PCCA Journal 1st Quarter 2015

The O"cial Publication of the Power & Communication Contractors Association 1st Quarter 2015 Inside r /JNCMF CZ /BUVSF 5IF 6UJMJUZ 0VUMPPL r '.* 8BSOT $SBGU -BCPS 4IPSUBHF .BZ 4MPX $POTUSVDUJPO r '&3$ 1MBOT $POGFSFODFT 'PDVTFE PO &1" T $MFBO 1PXFS 1MBO r '$$ 'JOET 6 4 #SPBECBOE %FQMPZNFOU /PU ,FFQJOH 1BDF 6QEBUFT #SPBECBOE 4QFFE #FODINBSL 1$$" 1SFTJEFOU 4UFWF 4FMMFOSJFL

JohnDeere.com/dozers YOUR DIRECTIONS. FOLLOWED. Building your construction business together. Your business keeps the world moving forward. And to meet deadlines, the right equipment is a plus. So when guys like you gave us direction on our K-Series Dozers, we were all ears. You wanted more visibility to the blade. We saw to it. Reduced sound and vibration? We heard you loud and clear. And when you demanded more uptime and productivity, we delivered Ultimate Uptime featuring John Deere WorkSight™ and integrated grade control options, including a Topcon 3D-MC2 V\VWHP LQVWDOOHG DW WKH IDFWRU\ 7R ƟQG RXW PRUH about K-Series Dozers, contact your dealer or visit our website.

Are you part of a tough, reliable team that knows what it takes to get work done — no matter the job, the challenges or the conditions? Tell us what makes you the best, and your crew could win the use of a heavy-duty, hard-working Vermeer D24x40 Series II Navigator® horizontal directional drill for 12 months. Enter at NavigatorNation.com TELL US WHY YOU SHOULD BE NAMED NAVIGATOR NATION’S ULTIMATE CREW FOR YOUR CHANCE TO WIN AT ICUEE 2015. Vermeer, the Vermeer logo, Equipped to Do More and Navigator are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries. © 2015 Vermeer Corporation. All Rights Reserved. NO PURCHASE OR PAYMENT OF ANY KIND IS NECESSARY TO ENTER OR WIN. Contest subject in all respects to the complete Official Rules available online at NavigatorNation.com. Contest is open to legal residents of any of the United States and the District of Columbia and Puerto Rico, and Canada (except Quebec) who are at least 21 years of age at the time of entry. Contest entry period begins at 12:00 a.m. Central Time (CT) on 1/5/15 and ends at 11:59 p.m. on 4/30/15. Void in Quebec and where prohibited. Sponsor: Vermeer Manufacturing Company, 1210 East Vermeer Road, Pella, IA 50219.

Where Vision Meets Value. FMI Capital Advisors, a subsidiary of FMI Corporation, is the leading investment banking "rm exclusively serving the Engineering and Construction industry. With over 650 completed transactions, our industry focus enables us to provide our clients with valuable insight and advice. Clients gain access to our unparalleled network of industry contacts and relationships, deep market knowledge and technical expertise, based on decades of experience. W. Chris Daum | 919.785.9264 | CDaum@fminet.com WWW.FMINET.COM *Represented by FMI Capital Advisors

1st Quarter 2015 Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors Publication Staff 1908 Mt. Vernon Avenue, 2nd Floor Alexandria, Virginia 22301 (800) 542-PCCA • www.pccaweb.org ©2015 Power & Communication Contractors Association Garrett Akin Brooks Construction Craig Amerine Amerine Utilities Construction, Inc. Glen Amerine Amerine Utilities Construction, Inc. John Audi MasTec North America, Inc. Robert Breeden ElectriCom, Inc. Ed Campbell Henkels & McCoy, Inc. Marty Ferguson FS3, Inc. John Fluharty Mears Group, Inc. Matthew Gabrielse Gabe’s Construction Co., Inc. John Hale John Deere Jerrod Henschel Michels Corporation Chase Lapcinski Push, Inc. Dan Levac Preformed Line Products Tommy Muse Aubrey Silvey Enterprises, Inc. Rob Pribyl MP Nexlevel, LLC Jameson Ringger NESCO, LLC Heath Sellenriek Sellenriek Construction Don Stephens Tjader & Highstrom Lindsley Thulin Michels Corporation Publisher Timothy Wagner Editor Michael Ancell Advertising Sales Stacy Bowdring Advertising Sales Dana Gilbertson Photography Steven Purcell Information Technology Greg Smela Accounting James Wagner President Steve Sellenriek Sellenriek Construction President-Elect Timothy D. Killoren TelCom Construction 1st Vice President Todd Myers Kenneth G. Myers Construction 2nd Vice President James Dillahunty Henkels & McCoy, Inc. Treasurer Larry Pribyl MP Nexlevel, LLC Secretary David Aubrey Okay Construction Nimble by Nature: The 2015 Utility Outlook 11 By Mark Bridgers, Nate Scott, and David Shipley In an environment that will exhibit disruption and change, being nimble is a necessity. Those leaders who adapt to change and are nimble in the coming decade will thrive. Continuum Advisory Group’s 2015 utility outlook provides a comprehensive look into the utility markets, including electric transmission & distribution, gas/liquid transmission & distribution, and communication. PCCA President Steve Sellenriek: Good Times, Hard Work, Civic Pride 19 People who work with PCCA President Steve Sellenriek on a job or on association business know that he’s a sharp guy who’s full of great ideas, but he’s also a good listener and open-minded to other people’s ideas. He’s a hard worker, a straight shooter, and a consensus builder. And once you get to know him a little better, you learn that he cares deeply about his family, his community, and the industry in which he has spent most of his life. News Briefs 9 Power News 25 Telecom News 31 Safety News 36 Safety Watch | By Phillip Metcalf 37 New PCCA Members 46 Industry Calendar 46 Advertiser Index 46

You wanted to drill and steer simultaneously, so we invented the two-pipe, patented All Terrain drilling system more than a decade ago. You wanted reliability, so we gave you years of proven performance with the JT4020 All Terrain. Now you want more. Introducing the new JT60 All Terrain: reliable electronics, a durable frame with proven components and 9,000 ft·lb of rotational torque. Reliable power. Just like you wanted. WE’RE IN THIS TOGETHER. ROCK-CRUSHING POWER. ROCK-SOLID RELIABILITY. ALSO CHECK OUT THE NEW JT60. SEE YOUR LOCAL DEALER FOR DETAILS. ©2014 The Charles Machine Works, Inc.

