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
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struggling to pay their bill due to the
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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
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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
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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.
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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: •
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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
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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
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Conversion of overhead lines to
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Completed the first cycle of our 10year pole management program.
was completed in November and is successfully carrying load. The transformer upgrade added
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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
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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
