The current year for the cooperative saw a continued investment in infrastructure while maintaining a strong financial position. Your cooperative invested just shy of $13 million in the electric plant, bringing the two-year total to over $25 million. The total assets held by the REMC total $97 million and over 90% of those are plant assets needed for electric service. The cash balance decreased equal to the prior year’s increase as it was used on the plant additions. Again, for the current year, plant investment was primarily made through borrowings to spread the cost of the additions over the member-consumers who will use the new plant and avoid additional rate pressure. As of the end of the year, member-consumer owned equity in the cooperative totaled $56 million. In addition, $180,000 worth of that patronage equity was returned to the membership.

The revenue collected by the REMC increased to just over $40 million to cover the increase in power cost from an ever-turbulent market. Operating expenses have maintained the same level over the past two years, helping offset the impact of that which is not as controllable. As a result, margins were lower than previous years as the co-op works to keep rates as low as possible while providing the expected service in line with only collecting the amount needed. In the current year, 65% of every dollar collected went directly to purchase power, with the remainder used to invest in plant improvements and operational costs. Moving forward, the co-op is aware of the differing financial challenges in the market as well as of each individual member.

The cooperative board of directors remains focused on ensuring proper investment for the expected level of service our members deserve, while also being mindful to do so as efficiently, safely and cost effectively as possible.