20 ANNUAL REPORT 18 MEMBER FOCUSED. YOUR COOPERATIVE ADVANTAGE.
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MEMBER FOCUSED. YOUR COOPERATIVE ADVANTAGE.
Dear Member, As your cooperative modernizes and innovates to continue providing the best value to members, our core commitment remains steadfast: keeping your electricity reliable and your bill as low as possible. Keeping rates stable is the most important way we can help keep your bill lower. We’re very pleased to say that due to our favorable wholesale power cost, 2019 will mark six straight years we’ve completed with no rate increase for members! The net benefit from our subsidiaries is also helping keep rates affordable. While our Blue Ridge Energy Propane and Fuels subsidiary delivers propane, heating fuels, and gas heating appliances to the region, our RidgeLink subsidiary offers businessto-business broadband and telecommunications services. Last year we posted $3.3 million in net benefit from the subsidiaries, and these funds go directly to help hold down rates. These results are backed by excellent employee performance in all of our Key Performance Indicators, especially reliability, customer service, and safety. We rank among the best in the nation in these categories, which is a testament to our entire team working to achieve the best results for our members and customers. Following through on our member-centric mission includes other landmark moments in 2018 to benefit members: • Over 4,000 members joined our “Beat the Peak” program
to help keep rates lower for all by shaving demand during
peak electricity demand periods. Combined with the
cooperative’s other demand control programs, this translated
to over $450,000 in wholesale power cost savings.
• Started construction of a new 230kV line and substation from Ashe County to Watauga County, which is the largest construction project in our history to provide the capacity and reliability needed to serve members. • Returned over $5 million to members through our capital credits refund, and another $5.24 million will be returned by May, 2019.
2019 Annual Meeting June 27, 2019, 4 PM Corporate Office, Lenoir NC
• Began construction on a new corporate headquarters building to serve as the hub for three companies: your cooperative and its two subsidiaries. It also includes a secure dispatch center where our entire electric system is monitored and coordinated for members and line technicians as well as our wholesale power source. Blue Ridge Energy is improving lives in our service area in many different ways, a few of which you’ll see in this annual report. We hope you see our devotion to the people and communities we serve all across northwest North Carolina and beyond. – Jeff Joines, President / Doug Johnson, CEO
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Blue Ridge Energy
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At Blue Ridge Energy, we’re always looking at
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ways to improve your service, and to enhance your overall member experience. The latest example of this commitment comes in the form of the major transmission upgrade that we began in 2018. This enormous endeavor, officially known as the
ess-
Horse Gap to Rutherwood 230 kV Project, will expand
year
our capacity, allowing us to meet the reliability needs of members in our mountain service locations today, as well as a half-century from now. Why is this
in all
mer
$40 million project so necessary? Because the original
hese
17 miles of transmission line that provides electricity
o
from Ashe County to Watauga County was built more than 50 years ago, and is exceeding its lifespan.
ther
In addition, this project also includes building a new substation in the Rutherwood community of
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Watauga County. This represents the largest system
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improvement in our history, and we are closely monitoring and containing costs. In the long run, this
ated
will be beneficial for our members, and ensures that your cooperative will provide the best service possible now and for future generations.
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your cooperative advantage
Successfully kicked off "Beat The Peak" with over 4,000 members joining this voluntary member effort to conserve electricity when usage is at its highest. This program along with other cooperative efforts have saved members nearly half a million dollars. Sign up today as working together is your cooperative advantage!
Blue Ridge Energy
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technology & innovation
As a cooperative, Blue Ridge Energy belongs to the members and communities we serve. Our core directive is keeping your costs low while providing the best,
Dollars unadjusted for inflation
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$
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most reliable service. Our innovation to achieve this includes growing your electric cooperative to include a Propane and Fuels subsidiary company with service in all district offices. A second subsidiary, RidgeLink, provides businesses
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in NC and beyond with broadband and telecommunications service. Your subsidiaries are contributing over $3 million annually that go directly to help hold down member rates. We believe in the cooperative business model and all the benefits that means for local communities.
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Come visit one of four district offices and see for yourself what innovative and beautiful energy-saving products are available. Whether you are looking for an indoor or outdoor fireplace, heater, back-up power generator, water heater or decorative outdoor products such as gas grills, fire tables and fire pits, stop by your local cooperative district office first.
