Standing on Annual Report

Transcription

1 Standing on 2015 Annual Report

2 Your Board of Trustees Building on our Great works require great planning. Whether you re building a skyscraper, raising a bridge or creating and maintaining 3,000 plus miles of electric line, you must start with a purpose in mind, and a plan for success. Danny McNeil District 4 President John Clark, Jr. District 3 Vice President Debra E. Baxley District 1 Secretary For Wiregrass Electric Cooperative, our plans are laid on a strong foundation: the Seven Cooperative Principles. Cooperatively owned utilities are different from most of the businesses you come into contact with each day, and they serve an important role in rural America. Providing reliable electricity to rural areas like ours may not be profitable enough for a company trying to make big profits for its stockholders. But our focus is on serving you, and our first priority is to bring affordable electricity with world-class service to the people who live and work in the Wiregrass. We are also guided by the same principles as every not-for-profit electric cooperative in the nation. These principles help define our mission and our culture, and spur us on to provide the best possible service to our members while making the Wiregrass a better place. Donna Parrish District 2 Tracy Reeder District 5 Kip Justice District 6 In the following pages, you will learn about all the things your cooperative has been working on in the last year. You will read about upgrading poles and keeping the right-of-way clear, partnerships that make our cooperative stronger, and a new foundation that promises to turn pennies into major change for the Wiregrass. We hope that as you read the pages of this report, you re proud of all that your cooperative has accomplished over the past year. We also hope you ll learn about the seven cooperative principles and how they guide our long-range planning as well as our day-to-day activities here at Wiregrass Electric. Donald Ray Wilks District 7 Greg McCullough District 8 Nolan Laird District 9 Les Moreland, Chief Executive Officer Danny McNeil, President, Board of Trustees

3 Neighbors serving neighbors Throughout this report, you ll read about the accomplishments of Wiregrass Electric Cooperative, as well as our plans for the future. We want to make one thing clear: Without our employees, none of this would be possible. It takes an entire team of dedicated, well-trained individuals to make a power distribution system run. It takes something else entirely to make the kind of organization that is WEC an organization that values its members, gives back to its community and strives to deliver over-the-top service in every interaction. It takes a family. The employees of WEC not only do an amazing job in their day-to-day work, but they are also called upon to work under extremely stressful and often dangerous conditions. They do it to provide the convenience, the safety and the power of electricity to the homes and businesses of the Wiregrass the people of our region. They also do it because our members are also our neighbors. Unlike some electric distributors, we serve where we live. You see our cooperative family at the grocery store, at the little league field and at church. When the phone rings at 2 a.m., the linemen who respond to the call are going to help their neighbors, friends and family. We appreciate our employees and all that they do. We also appreciate the opportunity to serve the Wiregrass and provide reliable, affordable electricity to our members. Your Leadership Team Les Moreland Chief Executive Officer Brad Kimbro Chief Operating Officer Lineman Appreciation Day On June 1, WEC and its members took time to honor their linemen. Family and friends posted supportive messages on social media, which were shown to the linemen during a celebration at WEC. Visit wiregrass.coop/likearock to view one of the videos. Linemen were also asked to appear on the Charlie Platt show that morning. To watch the video, along with several others, scan the QR code to the right! Jason Thrash Director of Engineering and Operations Lisa Lenoir Controller Voluntary and Open Membership Democratic Member Control Members Economic Participation Autonomy and Independence Education, Training and Information Cooperation among Cooperatives Concern for Community

4 Starting with members 1&2: Jeri Wiggins, a member services representative in our Ashford Office is part of team of individuals providing world-class service to WEC members on a daily basis. What sets electric cooperatives apart from other utility providers is that we answer first and foremost to members. As a member, you are not just a customer of WEC. You are an owner, and it is our mission to provide you with the best possible experience. Increasingly, that means offering the flexibility to pay bills, check usage, and manage your account when and where it is convenient for you. WEC is constantly striving to make those interactions as fast and easy as possible so members can get back to their life as soon as possible. Going above and beyond This May, WEC once again conducted a survey to help measure where member perception stands. The survey found that 90 percent of respondents who had made personal contact with the cooperative were either satisfied or very satisfied with their service. Those results put Wiregrass Electric well above the national average among utilities of all kinds, not just electric cooperatives. WEC is extremely proud of that top-notch service and aims to continue improving it with new initiatives every year. A new way to pay Installing PaySite kiosks at the Hartford, Dothan and Ashford locations was one of WEC s most exciting member service advances this year. Since they re available 24 hours, the kiosks give members another way to pay when our offices are closed, or a way to skip the line when paying in person, says Rhonda Webb, manager of member services. Facelift in Samson WEC is dedicated to providing top-quality service to all members, no matter where they choose to live in our service area. That s why the Samson office is getting a revamp. Once construction is complete, the new Samson office will feature drivethru service and a PaySite kiosk, delivering the best WEC has to offer. 1 Voluntary and open Membership A cooperative is a voluntary organization, open to all people who are able to use its services and who are willing to accept the responsibilities of membership.

