of electrical installations throughout thestate. The licensing program began in January 1, 2008, and theinspection program began on March 1, 2009.

Your Cooperative is expected to follow the new state licensingprogram that states, "No electrical installation subject to inspectionunder this chapter shall benewly connected or reconnected for useuntil the electrical inspector has filed with Iowa Lakes a certificatestating that the electrical inspector has approved such energization".

In accordance with the above paragraph, any service that hasbeen disconnected for 180 days or longer (whether on an idle serv-ice agreement or disconnected for non-payment) will not be ener-gized until the electrical inspector has filed with Iowa Lakes a cer-tificate stating that the electrical inspector has approved such ener-gization.

Please be aware extra time will need to be given so scheduling,inspections and releases may be dealt with in a timely manner.According to state licensing program, inspectors are allowed threebusiness days following the receipt of the inspection request to per-form inspection. This excludes weekends and holidays.

More information may be obtained at www.iowaelectrical.gov,or by calling the Chief Electrical Inspector at 866-923-1082 or bycalling the Electrical Inspector Supervisor in your area. TheElectrical Inspector Supervisor in northwest Iowa is DwightKramer and he can be reached at 515-290-0629. Safety First,Always!

I M P O R T A N T I N F O R M A T I O N :

STATE INSPECTIONS

11

WEATHERIZATION ASSISTANCE?

Do you qualify for federal

To apply for the weatherization program, contact:

Buena Vista County Outreach Center (712) 732-1757Clay County Outreach Center (712) 262-7409

Dickinson County Outreach Center (712) 336-1112Emmet County Outreach Center (712) 362-2391

Cherokee County Outreach Center (712) 225-3322Kossuth County Outreach Center (515) 295-2531

If so, you could receive $6,500 in energy-saving upgrades to your home!

ost people would like to save energy dollars by making their home more ef�cient, but

not everyone can afford improvements. For low-income members, there’s help. Households with incomes at or below 200 percent of the national poverty level are eligible for the federal Weatherization Assistance Program. The program spends an average of $6,500 on energy ef�ciency upgrades in each home. For details visit www.eere.energy.gov/weatherization.

MQualifying income levels

Family of One $21,660Family of Two $29,140Family of Three $36,620Family of Four $44,100Family of Five $51,580Family of Six $59,060

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9Buena Vista County Outreach Center 712-732-1757

Clay County Outreach Center 712-262-7409Dickinson County Outreach Center 712-336-1112

Emmet County Outreach Center 712-362-2391Cherokee County Outreach Center 712-225-3322Kossuth County Outreach Center 515-295-2531

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 9:59 AM Page 12

Iowa Lakes ElectricCooperative Honored withEconomic Development Impact Award

From left to right: Rand Fisher, Pres., Iowa AreaDevelopment Group, Terry L. Bruns, ILECPresident/CEO, Tresa Hussong, ILEC Vice Pres.,Customer and Corporate Relations, L. KirbyRange, ILEC Board President and Jim Vermeer,Corn Belt Power Cooperative's Vice President,Business Development.

The Iowa Area Development Grouprecently recognized your Cooperative for itseconomic development accomplishmentsand commitment to our local communities.The Iowa Area Development Group is themarketing and business development officefor Iowa’s electric cooperatives. Each year,they recognize an electric cooperative for itsoutstanding commitment, contribution, andparticipation in business development proj-ects and local community initiatives.

Your Cooperative received the ProjectDevelopment Impact Award for its leader-ship and innovation in building two windfarms that each serve an ethanol plant. Theunique wind farms are the first of its kind inthe nation and will offer cost savings to theCooperative by avoiding new transmissionlines and a substation to serve the projects. Your Cooperative has also stepped for-

ward to assist the growing wind turbineindustry in Iowa by providing assistance andsupport for the Iowa Lakes CommunityCollege’s new Sustainable Energy Center inEstherville. Your Cooperative secured a$300,000 USDA grant for the new facilitythat has already begun training workers fornew and emerging jobs in the wind industry.

YOUR COOPERATIVE RECEIVES $43 MILLIONFINANCING AT ZERO PERCENT INTEREST FORWIND PROJECT

WIND WIND ENERGY

CoBank, a leading national cooperative bank serving agribusinesses and rural utilitiesthroughout the United States, provided $43 million in permanent financing for Iowa LakesElectric Cooperative’s two wind energy projects.The bond issuance arranged by CoBank financed your Cooperative’s 14 new wind

turbines that, together, generate more than 71 million kilowatt-hours of renewable energyannually, enough electricity to power about 4,000 member-owner’s homes for one year. “CoBank is extremely pleased to serve as Iowa Lakes’ financial partner on this

important clean energy project,” said Mary McBride, CoBank executive vice president forthe Communications and Energy Banking Group. “Like rural electric cooperatives acrossthe country, Iowa Lakes is helping to lead the nation in the promotion of renewable energysources that benefit the environment and reduce overall dependence on fossil fuels.”In dollar terms, the Iowa Lakes transaction is one of the largest in the nation to utilize

Clean Renewable Energy Bonds (CREBs). Congress created the CREBs program in 2005as a vehicle to help power cooperatives and public power companies finance renewableenergy projects. CREBs offer qualifying power generation or distribution companies low-or no-interest loans to finance wind, biomass, solar, geothermal and other renewableenergy projects. The program was expanded further under the recently approved federaleconomic stimulus package.Participants must apply to the Internal Revenue Service (IRS) for a CREBs allocation,

and then issue the bonds within a specified time period. The purchaser of the bondsreceives a tax credit that accrues quarterly from the federal government in lieu of interestpayments. CREBs are different from traditional tax-exempt bonds because tax creditsissued through CREBs are treated as taxable income for the bondholder.With this transaction, the Cooperative tapped $43 million in financing from CoBank

with a zero percent interest rate. In some CREBs financings, the arranger sells the bondsto third-party investors. In this case, however, CoBank is the arranger and holder of thebonds. To date, CoBank has closed numerous CREBs financing projects.

CoBank is a $63 billion cooperative bank serving vitalindustries across rural America. CoBank is a member of the

Farm Credit System, a nationwide network of banks and retail lending associations charteredto support the borrowing needs of U.S. agriculture and the nation’s rural economy.Headquartered outside Denver, Colorado, CoBank serves customers from regional bankingcenters across the U.S. and also maintains an international representative office in Singapore.

Tresa Hussong (left), vice president ofcustomer and corporate relations, presentsNorm Johnson, CEO of Camp Foster YMCAa check for $4,000 in support of the 2009Camp Foster Pro-Am Golf Tournament.This contribution will allow Iowa LakesElectric Cooperative to select eight areayouth from throughout the Cooperative’seight county service territory to attend CampFoster summer camp, free of charge.

Camp Foster YMCA Receives $4,000 Donation

Cooperative Transaction with CoBank Ranks As One ofNation’s Largest Using Clean Renewable Energy Bonds

12

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 10:00 AM Page 9

Iowa Lakes Electric Cooperative recentlyreceived recognition in the 2009 “Spotlight onExcellence” national awards program, spon-sored by the Council of Rural ElectricCommunicators and the National RuralElectric Cooperative Association. YourCooperative received an Award of Excellence,equivalent to first place, in the Best ExternalNewsletter Category for the ILEC News quar-terly newsletter. “The judges’ descriptions of this year’s

entries ranged from extraordinary to impres-sive,” said Maggie Tilley, administrator ofSpotlight on Excellence. “The consistent com-ment was that consumers are being well-served by communications that seek to informand to add value for their cooperative mem-ber-owners.”A special luncheon honored the award

recipients during the Connect 2009Conference held in Las Vegas, Nev., May 12-15. Winning entries were displayed during theevent.

ILEC News is a full-color, multiple-pagenewsletter that is published on a quarterlybasis throughout the year and is mailed direct-

ly to Iowa Lakes’ more than 9,500 member-owners. This is the fourth consecutive yearIowa Lakes has won a Spotlight on Excellenceaward. In 2006, Iowa Lakes received an Award of

Merit, which is equivalent to second place, forBest Total Communication Program for theAutomated Meter Reading (AMR)Deployment Communications Campaign. In 2007, Iowa Lakes received an Award of

Merit in the Best Newsletter Category for theILEC News quarterly newsletter. In 2008, Iowa Lakes received an Award of

Excellence, equivalent to first place, in the BestExternal Newsletter Category for the ILECNews quarterly newsletter.

“These award-winning pieces demonstrateyour Cooperative’s commitment to communi-cating quality content to you, our member-owners,” said Terry L. Bruns, President/CEO. Participants in the awards competition

competed with electric cooperatives of similarsizes in 19 categories. Electric cooperativecommunicators and marketing professionalssubmitted more than 744 entries in theSpotlight on Excellence program, now in its

SPOTL IGHT ON EXCELLENCE 2 0 0 8 AWARDS PROGRAM

21st year. Faculty members from theUniversity of Missouri – Columbiaand the University of North Carolina– Chapel Hill judged the entries.The Spotlight awards competi-

tion is an annual event recognizingthe top-rated communication andmarketing efforts by electric cooper-atives and related organizations.

This year, Iowa Lakes is providing internships to the following five bright students:

� Cody Bartling, working with the Emmetsburg service center, graduated in May 2009 fromMinnesota West Community and Technical College, Jackson, Minn., with an A.A.S in Powerline Technology.*

� Kraig Ewing, working with the Estherville/Swea City service center, graduated in May 2009 fromMinnesota West Community and Technical College, Jackson, Minn., with an A.A.S in PowerlineTechnology.

� Robert Ziegelmaier, working with the Pocahontas service center, graduated in May 2009 fromNorthwest Iowa Community College, Sheldon, Iowa, with an A.A.S in Powerline Technology.

� Joshua White, working with the Cherokee service center, is currently enrolled in the PowerlineTechnology program at Northwest Iowa Community College (Sheldon) and will begin classes inthe fall of 2009.

� Colin Brown, working with the customer and corporate relations department, is currently enrolledat The University of Iowa and plans to graduate in May 2011 with a B.B.A in marketing.

I L EC NEWS

and 14 feet in diameter and consists of an octagon-

shaped pedestal, constructed of 26.5 tons of steel rebar

and 275 cubic yards (which is about 1.5 million pounds)

of poured concrete. On the top of the octagon-shaped

pedestal is a round concrete base, made up of steel rings

and long anchor bolts, which will hold the towers in

place. The foundations for all 14 turbines have been in-

stalled and only the top six inches of the round concrete

base is now exposed as the two project sites awaits the

arrival of a large crane to hoist the upper sections of the

towers into place.

The final pre-construction job was installing ap-

proximately five miles of underground electric service,

called the collection system, which runs from each tur-

bine base to the distribution substation. Included in

the trenches with the collection system is the fiber op-

tics system.article continues on page 6

Progress on your Cooperative’s two wind farms is

well underway since construction began this summer.

While the most visible construction will take place in

January and February 2009 with the erection of the wind

turbines, preparing for the delivery of turbines is nearing

completion. Construction is being done in phases, be-

ginning with the construction of new roads, turbine

foundations and the underground electric lines and

communication system.

ACCESS ROADS Approximately five miles of new industrial-grade

roads were constructed to enable the delivery of the tur-

bines to each of the 14 turbine site locations. Even

though the construction of the roads was a major un-

dertaking, they are a key element in a wind farm project.

“We not only need access roads to drive cement trucks

to the site to pour concrete for the foundations, we also

need to get a crane beside each turbine site to lift the tur-

bines into place,” said Rick Olesen, Vice President of Op-

erations and Engineering. Although the wind turbines

are brought to the site in pieces, individual pieces are still

enormous – one blade is 128 feet long. The parts are

brought in on elongated semi tractor-trailers and with-

out a finished road surface and “turning corners" to

allow turbine-carrying trucks to make wide turns, the

semi trucks would not be able to access the turbine site.

