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Georgia Georgia Georgia Celebrating the Georgia lifestyle

GEMC

®

Read the Cobb EMC Annual Report Page B Annual Meeting goes virtual See back page

MAGAZINE

SEPTEMBER 2020

Celebrating the Georgia lifestyle

GEMC

®

MAGAZINE

Celebrating the Georgia lifestyle

GEMC

®

MAGAZINE

Cobb EMC Annual Report features co-op’s latest innovations


DEAR MEMBERS, From the moment we connected our first members in 1938, innovation became part of our culture and our reputation. Our mission to pioneer new technologies to improve quality of life and help our local economy grow continues today. With a new battery storage and solar project on our campus, we are redefining what it means to be an energy expert through research and development and continual improvement. But no matter how we evolve, certain things are constant. Our commitment to superior service, low-cost power and reliability remains unchanged. These concepts define us.

SUPERIOR SERVICE We’ve worked hard over the past decade to positively impact consumers through a series of smart grid technology enhancements and other infrastructure improvements. As a result, our customer satisfaction scores are at a record high. We have reduced outages by more than 25%, ranking Cobb EMC in the top three nationwide for reliability1. We’re proud of how our employees continue to safely deliver affordable, reliable, clean energy and excellent customer service 24/7 year-round.

LOW COST Our high reliability is even more impressive when you consider it was achieved while keeping costs low. The board of directors has lowered your bills nine times in three years, and most recently gave back $10 million to members when power costs came in lower than expected. Your monthly bills are $24 lower than the average utility bill in Georgia. Gas South is a subsidiary of Cobb EMC, and our partnership offers you big savings, including a permanent discount on already low rates. Pay no deposit, no connection fee, plus get additional savings for enrolling online. Together, we save you money. B

1 Institute of Electrical and Electronics Engineers (IEEE)

Board Chairman Tripper Sharp, left, and President and CEO Peter

COMMUNITY FOCUSED As a co-op, involvement in our community is a priority, and we’re committed to giving back to the areas where our members live and work.

FUTURE READY Over the last year, we’ve balanced our mix of energy sources, ensuring we have solid power supply plans for the future. We’re focusing our energy supply plans on bringing you the benefits of clean, renewable energy. We’ve increased solar in our resource mix by 360% since 2016 with additional solar planned for 2021. This year, we worked with Gas South to build a state-of-the-art solar and battery storage system to ensure a sustainable future for both companies. Our commitment to our members is to provide superior service, and low-cost reliable power is the foundation of all that we do. We are excited about the future, and we hope you are too.

Peter J. Heintzelman President and CEO

Tripper Sharp Board Chairman


LOWEST RATES

OUR ELECTRIC RATES ARE THE LOWEST IN THE SURROUNDING AREA & AMONG THE TOP 5 LOWEST IN GEORGIA (PSC).

$24

MEMBERS’ BILLS ARE $24 LOWER THAN THE AVERAGE UTILITY BILL IN GEORGIA (PSC)

PAMELA DABROWA

J. Heintzelman.

HIGHLIGHTS $5,000,000+

AWARDED TO LOCAL NONPROFITS BY THE COBB EMC COMMUNITY FOUNDATION

150,000

STUDENTS IMPACTED BY EDUCATIONAL OUTREACH PROGRAMS

9X

WE’VE LOWERED MEMBERS’ BILLS 9 TIMES IN 3 YEARS

#1 IN NATION

WE’RE RANKED 1ST IN THE NATION FOR RESTORING OUTAGES QUICKLY AND 3RD FOR DELIVERING RELIABLE POWER FOR 2019 ACCORDING TO THE IEEE

A+ RATING

STRONG INVESTMENT GRADE RATING OF A+ REAFFIRMED BY FITCH RATINGS IN 2019

$76,500

AWARDED TO STUDENT-MEMBERS IN OUR COMMUNITY

C


CLEAN ENER


Our sustainability commitment Cobb EMC is on the path to a cleaner energy future. We’re working to incorporate sustainability solutions that benefit our cooperative and allow us to better serve you, our members. This year, we launched a battery storage and solar strategy to help power our operations with renewable energy. This includes rooftop solar panels on our buildings, which are a step toward a lower carbon future.

