2010 Annual Report - Gibson Electric Membership Corporation

First Class Lineworker Trent Cary
Gibson EMC Customer Service Centers
Corporate
P.O. Box 47 n 1207 S. College St.
Trenton, TN 38382
731-855-4740
Alamo
402 Egghill Rd. n Alamo, TN 38001
731-696-5961
Medina
112 N. Main St. n Medina, TN 38355
731-855-4660
Trenton
P.O. Box 47 n 1207 S. College St.
Trenton, TN 38382 n 731-855-4660
Tiptonville
1515 Church St. n Tiptonville, TN 38079
731-253-7181
Troy
602 C.C. Gurien Drive n Troy, TN 38260
731-536-5920 n 731-885-5501
731-894-5920 n 731-643-6046
www.gibsonemc.com
TogetherWeSave
2010 Annual Report
Supplement to e Tennessee Magazine
A Report from Your Co-op’s President and CEO and Board Chairman
ibson Electric Membership Corporation,
G
your Touchstone Energy Cooperative,
works hard to help hold down energy
prices. You, too, can play a role in controlling your
energy costs by evaluating your home and taking
simple steps to trim unnecessary energy use.
Together, we can make a difference.
Visit our newly redesigned website at
Gibson Electric Membership Corporation is pleased to report that, through
the dedicated work of our Board and employee family, we have completed
a year of substantial progress and energizing innovation …
w We emerged from the January 2009 ice storms physically and financially
sound.
w We met the economic downturn with a renewed commitment to serve
you well by operating in a way that is efficient and responsive to your
changing wants and needs.
Dan Rodamaker
President and CEO
Mack Goode
Board Chairman
w We developed and implemented cutting-edge programs and services.
w We took proactive steps to prepare Gibson EMC and our membership for
a challenging energy future.
Continued on next page …
www.gibsonemc.com and partner with us. Visit
www.togetherwesave.com for innovative energy
solutions and www.ourenergy.coop for
information on how you can help ensure
an affordable energy future.
A special ‘thank you’
w Gibson EMC’s Board of Trustees and Management thank
our customers for your business and support. We
particularly are grateful to those of you who have already
partnered with us to communicate with our state and United
States legislators regarding climate change legislation.
w We also thank our employees for your dedication and
caring. Through your work ethic, your skill and your
professionalism, you give life to Gibson EMC’s commitment
to provide exceptional service.
Gibson EMC Dispatcher LaFonda Johnson, above left, assists Laura Moore
of Troy with a gift certificate.
A Light Bulb Change
Replace your incandescent light bulbs with compact fluorescent bulbs. ENERGY STARqualified bulbs use up to 75 percent less electricity than incandescent bulbs, last up to 10
times longer and provide a quick return on investment.
2
TogetherWeSave
2010 Gibson EMC Annual Report
3
A year of progress and innovation…
Ice Storm recovery 95 percent complete
Tree Line USA certification
w Our January 2009 ice storm recovery is nearly complete, and our
electric system is physically and financially strong. Damage was
extensive in Obion, Lake and Dyer counties, with the cost
exceeding $4 million. To date, we have repaired 95 percent of the
ice storm damage; we have spent more than $3.7 million and we
have received more than $2.2 million in FEMA reimbursement.
w In Fiscal Year 2010, Gibson EMC earned certification from the
National Arbor Day Foundation as a Tree Line USA utility. The
certification was awarded in recognition of our environmental
efforts and is a distinction held by only three cooperatives and
nine municipal electric systems in Tennessee.
Expanded smart grid capability and pilot programs
System upgrades
w We upgraded our electric system to 25kV in the Polk, Rives,
Crockett and Hop-In areas to strengthen future service reliability.
We also invested in service reliability through our pole inspection
and treatment program and our vegetation management program.
w We partnered with our neighboring cooperative, Southwest
Tennessee Electric Membership Corporation, to purchase a new
radio system. This new
communications system
will help us work more
efficiently and enhance
service reliability.
