STAYING THE COURSE
#PowerOn. That has been the drumbeat of electric membership cooperatives across the county since the pandemic first started back in 2020. While it is safe to say that none of us expected to still be talking about COVID and its effect on operations, two and half years later its impact has been felt just as significantly over this past year with both challenges and opportunities. The fiscal year started positively enough with COVID cases at their lowest levels since the start of the pandemic. It appeared we could resume a much more normal system maintenance and construction schedule. That is until a new challenge presented itself —supply chain shortages. Key inventory items were suddenly in short supply due to manufacturing issues tied to labor shortages, and delivery lead times that used to be days have gone from weeks to months, and in some cases, years. Electric utilities across the county were all competing for the same inventory, forcing suppliers to ration products so all of us could get something. The result has been a trio of hurdles to overcome: lack of inventory, longer lead times to restock inventory and significantly higher prices.
Naturally, the realization of supply chain shortages led us to verify the critical inventory we already had and set aside a stockpile. Doing so would enable us to serve existing OREMC members through regular maintenance, in-process construction projects and storm response. From there we had to determine what we had available to address new construction requests. Thankfully, we have been able to both maintain and grow our distribution system throughout these shortages. Growth of our system and the number of consumer-members served has been another outcome of COVID. The housing boom across the OREMC service area this past year has been significant, particularly in Camden, Glynn and Nassau counties, due to the rise remote work and people looking to relocate to warmer environs. Developers have been capitalizing on the housing demand with the construction of new subdivisions. While nationally reports are the housing market has started to cool, OREMC still has high demand for new services.
Combined with growth on the commercial/industrial side, as new businesses have chosen to work with us for their power supply needs, OREMC has worked diligently over the past year to respond to these increasing power supply needs. Notable projects include the complete rebuild and expansion of the Nahunta substation; upgrades from single phase to three phase line along HWY 82 in Georgia and Route 1 in Florida; a 10-mile, 115 kV transmission tie line from Hoboken to Nahunta; and beginning construction on two new substations, one in Kingsland and one in Callahan.
Despite the positives, we rounded out the fiscal year with another challenge: increased power generation costs. As you know from filling your gas tank at the pump, the cost of fuel has increased. So too has the cost of natural gas—it has nearly tripled over the past year—driving up power generation costs. We had hoped prices would level off and we could absorb the cost increases. Instead, natural gas prices continued to climb forcing us to make a power cost adjustment and raising the cost per kWh by $.00781.
The bottom line is that OREMC is continuing to do what we’ve always done—serve and respond to the energy needs of our consumer-members. Keeping the lights on is our mission. As our world has changed over the past couple of years, we understand we are on the front lines of critical infrastructure. All of us a OREMC take our jobs to heart—by the community, for the community—as we work to power your life every day.
John Middleton GENERAL MANAGER
Robert W. Combs PRESIDENT
2021 YEAR IN REVIEW
» System Resiliency, Redundancy and Readiness
Two new substations are under construction and expected to be energized this fall. The new Kinlaw Substation in Kingsland is a 115 kV substation that will be dedicated to serve Plug Power’s green hydrogen production plant with up to 90 megawatts of power initially. Simultaneously, the 230 kV Kent Substation—a joint venture with FPL at the Crawford Diamond Industrial Park in Callahan—is expected to be energized in mid-September on two of its six circuits. This substation is to support growth and increase capacity in West Nassau County, as well as create system redundancies in serving the areas around St. George and Macedonia.
» Youth Tour Returns to D.C.
» Changing Faces
Over the past year we have bid farewell to three long-time employees: Esther Woods, Linda Vaughn and Pam Curtis. Combined they had 79 years of service to OREMC and its consumer-members. While we were saddened to say goodbye to these familiar faces, we have also welcomed several new employees to our OREMC family. Trevor Hendrix, GIS/IT Technician; Kari Johns, Destiny Pooser, and Connor Selph, Member Service Representatives; and Linemen DJ Clark. Josh Grantham, Cole Langshaw, Jesus Villanueva and Alex Wilson. These new hires are in response to growing needs to best serve our consumer-members, as well as to fill positions left vacant by employees seeking other opportunities within the co-op.
For the first time since 2019, the National Washington Youth Tour Leadership Experience returned to Washington, D.C., bringing together 1,000 delegates representing electric membership cooperatives from across the county. Among them were OREMC Delegates Emma Dyal, Julianna Pittman and Joash Wolitz. They enjoyed a week-long, all expenses paid trip to our nation’s capital immersed in monuments, memorials, museums and mentoring. The experience helps foster leadership by uniting young people on common ground and learning about the past, in the present, to build a brighter tomorrow.
