70 YEARS OF SERVICE - Mecklenburg Electric Cooperative

70 YEARS OF SERVICE
Mecklenburg Electric Cooperative
2007 Annual Report

CHAIRMAN & PRESIDENT’S REPORT
70 YEARS of Service ble cost. For the past 70 years, Members,
directors and staff have come and gone
and there has been substantial change in
the faces of your cooperative, as well as
the technology and methods used to provide
you with reliable electric service.
However, despite the tremendous change
since its inception, your cooperative has
been unwavering in its commitment to
provide you, its Members, with the highest
level of customer service.
That commitment is the foundation for
everything we do from the organizational
direction determined by your Board of
Directors, to the processes put in place by
your management team, to the ultimate
execution of those procedures by your
cooperative employees. We all have the
same goal, to bring value to your membership
in the cooperative and make certain
that you are confident that whenever you
flip the switch, the lights will come on.
Our desire to provide you with the electricity
you need to improve the quality of
life in your home, at work, and in your
community, and to do so in a manner that
President,
We are pleased to present to you in the
following pages, the 2007 Annual Report
for your cooperative. The report’s statements
show that Mecklenburg Electric
Cooperative continues to be successful
from both a financial and operational
standpoint and verifies our commitment
to you to operate the organization with
your best interests as our guiding principles.
Your cooperative takes its mission
of keeping the lights on seriously, and we
are proud to report another year of milestones
and growth. Your electric provider
stands as a testament that the cooperative
business model is alive and well and that
an organization formed over 70 years
ago, by the people, for the people, was a
vision that changed life in Southside
Virginia forever.
We would like to wish you all a Happy
70th Anniversary on the many years of
service provided by your cooperative.
Since receiving its charter in 1938, MEC
has fulfilled its mission of keeping the
lights on and providing for the electric
needs of its Members at the lowest possiinstills
pride in your cooperative membership
has been and will continue to be the
guiding force behind all that we do.
With regard to quality customer service,
your cooperative staff is where the proverbial
“rubber meets the road.” We are
pleased to report to you that your cooperative
is staffed with employees who are
dedicated to not only providing high quality
service to you, our membership, but
also to serving their communities as well.
On the job, they are acutely aware of
the impact their responsibilities have on
you and your families. They perform their
duties motivated with that knowledge and
do their jobs efficiently, competently and
most importantly, safely. When outages
occur, your employees work day and night
until power is restored to everyone. In the
harshness of a winter storm ... in the
blackness of night ... in the triple-digit heat
of summer ... they’ll be there, looking out
for your electrical needs, driven by knowing
their efforts make a difference in the
lives of others.
Off the job, you’ll find the same dedication
and commitment in their community
service, and again they are driven by the
desire to make a difference. Our employees
contribute their personal time to many
organizations that raise the quality of life
in your communities. They are working
members of volunteer fire departments
and rescue squads, coaches of Little
League baseball and basketball
teams, they are involved with
schools and youth programs,
they belong to civic clubs, and
they raise and contribute dollars
John Lee
and Chairman
of the Board,
Bobby Conner
2

