2000 Annual Report. Missouri Association of Municipal Utilities

Transcription

1 2000 Annual Report Missouri Association of Municipal Utilities MMunicipall GG as CC ommission of MMissouri MMissouri JJoint MMunicipall EE llectric UU tillity CC ommission

2 2000 LEADERSHIP Alliance Joint Operating Committee Gary Quick, Chair Tom Tinsley, Secretary Paul Allgood Buddy Bennett Randy Hendren George Morrow Ron Sheppard Steve Svec Dan Watkins MAMU Executive Committee Ron Sheppard, President George Morrow, 1st Vice President Dan Watkins, 2nd Vice President Bob Williams, Secretary Boyce Branstetter, Treasurer Duane Galloway, Immediate Past Pres MPUA Joint Operating Committee l-r top row: Tom Tinsley - Waynesville, Steve Svec - Chillicothe, Randy Hendren - Madison, Jeff Tumiati - Stonington, IL, Dan Watkins - Rolla, Ron Sheppard - Farmington l-r bottom row: George Morrow - Independence, Bob Williams - Carthage Not Pictured: Doug Bagby - Poplar Bluff MJMEUC Executive Committee Buddy Bennett, Chair Dan Watkins, Vice Chair Bill Johnson, Secretary/Treasurer Dick Malon, Chair, Engineering Comm. Doug Bagby, Chair, Operating Comm. Gary Whorton, Chair, Budget & Finance Comm. Steve Svec, Chair, Power Contract Cities Kim Wood, Member at Large Gary Quick, Immediate Past Chair MGCM Executive Committee Tom Tinsley, Chair Randy Hendren, Vice Chair Paul Allgood, Secretary/Treasurer 2000 Annual Report Page MAMU Executive Committee l-r top row: Duane Galloway - Springfield, Ken McClure - Springfield, Dan Watkins - Rolla, Ron Sheppard - Farmington l-r bottom row: George Morrow - Independence, Bob Williams - Carthage Not Pictured: Paul Hauser - Kirkwood

3 2001 LEADERSHIP Alliance Joint Operating Committee Bob Williams, Chair George Morrow, Secretary Dan Watkins Doug Bagby Randy Hendren Tom Tinsley Jeff Tumiati Steve Svec Ron Sheppard 2001 MJMEUC Executive Committee l-r top row: Dennis Klusmeyer - Shelbina, Bill Burks - Springfield, Buddy Bennett - Higginsville, Royce Fugate - West Plains l-r bottom row: Steve Svec - Chillicothe, Dan Watkins - Rolla Not Pictured: Doug Bagby - Poplar Bluff, Dick Malon - Columbia, Gary Whorton - Cameron MAMU Executive Committee George Morrow, President Dan Watkins, 1st Vice President Bob Williams, 2nd Vice President Ken McClure, Secretary Paul Hauser, Treasurer Duane Galloway, Chair, Legislative Comm. Ron Sheppard, Immediate Past Pres. MJMEUC Executive Committee Dan Watkins, Chair Doug Bagby, Vice Chair Bill Burks, Secretary/Treasurer Dick Malon, Chair, Engineering Comm. Royce Fugate, Chair, Operating Comm. Gary Whorton, Chair, Budget & Finance Comm. Steve Svec, Chair, Power Contract Cities Dennis Klusmeyer, Member at Large Buddy Bennett, Immediate Past Chair MGCM Executive Committee 2001 MGCM Executive Committee l-r top row: Randy Hendren - Madison, Dennis Klusmeyer - Shelbina, Jeff Tumiati - Stongington, IL l-r bottom row: Jim Berry - Clarence, Tom Tinsley - Waynesville Tom Tinsley, Chair Jeff Tumiati, Vice Chair Randy Hendren, Secretary Dennis Klusmeyer, Member at Large Jim Berry, Member at Large 2000 Annual Report Page 3