» Get Plugged In
» Chipping Away at Cancer
Expanding our channels of communication with the goal of connecting OREMC consumer-members with more in-depth content about OREMC operations, initiatives and community involvement, led to the launch of the new podcast. Listen in from our website or on popular podcast platforms Amazon, Apple, Google and Spotify. Topics vary from month-to-month but aim to address key issues, and a chance to hear from the people behind the power. Learn the steps being taken to ensure OREMC continues to deliver reliable, safe and affordable power while operating with the utmost concern and support of the communities it serves.
For 30 years the Annual OREMC Golf Tournament has been raising money and awareness for the Southeast Cancer Unit, Inc., to assist them in supporting cancer patients undergoing cancer treatment. Given several OREMC employees have family who—or they themselves—have received assistance, it is an event close to the hearts of many that has been growing in scope and impact the past few years. The 2021 tournament, presented by Oglethorpe Power/Georgia Transmission/Georgia System Operations, was no exception, raising over $22,600—more than double the previous year— thanks to the generosity and support of volunteers, players, donors and sponsors.
OREMC AT A GLANCE 2021
Providing you affordable, reliable and sustainable energy is our primary mission, but we think of OREMC as more than just your energy provider. We are a local partner who leverages our resources to support our communities, promote education and power economic development that fosters prosperity for the people—by the community, for the community.
Days without a lost time accident
CONNECTING COMMUNITY
It was April 2021 when nine Okefenoke REMC members were first appointed by the OREMC Board of Directors to serve on the newly formed Okefenoke REMC Foundation Board of Trustees. They were briefed on their stewardship in reviewing and awarding grants to community organizations operating within the OREMC service area. They expected they would be making an impact in helping to meet community education, development, health and safety needs. What they didn’t expect was the impact the people behind the organizations they supported would have on them.
“I have been so impressed with the passion and compassion of the people doing the work at these organizations—some of which I wasn’t aware of—working to address community needs I didn’t know existed to the extent they do,” noted Brantley County Trustee Ruby Anne Sawyer, president of the OREMC Foundation.
It is a sentiment shared by her fellow trustees. Glynn County Trustee Shallen Crum, treasurer, and Nassau County Trustee Ramona Jones, vice president, both stated, “It has been eye-opening to learn what is needed in our respective counties, but to also see what is being done and the impact the grants can have in making a difference.”
Since awarding their first grants in November 2021, the OREMC Foundation Trustees have approved $171,000 given to 48 organizations as of June 30.
The Foundation was established as a community development initiative to support qualified organizations in the six Georgia and two Florida counties the co-op serves. Currently OREMC unclaimed capital credits are the primary funding source. As Wayne County Trustee Rissa Self pointed out, many of the organizations that apply are smaller, local, issue-focused organizations versus state or national based organizations. However, all applicants must demonstrate the monies requested and the people served by their programs reside in OREMC’s service area.
“Education has been a cornerstone of the grant awards,” stated OREMC Communications/Marketing Coordinator and Foundation Liaison Michele Hutchins, “promoting early readers, arts in education, supporting at-risk youth, advancing higher education scholarship opportunities and historical preservation. Additionally, there have been numerous health and safety needs addressed including: food security, clothing and shelter, public safety, foster care support, disaster recovery, senior and long-term care.”
Camden County Trustee Sonya Walker, secretary, summed up her experience by stating, “I initially thought our involvement would be strictly business, but it is more relationship building. When we award a grant, it is so enlightening to sit down and learn more about how an organization got started and to see the drive and commitment of the people behind the cause.”
For a list of grant recepients or more information about the OREMC Foundation please visit oremc.com/foundation. You can also email questions to foundation@oremc.com or call 800-262-5131 ext. 1103.
FINANCIAL REPORT
Financial Statements for the fiscal year ending June 30, 2022, reflect the sound status of Okefenoke Rural Electric Membership Corporation.
Each year we retain the services of independent Certified Public Accountants, to perform an audit of the corporation’s accounting records. This year’s audit, conducted by McNair, McLemore, Middlebrooks and Co, LLP included an examination
Utility Plant
Electric Plant in Service - At Cost
Construction Work in Progress
Accumulated Provision for Depreciation
Other Property and Investments
Investments in Associated Organizations
Note Receivable
Restricted Funds
Other Investments
Current Assets
Cash and Cash Equivalents
Restricted Cash
Note Receivable - Current Portion
Accounts Receivable (Net of Accumulated Provision for Uncollectible Accounts of $834,570 in 2022 and $1,102,574 in 2021)
Accrued Utility Revenue Materials and Supplies
Other
Deferred Debits
of the Cooperative’s balance sheet, statement of revenue, expenses, and remarks concerning each. Copies of the complete audit are on file at the Cooperative’s Headquarters Office in Nahunta, Georgia, for your review.