MEC's board of directors discuss compact fluorescent light bulbs in comparison with the oil lamp of "the good
ol' days." From left: Chairman Bobby Conner of Nathalie, Brandon Hudson of Virgilina, John Waller of Hurt,
David Jones of Bracey, Ben Lee of Emporia, Assistant Secretary Stan Duffer of Red Oak, Donnie Moore of
Chatham, Secretary-Treasurer Henrietta Coleman of Freeman, Vice Chairman Mike McDowell of Vernon Hill,
Bob Jones of Boydton and Franklin Myers of Gasburg.
for the American Cancer Society’s Relay
for Life, United Way and other charitable
organizations. In local churches, they
serve as Sunday school teachers, superintendents,
deacons and committee members.
They hold leadership positions
in various civic, community and governmental
groups. They live and raise
their families in the communities they
serve as both cooperative employees,
and caring citizens.
We are proud of the employees of
Mecklenburg Electric Cooperative;
they are good people, people who are
dedicated and competent and stand as your
organization’s greatest asset. We sincerely
hope you are proud of them too.
While we’ll continue to look to the past
70 years with great reverence, noting the
many milestones, accomplishments and
lessons learned, we have focused our
attention squarely on the future recognizing
the many challenges that face this
industry. The hurdles we faced from the
recent attempt to deregulate the electric
industry in our great state pale in comparison
to the difficulties on the horizon.
Among those challenges are not only
keeping the cost of electricity and its
delivery in check, but also making certain
that there is sufficient electric supply and
that it can be moved to our delivery points
through the aging transmission grid that
serves our nation.
Just like other cooperatives across this
country, we are rolling up our sleeves and
While we'll continue to look to
the past 70 years with great reverence
... we have focused our
attention squarely on the future
recognizing the many challenges
that face this industry.
working hard to find solutions that will
make a difference to you, our Members,
during these difficult times in the energy
industry. In the coming year, we’ll be
looking for proven methods to help you
use energy more efficiently and to conserve
whenever possible. These efforts
will help mitigate the rising cost of electricity
by reducing demand and thus
reduce the generation and fuel needed to
meet what is now a rapidly growing
appetite for electricity. It will also help
protect our environment and assist in lowering
our dependency on foreign sources
for energy.
It is through our supportive membership,
strong leadership and dedicated
employees that we will address and meet
these current and future challenges in the
energy industry. Mecklenburg Electric
Cooperative's tradition of integrity, competence,
and expertise combined with its
commitment to reliability, quality
service and affordability will continue
to be our foundation for the next 70
years.
Thank you for the opportunity to
meet your electric needs and for the
faith and confidence you place in
your cooperative. We sincerely appreciate
the support we receive from all
of our Members; and we never, ever forget
that we are here to serve you. Again, congratulations
on 70 years of ownership and
the ongoing success of your cooperative.
Robert W. Conner, Chairman of the Board
John C. Lee Jr., President & CEO
3

TREASURER’S
REPORT
It is my pleasure to present to you the
Treasurer's Report. As you can see, the
financial statements for the fiscal year
ending December 31, 2007, reflect the
sound status of Mecklenburg Electric
Cooperative.
The Cooperative retains the service of
Goodman & Company, L.L.P., certified
public accountants, to perform an audit of
the corporation’s accounting records. This
audit includes an examination of the
Cooperative’s balance sheets, statements
of revenue and expenses, and remarks
concerning each.
The figures presented in this report are
from the audit report and represent the
consolidated balance sheet. Copies
of the complete audit are on file at the
Cooperative’s office for your review.
This will be my last Treasurer's Report
to you as I am retiring from the board of
directors this year. The opportunity I have
had to serve on the board has been a
rewarding experience. I have gained an
abundance of knowledge pertaining to the
electric industry, MEC, and cooperatives
in general. I have served you with sincere
dedication, and I thank all of you who
made this experience possible.
May God continue to bless
Mecklenburg Electric Cooperative and
the United States of America.
70YEARS of Service
ASSETS
UTILITY PLANT
Electric Plant in Service (at cost) $125,218,902
Construction Work-in-Progress 4,868,215
Less Accumulated Provision for Depreciation (40,105,907)
UTILITY PLANT – NET 89,981,210
INVESTMENTS AND OTHER ASSETS (at cost)
Investments in Associated Organizations 17,738,205
Investments in Economic Development (less current portion) 423,125
Other Investments 1,052,640
TOTAL INVESTMENTS AND OTHER ASSETS 19,213,970
CURRENT ASSETS
Cash and Cash Equivalents 7,929,041
Accounts Receivable 2,961,497
Other Accounts Receivable 590,345
Investments in Economic Development (current portion) 39,504
Materials & Supplies 1,398,799
Other Current Assets 248,012
TOTAL CURRENT ASSETS 13,167,198
DEFERRED DEBITS 1,044,122
TOTAL ASSETS & OTHER DEBITS $123,406,500
LIABILITIES AND EQUITIES
EQUITIES
Patronage Capital $41,568,343
Other Equities 4,460,972
TOTAL EQUITIES 46,029,315
NONCURRENT LIABILITIES
Long-term Debt (less current portion) 64,706,165
Other Noncurrent Liabilities 2,560,604
TOTAL NONCURRENT LIABILITIES 67,266,769
Henrietta J. Coleman
CURRENT LIABILITIES
Long-term Debt (current portion) 2,350,816
Accounts Payable 4,742,078
Consumer Deposits 1,630,092
Accrued Taxes 176,361
Other Current and Accrued Liabilities 1,066,452
TOTAL CURRENT LIABILITIES 9,965,799
DEFERRED CREDITS 144,617
TOTAL LIABILITIES AND EQUITIES $123,406,500
For the year ending December 31, 2007
4

