2020 INL AND POWER ANNUAL REPORT
R E S I L I E NC E
1 0 1 1 0 W H A L L E T T R D. S P O K A N E , WA 9 9 2 24
R E S I L I E NC E
the ability to withstand adversity and bounce back from difficult events
PRESIDENT & CEO LETTER
1
OU R M I SS I O N I S OU R M E M B E RS 3 I N L A N D BY T H E N U M B E RS
5
F I N A N C I A L S / R AT E S
7
2 02 0 ACCO M P L I S H M E N TS
9
RELIABILITY
12
PRESIDENT & CEO 2 0 2 0 WA S O N E T O R E M E M B E R – A N D N O T I N A G O O D W AY. T H I S P A S T Y E A R R O B B E D U S A L L O F O U R P L A N S , S A F E T Y, C O M F O R T A N D O U R LIVES AS WE KN EW TH E M . We’ve hurt, cried, wondered ‘why
home. Having reliable power is always
winds, which caused widespread outages.
us’ and ‘why now?’ Despite all of the
a priority for Inland Power, but it has
Some areas saw severe damage, including
overwhelming disappointment, your utility
never been as critical to the daily lives
over five hundred destroyed poles.
has persevered through insurmountable
of our members as during the COVID-19
Members in the Creston area had an initial
hardship and come out stronger and
pandemic.
forecast of being without power for two
more resilient.
Recent months have been a time for
weeks due to the damage. Inland crews rallied and were able to make a record
Resiliency is defined as the ability to
reflection. Despite the challenges, it is
withstand adversity and bounce back from
amazing to look back and see all that
difficult life events. To say that we, as a
Inland Power accomplished in 2020. We
society, have shown resiliency over the last
have been with you every step of the way
year is an understatement. Inland Power
through this difficult time. Aside from
As always, Inland’s commitment to
persevered through it all to ensure you
the impacts of COVID-19, Mother Nature
providing reliable power is at the forefront
continued to receive power during this
also proved to be a formidable opponent
of our focus. Ensuring our system remains
critical time with the world quarantining
in 2020. Our Labor Day BBQs were
resilient and dependable is of the utmost
while working and learning virtually from
interrupted by wildfires fueled by high
importance to Inland Power. Our long-
1 RESILIENCE | 2020 ANNUAL REPORT
number of repairs and pole replacements to restore power to the community in just six days.
LETTER term work plan includes critical updates
After setting aside the BPA Prepayment
past year to effectively respond to the
to substations and other infrastructure
transaction, total assets are $302 million
changing environment and accomplish all
to keep the lights on. In addition to our
dollars, long-term debt is $69 million and
the successes highlighted in this annual
annual work plan, our team processed a
net margins were $4.8 million in 2020.
report. We continue to believe that our
record number of new service requests,
Your cooperative was also able to return
products, services and the value they add
$2.46 million
to our members remain the fundamental
DESPITE THE CHALLENGES, IT
in capital
elements of our continued success to
I S A M A Z I N G TO LO O K BAC K &
credits to the
improve the quality of life for our valued
membership in
members.
S E E A L L T H AT I N L A N D P O W E R ACCO M P L I S H E D I N 2 0 2 0 .
2020. Throughout
On behalf of your Inland Power board of trustees and all the employees of Inland
managed our fleet inventory, redesigned
this report, you will see evidence of our
Power we thank you for your business, the
our warehouse, and accomplished many
dedication to serving and continually
opportunity to serve your needs and we
other achievements that are highlighted
creating value for our members. We
look forward to a successful, healing and
throughout this annual report.
would like to thank our employees for
happier year in 2021.
Inland’s overall financial health is excellent.
their resilience, dedication, perseverance and willingness to embrace change this CEO INLAND POWER & LIGHT
2020 PRESIDENT BOARD OF TRUSTEES
OU R M ISSION IS O U R M E M B E RS AT I N LAN D POWE R, OU R COM M U N ITY IS AT TH E H EART OF EVE RYTH I NG WE DO. WH E N WE SAY OU R M ISS ION IS OU R M E M B E RS, WE M EAN IT. EACH AN D EVE RY ON E OF YOU IS TH E REASON WE DO WHAT WE DO EVE RY S I NG LE DAY. IT M EAN S THAT WE HAVE YOUR BACK IN GOOD TIM ES AN D IN BAD TIM ES.