PCCA Journal|1st Quarter 2015 9 News Briefs On February 4, the nationwide Coalition for a Democratic Workplace filed a motion for summary judgment in its challenge to the National Labor Relation Board’s new streamlined elections rule. The rule would shorten time frames for union representation elections from the median of 38 days to as few as 14 days, depriving employers their free speech rights and employees the opportunity to hear from both sides prior to voting and to make a fully informed choice. The motion was filed jointly with the Chamber of Commerce of the United States of America, the National Association of Manufacturers, the National Retail Federation, and the Society for Human Resource Management. The Associated Builders and Contractors and the National Federation of Independent Business are also challenging the rule. CDW legal strategist Joshua Ulman said, “The NLRB’s ‘ambush’ election rule is a flagrant attack on American workers. The Final Rule violates both the spirit and the letter of the National Labor Relations Act and other legal requirements, at the expense of rights that are critical to workplace democracy, such as protected speech and employee free choice.” Ulman concluded, “The protection of fundamental workplace rights is a critical issue which CDW will continue to fight for on the behalf of employees and employers.” FMI Warns Craft Labor Shortage May Slow Construction Surveying members of the Construction Personnel Executives Group, FMI recently reported, “24 percent of respondents will be unable to bid more work and 32 percent will experience slow growth if their companies cannot reasonably meet the need for skilled labor and tradespeople.” Top executives at the largest contract firms in the U.S. took part in the survey. “Overall, there’s an increase needed in skilled trade workers of more than 10 percent throughout the next three to ten years,” said Ken Wilson, director for FMI. One large construction company commented, “Our current hiring forecast shows a need for 8,500 additional craft workers by 2017.” The top five positions that are expected to be the most difficult to fill are: 1. Operator (heavy equipment) 2. Welder (boilermaker) 3. Carpenter 4. Pipefitter 5. Ironworker (reinforcing) FMI noted two significant contributing factors to the high demand for craft labor: 1. The shift of the construction workforce to oil and gas related construction. FMI estimates that by 2017 nearly 10 percent of the total U.S. construction workforce will be part of this burgeoning segment of the industry. 2. The number of survey respondents that plan to increase the amount of work the company self-performs. Currently, surveyed firms selfperform less than 40 percent of construction projects. However, 65 percent either have plans to or are considering plans to increase selfperformed projects. This in-depth look into recruiting and retention of craft labor includes an analysis of the driving factors behind the skilled labor shortage, the most effective recruitment tactics, and how companies are filling the demand for field management of the craft labor force. The report also provides practical counsel on how to develop human resource strategies to improve recruiting and retention rates. Business Groups Fight NLRB Ambush Election Rule

Eastern / Central USA 921 S. Burleson Blvd., Burleson, TX 76028 800-666-6567 Fax : (817) 447-8917 Western USA 19020B S.W. Cipole Rd., Tualatin, OR 97062 800-444-7064 Fax : (503) 692-0474 E-mail: sales@wagnersmithequipment.com Burleson, TX Dayton, OH Tualatin, OR Lawrenceville, IL Sanford, FL Phoenix, AZ Ontario, CA 7 2)) )'+# ,$ &# 36 "216 01/'+%'+% #.2'-*#+1 7 )) #.2'-*#+1 !,*#0 4'1& ,-#/ 1,/ 1/ '+'+% 3'"#,0 7 # 36 "216 !,+01/2!1',+ 4'1& &'%&#/ / 1'+%0 +" *,/# 0 $#16 $# 12/#0 7 !(#" 6 6# /0 ,$ '+"201/6 #5-#/'#+!# Now Buy Or Rent Powerline Construction Equipment ONLINE! wagnersmithequipment.com wagnersmithequipment.com PLUS a Full Line of Stringing Blocks, Tools and Equipment. For pricing and specs, please visit our website at:

PCCA Journal|1st Quarter 2015 11 In an environment that will exhibit disruption and change, being nimble is a necessity. The concept of being flexible rather than ridged in the face of change is one that for many industry participants is counter intuitive. Bruce Lee might have said it best when he suggested the following: “Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup. You put water into a bottle, and it becomes the bottle. You put it in a teapot, it becomes the teapot. Now, water can flow, or it can crash. Be water, my friend.” Those leaders who adapt to change, and are nimble in the coming decade will thrive, while those that remain ridged will be ground down the way water cuts a canyon. Nimbleness is a necessity for firms in the overhead and underground utility sector. Continuum Advisory Group’s 2015 utility outlook provides a comprehensive look into the utility markets, including these segments: s฀ Electric Transmission & Distribution s฀ Gas/Liquid Transmission & Distribution s฀ Communication Exhibit 1 demonstrates that after a period retraction in 2009-2011, the overhead and underground utility markets have returned to more stable growth. This growth is unbalanced however as it is primarily in the Gas and Electric Transmission & Distribution sector and more specifically pipeline construction, with some growth in the Communications sector. Continuum predicted a short and shallow economic slowdown during the first half of 2015. This is no longer possible, and the earliest that our next down cycle can begin is in 2016. Our current forecast anticipates this slowdown in late 2016 and early 2017, and it will be responsible for the slower spending growth in this period. Overall, the long-term prospects for overhead and underground utility construction are very good, and in the following pages, we describe the drivers of growth for each sector. Transmission & Distribution— Electric and Gas Spending Forecast The most viable and growing utility markets are electric and gas transmission & distribution. The long-term prospects are robust. In the 10 years following 2003, spending increased from $14 to $63 billion, and Continuum forecasts continued spending growth (Exhibit 2). Traditionally, construction Nimble by Nature: The 2015 Utility Outlook By Mark Bridgers, Nate Scott, and David Shipley Exhibit 1 Continued on page 12

