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STEC Newsletter EMPLOYEE NEWS: While at the TSTC Annual Job Fair, Moises Gonzalez, was interviewed by the TSTC Staff as he is a 2001 Alumni. The article below was published in the Valley Morning Star Newspaper. The Donna office attended a job fair at Texas State Technical College and the article below was written by Jaimez, Eladio. “Gonzalez returns to alma mater on recruiting trip.” Valley Morning Star 17 April 2015.Web.23 April 2015. It seems that life came full circle for Moises Gonzalez last week at Texas State Technical College. Gonzalez, a 1996 graduate from Raymondville High School, spent about 30 minutes talking to a few students about working for South Texas Electric Coop (STEC) at last week’s Job Fair for TSTC students and recent graduates. It wasn’t long ago that Gonzalez was on the other end of job fair presentations. Gonzalez graduated from TSTC with a degree in Electronic Mechanical and Manufacturing Technology in 2001. A lot has changed since Gonzalez was a student, including the name of the program from which he graduated, which is now known as Mechatronics Technology. But the one constant over the years has been the reputation that precedes many TSTC graduates across the state. Gonzalez currently works as a Relay Technician Leadman for STEC, maintaining and installing electrical equipment in electrical power fields but he got his start in the Beaumont-Houston area. “When I arrived in my first job, I remember just telling people that you were from TSTC would open doors,” Gonzalez said. “It’s been my experience over the years that when you’re out there in the workforce, whether it’s down here or outside the Valley, and you tell them you graduated from TSTC it carries a lot of weight.” Gonzalez first arrived at TSTC wide-eyed and fresh out of high school unsure what he wanted to study. But he soon found his niche and a program where he felt he could be successful. “I came here with one of my friends and I figured I would take some basic courses then transfer,” Gonzalez said. “Once I got here I started looking into the different programs that TSTC offers and when I looked into the Electro Mechanical program, I knew that’s what I wanted to do.” Gonzalez has spent nearly 15 years working as an electrical technician including the past 12 years in the Valley with either Magic Valley Electric Coop or STEC. “It’s been the best decision I’ve made in my life,” Gonzalez said about coming to TSTC. “I don’t think that I would have gotten my foot in the door if it wasn’t for TSTC and the education I received here. I feel very blessed to have been a part of TSTC as a student and be able to come back for events like this job fair and recruit other TSTC graduates.” Gonzalez still lives in Raymondville and is involved with the community as a volunteer with the Willacy County Young Farmers Association. Every year, the WCYF Association hosts a fishing tournament in Port Mansfield to raise money for scholarships for students in the Willacy County area.

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Moises Gonzalez retuned to his alma mater on recruiting trip.

I NS I DE T HIS ISS U E: Employee News

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STEC Directors

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Manager’s Message

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Department News

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Pearsall plant pictures

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STEC Information

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South Texas Electric Board of Director News: 

Board Policy No. 109 – Service Awards for Employees and Directors was approved.

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Board Policy No. 110 – Cooperative Giving & Charitable Contributions was approved.

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Board Policy No. 224 – Observance of Holidays was revised.

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Board Policy No. 202 – Work Schedule and Overtime was approved and Board Policy 107 – Stand By Policy was removed.

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The 2014 Financial Audit was approved.

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2014 Member Capital Credit Allocations were approved.

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Mike Nasi continues to update Board on environmental issues, along with current legislative session activities.

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An Employee Incentive Plan was approved by the Board. The elements of the Employee Incentive Plan include: 

OSHA Recordable Incident Rate

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Avoidable Outage Performance

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Member Satisfaction Survey Results

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Wholesale Power Cost

The plan year is from November 1, 2014 to October 31, 2015.

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Representatives from STEC and the member cooperatives attended the NRECA Legislative Conference in Washington DC

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Discussed member 4CP notification process

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Reviewed WAPA Meeting

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Began developing Financial Management Policy

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Reviewed Member Survey Responses

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Reviewed 2015 Transmission Matrix and Rate

