September 2019 – Connections Member Newsletter – Annual Report

Georgia Georgia Georgia Celebrating the Georgia lifestyle

GEMC

®

MAGAZINE

Read the Cobb EMC Annual Report page B Come to the Annual Meeting!

Back page SEPTEMBER 2019

Celebrating the Georgia lifestyle

GEMC

®

MAGAZINE

Celebrating the Georgia lifestyle

GEMC

®

MAGAZINE

Free fair tickets, prize drawings and bucket truck rides at Cobb EMC’s Annual Meeting!

LETTER TO MEMBERS From all of us at Cobb EMC, we want to invite you to our annual meeting.

Bring your family to Jim R. Miller Park on September 14 and enjoy our annual member appreciation event.

Each member who registers will get four free fair tickets and a chance to win prizes. But you’ll also get to learn more about what we’re doing to improve our co-op. Here’s a sneak peek.

Our team is focused on bringing you value and savings. We’ve lowered bills seven times in three years, and we’re now ranked the seventh most affordable energy provider in Georgia among all 94 providers in the state. When power costs came in lower than expected at the end of last year, we gave back $4.5 million to you: our members.

We’ve also added new rate options, so you can decide which rate helps your family save the most money.

Each month, our consumers’ bills are $21 lower than the average utility bill in the state.

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We’re dedicated to providing you safe and reliable electric service 24/7/365.

We perform year-round maintenance to take care of issues before they’re a problem.

Over the last 10 years, we’ve reduced outages 25%, which is why we’re now ranked in the top five nationwide for reliability.

Gas South, a subsidiary of Cobb EMC, also offers you big savings, including a permanent discount on already low rates. Pay no deposit, no connection fee, plus get additional savings for enrolling online. Together, we save you money.

We’re proud to power your lives.

Peter J. Heintzelman President and CEO

David McClellan Board Chairman

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LEADING THE CHARGE

At Cobb EMC, our eyes are on the future. We strive to bring you innovation and continual improvement. Every day, we work around-the-clock to power your homes and businesses with the most advanced technology – all while keeping electric rates low.

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SOLAR In the last two years, we’ve added more solar energy into our mix. In fact, we’ve increased solar 360%, with as much as 30% of our generation coming from affordable solar resources. We currently provide solar to all members at no additional cost.

EV We’re all about EVs at Cobb EMC. Why? Electric vehicles are becoming a practical choice, are now more affordable, offer lower maintenance costs and have the potential to help all members by keeping rates down.

Recently, we added EVs to our fleet for cleaner, more efficient driving. These fleet cars are also available to members who are interested in driving an EV for a day.

To further support EV adoption, we are the first EMC in the nation to offer free overnight charging with the NiteFlex rate plan.

TECHNOLOGY Smart technology, like Advanced Metering Infrastructure (AMI), allows our power control team to know exactly when a meter on our system loses power. In many cases, we’re able to diagnose the problem and reconnect service immediately. We’ve also integrated underground substations on our grid. A first of its kind in the Southeast, underground substations mean less maintenance and more reliable power.

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Cobb EMC has

over the last 10 years, REDUCED OUTAGES

25%

MAKING US TOP 5 NATIONWIDE for

reliable power F

Cobb EMC gives back to the communities we serve, and we thank our consumers who are part of it all. Our impact:

Powering economic development

Building tomorrow’s leaders

Supporting needs in our community

Making a difference in people’s lives

As a trusted community partner, we’re proud to provide jobs for residents in the communities we serve by energizing large employers and encouraging investment and job growth in our region.

During the 2018-2019 school year, Cobb EMC awarded $74,000 in scholarships to high school students and granted $20,000 to teachers across our five-county service area.

Cobb EMC members have given $4,600,000+ to benefit local nonprofits through the Cobb EMC Community Foundation and Operation Round Up.

Gas South, Cobb EMC’s whollyowned subsidiary, is committed to being a Fuel For Good in our communities. That’s why, for every dollar Gas South makes, they give back 5% to help children in need.

Cobb EMC

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Cobb Electric Membership Corporation is a not-forprofit electric membership corporation whose purpose is to provide electric service to its members.

The consolidated financial statements present the financial position and results of operations of Cobb Electric Membership Corporation and its wholly-owned subsidiaries, Cobb Energy Management Corporation and Gas South LLC. McNair, McLemore, Middlebrooks & Co. LLC conducted our audits as of Dec. 31, 2018, in accordance with auditing standards generally accepted in the United States of America.

The financial information included in this report represents a summary of our consolidated financial condition and operating results. Copies of the audited consolidated financial statements are available at cobbemc.com.

Review these statements for a more comprehensive overview of our financial condition.

