Laurens Electric 2010 Annual Report

8/6/2019 Laurens Electric 2010 Annual Report

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2010 Annual Report

Looking out for you


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Lewis HarrisonCHAIRMAN OF THE BOARD

J. David Wasson, Jr.PRESIDENT AND CEO

We are

looking out for you Laurens ElectricCooperative isowned by thepeople we serve.Our number onepriority isproviding you, ourmembers, withreliable, safe, andaffordable energy.

Were workingtogether to makethis happen, usinginnovation anddedication toensure wecontinue to put our members first.

One of the first steps to ensuring reliability isprevention, such as the co-ops right of way

management program. Co-op personnel constantly clean, clear, and trim brush and debris away

from power lines and crews inspectthe substations and thousands of miles of lines to identify areas inneed of maintenance.

Technology and system design areanother major aspect of reliability.In 2010, Laurens Electric continuedtargeting highly populated portionsof its service area, integratingadvanced software and systemupgrades while coordinating a

new approach to outagemanagement. As a direct result of these measures, outage frequencyand duration in these areas wasreduced an average of 40% .

through reliability...

One of the tools co-op leadersemploy to ensure the best service

for its members is the American Customer Satisfaction Index (ACSI) , whichmeasures customer loyalty, experience, and expectations on a localand national level. For the eighth year sinceit began participating in the study,Laurens Electric Cooperatives resultsremained high, with a score of 83 in 2010,versus the industry average of 72.

with excellent service...

LEC employees like Edwenia Nelson, Kay Abercrombieand Aretha Sayles participate in routine training and meetings to analyze and discuss best practices, areasin need of improvement, and to keep employees upto speed on the latest advancements.

LEC employees like Stanley Thompson and Mike Tucconstantly inspect and repair equipment to ensur

maximum system reliability.

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TogetherWeSave.com features a Virtual Home Tour, interactive activities and step-by-step video guides for a variety of energy-efficiency makeover projects.

Laurens ElectriCooperativeoffers energy

saving brochuresand booklets in

addition toextensive online

resources tohelp you use

energy wisely.

We arecommitted

to doing everything possible to keep your electric bills affordable. In 2010 we continuedhelping members manage energy use and control costs with our energy efficiency programs.The co-ops web site, www.LaurensElectric.com offers an extensive Energy Library withenergy saving information for homeowners, commercial and industrial members, and aKids Korner. Members may also request copies of our Energy Tips brochure and101 Low Cost/No Cost Home Energy Saving Measures booklet.

Whats more, as a Touchstone Energy Cooperative, our members have access to theextensive and interactive web site, TogetherWeSave.com . Visitors to the site will find a Virtual Home Tour, interactive activities that use local information for energy-saving

calculations, and step-by-step videoguides for a variety of energy-efficiencymakeover projects.

Also in 2010, the co-op introduced anew energy efficiency rate schedule,called Residential Service Energy StarSchedule. Attainable by new or existinghomes, the requirements to qualify forthe energy efficiency rate are set byEnergy Star at energystar.gov. Membersmust get a HERS (Home Energy

Efficiency Rating System) certifiedcontractor to certify that the homemeets Energy Star requirements(a HERS rating of 85 or less) to qualifyfor this rate.

by keeping energy affordable through efficiency...

In 2009 we began theCo-op Connections

Member Benefit Program, designed to help members save money in this time

of rising costs and economic uncertainty. The number of participants givingdiscount offers continues to grow, along with the number of co-op memberstaking advantage of the discounts. 2010 data tells us that South Carolina isNumber 1 in the country in total member savings using the pharmacy part

of the card discount. Last year Laurens Electric Cooperative memberssaved over $154,000 on prescriptionsan average of 35%

per prescription.

To find out more about savings opportunities near you,visit www.connections.coop.

by saving you money through Co-op Connections...

The Co-op Connections Member Benefit Program is designed to help memberssave money through a network of participants offering discounts to card holders.


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Since 2000, Laurens Electric has offeredto its customers Green Power, electricity

generated from a renewable resource, in this case a landfill that converts methane gas into electric power.In the 10 years since its establishment, residential members of Laurens ElectricCooperative purchase more Green Power than any other electric co-op in the state.All revenue from the Green Power program is reinvested in future development of renewable resources or facilities.

with programs to help the environment...

Throughout the year Laurens Electric Cooperativeorganizes programs and charitable events such

as the annual Million Dollar Hole in One Shootout, which raises funds for the communitys children, and the annualPoker Run that helps support Cooperative Caring.

In addition, the co-op sponsors two local high school students each year

to attend Washington Youth Tour, holds special raffles to contribute toThe American Cancer Societys Relay for Life, and reaches out to thecommunity through its womens charitable group, WIRE (WomenInvolved in Rural Electrification) . In 2010 alone,Laurens Electric raisedover $50,000 for different charities through our community events.

through community events...

