- Upshur Rural Electric

2015
Annual Report
Main: 903.843.2536
Fax: 903.843.2736
1.800.259.2536
www.urecc.coop
P O Box 70
1200 West Tyler Street
Gilmer, TX 75644
A Message from the President,
Welcome to the 79th annual membership meeting of Upshur Rural Electric Cooperative Corporation.
The information contained in this Annual Report covers the Cooperative’s operations for the year of 2015.
The mission of Upshur Rural from its humble beginnings has been to make reliable electric energy
available to its Members at the lowest cost consistent with sound economy and good management.
Today, 79 years later, our mission remains the same.
It is with a great deal of pleasure your Board of Directors can report Upshur Rural remains a very strong
co-op when measured by growth, equity, cost of service, the return of capital credits to our Members,
and the very competitive rates charged to our Members.
During the past 79 years Upshur has seen a lot of changes. Beginning in 1938 with less than 500 members,
only a few miles of energized lines, relying on the Federal Government for its capital needs, and
depending entirely on the investor-owned utilities as a source of purchased power for its Members,
Upshur Rural presently has over 45,000 meters, sells almost 1,000,000,000 kW annually, has over 6,500
miles of energized lines, no longer owes or borrows any money from the federal government.
Going forward, change will continue to be part of Upshur's culture as we seek to comply with federal
mandates, environmental concerns, and renewable sources of energy. Each of these will have the event
of increasing your power cost. These changes will challenge the Board as well as the Staff of your
Cooperative as we seek solutions to keep our power reliable and affordable and your Cooperative
financially healthy.
Upshur Rural continues to invest in the future as we build new substations and upgrade others. We have
just completed several miles of new transmission line and will upgrade others. We have also embarked
on an entire system pole inspection and replacement effort and of course we continue to trim and mow
right of ways. All this effort and expense is done in the name of “reliable energy”.
Your Board would like to thank the Members of Upshur Rural for your continued support and the Staff of
Upshur Rural for their hard work. As your Board we are dedicated to the continued success of your
Cooperative and to our Mission Statement.
I encourage you to study the Annual Report in the important information contained therein. As always, if
you have a question, please call or come by the office.
Yours very truly,
Frankie B. King
President
“A Locally Owned – Locally Controlled – Tax Paying Business”
URECC ANNUAL MEETING PROGRAM
April 7, 2016
12:00 Noon
Registration
Entertainment
- Featuring “The Southern Plainsmen”
1:00 p.m.
Video Presentation
1:30 p.m.
Business Session
Annual Meeting Welcome
Frankie B. King , President
Invocation
David Venters, Former URECC Employee
Determine Quorum
Rex Nichols Jr., Attorney
Notice of Meeting
Rex Nichols Jr., Attorney
President’s Report
Frankie B. King, President
General Manager’s Report
Robert A. Walker, Jr., General Mgr.
Secretary / Treasurer’s Report
Sherry Morgan, Secretary / Treasurer
Report on Cooperative Audit
Bob Duvall, CPA
Knuckols, Duvall, Hallum & Company
Election of Directors
Rex Nichols Jr., Attorney
Other Business
Frankie B. King, President
Adjournment of Business Session
Drawing for Door Prizes
2015 kWh Sales
This graph indicates the month-to-month kWh Energy Sales
for Upshur Rural Electric spanning the past ten (10) years. As
indicated above, the month of March 2015 was the highest in
sales for that month respectively over the past ten (10) years.
Just as important to note, the kWh energy sales for the April
and May of 2015 were the lowest sales for those months
respectively. The spring of 2015 proved to be very
uncharacteristic throughout the state of Texas.
Cost of Power
Wholesale power costs typically increase due to new power plants, fuel costs and government regulations.
2015 Expenses
Secretary - Treasurer's Financial Report
December 31, 2015
ASSETS - WHAT WE OWN
NET UTILITY PLANT
$
133,073,882
$
42,673,732
$
175,747,614
TOTAL LONG-TERM DEBT
$
31,811,542
ACCUMULATED PROVISIONS FOR
Post-Retirement Benefits
Other Than Pensions
$
9,488,800
$
23,384,144
$
64,684,486
TOTAL EQUITIES
$
111,063,128
TOTAL LIABILITIES AND EQUITIES
$
175,747,614
CURRENT & ACCRUED ASSETS
Cash in Banks
Accounts Receivable
Materials & Supplies
Prepayments
Other Property & Investments
Other Current & Accrued Assets
$
$
$
$
$
$
834,339
6,997,886
2,349,294
123,911
32,350,843
17,459
TOTAL CURRENT AND ACCRUED ASSETS
TOTAL ASSETS
LIABILITIES - WHAT WE OWE
LONG-TERM OBLIGATION TO RUS
LONG-TERM OBLIGATION TO NRUCFC
CURRENT LIABILITIES & DEFERRED CREDITS
Notes & Accounts Payable
Consumer Deposits
Other Accrued Liabilities
Deferred Credits
$
$
$
$
$
$
31,811,542
10,967,296
2,870,467
9,187,763
358,618
TOTAL CURRENT LIABILITIES AND DEFERRED CREDITS
TOTAL LIABILIITES
EQUITIES
Patronage Capital
Non-Operating Margins
Other Margins and Equities
$
$
$
108,961,337
2,383,091
(281,300)
UPSHUR RURAL ELECTRIC COOPERATIVE CORPORATION
BOARD OF DIRECTORS
Frankie B. King
President
R. Alan Branham
Vice - President
Sherry Morgan
Secretary / Treasurer
S. Rex Youngblood
Assistant Secretary / Treasurer
J. Don Beard
Henry Jackson
J.C. “Sonny” McKnight
R. Cody Newman
Charles H. Whiteside
Robert A. Walker, Jr.
General Manager
Nichols & Nichols, P.C.
Attorney
Knuckols, Duvall, Hallum & Company
Certified Public Accountants
Upshur Rural Electric Cooperative Corporation
P O Box 70
1200 West Tyler Street
Gilmer, TX 75644
903.843.2536 800.259.2536