AND CEO LETTER
FOR 86 YEARS, INLAND POWER HAS BROUGHT ELECTRICITY TO THOSE WHO WERE PASSED OVER WHEN INVESTOROWNED UTILITIES BEGAN BUILDING THEIR INFRASTRUCTURE AT THE BEGINNING OF THE LAST CENTURY.
As electricity needs continue to expand and we learn to navigate government mandates and new technologies, WE FIND OURSELVES ENTERING A
As a result,
experience remain our focus as we strive
Our region continues to see an influx of residents and we are focused on the challenges that come with development and growth. Some critical issues we are confronting include system upgrades and resource adequacy, wildfire risks and vegetation management, mitigating regulatory and legislative mandates on energy policy and maintaining competitive rates. We remain committed to providing our members with reliable, safe and affordable power, while remaining vigilant in addressing these critical issues facing our cooperative.
THE NUMBER OF INLAND POWER MEMBERS CONTINUES TO STEADILY INCREASE. Ten years ago, we served nearly 39,000 members. Today, Inland services almost 46,000 meters in 13 counties within eastern Washington and northern Idaho. That’s an average of 964 new service requests per year, and we are not slowing down. In 2022, almost 1.1 billion kwh were sold and we were able to turn the lights on for 1,400 new residential and commercial services on our lines. This all was completed by only 109 employees.
Resiliency and dependability remain top of mind and importance to Inland Power’s leadership and employees. We continue to make strides on our long-term work
plan, which includes critical updates to substations and other infrastructure improvements. In addition to our annual work plan, IT WAS ANOTHER BANNER YEAR FOR COMPLETING NEW SERVICE REQUESTS AND MANAGING OUR FLEET INVENTORY, while achieving other goals highlighted throughout this annual report.
We are proud to say that Inland’s overall financial health is excellent. This success can be directly related to a good fiscal policy established by Inland’s management and the board. After setting aside the BPA prepayment transaction, total assets are $296 million, long-term debt is $74 million and net margins were $2.28 million in 2022. Your cooperative was also able to return $2.5 million through our CA$HBACK program, formally known as capital credits to the membership in 2022.
The Inland Power board of trustees and employees appreciate your membership and the opportunity to provide energy services to you. WE ARE EXCITED ABOUT THE FUTURE AND LOOK FORWARD TO SERVING ALL OF YOU as we enter this new era of energy.INLAND POWER AND LIGHT
We are actively engaging with regulators and legislators to mitigate the impacts of mandates that could negatively affect our business.
Currently, Inland Power is subjected to three regulatory mandates in the state of Washington - I-937, the Clean Energy Transformation Act (CETA) and “Cap and Invest” to reduce greenhouse gas emissions.
Although our power supply comes from BPA, which is 95 percent carbon-free, the efforts to achieve 100 percent carbon free resources are costly. Inland Power members are charged over $2.4 million annually to comply with the state of Washington regulations and that amount is projected to increase soon.
IN 2022, WE COMMITTED TO PUTTING MORE FOCUS AND RESOURCES TOWARD FIGHTING FOR YOU IN OLYMPIA AND D.C. Our government affairs team is vigorously involved in the legislative process and is building relationships with new lawmakers and strengthening existing relationships. We are also putting focus on working on both sides of the aisle. It is important to
work well with both parties in order to effectively impact change. Still, the battle is arduous and it will take more than just a few Inland employees. OUR STRENGTH IS IN NUMBERS. WE NEED ALL HANDS ON DECK. WE NEED YOU! Inland Power has an opportunity for you to let your voice be heard in our legislative process. We have partnered with Voices for Cooperative Power, which helps us inform our members on key issues impacting your cooperative and provides messaging for you to write, email and call your state and federal leaders. We encourage all our members to get involved. YOUR ENGAGEMENT CAN MAKE A SIGNIFICANT IMPACT.
WANT TO LEARN MORE?
THE REGULATORY AND LEGISLATIVE ENVIRONMENT IN WHICH WE OPERATE IS CONTINUOUSLY EVOLVING. WE ARE COMMITTED TO WORKING WITH POLICYMAKERS TO ENSURE THAT THE POLICIES THEY ENACT PROMOTE A SUSTAINABLE AND AFFORDABLE ENERGY FUTURE
WHILE ENSURING OUR MEMBERS’ INTERESTS ARE PROTECTED.