4 Letter from the Leadership and Management The Missouri Public Utility Alliance has grown in membership and in service during the period. Municipalities throughout the state tell us that the increasing costs and complexities of providing utility services as well as the growing regulatory burdens make Alliance services more valuable to them every day. During the period just completed, the Alliance has reinforced its legislative focus, established new regulatory resources, expanded its engineering staff, acquired a Training Center to house its new instructional programs, and strengthened its water and wastewater activities. At the same time, it has launched the MoPEP power pool and adopted a Gas Commission purchasing strategy with success that is steadily attracting new participants to each group. Finally, the Municipal Finance Program has provided funding for almost $35 million in municipal projects including some of the power generation units acquired with Alliance advice and assistance. These are just a few of the high points presented in this report. Financially, the 2000 Fiscal Year was also successful. The Municipal Gas Commission and the Missouri Association of Municipal Utilities both ended the year with stronger fund balances. The Electric Commission also had another strong year, with a $50,000 voluntary payment to the LAGERS retirement system producing a net reduction of about $34,000 (or 3.5%) in the Commission s financial reserves. These results position the Alliance for further improvements in service without the need to alter the dues formula. The concept of the MPUA financial structure provides efficiencies of consolidation while equitably serving the varied interests of its members. Dues and other general income are customarily intended to support activities such as government relations that benefit the broad membership of the Alliance. Personnel training and similar functions are generally provided on a fee basis and intended to be selfsupporting if not underwritten by specific grants or funding sources. Other functions specific to a particular utility (electricity, water, natural gas, etc.) are normally financed from functions or revenue relating to that industry. This framework assures every municipality, regardless of the nature of its utilities, high value from its membership in the Alliance. The leaders and staff of the MPUA remain committed to responding strongly to municipal utilities needs as they evolve during these times of manifold change and challenge. In providing that support, we constantly find that our greatest resource is in the members themselves the weight of their numbers, the diversity of their experience and the collective wisdom and commitment to public service that they bring to the governance of the Alliance. We hope that you will participate actively in contributing to that strength in the months and years ahead. October 1, 2001 Serving Municipal Utilities 2000 Annual Report Page 4

5 Government Relations The 2000 and 2001 state legislative sessions were busy ones in which the Alliance and MAMU strengthened relationships with key legislators. Electric restructuring issues remained prominent in Senate and House committees during the 2000 session, but were scaled back to corporate reorganization proposals in 2001 in the wake of California s disastrous deregulation experience. The MPUA hosted a series of Jefferson City dinners with key legislators during the 2000 session. A series of ten regional workshops on electric restructuring issues was also conducted for managers, citizens and elected leaders in MPUA member communities. State Representative Gary Burton of the Joplin area made a presentation at each workshop. In 2001, freshman legislators were hosted at Jefferson City dinners and provided an MPUA brochure designed to orient them to municipal perspectives on electricity deregulation The Alliance also sponsored several presentations to the Task Force on State Energy Policy during the spring and summer of 2001, including a briefing by American Public Power Association President Alan Richardson. Governor Bob Holden s appointment of the Task Force was sparked in part by alarmingly high natural gas prices during the heating season. The Alliance was asked to provide information to that group and to a special workshop of the House Committee on Utility Regulation regarding the successful gas purchasing practices of the Municipal Gas Commission. ANNUAL REPORT Activity Report and FY 2000 Financial Summary A major transition was made in Alliance regulatory support for water and wastewater systems... A major transition was made in Alliance regulatory support for water and wastewater systems in A Water/Wastewater Committee was formed and a 2000 Annual Report Page 5 special consultant was retained to monitor new and proposed regulations and develop coordinated municipal utility input to DNR regulatory processes. The Alliance and its members succeeded, along with other stakeholders, in encouraging the Department to abandon proposed revisions to wastewater sludge disposal regulations, and close attention has been given to the development of Phase II storm water regulations. At the federal level, MPUA leaders have visited most Missouri members of Congress and their staff assistants about national issues each year, and those relationships continue to strengthen. Among the issues of greatest concern are topics related to the wholesale electric power markets, including transmission regulation. The Alliance also increased its activity in this area through the Electric Commission s new membership in the Transmission Access Policy Studies group (TAPS) which lobbies Congress and participates in FERC proceedings on transmission matters. Training... the new emphasis on training was highlighted by acquisition of the MPUA Training Center. Substantially more extensive training programs were provided during the period, and the new emphasis on training was highlighted by acquisition of the MPUA Training Center. Seminars and workshops were offered on topics ranging from credit and collections to supervisory skills, accounting rules, customer communications and electric system fundamentals as well as many other subjects. The new Water/Wastewater Committee convened a special workshop in the spring of 2001 and organized a working group to investigate development of more localized training programs. Additionally, the Safety Committee formed in 2000 is examining new videotape safety programs and working to design an affordable program of on-site safety instruction. The Apprentice Lineworker Program has continued to attract record-setting enrollment each year, as many utilities experience growing challenges in attracting and retaining these

