2021 OREMC Annual Report

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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So, my friends, it can be said that a little cottage at Warm Springs, Georgia, was the birthplace of the Rural Electrification Administration...

Franklin D. Roosevelt

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ANNUAL REPORT 2021 OKEFENOKE RURAL ELECTRIC MEMBERSHIP CORPORATION

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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PREVA ILIN G O N A ST RON G FOU NDATIO N

The COVID storm rages on. This time last year we were navigating our response to what we dubbed “a storm of a different kind,” working to be nimble in the face of ever-changing guidelines, prioritizing employee health and safety and powering on as essential workers responsible for maintaining critical infrastructure. Today the pandemic is still very much present.

Despite the COVID cloud that continues to linger, OREMC has maintained continuity of service and celebrated some notable moments in 2020/2021 we are sharing in this annual report. » A foundation of service: OREMC employees—your family, friends and neighbors—have remained committed to C

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keeping the lights on for our consumer-members and have adapted to continually changing operational protocols.

OREMC cannot power your life every day without them.

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» A foundation of learning: From scholarships and youth leadership programs, to supporting S.T.E.M. education and

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early reading programs, OREMC is committed to promoting educational opportunities that enhance the knowledge

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capital of our future workforce.

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» A foundation of care: Whether it is teeing up in fundraising and fellowship to benefit local cancer patients or responding to the call from sister co-ops when wind/rain/snow/ice has devastated their systems, OREMC steps up and steps in to lend a helping hand. » A foundation of growth: OREMC’s vitality relies on our ability to provide safe, reliable and affordable delivery of electricity that powers our connections to the internet of things. Our investment in smart grid technologies, system capabilities and capacity promotes greater reliability and works to minimize power disruptions so they impact the fewest number of consumer-members, for the shortest amount of time. Vitality also comes from load growth. While OREMC operations are largely based on residential load, new commercial loads are not only an investment in the cooperative, but the communities we serve—such as our partnership with Plug Power in Camden County. » A foundation of community: By the community, for the community is the heart of our mission at OREMC. We were built by, and continue to serve, the very families that helped establish the cooperative 82 years ago. Supporting education and community development are among our founding principles, and with the establishment of the OREMC Foundation, we plan to take that support to the next level, with an innovative community development initiative.

All of us at OREMC embrace our role as first responders to critical infrastructure. We understand that a safe, reliable, and affordable electric distribution system is the backbone of our developing economies. We recognize that investing in the future, meeting community needs and fostering growth ensures a brighter tomorrow for all. Our consumer-members are our mission, and OREMC will remain steadfast in the face of the storm.

John Middleton

G ENERA L MA NAGER

1 | Okefenoke Rural Electric Corporation • ANNUAL REPORT 2021

Robert W. Combs PR ESID ENT

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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S E RVICE IN ACTIO N After postponing our annual golf tournament from May to September last year, OREMC made a record-setting $11,000 donation to the Southeast Cancer Unit, Inc., and celebrated a sold-out event. As the annual beneficiary of the tournament, the Southeast Cancer Unit is a volunteer organization helping local cancer patients with medical costs. Special thanks goes to Links Sponsor Oglethorpe Power/Georgia Transmission/Georgia System Operations, Ball Sponsor Southeastern Bank and Cart Sponsors Asplundh and Pike.

Thankfully, Southeast Georgia and Northeast Florida were not impacted by the 2020 hurricane season. Several of our sister co-ops, however, were not so fortunate. OREMC sent crews to help restore power in Louisiana, Alabama and Northwest Georgia in the wake of Hurricanes Laura and Sally. Then in February, we had crews travel to Kentucky to assist Grayson Rural Electric. They had 80% of their members without power following Winter Storm Uri that covered them in ice and resulted in unprecedented destruction of their system infrastructure. This is what our founding principle of cooperatives helping cooperatives is all about.

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Typically, OREMC sponsors four students to participate in the National Washington Youth Tour Leadership Experience, a week-long, all-expenses paid trip to Washington, D.C. COVID cancelled that trip for the second year in a row. Instead, OREMC created its own youth tour and took five students on a Georgia cultural heritage and history tour from the top of Stone Mountain to the bottom of Providence Canyon.

Among the trip highlights was a visit to the Little White House in Warm Springs, the birthplace of electric cooperatives and the Rural Electrification Administration.

In May, OREMC introduced a new cash option for paying your electric bill—Pay Where You Shop—using a network of authorized payment locations, including CVS, Dollar General, Family Dollar and Walgreens.

Using a barcode found on your billing statement or downloaded through the OREMC website, present to the cashier, pay the desired amount and payment is credited immediately to the OREMC member account. Visit oremc.sedccheckout.com to find locations and download barcode.