OUR MISSION IS OUR MEMBERS
Just as neighbors banded together to form cooperatives back in the 1930s to bring electricity to the rural areas, the Community Foundation allows co-op members and organizations today to reach out for worthy causes and work together in helping others. IN 2022, THE INLAND POWER COMMUNITY FOUNDATION WAS ABLE TO SUPPORT GROUPS LIKE ELEVATIONS, HABITAT FOR HUMANITY AND CHESTER ELEMENTARY SCHOOL, JUST TO NAME A FEW. We also funded over 15 scholarships and provided add-on support to nearly 100 4-H and FFA livestock showmen.
As an Inland Power member, you have a unique opportunity to support the Inland Power Community Foundation, which is a program that provides financial support to organizations in our service territory, as well as individual Inland Power members.
For some background, the Operation Round Up program was founded upon the same principle that led to the creation of electric cooperatives over 85 years ago—people helping people. We know that there is great need throughout our service territory, and we wanted to be able to make a larger impact, which is why the Inland Power Community Foundation was formed and the funds from Operation Round Up were incorporated into the Foundation.
Inland Power is also proud to work closely with the Spokane Neighborhood Action Partners (SNAP) to offer energy assistance. In 2022, 511 grants for a total of $246,299 were allotted to Inland Power members through SNAP’s energy assistance program. We are very grateful for our partnership with SNAP and the positive impact we can make on our community together.
We would not be able to give back in this way if not for your generous support. It is your donations that help make this possible. Thank you to all of you who have given to this program.
If you would like to help us make an impact, vist
AS OUR MISSION STATES, OUR MISSION IS OUR MEMBERS, AND WE UNDERSTAND THE IMPORTANCE OF GIVING BACK TO THE COMMUNITIES WE SERVE.
INLAND BY THE NUMBERS
NUMBER OF TRANSFORMERS
NUMBER OF POLES
MILES OF LINE
6 METERS PER MILE OF LINE
3,677 MEMBERS PARTICIPATING IN SOCIAL MEDIA
3,800 MEMBERS ENROLLED IN THE INLAND POWER COMMUNITY FOUNDATION
22,014 MEMBERS ENROLLED IN SMARTHUB
NUMBER OF NEW SERVICE REQUESTS IN 2022
2022 YTD FINANCIAL STATEMENTS
INLAND POWER IS A COOPERATIVE, WHICH MEANS YOU HAVE PARTIAL OWNERSHIP IN YOUR UTILITY.
That means you have a say in how your cooperative is run and share in the profits. In 2022, our revenue outpaced our expenses, which we are extremely proud of. It is our goal to constantly operate our cooperative in a progressive and efficient manner to meet the needs of all our members. After setting aside the BPA Prepayment transaction, total assets are $296 million, long-term debt is $74 million and net margins were $2.28 million in 2022. Your cooperative was also able to return $2.5 million in capital credits to the membership in 2022.
STATEMENTS OF REVENUES & MARGINS
AS WE ALL KNOW, WILDFIRES POSE A SIGNIFICANT RISK TO OUR COMMUNITIES AND INFRASTRUCTURE. OVER THE LAST SEVERAL YEARS, WE HAVE SEEN THE DEVASTATING EFFECTS OF WILDFIRES THROUGHOUT OUR REGION, AND WE KNOW THAT WE CANNOT AFFORD TO LET DOWN OUR GUARD. To mitigate wildfire risk, our board has adopted a wildfire mitigation plan, which includes an extensive vegetation management program to reduce the likelihood of a fire.
Strategic tree trimming and vegetation management reduces the frequency of downed lines causing power outages. Proactive trimming and pruning keep lines clear and allow for more reliability.
If you have dead or dying trees that you are
AS YOU KNOW, THE PACIFIC NORTHWEST’S (PNW) MAIN SOURCE OF POWER COMES FROM OUR HYDROELECTRIC DAMS LOCATED THROUGHOUT
OUR RIVERS. The PNW receives over 85 percent of its renewable energy from our hydroelectric system according to the Northwest Power and Conservation Council. The remaining small percentage of power comes from wind, biomass, nuclear and solar. According to the Bonneville Power Administration (BPA),
the hydropower plants in our dam system convert around 90 percent of falling water into electrical energy. By comparison, a wind turbine has only a 50 percent conversion rate at times of peak wind, and solar only functions when the sun is shining. Therefore, our region’s most dependable, clean and affordable source of power remains to be hydro.