6 essential and highly skilled workers. Other technical training for electric system personnel continues to be provided through the MPUA affiliation with the Community Electric Power Association. newer one is devoted entirely to water and wastewater issues. The two services currently have approximately 100 and 35 participants respectively. Municipal Finance Program Students Member and Customer Communications The current period of widespread cost increases, rising customer service expectations, and regulatory changes makes it important to communicate well with customers. The MPUA has worked to support its members customer and community communications efforts. At the Alliance Annual Conference in September 2000, each member system was issued original material for a communications campaign that can be customized for its community. The kit included print and radio advertising, and cities taking advantage of it have reported positive feedback. The Alliance also initiated a local newsletter service, enabling members to send customers a quarterly sheet with news from their local utility. Each newsletter includes information of general consumer interest as well as material prepared by the member utility and appears as a local service. Communication among member utilities also improved greatly with the institution of the Alliance e- mail listserv systems. Municipalities may post a question, news or information for instant communication with all other listserv participants. The original listserv is used for matters of general utility interest, while the Year The kit included print and radio advertising, and cities taking advantage of it have reported positive feedback. From April 2000 through August 2001, the MPUA Municipal Finance Program funded close to $35 million in capital projects for member municipalities. Projects included water, sewer and drainage facilities, electric generating plants, various types of equipment and many other items. The easy application process and excellent rates have made the financing popular with municipalities throughout the state and attracted several new members to the Alliance. Funding under the original $100 million bond issuance by the Missouri Development Finance Board will be available for additional projects until December The easy application process and excellent rates have made the financing popular with municipalities throughout the state... Water and Wastewater MAMU established a new Water/Wastewater Committee in the fall of 2000 and President George Morrow appointed Mary West of Moberly to chair the group. The Committee quickly attracted participation by members throughout the state and determined that its multiple roles would include promotion of training programs, exchange of information on operational concerns and a heavy emphasis on monitoring of and input to state regulatory processes. Initial activities included establishment of the water/ wastewater listserv service and a spring workshop featuring DNR staff members and other experts. One of the issues emerging from the spring 2001 workshop was the increasing need for training of drinking water personnel, particularly in view of new regulatory requirements. The Committee established a working group to 2000 Annual Report Page 6

7 The regulatory affairs activity of the Committee was significantly strengthened... examine training needs, monitor DNR programs to fund training, and suggest designs for training programs that should be undertaken in concert with other organizations or independently. The regulatory affairs activity of the Committee was significantly strengthened by the Alliance s engagement of former DNR regional director Bob Hentges as its regulatory consultant. Mr. Hentges closely monitors departmental developments, maintains key contacts to ensure that the Committee is fully informed of major plans and provides MPUA stakeholder input to the Department. The work toward development of Phase II storm water regulations has been a noteworthy example of this activity during Natural Gas The Municipal Gas Commission s 2000 year was marked by efforts to cope with high commodity prices and by participation with the Misssouri Association of Natural Gas Operators (MANGO) to develop a model plan for compliance with new operator qualification rules. In response to alarming market forecasts, the Commission adopted a fixed-price purchase strategy that served its members well during the winter heating season. The Commission s orientation toward assuring reasonable price stability also helped attract two new members during the two-year period, Shelbina and Monroe City. In the spring and summer of 2001, the MGCM again took advantage of improving price conditions to secure the major portion of its gas needs through the winter of The purchase strategy employed a combination of contracts for futures and use of the Commission s storage capacity.... the Commission adopted a fixed-price purchase strategy that served its members well Annual Report Page 7 The Commission s overall financial status was strengthened during the period by higher gas volumes resulting from cold weather and growing membership, and by careful administration of nominations and costs of imbalances. This financial strength helped enable the Commission to take greater advantage of favorable prices when they appeared. Member cities also paid for some gas as it was placed in storage and will draw on it during the season. Electricity The period was challenging for electric utilities. Increasing fuel costs, transmission constraints and stockholder demands on private generators produced sharply rising costs for all retail and wholesale power customers not shielded by regulation or fixed price contracts. For municipal utilities, the times underscored the value of joint action. The Alliance acted to defend members contractual rights, champion fair transmission policies, and develop opportunities for cost-based generation capacity. Power Interchange services were utilized by some members for the first time, as they found the Electric Commission able to access spot market power less expensive than that available from their usual sources. Members also turned to the Commission for assistance with contract disputes and regulatory proceedings in instances where suppliers in the western side of the state assessed questionable fuel or energy charges. The Commission and Alliance also handled disputes over transmission charges in northeastern Missouri. Transmission issues became a highly active area of federal policy development with crucial significance in the structuring of future power markets. Acting through the Electric Commission, the MPUA intervened in Federal Energy Regulatory Commission dockets aimed at organizing regional transmission organizations and in a Missouri Public Service Commission case on the transmission affiliation of AmerenUE. The Alliance also participated with various national and regional organizations monitoring related activity on behalf of transmission dependent utilities.

