2020-08-HEMC AR

DIRECTORS AND EMPLOYEES

“Looking Out for You”

2019 ANNUAL REPORT

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Haywood EMC is your local electric cooperative. We are part of the communities we serve, where our employees live along side our members.

Our mission is to improve the lives of the communities we serve by providing affordable and reliable energy.

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HAYWOOD EMC

“Looking Out for You!”

At Haywood EMC, as a member-owned corporation, one of our core values is “looking out for you,” the member. We do this in a number of ways and the basics are called “The 7 Cooperative Principles,” which include the following:

1

VOLUNTARY AND OPEN MEMBERSHIP

Haywood EMC is a voluntary organization, open to all persons able to use our services and willing to accept the responsibilities of membership, without gender, social, political or religious discrimination.

2

DEMOCRATIC MEMBER CONTROL

Electric cooperatives are democratic organizations controlled by our members, who actively participate in setting our policies and making decisions.

Men and women serving as elected representatives by our members are accountable to the membership. At Haywood EMC you, the member, have equal voting rights—one member/one vote.

3

MEMBERS’ ECONOMIC PARTICIPATION

Haywood EMC members contribute equally to the capital of our cooperative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership.

Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which would be indivisible; benefiting members in proportion to your transactions with Haywood EMC; and supporting other activities approved by the membership.

4

AUTONOMY AND INDEPENDENCE

Haywood EMC is autonomous, a self-help organization controlled by our members. If we enter into agreements with other organizations (including governments) or raise capital from external sources, we do it on terms that maintain democratic control by our members and our cooperative autonomy.

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EDUCATION, TRAINING, AND INFORMATION

Haywood EMC provides education and training for our members, elected representatives, managers and employees so we can contribute effectively to the development of the cooperative. We inform the general public—particularly young people and opinion leaders—about the nature and benefits of cooperation.

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COOPERATION AMONG COOPERATIVES

Haywood EMC serves our members most effectively and strengthens the cooperative movement by working together through local, regional, national and international organizations.

CONCERN FOR COMMUNITY

While focusing on member needs, Haywood EMC works for the sustainable development of our communities through policies approved by the corporation’s board elected by our members.

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Looking Out for You

BRINGS RETURN ON YOUR INVESTMENT

Haywood EMC is proud to serve more than 27,000 member accounts with affordable, reliable and safe electricity. We are one of over 900 not-for-profit cooperatives in 47 states that provide electric service to 56 percent of the nation’s landmass.

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perating at cost is a key component of the cooperative’s business model. Haywood EMC works hard to mitigate rate increases; and when needed, to keep rate increases as low as possible. There are many ongoing costs such as: the cost of state and federal environmental regulations, upgrading aging transmission power systems to meet federal reliability and security requirements, protecting the integrity and financial stability of the organization, and looking out for the safety of our employees and members. These are areas of our business that constantly have to be juggled to fight rising costs. Keeping electricity affordable is a priority for Haywood EMC and we are proud that we have been able to absorb increases for the past two years.

One of the cooperative advantages is that we provide our members with “at cost” service. This means we do not exist to earn a profit. As an owner and a member, you share the profits through what are called capital credits. These capital credits represent each member’s ownership of the

cooperative. They are margins credited (or allocated) to the members of the cooperative based on your electricity purchases from the cooperative the previous year.

Our cooperative’s allocated 2019 margins were in the amount of $1,988,947 or approximately 4.6 percent of electric bills rendered. This means that each member account was allocated approximately 4.6 percent of the annual amount paid to the cooperative for electric use during 2019.

Each year, your board of directors review the current financial condition of the cooperative to determine the amount of capital credits to be retired/refunded. In 2019, our power supplier made a significant refund to Haywood EMC due to federal and state legislative changes. Taking into consideration the refund from the power supplier, your Haywood EMC Board of Directors approved a capital credit retirement/ refund of about $1.6 million to be made in the November/December timeframe, for those who were members during the years 1983–2013. Those members with a refund of less than $30 saw a credit on their November or December bill. Those with

a refund of $30 or more received a check mailed in mid to late December.

