AnnuAl RepoRt - Cullman Electric Cooperative

Cullman Electric Cooperative
Alabama Living
JANUARY 2009
Annual Report
PLUS: Energy Show
House update &
an inside look at
Alabama state parks
Cullman EC
Board of Trustees
Neil Rainwater
1749 Eva Road NE, P.O. Box 1168, Cullman, AL. 35056
(256)737-3200 • (800) 242-1806 • www.cullmanec.com
Office Hours — 7:30 a.m. - 4:30 p.m. Monday through Friday
To report a power outage, call 24 hours a day: (256) 737-3201 • (800) 242-1806
At Cullman Electric Cooperative, our top priority is to provide you, our members,
the most affordable and reliable electricity possible, and to treat our members with a
level of service that is second to none.
To demonstrate our commitment toward those goals, the 2008 Annual Report
includes our fiscal year balance sheet (page 5), our statement of revenue and expenses
(page 8), a breakdown of how your dollar was spent (page 7), as well as statistics that
show Cullman EC continues to grow (page 6). You will also find our staff pictures, a
timeline of events and recognition of employees and retirees who passed away.
We encourage you to take some time and read the Annual Report to gain a better
understanding of how your co-op operates, get to know the faces of the people who
serve you everyday and learn more about the many ways Cullman EC has a positive
impact on our community.
District 1
Lynda Carter
District 2
Robert Tidwell
District 3
James Fields, Jr.
District 4
Grady Smith
President & CEO
Cullman Electric
Cooperative
Herman Reid
Neil Rainwater
Chairperson
Cullman EC
Board of Trustees
District 5
Daryl Calvert
District 6
J. David Hembree
District 7
Chad Alexander
District 8
cullman ec management
(from left to right) Tim Culpepper, corporate attorney; Gail
Neal, Vice President of Human Resources and Assistant CEO;
Jerry Weathersby, Vice President of Accounting and Finance;
Grady Smith, President and CEO; Kyle Baggett, Vice President
of Engineering and Operations; Melissa Cartee, Vice President
of Member Services and Community Development.
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| JANUARY 2009 | Alabama Living
Sue Reynolds
At - Large
Balance Sheet
(As of June 30, 2008 and 2007)
Assets
2008
2007
$116,588,099 $108,317,940
5,747,893 5,296,856
13,985,940 11,101,841
687,079 1,061,074
$137,009,011 $125,777,711
$57,640,406 $53,748,862
Long-Term Liabilities
63,266,829 55,369,342
Current Liabilites
16,101,776 16,659,507
$137,009,011 $125,777,711
Net Utility Plant
Other Assets and Investments
Current and Accrued Assets
Deferred Debits
Total Assets
Equities & Liabilities
Equities
Total Equities & Liabilities
Dispatch
(Pictured from left) Regina Green, Sandra
Starnes, Doug Harding, Peggy Mitchell and
Evelyn White.
human resources
Gail Neal and Sherri Hilliar.
service & construction
connects, sets & removes
Terry Graham, Jeff Evans, Jerry Hood,
Greg Whitaker, Jeff Silvey and Billy
Rigsby (theft investigator).
Front row (from left): Keith Tankersley, Todd Eady, Billy Long, Skeeter Collins, Jason
Woods, Steve Link, Jim Glasscock, Eric Turner and John Black. Second row (from
left): Renda Crabtree, Donna White, Jim Lashley, Shannon Bell, Tildon Corley,
Patrick Childers, David Gibbs, Roger Bales, Tim White, Phillip Wallace, Anthony
Anderson, Wilburn Dye,Van Maner, Barry Godbee and Kyle Baggett. On truck
(from left): Jonathan Kelly, Jeff Osborn, Jason Dunagan, Geoff Chandler, Rodney
Brown, Robert Vincent, William Allen, Brian Heatherly, Justin Davis, Chad
Thompson, Bill Bagwell, Johnny Mead and Mark Bland; not pictured: Charles Clark,
Travis Johns, David Veal, Jim Cruce and Ernie Geisen.
JAN. 14, 2008
Framing construction begins on
Cullman EC Energy Show House.
JANUARY
Cullman EC donates refrigerators to
all area high schools and Cullman Area
Career Center for vocational classes.
MARCH 4-6, 2008
10 high school students from Cullman EC service area
attend annual Montgomery Youth Tour hosted by AREA.
FEBRUARY
Cullman EC’s Theft Investigation program, created in July 2005,
surpasses $100,000 in restitution from stolen electrical service.