8 MoPEP Millions of Dollars Year For almost half of the municipalities of the Electric Commission, the most significant Alliance-related development of was the January 1, 2000 operational launch of the Missouri Public Energy Pool #1 (MoPEP). Originally involving 19 cities, by January of 2002 MoPEP expects to supply the full power requirements of at least 24 Missouri municipal utilities that participate in the pool and govern its operations. As transmission access and power prices became greater concerns, the Alliance staff assisted a number of cities in arranging more than 30 new local generating units. These installations improved reliability assurance, limited market price exposure and often provided a significant source of short term revenue. The Alliance continues to review member generation and transmission contracts on request as well as reviewing distribution system operation when requested. Frequently, Alliance staff have been able to assist in optimizing the system or in highlighting areas for additional review. The Alliance also organized a working group to address some members growing difficulty in recruiting and retaining lineworkers and joined the APPA s Demonstration of Energy Efficient Developments (DEED) on behalf of all Electric Commission member cities. The MoPEP cities had a combined peak of 252 MW in August of 2001 with annual energy sales to members expected to exceed 1,130,000 MWh in The forecast for 2002 exceeds 310 MW and 1,400,000 MWh. Capacity currently available in the pool exceeds 345 MW with 95 MW of interruptible contracts. Additional resources are being arranged for The launch of MoPEP has resulted in several necessary improvements in the capabilities to serve these city loads. Among the most notable is a statewide data acquisition system that provides real time information on all members of the pool. This SCADA system provides data on all city interconnection flows and city generation every 2-4 seconds throughout the year, and is capable of operating some generating units which have been configured for remote operation. The real time information is used for scheduling, transmission service, and to provide ancillary services to pool members. Ancillary services that are not required to be provided by the transmission 2000 Annual Report Page 8

9 provider are being supplied by MoPEP. A contract with Western Resources assists MJMEUC in providing these services, transmission tagging, and in the scheduling of resources for MoPEP. In addition, the relationship allows for additional purchase and sales opportunities, further lowering the overall cost of service to the pool. Optimizing transmission arrangements for delivery of full requirement supplies are part of the process. Existing MJMEUC transmission contracts, contracts held by pool members, and new open access tariffs are all utilized in supplying members needs. The MoPEP utilities have determined that they want to grow into a more costbased system with less dependence on the market. Pooling their resources permits them to do so even in the case of those cities that have no individual generation units. In 2000, MoPEP was one of the very lowest cost wholesale suppliers in Missouri, and similar success is expected to be shown when 2001 data is complete. As an entity of Missouri s statutory Municipal Electric Commission, MoPEP rates reflect its non-profit, cost-based operations, and every added member permits fixed costs to be spread among a larger group. Duncan Kincheloe, General Manager & CEO; dkincheloe@mpua.org Jerry Feller, Executive Director for Governmental and Member Relations; jfeller@mpua.org John Grotzinger, Executive Director for Engineering & Operations; jgrotzinger@mpua.org Eve Lissik, Utility Engineer; elissik@mpua.org Mike Conyers, Member Services Director; mconyers@mpua.org Peggy King, Office & Communications Manager; pking@mpua.org Stacey Wise, Administrative Assistant; swise@mpua.org KEY MPUA CONSULTANTS MPUA Staff Ray Davis, Energy Trader Bob Hentges, Environmental Regulation Dick Doherty, Legislative Relations Leo Lawrenson, Financing Program 2000 Annual Report Page 9

10 MAMU The MPUA organization traditionally responsible for most coordinated training, education and government relations activity on behalf of member systems is the Missouri Association of Municipal Utilities. It serves the full range of utility services that may be operated by any Missouri municipality and administers the Municipal Finance Program pursuant to arrangements with the Missouri Development Finance Board. MAMU has operated since 1926 and has been organized as a private, not-forprofit 501(c)(6) Missouri corporation since Missouri Public Utility Alliance Formation The Missouri Association of Municipal Utilities, Missouri Joint Municipal Electric Utility Commission and Municipal Gas Commission of Missouri entered into a Joint Operating Agreement, dated October 14, 1998, for the purpose of combining resources to improve efficiency and reduce costs. The resulting alliance, known as the Missouri Public Utility Alliance, is managed by a Joint Operating Committee comprised of three representatives from the governing boards of each member. This committee reviews and recommends annual budgets for each member, determines the allocation of expenses on a cost reimbursement basis to members, consults on employee issues, and recommends contractual arrangements with joint consultants to each member. MJMEUC The Missouri Joint Municipal Electric Utility Commission is a political subdivision of the State of Missouri, established in 1979 under the Joint Municipal Utility Act. The Commission arranges power purchases and sales for members with supplemental needs or excess power supplies. In addition, MJMEUC offers professional expertise for analysis and improvement of member systems and negotiation of individual supply contracts. It also assists in arrangement of transmission services and intervenes in regulatory proceedings as necessary to protect members interests. The Commission may construct, operate and maintain jointly owned generation and transmission facilities. MGCM Also a political subdivision of the State of Missouri, the Municipal Gas Commission of Missouri was established in 1988 to assist member municipalities in meeting their needs related to natural gas supply and operations. The Gas Commission may provide for financing, acquisition and operation of natural gas production, transmission and distribution facilities and resources. The MGCM contracts for supply of the combined gas requirements of member cities and maintains storage facilities for use in load balancing and cost stabilization Annual Report Page 10

