A BRIGHTER
FUTURE
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A N N U A L
R E P O R T
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Focusing on what matters most to our members, employees, customers and our communities.
Ou
ad Dear Member, The start of this year has brought with it unprecedented challenges. But while COVID-19 has disrupted our daily lives in different ways, it has not altered our commitment to providing value to our members. Even during these extraordinary times, we feel it's more important than ever to continue providing reliable electricity and keep your bill as low as possible while meeting responsible sustainability goals. Though no one knows how long the pandemic will affect us, it doesn’t change the fact that we are building a brighter energy future. In the near future, we will be announcing a North Carolina Electric Cooperatives campaign called “Brighter Future” to put forth our goals for these key objectives: 1) to enrich the lives of our communities and members; 2) low carbon goals; and 3) low rates goals. In looking at what we accomplished last year, we’re pleased to share that we’re maintaining this momentum into 2020 and for generations to come. We’re very pleased that for seven straight years there have been no rate increases. And in November and December, we passed along over $7 million in savings to our members as a result of lower-than-expected wholesale power costs and one-time settlements with our supplier. Here are some additional achievements from 2019 to highlight: • To upgrade capacity and reliability, we continued the most ambitious construction project in our cooperative’s history: our new 230 kV line and substation that stretches from Ashe County to Watauga County. • To follow a national best practice standard, we enhanced the net metering rate for our members who have rooftop solar systems. Going forward, each year we will annually purchase any excess kilowatt hours produced by these systems. • We completed construction on our new state-of-the-art corporate headquarters to house three critical systems in one location: the electric cooperative, our Propane and Fuels subsidiary, and our RidgeLink telecommunications business-to-business subsidiary. Among the staff and systems, technology, security, and communications connecting our power grid, substations and power lines, as well as a 24/7 system operators station and member/customer contact center, are located at the new corporate headquarters, all to support our operations and members. In reading this letter and the rest of this year’s annual report, it’s clear that Blue Ridge Energy is improving lives in our communities, all while upholding our high standard of service. We continue to focus on what matters most to our members, customers and communities as we work together for a “Brighter Future”! – Jeff Joines, President / Doug Johnson, CEO
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Blue Ridge Energy
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2019 Annual Report
CHECK OUT CAROLINA COUNTRY COVER WRAP
for more information on this year’s Annual Meeting!
5/8/20 2:28 PM
es,
A Brighter Future Together we are creating a “Brighter Future.� Our innovation and actions are focused on delivering value to our members and communities. We will continue our commitment of providing electricity at the lowest possible cost while also advancing the pursuit of responsible sustainability goals like low-carbon electricity.
50% carbon reduction by 2030 % and Net 0 by 2050 by reducing carbon
Our goal is
emissions from fossil fuel vehicles, and adding solar and other renewables, battery storage and special rates and pricing programs.
gy o nd tum
Low Cost Electricity Be a champion and join over 6,000 participating members in BEAT THE PEAK, a voluntary program to help hold down power costs for all members. By shifting or reducing usage of electricity a few hours during peak periods, members saved $547,000 in wholesale power cost savings in 2019!
Blue Ridge Energy
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2019 Annual Report
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SOLAR POWER
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Th In late 2019, the 5th community solar garden was constructed in the Kings Creek area of Caldwell County.
TOTAL OF
915 1,904 5
se
Utility-Scale Solar Facility
th
Blue Ridge Energy plans to install a utility-scale solar facility
tru
th
to generate and feed solar energy into the grid for the
PARTICIPATING MEMBERS
benefit of our members. The cooperative’s sights are set on building a “Brighter Future” and a utility-scale solar facility
PANELS
is one of the fastest ways to reduce carbon emissions. In other areas of the nation, utility-scale solar has proven to produce reliable, clean energy at a stable price. This new
COMMUNITY SOLAR GARDENS
facility will be located on 50 acres and will produce 19+ million kWh annually that will help control wholesale power cost to keep rates stable.
