A Member`s Perspective

Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EM
Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine
Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb
Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitche
Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC
EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power
Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC
REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Ca
EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmu
EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumte
Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Exc
EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pata
EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EM
Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC
Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snappin
EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EM
Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmu
EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EM
Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Haber
EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REM
Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll E
Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee
Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC
Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior
Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula E
Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Am
EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson E
Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC So
Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fay
EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Ocon
Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Was
EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwi
Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine
Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb
Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitche
Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC
EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power
Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC
REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Ca
EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmu
EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter
Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Exc
EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pata
EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EM
Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC
Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snappin
EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EM
Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmu
EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EM
Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Haber
EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REM
Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll E
Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee
Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC
Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior
Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula E
Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC Southern Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Am
EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fayette EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson
Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Oconee EMC Okefenoke REMC Pataula EMC Planters EMC Rayle EMC Satilla REMC Sawnee EMC Slash Pine EMC Snapping Shoals EMC So
Rivers Energy Sumter EMC Three Notch EMC Tri-County EMC Upson EMC Walton EMC Washington EMC Altamaha EMC Amicalola EMC Canoochee EMC Carroll EMC Central Georgia EMC Cobb EMC Colquitt EMC Coweta-Fay
EMC Diverse Power Excelsior EMC Grady EMC GreyStone Power Habersham EMC Hart EMC Irwin EMC Jackson EMC Jefferson Energy Cooperative Little Ocmulgee EMC Middle Georgia EMC Mitchell EMC Ocmulgee EMC Ocon
2011 Annual Report
A Member’s Perspective
Table of Contents >
Executive Message Member’s Perspective Board of Directors
Financials
2 0 11 H I G H L I G H T S
> SMART GRID PROJECTS: We made significant progress on our various Smart Grid
projects, including the Energy Management System Upgrade. This is the second
year of the three-year project, and we’re on track to complete all tasks by the end
of 2012.
>P
LANT MURRAY: In 2011, Oglethorpe Power purchased Plant Murray, a combinedcycle generating facility near Dalton. The plant has two 630 MW units, one of which
is committed to Georgia Power through May 2012. Bringing a new plant onto our
system involves more than just having the Energy Control Center add it. Many of
our departments were part of the effort to bring Plant Murray on board. System
Operations worked on how to best gain value for the Members from the plant, as
well as ensuring its systems were compatible. Shared Services IT, Data Systems and
Accounts Payable worked to get our programs implemented at the plant. By fourth
quarter, Murray Unit 2 was rolled into GSOC’s single system dispatch.
> NERC AUDITS: GSOC was the subject of two NERC audits in 2011 — the Bulk Electric
System (BES) audit in June and the Critical Infrastructure Protection (CIP) audit in
December. The results are covered on page 4 of this report.
Executive Message
Georgia System Operations Corporation was created in 1997 to serve as the system operator
for our Member Systems. Every task and project we’ve taken on during those 14 years — from
System Operations to Shared Services, Compliance to Data Systems — has been in support of
those 38 Members. The theme of year’s report is A Member’s Perspective. Each of our 2011
accomplishments focuses on and is in support of our Member Systems, so we’ve included
some of their 2011 highlights to show how we’re connected.
GSOC had a strong 2011, including two NERC audits, adding a new power plant to
the system, continuing with our various Smart Grid projects, and battling several severe
storms and weather events.
Due to the increasing demands for compliance, we had to change and adapt our structure. System Operations was realigned in 2011 to best meet our compliance requirements,
while continuing to meet our Members’ and operational needs. Compliance requirements
have increased System Operations’ workload by about 30 percent over the last few years. While
the group always has practiced procedures to ensure system reliability, our employees now
are required to administer new programs and applications, develop and improve processes,
install new equipment and document each step in every process.
The Control Area Compact and the Member Services Agreement were approved early
in 2011, ahead of schedule. By securing these agreements early, GSOC can continue to
serve the Members and the system.