Field Engineer
Mike Davis, le,
and Obion
County Mayor
Benny McGuire
discuss electric
service relocation
plans in
preparation for
the I-69
construction.
w Gibson EMC expanded the capability of our smart grid in several
ways during the past year. First, we enlarged our fiber footprint,
enabling us to communicate with more devices on our physical
electric system. The data provided by these devices helps us to
more quickly identify problems on the system. Consequently, when
outages occur, we can restore service more quickly.
w We’ve also launched several smart grid pilot programs, all
designed to give you the information and equipment you need
to make wise energy choices …
n Demand
Response — Direct Load Control is a pilot
program aimed at reducing peak demand on Gibson EMC’s
electric system. Participating residential customers will
have load control devices installed on their heat pumps
and/or water heaters, at Gibson EMC’s expense. When
system demand is peaking, these load control devices will
be activated, interrupting service to the heat pumps
and/or water heaters. While the benefit is in some personal
energy savings, the greater benefit is in helping to control
the cost of electricity to the membership as a whole.
n Demand
Response — Voluntary
Information Only is a pilot program
that encourages customer-owners to
partner with us to voluntarily control
peak demand. Through this program,
we alert participating customer-owners
when energy demand is peaking, and
we ask them to help temporarily reduce
load. This voluntary load reduction
helps Gibson EMC and our wholesale
power supplier, TVA, control costs and
ultimately helps us to hold down the
cost of electricity to you.
Marlyn and Herman Youmans check their electric consumption and account balance on their
(PAY-Go) gives
PAY-Go display.
customer-owners the ability to closely
n In-Home Energy Evaluations give customers the opportunity to
monitor their energy use and pay for their energy as they use it.
have an expert energy consultant provide personalized energy
The combination of real-time information and its related cost
equips customer-owners with the knowledge needed to make wise efficiency recommendations. The cost is just $75, but it is waived if
you spend at least $150 toward the recommended energy
energy choices. PAY-Go is available to all Gibson EMC customers.
efficiency improvements. Additionally, you may qualify for
incentives up to a maximum of $500. It’s a win-win; you make
changes that will save energy dollars, and you earn an incentive.
n Pay-As-You-Go
Energy Services Specialist Bud Cole, above le, performs an
In-Home Energy Evaluation at the home of Dr. David Mercker.
n LED Outdoor Lighting pilot is being explored on a more
limited basis. Gibson EMC is one of the first utilities in the
Tennessee Valley to test outdoor LED lights through this pilot.
We already know that LED outdoor lighting fixtures use less
energy, but through this pilot we will learn more about the
fixtures’ long-term maintenance costs and our customers’ level
of satisfaction with the LED fixtures.
Set Your Thermostat
4
Your heating and air conditioning systems are your biggest energy users. In cold weather,
wear a sweater and set your thermostat on 68º or as low as you can. In hot weather, set
your thermostat on 78º or as high as you can and still be comfortable. To save even more,
program your themostat to use less energy when you are away from home.
TogetherWeSave
2010 Gibson EMC Annual Report
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A year of progress and innovation, continued…
Enhanced security
Expanded programs and services
w Additionally, Gibson EMC has made a concerted effort within
our Information Technology infrastructure to strengthen our
security for the protection of our customers’ information, as
well as for business continuity. Our customer-owners can rest
assured that we have taken the appropriate steps to protect
their information and their service reliability. Of course, we have
taken steps to ensure that our processes also safeguard our
customers and their information.
w We offer a wide array of programs and services, all designed to
help you. Whether it’s a program to help with paying your electric
bill or one to help you find, purchase and install an energyefficient heat pump or water heater, we offer professional
assistance and options. This year we began offering two new
product lines — Midland weather radios and Meco electric grills
and smokers. For more information on these products, contact
your local customer service center.
Redesigned website
w In FY 2010, we launched a redesigned website. On it you will
find information specific to your account and your electric bill,
as well as information about all of the many programs and
services available to you as a member. You’ll also find energy
calculators, outage information, answers to frequently asked
questions, news and more. Check it out at www.gibsonemc.com.
w Gibson EMC also provides programs and services specially
designed to meet the needs of our commercial and industrial
customers. This year Gibson EMC, in partnership with TVA, offered
three new programs — the Commercial Efficiency Advice and
Incentives Program, the Major Industrial Program and the Valley
Investment Initiative for Existing Customers.
w Gibson EMC also gives you the chance to “go green.” Through
the Green Power Switch Program, residential customer-owners
can purchase environmentally friendly energy blocks of 150
kilowatt-hours at $4 per block. If you choose to sign up, the $4 per
block cost will be added to your electric
bill. Green Power Switch participation
for commercial and industrial
customers is available, too, with
minimum monthly purchases
determined by the customer’s rate
class.
Lineworker Mark Perry, who
works out of our Tiptonville
Customer Service Center, installs
service for a customer-owner.
Dispatcher Mitzi Privitt answers
a call from a customer-owner.
Pull the Plug
6
Known as vampire electronics, TVs, gaming consoles, DVRs, cable boxes and
almost anything that has a plug use energy even when they’re off. Save money
on your energy bill by pulling plugs and turning off power strips when you’re
not using them.
