TRAVERSE ELECTRIC COOPERATIVE, INC.
BOARD POLICY NO. 303
ENERGY RESOURCES CONSERVATION LOAN PROGRAM
To set forth the terms and conditions under which Traverse Electric will make loan funds of RUS ‑ Section12 Extension for Energy Resources Conservation (ERC) Loans available to member‑consumers of the Cooperative for improvements to structures receiving electric service.
1. ERC loans will be made to finance the cost of labor and materials for (a) caulking (b) weatherstripping (c) ceiling insulation (d) wall insulation (e)floor insulation (f) duct insulation (g) pipe insulation (h) water heater insulation (i) storm windows (j) thermal windows (k) storm or thermal doors (l) smart thermostats (m) attic ventilation fans (n) electric water heaters with a lifetime warranty, which reduce demand on the system peak (o) electric central heating or central air conditioning system replacements and modifications, which reduce oil or gas consumption (p) electric system coordinated customer‑owned devices that reduce the maximum kilowatt demand on the electric system.
a. If the consumer installs the materials, the ERC loan will be limited to financing of materials.
2. ERC loans will be made only to owners of structures receiving electric service from the Cooperative's system.
a. "Structures" include residential, commercial, industrial, public and community buildings and facilities, and structures used in agricultural operations, such as those needed for the production of livestock, poultry, or dairy products.
3. ERC loans will not be provided to refinance existing obligations or to finance the cost of energy conservation measures in structures to be built or under construction.
4. ERC loans will not be available to finance energy improvements installed on any structure prior to the original adoption of this ERC Loan Policy.
1. A consumer who expresses an interest in the Cooperative's ERC Loan Program in solving his/her energy problem shall be required to contact the Cooperative and complete necessary forms.
B. ERC Loan Terms
1. ERC Loans ‑ to eligible member‑consumers for financing the cost of energy conservation measures shall be limited to a maximum of five thousand dollars ($5,000) per consumer unless otherwise approved by the Board of Directors.
2. The interest rate on ERC loans shall be six percent (6%) per annum.
3. ERC loans will be amortized for not more than sixty (60) months, without penalties for prepayment of the loan.
4. The Cooperative will not advance funds to the consumer without assurance that work has been properly performed.
5. All payments to consumer for approved work shall be made by check payable to consumer.
6. The consumer will make payments to the Cooperative for the ERC loan on and with the bill for the consumers' monthly energy bill.
7. A late payment charge of eighteen percent (18%) APR of the payment not to exceed $3.00 will be assessed to any member‑consumer who fails to pay a loan installment by the due date.
C. Credit Requirement
1. Prior to ERC loan approval the Cooperative will determine credit worthiness of the consumer using a soft credit check. If the credit check is positive the consumer may borrow 75% of the total up to the maximum loan amount allowed. If the credit check is negative, the consumer may borrow 50% of the project cost up the maximum loan amount allowed.
2. Consumer must have a good payment history with Traverse Electric for the previous 12 months.
1. Member‑consumer will be required to execute a promissory note to formalize the financial obligation with the Cooperative.
2. A material falsification of information on the credit application by the member‑consumer will constitute grounds for loan denial or cause a previously funded loan to be in default condition and render all principal and interest then owing to become due and payable in full.
E. Loan Approval
1. The General Manager will be responsible for approving loan requests per the provisions of this policy.
2. The Cooperative will approve an ERC loan only if it is satisfied that the proposed energy conservation measures meet reasonable installation in existing structures and will be cost effective and reduce consumption of energy resources.
F. Loan Information
1. The Cooperative will inform its members of the availability of ERC loans and provide or arrange for technical assistance including on‑premise energy audits to inform the consumer of
the type and estimated cost of energy conservation measures.
2. The Cooperative may furnish the consumer with a list of contractors. The work may be done by one of these contractors or by the consumer. In either case, the consumer will sign a statement of planned improvements.
1. The General Manager and department heads are responsible for the administration of this policy.
2. The Board of Directors is responsible for any changes in or revision of this policy and for review of loans approved.
3. The Board of Directors is responsible for reviewing this policy at least annually.
Date Adopted: 12‑2‑1986
Date Reviewed: 06-28-2022
Date Revised: 01-30-2024
Matthew Glynn, Secretary