Alabama Living | JANUARY 2009 |
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Consumer Members
Consumer Members
43,000
42,000
42,359
42,359
2007
2008
41,252
40,808
41,000
42,010
40,346
40,000
39,000
38,000
37,117
37,000
36,000
35,000
34,000
1998
2004
2005
2006
Miles of power line
Miles of Line
3,500
3,383
3,400
3,277
3,300
3,310
3,418
3,348
3,200
3,100
3,060
3,000
TECHnical services
Rollie Ploge, Billy Jones, Keith Perdue, Daniel James,
Leonard Romine, Mike Kritner and Kyle Baggett; not
pictured: George Welch.
2,900
2,800
1998
2004
2005
2006
2007
2008
KiloWatt Hours Sold (millions)
KiloWatt Hours Sold (millions)
1,200.0
1,017.9
1,000.0
772.6
902.1
892.7
2004
2005
961.8
982.5
2006
2007
800.0
600.0
400.0
200.0
1998
APRIL
Cullman EC awards a $1,000 scholarship to 11 senior students,
representing all of the high schools in Cullman EC’s service area.
MAY
Cullman EC joins self-insured pool, providing
improved health coverage for employees.
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| JANUARY 2009 | Alabama Living
MAY 22, 2008
Cullman EC lineman
John Black returns from
military service in Iraq.
2008
JUNE 21, 2008
Hundreds attend Open House to tour Energy
Show House and learn about energy efficiency.
JUNE 14-19, 2008
Will Hasenbein (Vinemont) and Paige Parker
(Cold Springs) represent Cullman EC at
Washington, D.C. Youth Tour.
accounting, warehouse & information services
Front row (from left): Jill Poag, Diann Hightower, Teresa
Twilley, Betty Payne and Jan Sutton. Back row (from left):
Ronnie Scott, Tim Cofer, Jerry Weathersby, Roger Porter,
Josh Caretti and Danny Stricklin.
FIELD SERVICES
Front row (from left): Dennis Edmondson, Charlie Leverett
and Steve O’Brien. Back row (from left): Renda Crabtree,
Donna White, Joan Smith, Wade Yarbrough, Pat Weissend
and Kyle Baggett; not pictured: Mike Ugarkovich.
How your dollar was spent
in 2008
How Your Dollar Was Spent in 2008
Taxes
3.3%
Depreciation
5.6%
Interest
3.4%
Net Margins for the
Year
4.3%
Administrative
and General
2.8%
Consumer
Accounts and
Customer Service
2.7%
Purchased Power
Purchased
71.0%
Power
Operations
and Maintenance
6.8%
Cullman Electric Cooperative’s fiscal year 2008 financial statements were audited by the independent accounting firm of
Henderson Hutcherson and McCullough, PLLC. The audited financial statements and the independent auditors’ reports are available
for your review by appointment at the offices of Cullman Electric Cooperative, 1749 Eva Road Northeast, Cullman, Alabama.
JULY 1, 2008
Employee Assistance Program started to provide
employees and families mental health benefits.
JULY
Cullman EC announces completion
of water billing conversion with
Cullman County Water Department.
AUGUST
Cullman EC gives
$173,579.29 in
state tax refunds
to its members.
SEPT. 20, 2008
More than 2,100 people attend 72nd Annual Meeting. Board members
David Hembree, Chad Alexander and Sue Reynolds are re-elected.
SEPT. 2, 2008
Cullman EC linemen travel to South Louisiana
to help with repairs after Hurricane Gustav.
Alabama Living | JANUARY 2009 |
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Statement of Revenue & Expenses
In Memory
(For years ended June 30, 2008 and 2007)
Operating Revenue
2008
2007
$89,527,571 $83,747,691
Gary Hutchison
1944-2008
Expenses:
Purchased Power
63,828,361 60,210,927
Operations and Maintenance
6,117,282 5,985,478
Consumer Accounts and Service
2,451,915 2,371,693
Administrative and General
2,548,254 2,466,816
Depreciation
5,009,944 4,709,661
Taxes
3,003,380 2,601,415
Interest
3,091,581 2,857,547
Total Expenses
Net Operating Margins
Non-Operating Margins
Net Margins for the Year
$86,050,717 $81,203,537 $3,476,854 $2,544,154 412,975 565,377
$3,889,829 $3,109,531
Gary Hutchison, a 23-year
employee of Cullman Electric
Cooperative, passed
away on Feb. 18,
2008. Gary began his
career at Cullman EC
in January 1985, and
worked the entire
time in the accounting department. Gary was active
in the community, serving in
leadership roles in the Seventh
Street Baptist Church, the Boy
Scouts, Red Cross and as a youth
baseball umpire for many years.
