Connecting with our community Annual Report
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- Erika Briggs
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1 Connecting with our community 2016 Annual Report
2 Looking back at 2016, it s easy to recognize the tremendous changes we witnessed as a nation and as a commonwealth, even some changes here in our own community. As fortunes were rising and falling in politics and other news events, one thing that didn t change was Inter-County Energy Cooperative s commitment to you our member and to our community. Reliability goes beyond knowing your lights will come on when you flip the switch. For 80 years, since local farmers and citizens first formed Inter-County Energy, we have been here to power our communities. Electric cooperatives are driven by people, not profits, and improving the quality of life for our members is a priority. As a member-owner of Inter-County, your co-op is locally owned and controlled for the benefit of all our members. Unlike investor-owned utilities, a cooperative s goal is not to make a profit, but to provide a reliable and affordable product. Your membership matters because you have a voice you can attend annual meetings, offer suggestions, and vote for a board of directors that is charged with running your co-op. This annual report focuses on how Inter-County Energy connects with our communities in a variety of ways beyond providing safe, reliable, and affordable electric service to you, our member-owner. GROWING ECONOMIC DEVELOPMENT One way we are a true community partner is our commitment to support and grow the communities we serve, encouraging development to improve our members quality of life. That means being proactive and working with other entities to attract jobs and industry. The owner-member electric cooperatives of East Kentucky Power Cooperative, our power supplier, recently developed PowerVision. This innovative program uses the latest drone technologies to provide an aerial showcase of available commercial and industrial tracts across areas served by Kentucky s Touchstone Energy Cooperatives. SAFETY FIRST Safety is our top priority at Inter-County Energy Cooperative, for both co-op employees and the members we serve. To paraphrase a quote, electricity is a useful servant but a terrible master. Each day our service to you begins with that idea and safety in mind. We believe a safe community is a prosperous community. Inter-County Energy works with a number of partners to cultivate a culture of safety. We speak with students, first responders and other emergency management professionals, and, in partnership with
3 Cover: Inter-County Energy lineman Ryan Pittman connects with our member-owners almost every day making sure safe, affordable, and reliable electricity gets to you. Photo: Tim Webb Left: This was the sixth year Inter-County Energy, and Kentucky s Touchstone Energy Cooperatives, sponsored an Honor Flight with Honor Flight Kentucky. Photo: Tim Webb Right: Chris Carpenter from JMB Biological Services LLC presents the Reptiles and Amphibians of Kentucky program at several schools throughout the district. Students learn how Inter-County Energy works with Chris and other biologists to ensure that building new electric lines doesn t interfere with the natural habitat of native plants and animals. Photo: Morgan Brown Below photos: Twenty-two Inter-County Energy employees participated in the annual Heart of Kentucky United Way Day of Action September 21, The volunteers helped in Boyle, Lincoln, Marion, and Mercer counties. The volunteers cleaned up trails, sowed grass seed, painted buildings and stained cabins, landscaped, and did much more throughout the day. Photo: Morgan Brown
4 One of Inter-County Energy s biggest community events is the yearly annual meeting. Above, members at the 2016 annual meeting pledge allegiance. Photo: Crystal Wilhite the Kentucky Association of Electric Cooperatives, present electric safety demonstrations at community events. Inter-County Energy s line technicians and employees continually receive training and participate in awareness programs. We also work continuously to deliver the safety message, through our monthly safety column in Kentucky Living magazine and in the interactions with Member Services teams, and through various forms of media such as our website and Facebook. POWERFUL INNOVATIONS As technology gets more sophisticated, so does Inter-County, raising the standards for reliable electricity. Delivering the energy you need in your homes and businesses involves a complex process utilizing state-of-the-art equipment such as automatic meter reading and SCADA for gathering and analyzing data helps make that process a little more clear. Technology has also helped Inter-County serve you more efficiently. From online payments to checking your energy use, you are afforded the most up-to-theminute information. In our fast-paced world, technology now even offers you a way to pay as you go with our Prepay option. WAYS WE CONNECT Of the seven core cooperative principles Inter-County Energy endorses, we could argue the most important is Concern for Community. Cooperatives work for the sustainable development of communities, through policies approved by our members. You see your cooperative s name on the uniforms of local youth sports teams, as a sponsor of community events, and with co-op employees volunteering their time for local charities. We are proud to participate in Earth Day, United Way Day of Action, Big Brothers Big Sisters, March of Dimes, Habitat for Humanity, Salvation Army, and in the local chambers as well as in economic development efforts. Inter-County Energy Cooperative is proud to call this community home, and we know our commitment to Connect with Our Community is something you expect, just as much as the light that follows when you flip a switch in your home.
