Amicalola EMC Annual Report - Amicalola Electric Membership ...

Amicalola ElectricMembership Corporation®2010 Annual Report

Amicalola EMC Annual ReportOfficial PublicationAmicalola ElectricMembership Corporation544 Highway 515 SouthJasper, GA 30143Charles L. Gibson, PresidentBoard of DirectorsCharles R. Fendley, Chairman . . . . . . . .Post #3John H. Bennett, Jr., Vice Chairman . . .Post #6Randall Ponder, Sec.-Treas. . . . . . . . . . .Post #1James H. Bryan . . . . . . . . . . . . . . . . . . . . .Post #4Kathy Burt . . . . . . . . . . . . . . . . . . . . . . . . . .Post #7Travis D. Cline . . . . . . . . . . . . . . . . . . . . . . .Post #5Wm. Leon Davis . . . . . . . . . . . . . . . . . . . . .Post #9David J. Pierce . . . . . . . . . . . . . . . . . . . . . .Post #2Reggie Stowers . . . . . . . . . . . . . . . . . . . . .Post #8TELEPHONE NUMBERS TO CALL INCASE OF POWER INTERRUPTIONS:Outage Hotlines706-253-0359706-276-0359706-864-0359Amicalola ElectricMembership Corporation544 Hwy. 515 SouthJasper, GA 30143Telephone: 706-253-5200www.amicalolaemc.comEastern District Office1234 Dawsonville Hwy.Dahlonega, GA 30533706-864-7979Northern District Office150 Tabor StreetEllijay, GA 30540706-276-2362Office Hours: Monday through Friday8:00 a.m. - 5:00 p.m.Closed on Saturday, Sunday and holidaysExecutive ReportThe first Amicalola EMC Annual Meeting washeld on July 26, 1941, with approximately3,000 people attending. Seventy years later, we willhold our 70th Annual Meeting on Saturday, Oct. 1,2011, at our offices in Jasper, Ga.Amicalola EMC was established in February1940. Electrification came in late April 1941 toCherokee, Gilmer and Pickens counties as 25 milesof power lines brought electricity to 90 memberowners.Today, Amicalola EMC provides electricitythrough more than 5,000 miles of line to over45,000 different locations.Charles GibsonChief Executive OfficerCharles R. FendleyChairmanMuch has changed in the last 70 years, but much has stayed the same. We continue to follow the same cooperativebusiness model. “Owned by those we serve” was adopted as the co-op’s motto back then and continues tobe our motto today.Since 1940, monies over and above operating costs have been assigned to our members and refunded inaccordance with the Bylaws, sound business principles and having met our mortgage covenants. Of the 70 yearsAmicalola EMC has been in existence, 50 years’ worth of capital credit refunds have already gone back into thepockets of our members. This year, your Board has approved returning members’ capital of more than $1 millionfor the year 1990. This brings the total refunds in the past six years alone to just over $12 million.Each year, your Board of Directors hires an independent accounting firm to audit the books and financialsof the cooperative. Their report is included for your review, as well as the accompanying financial reports. Wehope you will take a few minutes to look over this important information about your cooperative.Growth in our area remained sluggish again this year, and for the second year in a row, the number ofactive meters declined. There is a positive note here, however, as it gave us the opportunity to complete our conversionto higher system voltages throughout our service territory. We also used this time to trim rights-of-waythroughout the system. These two projects help improve the quality of service and system reliability to all ourmembers.As 2010 ended, so did our long-term power contract. With the help of Georgia Energy Cooperative, our newcontract will provide for our energy needs for several more years. We have been analyzing the impact and expectto change our rates later in the year or possibly early in 2012. Our retail rates have been quite competitive, andthey will continue to stack up well against other electricity providers in the region.In addition to providing reliable and affordable electricity, Amicalola EMC continues to work for the sustainabledevelopment of our communities, as is evidenced by the long-standing volunteerism of our employeesand financial support given by our management