In 2020, Washington state passed the Clean Energy Transformation Act (CETA), which requires all state electric utilities to become carbon-neutral by 2030 and 100 percent carbon-free by 2045. Inland Power understands the importance of this law and is committed to a carbon-free goal. MAINTAINING AND INVESTING IN HYDROELECTRICITY IS KEY TO ACHIEVING THIS MEASURE. WE WILL CONTINUE OUR FOCUS
TO REMAIN VOCAL ABOUT OUR DESPERATE NEED FOR HYDROPOWER DURING BOTH OUR STATE AND FEDERAL LEGISLATIVE INTERACTIONS. Our region cannot solely rely on wind and solar based on the limited power and reliability they provide. We know that to achieve CETA’s carbonfree goal, our hydroelectric dams must stay intact. We encourage our members to get involved and help us in our mission to keep utilities affordable and protect our power supply. TO LEARN MORE ABOUT HYDROPOWER, VISIT INLANDPOWER.COM/HYDROPOWER.
HYDRO IS OUR POWER
ANIMAL 7.8% | 16 MINUTES
EQUIPMENT 16.0% | 33 MINUTES
FIRE 3.3% | 7 MINUTES
LIGHTNING 1.0% | 2 MINUTES
MANMADE 8.1% | 17 MINUTES
PLANNED 10.9% | 22 MINUTES
POWER SUPPLIER 14.5% | 29 MINUTES
SNOW / ICE 10.9% | 22 MINUTES
TREE 7.2% | 15 MINUTES
UNKNOWN 15.5% | 32 MINUTES
WIND 4.8% | 10 MINTUES
OVERALL OUTAGE DURATION AVERAGE: 205 MINUTES
INLAND POWER IS THE LARGEST COOPERATIVE IN WASHINGTON STATE AND SERVES 13 COUNTIES IN EASTERN WASHINGTON AND NORTHERN IDAHO.
Our service territory includes 7,758 miles of line; 5,371 miles are overhead with 2,215 miles being underground and 172 miles of transmission line.
To put that in perspective, if you were to stretch that in a single-file line, it would reach from the northernmost point of Washington state to the southernmost point of South America. Those thousands of miles of line serve almost 46,000 meters, which works out to almost six members per line.
Our growth at Inland Power continues to shine. In 2022, we added nearly 1,343 new residential and commercial services on our lines. As we grow, resource adequacy becomes more of a challenge. As a load following customer of the Bonneville Power Administration (BPA), we work closely with BPA on load forecasts and power supply needs. Due to the cold weather we experienced in December 2022, Inland Power established a new system peak of 306 MW. This is up from the previous peak of 256 MW, which was set in 2017.
IS A FULL BREAKDOWN OF THE LEADING CAUSES OF OUTAGES IN 2022 WE EXPERIENCED THROUGHOUT OUR SERVICE TERRITORY.
In 2022 Inland’s operation and engineering departments focused on these large projects:
• The completion of the Hayford substation voltage regulator replacement. Detected and corrected a manufacturer defect that likely would have resulted in a major outage if left uncorrected.
The start-up of a four-year conversion program of our meter services. This program upgrades meters with new technology improving accuracy and reliability.
Successfully completed our overhead inspection program, which enables us to better forecast future improvements and mitigate any issues related to failures and fire dangers.
• Worked to add a breaker station to the 115kV line serving the Tum Tum substation. Final completion is expected in early 2024 and will have a positive impact on power supplier outages affecting the Tum Tum substation.
• Continuation of Inland Power’s wildfire mitigation plan and our enhanced vegetation management program to reduce the risk of wildfire in our service territory.
NEW SERVICE REQUESTS
Our expansion over the last several years has been exciting and we look forward to continuing our growth. The number of members Inland serves is steadily increasing. Ten years ago, Inland Power served nearly 39,000 meters. Today, we now service almost 46,000 meters in 13 counties within eastern Washington and northern Idaho. That’s an average of 964 new service requests per year, and we are not slowing down.
NEW SERVICE REQUEST TOTALS:
Inland’s fleet must be safe, reliable and able to endure driving in tough, off-road conditions.
Each year we are very diligent in assessing our needs, getting the best value and getting the right equipment for the job. It is very important as well that we replace equipment at the end of useful life to avoid
the breakdowns that impact our employees’ ability to serve our members as scheduled.
Our annual fleet budget ranges between $1.1 to $1.7 million and includes small and large bucket trucks, diggers, excavators, UTVs and various types of service trucks, such as pick-ups, substation trucks, trailers and mechanic trucks.
Inland Power is committed to providing safe, reliable service. From time-to-time events beyond our control create outages. As demand for electricity continues to grow, we recognize the need to upgrade our infrastructure to ensure that we continue meeting our members’ needs reliably. We have invested significantly in upgrading our systems, which include transitioning lines in high-outage areas from overhead to underground. We are also modernizing our substations to ensure we can meet our capacity needs as we experience ongoing growth and as we continue to be subjected to extreme weather events, both hot and cold.