2007 SOURCES OF REVENUE
RESIDENTIAL – 69 PERCENT
Homes, churches, clubs, and community houses provided 69
percent of MEC’s revenue.
LARGE COMMERCIAL – 14 PERCENT
Commercial and industrial accounts whose annual load average
is 50kW or more per month provided 14 percent of the revenue.
SMALL COMMERCIAL – 11 PERCENT
Business accounts whose annual load average is less than 50
kW per month provided 11 percent of the revenue.
PUBLIC AUTHORITIES – 6 PERCENT
Schools, street lighting, and other community accounts
provided 6 percent of MEC’s revenue.
2007 EXPENSES & MARGINS
PURCHASED POWER – 67 PERCENT
Purchased Power is your Cooperative’s largest expense item
and is the cost of getting the electricity to our substations from
the suppliers who generate it.
OPERATIONS & MAINTENANCE – 21 PERCENT
This includes construction and maintenance costs of lines, as
well as trucks and equipment that the employees use in their
work. It also includes office equipment, buildings, salaries, and
other operational expenses.
DEPRECIATION – 6 PERCENT
Equipment, buildings, and lines have a “quantity of usefulness;”
and day by day as they are used, the “quantity of usefulness” is
consumed or expires.
INTEREST – 5 PERCENT
This is interest we paid on long-term debt – money borrowed
from the Rural Utilities Service, Federal Finance Bank, or the
Cooperative Finance Corporation to finance construction of lines
and substations.
MARGINS – 1 PERCENT
Margins represent the amount of money taken in by the
Cooperative over and above expenses. Other organizations call
this “profit.” Since we are a nonprofit organization, the margins
are reinvested to build lines. This helps decrease the amount of
money that must be borrowed. The margins are later returned to
the members in the form of Capital Credits.
5

The Past ...
"Brothers and sisters, I want to tell you this.
The greatest thing in the world is to have the
love of God in your heart, and the next best
thing is to have electricity in your house."
– A farmer giving testimony in a rural church in the early 1940s
Before electricity, this was a familiar
sight in everyone's backyard. The
Johnny House, Privy, the Outhouse,
Mary Jane, the Garden House, the
"la-la," the John, "Visiting Aunt Susan"
... what did your family call it?
Photo courtesy of Betty Hughes Hicks of Ebony
"Wash day" before electricity
Hauling water from the spring or well ... the bending – hours of bending –
over the rub board ... her hands raw and swollen from scrubbing with lye
soap and wringing the water out of the clothes ... A farm wife did this for
hours on end – while a city wife did the laundry by pressing a button on
her electric washing machine.
Photo courtesy of NRECA
Early line crews were often made up
of farmers who would join cooperatively
to get the job done. Construction
of lines was sometimes primitive. But
after 1935, REA developed assemblyline
methods for constructing lines
with uniform procedures and standardized
types of electrical hardware.
Photo courtesy of NRECA
Some of MEC's employees and the fleet of vehicles in 1954.
6