and Board of Directors to our students, our schools, area charitiesand individuals in need. Employees supported our local food pantries in 2010 by holding food drives anddonating more than $2,000 in cash.In 2010, we rolled out the Bright Ideas Education Grant Program. Teachers at six elementary schools competedfor grant money to fund classroom projects and were awarded more than $5,600.Three impressive high school juniors represented us on the 2010 Washington Youth Tour. Thirteen highschool juniors and seniors were recognized and awarded savings bonds and college scholarships at our annualYouth Awards Banquet.Operation Round Up ® continued to provide much needed dollars to support local charities and to meetbasic needs for those individuals who cannot provide for themselves. Due to the remarkable generosity of all whoround up your power bill, total donations since inception are nearing the $1.5 million mark.We will continue to work hard every day to keep the lights on and the rates affordable. Join us at the AnnualMeeting and see your electric cooperative at work.Beacon Editor:Stacey Godfrey Fields, CCCCharles Gibson, President/CEOCharles R. Fendley, Chairman32B Amicalola EMC Annual Report GEORGIA MAGAZINE

Amicalola EMC Annual ReportAmicalola ElectricMembership CorporationJasper, GeorgiaANNUAL MEETING MINUTESOct. 2, 2010CALL TO ORDER—Chairman Charles R. Fendley, havingdetermined from the registration clerks that a quorum was present,called the 69th Annual Meeting of Members of AmicalolaElectric Membership Corporation to order on Oct. 2, 2010. Themeeting was held at the headquarters facility in Jasper, Ga.INVOCATION—The Rev. Lyman Caldwell gave the invocation.Following the invocation, members and guests joined in pledgingallegiance to the U.S. flag.WELCOME—Chairman Fendley welcomed members and visitorson behalf of the Board of Directors.BUSINESS SESSION—Attorney Phil M. Landrum III conductedthe meeting. A motion carried to change the programas mailed and hold the election of directors before the reportsof officers.NOTICE OF MEETING—Attorney Phil M. Landrum III readthe meeting notice and proof of mailing for the notice of the2010 Annual Meeting.MINUTES AND FINANCIAL REPORT—Attorney Landrumstated that in keeping with a motion adopted at the 1953Annual Meeting, reading of the minutes of the 2009 AnnualMeeting would be dispensed with unless called for, sincecopies of these minutes and the Financial Report of the cooperativeas of the Dec. 31, 2009 audit had been forwarded tomembers as part of the official notice of the meeting. As therewas no call for reading of the minutes, a motion was made,seconded and carried that the minutes be approved as submitted.Accordingly, Attorney Landrum announced that the minutesof the 2009 Annual Meeting were approved as mailed.UNFINISHED BUSINESS—There was no unfinishedbusiness.NEW BUSINESS—Steven Leibel presented a resolution thatAmicalola EMC provide bus service for those members whoare in need of transportation in the locations the co-op serves,so they would be able to attend the Annual Meeting. AttorneyLandrum explained that any action taken by the cooperative istaken by the Board of Directors. The membership cannot dictateactions to the Board; therefore, this would be considered arecommendation to the Board. Attorney Landrum publishedthe motion to the membership stating that the motion on theContinued on page 32FBoard NomineesPOST 1 – Gilmer/Murray countiesRandall Ponder was elected tothe Board of Directors in 1990. In2006, he earned the NRECACredentialed Cooperative DirectorCertificate. He serves as secretarytreasurerof the Board of Directorsand chairman of the FinanceCommittee. Ponder serves as aDirector on the Georgia EnergyCooperative Board of Directors. He is retired, and he andhis wife, Sharlene, have two sons and four grandchildren.They reside in Gilmer County.POST 3 – Pickens CountyCharles R. Fendley was electedto the Board of Directors in 1972. In1999 Fendley earned the NRECACredentialed Cooperative DirectorCertificate. He serves as chairmanof the Amicalola EMC Board of Dir -ectors, as well as chairman of theGeorgia Transmission CorporationBoard of Directors. Fendley is retiredfrom banking and is a member of the Pickens CountyIndustrial Development Authority. Fendley and his familylive in Pickens County.POST 6 – Cherokee/Bartow CountiesJohn H. Bennett Jr. has servedon the Board of Directors since 1984.In 1999 Bennett earned the NRECACredentialed Cooperative DirectorCertificate, and in 2003 he earned theNRECA Board Leadership Certificate.He presently serves as vice chairmanof the Board of Directors, chairman ofthe Policy Committee, and memberrepresentative on the Oglethorpe Power Corp. Board ofAdvisors. Bennett is broiler manager at Pilgrim’s Pride inCanton and is a Life Member of the Georgia PoultryLeaders Roundtable. He is chairman of the Board ofDeacons at Goshen Baptist Church and serves as secretaryof the Board of Trustees for Reinhardt College. Heand his wife, Joy, have three children and seven grandchildren.They reside in Cherokee County.September 2011Amicalola EMC Annual Report32C

Amicalola EMC Annual ReportBalance Sheet DataFor years ended December 312010 2009Utility PlantElectric Plant in Service–At Cost $ 174,731,672 $ 71,168,853Construction Work in Progress 2,328,338 1,179,772177,060,010 172,348,625Accumulated Provision for Depreciation (49,269,222) (44,831,845 )127,790,788 127,516,780Other Property, Investments andRestricted FundsInvestments and Restricted Funds 10,919,363 6,520,970Current Assets 15,509,881 19,653,598Plant Investment$30,285,063$52,682,539$75,454,488$105,660,166$142,425,337$177,060,0101985 1990 1995 2000 2005 2010Deferred Debits 2,429 4,094Total Assets $ 154,222,461 $153,695,442kWh Sales (in hours)EquitiesMemberships $ 749,518 $ 745,443Patronage Capital 59,986,769 57,357,237Other 3,788,006 3,172,50664,524,293 61,275,186Long-term Debt 49,169,861 56,535,086Post-retirement BenefitsOther Than Pensions 7,034,940 6,833,368Current Liabilities 18,259,512 16,468,881Deferred Credits 15,233,855 12,582,921152,272,971221,242,380313,260,300426,922,005609,970,380757,409,584Total Equities and Liabilities $ 154,222,461 $ 153,695,4421985 1990 1995 2000 2005 2010REPORT OF INDEPENDENT ACCOUNTANTSWe have audited the accompanying balance sheets ofAmicalola Electric Membership Corporation as of December 31,2010 and 2009, and the related statements of revenue andpatronage capital and cash flows for the years then ended.These financial statements are the responsibility of theCorporation’s management. Our responsibility is to express anopinion on these financial statements based on our audits.We conducted our audits in accordance with auditing standardsgenerally accepted in the United States of America andthe standards applicable to financial audits contained inGovernment Auditing Standards, issued by the ComptrollerGeneral of the United States. Those standards require that weplan and perform the audits to obtain reasonable assuranceabout whether the financial statements are free of materialmisstatement. An audit includes consideration of internal controlover financial reporting as a basis for designing audit proceduresthat are appropriate in the circumstances, but not forthe purpose of expressing an opinion on the effectiveness ofthe Corporation’s internal control over financial reporting.Accordingly, we express no such opinion. An audit also includesexamining, on a test basis, evidence supporting the amountsand disclosures in the financial statements, assessing theaccounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonablebasis for our opinion.In our opinion, the financial statements referred to abovepresent fairly, in all material respects, the financial position ofAmicalola Electric Membership Corporation as of December 31,2010 and 2009, and the results of its operations and cash flowsfor the years then ended in conformity with accounting principlesgenerally accepted in the United States of America.McNAIR, McLEMORE, MIDDLEBROOKS & CO., LLP32D Amicalola EMC Annual Report GEORGIA MAGAZINE

