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MINUTES SOUTHSIDE ELECTRIC COOPERATIVE

MEETING OF THE BOARD OF DIRECTORS JULY 16, 2015@ 1:30 P.M.

HEADQUARTERS BOARD ROOM PRESENT: Frank W. Bacon (Chairman) Earl C. Currin, Jr. (Vice Chairman) Paul S. Bennett (Secretary)

Herbert E. Winn (Treasurer) Dorsey L. Drawhorn Charles J. Friedl Michael A. Lobue Kristie Martin-Wallace William T. White

John M. Boswell (General Counsel)

Christine Marston (Minute Taker)

STAFF: Jeffrey S. Edwards, President/CEO George A. Felts, VP of Engineering & Operations Services Danny J. Hammond, VP of Finance & Corporate Services Jean H. Morris, VP of Human Resources

Allan A. Sharrett, VP of Public & Member Relations

GUEST: Tim Kreis, Director of Customer Service Fred Davis, Key Accounts Representative

Dr. Frank Bacon presided and Dorsey Drawhorn gave the invocation.

PREVIOUS MINUTES

On motion made and seconded:

“The Minutes of the June 18, 2015 Board Meeting are approved as presented.”

MOTION CARRIED

ODEC REPORT

The ODEC report was given by Earl Currin and Jeff Edwards.

PRESIDENT/CEO’S REPORT

1. The SEC Financial and Statistical report for June 2015 was reviewed and is attached to and made a part of the Minutes.

2. The Institute of Electrical & Electronics Engineers (IEEE) outage data and safety report for June 2015 were reviewed in detail:

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IEEE Outage Data

a. System Average Interruption Duration Index (SAIDI), System Average Interruption Frequency Index (SAIFI), and Customer Average Interruption Duration Index (CAIDI) were well above historical five-year values.

b. June saw repetitive, severe thunderstorm activity with significant distribution damage.

c. There were no Dominion Virginia Power (DVP) or Appalachian Electric Power (AEP) supply outages during the month.

d. There were two SEC supply outages during the month:

Sugar Hill substation was off on June 13th during a thunderstorm event; it was subsequently taken off-line and tested. The trip event could not be recreated and several pieces of equipment were replaced as a precaution.

Powhatan substation was off on June 25th due to a direct lightning strike on the station. One of the mechanical pressure sensing relays on the transformer operated causing the outage. The station was taken off-line and tested. No other equipment was damaged.

e. June 20th was a major event day due to the severe thunderstorms that blanketed the service territory.

Safety Report

a. No lost-time injuries reported in June

b. Total lost-time accumulated in June was 0 days

c. As of June 30th, employees have worked 720 days without a lost time injury.

d. Completed two years without a lost time incident as of July 10th; only one incident in five years.

3. June 20th Thunderstorm:

a. Thunderstorms were forecasted for June 20th & 21st.

b. All Cooperative contractors were contacted on June 19th to be on standby.

c. Due to the minimal storm risk, no preplanning was done by the Virginia, Maryland & Delaware Association of Electric Cooperatives (VMDAEC).

d. SEC began to accumulate damage by 6 p.m. on June 20th.

e. Total outages peaked by 9 p.m. with approximately 9,200 members experiencing outages.

f. No substations or delivery points were impacted, but damage was system-wide with the most severe damage in Amelia, Charlotte, Lunenburg, Nottoway, Powhatan, and Prince Edward counties.

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g. 23 circuits locked out at one time.

h. SEC had 76 personnel and 50 trucks in the field. There were also 48 contractor and out-of-town cooperative personnel with 31 trucks assisting.

i. All power was restored by 9 p.m. on June 21st (26 hours).

j. Damage estimates:

12,997 members impacted

208 damage locations

10 broken poles

k. Primary damage was from green, deciduous trees outside of the right-of-way and lightning.

l. No injuries, equipment or property damage reported.

