Currents-March 2020 (revised)

MARCH 2020

Suwannee Valley

CURRENTS 2019 ANNUAL REPORT

INSIDE: YEAR IN REVIEW

Take a look back at SVEC’s 2019 highlights

BY THE NUMBERS A glance at another successful year

2019 FINANCIALS Entering the new decade on a strong footing

CEO’S MESSAGE

Suwannee Valley

CURRENTS March 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.

2019 was a very good year

I sometimes think of all the ways other businesses and organizations could benefit from adopting values similar to the cooperative principles. How much better would it be if the company you bank with was dedicated to helping you understand its industry? Or if serving the local community was a core value of the place where you buy your groceries?

Perhaps no other principle would be as beneficial as the commitment to open communication that cooperatives have. As important as it is for our members to know what is going on at their cooperative, it isn’t just about transparency. It’s also about being answerable to the people we serve.

That sense of responsibility to members is one of the many reasons I’m proud to work for an electric co-op. At Suwannee Valley Electric Cooperative, we aren’t accountable to a group of shareholders living somewhere across the country — we answer to you alone.

This year, we have a lot to be proud of, not least of which is the strong financial footing our cooperative continues to maintain. In the following pages, you can find SVEC’s financial statements for 2019, along with the minutes of last year’s annual meeting. I think you’ll be able to see for yourself that our cooperative is in a healthy position to continue providing safe, affordable and reliable electric service now and into the future.

But we were also able to achieve so much more in 2019. Together, we raised more than $100,000 to support our local students and ensure they have the materials they need in the classroom. We continued to provide opportunities for high school students with our Youth Tour and scholarship programs.

We were able to give back to the United Way of Suwannee Valley through the Suwannee Valley Cornhole Tournament and the Touch-a-Truck event.

And all the while, we found new ways to improve reliability on our system, achieving an average service availability of 99.97%.

2019 was another fantastic year for SVEC and, as always, we couldn't have be e n succe ssful without the backing of our truste e s and support from you, our consume r-me mbrs. It's an honor to se rve you. 

FOLLOW US ON SOCIAL MEDIA! Follow us on social media to stay up to date with everything happening at your cooperative. Get information on outage updates, cooperative news and community events, and check out the best snapshots from our day-to-day operations on our new Instagram page.

Facebook: facebook.com/sveccoop Twitter: @SVEC_COOP_FL Instagram: Instagram.com/sveccoop

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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: We exist to serve our members.

(Photo from the 2019 Annual Meeting.)

Suwannee Valley Currents

2019 HIGHLIGHTS SUPPORTING STUDENTS

SVEC launched Operation Round Up® as a way for members to give back to local schools. Each member’s monthly donation averaged just 49 cents, but together, we were able to raise more than $100,000.

That money went toward equipment and materials that directly benefit students in the classroom, such as books, lab equipment, art supplies, subscriptions to online learning resources, math aids and much more.

MOST RELIABLE YEAR EVER

In 2019, the average consumer-member was without power for 151 minutes. This represents a 50% reduction of outage time in just five years. That achievement is a result of the dedication and hard work of our employees, relocation of key lines from heavily-wooded areas to roadsides, aggressive tree trimming, equipment inspection and replacement efforts; and investments made in automated equipment that isolates outages and restores power within minutes.

GIVING BACK

As a cooperative, providing electric power isn’t the only way we serve our community. In 2019, SVEC hosted or participated in many events to support local causes. These included the Walk/Run 4 Life, benefiting the Pregnancy Care Center, as well as the Touch-a-Truck event and Suwannee Valley Cornhole Tournament, both of which raised money for United Way of Suwannee Valley.

SERVING NEIGHBORS

While SVEC employees are happy to give their time helping members while at work, many also continue serving their community on their own time. One group of employees volunteered to weed the playground and stain the wooden wheelchair ramp at a local shelter for victims of domestic violence. Another group volunteered with their kids to repair bird enclosures for Accipiter Enterprises Educational Birds of Prey.

BUILDING THE FUTURE

As it does every year, SVEC sponsored a group of local high school students on an all-expenses-paid trip to the Florida Electric Cooperative Youth Tour in Tallahassee. Two students were selected from that group to represent the co-op at the National Electric Cooperative Youth Tour in Washington, D.C., where they had the opportunity to visit national landmarks and meet Florida lawmakers.

