Issuu

MARCH 2019

Suwannee Valley

CURRENTS You’re invited to our ANNUAL MEETING

Suwannee County Agricultural Coliseum 1302 11th St. SW Live Oak, Florida

INSIDE:

Saturday, April 27 • Registration: 8:30-10 a.m. • Bingo with prizes: 9-9:45 a.m. • Business meeting: 10 a.m.

YEAR IN REVIEW

Look back on the 2018 highlights for SVEC

BY THE NUMBERS

SVEC enjoys successful year in 2018

A prize drawing will follow the business portion of the meeting. You must be present to win. Members who register will receive a $10 credit to their electric bill.

2018 MEETING

Read the minutes from the 2018 annual meeting

CEO’S MESSAGE

Suwannee Valley

CURRENTS March 2019

Michael S. McWaters Executive V.P./CEO

Keeping you in the know People can disagree on just about anything these days, but one thing most people tend to agree on is the fact that more transparency is better. Whether it’s our local government or a company we do business with, understanding why and how decisions are being made helps us make more informed decisions ourselves. That’s one of the many strengths of the cooperative model. Because cooperatives were born out of communities to serve those communities, we don’t answer to a farflung group of investors. We answer to our members right here in the Suwannee Valley. One of the seven core principles that guide all cooperatives is informing members like you so that you can understand what is happening at your cooperative and why. It’s the reason we include this newsletter with your bill each month, so members can learn how their cooperative works and about the people running it. You may have already noticed that the newsletter you’re holding looks a little different than usual. This month’s insert doubles as Suwannee Valley Electric Cooperative’s annual report to you, the members. Inside you’ll find the cooperative’s financial statements for 2018, along with the minutes of last year’s annual meeting. I think these show that SVEC continues to be on a strong financial footing and is making plans that will enable us to continue providing affordable and reliable service well into the future. The cooperative also continues its dedication to working safely and supporting our local community. You can find a summary of just a few of our employees’ safety accomplishments over the last year, as well as a list of contributions SVEC and its employees have made to community organizations. We were also proud to continue important initiatives like the Youth Tour and college scholarships that prepare the future leaders of our communities. All in all, 2018 was another incredibly strong year for SVEC, and I know I speak for everyone at the cooperative when I say it has been an honor to serve you. That’s why I would also like to take a moment to encourage each of you to attend our annual meeting on Saturday, April 27. In addition to giving you the opportunity to learn more about what is happening at your cooperative, the annual meeting is also an opportunity to receive a $10 bill credit and a chance to have fun with your neighbors and win prizes. I hope all of you will make some time to join us in celebrating another wonderful year of our electric cooperative, and I can’t wait to share our plans for the year ahead. I look forward to seeing all of you there! 

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 SVEC is an equal opportunity provider and employer On the cover:

Sign up for SmartHub today! SmartHub is a web and mobile app that lets you conveniently manage your SVEC account. You can track your payment history, pay your bill, monitor your electricity use and much more. To access, simply scan the QR code below with your device. 2 | March 2019

Hugh Hunter delivers the board president’s address at the 2018 annual meeting. See meeting minutes, Page 8.

Suwannee Valley Currents

A LOOK BACK ENGAGING STUDENTS

In 2018, SVEC sponsored 10 local high school students on an all-expenses-paid trip to the Florida Electric Cooperative Youth Tour in Tallahassee. Grace Jackson and Christian Rodriguez were part of that group and went on to represent the cooperative at the Electric Cooperative Youth Tour in Washington, D.C., where they had the opportunity to visit national landmarks and meet Florida lawmakers.

THE EASIER, THE BETTER

In the past year, SVEC launched a new and improved website that makes it easier for members to find important cooperative news and information. The site contains a live-chat function and on-line forms that make doing business with the co-op more convenient. Member convenience was also the purpose behind the installation of a new 24-hour, drive-thru payment kiosk at the co-op’s office.