In addition to the approximate $1.6 million retirement in 2019, Haywood EMC also retired approximately $203,807 in capital credits to estates of deceased members for a total retirement of about $1,803,807.

When a member dies, the administrator of the estate should contact Haywood EMC to claim that individual’s capital credit account. Once the administrator presents a death certificate and completes the necessary paperwork, the cooperative issues a capital credit check.

Cooperatives, by nature, are not-for-profit and capital credits are how we return the amount over our operating cost to you, our members. Investor-owned utilities, such as Duke Energy, return this margin or profit to their stockholders through dividends.

Haywood EMC strives to make the best use of our members’ money while keeping rates as low as possible. When profits are generated, they come back to our member/ owners. This demonstrates the power of being a member of Haywood EMC.

Your cooperative is always there, “looking out for you,” and at Haywood EMC, the people have the power. Therefore, it pays to be a member of Haywood EMC.

CAPITAL CREDITS Because Haywood EMC belongs to the communities we serve, we share profits with the people we serve.

These “capital credits” are one of the tangible benefits of being a member of an electric co-op, and a big part of what makes us different from other utilities that generate profits for shareholders.

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Looking Out for You

MEANS INCREASED RELIABILITY

Each year, Haywood EMC is looking for ways to increase reliability and grid resilience. Inspecting each option by weighing costs vs benefits, equipment life span, and added securities, your cooperative board and management team is always looking out for ways to serve you best. This year was no exception.

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n 2019, Haywood EMC began utilizing Unmanned Aerial Vehicles (UAVs/ drones) to inspect transmission lines and accompanying equipment for breaks, cracks, and any other issues that could cause power outages. Using UAVs is significantly faster than inspecting lines by bucket truck or climbing. This allows us to cover more lines more often than through traditional methods, ensuring greater reliability. The use of UAVs is also much safer than hand inspecting, keeping our lineman safe and ready to respond to other line work that may be needed.

Haywood EMC has also been improving and upgrading equipment in several of substations across our service territory.

In 2019, we began replacing older equipment with modern technology devices.

These upgrades are improving reliability across the grid by creating better outage coordination between devices, as well as decreasing outage times due to improved communications between devices.

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Haywood EMC is committed to being on the forefront of the new technology in Electric Vehicles (EVs). In 2019, your cooperative added a new Nissan Leaf to our fleet to promote EVs to the communities we serve. We also began installing EV Chargers at our Headquarters office in Waynesville as well as at our Lake Toxaway District office.

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Looking Out for You

R E S U LT S I N T A K I N G A D V A N T A G E O F T E C H N O L O G Y

Haywood EMC is proud to have added an all-electric vehicle (EV) to our fleet! Since purchasing our new Nissan Leaf EV in May, we have received several questions on the advantages of owning and driving an EV.

Great Reasons to Drive Electric F Significant $avings. Powering a car with electricity is cheaper than powering it with gas, so electric vehicles cost less to operate. EVs are becoming increasingly affordable to purchase and tax incentives/rebates can also help reduce their price tag.

F More convenience. Imagine never having to go to the gas station again!

Most EV drivers charge overnight at home. A growing network of public charging stations also make it increasingly convenient to charge your EV no matter where you are headed.

F Less maintenance. EVs tend to have fewer moving parts than gasolinepowered vehicles, with no oil changes and less maintenance, which can help you save both time and money. EVs also offer regenerative braking, which means they convert the energy lost while braking into stored energy that can be used later, so their brake systems are more efficient and last longer than those of conventional vehicles.

F A healthier environment. Plug-in electric vehicles have zero tailpipe emissions, which improves air quality and benefits us all. Even when accounting for the generation of the electricity that powers EVs, emissions are lower than those of traditional vehicles. Even better news for you, a large portion of the power that comes to you from Haywood EMC already comes from emissions-free sources, stacking the value of driving electric.

The week of September 14-20 was National Drive Electric Week. To celebrate the week and better educate our members about driving electric vehicles, Haywood EMC participated in Asheville’s Land of the Sky Clean Vehicle Coalition’s celebration at the Asheville Outlet Mall.