The 2010 $1 Million Hole In One Shootout earned $10,000 for the Beach Ball Foundation,non-profit organization dedicated to helping children in need and at risk.

Lewis HarrisonDISTRICT 3

Helen AbramsDISTRICT 6

Mitchell PowersDISTRICT 9

Charles AdairDISTRICT 4

Leroy BlakelyDISTRICT 5

F. E. HendrixDISTRICT 8

Marcus CookDISTRICT 7

Bill HendrixDISTRICT 2

Joe NicholsonDISTRICT 1

Looking out for you ... 2010 Board of Trustees

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2010 2009AssetsUTILITY PROPERTY, PLANT & EQUIPMENT

Total Utility Plant in Service . . . . . . . . . . . . . . . . . . . . . . . . .Construction Work in Progress . . . . . . . . . . . . . . . . . . . . . . .Total Utility Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Less: Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . .Net Utility Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Non Utility Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Investments in Associated Organizations and

Other Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total Property, Plant & Equipment . . . . . . . . . . . . . . . . .

CURRENT ASSETSCash & Cash Equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . .Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Notes Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Materials and Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Prepayments and Other Current Assets . . . . . . . . . . . . . . .

Total Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DEFERRED CHARGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities & EquitiesEQUITY

Memberships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Patronage Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Other Equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CURRENT LIABILITIESAccounts & Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . .Member Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Accumulated Operating Provisions . . . . . . . . . . . . . . . . . . .Other Current and Accrued Liabilities . . . . . . . . . . . . . . . . .

Total Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . .

LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .DEFERRED CREDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .TOTAL EQUITIES AND LIABILITIES . . . . . . . . . . . . . . . . . . . . .

2010 2009ELECTRIC REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OPERATING EXPENSECost of Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Distribution Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Customer Account & Service Expense . . . . . . . . . . . . . . . . .Sales Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Administrative and General Expense . . . . . . . . . . . . . . . . . .Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Tax Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . .

Operating Margins Before Interest and Capital Credits . . .

INTEREST ON LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . .Operating Margins Before Capital Credits . . . . . . . . . . . . .

NON OPERATING MARGINS

Capital Credits from Related Organizations andOther Non Operating Margins . . . . . . . . . . . . . . . . . . . . . . .Revenues Related to Disposition of Saluda River . . . . . . .Total Non Operating Margins . . . . . . . . . . . . . . . . . . . . . . . .NET MARGINS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Margins & Equities, Beginning of Year . . . . . . . . . . . . . . . . . . .Retirement of Capital Credits . . . . . . . . . . . . . . . . . . . . . . . . . .

Margins & Equities, End of Year . . . . . . . . . . . . . . . . . . . . . . . .

STATEMENT OF OPERATIONS AND PATRONAGE CAPITAL

2009

BALANCE SHEET

InterestExpense5%

TaxExpense3%

OtherDeductions0%

OperatingExpenses14%

DeprExpe4%Cost of Power

65%

Non-Operating4%

Margins5%

Margins4%

InterestExpense

5%TaxExpense4%

OtherDeductions0%

OperatingExpenses15%

DeprExpe5%Cost of Power

64%

Non-Operating3%

2010

2010 Financial Revie

$ 202,838,6563,066,131

205,904,78759,325,808

146,578,9790

10,729,225157,308,204

25,057,8787,357,459

93,000952,802164,920

33,626,059

0

$ 190,934,263

$ 286,76541,632,421(1,507,144)40,412,042

10,531,2082,441,3078,048,2274,859,965

25,880,707

124,641,514

0

$ 190,934,263

$ 194,948,3805,014,687

199,963,06756,260,040

143,703,0270

12,450,853156,153,880

16,231,3566,406,167

165,000880,280206,280

23,889,083

0

$ 180,042,963

$ 285,28537,098,142(4,462,091)32,921,336

10,076,1782,437,8209,709,8344,543,704

26,767,536

115,997,763

4,356,328

$ 180,042,963

$ 114,654,913

81,547,6416,504,4554,430,973

559,8775,662,2835,311,3524,115,384

105,798108,237,763

6,417,150

5,735,633681,517

1,016,3434,382,7895,399,132

$ 6,080,649

$ 32,921,336500,000

$ 40,412,042

$ 103,043,645

70,108,8225,697,8664,343,236

520,6515,493,2245,215,1454,036,471

160,49595,575,910

7,467,735

5,600,3891,867,346

975,5382,191,3953,166,933

$ 5,034,279

$ 28,004,294326,990

$ 32,921,336

Documents

Laurens Electric 2010 Annual Report