PIONEER RURAL
APRIL 2023 • OHIO COOPERATIVE LIVING 17
ELECTRIC COOPERATIVE 2022 ANNUAL REPORT
ABOUT PIONEER
Pioneer Rural Electric Cooperative, Inc., is a notfor-profit, consumer-owned electric distribution utility headquartered in Piqua, Ohio. We also have a district facility in Urbana, Ohio, providing quicker response times during outage situations and continued operations in case of a disaster.
The cooperative serves more than 17,000 residential, commercial, and large industrial members throughout rural Miami, Champaign, and Shelby counties, as well as portions of the eight surrounding counties — Mercer, Auglaize, Logan, Union, Madison, Clark, Montgomery, and Darke.
17,000+ consumer-members
2,770+ miles of line
6.2 members per mile
11 counties served 55 employees
Mercer Darke
Auglaize
Shelby Miami
Montgomery
Union Madison 18 OHIO COOPERATIVE LIVING • APRIL 2023
Logan Champaign Clark
FOCUSED ON SAFETY, COMMUNITY ENGAGEMENT, AND THE FUTURE
As your electric provider, we are committed to providing you with safe and reliable service. We continued to regularly inspect and maintain equipment and complete preventive maintenance work on regular cycles. Our emphasis on safety and security remains high and at the forefront of everything we do.
In 2022, Pioneer was evaluated through the Rural Electric Safety Achievement Program (RESAP), a comprehensive system-wide inspection program to improve safety.
In a true testament of our focus, Pioneer once again improved scores overall compared to previous inspections. The RESAP evaluation reviews all areas of Pioneer’s safety program, including work site inspections, facility inspections, and one-onone employee interviews.
COMMUNITY ENGAGEMENT
After more than a year of COVID restrictions, Pioneer was thrilled to get back into the community by participating in various parades and events and providing education
in classrooms and workplaces. Safety demonstrations were also completed for children, first responders, and others within our service territory.
THE FUTURE
In the next five to seven years, 14 employees will be eligible for retirement. We continued to focus on hiring and retaining young, dedicated employees to learn from those employees who have decades of experience.
In 2022, we hired six new employees, including two member services representatives and four lineworkers — three of whom are lineworker trainees — to fill vacated positions and to prepare for the future.
Each day, we strive to do everything possible to keep the lights on and ensure the safety and security of everyone in our community.
APRIL 2023 • OHIO COOPERATIVE LIVING 18A
RELIABLE SERVICE
AVERAGE OUTAGE MINUTES PER MEMBER
106 METERS REPLACED
2,582
20,773 calls were taken by member service representatives in 2022.
MILES OF TREES TRIMMED
376*
18B OHIO COOPERATIVE LIVING • APRIL 2023
LINE REBUILDS
Miami County
8.5 miles; Bethel School, Redwood Apartments, Emerson subdivision, City of Union Industrial Park
Montgomery County
1 mile; City of Union Industrial Park
Champaign County
4.6 miles
UTILITY POLES
Replaced: 140
Causes:
Accident (46)
Tree (0)
Storm (28)
Other (5)
7% 35%
[
and
of those rights-of-way
*includes mowing brush areas
treatment
Broken poles: 79 58% [
*Excludes major outage events
SAFETY & CO-OP COOPERATION
CREW OBSERVATIONS
Supervisors complete crew observations to ensure work was being done safely.
RESAP EVALUATION
The Rural Electric Safety Achievement Program (RESAP), a comprehensive system-wide inspection program to improve safety.
17/17
categories scored satisfactory performance or higher.