5 Carole Nowling is a member services representative at our Samson office. Putting members InControl The InControl prepay program continues to be one of the most important tools members have for managing their electric bill on their terms. Now, the program is an even more powerful resource combined with the WEC mobile app and Weather Insights. These initiatives help members be proactive about their bills by tracking their electricity usage throughout the month and across changing seasons so they can adjust their habits as necessary. These programs have further improved members abilities to manage their payments, giving an impressive boost to InControl enrollment. Bigger and better The WEC website continues to serve as a 24- hour digital office that can help our members get answers and manage their accounts when our physical offices are closed. That online experience has earned awards on both the state and national levels; however, as part of our goal to keep improving it, the site will be retooled over the coming year to further improve its value to members. Voices of the Elders preserved in state archives Some members may remember the Voices of the Elders video Wiregrass Electric made back in 2008, interviewing six local residents about their memories growing up without electricity. In July, that important record of a nearly forgotten lifestyle was accepted into the Alabama Department of Archives and History as part of the Alabama Voices exhibit. We re honored to be able to help document the important transition to an electronic world for future generations. See the videos at: Christmas card contest shines bright again The 8th annual Christmas card design contest was a huge success, with dozens of students submitting their art. Last year s first-place winner was third-grader Dawson Deacon from Webb Elementary School. His design was featured on the cover of December s Alabama Living magazine and was the official WEC Christmas card. This has been a great program that the kids look forward to each year, and the parents too, says Deanna Albritton, member services coordinator. Cutting back together This Jan. 7 and 8, temperatures in the Wiregrass dropped below 20 degrees, triggering peak demand for electricity. High peaks mean higher bills since wholesale power prices go up. But when WEC notified members that low temperatures were coming through a Peak Alert, they pulled together to adjust thermostats, limit hot water usage and take other measures to control energy consumption. We were able to call out to our members on Facebook, Twitter and other places, says Brad Kimbro, chief operating officer. We re very thankful for our members actions that kept our usage much lower than it could have been. Collin Craig named Youth Leadership Council national representative After attending the NRECA s Youth Leadership Council in Washington, D.C., this summer, Collin Craig, one of WEC s Youth Tour participants, has been chosen as the YLC s national representative. He will now travel to New Orleans in February, where he will present the speech that won him the honor to over 8,000 electric cooperative leaders from across the U.S. WEC is excited to be able to support Craig as he represents the Wiregrass to the nation. We are very proud of Collin and what he has accomplished, says Les Moreland, CEO. To find out more about Youth Tour, visit: 2 Democratic Member Control A cooperative is a democratic organization controlled by its members who are given opportunities to actively participate in setting policies and making decisions.

