2008 Annual Report

2008 Annual Report

The past twelve months brought the following activities and achievements for your cooperative:

Worked safely with no lost time

Generated 132,509,703 kWh in

accidents since November 7, 2005

Green Power EMC sales since the program began in 2001

Converted 6,700 meters to the

new TWACS automated meter reading system

Exceeded $610,000 in

Enrolled over 1,200 units in

Operation Roundup contributions since the inception of the program in 2001

the No Sweat Air-Conditioning program

Signed contracts for

Significantly reduced energy

usage by implementing numerous conservation and efficiency efforts for all Tri-County facilities

participation in the construction of two new nuclear units at Plant Vogtle and a biomass renewable energy power plant Received the 2007 Award of

“Are you committed to your energy future?

That question above any other defined the past year.”

Completed an addition to the

Eatonton District Office

Excellence for Current Lines, the cooperative’s newsletter

Recorded a new record winter

Set a new sales record of

system peak demand of 104 MW in January

363,595,420 kWh sold in 2007

Board of Directors

Tri-County EMC’s Board of Directors (L-R): Vice Chairman Brenda P. Green, Secretary/Treasurer Tommy Noles, Rev. Charlie Richardson, Chester Mercer, Chairman Tom Thompson, Jr., Marion Nelson, Sammy Hall, Dan Greene and Mike Rainey

CEO C. Hill Bentley and Board of Directors Chairman Tom Thompson, Jr. at Plant Scherer. In the next ten years, Georgia cooperatives must nearly double the existing electric generation capacity.

Executive Message

A

re you committed to your energy future?

the center of these is No Sweat, a portfolio of

That question above any other defined

demand-side management, rebates and energy

the past year. In a year of dramatically

audit programs. And we’ve recently restructured

rising energy, transportation and material costs,

residential rates, sending proper price signals that

your cooperative’s leadership has worked to

reflect increasing costs for higher energy usage.

minimize the impact on rates while seeking intelligent solutions for our pressing energy issues.

Leading at home is important but so is providing leadership in Washington. Electric cooperatives

It’s no secret that the years of plentiful energy

from across the country are encouraging con-

supply in Georgia are nearly over. In the next ten

gress to wisely craft energy policy. We’re asking

years, Georgia cooperative’s must double the

Congress to carefully consider how future legisla-

existing electric generation capacity to keep up

tion will affect our ability to meet future needs.

with growing energy needs. Tri-County’s staff and

We know we cannot meet growing electricity

board of directors are actively working to ad-

needs with renewables, conservation and ef-

dress these needs. In fact, Tri-County has already

ficiency alone. But balancing energy needs and

elected to be a part of the two new nuclear

environmental goals is critical if electric rates are

generators at Plant Vogtle. And Tri-County is

to remain affordable.

currently considering options for additional coal, natural gas and biomass generation projects.

So we return to the question, “Are you committed to your energy future?” Meeting the goals

But we do not see meeting this growth through

of affordable, reliable electricity will require a

generation alone. In fact, we’re convinced that

multi-pronged, team approach. As we always

changing attitudes and usage habits of electric-

have, Tri-County EMC will work hard to address

ity are critical. The average monthly usage for

the challenges the future holds. We will continue

Tri-County’s residential customers has increased

to make tools such as conservation and energy-

from 873 kWh in 1990 to 1,223 kWh in 2007. Tri-

efficiency products and renewable energy avail-

County has challenged all of our members to

able. We challenge you to commit to making a

commit to conserving energy. And we’ve put

difference by utilizing these valuable resources to

tools in place for our members to take control

take control of your energy usage and to be a

of energy usage and future power costs. At

part of your energy future.

2008 In Review

T

ri-County EMC was created to

Like most everyone, rapidly increasing

serve our members. The past year

costs impacted the cooperative in recent

centered around developing new

months. The cooperative’s operating costs

generation resources for the future, work-

are about 16% of the budget, versus 66%

ing to control costs and continuing to bring

for wholesale power costs. Compared to

better service to our members through

the first five months of 2007, transporta-

new programs and technological innova-

tion costs for 2008 are up 36%. The costs

tion. Meeting future capacity needs for a

of materials have increased 9% over the

rapidly growing cooperative will prove one

same period. In September, Tri-County

of our biggest challenges in the next few

announced increases in residential and

years. Work is well underway on securing

commercial rates, outdoor lighting rates and service fees.

But in a continued commitment to deploy technology and increase service, Tri-County continues to install new TWACS smart meters, upgrade our distribution system, and investigate new services. In March, Tri-County held a ribbon cutting to celebrate the opening of an addition to the Eatonton district office. The new facility will house a new control center and engineering and operations offices. Putnam County is currently the fastest growing county served by the cooperative.

Tri-County’s service area continues to grow

Tri-County EMC’s Senior Staff (left to right) Lee Marsh, Manager of Engineering; Dawn Haskins, VP/CFO; Beverly Smith, Administrative Assistant; Donald Appling, Manager of Construction and Maintenance; and Greg Mullis, VP of Energy Services.

as new accounts are added and consumers continue to add electrical load in homes and businesses. In the past year, Tri-County was also selected to serve a new high school in Putnam County, an

future capacity needs, including biomass

elementary school in Jones County and a

and other renewable energy sources. And

new jail facility in Baldwin County.

