INL A ND ’S RIP P L E EFFECT 2019 ANNUAL REP ORT
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C E O A ND P RE S ID E N T ’S ME S S A G E
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INL A ND ’S MI S S I O N A ND VISION
IN S ID E T HI S RE P O R T
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S P O K A N E , WA 9 9 2 24
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INL A ND BY T HE N U MB E R S
201 9 F IN A N C I A L S TAT E ME N T S
INL A ND A C C O MP L I S H ME N T S
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INL A ND IN T HE C O M M U NI T Y
CEO & PRESIDENT’S MESSAGE
We’ve all experienced the ripple effect. You throw a pebble into a pond and then watch as that single small action creates wider and wider waves throughout the once still pond. That one small pebble becomes the source of a much broader outcome. Likewise, Inland Power and Light is
purpose than ourselves–our ripple effect
successes highlighted in this annual
making ripples in the energy industry and
of service to our communities won’t
report. We continue to believe that our
throughout our service territory.
allow us to ever become complacent. The
products, services and value that Inland
growth of our community has brought
Power brings to our members remains
a great deal of potential to serve larger
as the fundamental element of our
loads and to be on the front lines of
continued success.
The year 2019 started with a strong
foundation of past successes, and we built on those accomplishments by
continuing to maintain a strong electric distribution system. We are sure many
great place to live and work.
Our pursuit of a bigger purpose fuels our continuous efforts to maintain a modern
of you remember the windstorm of 2015
The overall financial health of your
and reliable electric grid throughout
that took a devastating toll on our system
cooperative is excellent. After setting
our service territory. Simply stated,
and region. Despite the severe burden
aside the BPA Prepayment transaction,
Inland Power and Light exists to make a
brought on by the storm, the ripple
total assets were $191 million dollars,
difference in the communities and in the
effect of that storm resulted in your
long-term debt was $63 million
lives of those we serve. Our mission is our
cooperative strengthening our system
and net margins were $6.5 million.
members, and as we look ahead to our
and ensuring that our service would
Your cooperative was also able to
future, we can think of no more important
remain reliable, even when Mother Nature
return $2.5 million in capital credits
purpose than continuing to serve you and
reminds us of what she is capable of. Our
to the membership in 2019. This is
our communities.
system improvements have stood the
money refunded directly back to our
test and passed with flying colors. Your
communities and our valued members.
operations team has done exceptional
On behalf of your Inland Power board of trustees and all employees of Inland
Within the pages that follow, you will see
Power & Light, we thank you for your
evidence of our dedication in serving
support, your business, your continued
and continually creating value for our
trust and for the honor of serving
members. The ripple effect of 2019 is still
your energy needs now and well
We also continued improving and
in motion and we look forward to creating
into the future.
strengthening community services that
even bigger waves as we continue to
have long been a proud part of our
move forward in the years to come. We
traditional cooperative commitment to
thank our employees for their dedication,
our communities and members. Here at
effort and willingness to embrace change
Inland Power, we operate for a bigger
and for the accomplishment of all the
work to ensure that Inland Power’s service continues to be safe and reliable.
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continuing to make eastern Washington a
CEO INLAND POWER & LIGHT
PRESIDENT BOARD OF TRUSTEES
INLAND’S RIPPLE EFFECT | 2019 ANNUAL REPORT
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MIS SION O U R MI S S I O N IS OUR ME MB E R S
VI SI ON
Be a premier member-owned energy cooperative committed to safe, reliable service at competitive rates with great member engagement and experiences.
What is a mission? It is a belief in something
productive. Our vision at Inland Power is
bigger. It is a commitment that is just as
to “be a premier member-owned energy
strong, if not stronger than when it was first
cooperative committed to safe, reliable
written. It is a ripple effect that impacts
service at competitive rates with great
and drives everything a person, company or
member engagement and experiences.”
organization does.