Plug Power signed a Purchase Power Agreement with OREMC in July to provide the renewable energy needed to power a hydrogen production plant they are building in Camden County, which will make them OREMC’s largest consumer-member with a 47.5 MW load when the plant is fully built out. Partnering with Plug Power as their energy provider of choice is a significant investment in, and benefit to the OREMC membership collectively, but also the communities we serve by helping to fuel economic development.

ANNUAL REPORT 2021 • Okefenoke Rural Electric Corporation | 2

OREMC - Annual Report - 2021 (Revised) 090621.pdf

SOLAR ENTS

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Interested in solar energy but not sure where to start?

Our energy advisors at OREMC can help you navigate the option that makes the most solar sense for you. Here are some things to consider:

Do you own your home?

If you are a renter or have an HOA that does not permit rooftop/solar, OREMC Cooperative Solar is an option.

How much sun is in my area?

Homes with a south-facing exposure and minimal shading offer the best solar potential.

What condition is your roof in?

Is your roof new or less than five years old?

If not, a roof replacement may be in order BEFORE a rooftop solar installation.

How much solar do I need?

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The average home system produces between 4-10 kilowatts per day. Your OREMC energy advisor can help you determine the optimal system size for you.

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How much does solar cost?

The average home system costs between $3,000 and $5,000 per kilowatt, or upwards of $50,000.

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What are your goals for solar?

Know why you are considering “going solar.” Is it to save money? Do you want to go off the grid? Or do you simply want to be more green.

Will rooftop solar eliminate my power bill from OREMC? In most cases the answer is no.

What is the Cooperative Solar option?

With Cooperative Solar you get to choose the right amount of solar energy for you. Blocks of solar energy are subscribed to and billed monthly.

Let OREMC’s energy advisors help you make sense of your solar options. Call (800) 262-5131 or visit online oremc.com Source: Green Power EMC

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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O R E MC E STA BLISHES C H ARITA BLE FO UNDATIO N

The OREMC Foundation Board of Trustees are (l-r): President Ruby Ann Sawyer, Carolyn Strickland, Matthew Jordan, Vice President Ramona Jones, Secretary Sonya Walker, Jackie Hayes, Tina Mobley, Rissa Self and Treasurer Shallen Crum.

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Development. Support. Impact. These are three key

enable the Foundation to solicit grant applications for the

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words that best sum up the purpose of the newly

first time in fall 2021.”

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established Okefenoke Rural Electric Membership

Initial funding for the Foundation comes from unclaimed

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Corporation Foundation (OREMC Foundation). The

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Foundation will serve as a launchpad for a community

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development initiative supporting education, community

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capital credits. Unclaimed capital credits have historically

health and economic development in the six Georgia

funded OREMC’s annual scholarship program ($20,000) and charitable contributions to qualified organizations ($50,000). While OREMC will continue with these programs,

and two Florida counties OREMC serves.

the Foundation Board of Trustees will award additional

Qualified organizations are invited to submit grant

grants throughout the year, based on funds available.

applications outlining their project plans and related

OREMC General Manager John Middleton explains, “We

funding requests. A nine-member Foundation Board of Trustees has been established—one member representing each of OREMC’s districts—that will review applications and award grants on a quarterly basis. Grant criteria,

have been working toward establishing a charitable foundation to help foster greater economic development, support educational enrichment—academics, athletics and/or the arts—and address community needs. Through

application and timelines are available on OREMC's

the OREMC Foundation we are inviting qualified organizations

website oremc.com/foundation.

in our communities the opportunity to tell us about their

“The idea for the Foundation has been around for several

programs and funding needs, so we can build on our

years, as more than 250 other electric cooperatives across

founding principle of concern for the community and

the country have established charitable foundations,”

make a positive impact.”

explains OREMC Member Communication Marketing

For more information about the OREMC Foundation

Coordinator Michele Hutchins. “OREMC has been interested in setting up a charitable foundation as a way to increase our community reach and engagement.

please review the guidelines available at oremc.com/ foundation. Email questions to foundation@oremc.com or call 800-262-5131 ext. 1103.

Several factors aligned to turn OREMC’s vision into reality, provide funding, establish a board of trustees and

ANNUAL REPORT 2021 • Okefenoke Rural Electric Corporation | 4

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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FI N A NCIA L REPO RT of the Cooperative’s balance sheet, statement of revenue,

2021, reflect the sound status of Okefenoke Rural Electric

expenses, and remarks concerning each. Copies of the

Membership Corporation.

complete audit are on file at the Cooperative’s Headquarters

Each year we retain the services of independent Certified

Office in Nahunta, Georgia, for your review.

