Why We Work Safe 2021 Annual Report
Jim Gossett, CEO David G. Onken, Board President
There are additional benefits to working safe that effect the individual and the cooperative. Procedures that are perfected to prevent injury and property damage also increase productivity. Working safely translates to efficiencies in all aspects of our work. Like the ties between power generation to transmission lines to distribution co-ops, a safe work environment ties to better health, efficiency, productivity and affordable rates. It also leads to reliability of your electric service. In 2021, RVEC maintained our commitment to reliability with a 99.9815% availability of power. While not quite up to numbers from previous years, the ultimate goal of 99.999% is well within reach. We know that you count on us to balance safety and cost. This year, we did just that. Our balance sheet is as strong as ever.
“It’s not that the work is dangerous, but that it is unforgiving” -Phil Irwin, CEO Federated Insurance Exchange. This Annual Report, Why We Work Safe, features photographs of Raccoon Valley Electric Cooperative employees showing some of the reasons they work safe. It is gratifying to see the sense of family and play in their answers. We invite you to take a few minutes to identify your “Why I Work Safe” – at work and at RVEChome.invests in Personal Protective Equipment (PPE), safety training and modern tools and equipment, because safety truly is job ONE. Naturally, we want to prevent accidents of all kinds in the workplace, not only in the field, but in the shops and office.
Member-owners are refunded their patronage on a shorter timeline and have not seen a rate increase since late 2016.
RVEC is a not-for-profit rural electric distribution cooperative, owned by you, the members we serve. For more than 80 years, our member-owners have been able to count on us to keep their power on. Through this lens, we evaluate developments in energy sources and plans for the future.
1 Why We Work Safe
Our mission is to safely provide, reliable, affordable and responsible service while being a leader in our community’s prosperity and growth.
Message To Our Member-Owners
An “All-of-the-Above” approach to generation, including legacy carbon-based resources and nuclear, is crucial to keeping the lights on. There is an evolution to renewables. Balancing the desire for less emissions with the critical need for dependability in a measured, thoughtful approach can allow RVEC to continue to provide reliable, affordable and responsible energy.
RVEC member-owners rely on us to provide electricity even when the sun is not shining, the wind is not blowing and cold temperatures limit the use of battery storage dependability.
Why We Work Safe 2 District 6 Jeff Cranston District 5 Mark Ludwig District 4 David Onken District 3 Adam Handlos District 1 Steve Seidl District 2 Steve Schable Directors
This year, Corn Belt Power Cooperative will celebrate the 75th anniversary of filing the organization’s articles of incorporation. This year’s theme “Powerfully Present,” in part, embraces our history and the work we do for the betterment of future generations.
Why We Work Safe
Just like our founders did 75 years ago on August 28, 1947, our job is to lay groundwork for future generations of cooperative members. However, while doing that, we must also engage and respond to today’s membership with powerful presence. 2021, much like 2020, was full of challenges.
Corn Belt Power Cooperative Report
Purpose: Corn Belt Power Cooperative enhances the quality of life for members, employees and communities.
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Ken Kuyper Executive Vice President and General Manager David Onken BoardPresident,ofDirectors
Values: Integrity, Accountability, Commitment, Teamwork.
Mission: Responsibly provide reliable, safe and affordable electricity. Support member cooperatives’ success. Enhance employees effectiveness. Improve communities’ vitality.
In February, due to historic, prolonged low temperatures, we witnessed our firstever energy emergency alert Level 3. Utilities across the Midwest, including Corn Belt Power Cooperative, implemented load control measures and curtailments to some accounts on Feb. 15 and 16. Southwest Power Pool (SPP) ordered these load curtailments, leaving Corn Belt Power and its member-cooperatives little time to act. This unprecedented event raises many questions about the future of power generation across the United States. Corn Belt Power continues to refine its processes to help mitigate future energy emergency alerts. Furthermore, we are working with our industry partners, including SPP, to address root causes of the event. Corn Belt Power remains strong financially. In 2021, we received another “A” rating from our ratings agencies. Again, we were able to keep rates stable, while also returning $5.14 million in our annual quick roll to members. Furthermore, in December, Basin Electric Power Cooperative, N.D., returned $30 million to members. Corn Belt Power returned our $2.1 million share to our member-cooperatives. These accomplishments are indicative of strong financial metrics and bode well for future rate stability. Our membership in the SPP regional market continues to produce positive economic results. We aggressively continue upgrading and rebuilding our electric system as a byproduct of thatWerelationship.wouldlike to thank our current Corn Belt Power board of directors and employees. The board’s flexibility and decision-making and our employees’ steadfast adherence to Corn Belt Power’s mission and values give powerful presence to the way we serve our members and communities.
speakingto“RVECandIowa’sElectricCo-opsrepresenttheirmembershipwelltheIowaLegislature.WeknowwhenwetalktoRVEC,theyarefortheirmembers,”statedRepresentativeBrianBest.