MUTUAL AID
As an electric cooperative, we are always ready to help. One way we do this is by helping other electric utilities restore power to their members or customers through mutual aid because we know, someday, we’ll need their help too. In 2022, Pioneer assisted:
Rappahonnock Electric Cooperative
Culpeper, Virginia
January 4 - 12, 2022
South Central Power
Lancaster, Ohio
February 4 - 10, 2022
AES
Dayton, Ohio
March 31, 2022
Washington Electric Cooperative
Marietta, Ohio
June 19, 2022
LINEMEN 12 UTILITIES 4 DAYS 17
Our primary focus on a daily basis is the safety of our crews, first responders, and the general public. Our dedication to safety was highlighted in this year’s Rural Electric Safety Achievement Program (RESAP), in which we showed improvement for the third evaluation in a row and received one of the best evaluations in Ohio. Our belief is that there is always room for improvement and that managing the needs of our members would not be possible with out the strong work ethic and dedication of our entire group of employees.
– Steve McClay, Director of Operations and Safety
[ [
143
APRIL 2023 • OHIO COOPERATIVE LIVING 18C
SERVING THE COMMUNITY...
YOUTH ENERGY CAMP
18
fourth through sixth grade students attended the first Pioneer Energy Camp.
SCHOLARSHIPS
$7,000 in scholarships was awarded to nine children of members, including one technical scholarship.
ECONOMIC DEVELOPMENT
$10,400 was contributed to economic development projects in Champaign, Miami, and Shelby counties.
EMPLOYEE FUNDRAISING
Pioneer’s employee fundraising initiative donated a total of $2,298 to three local food pantries and to provide Christmas gifts for local families. Pioneer has continued the Christmas gift tradition for 30 years.
SOLAR INSTALLATIONS
17
residential members installed solar panels and OurSolar II was made available to expand our community solar project.
18D OHIO COOPERATIVE LIVING • APRIL 2023
AMERICAN CONSUMER SATISFACTION INDEX
88
CAPITAL CREDITS
$2,689,550 was returned to current and former members in 2022.
REBATES & INCENTIVES
237 residential rebates were awarded to members for a total of $127,439 in rebates.*
*Cost is shared with Buckeye Power
CYBERSECURITY
Pioneer continues to improve overall member safety by improving cybersecurity measures through updates and training.
...AND THE COOPERATIVE
BOARD OF TRUSTEES
The board of trustees, elected by the membership, oversees the president/CEO, sets company policy, and monitors finances of the cooperative. They receive education and training to help best serve the membership.
Terrence Householder CHAIR
Colleen Eidemiller FIRST VICE CHAIR
Roger Bertke SECOND VICE CHAIR
John Goettemoeller SECRETARY
Mark Bailey TREASURER
Wade Wilhelm TRUSTEE
Robert Billings TRUSTEE
Ted Black TRUSTEE
John Vulgamore TRUSTEE
APRIL 2023 • OHIO COOPERATIVE LIVING 18E
Balance Sheet as of December 31, 2022
ASSETS
UTILITY PLANT AND OTHER PROPERTY
Electric plant in service
Construction work in progress
Less: Accumulated provision for depreciation and amortization
NET UTILITY PLANT AND OTHER PROPERTY
INVESTMENTS
Investments in associated organizations
CURRENT ASSETS
Cash and cash equivalents
Accounts receivable, net of allowance for uncollectible accounts of $47,816 for 2022
Deferred charges
Materials and supplies
Prepaid power costs
Right of use assets, net of accumulated amortization
Prepaid expenses and other receivables
TOTAL CURRENT ASSETS TOTAL
ASSETS
