MEC Annual Meeting - Missoula Electric Cooperative Missoula

MEC Annual Meeting
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President
Douglas Bardwell
District #7, Huson
626-5252
Attend Your Annual Meeting
Vice President
Tom Alsaker
District #2, Big Flat
543-8801
It’s that time of year
again – Annual Meeting time! On behalf
of Missoula Electric
Cooperative (MEC), I
would like to personally invite you to join
us on March 21 at the
University Center Ballroom on the University of Montana campus.
We look forward to
gathering with you to
review the accomplishments of the past year,
and identify the opportunities and challenges
that lie ahead.
Secretary-Treasurer
Susan Thraen
District #3, Florence
273-2798
Terry Hoke
District #1, El-Mar
728-6221
Chuck Drinville
District #4, Clinton
825-4101
Ray Cebulski
District #5, Seeley Lake
677-2280
Dena Hooker
District #6, Ovando
793-5632
Missoula Electric
Cooperative, Inc.
1700 W. Broadway
Missoula, MT 59808
406-541-4433
1-800-352-5200
Office Hours:
Monday-Friday
8 a.m.-5 p.m.
Pay Online:
missoulaelectric.com
Pay By Phone:
1-888-477-7340
Questions:
[email protected]
General Manager
Mark Hayden
Editor
Dan Rogers
March 2015
Join us for coffee, conversation and community
greatest asset - our employees. Congratulations and thank you to
each of them for their
hard work and dedication.
In addition to our
regular reports, we are
pleased to welcome
back Gary Wiens, Assistant General Manager of the Montana
Electric Cooperatives’
Association. Gary will
provide an update on
potential issues affecting Montana cooperative members during
Speaking of accom- the 2015 Legislative
plishments,
during Session and throughour Annual Meeting out the year.
reports you will hear
how MEC’s total util- This important anity plant eclipsed $80 nual event is not only
million for the first a chance to visit with
time ever, how our members of our Co-op
power
interruption community – it’s also
totals were reduced to a great opportunity to
the lowest numbers learn about programs
in recent history, and offered by MEC and
that the safety perfor- get to know your Comance of your MEC op staff. Our Annual
employees was the Meeting makes it posbest since records have sible for us to gather
been tallied! These re- feedback from you
sults are exceptional, by providing a forum
and we recognize that where you can let us
we couldn’t accom- know how we can betplish them without our ter serve you and your
Manager’s Article
By Mark Hayden
family. We use this occasion to discuss and
learn more about the
issues affecting our local communities.
The Annual Meeting
is also an opportunity
for you to exercise one
of the greatest benefits
of being a member of
an electric co-op, by
voting for the Board of
Directors that will represent the Cooperative
in the coming year. A
democratic and open
election is one of the
many elements that
make our electric cooperative stand out
from other utilities.
Having a voice in who
makes the major decisions that directly affect your life and your
family is a right we all
share as members and
Americans. Our Board
is a democratically
elected body nominated by petition of, and
voted into position by
a nominee’s constituent members.
of their choice. Since
voting is by district
only, ballot materials
and instructions will
be sent only to voting
members in these Districts. Please remember that if you are voting by mail to follow
the ballot instructions
closely and be sure to
sign the envelope to
properly validate your
ballot.
Here at MEC, we remain dedicated to providing you with safe,
reliable and affordable
electric service, and we
encourage you to take
part in helping us improve how we deliver
that service. Make it
a point to join us on
March 21 at our Annual Meeting. I look
This year, members in
forward to seeing you
Trustee Districts #1
there.
and #3 will be voting
Source: NRECA
for the representative
79th MEC Annual Meeting Edition
MEC Trustees
3
What is the Cooperative Difference?
79th MEC Annual Meeting Edition
In cooperative circles, we talk a lot about the cooperative difference, but what does that mean for our members. As a member
of a cooperative, you are more than just a customer, you are
an owner. You have a vested interest in how the cooperative is
operated. Our cooperative business model is grounded in the
seven basic cooperative principles that guide our direction and
decision making, and set us apart from other forms of business.
