2013 Annual Report - Pedernales Electric Cooperative

Pedernales Electric Cooperative
2013 Annual Report
On cover: Lineman Gary Parker serves PEC’s Bertram District
and will celebrate his 20th anniversary with the Co-op in 2014.
President’s
Message
We Central Texans know just what a beautiful and special place the Hill Country is, and
it’s no surprise that more and more people are discovering it for themselves. According to
Forbes magazine, two of the top three fastest-growing U.S. counties lie within Pedernales
Electric Cooperative’s service area. In addition, Fodor’s named the Hill Country as 2013’s
second-ranked “top 50 rising destination worldwide.”
With such an influx of newcomers, the Hill Country is rapidly changing, and PEC is
evolving with it to support our region’s new needs. Our Co-op’s distribution system is known
for its reliability, but even so, we invested substantially in our equipment in 2013, from
substations to software, to ensure our grid is ready for the anticipated electric demand of
the future.
Powering its communities is PEC’s primary responsibility, but we also feel a duty to
empower them. In 2013, PEC infused nearly $1 million into local civic and charitable
organizations. Concern for community is an essential part of being a cooperative, and
we take pride in supporting our communities’ charities, firefighters, emergency medical
services, police, schools and libraries. Along with these contributions, our dedicated
employees donate thousands of hours to our communities to improve the quality of life for
everyone.
2013 marked PEC’s 75th anniversary. We celebrated how far our Co-op and region have
come and looked ahead to consider where they’re headed. So that future generations can
continue to enjoy the beautiful Texas Hill Country we call home, PEC is committed to being a
good steward of our natural resources. The Co-op offers free in-home energy audits, rebates
and conservation education to help you make small changes that really add up on electric
bills. We work hard to help our members use less of our product — not many businesses
can say that.
PEC electric lines touch every location in the communities we serve, connecting
neighbors and business owners, ranches and office buildings. As a cooperative, we are
committed to the principles and values on which our organization was founded. We’re proud
of our heritage and the real value that we provide our members today and will provide in the
future. Most of all, we’re proud to serve you.
Dr. Patrick Cox, PEC Board President/District 7 Director
CEO’s
Message
This is an exciting time for PEC. New developments are rapidly changing the electric
industry, and where great employees and great technology meet, incredible things become
possible. Moving forward, tech will continue to shift the way the Co-op does business,
allowing us to work smarter and offer more to our members, all while reducing long-term
operational costs.
The recent system growth has been extraordinary. PEC grew by more than 8,000 meters
in 2013 and sold more than five billion kilowatt-hours of electricity. We invested more than
$70 million in the Co-op’s distribution system to keep pace and prepare for anticipated
future electric demand. Teams across PEC’s eight operating districts constructed more than
150 miles of line, built a new substation and upgraded 14 more.
In 2013, PEC also incorporated new tools to improve the reliability of its distribution
system. The first was an automatic callout system that allows a line crew to be assembled
with the push of a button, reducing the average callout time after implementation to less
than five minutes. That means when an outage occurs, PEC linemen are on their way as
quickly as possible to get the lights back on. The Co-op also upgraded its meter data
management system this year. The new, more sophisticated system provides more frequent
meter readings, giving us a better picture of the demand on our system at any given time.
Looking ahead, the Co-op is embarking on initiatives that will bring improved
technologies, better reliability, lower operating costs and improved options and features
for you, our members. A complete system inventory is under way to maximize efficiency
and reduce costs. The data will be fed into a new enterprise software system that will
be implemented beginning in 2015. That system will allow PEC to offer its members
more information at their fingertips: improved self-service options, a convenient mobile
app, an online outage map, a customer-friendly account management system and better
communication in the ways our members prefer to do business.
PEC will also be advancing energy efficiency, conservation and renewable energy
solutions to help you accomplish your personal energy goals. These efforts are being
driven by a dedicated team of employees who work hard every day to meet and exceed your
expectations.
John D. Hewa, PEC Chief Executive Officer
Serving
Members
At Pedernales Electric Cooperative, you’re
not just a customer. PEC members are our
neighbors, our friends and our family. You own this
Cooperative, and it’s our priority and our pleasure
to serve you.
The Co-op has long been nationally recognized
for the quality of its member service, and 2013
was no different. The Co-op ended the year in
the top 25 percent of electric utilities for overall
satisfaction according to the American Customer
Satisfaction Index.
Our members know us by the warmth of our
handshake, the smile in our phone voice and the
beam of our headlights when we arrive in the dark
of the storm. When it comes to serving you, we’re
there around the clock. During office hours at our
16 convenient locations, there’s always a friendly
face to greet you. Our award-winning website
is always open, our outage line is continuously
monitored and our linemen are always on call to
restore your service.
The region and the Co-op are growing, and the
ways PEC serves you is evolving, but our values
haven’t changed. We haven’t forgotten how to hold
open a door or help out a neighbor. We’re still your
hometown electric provider. We’re your Co-op.