6 Remaining good stewards : As a WEC accountant, Barbara Berry helps WEC remain good stewards of our member s investment. As a cooperative, Wiregrass Electric operates as an at-cost provider of electricity. Instead of a board of shareholders who make decisions based off profits, we serve our neighbors and those who live in the communities that make up our service area. WEC was founded with the goal of providing energy to this area at an affordable rate. Today, as we continue that mission, we know it takes more than substations and power poles to truly serve our members it also takes sound financial planning. How does WEC compare? For WEC, maintaining over 3,000 miles of electric line across often unfriendly terrain is a challenge some electric providers do not face. However, despite that fact, WEC s electric rates meet or beat many electric providers throughout the nation. When compared to other electric cooperatives across the country, WEC also carries much less debt. This takes a lot of planning, and a judicious use of resources. Through the use of technology and advanced training for WEC employees, our cost of labor is more than 20 percent lower than the national average when compared to other electric providers. While WEC has continued to grow its employee base over the years to provide the highest-quality service to our members, we have also remained good stewards of our members investments. Because of that mindset of service, WEC still finds itself in a financially strong position while able to fulfill all its mission. To learn more about how WEC compares to other cooperatives across the nation, visit my-co-op/how-does-wec-compare. The WPCA gives back to members, faster Five years ago, WEC restructured its rates to include a Wholesale Power Cost Adjustment. When WEC develops its annual budget, we allocate about two-thirds of our revenue for the purchase of wholesale power from our partner, PowerSouth Energy Cooperative. This is based on the recent actual cost of power. That number can sometimes be lower than estimated due to weather and other factors. When that happens, the WPCA gives us a way to return a credit 3 Members Economic Participation Members contribute to the capital of their cooperative. This capital is used to operate the cooperative, and it benefits the member in proportion to the amount of business they do with the cooperative.

7 to a member s monthly statement. Over the past five years, WEC has returned more than $7 million to our members through the WPCA. WPCA credits allow us to return funds much faster than if it were treated as capital credits, says Les Moreland, CEO. The WPCA allows us to quickly and accurately respond to monthly and seasonal costs of wholesale power and to costly weather events, such as the April 25 storms of this year. Where do the margins go? Capital Credits WEC provides electric service at cost. It takes a lot of funding to build and maintain electric infrastructure while purchasing electricity to distribute to our members (wholesale power). At times, WEC collects more money than it spends in a given year. We call these numbers margins, and we pay this money back to our members every year as capital credits or patronage capital. WEC has assigned and paid more than $50 million in capital credits to our members since our founding. There are not a lot of businesses you interact with on a daily basis that can say they give back all their profits. Currently, WEC retires these capital credits on a first in-first out cycle. We have retired nearly $5 million this way in the past nine years. Nearly 850 other electric cooperatives across the nation operate this way, says Brad Kimbro, COO. Operating this way ensures that our lending partner, the Rural Utilities Service (RUS), knows that we are able to pay back any debt. If we weren t able to do this, it would force us to turn to the only other source of available income our members and greatly increase our rates. WEC s expenses for Cost of Wholesale Power Margins Interest Expense Taxes Depreciation Administrative and General Consumer Accounts/Cust. Serv. & Info. Distribution - Maintenance Distribution - Operation 6% 5% 5% Regulations continue to threaten low electric rates 4% The federal government continued its plan this year to implement stronger and stronger regulations against the coal industry in the United States. WEC wants all members to be aware: These regulations have a direct impact on the cost of electricity for WEC members because they affect the price of wholesale power. If new generation facilities have to be built, or current facilities refitted, that cost will be passed on to WEC by its wholesale power partner, PowerSouth. In turn, WEC will have to pass those costs, which are substantial, onto its members. We believe that, with the technology we currently have available to us, says Brad Kimbro, COO, coal absolutely has to be part of our generation if we want to have an affordable, reliable source of electricity. While we hope that one day we ll be able to have alternative sources of power that are reliable, we re simply not there yet. Today, we need a mix of energy sources, and coal absolutely should be a part of that mix. 6% 1% 4% 1% 67% 4 Autonomy and Independence No matter what agreements cooperatives may enter with other organizations, its members maintain control and the cooperative remains independent.

8 5: Understanding the technology that keeps the lights on Jason Thrash, director of engineering and operations, (Left) looks at the state of the electric system with Service Manager Larry Galloway and Tammie Byrd, dispatcher. In order to provide safe, reliable electric service at the lowest possible cost, WEC relies on planning and a judicious use of technology. But, the heart of what we do is our employees. The line crew operating an auger to raise a new power pole, the dispatcher working a major outage at 3 a.m., the service man working in 100-degree heat to close a fuse and restore an outage: it s our team that keeps the power on. Why We Do It Working with electricity is an inherently hazardous job, but it doesn t have to be a dangerous job. WEC employees are continually and rigorously trained on how to work safely. This year, WEC kicked off an unconventional approach to promoting safety in a campaign called This is my why. The project asked the question, Why am I safe every day? and answered it with photos of family, friends and loved ones. These posters were featured in our offices and work trucks. The guys that work outside don t really have an office other than their truck. So we encouraged them to bring some pictures and make that their personal space, says Joey Brown, manager of operations. WEC was even invited to share the program at a safety summit in Indianapolis with other cooperatives across the country. This year, WEC surpassed more than 500,000 hours worked safely over a five year period. It s a great achievement, says Brown. We are proud of that record. We re more proud that everyone here gets to go home safe to their families every night. Staying trim A big part of keeping line crews safe is making sure they re kept out of harm s way as much as possible to begin with. That means reducing outages that can occur in rain, snow or any other weather. That s why the progress we ve made with our Right-of-Way program this year is so 5 Education, Training and Information Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of their cooperative.