While at the event, Haywood EMC’s Manager of Marketing and Communications Ken Thomas was able to answer questions while showing off the co-op’s Nissan Leaf. “It was great to see so much interest in the electric vehicle industry by enthusiasts of all ages,” said Thomas.

“I believe folks are realizing that the

transition from gasoline-fueled vehicles to all-electric ones is happening sooner than

expected and they appreciate what this means for a cleaner environment.”

HAYWOOD EMC NOW OFFERS OUTAGE TEXT ALERTS! Now it's faster and easier than ever to receive outage updates from Haywood EMC. We recently launched a new service to help our members stay connected and confirm restoration following a power outage. This program was developed as another convenient way to communicate with us!

When power outages occur, we are committed to keeping you informed throughout the restoration process. We'll contact you with: F Outage Alerts for Your Area F Estimated Restoration Times and Status Updates F Outage Causes F Notification When Power is Restored F Ability to Confirm Your Restoration This Text Outage Service is only for outage reporting and receiving outage information. Any other text sent to this texting service will receive a response of invalid entry.

If you have additional information about an outage (i.e. a tree is on the line) you must call the outage number to report (888-438-4362).

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Looking Out for You

A L LO W S US TO C E L E B RAT E M E M B E R A P P R E C I AT I O N DAYS

We held our 7th Annual Member Appreciation Days in Waynesville on May 21 and Lake Toxaway on May 23. On both days we enjoyed the beautiful sunshine and warm weather while serving more than 800 members a great meal.

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oining us were our friends at Land of the Sky Clean Vehicle Coalition to help those in attendance learn more about the advantages of electric vehicles. We also had folks from our Carolina Country magazine who handed out some great gifts, Generlink gave demos on their generator products, and Haywood

EMC had an exhibit with employees available to answer any questions.

It was a real pleasure to see everyone who came out to enjoy this time with us. We were able to share our gratitude and appreciation to our Electric Cooperative Family.

Thank you for allowing us to serve you!

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S

Looking Out for You

MEANS PROVIDING THE BEST TRAINED EMPLOYEES

Although our offices were closed on Memorial Day, our employees all gathered at our Waynesville office for our annual employee training day.

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his day we spend together with all employees from both districts in our Waynesville office. During the training, all employees are briefed on new policies for the year, refreshed on old policies and participate in important safety training.

Nash Community College. David has been employed by Haywood EMC for 13 years and serves as our Test Technician, where he is responsible for the maintenance of substations, line regulators, three-phase wiring, meter testing, oil sampling and much more!

This year included a companywide CPR, first aid and AED refresher course. This training is not only for our employee’s safety, but also so that our employees can best help members of our communities, should an emergency arise.

David, his wife of 13 years, and their two children live in the Fines Creek Community. David is just one example of many outstanding employees serving the members of Haywood EMC.

Lineman Earns Associate Degree

Haywood EMC congratulates our very own David Mehaffey for completing his Associate Degree in Applied Science of Electric Lineman Construction Technology from

Betty Jaynes Retired With 50 Years of Service to Our Members

Haywood EMC proudly celebrated with employee Betty Jaynes for accomplishing 50 years with the electric cooperative. Betty began employment June 23, 1969, as a

cashier and was serving as the co-op’s Credit/ Collection Specialist when she retired.

Betty is the first employee in the cooperative’s 80-year history to work for 50 or more years, although there are a few more right on her heels. Betty says, “When I first came to work, we barely had 6,000 members and today we serve over 27,000 member accounts.”

The change that Betty says has affected her most is going from the old Burroughs billing machines to computers and no longer hand labeling out-going power bills.

When asked what Betty has enjoyed most about working for Haywood EMC she replied, “Working with our members

has always been a highlight for me and is what I will miss most, that and my fellow employees.”

“Haywood EMC has been good to me and my family and I’ve been blessed to work there!”

Passing of a Community Servant and Leader

Haywood EMC was saddened by the death of a friend and past board member, Emmit Wood.

Mr. Wood was a true community leader and served as an example to us all. His hard work and 32 years on the Haywood EMC board of directors will be long remembered. The board of directors, management and employees of Haywood EMC extend our heartfelt sympathy to his family and many friends. He is truly missed.

