Currents-July 2020

JULY 2020

Suwannee Valley

CURRENTS

INSIDE: MONEY MATTERS Learn how SVEC stays financially strong NOT SO DISTANT SHORES Enjoy Florida’s hidden beaches while avoiding the crowd AROUND THE COMMUNITY Operation Round Up continues to bolster local schools

CEO’S MESSAGE

Suwannee Valley

CURRENTS July 2020

Michael S. McWaters Executive V.P./CEO

Suwannee Valley Currents is a monthly newsletter published by Suwannee Valley Electric Cooperative, © 2020. It is distributed without charge to all consumermembers of the cooperative.

Great expectations What do you expect from your cooperative? It’s a question we regularly ask ourselves and like to ask our consumer-members when we get the chance.

Because the co-op belongs to those we serve, we hold ourselves to a higher standard than the average business. You probably don’t expect the store where you do your grocery shopping to send you their financial statements each year.

But as a an owner of this cooperative, you do expect that transparency from SVEC. To some, that might be a burden or a hassle. But at SVEC, each and every one of us takes pride in bringing an essential service to our neighbors and running this cooperative in a way our members would approve of. After all, we are members ourselves. We are not here to turn a profit or pay dividends to far-off shareholders. We are here solely to bring you safe and reliable electric service at a price you can afford.

That dedication extends to how we manage the money our members entrust to us. While being a good steward of that money is a responsibility of every employee, for those in our finance and accounting group, it’s the very reason they come to work each day.

In this newsletter, you can read about the work they do and just how important it is to keep our cooperative running. Find out where the money SVEC uses to build new infrastructure comes from — spoiler alert: it isn’t just your rates. Learn how we make financial plans for the future, how capital credits work and more.

Speaking of capital credits, we are excited to retire about $1.3 million back to our members this year, bringing the total capital credits returned to members over the life of the cooperative to $15.9 million. This is yet another indicator of the strong financial footing our cooperative is on and the good work being done by all our employees to manage expenses.

We aren’t the only ones giving something back to our community, though.

Since SVEC launched Operation Round Up, the participation of our members has been incredible, and it is truly making a difference for kids in our local schools. So far this year, the program has approved 112 grants and awarded more than $60,000 for deserving projects. Learn even more about what Operation Round Up has been able to achieve since its inception in this newsletter.

Finally, as our state continues to battle the COVID-19 pandemic, SVEC has stepped up to partner with the United Way of Suwannee Valley to help those who may be struggling. We joined United Way as a sponsor of its COVID-19 Relief Fund, which directly supports local community resources, and SVEC employees donated $1,000 of their own money to the fund.

These are just a few of the ways we are always working to live up to the expectations our consumer-members have for their cooperative. It is a privilege to meet those expectations every day, and we will continue working to exceed them in bigger and better ways. 

2 | July 2020

WE BELONG TO THOSE WE SERVE Business Office: 800-447-4509 11340 100th St. Live Oak, FL 32060 Lobby Hours: 8 a.m.-4:30 p.m., Monday-Friday Drive-thru Kiosk Open 24 Hours 24/7 Power Outage Reporting 800-752-0025 svec-coop.com facebook.com/sveccoop @SVEC_COOP_FL Instagram.com/sveccoop SVEC is an equal opportunity provider and employer.

On the cover: SVEC’s Chief Financial Officer Christine Moor leads the finance and accounting group to keep the cooperative strong.

See story, Page 4.

Suwannee Valley Currents

DON’T FALL PREY TO THESE SCAMS SVEC returns Scams are a growing threat, with some scammers even impersonating Suwannee Valley Electric Cooperative to trick victims. Protect yourself by staying aware of the most common strategies.

• Pay-Now-or-Else Scheme — The scammer calls to tell you power will be cut off that day, maybe even within the hour, if you don’t pay your bill immediately. SVEC will never threaten to cut off service instantly for members who have delinquent accounts. We will send out notices well in advance, never a single warning.

• Personal Information Requests — Someone impersonating SVEC calls asking for your Social Security number, password or credit card, and other personal information. The cooperative will never call members to ask for this type of information.

• Pay-Over-the-Phone Demand — Someone calls and asks you to pay your bill over the phone with a prepaid debit card or your personal bank card.

Suwannee Valley Currents

SVEC will never demand payment over the phone and will not ask members to pay with prepaid debit cards.