3 RESILIENCE | 2020 ANNUAL REPORT
At Inland Power, our community is at the heart of everything we do. When we say our mission is our members, we mean it. Each and every one of you is the reason we do what we do every single day. It means that we have your back in good times and in bad times.
struggling to pay their bill due to the
We want to see our communities shine
economic impacts of COVID-19 and the
bright, which is why, in addition to our
shutdown. Inland was one of the early
energy assistance programs, Inland
implementors of offering payment plans
Power supports students pursuing higher
and deferred payments. Additionally, we
education, community events, schools,
provided energy assistance through our
and livestock exhibitors just to name a
community foundation and our employee-
few. In 2020, the community foundation
supported Power from the Heart Fund.
donated approximately $52,000 back to
For years, Inland has worked closely with the Spokane Neighborhood Action
the communities we serve. • The Inland Power Community
Partners (SNAP) to offer energy assistance.
Foundation sponsored 24 organizations
This past year, Inland Power increased
in 2020 totaling $32,000.
We were all tested in 2020. The hardship
our SNAP donation to ensure more of our
we endured as a community was
members had access to much needed
unprecedented in recent history. However,
energy assistance. In 2020, over 600
we rallied together and our community
Inland Power members received more
showed its resilience. While we are not out
than $561,000 through SNAP’s energy
of the woods completely, we do see a light
assistance program. We are grateful for
FFA members who showed and sold
at the end of the COVID tunnel.
our partnership with SNAP and the impact
livestock at fairs and shows around
being made directly to our members in
eastern Washington, many held
need.
virtually in 2020.
Early on in the pandemic, Inland Power began working with members who were
• Inland awarded 15 - $1,000 scholarships to Inland Power’s members’ children and dependents to attend college. • Inland provided $5,150 to 4-H and
RESILIENCE | 2020 ANNUAL REPORT 4
I N L A N D BY T H E N U M B E RS 43,442
7,516
32,751
4.7
NUMBER OF METERS
NUMBER OF TRANSFORMERS
101,837 NUMBER OF POLES
5 RESILIENCE | 2020 ANNUAL REPORT
MILES OF LINE
MEMBER PER MILE OF LINE
90
18,753
2,279
2,803
TOTAL NUMBER OF EMPLOYEES
NUMBER OF MEMBERS PARTICIPATING IN SOCIAL MEDIA
MEMBERS ENROLLED IN SMARTHUB
MEMBERS ENROLLED IN THE INLAND POWER COMMUNITY FOUNDATION
RESILIENCE | 2020 ANNUAL REPORT 6
2020 YTD FINANCIAL STATEMENTS
maintain an ownership interest and
AVERAGE RESIDENTIAL RATES FOR 2020 PER kWh
stake in everything we do, and that
INLAND POWER’S 2020 RATE PER KWH IS 8.37 CENTS
As a cooperative, our members
includes our financial strength. Your cooperative has been resilient in 2020. After setting aside the BPA Prepayment transaction, total assets are $302 million dollars, long-term debt is $69 million and net margins were $4.8 million in 2020. Your cooperative was also able to return $2.46 million in capital credits to the membership in 2020.
AVERAGE CUSTOMER USAGE BASED ON 1,500 KWH’S/MONTH E IA DATA, DECEMBER 2020
2015 2016 2017 2018 2019 2020
7 RESILIENCE | 2020 ANNUAL REPORT
RESIDENTIAL 74% TAXES, DEPRECIATION & INTEREST 19%
56.4
POWER COSTS 53%
57.4
ADMIN & OPERATIONS 28%
57.9
IRRIGATION 7%
EQUITY W/O BPA PREPAY 57.1
43.8
42.8
COMMERCIAL 19%
41.1
40.4
39.9
42.9
(IN THOUSANDS)
YTD EXPENSES
55.7
YTD REVENUE
54.8
NUMBER OF METERS
2015 2016 2017 2018 2019 2020
BALANCE SHEETS
2020
2019
$ 165,581,000 Net Utility Plant
$ 160,446,000
1,000 Non-Utility Plant
1,000
6,553,000 Investments in Assoc. Orgs.