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Looking Out for You

MEANS YOU RECEIVE THE BEST SERVICE AVAILABLE F O R P O W E R R E S T O R A T I O N D U R I N G S T O R M S before midnight that night. Many of our members expressed their gratitude on Facebook and via phone calls.

F Molly Ray Carver: “Thank you guys for working the long hours after a full day of work HEMC linemen are absolutely the BEST!!!”

F Maria Peterson: “You guys are freakin’ amazing! Power on! Thank you so much!”

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Local Linemen, Local Power

arly in the evening of Friday, April 26, 2019, Haywood EMC’s service territory faced extremely high winds after a strong cold front moved through. The wet grounds and high winds tore down several trees, including one massive oak tree which ripped down several spans of transmission line and left over 6,350 members in Haywood County in the dark. Our linemen were able to work quickly and repair the downed transmission lines, restoring everyone’s power

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F GK Bryson: “Thank each of the linemen and each of the ground workers for their hard work and long hours during these power outages. We always pray for their safety and extensive focus to keep them safe. We want to thank each of their families for giving up their family time so others can have their daily power needs met. Without the power workers we would have many safety concerns of our disabled, elderly, and medically ill community and neighbors in a state of emergency. Thank you and God Bless.”

At Haywood EMC, we celebrate the hardworking men and women who work for us, keeping your lights on.

HEMC is very thankful to each and every one of our members for being so patient as our employees work to restore your power.

Thank you for watching out for fellow members of the community, checking in

and bringing them food while they experienced an outage. Thank you for supporting our linemen through offering coffee, food, and plowing snow for trucks to get up steep roads.

When Conditions Are Worst, Line Workers Are at Their Best

Linemen are first responders. They're out in all kinds of inclement weather and at all hours, we depend on them to be the front line. Being the “front line” for Haywood EMC means linemen are first responders in our community. As a local business, Haywood EMC’s employees, including our linemen, live in the communities we serve. You will see them not only restoring power, but also at the store, at church or picking up their kids from school, and you can feel confident that they—like you— want power to be restored to our community as quickly and safely as possible.

Electricity is delivered along a series of connected wires and poles, and when that connection is interrupted by something like a falling tree branch, animal, or faulty

equipment, it takes knowledge, skill and muscle to rebuild. Our crews are always ready. In the middle of the night, on holidays, and in snow, ice, floods and extreme heat, they are dedicated to restoring power to members, no matter the conditions.

In September, Hurricane Dorian greatly impacted the eastern part of the state, leaving tens of thousands of North Carolina Electric Cooperative members in the dark. Haywood EMC sent a crew out to assist with power restoration at South River EMC in the Fayetteville area.

All our cooperative employees do a phenomenal job every day to serve our members. From our Customer Services Reps who answer the phone to serve you with genuine, professional and courteous concern to meet your needs, to our Engineers, Staking Agents, Mechanic, Accountants, Maintenance Employees, Electricians, Human Resources, Billing Department, Information Technology (IT), Management and Board of Directors.

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Looking Out for You

MEANS LOOKING OUT FOR OUR COMMUNITY

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aywood EMC actively engages in providing both support and opportunities to help give back through monetary donations for the sustainable development of the communities we serve.

As a corporation, we support charities and foundations that are at the heart of our corporate social responsibility. We do this through employee involvement in local organizations, charitable contributions to community efforts, support for our local schools, as well as Volunteer Fire Departments. As such, the following were some of our achievements last year:

The United Way

As a Pacesetter for the United Way, Haywood EMC and employees completed our 2019 United Way contribution campaign with an all-time high of $16,738 in giving to benefit those of our local

communities in need. In addition, several Haywood EMC employees worked with the United Way in its Day of Caring, held September 12. Employees helped one of the cooperative’s members by rebuilding a rotten wheelchair ramp leading to her house to ensure her safety and better quality of life.

Local Student Visits D.C. During Youth Tour

Haywood County’s Power of Pink 5k

Haywood EMC employees and families participated in the 13th annual Power of Pink 5K. Power of Pink raises money to provide mammograms for qualifying underserved women in Haywood County.

Since the race’s inception in 2007, over 1,675 mammograms and follow-up procedures were provided to over 900 women.