Amicalola EMC Annual ReportConsumer GrowthOperating StatisticsFor the years ended December 3142,23945,6822010 2009Amount Percent Amount Percent34,272Operating Revenues $75,957,557 100.00 % $71,598,772 100.00%16,48821,38626,037Operating ExpensesCost of Power $51,285,846 67.52 $47,315,028 66.08Distribution Expenses 13,687,862 18.02 13,841,160 19.33Depreciation 5,660,543 7.45 5,526,789 7.72Interest Expense 3,627,527 4.78 3,402,989 4.751985 1990 1995 2000 2005 201074,261,778 97.77 70,085,966 97.88Miles of LineOperating Margins 1,695,779 2.23 1,512,806 2.122,635LargeCommercial7%GeneralService8%1985 1990 1995 2000 2005 2010Farm3%3,1773,6274,290Where It Comes FromOther Income 1%4,9965,489Residential81%Other Revenue 2,504,020 3.30 1,961,015 2.73Net Margins $4,199,799 5.53% $3,473,821 4.85%Notice of 2010 Capital Credit Assignments2010 capital credit allocation based on patronage revenue of $75,223,394Allocation PercentageAEMC $ 6,480,545 0.086151G & T 370,188 0.004921Total $ 6,850,733 0.091072To compute your capital credits, multiply the above percentage by the amount paidon energy and security lights during 2010. For assistance, call 706-253-5200.The Co-op DollarPurchasedPower68%Where It GoesMargins 2%OperatingExpenses18%Intereston Debt5%Depreciation7%September 2011Amicalola EMC Annual Report32E

Amicalola EMC Annual ReportAnnual Meeting minutes, Continued from page 32Cfloor is to recommend to the Board of Directors that the cooperativeprovide bus transportation to all members who requireit, so they can attend the Annual Meeting. The election tellerscounted the votes taken row by row. After the votes had beentaken for the first few rows, Steven Leibel addressed the chairand restated his motion as only applying to disabled members.Attorney Landrum disallowed this restatement of the pendingmotion. The election tellers counted the votes with 27 registeredmembers voting for the motion and 116 members againstthe motion.NOMINATING COMMITTEE REPORT—Attorney Landrumrecognized the Nominating Committee members who werepresent, and then read the report of the Committee placing innomination the following to serve as Dir ectors for three-yearterms ending at the Annual Meeting 2013: James H. Bryan,Post 4, Pickens/Gordon counties; Kathy Burt, Post 7, Dawson/Forsyth counties; William Leon Davis, Post 9, Lumpkin County.There was one nomination by petition. Steven K. Leibelqualified for Post 9, Lumpkin County. Each candidate wasintroduced.ELECTION/CREDENTIALS COMMITTEE—AttorneyLandrum then introduced the following who had been appoint -ed to serve as the 2010 Election/Credentials Committee: J. D.Edge, Carl Hill Jr., Floyd Puckett, Grady Evans and ClaytonVaughters.The election tellers collected the ballots. While the ballotswere being counted, the meeting continued.CHAIRMAN’S REPORT—Chairman Fendley expressed hisappreciation to The Glorybound Quartet from Canton, Ga., fortheir singing. He reported that with the slowing economy, theco-op lost members in 2009 for the first time in history; but in2010 we have experienced growth. The co-op continues toremain financially sound for another year, and returned capitalcredits to those who had electric service in 1989.Operation Round Up continues to help members and localcivic organizations by providing more than $1.3 million to helpwith worthy causes. The Board and management continue towork hard to keep your electric rates affordable, and they continueto talk with our political leaders about cap and trade andclimate change legislation, and the role the EPA may have onthis issue. He acknowledged the three 2010 Washington YouthTour delegates who attended the meeting and suggested thateveryone encourage students to enter the Washington YouthTour Essay Contest when they meet the age qualifications.an energy efficiency loan program available to the membershipthrough the GEMC Federal Credit Union at zero percent interest.Amicalola EMC has been selected as one of the two co-ops inGeorgia to receive a grant to install a wind turbine at LumpkinCounty High School. Another positive step the co-op has em -barked on is the Bright Ideas Program, which provides grants toclassroom instructors in our service