PCCA Journal|1st Quarter 2015 12 markets produce 5- to 7-year cycles that coincide with the economy. This market has resisted these cycles because growth is not solely derived from economic factors but a combination of economic and “derived demand” incentive. Derived demand is produced through government regulation, safety, environmental, or other actions. The drivers of electric and gas growth include improving housing starts, tax credits, continued pipeline replacement, pipeline safety regulation, environmental regulation and concerns, distributed generation1, electric transmission expansion, and the beginning of an industrial and power generation renaissance. Electric Transmission & Distribution The most disruptive, long-term driver in the electric T&D market is distributed generation. Why does distributed generation impact the electric T&D segment? Simply put, it will reshape how the entire electric industry operates. In Exhibit 3, we offer a forecast of the development of the power generation market. This market completed a current wave of activity marked by replacement transmission construction driven by aging infrastructure and bringing remote wind power into the grid. Distribution spending follows the economic cycle and housing starts, peaking in 2007 and slow since then. By the 2030s, we anticipate a market that is deemphasizing traditional utility-centric power generation and expanding the “smart” distribution and transmission grid infrastructure to serve as a form of “insurance” capacity for sites that produce too much or too little distributed generation power. We see a market similar to the buying of insurance, intended to cut the downside of loss, where sites are protected from producing too little or too much power by purchasing capacity and access to the grid. This transformation will demand a nationwide upgrade of the distribution and transmission grid. Can distributed generation truly drive this type of change? 6UJMJUZ 0VUMPPL Continued from page 11 Exhibit 2 Exhibit 3

PCCA Journal|1st Quarter 2015 13 A future vision of what this widespread replacement of distribution infrastructure might look like can be found in Indiana and Virginia. Indiana’s Senate Enrolled Act 560 will drive billions in spending on new transmission and distribution lines, new substations, upgrades to existing lines and substations, and replacement of aging poles, transformers, line equipment and other infrastructure. The wording of a portion of the legislation reads, “...the utility may then adjust rates every 6 months, subject to Indiana Utility Regulatory Commission and Indiana Office of Utility Consumer Counselor review, to recover 80 percent of the project costs as they are incurred. The remaining 20 percent must be deferred until the utility’s next base rate case, which must be filed before the end of the seven-year period. The rate increases—under a new Transmission, Distribution, and Storage System Improvement Charge mechanism—may not exceed two percent of the utility’s total annual retail revenues.”2 In the case of Virginia, state legislation requiring the undergrounding of at-risk electric distribution and transmission infrastructure could result in $10 billion in spending over the long-term. In Exhibit 4, an Energy Information Administration study describes the range of possible outcomes for distributed solar generation on buildings alone as significant with anywhere from 17 to 75 gigawatts of generation potential.3 Another view from ICF International in Exhibit 5 forecasts significant distributed energy resources by 2020 driving down the need for traditional generation capacity.4 As a frame of reference, U.S. electricity consumption in 2012 was 4,069 terawatt hours5, and the typical U.S. home consumes 10,837 kilowatt hours of electricity annually.6 The addition of other forms of distributed generation and energy efficiency will further drive disruption. The communication industry may predict the path of the electric market. Beginning with the breakup of the Bell system in 1982, the industry experienced 30 years of rapid change involving technology, ownership structure, and customer demands. Organizations that were not nimble simply do not exist anymore. This fact should serve as a warning to electric utilities that are just beginning a period of fundamental change and disruption. Gas and Liquid Transmission & Distribution Pipeline spending remains on a tear. The primary driver is replacement activity in the first half of our forecast period and subsequently by an industrial and power generation renaissance that will result in the strengthening of systems across the country, particularly in regions where shale oil and gas are located. We have received many questions about the falling price of oil; it will have an impact, just not the one envisioned. (See “Falling Oil Price Impact on Utility Construction” on page 14.) This activity will also include new transmission and high pressure distribution spurs. The longterm prospects and spending rational are detailed in Exhibit 6. Continued on page 14 Exhibit 4 Exhibit 5