Legislative Summary
Why We Work Safe 4
SF 2367 & SF 2325 – Eliminating a Million Dollar Tax Burden on Cooperatives
The tax levied on electric co-ops had jumped to over a-quarter-of-a-million dollars annually.
Programs were moved to the Iowa Economic Development Authority, concentrating on energy efficiency and advanced technologies. The tax on utilities to fund these efforts will sunset in 2023. This means a savings to Iowa RECs and their members of approximately $750,000 annually.
HF 2317 – Reducing the Tax Burden on Member-Consumers
During a 2018 overhaul of the Iowa tax code, a bill passed to place a tax on “digital goods” sales similar to how “brick and mortar” sales are handled. Some businesses and most non-profit organizations are exempt from this tax, including investor-owned utilities (IOUs). Unfortunately, this exemption for “digital goods” tax was not authorized for.
Iowa’s electric cooperatives supported the historic income tax reform package that was signed into law. RVEC advocated to exempt cash-rent to retired farmers and pension payments to retired employees from the State income tax. This benefit will encourage more retirees to stay active in their rural economy which is a win-win for the community and the taxpayer.Asaresult of the efforts of RVEC directors, employees and member-owners, we came out of this legislative session stronger than when it began. Legislators know we are involved, educated and friendly advocates. While we are pleased with our successes this session, we will continue to engage with legislators, deliver our message and work hard on behalf of our member-owners.
With the passage and signing of SF 2367 into law, Iowa’s electric co-ops are now treated equally with the IOUs. With the passage of SF 2325, is now law, Iowa co-ops will no longer bear the burden of a special “energy tax” first implemented in 1990. A tax levied against energy utilities went to the Iowa Energy Center to fund projects that did not necessarily serve the utility customer or member-owner.
The 2022 Legislative Session ended May 25th. RVEC and our Iowa Rural Power advocates engaged legislators on several bills impacting our core mission. At a time of high inflation, supply chain constraints and a “tightening of the belt” on checkbook RVEC is working hard to make sure your electric bill remains a manageable part of your family budget.
Kyra
Since 1958, Iowa’s electric cooperatives have sponsored high school students for visits to their U.S. congressional delegations, energy and grassroots government education sessions and sightseeing in Washington. Independent judges for RVEC selected Cade Schable as the recipient for a $1,000 scholarship. RVEC, along with Basin Electric Power Cooperative, awarded the scholarship to Schable. Cade attends DMACC and will be certified in the GM Automotive Serviced Education program. Congratulations, Cade! Corn Belt Power Cooperative, Humboldt, power supplier to RVEC, along with Basin Electric Power Cooperative, Bismarck, N.D. awarded a $1,000 scholarship to Heather Kennebeck. Kennebeck will attend University of Iowa to study Speech and Hearing Sciences.
Congratulations, Heather!
Each year in June, this week-long leadership development program provides high school students opportunities to learn first hand about government, the electric cooperative business model and today’s pressing issues in the energy industry. Students met their elected representatives in the U.S. House and Senate, toured historic sites and ran their very own Snack Cooperative.
In addition to taking in the sights of the nation’s capital, all the state groups convened for the Rural Electric Youth Day, sponsored by NRECA, to learn from public figures and other inspirational speakers. This year’s Youth Day agenda included Mike Schlappi, a four-time Paralympic Medalist and two-time world wheelchair Basketball champion. Schlappi shares his inspiring message for every American, young or old: “Just because you can’t stand up, doesn’t mean you can’t stand out.”
5 Why We Work Safe Kyra
Youth Tour
Basin Scholarship
CadeWoltermanSchable
Heather Kennebeck
Wolterman, a student from Kuemper Catholic School, participated in the National Electric Cooperative Youth Tour of Washington, D.C., sponsored by RVEC. She spent June 19-24 in Washington, D.C., with 33 other Iowa student leaders.
Kyra stated she had the experience of a lifetime. “The Youth Tour is one of the best experiences I have ever had!”