• In-Person Visits — You receive a call or visit from someone offering a service on behalf of SVEC or asking for your personal information or payment.

SVEC employees will never come to your home or call to promote a service from the cooperative. Remember that all SVEC employees have a cooperative photo ID card if you need to confirm someone really works for us.

• False Numbers — Some scammers can even make an SVEC number appear on your caller ID. Just because a number looks local doesn’t mean the call is coming from a cooperative employee.

If you suspect you are on the phone with a scammer or that one is at your door, hang up or close the door and call SVEC’s Member Service Department at 800-447-4509.

$1.3 million in capital credits

SVEC operates at cost, collecting just enough money to run and expand the cooperative. That money is used to cover expenses — such as those associated with poles, wires, trucks and qualified staff — to keep the electricity flowing.

At the end of the year, revenue is often more than expenses. Most utilities pocket leftover money as profit, but SVEC allocates — or sets aside — that money for our consumer-members as “capital credits.” When it’s financially safe to do so, we retire — or return — them to members.

In light of the continued financial strength and sound management of the cooperative, SVEC’s board of trustees elected to retire about $1.3 million in capital credits this year, bringing the total amount of capital credits returned to consumer-members over the life of the cooperative to $15.9 million.

July 2020 | 3

MONEY MATTERS

Finance and accounting group helps keep SVEC strong All SVEC employees are responsible for being continuously mindful of how consumer-members’ money is being spent. This is especially true for the finance and accounting group, which is dedicated to keeping the cooperative on firm economic ground.

The group keeps an eye on SVEC’s expenditures and manages the co-op’s revenues, loan funds, cash and warehouse operations.

LENDING HANDS

“We are a very capital-intensive industry,” says Chief Financial Officer Christine Moor. “It takes a lot of physical materials, and we have to build a whole lot of infrastructure to get power to our members.”

60% DEBT

4 | July 2020

To help pay for that infrastructure, SVEC maintains relationships with three lenders: USDA’s Rural Utility Services (RUS), Cooperative Finance Corp. and CoBank. Their loans provide the majority of the cooperative’s funding — about 60%. The other 40% comes from consumer-members in the form of bill payments.

Some people might be surprised to learn that so much of the cooperative’s funds at any given time come from loans.

But according to Moor, that isn’t unusual for the electric industry.

“It’s not just cooperatives. I’d say most utilities have a similar structure,” she says. “We could have zero debt, but our rates would have to be very high to compensate. So it’s to our benefit and to the benefit of our consumer-members to keep that debt piece there.”

Loans make it possible to invest in large-scale projects, like a new substation or a systemwide upgrade, without requiring members to pay the entire cost up front. Instead, those expenses are spread out over a 30-year period, keeping electric rates affordable.

It also ensures that members are only paying for the service and system improvements that they use. If today’s members were asked to pay for every improvement to the system with their rates, they would also be paying for the service members will enjoy 30 years down the road. “This way, the members who benefit from an investment are the ones paying for it,” Moor says.

Sources of SVEC’s Financing

40%

EQUITY

Suwannee Valley Currents

A ROAD MAP

THE ROAD TO FINANCIAL STRENGTH

Thinking decades ahead requires careful planning. Accordingly, the cooperative regularly updates its long-term financial plan to meet the organization’s evolving goals. Some of the plan’s metrics are set by lenders while others are dictated

by SVEC’s board of trustees.

“Our lenders want to know that we’ll be able to repay them,” says Moor. “So we are required to maintain several financial ratios at or above specified minimums.”

One such ratio is the Times Interest Earned Ratio (TIER). TIER is a measure of SVEC’s ability to generate margins (revenues minus total expenses) sufficient to cover interest expenses on long-term debt.

Meanwhile, the board of trustees wants the security of knowing that in the event of an emergency, like a hurricane, SVEC has lines of credit that will provide quick access to the funds needed to recover. Ultimately, the financial plan provides a guide for staying within budget and a safe pathway forward.

Our annual operating and capital budgets must align with our long-term financial plan,” Moor says.

“If they do, we believe our expenditures are at an appropriate level to move us in the right direction.

As required in the cooperative’s Bylaws, the board also causes the cooperative to undergo a full independent audit of the co-op’s accounts, books and financial condition as of the end of every fiscal year. SVEC always receives clean audits with the highest assurance from auditors that the cooperative’s financial statements are accurate. 