GSOC and OPC successfully negotiated with Georgia Power Company to extend the
Control Area Compact through at least 2018. Under the Compact, GSOC operates like a control
area, with a bilateral reserve support arrangement with Georgia Power. Through this agreement, Georgia Power (via Southern Company Services) is the balancing authority registered
with NERC for the Member Systems. However, GSOC, under the oversight of Georgia
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Table of Contents >
Executive Message Power and Southern Company Services, performs balancing area activities
for its Member Systems, adhering to many of the same guidelines as any
control area.
Extension of the Compact addresses the concern of NERC reliability
obligations. These obligations have become more complex, and we needed
to be sure they were defined for GSOC, OPC, Georgia Power and the Member
Systems in the event of noncompliance or a fine.
After GSOC, OPC and Georgia Power agreed to the terms of the extension, individual implementation agreements were presented to and signed by
GSOC’s 38 Member Systems. The Compact then was executed by the parties,
and was filed with and accepted by FERC during the first quarter of 2011.
The Control Area Compact already has saved the Member Systems a
substantial amount of money since it was first implemented in 2005. The
extension is expected to continue providing benefits, both tangible and intangible, and also continue building on a great partnership with Georgia Power.
All 38 EMCs signed the Member Services Agreement. The MSA term is
matched to the Control Area Compact extension, solidifying the contractual
documentation for GSOC with our Members.
GSOC also completed the process to change our tax status, which
will result in current and future savings for the Members. With the tax
status finalized, Members received a cumulative refund of approximately
$350,000 in 2011, with annual savings going forward.
The following pages cover our significant highlights in 2011 — again,
from our Members’ perspective.
Gregory S. Ford, President & CEO
Member’s Perspective Board of Directors
Financials
BUSINESS DESCRIPTION
Georgia System Operations Corporation is a not-for-profit system operations company. Our Members are 38 of Georgia’s distribution electric membership corporations,
Oglethorpe Power Corporation and Georgia Transmission Corporation. GSOC is one of
four companies, along with OPC, GTC and Smarr EMC, that this group of EMCs — the
distribution Members — formed to provide and deliver wholesale electric services to them.
GSOC was formed in 1997 when OPC spun off its transmission and system operations business units to form GTC and GSOC, respectively, although GSOC, in effect, has
been managing system operations since 1990.
As the system operator, GSOC ensures reliable, independent system operations by
controlling and monitoring electric generation, transmission and distribution assets
owned by OPC, GTC, Smarr EMC, the Members and their power supply partners. GSOC
complies with all applicable North American Electric Reliability Corporation and SERC
Reliability Corporation operating and reliability standards.
At GSOC, we:
• Enable our Members to participate in the energy market in Georgia and the
Southeast by providing a range of operations services that allow our Members to
transact, optimize and account for their business in the wholesale energy market.
• Coordinate and implement reliability requirements in order to assure the operational
stability and performance of GTC and OPC grid interconnected assets.
• Implement purchase and sales contracts, schedule and monitor individual hourly
transactions, dispatch and monitor generation assets, capture the necessary data for
billing and ensure customer confidentiality by following strict standards of conduct.
• Monitor the substations from which our distribution Members serve their loads and
respond to system anomalies, and proactively work to correct or prevent potential
issues and to minimize outages.
• Provide the support services of OPC, GTC and GSOC by furnishing shared services
functions that include accounts payable, audit, board administration, communication, facility services, human resources, information technology, payroll, records
administration and training services.
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Executive Message Member’s Perspective Board of Directors
Financials
Putting 2011 Into Perspective
THE SMART GRID PERSPECTIVE
With our grant, we are continuing our
expansion of Smart Grid initiatives,
including distribution automation and
demand-side management projects,
which will increase efficiency and
service reliability. Installation of
Smart Grid components is part of a
national initiative to test and develop
technologies to make the grid more
efficient and reliable.
We’re using our grant to add 135
miles of fiber to create a 260-mile
broadband network. This network
will provide the foundation for
the communications and data
transport we’ll need in the future
for substation communications and
distribution system automation. To
enable the Smart Grid, you need a
good communications foundation.