area for innovative ideas fortheir classroom. And again we have returned capital credits toour members through 1989. Since 2005, nearly $11 million incapital credit refunds have been distributed. The most recent initiativethe employees have undertaken to help those in need isthe food drive to support area food pantries. He closed by reiteratingthat Amicalola EMC works hard every day to keep yourlights on and your rates affordable.RESULTS OF ELECTION—Attorney Landrum gave the resultsof the election from the report of the Election/CredentialsCommittee. For Post 9, Lumpkin County, William Leon Davisreceived 182 votes and Steven K. Leibel received 22 votes. JamesH. Bryan, Post 4; Kathy Burt, Post 7; and William Leon Davis,Post 9, will hold office until the 2013 Annual Meeting of Mem -bers, or until their successors have been elected and qualified.RECOGNITION OF GUESTS—Chairman Fendley welcomedthose members who were attending for the first time and allveterans who were present. The following guests also attended:Melissa Calzada, Georgia Energy Cooperative; Barbara Hampton,Georgia Transmission Corp.; Joe Weems, Georgia SystemsOperations Corp.; Jim Jess, GEMC’s GEORGIA Magazine; GlennWrightson, Utility Consulting Group; retired President/CEO BobPayne; Freida Watkins, American Heart Association; Dr. KathiraeSeverson, Stephanie Allen, Lynn Keener, Miranda Callahan,Kimberly Stepp and Michelle James with the PiedmontPhysicians Group at Tate; Operation Round Up Trustees DonQuinton, Edgar Land, Lanier Swafford, Lee Lowman and SteveGarrison; and Rick Jasperse, state representative for the 12thDistrict of the Georgia House of Representatives.PRESENTATION OF AWARDS—CEO Gibson announced thenames of service award recipients for 5, 10, 15, 20, 25, 30 and 35years of service. All of these employees were commended fortheir years of service. Edward Casey, recognized for 30 years ofservice, received a commemorative watch, and 35-year recipientsJohn Jordan and Gene Crowe were recognized and given acommemorative pin.Directors James H. Bryan, Kathy Burt and Randall Ponderreceived 20-year service awards.CEO’S REPORT—CEO Charles Gibson welcomed everyoneto the 69th Annual Meeting. He emphasized in his remarks thatone of the most important missions is to keep our electric ratesaffordable. He said the attempt to increase the cost of electricitythrough cap and trade or climate change law continues to be asubject that we continually monitor and that we stay involvedwith our legislators on both the state and national level.The positive things we are doing on the local level includeDISTRIBUTION OF PRIZES—McKenzie Hagin and FaithRalston drew the tickets for the distribution of gifts.Being no further business, Chairman Fendley adjourned themeeting.Randall Ponder, SecretaryCharles R. Fendley, Chairman32F Amicalola EMC Annual Report GEORGIA MAGAZINE

Amicalola EMC Annual ReportAnnual Meeting InformationREGISTRATIONRegistration for the 2011 Annual Meeting will be heldin the Truck Maintenance and Storage Building of the headquartersfacility, beginning at 11:30 a.m. The registrationarea will be marked. Adjacent to the registration area is themeeting area for the Annual Meeting.zation, bring the completed Letter of Authorization withyou when registering.SPECIAL SERVICESAmicalola EMC will provide special seating arrangementsfor the hearing impaired and the disabled. Membersneeding assistance are asked to contact the headquartersoffice prior to the Annual Meeting.PRIZESAt the time of registration, each voting member willbe given a voting member identification sticker and prizestub.Eligibility for ballot and prize stubs will be establishedfrom Board acceptance through Aug. 25, 2011. Winningprize stubs must be held by the person to whom it isissued.Daily Bread to performat Annual MeetingDVOTINGVoting by members will be in accordance with Bylawsof the cooperative.In the event it is necessary that votes be counted byelection tellers, only votes by registered voting memberswill be counted.Only members who are present may vote. A qualifiedmember is one who has paid a