RGY

To teach our community about sustainability and the importance of solar energy, we created the nation’s first Solar Flower Garden. Located in Marietta on our campus, the garden features 16-foot-tall Smartflowers that follow the sun throughout the day to generate solar energy. This clean energy can be shared back to the grid. These initiatives allow us to produce nearly 2.4 million KWh of electricity annually through solar energy, which is enough to power about 200 homes. As we look to the future, we continue to support electric vehicle (EV) adoption through robust programs. Our EV grants for businesses help to expand the EV charging infrastructure in our community so commuters have more access to charging. Since 2019, our efforts have supported nearly 12 new EV chargers in our neighborhoods with more in the planning stages. As a leader in our industry, we will continue to invest in innovative technology that supports a greener future, while honoring our mission of keeping your electric rates low.

We invite you to drive our fleet

The cooperative difference is our ability to offer unique programs to our members. We make our fleet EVs available for overnight checkouts so members can see what their daily life looks like in an EV. We also created the Ride and Drive program to show drivers an inside look at a variety of EVs. Both of these programs have resulted in members making the switch to electric. Learn more at cobbemc.com/ev. PAMELA DABROWA

E


Advancing technology for reliable power Our No.1 priority is safely delivering the reliable power our members depend on. With a focus on new technology and innovation, we’ve achieved 99.99% service reliability. This means you have power when you need it. Over the last five years, we installed an advanced fiberoptic network as part of our commitment to building a faster, more dependable electric grid. Devices installed on this smart grid help monitor the grid to detect and restore outages. As a result, our grid is controlled with one of the most technologically advanced power control systems in the world, and earned us the first place ranking by IEEE for restoring outages quickly.

Rate choices powered by world-class service F

Enhancing our smart grid technology allows us to bring you dependable power with fewer interruptions. Over the last 10 years, we have reduced outages by 25%. We regularly inspect, improve and monitor 9,000-plus miles of line across five counties. To further minimize outages and eliminate safety hazards, we proactively trim trees along our power lines. Trees and limbs falling on overhead lines often cause blinks and power outages. Our tree maintenance program is designed to maintain the right of way and the integrity of our grid. We will continue to advance technology to deliver the reliable power that you’ve come to expect.

At Cobb EMC, we understand that every home has different energy needs. That’s why we enhanced our rate offerings in 2019 to give members the flexibility to choose which rate best fits their lifestyle. From EV-friendly to set it and forget it, we offer six rate options that fit your budget and your energy use patterns. Explore your options: cobbemc.com/rates.

Member satisfaction at all-time high 793 90

Scored 40 points higher than the industry average on a well-known customer satisfaction survey.

Cobb EMC has one of the highest ACSI ratings among U.S. Electric Member Cooperatives (EMCs).


Responding to a global pandemic Our commitment to you goes beyond electricity. Without losing sight of our mission to ensure the homes and businesses we serve remained energized, we devoted much of our energy in 2020 to the COVID-19 pandemic, an issue that impacted our members, employees and our entire five-county service area. Our employees, along with the member-supported Cobb EMC Community Foundation, swiftly mobilized to serve those in need. Collectively, we gave more than $68,000 to local nonprofits, and Gas South, our wholly-owned subsidiary, donated $1 million to support families in our community. Behind the scenes, we found other ways to show support because as your neighbor, we’re committed to making a difference in the community that built us.

COVID-19 RELIEF EFFORTS For four months, we halted all disconnects for unpaid bills. Our member care representatives continue to support those impacted by the crisis with payment arrangements and financial assistance resources. cobbemc.com/COVID19 770-429-2100

Our members voluntarily contributed to the Cobb EMC Community Foundation’s Emergency Relief Fund to assist organizations in urgent need due to the crisis. Together, we supported 24 organizations providing resources to our neighbors in need.

We donated Personal Protective Equipment to a neighborhood health organization and teamed up with the Cobb Chamber and the Cobb Community Foundation to feed families through Operation Meal Plan. We also supplied meals to first responders, our 911 call centers and local senior centers.

In March, we began the Make-A-Mask Challenge to arm essential workers and organizations on the front lines, including first responders, homeless shelters and health care workers. Our members made this challenge a success by sewing thousands of masks, which employees delivered throughout our community.

