Annual Report 2014 - Blue Ridge Mountain EMC

Blue Ridge
Mountain EMC
2014 Annual Report
Executive Summary
E
very year in the Annual Report, we try to provide an update on the operations of Blue
Ridge Mountain Electric Membership Corporation
(BRMEMC). In this report you will find financial information for the past calendar year ( January 1,
2013, through December 31, 2013), as well as statistical information with comparisons to previous years.
In addition to this information, we would also like
to give a brief update on some of the high-profile
projects and initiatives that your cooperative has
been involved with this past year.
Over the course of 2013, BRMEMC constructed
over 44 miles of new power lines, as well as maintaining almost 6,000 miles of existing distribution
lines and over 32 miles of transmission lines. Your
cooperative owns and maintains 10 distribution substations and one transmission switching station that
have the capacity to serve the power supply needs
of our communities for years to come. In 2013, we
added approximately $7,575,000 in new electric
plant resulting in a total electric plant value as of
December 2013 of over $210,424,900. This past year,
we also added 392 electric meters and ended the
year with a total of 49,863 connected meters.
BRMEMC also continues to do its part in support of TVA’s renewable generation programs.
Through these programs, TVA purchases the energy
generated from qualified renewable generation systems installed by our members. As the local power
distributor, BRMEMC’s role in this program is to
facilitate the interconnection of the generation systems to our electric distribution lines. We currently
have three wind turbines and 93 solar arrays connected on our system, providing over 14,400 kilowatts of renewable generation.
In addition to providing electric services,
BRMEMC also continues to provide several other
“value-added services.” We now provide broadband
34B
Matthew Akins, executive vice president and general
manager of Blue Ridge Mountain EMC
services to approximately 5,400 owner-members. We
also have partnerships with Americas Center Corporation to provide digital television services, and we
are now partnered with ETC to provide telephone
services on our fiber-optic network. More than 2,200
of our members are enrolled in our water heater
maintenance program and more than 1,600 lease
surge protection devices. BRMEMC also provides
monitored home security services to over 700 members. Give us a call or stop by the office to learn
more about any of these additional services.
In closing, we want to thank each and every
member for your support. The BRMEMC Directors,
Management and Employees will continue to remain committed to providing our members with
safe, reliable, affordable electricity. We look forward
to seeing you at the Annual Meeting on Saturday,
September 13, 2014.
Blue Ridge Mountain Annual Report
September 2014
Balance Sheet
Utility plant
2012
Electric plant in service . . . . . . . . $ 198,237,731
Construction work
in progress. . . . . . . . . . . . . . . . . . $
4,612,202
Accumulated provision
for depreciation . . . . . . . . . . . . . $ 52,549,023
Net utility plant . . . . . . . . . . . . . . . $ 150,300,910
Non-utility property . . . . . . . . . . . $ 16,022,212
Investments in associated
organizations . . . . . . . . . . . . . . . $
2,817,853
1,277,442
Equities
2012
Memberships . . . . . . . . . . . . . . . . . . $
248,998
Equity in co-op . . . . . . . . . . . . . . . . $ 41,233,064
Total equities . . . . . . . . . . . . . . . . $ 41,482,062
2013
$
253,195
$ 43,633,329
$ 43,886,524
$ 57,598,542
$ 152,826,359
$ 17,092,076
Long-term debt . . . . . . . . . . . . . . . . $ 113,619,849
Other non-current
liabilities . . . . . . . . . . . . . . . . . . . $ 3,321,373
$ 110,257,155
$
Current liabilities
Notes payable . . . . . . . . . . . . . . . . . $ 11,180,631
Accounts payable . . . . . . . . . . . . . . $ 8,104,388
Consumers’ deposits . . . . . . . . . . . $ 3,713,800
Accrued and withheld taxes . . . . $
789,369
Accrued interest—
RUS, CFC and FFB . . . . . . . . . . . $ 2,738,345
Other . . . . . . . . . . . . . . . . . . . . . . . . . $