— Brad Thomas,
Snapping Shoals EMC
— Todd Pealock,
Habersham EMC
Through our Smart Grid grant, we
are accelerating full deployment of
an advanced metering system that
started in 2005. At the same time, the
demonstration project will test the
impact on day-to-day electric use by
giving members more information
about their consumption and offering
a peak time rebate for reduced usage
during high load periods.
2011 marked the end of the second
year of our three-year Smart Grid
project, 50 percent of which is
funded by the Department of
Energy. We were awarded the DOE
grant at the end of 2010, as were
four of the state’s EMCs: Cobb EMC,
Flint Energies, Habersham EMC
and Snapping Shoals EMC.
Of the seven projects comprising our Smart Grid project, three
are complete:
• Telecommunications Upgrade
• Scheduling Member Upgrade
• Fire Suppression
— Bob Ray, Flint Energies
Our grant is being used to replace
192,000 members’ meters with
smart electrical meters, along with
a two-way communications network
that connects those new meters
across our service area. We will be
offering our members Time of Use
and Critical Peak Pricing Rates,
along with the ability to view their
hourly usage through our website.
— Chip Nelson, Cobb EMC
The EMC managers quoted above are (clockwise from top left) Brad Thomas, Snapping Shoals EMC; Todd Pealock, Habersham EMC; Bob Ray,
Flint Energies; and Chip Nelson, Cobb EMC.
4
The remaining four
projects — ECS Upgrade, Realtime Production Cost, Outage
Management Tool and Transmission
System Model — are scheduled and
on track for completion in 2012.
The Energy Management
System upgrade and its components are on track. Factory
acceptance testing on the Energy
Control System is complete, and
the system was delivered in midDecember for installation and site
acceptance testing.
The following are the primary
components of the EMS upgrade:
• Data Historian: Hardware and software has been installed, and the
system is on track to be completed
and cut over with the ECS upgrade.
•C
entralized Database Editor: The
editor has been installed and
integrated with the main system,
and factory acceptance testing is
complete.
• Alarm Enhancements: Criteria
have been implemented into the
database; factory acceptance testing is complete.
• CIP Tools: Intrusion detection,
security information and event
monitoring have been integrated
into the new system.
Representatives from the
Department of Energy visited the
Tucker campus at the end of June.
During the visit, the representatives reviewed all aspects of our
Smart Grid project and congratulated GSOC on our progress.
THE COMPLIANCE LANDSCAPE
Compliance continues to play a
significant role for GSOC and the
entire industry.
GSOC, as a registered transmission operator and a load-serving
entity, successfully passed a Bulk
Electric System audit in June.
Auditors from SERC, the Family
of Companies’ regional entity,
converged on the Tucker campus for
three days to conduct the BES audit
for GSOC’s transmission operations.
GSOC performed well and received
high marks. There were no findings
of violations, though some improvements were identified.
Table of Contents >
Executive Message We completed our first Critical Infrastructure
Protection audit at the end of 2011. Held Dec. 5–15,
the CIP audit was an intensive, documentation-filled
two weeks. Although the auditors identified some
instances where they believed GSOC did not fully
comply with the standards, all indications point to
GSOC performing well in the overall audit. Because of
the complexity of the process, the final results won’t
be released for several months, but GSOC has begun
addressing the auditors’ concerns by taking mitigating actions. It was a tough one, but we learned some
good lessons that we’ll put into practice.
BES and CIP audits are on a scheduled threeyear cycle, so the next audits won’t be conducted until
2014. SERC, however, can do a spot check at any time.
Self-reporting of infractions — that is, filing a
report with SERC that an infraction, whether major
or minor, was made — also plays an important role
in strengthening our procedures. This year, GSOC
submitted 14 self-reports. Eight of those infractions were discovered during the internal audit we
conducted earlier in the year, which was in preparation for December’s on-site CIP audit. One self-report
is from a 2010 occurrence. The self-report process
applies to the traditional NERC BES standards as
well as the CIP standards, but because of the documentation focus of the CIP standards, violations are
much more common in that area.
