Co-op
NEWS
Surry-Yadkin Electric Membership Corporation Dobson, North Carolina
Volume LXXV
2015 Annual Report
A trip down memory lane... Does this booklet’s design seem familiar? It’s made
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to look like SYEMC’s 1940s newsletters. It’s all part of our 75th anniversary celebration!
75 Providing outstanding service that powers our rural communities
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2016 Board of Directors
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Back Row (Left to Right): Greg Puckett — Executive Vice President & General Manager, Eddie Campbell — District 10, Willard Swift — Board Vice President, District 3, Karoline Overby — Secretary, District 1, Lee Von “Toby” Speaks-Board President, District 7. Middle: Alvin Reid Jr. — District 5, David Pendry — District 9, Brenda Hardy — District 4, Stephen Hutson — District 2, Raymond Parker — General Counsel Front: David Miller — Treasurer, District 8, Steve Joyce — District 6
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Annual Meeting Agenda Program
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Lee Von (Toby) Speaks, President Presiding Declaration of Quorum . . . . . . . . . Lee Von Speaks (Board President) Meeting Called to Order . . . . . . . . . Lee Von Speaks Introduction of General Manager . . . . . Lee Von Speaks Invocation . . . . . . . . . . . . . . . Greg Puckett (Executive Vice President & General Manager) Presentation of the American Flag . . . . . SCHS Jr. ROTC Singing of the National Anthem . . . . . . . SCHS Chorus Report of Manager . . . . . . . . . . . . Greg Puckett Introduction of Legal Counsel . . . . . . . . Greg Puckett Reading of Notice of Meeting/ Minutes of Last Meeting . . . . . . . . Raymond Parker Annual Election . . . . . . . . . . . Raymond Parker a. Report of Nominating Committee . . . Raymond Parker b. Election of Directors . . . . . . . . Raymond Parker Adjournment . . . . . . . . . . . . Raymond Parker Drawing of Prizes . . . . . . . . . . . . Adam Martin (Manager of Public Relations)
ENTERTAINMENT • Ben & Eric Marshall (8:30–10:30 a.m.) • Face Painting (Kids — Lobby) • Inflatable Obstacle Course (8:30–10:15 a.m.)
BOOTHS • LED Giveaway • A Look at Security Lights Over the Years • Advanced Metering for Electric Co-ops • High Voltage Demo • Fairview Solar Farm
PRIZE DRAWING
Immediately following our business meeting we will give away lots of valuable prizes. So make sure to stick around until the end!
BREAKFAST
Biscuits, doughnuts, and beverages will be served from 8:00–10:30 a.m. in the school cafeteria.
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W T o a
About Us
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urry-Yadkin Electric Membership Corporation was founded in 1940 by a group of local farmers. These visionaries were committed to providing electricity to rural families for a good reason. Four years after President Roosevelt signed the Rural Electrification Act, they had seen electricity lift many families out of poverty. It created demand for new jobs and products, and enabled farmers to make efficiency upgrades that resulted in crops being produced and sold more quickly. Just seven months after SurryYadkin EMC closed on our first loan from the Rural Electrification Administration (REA), we energized our first lines on February 22, 1941. Eight months after we first delivered power to parts of Surry County, we held our first annual meeting.
Electric cooperatives around the nation soon became the pillars that supported economic growth in rural America. Locally, Surry-Yadkin EMC became well-known, but we weren’t always recognized by that name. Many members referred to us simply as The REA; in fact, they even wrote their checks out to REA. Now, you may call us your energy company, or maybe even just “the coop.” But to us, our name is our brand: it’s everything that comes to mind when you think of us. It is our hope that you always see us as we see you: as neighbors, and as supporters of the community. Seventy-five years ago we provided electricity to anyone who wanted it, no matter the cost. Decades later, our focus is still to provide outstanding service that powers our rural communities. But our commitment
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Who are we? The dream of a group of farmers; a vision of a brighter tomorrow. extends beyond that: Surry-Yadkin EMC, like all cooperatives, exists to meet and exceed our members’ needs and expectations. We are owned and governed by our local members. We are proud to be a community partner and to lead in initiatives that make our communities even more vibrant places to live and work, whether that means feeding lowincome families over the holidays or providing aid to an organization that offers an essential service. To make sure our support is as impactful as possible, a committee of employees assesses opportunities and directs strategic investments. In 2015, after considering the details for a proposal to build a new, six-patient hospice home in Yadkin County, the committee and our cooperative leaders immediately understood the importance of our involvement. We set an audacious goal
to raise $25,000 for Mountain Valley Hospice & Palliative Care’s capital campaign, which focused on financing the building’s construction. Thanks to our employees, vendors, and the greater business community, we reached this seemingly unthinkable goal. Now, project construction is under way and Yadkin County residents will soon have access to around-theclock hospice care for their loved ones. We have met many of the communities’ needs over the past 75 years by adapting to change, but nothing will change our mission to serve or who we are. Who are we? The dream of a group of farmers; a vision of a brighter tomorrow.