IMPROVING RELIABILITY

The cooperative implemented its Advanced Distribution Management System (ADMS). ADMS automatically detects the location of an electrical fault, automatically performs switching to isolate the fault, and then reroutes the flow of electricity to restore power to consumers who are out but who are not in the section of lines where the fault is located. The entire process reduces the amount of time many members are without power.

HELPING NEIGHBORS

The Suwannee Valley dodged the worst of what Hurricane Michael had to offer, but some of our neighbors did not. As soon as repairs on our system were complete, a 16-man crew left for Southport to help Gulf Coast Electric with its repairs. After staying a week, a second 10-man crew relieved them to continue restoration efforts.

ENERGY DIVERSITY

SVEC’s wholesale power provider, Seminole Electric Cooperative, generates electricity from a diverse array of resources. In 2018, nine percent of that energy came from renewable resources like solar, hydropower and combustion of solid waste and landfill gas. That percentage will only continue to grow in coming years as both renewable energy and natural gas make up for the closure of one of Seminole’s coal plants. 

Suwannee Valley Currents

Hydro 5.1%

Solid Waste 3.1%

Biomass 0.6%

Landfill Gas 0.2% Solar 0.02%

Oil 0.1%

Natural Gas 42.2%

Coal 48.7%

March 2019 | 3

2018

SMORE

BY THE NUMBERS

Safety Member Experience Outreach to Community Reliability Economic Viability

SAFETY 850,437

miles driven with zero accidents

1,539

consecutive days

38 times

730,973

around the world

man-hours with only one lost-time injury (since Oct. 15, 2014)

MEMBER EXPERIENCE 20,939 calls taken by member service reps 481 new service connections completed 218,000 electronic bill payments New 24-hour drive-thru payment kiosk installed 4 | March 2019

Suwannee Valley Currents

O U T R E AC H T O C O M M U N I T Y $3,157 raised by cornhole tournament in scholarships awarded to $10,000high school seniors

$12,800 raised by employees $6,100 in in-kind donations

75 community organizations supported

RELIABILITY 99.96% average service availability 884 miles of right-of-way cut 14,500 poles inspected 724 poles replaced

ECONOMIC VIABILITY $4.38 average daily electric bill

(less than the $4.95 price of a Starbucks Grande Pumpkin Spice Latte)

Declining rates

$121.00: Feb. 2017 $120.00: Feb. 2018 $119.60: Feb. 2019 Residential rate for 1,000 Kwh

$775,124

capital credits retired in 2018

$13.7M

capital credits retired lifetime

WHERE YOUR DOLLARS WENT IN 2018

Purchased Power Distribution maintenance and operations Depreciation SuwanneeAdministrative Valley Currents and General Interest Customer service and other Operating margins Note: sums to 100.1% due to rounding

Suwannee Valley Currents

63.2% 13.5% 8.3% 6.2%March 2019 | 5 4.0% 2.9% 2.0% March 2019 | 5

Balance Sheets

BALANCE SHEETS DECEMBER 31, 2018 AND 2017 SUWANNEE VALLEY ELECTRIC COOPERATIVE, INC. - LIVE OAK, FLORIDA

ASSETS 2018 Utility Plant Electric Plant in Service Construction Work in Process

(Accumulated Provision for Depreciation) Total Utility Plant Other Property and Investments at Cost or Stated Value Investments in Associated Organizations and Other funds Notes Receivable Total Other Property and Investments at Cost or Stated Value

154,318,527 1,503,325 155,821,852 (48,552,729) 107,269,123

2017 $

146,672,117 2,300,108 148,972,225 (45,579,103) 103,393,122

13,948,946 0 13,948,946

12,629,568 0 12,629,568

Current Assets Cash - General Accounts Receivable Unbilled Revenues Materials and Supplies Other Current and Accrued Assets Total Current Assets

1,342,518 5,415,217 1,301,998 802,158 260,744 9,122,635

2,062,233 4,294,669 433,374 615,205 234,015 7,639,496

Deferred Charges

1,206,760

1,432,329

Total Assets

131,547,465

125,094,516

EQUITIES AND LIABILITIES 2018 Equities Memberships Patronage Capital Other Comprehensive Income Total Equities