4. System Automation update:

a. Currently 75 down-line reclosers installed with remote SCADA capability

b. 43 additional units to be deployed by year-end 2016

c. 35 circuits complete as of June 2015

d. 24 additional circuits targeted by year-end 2016

e. Total investment as of July 1, 2015 $3.0 million

f. Year-to-date savings:

SAIDI 15.33% (22 minutes)

SAIFI 1.49%

CAIDI 13.63% (15 minutes)

5. AWARE Meetings updates:

a. Revamping programming

b. Members who have participated in the past will receive a thank you gift for serving on the committee

c. The new program will be called the Member Advocacy Committee

d. Meetings will be set up in the fall, preferably during lunchtime

e. Currently recruiting for the program with a three or four year term

6. Alternate Purchased Power Agreement update:

a. Working with Rappahannock Electric Cooperative and Ener-vision representing Morgan Stanley Commodities Group (MSCG)

b. Current deal is for a 24/7 fixed block of energy (all requirements)

c. Under ODEC contract, SEC can exercise 5MW or 5%, whichever is the larger

d. SEC’s 5% block would include 14,703 kW per month (176,436 kW annually and 10.7 million kWh per month (128.8 million kWh annually)

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e. MSCG’s offer would be a fixed price for energy:

Capacity provided at the annual PJM market price (variable

Ancillary charges (added on a per kWh basis – variable)

f. Concerns:

Value of deal is based on primarily capacity savings

ODEC capacity and energy rate projections are questionable

PJM capacity market pricing is expected to change with new regulations

ODEC rate is uncertain

Political costs

7. Dr. Currin attended a recognition program sponsored by SVCC’s College Foundation, where a room was named after the Cooperative.

8. Brad Ashwell visited the Southeastern Lineman School in Tennessee to see how to set up the SVCC Lineman Program practice yard at Fort Pickett. Cooperatives have committed to donating $504,000 over 5 years. The governor has put out a grant possibility of $200,000 and the Virginia, Maryland & Delaware Association of Electric Cooperatives is submitting the appropriate paperwork. Students are already signing up and are on a waiting list to attend the program. Cost for the program has not yet been determined.

9. The list of counties to be included in a broadband pilot project was provided by the governor’s office. Three counties of the Cooperative’s service territory were named (Amelia, Lunenburg and Powhatan). SEC is waiting on the governor’s office to offer funds for the program.

10. SEC’s Scholarship Fund golf tournament was held last Friday. There were 13 teams that played, 29 sponsors, and $12,730 raised for the scholarship fund. Expenses totaled $4,901 which the Cooperative will pay. SEC may establish a small committee to review applications received for the scholarship program.

11. Customer satisfaction survey has been completed and results will be delivered to the Cooperative next week.

12. Substation outages will be analyzed and a new process for maintaining the equipment is being developed.

BOARD EDUCATION

Load Management System:

a. Demand Response Unit (DRU)

b. Aclara DRU

Power line carrier (uses existing infrastructure)

Two-way communication

Turns AC units off by interrupting thermostat control wire, does not cut off the AC voltage

SEC personnel operate the DRU

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SEC can confirm unit received load control command

Unit has a 10 – 15 year life cycle

Commission filing allows for summer use only

c. AC Switch Program

1,054 DRUs in the field

521 units installed April 2014 – December 2014

533 units installed in 2015 year-to-date

Averaging 88 installs per month

Phone call campaign and installations are handled by Utility Partners of America (UPA)

3 control periods in the summer of 2014

5 control periods in June 2015

Each control period will be 2 – 3 hours long

Control periods will occur between 2 p.m. – 7 p.m.

Members will have some AC during control periods

36 units have been removed (14 in June 2015)

No issues with the devises

UPA provides free basic HVAC repair service to members on program

Each unit cost $174

UPA charges $93 per install and $30 per appointment

Total investment to date $70,777

Total ODEC investment to date $237,829

d. AC Program Plant Costs:

ODEC paid for first 500 DRUs ($86,710)

ODEC paid for all installs from April 2014 – May 2015 ($151,119)

SEC took advantage of sale prices on Aclara units; 1,008 units purchased at $99 each, saving the Cooperative $75,217

Year-to-date savings $313,046

e. Annual projected wholesale power savings per 1,000 DRUs:

Each unit will reduce load .5kW - .9kW per operation

Estimated annual savings of $43,056

Payback for first 1,000 units is 1 year, payback for all future installs is 7 years

SEC will be sending out over 800 checks in the amount of $25 in the fall for those members who signed up for program

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NEW BUSINESS

1. SEC Annual Meeting Official Notice:

a. Same format as last year for the Annual Meeting Notice

b. No special mailing to be sent to the membership, the Notice will be in the form of a dust cover on the September issue of the Cooperative Living magazine.

c. Proxy prize will be $500 for those proxies received before 5 p.m. on Friday, September 25, 2015.

d. All petitions are due by July 27th at 5 p.m.