Tri-County is influencing change among our employees, our members, our elected officials and the general public in leading energy efficiency and conservation efforts by example.

W

hat is Georgia’s first fuel?

County’s service territory. And the system

Tri-County EMC contends it

is already making an impact by reducing

should be conservation and

Tri-County’s 2008 peak demand.

energy efficiency. “It’s cheaper to conserve energy than to build new power

“Since the air-conditioner is paused for

plants,” says Tri-County EMC CEO C. Hill

only a few minutes at a time, and the

Bentley. ”That’s why we started the No

indoor blower continues to run, most cus-

Sweat Program.” Building one new kW of

tomers don’t know we’ve operated the

coal generated electricity, the capac-

system,” says Energy Services Representa-

ity needed to power ten 100 watt light

tive Jonathan Stewart. “And, participating

bulbs, costs around $4,000. If building a

customers get a $25 rebate every year

new nuclear power plant, the cost per

and savings on future energy costs.”

kW rises to over $8,000. “So by reducing our system’s peaks for energy needs, we

The No Sweat Air-Conditioning program is

can save millions of dollars by delaying or

operated using the cooperative’s modern

eliminating the need for some new power

TWACS (Two-Way Automated Commu-

plant construction.”

nication System) metering system, which communicates through the power lines.

The cornerstone of the No Sweat program

“No Sweat is one example of how we’re

is an air-conditioning demand manage-

using technology to address future energy

ment system that briefly pauses central

needs through conservation instead of the

air-conditioners and heat pumps on hot

construction of new power plants,” says

weekday afternoons from June to Sep-

CEO Bentley. “It’s also an example of how

tember. Since June of 2008, about 1,200 of

we’re partnering with our members to ad-

the No Sweat devices have been enrolled

dress future energy issues together.”

by our members for residences across Tri-

Tri-County EMC’s Jonathan Stewart records data from a central air-conditioner with a newly installed No Sweat switch.

Tri-County EMC’s Michelle Scott inspects newly installed attic insulation at the home of Tim and Sandra McKinney (inset photo).

I

n 2008, Tri-County EMC introduced insu-

Conservation and energy efficiency are

lation rebates as a part of the No Sweat

two of the tools Tri-County EMC is using to

efficiency program. Participating mem-

ensure an adequate supply of energy for

bers earn up to $150 in rebates toward the

tomorrow. “These programs fit together

purchase and installation of attic insula-

very well,” says Vice President of Energy

tion. Some of the first participants were Tim

Services Greg Mullis. “Conservation means

and Sandra McKinney of Putnam County.

changing habits to use less energy. Energy efficiency means using new technology

“We knew we needed to do something

or better practices to use less energy to

with our attic. We were weighing the op-

complete the same function.”

tions when we heard about the Tri-County rebate program,” said Tim McKinney, who

On a small scale example, energy ef-

installed blown cellulose to bring his attic

ficiency might mean replacing incan-

insulation up to R-30. “We can already tell

descent bulbs with compact fluorescent

a difference in the comfort level upstairs.

lamps, which use 75% less energy to create

We’re excited to see what a difference it

the same amount of light. Conservation

makes in our bills.”

means turning those lights off when we don’t need them. “We’re trying to change

The McKinneys are part of a growing

attitudes about energy usage,” says Mullis.

number of cooperative members taking

“We provide extensive training for our en-

steps to make a difference. “We’ve heard

ergy professionals, participate in a national

cooperative employees talk about fu-

task force on energy efficiency and make

ture energy issues, and we’re concerned

every possible tool available to assist our

about it,” says Mrs. McKinney. “We were

members. We need a commitment from

particularly impressed with the notion that

our members to use those tools and to

there’s no one solution to the issue and

change usage habits.”

that all of us have to take part.”

Operation Roundup

W

e all sleep better knowing fire-

With an average contribution of just fifty

men are protecting us. Most

cents per month or six dollars each year,

of the communities served

Operation Roundup raised $76,095 in the

by Tri-County EMC depend on volunteer

last year and $610,000 since the introduc-

firemen. Those volunteers depend on local

tion of the program in 2001. From purchas-

fundraising to provide equipment.

In 2008, the Gray Fire Department needed an infrared camera, and thanks to contributions from Tri-County members, the Tri-County EMC Foundation and Operation Roundup, funds were there to help.

“When the first Gray Fire Department truck rolls, there’s an infrared camera on board,” says Kevin Milton, a volunteer fireman in Gray. “This infrared camera is the most expensive piece of equipment we carry. It’s there to protect us, to help us fight fires and to help us find victims.”

Infrared cameras see temperature dif-

ing basic needs for house fire victims, to

ferences, even through walls, floors or

ensuring that the firemen who respond are

blinding smoke. The primary function is the

properly equipped, Operation Roundup

firefighter’s safety. “We can find the fire

funds are an important and generous way

before we enter a structure, and we can

cooperative members are making a differ-

see firemen or civilians trapped inside.”

ence in our community.