We believe that by living our mission and
At Inland Power and Light, you are what
remaining focused on our vision, our ripple
drive us and the reason we do what we do.
effect will continue to make an impact in
Each process is created, and each decision
every community and with every member
is made with you in mind. Our goal each day
we serve. These words are more than just
is to provide you with the very best service.
ideas. They are the foundation on which
Our mission is simple. It doesn’t need to
your cooperative is built and the ideals we
be long and verbose because it all comes
strive to uphold for you every day.
down to one factor—you. Our mission is our members—and we are committed each day to fulfilling that mission. Similarly, we need vision in life to see where we want to go. We must dream big and work toward fulfilling those goals. As time moves forward, your Inland team adapts and works to become more efficient and
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INLAND’S RIPPLE EFFECT | 2019 ANNUAL REPORT 4
PER 5.81 MEMBERS MILE OF LINE 7,455 MILES OF LINE
16,671
102
MEMBERS ENROLLED IN FLEXPAY
101,778
B Y T HE N U MB E R S
MEMBERS ENROLLED IN SMARTHUB
NUMBER OF POWER POLES
2,173
MEMBERS WHO ENROLLED IN SMARTHUB IN 2019
55,643
32,315 43,285
ANNUAL NUMBER OF MEMBER SERVICE CALLS
NUMBER OF TRANSFORMERS
MEMBERS ENROLLED IN AUTOPAY
NUMBER OF METERS
4,352
1,070
AVERAGE WEEKLY PHONE CALLS
TOTAL NUMBER OF EMPLOYEES
90
FULL TIME
01
PART TIME
10,834
1,576
NUMBER OF MEMBERS PARTICIPATING IN SOCIAL MEDIA
954
NUMBER OF NEW SERVICE REQUESTS IN 2019
CREDIT CARD
6,482
ELECTRONIC CHECKING/SAVINGS
2,701
MEMBERS ENROLLED IN THE INLAND POWER COMMUNITY FOUNDATION
148,000
POTENTIAL REACH 5 INLAND’S RIPPLE EFFECT | 2019 ANNUAL REPORT
INLAND’S RIPPLE EFFECT | 2019 ANNUAL REPORT 6
AVER AGE RESIDENTIAL R ATES FOR 2019 PER kWh Inland Power’s 2019 rate per kWh is 8.37 cents.
As a cooperative, you maintain an ownership interest and stake in everything we do, and that includes our financial strength.
Net Utility Plant
Non-Utility Plant
Investments in Assoc. Orgs.
Cash and Cash Equivalents
1,684,000
200,000
Accounts & Notes Receivable
11,897,000
10,587,000
Materials & Supplies
4,935,000
3,480,000
BPA Prepayment
114,095,000
124,244,000
Other Prepayment
1,121,000
859,000
Other Assets
6,949,000 61,612,000
of your cooperative. Your cooperative
BPA Prepay Long Term Debt
110,405,000
120,858,000
Other Liabilities Deferred Gain & Credits
42,873
3,276,000
$ 304,793,000
$ 305,985,000
STATEMENTS OF REVENUES AND MARGINS Operating Revenue
2019 $ 79,615,000
2018 $ 74,719,000
13.04¢
9.54¢ 8.37¢
EXPENSES
Cost of Power
42,290,000
39,789,000
Operations & Maintenance
10,898,000
9,038,000
Consumer Accounts & Marketing
2,558,000
2,435,000
Administrative & General
6,069,000
6,769,000
Depreciation
7,359,000
7,100,000
Taxes
4,602,000
4,458,000
Interest
2,603,000
2,447,000
Total Cost of Electric Service $ 76,379,000 $ 72,036,000 OPERATING MARGINS
3,236,000
2,683,000
NET BENEFITS OF BPA PREPAY
1,648,000
1,763,000
NON-OPERATING MARGINS
43,589
41,086
39,872
40,352
39,502
8,131,000
3,970,000
strong financials, while making
Net Margins
ADMIN & OPERATIONS 26%
7,611,000
membership in 2019.
Out of 891 cooperatives in the country Inland Power ranks 14th for lowest rates.
