2020 Annual Report

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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

PRESIDENT & CEO LETTER OU R M I SS I O N I S OU R M E M B E RS

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I N L A N D BY T H E N U M B E RS

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F I N A N C I A L S / R AT E S

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2 02 0 ACCO M P L I S H M E N TS

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RELIABILITY

R E S I L I E NC E

the ability to withstand adversity and bounce back from difficult events

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PRESIDENT & CEO

LETTER

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

term work plan includes critical updates

After setting aside the BPA Prepayment

past year to effectively respond to the

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

to substations and other infrastructure

transaction, total assets are $198 million

changing environment and accomplish all

to keep the lights on. In addition to our

dollars, long-term debt is $68 million

the successes highlighted in this annual

annual work plan, our team processed a

and net margins were $4.59 million in

report. We continue to believe that our

record number of new service requests,

2020. Your cooperative was also able to

products, services and the value they add

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 .

return $2.46

to our members remain the fundamental

DESPITE THE CHALLENGES, IT

million in capital

elements of our continued success to

credits to the

improve the quality of life for our valued

membership in

members.

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

I S A M A Z I N G TO LO O K BAC K &

overwhelming disappointment, your utility

never been as critical to the daily lives

over five hundred destroyed poles.

S E E A L L T H AT I N L A N D P O W E R

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

ACCO M P L I S H E D I N 2 0 2 0 .

more resilient.

Recent months have been a time for

Throughout

On behalf of your Inland Power board of trustees and all the employees of Inland

weeks due to the damage. Inland crews

managed our fleet inventory, redesigned

this report, you will see evidence of our

Power we thank you for your business, the

rallied and were able to make a record

our warehouse, and accomplished many

dedication to serving and continually

opportunity to serve your needs and we

number of repairs and pole replacements

other achievements that are highlighted

creating value for our members. We

look forward to a successful, healing and

to restore power to the community in just

throughout this annual report.

would like to thank our employees for

happier year in 2021.

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 RESILIANCE | 2020 ANNUAL REPORT

2020.

six days.

Inland’s overall financial health is excellent.

their resilience, dedication, perseverance and willingness to embrace change this CEO INLAND POWER & LIGHT

PRESIDENT BOARD OF TRUSTEES


OU R M ISSION IS O U R M E M E B E RS

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

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.

day. It means that we have your back in good times and in bad times.

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

3 RESILIENCE | 2020 ANNUAL REPORT

struggling to pay their bill due to the

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

MILES 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

MEMBER PER MILE OF LINE

101,837 NUMBER OF POLES

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2020 YTD FINANCIAL STATEMENTS

BALANCE SHEETS AS SE TS

As a cooperative, our members maintain an ownership interest and stake in everything we do, and that

AVERAGE RESIDENTIAL RATES FOR 2020 PER kWh INLAND POWER’S 2020 RATE PER KWH IS 8.37 CENTS

includes our financial strength. Your

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

2020. After setting aside the BPA

$ 302,194,000

$ 304,792,000

Prepayment transaction, total assets

EQUITIES, MARGINS AND LIABILITIES

cooperative has been resilient in

are $198 million dollars, long-term debt is $68 million and net margins were $4.59 million in 2020. Your

Operating Revenue

2015 2016 2017 2018 2019 2020

RESIDENTIAL 74% TAXES, DEPRECIATION & INTEREST 19%

Cost of Power

41,882,000`

42,290,000

Operations & Maintenance

12,935,000

10,900,000

2,641,000

9.77¢ 8.37¢

57.4

2015 2016 2017 2018 2019 2020

2,558,000 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. 7 RESILIENCE | 2020 ANNUAL REPORT

$ 304,792,000

2019 $ 79,615,000

Administrative & General 6,119,000

56.3

POWER COSTS 53%

57.9

ADMIN & OPERATIONS 19%

57.1

IRRIGATION 7%

YTD EXPENSES

41.1

COMMERCIAL 19%

7,611,000 3,970,000

2020 $ 80,885,000

Consumer Accounts & Marketing

EQUITY W/O BPA PREPAY

55.7

YTD REVENUE

(IN THOUSANDS)

3,836,000

13.04¢

EXPENSES

54.8

NUMBER OF METERS 43.8

110,400,000

Out of 891 cooperatives in the country Inland Power ranks 14th for lowest rates.

STATEMENTS OF REVENUES & MARGINS

AVERAGE CUSTOMER USAGE BASED ON 1,500 KWH’S/MONTH E IA DATA, DECEMBER 2020

42.8

63,103,000

99,550,000 BPA Prepay Long Term Debt

$ 301,981,000

membership in 2020.

42.9

10,286,000

68,669,000 Long Term Debt

Deferred Gain & Credits

$2.46 million in capital credits to the

40.4

109,418,000

9,550,000 Accounts Payable

8,534,000 Other Liabilities

cooperative was also able to return

39.9

112,005,000 Equities & Margins

INLAND POWER HAS SOME OF THE LOWEST RATES IN THE NATION

WASHINGTON AVG.

NATIONAL AVG.

INLAND’S RIPPLE EFFECT || 2020 2018 ANNUAL REPORT 8 RESLIENCE


These projects range from substation enhancements, replacing poles, bells and cutouts and upgrading several miles of overhead and underground line.

ACCOM PLISH M E NTS

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 operation and

underground serving Mt. Spokane area

engineering departments focused on

for reliability.

these large projects: •

Upgrade of the Hayford substation-

underground in the northern Newman

The substation upgrade was

Lake region for reliability.

completed in July and is successfully carrying load. The upgrade added

southern shoreline of Long Lake.

capacity in the vicinity of I-90. Upgrade of the Four Lakes substation-The substation upgrade

Conversion of single-phase lines to 3-phase along South Bank Rd. on the

approximately 6 MW of additional

Conversion of overhead lines to

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 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 Subtransmission 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

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 .

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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. This also includes warehouse systems

2. A 120-foot covered parking building was added to protect our very expensive stringing equipment, trailered equipment and mobile substations. 3. Six tiers of vertical storage for

and protocols to ensure proper inventory

transformers were added as a space

management.

saver and to make transformer

In early 2019 we identified several issues within our warehousing/inventory

distribution more efficient. 4. A material staging building was also

management operations that were

added to facilitate job picking and

seriously affecting the overall efficiency

staging for crews, manage returns

of our crew’s work. Most dramatic and

and processing. Materials are now

Inland Power’s fleet is another aspect of

costly were the inventory management

prepped by our warehouseman for

Inland’s budget that adds up quickly. Our

functions, i.e., having materials available

the next day’s jobs and staged in a

fleet must be safe, reliable and must be

for our crews when and where needed.

bay for each crew. This has provided

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.

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incredible efficiencies as crews can load up the materials for their job in one quick location and head out

2020 Ou tag e s by Cau s e

RE LIABI LITY

Animal: 2.3% Equ i p m e n t : 1 5 . 7 % Fire: 0.3% L i g h t n i ng : 0 . 2 %

M i s s ion

M a n m a de : 3 . 0 % Pla n n e d : 1 3 . 8 % Pow e r S u ppl i e r : 2 0 . 4 % S now / I c e : 4 . 3 % Tree: 16.4% U n k now n : 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.

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.

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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


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