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The Rural Missouri NEWS Service
Jim McCarty 573-635-6857, ext. 3402

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October 2009

Co-ops Take a Back Seat To No One
When it comes to community investment, no one does it better

When it comes to making economic and charitable contributions to their communities, the nation’s more than 40,000 cooperative businesses take a back seat to no other economic sector. That’s the inescapable conclusion from a collection of case studies assembled for the annual celebration of Co-op Month in October. The 20-plus pages of case studies, put together by the National Co-op Month Planning Committee, show that co-ops generate hundreds of thousands of jobs and billions in income for their communities through their day-to-day activities.

Nearly 3,000 farmer cooperatives, for example, account for as many as 300,000 jobs nationwide and a total payroll of more than $8 billion. Some 270 local, consumer-owned telecommunications cooperatives employ an average of 47 people each and generate more than $2 billion in revenues annually. In Minnesota alone, cooperatives of all types generate more than $10 billion in economic activity annually. In New York, credit unions alone generate $4 billion annually.

But that’s not all co-ops do. They also have a strong commitment to the communities in which their members live and work. Every day, in every sector, through cash contributions and volunteerism, co-ops support local causes ranging from education to the environment. They also invest in new community businesses. Cooperatives around the country have demonstrated similar community commitment. For example:

  • Missouri electric cooperatives recently partnered with the state of Missouri to apply for federal funds to bring high-speed Internet service to unserved parts of the state.
  • Ag cooperative MFA provides millions in scholarships to rural youth who will someday be the next generation of ag leaders.
  • A rural electric co-op in South Dakota helped fund an ethanol plant that today adds $50 million to the area economy.
  • A telecommunications co-op in Iowa launched an economic development program that created, among other things, an assisted living facility, an apartment building, three new restaurants, and an Alzheimer’s care unit.
  • Four credit unions combined to assist low-income New Yorkers with their tax forms, triggering $2.5 million in tax re-funds that otherwise would have gone unclaimed.
  • An Arizona food co-op formed a recycling program that now includes 100 businesses and was cited as the best in the state.
  • A co-op printer in Massachusetts donates 10 percent of its profits to the community in support of causes including labor and human rights, the environment, child development and the homeless.

And that’s just the beginning. Some of the nation’s biggest co-ops have made major commitments to help solve national problems:

  • Ace Hardware struck a blow for energy efficiency by promoting the sale of 800,000 energy-efficient fluorescent light bulbs over the course of a year.
  • Carpet One created an award-winning child literacy pro-gram that sends troupes of actors to grade schools around the country.

This extensive community involvement isn’t just chance. As member-owned enterprises, co-ops are owned largely by the people who live and work in the communities they serve. That gives us a different perspective from businesses owned by distant investors. For cooperatives, community is not just where we work; it’s why we work. Cooperatives are motivated to serve their members, not outside investors. Doing that means we must also serve the communities in which our members live, work and play.

As we pause to celebrate the role and accomplishments of the nation’s cooperatives, their economic and charitable contributions cannot be overlooked. At a time of increasing concern about the national economy, co-ops are creating jobs, income and opportunity in their communities every day.

Sure, investor-owned businesses generate jobs and make charitable contributions. But for co-ops it’s more personal. It’s a critical part of where we work, what we do and why we do it. Perhaps the theme for Co-op Month 2009 says it best: Cooperatives: Owned by our members. Committed to our communities.

Cut Your Water Heating Costs
Big savings possible from one of your home’s biggest energy users

After heating and air conditioning, what’s the single largest energy expense in your home? It’s your water heater, which may account for up to 20 percent of your utility bill, according to the Missouri Department of Natural Resources (DNR).

Here are a few simple ways to cut your water heating costs: First, select a water heater with as small a tank as possible to meet your family’s needs. Start by looking at the EnergyGuide label on a heater for the First Hour Rating (FHR) in gallons. That’s the amount of hot water in gallons the heater will supply per hour (starting with a tank full of hot water).

Then estimate how much hot water your family uses in a peak period, such as early morning. The U.S. Department of Energy has a handy worksheet for estimating your peak hot water demand. Go to www.energysavers.gov, and search for “storage water heaters.”