6,380,000
16,000 Cash and Cash Equivalents
1,684,000
13,248,000 Accounts & Notes Receivable
11,897,000
7,675,000 Materials & Supplies
4,935,000
103,473,000 BPA Prepayment
114,095,000
1,333,000 Other Prepayment
1,121,000
4,314,00 Other Assets
4,233,000
$ 302,194,000
$ 304,792,000
AS SE TS
EQUITIES, MARGINS AND LIABILITIES
112,055,000 Equities & Margins
109,418,000
9,550,000 Accounts Payable
10,286,000
68,669,000 Long Term Debt
63,103,000
99,550,000 BPA Prepay Long Term Debt
110,405,000
8,534,000 Other Liabilities
7,610,000
3,836,000
3,970,000
$ 302,194,000
$ 304,792,000
Deferred Gain & Credits
INLAND POWER HAS SOME OF THE LOWEST RATES IN THE NATION Out of 891 cooperatives in the country Inland Power ranks 14th for lowest rates.
13.04¢
9.77¢ 8.37¢
STATEMENTS OF REVENUES & MARGINS Operating Revenue
2020 $ 80,885,000
2019 $ 79,615,000
EXPENSES
Cost of Power
41,882,000`
42,290,000
Operations & Maintenance
12,935,000
10,900,000
Consumer Accounts & Marketing
2,641,000
2,558,000
Administrative & General 6,119,000
6,009,000
Depreciation 7,336,000
7,359,000
Taxes 4,850,000
4,602,000
Interest 2,700,000
2,592,000
Total Cost of Electric Service $ 76,310,000 $ 78,463,000 OPERATING MARGINS NET BENEFITS OF BPA PREPAY NON-OPERATING MARGINS Net Margins
2,422,000
3,305,000
1,513,000
1,636,000
875,000
1,555,000
$ 4,810,000
$ 6,496,000
INLAND AVG.
WASHINGTON AVG.
NATIONAL AVG.
INLAND’S RIPPLE EFFECT || 2020 2018 ANNUAL REPORT 8 RESLIENCE
ACCOM PLISH M E NTS DESPITE THE MANY CHALLENGES 2020 H A S T H R O W N O U R W AY, W O R K P R O D U C T I O N WA S N E A R A N A L L -T I M E H I G H .
9 RESILIENCE | 2020 ANNUAL REPORT
These projects range from substation enhancements, replacing poles, bells, cutouts and upgrading several miles of overhead and underground line.
We at Inland Power are committed to
• Overhead line reconductor in Airway
providing members with safe and reliable
Heights along Lundstrom Ave. to
service and we are excited to continue
position assets for load growth.
our system improvements.
• Conversion of overhead lines to
In 2020 Inland’s operations and
underground serving the Mt. Spokane
engineering departments focused on the
area for reliability.
following large projects: • Upgrade of the Hayford substationThe substation upgrade was completed in July and is successfully carrying load. The upgrade added approximately 6 MW’s of additional capacity in the vicinity of I-90. • Upgrade of the Four Lakes substation-The substation upgrade
• Conversion of overhead lines to underground in the northern Newman Lake region for reliability. • Conversion of single-phase lines to 3-phase lines along South Bank Rd. on the southern shoreline of Long Lake. • Completed the first cycle of our 10year pole management program.
was completed in November and is successfully carrying load. The transformer upgrade added
NEW SERVICE REQUESTS
approximately 12 MW’s of additional
Despite the many challenges 2020
capacity in the Four Lakes area for
has thrown our way, work production
future growth and better transfer
was near an all-time high. New service
capacity between other nearby
requests hit a record in 2020 and our
substations.
new service and design team handled
• Line improvements to the Wagner Lake / North Creston transmission tie line to improve regional reliability.
all the requests with record speed and efficiency, often while working from home. Members were able to schedule appointments with our field engineers
RESLIENCE | 2020 ANNUAL REPORT 10
Accomplishments Cont. and our crews for new construction to keep the process moving smoothly. This was an incredible feat. New Service Requests: • 2017 = 445 • 2018 = 541 • 2019 = 954 • 2020 = 1,082
WAREHOUSE Much like our fleet, it is imperative that our warehouse is efficiently designed so crews can quickly access materials needed for outages and other projects.