Another area of compliance in which GSOC
plays a significant role is SOX, or Sarbanes-Oxley,
compliance for OPC. A requirement from the 2005
act by the same name, SOX sets new or enhanced
standards for all U.S. public company boards,
management and public accounting firms. Shared
Services IT and Accounts Payable/Payroll are audited
annually by Ernst & Young to ensure that OPC is
compliant with SOX. In 2011, Shared Services IT
was found to have no control deficiencies. The group
made several streamlining improvements in the
SOX compliance program to assure compliance
but reduce time and effort. In addition, AP/Payroll
passed with no issues.
Member’s Perspective Board of Directors
Financials
For the Member Systems
SCHEDULING MEMBER GROUP CHANGES
Three significant Scheduling Member Group
changes went into effect in 2011, as listed at right.
These Scheduling Member Group changes
necessitated updates to the SMG applications, among
others. The updates, involving multiple departments
and third-party coordination, were successfully implemented as the SMG changes went live.
Three significant Scheduling Member Group changes went into
effect in 2011:
• On Jan. 1, GreyStone Power became a new Scheduling
Member Group, with Morgan Stanley as its agent.
• Also on Jan. 1, Rayle EMC moved from J.P. Morgan to
Constellation.
• Walton EMC became a new Scheduling Member Group on
Nov. 1, also with Morgan Stanley.
TAX-EXEMPT STATUS FOR GSOC
The GSOC Board in 2010 adopted a resolution for
GSOC to apply for tax-exempt status, pursuant to
Section 501(c)(4) of the Internal Revenue Code, to
reduce our tax liabilities.
GSOC was established as a taxable not-for-profit
organization as opposed to a 501(c)(12) tax-exempt
cooperative, with the anticipation that the company
would derive a significant percentage of our revenues
from third parties. That revenue stream never materialized due to business changes. Therefore, we had an
opportunity to convert to a tax-exempt status.
GSOC, together with outside legal counsel,
determined that our best option was to file for tax
exemption as a 501(c)(4) Civic League, with no material
impact to the current business structure other than
future cost savings for taxes.
GSOC filed for tax-exempt status in early 2011,
receiving approval from the IRS later in the year. With
the tax status finalized, Members received a cumulative refund of approximately $350,000 in 2011, with
annual savings going forward.
MEMBER SYSTEMS > Click on the map for a complete list of the Member
Systems, Member Representatives and Member System Managers.
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Table of Contents >
Executive Message Member’s Perspective Board of Directors
Financials
An Overview of the System
2011 witnessed several weather events — from one of our coldest winter
days to some of the hottest summer months, with severe storms in
between. Those snowy January days led to high winter demands and challenges to power lines, but the system operated well. Many record-breaking
summer temperatures were set across the state as early as June.
Spring, however, brought significant challenges in the form of tornadoes and severe storms. April was one of Georgia’s stormiest months in
recent years. The storms of April 4 and April 27 were particularly rough.
Working to restore the bulk electric system requires that our transmission operators work hand in hand with Georgia Power Company’s
transmission operators to isolate problems on the system and redirect
power flows as needed. When storms as powerful as those in April hit, it
wreaks havoc on the system as we resolve transmission issues.
Transmission Control Center and Generation Control Center staff
meet every morning to discuss that day’s operating conditions, unit
status and bulk electric system projects. As part of the April 4 meeting,
the group discussed the storms predicted for that evening. It’s a reactionary job, as it’s hard to prepare for storms and outages. There are
no preventive actions we can take, other than staffing up and coordinating with Georgia Power to curtail scheduled work on the system until
storm conditions pass.
The transmission operators monitored the storm all day, from
as far west as Oklahoma, to get a feel for when it would hit Georgia
and how severe it would be. The storm hit the state around 8 p.m. By
midnight, the transmission operators had logged 18 sustained outages
(those outages lasting more than one minute) to EMC delivery points
and tracked many more instantaneous operations, or blinks. We were
able to shorten some outages, but the storm was too strong to keep all
the lights on across the state.
By the time the storm was over, there were 88 EMC meter points
suffering sustained outages. The storm left us with numerous EMC
distribution outages that required several days to completely restore.