Serving the
Texas Hill
Country for
75 years
Membership
grew
by 7,237
2,013 Facebook
“likes” and
1,597 Twitter
followers
More than
$12.7 million in
capital credits
distributed to
members
Ended the year in
the top 25% of
electric utilities for
overall customer
satisfaction
About 2 million
webpage views, half
a million online
payments and
4,000 online
service requests
Empowering
Communities
Concern for community is one of the core
cooperative principles, and PEC is committed
to powering and empowering the communities it
serves. The Co-op’s Hill Country roots are deep —
it donated nearly $1 million here in 2013.
The Cooperative contributes to groups that serve
as community backbones, from volunteer fire
departments and local emergency medical services
to libraries and educational foundations. We invest
in the region’s future by supporting youth through
a variety of programs, we donate to charitable
organizations throughout our service territory and
we help members in need pay their electric bills.
We also do small things, like mulch Christmas
trees to beautify area parks, take part in the Rural
Crime Watch Program and donate electricity to
Habitat for Humanity as it constructs homes within
our service area.
Supporting local communities isn’t limited to
PEC as an organization. Many Co-op employees
are active members of Hill Country communities,
too. In the summer of 2013, staff came together to
donate more than five tons of food to the Capital
Area Food Bank. With the help of a match from
the PEC Board of Directors, they also contributed
$270,395 to 359 charitable organizations through
the PEC United Charities program.
324 educational
presentations to
community groups
More than
$300,000 to
help area families
in need pay
electric bills
$47,000 in
community
grants to
47 organizations
Employees
donated
$270,395 to
359 organizations
$158,000 in
Light the Way
funds to
158 local civic
organizations
Strong
Reliability
PEC members rely on us to deliver safe, reliable,
low-cost electricity, and we take that responsibility
seriously. We work around the clock to ensure
service is available at the flip of a switch, and
when a power interruption does occur, our linemen
are out in the dark of the storm to get the lights
back on as quickly as possible. Behind that peace
of mind is a lot of technology and expertise.
In 2013, PEC’s reliability ranked in the top
ten percentile nationally among rural electric
cooperatives, but even with those high numbers,
we’re working hard to further improve reliability
and anticipate the region’s changing needs. We
implemented an automated callout system that
helps us get to the site of a power interruption
even faster. We also upgraded our meter data
management system to improve the frequency of
meter readings so we can better gauge real-time
electric demand.
The Hill Country is one of the nation’s fastest
growing regions, and PEC invested more than
$70 million in distribution system upgrades last
year to ensure the lights stay on and our electric
reliability remains top notch, no matter what the
future brings.
174 linemen
working to
keep members’
power on
Outage
Center
added
Added 8,256 meters,
48 miles of overhead
line and 106 miles of
underground line
Inspected
3,391 miles
of line and
19,989 poles
Invested more than
$70 million in our
system, upgraded
14 substations
and built one
new substation
Top 10% in
reliability among
rural electric
co-ops
Calls and
personal
contact
Improved service
to 7,016 meters
through voltage
conversions
Progressive
Energy
The Co-op is committed to the responsible
stewardship of our natural resources. We work to
minimize the impact of our business processes
and encourage members to contribute to these
efforts. PEC’s Strategic Plan outlines two important
goals: to satisfy 30 percent of generation capacity
requirements from renewable resources by the year
2020 and to achieve annual reductions of
20 percent of future demand growth through energy
efficiency and demand management.
Because of decreases in the costs of wind and
solar energy, we are on our way to affordably
meeting the renewable energy goal. Of the power
PEC delivered in 2013, about 10 percent was
generated by renewable means, and the Co-op’s
renewable generation capacity is at approximately
22 percent, including the renewable energy in the
power PEC purchases from the LCRA. In 2013, PEC
bought 301,031 megawatt-hours of wind energy
from a West Texas wind farm. That’s enough to
power about 20,000 Hill Country homes each year.
To help our members meet their personal energy
goals, PEC has an interconnection policy for those
who would like to connect their own generation
equipment to the Co-op’s distribution system. We
also worked with Randolph-Brooks Federal Credit
Union to offer PEC members an opportunity to
finance energy-efficiency or renewable-energy
projects, like solar panels, with low interest rates.
352 interconnections
with member-owned
solar- and
wind-generation
equipment
$41,486 in
commercial
lighting rebates
$616,675 in
HVAC rebates to
2,080 members
265 free
energy audits
provided to
PEC members
Goal to achieve
annual reductions of
20% of future demand
growth through
energy efficiency
and demand
management
Goal to satisfy
30% of generation
capacity requirements
from renewable
resources by the
year 2020
The third-annual
Hill Country
Solar Tour drew
more than
200 attendees
Looking
Ahead
This is an exciting time in the energy industry,
as technology allows PEC to serve its members in
new ways. Moving forward, we’ll be providing more
information at your fingertips, improved reliability,
better tools for managing your electric use and
many more options for doing business with us the
way you prefer.