11 2000 MEMBER STATISTICS MGCM MJMEUC MoPEP Affiliation City, Name, Title Population Number of Retail Meters Retail Units Sold Retail Sales (Dollars) Peak Demand Electric Gas Water Electric (kwh) Gas (Dkt) Water (gal) Electric Gas Water Electric (KW) Gas (dkt) Water (gal) (max. hourly) (max. daily) Albany, Thomas J. Lesnak, City Admin. 1,958 1, ,298,820 1,024,046 52,316, , , ,768 5,500 1, ,229 Ava, Scott Fleetwood, Mayor 3,021 1,581 1,386 42,175, ,346,231 2,752, ,848 10, ,414 Berger 277 Bethany, Larry D. Sanders, Supt.-Water & Light 3,005 1,778 1,511 1,538 32,519, , ,812,080 2,175,590 1,308, ,748 9,400 2, ,500 Branson, Deanna Schlegel, Dir. of Finance , ,236,000 3,617,634 Butler, Dennis Pyle, City Admin. 4,099 2,220 2,066 44,103, ,755,762 3,108,146 1,175,498 12,800 1,190,000 Cabool, Gene Swanson, City Admin. 2,006 1, ,297,000 91,670,336 2,026, ,846 8, ,000 California, Gary O. Wells, Utilities Supt. 3,465 2,241 1,943 35,875, ,598,800 2,614, ,156 10,514 1,600,000 Cameron, Gary Whorton, Dir. of Utilities 10,300 3,010 2,600 61,383, ,588,000 4,480,195 1,319,750 16,980 1,881,900 Campbell, Raymond Gunter, Mayor 2,165 1,043 1,102 16,783, ,096,950 1,232, ,698 5, ,030 Bruce Vinson, Supt. Carrollton, Jim Paul, Supt. 4,300 2,258 1,922 36,871, ,518,100 2,517, ,218 12,200 1,900,000 Carthage, Bob Williams, General Mgr. 10,747 7,037 5, ,300, ,165,675 11,390,106 2,202,005 54,600 5,360,000 Centralia, Lynn Behrns, City Admin. 3,900 1,919 1,591 25,525,000 1,136,800 1,721, ,777 7, ,811,000 Chillicothe, Steve Svec, General Mgr. 8,700 4,682 4, ,676, ,230,400 5,902,537 1,287,814 28,500 2,690,500 Citizens Electric Corp., Dan Rodamaker, General Mgr. 24, ,917,000 30,993, ,300 Clarence, Jim Barry, Supt. of Utilities 1, ,724 24,105, , , ,000 Columbia, Richard E. Malon, Dir., Water & Light 79,873 38,916 37, ,519,504 4,083,809,418 55,626,631 8,976,135 22,800 1,764,000 Tina Worley, Utilities Services Mgr. Craig, Terry Eaton, Mayor ,000 88,000 60,000 Crane, Jack Swearingen, City Supt. 1, ,114, , ,368 94,994 3, , Annual Report Page 11 El Dorado Springs, Eric McPeak, Utility Dir. 3,868 2,026 1,878 42,391, ,066,188 2,898, ,911 11,100 Farmington, Ronald Sheppard, Utility Supt. 14,429 5,292 4, ,740, ,345,124 9,600, ,930 37,413 1,810,000 Fayette, Kerry Robinson, City Administrator 2,793 1,281 1, ,459 83,635,133 1,640, ,711 6,000 49,850 Fredericktown, C. Timothy Morgan, City Admin. 3,940 2,048 1,882 38,737, ,538,500 2,519, ,338 10, ,100 Fulton, Ray Luhring, Supt. of Utilities 11,500 4,830 3,785 4, ,301, , ,399,441 9,150,921 4,061,056 1,167,049 34,600 7,624 1,977,600 Gallatin, Jason Helton, City Admin. 1,650 1, ,154,378 98,261 84,318,700 1,396, , ,119 3,900 1, ,000 Roger Loxterman, Supt. Grant City, Charles L. Downey, Mayor ,457 57,620, , , ,000 Hannibal, Robert Chriscinske, General Supt. 18,004 8,866 7, ,600, ,510,760 11,622,735 2,425,607 59,700 5,575,000 Harrisonville, Keith Thomas 8,795 96,232,675 Hermann, Charles Browne, City Admin. 2,754 1, ,350 51,993, ,700 98,881,600 2,913, , ,679 1,135 1, ,294 Higginsville, Lee Barker, Electric Supt. 4,693 2,321 1,984 49,338, ,344,000 3,154,897 1,185,032 14,000 1,260,000 Hollister, John Lewis, City Admin. 3,867 1, ,866, ,871