The April 27 storm tested the abilities of EMC and GSOC control centers to minimize the impact on our Members. Much of the
Integrated Transmission System came down across north Georgia and
southern Tennessee.
We’ve begun to see a load increase
due to many farms in the Irwin and
Middle Georgia territories switching
to electric irrigation systems for their
crops. Irrigation pumps and pivots
make up almost one-third of Middle
Georgia EMC’s total demand, and
about the same for Irwin EMC.
— Randy Crenshaw,
Irwin EMC/Middle Georgia EMC
Southern Rivers Energy received
much-needed assistance from several
EMCs across Georgia during the wake
of the tornadoes that struck our system
on April 29. In addition, the dedicated work by GSOC’s Transmission
Control Center helped us completely
restore power to everyone whose
home wasn’t severely damaged by
Sunday, May 1.
— Raleigh Henry,
Southern Rivers Energy
The storms of April 28 were devastating to our electrical distribution
system. The damage left was more
severe than any in our 74-year
history, leaving miles of tangled
power lines and 291 broken poles.
Power was restored to all but 1,420
meters by evening, and completely
restored by May 1.
— George Weaver,
Central Georgia EMC
Those long, hot days last summer
did have some impact on our sales,
but most of our increases are coming
from the switch to electric irrigation
systems on farms in our region.
— Tony Tucker,
Mitchell EMC
The EMC managers quoted above are (clockwise from top left) Randy Crenshaw, Irwin EMC/Middle Georgia EMC; Raleigh Henry, Southern Rivers
Energy; George Weaver, Central Georgia EMC; and Tony Tucker, Mitchell EMC.
6
Table of Contents >
Executive Message The EMC managers
quoted are (clockwise
from right) Danny
Nichols, Colquitt EMC;
Randall Pugh, Jackson
EMC; and Frank Askew,
Washington EMC.
Member’s Perspective Board of Directors
Financials
2011 began with many of the state’s EMCs bracing for winter snow and ice
storms. EMCs statewide called upon others to provide help and support.
Colquitt EMC geared up to assist fellow electric cooperatives by mobilizing employees and contract crews. We sent three district crews to Walton
EMC in Monroe, three contract crews to Jackson EMC in Jefferson and lent
a total of 18 equipped trucks. The statewide EMC disaster plan has laid the
groundwork for quickly getting help from related EMCs when needed. The
mutual cooperative objective is to restore power as fast as possible when
outages occur.
— Danny Nichols, Colquitt EMC
We’re adjusting to a new normal,
where new housing starts are a memory and unemployment is high. We’re
dealing with it the same way as our
members: making every dollar count,
being as efficient as possible and trying
to guard against uncertainty. By using
our resources wisely, we’re keeping
spending down and rates affordable.
— Randall Pugh, Jackson EMC
System maintenance has reduced the
durations of outages due to rightof-way and equipment problems.
Our investments in system planning,
proactive maintenance, right-of-way
clearing and innovative technology
help decrease the number of system
outages annually. Working closely
with the Transmission Control Center
helps us schedule maintenance when
it best suits our members.
— Frank Askew, Washington EMC
On April 27, the Southern Balancing Area was hit with damaging
storms and tornadoes, resulting in several system balancing issues. Due
to a large loss of load in Alabama, Georgia maintained generation supply
at a level to counter west to east flows from Alabama due to excess base
load generation. For this effort, we were requested to run several units
continuously from the evening of April 27 through April 29. In addition,
due to damage in northwest Georgia and southern Tennessee, GSOC was
restricted from Rocky Mountain operations until the overnight period
on April 28, and then we remained restricted to a one-pump unit. All
generation dispatch requests were released by the following evening.
This past summer may have been hot, but the control centers and
our system kept their cool, running without incident. Summer temperatures exceeded the 100-degree mark several times across the state,
and all but a couple of days surpassed the average daily temperature.
These high temperatures have proven beneficial for Members; by the
end of July, 395,559 MWh more energy was sold than forecasted. GSOC
System Operations called just two 1A and one 1B alerts, when temperatures were forecasted near 100 degrees. The system worked well and
those days proceeded without incident.