Second, lower tank temperatures and add extra tank insulation. Heat lost through tank walls is called standby heat loss and can account for 20 percent to 60 percent of the total cost of heating the water. Lowering the tank temperature to about 120 degrees and adding extra tank insulation will cut these losses.

Third, use less hot water. DNR offers these simple ways to reduce your hot water use:

  • Install high-efficiency showerheads so that less water needs to be heated for showers
  • Install low-flow faucet aerators for the kitchen
  • Take shorter showers – Even a 5-minute shower with an energy-efficient showerhead can use 12 gallons of water; compare that to 24 gallons for a 5-minute shower without an efficient showerhead!
  • Use dishwasher wisely instead of washing dishes by hand
  • Wash full loads of dishes
  • Use the dishwasher’s air dry instead of heat dry cycle
  • Set clothes washer cycles for the lowest temperature and water amount that will get clothes clean
  • Rinse on cold water setting; a hot wash/warm rinse laundry uses 30 gallons of heated water compared to only 19 for a hot wash/cold rinse or 12 for a warm wash/cold rinse
  • Set water heater temperature at 120 degrees

Fourth, reduce heat losses from pipes for hot water distribution. Distribution heat loss costs occur in pipes when hot water flows through them. Insulate pipes and short runs to plumbing fixtures. Fix leaks in pipes. Install a heat trap at the water heater to stop convection of hot water into the hot and cold water pipes above the water heater.

The U.S. Department of Energy explains that a heat trap is a valve or loop of pipe that allows water to flow into a tank but prevents unwanted hot water to flow out of the tank. You can save $15 to $30 on your water heating bill with the installation of a pair of heat traps, typically costing about $30. Be sure to have a professional do the installation.

Super-Efficient Electric Water Heaters Coming!

EnergyStar reports there will be revolutionary new super-efficient heat pump water heaters eligible for federal tax credits out in late 2009. They may cut electric water heating costs by more than half. If you have the time to wait on a new water heater, check www.energystar.gov, then search for heat pumps.

‘Take Control’ and Get Water Heater Rebate

Check with your local electric cooperative to see if it offers a rebate on the purchase and installation of a new high-efficiency electric water heater rated at .9 EF (efficiency factor) or above.

Tips on Buying an Efficient Water Heater

Given that the cost of heating water is the third highest home energy cost, it pays to do your homework if you’re in the market for a new electric water heater. Even if you pay more up front for an efficient heater, you’ll pay less to operate it.

  1. Select a type: The most common heater is a storage electric-resistance heater that heats and stores 20-80 gallons of water in an insulated tank. The water is constantly maintained at the thermostat’s setting — ideally 120 degrees — so energy can be wasted even when a hot water tap isn’t running. This is called standby heat loss. Some storage water heaters have heavily insulated tanks, which can significantly reduce standby losses, according to the U.S. Department of Energy at www.energysavers.gov. Look for tanks with a thermal resistance (R-value) of R-12 to R-25.

    Integrated or combination water and space heating systems in new houses offer a couple of other water heating options. Tankless coil water heaters that use a heating coil or heat exchanger installed in a main furnace or boiler are most efficient during cold months when the heating system is used regularly. Indirect water heaters are more efficient for most homes even though they require a storage tank. This type of heater uses the main furnace or boiler to heat a fluid that’s circulated through a heat exchanger in the storage tank. The energy stored by the tank allows the furnace to turn off and on less often, which saves energy. An indirect water heater used with a high-efficiency boiler and well-insulated tank can be the least expensive means of heating water, says DOE.

    Finally, solar models, which preheat water before it reaches a conventional water heater, are costly on the front end but may qualify for federal tax credits.

    Heat pump water heaters also have a high front-end cost, but in moderate climates like Missouri’s, it can save up to 50 percent on your water heating bill, according to www.energyright.com.