12 MGCM MJMEUC 2000 MEMBER STATISTICS MoPEP Affiliation City, Name, Title Population Number of Retail Meters Retail Units Sold Retail Sales (Dollars) Peak Demand Electric Gas Water Electric (kwh) Gas (Dkt) Water (gal) Electric Gas Water Electric (KW) Gas (dkt) Water (gal) (max. hourly) (max. daily) Houston, Bill Bates, City Admin. 2,218 1,231 1,063 28,368, ,040,300 1,754, ,603 7, ,132 Independence, 116,000 53,463 45,813 1,002,025,328 4,513,000,000 71,285,056 10,179, ,900 22,407,000 George Morrow, Power & Light Dir. Jackson, John King, Plant Supt. 12,500 5,803 5, ,141, ,149,300 8,700,463 1,039,038 34,000 2,200,995 Jim Roach, Dir. of Utilities Kennett, Larry V. Jones, Supt. 10,941 5,907 4,386 4, ,805,420 1,441, ,187,272 6,553,130 2,482, ,907 39,100 5,022 2,000,000 Kirkwood, Paul Hauser, Director 30,000 9,889 10, ,304,154 1,412,000,000 13,681,413 3,115,521 61,476 7,582,000 Lamar, Lynn B. Calton, City Admin. 4,168 2,483 2,140 84,736, ,964,863 3,650, ,766 19, ,000 La Plata, Daryl Cooper, Electric Supt. 1, ,880,551 34,684, , ,779 2,800 Lebanon, Stanley Allen, Mayor 11,166 5,529 5, ,662, ,215,086 13,900, ,341 52,900 Liberty, Arthur H. DeWitt, Finance Dir. 25,676 9,137 1,237,360,000 3,163,693 Lockwood, LaRue Lemons, Mayor 1, ,985,470 36,738, , ,781 2, ,000 Macon, Vern Kincheloe, General Mgr. 5,571 2,871 2,165 2,555 82,765, , ,518,520 4,528,354 2,424,858 1,128,198 19,600 3,783 2,540,000 Madison, Randy Hendren, Utilities Supt ,514 13,395, ,157 83, ,000 Malden, W.F. Provance, President, BPW 5,023 2,587 2,216 66,793, ,949,000 3,067, ,552 16, ,000 Marceline, Mike Leighton, City Mgr. 2,645 1,371 1,224 27,039, ,844,444 2,048, ,187 7,000 Kirk Lockwood, Utilities Supt. Marshall, Paul Jensen, General Mgr. 12,711 5,868 4, ,200,796 1,303,689,100 9,562,236 2,170,349 45,000 5,040,000 Maryville, Mathew Chesnut, Asst. City Mgr. 10,012 Memphis, Dave Kittle, Line Supt. 2,094 1,305 1,076 15,289, ,787,700 1,166, ,021 5, ,323 Mike Ahland, Supt. Middletown, Sandra Willis, City Clerk ,254 6,195,622 75,854 18, Milan, Kathy Arnold, City Admin. 1,767 1, ,350, , ,000,000 1,991, , ,472 7,800 3,691 1,150,000 Moberly, 12,983 5, ,676,785 1,298,399 2,160,000 Mary West, Asst. Dir. of Public Works Monett, Peter Rauch, Utilities Supt. 7,396 3,966 3, ,559,892 1,102,980,320 10,165,890 1,336,929 39,374 5,600,000 Monroe City, Bill Elliott, Power Production Supt. 2,733 1,400 1,180 1,220 55,895, , ,771,000 2,808,217 1,108,976 10,100 1, ,000 Mount Vernon, Gene Stanton, Dir. of Public Works 4,017 2,052 1,704 69,600, ,750,000 3,448, ,381 Mountain View, Bob Young, City Admin. 2,430 1,390 1,137 33,776, ,966,687 2,047, ,814 8,328 New Florence, Glen Devlin, City Supt ,309 2,624, ,315 92, ,000 New Haven, George Panhorst, Mayor 1, ,101 63,748, , ,043 1, ,990 New Madrid, Furgison Hunter, City Admin. 3,215 Nixa, Brian Bingle, City Admin. 12,000 5,633 4,947 94,793, ,747,008 5,283,234 81,242 28,400 1,000,000 Otis Hall, Cust. Services Mgr. Odessa, Roger Elder, Dir. of Public Works 4,818 2,134 1,846 47,813, ,762,800 3,326, ,823 13, ,000 Oronogo, Sharon Struve ,689 1,784, , ,981