105,159,000
be seen in our ability to maintain
$2.5 million in capital credits to the
INLAND POWER HAS SOME OF THE LOWEST RATES IN THE NATION
EQUITIES, MARGINS AND LIABILITIES
63,103,000
RESIDENTIAL 74%
2014
3,725,000 $ 305,985,000
Long Term Debt
cooperative was also able to return
TAXES, INTEREST & DEPREC. 19%
4,234,000 $ 304,793,000
net margins were $6.5 million. Your
POWER COSTS 55%
6,153,000
essential to the effective operation
long-term debt was $63 million and
2019
2,000
6,380,000
10,286,000
total assets were $191 million dollars,
Y T D E XP ENSES
$ 156,735,000
1,000
109,418,000
cost-effective electricity. In 2019,
NUMBER OF ME T ERS
$ 160,446,000
Accounts Payable
deliver you with safe, reliable and
COMMERCIAL 19%
2018
Equities & Margins
significant system improvements to
IRRIGATION 7%
2019
AS SE TS
is strong and that ripple effect can
Y T D REVENUE
Preserving financial strength is
AVERAGE CUSTOMER USAGE BASED ON 1,500 KWH’S/MONTH E IA DATA, NOVEMBER 2019
BALANCE SHEETS
1,612,000 $ 6,496,000
1,809,000 $ 6,255,000
EQUI T Y W/O BPA P REPAY 58%
2018
57% 56%
2017 2014
2019
2016
55% 54%
2015
INLAND AVG.
WASHINGTON AVG.
NATIONAL AVG.
53%
INLAND’S RIPPLE EFFECT | 2018 ANNUAL REPORT 8
A C C O MP L I S H ME N T S Technology is an amazing thing. As we look throughout the history of innovation, the ripple effect created by technology and the advancements we have made in the last
A L O O K A HE A D
century and a half have flowed into every part of our lives. Today, all it takes is the flip of a switch and the
• Inland Power formed a substation
lights come on. The click of a remote turns
maintenance and metering team. This team
on the TV. The use of electricity is extremely
focuses on the maintenance of Inland’s
easy, and it seems like second nature, which
55 substations. The team completed
is exactly what we strive for at Inland Power.
$580,000 in substation upgrades in
Without electricity there would be no smart
2019 alone.
phones, tablets or computers. We work hard
of FEMA project from Newman Lake
the river of technology that navigates our lives
to Greenbluff.
Inland crew and contractors completed nearly $11 million in capital system improvements.
service territory. This shift designates one
and prioritize maintenance needs for that
UNKNOWN / OT HER: 6.83% WIND: 14.49%
loads when fully operational. • Relocation for Spokane County’s Aero
It takes very little effort to cause a
our operations team has submitted a
ripple and one small change can have an
transmission interconnection request
enormous impact. We see this daily here
with Avista for up to 80 MW of new
at Inland and look forward to the lasting
load.
effect the investments we make today will
• Convert Inland’s GL-line in the Mt
have in strengthening our future. Below is
Spokane area from overhead to
a summary of some of the key projects we
underground line.
have planned in 2020.
• Overhead to underground conversion
• Continued efforts to prioritize
for Krell Hill to enhance reliability for
maintenance projects to reduce
the region’s emergency management
outages. It is our goal to provide
radio towers.
consistent and dependable member
• Single Phase overhead to underground
service along with great reliability.
conversions for Timberlane Road,
• Complete revamp of our warehousing operations for greater efficiency and cost savings.
Road for tie between West Plains 2nd
our Hayford, Four Lakes and Mica
feeder and Airway Heights substations. • Replacement of aging underground cable throughout Inland Power’s
upgrade at Hayford substation for
• Completed $844,000 line relocation to
added loads in the West Plains and
accommodate road expansion for Bigelow
back feed for Amazon.
Gulch Road from Argonne to Forker Road.
• Replacement of another 800 poles. first year of our second round of an
upgrade at the Four Lakes and Mica
replacement throughout Inland
system. This year marks the completion of the
+ Substation power transformer
• $1.4 million in underground cable
Bay.
• Planned upgrade of transformers for
+ Substation power transformer
projects on SR902 for WSDOT.
Temple Road, Bearz Lane and Sutton • Overhead reconductor on Lundstrom
substations.
Road roundabout and three roundabout
11-year pole test and treat program.
substations.
Power’s system.
