Annual Report 2018_FINAL

Empowering Lives with Hometown Service
82
YEARS
GRAND VALLEY RURAL POWER LINES, INC.
A N N U A L R E P O R T
1936 - 2018

GEARED TO TAKE ON CHALLENGES
A message from our CEO and Board President
Delivering electricity has never been an easy undertaking. Big capital investments are required. The day-to-day work can be backbreaking
and dangerous. Electric utilities are called upon to distribute a commodity that is essential to our way of life. Industries,
businesses and homeowners require affordable electricity that is available around the clock at the flip of a switch. This is a big
task, and it is even bigger for small utilities serving rural consumers spread across the kind of rugged terrain we have here on
Colorado’s Western Slope. From the far reaches of Unaweep Canyon to Roan Creek; from Collbran and the Grand Mesa to Glade
Park; from Kannah Creek to Douglas Pass – Grand Valley Power takes on the challenge to deliver power to all our consumers.
As tough as this job has been, the challenges seem to grow with each passing year. Consumer expectations continue to evolve.
Providing reliable and affordable electric energy is just the starting point. Our consumers want something more than a traditional
utility. Renewable energy must be integrated into our power supply mix. At the same time, we must be supportive of traditional fuel
resources that are an integral part of the Western Slope economy. The tools and toys that technology provides today’s consumers
require greater electric reliability. Consumers want more information about their power consumption, and they don’t want to have
to wait for it. Our members want us to deliver power in a way that makes their lives better. More than that, they want us to make
our communities better.
As a consumer-driven cooperative Grand Valley Power is geared to take on these challenges. We use a tried-and-true approach for
dealing with these ever-changing challenges: we stick to our roots, ever mindful that we are here to do what is best for our local
members and consumers. This is second nature to us, as all our employees and all the directors that serve on our governing board
call Mesa County home. This is evident in a simple but powerful mission statement that was developed by a team of Grand Valley
Power employees and directors last year: Empowering Lives with Hometown Service.
“Empowering Lives” covers a lot of ground. Literally, it can be interpreted to mean that we provide power for our members. At the
most basic level this is what we do. Expand the interpretation a little more and it supports the idea that the energy we provide
empowers our members by enabling them to lead more productive, meaningful and happy lives. Taken a step further, and the
phrase encompasses the active role Grand Valley Power plays in the communities it serves. Again, we strive to make our members
lives better by making their communities better.
We set out to do this by focusing on “Hometown Service.” Again, this is central to our mission. This phrase conjures up the image
of linemen braving the elements when Mother Nature wreaks havoc on our electric distribution system. While they are the face of
the cooperative, it takes more than these hard-working linemen; the folks who answer the phones, serve as dispatchers, maintain
the warehouse, design and engineer our infrastructure, and provide all kinds of technical, financial and administrative support for
our team all play a part in providing this Hometown Service.
And don’t forget the board of directors that plays such a critical role for our cooperative. They are Grand Valley Power members
and consumers just as each of you are. They face the same day-to-day challenges that the other members do. They are accessible
to all the members, and they want to know where you stand on the important issues confronting us. All these folks – directors and
employees – live right here in Mesa County. That, in and of itself, provides a lot of value to our members and consumers.
To help us maintain our focus on our mission, the employees and directors of the cooperative identified four guiding principles. To
track our overall performance, it is helpful to examine how we fared in sticking to these guiding principles:
Tom Walch
Chief Executive Officer
Rod Martinez
President, Board of Directors
We are committed to the safety of our
workforce and the general public. We
continue our efforts to build a culture of
safety. We completed the Rural Electric
Safety Achievement Program (RESAP).
This is a comprehensive, no-holdsbarred,
review of all facets of our facilities
and operations by independent experts.
We go through this process every three
years, and our goal is to improve every
time. We continue to provide electrical
safety demonstrations for middle and
elementary grade students, as well
as training for contractors who work
near our high voltage lines. We are also
continuing to step up our efforts to
protect against cybersecurity threats.
In 2017 Grand Valley Power was one
EMPOWERING LIVES WI