MAKE-A-MASK CHALLENGE G


Led by members We are regulated by a board of nine directors who work diligently to plan for the co-op’s future. Your directors are elected from and by the membership.

Edward Crowell District 1

Rudy Underwood District 2 Secretary-treasurer

Kelly Bodner District 3

Board candidates Nominees for Director Election in 2020 are running unopposed. Edward Crowell, District 1, has served on the Cobb EMC Board since 2011. Crowell has served as Board Chairman, Vice Chairman, Chair of the HR Committee and is currently Chair of the Governance Committee, as well as serving on the management committees of Gas South and Fiber South. He has an academic and career background with politics and utilities and brings nearly three decades of experience as CEO of a not-for-profit. In addition, he has worked in commercial real estate public relations and has served on other boards, giving him a frame of reference when making decisions at Cobb EMC. Navigating the fast-paced changes in technology of the electric industry and society present challenges for Cobb EMC. Crowell’s background in public relations and the political realm are valuable as Cobb EMC works through changing membership demographics and expectations to serve member customers. Having participated in the deregulation of a utility industry in the past, he also brings an understanding of the challenges to come. David Tennant, District 6, has directed projects totaling over $3 billion around the world in energy and manufacturing. David has degrees in engineering and business from Florida Atlantic University, Georgia Tech, and KSU. He has served in a number of roles including executive management of both private and publicly held companies. He has been on the Cobb EMC Board since 2011. He currently chairs the Energy Portfolio Committee, and serves on the Fiber and Audit committees. He is also on the Gas South Management Committee.

David McClellan District 4

Malcolm Swanson District 7 H

Tripper Sharp District 5 Chairman

Bryan Boyd District 8

David Tennant District 6

Eric Broadwell District 9 Vice Chairman

The utility and energy landscape is seeing tremendous change that will continue into the foreseeable future. Some of the issues that Tennant is particularly interested in include the adoption of electric vehicles, distributed generation, cyber security and energy generated from clean fuel sources. Malcolm Swanson, District 7, resides in Kennesaw with Nancy, his wife of 39 years. He is currently the Chairman of the Budget and Finance Committee and has been the past Chairman of the Audit Committee and the Human Resources Committee. He currently serves on the Public Affairs and Education Committee and the Human Resources Committee. Swanson has been on the board since 2011 and is a lifelong resident of Cobb County. He has earned the highest designation of Gold Certification from NRECA. Swanson, in conjunction with the other board members, is working to keep Cobb EMC a leader in low rates, in safety for our employees and members and in reliability, as well as in forward thinking for our future energy needs. Swanson has three children: Chase, an attorney in Marietta; Lindsey, a doctor specializing in Sports Psychology; and Dansby, an Atlanta Braves baseball player.


Guided by our founding principles Cooperatives operate according to a core set of principles that make electric cooperatives different from other electric utilities. To learn more about the cooperative principles and how they impact you as a member, visit cobbemc.com/about.

1 2 3 4 5 6 7 Open and Voluntary Membership

Democratic Member Control

Members’ Economic Participation

We welcome all qualifying members.

Annual Meeting gives members a voice and a vote.

Hold monthly open board meetings.

Education, Training & Information

Cooperation Among Cooperatives

Our directors attend training and we are your energy expert.

Co-ops help co-ops with storm restoration.

Autonomy & Independence We’ll remain in the hands of our memberowners.

Concern for Community

We’re dedicated to improving our community.

Driven by our mission and values Over the last year we’ve placed emphasis on innovation at our company, while delivering on our commitment to keeping rates low. We remain focused on our community efforts and working to improve the quality of life in the areas we serve. We achieve this through our support of economic development, local nonprofits and our future generation.

MISSION Reliable, safe electricity, Rate competitive, Robust governance, Relevant services, Recognized employer

CORE VALUES Put People First. Stay Safe. Innovate. Own It.

