Treasurers Report with John Klauder

Treasurer's Report

By John Klauder, CCD, BL, District 7 Director

For the year ended December 31, 2020, the Board of Directors engaged bhm cpa group, inc. to perform an audit of the cooperatives’ books and records. The bhm cpa group has extensive experience in auditing both utilities and cooperatives. On March 16, 2021, bhm issued the audit report for the year John Klauder ended December 31, 2020. The audit report contained an unmodified opinion, which in accounting terms is a clean opinion from the auditor.

In 2020, total revenues for the cooperatives were approximately $108.5 million and patronage capital received from other cooperatives was $2.4 million. Total operating expenses for the year were $100.6 million of which $48.1 million was for purchased energy. The net margin for the consolidated group was $9.5 million for 2020.

Consolidated comprehensive income for 2020 was $10.5 million. Comprehensive income is calculated by adding net margin and unrealized gains/losses on post retirement benefits plans. Comprehensive income by entity for 2020 are as follows: • Licking Rural Electric - $5,900,000 • National Gas & Oil - $4,500,000 • NGO Transmission - $780,000 • NGO Development – ($1,200,000) • NGO Propane - $520,000.

As of December 31, 2020, your cooperative had total assets of $310.5 million, which includes $245.9 million in net plant assets. The cooperatives invested $20.5 million in new plant assets in 2020. At the end of 2020, the company had $41.6 million of patronage capital in other cooperatives, including Buckeye Power and Cooperative Finance Corporation (CFC). Included in total assets was over $2.5 million in cash and short-term investments. Total liabilities were $248.2 million as of year-end.

The cooperative has equity of $62.3 million as of the end of 2020. Equity for the combined entities has grown to 20.08 percent.

As of December 31, 2020, The Energy Cooperative serves approximately 67,600 members. During 2020, we paid out approximately $6.9 million in taxes and retired over $84,000 in patronage capital credits to estates. If you have additional questions about this financial report, please contact the office at 1-800-255-6815.

Attention Natural Gas Members

In accordance with Federal Pipeline Safety Regulations 49 CFR, Part 192.16, The Energy Cooperative is required to inform members that the member shall be responsible for their gas service lines.

What you need to know

The member is responsible for the maintenance and repair of all gas piping from the gas meter to all gas appliances. The member is responsible for the repair/replacement of the gas service line located on the member’s property from the buried curb valve to the inlet of the gas meter. Buried gas piping that is not maintained may be subject to the potential hazards of corrosion and leakage.

For your safety, all buried pipe should be periodically inspected for leaks. If the buried piping is metallic, it should also be periodically inspected for corrosion. If an unsafe condition is found, the gas piping will need to be promptly repaired. When digging near buried gas piping, the piping should be located in advance and the excavation done by hand. As a reminder, any time you are excavating, OHIO811 should be called by simply dialing 811 or 1-800-362-2764 at least 48 hours prior to digging. OHIO811 will notify various utility companies to locate utilities lines in the area.

Plumbing and heating contractors can assist in locating, inspecting, and repairing the member’s buried piping. The Federal Department of Transportation (DOT) requires that a DOT-qualified plumbing contractor must be used to repair or replace a member’s buried piping upstream of the meter, including the gas riser attached to the meter set. While this is not required for piping downstream of the meter, The Energy Cooperative strongly recommends a DOT-qualified plumber be used for all buried gas piping.