MEMBER STRONG ANnual Report

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Shauna Oliver
5 years ago
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1 MEMBER STRONG ANnual Report

If you were asked, Where do you belong? how would you answer? Perhaps you would think of how you belong to a faith community, your family or a local civic organization.

2 If you were asked, Where do you belong? how would you answer? Perhaps you would think of how you belong to a faith community, your family or a local civic organization. Do you belong to a bowling league, a quilting club or an exercise group? Maybe you feel a sense of belonging with fellow fans of a sports team. Some folks measure belonging by social media interactions. The idea of belonging to a group that sends you an electric bill might seem unusual. But, at Inter-County Energy Cooperative, our member-owners are the reason we exist. For 80 years and counting, our mission has been to improve your quality of life. We hope you review this report s financial numbers; but unlike corporations whose strengths are measured by merely the bottom line, Inter-County Energy Cooperative knows that our members are our greatest asset. We are Member Strong As we mark 80 years of Inter-County Energy Cooperative, we look to members like Raymond Asher, 96, and Kristen Adams, 25, pictured on the cover of this report. They are testament to the power of membership across generations. Kristen became a member in Asher became an Inter-County member 66 years earlier, in Oh, I m glad to be a member, Raymond says, calling rural electrification the greatest technological improvement of his lifetime. That changed everything for us on the farm. It was called REA. We went and bought appliances, electric stove, refrigerator, things like that. I think we got a television, too. Raymond and Kristen are two of the more than 26,000 members of Inter-County Energy Cooperative, part of a strong network of 1.5 million Kentuckians and 42 million Americans who belong to electric cooperatives. Co-ops work together to protect your interests, provide you at-cost energy and advocate for our communities. I just like being a part of something that s more than just an electric company, Kristen says, more than just pay your electric bill and that s it. Just being able to see what all the co-op does for the community. Our board of directors is elected by you and is accountable to you. Every member pays the same rate and each member has one vote. When you think Member Strong, think of where you belong I ve been a church member ever since I was 16 years old, Raymond says. I think if you ve been through what I ve been through, you believe in God. I ve been through the Belgian Bulge in World War II in Europe. I went with some of the last troops in Europe, the boys that could go.

Cover: Raymond Asher, 96, of Crab Orchard, and Kristen Adams, 25, of Stanford, represent a diverse group of Inter-County Energy Cooperative s 26,000 members.

3 Cover: Raymond Asher, 96, of Crab Orchard, and Kristen Adams, 25, of Stanford, represent a diverse group of Inter-County Energy Cooperative s 26,000 members. Photo: Joe Imel CO-OP STRONG Left: Inter-County Energy s new CEO/President Jerry Carter talks with Senior Vice-President of Finance and Administration Sheree Gilliam. Photo: Joe Imel Below: Members can lease solar panels from Cooperative Solar, without the hassle, maintenance and expense of owning their own panels. Cooperative Solar Farm One is a 60-acre solar array serving Inter-County Energy members and Kentucky s Touchstone Energy Cooperatives. Photo: Tim Webb

4 In my life, God comes first and then my family, the veteran adds. Then my church after that. My friends. I ve got a lot of friends. The last place I belong is going to be up there, Asher says, pointing skyward. I m part of the healthcare community, Kristen says. I m involved in my church in my hometown. As a mom, I m part of that group. I feel like that s part of a silent membership you re a part of once you become a mom. And, both are members of Inter-County Energy. we are co-op strong Members empower Inter-County Energy Cooperative to make necessary and strategic investments in infrastructure and people so that we can continue to fulfill the promises made when we were founded 80 years ago. That means investing in innovation, maintenance and safety. More than ever before, safe, reliable and affordable electricity is essential to energizing our lives and keeping our communities connected. The employees of Inter-County Energy take that responsibility to heart. The value of Inter-County Energy can be found in our commitment to deliver energy to you on the hottest days, the coldest nights, and every day in between. Members are paying increased attention to how our energy is generated. While some prioritize the reliability and affordability of coal and natural gas, others want access to renewable energy sources, such as solar power. With Cooperative Solar, members of Inter-County Energy Cooperative have unprecedented options for affordable solar power. Now is an ideal time to sign up. You can lease solar panels at Cooperative Solar Farm One, a 60-acre solar array built for Kentucky s Touchstone Energy Cooperatives. You can harness the energy of the sun without the hassle, maintenance and expense of owning private solar panels. Inter-County Energy Cooperative thanks you for your trust, support and membership. Our members provide stability and a sense of local ownership. You are more than customers, you are member-owners. Together, we are Member Strong. Conservation Clubhouse biologists, a program for Kentucky s Touchstone Energy Cooperatives, go into classrooms, and also are at annual meetings, as shown above, to teach environmental sustainability and provide hands-on interaction with snakes and reptiles. Photo: Tim Webb

