Logan County Electric Cooperative Annual Report

Logan County Electric Cooperative

ANNUAL REPORT

Your source of power in rural Logan County

Notice

86

Logan county electric cooperative’s

th

Annual meeting of members Logan County Electric Cooperative will conduct the 2022 annual meeting as a TELETOWNHALL MEETING. Members with current contact information on their electric cooperative account will receive a call at 7 p.m. on June 14 to participate in the annual meeting.

A packet of information about this meeting was mailed to you. It will be referenced during the meeting. If you misplace your packet, please contact the office.

THE PRINCIPLES OF A Suc c e s sf ul electric cooperative

T

he Cooperative Principles are guidelines by which cooperatives put their values into practice. In keeping with tradition, cooperatives believe in the ethical values of honesty, openness, social responsibility, and caring for others.

Worldwide, the cooperative business model functions under the guidelines of the Cooperative Principles: •

Open and Voluntary Membership

•

Democratic Member Control

•

Members’ Economic Participation

•

Autonomy and Independence

•

Education, Training, and Information

•

Cooperation Among Cooperatives

•

Concern for Community

According to these principles, the entire business and affairs of the cooperative are exclusively governed by members and are carried out for the members and the local community.

The articles of incorporation that were first signed in December 1935 established that Logan County Electric Cooperative would follow the cooperative business model. But let’s be honest — principles are just words with little more than sentimental meaning if they are not strategically followed.

To ensure our co-op is following the principles, we have our members surveyed to measure your satisfaction. While our members annually give us among the highest satisfaction marks in the nation, there are two areas about which you expressed some concern: electric rates and energy efficiency information.

Electric rates

The co-op has not increased rates since 2017. As inflation drives up the cost of goods and materials, we have worked to keep our rate flat. The rate our members pay for electricity is below the national average per kilowatt-hours sold. Yet, we are above the national average in service reliability, percentage of equity retired as capital credits, and member satisfaction. We proudly offer our members reliable electricity, money returned as capital credits, and exceptional member service, at a below-average cost.

But we also understand that with costs rising on many other necessities, that an electric bill, while a good value for everything it offers, is still one more item to subtract from income. We value transparency about our rates and conducted a member meeting to talk about the main components of

your electric bill to help our members understand what goes in to providing reliable electricity. If you missed this at the time, you can go to our website and find that information in the December 2021 edition of Ohio Cooperative Living.

Energy efficiency information

JOE WALTZ PRESIDENT/GENERAL MANAGER

Lets talk energy efficiency. Our members told us this is valuable information to them, so we listened. In 2021, the twelve editions of Ohio Cooperative Living contained 21 articles on energy efficiency and solar technology to help you conserve energy. In the October edition, we included a 12-page guide to help our members “Save Energy, Save Money.” Here’s an important tip from that issue: “To achieve a goal you have never achieved before (like lowering your electric bill), you must start doing things you have never done before.” We want to give you the information you need to make changes that will help you be more energy efficient.

We also added information to the efficiency section on our website. Remember, if you did not keep your paper copy of the magazine, you can find the digital publication on our website.

We hope you’ll take the time to look through this information.

Even if you start small, following just one efficiency tip, that can lead to others, and combined, make a big difference in how much energy your home consumes. Keep watching for more efficiency assistance from your cooperative.

Our commitment

The cooperative principles were the foundation that our cooperative was built on. They remain the foundation for how we conduct our business. And they will continue to guide us as we walk into the future. As we continue to follow these principles, we will work to continue providing our members: Above-average reliability, with exceptional member service, at below-average cost.

ABOUT US E s ta bl ished December 14 , 1935 L og a n c oun t y c oop er at i v e p o w er & l igh t a s s oc., inc.

Did you know?

Oct. 21, 1936

1935: 97% of farm owners signed a petition indicating they wanted rural electricity.

The co-op energized its power lines for the first time on Ludlow Road.

It would be interesting to know why 3% said no.

Logan County Electric Cooperative is devoted to providing our members with reliable electric service.

Our members enjoy uninterrupted service

99.98% of the minutes in a year.

Of the 815 electric co-ops in the United States Logan County Electric Co-op is ranked: • 706 in total members served • 771 in total miles of line • 694 in total # of employees

Providing rural Log an C oun t y wit h reliable elec t ric service since 1936.

113 minutes Average service interruption, compared to national average of 209 minutes.

Can such a small co-op provide exceptional service?

The co-op is below the national average of: • Cost per kilowatt/hour sold • Service interruption duration by 96 minutes BUT the co-op is above average • Total percent of equity annually retired as capital credits

The co-op is who we are because we were made by and for this local community

What we do... co-op staff traded in our bucket trucks and computers for paint brushes and rollers to participate in the united way community care day.

This is one of our linemEn, but he definitely isn’t working in logan county. He is at a sister co-op helping restore power to their members after a storm.