• Design and begin construction of a
• Inland Power replaced $3.68 million in pole
new Craig Road Substation. Currently
replacements (approximately 800 poles)
lineman to own a specific territory and set of members. They restore outages
T REE: 10.34%
is estimated to be one of Inland’s largest
• Successfully implemented an Area Service Representative model throughout Inland’s
SNOW / ICE: 13.06%
fulfillment center. This commercial building
Inland is proud to have made in 2019. 2019 ACCOMPLISHMENTS
POWER SUP P L IER: 3.12%
extension to serve the new Amazon
reliable service and we are excited to continue summary below of the accomplishments
P L ANNED: 9.92%
• Completion of an underground line
cutouts and building several miles of overhead
into 2020 and beyond. We’ve provided a
MANMADE: 6.04%
loads in the West Plains.
enhancements, replacing poles, bells and
are committed to providing you with safe and
L IGH T NING: .49%
was completed to help bring on new large
These projects range from substation
and underground line. We at Inland Power
FIRE: .25%
• The new Hallett & White substation feeder
Our operations department was busy in 2019.
ANIMAL: 4.25% EQUIPMEN T: 31.21%
• Your crews completed the second half
to make sure you don’t have to think about in today’s world.
OU TAGES BY SOURCE*
throughout our service territory. • Crews replaced 807 cutouts and 370
territory. Inland now has 15 area service representatives working for you.
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aluminum bells to help improve and maintain reliability.
*Each color represents an outage source. Each box represents 1%.
INLAND’S RIPPLE EFFECT | 2019 ANNUAL REPORT 10
IN T HE C O MM U N I T Y W E HEL P O UR C O MMUNI T IE S SHINE BRI GH T
We love taking care of our communities and our members. Aside from providing electricity as an essential service, we strive to give back and support our communities in life’s struggles, opportunities and adventures. The Operation Round Up program was
Power has supported students pursuing
We are excited to see this program
founded upon the same principle that led
higher education, community events,
blossom as it grows in the future.
to the creation of electric cooperatives
schools, livestock exhibitors just to name a
over 75 years ago – people helping people.
few. In 2019, Inland donated approximately
students from Snowden Elementary
$70,000 back to the communities we
through weekend food needs, school
serve.
supplies and a tree of sharing during
We know that there is a great need throughout our service territory, and we wanted to be able to make a greater ripple effect, which is why the Inland Power Community Foundation was formed. The funds from Operation Round Up were incorporated into the new Inland Power Community Foundation to broaden our giving opportunities and increase the flow of giving into your community.
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• Inland employees sponsored over 80
the holidays. Employees donate from • More than $32,500 was donated to
their personal finances to help
the Spokane Neighborhood Action
these children.
Partners (SNAP) to help Inland members
• Inland awarded 19 - $1,000 scholarships
in SNAP’s energy assistance program.
to Inland Power’s members’ children
$10,000 of this contribution came from
and dependents to attend college or
our generous members who donated
trade school.
directly to the Project Share program. • The Inland Power Community
• Your cooperative provided $8,000 to 4-H and FFA members who showed and
We help our communities shine bright,
Foundation sponsored eight
sold livestock at fairs and shows around
which is why for more than 30 years, Inland
organizations in 2019 totaling $10,575.
eastern Washington. INLAND’S RIPPLE EFFECT | 2019 ANNUAL REPORT 12
10110 W HALLETT RD. SPOKANE, WA 99224
B O A RD O F T R U S T E E S DISTRICT 1 DANNY LEE SECRETARY
NINE MILE FALLS
DISTRICT 2 DICK ZIEHNERT TREASURER
ELK
DISTRICT 3 GARRY ROSMAN V. PRESIDENT
DAVENPORT
DISTRICT 4 DAVID SHILL
DISTRICT 6 JIM KROLL
SPOKANE
COLFAX
DISTRICT 5 GALE RETTKOWSKI
DISTRICT 7 BRIAN SLAYBAUGH PRESIDENT
WILBUR
POMEROY
AT-LARGE AT-LARGE POSITION A POSITION B KRISTINA BAHR RANDY SUESS
SPOKANE VALLEY
CHENEY