Salt River Electric Cooperative 2011 Annual Report
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1 Salt River Electric Cooperative 2011 Annual Report
2 A Powerful The business of reliable and affordable electricity History The annual report for 2011 finds Salt River Electric Cooperative in a strong position to continue the business of providing reliable and affordable electricity. That kind of success has come as a result of the traditions and values that first started the co-op in Salt River Electric Co-op was not founded to make money for shareholders. Instead, the grandparents and great-grandparents of our community joined together for the sole purpose of bringing affordable electricity to the countryside. To achieve that goal, they used a unique business model that matched their mission a not-for-profit co-op owned by the members it served. And they worked with other electric co-ops forming around the country to develop innovative technical solutions the little-known job of distributing electricity into rural America required creative engineering work. In 2011, Salt River Electric Co-op employed those techniques of technical and organizational innovation to meet today s requirements. Rising costs are at the top of most of our minds these days, so that guides the focus of Salt River Electric Co-op. The high-tech present and future of the smart grid promises more efficient management of the flow and delivery of electricity. Salt River Electric Co-op has been keeping its system up to date with proven smart meters and other technology. Savings are also available right in your own home through a variety of energy-efficient home improvements. Every month, Kentucky Living magazine delivers, right to your mailbox, numerous tips to save money on electricity. You can get specific questions answered about the best steps to take in your own house, by calling Salt River Electric Co-op. Two major factors causing higher electricity costs are the addition of electric generating capacity to meet growing demand, and increasing environmental rules for cleaner and greener energy. Last year, Salt River Electric Co-op continued to meet these goals head-on. Home energy efficiency not only saves you money in your house, but can also slow the need for expensive new power plants. Salt River Electric Co-op has also worked to explore all available sources of energy. Coal will continue to generate nearly all our electricity at rates that are among the lowest in the nation. But green power, produced by burning landfill gas, is also available just call and ask about the EnviroWatts program. In today s economy, Salt River Electric Co-op finds success in relying on its historic values of dedication, first and foremost, to providing reliable and affordable electricity to the co-op members and our community. On the cover The progression of Salt River Electric Cooperative s powerful history is shown from the 1950s to the 2011 annual membership meeting (photo by Tim Webb). To the left, raising utility poles has come a long way. It can still be hard work, but these days it s aided by trucks with specially designed hoists. RIGHT Salt River Electric Co-op s historic values mean operating the utility with the latest technology from their dispatch center. From left to right: Dooley Matting, Lawrence Knott, and Melissa Hite are just three of the Salt River Electric employees who work to keep the lights on for the co-op s 47,000 customers while keeping electric costs down.
3 Salt River Electric Co-op uses a specially designed electric safety trailer loaded with equipment to impress audiences with dramatic, real-life demonstrations of the power of electricity, and how to use its power safely. Photo: Tammy Simmons A Powerful Keeping safety traditions up to date History With reliable and affordable electricity, the centerpiece of what Salt River Electric Co-op does, safety is the top and constant concern of how that electricity gets delivered. Electricity s power also makes it dangerous, even deadly, when it s misused. So Salt River Electric Co-op continued in 2011 to keep its members aware of the importance of using electricity safely. Regular safety notices, ads, and articles appeared in the pages of Kentucky Living about how to avoid electricity s hazards. Safety advice was also broadcast on the radio, and more detailed information is always available through the Internet on the Salt River Electric Co-op Web site, Electric safety also gets up close and personal through Salt River Electric Co-op presentations to school groups, and at other locations where co-op linemen use a trailer loaded with small power lines and model houses, to dramatize the dangers of electricity in everyday life. And if electric safety around the home deserves our respect and caution, the threats are even greater for Salt River Electric Co-op linemen, whose job it is to work every day maintaining the powerful equipment to keep it humming with electric current. That s why Salt River Electric Co-op pays special attention to the safety of the linemen doing this important and dangerous work. That attention starts with hiring the most qualified linemen, with high levels of technical knowledge as well as a feeling for the co-op members and attention to the details of safe work habits and practices, for their sake and the sake of their fellow workers. Salt River Electric Co-op follows through on that start by providing continuing training to stay up to date with technical knowledge, practice to keep skills sharp, and programs to keep safety at the top of the mind at all times. In 2011 and into the future, Salt River Electric Co-op continues to write a history of the safe use of electricity for members and employees.