TURBINE FOUNDATIONS

Once the roads were in place, work began on the

massive turbine foundations. The foundations need to

be substantial to withstand the large turbines. According

to Olesen, each turbine’s foundation is eight feet deep

inside

67

2Manager’s Comments . . . . . . . . . . . . . . .2

Energy Conservation Starts at Home

Where were you on Aug. 14, 2003? . .3

Construction Update . . . . . . . . . . . . . .4

Linemen on Patrol . . . . . . . . . . . . . . . .4

Oahe/Basin Tours 2008 . . . . . . . . . . . .5

Hummel Family Honored . . . . . . . . . .5

New Faces at Your Cooperative . . . . . .6

New Emmetsburg Service Center . . . .6

Basin Hosts Carbon Capture

Demonstration Project . . . . . . . . . . .6

Be a Cooperative Leader . . . . . . . . . . . .7

2009 Nominating Committee . . . . . . .7

10 Ways to Save Energy . . . . . . . . . . . .8

Christmas LED Lights . . . . . . . . . . . . . .8

Barn Quilts . . . . . . . . . . . . . . . . . . . . . . .9

Managing Heating Costs . . . . . . . . . . .9

Tree Trimming Available . . . . . . . . . . .9

Fact or Fable: Conditioning Devices

Save Energy? . . . . . . . . . . . . . . . . . .10

Pole Top Rescue Training . . . . . . . . . .10

New Online Power Outage Info . . . .10

Do You Have Stray Voltage? . . . . . . . .11

Jelly Cell Mates Make Useful Tool . . .11

Bird on a Wire . . . . . . . . . . . . . . . . . . .11

Operation Round-Up Funds

Dispersed . . . . . . . . . . . . . . . . . . . . .12

What to do in a power outage . . . . .13

Mobile Substations . . . . . . . . . . . . . .14

Another Great Year at the Clay

County Fair . . . . . . . . . . . . . . . . . . . .14

Buy, Sell, Swap . . . . . . . . . . . . . . . . . .15

Fall 2008

Iowa Lakes Electric CooperativeILEC NEWSConstruction on Wind Farms Un

derway

The ILEC NEWSis a quarterly publication for ILEC

member-owners. Look to the ILEC

NEWS for Cooperative news and

events, industry updates, helpful

hints and special features.

Our MissionIowa Lakes Electric Cooperative is

dedicated to leadership, growth and

environmental responsibility by

providing reliable, competitively-

priced energy while offering valuable

services to benefit our members,

our customers and the

communities we serve.

Industrial-Grade Access Roads Being Built

Concrete octagon-shaped pedestal being formed

The round concrete base will hold the towers

*The Powerline Technician major isdesigned to train students to becomeapprentice linemen in powerline construction and maintenance.

Top Row: Cody Bartling,Kraig Ewing.Second Row: Robert Ziegelmaier,Joshua White. Left: Colin Brown.

Iowa Lakes Electric Cooperative’sSummer Intern Program was developedin 1995 and has provided talented, college andvocational students with the opportunity to gainvaluable work experience at the Cooperative. This program has been a win-win for both

the intern and Cooperative. The intern receives asolid overview of the electric utility businesswhile contributing to their designated depart-ments through hands-on activities and project-oriented assignments. The interns also provide the Cooperative

with additional temporary help duringour peak construction season. In addition,

past interns have applied for full-time employ-ment with the Cooperative after completingtheir summer internships that has proven to be agreat tool to recruit future employees. The interns join the Cooperative during their

summer school break and normally work 40hours per week. The intern applicants must havea strong academic record and are in a field ofstudy relevant to the department they wish toreceive their internship.

SUMMER INTERNS L EARN W ITH YOUR COOPERAT IVE

13

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 10:00 AM Page 8

Gaps and air leaks in your home can lead to energy loss and add to yourheating and cooling bills. Air sealing is one of the best energy-efficiencyimprovements you can make to your home. Air sealing will not just reduceenergy costs, it will also improve your home's comfort and durability, accord-ing to Tech Resources Inc.Look at areas where different materials meet, such as between brick and

wood siding, between the foundation and walls, and between the chimneyand siding. Inspect around the following areas for any cracks and gaps thatcould cause air leaks:

� Door and window frames � Mail chutes � Electrical and gas service entrances � Cable TV and phone lines � Outdoor water faucets � Places where dryer vents pass through walls � Bricks, siding, stucco, and foundation � Air conditioners �Vents and fans Once you have located air leaks, you can then apply air sealing materials

and techniques as needed. Two common materials include caulking andweather stripping. Most experts agree that caulking and weather strippingwill pay for themselves in energy savings within one year.

C O N S U M E R T I P

tree trimming

protects power lines

Customer Energy News

DON'T LET

SLIP THROUGH

Your Cooperative maintains over 4,700 milesof power lines to serve the homes and businessesin our service area. Good tree trimming prac-tices help provide you with a more safe and reli-able electric service.

Trees and overhead power lines don’t mix.Even though trees provide many aesthetic, envi-ronmental and economic benefits, includingenergy-efficient shade and cooling during hotsummer months, or natural windbreaks againstwinter winds, there are dangers and risks createdwhen trees grow into power lines.

Trees conduct electricity and can create asafety hazard if grown close to electric lines.Power outages or momentary interruptions canoccur when branches come into contact withoverhead lines. Electrical arcing and sparkingfrom a wire to a nearby branch also can causefires. But a greater concern is the safety risk whenchildren climb trees near power lines. Accidentalcontact of electric wires with a tree limb or play-ing and trimming around the tree can be fatal.

If you have trees that are close to the electricallines, please call your Cooperative at 800-225-4532 and we will send you a Tree ClearingNotification Form or you can download the format www.ilec.coop.

Source: Iowa State University Facilities Planning andManagement

Energy Dollarsthe Cracks

14

ENERGY EFFICIENCY TAX CREDITS

What you need to know about

HOME ENERGY TIP

Get a tax credit of up to $1,500 dollars for insulating, sealing and weather-stripping your home. The credit is for

30 percent of the cost of qualifying improvements made to an existing home in 2009 and 2010.

Visit ENERGY STAR® at www.energystar.gov, keyword ‘tax credits,’to find out which projects qualify for the tax credit.

This helpful information brought to you by

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 10:00 AM Page 5

ANTIQUESFor Sale: Old Steel Wheels, $35/pair; Old MilkCans, $20 ea.; Baby Stroller over 60 years old $50.Assorted Antique Dishware. Hand Saws, $15,Hand Drills, $20, Hand Planer, $25. 712-362-5759.For Sale: Antique deluxe ice chest w/water cooler,100 years old, pristine condition. Antique oak buf-fet, dates to 1890, w/cut glass doors. 712-225-4940.For Sale: Antique Hoosier Cupboard, at least 100years old, excellent condition. $1,100. 712-225-4940.For Sale: Late 1800 Snooker Pool Table. 712-332-5076.AUTOMOTIVEFor Sale: 1979 Ford F150, ext-cab, 4x4, a/c, newtires, no rust $2,500. 712-852-9307.For Sale: 1981 Volkswagen diesel pick up. 4 speed.52 mi/gal when new. 712-332-5076.For Sale: 1991 Ford F150 4x4, bad motor $450.00.712-852-9307.For Sale: 1977 Mercedes 450SL Coupe. Runs butneeds restoration or could be used for parts.Running gear sound; body rust. 76,251 actualmiles. $1,500 OBO. 712-362-4093.For Sale: Lexus 330 ES, like new, 29,000 mi. 712-332-5076.For Sale: 1989 Chrysler Turbo Convertible byMaserati, hard top & convertible, like new, 27,000mi. 712-332-5076.

For Sale: Glasstite Rally Pop-up Hard Cover for87-97 short box full size pickup. $250. 712-362-5759.For Sale: 1979 Ford F150 4x4. Good air condition-er, nice shape. 712-852-9307.FARM EQUIPMENT /PRODUCTSFor Sale: 2004 John Deere 567 Round Baler, Megawide, Mega tooth. Only 4550 bales. Comes withextras $21,500.00. 712-209-2472.For Sale: 1650 Oliver Tractor, diesel. 712-848-3955.For Sale: Hydraulic Pump for M Farmall 100Tractor. 712-362-5759.For Sale: Craftsman Pickup Tool Box—full size,like new, $100. 712-362-5759.For Sale: 1987 IH 1660 combine, low hours, excel-lent condition; 2 – 844 IH corn head, wide row, forparts. 712-272-4243.MISCELLANEOUSFor Sale: I-Beam Trolley ½ ton, $20. Air Cylinder31”L, 3” Piston, 1 ½ Rod, $40. Electric Motors ½to 2 HP. Assorted sizes Pneumatic Cart Tires, $25.712-362-5759.For Sale: Air-water Traps, Oiler, Regulator, $5each. Cutting torch hose, $20. Eight Spools of 12 &16 Gauge Thin Wire, $50. 712-362-5759.For Sale: Pneumatic Tires: 4.10-3.50 (4), $20 pair.4.80-8, $25. 2.80-4, $20. 712-362-5759.

For Sale: Beige & white topper for 1976 ElCamino. Make an offer. 712-845-2341.For Sale: 3 well made saddle racks 29”x30”. 712-848-3955.PETSFor Sale: Dog to good Home, American Eskimo,1 ½ yr old. 712-852-9307.RECREATIONFor Sale: 2004 TNN Toyhauler. 10ft campingspace, 18ft trailer space. Sleeps 4. Ready for only$11,750.00. 712-209-2472 or 712-362-2034.YARD AND GARDENFor Sale: Yardman Lawn Mower, 21”, 3 in one, selfstarter, self propelled, w/bagger—used very little,190 cc Briggs & Stratton engine. 712-848-3955.For Sale:Water pond equipment—organic filterand pumps. 712-225-4940.FREEFREE: To good home—2-3 yr. old neutered pure-bred male Australian Shepherd. Rabies shots cur-rent. Good watch dog, very loving, but protective.712-732-1667.WANTED:WANTED: Claw Hitch made in Maple Hill, IA inlate '50's. 712-380-4969.WANTED: Used gas golf cart and trailer or lawncart to go behind 4-wheeler. 712-848-3852 or 712-480-2025.

Ads are printed in the order in which they are received. The ILEC NEWS publication is published quarterly. Classified ads are published only in the ILEC News quarterly newsletter. Please mailor email your classified ads by the 20th of the month prior to the ILEC News publication. Ads are limited to 25 words or less. Please, no real estate, commercial business or competing prod-uct ads. Iowa Lakes accepts no responsibility as to the accuracy or condition of the items listed below. In addition, Iowa Lakes does not warrant or express any opinion whatsoever as to thefitness or appropriate usefulness of any item as listed by owner. Email classified ads to maryd@ilec.coop or mail to 702 S. 1st St., Estherville, IA 51334.

n Dear Terry and ILEC,Today is our last day of activi-

ties and all I can say is thank you!Today we met with our senatorsand representatives and discussedissues. I was able to get a yes fromSenator Grassley to support SenateBill 146 with the railroad antitrustlaws. Yesterday we visited MountVernon and the White House. Wewere able to see President Obamaand his family on the balcony. Ialso wanted to throw in a surpriseat the end to let all of you know thatI will be representing ILEC andIowa on the Youth LeadershipCouncil in D.C. next month and atthe NRECA meeting in Georgia inFebruary. So for all your supportand for giving me the spendingmoney and this opportunity, I amgrateful! Thank-you,

Justin McCormick

n Iowa Lakes Electric, The Estherville Fire Dept.

would like to express our sincerethanks for your financial support ofour Fire Safety Education Program.It is our sworn duty to provide theEstherville community with thelevel of fire protection and life safe-ty the public expects. You have rec-ognized that we desperately need toreach our children with accurateand vital facts that will educate andhelp them grow as safe, happy andresponsible citizens. The materialswe have carefully selected weredeveloped exclusively by theNational Fire Safety Council.

Because of your generous sup-port, we are able to provide thiswell-rounded Fire Safety EducationProgram. Without your help thiscould not have been possible.

Thanks again, on behalf of theEstherville Fire Department and allthe young people who will betouched by your helping hand.

Yours in Safety, Service and Protection, Richard Beaver Jr.Fire Chief

n Thank you to the linemen whoreplaced a pole on our lawn. Iexpressed concern about the place-ment that might affect the top ofour Concolor Fir. The lineman saidhe planned on extending an armbrace to go around the tree. Weappreciate it so much. Thank you!

Marvin and Janet Lindsay

n I would like to offer my sincerethanks for awarding me the 2009ILEC and Basin Electric PowerCooperative Scholarship. Afterspending 60 days in Ethiopia this

summer on a World Food PrizeInternship, I plan to begin my col-lege career at Iowa State Universitythis fall, majoring in AnimalScience. Your support of my educa-tional endeavors is greatly appreci-ated, Christopher Sievers

n Just wanted to express ourthanks for the washer/dryer wewon in the recent drawing!! Welove them. They were installedFriday 6/12/09 and we are washingand drying up a storm! Amy, yourrep that came Friday was so nice!!“R.E.C.” is very sentimental to meas my father worked there for 30years- Retiring in the 1990’s (JohnMarron) (Pocahontas R.E.C.). IowaLakes Electric (R.E.C.) means a lotto us.