membership fee and signedan application for service. Only one vote for each memberwill be allowed. To vote for a church, club or other organiailyBread is afather-daughterduo, based inCherokee County,Ga. Darrek andBailey Cornelisonformed their groupDaily Bread earlierthis year, but havelong performedsouthern gospel with family harmony that everyoneloves. They perform regularly at the TennesseeShindig Theatre in Pigeon Forge, Tenn. They alsoenjoy sharing their talents at churches and otherentertainment venues. Daily Bread has released twoCDs, and plans are under way to complete morebefore the end of 2011.A local favorite, Darrek is the son of the lateGene Cornelison, retiree of Amicalola EMC. They areexcited and looking forward to Amicalola EMC’sAnnual Meeting and invite everyone to come outand hear them.LETTER OF AUTHORIZATIONFor Churches, Clubs or Organizationsat Annual Meeting___________________________________________________(Name of secretary of organization or other designated official)has been appointed to represent___________________________________________________(Name of church, club, or other organization)___________________________________________________(Address of church, etc.)___________________________________________________(Account Number)as its voting delegate at Amicalola EMC’sAnnual Membership Meeting on Saturday, Oct. 1, 2011.___________________________________________________(Signature of secretary of organization or other designated official)WITNESSES:______________________________________________________________________________________________________(If you are to be the representative of your church,club or other organization at the Annual Meeting, please have thisform completed and bring it with you to the meeting.)September 2011Amicalola EMC Annual Report32G

Amicalola EMC Annual ReportOfficial Notice of Annual Meeting ofAmicalola Electric Membership CorporationThe 2011 Annual Meeting of Amicalola Electric Membership Corporation will be held at the Amicalola EMCHeadquarters Facility located at 544 Highway 515 South, Jasper, Pickens County, Ga., on Saturday, Oct. 1, 2011,beginning at 1:30 p.m. to take action on matters listed below. Registration begins at 11:30 a.m.1. Reports and recommendations of officers and others.2. Election of 3 Directors for 3-year terms.3. Handling such other items of business as may properly come before the meeting or any adjournment thereof.Directors previously elected, but whose respective terms do not expire until the dates indicated are:David J. Pierce .......................(Post 2 – Gilmer/Fannin counties)...........Term expires October 2012Travis D. Cline........................(Post 5 – Cherokee County) .................Term expires October 2012Reggie Stowers......................(Post 8 – Dawson/Lumpkin counties).......Term expires October 2012James H. Bryan ......................(Post 4 – Pickens/Gordon counties) ........Term expires October 2013Kathy Burt ............................(Post 7 – Dawson/Forsyth counties) ........Term expires October 2013William Leon Davis ..................(Post 9 - Lumpkin County) ..................Term expires October 2013In connection with the election of three Directors, terms to expire October, 2014, scheduled to be held at thismeeting, the following members have accepted nominations for Directors made by the Committee on Nominationsappointed by the Board of Directors of the cooperative pursuant to the bylaws:John H. Bennett, Jr. .................(Post 6 – Cherokee/Bartow counties)Charles R. Fendley ..................(Post 3 - Pickens County)Randall Ponder ......................(Post 1 – Gilmer/Murray counties)RANDALL PONDER, SECRETARYProgram for MeetingOct. 1, 2011• Registration begins 11:30 a.m.• Entertainment 12:30 to 1:30 p.m.—Daily Bread• Call to Order 1:30 p.m.• Invocation• Welcome• Determination of Quorum• Reading of Notice of Meeting• Minutes of Previous Meeting• Unfinished business• New Business• Election of Directors• Reports of Officers, Directors, Committees• Adjourn32H Amicalola EMC Annual Report GEORGIA MAGAZINE