97,075 56,815,346 154,902 57,067,323

2017 $

95,385 54,262,952 52,200 54,410,537

Long-term Liabilities RUS Economic Development - Rural Development FFB Mortgage Notes Less Current Maturities CFC Mortgage Notes Less Current Maturities Capital Lease Obligations Post-retirement Benefit Obligation Total Long-term Liabilities

300,000 30,473,858 26,118,691 1,248,368 696,298 58,837,214

300,000 24,927,529 28,383,166 1,826,381 779,000 56,216,077

Current Liabilities Notes Payable Current Portion of Long-term Debt Accounts Payable - Purchased Power Accounts Payable - Other Overbilled Wholesale Power Cost Adjustment Consumer Deposits Accrued Taxes Accrued Interest Accrued Employee Compensated Absences Other Current Liabilities Total Current Liabilities

500,000 3,287,392 2,913,750 542,915 2,166,420 1,305,246 133,011 412 1,489,219 910,144 13,248,508

1,500,000 3,652,201 1,598,986 633,784 2,533,938 1,217,776 133,953 977 1,466,418 800,221 13,538,254

1,738,047

929,649

Deferred Credits Total Equities and Liabilities

131,587,330

125,873,516

FINANCIAL STATEMENTS ARE UNAUDITED. AUDITED FINANCIAL STATEMENTS WERE UNAVAILABLE AT TIME OF PRINT.

6 | March 2019

Suwannee Valley Currents

Statement of Revenue and Patronage Capital

Suwannee Valley Currents

March 2019 | 7

MINUTES OF THE ANNUAL MEETING OF THE MEMBERS APRIL 28, 2018

The Annual Meeting of the Membership of Suwannee Valley Electric Cooperative Inc. was Saturday, April 28, at the Suwannee County Agricultural Coliseum in Live Oak, Florida. Hugh Hunter, president of the board of trustees, called the meeting to order at 10 a.m. Prior to the beginning of the meeting, registration opened at 8:30 a.m., and members played bingo. Russell Summers gave the invocation and also led the Pledge of Allegiance. Hunter welcomed and thanked all members present. Hunter then called on Mike McWaters, executive vice president/CEO, to introduce the guests and trustees. McWaters thanked Summers and made the introduction. McWaters called on 2017 Youth Tour participant Riley Boss to address the membership. McWaters then called on Tyler Putnal, secretary of the board of trustees, to announce the quorum. Putnal announced that a quorum was present. Putnal moved to dispense with the reading of the official notice and the minutes of the 2017 meeting, since members received them in the March 2018 newsletter. There was a second, and the motion carried. The minutes were then approved as presented. Putnal then introduced Tim Steichen, treasurer, to present the treasurer’s report. Steichen presented a report to the members using data from the 2017 Annual Audit and Operating Report.

Steichen then called on McWaters to introduce the guest speaker. McWaters introduced Lisa Johnson, Seminole Electric Cooperative CEO. McWaters then gave the manager’s report and spoke about the reliability of SVEC’s system. McWaters then called upon Josh Crapps, attorney for the board, to conduct the business session of the meeting. Crapps called for the election of trustees. Crapps reported that meetings were held at the district level for Districts 4, 5 and 6. Crapps placed in nomination those trustees nominated at the district meetings: District 4 — Tyler Putnal; District 5 — Sidney Lord; and District 6 — Andy Walker. There was a motion and a second to elect Putnal, Lord and Walker members of the board of trustees by unanimous ballot because there were no other nominations from their districts. The motion carried, and the attendees elected Putnal, Lord and Walker to the board. Crapps then called for any old business to be brought before the membership. Hearing none, Crapps then called for any new business. Hearing none, Crapps concluded the business portion of the meeting. The next order of business was the drawing for the prizes, which Tim Steichen and Hunter conducted with assistance from Suwannee Valley Electric employees. With no further business to come before the members, Hunter adjourned the meeting at 10:45 a.m. 