2020 ANNUAL REPORT
Executive Message: Virtual Annual Meeting
Bandera Electric Cooperative will host its 82nd Annual Membership meeting. Based on the success of last year's virtual annual meeting, which saw a significant rise in attendance, we have decided to once again make the annual meeting a virtual event. Attendance and participation in the annual meeting process is important because this meeting is your opportunity to meet BEC board members, hear from the management team about the events from last year and, more importantly, our plan for the future. This is your electric cooperative. You own it, and as an owner, we need your engagement and feedback as to how we are doing and where can we improve. Of course, we also need your involvement in the election process. Each year, as part of the democratic process, you elect three board members to represent your interests. The votes are counted at the annual meeting, and the new board members' three-year terms begin. During the pandemic, our field and electric operations employees were considered to be essential workers so they continued to work as usual, albeit with more enhanced safety precautions, and our back-office staff transitioned smoothly to a remote working environment. Despite the pandemic, we continued to see growth in our communities. While some businesses closed, we saw an overall 2.6% growth of electric members and a 32% growth of our broadband subscribers. ON AUGUST 14, 2021,
1 BA N D ER A EL ECTRIC C O OPER ATI VE 2020 AN N UAL REPORT
On February 12, 2021, we experienced the start of an unprecedented winter event. For nearly seven days temperatures were below or near freezing. At just after midnight on February 15, the electric generation supply collapsed, sending us into a statewide system emergency. The Electric Reliability Council of Texas, the operator of the state's power grid, required us to initiate rolling blackouts. For 72 continuous hours we rotated power outages to our members for periods of 25-40 minutes at a time. The technologies we deployed prior to the freeze helped us minimize the disruption and damage to our membership. BEC incurred financial impacts from the wholesale market pricing fiasco that took place. However, we are in a good financial position and will absorb these financial impacts without an increase in electric rates to the membership. It is still too early to tell what the financial impact will be from the recent legislation regarding uplift charges. However, we feel confident that those costs will be minimal. While the events of the last 18 months have been challenging and even disruptive, I am pleased to report that BEC has performed well and we look forward to engaging with you on August 14.
BILL HETHERINGTON CHIEF EXECUTIVE OFFICER
Bandera Electric Cooperative Board of Directors District 1
Medina Lake (partial) Pipe Creek
District 2
Bandera Area (partial) ROBERT AGUIRRE DISTRICT 1
FRANCES “FRAN” LAUE DISTRICT 2
JEFFERY “JEFF” SLOCUM DISTRICT 3
District 3
Bandera Area (partial) Center Point (partial) South Tarpley
District 4 Boerne East Cordillera
Walnut Grove
JEREMY DILLER DISTRICT 4 VICE CHAIRMAN
ANNEGRETH "ANNA" NIEMANN DISTRICT 5
RICHARD “DICK” EARNEST DISTRICT 6
District 5 Medina
North Tarpley Turtle Creek Utopia
Vanderpool
District 6 Concan Hunt CHRISTOPHER “CHRIS” BLAKEMORE DISTRICT 7
MICHAEL D.T. EDWARDS DISTRICT 8 CHAIRMAN
KURT SOLIS DISTRICT 9 SECRETARY-TREASURER
Leakey
District 7 Lakehills
Medina Lake (partial)
elect directors or trustees from the membership to serve on the cooperative board. These democratically elected directors govern and direct the affairs of the cooperative, guide how the co-op’s money and assets are used to fulfill the cooperative’s mission, and represent their members’ interests and concerns as they develop policies that guide the cooperative’s operations and strategic direction. MEMBER-OWNERS OF THE COOPERATIVE
In accordance with the Nomination and Election of Directors provisions of the cooperative’s bylaws, qualified candidates are to be placed on the ballot and voted upon by the cooperative’s members—districts 4, 5 and 6 candidates will each serve three-year terms as director. The candidate for any particular voting district receiving the highest number of votes shall be declared the director of that particular voting district.