PCCA Journal|1st Quarter 2015 14 6UJMJUZ 0VUMPPL Continued from page 13 The freefalling oil price caught many observers off guard. Historically, crude oil and natural gas prices have tended to stay in alignment as the imbedded energy content is the defining characteristic. Since 2010, when the pricing of these commodities separated, many observers have anticipated upward volatility in the price of gas to realign it with the price of oil. Few analysts anticipated oil falling to realign with low-cost natural gas. Falling oil prices impact the competitiveness of U.S. shale oil plays. Example basin breakeven extraction costs demonstrate low competitiveness in the $40-$60 range. While the reasons for the freefall in crude oil are highly complex and frankly not currently well explained, there is no doubt that it is creating both positive and negative implications. Drivers for the falling oil price include the following: s฀ Low Global Demand: The economic slowdown in Asia and Europe has reduced demand. s฀ High Supply: Five years of $90+ oil led to massive investment in exploration and production. s฀ OPEC Weakness: OPEC’s share of world supply is declining, members have grown fat domestic budgets fueled by high-priced oil, and these countries want to protect their market share.Geo-Political Action: Saudi Arabian opportunity to economically punish Russia, Iran, and Syria without directly harming the U.S. and inflicting moderate and manageable damage to their domestic budget. s฀ Speculation: It is not clear what role speculators play in the current crude oil price swing, yet there is general agreement that speculative activity continues and is moving prices. Impacts to shale oil and gas markets along with underground and pipeline contractors include the following: Falling Oil Price Impact on Utility Construction Market Most Likely Outcome Severe Outcome 18 or Less Month Price Down Cycle 3+ Year Price Down Cycle Shale Oil Price #oor $45; recovery to $80-$90 in 2016 Exploration slows; Production #attens Exploration spending falls modestly Liquid pipeline construction #attens and is focused on reducing rail tra%c Overall economic impact positive; +1% to GDP Price falls below $40 and remains below $60 Exploration stops; Production #attens then falls Exploration spending collapses Liquid pipeline construction spending collapses Overall economic impact uncertain to negative E&P defaults damage capital markets Shale Gas Shale gas price remains stable/low Rigs move back to wet gas basins Capital spending is constrained Same as above Industrial and transportation use #attens Collapse pushes natural gas price down Contractors Activity remains replacement and system capacity related Flat transmission market for 2015 & 2016 Limited delay of new large pipeline projects Reduced wage pressure Distribution market remains strong with lower growth rate Liquid market reduced to integrity work only Gathering contractors enter and disrupt distribution market Rate payer impact hurts distribution spend Postponed distribution spend stresses existing system T&D capacity Loss of workforce limiting growth post-2018 Constrained capital for high risk energy market Continued on page 16

41028072 ‘ ADDING HUNDREDS OF NESCO IS PLEASED TO ANNOUNCE WE ARE ADDING HUNDREDS OF NEW UNITS TO OUR EXISTING FLEET! In addition to the acquisition of Foley Utility Equipment’s rental fleet--which added 1-2 year old transmission and distribution units--NESCO has purchased hundreds of new Terex bucket trucks and digger derricks; Manitex cranes; and Hogg & Davis and Sherman + Reilly stringing equipment. The new additions to our fleet mean NESCO truly has everything you need to get the job done! CONTACT US NOW AND GET WORKING! 800-252-0043 | www.NESCORENTALS.com

PCCA Journal|1st Quarter 2015 16 6UJMJUZ 0VUMPPL Continued from page 14 Communication Spending Forecast The dominant trend in communication spending, as always, is volatility...the trough in 2003, the peak in 2007, the trough in 2012. We enjoyed a mini spike in spending in 2013, and we are now forecasting growth in spending that is accelerating in 2015 and 2016. The growth in these years is driven by a single factor: competition between Google, AT&T, Verizon, and CenturyLink among others to bring fiber and high-speed service to major cities in the United States. This competition is the sole driver of growth in 2015 and 2016, while the underlying growth rate in spending is below 3 percent. We also anticipate this competition to conclude by 2017, reducing the spending growth rate. Beyond 2018, we anticipate faster spending growth associated with the still undefined 5G technology as well as faster U.S. economy and housing growth that will approach a cyclical peak around 2020 (Exhibit 7). Communication Trends The build-out of the 4G infrastructure is nearly complete nationwide and the underlying short-term future for spending growth is related to incremental improvements in capacity. The rejection of the Sprint/TMobile merger signals an end to industry consolidation. This lull in typical activity will not last if Google is effective at sparking competition for faster internet connections. Google is currently rolling out Google Fiber in Kansas City, Austin, and Provo. As of January, a second wave of cities were selected, including Atlanta, Charlotte, Nashville, and RaleighDurham. The company has further indicated plans to expand into additional cities. Jason Armstrong, an analyst with Goldman Sachs, estimated that the company could spend approximately $1.25 billion annually to connect 7.5 million homes through 2022.7 Google Fiber is not really an effort to become a major player in the Internet Service Provider market, but more of an effort to create competition among traditional broadband providers including AT&T, Verizon, and CenturyLink to offer faster service.8 The growth we are forecasting in 2015 and 2016 is solely related to Google spending on its fiber program in conjunction with some spending by traditional ISPs in response to the competition. Beyond 2016, the underlying growth is driven by data management. The Telecommunications Industry Association stated: “Big data is driving the accelerating investment in the U.S. market. Growing consumer demand for data led to a doubledigit increase in spending on wireless telecommunications Exhibit 6 Exhibit 7