Did you know?

Suwannee Valley Currents

ANNUAL AUDITS CONTROLLING COSTS CORRECT BALANCE OF DEBT & EQUITY

ACCESS TO FUNDS

BUDGETING

LONG-TERM PLANNING

One of SVEC’s five Core Values is Economic Viability. The co-op operates under a board-approved Financial Management Plan and maintains its financial strength by controlling costs and adopting technologies that increase efficiency. Our employees strive to be good stewards of the resources entrusted to us by our consumer-members.

July 2020 | 5

When releasing deep-water fish, the right tools mean everything

By Fish and Wildlife Conservation Commission It’s the time of year to fish for snapper and grouper, and you can continue your role as a conservationist by looking out for signs of barotrauma when releasing deep-water fish.

Barotrauma is a condition in many fish caught at depths greater than 50 feet. It comes from pressure changes during the hooked fish’s ascent, which lead to an expansion of gases in the swim bladder. Signs of barotrauma include the stomach coming out of the mouth, bloated belly, distended intestines and bulging eyes.

Barotrauma can cause damage to internal organs and can be fatal unless sportsmen take appropriate steps to save the affected fish. It’s important to know in advance what tools are available and how to use them to help fish return to the bottom and increase their chances of survival.

Descending devices – These take fish back down to a depth where increased pressure from the water will recompress swim bladder gases. They fall into three categories: mouth clamps, inverted hooks and fish elevators. With proper setup and practice, descending devices can be easy to use and make a big impact on the survival of released fish.

Venting tools – These sharpened, hollow instruments treat barotrauma by releasing expanded gas from the swim bladder, enabling the fish to swim back down. Please note, items such as fillet knives, ice picks, screwdrivers and gaffs are not venting tools and should never be used to vent a fish. Venting a fish incorrectly may do more harm than good.

To properly vent, lay the fish on its side on a cool, wet surface.

Venting tools should be inserted 6 | July 2020

Pumpkin whoopee pie ice cream sandwiches

1-2 inches behind the base of the pectoral fin, under a scale, at a 45-degree angle, just deep enough to release trapped gases. Never insert venting tools into a fish’s belly or back. Also stay away from a stomach that is protruding from the mouth.

You should only use descending devices and venting tools when fish show one or more signs of barotrauma and cannot swim back down on their own. It is essential to work quickly when using these tools and return the fish to the water as soon as possible. Anglers should choose the device and method they are most comfortable with and that best fits the situation.

Anglers should also use proper gear when fishing for reef fish.

Non-stainless steel inline (nonoffset) circle hooks with the barb crimped down often hook in the mouth rather than the gut, making it easier to release fish. Dehooking tools also help in releasing fish so you can get back to fishing for that big one in no time.

To learn more about proper fish handling techniques, visit MyFWC. com/FishHandling. Check out our descending devices playlist to learn more about barotrauma, descending devices and venting tools. 

3 1 1 1 2 1 1 2 1 3 2 1/2

cups flour teaspoon salt teaspoon baking powder teaspoon baking soda tablespoons cinnamon teaspoon ground ginger teaspoon ground cloves cups packed dark brown sugar cup vegetable oil cups pure pumpkin puree large eggs teaspoon pure vanilla

Suggested ice cream flavors: pumpkin, French vanilla, butter pecan, cinnamon or dark chocolate.

Heat oven to 350 F. Line two baking sheets with parchment paper. In a large bowl, whisk the flour, salt, baking powder, baking soda, cinnamon, ginger and cloves. Set aside. In another bowl, whisk the brown sugar and oil until well combined. Add the pumpkin puree and whisk to combine. Add eggs and vanilla until well mixed. Add the flour mixture 1/2 cup at a time, and stir until combined. In 1/3-cup scoops, put the cookie dough on the baking sheets. They will spread a little, so leave some space between them. Bake for 11-13 minutes or until a toothpick comes out clean.

Remove from the oven and let cool before removing from the pan. Once cooled, wrap them individually and freeze. When ready to serve, take one cookie and place a big scoop of your favorite ice cream on it. Then, top with another cookie and enjoy.  Suwannee Valley Currents

Explore Florida’s hidden beaches Ready to get back to the beach but don’t want to navigate the crowds?