9 This is my Why goes national Wiregrass Electric was proud to send members of our leadership team to the NRECA s 2015 Safety Leadership Summit this April to present our This is my why safety campaign. The program calls on our linemen and servicemen to keep pictures of their friends and family in their trucks to remind them why their safety is the top priority on any job. The Wiregrass was well-represented in Indianapolis as leaders from other cooperatives across the country responded positively, and even plan to enact similar programs themselves. important. Tree trimming helps WEC clear space around power lines, protecting them from tree limbs and underbrush that can lead to downed lines. Keeping the wilderness back takes constant attention, but it helps keep the power on for you and our linemen out of trouble. Rightof-Way Foreman Tim Granger is also particularly proud of the work his teams have done to move lines out of difficult-to-reach areas. We ve been able to make a lot of progress moving lines from places where they re deep in the woods to where they re right by the road, he explains. We re often fighting through those spots when it s storming, so it will save us a lot of time to have these lines easier to get to. Man and machine There is no such thing as a good power outage, but one that can be fixed quickly and without rolling a truck is certainly preferable. Thanks to the Supervisory Control and Data Acquisition (SCADA) system, this is often possible. SCADA controls our substation devices as well as some additional devices that have been added over the past year. It works in real time, alerting WEC as soon as there s an outage so that we can dispatch someone to fix it before members even have a chance to call. Together with our outage management system (OMS) Mayday Exercises Ten different organizations came together on April 9 to simulate a disaster scenario and learn how to solve problems. The Mayday simulation involved a school bus wrecking into a power pole that a WEC crew is performing maintenance on. We hope that an accident like this would never occur, says Jason Thrash, director of engineering and operations. But, we believe in being ready for whatever could possibly come our way so that we can keep disasters like this from becoming any worse than they would be already. we can even tell when calls from various areas indicate a larger shared problem at another part of our network. This year saw some significant improvements to the SCADA system, allowing us to monitor issues not only at substations, but downline from them as well. And when there is an outage, we can now switch power from one substation to another, getting your power back on quicker while we tend to the problem. Sticking to the plan All of that great technology would mean nothing without a solid plan, though. WEC puts together work plans every four years for projects ranging from upgrading power lines to reallocating distribution resources. Every two years, our engineering and operations departments review the plan to evaluate if there are projects that need to be added or some that aren t as much of a priority as they once were. WEC is currently in the last year of our current plan, which means we re already looking ahead to what should be on the docket for the next four years. Chief among our priorities is installing a tie line near the Murphy Mill substation connecting to circuits along 84 West in order to support continued commercial and residential growth in the area. We re looking forward to another strong four years of building the infrastructure that powers the Wiregrass. Staying in touch, informing our members Principle 5 is at the heart of WEC s communication program. We believe that every member of WEC should have many opportunities to be informed about the direction of the cooperative, the goals we achieve, the services we offer and the many roles we play in our communities. We also seek to educate members about important energy issues impacting the cooperative and, eventually, members power bills. That s why we have developed a communications plan that involves both print and digital media, as well as apps and more. Alabama Living - Each month, we produce several pages of material that not only highlight cooperative and industry news, but also feature stories from around the Wiregrass. This magazine is our place for in-depth explanations about larger topics such as energy production, creating an energy-efficient home and more. My Hometown Power - Every member of WEC receives our monthly newsletter, My Hometown Power. For most, it s in your electric bill that comes each month. For our InControl prepay or e-bill members, you receive it in your inbox. This is a single-page insert that helps us communicate important events or dates in the life of your cooperative. Be sure to read this every month so you can stay informed. wiregrass.coop - We consider our website to be a 24/7 office for the cooperative. Members can pay their bill, sign up for or disconnect service, view their energy usage in almost real time and more. At our Outage Central page, members can see live maps of any outages currently happening. Social Media - For up-to-the-minute news and updates, members should be sure to like WEC on Facebook (www. facebook.com/wiregrasselectric) and follow us on Twitter ( wec2). You can even find us on Instagram (wecgram).