PCCA Journal|1st Quarter 2015 17 equipment last year, as carriers rolled out long-term evolution networks. Meanwhile, specialized services that rely on, and protect, data—including cloud services, machine-to-machine communications, and cybersecurity—all saw large spending gains in 2013. In fact, spending on cybersecurity grew faster in 2013 than in any recent year and has shown significant increases in each of the last three years.”9 By 2020, we expect the development of a 5G technology that will again create a construction spending spike focused around helping customers achieve faster speed and greater capacity. Currently, there is no clarity on what this new 5G standard will look like, with many arguing that looking at previous generational transitions for guidance is mistaken. For one, Michael Peeters, CTO of Alcatel-Lucent, recently argued that “the current talk about 5G development was ridiculous because it was focused on the old issues of technologies to increase capacity and bandwidth, whereas the real revolution would come from an architecture which was open, federated and invisible. Yet with many physical network technologies approaching their limits, the real challenge is to enable a host of different platforms to work together as a seamless whole, largely software-controlled and flexible enough to support any usage pattern from low bandwidth smart meters to future generations of super-HD video.”10 This concept of an ever-growing number of devices—be they consumer, industrial, commercial, government owned, or mobile—operating on a network of networks means the industry is about to get a lot more complicated. Imagine if you will, a Google-branded, driverless vehicle, fueled by batteries or compressed natural gas, traveling in selected cities, utilizing high-speed wireless or fiber optic communication to safely and efficiently navigate to your destination. In this environment, only the nimble will wind their way through these changes and transitions. Overall Conclusions The long-term prospects for the overhead and underground utility market are very good. They are, however, unbalanced in sector, geography, and timing. Firms that are ridged, shortsighted, backward looking, and traditional will be cut the way rock is cut by running water. Success in these markets requires that organizations learn to adapt. As water flowing over, under, around, or even through an obstacle, the firms that will thrive in these markets must be nimble by nature. Mark Bridgers, Nate Scott, and David Shipley are consultants with Continuum Advisory Group, which provides management consulting, training, and investment banking services to the worldwide utility and infrastructure construction industry. They can be reached at (919) 345-0403 or mbridgers@continuumag. com and followed on twitter at @MarkBridgers. For more information on Continuum, visit www.continuumag.com. Notes 1. Power produced at the point of consumption. Examples include solar panels installed on the roof of a home or business; diesel (red power generated at a remote or rural setting; wind power generated at a commercial or industrial site; natural gas (red power generated at a commercial or industrial site. 2. Indiana General Assembly, Senate Bill 0560. 3. “Modeling distributed generation in the buildings sectors,” U.S Energy Information Administration. August 2013, pg. 7. 4. Succar, Samir. “Distributed Generation’s Future Impact on the U.S. Capacity Markets .” ICF International. 2014, pg. 1. 5. International Energy Agency (IEA) Key Energy Statistics, 2014, pg. 56. 6. 1 Megawatt (mW) = 1,000 Kilowatts (kW); 1 Gigawatt (gW) = 1,000 Megawatts (mW); 1 Terawatt (tW) = 1,000 Gigawatts (gW). 7. Akerman, Elise, “Google Fiber Could Reach 8 Million Homes By 2022,” Forbes, June 14, 2013. 8. Gustin, Sam. “Google Fiber Issues Public Challenge: Get Up To Speed.”Time.com. September 14, 2012. 9. “2014 ICT Market Review & Forecast,”Telecommunications Industry Association. June 2014. 10. “Alcatel-Lucent techie: Race for ‘5G’ technologies is ‘ridiculous,’” theregister.co.uk. September 25, 2014.

Built on family ~ Raised on service ! " " From aerials and bucket trucks to cranes, dozers and tracked digger derricks. Just make the call!

PCCA Journal|1st Quarter 2015 19 PCCA President Steve Sellenriek: Good Times, Hard Work, Civic Pride Continued on page 20 If you meet PCCA President Steve Sellenriek, even briefly, you quickly learn a few things: he likes to have a good time, he’s a real people person, and the Cubs suck (well actually, the Cubs SUCK!). Then if you spend some time with Steve, on a job or on some association business, you learn a little bit more. He’s a very sharp guy who’s full of great ideas, but he’s also a good listener and open-minded to other people’s ideas. He’s a hard worker, a straight shooter, and a consensus builder. And finally, if you really get to know Steve, you learn that he cares deeply about his family, his community, and the industry in which he has spent most of his life. From the Beginning: Sellenriek Construction Steve was one-year old in 1979 when his parents, Bob and Dixie, founded Sellenriek Construction in their hometown of Jonesburg, Mo. Dixie was also pregnant with Steve’s brother, Heath, at the time. Bob and Dixie started the telephone construction company with a vision, a used backhoe, a truck, a trencher, and two men. Today, Sellenriek Construction, Inc. operates from five locations and employs more than 100 people. “We didn’t have any health insurance either,” Bob remembered. “We had just one little job lined up.” Those tough early days provided some life lessons. “We’ve seen the other side of life,” Bob said. “We’ve tried to instill in our family that we have friends from all walks of life, not just high-rollers. We’ll never be that way.” During the first decade in operation, there were many changes within the company. In 1981, the company placed its first fiber optic cable. In 1986, Sellenriek Construction was incorporated under the laws of the State of Missouri.

PCCA Journal|1st Quarter 2015 20 4UFWF 4FMMFOSJFL Continued from page 19 The company expanded its work areas beyond east-central Missouri, and employment grew to roughly 25 employees. In addition to the company growth, Bob and Dixie now had three children, Steve, Heath, and Joy. The services Sellenriek Construction could provide grew in 1991 when it purchased its first horizontal directional boring machine. In 1998, the corporation purchased Cable Plow, Inc., in Lewistown, Mo., allowing them to better serve its growing list of clients. In 1998, Steve began working fulltime for the company, followed by Heath a year later. In 2002, Sellenriek Construction opened its third office, located in Columbia, Mo. The company’s services expanded yet again to include electrical distribution and directional boring of large-diameter pipe. In 2003, Joy’s future husband, Joe Oden, started working for the company and was followed by Joy in 2004. During 2009, Sellenriek Construction’s 30th year in business, major changes took place. The company opened a construction yard in Warrensburg and a fifth location in Jefferson City, Mo. Sellenriek Construction currently has more than 100 dedicated employees throughout the state of Missouri. Over the last couple of years, Sellenriek Construction has started working for electric coops, installing fiber-to-thehome systems and being introduced to a different type of client. “The coops are very enjoyable to work for,” Steve said. “There’s a more intimate feel with the coops. The people involved have part ownership in it; they care about it. For many of them, it’s their first telecom job, and they don’t have preconceived notions. They’re open to new ideas.” Sellenriek Construction remains a family owned and operated company. Bob is president of the corporation and is still very active in the company. Besides being officers, Steve, Heath, and Joy are actively involved in the company’s day-today operations. From its humble beginning through today, Sellenriek Construction has done business with a simple motto: Do what is right for the customer. Proof of this is the fact that the company has many of the same clients for more than 35 years, and the Sellenrieks plan to work for these same clients and more for the next 35. Joining the Business Being a family-owned business, Steve got a taste of the construction industry fairly early. He started helping on the job in 1991 at age 12. “Growing up, we worked all summer, and in the winter we worked in the shop,” Steve said. “Dad taught us every part of the business as kids--operating the equipment, estimating, insurance, dealing with people, whatever there was to be done.” After high school, Steve went to Linn State Technical College, where he got a degree as a truck and heavy equipment technician. Right out of Linn, he worked at Mid Missouri Concrete for about 18 months, “turning wrenches, driving a truck, and batching concrete.” Steve said that time was very important because he learned a lot of different skills and had to answer to bosses that weren’t part of the family. “It was one of the better things I did,” he said. “It was good to see how another operation worked and see how other people handled different situations.” In 1998, Steve went back to work at Sellenriek Construction as an operator. Sellenriek Construction Founder Bob Sellenriek