Responsive
MEC is your cooperative. We are locally governed and many
of our employees are your neighbors. Because we are local, we
work very hard to be good partners with the communities and
members we serve. This means the things that are important
to you are important to us. Things like reducing nuisance outages, increasing operating efficiently and watching the bottom
line. The results of our efforts in these areas can be seen in our
Strategic Maintenance and Reliability Taskforce, a pole to pole
and enclosure to enclosure audit of our system. In addition, we
leverage technology to help employees be safer and more efficient. Lastly, we work hard to maintain a strong financial condition so the cooperative remains viable for the next generation
of members.
Capital Credits
One of the key features of a Cooperative is the allocation and
retirement of margins through Capital Credits. By allocating
and retiring Capital Credits, cooperatives operate at-cost instead of for-profit, which is an essential piece to keeping rates
reasonable. In addition, because members contribute capital to
the cooperative, we are able to grow and maintain our system
with less reliability on borrowing. Each year, any margins are allocated back to the members based on how much revenue they
contributed through the year. If the financial condition of the
Cooperative allows, the Board may approve the payout of a certain year of Capital Credits through a process called retirement.
MECroots
Members tend to have a higher level of engagement than customers, meaning they are more in tune with the things that have
an impact on their power bill. For this purpose, we launched
our MECroots grassroots program. Each quarter, our MECroots members receive a newsletter keeping them apprised of
the numerous legislative and regulatory challenges that face our
industry. From time to time, a call to action may be made to our
grassroots members for something as simple as sending an email to their elected official, because make no mistake, engaged
members can make a huge impact on the legislative process.
Energy Efficiency
Electric cooperatives were founded by like-minded individuals
with a desire to improve their quality of life. This still rings true
today through programs like our Energy Sense rebate program.
It seems counter intuitive to encourage your customers to use
less of your product, however the wise use of electricity remains
a focus for our members as a way to continue the mission of
better living through electricity.
4
Rural Montana
Official Notice of MEC’s
79th Annual Meeting
MEC Board of Trustees Election
District #1
Terry W. Hoke
Saturday, March 21, 2015
Registration: 9 a.m. - 11 a.m.
Meeting Begins: 11 a.m.
University Center Ballroom
University of Montana
32 Campus Drive
Missoula, MT
Agenda for 2015 Annual Meeting
• Registration: 9:00 a.m. to 11:00 a.m.
• Call to Order: 11:00 a.m.
• Pledge of Allegiance
• Invocation
• Determination of a Quorum
• Reading of the 2014 Annual Meeting Minutes
• Auditor’s Report: Summers, McNea & Company, P.C.
• President’s Report: Douglas Bardwell
• Manager’s Report: Mark Hayden
• Guest Speaker: Gary Weins, Montana Electric
Cooperatives’ Association
• Guest Speaker: Jerry Thorstad, Energy Partners
• Education Assistance Programs
-Triple E Recipients
-IEP Recipients
-Scholarship Winners
-Youth to Washington Winner
• Election of Trustees Results:
Districts #1 & #3
• Unfinished Business
• New Business
• Grand Prize: $500 Power Certificate
• Adjournment
• Board of Trustees and General Manager will be available
for discussion after adjournment.
March 2015
My platform includes:
• Providing a safe and quality work environment for all
employees;
• Increasing service reliability through system improvements;
• Maintaining reasonable rates;
• Protecting our strong financial position;
• Paying our Member/Owners Capital Credits; and
• Staying abreast of technological advances that may afford
our members environmentally friendly power alternatives.
In closing, I would certainly like to continue to serve you as
Trustee and would very much appreciate your vote.
Thank You.
District #3
Susan M. Thraen
I would like to thank you, the
members, for allowing me to serve
as your Trustee for District 3 for
the past 3 years. I ask that you
consider me for another term and
would like to let you know what
I’ve been doing for you for the past
3 years.
In addition to executing my extensive duties as Trustee, I
attained the Credential Cooperative Director Certification, served as Secretary/Treasurer this past year and was
appointed to a review board for the Columbia Generating
Station.