4 A Powerful History Always a part of our community that local concern in the importance More than 75 years of proud history On April 9, 1937, a small group of civic leaders from Bullitt, Nelson, Spencer, and Washington counties gathered and formed the Salt River Electric Cooperative Corporation. By February of 1938 the first electric lines were energized. Today, Salt River Electric serves more than 47,000 customers across 4,040 miles of line in parts of 10 counties. The world headquarters for Salt River Electric Cooperative is located right here in our community. It always has been and it always will be. That s because all its customers live here. And since all of those customers are also all of the owners, Salt River Electric Co-op is as much a part of our community as the community itself. That means that for Salt River Electric Co-op to thrive, the community must thrive. You see the results of the co-op places on providing reliable and affordable electricity for all its members. You see it in the support the co-op gives to area student scholarship and education programs. You see it after a storm when Salt River Electric Co-op crews work through the night, weekends, and bad weather to restore your electricity. You see it in the activities of the co-op employees, who spend time outside of work volunteering in a wide variety of local groups and activities working to improve life in our community. Few businesses have annual meetings like this one. Every customer is invited, because they re all owners, and each has a vote for a director, who must be a member-customer of the co-op. That s the way it s been since the beginning of Salt River Electric Cooperative. It s a powerful history of success since its beginning, through 2011, and far into the future. From teaching schoolchildren about light bulbs when co-ops first started, to being one of the sponsors of the Touchstone Energy All A Classic (shown here Salt River CEO Larry Hicks congratulates Bardstown High School Coach James Brewer after finishing runner-up in the boys tourney), Salt River Electric Cooperative counts its support of student programs among its proud historical traditions. Photo: Tim Webb
5 Larry Hicks President and CEO Jimmy Longmire Chairman Official Business Meeting Agenda Annual Meeting of Members Salt River Electric Cooperative Corporation Where: Warehouse Grounds When: Monday, June 4 Registration Time: 5 p.m. Meeting Time: 7 p.m. Gayle Troutman Treasurer A.C. Happy Cahoe Director Linda West Secretary Garry Mann Director The annual membership meeting of this co-op organizes to take action on the following matters: 1. Report on the number of members present in person in order to determine the existence of a quorum 2. Reading of the notice of the meeting and proof of the due publication or mailing thereof, or the waiver or waivers of notice of the meeting, as the case may be 3. Reading of approved meeting of the members and the taking of necessary action thereon 4. Presentation and consideration of reports of officers, trustees, and committees 5. Report on the election of board members 6. Unfinished business 7. New business 8. Adjournment Darrell Tingle Director Douglas Hubbard Attorney
6 MEMBERS SERVED NELSON... 14,121 MARION BULLITT... 23,540 WASHINGTON... 4,127 SPENCER... 5,559 MERCER... 7 ANDERSON SHELBY LARUE JEFFERSON TOTAL... 47,662 Service Area Revenue Sources Commercial 18.52% Industrial 11.78% Other 2.18% Residential 67.52% ACCOUNTS BILLED , ,297 AVERAGE KWH USAGE , ,663 MILES OF LINE , ,016 CONSUMERS PER MILE Major Costs 79.63% Power Bill Operations Depreciation Interest Taxes Margins % 5.25% 2.84%.09% 1.15 %
7 Statement of Operations For the Year Ending December 31, 2011 Operating Revenue... $98,515,417 Operating Expense: Purchased Power... $78,451,169 Operating System... $10,759,828 Depreciation... $5,174,860 Taxes... $88,720 Interest on Loans... $2,798,028 Other Deductions...$115,192 Total Cost Elect. Service... $97,387,797 Operating Margins... $1,127,620 Non-Operating Margins...$779,406 G & T Cap. Credits... $5,546,539 Other Cap. Credits...$247,650 Patronage Cap. and Margins... $7,701,215 Salt River Electric Non-Utility Activities INCOME Rental of Surplus Property... $11, Nelson Co Garbage Billing... $121, Total... $133, Balance Sheet For the Year Ending December 31, 2011 Assets Total Utility Plant... $129,984,283 Less Depreciation... $55,049,691 Net Utility Plant... $74,934,592 Invest. in Assoc. Organ... $30,893,001 Cash... $7,225,769 Notes Receivable... $3,954,144 Accounts Receivable... $11,058,703 Inventory...$784,074 Exp. Paid In Advance...$190,269 Defer. Deb. & Other Assets...$746,825 Total Assets... $129,787,377 Liabilities Consumer Deposits... $2,076,665 Memberships & Equities... $61,901,179 Long-Term Debt... $54,723,242 Notes & Accts. Payable... $8,006,548 Other Current Liabilities... $1,289,749 Noncurrent Liabilities... $1,789,994 Total Liabilities... $129,787,377 EXPENSES Rental of Surplus Property... $21, Nelson Co Garbage Billing... $101, Total... $123, Net Income... $10,109.85
8 monday JUNE 4 Salt River Electric Warehouse 1345 Templin Ave., Bardstown, KY Registration: 5:00 p.m. Business meeting: 7:00 p.m. f f Free! Energy-saving light bulbs for members who attend! K Inflatables K Petting Zoo K Pony Rides K Door Prizes K Food Booths K Safety Demonstrations Annual Meeting Featured Entertainment Calvin Ray Johnson Caricaturist Denny Whalen
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