Public Accountants, to perform an audit of the corporation’s

The figures presented in this report represent our summary

accounting records. This year’s audit, conducted by McNair,

of the year’s operation.

McLemore, Middlebrooks and Co, LLP included an examination

Cristi B. Koncz | S EC R E TA RY/ T R EASU RER

ASSESTS

Financial Statements for the fiscal year ending June 30,

Utility Plant Electric Plant in Service - At Cost Construction Work in Progress Accumulated Provision for Depreciation

2021 $209,830,456 2,536,433 212,366,889 (71,945,708) 140,421,181

$201,943,631 1,092,382 203,036,013 (68,344,168) 134,691,845

24,159,328 436,308 196,873 1,335,749 26,128,258

23,139,036 286,910 341,667 1,112,803 24,880,416

4,633,463 110,712

1,931,343 71,424

4,755,087 2,276,694 583,353 12,359,309

5,528,543 2,059,236 559,741 10,150,287

1,054,718

1,823,912

$179,963,466

$171,546,460

Other Property and Investments Investments in Associated Organizations Note Receivable Restricted Funds Other Investments C

Current Assets Cash and Cash Equivalents Note Receivable - Current Portion Accounts Receivable (Net of Accumulated Provision for Uncollectible Accounts of $1,102,574 in 2021 and $1,089,760 in 2020) Materials and Supplies Other

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2020

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Deferred Debits

M EM BERS' EQUITY AND LIABILITIES

Total Assets 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 Notes Payable Consumer Deposits Accrued and Withheld Taxes Other Deferred Credits Total Members' Equity and Liabilities

5 | Okefenoke Rural Electric Corporation • ANNUAL REPORT 2021

$

274,508 60,099,118 4,255,475 64,629,101

$

209,407 55,305,742 3,963,322 59,478,471

80,877,319 1,335,749 82,213,068

82,755,156 1,112,803 83,867,959

3,671,690 12,893,495 4,901,991 0 1,504,483 1,295,775 2,625,401

5,454,000 5,967,416 6,592,678 1,950,405 1,775,806 1,277,121 2,569,181

26,892,835

25,586,607

6,228,462

2,613,423

$179,963,466

$171,546,460

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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STATEMENTS OF OPERATIONS

2021 Operating Revenue and Patronage Capital

45,700,320

44,835,595

4,481,221

4,774,872

Distribution Maintenance

4,863,537

5,481,026

Consumer Accounts

2,242,074

2,227,950

Consumer Assistance and Information Administrative and General

427,254 3,961,963

3,753,868

Depreciation

5,906,800

5,715,983

12,229 67,595,398

13,539 67,201,066

6,604,118 3,393,627 3,210,491 1,996,070 894,729 401,952

6,250,338 5,761,362

Other

Operating Margins Before Interest Expense Interest Expense Operating Margins After Interest Expense

Other Capital Credits and Patronage Capital Allocations

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STATEMENTS OF CASH FLOWS

Net Margins

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$ 73,451,404

Distribution Operations

Cost of Power

Generation and Transmission Cooperative Capital Credits

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$ 74,199,516

Operating Expenses

Nonoperating Margins

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2020

Cash Flows from Operating Activities Net Margins Adjustments to Reconcile Net Margins to Net Cash Provided by Operating Activities, Depreciation and Amortization 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 Other Long-Term 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 Notes Payable RUS Cushion-of-Credit

Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning Cash and Cash Equivalents - Ending

398,233

488,976

$6,503,242

107,193 953,684 368,261 $1,918,114

$ 6,503,242

$ 1,918,114

6,848,262 (1,296,681) (1,950,405)

6,555,619 (1,321,945) 0

773,456 (23,612) 433,296 (1,690,687) (271,323) 18,654 56,220 222,946 3,615,039 13,238,407

262,899 304,590 (132,550) 1,909,744 (191,715) 13,623 251,500 78,007 219,768 9,867,654

(12,241,700) 212,009 (217,458) (188,686) (222,946) (12,658,781)

(11,439,060) 236,218 (182,735) (147,619) (78,007) (11,611,203)

6,926,079 65,101 0 (3,660,147) (1,417,713) 64,380 0 0 1,977,700

4,362,558 46,704 358,225 (5,040,527) (1,458,931) 25,824 1,950,405 1,858,822 2,103,080

2,557,326 2,273,010 $4,830,336

359,531 1,913,479 $2,273,010

ANNUAL REPORT 2021 • Okefenoke Rural Electric Corporation | 6

OREMC - Annual Report - 2021 (Revised) 090621.pdf

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