TOTAL ASSETS ELECTRIC PLANT $144,000,000 $140,000,000 $136,000,000 $132,000,000 $128,000,000 $124,000,000 $120,000,000 $116,000,000 $112,000,000 $108,000,000 $104,000,000 $100,000,000 $96,000,000 2019 2020 $135,000,000 $130,000,000 $125,000,000 $120,000,000 $115,000,000 $110,000,000 $105,000,000 $100,000,000 $95,000,000 $90,000,000 2019 2020 2021 2021 2022 2022 $129,969,323 237,901 130,207,224 (43,854,359) 86,352,865 37,338,416 9,076,564 5,588,399 870,437 1,217,140 243,093 324,324 1,540,960 18,860,917 $142,552,198 18F OHIO COOPERATIVE LIVING • APRIL 2023
Balance Sheet as of December 31, 2022
LIABILITIES AND EQUITIES
EQUITIES
Patronage capital
Donated capital
Accumulated other comprehensive income
TOTAL EQUITIES
LONG-TERM LIABILITIES
Notes payable, less current maturities
Accrued postretirement benefits
Right of use liabilities
TOTAL LONG-TERM LIABILITIES
CURRENT LIABILITIES
Current maturities of notes payable
Current maturities of right of use liabilities
Accounts payable - purchased power
Accounts payable - other
Consumer deposits
Accrued taxes
Deferred credits
Other current liabilities
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES AND EQUITIES
$81,544,594 3,259,295 39,200 84,843,089 45,271,709 790,586 226,383 46,288,678 1,968,520 97,941 4,003,931 2,323,148 230,616 2,106,890 23,223 666,162 11,420,431
APRIL 2023 • OHIO COOPERATIVE LIVING 18G
$142,552,198
Statement of Revenue and Expenses for the year ended December 31, 2022
OPERATING REVENUES
OPERATING EXPENSES
Cost of power
Distribution expense - operations
Distribution expense - maintenance
Consumer accounts and sales expense
Administrative and general
Depreciation
Taxes
TOTAL OPERATING EXPENSES
OPERATING MARGINS BEFORE FIXED CHARGES
Interest on long-term debt
OPERATING MARGINS AFTER FIXED CHARGES
Capital credits from associated organizations
OPERATING MARGINS
NON-OPERATING MARGINS
Interest and dividend income
Loss on disposition of assets
Other expense, net
TOTAL NON-OPERATING MARGINS
NET MARGINS FOR YEAR
Here’s how each dollar was spent in 2022.
[
Power Cost 68¢ Consumer Accounting, Service & Sales 2¢ Operations/ Maintenance 12¢ Depreciation 6¢ Administrative 3¢ Interest 3¢ Taxes 2¢ Margins 4¢ $72,677,649 49,157,638 6,040,143 2,276,959 1,436,653 2,322,813 4,188,139 1,626,514 67,048,859 5,628,790 2,006,384 3,622,406 2,631,301 6,253,707 102,422 (88,604) 7,001 20,819 $6,274,526 [ 18H OHIO COOPERATIVE LIVING • APRIL 2023
Statement of Cash Flow for
the year ended December 31, 2022
CASH FLOW FROM OPERATING ACTIVITIES
Net margins
Adjustments to reconcile net margins to net cash provided by operating activities:
Depreciation of utility plant
Amortization in postretirement net periodic benefit cost
Patronage allocation from associated organizations
Loss on disposition of property
Changes in assets and liabilities: Accounts receivable (net)
Materials and supplies
Prepayments
Deferred charges
Accounts payable
Deferred credits
Accrued postretirement
Accrued liabilities
Consumer deposits
Net cash provided by operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Extension and replacement of plant and non-utility property, net of salvage and removal costs
Patronage redemption and cash patronage proceeds
Net cash used by investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from notes payable
Payments on notes payable
Reassignment of patronage capital
Patronage capital credits retired
Net cash used by financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
$6,274,526 4,188,139 (38,900) (2,631,301) 88,604 (82,101) (270,024) 17,200 (527,905) 1,497,043 (720,612) (195,323) 96,645 (35,635) 7,660,356 (6,912,745) 2,787,342 (4,125,403) 2,000,000 (1,976,845) 205,404 (2,689,550) (2,460,991) 1,073,962 8,002,602 $9,076,564 APRIL 2023 • OHIO COOPERATIVE LIVING 18I
MAIN OFFICE 344 West U.S. Route 36 Piqua, Ohio 45356 DISTRICT OFFICE 767 Three Mile Road Urbana, Ohio 43078 WEBSITE www.pioneerec.com PHONE 800 762 0997 18J OHIO COOPERATIVE LIVING • APRIL 2023