Relay for Life Walk

On May 17, Haywood EMC employees participated in the Haywood

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County Relay for Life walk in Canton.

Throughout the night, members of the community did laps around the set track to honor those lost to cancer and help raise money for research. Employees helped raise money for cancer research through selling hot dogs and drinks along with employee and member donations.

Last summer, North Carolina’s Electric Cooperatives sent 45 exceptional high schoolers to represent their communities in Washington, D.C., on the 2019 Electric Cooperative Youth Tour.

From June 15-21, the North Carolina delegates joined more than 1,800 students from across the country to explore historic monuments and museums, meet elected officials at the U.S. Capitol, participate in networking events and learned about our nation’s history and the importance of civic engagement. The students also experienced the cooperative difference firsthand by running their own snack and beverage co-op for the duration of the trip.

Brooks Valentine, a rising senior at Pisgah High School, represented Haywood EMC. Brooks earned the opportunity to attend

after completing an essay and interview with our staff.

“I am thankful to have participated in this year’s Youth Tour. It was great getting to sit in a senate session and hear from Chuck Shumar,” recalled Brooks.

“It was great for Haywood EMC to participate once again in the Youth Tour. After several years’ hiatus, we are proud to start offering this great experience to the high school students of our great communities again,” says Haywood EMC Youth Tour Coordinator, Mitch Bearden.

The Electric Cooperative Youth Tour to Washington, D.C., is a tradition more than 50 years strong.

The tour is hosted annually by electric cooperatives nationwide and the National Rural Electric Cooperative Association.

Haywood EMC Awards Bright Ideas Grants to Local Educators

Haywood EMC awarded nearly $9,000 in six Bright Ideas education grants to exceptional educators in our local schools. These grants are awarded each year to teachers

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Bright Ideas winners (pictured clockwise): Samuel Yancey, Jonathan Valley Elementary ; Kimberly Worley, Hayesville Elementary; Kristi Griggs, Robbinsville Elementary; Noal Castater, Waynesville Middle; Kimberly Sanders South Macon Elementary; and Justin Ausburn, Brevard Middle.

for innovative classroom-based projects that enhance student learning.

Last year marked the 25th anniversary of the Bright Ideas program, which provides funding for projects in all grade levels and subject areas. Since 1994, Haywood EMC has contributed to helping teachers accomplish their creative projects and North Carolina’s 26 electric cooperatives have collectively awarded more than $12.2 million for nearly 11,700 projects benefiting 2.3 million students.

Visit ncbrightideas.com or follow @NCBrightIdeas on Facebook and Twitter to learn more about Bright Ideas and its impact on students across the state.

The cooperative’s Manager of Marketing and Communications, Ken Thomas, and Social Media Technical Coordinator, Mitch Bearden, presented the grants to all of the winners.

Basketball Camp Scholarship Awarded to Local Middle School Athlete Charles Max McClure of Franklin received the Touchstone Energy Sports Camp scholarship for the Roy Williams Basketball Camp at UNC. At the camp, students stayed overnight in campus dorms, learned fundamental basket-

ball and life skills, and received individual and group instruction from Division 1 coaches. Namely, Roy Williams, coach of the North Carolina Tar Heel men’s basketball team directs the camp with the help of staff and current and former players.

Haywood EMC is one of 26 Touchstone Energy cooperatives in North Carolina that collectively award more than 50 sports camp scholarships to students statewide each year.

Haywood EMC is excited to have the opportunity to send this deserving young Co-op member to basketball camp with nationally renowned coaches.

The Touchstone Energy Sports Camp Scholarship program is part of the electric cooperatives’ ongoing commitment to North Carolina communities.

Visit haywoodemc.com or ncelectriccooperatives.com/sports-camps for more information.

Touchstone Energy Scholarships Awarded to Local Students

Each year, Haywood EMC awards scholarships to local high school seniors through our Touchstone Energy Scholarship program. The TSE Scholarships assist local high school seniors attending the

college or university to which they have been accepted.

Congratulations to Zeke Long of Canton and Azilee Owen of Balsam Grove! These two earned Touchstone Energy Scholarships, with Zeke attending Haywood Community College and Azilee attending University of South Carolina this fall!