10 6: Achieving our goals, together Reliable, affordable electricity fuels the growth of our partner communities. Here, WEC crews install electric service for the new Lincoln Shire subdivision in Dothan. Cooperation among cooperatives allows utilities such as Wiregrass Electric to accomplish so much more than they could alone. The electric cooperative concept began as a partnership between the Rural Electrification Administration and the men and women of rural America who were living without the conveniences of electricity. REA s low-interest loans and technical assistance, combined with the hard work and community spirit of rural residents, brought life-changing electricity to the homes and farms outside of the more populated cities. Today, these partnerships continue to make WEC stronger and improve the lives of our members. Partnering at the local, state and national levels If you re a WEC member, your ability to cook dinner or watch TV begins with PowerSouth Energy Cooperative. The generation facilities owned and operated by PowerSouth do the complicated work of converting natural resources such as coal or natural gas into electricity. PowerSouth then transmits that electricity to the distribution companies, like WEC, which own PowerSouth. The electric cooperatives across the state also partner with one another through the Alabama Rural Electric Association. As a trade group, AREA helps cooperatives like WEC control costs through economies of scale and coordinates disaster recovery assistance among utilities like in our April 25 storm (see pullout). The group also distributes Alabama Living magazine, an important way that WEC communicates with its members. Nationally, it is the National Rural Electric Cooperative Association (NRECA) that unites more than 900 electric cooperatives in 47 states. The NRECA also provides important services such as representing the interests of rural electric cooperatives to federal lawmakers in Washington, D.C. They also sponsor the national Youth Tour in Washington, D.C. Energy Services: A partnership with our members The energy services department was formed in 2010 to help members improve their homes or businesses by showing them ways to use less energy. WEC decided to form a partnership with our mem- 6 Cooperation among Cooperatives Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, regional, national and international organizations.

11 Our Building Blocks of Energy Efficiency Sister cooperatives help restore power on April 25 STEP 1 STEP 2 STEP 3 STEP 4 After a devastating line of storms came through on the evening of April 25, WEC found itself with 12,000 members without power and excessive damage to its system. Energy Audit Sign up for a FREE home energy audit. For absolutely no charge, WEC s professional Energy Services Department will come to your home and perform a series of tests designed to find exactly where your home is wasting energy. Our team will then provide you with a customized plan for ways to save you money on your power bill! Certified Contractor Call one of our certified contractors to make improvements to your home. WEC will provide you with a list of certified contractors who know how to make the improvements recommended by our Energy Services Department. These are trusted local companies with a reputation for doing quality work. Loan Program Most improvements can be made with little to no cost. For the more significant modifications, WEC announces the new Energy Efficient Loan Program. We now offer access to low-interest loans to pay for home improvements. You will be billed by Regions Bank through a loan program made possible by WEC and PowerSouth. Heat Pump Rebate Save money on a new heat pump. WEC will give you a significant rebate if you purchase a new heat pump to increase your home s energy efficiency. Combined with the loan program from Step 3, the Heat Pump Rebate Program can help you make the investment to increase your home s energy efficiency and save you money! In the cooperative spirit, sister cooperatives came to aid and helped over the next 48 hours with the monumental task of restoring downed power lines, destroyed poles and more. WEC would like to thank the cooperatives who sent crews to help: Pea River, Pioneer, Central, South Alabama, Dixie, Covington and Tallapoosa River electric cooperatives. bers to help make their homes more efficient, says Jessie Ingram, manager of the energy services department. When a member improves the energy efficiency of their home, it reduces the amount of electricity being wasted, saves the homeowner money on their power bill and helps WEC control its demand for electricity. WEC offers a comprehensive program to help members identify inefficiencies in their homes, find a trusted contractor and pay for the needed repairs. The last 12 months have continued to see the growth of these innovative programs, says Brad Kimbro, COO. We are proud to offer so many ways to help so many people. Want to help? Here s how to get involved. Remember, you are more than just a customer of WEC you have a very important role to play in this partnership as well.»take» advantage of payment options such as our InControl prepay program, bank draft or online bill pay, which help reduce WEC s operating expenses.»enroll» in H2O Plus to help WEC control the system s peak energy demand.»schedule» an energy audit for your home or business to identify and repair problems that are wasting electricity.