Why We Work Safe 6 2021 Operating Expenses Meters Billed 2,761 Miles of Line 1,437 Meters per Mile of Line ............................................................... 1.92 Total Assets.................................................................... $42,311,744 Net Investment in Plant ................................................. $27,836,038 Total Assets per Member $20,148 Total kWhs Purchased 137,503,040 Total kWhs Used by Members 133,825,623 HOW YOUR DOLLAR WAS SPENT: PurchasedPower 68¢ &MaintenanceOperations 8¢ LongInterestTerm 6¢ Depreciation 9¢ Marketing, Administrative, Energy Efficiency, Billing 9¢ 2021 Statistical Highlights
7 Why We Work Safe DEC. 31, 2020 DEC. 31, 2021 WHAT WE OWN (ASSETS) TOTAL VALUE OF UTILITY PLANT $ 39,244,194 $ 40,431,104 LESS: Accumulated Depreciation $ 11,516,704 $ 12,595,066 NET VALUE OF UTILITY PLANT $ 27,727,490 $ 27,836,038 Cash in Bank $ 1,358,373 $ 1,074,902 Temporary Cash Investments 7,279 7,283 Accounts Receivable 1,390,249 1,363,407 Material Inventory 449,690 706,765 Other Assets & Long Term Invest. 852,203 1,016,911 Investments in Associated Org. 7,943,284 8,254,704 Investments - CFC Certificates 376,801 376,801 Development Loans & Investments 1,047,916 1,111,478 Deferred Debits 324,948 563,455 TOTAL ASSETS $ 41,478,233 $ 42,311,744 WHAT WE OWE (LIABILITIES) Consumers’ Deposits $ 22,925 $ 23,232 Accounts Payable 887,136 725,476 Other Accrued Liabilities 658,356 673,536 Deferred Credits & Non-Current Liab. 602,985 601,777 Development Grants 809,098 809,098 CFC Mortgage and Notes 20,216,891 20,311,350 TOTAL LIABILITIES $ 23,197,391 $ 23,144,469 NET WORTH Deferred Patronage $ 8,213,789 $ 8,899,802 Margins - Current 1,560,264 1,458,157 Other Equities 8,506,789 8,809,316 TOTAL NET WORTH $ 18,280,842 $ 19,167,275 TOTAL LIABILITIES & NET WORTH $ 41,478,233 $ 42,311,744 Balance Sheet
DEC. 31, 2020 DEC. 31, 2021 ELECTRIC REVENUE Residential and Farm $ 6,507,329 $ 6,392,830 Small Commercial and Ag. 1,855,657 1,826,191 Large Commercial 4,715,824 5,988,497 Highway Lighting 6,165 5,889 Irrigation 21,939 18,894 Sales for Resale 401,964 406,734 Other Electric Revenue 33,063 35,107 TOTAL ELECTRIC REVENUE $ 13,541,941 $ 14,674,142 Purchased Power $ 8,936,349 $ 9,745,665 Operation & Maintenance 1,062,605 1,166,405 Consumer Accounting 132,034 151,660 Sales 56,944 99,494 Energy Cons. & Information Exp. 71,838 83,519 Administrative & General Expense 692,277 914,150 Depreciation 1,175,711 1,204,663 Interest on Short & Long Term Debt 877,843 878,708 Misc. Deductions & Donations 14,804 21,237 TOTAL EXPENSES $ 13,020,405 $ 14,265,501 ELECTRIC MARGINS $ 521,536 $ 408,641 OTHER INCOME Interest $ 45,990 $ 35,089 Corn Belt & Basin Patronage 783,389 730,866 Other Patronage 134,481 115,085 Resale Sales, Wild Blue & Visionary 39,870 155,253 Extraordinary Income (Expense) 35,000 13,222 TOTAL OTHER INCOME $ 1,038,730 $ 1,049,515 TOTAL MARGINS $ 1,560,266 $ 1,458,156 Why We Work Safe 8 Statement of Revenue and Earnings
9 Why We Work Safe His job is dangerous enough. When you see utility crews at work, slow down and move over. You have the power to protect a life. KidsGRAND 2 4YOUButRETIREMENTFROMYEARSFeetintheairrightnowit’si’Mworriedabout.35 00773_IAEC_MoveOver_Ads_quarter _v04.indd 3 6/6/19 4:04 PM
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Working For You
Raccoon Valley Electric Cooperative serves 2,761 meters through 1,437 miles of in nine counties. The Cooperative headquarters is in Glidden, Iowa, with an outpost in Sac City, Iowa. Currently, RVEC has 18 employees and is governed by a seven-member Board of Directors which represents each of the Cooperative’s The are nominated by the Nominating Committee and are elected by the membership.
Why We Work Safe 10 Brady Boell, Director of Safety & Member Services Ryan Galloway, Line Foreman Jim Gossett, Chief Executive Officer Keith Greving, Lead Lineman Kevin Greving, First Class Lineman Eugene Handlos, Chief Financial Officer Jill Hannasch, Communicator Joel Henely, 1,000 Hour Apprentice Lineman Brian Heun, First Class Lineman Morgan Kramer, Customer Service Representative Chad Lankford, Meter Technician Alicia Lohr, Accounting & HR Specialist Blake McAlister, Groundman Mitch McKeever, Operations Superintendent Jack Scanlan, Line Superintendent Matt Schwarzkopf, First Class Lineman Terry Vauble, Line Foreman Adam Wittrock, First Class Lineman
28725 Highway 30 • Glidden, IA 51443 Raccoon Valley Electric Cooperative www.rvec.coop