PCCA Journal|1st Quarter 2015 21 Continued on page 22 He brought new skills and experience to the job as well as the Sellenriek penchant for hard work, but there were some growing pains in the new job. “Being the boss’s son means that you constantly have to prove yourself, whether it’s with employees or clients,” Steve said. “People think we’ve had it handed to us.” Steve’s solution to the situation came directly from his upbringing. “Dad’s theory is that you have to outwork everyone on the jobsite,” he said. “I wanted to outwork everyone. If one crew put in 2,500 feet in a day, my crew had to get 2,800. I’m a competitive person.” “Nobody is going to outwork us,” he said. “We’ll never ask any of our people to do what we wouldn’t do, and haven’t done, ourselves. Sometimes it surprises the new guys.” When asked about Steve handling that situation with hard work, Bob said, “Oh yeah, that’s what we do. We like to play, but we work even harder. It was a learning experience for everyone, a growing thing. But he and Heath are outgrowing that. They’ve proven themselves.” The Importance of Family and Community Hard work was just one of the values that Bob and Dixie instilled in their children, and Steve credits them for balance in his life. “Mom and Dad taught us early on to trust your moral compass, which means do the right things, help others when you can, be involved with the community, and everything else should work out,” he said. “And it is awesome to be able to work with Heath, Joy, and Joe on a daily basis.” When asked about what he likes best in the industry, Steve’s first answer is, “the people, from the clients to the employees I work with.” And that, too, is part of his DNA. “It’s an old family tradition,” Bob said. “Without people, you’ve got nothing.” Steve also mentions two other people when asked about influences in his career: his brother, Heath, and his late uncle Timmy Garrett. Whether it’s on the job, at PCCA, or even at a Cardinals game, “Heath is great at keeping me out of trouble,” Steve said. “I can always bounce an idea off of him and get honest feedback, whether it’s what I want to hear or not.” “Timmy has been gone seven years, and when I have a problem I still ask myself how would Timmy approach it,” Steve said. “I also still use his line from time to time: ‘If it was easy the Girl Scouts would do it, and we would be selling cookies.’” Community service is another Sellenriek family tradition and one that they all take very seriously. Steve sits on the board of the Jonesburg-High Hill Fire Protection District, Heath is on the Board of Education for the Montgomery County R-II School District, and Bob has been the mayor of Jonesburg for 22 years, was an alderman before that, and is a charter member of the Optimists Club of Joneburg. All three belong to the Jonesburg Lions Club to serve their community. And they don’t just write checks or make a few appearances; they actively serve. The whole family helps with the Annual Jonesburg “Worlds” Fair & Homecoming, the Christmas Parade (last year they gave away more than 180 bicycles to local kids), and other events that raise funds for area schools, scholarships, families in need, assistance for retirees, and many other vital community needs. The club spent some $100,000 over the last several years to improve Lions Park, a fantastic playground for the children of Jonesburg. The Lions Club raises approximately $100,000 a year for charity, which as Steve said, “isn’t bad for a town of 750 people.” And though Steve logs lots of hours on the job and in the community, he also carves out some important time for fun. He coaches little league, enjoys spending time at the Lake of the Ozarks, and loves the St. Louis Cardinals (and therefore hates the Chicago Cubs, in case you missed that at the start The Jonseburg Christmas Parade With Ron Tag and John Fluharty supervising, Bob, Heath, and Steve provide the muscle.