5 Inter-County Energy s Board of Directors, seated from left, Vice-Chairman Jason E. Todd, Secretary-Treasurer J. Kevin Preston, Attorney James Hadden Dean, President/CEO Jerry Carter; standing from left, William H. Peyton, Louis A. Kerrick, Chairman Joseph H. Spalding and Allen Goggin. Photo: Joe Imel ANNUAL MEETING OF MEMBERS INTER-COUNTY ENERGY COOPERATIVE CORPORATION Where: Boyle County High School When: Friday, May 4 Registration Time: 5 p.m. Meeting Time: 7 p.m. The annual membership meeting of this co-op organizes to take action on the following matters: 1. Call to Order 2. Appointment of Parliamentarian 3. Determination of Quorum 4. Reading of the Official Meeting Notice and Proof of Mailing 5. Reading of the Minutes of the previous Annual Meeting of Members 6. Report of the Credentials and Elections Committee 7. Election of Board Members 8. Unfinished Business 9. New Business 10. Report of the Officers, Board Members and Committees 11. Adjournment Report Of Nominating Committee In connection with the election of two directors scheduled for this meeting, the following members have been certified and nominated for directors by the Credentials and Elections Committee appointed by the Board of Directors of the Cooperative pursuant to the Bylaws: MARION DISTRICT Joseph H. Spalding 99 Lakeview Avenue Lebanon, KY CASEY DISTRICT William H. Peyton 4435 KY 906 Hustonville, KY OFFICIAL BUSINESS MEETING AGENDA

6 2017 inter-county energy SERVICE AREA ACTIVE ACCOUNTS (as of December 31, 2017) GARRARD...4,793 LINCOLN...7,358 BOYLE...3,598 MARION...5,580 MERCER...1,996 NELSON CASEY...1,971 LARUE WASHINGTON TAYLOR...74 MADISON...49 ROCKCASTLE REVENUE SOURCES 78.52% RESIDENTIAL 8.75% COMMERCIAL 9.67% INDUSTRIAL 3.06% OTHER ACCOUNTS BILLED ,245 AVERAGE KWH USAGE (residential per month) ,095 MILES OF LINE ,978 CONSUMERS PER MILE ELECTRICITY REMAINS A GOOD VALUE The cost of powering your home rises at a slower pace than many of your typical expenses. Compare the average price increase of these expenses each year over the last five years, and the value of electricity shines. Average Annual Price Increase Percent % 3.3% 3% 2.5 FOR INFORMATION AND INQUIRIES 1009 Hustonville Road Danville, KY % Education Rent Medical Care Electricity Sources: U.S. Bureau of Labor Statistics Consumer Price Index

7 STATEMENT OF OPERATIONS As of December 31, 2017 Operating Revenue... $46,701,899 OPERATING EXPENSE Purchased Power... $32,070,679 Operating System... $10,092,603 Depreciation...$4,215,522 Taxes...$68,323 Interest on Loans...$1,712,901 Other Deductions...$34,838 Total Cost Electric Service... $48,194,866 Operating Margins... ($1,492,967) Non-Operating Margins...$91,046 G & T Capital Credits...$1,109,935 Other Capital Credits...$50,880 Patronage Capital and Margins...($241,106) MAJOR COSTS BALANCE SHEET As of December 31, 2017 ASSETS Total Utility Plant... $127,507,274 Less Depreciation...$37,387,444 Net Utility Plant...$90,119,830 Investment in Associate Organization...$28,036,007 Cash... $5,463,646 Notes Receivable...$139,459 Accounts Receivable... $5,771,629 Inventory...$451,464 Expenses Paid In Advance...$438,093 Deferred Debt and Other Assets... $1, 160,814 Total Assets... $131,580,942 LIABILITIES Consumer Deposits...$592,731 Memberships and Other Equities...$44,346,262 Long-Term Debt...$71,608,154 Notes & Accounts Payable... $9,375,808 Other Current Liabilities... $5,657,987 Total Liabilities... $131,580, % POWER BILL 21.61% OPERATING 9.25% DEPRECIATION 3.67% INTEREST

8 OFFICIAL NOTICE 2018 ANNUAL MEETING FRIDAY, MAY 4 Boyle County High School 1637 Perryville Road Danville, KY Registration: 5 p.m. Business Meeting: 7 p.m. Featuring mark bishop Caricaturist Denny Whalen Door prizes Free food Safety demonstrations Free health fair Fun for the kids Children s Entertainment Magician Dave Cottrell FREE Energy-saving lightbulbs for members who attend!

You make the difference

You make the difference Co-opConnection 882 Wilson Road P.O. Box 477 Newberry, SC 29108 Office Hours 8 a.m. 5 p.m. Monday Friday General Information (803) 276-1121 (800) 479-8838 Fax: (803) 276-4121 nec.coop Nights, Weekends,