Upon motion made and seconded:

“The Annual Meeting Official Notice is approved subject to no other petitions being received.”

MOTION CARRIED

2. Right-of-Way Side Trimming Contract Extension:

a. Current side-trimming contracts are with Townsend and Rocky Creek Tree Service (2013 – 2015).

b. 2015 contract costs:

Townsend

‐ $2,701.72/primary mile

‐ $285.00/secondary mile

‐ $185.00 - $645.00/tree (unit price removals based on size of tree)

‐ Hourly rates per employee/per equipment (hazard tree removals and member tickets)

Rocky Creek Tree Service

‐ $1,820.00/primary mile

‐ $100.00/secondary mile

‐ $90.00 - $600.00/tree (unit price removals based on size of tree)

‐ Hourly rates per employee/per equipment (hazard tree removals and member tickets)

c. Proposed contract extension:

Extend current side-trimming contracts for 2016 – 2017

Townsend

‐ $2,742.25 & $2,783.38/primary mile (1.5% increase)

‐ $285.00/secondary mile (no increase)

‐ $185.00 - $645.00/tree (no increase)

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‐ Hourly rates per employee/per equipment (2.0% annual increase)

Rocky Creek Tree Service

‐ $1,830.00/primary mile ($10/mile increase)

‐ $150.00/secondary mile ($50/mile increase)

‐ $90.00 - $600.00/tree (no increase)

‐ Hourly rates per employee/per equipment (approximate 2.5% increase)

Two-year projected increase $110,321

‐ 2016 side-trimming $3,290,642

‐ 2017 side-trimming $3,129,241

d. Justification for extension:

Clearing work would normally be bid in 2015 to cover 2016 – 2018

Based on current spending, SEC will be at a 5-year cycle by 2017

‐ Extension allows same contractors to complete the cycle

‐ Remaining two years in heaviest growth areas (higher cost to bid)

This extension will allow SEC to complete a system assessment and review best practices without the potential disruption of a 3-year contract

All costs are tentative based on approval of the 2016 and 2017 budgets

On motion made and seconded:

“The Side-Trimming contract extension is approved.”

MOTION CARRIED

3. Security System Bid Results:

a. Currently have unintegrated, antiquated systems

b. A comprehensive security system upgrade was approved in the 2014 – 2016 Construction Work Plan; projected estimate of $750,000

c. Upgrade to include video surveillance, building access, building security and fuel management systems.

d. Bids released to Gaston Security, Inc. and SDI, Inc. (formerly X7).

e. Bids were opened internally on June 12th:

Gaston Security, Inc. = $613,430

SDI, Inc. = $991,728

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f. Gaston Security’s price was reduced by $140,916 as it included installation cost for the Western District. SDI’s priced did not include that office.

g. A minimal integration project will be negotiated with Gaston for the existing Western District equipment.

h. Installation will begin in September 2015

4. Architect Selection for Western District Office and Land Purchase Agreement for Western District Office:

a. Identified $20,000 in the 2015 Budget for architectural services

b. Current issues:

Entrance/traffic

Parking

Limited warehouse space

Terrain/outside storage limitations

Front office space

General disrepair of buildings (aging infrastructure)

c. Architectural services:

McKinney USA, Ashland, VA

‐ SEC garage facility

Oakley Collier, Rocky Mount, NC

‐ Roanoke Electric Membership Corporation, NC (visited location)