Rick & Jolene Hotovec

L E T T E R S F R O M O U R M E M B E R - O W N E R S

15

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 10:00 AM Page 4

8AM TO 8PM

i

OFFICE HOURS:8 a.m. to 5 p.m. (Mon- Fri)Contact Iowa Lakes 24hours/day, 7 days/weekwith the following toll-freenumbers:

Customer Service:800-225-4532 (24 hr.)(Primary and Emergency) Internet Services: Sales 800-225-4532Tech Support:888-326-5196

Customer and InternetServices Fax: 712-362-2819

Call Before You DigIowa One-Call 800-292-8989

Visit Us Online: www.ilec.coop

E-Mail: ilec@ilec.coop

Newsletter Editor: Tresa Hussong

PRSRT STD US POSTAGE

PAIDSIOUX CITY IA

PERMIT 138

702 South 1st St. • Estherville, IA 51334

QUIZ CORNER

1.What is the date of the wind farm dedication ceremony? ______________________________________________

2. What is the Web site address to express your concerns to the state’s congressional delegation on about keeping electric billsaffordable? ____________________________________________________________________________

3. Your Cooperative’s two wind farms began generating wind energy in March 2009. The wind turbines generate electricity in windspeeds between ________________________________________________________________________

Name: ____________________________________________________________________________

Account Number: ____________________________________________________________________

Iowa Lakes will continue to draw four lucky members eachquarter who will receive $25 credits towards their electric bills.This month’s $25 winners were: Karl & Colette Lovin, AlbertCity; Randall & Teresa Kauffman, Marcus; Helen Merril,Curlew; Delores Witte, Milford

Please continue to send in your completed Quiz Corner forms by the15th of the month prior to the next quarterly publication.

!

Help stabilize wholesale power costs during those hotand humid summer days by conserving electricity andreducing the demand for electricity during times ofpeak demand (normally between 8 a.m. to 8 p.m). Bysimply delaying the use of your electric appliances, such

as dishwashers, clothes washers and dryers and any otherelectric appliances until after 8 p.m., you will help reduce thepeak demand for energy. Help us to help you!

Reduce YourEnergy Use

ILEC SUMMER QTRLY_JUNE 2009:Layout 1 7/29/09 10:00 AM Page 1

The process of erecting each wind turbine was com-pleted in phases, beginning with the installation of thefirst of the three tower sections, called the base section.The cranes work together by hoisting the base sectionof the tower into the air and attaching it to its concretepedestal base. Long and massive anchor bolts securethe base section of the turbine onto its concretepedestal. After the base tower section was attached andsecured, the remaining two sections of the turbinetower were aligned and attached. Once assembled, thecompleted tower pedestal stands 262 feet tall andweighs 276,000 pounds.

The nacelle, which weighs 112,000 pounds, sits atthe top of the tower section near where the rotor bladesare attached and houses all of the generating compo-nents. The three fiberglass blades are manufactured asa matched set to ensure the 128 foot blades are symmet-rical and balanced. If the blades are not in balance, therotor blade assembly will not rotate smoothly and thevibrations would destroy the wind turbine’s generatorlocated within the nacelle.

inside

The ILEC NEWSis a quarterly publicationfor ILEC member-owners.Look to the ILEC NEWS forCooperative news andevents, industry updates,helpful hints and specialfeatures.

Our MissionIowa Lakes ElectricCooperative is dedicated to leadership, growth and environmentalresponsibility by providingreliable, competitively-priced energy while offering valuable servicesto benefit our members,our customers and thecommunities we serve.

Spring 2009Iowa Lakes Electric CooperativeILEC NEWS

President/CEO Comments . . . . . . . . . .2Powering Iowa’s FutureCustomer Satisfaction Survey . . . . . .3Salute to Our Team . . . . . . . . . . . . . . . .4Iowa Legislators WelcomedBack to Session . . . . . . . . . . . . . . . . . . .5Heat Pumps Save Energy . . . . . . . . . .6Count on Your Cooperative forReliability . . . . . . . . . . . . . . . . . . . . . . . .7Our Energy, Our Future Postcard . . . .8

Plans Cancelled for ProposedSutherland Gnerating Station . . . . . .8Planning a New Grain Bin? . . . . . . . . .9

2009 Annual Meeting andDirector Candidates . . . . . . . . . . .10-12

Automatic Bill Payment . . . . . . . . . .13

Above and Beyond . . . . . . . . . . . . . . .14

Introducing Kill A Watt . . . . . . . . . . .14

Energy Cost Adjustment . . . . . . . . . .15

Arnold Motor Supply Expanding . . .16

ILCC Wind Energy ProgramBenefits from USDA Loan . . . . . . . . .16

Economic Development Overview .17

Register for Oahe Bus Tour . . . . . . . .18

Cooperation Among Cooperatives .18

Basic Electric Receives Grant . . . . . .18

Buy, Sell, Swap Ads . . . . . . . . . . . . . .19

Join Mr. Tight-Watt’s Co-opEnergyCast! . . . . . . . . . . . . . . . . . . . . .20

Despite having an extremely cold and windy Iowawinter this year, construction of your Cooperative’stwo community-based wind projects remained onschedule. There were only a few weather related delaysdue to the cold temperatures and wind, whereasWanzek Construction’s safety protocol required con-struction to be temporarily suspended if the outsidetemperature dipped 5 degrees below zero or windspeeds reached 22 mph to ensure the safety of the con-struction crews and to minimize potential damage.

If the weather related delays would have put thewind projects behind schedule, Wanzek was preparedto power up portable generators with lighting towersto illuminate the construction site to allow the crewsto continue working late into the evening during timesof more favorable weather conditions.

Iowa Lakes first broke ground on theCooperative’s $43 million community-based windproject in June 2008 with a geotechnical review andsoil testing at each of the wind turbine sites. Onceeach turbine site location was determined, pre-con-struction work to prepare the area for the wind tur-bines began.

The first phase of pre-construction was to buildapproximately five miles of new, industrial-graderoads. Without a finished road surface the elongatedsemi tractor-trailers transporting the turbine partswould not be able to access the 14 turbine site loca-tions. In total, it took 25 semi tractor-trailers to deliv-er all of the components needed to construct just one1.5 megawatt wind turbine.

By mid-October the roads were in place and con-struction had started on the massive turbine founda-tions. The goal was to get the road infrastructurecompleted, the foundations installed and the under-ground electric service, along with a fiber optics com-munication system, buried before the ground froze.

Once the pre-construction work was completed,the ground needed to freeze to support the significantweight of the cranes. In December, semi tractor-trail-ers arrived at the wind farm sites hauling the construc-tion cranes. Each wind farm was equipped with threecranes, two smaller, 120-ton mobile cranes and onelarge 500-ton crane. The 500-ton special purposecrane had a long, lattice boom that extended 320 feet,about the length of a football field, that was needed toerect the 262 foot turbine tower.

Construction of Wind Farms Remains on ScheduleA 500-ton crane arrives at the turbine site

Assembling sections of the turbine tower

continued on pg. 5

Iowans receive electricity from their electricutility, which is determined by designated serv-ice territories that were created over 30 yearsago. In 1977, the Iowa General Assemblypassed legislation that permitted the Iowa

Utilities Board (IUB), which was then known as theIowa Commerce Commission, to establish exclusiveservice territories for all electric utilities. As a result,each electric utility must provide safe, reliable electricservice to all customers in their assigned service ter-ritory and cannot serve customers in another utility’sterritory.

The IUB established these service territories bycreating boundaries in a line equidistant betweenadjacent utilities with the flex-ibility to consider such thingsas preservation of existing cus-tomers and consideration ofnatural or physical barriers.

This legislative policy isstated as follows: “In the publicinterest to encourage thedevelopment of a coordinatedstatewide electric service atretail, to eliminate or avoidunnecessary duplication ofelectric utility facilities, and topromote economical, efficient,and adequate electric serviceto the public.” (Iowa Code476.25)

Iowa’s service territory lawhas served Iowa well and hasbecome a model for other states to emulate. This lawhas provided stability to the utility industry, mostnotably in the areas of planning and development.Electric utilities are very capital-intensive businessesspending and investing millions of dollars each year.Cooperatives must determine as accurately as possi-ble the future electric needs of our member-ownersin order to ensure an adequate and reliable source ofgeneration for today and at least 10 years into thefuture. Knowing with some degree of certainty whoour member-owners are and what specific geograph-ic areas your Cooperative is responsible to servehelps us accomplish this planning process moreeffectively. Not only must cooperatives plan ahead tomeet existing member-owners generation needs, wemust also plan for system expansion and mainte-nance of our existing physical delivery system – the

poles, transformer and wires. The certainty of know-ing where and when we must do this allows yourCooperative to plan more efficiently and be as costeffective as possible.

Under Iowa’s service territory law, all utilities aretreated equally. Every utility is landlocked andassigned electric service territories are helpful toIowa’s cooperatives in dealing with density issues.Density refers to the number of member-owners acooperative serves for every mile of utility lineinstalled and the lower the density, the higher thecost of providing electric service. Cooperatives servemember-owners who live primarily in rural Iowa aswe are all well aware.

On average, Iowa’scooperatives serve approxi-mately four customers forevery mile of line available,whereas Iowa Lakes serves,on average, 2.59 member-owners for every mile of util-ity line. The investor-owned(IOU) utilities in Iowa serveabout 23 customers per mileof line and the municipal util-ities serve nearly 54 cus-tomers per mile of line.Cooperatives must spreadthe operating costs of provid-ing electricity among a muchsmaller customer base thaneither of the other two typesof Iowa utilities.

Without exclusive service territories, coopera-tives would be at a significant risk of losing cus-tomers to other utilities and it is most likely – if thatwere to occur – that cooperatives would lose thoseareas with the highest concentration or density ofelectric customers. This would most likely include alarge number of important commercial and industri-al (C&I) accounts. The operating costs of providingelectricity, however, would not decrease significantlywith the loss of these customers and so the remain-ing member-owner base would have to struggle withthe rate burden from the increase of a disproportion-al amount of operating expense combined with thesignificant loss of the C&I operating revenue stream.Thus, exclusive service territories benefit the state ofIowa and the utility by providing member-owneraccount stability.

Terry L. BrunsPresident/CEOIowa Lakes

Electric Cooperative

2

Powering Iowa’s Future

Iowa Lakes serves, on average,2.59 member-owners for every mile of utility line.

Assigned electric service territories provide important benefits to member-ownersand incentives to pursue economic development efforts for Northwest Iowa

3

Cooperatives have taken the obligation toserve seriously, which is part of the serviceterritory law. Not only do we install the utilityinfrastructure necessary to serve the remotemember-owner living in a home in the mid-dle of a rural township, but we also work tobuild and adequately maintain all areas of ourelectric service territory.

Iowa’s cooperatives work closely withother utilities, cities and county economicdevelopment professionals by attracting newbusiness and industry to Iowa. YourCooperative is also active in economic devel-opment efforts across Northwest Iowa byworking individually with our member-own-ers to help them expand and grow locally. Wehave assisted in the development of severalindustrial parks, housing and diversified serv-ices for rural America such as HeartlandSecurity Services and Internet via satellite byWildBlue.

Iowa’s electric cooperatives have investedin their communities by contributing over$17 million statewide to support business and

community development programs.Collectively Iowa’s electric cooperatives havesome astounding statistics during 2007:� Managed a $679 million electric utility

business that employs 6,900 people andgenerated $176 million in local income.

� Leveraged $6.8 million in grants and loansfor a $220 million impact on local busi-ness investment.

� Provided financial and technical supportfor 44 wind turbines in their local areaswith a capacity to generate 38 megawattsof power. Regionally, Iowa’s electric coop-eratives provided economic support for350 megawatts of power.

� Invested $11.7 million in energy efficiencyprograms and services and saved member-owners more than $18 million. Assigned electric service territories pro-

vide cooperatives with the incentive to pursuemany different economic developmentefforts. When cooperatives know that we willbe the electric provider to new businesses,industrial parks or housing developments we

Your Cooperative’s Board of Directorsand employee team would like to thankthose of you who took part in yourCooperative’s fourth annual AmericanCustomer Satisfaction Index (ACSI) survey.The ACSI survey is one of the most recog-nized customer satisfaction indices in theUnited States and is one of the most effectivetools for measuring customer satisfaction.The survey results are used to track trends inmember-owner satisfaction and to comparethe Cooperative’s ACSI score to other elec-tric cooperatives and the electrical utilityindustry in order to make improvements.

The same ACSI questions are used yearafter year and throughout the electric indus-try making the ACSI survey the only statis-tically valid comparison that provides a uni-form, cross-industry measure of customersatisfaction. During the telephone surveyconducted December 2008, a group of 250randomly selected member-owners wereasked to evaluate the Cooperative based onthe four ACSI questions.

have helped attract, that makes for a positive win-win situation. Most importantly, it is not just yourCooperative that benefits; it is all of the member-owners of your Cooperative and the surroundingcommunities who benefit too! Absent assignedservice territories, there would be little incentivefor cooperatives to become involved in local eco-nomic development and the level of economicdevelopment activity by Iowa’s utilities would sure-ly decline.

It is important to remember that ethanol plantsor other agriculture related businesses should rec-ognize this unique law and locate their new busi-ness or industrial plants within our Cooperative’selectric service territory. That’s farmers helpingfarmers, Iowans helping Iowans, and neighborshelping neighbors!

Iowa’s two inventor-owned utilities (IOU’s) arelocated, headquartered or owned as corporationsin Madison, Wisconsin and Omaha, Nebraska notin Northwest Iowa!

