2011 first electric annual report
DESCRIPTION
11 First Electric Annual ReportTRANSCRIPT
2011Annual Report
Robert HillChairmanPerryville
Larry WoodVice-Chairman
Lonoke
Robert MaertensSecretary-Treasurer
Benton
Jimmie CrockettRose Bud
Peggy CusickBenton
Tom HastyAlmyra
Rick LoveJacksonville
Improving Quality of LifeSince 1937 First Electric Cooperative has provided affordable,
reliable and safe power to its members in portions of 17 counties in Arkansas, powering homes, businesses and farms. Many things have changed over the years, but one thing has remained the same – our commitment to the members we serve. With employees who live and work in the communities, the cooperative cares about Arkansans.
Progress During the past 74 years, First Electric has grown from three em-
ployees and 150 members to more than 225 employees and 88,000 active accounts. During that period of time, the cooperative has built 43 substations and constructed more than 9,600 miles of lines. First Electric will continue to grow and make improvements with the purpose of better serving our members.
In 2011 First Electric completed its 43rd substation, Avilla. The substation, which is located in the Avilla community in the Benton district, was built to decrease the load on the Congo and Colleg-eville substations. Constructing the new substation shifted the load of 1,992 member-accounts to a single substation; therefore, reducing the load on the existing systems and allowing First Electric to pro-vide more reliable power.
The task of designing and building a system to remotely moni-tor and control the growing number of substations began in 2009. The Supervisory Control and Data Acquisition system, referred to as SCADA, improves load management and reduces outage lengths and system losses. Currently, SCADA is in the final stages of opera-tional and software testing.
Energy EfficiencyFirst Electric is committed to promoting the efficient use of elec-
tricity to meet the growing energy requirements of its members. First Electric marketing representatives are trained and certified to conduct either a free walk-through energy audit or a fee-based diag-nostic energy audit on members’ homes.
The free walk-through energy audit involves inspecting a home and evaluating the energy efficiency of the building, household ap-pliances, heating and cooling system and lighting.
The diagnostic energy audit uses a blower door test, infrared camera and duct blaster. These tools allow an energy auditor to iden-tify thermal deficiencies that cause high energy consumption and
an uncomfortable home. A detailed report is provided and includes the measured air tightness of the home, infrared camera results, duct leakage and specific recommendations for improvements that will reduce energy usage.
First Electric members William and Nancy Ferrell of Hopewell won the 2011 Electric Cooperatives of Arkan-sas $50,000 Energy Efficiency Make-over Contest. The Ferrells’ 31-year-old home received a comprehensive pre- and post-diagnostic energy audit, blower door test, duct blaster test and
infrared thermography. The home received numerous energy-saving applications, including a tighter building envelope, Retrofoam insu-
lation in the sidewalls, a foam-encapsulated attic, an energy-efficient Marathon water heater, an ultra-efficient geothermal heating and cooling system and high-efficiency windows and doors.
First Electric members who submit their application to the $50,000 Energy Efficient Makeover Contest are eligible for the $5,000 Mini Makeover Contest offered through the cooperative. One member from each district is selected annually to receive the mini makeover.
SafetySafety is THE top priority at First Electric. Employees working in
the field must follow safety procedures, and First Electric provides constant training to keep that at the forefront of their minds.
First Electric also focuses on the safety of our members as they interact with electricity in their daily lives. We educate elementary-age children on how to stay safe when near electricity with a magic show. For older children and adults, personnel use a high-voltage safety trailer to demonstrate firsthand the danger of coming into contact with energized lines.
Service-Driven, Not Profit-DrivenIn 2011, with historically low interest rates, First Electric took
advantage of an opportunity to refinance $53 million dollars. The transaction allowed First Electric and its members to save $1.8 mil-lion in interest cost.
First Electric’s philosophy of operating on sound, conserva-tive business principles makes it possible to provide the most re-liable service at the lowest pos-sible cost. In 2011, First Electric retired $3.8 million dollars to its members in the form of capi-tal credits. This brings the total returned to members to more than $53.2 million dollars.