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Blue Ridge Energy
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2019 Annual Report
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y
Reliability Project The largest electric reliability project in Blue Ridge Energy’s history is progressing with preparation of the site for the new Rutherwood Substation in Watauga County. The substation is part of the cooperative’s transmission line upgrade to increase capacity and improve reliability for members in the mountain services areas. This project also includes the upgrade of a more than 50-year-old transmission line. The new line will increase capacity by converting an existing 100 kV line to a 230 kV line to meet current and future member growth and demand for electricity. This is a vital project as we must ensure meeting needs year round, especially during severe cold winter weather.
Fire Trucks Delivered to our Communities After Being Awarded USDA Funds The REDLG program is an important tool for helping rural communities across the nation compete for critical services such as safety, health care, education and job development. We’re pleased we were able to secure three loans in 2019. This makes a total of eight loans worth over $4.4 million that we've been able to secure from the USDA’s Rural Economic Development Loan and Grant program for local emergency services such as fire trucks, fire departments and a fire safety training trailer for emergency personnel.
n
r
COLLETTSVILLE Fire Department
360,000
$
LOAN ASSIST
Purchasing a 3,000 gallon water pumper truck.
PATTERSON
NEW RIVER
Fire Department
276,000
$
LOAN ASSIST
Purchasing a 3,000 gallon water pumper truck.
Fire Department
220,000
$
LOAN ASSIST
Purchasing a 2,200 gallon water pumper truck.
Blue Ridge Energy
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2019 Annual Report
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No board group photo available this year due to COVID-19 precautionary measures. Jeff Joines President Caldwell District
CAPITAL CREDITS
David Eggers Vice President Caldwell District
returned to members again in 2019
Joy Coffey Secretary—Treasurer Watauga District
In May 2019, we returned over $5 million in capital credits to our members as a result of lower-than-expected wholesale power costs. Capital credits are truly a
John Wishon, Jr. Assistant Secretary-Treasurer Alleghany District David Boone Ashe District Bryan Edwards Alleghany District
unique benefit, and serve as a reminder that you’re not only a Blue Ridge Energy member, but an owner too.
RESULTS OF OPERATIONS ELECTRIC RELIABILITY
Mitch Franklin Alleghany District James Burl (JB) Lawrence Watauga District Kelly Melton Caldwell District Cindy Price Ashe District Tom Trexler Watauga District James Young Ashe District
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Blue Ridge Energy
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99.99
%
ELECTRIC BILL BREAKDOWN POWER COST $ 50.11
LABOR/BENEFITS $ 14.54
UTILITY PLANT COST $ 20.23
OPERATING COST $ 12.25
SUBSIDIARY PROFITS/INTEREST INCOME (–$4.40)
MEMBER MARGINS $ 7.27
REDUCES BILL AMOUNT
2019 Annual Report
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COOPERATIVE CONSOLIDATED FINANCIAL REPORT 2018
OPERATING STATEMENT
Year Ending Dec 31 (dollars in thousands)
2019
INCOME Operating Revenues
174,733
$
82,389 15,517 43,666 16,258 1,941 8,734
$
$
LESS OPERATING EXPENSES Cost of Power BRE Cost of Sales Operations & Maintenance Depreciation & Amortization Taxes Interest
$
TOTAL OPERATING EXPENSES Margins from Operations Non-Operating Margins Income Tax Expense Total Margins
168,505 6,228 5,175 368 $ 11,035
$
160,251
69,008 12,492 42,371 20,038 1,972 9,153
155,034 5,217 5,172 382 $ 10,007
$
BALANCE SHEET
Year Ending Dec 31 (dollars in thousands)
ASSETS $ Electric Facilities 515,726 Less Accumulated Depreciation 168,828 Net Electric Facilities 346,898 Net Non-Utility Property 24,796
