Suwannee Valley Electric Cooperative Lighting the way since 1937
www.svec-coop.com
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Suwannee Valley
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March 2016
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800-752-0025 SERVING RURAL AND URBAN SUWANNEE VALLEY OWNED BY THOSE WE SERVE 11340 100th Street • Live Oak, FL 32060
SUWANNEE VALLEY ELECTRIC COOPERATIVE
2015 Annual Report
Honesty and transparency In today’s world there’s a hunger for honesty and transparency. When we give to charity, we want to know where that donation goes; when we pay our taxes, we need to see that our money is being spent well. That isn’t always the case, but it feels like it should be. One of the best things about being part of a cooperative is that open communication is built right in. Our guiding principles emphasize educating the membership and making sure you have everything you need to not only stay informed, but also be active participants in our organization. That’s why, this month, we are using this newsletter to share some important information with you, our member. In this document you will see our financial report for 2015,
SUWANNEE VALLEY ELECTRIC COOPERATIVE
April 23 10 a.m.
as well as some graphs to help better explain those reports. You’ll also see the minutes from last year’s annual meeting. We may not get honesty and transparency everywhere, but when it comes to the cooperative you own, our members can expect it. We hope to see everyone at our annual meeting this year on April 23.
Michael S. McWaters Executive V.P./CEO
11340 100th Street Live Oak, FL Registration from 8:30 a,m. to 10 a.m. There will be door prizes and drawings for additional prizes, but you must be present to win! Hope to see you there!
BALANCE SHEETS DECEMBER 31, 2015 AND 2014 SUWANNEE VALLEY ELECTRIC COOPERATIVE, INC. - LIVE OAK, FLORIDA
ASSETS 2015 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 Current Assets Cash - General Accounts Receivable (Less Allowance for Uncollectible of $19,019 in 2015 and $21,286 in 2014) Unbilled Revenues Materials and Supplies Other Current and Accrued Assets Total Current Assets Deferred Charges Total Assets
$
2014
133,596,364 2,134,705 135,731,069 (39,946,326) 95,784,743
$
128,012,585 1,045,614 129,058,199 (37,020,226) 92,037,973
10,735,494 0 10,735,494
9,760,517 809 9,761,326
6,760,024
5,700,217
3,295,264 443,560 679,334 191,744 11,369,926
3,640,281 516,397 593,655 290,382 10,740,932
2,010,897
2,153,976
119,901,060
$
114,694,207
EQUITIES AND LIABILITIES 2015 Equities Memberships Patronage Capital Other Comprehensive Income Total Equities
$
Long-term Debt RUS Mortgage Notes Less Current Maturities/Cushion of Credit FFB Mortgage Notes Less Current Maturities CFC Mortgage Notes Less Current Maturities Capital Lease Obligations Total Long-term Debt
92,570 49,865,180 (47,300) 49,910,450
$
(5,626,356) 26,839,043 32,853,263 1,218,463 55,284,413
Other Long-term Debt Liabilities Deferred Compensation Accumulated Provision for Pensions and Benefits Post-retirement Benefit Obligation Current Liabilities 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 Deferred Credits Total Equities and Liabilities
2014
$
91,345 46,791,969 37,900 46,921,214
19,293,320 20,604,405 12,338,923 692,252 52,928,900
80,084
135,579
838,880
720,610
3,233,677 2,587,715 174,490 3,492,944 1,273,702 121,046 1,096 1,305,329 856,694 13,046,693
2,788,547 3,358,933 239,694 3,807,023 1,320,929 131,275 1,136 1,311,072 254,401 13,213,010
740,540
774,894
119,901,060
$
114,694,207
FINANCIAL STATEMENTS ARE UNAUDITED. AUDITED FINANCIAL STATEMENTS WERE UNAVAILABLE AT TIME OF PRINT.
$0
State Average
2011
2012
2013
SVEC
Remaining good stewards in 2015 SVEC
Electricity is a great value. For roughly the price of a hamburger, you can have your air conditioning, hot water, Internet, television, computers, refrigerated food and more. SVEC continually strives to make sure our members get a great value for their dollar. As you can see from the charts here, most of our expenses come from the purchase of electricity, the price of which we cannot control. However, we do our best to control the costs we can, keeping those expenses below the state average. The result is an electric service that is a great value for our members.