This was the 13th year Haywood EMC has awarded the annual Touchstone Energy Scholarship, which was created to support senior high students who want to go to college as well as to bring awareness of Touchstone Energy and its relationship with electric cooperatives. All seniors enrolled in high schools within the eight-county Haywood EMC service territory are eligible for this scholarship.

Information for Touchstone Energy Scholarships can be found at haywoodemc.com.

Schools will be notified when applications are due for the next school year.

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Volunteer Fire Departments awarded grants this year included (pictured clockwise): Fines Creek VFD, Balsam Grove VFD, Otto Fire and Rescue, North Canton VFD, Lake Logan Cruso VFD, and Crabtree VFD.

Support the Salvation Army and Mountain Project’s Head Start

Throughout the year, HEMC employees are proud to support members of our community and during the Christmas season they really get into the spirit. Our employees were proud to support The Salvation Army and Mountain Project’s Head Start Program by providing Angel Tree gifts to children in our communities.

Santa Visits Haywood EMC

advisor (Mrs. Claus) who said they both would be coming. She said once they realized Haywood EMC served some of the best-behaved children in the world they had to make the effort. After juggling their schedule, Mr. & Mrs. Claus said they would be at Haywood EMC’s Corporate Headquarters at 376 Grindstone Road in Waynesville on Thursday, December 19, to visit children from the electric cooperative’s service area.

Haywood EMC contacted the North Pole to request a visit from Santa Claus in

Supporting our Local Volunteer Fire Departments

December. At first, Santa’s staff said that while they were sorry, there is no way Santa could make extra travel plans with his already busy schedule at that time of year. However, two days later, Haywood EMC received a call from Santa’s only

Nine VFDs made requests and received grants last year: Balsam Grove, Clyde, Crabtree-Iron Duff, Cruso, Fines Creek, Jonathan Creek, Lake Logan, North Canton and Otto.

Haywood EMC is always proud to support our local Volunteer Fire Departments (VFD). Your electric co-op has a program that allows local VFDs serving Haywood EMC’s service territory to apply for small grants. These grants must benefit or enhance the performance of official duties performed by the VFDs. This program mutually benefits both your electric cooperative, its members, and is in appreciation for all the VFDs do to assist your electric co-op during major storms and power outages. Together, we are “looking out for you,” our members and our communities!

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FINAL THOUGHTS Here at Haywood EMC, we are thankful for the

Financial Report

opportunity to serve our communities. Through your support, we not only provide safe, reliable and affordable power, but we also empower those around us by investing in programs that enrich education, promote economic development and improve quality of life. We are committed to making a difference in the areas we serve. With your membership, we also continue to pursue innovative new technologies and energy solutions that help build a brighter energy future for everyone.

Haywood EMC has been offering our members safe, reliable and affordable power from the day our doors first opened more than 80 years ago. As members, you get to decide how the business is run and what services are offered under the watchful eye of locally elected directors serving you on the board. You can be proud of the job you have done throughout the cooperative’s history.

Thank you for the opportunity to serve you, and for all you do to help us carry out our mission of service!

OPERATING STATEMENT

for years ending December 31, 2019 and 2018

OPERATING REVENUE Operating Expenses Cost of Power Transmission Operations and Maintenance Distribution Operations Distribution Maintenance Consumer Accounts Customer Information and Sales Administrative and General Depreciation Taxes Other

Tom Batchelor, Executive Vice President & CEO

2019

$42,905,315 $43,610,849

17,389,245

19,146,228

56,965 2,731,197 5,967,819 1,096,896 833,486 3,815,482 5,439,516 1,706 24,321 37,356,633

86,761 2,671,645 5,838,540 1,077,027 638,101 4,503,905 5,235,758 2,223 36,028 39,236,216