It might surprise you to learn that Florida still has miles of out-of-theway beaches where you can enjoy some sun and sand in a more peaceful setting than the usual hot spots. If you’re looking for a secluded beach getaway, consider visiting these hidden gems.

ST. GEORGE ISLAND

Located just off North Florida’s Gulf Coast, the 28-mile St. George Island is one of the last inhabited yet unspoiled barrier islands in Florida.

It’s a serene, pet-friendly, vacation paradise.

The island consistently rates as one of the top beaches in the U.S., with uncrowded expanses for sunning and shelling, clear Gulf waters for swimming and fishing, and pristine marshes for wildlife viewing.

St. George Island is protected by low-density zoning and strict building codes. This makes the island a tranquil beach community with no high rises or chain stores. Visitors can rent a quaint beach cottage, a multistory luxury beach home or rooms at one of the two island hotels or inns.

DRY TORTUGAS NATIONAL PARK

Located 70 miles west of Key West across open water, this most-remote national park is a true escape, accessible only by ferry or seaplane. But you won’t miss civilization. The Dry Tortugas are like something you’d conjure up in a dream.

The park is dominated by Fort Jefferson, the largest brick building in the Western Hemisphere.

Surrounded by impossibly crystalline, turquoise-hued waters, its beaches are lush with sugary sand that begs you to ditch your sandals.

You can kick back on the beach, snorkel the living reef or explore. You can even camp there, with the music of the surf to lull you to sleep.

Suwannee Valley Currents

CALADESI ISLAND STATE PARK

Voted one of the top beaches in the U.S., Caladesi Island State Park’s beach is a pristine, unspoiled island haven off the coast of Clearwater Beach.

One of Florida’s few remaining undeveloped barrier islands and accessible only by boat, Caladesi Island is rich with beauty and tranquility. Warm breezes rifle through lone palms and patches of sea oats.

Shorebirds call above crystal waters.

The soft white sand on Caladesi Beach beckons you to sink in, to rest awhile.

You don’t have to do anything on Caladesi Island. That’s the joy of its 3-mile beachfront. But if you choose, you can enjoy a picnic lunch under the pavilions and go angling, kayaking, birding or hiking through several distinct habitats.

Best of all, it’s possible to find total peace in this paradise. If you go to Caladesi Beach during the week, you’re likely to find yourself virtually alone. Soak up the solitude.

SANTA ROSA BEACH

Located along a 26-mile stretch of Northwest Florida’s famed Emerald Coast, Santa Rosa Beach is one of 16 distinct beach neighborhoods in South Walton County, each with its own traditions, charm and visual style.

The community of Santa Rosa Beach offers luxury beach houses, upscale dining and the unique artist colony known as Gulf Place. It also provides several entrances to Point Washington State Forest, a 15,000acre preserve with more than 10 natural communities.

In fact, all of South Walton is renowned for natural scenic beauty, turquoise waters and sugar-sand beaches, including one of Travel + Leisure magazine’s “Best Beaches on Earth” for families. 

July 2020 | 7

SAVE THE DATE

SVEC will host the third annual Suwannee Valley Cornhole Tournament for players of all skill levels on the morning of Saturday, Oct. 24.

All proceeds will go to the United Way of Suwannee Valley. More information will be made available on SVEC’s website and in the September issue of this newsletter.

OPERATION ROUND UP IN THE COMMUNITY Thanks to the support and generosity of our members, SVEC’s Operation Round Up program is adding up to big change in local schools.

Operation Round Up this year: $54,769 — funds collected 112 — grants approved $60,927 — awarded to schools Operation Round Up totals: $157,741 — funds collected 336 — grants approved $157,440 — awarded to schools

SVEC supports COVID-19 Relief Fund

Everyone in our community has been affected in some way by the COVID-19 pandemic. That’s why Suwannee Valley Electric Cooperative joined United Way of Suwannee Valley as a sponsor of its COVID-19 Relief Fund. In addition, SVEC employees contributed $1,000 to the fund.

The relief fund directly supports community resources in Columbia, Hamilton, Suwannee and Lafayette counties. Donations are used to help out-of-work families, ensure that children who rely on free and reduced-price breakfast and lunch at school don’t go hungry, and much more. Members who would like to make a donation can do so by visiting unitedwsv.org/covid-19-disaster-recovery.