Suwannee Valley Currents

March 2020 | 3

2019 SAFETY

791,917

BY THE NUMBERS

miles driven with ZERO accidents OR

32

times around the world

COMMUNITY OUTREACH

$10,000

in scholarships awarded to high school seniors

$7,600

in in-kind donations

67 community organizations supported

$96,513 donated to schools through Operation Round Up

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$16,305

raised for united way

Suwannee Valley Currents

MEMBER EXPERIENCE 21,878

580

11,626

223,754

calls taken by member service reps

new service connections completed

bill payments using 24-hour drive-thru kiosk

other electronic payments

ECONOMIC VIABILITY

$4.35

Stable rates Residential rate for 1,000 Kwh

$981,746

Feb. 2018

$120.00 capital credits retired in 2019

RELIABILITY

99.97%

average service availability

Suwannee Valley Currents

(less than the $5.15 price of a Chick-fil-A grilled chicken sandwich)

average daily electric bill

826 poles replaced

Feb. 2019

$119.60

14.7M 1,253

Feb. 2020

$119.60

capital credits retired lifetime

miles of right-of-way cut

11,284

poles inspected

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Balance Sheets

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Suwannee Valley Currents

Statements of Revenue

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

March 2020 | 7

MINUTES OF THE ANNUAL MEETING OF THE MEMBERS APRIL 27, 2019

The Annual Meeting of members of Suwannee Valley Electric Cooperative, Inc. was held Saturday, April 27, 2019 at Suwannee County’s Agricultural Coliseum in Live Oak, Florida. Meeting was called to order at 10:00 a.m.

by Executive V.P. and CEO, Michael McWaters. Mr. McWaters announced that, due to a personal emergency, Tim Steichen, Board President, was not able to attend the meeting. Prior to the meeting being called to order, registration opened at 8:30 a.m. and members were entertained by playing BINGO. An invocation was given by Russell Summers, who also led members in Pledge of Allegiance.

Mr. McWaters welcomed and thanked all members for their attendance. Mr. McWaters also recognized attending veterans. Employees with years of service milestones were also recognized.

Mr. McWaters thanked Mr. Summers for his invocation and for leading Pledge of Allegiance and introduced special guests and Trustees. Mr. McWaters called on Tyler Putnal, Vice President of Board of Trustees, to deliver President’s address due to absence of President Tim Steichen. After Mr. Putnal’s remarks, Mr. McWaters introduced 2018 Youth Tour participants, Christian Rodriguez and Grace Jackson. Christian and Grace spoke about their youth tour experience.

Mr. Roberson, Secretary of the Board of Trustees, was called on to announce quorum status. Mr. Roberson announced that a quorum was present. Mr. Roberson moved to dispense with reading of Official Notice and Minutes of the 2018 Meeting since these were distributed in March’s newsletter. Motion was

seconded and carried to dispense with reading of minutes and notice. A motion to approve minutes as presented was seconded. Motion carried and minutes were approved as presented.

Mr. Roberson introduced Mr. Andy Walker, Treasurer, to present Treasurer’s Report. Mr. Walker presented a financial report using data from SVEC’s 2018 audited financial statements as well as operational data.

Mr. Walker called on Mr. McWaters to deliver CEO’s report. Following his report, Mr. McWaters introduced Mr. Josh Crapps, SVEC’s legal counsel, to conduct business portion of the meeting.

Mr. Crapps called for election of Trustees. Mr. Crapps reported that meetings were held at district level for districts 7, 8 and 9. Mr. Crapps placed in nomination those Trustees nominated at district meetings: District 7 - Mr. Hugh Hunter; District 8 - Mr. Tim Steichen; and District 9 - Mr. Bill Hart. There was a motion and a second to elect Mr. Hunter, Mr. Steichen, and Mr. Hart as trustees by unanimous ballot due to no other persons being nominated from their Districts. Motion carried. Mr. Hunter, Mr. Steichen and Mr. Hart were duly elected to the Board. Mr. Crapps called for any old business to be brought before the membership. Hearing none, Mr. Crapps called for any new business. Hearing none, Mr. Crapps concluded business portion of meeting.

Next order of business was drawing for prizes, conducted by Mr. Hugh Hunter and Mr. Mike Adams, with assistance

by SVEC employees. SVEC’s 82nd Annual Meeting concluded at 10:50 a.m. 

SVEC board vice president Tyler Putnal addresses the crowd at the 2019 annual meeting.

SVEC’s Christine Moor hands a donut to a young attendee at the 2019 annual meeting.