PCCA Journal|1st Quarter 2015 22 of the article). This past summer, the Sellenriek family welcomed the entire PCCA to the Lake of the Ozarks, a place Steve calls his “favorite place on earth,” for the 2014 Mid-Year Meeting. Following a wildly successful meeting with the most attendees in more than a decade and the most meeting sponsors ever, the lake is now one of the association’s favorite places, as well. Everyone enjoyed the lake’s beauty and all the fun activities, and they also benefited from the program Steve helped organize. The educational sessions featured speakers who provide valuable work for Sellenriek Construction and whose lessons were very pertinent to other PCCA members. To close the Mid-Year, the Sellenrieks opened up their lakefront home to the entire membership for a truly memorable all-day party and barbecue. Bringing New Energy to PCCA Bob Sellenriek attended his first PCCA convention in 1998 in Santa Barbara, Calif., at the invitation of fellow Missouri contractor and PCCA Past President, the late Larry Libla. “Larry called and said we’d have a good time and learn a lot, so we went,” Bob said. And they haven’t stopped going since. “We turned it into a family vacation. Over the years, we’ve met a lot of good people--good contacts and good friends.” Steve’s first convention was the following year in Naples, Fla., when Ken Trawick was president. He’s been to every convention since and has missed just two mid-year meetings. Steve was asked to join the PCCA Board of Directors in 2003, and in 2004 President Steve Spears asked him, Tony Briggs, and Matt Trawick to help create PCCA’s Young Construction Professionals (YCP) Program, which flourished and has since grown into the association’s Leadership Development Program (LDP). Steve takes pride in the development of the LDP and the PCCA Project Manager Academy, and he finds them very useful in his work. “I use things daily that I have learned in these programs,” he said. “They are probably the best things that PCCA offers, and they are just not used by enough of our members. I am really proud of how Heath has taken over with the education program and where it is headed.” Steve is also prominent in PCCA’s outreach efforts to federal government agencies and industry groups. In recent years, Steve has traveled (at his own expense) to Washington, D.C., several times to meet with the Rural Utility Service, the Labor Department’s Hour and Wage Division, and the NTCA. “When Steve joined the Board, he hit the ground running,” said PCCA Executive Vice President Tim Wagner. “He never treated it like a title; he treated it like a job, and he’s worked really hard at it. The energy that he and Heath bring to PCCA is special, and it’s very rare.” Bob Sellenriek sees parallels between his sons’ involvement in PCCA and in Sellenriek Construction. “We needed young people in PCCA, made an effort to get them more involved, and now it’s working. It’s like with our company--we have the young people involved who are going to take us to the next level.” And like the people at Sellenriek Construction, their clients, and the people of Jonesburg, the people at PCCA are far better off due to the hard work of Steve Sellenriek. And we’re having a good time, too! 4UFWF 4FMMFOSJFL Continued from page 21

70th ANNUAL CONVENTION Hyatt Regency Aruba Resort Spa and Casino March 6-11, 2015 Thank You Sponsors

VACUUM EXCAVATORS | AUGER BORING | HOLE HAMMER | LOCATORS | MOLEING 800.435.9340 | mclaughlinunderground.com Vermeer, the Vermeer logo and Equipped to Do More are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries. McLaughlin and the MCLAUGHLIN LOGO are trademarks of McLaughlin Group, Inc. © 201 McLaughlin Group, Inc. All Rights Reserved. When accuracy really matters, count on McLaughlin locators to precisely verify utilities. Then reduce jobsite risk even further by potholing with the new Vermeer VX50 Vacuum Excavator by McLaughlin. It’s the perfect combination to get the job done right. Every time.

PCCA Journal|1st Quarter 2015 25 POWER NEWS Continued on page 26 FERC Plans Conferences Focused on EPA’s Clean Power Plan The Federal Energy Regulatory Commission (FERC) in December announced a series of technical conferences to discuss implications of compliance approaches to the EPA’s proposed Clean Power Plan rule. The conferences will focus on issues related to electric reliability, wholesale electric markets and operations, and energy infrastructure. The conferences began with a commission-led National Overview session at FERC headquarters on February 19. Subsequent staff-led regional technical conferences will be held in Washington, St. Louis, and Denver on dates to be announced. Commission members may participate in those conferences. “The commission clearly has a role to play in ensuring that the nation’s energy markets and infrastructure adapt to support compliance with the proposed Clean Power Plan,” said FERC Chairman Cheryl A. LaFleur. “These technical conferences will be an opportunity for the commission to hear from a wide range of stakeholders across the country on issues related to reliability, market operations, and energy infrastructure.” Topics at the National Overview technical conference included: s฀ Whether state utility and environmental regulators, regulated entities, and others have the appropriate tools to identify reliability and/or market issues that may arise. s฀ Potential strategies for complying with the EPA regulations and coordinating with FERC-jurisdictional wholesale and interstate markets. s฀ How planning entities, industry, and states coordinate reliability and infrastructure planning processes with environmental compliance efforts to ensure the adequate development of new infrastructure and to manage any potential reliability and operational impacts of proposed compliance plans. Each of the three regional conferences will include discussion of potential effects on each region’s reliability, power system operations, and generator dispatch under various compliance approaches. Further information also will be posted on the Calendar of Events on the FERC website, www. ferc.gov, prior to the conferences. Chamber Analysis Details State Concerns with Proposed EPA Power Plant Regulations A comprehensive new analysis released in January by the U.S. Chamber’s Institute for 21st Century Energy demonstrates the severity and breadth of state objections to EPA’s proposed clean power plan rule. Released last June by the Obama administration, the rule represents one of the largest and costliest regulatory actions in history. Last fall, stakeholders and the public were invited to submit comments to EPA for consideration. All fifty states, often through their public utility commissions or environmental agencies, submitted comments. “What is truly striking is the level of concern many states have regarding EPA’s rule—whether they are blue states, red states, or purple states,” said Karen Harbert, president and CEO of the Energy Institute. “Keeping the power on and keeping electricity affordable are not partisan issues, and indeed those responsible for critical functions in many states of all political stripes are telling the Obama administration that major changes must be made to this rule.” The Energy Institute’s analysis identifies 12 significant and common themes raised by states, ranging from rushed regulatory timelines (34 states), the legal basis of the rule (32 states), threats to reliability (32 states), and negative economic consequences (28 states). At least 40 states questioned the achievability of at least one of the “building blocks” upon which the rule is based. “EPA has emphasized from the start that listening to the states and to stake-