Another service First Elec-tric provides is the Co-op Con-nections Card, which allows members to save money on products and services at participating local and national businesses. In Oc-tober 2010, the pharmacy discount was added to allow members to save money on acute care medications. First Electric members saved more than $147,000 on prescriptions filled with the Co-op Connec-tions Card in 2011.
Due to the generosity of First Electric members, Operation Round-Up donated more than $56,000 to local nonprofit organiza-tions in 2011. Since its inception in 1998, more than $500,000 has been donated on behalf of Operation Round-Up participants.
As we move into 2012, First Electric will continue to provide af-fordable, reliable and safe power to our members. Improving quality of life, that’s our commitment to you.
First Electric CooperativeImproving quality of life
Your Touchstone Energy® Cooperative
800-489-7405 www.firstelectric.coop
First Electric CooperativeImproving quality of life
Your Touchstone Energy® Cooperative
Board of Directors
The cooperative business model centers around seven principles, which guide First Elec-tric Cooperative.
Voluntary and Open Membership
Democratic Member Control
Members’ Economic Participation
Autonomy and Independence
Education, Training and Information
Cooperation Among Cooperatives
Concern for Community
Cooperative Principles
David LuebkeScott
Robert M. HillChairman
Don CrabbePresident/CEO
Condensed Balance Sheet
Condensed Operating Statement
Where the Dollar Comes From
Where the Dollar Goes
System Statistics
Number of member accounts served Miles of power line in operationNumber of accounts per mile of line
Total kWh bought by co-op membersAverage monthly residential kWh usageAverage monthly residential billAverage residential revenue per kWh
Total kWh purchased by cooperativeTotal cost of power purchased by co-op
Number of employeesNumber of distribution substations
Counties served, property taxes paidArkansas CountyCleburne CountyConway CountyFaulkner CountyGarland CountyGrant CountyIndependence CountyJefferson CountyLonoke CountyMonroe CountyPerry CountyPrairie CountyPulaski CountySaline CountyStone CountyWhite CountyYell County Total property taxes paid
201188,389
9,662 9.15
1,868,272,111 1,273
125.20 0.0984
2,003,311,464 101,278,973
22443
218,027 326,280
52,269 11,900
1,755 5,820 2,009
67,352 502,746
6,398 198,522
51,464 398,172 421,129
7,197 254,720
1,025 2,526,784
201087,271
9,597 9.09
1,898,306,212 1,331
129.14 0.0970
1,981,389,118 92,622,416
22342
218,680 330,118
52,535 12,325
1,752 5,679 1,842
67,063 509,081
5,627 200,817
52,031 407,838421,891
7,281 248,442
1,114 2,544,116
AssetsElectric PlantLess Accumulated DepreciationNet Utility PlantOther AssetsCurrent AssetsTotal AssetsLiabilities and Members’ EquityMembers’ EquityLong-term DebtCurrent LiabilitiesOther LiabilitiesTotal Liabilities and Members’ Equity
Operating RevenuesPower CostOperations and MaintenanceDepreciationTaxesInterestTotal Operating ExpensesMargins from OperationsNon-Operating MarginsNet Margins
2011421,893,987
123,259,791 298,634,196
86,634,584 32,377,817 417,646,597
193,070,865 187,118,623
19,186,484 18,270,625 417,646,597
2010407,218,883
116,956,483 290,262,400
80,093,590 36,808,584 407,164,574
182,514,917 191,446,736
18,156,232 15,046,689
407,164,574
2011 165,768,065
101,278,973 35,204,171 13,035,236
7,095 10,219,658 159,745,133
6,022,932 10,154,938 16,177,870
2010 168,115,194
92,622,416 36,907,645 12,692,113
13,263 12,169,108 154,404,545
13,710,649 7,859,048 21,569,697
Operations14%
Wholesale Power61%
OperatingMargins
4%Interest6%Depreciation
8%
MemberAccounting
4%
GeneralAdministration
3%
Residential71%
Commercial and Industrial
21%
Other2%
Public Authorities
1%
Irrigation5%
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