‐ Halifax Electric Membership Corporation, NC

‐ Edgecombe-Martin Electric Membership Corporation, NC

MC Architecture, Greenville, SC

‐ Santee Electric Cooperative, SC

‐ Fairfield Electric Cooperative, SC

‐ Lynches River Electric Cooperative, SC

‐ Laurens Electric Cooperative, SC

‐ Union Power Electric Membership Corporation, NC

‐ Lumbee River Electric Membership Corporation, NC

‐ Rappahannock Electric Cooperative, VA (visited location)

‐ Northern Neck Electric Cooperative, VA

d. MC Architecture (MCA) was selected given their cooperative experience, design process, staff strength and projects completed in Virginia

e. MCA has provided a Programming and Conceptual Design Agreement ($8,000 programming and $3,000 conceptual design)

f. Upon completion of programming and conceptual design phase, a recommendation on complete architectural design services and construction will be made.

General FundCash in Banks 7,029,484.75

General Funds Invested CFC - CTC's 2,186,463.13 CFC - Patronage Capital 1,939,784.52 Federated Insurance Corporation 309,542.00 VED Corporation Incorporated 66,937.00 TEC Trading Incorporated 622,500.00 Town of Hurt 1,000.00

Notes and Accounts Receivable Electric Consumer 9,079,777.58 Other Accounts Receivable 3,330,510.42

24,565,999.40 Material and Supplies in Stock 655,304.23

Construction Work in Progress to be Paid from Construction Funds 0.00

TOTAL 25,221,303.63

Construction Funds Available First Citizens Bank 0.00

CFC & FIRST CITIZENS BANKCFC RUS & FFB LINE OF CREDIT

Allocation Under Notes 56,969,109.57 128,337,835.45 34,000,000.00

Advance to Date 56,969,109.57 128,337,835.45 10,550,161.95

Balance Available for Advance 23,449,838.05

Gross Obligations 59,306,528.19 127,131,449.20 10,550,161.95

Interest Paid This Year 1,502,976.00 1,267,820.21 86,590.37

NOTES STATISTICS

STATEMENT OF GENERAL FUNDS AND OTHER ASSETSJune 2015

Page 1 of 6

Comparative Operating Statistics

221 273 461,369 1,270 2861,119 1,069 2354,181 4,348 4,348

17 16 054,825 55,220 55,220

8,195 8,229 8,229

Meters Installed - New Services

2010 2011 2012 2013 2014 2015January 48 33 34 38 28 45February 53 37 38 39 25 37March 51 53 12 30 27 44April 70 48 30 33 42 47May 79 30 32 37 41 54June 77 60 37 41 58 46July 73 58 40 46 50August 62 43 59 57 76September 64 48 43 55 45October 58 36 49 54 54November 55 47 39 95 48December 48 47 41 45 56Total 738 540 454 570 550 273

Services Idle, Excluding SeasonalNumber of Services RetiredTotal Consumers Receiving ServiceTotal Miles Energized

Y-T-D 2014

June 2015

Southside Electric CooperativeFor the Month Ending June 2015

New Services ConnectedMeters RemovedMeters Reinstalled

Y-T-D 2015

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Revision: 69770

General LedgerFinancial And Operating Report Electric Distribution

Page: 18:29:19 am07/13/2015

SOUTHSIDE ELECTRIC COOPERATIVE

Item Last Year This Year

----------------------------------Year - To - Date -------------------------------

Budget Current------------- Period - To - Date -----------------

Budget

INCOME STATEMENT FOR JUN 2015

63,501,027.70 67,737,565.96 62,409,065.82 10,573,974.39 10,092,944.02 1. Operating Revenue and Patronage Capital0.00 0.00 0.00 0.00 0.00 2. Power Production Expense

37,945,890.35 42,327,883.62 37,710,728.44 6,504,670.37 6,096,944.12 3. Cost of Purchased Power3,675.65 0.00 4,464.00 0.00 744.00 4. Transmission Expense

0.00 0.00 0.00 0.00 0.00 5. Regional Market Expense1,532,389.42 1,664,494.82 1,882,126.00 313,322.42 312,771.00 6. Distribution Expense - Operation5,333,826.63 5,807,893.36 5,997,530.00 1,097,168.10 997,912.00 7. Distribution Expense - Maintenance1,124,812.83 1,123,698.64 1,066,242.00 187,931.18 177,707.00 8. Customer Accounts Expense1,179,373.82 1,323,256.63 1,432,686.00 220,100.95 238,781.00 9. Customer Service and Informational Expense