Although summer temperatures exceeded the 100-degree mark, the
all-time GSOC system peak set in 2007 remains at 9,169 MWh. Last summer’s June 1 peak of 8,516 MWh held the top spot for two months, but was
eclipsed on Aug. 3 with a peak of 8,863 MWh — 17 MWh higher than the
2010 peak, but short of the 2011 forecasted peak of 9,066 MWh.
2011 OPERATIONS
GSOC Gross Integrated Peak Switching Orders Executed
Total Prearrange Requests Processed
CPS2 Compliance (annualized)
2011
2010
8,863* MWh
3,920
2,909
94%
8,846 MWh
4,920
2,906
94%
GTC Substation Construction
New Distribution Substations
New Transmission Substations
New EMC Metering Points
Retired Sites
Station Capacity Increase/Voltage Conversion
5
0
2
3
20
*The GSOC integrated peak with losses (B1) occurred on Wednesday, Aug. 3.
7
9
3
4
3
31
0
0.0
Table of Contents >
Executive Message Member’s Perspective System Highlights
10
Load Growth (MWh)
3,000,000
6
2,500,000
MWh
4
2,000,000
1,500,000
2
12/05
12/08
12/11
This chart illustrates how the system load has grown during the past 72 months. Each data
point represents the average monthly consumption for the previous 24 months. The system
load included 39 EMCs through December 2004 and 38 EMCs beginning in January 2005.
Annual System Peak and Energy (MWh)
10,000
8,000
39,368,717
MWh
36,096,762
2,000
500,000
37,003,114
36,860,155
36,036,603
36,096,762
37,241,009
2,000
0
36,036,603
36,860,155
2006
2007
2008
2009
2010
2011
Reliability: It’s the most critical service we offer
our Member Systems, other than electricity itself.
0
2008 2009
2010 however,
2011
Without2006
a staff2007
of well-trained
operators,
we risk maintaining that reliability.
The widespread outage that originated in
Arizona is a prime example of why it’s critical that
we offer our operators an ongoing training program.
39.99999This outage, which left millions from Arizona to San
Diego to Mexico in the dark for nearly 24 hours, is
36.66666believed to be related to a procedure an employee
was performing at a substation. It seems unfathom33.33333able that a single mistake could plunge so many
people into darkness — but it’s definitely possible. In
30.00000
fact, it’s one of the major drivers of NERC’s increasingly stringent compliance programs.
At the beginning of 2011, NERC President Gerry
Cauley issued eight top priorities for bulk power
system reliability. This event points out why human
error by field personnel was second on the list. As
Cauley wrote, “Risks can be introduced when field
personnel operate equipment in a manner that
reduces the redundancy of the bulk power system,
sometimes even creating single points of failure that
would not exist normally.”
This bar graph reflects the annual system peak growth during the past six years, while the accompanying line represents the annual system energy demand growth during the same period.
8
39.99999
37,241,009
A Reliability Perspective
0
4,000
37,003,114
6,000
4,000
1,000,000
6,000
Financials
GSOC’s System Operations group
places a priority on our system
operator training
program.
Annual
System
PeakOur
and Energy (MWh)
in-house trainer works with System
Operations engineers to develop
10,000
the classroom-style training
courses, which are held twice each
year. The training programs will
8,000 continue to grow, as NERC requires
39,368,717
more training each year.
8
3,500,000
0
Board of Directors
2011 Total System @ B-1:
37,241,009 mwh
So, what’s an electric utility to do?
GSOC’s System Operations group places a
priority on our system operator training program. Our
in-house trainer works with System Operations’
engineers to develop the classroom-style training
courses, which are held twice each year. Operators
also take external training courses and attend
2011 Totalconferences.
System @ B-1: The training
37,241,009
mwh will
industry
programs
2011 System Peak @ B-1:
8,863 mwh
continue to grow, as NERC requires more training
each year.