    Federal tax credits are available at 30 percent of the cost, up to $1,500, in 2009 and 2010 for existing homes for solar water heating and new heat pump water heaters.
  2. Size it right: If you’re going with a tank model, select a tank size based on typical usage, not the rare weekend with 10 guests. Use the worksheet at www.energysavers.gov under “storage water heaters” for estimating your peak need. Then match that to the First Hour Rating (FHR) on the EnergyGuide label on a heater, which tells you how much hot water it will deliver in an hour.
  3. Look at efficiency rating: Select a heater with the highest energy factor (EF), which is based on various measurements. Electric-resistance heaters have EFs from .86 to .95.
  4. Select the right tank material: Writing for This Old House magazine, Celia Kuperszmid Lehrman recommends stainless steel tanks instead of porcelain enamel tanks containing magnesium or aluminum rods. Though more expensive, stainless steel is better in areas where the water is highly corrosive or reactive (full of minerals that encrust the tank walls). The U.S. Department of Energy recommends heavily insulated tanks with an R-value of R-12 to R-25.
  5. Don’t forget warranties, rebates and credits: Warranties vary greatly so select a unit whose warranty provides the best coverage for the money. Get recommendations from reputable plumbers or plumbing suppliers. Also check with your cooperative to see if the model you’re considering qualifies for a rebate. Don’t forget that federal tax credits apply to electric heat pump water heaters: www.energystar.gov/index.cfm?c=tax_credits.tx_index#c4.

Save $ With Your Existing Water Heater

You can save energy dollars without buying a new water heater. Here are a few suggestions from the U.S. Department of Energy (DOE):

Conserve water – Use less water. That simple change may save you more than other options. A family of four each showering five minutes a day can use about 700 gallons a week, which is a three-year drinking water supply for one person. Use water-conserving showerheads and faucet aerators to cut hot water use in half. A family of four can save 14,000 gallons of water a year and the energy needed to heat it.

Insulate your existing water heater and pipes – If your electric water heater was installed before 2004, adding an insulating jacket is one of the most effective do-it-yourself energy-saving projects, especially if your heater is in an unheated space. The jacket will reduce standby heat loss by 25 percent to 40 percent, saving 4 percent to 9 percent on your water heating bills. Follow directions carefully when installing an insulation jacket. Consult your manufacturer’s manual – a blanket may void your warranty.

Insulating hot water pipes reduces heat loss and can raise water temperature 2-4 degrees Fahrenheit hotter than uninsulated pipes can deliver. DOE recommends insulating all accessible hot water pipes, especially within 3 feet of the water heater. Also insulate cold water inlet pipes for the first 3 feet. Pipe sleeves made with polyethylene or neoprene foam are the most commonly used insulation.

It also helps to place your heater in a space that is heated and cooled.

Lower the water heater temperature – Keep your heater thermostat at about 120 degrees. Each 10-degree reduction in water temperature will generally save 3 percent to 5 percent on your water heating costs. When on vacation, turn the thermostat down to the lowest possible setting or turn the heater off completely.

Fix leaks – A leak of one drip per second can cost $1 a month. Repair leaks in faucets, showerheads and pipes, but if your tank leaks, you need a new heater.

Install low-flow fixtures, showerheads and faucets – For about $10 to $20 each, you can buy quality, low-flow fixtures and cut your water use by 25 percent to 60 percent. Federal regulations mandate new showerhead flow rates of 2.5 gallons per minute at a water pressure of 80 pounds per square inch.

If your showerheads predate 1992, use this quick test to determine if you should replace your old heads with new ones:

  1. Place a bucket marked in gallons under your showerhead.
  2. Turn on the shower at the normal water pressure you use.
  3. Time how many seconds it takes to fill the bucket to the 1-gallon mark.

If it takes less than 20 seconds to reach the mark, you could benefit from a low-flow showerhead. Replace the aerator (the screw-on tip of the faucet) with ones that restrict flow at about 1 gallon per minute.

Buy efficient dishwashers and clothes washers – You consume less energy with an energy-efficient dishwasher properly used than washing dishes by hand. Check the EnergyGuide label to see how much energy a unit uses. Be aware that compact-capacity dishwashers may actually use more energy because they must be used more frequently. Look for dishwashers with booster heaters that efficiently boost water temperatures to 140 degrees Fahrenheit. Such units cost more but will pay for themselves with energy savings in about a year. Buy Energy Star-rated dishwashers.

Inefficient clothes washers can cost three times as much to operate as energy-efficient ones. Look for washers that allow you to adjust water temperature and levels, spin dry and load from the front. Buy Energy Star-rated clothes washers.


It's time to winterize your home. Caulk and weather-strip leaky doors and windows. Consider adding foam gaskets behind outlet and light switch covers. These are available at hardware stores and come in designs that work with all types of outlets and switches.