79th MEC Annual Meeting Edition
My name is Terry Hoke and I am
seeking re-election as your District 1 Trustee. With 25 years of
Board experience, I have served
in all official capacities as well as
representing MEC as Trustee on
the Board of the Western Montana
Generating and Transmission Cooperative.
I have applied my extensive engineering background to better the cooperative and have enjoyed the challenge of doing
more with less in order to keep our electric rates some of
the lowest in the nation. I pledge to keep the best interest of
each member as my guiding principle and work to continuously improve our service to you, the owner.
Thank you for your vote.
5
Balance Sheet
Missoula Electric Cooperative, Inc. - As of December 31, 2014 & 2013
Liabilities and Equity
79th MEC Annual Meeting Edition
Assets
Utility Plant
Utility Plant in Service
2014
2013
$80,923,525 $79,569,225
Construction in Progress
TOTAL UTILITY PLANT
522,070
81,445,595
Accumulated Depreciation
Net Utility Plant
(31,938,097) (30,587,725)
49,507,498 49,292,470
310,970
79,880,195
Margins & Equity
2014
Patronage Capital
2013
$24,000,948 $23,666,224
Other Equity
2,806,109
2,269,556
TOTAL MARGINS & EQUITIES
26,807,057
25,935,780
Long-Term Debt
28,415,352
27,244,251
Other Property & Investments
Investments in Assoc. Organizations
4,317,644
4,021,768
OTHER LIABILITIES
Deferred Charges
Total Other property & inv.
1,700,099
6,017,743
1,835,371
5,857,139
Accounts Payable
1,328,635
1,263,513
Current Assets
Cash
Accounts Receivable
Materials and Supplies
Other Current Assets
Current Portion of Long Term Debt
1,565,200
1,495,554
1,931,466
1,738,539
1,822,164
148,845
379,634
1,694,909
1,774,572
136,596
Total Current Assets
5,641,014
3,985,711
Total Assets
$61,166,255 $59,135,320
Notes Payable
-
256,173
Consumer Deposits
198,205
218,126
Other Current Liabilities
1,223,313
1,162,408
Other Deferred Liabilities
1,628,493
1,559,515
TOTAL OTHER LIABILITIES
5,943,846
5,955,289
Total Liabilities & Equity
$61,166,255 $59,135,320
Statement of Revenue & Patronage Capital
Missoula Electric Cooperative, Inc. - Year Ended December 31, 2014 & 2013
2014
2013
Operating Revenue:
Sales of Electric Energy
$20,138,254 $19,437,449
Deferred Revenue Adjustment
-
550,000
Total Operating Revenue
Cost of Electricity
20,138,254 19,987,449
(8,675,155) (7,930,895)
Patronage Capital Credits
NET OPERATING REVENUE
94,430
80,034
11,557,529 12,136,588
MEC - 2014 SALES OF ELECTRIC ENERGY
$981,846
$2,208,820
Residential
IRRIGATION
$1,512,530
SM COMM
LG COMM
$520,936
INDUSTRIAL
OTHER
$236,768
$14,677,354
Operating Expenses:
Operations & Maintenance
3,893,621
3,974,006
715,138
704,414
General & Administration
2,083,076
2,096,762
Depreciation & Amortization
2,458,550
2,347,669
Consumer Services
Interest Expense
Total Operating Expenses
1,388,032
1,379,780
10,538,417 10,502,631
Net Operating Margins
Non-Operating Margins
Net Margins
1,019,112 1,633,957
605,991
536,819
$1,625,103 $2,170,776
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MEC - 2014 OPERATING EXPENSES & COST OF ELECTRICITY
$2,083,076
POWER COST
$715,138
OPER & MAINT
cONSUMER
$3,893,621
GEN & aDMIN
DEPRECIATION
INTEREST
Missoula Electric Cooperative is an equal opportunity provider and employer.
$2,458,550
$1,388,032
$8,675,155
Rural Montana