31,343

TOTAL SERVICES IN PLACE

TOTAL KILOWATT HOURS SOLD

295,392,203 TOTAL NUMBER OF EMPLOYEES

72

MILES OF TRANSMISSION LINE

20.71

MILES OF DISTRIBUTION LINE—

914.20 UNDERGROUND

5,548,682 4,374,333

Interest Expense

4,053,885

4,036,987

Operating Margins after Interest Expense

1,494,797

337,346

Nonoperating Margins

341,662

225,103

TOTAL MILES OF LINE

Patronage Allocations

494,150

562,215

2,330,609

1,124,664

Other Comprehensive Income — Postretirement Healthcare Benefits (21,187) Comprehensive Income

$2,309,422

2019

2018

Operating Margins before Interest Expense

Net Margins

Larry Clark, President

KEY STATISTICS

2,036.80

OVERHEAD

2,971.71

10,359 $1,135,023

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BALANCE SHEET

for years ending December 31, 2019 and 2018

ASSETS Utility Plant Electric plant in service-at cost Construction work-in-progress Gross Utility Plant Less-accumulated provision for depreciation/amortization Other Property and Investments Investments in associated organizations Non-utility property Notes receivable Restricted Funds

Current Assets Cash and cash equivalents Accounts Receivable Unbilled revenue Other accounts receivable Notes receivable - current portion Interest Receivable Materials and supplies Prepayments

Deferred Debits Total Assets

2019

2018

$182,230,269 2,768,650 184,998,919 (50,025,806) 134,973,113

$177,916,165 2,289,719 180,205,884 (47,668,753) 132,537,131

4,705,846 130,109 11,508 1,000,000 5,847,463

4,556,551 130,109 28,695 1,000,000 5,715,355

3,809,658 2,498,827 1,873,496 452,167 12,644 8,295 903,802 300,672 9,859,561

8,623,220 2,959,895 2,624,218 598,480 20,120 20,936 906,559 38,264 15,791,692

170,186 $150,850,323

153,010 $154,197,188

Where Our Dollar Comes From Commercial 3% Seasonal 16%

Industrial 1%

LIABILITIES & EQUITIES Members’ Equity Patronage capital Accumulated other comprehensive income Other equities

Interest Expense 9% Depreciation 12%

2018

$39,794,074 (99,428) 8,879,127 48,573,773

$39,858,397 (78,241) 8,227,819 48,007,975

Long-Term Debit Accumulated Provisions for Postretirement Healthcare Benefits - Noncurrent

90,172,818

93,633,976

244,195

231,466

Current Liabilities Long-Term Debt - Current Portion Lines of Credit Accumulated provisions for postretirement Healthcare Benefits - Current Accounts payable Consumer deposits Accrued and Withheld taxes Other

3,454,000 -

3,787,000 -

10,652 2,370,987 760,156 3,399 1,907,718 8,506,912

19,710 3,356,073 718,060 3,558 1,213,621 9,098,022

Deferred Credits

3,352,625

3,225,749

$150,850,323

$154,197,188

Total Members’ Equity and Liabilities

Where Our Dollar Goes Residential 80%

2019

Member Equity 5%

New Services Connected Purchased Power 41%

538 479

448

489

490

2018

2019

431

416 357 288

Operating Expense 33%

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2011

2012

2013

2014

2015

2016

2017

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Board of Directors

Roy Stamey | CCD Vice President 36 years on the board

David Noland | CCD 27 years on the board

Haywood Electric Membership Corporation is a memberMadison

owned electric cooperative Larry Clark | CCD President 27 years on the board

serving more than 27,100 active member accounts in Western North Carolina, as well as a part

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of South Carolina and Georgia.

District offices are located in Lake

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Toxaway and Waynesville.

Haywood

Buncombe

3

Kenneth Israel 28 years on the board

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1 Jackson Clay Talley | CCD 7 years on the board

2 Transylvania

Macon

Lucas Sorrells | CCD Assistant Secretary/Treasurer 8 years on the board

7

8 Rabun, GA

Oconee, SC Haywood Electric Membership Corporation 376 Grindstone Road, Waynesville, NC 28785 Lake Toxaway: (828) 966-4215 Waynesville: (828) 452-2281 | 800-951-6088

14 |

haywoodemc.com

Haywood-0820 AR.indd 14

James P. Boyette | BLC, CCD 12 years on the board Steve Foster Secretary/Treasurer 16 years on the board

7/9/20 3:57 PM