212 Thousand in 2019 WorkSmart Savings 43.3 Million Cumulative WorkSmart Savings
$ $
Operating expense reduction based on employee initiatives
CURRENT ASSETS $ $ Cash & Cash Equivalents 12,438 7,410 Accounts Receivable (Net) 22,982 15,729 Inventory 6,582 6,404 Other Current Assets 2,357 4,055
$
TOTAL CURRENT ASSETS Investments Other Assets
Member benefit from subsidiaries: Blue Ridge Energies, LLC and RidgeLink, LLC
TOTAL ASSETS
3.7 Million
553,514 183,420 370,094 23,216 $
$ 44,359 33,598 13,225 13,759 13,591 15,584
$
442,869
$
456,251
$
LIABILITIES & MEMBER EQUITY
1.31 Billion Electric kilowatt hours sold In 2019
MARGINS & EQUITIES Memberships Other Equities Patronage Capital
104 4,516 170,157
TOTAL MEMBERSHIP OWNERSHIP $174,777
77,170 Electric meters in 2019
EFITS $ 14.54 COST 12.25
$
RGINS $ 7.27
50,000
$
Contribution to Members Foundation from subsidiaries: Blue Ridge Energies, LLC and RidgeLink, LLC
$
178,473
$
CURRENT LIABILITIES $ Accounts Payable 13,911 Lines of Credit 0 Other Current & Accrued Liabilities 24,287 TOTAL CURRENT LIABILITIES Long-Term Debt Other Non-Current Liabilities
Blue Ridge Energy
15,275 6,000 25,834 $
$ 38,198 194,367 35,527
LIABILITIES & MEMBER EQUITY
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99 4,101 174,273
$
442,869
$
$ 47,109 199,387 31,282
456,251
$
2019 Annual Report
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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.
2018
STATEMENT OF ACTIVITIES Year Ending Dec 31
2019
REVENUE 299,210
296,264
$
Value of Contributed Services
TOTAL
$
24,164
24,500
323,374
$
292,266
$
$
320,764
EXPENSES Assistance Provided
$
Administrative Services
24,164
needs of cooperative members. Year in and year out
405,673 24,500
6,944 ($109,409)
$
UNRESTRICTED NET ASSETS Beginning of Year
$
$
End of Year
STATEMENT OF FINANCIAL POSITION
Year Ending Dec 31
communities. Empowering, enhancing, and engaging— that’s the cooperative way. While the infographics on these pages provide a great breakdown of our collective impact, we want to share a few other initiatives that highlight additional ways we’re
CHANGE IN UNRESTRICTED NET ASSETS
182,214
$
189,158
$
2018
189,158 79,749
2019
adding value for our members. For example, we were recently recognized as one of only three state utilities selected by the Department of Environmental Quality’s N.C. Weatherization Assistance Program for a grant to help low-income members benefit from community solar resources.
ASSETS
As always, our highest priority is meeting the specific we work diligently to have a positive impact on our
General Public Contributions
Empower Enhance Engage
Cash and Cash Equivalents TOTAL ASSETS
$
189,158
$
189,158
$
189,158
$
189,158
$
$
CH ELD
79,749
79,749
LIABILITIES AND NET ASSETS Unrestricted Net Assets TOTAL LIABILITIES AND NET ASSETS
$
$
79,749
79,749
COMMUNITY HIGHLIGHTS 50,000 BRIGHT IDEAS GRANTS
$
Grants awarded directly to 41 classrooms and teachers to benefit thousands of area students, teachers, schools, and communities.
We’re also preparing for the day when electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) become more ever-present. By monitoring consumer adoption of EVs and PHEVs, and analyzing how that could create a more efficient electric grid, we can work to keep member costs low—and potentially reduce
$
carbon emissions from fossil fuel vehicles in the process.
Scholarships awarded to students for leadership development, resume building and college preparedness.
Our innovation and actions are guided by our local roots
32,000 LEADERSHIP TRACK SCHOLARSHIPS
and focus on delivering value to cooperative members and communities. In our pursuit of sustainability goals like delivering low-cost, low-carbon electricity over a grid that is more efficient, resilient and secure, we will
07
be working together for a “Brighter Future”. Blue Ridge Energy
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2019 Annual Report
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CALD 28%