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Reviewed FERC Form 715

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Manager’s Message In the last newsletter, I wrote about STEC’s Vision Statement and Mission Statement. In this article, I want to focus on the four Core Values we have adopted as an organization: Safety, Integrity, Communication, and Teamwork. I devoted an earlier Manager’s Message to Safety, and I want to turn now to Communication. When I arrived at STEC last fall, I had numerous meetings with STEC employees: supervisor meetings, employee meetings, site staff meetings, department meetings, and informal one-on-one and small group meetings. In meeting after meeting, when I asked what the number one concern was among those in attendance, the answer I received was “communication,” or more particularly the need for better communication. George Bernard Shaw wrote, "The single biggest problem in communication is the illusion that it has taken place." And I wholeheartedly agree. In fact, I believe most supervisors and managers feel that they are already effectively communicating what they believe needs to be communicated to employees. To better understand this “biggest problem in communication” requires an analysis of how organizations communicate. Vertical communication refers to communication that strictly follows the chain of command, up and down the organization chart. Top-Down communication occurs when directives, policies, rules, and mandates are issued from senior management to the workforce. Bottom-Up communication occurs as employees exercise methods of conveying information up to management through suggestion boxes, anonymous emails, or the grievance process. Horizontal communication refers to communications that take place between members of different divisions that are at the same organizational level, i.e. technician to technician, first line supervisor to first line supervisor, division manager to division manager. Diagonal or multi-directional communication refers to a structure that fosters communications upward, downward, and horizontally and does not depend on any one structure. Appropriately implemented, it gives employees at all levels a sense of involvement and belonging. But putting in place a structure for communication to take place is only part of the solution. How we communicate within that structure is at least equally important. E-mails allow an individual to communicate with a very large audience, but e-mails cannot convey emotions and nonverbal cues. Joseph Priestly wrote, “The more elaborate our means of communication, the less we communicate.” In a similar vein, Peter Drucker has said, “The most important thing in communication is hearing what isn’t said.” While e-mails and social media can be a vital means of communicating technical information, policies, or procedures, the ability to interpret emotions and nonverbal communication cues increases understanding and enhances the quality of communications. Finally, we must always be cognizant of how our own conduct will influence the quality of the information we are attempting to communicate. Ralph Waldo Emerson wrote, “Who you are is speaking so loudly that I can’t hear what you’re saying.” People are drawn to authentic people who “walk the talk,” and they are turned off by people who are disingenuous or who do not live up to the standards they set for others. Who we are speaks volumes more than what we say. Each of us has a very clear understanding of how we believe we are communicated to. But how are you communicating with others? Are you sharing important information with others within the cooperative who could benefit from hearing from you? Do you feel like the mushroom – kept in the dark and fed organic fertilizer? Do you speak up when given the opportunity? Following each month’s Board Meeting, a supervisor staff meeting takes place. And at least every other month, a meeting of the Employee Standing Committee is held. Each of these meetings provides a forum for communicating diagonally within the organization. In addition, I and the Division Managers have an Open Door policy that I encourage you to take advantage of. In closing, let me leave you with two more quotes that speak volumes on the need to communicate: "The void created by the failure to communicate is soon filled with poison, drivel and misrepresentation."— C. Northcote Parkinson "The less people know, the more they yell."— Seth Godin

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Accounting Since the last newsletter was published, the accounting department has been assisting with preparation of the annual report. We have also been working on the Earnings Report of transmission which is due to be filed with the PUCT before June 1. In addition, we are gearing up to file an interim transmission cost of service study to get our transmission assets added since our last filing in September 2013 into our transmission rate. We are assisting the Finance and Audit Committee of the STEC Board in development of a Financial Policy for adoption by the Board. A simplified power cost billing statement is in the works as well. A new fuel credit card system is in the testing phase to see if it will be a more convenient tool for employees that have to travel outside of the Sam Rayburn area. Congratulations to Abbigale Pooley, daughter of Dan Pooley, as she will be graduating and then attend Texas A&M Kingsville and major in Human Sciences!

Corporate and Member Services As part of the Environmental Department’s goal to maintain compliance with STEC’s wastewater permit, Lester Contracting was hired to clean out vegetation surrounding the perimeter of the cooling pond here at Sam Rayburn. (See picture at right) Rene Estraca attended the annual Spring 2015 Standards and Compliance Workshop hosted by TexasRE on May13-14,

Elizabeth DiSanto, daughter of Dotty and Mike, was unanimously selected as All District Goalie and 2nd All Region Goalie. Liz, a senior at West, will attend Texas A&M to major in engineering this fall.

On May 7th, Brian Dippel presented the STEC Electrical Safety Home Arcing demo at the Kid’s Safety Fest sponsored by the Victoria County 4-H at the 4-H Activity Center. There were approximately 250 fourth graders from VISD in attendance for the safety fest.

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Credit Retail Summer Weather : With summer fast approaching, the increase in electricity usage in South Texas is inevitable due to warmer temperatures. Some customers can dodge higher usage winter bills by using gas heaters; however, everyone has an electric AC. Here are a couple tips for electricity conservation during the summer months:

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Check your AC unit. Don’t wait until it goes out and you have to stand in line with everyone else. Get it checked and charged in advance.

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Install a programmable thermostat and keep it around 78 degrees. It will allow you to set the temp when you are away from home and lower the temp shortly before you return.

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Drape your windows to block out heat. Use drapes, heavy blinds, or storm shutters.