Iowa Lakes Electric Cooperative is powerfullydedicated to serve the member-owners of yourCooperative yesterday, today and tomorrow.

The Power of Many Working As One!

ʻ05 ʼ06 ʻ07 ʼ08

85%

90%

96%

92%

Iowa L

akes

Elec

tric C

oope

rativ

e

Touc

hston

e Ene

rgy C

oope

rativ

es

Electr

ic Ut

ility I

ndus

try

86% 79% 73% 78%

ʻ08Overall Satisfaction

Mid A

meric

an En

ergy

Your Cooperative is pleased toreport that the survey resultsshowed that member-owners arevery satisfied and are loyal to theirCooperative as indicated in the2008 ACSI results below:� 92 percent of the member-

owner respondents said theyare somewhat or very satisfiedwith Iowa Lakes

� 84 percent of the member-owner respondents wouldchoose Iowa Lakes as their elec-tricity provider

� 88 percent of the member-owner respondents said IowaLakes has exceeded their expec-tations

� 86 percent of the member-owner respondents said IowaLakes was very close to beingan ideal utility company Based on the results of the four

questions, Iowa Lakes was award-ed an ACSI score of 86 – which iswell above average compared toother Touchstone EnergyCooperatives with an averagescore of 79 and the electric indus-try average score of 73. An ACSIscore of 86 places Iowa LakesElectric Cooperative 13 pointshigher than the utility industryaverage!

As depicted in the graph [tothe right], this marks the fourthconsecutive year that our mem-ber-owners have given Iowa Lakestop marks in customer satisfac-tion! “I would like to extend mypersonal thanks to each and everyemployee team member for yourindividual efforts to meet andexceed our member-ownersexpectations while providing safeand reliable electricity,” saysPresident/CEO, Terry L. Bruns.

Customer Satisfaction Survey Shows Iowa Lakes in Favorable Light

I L E C N E W S

COOPERATION AMONG COOPERATIVES

register for theoahe bus tour

92% of the member-owner respondentssaid they are some-what or very satisfiedwith Iowa LakesElectric Cooperative

salute to our team

During the Cooperative’s annual holidayparty, the following Cooperative employ-ees and directors were honored with serv-ice awards recognizing their long-termyears of service.

n Five year service award Employees honored: Ryan Boss, linemanof the Storm Lake service center crew;Chris Hoffman, lineman of the Esthervilleservice center crew; Patty Pelzer, customerservice representative, Nicole Planting,payroll accountant/ HR assistant; Bobbi JoRuschy, customer service representative;Lindsay Swanson customer service repre-sentative. Board Member honored: Tom Mortenson of Cherokee

n 10 year service award Employees honored:Mary Duitsman, cus-tomer service representative; JeremyMadden, lineman of the Emmetsburgservice center crew; Aaron Ruschy, fore-man of the Estherville and Swea City serv-ice center crews; Jason Thorson, linemanof the Cherokee service center crew.Board Member honored:Jerry Fuerstenau of Mallard, VernonWinterhof of Aurelia

n 20 year service award Joe Caven, lineman of the Spencer servicecenter crew.

n 30 year service award Clay Carstens, foreman of the Spencerservice center crew.

Cooperative Service Awards

4

Estherville/Swea City Service Center TeamWins 2008 Outage Award!

S A L U T E T O O U R C O O P E R A T I V E E M P L O Y E E S

The Estherville/Swea Cityservice center team narrowly wonthe 2008 Outage Award with thelowest number of member-owneroutage hours for the year! As illus-trated on the graph below, theEstherville/Swea City service cen-ter area experienced only 6.5 feweroutage hours than Spencer’s serv-ice center’s area during the year.Estherville/Swea City narrowlycaptured the victory from theSpencer service center that heldthe outage award title for the previ-ous two years.

Each year, Iowa Lakes ElectricCooperative’s seven service centercrews compete for the lowestamount of outage hours bothmonthly and annually. “We areproud that of each of our servicecenters has had the honor of win-

ning the outage award over the last15 years that we have had the com-petition,” said Vice President ofOperations and Engineering, RickOlesen. “This year, the outageaward difference between the serv-ice centers was the closest contestin the history of the competition!”

The Estherville/Swea CityForeman, Aaron Ruschy was pre-sented the award by Rick Olesen,during Iowa Lakes’ FebruarySafety Meeting. The commemora-tive plaque recognizing the crew’sexceptional accomplishment willbe proudly displayed at both theEstherville and Swea City servicecenters. Congratulations to theEstherville/Swea City service cen-ter teams!

2008 Service Award Winners Top Photo Front Row: JasonThorson, LindsaySwanson, Ryan Bosse, Mary Duitsman. Back Row: ClayCarstens, Nicole Planting, Aaron Ruschy, Patty Pelzer, JoeCaven, Jeremy Madden, Bobbi Jo Ruschy, Chris HoffmanBottom PhotoDirectors Vernon Winterhof, Tom Mortenson and JerryFuerstenau

2008 Year-to-Date Outage Hours

133.2 139.7 153.1167.6

238.3

Estherville& Swea City

Emmetsburg& Pocahontas

Storm LakeSpencer Cherokee

Pictured left to right, front row: Mat Kilgore, Tyson Nielsen, ChrisHoffman. Back row: Cal Wolterman, Aaron Ruschy-(foreman), BrianJohanson, Rick Johnson, Joel Quastad, Larry Walthart-(energy advisor).

5

Mem b e r - Ow n e r N ew s

Once the three rotor blades were attached tothe nacelle, one turbine weighs approximately560,000 pounds, equal to nearly seven fully loadedsemi tractor-trailers.

Installed on the top of the nacelle are twoinstruments to record wind data - an anemometerand a wind vane. The anemometer measures thewind speed and the wind vane measures the direc-tion of the wind. The wind data collected fromwind vane directs the wind turbine’s blade assem-bly to turn into the prevailing direction of thewind. Once the blade assembly is facing into thewind, the anemometer data determines the bestposition of the rotor blades angle and pitch to takefull advantage of the wind speeds.

On Feb. 25, 2009, only nine months since IowaLakes first broke ground on your Cooperative’stwo community-based wind projects, WanzekConstruction attached and secured the 14th, andfinal, rotor blade assembly to the nacelle of the lastwind turbine, thereby completing construction ofwind projects.

After General Electric (GE) commissioningcrews conducts the detailed inspection and testingof all 14 wind turbines, Iowa Lakes anticipates thewind farms to begin generating wind energy bythe end of March 2009. After the two wind farmsare fully operational and reach peak performancelevels, they will generate at least 71 million kilo-watt hours of community-based wind energy eachyear, which is the equivalent to serving almost3,700 of our member-owners’ farm/residentialhomes.

� June 2008 � Soil testing begins� 14 turbine sites determined� Pre-construction: 5 mi. of industrial-

grade roads built

� October 2008� Turbine foundation built, underground

electric service and fiber optics commu-nication system buried

� December 2008� Cranes arrived on site� Base section installed to pedestal� Turbine towers aligned and attached� Nacelle (all generating components)

and fiberglass blades placed on top

� February 2009� Final rotor blades assembled

Construction of Wind FarmsRemains on Schedule (cont.)

President/CEO, Terry L. Bruns, alongwith more than 130 electric cooperativerepresentatives, was in attendance at a wel-come back reception for Iowa legislators,held at the Quality Inn & Suites in down-town Des Moines, on Jan. 13, 2009.

Cooperative representatives discussedrenewable energy issues, energy-efficiencymeasures and the importance of coal as ahighly efficient base load generation sourcewith their legislators. Cooperative repre-sentatives also stressed the concern of high-er electric bills if the Iowa Legislature andGov. Culver adapts the state’s energy inde-pendence plan being developed by the IowaPower Fund Board and the Iowa Office ofEnergy Independence.

According to Iowa Power Fund BoardChairman Fred Hubbell, the doubling ofelectric rates and implementing energy effi-ciency mandates may be part of Iowa’senergy future. Hubbell said he believes thatIowa’s electricity rates have been held artifi-cially low and that making electricity moreexpensive will help reduce the demand formore electricity. “We as consumers will notchange unless there are some kind of man-dates to take us in that direction,” Hubbellstated during a speech at the IowaAssociation of Electric CooperativesAnnual Meeting, Dec. 5, 2008. “I don’t likeit any better than you do, but sometimesmandates are the only way to make changehappen,” Hubbell stated.

It is important that Iowa’s legislatorsunderstand the impact that future energypolicies will have on Iowans electric bills.Your Cooperative supports policies thataddress the concerns about global climate

change and environmental goals that sup-port affordable and reliable electricity.

Your Cooperative will continue ourconversations with your elected officialsand we encourage you to contact your leg-islators and let them hear your voice onkeeping Iowa’s electricity rates affordable.

On March 24, 2009, your Cooperative’sBoard of Directors and employee teamattended and participated in theCooperative’s “REC Day on the Hill” in DesMoines, Iowa.

What you can do is ask your electedofficials questions. You don’t need to be anenergy expert to ask questions. Askingquestions helps find the answers to solvethe problem of balancing climate changegoals with keeping your lights on and yourelectric bills affordable.

Right now, members of Congress, aswell as state elected officials, are hearingfrom lots of different interest groups whohave ideas about how to address climatechange. No one is talking to consumers,however. We need a plan people can livewith today while we deal with the climatechange problem of tomorrow.

Far too often questions don’t get askedby policy makers until plans go wrong. Webelieve it makes more sense to know theanswers before the laws are passed. You canhelp your elected officials and yourself byhaving this conversation. The electric billyou save will be your own!

Our Energy, Our FutureA Dialogue With America

To make things easy, we have a Web site that will send an e-mail for you. Go to www.OurEnergy.Coop and plug in your address. There you’ll be able to ask aseries of questions to your representatives in Washington, D.C. We’re kicking thiseffort off with a basic but critical question: What are they doing to make sure we’ll havethe power we need in the future?

IOWA LEGISLATORSWELCOMED BACKTO SESSION

Above, Terry L. Bruns visits with Rep.Chuck Soderberg

Greater EfficiencyA central air conditioner is usually the most costliest appliance to run

in the average home. A heat pump, on the other hand, is up to 300 percentenergy efficient because it does not cool the air, it simply transfers warmair from your home to the outside, which substantially reduces your cool-ing cost!

Energy efficient cash RebatesTo encourage you to install energy efficient equipment, Iowa Lakes

offers energy efficient cash rebates. The more efficient the equipment, thegreater the rebate (as listed below).

*Seasonal Energy Efficiency Ratio (SEER) rates the efficiency of an air condi-tioner. The higher the SEER rating of a unit, the more energy efficient it is.

contact your energy advisorPlease contact Iowa Lakes at 800-225-4532 to find out if an electric heatpump is right for your home!

6

E N E R G Y E F F I C I E N C Y

member-owners enjoynew heat pump

Customer Energy News

Mark and Judy Wehrspann of Milford, Iowa, have recentlypurchased a new home following Mark’s retirement fromLakeside Laboratory in Spirit Lake. The Wehrspanns havealways lived in state lab homes that had eithera gas or propaneheating system installed. Mark, who has been interested in geot-hermal heating over the years, got some encouragement fromIowa Lakes’ Superintendent of Field Operations, DickAnderson and Manager of Technical Support, Doug Dau.

Mark and Judy have now lived in their new home with ageothermal heating and cooling system for just over a year andare very happy with their decision. “Judy and I are totallypleased with our decision to go with a geothermal heat pump.The up-front cost is expensive, but the payback is immediate,”stated Mark Wehrspann. “Our geothermal heat pump is veryefficient.”

HOW A HEAT PUMP WORKS

Heat pumps can deliver up to 200 percent heating efficiency and up to 300 percent cooling efficiency!

heat pumps Save Energy

Ground Source Heat Pump ................................ $300/ton (3.5 COP and higher)

Air to Air Heat Pump14 Seer .....................................................$400/unit15 Seer .....................................................$500/unit16 Seer .................................................... $600/unit

Window A/C (Energy Star) ..................................$50/unit

Central A/C14 Seer* (min.) ..........................................$200/unit15 Seer......................................................$300/unit16+Seer ....................................................$400/unit

2 0 0 9 R A T E S F O R C O O P E R A T I V E S E R V I C E S

Here’s a look at the current rates for Cooperative services available tomember-owners in 2009:

Setting pole for member-owner....$150/hour, 1 hour minimumMileage ..............................................................$2.50/mileLabor (business hours) ............................................$50/hourLabor (after hours)................................................$100/hourAfter Hours Service Call ........................................$100/hour

On average, member-owners experienced the lowest number of electric serviceinterruptions in 2008 since the formation of Iowa Lakes Electric Cooperative in 1986!Your Cooperative set an all-time record in 2008 in which member-owners experienced,on average, only .569 hours/consumer of service interruptions during the year. YourCooperative’s previous record for the fewest hours of service interruptions was set in1999 with only .62 hours/consumer of service interruptions during the year.