Gray firemen Kevin Milton (background with camera) and Teresa Milton demonstrate an infrared camera.

The following organizations received funds from the Tri-County EMC Foundation since September 2007: American Legion Auxiliary, Unit 523

Baldwin County 4-H Club Baldwin Co. Foster/Adopt Parent’s Association Boys & Girls Club of Baldwin & Jones Counties Changing Stations Ministry (2) * City of Gray Jones County Volunteer Fire Dept.

Compassionate Care Clinic Dames Ferry Elementary * Eatonton Police Department * GC&SU American Democracy Project GCSU GIVE Center Georgia Military College Habitat for Humanity of Putnam County* Haddock Baptist Church (2)* Holt’s School Inc. Hope Missions JACOR Foundation, Inc. Jones County 4-H (2) Jones County 4-H SAFE Shotgun Team Jones County DFCS* Jones County Fire Department - Station 5

$600 1,000 750 2,000 6,690 900 1,500 1,000 4,000 1,000 2000 3,000 3,000 5,000 1,250 1,500 2,000 2,600 600 2,500 1,000

KAIROS at Men’s State Prison Lockerly Arboretum Foundation Inc. Maranatha Outreach Inc.* Middle Georgia Community Action Agency Muscular Distrophy Association, Inc. New Corinth GG Baptist Church* New Damascus Baptist Church* New Salem Baptist Church* Northridge Baptist Church* Oconee Area Pregnancy Center (2) Operation Early Intervention Oconee Regional Chapter of Project Linus Putnam County 4-H Club Putnam Elementary Green Thumb Garden Club Santa’s Miracle Fund: GIVE Center Scholarships for eight students* Sincerity Lodge #430 Free & Accepted Masons Union Chapel UMC * Total *denotes application on behalf of individual(s)

1,000 2,500 2,500 3,000 2,400 2,500 2,300 1,000 3,000 2,500 800 1,500 1,500 1,500 2,500 4,000 2,400 1,600 $82,390

Statistical Snapshot

Average Monthly Residential Bill

Average Monthly Residential kWh Usage 1960 1970 1980

1960

319

1970

576

$41.43 $72.28

1990

873

$91.05

2000

1,121

2000 2006

1,229

2006

2007

1,223

2007

Where Your Energy Dollar Goes

1960

15.8%

1970

14.5%

$118.52 $119.86

Meters Per Mile of Line

Operating Costs

Interest & Depreciation

3.50 4.50 5.60

1980

7.00

1990

7.84

2000

Power Costs

Margins

4.1%

65.6%

Residential Cost Per kWh (cents)

2006

7.98

2007

8.05

Total Number of Accounts

1960

2.39

1960

1970

2.31

1970

1980

$11.78

1980

755

1990

$7.60

5.55

1980

1990

8.21

1990

2000

8.12

2000

2006

9.64

2006

2007

9.80

2007

3,055 4,783 8,090 12,580 17,185 20,049 20,751

Tri-County EMC is audited by the independent accounting firm of McNair, McLemore, Middlebrooks & Co., LLP. A complete financial statement may be obtained by calling Tri-County EMC at (478) 986-8108 or 1-866-254-8100, ext. 8108.

Financial Summary

Statement of Operations (for the years ended April 30)

2008

2007

Operating Revenue and Capital

$36,120,250

$34,275,584

Operating Expense Cost of Power Purchased Operating the Electric System Depreciation Interest on Loans Total Cost of Electric Service

24,133,217 5,892,723 2,593,658 2,704,702 35,324,300

22,600,462 5,634,407 2,365,676 2,500,759 33,101,304

Patronage Capital and Operating Margins Non-Operating Margins G&T Capital Credits Other Capital Credits Total Patronage Capital or Margins

795,950 33,932 352,095 213,870 $1,395,847

1,174,280 6,798 331,543 147,154 $1,659,775

2008

2007

Balance Sheet (as of April 30)

Assets Total Utility Plant Less Depreciation Net Utility Plant Book Value

$86,812,107 13,094,919 73,717,188

$79,597,098 13,067,306 66,529,792

Investments in Associated Organizations Cash and Reserves Owed to EMC on Account and Notes Material in Inventory Expenses Paid in Advance Deferred Debits and Other Assets Total Assets

9,063,173 506,245 1,700,448 431,590 27,210 348,399 $85,794,253

8,560,420 556,124 1,825,775 501,569 33,184 370,163 $78,377,027

Equities and Liabilities Consumer Deposits Membership, Patronage Capital, Other Equities Long-term Debt Notes and Accounts Payable Other Current and Accrued Liabilities Non-current Liabilities Total Equities and Liabilities

$944,270 26,059,679 51,719,399 5,993,658 875,645 201,602 $85,794,253

$860,520 25,089,520 45,097,518 6,279,569 857,142 192,758 $78,377,027

Tri-County Electric Membership Corporation P.O. Box 487 Gray, GA 31032 1.866.254.8100 478.986.8100 www.tri-countyemc.com