13 MGCM MJMEUC MoPEP 2000 MEMBER STATISTICS Affiliation City, Name, Title Population Number of Retail Meters Retail Units Sold Retail Sales (Dollars) Peak Demand Electric Gas Water Electric (kwh) Gas (Dkt) Water (gal) Electric Gas Water Electric (KW) Gas (dkt) Water (gal) (max. hourly) (max. daily) Owensville, Jeff Limberg, Supt. 2,500 1,439 1,326 24,863, ,566,000 1,876, ,588 7, ,632 Palmyra, Don Lloyd, General Supt. 3,371 1,818 1,490 39,666, ,860,378 2,492, ,422 10, ,000 Paris, Phillip Shatzer, Supt. of Operations 1, ,209,000 66,907 36,663, , ,291 2,936,707 3,425 Park Hills, John Black, Dir. of Utilities 12,850 4, ,278,111 1,228,251 1,811,000 Perry, Don Huff ,035 47,495 18, , , ,234 Poplar Bluff, Doug Bagby, General Mgr. 16,996 9,392 7, ,625, ,462,000 13,708,419 1,547,977 74,000 5,076,000 Rich Hill, Alvin Briscoe, Mayor 1, ,499,908 37,700, , , ,000 Richland, Anita Ivey, Administrator 2,022 1, ,125 15,433, ,495 55,618,900 1,096, , ,562 4, ,380 Rock Port, Tim Taylor, Mgr., BPW 1, ,892,440 49,191, , ,430 3, ,771 Rolla, Dan Watkins, General Mgr. 15,579 7,866 5, ,638, ,733,930 14,495,903 1,341,359 53,400 2,269,966 Rossville, IL, Terry Prillaman 1, ,537 38,552, , ,345 Salisbury, Steven Smith, Chairman, BPW 1,800 1, ,776,000 62,243,000 1,136, ,604 4, ,000 Dean Gauthier, Supt. Shelbina, Dennis Klusmeyer, City Supt. 2,172 1, ,224, ,237 77,841,660 2,396,844 1,217, ,319 8,200 1, ,500 Sikeston, Edward Throop, General Mgr. 18,000 9,020 8, ,454,558 1,068,282,600 13,330,756 2,053,049 71,200 5,700,000 Slater, Andree Petersen, Mayor 2,186 1,200 1,250 20,157,000 1,500,000 1,370, , ,000 Springfield, 308,332 91,866 74,667 70,120 2,926,000,000 11,763,665 11,406,687, ,185,486 67,884,966 21,530, , ,331 51,577,000 Bill Burks, Sr. Mgr-Electric Systems Larry Darrow Robert Roundtree, General Mgr. St. James, William (Jim) Morrison, Mayor 3,256 1,923 1,036 1,591 38,832,770 98, ,793,700 2,539, , ,004 10,037 St. Robert, Jack Fincher, Supt. 1,730 1, ,400 40,000,000 45,000 10,000,000 2,226, , ,120 9, ,880,024 Stanberry, Fred Helm, City Admin. 1, ,034,546 68,690 52,075, , , ,539 2, ,456 Stonington, IL, Jeff Tumiati, General Supt. 1, ,430 25,884, ,928 97,272 Sullivan, Joseph Thurmond, Electric Commissioner 5,661 3,317 2,630 90,534, ,984,200 5,119, ,025 18,000 Thayer, Rosella Simpson, City Clerk 2, ,049 20, , , ,476 Trenton, Kerry Sampson, City Admin. 6,800 3,220 2,930 66,357, ,058,000 4,787,000 1,441,500 18,300 Unionville, Dennie Sheehan, Supt. 1,985 1, ,064 18,277, , ,000,000 1,035, , ,757 4,900 1, ,000 Vandalia, Alan Winters, City Admin. 2,683 1,447 1,415 18,857,893 74,220,210 1,362, ,685 5, ,000 Aaron Renfro, Utility Supt. Waynesville, John (Tom) Tinsley, City Admin. 3,507 1, , ,236, ,322,340 2,314, , ,860 9, ,138 West Plains, Royce Fugate, CA/Engineer 11,245 5,363 4, ,414, ,694,801 10,064,000 1,215,000 38,859 3,500,000 Westville, IL, Mike Bennett 3,300 1,607 1, , ,572, , ,108 1,345 45,000 Willow Springs, Chuck Daniels, Electric Supt. 2,039 1,159 1,083 27,621, ,595,133 1,636, ,363 6, ,713 TOTAL 970, , , ,970 10,665,860,349 19,200,705 44,073,703, ,121,772 91,176,863 98,165,233 2,303, , ,479,237