The figures presented in this report represent our summary of the year’s operation
Cristi B. Koncz | SECRETARY/TREASURER
Total Assets 219,109,682 209,830,456 2,113,371 2,536,433 221,223,053 212,366,889 (74,050,572) (71,945,708) 147,172,481 140,421,181 25,268,981 24,159,328 322,022 436,308 1,212,453 1,335,749 34,403,456 25,931,385 6,176,201 4,537,354
Members' Equity
Memberships
Patronage Capital
Other Equities
Long-Term Liabilities
Long-Term Debt
Other Liabilities
Current Liabilities
Long-Term Debt - Current Portion
Line-of-Credit
Accounts Payable
Consumer Deposits
Accrued and Withheld Taxes
Other
Deferred Credits
Total Members' Equity and Liabilities
1,866,400 1,590,823 3,442,436 3,164,264 3,480,566 2,276,694 610,474 583,353 16,094,055 12,556,182 1,054,718 $198,282,774 $179,963,466 7,600,000 0 59,207,458 4,625,312 64,161,153 106,576,214 1,212,453 107,788,667 4,081,871 2,628,155 5,994,902 1,541,521 1,430,328 2,914,877 18,591,654 7,741,300 $198,282,774 328,383 274,508 612,782 60,099,118 4,255,475 64,629,101 80,877,319 1,335,749 82,213,068 3,671,690 12,893,495 4,904,292 1,504,483 1,295,775 2,623,100 26,892,835 6,228,462 $179,963,466 $ $
Operating Revenue and Patronage Capital
Operating Expenses
Cost of Power
Distribution Operations
Distribution Maintenance
Consumer Accounts
Consumer Assistance and Information
Administrative and General
Depreciation
Other
Operating Margins Before Interest Expense
Interest Expense
Operating Margins After Interest Expense
Nonoperating Margins
Generation and Transmission Cooperative Capital Credits
Other Capital Credits and Patronage Capital Allocations
Cash Flows from Operating Activities
Net Margins
Adjustments to Reconcile Net Margins to Net Cash
Provided by Operating Activities, Depreciation and Amortization
Revenue Deferred Under ASC 980
Patronage Capital from Associated Organizations Forgiveness of Debt
Change In
Accounts Receivable
Other Current Assets
Deferred Debits
Accounts Payable
Consumer Deposits
Accrued and Withheld Taxes
Other Current Liabilities
Deferred Credits
Cash Flows from Investing Activities
Extension and Replacement of Plant Return of Equity from Associated Organizations
Materials and Supplies
Note Receivable - Rural Development
Other Investments
Cash Flows from Financing Activities
Line-of-Credit Memberships
Advances on Long-Term Debt
Principal Repayments of Long-Term Debt
Retirement of Patronage Capital
Capital Term Certificates
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending
Net Margins $ $ $74,782,318 49,337,149 4,289,758 5,469,347 1,873,627 397,882 4,352,596 6,098,719 13,724 71,832,802 2,949,516 3,624,964 (675,448) 289,802 898,848 481,460 $994,662 $74,199,516 45,700,320 4,481,221 4,863,537 2,242,074 427,254 3,961,963 5,906,800 12,229 67,595,398 6,604,118 3,393,627 3,210,491 1,996,070 894,729 401,952 $6,503,242 6,503,242 6,848,262 0 (1,296,681) (1,950,405) 773,456 (23,612) 433,296 (1,690,687) (271,323) 18,654 56,220 3,615,039 13,015,461 (12,241,700) 212,009 (217,458) (188,686) 0 (12,435,835) 6,926,079 65,101 0 (3,660,147) (1,417,713) 64,380 1,977,700 2,557,326 2,273,010 $4,830,336 994,662 7,099,931 2,000,000 (1,380,308) 0 (553,749) (27,121) 106,038 1,090,610 37,038 134,553 291,777 (487,162) 9,306,269 (13,515,333) 245,127 (1,203,872) 114,286 (7,600,000) (21,959,792) (10,265,340) 53,875 30,000,000 (3,890,924) (1,516,485) 25,528 14,406,654 1,753,131 4,830,336 $6,583,467