Total
System
@ B-1:
39,368,717System
mwh
2010As
part
of our
focus on reliability,
2010 System works
Peak @ B-1:
Operations
closely with 8,846
GTC tomwh
manage
and lower the average duration and frequency of
2009
transmission
outages. This partnership has led
36,096,762 mwh
to 8,337
the lowest
SAIDI
(System Average Interruption
mwh
Duration Index) and SAIFI (System Average
Interruption Frequency Index) numbers ever, as
well as a dramatic reduction in MAIFI (Momentary
Average Interruption Frequency Index).
In 2011, records were set for SAIDI and SAIFI
at the transmission level, and at the distribution
level for EMC SAIDI.
Table of Contents >
Executive Message Member’s Perspective Board of Directors
Financials
A Tucker Perspective
Safety and security always are top of mind at the Tucker campus.
The campus’ initial emergency response plan was updated in 2011. In developing it, we benchmarked the plan with nearly a dozen corporations to ensure it reflected best practices. We also gained
input from key stakeholders on campus before finalizing the plan and introducing it across the Family
of Companies. An e-learning module, completed by all employees, helped reinforce and educate our
associates on how to respond to various emergencies. Collateral, such as a visitor/vendor orientation
brochure, further communicated our campus plans and expectations.
In addition, enhancements across campus included updating the two control centers. A new mapboard was installed in the Generation Control Center, and the Transmission Control Center will have a
new mapboard installed in 2012.
Each of our state’s electric cooperatives are independent organizations,
and yet we all share many of the same issues and challenges. To help us
address those issues and share best practices, in 2010 we created the GEMC
Technology Association, a statewide organization for information technology
professionals at EMCs. GSOC’s Gary Williamson is a member of this association. We held our first organizational meeting in September, and already
several of our members have shared best practices and implemented ideas
from other organizations. Together, we can strengthen our own departments
and the state’s industry.
— Louise Blackman, Snapping Shoals EMC
OUR COMMUNITY RESPONSIBILITY
As our Members support their communities through various programs, GSOC supports our community
through a variety of companywide efforts.
GSOC, with OPC and GTC, has supported the metropolitan Atlanta chapter of the American Red
Cross through regular campus blood drives for decades, and GSOC has led the initiative for more than a
decade. During the 2010–11 year, 54 percent of associates participated in campus blood drives, surpassing
the Family of Companies’ goal.
Greg Ford was appointed chairman of the metropolitan Atlanta chapter’s LifeBoard committee
in 2011. LifeBoard members are among the largest and most dedicated corporations in the Atlanta
area. The Southern Region of the American Red Cross, for which Ford serves on the board of directors,
depends on these committed companies to help collect the roughly 1,200 units needed daily to provide
adequate blood supplies to about 130 hospitals. The Family of Companies’ participation has remained
competitive among the LifeBoard corporations, placing second in 2010–11 for the highest participation
percentage among LifeBoard members.
GSOC also supports the Salvation Army by coordinating the Salvation Army Angel Tree Program for
the Family of Companies. Through this program, employees adopt children in need, giving them a more
joyful Christmas morning.
For the past several years, Family of Companies employees have joined together one autumn
Saturday morning to clean a neighboring park or school. This initiative, the Hands On Atlanta/Rivers
Alive Day, has benefitted from many GSOC and Family of Companies employees cleaning these public
areas, the last two years at a local school.
GSOC employees also support local organizations through PowerAid, our internal program that
encourages employees to help a variety of volunteer organizations. The PowerAid program coordinates
opportunities throughout the year, such as sorting food at the Atlanta Community Food Bank and helping the local Salvation Army chapter sort through the Angel Tree donations from across the region. An
annual volunteer fair is held to introduce employees to area volunteer organizations.
9
Roll ‘em Up!
Join Greg Ford in rolling up your
sleeves and donating at the October
Red Cross blood drive.
Campus Blood Drive
Tuesday, Oct. 25
7–11:45 a.m.
Auditorium
To reserve your appointment,
email @blooddrive.
If your name is selected from the FOC donor list after our October blood drive, you could win an Apple iPad 2.
Donors will also be entered in a Red Cross drawing for one of three pairs of Delta Air Lines tickets. All donors will receive a $5 Eurest Cafeteria coupon.
