10 Today in Mississippi
September 2016
PRVEPA Contact Information: Columbia: 601-736-2666 Hattiesburg: 601-264-2458
Purvis: 601-794-8051 Wiggins: 601-928-7277
To pay bills or report outages:
855-2PRVEPA (855-277-8372) Visit us online at www.PRVEPA.com
Member owned. Locally operated. That’s the cooperative difference.
President’s Report The same cooperative spirit that created Pearl River Valley Electric Power Association 78 years ago has contributed to another successful year for your B. F. Hudson Jr. Association. President of the Board Our goal remains to of Directors provide high quality electric service at the lowest possible cost in keeping with sound business practices. Your Board of Directors is committed to meeting the needs of our member-owners. Throughout these years of service, we have worked hard to gain the trust and respect of our members—for it is that trust and respect we value most. As your Board, we will continue to work toward maintaining the economic strength and stability of your Association. WHOLESALE POWER COSTS Purchasing wholesale power accounts for nearly 80 percent of our overall cost of providing electric service to members. PRVEPA is a member-owner of South Mississippi Electric Power Association (SME), a generation and transmission cooperative. Being a
member of South Mississippi Electric ensures us of getting our wholesale power delivered on a not-forprofit basis. A large percentage of America’s electric generating facilities are either nearing retirement or facing major modifications required by new environmental regulations. In the coming years, electric utilities across the nation, including South Mississippi Electric and its members, will continue to invest in new sources of generation. Replacing so many facilities with new ones has the potential to add to the cost of providing service to consumers, which makes it a significant topic of concern to us. South Mississippi Electric’s strategy to generate electricity is to use a broad mix of fuels—including coal, gas, nuclear, hydro and other renewable sources—which helps keep costs as low as possible. Recently, SME announced it was looking into opportunities to purchase or produce power generated from a variety of new solar facilities. Several small demonstration projects were completed in 2016. Finding new, cost-effective ways to meet our wholesale power needs is a continuing priority and your PRVEPA Board will be closely watching developments throughout the industry.
ECONOMIC DEVELOPMENT Your Association is very active in promoting economic development for our 12-county service area. We work with state and local organizations, as well as SME, to encourage new and existing businesses to expand where possible, so that additional employment and other economic benefits will come to our area. The most ambitious development project in south Mississippi is a mega-site of more than 2,000 acres just southwest of Hattiesburg, being developed and marketed by the Area Development Partnership. The site is located within PRVEPA’s service territory and we stand ready and able to provide any electric infrastructure required to meet the needs of a large industrial facility interested in moving to our area. Once occupied, this project could provide significant economic benefits to our region in the years to come. CORE BUSINESS Many electric power associations have undertaken various business enterprises other than their primary function of providing electricity to customers. We have studied this matter carefully at different times over the years. Each time your Board of Directors has
SecretaryTreasurer’s Report
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The Association’s records and accounts were audited by Topp, McWhorter, Harvey, PLLC, Certified Public Accountants. The report was complimentary of your General Manager and staff. It also showed the records and accounts in excellent condition and that the Association is in a financially strong condition. The following is from the annual audit dated December 31, 2015: Danny Wilks • Total electric plant increased $5,194,580, bringing the total to $160,004,725. Secretary-Treasurer • Assets total $225,252,636, which reflects an increase of $7,179,560 for the of the Board of Directors year. • The member-owners of Pearl River Valley Electric Power Association have equity of 38.0% in the system. REGULAR PATRONAGE REFUND Your Board of Directors is dedicated to the principal of returning patronage capital to our member-owners— in fact, we were the first electric power association in Mississippi to start paying regular patronage refunds. This year we refunded $1,800,000 to our members. In addition, South Mississippi Electric, our wholesale power provider which is a cooperative owned by PRVEPA and 10 other electric power associations, began returning capital credits this year. Those credits, totaling $728,284.64, will be returned to applicable PRVEPA members, increasing the total amount returned in 2016 to $2,528,284.64. We have now made patronage refunds to our member-owners for 53 years, totaling more than $42 million.
determined that our primary purpose should continue to be furnishing electric service to our members at the lowest possible cost. Furthermore, no activities will be engaged in which will interfere with, or diminish, that purpose. However, we will not close the door on looking at different business activities should opportunities present themselves in the future. ANNUAL MEETING Pearl River Valley is an electric cooperative owned by the consumers it serves. The annual meeting gives members an opportunity to learn about the progress of your Association and to participate in its business plans. We encourage you to be an active, informed member and attend the annual membership meeting. Pearl River Valley has developed a strong membership and a level of service comparable to any utility in the nation. This annual report supports the fact that we continue to operate a financially sound cooperative under the control of its membership. Your Board of Directors remains committed to this tradition. As President of your Association, I am proud to present this report for your consideration.
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Very few 44 98 electric coop589 eratives in the 98 nation can sur49 pass our record 13 11 of paying patron43 29 age refunds to their members. 59 PATRONAGE REFUNDS TO 26 DECEASED AND FORMER MEMBERS 15 In 1988, your Board of Directors started a program where we return the accumulated patronage capital to the estates of deceased members. We have returned more than $12 million through this program, including $786,014 in 2015. We have also recently established a program for former members to receive their patronage capital balances on an accelerated basis. Both programs return members’ capital credits at their current net present value.