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Financials
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WHAT WE OWN . . . . . . . Present Value of Our System . . . Investments . . . . . . . Cash on Hand and in Bank . . . Accounts Receivable . . . . . Materials and Supplies . . . . Renewable Energy Credits . . . Prepayments . . . . . . . Other Assets and Debits . . . . TOTAL ASSETS AND OTHER DEBITS
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. . . . 2014 . . . . 88,283,174 . . . . . 9,451,649 . . . . . 1,118,879 . . . . . 6,394,370 . . . . . 871,811 . . . . . 262,321 . . . . 75,434 . . . . . 1,570,165 . . . 108,027,803 .
.
WHAT WE OWE Long Term Debt . . . . . . . . Long Term Debt — Current . . . . . Current Accounts Payable . . . . . Notes Payable . . . . . . . . . Other Noncurrent Liabilities . . . . . Other Current & Accrued Liabilities . . . Membership Fees . . . . . . . . Consumer Deposits . . . . . . . Patronage Capital and Margins . . . . Other Margins & Equities . . . . . Other Deferred Credits . . . . . . TOTAL LIABILITIES AND OTHER CREDITS REVENUES: Sale of Electric Energy .
.
.
.
.
.
. . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . .
. . . . . . . . . . . .
. 50,008,490 .
.
.
50,299,612
. . . . . . . .
. . . . . . . .
. . . . . . . .
29,697,462 . 2,514,846 . 4,646,065 . 1,466,955 186,430 . 3,461,132 . 3,674,343 . 2,426,434
. . . .
. . . .
. . . .
.
3,055,112 .
.
.
. 3,659,273
. 56,631,691 . . 2,500,397 . . 4,011,927 . . . . . . . 9,213,481 . . 216,964 . . 84,247 . . 1,197,718 . 31,145,205 . . 2,582,931 . . 443,242 . . 108,027,803 .
COST OF ELECTRIC SERVICE: Purchased Power . . . . . . . . . Operations of Lines . . . . . . . . Maintenance of Lines and Property . . . . Consumers Accounting and Collecting . . . Consumer Services and Information Expenses . Administrative and General Expenses . . . Depreciation . . . . . . . . . . Interest on Long Term Debt and Other . . . Taxes . . . . . . . . . . . . Other Operations Deductions . . . . . . Total Expenses . . . . . . . . . Operating Margins . . . . . . . . Non-Operating Margins and Other . . . .
29,551,431 . 2,288,696 . 4,872,372 . 1,495,802 . 184,810 3,277,812 . 3,429,196 . 2,394,230 . 750,642 . . 4,515 . 48,249,506 . 1,758,984 . 1,296,128
MEMBER EQUITY .
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.
.
.
.
.
.
.
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. 2015 93,732,008 . 8,622,790 . 771,001 . 7,962,805 . 803,618 . 306,648 . 101,133 . 1,367,496 113,667,499
. . . . . . . . . .
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56,289,292 2,515,721 3,430,791 500,000 9,712,946 636,713 . 82,757 1,172,711 33,638,046 . 3,399,733 . 2,288,789 113,667,499
. . . . . . .
. 9,600 48,083,267 . 2,216,345 . 1,442,928
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8 0 1 5 8 8 3 6 9
2 1 1 0 6 3 7 1 6 3 9 9
Capital Credits
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ver the last 75 years, SurryYadkin EMC has retired $30,628,430 in capital credits. This year alone, we are retiring more than $700,000 in capital credits. But your co-op gives back to its members and its community in many other ways, too. Browse through this booklet and check out our monthly newsletters in Carolina Country to find interesting stories about our community involvement and to learn about programs that can save you money. How Your Dollar is Spent Cost of Power 59¢
2
Average KWH per Member per Month 1985: 782 1995: 966 2005: 1,114 2015: 1,160 Miles of Line 1985: 2,720 1995: 3,230 2005: 3,859 2015: 4,037
26,925 members served in 2015 Cost of Borrowing Money 5¢
2 6 5 5 0 2 3 4
Net Margins 4¢
0 7 5 8
Cost to Operate 25¢
3
Depreciation Costs 7¢
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Cost
What Can You Do With Six Dollars A Day?