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Lower you water heater temperature. A good summer setting is around 110 to 120 degrees.

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Use ceiling fans when at home to cool down. Remember, fans only cool your body temperature, not your house, so turn them off when you leave.

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Plan your meals. Grill outside or cook inside with a crockpot. When you use your oven or frying pans, it heats your home which increases your AC use.

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Wash clothes and dishes at night and let your dishes air dry. Stay clear of running large electronics between 2 pm and 8 pm.

Congratulations to Jacklynn Thormahlen, daughter of Ina Hohlt, for receiving the Most Valuable Player (MVP) award for the Victoria East JV Softball Team. We would also like to congratulate Landon Perez, son of Jackie and J.R. Perez, and all the graduating seniors this year! Landon will be graduating Victoria East High School and will begin his college career at Victoria College. Landon is a proud member of the Victoria East Baseball Team that had a great year making, it to the Regional Quarterfinals!!! The CR Department is very proud of both of you!

Engineering Engineering has had 2 positions open since last year and has interviewed many candidates. We have finally filled both positions with expected start dates in July. The search for a distribution engineer to replace Randy Snider since his retirement continues. Engineering held a technical conference for our member cooperatives and STEC staff who provided updates on operations, SCADA, and project construction status. We also had presenters on Exacter Technology, Hendrix insulators, Posibreak elbows, and distribution arresters selection. ERCOT conducted a survey regarding under frequency relaying on May 12, 2015 at 11:00 A.M. The under frequency load shed requirements are Group 1 – 5%, Group 2 – 10%, and Group 3 – 10%. The STEC UFLS Results were: Group 1 Group2 8.50%

14.21%

Group3 14.96%

Therefore we passed the 2015 ERCOT UFLS survey. Thanks to all who assisted. Engineering had 9 individuals attend switch training for Hurricane Preparedness.

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Human Resources On March 30-31, Hal Wood with Advisory Management Services, Inc. led a two day Leadership Skills for Managers & Supervisors program at the Hampton Inn. A total of sixty–two STEC employees and a few employees from Wharton, Nueces, and Karnes were in attendance. Hal covered the following topics: Leadership vs Management, Changing Role of Managers/Supervisors, Leadership Traits, Earning Trust, Respect & Credibility, Cultural Values to Promote, Understanding Yourself and Others, Motivates Myths and Methods, Generational Difference, Interpersonal Communication, The Coaching Leader, Delegation, Resolving Conflict, and Discipline and Evaluation. As Hal stated, “Coach every day, coach every day, review your workbooks, and coach every day!” TEC held the 30th Annual Human Resource Conference program May 19-20 in Dallas. The HR department attended this conference that covered topics that ranged from Wellness, Affordable Care Act, Labor Law Updates, Harassment and Bullying in the Workplace, Legal Aspects of Social Media, and Emotional Intelligence in the Workplace. The variety of topics

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and speakers shared a lot of information and tips with the attendees. The Co-op attendees also participated in a Team Building project: Blankets and Buddies. Attendees were split into different groups and had to make fleece tied blankets and stuff small animals while writing a short story. Each group had to assign roles within their group and write a story including the stuffed animals and relate it to human resource topics. The animals were then dressed in outfits and inspiring notes or words of encouragement were attached. The blankets and animals were then donated to the non-profit organization Community Partner in Denton county to be shared with children that are removed from abusive homes or homes where the children are neglected. This was a great team building project that made you realize with TEAMWORK a big project can be accomplished in a short time when everyone learns to work together and respect each individual’s talents and specialty.

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System Operations The last couple of months have been quite eventful providing excellent OJT for the Operator Trainees. ERCOT provided Black Start simulator training and the annual operations training seminar that all system operators attended. Matt Bernhard has passed the ERCOT Certification Exam and will soon move into the shift rotation.

Keith Hastings attending one of this year’s three day Black Start training sessions in Taylor, Texas.

Transmission Since mid-April, Transmission has been busy dealing with many storms that damaged different equipment. The department repaired 10 poles that were broken, two station transformers: 1 at Choke Canyon and the other at Danevang. The crews worked long hours to repair damage that the recent storms have caused across the STEC service area. The department continues to work on upgrades that are required. Louis Buske retired as Assistant Line Superintendent on May 15.

BJ Huff and Jose Mendiola repair wire after a tornado caused damage in the Corpus Christi area.

Louis Buske retired after thirty-five years with the company.

Construction crews worked at Pawnee enlarging the Control House to accommodate the new relay panel for the new addition. The crews also installed under ground conduits at Amistad for the new metering for communications and we are also trying to get ready for the Gen 3 renovations by installing new beams for oil drum containment and finishing the trash dumpster ramps in the bottom yard.