Not only did your Cooperative set an all-time electric service reliability record, butwe also have the best service reliability record compared to all other Iowa cooperativesand investor-owned utilities (IOU) over the past five years. Providing you, the member-owner with outstanding electric service reliability does not happen by chance. This isthe direct result of your board of directors’ commitment to operate and maintain sixlocal service centers in addition to its headquarters service center facility in Estherville.

In addition, it takes a well-designed and technology advanced electric distributionsystem, a program of maintaining and inspecting the electric distribution system todetermine any replacement, maintenance and repair needs - along with a team ofknowledgeable, well trained and dedicated employees. It also takes a comprehensivemaintenance program that includes an annual pole inspection and treatment program,an annual overhead and underground line inspection combined with vegetation man-agement to trim trees and shrubbery that could interfere with providing you, the mem-ber-owners, with safe and reliable electricity. All of these programs are the result thatwhen you flipped the light switch in your home or business, your lights turned on99.9935 percent of the time.

Yet, your Cooperative recognizes that there are many factors that affect service reli-ability, many of which are beyond our direct control, including severe wind, rain, ice,farm equipment, auto accidents and transmission grid interruptions.

Each year, your Cooperative submits the following detailed service interruptionreport to the Iowa Utilities Board (IUB) based on the cause, frequency, and duration ofservice interruptions and impact on the Cooperative’s member-owners. Keep in mindthat the lower the number the better the performance rates.

System Average Interruption Frequency Index (SAIFI) tracks the number of out-ages, on average, that every member-owner experiences per year. This index is calculat-ed by dividing the total number of service interruptions by the total number ofCooperative member-owners. For example, a SAIFI of 1.0 would mean every member-owner on average experienced one outage per year. Your Cooperative’s 2008 SAIFIindex was 0.50!

System Average Interruption Duration Index (SAIDI)measures the length of out-ages, on average, that every member-owner experienced each year. This index is calcu-lated by dividing the total number of minutes each member-owner is interrupted by thetotal number of Cooperative member-owners. For example, a SAIDI of 100 minuteswould mean every member-owner on average experienced 100 minutes of serviceinterruptions during the year. Your Cooperative’s 2008 SAIDI index was 34.11!

Customer Average Interruption Duration Index (CAIDI) measures the averagelength of outages for member-owners experiencing an interruption in service. TheCAIDI index is a very good indicator of a utility’s response time. The CAIDI is calcu-lated by dividing the total minutes of service interruptions by the total number of mem-ber-owners interrupted. For example, a CAIDI of 100 minutes would mean every mem-ber-owner that experienced an interruption was without electric service for 100 min-utes. Your Cooperative’s 2008 CAIDI index was 68.53!

In the event of an outage, you can contact your Cooperative 24 hours a day, sevendays a week at 800-225-4532. We have an emergency restoration plan for securingand sharing equipment and personnel resources during widespread service inter-ruptions from all cooperatives throughout the state of Iowa, Minnesota and SouthDakota. This plan includes procedures to help facilitate and coordinate the manage-ment of a disaster as well as training components to prepare the entire employeeteam to handle an emergency situation.

Your Cooperative is dedicated to keeping your lights on and we are proud that wehave consistently provided you with an outstanding level of electric service reliability.

ʻ90 ʼ92 ʻ94 ʼ96 ʻ98 ʼ00 ʻ02 ʼ04 ʻ06 ʼ080

5

10

15

20

25

ʻ89

1.58

2.74

7.63

.569

22.73

2.1

Outage HoursHistoric Overview

ʻ05 ʼ06 ʻ07 ʼ08

1.05

.786

.834.569

.62

ʻ90 ʼ92 ʻ94 ʼ96 ʻ98 ʼ00 ʻ02 ʼ04 ʻ06 ʼ080

5

10

15

20

25

ʻ89

1.58

2.74

7.63

10 Yr Avg ‘81-’85 ‘89-’08

.569

22.73

2.1

Outage HoursHistoric Overview

ʻ05 ʼ06 ʻ07 ʼ08

1.05

.786

.834.569

.62

COUNT ON YOUR COOPERATIVE FOR

RELIABILITY

ʻ05 ʼ06 ʻ07 ʼ08

.87 .87

.50.60

SAIFI

ʻ05 ʼ06 ʻ07 ʼ08

34.1150.03

66.8279.51

Number of outages, on average, that every member-owner experiences per year.

I L E C N E W S

ʻ90 ʼ92 ʻ94 ʼ96 ʻ98 ʼ00 ʻ02 ʼ04 ʻ06 ʼ080

5

10

15

20

25

ʻ89

1.58

2.74

7.63

.569

22.73

2.1

Outage HoursHistoric Overview

ʻ05 ʼ06 ʻ07 ʼ08Hours/Consumer

1.05

.786

.834.569

.62

Below, a closer look at the average outagehours per consumer from 2005-2008.

ʻ05 ʼ06 ʻ07 ʼ08

CAIDI(minutes)

91.72

76.67

83.83

68.53

Average length of outages for member-owners experiencingan interruption in service. The CAIDI index is a very goodindicator of a utility’s response time.

ʻ05 ʼ06 ʻ07 ʼ08

.87 .87

.50.60

ʻ05 ʼ06 ʻ07 ʼ08SAIDI (In Minutes)

34.1150.03

66.8279.51 Length of outages, on average,

that every member-owner experiences per year.

7

To keep electric bills affordable, we need to make sure Congress is listening to Iowa’s electric co-ops I support public investment that improves our nation’s ability to deliver affordable, reliable electricity. I support wise investments that diversify our nation’s energy portfolio and make our country more energy

Now more than ever, I am very concerned about what rising energy costs will do to the average person. Many do not have the ability to pay higher electric bills.

My electric cooperative is working hard to keep my electric bill a!ordable. I understand that dealing with energy and environmental problems is complicated and will take time. My electric cooperative is ready to help you balance these priorities and "nd a solution. Will you please work with the electric cooperatives to be sure public policy meets my need for a!ordable electricity?

Thank you for your attention to my concerns. I look forward to hearing from you.

P LE A S E P R I N T

Name ___________________________________________________________

E-Mail __________________________________________________________

Home Address ___________________________________________________

City ____________________________________________________________

State ____________________________ ZIP____________________________

Co-op Name _____________________________________________________

Signature________________________________________________________

Date ____________________________________________________________

!

We have an energy challenge, America. We need your help. Send your postcard toIowa Lakes Electric Cooperative today!Fill out the insert below and return to Iowa Lakes ElectricCooperative. We will compile these responses and send them toyour Congressmen/Senators.

I L E C N E W S

8

Our Energy, Our FutureA Dialogue With America

Plans cancelled for proposed SutherlandGenerating Station Unit 4 hybrid power plant

On March 5, 2009, Interstate Power and Light Company (IPL), asubsidiary of Alliant Energy Corporation, along with the project’sthree other partners, including Corn Belt Power Cooperative (one ofyour Cooperative’s two wholesale power suppliers) cancelled plans toconstruct the proposed Sutherland Generating Station Unit 4 inMarshalltown, Iowa.

The decision to cancel the project is based on a combination offactors including the current economic and financial climate; increas-ing environmental, legislative and regulatory uncertainty regardingregulation of future greenhouse gas emissions and the terms placedon the proposed power plant by regulators.

“While our company is disappointed in this missed opportunityto further Iowa’s efforts to grow its economy and position our state asa leader in renewable energy, we will continue to focus our efforts onexpanding our renewable energy resources and energy efficiency ini-tiatives and reducing our environmental impact,” said InterstatePower and Light President, Tom Aller.

Corn Belt Power Cooperative Executive Vice President andGeneral Manager Ken Kuyper states, “It’s regrettable that this plantwon’t be built. This new source of generation was an important partof our plan for meeting the growing demand for electricity from thepeople of rural Iowa. Corn Belt Power will work to determine thenext best alternative to the Sutherland plant. We will continue to doeverything we can to meet our cooperative member-owner’s needfor reliable and affordable power.”

I NDU S T RY NEWS

On Aug. 22, 2008, Blaine Strampe retired after pro-viding 25 years of electrical engineering services to IowaLakes Electric Cooperative. Strampe had served as thechief electrical engineer for the Federated EngineeringGroup that provided engineering services for five areaelectric cooperatives, one of which was Iowa LakesElectric Cooperative. Strampe also served on theNational Rural Electric Cooperative Association’sTransmission and Distribution Engineering Committeefor 17 years.

The employee team and board of directors wouldlike to thank Strampe for his dedication and supportover the last 25 years and we wish him and his family thebest in his retirement.

LONG-TIMEENGINEER RETIRESAFTER 25 YEARSOF SERVICE!

THANK YOU FOR YOUR DEDICATION

12

3

9

Bin Height (ft.)

Add 5 feet to allow for displacement of electric wires due to wind.

Minimum bin set back requirements from electric wires (ft.)

Wire Height (ft.)

Contact your energy advisor before you purchase the binor add any new motor load to ensure that your load functionsproperly and does not compromise the quality of theCooperative’s electrical service delivered to others.

Individual motors of 25 horsepower (HP) or larger requirean engineering analysis and may require the installation of “softstart” equipment to reduce voltage problems.

According to the Iowa Electric Safety Code found in IowaAdministrative Code Chapter 199 – 20.4(15) b., an electricalutility may refuse or disconnect service without notice in theevent of “customer use of equipment in a manner which adverse-ly affects the utility’s equipment or the utility’s service to others.”

Your Cooperative has a “Shared Power” program thatrequires large, seasonal loads of 25 kVA or larger to share in theannual costs for transmission and distribution capacity. In orderto determine the annual Shared Power requirement, the trans-former is sized to meet your highest expected demand duringthe year. The Shared Power program is a cost-effective and con-venient program that offers you the flexibility and local controlof your farming operation.

Remember, when you communicate EARLY with the pro-fessionals at Iowa Lakes Electric Cooperative we can help youplan for a safe and cost effective new grain bin. Help us to helpyou!

CALL BEFORE THE GRAIN BIN PAD IS POURED | CALL BEFORE THE BIN SITE IS CONFIRMED | CALL BEFORE YOU PURCHASE OR ADD ANY NEW MOTOR LOADS

Before planning for a new grain bin (orto move an existing bin), make sure thatyou contact your Cooperative’s local energyadvisor to review the specific safety clear-ances along with the electric servicerequirements and associated charges. Inorder to meet your expectations and to pro-vide you with the electricity when andwhere you need it, please allow a mini-mum of six to eight weeks lead-time byfollowing the guidelines listed below.

Contact your energy advisor beforethe grain bin pad is poured to ensure it islocated a safe distance from overheadpower lines.

Your local energy advisor will provideyou with the assistance you need for a safeenvironment for those living and workingnear or around the grain bins. The State ofIowa requires specific clearances for over-head electric lines around grain bins, withdifferent standards for those filled byportable or permanent augers, conveyorsand elevators.

Electric wires should be at least 15 feetfrom the non-loading side of the grain bin;at least 18 feet from the highest filling orprobing port on the bin; and a clearance ofat least the bin height plus 18 feet from theloading side of the grain bin. Electric serv-ice cannot be provided to a grain bin instal-lation that does not meet these specificclearances.

According to the Iowa Electric SafetyCode found in Iowa Administrative CodeChapter 199—25.2(3) b. an electric utilitymay refuse to provide electric service to any

grain bin built near an existing electric linewhich does not provide the clearancesrequired by The American NationalStandards Institute (ANSI) C2-1997“National Electrical Safety Code,” Rule234f. This paragraph “b” shall apply only tograin bins loaded by portable augers, con-veyors or elevators and built after Sept. 9,1992, or to grain bins loaded by perma-nently installed augers, conveyors or eleva-tors built after Dec. 24, 1997.

To promote safety, it is also suggestedthat you post warning signs indicating“loading” and “non-loading” sides of thebin. Iowa Lakes Electric Cooperative hasfree warning decals available that can beused to alert others around grain bins.Safety First, Always!

Contact your energy advisor beforethe bin site is confirmed to ensure thereare adequate electrical facilities in placeto handle the new electric load.

Your local energy advisor will deter-mine the electric service requirements (sin-gle or three phase service) relative to thegrain bin’s motor size and review with youthe associated service extension charges.

SERVICE EXTENSION CHARGESMember-owners are charged a contri-

bution in aid of construction to extend orupgrade the Cooperative’s existing servicefacilities to your bin site. The service exten-sion charges are based on the distance andthe additional kVA capacity of loadinstalled or added.

Planning a New Grain Bin?

10

SATURDAY, APR I L 1 8 EVENT

9 am Doors Open (Registration Begins)• Continental breakfast served• Visit with fellow member-owners, employees and directors• Display area opens. Check out the great deals available on

WildBlue™ high-speed wireless Internet, Heartland Security Systems, energy efficient water heaters and more!