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id you know the average house served by Surry-Yadkin EMC uses about 1,200 kilowatt hours each month? That’s about six dollars per day that you spend on electricity, or roughly the cost of a fast food value meal. But how does the value of a day’s worth of electricity compare? Consider the hot shower you enjoy, your home’s temperature, cooking the food that nourishes you and the devices that keep you entertained. You rely on electricity to meet your daily needs. That’s why we work diligently to power your lives. Because the electric distribution system is subject to elements we cannot control, like severe weather, we will never be able to completely eliminate power interruptions. But we CAN minimize them and that is a
priority for us because outages are a disturbance to your daily routine and sometimes can be costly, especially if you run a business. In recent years the co-op has invested its resources in reducing the frequency and duration of power outages. We found that most outages on our distribution system could be traced either to fallen trees or short circuits caused by low-lying vegetation. This led us to invest in improving the co-op’s Vegetation Management program. As a result, the average annual outage time per member in 2015 was nearly half as low as the number that was reported in 2012.
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Ratio 143–System Avg. Interruption Duration Index (SAID)–All Other 180.00 160.00
NC049
140.00
120.00 100.00
This graph (right) 80.00 represents annual outage 60.00 statistics, or the System 40.00 Average Interruption 20.00 Duration Index (SAIDI), reported by Surry-Yadkin EMC to The National Rural Utilities Cooperative Finance Corporation (CFC). As you can see here, Surry-Yadkin EMC’s score dropped to approximately 93.50 minutes per consumer in 2015. This data helps us gauge whether we have seen a return on our investment. 2015 KRTA Data
2011
2012
2013
2014
2015 Ver.2.4.7
Unfortunately, inflation tends to have its own effect on our perception of value. When today’s $6 value meal costs $7, we will likely reconsider the product value. The co-op is not immune to inflation; however, we will continue to invest in new technologies and programs that increase the value of your service for years to come.
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On January 30, 2015, we celebrated the addition of the Fairview Solar Farm to our distribution system. This day signaled a big moment for our membership and for the communities we serve. Here’s why.
Going Above and Beyond to Provide Clean Energy
F
ince the Fairview Solar Farm began producing energy, it has supplied more than 350,000 kilowatt hours of clean, emission-free energy to the grid. That’s a small step toward a more sustainable environment for future generations, but it also is a sign of major change for our industry.
or years we have provided reliable service, thanks to emission-free nuclear energy. That’s quality power without the greenhouse gases that are harmful to our environment. In fact, 56 percent of the energy you receive now is from a nuclear source. It’s safe, dependable, and affordable. But that doesn’t mean we should put all of our eggs in one basket, and one reason is because North Carolina is one of 29 states with a renewable portfolio standard.
Gone are the days where the power grid can be traced along one path. Now energy can be generated and sent back onto the grid from virtually anywhere. As our industry changes, we change with it so we can continue providing you with affordable, reliable power.
North Carolina passed a law in 2007 that requires electric utilities to put some eggs in the basket labeled “renewables.” That includes any power generated with resources that are not depleted as they’re used, like sunlight, wind and water. As we discussed how best to divide our eggs, we thought:
The Times They Are a Changin’
S
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“The future of green energy in Surry County is getting brighter with the construction of a solar farm by Surry-Yadkin Electric Membership Corp.” — Tom Joyce, Mount Airy News What if we offered our members programs to help them save energy? Then we could remove some eggs altogether. Since 2007, Surry-Yadkin EMC has added more than 111 million kilowatt hours of renewable energy to our resource mix. We also offered rebate programs that helped our members save more than 29 million kilowatt hours. When combined, that’s enough energy to power more than 9,700 homes for one year. But we didn’t stop there. We chose to take our own stake in renewable generation — going above and beyond the state’s requirements because we agreed with the citizens of North Carolina. We should be good stewards of the environment. Building a solar farm was a great place to start.
million kilowatt hours coming from 34 different, in-state solar facilities. And at the Fairview Solar Farm, our American-made panels are expected to contribute 300,000 kilowatt hours to the total next year. That means more solar power for our members and a more sustainable environment for all.
Looking Ahead
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n 2017, 3.5 percent of SurryYadkin EMC’s retail sales will come from renewables. Out of that 3.5 percent, 2.2 percent of sales will come from solar energy right here in North Carolina. That’s 8.7
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75
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510 S. Main Street Dobson, NC 27017 336-356-8241 syemc.com
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