I


Financials 2019

Balance Sheet – Consolidated Assets

Cobb Electric Membership Corporation is a not-for-profit electric membership corporation whose purpose is to provide electric service to its members. The consolidated financial statements present the financial position and results of operations of Cobb Electric Membership Corporation and its wholly-owned subsidiaries, Cobb Energy Management Corporation and Gas South LLC. McNair, McLemore, Middlebrooks & Co. LLC conducted our audits as of December 31, 2019, in accordance with auditing standards generally accepted in the United States of America. The financial information included in this report represents a summary of our consolidated financial condition and operating results. Copies of the audited consolidated financial statements are available at cobbemc.com. Review these statements for a more comprehensive overview of our financial condition.

Rudy Underwood Secretary-Treasurer Cobb EMC Board of Directors

Net Utility Plant Other Property and Investments Current Assets Other Assets

Balance Sheet – Consolidated Equities and Liabilities Equities Long-Term Liabilities Current Liabilities Deferred Credits

$ 407,070,368 484,208,726 158,461,490 27,223,244 $ 1,076,963,828

Consolidated Statement of Operations Operating Revenues

$ 775,563,910

Operating Expenses: Cost of Revenues Distribution Operations Distribution Maintenance Consumer Accounts Consumer Service and Information Administrative, Selling and General Depreciation and Amortization Operating Taxes Total Operating Expenses

545,582,431 9,684,287 22,616,419 13,322,652 1,292,109 80,066,628 37,102,772 4,284,261 $ 713,951,559

Operating Margins Before Interest Expense Interest Expense Operating Margins After Interest Expense Nonoperating Margins Generation and Transmission Patronage Allocations Other Capital Credits and Patronage Allocations Net Income Before Income Taxes Income Tax Expense Net Income

A+ STRONG J

$ 667,730,587 237,847,117 150,599,862 20,786,262 $ 1,076,963,828

$

61,612,351 21,586,331 40,026,020 1,290,693 5,786,879 2,436,286 49,539,878 6,641,000 42,898,878

Cobb EMC’s strong investment grade rating of A+ was reaffirmed by Fitch Ratings in 2019. This confirms the continuing strong financial profile of the company.


Statistical ProďŹ le 2019 year-end | The numbers below represent Cobb EMC data only. 205

4.5

200

4.0

195

3.5

190

3.0 2015

2016

Number of Active Meters

206.5

(In thousands)

2017

2018

2015: 197.0 2016: 199.7

2015

2019

2017: 201.8 2018: 203.7

Kilowatt Hour Sales

4.1

10,700

1,200

10,500

1,100

9,000

1,000

8,300

2015

2016

Miles of Line

9,262

2017

2018

2015: 9,230 2016: 9,068*

2019

2017: 9,141 2018: 9,206

2016

2017

2018

2015: 3.9 2016: 4.1

(In billions)

2019

2017: 3.9 2018: 4.1

900 2015

2016

Peak Load

1,192.2

(In thousands of kilowatts)

2017

2018

2015: 1,162.4 2016: 1,170.2

2019

2017: 1,127.8 2018: 1,162.3

*Due to system true-up.

1,000

450

800

400

400

350

0

300 2015

2016

Total Plant Value

934.5

(In millions of dollars)

2017

2015: 868.5 2016: 899.5

2018

2019

2017: 925.1 2018: 907.2

2015

2016

Total Operating Revenue

425.6

(In millions of dollars)

2017

2018

2015: 402.1 2016: 420.9

2019

2017: 429.7 2018: 434.5

K


2020 VIRTUAL ANNUAL MEETING

Connecting Beyond Electricity The 82nd Cobb EMC Annual Meeting will be held online out of an abundance of caution and concern for our employees’ and members’ well-being during the COVID19 pandemic. We invite you to join us so we can connect with you and share how we’re working to make your electric co-op more innovative, convenient and reliable. When: Saturday, Sept. 19 at 9:30 a.m. Register to save your spot at cobbemc.com/annualmeeting and check back often because we’ll be sharing details and prizes. All members who attend will be entered to win gift cards to local businesses and restaurants, bill credits and grand prizes.

Profile for Cobb EMC

September 2020 – Connections Member Newsletter – Annual Report  

Cobb EMC is committed to superior service, low-cost power and reliability.

September 2020 – Connections Member Newsletter – Annual Report  

Cobb EMC is committed to superior service, low-cost power and reliability.

Profile for cobbemc

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