12 7: Making a positive impact, every day WEC s partnership with Habitat for Humanity has allowed it to stop high electric bills at their source: inefficient homes. Laura Sims (Right) stands with WEC COO Brad Kimbro and Wiregrass Habitat Executive Director Amy Schutz during World Habitat Day. Our last principle is perhaps our greatest: Concern for Community. This goes to the heart of what makes a cooperatively owned utility so unique. Instead of a company that works just to make profit and please its shareholders, you belong to an organization that actively works to make the Wiregrass community a better place to live, work and raise a family. Introducing Operation Round Up This year, in the spirit of serving our members and their communities, WEC launched a new program called Operation Round Up Charitable Foundation. The program rounds up a member s bill to the nearest dollar, and that amount is donated to local charities in our service area. All funds stay in the community to benefit the members of Wiregrass Electric Cooperative. It s the right thing to do, says Brad Kimbro, COO. We take Principle Seven to heart at WEC, and this is a great way to make a huge impact in people s lives. WEC was not alone: Over 300 electric cooperatives across the nation have successfully implemented this program already. With Operation Round Up, WEC now offers its members a simple and rewarding way to support worthwhile projects in our service area. We consider taking part in Operation Round Up the same as taking part in anything else the cooperative does, says Kimbro. This is who we are, and I think people are going to be excited to see the impact we have on their communities. WEC currently projects more than $100,000 can be raised annually through this program to help the Wiregrass community. The money will be distributed by an appointed Board of Directors. The foundation directors are also members of WEC, and will serve three-year terms. These are voluntary positions and will draw no salary for their service. Only local people and nonprofit organizations benefiting people in our local communities will receive funds from Operation Round Up. Some examples may include things such as firefighting equipment for 7 Concern for Community While focusing on member needs, cooperatives work for the sustainable development of communities through policies and programs accepted by the members.

13 ADECA representative Jennifer Young helps out on World Habitat Day. Through this partnership, WEC has been able to help more members repair their homes. volunteer fire departments, life-saving equipment for ambulance or rescue squads, hospice programs, youth programs and more. Operation Round Up funds will not be used for political purposes. We are starting to take applications now, says Kimbro. And we hope to be able to make our first distribution as early as our Annual Meeting. Partnering with Habitat for Humanity In 2011, WEC started a partnership with Habitat for Humanity to help make cost-effective repairs to the homes in our community that need it most. Thanks to our partnership with Habitat, says Deanna Albritton, member services coordinator, we re able to stretch every dollar spent. Now, instead of an outside group helping members in need by paying one month s electric bill, Habitat is able to fix the problem at its source their home. In 2013, the Alabama Department of Economic and Community Affairs (ADECA) became another partner in this innovative program by presenting a $50,000 grant at an event held at our headquarters in Hartford. This year, that money has continued to go toward repairing more homes. Energy saved through these repairs benefits every member of the cooperative. For every penny we don t have to spend on purchasing energy, all our members save money. And, the less energy demand WEC has, the longer it will be until new generation facilities have to be built. Ten Wiregrass students tour Montgomery Every year, WEC selects 10 students from the Wiregrass area to visit Montgomery as part of the Alabama Rural Electric Youth Tour. This year Collin Craig, Macie Dillard, Delaney Howell, Megan Justice, Dylan McCollough, Sydney McDonald, Alex Reynolds, Gabrielle Richards, Lacey Shehee and Troy Watts participated in the tour from March 10-12, meeting with State Representative Alan Baker, touring the Capitol and learning about the electric cooperative system. WEC was also happy to give each student a $500 scholarship to help them pay for college. Beth Bryson Hall Operation Round Up Charitable Foundation Board of Trustees Myra Johnson Bell Van Chambers On Feb. 23, Wiregrass Electric Cooperative Board of Trustees recognized serviceman Bill Cobb for his 50 years of dedicated service to the members of WEC with a resolution of appreciation. He was presented with a plaque and a framed copy of their resolution. He s top of the class, says Joey Brown, manager of operations. There s nothing he s not willing to do during the day and all hours of the night. He can get home from an outage call and get called again at 2 or 3 in the morning and he s ready to go right back out. No matter the weather, no matter the condition, he s just ready to go. That doesn t affect him in any way, shape, form or fashion. It s always impressed me, and it s something the rest of the crews respect greatly. Ann West Charles N. Thames Bill Cobb reaches 50 years of service Tracy D. Nelson Stanley G. Aman Susan Q. Bailey Ricky A. Moore