You can find co-op staff working in and for the local community

3,179 co-op members contributed to Operation Round Up and provided $20,220.42 in grant money that was given to local community organizations: •

Ridgeway Firefighters

•

Bellefontaine Police Department

•

Logan County Sheriffs Department

•

Benjamin Logan High School

•

Indian Lake FFA

•

Energizing education grants

5 academic scholarships were awarded to local students: •

Connor Rose

•

Kienna Whitman

•

Jacob King

•

Ryan Motzko

•

Sierra Snow

... Proudly serve the local community

1

LUC Planning Commission

2

Logan County Chamber of Commerce

3

Run to Educate

4

Logan County Fair

5

Logan Acres Community Foundation

6

United Way Campaign Committee

7

Chamber of Commerce Golf Outing

8

Logan County Christmas Parade

9

Logan County Education Foundation Career Day

10

Health fair, energy bike, Safety Town, at school

Who does it

DAVE SALMONS

MIKE HICKENBOTTOM

TODD WHITE

FIRST CLASS LINEMAN

FIRST CLASS LINEMAN

FIRST CLASS LINEMAN

Since June 1988 34 years of service

Since January 1991 31 years of service

Since May 1992 30 years of service

MIKE MOOSE

DANIEL ASHCRAFT

TONY WILLIS

SCOTT ROACH

FIRST CLASS LINEMAN

DIRECTOR OF OPERATIONS

VEGETATION MANAGEMENT

DIRECTOR OF ENGINEERING SERVICES

Since March 1998 24 years of service

Since August 2002 20 years of service

Since August 2004 18 years of service

Since January 2006 16 years of service

MASON SHOEMAKER

KRISTEN MCDONALD

TIFFANY STONER

FIRST CLASS LINEMAN

DIRECTOR OF MEMBER SERVICES

VICE PRESIDENT OF ADMINISTRATION AND FINANCE

Since February 2011 11 years of service

Since March 2011 11 years of service

Since August 2011 11 years of service

RYAN SMITH VICE PRESIDENT OF ENGINEERING AND OPERATIONS Since July 2013 9 years of service

& for how long?

ASHLEY OAKLEY

ARIC STOVER

MICHAEL WILSON

KIM KELLY

EXECUTIVE ASSISTANT

FIRST CLASS LINEMAN

DIRECTOR OF COMMUNICATIONS

WORK ORDER CLERK

Since May 2014 8 years of service

Since November 2014 8 years of service

Since January 2015 7 years of service

Since April 2015 7 years of service

DAN CRAIG

AARON NEWLAND

JOE WALTZ

TROY STOCKMASTER

VEGETATION MANAGEMENT

FIRST CLASS LINEMAN

PRESIDENT/GENERAL MANAGER

APPRENTICE LINEMAN

Since August 2015 7 years of service

Since February 2019 3 years of service

Since December 2019 2 years of service

Since January 2021 1 year of service

JODI DEARDURFF

ANDREA REID

CAMERON EPP

GREG HUFFMAN

MEMBER SERVICES REPRESENTATIVE

MEMBER SERVICES REPRESENTATIVE

GENERAL SERVICE TECHNICIAN

VEGETATION MANAGEMENT

Since April 2021 1 year of service

Since April 2021 1 year of service

Since April 2021 1 year of service

Since November 2021 1 year of service

Board of Trustees A role only members can play Logan County Electric Cooperative was formed in 1935 by the local community, owned by the members who signed up for service, operated for the members on a not-for-profit basis, and governed by members serving on the board of trustees: local control of the locally owned electric cooperative. It was the model used to form the co-op, and it is the model that is still followed today.

1

David Campbell

2

Jerry Fry

3

Jim Rice

4

Janet Blank

5

Doug Comer

6

Scott Hall

7

Warren Taylor

1

3

2

4

6

5

7

2022 TRUS TEE CANDIDAT E S

Election results will be announced during the annual meeting.

Jerry Cline

Rod Hager

District 5 (Pleasant, Miami, Union, and Liberty townships)

District 5 (Pleasant, Miami, Union, and Liberty townships)

Jerry is a retired plant safety leader from Honda’s Ohio Transmission Manufacturing.

Rod is a retired high school math teacher.

Scott Hall

Deb Anderson

District 6 (Village of Huntsville)

District 6 (Village of Huntsville)

Scott is a retired plant manager from Ohio Ready Mix in Marysville.

Deb works as a wife, mother, grandmother, and an IT project manager in banking and healthcare.

Warren Taylor

Kevin Barth

District 7 (Washington and Harrison townships)

District 7 (Washington and Harrison townships)

Warren is a retired farmer and employee at D.A.B. Industries.

Kevin is a purchasing manager within Honda North American Indirect Procurement and is supporting capital and expense investment projects at the Ohio Transmission Plant.

THE NOMINATING COMMITTEE The nominating committee is made up of members who are affirmed during the annual meeting and tasked with interviewing prospective trustee candidates. The committee selects not more than two candidates to be placed on the trustee election ballot.

While other electric co-ops often have unopposed elections, our nominating committee faces tough decisions because there are multiple worthy candidates from each district. This is true because the members of our co-op are so engaged and willing to serve!