143,321.97 255,296.19 249,499.00 44,706.46 51,500.0010. Sales Expense2,800,370.07 2,996,515.37 2,968,983.00 398,298.86 495,705.0011. Administrative and General Expense

50,063,660.74 55,499,038.63 51,312,258.44 8,766,198.34 8,372,064.1212. Total Operation & Maintenance Expense (2 thru 11)

4,647,783.65 4,997,365.09 4,790,454.00 859,325.30 798,409.0013. Depreciation & Amortization Expense678,981.60 744,000.00 744,000.00 124,000.00 124,000.0014. Tax Expense - Property & Gross Receipts

0.00 0.00 0.00 0.00 0.0015. Tax Expense - Other2,958,126.95 2,857,386.58 3,197,580.00 346,898.40 532,930.0016. Interest on Long-Term Debt

0.00 0.00 0.00 0.00 0.0017. Interest Charged to Construction - Credit1,302.02 1,380.19 0.00 213.63 0.0018. Interest Expense - Other

58,790.98 7,888.49 16,062.00 2,710.45 2,677.0019. Other Deductions58,408,645.94 64,107,058.98 60,060,354.44 10,099,346.12 9,830,080.1220. Total Cost of Electric Service (12 thru 19)

5,092,381.76 3,630,506.98 2,348,711.38 474,628.27 262,863.9021. Patronage Capital & Operating Margins (1 minus 20)51,894.89 69,892.00 58,998.00 10,763.23 9,833.0022. Non Operating Margins - Interest

0.00 0.00 0.00 0.00 0.0023. Allowance for Funds Used During Construction0.00 0.00 0.00 0.00 0.0024. Income (Loss) from Equity Investments

-7,446.18 1,296.06 -17,274.00 -1,312.55 -2,879.0025. Non Operating Margins - Other381,410.52 549,924.50 360,000.00 60,000.00 60,000.0026. Generation and Transmission Capital Credits552,007.62 176,652.47 110,000.00 0.00 0.0027. Other Capital Credits and Patronage Dividends

0.00 0.00 0.00 0.00 0.0028. Extraordinary Items6,070,248.61 4,428,272.01 2,860,435.38 544,078.95 329,817.9029. Patronage Capital or Margins (21 thru 28)

6,070,248.61 4,428,272.01 2,860,435.38 544,078.95 329,817.90Operating - Margin0.00 0.00 0.00 0.00 0.00Non Operating - Margin2.72 2.27Times Interest Earned Ratio - Operating3.05 2.55Times Interest Earned Ratio - Net2.74 2.30Times Interest Earned Ratio - Modified

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General LedgerFinancial And Operating Report Electric Distribution