511,176
Total current liabilities . . . . . . $ 27,037,709
2013
$ 209,147,459
$
4,053,384
Current assets
Cash—General and temporary
cash investments . . . . . . . . . . . . $
2,755,618
Accounts receivable. . . . . . . . . . . . $
4,285,043
Materials and supplies . . . . . . . . . $
1,136,912
Prepayments . . . . . . . . . . . . . . . . . . $
917,346
Other current assets . . . . . . . . . . . $
4,612,858
Total current assets. . . . . . . . . . $ 13,707,777
$ 2,655,450
$ 5,069,791
$ 1,157,848
$
829,908
$ 4,474,447
$ 14,187,444
Deferred debits . . . . . . . . . . . . . . . . $
4,443,322
Total assets . . . . . . . . . . . . . . . . . . $ 187,292,074
$ 4,747,404
$192,906,667
Deferred credits. . . . . . . . . . . . . . . . $ 1,831,081
Total equities
and liabilities . . . . . . . . . . . . . $187,292,074
$
3,663,036
$ 14,755,631
$ 8,990,976
$ 3,898,860
$ 1,113,300
$ 3,057,608
$
448,090
$ 32,264,465
$
2,835,487
$192,906,667
Statement of Revenue and Expense
2012
Operating revenue. . . . . . . . . . . $ 76,504,788
Operating expense and interest
Cost of power. . . . . . . . . . . . . . . . . . $ 48,598,716
Distribution operations . . . . . . . . $
3,194,240
Distribution maintenance. . . . . . $
4,877,399
Consumer accounts . . . . . . . . . . . $
2,446,432
Consumer service
and information . . . . . . . . . . . . $
980,759
Administrative and general. . . . . $
3,352,257
Depreciation . . . . . . . . . . . . . . . . . . $
5,402,335
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . $
1,597,700
Interest . . . . . . . . . . . . . . . . . . . . . . . $
5,373,711
Total operating expense
and interest . . . . . . . . . . . . . . . $ 75,823,549
2013
$ 78,497,365
$ 49,612,124
$ 3,208,397
$ 5,454,403
$ 2,764,422
Net operating margins. . . . . . . $
2012
681,239
$
2013
1,312,622
Non-operating margins. . . . . . $
-67,331
$
457,200
Net margins. . . . . . . . . . . . . . . . . . $
613,908
$
1,769,822
937,819
2,499,534
6,092,076
1,284,373
5,331,595
Earnings reinvested in system:
Beginning of year. . . . . . . . . . . . . . $ 41,330,256
$ 41,944,164
Earnings reinvested in system:
End of year. . . . . . . . . . . . . . . . . . . . $ 41,944,164
$ 43,886,524
$ 77,184,743
Paid Back to RUS, CFC
and FFB . . . . . . . . . . . . . . . . . . . $ 2,738,345
$ 3,057,608
$
$
$
$
$
Numbers reflect calendar year totals.
September 2014
Blue Ridge Mountain Annual Report
34C
Meters Served
Miles of Line
M
2013
2013
2008
2008
2003
2003
1998
1998
1993
1993
0
10,000
20,000
30,000
40,000
50,000
0
1,000
2,000
3,000
4,000
5,000
6,000
Electric Revenue
2013
2008
2003
1998
1993
0
$20 million
$40 million
Uses of Revenue
$60 million
$80 million
Sources of Revenue
Interest 6.79%
Commercial
& Industrial 33.80%
Depreciation
7.76%
Street &
Outdoor
Lighting
.12%
Operation &
Maintenance
Expense 15.17%
Taxes 1.64%
Miscellaneous
2.89%
Margins 2.25%
Purchased Power 63.20%
Administrative &
General Expense 3.19%
Residential 63.19%
Numbers reflect calendar year totals.
34D
Blue Ridge Mountain Annual Report
September 2014
July 22, 20
Blue Ridge
Electric MeMountain
mbership C
orporation
P.O. BOX 9,
875 MAIN
STREET EA
ST YOUN
14
Dear Membe
G HARRIS
, GEORGI
A
30582 PH
ONE: (70
6) 379-312
1
r:
This is your
Official Not
ice of the A
Mountain E
nnual Meetin
lectric Mem
g of Membe
bership Cor
at 10:00 a.m
rs
po
. on Saturd
ay, Septembe ration. The meeting w of Blue Ridge
Mountain Fa
ill begin prom
r 13, 2014,
irgrounds,
in the Music
Hiawassee,
ptly
Hall of the
Georgia.
Georgia
There are th
ree membe
rs of the Boa
meeting this
rd of Direc
year. The N
tors whose
ominating
for a threeterm
Committee
year term.
has nominat s expire with the
ed the follo
wing membe
rs
Brian Trou
t
Julie Payne
Clay Count
y, NC
Lenny Park
Towns Cou
s
nty, NC
There were
Union Cou
four nomin
nty, GA
ations mad
Phillips, To
e by petitio
wns Count
n: Chris Lo
y, G
Union Cou
gan, Clay C
nty, GA. Und A; Charles Jenkins, U
ounty, NC;
nion Count
er the bylaw
Steven
y, GA; and
s no nomin
Mic
ations may
Registratio
be made from hael Patton,
n will be he
ld
th
at the Ander
e floor.
grounds be
ginning at 8
son Music H
a.m. and w
ill close prom all in the Georgia Mou
nt
pt
ain Fairly at 11 a.m
The Pressley
.