10 am Business Meeting• Secretary’s Report• Nominating Committee

Report• Chairman’s Report • Treasurer’s Report• President/CEO Report • Director Election• Prize Drawing

Gran

d A

ve

360th St.11th St. SE11th Ave. SW

West 4th St East 4th St

Spencer

Spencer Country Club

Clay CountyFairgrounds

West 18th Street

Clay Co. RegionalEvents Center800 West 18th St.Spencer, Iowa

Annual Meeting Location Map

I N T H E S P O T L I G H T :Plan to Attend Your 2009 Annual Meeting April 18

ANNUAL MEETING

‘09

REMEMBER to bring your Official Registration Card. It will allowyou to be eligible for the door prizedrawings. You must be present to win.

N

JERRY BECK(Incumbent)SPENCER, IOWA

Education: Two years of college;National Rural Electric CooperativeAssociation Credentialed CooperativeDirector Certificate; various boardleadership courses.

Occupation: Farmer

What are your strengths: I have beenon the ILEC Board of Directors foreight years and am very dedicated tothe Cooperative. I have taken the nec-essary courses to become aCredentialed Cooperative Director. Ihave owned and managed a successfulsteel building and grain bin business. Iam willing to listen to our member-owners, to find a solution to any prob-lems that arise and I am prepared tomake decisions based on facts.

Short-term goals: Keeping IowaLakes Electric Cooperative a leader in

the electric industry by providing reli-able, competitively priced electricity toour member-owners.

Long-term goals: Seeking opportuni-ties that will enhance theCooperative’s position in the energyindustry.

Biggest concern: Regulations placedon energy (electricity) that are politi-cally motivated causing exorbitantcosts instead of using a common senseapproach.

Other organizations and activitiesyou are/have been active in:Township trustee for many years;member of the American QuarterHorse Association and I collect andrestore antique tractors and attendtractor rides.

Education: 1 ½ years post high school

Occupation: Farming, custom cattle feeding, retail live-stock equipment sales What are your strengths: Outgoing, level headed, com-municator, personable, 20 years of co-op management

Short-term goals: To provide policy and direction tomanagement for the continuance of a strong energycooperative.

Long-term goals: Maintaining a strong financial energycooperative that can provide reliable, affordable, safe andclean energy for our future demands.

Biggest concern: Operating efficiently and affectively inan increasing governmental regulated environment

Other organizations and activities you are/have beenactive in: Administrative chairman – Zion UnitedMethodist Church, Township Trustee, Iowa Cattlemen’sAssociation, Clay County Fair Association

n D I S T R I C T I C A N D I D A T E S

JAMES SONIUSSPENCER, IOWA

DON’TFORGET!

DAVID R. EVANSNEWELL, IOWA

I N T H E S P O T L I G H T :Plan to Attend Your 2009 Annual Meeting April 18

Education: B.A. English, Pomona College;M.S. & PHD English, University of Virginia

Occupation: Vice President for AcademicAffairs & Dean of the Faculty, Buena VistaUniversity, Storm Lake, Iowa.

What are your strengths: I understand man-agement of a complex organization. I amgood working with people. I can assimilatelarge amounts of information quickly andthink critically and strategically.

Short-term goals: I want to understandILEC’s operations thoroughly and how theCooperative fits into Iowa’s energy infra-structure.

Long-term goals: I would like to help ILECachieve a leadership position in affordable,sustainable, clean energy in Iowa. More gen-erally, I am interested in fostering sustainableenergy practices nationally.

Biggest concern: I am very concernedabout how the current economic situationwill affect Iowa’s families and business cli-mate.

Other organizations and activities youare/have been active in: Formerly OklahomaSustainability Network; Iowa Dialog Center;numerous academic organizations.

Education: B.S., M.S. Agricultural &Biosystems Engineering at Iowa StateUniversity; National Rural ElectricCooperative Credentialed CooperativeDirector Certificate and Board LeadershipCertificate

Occupation: Farmer What are your strengths: I am not afraid toask the tough questions. Analytical analysisand oversight of business decisions. Positivevision for the future.

Short-term goals: Reliable, low-cost andaffordable electricity for our member-owners.

Long-term goals: I am a strong advocate ofgreen, renewable power and would like tosee our member-owners share in the gener-ation of renewable power.

Biggest concern: The need for additionalelectrical generation capacity so that ILEC isable to meet the electrical demand for ourmember-owners.

Other organizations and activities youare/have been active in: Trustee at church,Aurelia School Board, Buena Vista FSACounty Committee, Northwest ISU FarmBoard and Iowa Corn and SoybeanGrowers.

Education:High school

Occupation: Retired Businessman

What are your strengths: Strongwork ethic and willingness to look atall views. Business background.

Short-term goals: To maintain goodelectrical services and prices

Long-term goals: To insure that allILEC customers have all the energythat is needed at competitive prices.

Biggest concern: Governmentintervention in private affairs ofbusiness and people.

Other organizations and activitiesyou are/have been active in:Cherokee Lions Club

11

JAMES P. HULTGREN(Incumbent)ALTA, IOWA

LARRYSCHLICHTINGSTORM LAKE, IOWA

KossuthDickinson

Clay Palo Alto

Buena VistaCherokee Pocahontas

Emmet

ONE MEMBER , ONE VOTEDirector Elections for All Four Districts

Join your fellow members at Iowa Lakes Electric Cooperative’s2009 Annual Meeting. The Annual Meeting will be held onSaturday, April 18, 2009. The meeting will take place at the ClayCounty Regional Events Center located on the Clay CountyFairgrounds in Spencer, Iowa. The purpose of the meeting will beto elect board directors and conduct the regular annual meetingbusiness. Please join us for a free continental breakfast, businessmeeting and drawings!

n D I S T R I C T I I C A N D I D A T E S

DISTRICT I

DISTRICT II

DISTRICT III

DISTRICT IV

I N T H E S P O T L I G H T :Plan to Attend Your 2009 Annual Meeting April 18

GARY L. ROUSE(Incumbent)AYRSHIRE, IOWA ALANMADDEN

(Incumbent RunningUnopposed)RINGSTED, IOWAEducation: Two years of college

Occupation: Farmer

What are your strengths: Problemsolving, communication, long termthinking and wind energy.

Short-term goals: Help keep the costof electricity low and reliability, safetyand benefits to cooperative member-owners high.

Long-term goals: Finding morelocally controlled renewable energysources, cutting costs and increasingbenefits to ILEC member-owners.

Biggest concern: Future cost ofelectricity

Other organizations and activitiesyou are/have been active in: Church,Knights of Columbus, Townshipclerk, Pheasants Forever, cattle andhogs.

Education: Ayrshire High School and IowaLakes Community College

Occupation: Farmer

What are your strengths: I have completedthe National Rural Electric CooperativeCredentialed Cooperative Director certifica-tion course work during first term in office.Works well with the CEO and Board ofDirectors. Has become familiar with manyaspects of the energy industry including pro-duction and distribution.

Short-term goals: To maintain contact withthe member-owners in District III regardingtheir energy needs and concerns.

Long-term goals: To work with the rest ofthe ILEC Board of Directors to ensure thecontinuous delivery of competitively pricedelectricity to our member-owners utilizingenvironmentally responsibility and commu-nity friendly means.

Biggest concern: The effects of governmentmandates and regulations on energy costs.

Other organizations and activities youare/have been active in: Elder at ZionLutheran Church, Silver Lake TownshipTrustee

Education: BS AG Economics, South Dakota StateUniversity; National Rural Electric CooperativeAssociation Credentialed Cooperative DirectorCertificate

Occupation: Crop Insurance Agent, Pioneer Seed

What are your strengths: My training to become aCredentialed Cooperative Director (CCD) hasstrengthened my decision making ability. My pastexperience on the Board has given me the knowl-edge to have a strong vision for the future of ILEC.

Short-term goals: ILEC will face unknown chal-lenges as a result of the current economic condi-tions. I want to use my experience to contribute tofacing those challenges.

Long-term goals: Continue solid growth of theCooperative is essential. That growth will assurecompetitive and reliable power for our member-customer-owners.

Biggest concern: The general economic instabil-ity and how it may impact ILEC.

Other organizations and activities you are/havebeen active in: 4-H programs in Emmet Countyincluding: Chairman of Beef Committee and Co-Chair of Auction Committee; Beginning second termas Emmet County Board of Supervisor; Past PresidentEmmet County Cattlemen’s and Past Board memberof Stateline Cooperative.

n D I S T R I C T I I I C A N D I D A T E S ANNUAL MEETING

‘09

Save the Date!2009 Member Appreciation DaysJuly 7 . . . . . . . . . . . . . . . . . . . . . . . . . .Summit Evangelical Church, AltaJuly 9 . . . . . . . . . . . . . . . . . . . . . .Pocahontas Expo Center, PocahontasJuly 15 . . . . . . . . . . . . . . . . . . . . .Regional Wellness Center, EsthervilleJuly 16 . . . . . . . . . . . . . . . . . . . . . . . . .Regional Events Center, Spencer

JULY 2009

CHAD BOYSENPOCAHONTAS, IOWA

n D I S T R I C T I VC A N D I D A T E

S M T W T F S1 2 3 4

5 6 7 8 9 10 1112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30

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Have you visited us online? www.ilec.coop

Iowa Lakes’ Web site is packed with great member-owner information! Forresources ranging from energy usage calculators to local CFL recycling centers,you will find an incredible amount of useful products, timely updates and valu-able tips on our Web site.

While your on-line, enter the monthly drawings for free prizes, sign up forthe automatic bill payment option or learn more about our energy efficiencyprograms, services and rebates. Our Web site is easy to navigate with drop downmenus located along the top of the page. We encourage you to check out ourWeb site and we look forward to your feedback. Check us out at www.ilec.coop.

FAS

T • E A S Y • F R E E • F A S T • EA

S Y •

FR

EE •

FAST • EASY • FREE •

AUTOMATIC BILL PAYMENT

Members Helping Members

!

The Free and Easy Way to PayYour Monthly Electric Bill!Let the bank pay your electric bill with AutomatedClearing House (ACH). No more worries whether your elec-tric bill was paid or if it reached your Cooperative on time.ACH is a convenient way to pay your monthly bill. If yousign up for ACH, your monthly electric bill payment isautomatically deducted from your bank account.Member-owners no longer need to write a check and mailit or worry about forgetting to pay your bill on time.

All you have to do is fill out and sign the Automatic BillPayment Form (on the right) along with a voided checkand return to Iowa Lakes Electric Cooperative.

The amount of your electric bill will be deducted fromyour specified account on the 20th of the month. (If thatday should fall on a weekend or holiday, the deductionwill be processed on the following business day.)

If you have any questions about Automated Payment,please call Iowa Lakes Electric Cooperative at 800-225-4532 for more information.

qI hereby authorize Iowa Lakes Electric Cooperative to initiate variabledebit entries to my account at the financial institution named below for pay-ment of my monthly electric bill. I will continue to receive a monthly bill. Thebill will state in the bottom right-hand corner “Bank Draft DO NOT PAY”.The amount of my bill will be deducted from my account on the 20th of themonth. (If that day should fall on a weekend or holiday, the deduction willbe processed on the following business day.)

It is also understood that I agree to be bound by the operating rules andguidelines of the National Automated Clearing House Association and shallhave rights set forth here with respect to all entries initiated by Iowa LakesElectric Cooperative pursuant to this agreement.

It is understood that this agreement may be terminated by me (or eitherof us) at any time by written notice to Iowa Lakes Electric Cooperative. Anysuch notifications to Iowa Lakes Electric Cooperative shall be effective onlywith respect to entries initiated after receipt of such notification.

Bank Account InformationName of Financial Institution: ______________________________Routing Number:__________________________________________Bank Account Number: ____________________________________Type of Account: q Checking q Savings

SignatureAuthorized Signature (Primary): ____________________________Authorized Signature (Joint): ________________________________Date: __________________________________________________Electric Account InformationElectric Account Number(s): ________________________________Name (as it appears on electric bill): ________________________**Please attach a voided check.

13

Introducing Kill A Watt™What Are Your AppliancesConsuming?

Are you aware of how much energythat big screen television or that old,spare refrigerator in the basement orgarage is using? With the Kill A Watt™electricity usage monitor, you can dis-cover how much electricity your house-hold appliances consume and whichappliances continue to consume electric-ity even when turned off (phantomloads).

Simply plug the Kill A Watt™ monitorinto any household outlet and plug your appliance into the KillA Watt™ and the monitor will display how much electricity isbeing consumed, regardless of whether the appliance is turnedon or off. The Kill A Watt™ display will count electricity con-sumption by the kilowatt hour (kWh) enabling you to calculateyour electrical operating costs by the day, week, month, even anentire year.