Page: 18:29:36 am07/13/2015

Revision: 65726SOUTHSIDE ELECTRIC COOPERATIVE

This YearLast Year Variance

BALANCE SHEET FOR JUN 2015

ASSETS AND OTHER DEBITS 1. Total Utility Plant in Service 320,609,620.56 20,491,920.71300,117,699.85 2. Construction Work in Progress 10,403,209.25 1,203,586.999,199,622.26 3. Total Utility Plant (1 + 2) 331,012,829.81 21,695,507.70309,317,322.11 4. Accum. Provision for Depreciation and Amort. 95,731,730.20 10,920,006.2484,811,723.96 5. Net Utility Plant (3 - 4) 235,281,099.61 10,775,501.46224,505,598.15 6. Non-Utility Property (Net) 29,696.88 -7,747.8037,444.68 7. Invest. in Subsidiary Companies 0.00 0.000.00 8. Invest. in Assoc. Org. - Patronage Capital 44,564,265.52 958,959.9843,605,305.54 9. Invest. in Assoc. Org. - Other - General Funds 2,497,005.13 34,370.402,462,634.73 10. Invest. in Assoc. Org. - Other - Nongeneral Funds 0.00 0.000.00 11. Invest. in Economic Development Projects 0.00 0.000.00 12. Other Investments 1,065,976.67 35,407.831,030,568.84 13. Special Funds 0.00 0.000.00 14. Total Other Property & Investments (6 thru 13) 48,156,944.20 1,020,990.4147,135,953.79 15. Cash - General Funds 7,029,484.75 5,497,124.281,532,360.47 16. Cash - Construction Funds - Trustee 0.00 -1,427,701.651,427,701.65 17. Special Deposits 0.00 0.000.00 18. Temporary Investments 0.00 0.000.00 19. Notes Receivable (Net) 0.00 0.000.00 20. Accounts Receivable - Sales of Energy (Net) 9,079,777.58 111,757.678,968,019.91 21. Accounts Receivable - Other (Net) 3,330,510.42 729,505.692,601,004.73 22. Renewable Energy Credits 0.00 0.000.00 23. Material and Supplies - Electric & Other 655,304.23 3,375.47651,928.76 24. Prepayments 912,397.19 218,780.71693,616.48 25. Other Current and Accrued Assets 7,070,450.04 1,174,890.695,895,559.35 26. Total Current and Accrued Assets (15 thru 25) 28,077,924.21 6,307,732.8621,770,191.35 27. Regulatory Assets 396,794.27 -684,021.651,080,815.92 28. Other Deferred Debits 6,659,416.65 -168,823.216,828,239.86 29. Total Assets and Other Debits (5 + 14 + 26 thru 28) 318,572,178.94 17,251,379.87301,320,799.07

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General LedgerFinancial And Operating Report Electric Distribution

Page: 28:29:36 am07/13/2015

Revision: 65726SOUTHSIDE ELECTRIC COOPERATIVE

This YearLast Year Variance

BALANCE SHEET FOR JUN 2015

LIABILITIES AND OTHER CREDITS 30. Memberships 228,750.00 945.00227,805.00 31. Patronage Capital 97,729,278.39 3,776,789.9193,952,488.48 32. Operating Margins - Prior Years 0.00 0.000.00 33. Operating Margins - Current Year 4,428,272.01 -1,641,976.606,070,248.61 34. Non-Operating Margins 0.00 0.000.00 35. Other Margins and Equities 42,749.66 -112,410.84155,160.50 36. Total Margins & Equities (30 thru 35) 102,429,050.06 2,023,347.47100,405,702.59 37. Long-Term Debt - RUS (Net) 17,024,251.08 -531,024.8317,555,275.91 38. Long-Term Debt - FFB - RUS Guaranteed 106,479,478.12 15,773,105.7090,706,372.42 39. Long-Term Debt - Other - RUS Guaranteed 0.00 0.000.00 40. Long-Term Debt - Other (Net) 55,555,295.19 -3,731,248.5759,286,543.76 41. Long-Term Debt - RUS Econ. Devel. (Net) 0.00 0.000.00 42. Payments - Unapplied 0.00 0.000.00 43. Total Long-Term Debt (37 thru 41 - 42) 179,059,024.39 11,510,832.30167,548,192.09 44. Obligations Under Capital Leases - Noncurrent 0.00 0.000.00 45. Accumulated Operating Provisions 115,057.86 0.00115,057.86 46. Total Other Noncurrent Liabilities (44 + 45) 115,057.86 0.00115,057.86 47. Notes Payable 10,550,161.95 -4,437,102.8314,987,264.78 48. Accounts Payable 7,459,295.31 653,202.376,806,092.94 49. Consumers Deposits 2,622,310.09 18,782.702,603,527.39 50. Current Maturities Long-Term Debt 7,378,953.00 895,398.006,483,555.00 51. Current Maturities Long-Term Debt - Econ. Devel. 0.00 0.000.00 52. Current Maturities Capital Leases 0.00 0.000.00 53. Other Current and Accrued Liabilities 3,104,017.05 1,082,678.062,021,338.99 54. Total Current & Accrued Liabilities (47 thru 53) 31,114,737.40 -1,787,041.7032,901,779.10 55. Regulatory Liabilities 0.00 0.000.00 56. Other Deferred Credits 5,854,309.23 5,504,241.80350,067.43 57. Total Liab. & Other Credits (36+43+46+54 thru 56) 318,572,178.94 17,251,379.87301,320,799.07