MEC employees Bug Carter and John Crawley in the
early years
Photo courtesy of MEC retired employee John Crawley
Mecklenburg Electric Cooperative’s office moved from
Boydton to “the Butler building” in Chase City in
December 1939. Business was conducted at this location
for more than 10 years. In June 1950 it moved to its present
location on Highway 92 West.
Photo courtesy of MEC employee Glen Gillispie
Pictured in the 1940’s (from left) are MEC employees E. D.
Edwards, Ralph Barwick, Norman Strickland, Jeanette
Smith, Garnette Smith, Floyd Ramsey and Edd Hart.
One of Mecklenburg Electric's first line crews
Board of directors in 1950
(from left): J. L. Read,
Secretary-Treasurer W. H.
Copley, R. A. Owen, Vice
President H. L. Hardie,
Attorney Irby Turnbull, C. C.
Clary, President W. F.
Lawson, P. E. Weaver, J. W.
Fitzgerald, L. B. Hudson
with Manager J. E. Smith.
7

The Present ...
Each year we provide scholarships and
incentive programs to encourage students
to strive for academic excellence.
Photo courtesy of Alan Dalton Photography
Mecklenburg Electric Cooperative is involved in and supports numerous
programs that benefit the communities throughout our service territory in
nine counties of Southside Virginia.
MEC is proud to represent the interests of its members
by informing political leaders of upcoming
issues that will have an impact on rural Americans.
Dedicated employees are "on call" 24 hours a day, 7 days a
week to provide service in case of emergency.
Members of the Cooperative are also
owners of the business. They meet
annually to elect directors, hear reports,
and take action on other business.
MEC is among a network of
electric cooperatives that assist
each other in times of major
outages. Pictured left is the
Emporia office when approximately
100 workers came from
surrounding areas to help us
restore power after Hurricane
Isabel. Years later we were fortunate
to miss major damage
from Hurricanes Rita and
Katrina and sent crews to
Mississippi and Louisiana to
assist with their rebuilding and
restoration of power.
8

GRETNA DISTRICT
606 Vaden Drive
P. O. Box 617
Gretna, VA 24557
(434) 656-1288
(800) 989-1289
Fax: (434) 656-9200
EMPORIA DISTRICT
1413 Pleasant Shade Drive
P. O. Box 427
Emporia VA 23847
(434) 634-6168
(800) 989-0776
Fax: (434) 348-7100
CHASE CITY DISTRICT AND HEADQUARTERS
11633 Highway 92, P. O. Box 2451, Chase City, VA 23924
(434) 372-6200, (800) 989-4161, (434) 372-6100; Fax: (434) 372-6201 or (434) 372-6101
9

70YEARS of Service
CELEBRATING OUR 70TH ANNIVERSARY
Mecklenburg Electric Cooperative (MEC) was chartered March 11, 1938, by a small group of Mecklenburg County residents driven
by the desire to advance the position of agriculture, to enrich the life of the community, and to free area men and women from
the heavy drudgery of the home and farm. This electric system was erected by the farmers and their neighbors to whom it supplied
the limitless service of electricity. Soon the service area extended from Pittsylvania County, east, to Sussex County. Later district
offices were added in Gretna and Emporia.
Today MEC is still "Owned By Those We Serve." Our mission is the same as it was 70 years ago; and through our distinguished
leaders and dedicated employees, we have overcome many obstacles to provide reliable electricity at the lowest possible cost.
We have grown to become more than just an electric utility. We are an integral part of the community. We are here for each of our
members as well as the communities in which they live.
MEC Managers Through the Years
Jack Smith
1938-1977
Ronnie Johnson
1977-1979
Edd Hart
1979-1981
John Bowman
1981-2007
John Lee
Present
Look How We’ve Grown!
1938 2008
Number of Services 322 32,881
Number of Substations 2 23
Miles of Line 136 4,354
Number of Full-time Employees 27 132
Number of Vehicles in Fleet 3 92
Utility Plant $136,218 $89,981,210
Avg. Residential Monthly Usage (KWH) 27 992
10

