2026 Annual Meeting of Members
Proposed Bylaw Change

At the Annual Meeting of Members on June 6, 2026, members will consider a proposed bylaw change.

Proposed Bylaw Change - Explanation
EnerStar proposes an updated “Dispute Resolution” provision for inclusion in the bylaws, as the process under the original provision is not well defined. The revised amendment establishes a three-step process — informal negotiation, non-binding mediation, and binding arbitration — designed to resolve disputes between members and the Cooperative more efficiently and cost-effectively than traditional litigation. The Board of Directors recognizes that court proceedings can be slow and costly, and that those costs are ultimately borne by the members. This process encourages resolution through communication and collaboration before escalating to formal proceedings. Both the Cooperative and its members would be equally obligated to comply with any settlements, agreements, or awards reached through this process.

Current Bylaw Language
Article 2 - Section 4 - Arbitration of Member Disputes

Section 4. Arbitration of Member Disputes Any claim or controversy between the Cooperative and any member, or group of members, whether filed directly or on a derivative basis, that arises out of or relates to the provision by the Cooperative to the member of electric power or other services, the maintenance of Cooperative property, or the relationship between the member or group of members and the Cooperative shall, at the request of either party, be submitted to arbitration.

Proposed Bylaw Language
Article 2 - Section 4 - Arbitration of Member Disputes

Any dispute, claim, or controversy between the Cooperative and any active member, or group of active members, that arises out of or relates to the provision by the Cooperative to the member of electric power or other services, the maintenance of Cooperative property, or the relationship between the member or group of members and the Cooperative, shall first be addressed by the Cooperative and the member through informal and good-faith efforts. Any dispute, claim, or controversy that is not resolved through informal, good-faith efforts, with the exception of bill collections and eminent domain matters, shall be submitted to non-binding mediation, conducted in accordance with the Cooperative’s Member Policies, by an impartial mediator, agreed to by the parties involved. In the event the dispute, claim, or controversy is not resolved at mediation, then such shall be submitted to binding arbitration to be conducted by an arbitrator in accordance with the Uniform Arbitration Act (710 ILCS 5/1, et seq.) and as otherwise specified by the Cooperative Member Policies. By becoming a member of the Cooperative, the member agrees to this dispute resolution provision and the related policies prescribed by the Board of Directors pursuant to this Bylaw, and further agrees that no member or inactive member shall participate in any class action or putative class action against the Cooperative, either as a class representative or as a member of the class.

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Proposed Bylaw Change