TogetherWeSave
2010 Gibson EMC Annual Report
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From le, USDA Rural Development Business Area Specialist Van Wylie and Rural Development Area Director Harriet Cannon, join Crockett
County Higher Education Center Committee Members Melissa Rayner, Craig Laman, Clint Williams, Larry Griffin and Catherine Via, and
Tennessee Technology Center Director Brian Collins as they tour the center’s construction site. USDA and Gibson EMC partnered to provide
Crockett County $1.1 million in loan and grant proceeds for construction of the facility, which is located off U.S. Highway 412 in Bells.
We continued to support our communities through…
Economic development
w As a rural electric cooperative and recipient
of USDA Rural Utility Services funding, Gibson
EMC qualifies for participation in the U.S.
Department of Agriculture (USDA) Rural
Economic Development Loans and Grants
initiative.
In FY 2010, Williams Sausage Company Inc.
received a $740,000 zero-interest, passthrough loan. The company began a 40,000square-foot expansion in August, and it plans
to increase its plant’s workforce from 242 to
342 over the next two years.
w The Reelfoot Area and Crockett County Chambers of Commerce each received about $35,000 in
grants and in-kind services from USDA, Tennessee
Valley Authority and Gibson EMC. They used the
grants and in-kind services for technology
enhancements to support their commercial and
industrial recruitment and retention efforts.
w With the help of Gibson EMC, Crockett County
received $1.1 million to help build a Higher
Education Center near Bells. The repayment of a
portion of these funds will launch Gibson EMC
into our own relending program for the funding
of future economic development projects in our
service area.
Caulk and Weatherstrip
Don’t let valuable energy escape from your home.
Caulk and weatherstrip around windows, doorframes
and any other areas where energy may be leaking.
8
Ad Valorem Taxes
Each year Gibson EMC pays ad
valorem taxes to the towns and
counties in which the cooperative
has facilities or infrastructure. The
amount of taxes paid was based on
the assessed value of the
infrastructure, including buildings,
substations, transformers, poles and
lines. The 2009 ad valorem taxes
paid to counties were…
Crockett
Dyer
Gibson
Haywood
Lake
Lauderdale
Madison
Obion
TOTAL
$218,835
$25,327
$424,987
$964
$82,369
$37
$27,545
$244,214
$1,024,278
Youth and adult leadership, education programs
We also supported our member-owners …
w This past year, Gibson EMC awarded five $500 scholarships to
local high school students who participated in our short story
contest. We also sent five short story contest winners to
Washington, D.C., and two other students to our state capital
where they learned
about the
legislative
process,
leadership and
the role of rural
electric
cooperatives.
w In FY 2010, Gibson EMC leaders joined others from Tennessee
and across the country to talk with state and U.S. legislators about
climate change legislation, stressing the vital need to keep
electricity affordable and reliable.
w Gibson EMC provides continuous communication via The
Tennessee Magazine, Power Partners News and
www.gibsonemc.com. Through these vehicles, we work
to keep you informed about energy issues that can
affect the reliability and affordability of your future
electric service. We also provide information about
energy efficiency and incentives, electrical safety and
other programs and services to help meet your needs.
w Gibson EMC
and TVA partnered
From le, short story contest winners Mary Medling,
w We must work together to keep electricity affordable.
to bring the
Diana Whitmore, Micah Lanier, Beau Jackson and
Our nation’s biggest energy challenge will be the
National Theatre
Shanna Laman, Obion County English Teacher Jean
for Children to
Little and Gibson EMC Communications Specialist Jenni steadily increasing energy demand and a rapidly
area elementary
Lynn Crossnoe went to Washington, D.C., in June on the diminishing capacity. The regulatory environment
Electric Cooperative Youth Tour.
already has made it too expensive to respond to
schools. The live
show educates students about how energy is produced and how to increased energy demand with the historically common answer
of building more capacity. And proposed climate change
use it wisely. Next year, this fun and informative performance also
legislation, armed with new, more stringent regulations, is on
will be offered to area middle schools.
track to make existing generation even more expensive and new
w Gibson EMC sent an adult couple to the Young Leaders
construction cost prohibitive.
Conference in Nashville, sponsored six campers to attend the 4-H
w We must take responsible, forward-thinking and deliberate
Electric Camp in Knoxville, participated in the Gibson County
action if we are to enjoy a reliable supply of affordable electricity
Career Fair at Gibson County High School and hosted students for
in the future. We must replace the “use all you want” mindset
onsite job shadowing.
we’ve shared for years with a new and environmentally responsible
w Our employees made presentations to students, civic groups and
culture of energy efficiency.
emergency responders on a variety of topics ranging from energy
w We must embrace innovative energy solutions. TogetherWeSave.
conservation to high voltage safety.