2014
2015
State Average
Where did your dollar go in 2015?
Where did your dollar go in 2015? Maint. & Oper. Expense 11.96%
Cost Of Power 65.69%
Depreciation Exp. 7.42%
Interest Exp. & Other 3.93%
Operating Margins 3.50%
Consumer Price Index Average Price Increase Per Year 2005 - 2015
Adm. & General Exp. 5.05%
Cust. Acct. & Selling Exp. 2.45%
Controllable Expenses per Consumer
Controllable Expenses per Consumer $500
392.43
$400
472.54
392.26
$300
450.50
$200 $100 $0
2011
State Average 2012
2013
SVEC
SVEC 2014
2015
State Average
Where did your dollar go in 2015?
MINUTES OF THE ANNUAL MEETING OF THE MEMBERS APRIL 25, 2015 Cost Of Power 65.69%
The Annual Meeting of the Membership of Suwannee Valley Electric Cooperative, Inc. was held Saturday, April 25, 2015, at the Suwannee County Agricultural Coliseum, Live Oak, Florida. The meeting was called to order at 10:00 A.M. by President Sidney Lord. Prior to the meeting being called to order, registration opened at 8:00 and members were entertained by the singing group The Mended Hearts Quartet, Lake City, FL. The invocation was given by Reverend Rick James, who also led the Pledge of Allegiance. Mr. Sidney Lord, President of the Board of Trustees, welcomed and thanked all members present. Mr. Lord then called on Mr. McWaters, Executive V.P./CEO to introduce the guests and Trustees. Mr. McWaters thanked Reverend James and introduced the guests and Trustees. Mr. McWaters then called on the 2014 Youth Tour participant, Mr. Manuel Arreguin to address the membership. Mr. McWaters then called on Mr. Hart, Secretary of the Board of Trustees to announce the quorum. Mr. Hart announced that a quorum was present. Mr. Hart moved to dispense with the reading of the Official Notice and the Minutes of the 2014 Meeting, since these were handed out at the door. Motion was seconded and carried to dispense with the reading of the minutes and notice. The Minutes were then approved as presented. Mr. Hart then introduced Mr. Hugh Hunter, Treasurer, to present the Treasurer’s Report. Mr. Hunter presented a report to the members using data from the 2014 Annual Audit and Operating Report.
Maint. & Oper. Expense 11.96% Depreciation Exp. 7.42%
Interest Exp. & Other 3.93%
Mr. Hunter then called on Mr. McWaters to introduce the guest speaker. Mr. McWaters introduced Mr. Lance Brown, who is with PACE – Partnership for Affordable Clean Energy. Mr. McWaters then gave the Manager’s Report and spoke about the safety of SVEC’s employees and what SVEC is doing to ensure employees are safe. Mr. McWaters then called upon Mr. Josh Crapps, Attorney for the Board, to conduct the business session of the meeting. Mr. Crapps called for the election of Trustees. Mr. Hart, Secretary of the Board of Trustees reported that meetings were held at the District level for Districts 4, 5, and 6. Mr. Hart placed in nomination those Trustees nominated at the District Meetings: District 4, Mr. Tyler Putnal; District 5, Mr. Sidney Lord; District 6, Mr. Andy Walker. There was a motion and a second to elect Mr. Putnal, Mr. Lord, and Mr. Walker as members of the Board of Trustees by unanimous ballot because no other persons were nominated from their Districts. Motion carried and Mr. Putnal, Mr. Lord and Mr. Walker were duly elected to the Board. Mr. Crapps then called for any old business to be brought before the membership. Hearing none, Mr. Crapps then called for any new business. Hearing none, Mr. Crapps concluded the business portion of the meeting. The next order of business was the drawing for the prizes, conducted by Trustee Hugh Hunter and Mr. Tim Steichen with assistance by Suwannee Valley Electric employees. There being no further business to come before the members, Trustee Hugh Hunter adjourned the meeting at 11:30 AM. Operating Margins 3.50%
Adm. & General Exp. 5.05%
Cust. Acct. & Selling Exp. 2.45%