Isidro Madrigal and Andrew Jackson repair down poles on King Ranch in the middle of a cornfield in waist deep mud.

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Wholesale Marketing Mike Troell, Manager of Wholesale Marketing retired on May 5th after 44 years of service. Mike started as an Operator at the Sam Rayburn Plant in 1972. He moved to System Operations and the Wholesale Marketing Department after it was formed, where he served as manager for 17 years. With Mike’s departure, Clif Lange has assumed the position of Manager of Wholesale Marketing. Clif was previously Assistant Manager of Wholesale Marketing and has 15 years of experience at STEC. Congratulations to both Mike and Clif! Other Wholesale Marketing news highlights include: Clif Lange and wife Sandra had a 6 lb. 8 oz. baby boy, Luke John Lange born on April 21st. Kafia Delgado’s son Jordan Delgado just graduated from Victoria East HS and will be attending Victoria College in the fall. Jay and Vicki Ohrt’s daughter Dallas just graduated from Goliad HS and will be attending Victoria College.

Red Gate Power

Burns and McDonnell and Casey Industrial are continuing construction of the Red Gate Power Plant. To date, the contractors have poured foundations for 9 of the 12 engines, installed several electrical duct banks, and started erecting structural steel radiator supports. Erection of the main powerhouse building is scheduled to begin in mid-June. STEC is targeting a June 1, 2016 commercial operation date.

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Pearsall Lance Yaws filled the open position for Maintenance Technician at the Pearsall Power Plant. Lance was previously an Operator at the plant and has been with STEC for almost a year. Over 5 years after construction, the Pearsall Plant continues to host tours showcasing the Wärtsilä reciprocating engine technology. The most recent visitors to the plant include Fermaca, a large Energy infrastructure firm based in Mexico, and Chicago-based energy giant, Exelon.

Sam Rayburn Power Please welcome Jeff Brandes, who has joined STEC as an Operator at the Sam Rayburn Power Plant. Jeff worked previously as an operator for CAMS at the Victoria Power Station. Other Sam Rayburn Power Plant news highlights include:

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Norman Simmang’s daughter Hailey Simmang just graduated from Texas A&M with a Bio-Environmental Science degree. She has already landed a job in Bryan working for Aqua Tech Laboratories. Norman Simmang’s daughter Emily Simmang just graduated from St. Joseph HS and will start at Texas A&M in the fall. Anna Warner’s daughter Malia had a 6 lb. 15 oz. baby girl, Kailani Jade LeFevre, born January 23, 2015.

Valley Office: Moises Gonzalez, Edgar Chavez and Loretta Gallaga attended the annual Texas State Technical College’s Annual Job Fair in Harlingen on April 2, 2015. They were among 55 employers interviewing TSTC students, including spring and summer graduates. Over 500 students participated. Of the students interested in working for STEC, they were able to interview 4 candidates on the spot for the Relay Technician position. Afterward, two candidates were invited to formal interviews.

Jose Mares, was the successful candidate and was offered the position of Relay Technician for the STEC Valley Office. Jose is from San Benito and is married to his wife, Elva. They have two children, Joel (age 3), and Joey (age 2). Jose likes to fish, hunt, barbeque and works on vehicles to modify engines. Please help us welcome Jose to our STEC Family.

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Technical Services Much of the work the Technical Services department has been weather related repairs, but we are still adding communications into new substations. The two photos below are of Shawn Diebel and Warren Buchhorn in a lift basket installing a communications dish at the Hindes substation. This will facilitate the communications path for telephone, SCADA, and remote video monitoring of the station.

Gary Cowey is performing radio work in the Goldfinch communications repeater building.

James Boehm, Kalen Jalufka, and Bobby Fojt from the substation maintenance crew are changing a bushing on the transformer at Falcon Dam.

Collin Klimitchek, the son of Darrell & Robyn Klimitchek recently earned a spot on two World Championship archery teams. Collin will represent the United States in the Senior World Championships in Copenhagen, Denmark this July. He will also represent the US at the Junior World Championships in South Dakota this June. The photo on the left is the US Team that will be shooting in

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Pearsall Energy Center Rick Ramirez, Pearsall Security, took these sunset pictures at the Pearsall Energy Center and wanted to share the serene scenes.

Member Coop’s Working Together: Medina & STEC

Medina Electric tweeted this photo on their twitter page on April 15, 2015 with the following tweet: Another day at the office. # Uvalde crew changing out a transmission pole with @STEC18.

Safety is Our Way of Life P. O. Box 119/2849 FM 447 Nursery, TX 77976

www.stec.org

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Vision Statement South Texas Electric Cooperative is a cutting-edge Generation & Transmission Cooperative and a leader in providing a diverse portfolio of affordable energy, a reliable power delivery system, and services customized to the needs of the members