Outdoor Kitchens
03
Blue Ridge Energy
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Fireplaces
Fire Pits
Water Heaters
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have lower operating costs and driving economy. New models can travel up to 200 miles on a single charge. And, public charging stations are increasing. Your cooperative helped secure funding for public EV chargers in Blowing Rock and West Jefferson, and installed the fastest charger on the market at our Caldwell District office for public use! Gasoline vs. Electric: Cost to drive 27 Miles $4.00 $3.50
Average Compact Gasoline Vehicle
$3.00 $2.50 $2.00 $1.50
Electric Vehicle
$1.00 $0.50
20 11
20 10
09 20
08 20
07 20
06 20
05 20
04 20
03 20
02 20
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0 20
st,
environmental impact, there are serious cost savings, too! EVs
Dollars unadjusted for inflation
ies
While the obvious benefit of an electric vehicle (EV) is the
Comparison assumes a 27 mpg gasoline vehicle (average compact fuel efficiency) and an electric vehicle efficiency of 0.34 kWh/mile. Sources: EIA 2013a; EIA 2013b; EIA 2013c.
Hundreds of Dollars in SAVINGS A YEAR
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To support local economic and community development, we’ve secured over $6 million in zero-interest loans and grants since 2005 for projects approved by the Rural Economic Development Loan and Grant program (REDLG). Most recently, Blue Ridge Energy was awarded
quality of life
over $2.8 million in zero-interest loans for the following approved projects: City of Lenoir: $1.36 million to build a new fire department for an underserved area of homes, businesses, and three schools. Adhezion Biomedical, LLC: $1 million to help this surgical component manufacturer expand and create 40 new jobs. Grace Chapel Fire Department: $552,000 to help purchase a water pumper truck and rescue equipment.
300,000 GRANT
$
FOR A NEW FIRE DEPARTMENT Blue Ridge Energy
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money back to
you
Largest capital credits return ever in 2018 In May of 2018 we returned over $5 million in capital credits to our members, and this year we did the same. Capital credits are truly a unique benefit, and serve as a reminder
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that you’re not only a Blue Ridge Energy member, but an owner too.
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ELECTRIC BILL BREAKDOWN
David
Mitch
POWER COST $ 54.91
LABOR/BENEFITS $ 12.65
UTILITY PLANT COST 15.64
OPERATING COST $ 13.10
SUBSIDIARY PROFITS/INTEREST INCOME (–$ 3.65)
MEMBER MARGINS $ 7.35
$
REDUCES BILL AMOUNT
John
25
$
Oper ident
3.3
$
Mem and R
1.35
Kilow As a cooperative, we are member owned which means we’re held to a higher standard. So whether it’s by offering capital credits, managing system upgrades, or responding
76,
swiftly during severe winter weather, we’ll do whatever it takes to ensure we provide
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good value to the people we serve.
– Doug Johnson, CEO
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Cont Blue
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Blue Ridge Energy
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18
s
ITS .65
Board of Directors
COOPERATIVE CONSOLIDATED FINANCIAL REPORT OPERATING STATEMENT
Year Ending Dec 31 (dollars in thousands)
INCOME
Operating Revenues
2018
156,699
$
174,708
$
LESS OPERATING EXPENSES Cost of Power BRE Cost of Sales Operations & Maintenance Depreciation & Amortization Taxes Interest
Left to Right:
2017
74,270 11,285 38,640 15,812 1,814 8,475
TOTAL OPERATING EXPENSES Margins from Operations Non—Operating Margins Total Margins
150,296 6,403 4,895 $ 11,298
$
82,389 15,517 43,666 16,258 1,941 8,734 168,505 6,203 4,832 $ 11,035
$