Mico
District 8
Boerne (west of IH10) Ranger Creek
Tapatio Springs
District 9
Center Point (partial) Comfort
2020 A NNUA L R EPO RT BA NDE R A E LE CT RIC C O O P E R AT IV E 2
Notice of Annual Meeting
3 BA N D ER A EL ECTRIC C O OPER ATI VE 2020 AN N UAL REPORT
Minutes of the 2020 Annual Meeting of the Membership of Bandera Electric Cooperative, Inc. of the Bandera Electric Cooperative, Inc. was held virtually via livestream from the Bandera Electric Cooperative, Inc. headquarters building in Bandera, Texas, on the 15th day of August, 2020 in accordance with the Bylaws. Chief Executive Officer, Bill Hetherington, welcomed members to the Annual Meeting and asked that District 4 Director Jeremy Diller give the invocation at 10:00 a.m. THE ANNUAL MEETING OF THE MEMBERSHIP
General Counsel and Chief Administrative Officer, John Padalino, led everyone in the Pledge of Allegiance, then introduced himself and stated that voting for Directors closed at 11:00 a.m. on August 14, 2020. A total of 1,916 ballots were received by mail and 1,840 ballots electronically, totalling 3,756 ballots and thus established a quorum. Mr. Padalino called the meeting to order at 10:05 a.m., then introduced Chairman Michael Edwards, District 8 representative. Chairman Edwards welcomed members then introduced the Directors via video.
District 1 Jerry N. Word, Sr.
District 3 Jeffery (Jeff) Slocum
District 2 Frances (Fran) Laue
District 4 Jeremy Diller (Vice Chairman) District 5 Jerry Pierce
District 6 Richard (Dick) Earnest
District 7 Christopher (Chris) Blakemore
District 9 Kurt Solis (Secretary/Treasurer)
At 10:09 a.m., Bill Hetherington presented the CEO Report and highlighted the growth the Co-op experienced in 2019, including continued growth in membership, electric energy sales, and fiber service. CEO Hetherington shared that based on the strong financial year, more than $2.5 million would be distributed to members as capital credits. Mr. Hetherington then introduced a video highlighting the Co-op’s vision to help its membership by reimagining rural America.
At 10:18 a.m., Chairman Edwards informed the Members of the Cooperative’s 2019 Annual Report, provided via Texas Co-op Power and online, containing management and financial reports. He welcomed members who had any questions regarding the annual report to submit their questions in the online Q & A window at the conclusion of the meeting. General Counsel Padalino returned to speak at 10:19 a.m. and stated that no petitions were made for candidates for the Board of Directors, and in accordance with the provisions of the Bylaws, the following incumbent persons were placed in nomination as the official candidates:
District 1 Jerry Word
District 3 Jeffery Slocum
District 2 Frances Laue
Mr. Padalino stated that votes received by the August 14, 11:00 a.m. deadline had been tabulated by Survey and Ballot Systems. The final tabulation of votes included all electronic, phone and mail-in ballots. General Counsel Padalino read the report regarding the final tally of votes for each candidate at 10:20 a.m. The votes received were as follows:
Jerry Word – 3,270 votes.
Jeffery Slocum – 3,151 votes.
Frances Laue – 3,285 votes.
Mr. Padalino entertained a motion to approve the vote. A second was received, and the motion was approved by the membership at 10:21 a.m. With no unfinished business, Mr. Padalino entertained a motion to adjourn. A motion was made, seconded, and approved by the membership to adjourn the meeting at 10:23 a.m.
Chairman Edwards called upon Director Solis to read the Notice of Meeting and Proof of Mailing at 10:14 a.m. Mr. Solis then stated that the next order of business was the reading of the minutes of the Annual Meeting of the Membership held on May 18, 2019. He indicated that copies of these minutes were distributed to each Member in the annual report and entertained a motion to dispense with the reading of the minutes. A motion was made to dispense with the reading of and to approve the minutes of the Annual Meeting of the Membership held on May 18, 2019. The motion received a second and was approved by the membership at 10:16 a.m. Mr. Solis then introduced a video highlighting some of the Co-op’s services.