Doug Rye says...
Improperly installed systems won’t keep you cool

Boy, it’s still hot outside. When I wrote this, the day of my wedding anniversary was fast approaching. Several years ago in early August I was on my way to a Baptist church in Jacksonville, Ark. I was driving a blue 1963 Volkswagen Beetle with a 40-horsepower motor and no air conditioner. I was going to marry one of the prettiest and sweetest girls in Jacksonville. I thought, “It can’t get any better than this.” But was it ever hot.

There was a large group of folks in the church. It appeared there were many who wanted to see the lady who would marry a nut like me. The reception was held in the Willie Wired-hand room at First Electric Co-op where my new father-in-law worked and later retired as a lineman. Did I mention that it was hot? The cooling systems at both locations struggled and simply could not keep up with the demand.

Well, that is now history and God has certainly blessed our marriage. Just after our wedding, I began to be involved with heating, cooling and energy efficiency and I am still doing that today. Each August, along with my anniversary, I can count on receiving many calls about cooling systems that can’t keep up.

Two months ago, in this column, I discussed some of the reasons why some systems have such problems. The response to that column was quite impressive .and by that I mean I received a lot of calls. Many had questions about whether or not they could enlarge the size of the return air system. A few had more technical questions. But the one that really got my attention was from a lady who had recently had a new system installed. It was not cooling her house, she said, and she was ready to whip someone. Our phone conversation went some-thing like this:

  • Me: Hello, this is Doug Rye.
  • Caller: Well, hi, this is Sarah. Am I speaking to Mr. Rye?
  • Me: You certainly are. How may I help you?
  • Caller: We live in an older house and a few months ago we had a local company install two new package units.
  • Me: Yes, m’am. And what is the size of your house?
  • Caller: It’s a two-story house with about 1,000 square feet upstairs and 1,600 square feel downstairs. They installed two 3.5-ton systems. Does that sound about right?
  • Me: Well, I haven’t seen your house so I do not know what it needs for heating and cooling. But 7 tons is probably plenty of capacity to say the least.
  • Caller: Well, I just finished reading your column, “Thou shalt provide adequate air.” If I understand correctly, you said each unit needs 7 square feet of return air.
  • Me: No m’am. Each unit needs about 3.5 square feet of re-turn air. However, the return air filter grille does need to be 7 square feet.
  • Caller: Oh my gosh, oh my gosh. No wonder my house isn’t cool. My upstairs return air filter is 11 by 16 inches.
  • Me: Oh my gosh, oh my gosh. How about the downstairs?
  • Caller: That filter is 20 by 24 inches. And I removed the grille from the wall and there was no duct work at all. All you see is a 2-by-4-inch wall with a hole about 3 by 14 inches chiseled out for the air to go through.
  • Me: Oh my lands, Sarah. You have 3.5 tons of cooling equipment, which means you need 504 square inches of return air but it only has 42 square inches available. You are probably getting only a ton of cooling from the 3.5-ton unit.

Folks, I have written this conversation exactly as I remember except for her name, which I changed. I’m not sure that I want to know what happened next but I’m worried about her house. As I have thought about her situation, I came up with this demonstration to help illustrate it. Raise your hand and touch your thumb to your first finger. That should form an O with a diameter of about 1.5 inches.

Now, blow one breath of air through the O. Now, make the O smaller and blow another breath into it. Do this several times until the O is about the size of a pea. You will notice that every time the hole gets smaller, it takes more energy and more time to move the air. The sound also gets noisier.

The cooling system with an undersized return air works the same way. The system has to work harder, longer and is noisier, none of which is beneficial to the equipment or the person who is paying the energy bill. In fact, if her system has a variable speed fan, it might be pure havoc. The solution is to get a reputable and knowledgeable heating and air conditioning company to check your system for duct work leaks, proper sizing of the return air, etc. Also, many local electric cooperatives will do energy audits of your home as well.

See you next month when the hot weather should be gone.

Doug Rye can be heard on KGOZ and KAAN locally. Every Saturday morning, Doug Rye hosts a live call-in show on several area radio stations. He can be heard from 9-10 a.m. on KGOZ, 101.7, Gallatin, and on KAAN, 95.5, Bethany.


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