David Eggers, Vice President, Caldwell District James Burl (JB) Lawrence, Watauga District Jeff Joines, President, Caldwell District Cindy Price, Ashe District Bryan Edwards, Alleghany District Kelly Melton, Caldwell District Tom Trexler, Watauga District Joy Coffey, Secretary—Treasurer, Watauga District Bradley McNeill, Ashe District David Boone, Ashe District Mitch Franklin, Alleghany District John Wishon, Jr., Assistant Secretary-Treasurer, Alleghany District
OST 3.10
$
INS 7.35
Operating expense reduction based on employee initiatives identified in 2018
251 Thousand in WorkSmart Savings
3.3 Million
$
Member benefit from subsidiaries: Blue Ridge Energies, LLC and RidgeLink, LLC
1.35 Billion
Kilowatt Hours sold In 2018
76,466
Meters in 2018
BALANCE SHEET
Year Ending Dec 31 (dollars in thousands)
ASSETS $ Electric Facilities 494,338 Less Accumulated Depreciation 158,759 Net Electric Facilities 335,579 Net Non—Utility Property 23,532
515,726 168,828 346,898 24,796 $
CURRENT ASSETS $ $ Cash & Cash Equivalents 6,700 12,438 Accounts Receivable (Net) 24,341 22,982 Inventory 5,674 6,582 Other Current Assets 2,152 2,357 TOTAL CURRENT ASSETS Investments Other Assets
$ 38,867 44,359 12,966 13,225 12,668 13,591
$
TOTAL ASSETS
423,612
$
442,869
$
LIABILITIES & MEMBER EQUITY MARGINS & EQUITIES Memberships Other Equities Patronage Capital
$ 109 2,710 165,053
$ 104 4,516 170,157
TOTAL MEMBERSHIP OWNERSHIP $167,872
174,777
$
CURRENT LIABILITIES $ Accounts Payable 12,828 Lines of Credit 37,500 Other Current & Accrued Liabilities 24,618 TOTAL CURRENT LIABILITIES Long-Term Debt Other Non—Current Liabilities LIABILITIES & MEMBER EQUITY
13,911 0 24,287 $
74,946 149,139 31,655
38,198 194,367 35,527
$
423,612
$
$
442,869
$
50,000
$
Contribution to Members Foundation from subsidiaries: Blue Ridge Energies, LLC and RidgeLink, LLC Blue Ridge Energy
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electric reliability
FOUNDATION FINANCIAL REPORT Helping members in need and making local communities better is what the Blue Ridge Energy Members Foundation is all about. We’d like to personally thank our members for contributing to Operation Round Up® to help support the Members Foundation, with 100 percent of all donations going to help families and our communities. STATEMENT OF ACTIVITIES Year Ending Dec 31
2017
2018
REVENUE General Public Contributions
294,241
Value of Contributed Services
TOTAL
299,210
$
$
23,693 $
24,164
317,934
$
323,374
EXPENSES Assistance Provided
303,214
292,266
23,693
24,164
Administrative Services
CHANGE IN UNRESTRICTED NET ASSETS
($8,973)
$
6,944
UNRESTRICTED NET ASSETS Beginning of Year
End of Year
STATEMENT OF FINANCIAL POSITION
Year Ending Dec 31
$
191,187
$
182,214
$
182,214 189,158
$
2017
2018
ASSETS
Cash and Cash Equivalents TOTAL ASSETS
182,214
189,158
$ $
$
182,214
$
189,158
LIABILITIES AND NET ASSETS Unrestricted Net Assets TOTAL LIABILITIES AND NET ASSETS
182,214
189,158
$
$
$
182,214
Results of Operations electric reliability
$
189,158
99.99
%
We are proud to share that your cooperative is a national leader in electricity reliability. Keeping the lights on 99.99% of the time puts your cooperative among the top quartile of utilities nationally.
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CAL 37.2
Sources of 2018 Foundation Funds
where the funds come from
Operation Round Up® $ 391,958
to
(Includes Balance Forward From 2017)
018
Blue Ridge Energies, LLC RidgeLink, LLC Subsidiary Profits $ 50,000
Capital Credits Donations to Operation Round Up $ 39,466
481,424
$
9,210
4,164
,374
,266
4,164
Distribution of 2018 Foundation Funds Funding to Assist Communities
,944
CHILDREN AND ELDERLY GRANTS
Funding to Assist Families
44,870
KEEPING WARM WITH ELECTRICITY
$
41,700
KEEPING WARM WITH HEATING FUELS
$
22,890
HELPING WITH SPECIAL NEEDS
$
$
106,645
$
2,214
9,158
HEALTHCARE GRANTS
3,336
018 ECONOMIC DEVELOPMENT GRANTS
$
EMERGENCY SERVICES GRANTS
$
EDUCATION GRANTS
$
7,970
9,158
9,158 27,500
9,158
9,158
37,355
174,315
$
$ $
WATAUGA 15.6%
ALLEGHANY 28.5%
COMMUNITY IMPROVEMENT GRANTS CALDWELL 37.2%
ASHE 18.7%
292,266
ALLEGHANY 15.7% WATAUGA 28.2%
CRISIS HEATING ASSISTANCE
ASHE 34.1%
CALDWELL 22.0%
Blue Ridge Energy
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