5 agenda 2017 OFFICIAL BUSINESS MEETING AGENDA ANNUAL MEETING OF MEMBERS INTER-COUNTY ENERGY COOPERATIVE CORPORATION Where: Boyle County High School When: Friday, May 5 Registration Time: 5:00 p.m. Meeting Time: 7:00 p.m. James L. Jacobus President and CEO Jason E. Todd Vice Chairman William H. Peyton Director Louis A. Kerrick Director Joseph H. Spalding Chairman J. Kevin Preston Secretary-Treasurer W. Allen Goggin Director James Hadden Dean Attorney 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: LINCOLN DISTRICT Jason E. Todd 166 Logan Creek Rd. Stanford KY MERCER DISTRICT Louis A. Kerrick 175 Mercer Ave. Harrodsburg KY 40330
6 2016 Inter-County Energy SERVICE AREA ACTIVE ACCOUNTS (as of December 31, 2016) GARRARD... 4,767 LINCOLN...7,316 BOYLE...3,525 MARION... 5,521 MERCER... 1,973 NELSON CASEY... 1,957 LARUE WASHINGTON TAYLOR...75 MADISON...51 ROCKCASTLE...36 REVENUE SOURCES RESIDENTIAL 77.54% ACCOUNTS BILLED ,001 AVERAGE KWH USAGE (residential per month) ,298 OTHER 2.98% INDUSTRIAL 8.87% MAJOR COSTS COMMERCIAL 10.61% MILES OF LINE ,935 CONSUMERS PER MILE POWER BILL OPERATING DEPRECIATION INTEREST 68.50% 20.06% 8.46% 3.08%
7 STATEMENT OF OPERATIONS As of December 31, 2016 Operating Revenue... $48,394,270 OPERATING EXPENSE Purchased Power... $33,246,100 Operating System... $9,709,149 Depreciation... $4,097,318 Interest on Loans... $1,490,735 Other Deductions... $19,154 Total Cost Electric Service... $48,562,456 Operating Margins... ($168,186) Non-Operating Margins... $102,444 G & T Capital Credits... $4,218,199 Other Capital Credits...$146,381 Patronage Capital and Margins... $4,298,838 BALANCE SHEET As of December 31, 2016 ASSETS Total Utility Plant...$123,595,788 Less Depreciation... $34,582,692 Net Utility Plant... $89,013,096 Investment in Associate Organization...$26,913,935 Cash...$3,392,164 Notes Receivable... $107,909 Accounts Receivable...$5,323,249 Inventory... $408,943 Expenses Paid In Advance...$390,537 Deferred Debt and Other Assets...$1,389,911 Total Assets... $126,939,744 LIABILITIES Consumer Deposits... $591,876 Memberships and Other Equities...$46,172,188 Long-Term Debt... $69,836,027 Notes & Accounts Payable...$5,377,091 Other Current Liabilities... $4,962,562 Total Liabilities... $126,939,744 TOUCHSTONE ENERGY
8 OFFICIAL NOTICE 2017 ANNUAL MEETING FRIDAY, MAY 5 Boyle County High School 1637 Perryville Road Danville, KY Registration: 5 p.m. Business Meeting: 7 p.m. Children s Entertainment Magician Dave Cottrell Featuring Brian Free & Assurance Door Prizes Free Food Safety Demonstrations Free Health Fair Exhibits FREE Energysaving light bulbs for members who attend!
Connecting with our community Annual Report
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