Girls from
Brasstown,
Band from
North Carol
Hiawassee,
ina, and th
Georgia, w
annual mee
e
ill be provid
ting.
ing the ente Mountain Home Mus
ic
rtainment fo
r this year’s
Yours truly,
Blue Ridge
Mountain E
MC
William E.
Prather
Secretary
Blue Ridge
Mountain E
MC B
WILLIE WI
oard of Dir
ectors
REDHAND
OWNED BY
DISTRIBU
TOR OF
September 2014
THOSE WE
SERVE
T.V.A. POWE
R
Blue Ridge Mountain Annual Report
34E
Annual Meeting Entertainment
The Pressley Girls
The Mountain
Home Music Band
We are pleased to have the talented
twin sisters Corie and Katie Pressley providing our early entertainment this year.
2014 Murphy High School graduates,
Corie and Katie are presently attending
Young Harris College on music scholarships. The Pressley Girls are an authentic
Appalachian duet that focuses on tight
harmony and lyrical meaning. Corie plays
the guitar and mandolin while singing
harmony with her sister, Katie, who plays
the fiddle and piano while singing lead.
Also providing musical entertainment
will be the Mountain Home Music Band
from Hiawassee, Ga. Group members,
from left to right, are Tim Burch, Jimmy
Hooper, Danny Burch, Larry Berrong,
Dale Nicholson, Marilyn Berrong, Jerry
Nichols and Billy Nicholson. The band
plays country, bluegrass and gospel
music. Some of the group were members
of the 1967-1968 Georgia State Champion
Towns County High School FFA String
Band.
Annual Meeting, September 13, 2014
Free Door Prizes!
There will be three Grand Prize Drawings of $100 each
EMCEE: Larry Sorgen, attorney for Blue Ridge Mountain EMC
34F
Blue Ridge Mountain Annual Report
September 2014
A Powerful Connection
‘An Electric Cooperative and its Community’
By Byron McCombs
B
lue Ridge Mountain EMC (BRMEMC) was formed
in the late 1930s by a group of pioneers with a
clear vision for the future. They correctly appraised the
value of electricity and understood the power it possessed to transform people’s lives. Rural electrification
brought the light of hope to people living in sparsely
populated areas across the country where the
prospects of ever escaping poverty were dim.
Your co-op is called upon to serve its community
in ways far beyond our main objective of providing a
reliable source of electricity at an affordable price. We
take great pride in the community service our co-op
provides because we are members of these communities as well.
By design and desire, your electric cooperative
wholeheartedly invests its resources into the people
and places found within its service territory. One of the
seven cooperative principles is “Concern for Community,” and BRMEMC has always faithfully adhered to the
ideal encompassed within that concept. As a business,
BRMEMC assists in countless community projects throughout our service area. Here we lend a hand to Habitat for
Humanity with the construction of a new home.
September 2014
we lend assistance to civic groups, local governments,
schools, charities and service organizations of every
shape and size. As individuals we help out because we
live, work and play in the areas we serve. Our customers are co-op members like we are, which knits our
interests together.
The bonds between BRMEMC and the communities
it serves have remained steadfast for 76 years. The
labor of working together for the common good has resulted in accomplishments we can all look back on
with a great sense of satisfaction. We are thankful for
the loyal support of our members. It is indeed a relationship forged from a tradition of service to our communities that has proven to be a powerful connection.
Your co-op has always been an avid supporter of our local
area school systems. BRMEMC employees Eric Hooper and
Michael Stockton speak with a student during Career Expo
Day at Towns County High School.
Blue Ridge Mountain Annual Report
34G
Blue Ridge Mountain EMC
Board of Directors
Brian Trout
Jerry Nichols
Lenny Parks
Bill Prather
Julie Payne
Kenneth Lance
Greg Owenby
Ronnie Burch
Bob Ensley
BRMEMC Staff
Director of Member Services: Sonny Mahan
Director of Office Services: Patricia Young
Director of Engineering and Operations: Gene Coker
General Manager: Matthew Akins
Director of Information Systems: Dwayne Long
Director of Broadband Services: Daniel Frizzell
Director of Economic Development: Erik C. Brinke