MECKLENBURG ELECTRIC COOPERATIVE HIGHLIGHTS
March 11, 1938....................The State Corporation Commission approved a charter.
March 22, 1938..............The first Board of Directors meeting was held at Boydton. Directors were L. M. Crews,
President; W. T. Bracey, Vice President; W. H. Copley, Secretary-Treasurer;
H. C. Bobbitt; W. F. Lawson; J. D. Brankley; and B. J. Montgomery.
J. E. Smith was appointed project superintendent (first employee).
Summer 1938 ................The first substation was built near South Hill on the Jessup farm; 75 KVA connected
to 2,300 volt circuit off of Virginia Public Service’s South Hill Substation.
October 1938 ................First lines of the Cooperative were energized when the South Hill Substation was put
into operation. A celebration of this event was held at Watkins Warehouse in South
Hill with REA Administrator John Carmody as guest speaker.
March 21, 1939..............The first Annual Meeting was held in Boydton.
June 1939 ..............................Our charter was amended to include Greensville, Southampton, and Sussex counties.
August 1939 ........................MEC energized the 1,000th electric account.
October 1946........................MEC subscribed to the statewide paper, Rural Virginia, for its members.
(This was the predecessor of Cooperative Living magazine).
April 1947 ..............................MEC reached $1 million in utility plant.
June 1950 ..............................The Headquarters building, one mile west of Chase City, was completed.
November 1952 ..................MEC received its first power from John H. Kerr Dam.
January 1957 ........................The new Gretna Office was completed.
June 1960 ..............................The first Capital Credits were returned to the members.
August 1961 ........................The new Emporia office was completed.
June 1964 ..............................The Annual Meeting Pavilion was completed.
December 1968 ..................Capital credits of $1 million to date have been returned to members.
November 1977................R. L. Johnson was appointed executive vice president and general manager.
September 1979..................Edd Hart was appointed executive vice president and general manager.
September 1981..................John Bowman was appointed acting general manager.
March 1996 ..........................The Clover Power Station entered full commercial operation.
July 2003 ................................Total active services reached 30,000 accounts.
October 2003........................MEC received Business of the Year Award from the Chase City Chamber of Commerce.
December 2004 ................Mecklenburg Electric Cooperative was the first electric utility to be featured on
National television on Terry Bradshaw's "Pick of the Week" program.
December 2004 ................Capital credits of $20 million to date have been returned to members.
January 2008 ........................John C. Lee, Jr., was appointed president and CEO.
11

70
YEARS of Service
Your Touchstone Energy ® Partner
2008 ANNUAL MEETING OF THE MEMBERS
Wednesday, June 18, 2008
MEC Pavilion, Chase City
5:00 p.m. Registration begins
Meal served
6:20 p.m. Early Bird Drawing (winner must acknowledge presence)
6:30 p.m. Business meeting begins
Call to Order – Bobby Conner, chairman
Presentation of Colors
The National Anthem
Pledge of Allegiance
“God Bless America”
Invocation – Donnie Moore
Introduction of Guest Speakers – John Lee
Guest Speakers
Welcome – Bobby Conner
Introduction of Board of Directors – Mike McDowell
Recognition of Special Guests – Franklin Myers
Business Session
Election of Directors
Adjournment
Awarding of Door Prizes (winner must acknowledge presence)
SALUTE TO OUR MILITARY AND THEIR FAMILIES
We would like to take this opportunity to salute MEC employee Robert
Andrews who has been called back to active duty with the U. S. National
Guard and is in Iraq. We salute all men and women in the Army, Marine
Corps, Navy, Air Force, and Coast Guard and their families for sacrificing
to keep us safe and protect our freedoms. They make America what it is,
The Land of the Free and the Home of the Brave. We are grateful for
their courage and determination and to them we say ...
Thank you.
“To have the best society in the world and to take it for granted, is a
terrible thing. Don’t take it for granted. It can be changed overnight.
It’s a daily process, a daily fight to keep it wonderful.”
– Col. Yakov Z. Ginzburg, Navy Doctor and WW II Veteran