Garvis J. ‘Peachy’ Chaney
1925-2008
Garvis J. ‘Peachy’ Chaney, 82,
passed away on Jan. 15, 2008.
He worked at Cullman EC for 28
years, retiring in June 1987 as an
equipment meterman.
Odie Johnson
1924-2008
Odie Johnson, 83, passed
away on June 6, 2008. He
worked at Cullman EC for 41
years. He started in October
1947 as a groundsman, and
worked his way up, retiring as
general manager in March 1988.
member services & community development
Horace ‘Shorty’ Freeman
Front row (from left): Casidy Garmon, Teri Seymore, Laura Hale, Casey
Baughman and Tempest Warhurst. Second row (from left): Kim Arndt, Carol
Tekulve, Geneva Parrish, Diana Monk, Cindy Ponder, Diane Persall, Crystal Wilson
and Melissa Cartee. Back row (from left): Terry Graham, Brian Lacy and
Dennis Reid; not pictured: Mary Cleghorn, Cindy Childers, Sharon Easterwood,
Karen Barnes, Penny Meigs, Xonnie Johnson and Raegon Sanders.
OCTOBER
Elementary school students at Good Hope, Garden City and
Addison attend “The Energized Guyz,” a short play sponsored
by TVA and Cullman EC that teaches energy efficiency.
OCTOBER
Construction and service crews begin pole
replacement and underground maintenance programs.
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| JANUARY 2009 | Alabama Living
1928-2008
Horace O. ‘Shorty’ Freeman,
79, passed away on Nov. 10,
2008. He worked at Cullman
EC for 46 years, retiring in April
1992 as a working foreman.
NOVEMBER
All substations equipped for Automated Meter Reading (AMR),
and TWACS meters installed on 40% of member accounts.
DECEMBER
Construction on new Addison district
office nears completion. Opening
expected in January 2009.
Tired of tackling a stack of bills each month? Try
Space Heater
PAPERLESS BILLING SAFETY
Cullman Electric Co-op is
now offering paperless billing
to our members.
Members who sign up for
paperless billing will receive
notice of their new bill each
month by e-mail.
The bill can be viewed
online at www.cullmanec.com,
where the co-op’s secure web
site keeps members safe from
identity theft.
The bill can be paid online
by bank draft, check or credit
card.
Melissa Cartee, Cullman
EC’s vice president of member
services and community
development said paperless
billing has many benefits.
“Paperless billing is going
to save our members money,”
Cartee said. “By printing and
mailing fewer bills, the co-op
can reduce its printing and
mailing expenses.
“There is also the benefit to
the environment from using
less paper. For some people
it’s simply the convenience of
being able to view and pay
their bill online. There are
many great reasons to choose
paperless billing.”
To sign up for paperless
billing, contact Cullman EC
today at 737-3200.
• Keep the heater at least 3 feet
from flammable items such as curtains,
furniture, or bedspreads.
• Select a space heater with a guard
around the heating element.
• Buy a heater that can handle the
area that you want to heat.
• Read and follow the
manufacturer’s operating instructions.
• Keep children and pets away from
space heaters.
• Never leave a space heater
unattended.
• Never go to sleep with a space
heater on.
• Do not use a heater in a
bathroom — it’s a high-moisture area
that could cause damage.
• Do not use an extension cord
with a space heater.
• Do not use the heater to dry
clothes.
• Be sure the heater’s plug fits
snugly in an outlet. The cord and plug
may feel warm when operating since
the unit draws so much power, but
they should not feel hot. If they do,
unplug the heater and have a qualified
repair person check for problems.
Cullman EC Energy Efficient Show House
The Cullman EC Energy Efficient Show House was purchased in August 2008, and the owners agreed to have their
energy usage for the first year published in Alabama Living. Home energy expert Doug Rye has guaranteed the
home’s heating and cooling (HV/AC) costs will not exceed $54 per month throughout the first year. For further reference, consider this — the average home uses more than 50% of its electricity each month on heating and cooling.
BILLING AND USAGE HISTORY
kWh usage (total)
Cost ($)
Sept.
905
70.28
Oct.
1,026
81.68
kWh (HV/AC only)
HV/AC only cost ($)
Pct. of total usage
368
252
66
29.42 25.07 6.52
40.6% 24.5% 4.9%
kWh=kilowatt hours
Nov.
Dec.
1,339
105.82
Jan.
Current billing cycle: Oct. 13-Nov. 12
Note: The Cullman EC Energy Show House is an all-electric home. Many homes use gas (to run the water heater
every day and home heating in the winter) which is an additional cost to their monthly energy expenses. Total
Cullman EC bill for the month (including fees, fuel cost adjustment, taxes, fire department dues, etc.) was $172.