Member-owners can borrow the Kill A Watt™ monitorfrom the Cooperative free of charge for a one week timeperiod. Simply stop by the office in Estherville or callyour Cooperative at 800-225-4532 to “check-out” a Kill AWatt™ monitor for use in your home for a one week timeperiod.

N e w s Y o u C a n U s e

I L E C N E W S

One lucky member-owner of Iowa Lakes ElectricCooperative has a new way to save energy. BobSpeed was one of six winners of a Smart Strip seven-outlet surge protector with energy-saving electron-ics. The surge protectors were the door prizes givenby Iowa Lakes Electric Cooperative and theTouchstone Energy® Cooperatives of western Iowa atthe Siouxland Home Show in Sioux City.

The special surge protector works with comput-er systems, entertainment systems and workshops.This is how the surge protector works: Plug the con-trol device (computer or television) into the strip’smain outlet; connect always-on devices (such as afax, cable box or satellite receiver) to the red “con-stant on” outlets; and plug everything else into thewhite switched outlets.The Smart Strip monitors the current flow and deter-mines if the control device is on, off or in the sleepmode. It turns the peripherals off when the maindevice is not in use, and on again when it is used. Congratulations to Bob!

Superintendent of Field Operations, DickAnderson was recently awarded the TouchstoneEnergy Power & Hope Award after he cameto the rescue of an Emmet CountySheriff ’s Department jailer.

The Touchstone Energy Power &Hope Employee RecognitionProgram recognizes and honors elec-tric cooperative employees who havereached out and helped the communityunder the most difficult of circumstances.Anderson was one of 26 nominees honored dur-ing the 2009 National Rural Electric CooperativeAssociation Annual Meeting in New Orleans, La.

Anderson, who was driving back to theCooperative’s service center in Estherville, cameupon a life threatening situation. A convictedprisoner, who had escaped from the squad car hewas traveling in was attempting to choke thejailor/guard with the chain on his handcuffs. Notknowing if the prisoner was armed Andersonsingle handedly removed the prisoner off thejailor/guard preventing the situation frombecoming any more serious.

Above and Beyond

As the prison guard was escorting the prison-er back to the squad car, the prisoner tried toescape again by assaulting the guard and attempt-ing to drive off with the running squad car.Anderson intervened again and removed theprisoner from the car. The Sheriff ’s Departmentsoon arrived at the scene to assist.

Anderson was honored by the EmmetCounty, Iowa Sheriff ’s Department for his displayof bravery without considering the danger to hisown life. Congratulations Dick!

14

Dick Anderson

As Iowa Lakes Electric Cooperative conducted a year-long,nationwide search for a new electrical engineer, we found themost qualified candidate working right in our own office!

Robert (Bob) Emgarten, a licensed Professional Engineer(PE) who has worked 22 years for the Federated EngineeringGroup that provided engineering services for five area electriccooperatives (including Iowa Lakes Electric Cooperative)brings over 25 years experience in electrical engineering toyour Cooperative.

We are very fortunate to have Bob join Iowa Lakes ElectricCooperative. Bob has a long history working with Iowa Lakesand is very knowledgeable of our electric distribution system.Bob is a great addition to our employee team,” saidPresident/CEO, Terry L. Bruns.

Emgarten, and his wife Mary, who are also member-ownersof the Cooperative, reside in the rural Spirit Lake area and havefour children. Welcome Bob!

BOB EMGARTENHIRED AS NEWCOOPERATIVEENGINEER

POWER COSTADJUSTMENT

15

Members Helping MembersWhat is RECare?

RECare provides local community action agencieswith funds to help low-income families pay for winterheating bills and weatherize their homes. This programallows you to help other less fortunate electric coopera-tive member-owners.

Through RECare, you may make a one-time contri-bution or a monthly pledge that will automatically beadded to your monthly electric bill. As little as one dollara month will help others. To participate, please completethe form below and return it with your monthly billingstatement to Iowa Lakes Electric Cooperative. Thank youfor your support of this worthwhile program!

Members Helping MembersR E C a r e P a r t i c i p a t i o n F o r m

Yes, I want to be part of “members helping members” and contribute to RECare.m I will make a one-time contribution to RECare. My check is enclosed.m I will contribute $____per month to RECare. I understand that this amount will be automatically added to my monthly electric bill.

Name: ________________________________________________Address:________________________________________________City, State, Zip: __________________________________________Acct. #: ________________________________________________

Please return reply form with your Iowa Lakes billing statement

Members Helping Members

!

As the demand for electricity continues to grow, so does thedemand to build additional generation resources. At the sametime, other factors which affect the cost of wholesale power suchas the construction of new generation facilities, cost of fuel, railtransportation costs and environmental regulations. All thesefactors have combined to force the price of electricity produc-tion up across the country and also at your Cooperative.

To pay for the production cost increases, and to ensure thatsafe, reliable and environmentally responsible electric servicecontinues, your Cooperative’s two wholesale power suppliersraised your Cooperative’s wholesale rates on Jan. 1, 2009.

Despite significant wholesale cost increases from yourCooperative’s two wholesale power suppliers, your Board ofDirectors has approved to continue freezing retail rates for atleast the first six months during 2009.

During 2008, your Cooperative internally absorbed whole-sale power cost increases of at least $500,000, so this proposedprice freeze cannot, and will not, last forever.

Over the last six years your Cooperative’s wholesale powercosts — which is currently almost 70 percent of yourCooperative’s operating costs — has increased by 35 percent andwe expect yearly increases in wholesale power costs in theupcoming years. One reasonable method to appropriately passon just the wholesale power cost increases is through a powercost adjustment (PCA). A power cost adjustment (PCA) is a lineitem charge on your monthly billing statement that may fluctu-ate on a monthly, quarterly or annual basis depending on theincrease or decrease in your Cooperative’s wholesale powercosts.

To help member-owners deal with rising costs, yourCooperative has several energy efficiency programs that havebeen developed in addition to existing programs that encouragewise energy use to help you manage your monthly electricitybills.

A balanced, common-sense approach is needed in develop-ing a national energy policy that ensures adequate, reliable andaffordable electric service. Any plan to significantly alter ourenergy policy or reduce carbon emissions must include respon-sible investments in all resources — by maximizing energy con-servation and efficiency, investing in renewable energy andencouraging additional generation from reliable technologiessuch as nuclear and cleaner burning coal. These are all compo-nents of a long-term solution to our nation’s energy, environ-mental and economic challenges.

Member-owners can be part of the energy solution to helpkeep electricity rates as low as possible by starting a conversationwith your elected officials. Log on and ask the questions aboutenergy policy that can be found at www.ourenergy.coop.

Amounts Invested in Energy Efficiency by Iowa’s Electric Cooperatives

01992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

© Copyright 2009 Iowa Association of Electric Cooperatives. Reprinted with permission of Living with Energy in Iowa magazine.

Your Board of Directors has approved freezing retailrates for at least the first six months during 2009.

On Dec. 16, 2008, a long-time Spencerbased company, Arnold Motor Supply, pur-chased the 20,250 square foot spec buildinglocated at Technical Park South in westSpencer from Spencer IndustriesFoundation.

Work has begun to get the buildingready for occupancy and once the buildingis ready to move into, Around Motor Supplyplans on adding five to six new jobs. Thenew building for the company’s IndustrialCoatings Division will include a blendingfacility, a training facility for the equipmentdivision called Arnold Group Equipment,and office space for both entities which arenow located in Sioux City and at the ArnoldMotor Supply auto parts store on SouthGrand in Spencer.

Arnold Motor Supply has been based inSpencer since 1927. With facilities in fivestates in the Midwest, they serve the auto-motive replacement parts industry. They

employ over 550 people, of which approxi-mately 86 work in Spencer at the warehouseand the parts store. The new training centerwill bring customers from around theMidwest for training on the company’s paintsystems, Industrial Coatings procedures,and other automotive and industrial relatedmatters.

The spec building was a partnershipbetween Iowa Lakes Electric Cooperative,Corn Belt Power Cooperative, the city ofSpencer, and Spencer IndustriesFoundation. The partners each contributedcash to the development of the first few lotsin Technical Park South and the two specbuildings, one now occupied by JohnstonAutomotive. Iowa Lakes ElectricCooperative and Corn Belt PowerCooperative also provided low-interestfinancing of the building for SpencerIndustries Foundation.

ARNOLD MOTOR SUPPLY ISEXPANDING IN SPENCER

Iowa Lakes Electric Cooperative’s President/CEO,Terry L. Bruns, second from right, and Jim Vermeer,left, vice president of business development, CornBelt Power Cooperative, meet with representativesfrom the City of Spencer, Spencer IndustriesFoundation and Arnold Motor Supply to close on thesale of the spec building in the Spencer TechnicalPark South.

ECONOMICGROWTH NEWS

A $360,000 grant secured by Iowa Lakes Electric Cooperative through the U.S. Department ofAgriculture will benefit the Wind Energy and Turbine Technology program at Iowa LakesCommunity College. The funds were initially announced for the Sustainable Energy EducationCenter/Wind Energy building in mid-2008.

“This is a prime example of Iowa Lakes’ commitment to Iowa’s renewable energy and we areproud of the college’s leadership role to help create jobs, economic opportunity and essential renew-able energy services in northwest Iowa,” said President/CEO, Terry L. Bruns of Iowa Lakes ElectricCooperative. The Wind Energy and Turbine Technology program continues to grow rapidly andneeds additional classroom space.

“We’re building these facilities in response to growing enrollment that surpasses the college’s abil-ity with current facilities to serve the amount of interest from students around the country,” said Dr.Harold Prior, president of the college.

“Our partnership with Iowa Lakes Electric Cooperative, Terry L. Bruns, Rick Olesen and all theemployee team at Iowa Lakes Electric Cooperative has been exemplary,” Prior added. “Their supportof our initiative to expand the Wind Energy & Turbine Technology program has enabled the collegeto make those expansions in programming in a timely manner.”

Iowa Lakes Electric Cooperative applied for the grant through the Office of Rural Developmentof the USDA. Once approved, the college submitted the necessary documentation to support thegrant application.

WIND WIND

WINDWIND WINDWIND

ENERGY

ENERGY

Long-time Spencer based company investing and creating jobs

C O O P E R A T I V E E N E R G I Z E S C O M M I T M E N T T O I O W A ’ S R E N E W A B L E E N E R G Y

President/CEO Terry L. Bruns, right, presents IowaLakes Community College President, Dr. HaroldPrior, center, and Robert L'Heureux, chief financialofficer with a check that will benefit the WindEnergy and Turbine Technology program at IowaLakes Community College.

Iowa Lakes Electric Cooperative USDA Loan BenefitsIowa Lakes Community College Wind Energy Building

USDA Rural Development’s Energy Program Can Help Reduce Energy Costs Since 2003, USDA Rural Development has assisted nearly 400 producers and rural businesses in Iowa with guaranteed loans and grants forrenewable energy and energy efficiency projects. Renewable energy examples include geothermal, wind, ethanol and biodiesel. Energy effi-ciency examples include new refrigeration equipment, grain drying systems and improved insulation. Businesses that use a large amount ofenergy, such as restaurants, grocery stores, bakeries, greenhouses and others may benefit from an energy‐efficient upgrade that these fundscould help finance. Total project costs can be as little as $6,000 for energy efficiency updates and $10,000 for renewable energy projects.

Contact Chris Mercer, (712) 732-1851or visit www.rurdev.usda.gov/ia

16

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Iowa Lakes Electric Cooperative has access to funding resources to stimulate economic growth and develop-ment in its service area. One such funding source is the Rural Economic Development Loan and Grant (REDL&G)Program that was specifically designed to assist job creation projects in rural areas. Iowa Lakes ElectricCooperative can apply to this unique USDA program that allows for up to $740,000 in zero percent interestfinancing to assist in area business expansions. For more than 10 years, your Cooperative has supported ruraldevelopment projects by securing REDL&G funds help create jobs, economic opportunity and essential services inrural areas that strengthening the local economy.

For example, after the town of Parkersburg was hit by an F5 tornado during the spring of 2008, Iowa Lakesprovided $50,000 for the construction of a new 9,558 square foot commercial building. Iowa Lakes was one of13 electric cooperatives to help provide funds for the project (see photo on the right).

Iowa Lakes Electric Cooperative prides itself in being proactive in economic development activities within its service area by creating and fostering economic development opportunities for the benefit of its member-owners, local communities and regional economic vitality.

Iowa Lakes Electric Cooperative prides itself in being proactive in economic development activities in Northwest Iowa. The Power of Many, Working as One!