D i st ric t 1 – K ev i n Kn ief

D is tr ic t 4 – Jay Ac k le y

Dist r ic t 6 – T im Je nk ins

D i st ric t 2 – Sc o t t R is n er

D is tr ic t 5 – Gr e g K r ishe r

Dist r ic t 7 – Jane t De t r ic k

D i st ric t 3 – D av i d Eva n s

INDEPENDENT AUDITOR’S REPORT

CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2021 ASSETS

2021

2020

2019

2018

2017

ELECTRIC PLANT: $39,959,154

$38,697,844

$37,839,305

$37,460,099

$36,381,236

1,062,848

735,368

343,179

215,637

551,220

41,022,002

39,433,212

38,182,484

37,675,736

36,932,456

Less: provision for accumulated depreciation

11,035,961

10,692,143

10,113,039

9,824,586

9,213,841

Net electric plant

29,986,041

28,741,069

28,069,445

27,851,150

27,718,615

92,902

185,803

278,705

371,607

464,508

726,442

726,442

726,492

8,976,388

9,130,552

8,998,471

9,467,303

8,661,382

32,756

48,479

62,892

6,249

23,456

9,828,488

10,091,276

10,066,560

9,845,159

9,149,346

21,854

29,213

6,007

13,216

20,425

1,203,702

624,890

1,133,096

891,960

819,716

1,899,347

1,881,419

1,895,150

1,842,714

1,870,558

214,457

183,507

129,439

107,106

110,762

2,339

2,340

2,340

4,579

2,340

-

700

0

0

10,599

13,233

23,617

175,650

177,561

187,399

3,333,078

2,716,473

3,335,675

3,023,920

3,001,374

$43,169,461

$41,578,031

$41,477,687

$40,733,445

$39,889,760

In service, at cost Construction work in progress

OTHER ASSETS AND INVESTMENTS: Retirement security plan prepayment Investments in associated organizations Patronage capital from associated organizations

Deferred medical expenses Total other assets and investments DEFERRED CHARGES CURRENT ASSETS: Cash and cash equivalents Accounts receivable, trade, net of allowance for uncollectible accounts Materials and supplies Interest receivable Notes receivable Other current assets Total current assets Total assets

Auditor’s Responsibility and Opinion We have audited the consolidated financial statements of Logan County Electric Cooperative, Inc. and Subsidiary (the Cooperative), which comprise the consolidated balance sheets as of December 31, 2021, the related consolidated statements of revenue, expense and patronage capital and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Cooperative as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

EQUITIES AND LIABILITIES 2021

2020

2019

2018

2017

EQUITY: Patronage capital

$21,332,943

$20,820,693

$20,136,004

$19,603,675

$18,076,135

681,768

646,228

610,138

549,723

511,031

22,014,711

21,466,921

20,746,142

20,153,398

18,587,166

CFC mortgage notes, less current portion

4,157,117

4,639,398

5,115,188

5,584,713

6,048,416

FFB mortgage notes, less current portion

13,278,519

11,865,127

12,277,596

11,883,826

12,144,439

Total long-term debt

17,435,636

16,504,525

17,392,784

17,468,539

8,192,855

966,000

893,000

870,400

847,400

826,400

1,301,024

1,328,141

1,197,703

1,182,103

1,209,176

Consumer deposits

134,235

132,185

140,315

129,705

132,390

Accrued taxes

616,489

624,058

579,735

569,650

555,065

Deferred credits

437,621

375,786

298,678

220,833

211,726

Other current liabilities

263,745

253,415

251,930

161,817

165,078

3,719,114

3,606,585

3,338,761

3,111,508

3,099,835

21,154,750

20,111,110

20,731,545

20,580,047

21,302,594

$43,169,461

$41,578,031

$41,477,687

$40,733,445

$39,889,760

Other equities Total equity LONG-TERM DEBT:

CURRENT LIABILITIES: Current maturities of mortgage notes Accounts payable

Total current liabilities Total liabilities Total equities and liabilities

Unclaimed capital credits Logan County Electric Cooperative operates as a not-for-profit electric cooperative. The membership, who own the co-op, provide the financial capital that sustains the administration and operations of their electric cooperative.

At the end of each fiscal year, all revenue in excess of operating costs and expenses is paid by credit to a capital account for each member in proportion to the capital they invested.

Notification is sent to the members of the amount of capital credited to their account.

The cooperative board of trustees then bears the responsibility to balance the financial stability of the co-op with the co-op’s responsibility to retire the capital credited to each member.

As the board determines that the financial condition of the co-op is stable, a portion of the capital credits is returned to the members in the form of a check.

There are capital credits checks that have been paid to members but are unclaimed. A list of individuals and businesses that have unclaimed capital credits can be found on the co-op’s website, https://logancounty.coop, or by calling the office at 937-592-4781.

If these unclaimed capital credits are not claimed within the next 60 days, the money will be reallocated among our current membership.

CONTACT US LOGAN COUNTY ELECTRIC COOPERATIVE OFFICE 1587 County Road 32 N. Bellefontaine, OH 43311 PHONE 937-592-4781 WEBSITE www.logancounty.coop SECURE AUTOMATED PAYMENT 844-219-1219 OUTAGE HOTLINE 855-592-4781 BUSINESS HOURS — LOBBY HOURS 8 a.m.–5 p.m.

8:30 a.m.–5 p.m.