Appointments preferred, but walk-ins are welcome. Please bring a form of ID when you donate.
Several GSOC associates gave up a September Saturday to clean the grounds of Druid Hills
Middle School, located near the Tucker campus, during the Family of Companies’ Hands On
Atlanta/Rivers Alive Day. Our associates also give their time and blood donations during the
seven campus drives each year. GSOC President & CEO Greg Ford leads that effort for the
Family of Companies and the citywide LifeBoard committee, and is a member of the board of
directors for the Southern Region of the American Red Cross.
Table of Contents >
Executive Message Member’s Perspective Board of Directors
The GSOC Board of Directors (first row, from left): Hugh
Rucker, Chairman; Neal Shepard, Vice Chairman; (second
row): Randall Pugh, Secretary-Treasurer; Randy Crenshaw;
Simmie King; Wayne Livingston; (third row): George Loehr;
Royce Lyles; Mike McCoy; Ted McMillan; (fourth row):
Harry Park; Julian Rigby; Neal Trice; Jim White 10
Board of Directors
Financials
Table of Contents >
Executive Message Member’s Perspective Board of Directors
Financials
Member Systems
Member System
1. Altamaha EMC 2. Amicalola EMC 3. Canoochee EMC 4. Carroll EMC 5. Central Georgia EMC 6. Coastal EMC d/b/a Coastal Electric Cooperative
7. Cobb EMC 8. Colquitt EMC 9. Coweta-Fayette EMC 10. Diverse Power 11. Excelsior EMC 12. Grady EMC 13. GreyStone Power 14. Habersham EMC 15. Hart EMC 16. Irwin EMC 17. Jackson EMC 18. Jefferson Energy Cooperative 19. Little Ocmulgee EMC 20. Middle Georgia EMC 21. Mitchell EMC 22. Ocmulgee EMC 23. Oconee EMC 24. Okefenoke REMC 25. Pataula EMC 26. Planters EMC 27. Rayle EMC 28. Satilla REMC 29. Sawnee EMC 30. Slash Pine EMC 31. Snapping Shoals EMC 32. Southern Rivers Energy 33. Sumter EMC 34. Three Notch EMC 35. Tri-County EMC 36. Upson EMC 37. Walton EMC 38. Washington EMC 11
Member Representative Member System
Manager
Robert E. Youmans John H. Bennett Jr. Lavanda Lynn Alvin W. Ginn D.A. Robinson III Stephen Mullice Romanous Dotson
Charles L. Gibson
Douglas F. James
Ernest A. Jakins III
George L. Weaver
F. Whit Hollowell
William J. Gresham Jr. Bobby R. Griner Mildred A. Winkles Harrell L. Landreth Vacant Donald C. Cooper John A. Walton Dan Thurmond
Guerry Hall Ed Moore Bill Carpenter Joe Shurley Jim Knight Ronnie Fleeman W. Lucius Adkins Jr. Barry H. Martin Charles B. Grace Jimmy Woodard David Johnson
Robert A. Reeves Sr. J.M. Sherrer Robert L. Lewis Jr. Rodney H. Reese Lowell Herring Gene Morris W.H. Averett Jr. Bob Jernigan Steve Holt Thomas Noles Raphael A. Brumbeloe Warren Few Mike McCoy W.T. Nelson
Danny Nichols
Anthony H. Sinclair
Wayne Livingston
Gary Drake
Thomas A. Rosser
Gary A. Miller
Todd Pealock
Jeffrey W. Murphy
Randy Crenshaw
Randall Pugh
Kenneth Cook
Steve Murray (interim)
Randy Crenshaw
Tony F. Tucker
W.H. Peacock
Marty Smith
John Middleton
Jarrell J. Hulsey III
Edward M. Brinson Jr.
Tony Griffin
Romeo A. Reyes
Michael A. Goodroe
J. Timothy Register
Brad Thomas
J. Raleigh Henry
J. Ted McMillan
Carlton O. Thomas
C. Hill Bentley
Neal Trice
D. Ronnie Lee
O. Frank Askew Jr.