Kurt Solis Board Secretary-Treasurer
Michael D. T. Edwards Board Chairman
2020 A NNUA L R EPO RT BA NDE R A E LE CT RIC C O O P E R AT IV E 4
2020 Facts and Figures Total Members
27,496
Co-op Employees
Total Active Meters
38,084
Miles of Line
Community Solar Subscribers
163
BEC Solar Installs
122
ASAI Reliability
99.992%
4,708
Meters per Mile
8.1
155
Total Distributed Generation in Kilowatts
4,411
Total BEC Solar 1,602 Distributed Generation KW
Total Fiber Broadband Subscribers
7,641
Fiber Residential
KW
Fiber Commercial
7,333 308
Apolloware Installs
332
Total Energy Storage Capacity
489
Total Fiber Broadband Phone Subscribers
691
KW
Kilowatt-Hours Sold 2016
578,324,283
2017
581,898,713
2018
634,200,236
2019
641,686,867
2020
645,256,156
2.7%
Electric Member Growth
1.3%
1.2%
2016
2017
5 BA N D ER A EL ECTRIC C O OPER ATI VE 2020 AN N UAL REPORT
2018
2.4%
2019
2.6%
2020
Statement of Financial Condition and 2020 Revenue and Expenses A S S ETS Total Utility Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $334,490,665 Less: Accumulated Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . ($80,004,884) Net Value of Utility Plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $254,485,781 Investments in Associated Organizations . . . . . . . . . . . . . . . . . . . . . $5,638,018 Notes Receivable & Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $383,030 Current Assets Cash in Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $768,725 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,799,493 Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,817,819 Total Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,386,037 Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,892,866 E QUI TI E S & L I A BI L I T IE S Memberships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $663,475 Patronage Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $88,452,138 Other Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,781,899 Accumulated Other Comprehensive Income . . . . . . . . . . . . . . . . . . $2,094,728 Total Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $92,992,240 Long-Term Debt Less Current Maturities. . . . . . . . . . . . . . . . . . . . $160,883,157 Deferred Credits and Other Long-Term Liabilities. . . . . . . . . . . . . $3,511,077 Current Liabilities Current Maturities of Long-Term Debt. . . . . . . . . . . . . . . . . . . . . . . . . $6,257,347 Accounts Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,151,183 Other Current and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . $1,097,862 Total Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,506,392 Total Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $177,900,626 Total Equities & Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,892,866
O PERAT I NG R E V E NU ES Electric Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $68,210,439 Revenue from Divisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,482,934 Other Electric Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,415,739 Total Operating Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80,109,112 O PERAT I NG E XP E NSES & FIX E D C H A R GE S Cost of Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,086,353 COGS—Divisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $789,793 Operations and Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,860,572 Depreciation and Amortization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,298,582 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,188,997 Other Deductions (Additions). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $246,208 Total Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $69,470,505 Operating Margins—After Fixed Charges . . . . . . . . . . . . . . . . . $10,638,607 Non-Operating Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,074,582 Net Margins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,713,189
BEC Solar generated revenues of $602,592.
BEC Fiber generated revenues of $5,880,342. I, Kurt Solis, do hereby certify that I am the elected Secretary-Treasurer of Bandera Electric Cooperative, Inc., and that to the best of my knowledge, the financial and statistical information is true and correct as of December 31, 2020.
Kurt Solis Board Secretary-Treasurer
2020 A NNUA L R EPO RT BA NDE R A E LE CT RIC C O O P E R AT IV E 6
The BEC Foundation: 2020 Community Impact In 2020, the BEC Foundation awarded $72,190 in grants to 12 local nonprofits and more than 100 students in need of internet access for remote learning.
BEC FOUNDAT ION B OARD MEMB ERS FROM LEFT
The 2020 BEC Foundation Charity Golf Tournament fundraiser is rescheduled for October 11, 2021.
Bill Hetherington, ex officio; Colleen Davis; Toba Wright, chairman; David Ross; Lauren Salazar, secretary; and Stephanie Pankratz, treasurer.
2020 Grant Recipients Bandera Fire & Rescue Bandera Little League
Bandera United Methodist Church Comfort Little League Families & Literacy
First Baptist Church
Hill Country Daily Bread Ministries Hill Country Samaritans
Medina Community Library
Medina ISD Secondary School Rainbow Senior Center
Students in Need of Fiber Internet Utopia Food Pantry
7 BA N D ER A EL ECTRIC C O OPER ATI VE 2020 AN N UAL REPORT
2,395 members rounded up their bills in 2020, donating $10,679 to the Foundation.
Made with
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BEC FOUNDATION Your change makes a big difference in the community. The foundation provides grants to local nonprofits with a focus on education, safety and overall concern for community.
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Our Vision
Reimagining Rural America Our Mission
Lighting the Grid To Empower Our Members
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