1998

FINANCING: $250,000ENTITY: Iowa Great LakesChamber of CommercePROJECT: 30,000 sq. ft. spec.commercial buildingLOCATION: Lakes BusinessPark, Spirit Lake, IowaJOBS CREATED: 2

1998

FINANCING: $250,000ENTITY: Spencer IndustriesFoundationPROJECT: 20,000 sq. ft. spec.commercial buildingLOCATION: Spencer TechnicalPark, Spencer, IowaJOBS CREATED: 4

2002

FINANCING: $240,000ENTITY: Community Care CenterPROJECT: 18-unit assisted livingcomplex additionLOCATION: Ruthven, IowaJOBS CREATED: 6

2003

FINANCING: $175,000ENTITY: Albert CityImprovement CorporationPROJECT: Pleasant View Home16-unit Independent Living FacilityLOCATION: Albert City, IowaJOBS CREATED: 2

2004

FINANCING: $150,000ENTITY: Nystrom Leasing, IncPROJECT: 23,000 sq. ft. expansion to building leased toMetal Works, Inc. and MWIComponents, L.L.C.LOCATION: Spencer TechnicalPark, Spencer, IowaJOBS CREATED: 6In 2006, Iowa Lakes financed$50,000 for Nystrom Leasing’ssecond building expansion, creating six additional jobs.

2004

FINANCING: $125,066ENTITY: Estherville IndustrialDevelopment CorporationPROJECT: 30,000 sq. ft. spec.commercial buildingLOCATION: Estherville Technical Park, Estherville, Iowa

2006

FINANCING: $162,000ENTITY: Spencer IndustriesFoundation, Inc.PROJECT: 20,250 sq. ft. spec.commercial buildingLOCATION: Spencer TechnicalPark South, Spencer, IowaJOBS CREATED: 4

In 2008, Arnold Motor Supplypurchased the spec. building. See complete story details onpage 16.

2008

FINANCING: $258,000ENTITY: Estherville GoodSamaritan CenterPROJECT: Expansion and reno-vation of the Special Care UnitLOCATION: Estherville, Iowa

FINANCING: $360,000ENTITY: Iowa Lakes CommunityCollegePROJECT: Expansion to theWind Energy & Turbine Technology ProgramLOCATION: Estherville, Iowa

2009

Each summer, Iowa Lakes ElectricCooperative helps sponsor the Oahe/ Basin BusTour — a fun-filled pilgrimage across the historicDakotas to the Great Plains of our nation to thevery heart of our electric generation system.

During the three-day expedition, member-owners will visit Beulah, North Dakota and oneof the largest coal producers in the United States.

This is a must-see trip for anyone wanting agreater understanding of electricity generation!

To enter the drawing for this unforgettabletrip, fill out the registration form on the left andreturn it to Iowa Lakes Electric Cooperative byMay 15, 2009.

If you are selected, there is a minimal chargeof $50 per couple. The remainder of the expensesfor the trip are provided by Iowa Lakes ElectricCooperative and Northwest Iowa PowerCooperative.

Six Iowa Lakes member-owners and theirguests will be drawn as lucky winners with theirchoice of tour dates in July and August.

N e w s Y o u C a n U s e

On Nov. 9, 2008, Iowa Lakes Electric Cooperative dispatchedsix linemen (Jason Thorson, Joel Quastad, Todd Bell, DennisRodger, Brian Scott and Brad DeWall), two basket trucks, onedigger truck and a pole trailer to South Dakota to assist WestRiver Electric Association Inc., and Butte Electric Cooperativerestore power to their member-owners who were without elec-tricity caused by a major snow storm.

For over six days, Iowa Lakes’ storm crews, along with 25crew members from neighboring cooperatives and independentcontractors, worked long hours each day to help restore power toas many member-owners as quickly and safely as possible.

It was reported that at one point, the storm had downedmore than 2,000 utility poles and the damage extended the entirelength of the western part of the state of South Dakota.

18

Basin Electric Power Cooperative, head-quartered in Bismarck, N.D., is receiving a$300 million U.S. Department of Agriculturegrant for its Antelope Valley power plant inNorth Dakota to demonstrate carbon captureand storage technology that will capture3,000 tons of carbon dioxide per day.

Basin Electric’s project will capture andpressurize CO2 and pipe it to oil fields inCanada. The gas will be injected and stored

in the ground at oil wells to force oil to thesurface. The process will include injecting asmall percentage of CO2 into a deep salineformation to determine the viability of thatmethod for storing CO2.

The new project is being paired with aBasin Electric coal gasification plant thatproduces synthetic natural gas from coal andsends its CO2 emissions by pipeline toCanadian oilfields for oil recovery, and that

infrastructure enhances the carbon captureand sequestration demonstration project’sviability.

The Agriculture Department grantcomes in the wake of a 2008 EnergyDepartment decision to cancel theFutureGen carbon capture and sequestrationproject in Illinois in favor of multiple smallerprojects around the country.

Front Row (pictured left to right): Jason Thorson, Joel Quastad, Todd Bell.Back Row: Dennis Rodger, Brian Scott, Brad DeWall

D E D I C A T E D C R E W H E L P S C O O P E R A T I V E I N N E E D

I L E C N E W S

Basin Electric Power Cooperative Receives Grant for Carbon Capture Technology

COOPERATION AMONG COOPERATIVES

register for theoahe bus tour

Ask how you can receive a 10% discount on Heartland Security systems and monitoring!

1-800-225-4532

*

Certain restrictions apply. May not be combined with any other offers.

Let us keep watch while it

rainsWish you knew when your sump pump wasn’t keeping up? Wish you had known that your sump pump quit before seeing water all over your basement floor?

Sign up for aHeartland Security

system by April 30, 2009and a FREE water

sensor!*

Security systems fitted with special sensors can help detect smoke, water and temperature changes within your home.

AUTOMOTIVEFor Sale: 1996 Chrysler Town & Country,140,000 miles, good work auto. 712-744-3271 or 712-322-6341. For Sale: 1960 Ford Falcon 4dr, 6cyl, stick,new brakes, white color. $1,200. OBO. 712-858-4647.For Sale: 2006 Ford 500 4door PS, PB, ACAutomatic CD player, PSeats, 24,000 miles.$13,500. OBO. 712-858-4647.For Sale: 1995 Ford Crown Victoria PS, PB,AC. New tires and front end alignment.Good mechanical condition. White w/Blueinterior. $3,800. OBO. 712-858-4647.For Sale: 1964 Corvair Convertible 6cyl,4speed. No title parts car. $800. OBO. 712-858-4647.For Sale: 1979 Ford Ranchero. Body straight,some rust, needs engine. $1,200. OBO. 712-858-4647.

For Sale: 1971 Ford Pick Up, ¾ ton. $2,000.OBO. 712-858-4647. For Sale: 1965 Ford Ranchero Body straight,some rust, needs engine $1,200. OBO. 712-858-4647.For Sale: 1966 Ford Mustang. For restora-tion. $2,000. 712-858-4647.FARM EQUIPMENT/PRODUCTSFor Sale: JD pull 8 row 30” corn planter; JDA-W tandem disc; Peck 8-60 Auger; 200 bu.gravity wagon; JD 6 row mounted rotaryhoe. 712-426-3577.For Sale: 1989 International Diesel 400 bu.Oswald Mixer box 4 auger. 5 & 2 speed.Excellent condition. 712-853-6303.For Sale: BISON meat, locally produced andprocessed. We can deliver. All other bisonproducts available. 712-286-5678.For Sale: Black walnut shells for whoeverhas a use for them, price reasonable & nego-tiable. Albert City 712-843-5565.

HOME FURNISHINGSFor Sale: Very Good Condition, LesterSpinet Piano — Betsy Ross edition, benchincluded, reasonably priced at $150. 712-336-4875 or 712-336-1131.For Sale: Large hot tub or spa in good condi-tion. 712-865-3308.RECREATIONFor Sale: ’79 Majestic Travel Trailer, 20’ selfcontained. Includes: ’88 Chevy cargo vanwith heavy duty hitch & sway bars. $1,750. 712-336-5017.WANTEDWANTED: 6600 or 4420 JD Combine. 712-852-9307.WANTED: Waste Oil (No Anti-Freeze) willpick up. 712-858-4647.

19

Ads are printed in the order in which they are received. The ILEC NEWS publication is published quarterly. Classified ads are published only in the ILEC News quarterlynewsletter. Please mail or email your classified ads by the 20th of the month prior to the ILEC News publication. Ads are limited to 25 words or less. Please, no real estate,commercial business or competing product ads. Iowa Lakes accepts no responsibility as to the accuracy or condition of the items listed below. In addition, Iowa Lakes doesnot warrant or express any opinion whatsoever as to the fitness or appropriate usefulness of any item as listed by owner/seller. Email classified ads to maryd@ilec.coop ormail to 702 S. 1st St., Estherville, IA 51334.

n I want to thank you as I am paying mylast electric bill after our Hartwig family hasbeen with REC and Iowa Lakes Electricsince 1938. The meter pole is still in use. Icould not have better service after 71 years.Whenever our electric power went off, theline crew had power in a very short time.The worst was in January 1975. Our neigh-bors and we were out for about three days. Iwant to thank you for all the many years I’vebeen with the company and all meeting anddoor prizes I have gotten.

Your Past Time Customer, Robert Hartwig

n Iowa Lakes Electric, Thank you so much for donating the use

of your trencher/backhoe to Pat Walsh so hecould put in a water line for our 4-H Club.Our 4-Her’s truly appreciate companies likeyours. With your help, we can make the bestbetter!! Thank you ever so much!

Cherokee Cavaliers 4-H Club

n Thank you for the CFL Energy Starlights you sent us. I have already replacedthe last two regular bulbs with them. Thankyou for the $25 credit we received from theQuiz Corner Drawing. We enjoy reading thenewsletter and doing the Quiz Corner. Itsgreat how you keep us informed on what’sgoing on within the Co-op. Thank you forthe excellent service you give us.

Roger & Fran Schaefer

n The Ruthven–Ayrshire Post PromCommittee extends its sincere appreciationto you for your contribution to our postprom party. Thank you especially for yourconcern for the young people of our com-munities. Thank you for your donation!

Ruthven-Ayrshire Post Prom Committee

L E T T E R S T O T H E C O O P E R A T I V E

CONGRATULATIONS TO OUR RECIPE WINNER

During the month of December, member-owners had the opportuni-ty to share their favorite holiday recipes in our online Recipe Center

and be automatically entered into a drawing for $100 in glass bakeware.Member-owner, Alice Kollasch’s recipe was the lucky winner from all the recipesentered.

Iowa Lakes’ AmyHoward, Manager ofCustomer Service (left)presents Alice Kollasch withnew glass bakeware

$100WINNER

1/2 cup lukewarm water1/2 cup raw honey1/4 cup raw apple cider vinegar2 Tbsp mustard (not powder)

1 Tbsp chopped onion1 Tbsp poppy seeds Blend all 6 ingredients listedabove in blender.

Poppy Seed Salad DressingSlowly add 1 1/2 cups extra virgin olive oil.Blend. Chill. Enjoy

Join Mr. Tight-WattʼsCo-op EnergyCast!

Live Online SeminarWed. April 15, 2009

7:00 - 7:30 p.m.

inside

Reach UsOFFICE HOURS:8 a.m. to 5 p.m. (Mon- Fri)Contact Iowa Lakes 24 hours/day, 7 days/week with thefollowing toll-free numbers:

Customer Service:(800) 225-4532 (24 hr.)(Primary andEmergency)

Internet Services: Sales (800) 225-4532Tech Support:(888) 326-5192

Customer/InternetServices Fax:(712) 362-2819

Call Before You DigIowa One-Call (800) 292-8989

Visit Us Online: www.ilec.coop

E-Mail: ilec@ilec.coop

Newsletter Editor: Tresa Hussong

PRSRT STD US POSTAGE

PAIDSIOUX CITY IA

PERMIT 138

702 South 1st St. • Estherville, IA 51334

QUIZ CORNER

1. Now that the construction on your Cooperative’s wind farm is complete, the wind farms began generating wind energy at the end of ________________________________________________

2. In 2008, your Cooperative set a new record for the least number of service interruptions.On average, how many outage hours/consumer did member-owners experience in 2008?

__________________________________________________________________________________________

3. What is the date of the 2009 Annual Meeting? ________________________________________

Name ____________________________________________________________________________________

Account Number ________________________________________________________________________

Iowa Lakes will continue to draw four lucky memberseach quarter who will receive $25 credits towards theirelectric bills. This month’s $25 winners were:Steve Burgeson, Armstrong, IowaDonald K. Mummert, Aurelia, IowaMildred V. Hansen, Marathon, IowaLampe Farms, Havelock, Iowa

Please continue to send in your completedQuiz Corner forms by the 15th of the monthprior to the next quarterly publication.

!

Topic: CFLs - types, styles, uses and energy efficiency savingsGuest Expert: Rob Kirkpatrick, chief operting officer, Service ConceptsTo Participate: Login through a link on Iowa Lakes’ Web site,www.ilec.coop. No pre-registration required.FREE Prize Drawings for Participants

Now you can attend a live, on-line energy efficient seminar and gettips from an energy expert every third Wednesday of each month.

Join Mr. Tight-Watt’s Co-op EnergyCast!