Rudy Underwood Secretary-Treasurer Cobb EMC Board of Directors

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Balance Sheet - Consolidated Assets Net Utility Plant Other Property and Investments Current Assets Other Assets

2018 $ 642,379,723 240,053,613 141,169,902 9,778,005 $ 1,033,381,243

Balance Sheet - Consolidated Equities and Liabilities Equities Long-Term Liabilities Current Liabilities Deferred Credits

$ 385,921,718 482,122,594 153,979,673 11,357,258 $ 1,033,381,243

Consolidated Statement of Operations Operating Revenues Operating Expenses: Cost of Revenues Distribution Operations Distribution Maintenance Consumer Accounts Consumer Service and Information Administrative, Selling and General Depreciation and Amortization Operating Taxes Total Operating Expenses Operating Margins Before Interest Expense Interest Expense Operating Margins After Interest Expense Nonoperating Margins Generation and Transmission Patronage Allocations Other Capital Credits and Patronage Allocations Net Income Before Income Taxes Income Tax Expense Net Income

$ 921,683,542 699,144,900 10,905,554 23,330,309 13,983,154 1,355,317 82,621,170 32,842,330 4,243,611 868,426,345 53,257,197 22,178,373 31,078,824 1,996,569 6,448,794 2,463,445 41,987,632 6,956,000 $ 35,031,632

Statistical Profile

2018 year-end | The below numbers represent Cobb EMC data only.

205

4.5

200

4.0

195

3.5

190

2014 2015 2016 2017 2018

Number of Active Meters

201.9

(In thousands)

2014: 194.6 2015: 197.0

2016: 199.7 2017: 201.8

3.0

Kilowatt Hour Sales

4.1

10,700

1,200

10,500

1,100

9,000

1,000

8,300

2014 2015 2016 2017 2018

Miles of Line

9,206

2014: 9,156 2015: 9,230

2016: 9,068* 2017: 9,141

*Due to system true-up.

900

800

400

400

350

Total Plant Value

907.2

(In millions of dollars)

2014: 843.9 2015: 868.5

2016: 899.5 2017: 925.1

300

2014: 3.8 2015: 3.9

2016: 4.1 2017: 3.9

2014 2015 2016 2017 2018

1,162.3 450

2014 2015 2016 2017 2018

(In billions)

Peak Load

1,000

0

2014 2015 2016 2017 2018

(In thousands of kilowatts)

2014: 1,085.5 2015: 1,162.4

2016: 1,170.2 2017: 1,127.8

2014 2015 2016 2017 2018

Total Operating Revenue

434.5

(In millions of dollars)

2014: 412.7 2015: 402.1

2016: 420.9 2017: 429.7

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TURNING GOOD INTO GREAT

Cobb EMC is focused on bringing you value and making your electric experience even better. Our consumermembers are our No. 1 priority. We create programs and service offerings that empower you to make the most of your energy dollars.

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RELIABLE POWER FOR LESS We provide you with some of the lowest rates in the state.

Cobb EMC is ranked the seventh most affordable electric utility in the state among 94 electric providers, and third most affordable among 41 EMCs*. In addition, we’ve lowered bills seven times in three years to deliver you reliable, safe and affordable power. *2018 Georgia Public Service Commission Winter Residential Rate Survey

DOUBLE THE SAVINGS Our partnership with Gas South, a wholly-owned subsidiary of Cobb EMC, saves you even more.

Gas South offers a permanent discount on everyday low rates, you’ll never pay a deposit, or a connection fee and you’ll get bill credits for enrolling online. Choose Gas South for your natural gas service to start saving and experience their difference.

RATES THAT WORK FOR YOU We know each home and business we serve has unique energy needs. That’s why we give you the power to choose a rate plan that works for you – whether you want to conserve energy during certain times of the day, pay the same bill each month or pay as you go.

Visit cobbemc.com/meetyourmatch to learn more.

ENERGY EXPERTS When it comes to energy choices, we are your go-to resource. Look to us for answers about EVs, solar energy, trending technology and energy use habits. We’ve done the research and partnered with local experts to provide solutions. Whether you need a trusted contractor to install a smart thermostat, or you’re looking to buy an electric vehicle but aren’t sure where to start, let us help.

Board Candidates Members elect local directors who work diligently to plan for the co-op’s future.

See full bios at cobbemc.com/board.

David McClellan, District 4, and his family have been Cobb EMC members for more than 30 years. He has over 40 years of financial and accounting experience.

Education: BBA in accounting, MBA in finance; Experience: Big Four public accounting, Fortune 500 companies, CFO for privately owned and private equity owned companies; Board achievements: decreased rates – returned $54 million to our members, decreased outages – one of the top 5 most reliable electric utility in nation, increased members’ rights and transparency.

William C. Sharp, III (“Tripper”), District 5, has served on the board since 2012 and is the immediate past chairman.

Currently, he serves on the Management Committee for Gas South, Cobb EMC Audit Committee and Public Affairs Committee. He is president and CEO of Sharp Home Care, which provides in-home senior care services throughout metro Atlanta. Previously, he spent 20 years in the financial services industry, holding multiple leadership roles, including executive management. He is a graduate of Kennesaw State University and resides in Acworth with his wife and children.

Bryan Boyd, District 8, resides in west Cobb and has lived in the community for 45 years.

He currently holds the position of chairman of the board for Gas South, a whollyowned subsidiary of Cobb EMC, and has served as secretary, vice chair and chairman of the board for Cobb EMC. Boyd is the chief operations officer and partner of Archer Restoration Services Inc. in Acworth.

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Come to our member appreciation event and hear how we’re working to make your electric company more innovative, convenient and reliable. Plus, get free fair tickets!

Saturday, September 14 8-11:30 a.m. at Jim R. Miller Park 8-9:30 a.m.: Member Registration More info: cobbemc.com/annualmeeting

FREE FAIR TICKETS! Each Cobb EMC member who registers for the meeting will receive up to four free North Georgia State Fair tickets.