0.900.66Current Assets To Current Liabilities to 1 to 133.32 32.15 % %Margins and Equities To Total Assets

54.0954.17 %Long-Term Debt To Total Utility Plant %

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Statements of Cash Flows Southside Electric Cooperative

Period ended Period endedJune 30, 2015 June 30, 2014

Cash flows from operating activities

Electric revenue received 68,929,001$ 63,057,123$ Power supply paid (41,637,746) (36,612,427) Operating expenses paid (14,314,129) (12,104,746) Interest received 69,892 51,894 Interest paid (2,858,766) (2,959,429) SERP payout - (1,066,579) FEMA monies received - 348,548

Cash flows provided by operating activities 10,188,252 10,714,384

Cash flows from investing activities

Investment in electric plant,net (5,274,504) (7,719,283) Proceeds from disposal of plant 130,417 - Installment loans issued (739,588) (595,088) Investment in CRC - (10,000) Proceeds from retirement of CTC's - 14,104

Cash flows used in investing activities (5,883,675) (8,310,267)

Cash flows from financing activities

Proceeds from lines of credit - 1,187,102 Payments on lines of credit (5,250,000) - Proceeds from long term debt 7,000,000 - Principal payments on long term debt (3,861,865) (3,185,289) Capital credits paid to members, net (126,210) (166,087) Proceeds from capital credits 68,958 367,479 Deposits collected from customers (88,235) 121,593 Net change in memberships 510 40

Cash flows used in financing activities (2,256,842) (1,675,162)

Net change in cash 2,047,735 728,955

Cash at December 31, 2014 and 2013 4,981,750 2,231,107

Cash at June 30, 2015 and 2014 7,029,485$ 2,960,062$

No. Receiving Service

a.

No. Minimum Bills d.

Avg. No. Receiving Service

e.

kWh Sold Cumulative

f.

Amount Cumulative

g.

1. Residential Sales (excl seas.) 53,009 27 52,981 407,799,870 57,486,666

2. Residential Sales Seasonal

3. Irrigation Sales

4. Comm. & Ind 1000 KVA or Less 1,848 14 1,839 28,287,285 3,685,956

5. Comm. & Ind Over 1000 KVA 15 0 14 40,016,612 3,270,085

6. Public St. & Highway Lighting

7. Other Sales to Public Authority 348 2 341 24,373,047 2,683,386

8. Sales for Resale - REA Borr.

9. Sales for Resale - Other

10.

(1 thru 9) 55,220 43 55,175 500,476,814 67,126,092

11. Other Electric Revenue xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx 611,474

12. Total (10 + 11) xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx 67,737,566

THIS MONTH a.

THIS MONTH a.

YEAR-TO-DATE

b.

1. Net kWh Generated . . . . . . . . 155,316 1,171,907

2. kWh Purchased . . . . . . . . . . . 82,088,529

3. Interchange kWh - Net . . . . . .

4. Total kWh (1 thru 3) . . . . . . . . 82,088,529 16.06 3.61

200,531 327,271

Februay 2015

YEAR-TO-DATETHIS MONTH

660,746

3,646,762

583,297

520,430,434

500,476,814 10. Month When Maximum Demand Occurred . . .

6. Office Use . . . . . . . . . . . . . . .

7. Total unaccounted For

(4 less 5 & 6), . . . . . . . . . . 13,183,035

ITEM ITEM

8. Percent System Loss (7/4)x100 . .

YEAR-TO-DATE b.

5. Total kWh - Sold . . . . . . . . . . . . 68,750,178

9. Maximum Demand (kW) . . . .

520,430,434

68,750,178

466,156

PART D. CONSUMER SALES AND REVENUE DATA

6,042,043

8,768,889

xxxxxxxxxxxx

10,479,089

94,886

10,573,974

xxxxxxxxxxxx

PART D. CONSUMER SALES AND REVENUE DATA June 2015

CLASS OF SERVICEkWh Sold

b.Amount

c.

18,781,713

54,047,550

5,013,823

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