As we look toward the future…
TogetherWeSave
2010 Gibson EMC Annual Report
9
The Financial Statement
Gibson Electric Membership Corporation is an electric
cooperative owned by its customers. Its service area
includes parts of Crockett, Dyer, Gibson, Lake,
Madison, Obion, Haywood and Lauderdale counties.
Assets
Electric Plant ................................... $121,616,371
Depreciation ................................... $(47,632,952)
Net Plant ........................................... $73,983,419
Reserve & Cash Fund ....................... $14,217,426
Current & Accrued Assets ................. $10,011,839
Deferred Debits ...................................... $598,351
Total Assets .................................... $98,811,035
Liabilities
Current & Accrued Liabilities .............. $8,395,592
Membership Investment ........................ $254,441
Long-Term Debt ............................... $31,517,892
Reinvested Earnings.......................... $58,643,110
Total Liabilities ............................... $98,811,035
Revenue & Expense Statement
Operating Revenue ........................... $75,806,075
Purchased Power Expense ............... $55,155,412
Operation Expense ............................. $6,859,513
Maintenance Expense ......................... $3,453,799
Depreciation Expense ......................... $4,271,642
Tax Expense ........................................ $1,054,481
Net Margin from Operation ................. $5,011,228
Non-Operating Income ....................... $1,847,238
Interest Expense ................................. $1,742,716
Net Margin ............................................. $5,115,750
2010 Revenue (Per $1)
Revenue
Gibson EMC received
$75,806,075 in revenues in
the fiscal year that ended
June 30, 2010. Our
revenues came from several
sources: residential customers,
industrial customers, commercial
customers and miscellaneous income, such as
outdoor, street and athletic lighting.
Expenses
Statistical Information
2008
2009
2010
Number of Meters
34,778
34,667
34,790
Residential
Customers: 60¢
Customer-Owner Equity
$49,708,666
$53,227,361
$58,643,110
Long-Term Debt
$31,992,630
$29,130,089
$31,517,892
Commercial &
Industrial
Customers: 34¢
Interest Paid
Miscellaneous
Income: 6¢
Total Kilowatt-Hours Sold
Average Monthly Residential
Kilowatt-Hour Consumption
Number of Full-Time Employees
Meters per Mile
Miles of Line
2010 Expenses (Per $1)
Purchased Power
from TVA: 75¢
Gibson EMC buys power
from the Tennessee Valley
Construction,
Authority. In the fiscal year
Maintenance and
that ended June 30, 2010,
Administration
we spent about 75% of our
Expenses: 25¢
electric sales revenue to pay
our TVA power bill. The other
25% was used for operations, depreciation,
maintenance, interest and taxes and capital investment.
Investment per Meter
Taxes Paid
Wholesale Power Cost as %
of Electric Sales Revenue
$1,760,041
$1,708,068
$1,742,716
804,807,052
789,650,844
823,423,702
1,475
1,398
1,432
85
83
85
12.0
11.9
12.2
2,899
2,910
2,844
$3,161
$3,419
$3,496
$913,686
$946,317
$1,054,481
Membership and System Demand
191,287
34,790
33,098
177,109
172,239
29,552
System
Demand
(in Kilowatts)
Members
1990
75%
78%
2000
2010
75%
Gibson EMC Board of Trustees, Attorney, President and CEO
Gibson EMC’s Board of Trustees are,
front row, le to right: SecretaryTreasurer Don Leathers, District 11;
Vice Chairman Robert Patterson,
District 3; Chairman Mack
Goode, District 5; Assistant
Secretary-Treasurer Keith
Heglar, District 2; and Attorney
Jim Ryal; and standing, le to
right: Rana Buchanan, District
7; Richard Skiles, District 9;
Larry Hicks, District 4; Keith
Forrester, District 10;
President and CEO Dan
Rodamaker, Steve Sanders,
District 1; Bob McCurdy,
District 8; and Joan Mouser,
District 6.
Capital Investment
After meeting expenses, the net margin of
$5,115,750 was used to reinvest in your electric
system.
Auditor’s Statement:
Gibson EMC’s books are audited annually by the firm of Alexander,
ompson, Arnold, PLLC, Certified Public Accountants, Union City,
Tenn. Copies of the audit report are on file at Gibson EMC’s Corporate
Office, 1207 S. College St., Trenton, Tenn., 38382.
Energy-Saving Plans
10
When building or remodeling, make energy saving a part of your plans.
Install an energy-efficient electric heat pump and electric water heater,
energy-efficient windows and extra insulation when possible. You’ll be
glad you did for years to come.
TogetherWeSave
2010 Gibson EMC Annual Report
11