14 Financial Information ASSETS UTILITY PLANT: Utility plant 2015 $ 96,706, $ 91,327,766 Construction work in progress 521, ,286 97,228,165 92,035,052 Less: accumulated depreciation 21,778,092 20,351,984 Net utility plant 75,450,073 71,683,068 OTHER ASSETS AND INVESTMENTS: Investments in associated organizations 18,456,128 17,530,258 Economic development notes receivable 637, ,153 Total other assets and investments 19,093,728 17,698,411 CURRENT ASSETS: Cash and cash equivalents 6,291,282 3,463,999 Accounts receivable: Customers, less provision for doubtful accounts of $57,479 in 2015 and $57,813 in ,394,163 1,589,550 Unbilled revenue 2,565,651 2,565,651 Other accounts receivable 50,153 89,694 Prepaid Power 4,269,533 Materials and Supplies 460, ,089 Other current and accrued assets 287, ,879 Total Current Assets 11,049,314 12,653,395 DEFERRED CHARGES: Work plan and preliminary charges 15,713 32,007 Prepaid pension 1,516,998 1,712,740 Total deferred charges 1,532,711 1,744,747 LIABILITIES AND EQUITIES EQUITIES: Memberships $ 85,216 $ 84,736 Patronage capital 56,552,975 55,928,837 Other equities 3,131,567 2,688,447 Total equities 59,769,758 58,702,020 LONG-TERM LIABILITIES: Mortgage notes 40,963,939 39,855,665 Capital lease obligations 1,271, ,992 Less: Current maturities 2,114,445 1,205,980 Total long-term liabilities 40,121,022 39,286,677 CURRENT LIABILITIES: Current maturities on long-term liabilities 2,114,445 1,205,980 Accounts payable Trade 514, ,442 Purchased power 301,990 Customer deposits 2,072,356 2,008,683 Accrued liabilities: Taxes 1,383,637 1,379,224 Other accrued liabilities 848, ,595 Total current liabilities 7,235,046 5,790,924 Total equities & liabilities $ 107,125,826 $ 103,779,621 TOTAL ASSETS $ 107,125,826 $ 103,779,621

15 STATEMENT OF REVENUE OPERATING REVENUE $ 48,780,931 $ 48,065,370 OPERATING EXPENSES: Cost of Power 33,394,436 31,233,703 Distribution - Operations 2,227,457 2,276,985 Distribution - Maintenance 2,859,961 2,445,540 Accounting and Collections 2,655,844 2,733,004 Administrative and General 1,929,391 2,265,692 Depreciation Expense 3,009,016 2,786,214 Taxes 524, ,427 Total Operating Expenses 46,600,545 44,275,565 STATEMENT OF PATRONAGE CAPITAL PATRONAGE CAPITAL AT BEGINNING OF YEAR 55,928,837 52,943,245 Retirement of capital credits (1,301,589) (1,177,923) Utility Tax Refund 163, ,049 PATRONAGE CAPITAL AT END OF YEAR $ 56,552,975 $ 55,928,837 OPERATING INCOME 2,180,386 3,789,805 FIXED CHARGES Interest Expense 1,881,901 1,729,872 OPERATING MARGINS AFTER FIXED CHARGES 298,485 2,059,933 G&T AND OTHER CAPITAL CREDITS 1,032,244 1,493,306 NET OPERATING MARGINS 1,330,729 3,553,239 NON-OPERATING MARGINS: Interest Income 431, ,227 NET MARGINS FOR THE YEAR 1,762,286 3,903,466

16 HEADQUARTERS 509 N. State Highway 167 P.O. Box 158 Hartford, AL FAX: DISTRICT OFFICES Dothan 6167 Fortner St. Ashford 1066 Ashford Road Samson W State Highway 52 Scan this QR code on your mobile device to access your WEC account! Find us on Youtube: Follow us on Like us on Facebook: Wiregrass Electric Co-op