PCCA Journal|1st Quarter 2015 26 1PXFS /FXT Continued from page 25 holders would be a top priority during this rulemaking process, so it is time to turn that rhetoric into action and go back to the drawing board,” Harbert said. “These issues are too serious and too abundant to be ignored.” Among the other common areas of concern for states identified in the analysis are technological achievability, mistakes and errors, interim compliance targets, lack of credit for early action, treatment of nuclear generation, lack of consideration for stranded costs, goals in comparison to new power plant rules, and estimates of plant generation capacity. The complete guide—In Their Own Words: A Guide to States’ Concerns Regarding the Environmental Protection Agency’s Proposed Greenhouse Gas Regulations for Existing Power Plants—including appendices, can be viewed at www. energyxxi.org/eparule-stateanalysis. The mission of the U.S. Chamber of Commerce’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the institute is building support for meaningful action at the local, state, national, and international levels. Ameren Offers Constructive Alternatives to EPA’s Clean Power Plan A white paper issued by Ameren Corporation says that constructive and common-sense alterations to the Environmental Protection Agency’s Clean Power Plan (CPP) are needed to avoid imposing staggering costs on utility customers and significant risks to electric grid reliability. Ameren’s approach would achieve the same final CO2 emission reduction goals as EPA’s own plan while saving $4 billion in costs and avoiding grid reliability problems related to the premature closure of key coal-fired power plants. Ameren’s GHG strategy proposes pragmatic changes to the EPA plan that include removing the plan’s interim targets that begin in 2020, enhancing interim reporting requirements by the states to ensure that progress is being made to achieve the 2030 target, allowing full credit for the retirement of coal-fired power plants, and allowing for a reasonable extension of the 2030 deadline if utilities are making substantive progress toward achieving the EPA’s final greenhouse gas (GHG) goals. Ameren’s modifications to the EPA plan would facilitate cost-effective compliance not only by Ameren, but by utilities around the country faced with complying with the agency’s proposal. Based on carefully calibrated projections of long-term regional supply-and-demand dynamics, Ameren’s GHG strategy relies on a diverse mix of coal, nuclear, natural gas, and renewable energy resources, as well as the continuation of robust energy-efficiency programs. New DOE Report Shows Solar Growth Spurred by Loan Program In a new report, the Department of Energy (DOE) has highlighted the success of the Loan Programs Office’s solar projects, saying that since it financed its first five utility-scale projects in 2011, 17 additional projects have come on line without the use of loan guarantees. The report coincides with the dedication ceremony of Desert Sunlight, a 550-megawatt (MW) solar project in Riverside County, Calif. “Without question, the Energy Department’s Loan Program Office has helped to grow the U.S. solar industry, jumpstarting the widespread development of utility-scale solar,” said Rhone Resch, president and CEO of the Solar Energy Industries Association. “Desert Sunlight is yet another great success story, and completion of this project put us on course for another record-shattering year. Today, the solar industry employs nearly 175,000 Americans, pumps $15 billion a year into our economy, and offsets more than 20 million metric tons of damaging carbon emissions. In the past four years, employment in the solar industry has increased by more than 85 percent, and last year alone, we created one out of every 78 new jobs in America. This remarkable progress is due, in large part, to smart, effective public policies, such as the highly successful loan guarantee program and the solar Investment Tax Credit. With an estimated 20 gigawatts (GW) of solar capacity currently installed in the United States and another 20 GW in the pipeline for 2015-16, it’s clear that clean, renewable solar energy will play a major role when it comes to powering America’s future.”

PCCA Journal|1st Quarter 2015 27 “The Ameren plan would save our customers billions of dollars while helping avoid substantial economic costs and consequences related to the potential degradation of electric reliability, long a bedrock component of America’s economic prosperity and widely admired standard of living,” said Warner Baxter, Ameren’s chairman, president, and chief executive officer. “Ameren’s solution also substantially reduces greenhouse gas emissions and will, in the long run, achieve the same emission reductions as EPA’s proposed rule at a significantly lower cost while safeguarding our customers’ electricity supply.” Recognizing that the CPP will be subject to legal challenges, Ameren believes that the EPA could greatly enhance the adaptability and effectiveness of its CPP proposal with a few common-sense modifications: s฀ 2020 Targets: Replace EPA’s interim target goals beginning in 2020 with a more flexible approach that provides states greater leeway in determining the proper glide path to achieve the agency’s final GHG goals by 2030. s฀ Interim Reporting: The EPA should establish enhanced interim reporting requirements by the states to facilitate monitoring and to ensure progress is being made to achieve the final 2030 targets. s฀ Performance Metrics: Revise the compliance formula to provide proper credit under EPA’s rate-based method for retiring, and not replacing, existing coal-fired power plants with fossil generation—thus giving full credit where credit is due. s฀ Graduation Dates: Offer states the flexibility to extend the 2030 deadline if a clear path to meaningful reductions is evident in a reasonable time frame. Under the Ameren GHG strategy, by 2035 Ameren would retire more than 1800 MW (about one-third) of its coalfired fleet, add approximately 500 MW of renewable generation, extend the license of its 1200 MW Callaway Nuclear Energy Center, add a 600 MW natural gas combined-cycle unit, and continue to offer robust energy efficiency programs. “Ameren has developed a clear path to significantly cut greenhouse gas emissions without inflicting needless pain upon our customers,” Baxter said. “The modifications we propose to the EPA’s Clean Power Plan reflect midwestern values of prudence and practicality and create a more workable alternative to the agency’s proposed rule by offering a solution to help address unreasonContinued on page 28 Excellence In Utility Products Worldwide Bethea Tool and Equipment Company has over 40 years of experience as a major manufacturer and supplier of conductor installation tools and equipment for the Electric Utility Industry around the world. Call, fax or email today for more information! Bethea Tool and Equipment Company (205) 408-9416 | (205) 408-9414 Fax www.BetheaTool.com | bte217@gmail.com *Most items in our catalog are in stock except for the specialized items we can manufacture to your specifications.

RkJQdWJsaXNoZXIy MjE3MDU=