The home is 1,918 square feet and has two full-time residents.
Thank you to these businesses for their donations!
Tim Butts Construction • Walker Brothers LTD • TVA • REHAU, Inc. • CellPak • Inline Electric Supply, Inc. • West Cullman
Electrical Supply • Consolidated Electrical Distributors • Juno Lighting Group • Lowe’s Home Center of Cullman • Cullman Security Systems, Inc. • Richard Electric Co. • Marathon Water Heater • USA Concrete • L & L Building & Remodeling • Alabama
Brick • Southern Pipe & Supply Co. • Doug Rye • Wayne Door Company • Luyben & Boike Appliances • A+ Insulation, Inc.
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| JANUARY 2009 | Alabama Living
TVA fuel cost adjustment going down
The Tennessee Valley Authority
(TVA) has announced a decrease
in its fuel cost adjustment effective
Jan.1, 2009.
Because the fuel cost adjustment
(FCA) is a per kilowatt-hour charge,
amounts that consumers will
save depends on the amount of
energy they use. While savings will
vary across the Tennessee Valley,
residential consumers can expect a
decrease ranging from about $4 to
$8 in their monthly power bills.
“We are glad for the relief this
decrease will bring to rate payers
across the Valley,” said TVA Chief
Financial Officer Kim Greene.
“Recent reductions in purchased
power and natural gas prices have
helped reduce our actual costs and
forecast for the second quarter of
2009. Unfortunately, coal prices
remain significantly higher than
The Fuel Cost Adjustment
(FCA) on your bill is not for
gasoline or diesel used in
co-op vehicles. “Fuel” in the
electric industry refers to coal
and natural gas used to generate
electricity at power plants.
they were a year ago, and sustained
drought conditions across the
Tennessee Valley have cut TVA’s
hydro generation by more than 50
percent, preventing TVA’s fuel costs
from dropping further.”
About 60 percent of TVA’s power
supply comes from fossil fuels —
primarily coal and natural gas. When
those prices increase, TVA’s cost to
produce electricity for the 9 million
consumers across the seven-state
region increases as well.
Keeping warm with window treatments
Window treatments and
coverings aren’t just for decoration
— they can also go a long way
in saving energy. Some carefully
selected window treatments, such as
draperies and insulating panels, can
keep heat from escaping through
window panes in winter.
A drapery’s ability to reduce
heat loss and gain depends on
several factors, including fabric type
(closed or open weave) and color.
Although it’s difficult to generalize
about energy performance, when
drawn during cold weather most
conventional draperies can reduce
heat loss from a warm room up to
10 percent. In winter, you should
keep draperies that don’t receive
direct sunlight closed during the
day, and close all draperies at night.
Draperies should be hung as
close to windows as possible to
reduce heat exchange and should
fall onto a windowsill or floor. For
maximum effectiveness, install a
cornice at the top of a drapery, or
place the drapery against the ceiling.
Then seal the drapery at both sides
with Velcro or magnetic tape, and
overlap it in the center. Such snug
window treatments can reduce heat
loss by up to 25 percent.
An inexpensive insulating
window panel or pop-in shutter,
typically made of a core of rigid
foam insulation, also reduces heat
loss. The panels are made so that
their edges seal tightly against the
window frame, and they can be
pushed or clipped into the interior
of a window. No hardware, such as
hinges or latches, is required.
Of course, window treatments
aren’t effective at reducing air leakage
or infiltration — caulk and weather
strip around windows to reduce
drafts. Also, draperies work best for
winter weather. Window blinds are
more effective at reducing summer
heat gain than winter heat loss.
For more information, visit
eere.energy.gov.
Source: U.S. Dept. of Energy
Office of Energy Efficiency
and Renewable Energy
Annual Meeting
Survey Winner
Cullman EC member
Lucille Hinkle has won a
$100 power bill credit for
participating in the 2008
Annual Meeting survey.
Hundreds of members
responded to our Annual
Meeting survey, providing
the co-op with valuable
information on what they
like most about our Annual
Meeting and what we can
do better. Thank you to
everyone who participated.
We look forward to
seeing you at the 73rd
Annual Meeting on Sept.
26, 2009!
The benefits of
BANK DRAFT
1. It’s the easiest way to
pay your Cullman EC bill!
2. No check writing!
3. Guaranteed on-time
payment withdrawn from
your bank account on the
bill due date!
To sign up for automatic bank draft, call
(256) 737-3200, or go to
www.cullmanec.com,
download and fill out the
application and mail it to:
Member Services
Cullman EC
P.O. Box 1168
Cullman, AL 35056
Alabama Living | JANUARY 2009 |
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