2. A 120-foot covered parking building was added to protect our stringing equipment, trailered equipment and mobile substations. 3. Six tiers of vertical storage for
This also includes warehouse systems
transformers were added as a space
and protocols to ensure proper inventory
saver and to make transformer
management.
distribution more efficient.
In early 2019 we identified several issues
4. A material staging building was also
within our warehousing/inventory
added to facilitate job picking and
management operations that were
staging for crews, manage returns
seriously affecting the overall efficiency
and processing. Materials are now
of our crew’s work. Most dramatic and
prepped by our warehouseman for
Inland Power’s fleet is another aspect of
costly were the inventory management
the next day’s jobs and staged in a
Inland’s budget that adds up quickly. Our
functions, i.e., having materials available
bay for each crew. This has provided
fleet must be safe, reliable and must be
for our crews when and where needed.
incredible efficiencies as crews can
INLAND FLEET
able to endure driving in tough, off-road conditions. In 2020 we invested approximately $1.5 million in bucket trucks, digger derricks, excavators and UTV’s. Each year we are very diligent in assessing our needs, getting the best value, and getting the right equipment for the job. It is very important as well, that we replace equipment at the end of the equipment’s useful life to avoid the breakdowns that impact our employee’s ability to effectively serve you, our members.
The following major roadblocks to improvement were identified: 1. Not enough yard space to organize materials effectively 2. Lack of a fluid distribution process 3. Inadequate inventory controls 4. Material procurement instability The following solutions were put into place in 2020 to help our warehouse efficiencies. 1. Inland’s storage yard was expanded to the north of the existing yard, adding nearly 200,000 sq ft. of space and allowing for much better material organization and distribution efficiency.
11 RESILIENCE | 2020 ANNUAL REPORT
load up the materials for their job in one quick location and head out immediately for their scheduled work for the day. 5. The main warehouse was converted to a locked warehouse. This enhancement has proven to be extremely helpful in terms of implementing additional inventory controls to ensure better management of smaller inventory materials. All of these changes have made a significant impact on the flow of daily operations and increased efficiency and management of our crew’s valuable time and enable us to serve you better and more effectively.
2020 Ou tag e s by Cau s e
RE LIABI LITY
Animal: 2.3% Equ i pm e n t : 1 5 . 7 % Fire: 0.3% L ig h t n i ng : 0 . 2 %
M i s s ion
Manmade: 3.0% Pla n n e d : 1 3 . 8 % Powe r S u ppl i e r : 2 0 . 4 % S n ow / I c e : 4 . 3 % Tree: 16.4% U n k n own : 7 . 0 % Wi n d : 1 6 . 6 %
Our Mission Is Our Members
Vi s ion Be a premier member-owned energy cooperative committed to safe, reliable service at competitive rates with great member engagement and experiences.
RESILIENCE | 2020 ANNUAL REPORT 12
10110 W HALLETT RD. SPOKANE, WA 99224
2021 B O A RD O F T R U S T E E S RANDY SUESS PRESIDENT CHENEY, WA
GARRY ROSMAN VICE PRESIDENT DAVENPORT, WA
KRISTINA BAHR JIM KROLL TREASURER SECRETARY SPOKANE COLFAX, WA VALLEY, WA
CHRIS DAVIS TRUSTEE COLBERT, WA
GALE RETTKOWSKI TRUSTEE WILBUR, WA
BRIAN SLAYBAUGH TRUSTEE POMEROY, WA