14 BALANCE SHEETS December 31, 2000 ASSETS CURRENT ASSETS MJMEUC MAMU MGCM Cash and cash investments $632,401 $496,348 $184,752 Accounts receivable 1,948,373 91,579 2,313,687 Due from MAMU 314, Prepaid expenses 5,575 3,457 3,750 Gas in storage - - 3,667 Total current assets 2,901, ,384 2,505,856 PROPERTY AND EQUIPMENT, NET 202,316 3,767 - Total assets $3,103,598 $595,151 $2,505,856 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable $1,884,650 $119 $2,147,681 Accrued payroll and payroll taxes 30, Due to MJMEUC - 314,933 - Imbalance ,001 Unearned revenue 264, ,522 - Total current liabilities 2,179, ,574 2,270,682 Advances from members ,968 Total liabilities 2,179, ,574 2,369,650 EQUITY 924, , ,206 Total liabilities and equity $3,103,598 $595,151 $2,505,856 The annual audit of the Alliance was performed by Williams-Keepers LLC, Certified Public Accounts of Columbia, Missouri. The complete audit report is available at the Alliance Office Annual Report 9 Page 14

15 STATEMENTS OF REVENUES AND EXPENSES AND CHANGES IN EQUITY Year Ended December 31, 2000 OPERATING REVENUES Sales $25,001,641 $ - $5,879,888 Membership dues 282,386 66,493 - Bond pool income - 150,000 - Apprentice program - 76,820 - Management fee - MGCM - 70,181 58,478 Annual convention and other meetings 28, Training - 10,570 - Advertising 7, Infrared services - 7,318 - Miscellaneous 22, Total revenues 25,342, ,170 5,938,366 OPERATING EXPENSES Power purchases 24,482, Gas purchases and related costs - - 5,781,784 Personnel services and support staff 457, ,010 - Bond pool - 66,801 - Meetings, conferences and travel 56,020 7,317 - Apprentice program - 56,218 - Legislative consultant and legislative expenses - 53,446 - Insurance 6, Services 166,288 18,763 - Materials and supplies 17, Office lease - 3,372 - Utilities 139, Training - 3,195 - Miscellaneous 1, ,558 Depreciation 33,753 1,131 - Marketing and promotions 19,407 15,000 - Management fee ,181 Total expenses 25,380, ,535 5,861,523 Excess operating revenues over expenses (38,065) 32,635 76,843 OTHER FINANCING SOURCES AND ( USES) MJMEUC MAMU MGCM Interest income 53,981 7,933 4,610 Interest expense - - (973) Payment to reduce unfunded pension liability (50,000) - - Total other financing (uses) sources, net 3,981 7,933 3,637 (Deficiency)/excess of revenues over expenses (34,084) 40,568 80,480 Equity, beginning of year 958,410 76,009 55,726 Equity, end of year $924,326 $116,577 $136,206 The annual audit of the Alliance was performed by Williams-Keepers LLC, Certified Public Accounts of Columbia, Missouri. The complete audit report is available at the Alliance Office Annual Report Page 15

16 Membership Rock Port Craig Maryville Grant City Stanberry Gallatin Cameron Liberty Bethany Albany Independence Odessa Butler Carrollton Harrisonville Trenton Marshall Higginsville Rich Hill El Dorado Springs Lamar Lockwood Carthage Oronogo Mount Vernon Monett Richland Lebanon Springfield Nixa Crane Slater Unionville Milan Salisbury La Plata Chillicothe Marceline Macon California Ava Branson Hollister Shelbina Paris Memphis Monroe City Perry Moberly Madison Centralia Middletown Fayette New Florence Columbia Fulton Rolla Waynesville St. Robert Cabool Clarence Palmyra Hannibal Houston Willow Springs Vandalia West Plains Hermann Berger New Haven Kirkwood Owensville Sullivan St. James Park Hills Mountain View Thayer Illinois Village of Rossville Village of Stonington City of Westville Farmington Fredericktown Jackson Poplar Bluff Sikeston New Madrid Malden Campbell Kennett Missouri Public Utility Alliance Missouri Association of Municipal Utilities Municipal Gas Commission of Missouri Missouri Joint Municipal Electric Utility Commission 2407 W. Ash, Columbia, MO Phone: 573/ Fax: 573/ Annual Report Page 16