At the end of 2013, PEC embarked on a software
conversion project that will reduce the Co-op’s
long-term operational costs while bringing new
tools and features to our members. The new
software will bring an online outage map as well
as a mobile app that provides real-time information
when an outage occurs. The app will offer a quick
and simple way to make a payment, track your
electric use and receive important information.
The Co-op is also exploring energy solutions
that will help you achieve your personal energy
goals. We’re looking at ways PEC can offer more
for members interested in renewable energy,
prepaid electricity, time-of-use rates and other rate
structure options.
PEC is committed to becoming a progressive
leader in the energy industry, bringing our
members the information and tools they need to
make the best decisions for their families. We’re
looking forward to all the ways we’ll be working for
you in the future.
Two-way
communication the
way you prefer: by
text, email, phone,
mail or office
Lower
long-term
operating costs
More options
for members
interested in
energy efficiency,
conservation and
renewable energy
A real-time
online outage
map with
notification
options
More rate options,
such as prepaid
electricity and
time-of-use rates
A mobile app for
info at your
fingertips — manage
your account
and your electric
use from anywhere
More payment
channels: online,
mobile app,
automated phone
system, office,
drive-through
or kiosk
Open
Governance
PEC is your cooperative, and here, you have
a voice and a vote. It’s one of the most distinct
differences between co-ops and other types of
electric providers.
PEC is owned and led by the members it serves.
Through democratic elections, members have the
opportunity to help shape their Co-op by nominating
and electing fellow members to serve on a Board
of Directors. The Board leads and oversees PEC
on their behalf and sets the Cooperative’s course,
including PEC’s Strategic Plan, Mission, Vision and
Values. The Co-op takes pride in its democratic
governance and transparency, and the PEC Board
holds open meetings and live-streams its regular
meetings online.
In 2013, the Board moved the Cooperative
forward in several areas. Midyear, John D. Hewa
was brought on as PEC’s new chief executive
officer. The Board reaffirmed the Co-op’s Strategic
Plan and added the word “innovation” to PEC’s
Mission Statement, highlighting their commitment
to embracing new industry developments. The
Board also signed off on a comprehensive system
inventory that will improve the Cooperative’s
reliability and reduce operating costs, and they
ended the year by approving a move to a new
enterprise software system that will offer members
more convenient, progressive features while
reducing the Co-op’s long-term costs.
PEC Board of Directors
Dr. Patrick Cox
District 7
Director and
President
James Oakley
District 5
Director
William D. Boggs
District 2
Director and
Vice President
Chris Perry
District 4
Director
Cristi Clement
District 1
Director and
Secretary-Treasurer
Kathryn Scanlon
District 3
Director
PEC by the numbers in 2013
Members
216,586
Larry Landaker
District 6
Director
Active accounts
256,072
Employees
741
Miles of distribution line
17,302
kwh
Electricity sales
5,137,637,807 kwh
Service area
8,100 square miles
Total assets
$1,374,213,325
Open
Governance
PEC is your cooperative, and here, you have
a voice and a vote. It’s one of the most distinct
differences between co-ops and other types of
electric providers.
PEC is owned and led by the members it serves.
Through democratic elections, members have the
opportunity to help shape their Co-op by nominating
and electing fellow members to serve on a Board
of Directors. The Board leads and oversees PEC
on their behalf and sets the Cooperative’s course,
including PEC’s Strategic Plan, Mission, Vision and
Values. The Co-op takes pride in its democratic
governance and transparency, and the PEC Board
holds open meetings and live-streams its regular
meetings online.
In 2013, the Board moved the Cooperative
forward in several areas. Midyear, John D. Hewa
was brought on as PEC’s new chief executive
officer. The Board reaffirmed the Co-op’s Strategic
Plan and added the word “innovation” to PEC’s
Mission Statement, highlighting their commitment
to embracing new industry developments. The
Board also signed off on a comprehensive system
inventory that will improve the Cooperative’s
reliability and reduce operating costs, and they
ended the year by approving a move to a new
enterprise software system that will offer members
more convenient, progressive features while
reducing the Co-op’s long-term costs.
PEC Board of Directors
Dr. Patrick Cox
District 7
Director and
President
James Oakley
District 5
Director
William D. Boggs
District 2
Director and
Vice President
Chris Perry
District 4
Director
Cristi Clement
District 1
Director and
Secretary-Treasurer
Kathryn Scanlon
District 3
Director
PEC by the numbers in 2013
Members
216,586
Larry Landaker
District 6
Director
Active accounts
256,072
Employees
741
Miles of distribution line
17,302
kwh
Electricity sales
5,137,637,807 kwh
Service area
8,100 square miles
Total assets
$1,374,213,325
Pedernales Electric Cooperative
2013 Annual Report
On cover: Lineman Gary Parker serves PEC’s Bertram District
and will celebrate his 20th anniversary with the Co-op in 2014.
Pedernales Electric Cooperative
2013 Financial Report
Pedernales Electric Cooperative 2013 Financial Report