TH HOMETOWN SERVICE
of a select group of cooperatives chosen to participate in a program co-sponsored by the Department of Energy and
the National Rural Electric Cooperative Association (NRECA) to develop a program to help small to mid-size electric
cooperatives deal with ever-growing cyberthreats.
We strive to do the right thing, holding true to our values and principles. We remain committed to refunding credits
to Grand Valley Power members based on their patronage over the years. In 2017 over $1.3 million was returned to our
members. We also do the right thing in protecting the environment. Almost 31% of the power we purchased from Xcel
Energy came from renewable resources – one of the best marks around. Our renewable portfolio also includes enough
community solar generation to support the needs of about 35 Grand Valley Power households who have qualified for our
ground-breaking low-income community solar project. Holding true to our values and principles also leads us to share our
resources with the community in ways that make it stronger. Our robust scholarship program is one way that we do this,
awarding over $170,000 to graduating high school seniors from Grand Valley Power households since 1996. Our leadership
in supporting the HopeWest Hope Blooms project and the Eureka! McConnell Science Museum are other examples.
We seek to find new and better ways to serve our members and communities. Serving our members requires that we
communicate with them. We are changing and expanding how we do this, using social media platforms. In the last quarter
of 2017 over 21,000 different Facebook users viewed Grand Valley Power Facebook posts. When you consider that we
have only 17,000 members, this is remarkable. In similar fashion, we reached over 39,000 Twitter users.
2017 saw Grand Valley Power take the first steps toward a significant upgrade of our metering system. The initial phase
of this upgrade will begin later this year with the installation of new equipment for about 800 consumers. When fully
implemented over the course of the next two years, the upgrade will save money, and significantly enhance service and
reliability. Stay tuned to upcoming issues of your Colorado Country Life magazine for more details about this exciting new
project!
We are dedicated to delivering value to all we serve. Ultimately, delivering value returns us to our core business:
providing affordable, reliable power. If we don’t do this, we are not empowering lives, and we’re not providing the level of
service our members expect. 2017 results indicate that Grand Valley Power met these objectives:
• Margins topped $2.1 million, even though winter power sales were down considerably due to mild weather.
• Equity continued to grow, closing the year at 36.61 percent.
• Service reliability measured by average outage minutes and service availability ranked with the leaders among
cooperatives in the state of Colorado and across the nation.
• We continue to provide “five-star” customer service, with 95 percent of consumers responding to
customer-contact follow-up surveys rating Grand Valley Power employees five on a five-point scale.
Best of all, our cooperative continues to provide these impressive results without members’ power costs increasing. Our
rates remain lower than average when compared to other Colorado cooperatives and have not increased since 2011.
Achieving results like these does not happen by accident. Careful planning – by the board and management staff – is
essential. So is the attention to detail exercised by frontline team members in executing these plans. The mission and
guiding principles enumerated here have been guiding our cooperative for decades.
Our home-grown GVP
board of directors
is accessible and
accountable. All directors
take their responsibility
very seriously. Our
hometown employees
take great pride in
providing exceptional
service. We all understand
that Grand Valley Power
has an important role
to play in our members’
lives and in our local
communities.
BOARD OF DIRECTORS
From left to right: Sylvia Spangler, Bill Rooks - Vice President, Don McClaskey - Secretary/Treasurer, Bob Saunders,
Jim O’Connor, Carolyn Sandeen-Hall, Dennis Haberkorn, Janie VanWinkle, Rod Martinez - President

Grand
Valley
Power
Scholarship
Recipients
Top Row (left to right): McKenna Young, Grace Weiland, Nolan Quinn. Bottom Row (left to right): Kaylee Ferrell, William Vrooman, Kersi Latham

Jack broughton - Colorado
Mesa University Scholarship
Recipient
SERVICE AWARDS
Pictured above: Rebekah Nordstrom
15 Years
Karen Bain
Mike Gardner
10 Years
Trevor Lettman
Nick Reimer
Dan Reid
Sarah Wheeler
5 Years
Preston Dillingham
Tom Holman
Service Planner
40 years
Perry Rupp
Service Planner
35 years

F I N A N C I A
L
STATEMENT OF OPERATIONS AND PATRONAGE CAPITAL
2017 2016
TOTAL OPERATING REVENUE
Electric Energy Revenue $31,855,532 $31,659,716
Other Operating Revenue 283,251 291,788
Total Operating Revenue $32,138,783 $31,951,504
OPERATING EXPENSES
Cost of Purchased Power 17,753,846 17,982,948
Operating Expenses - Transmission 49,084 33,307
Operating Expenses - Distribution 2,524,015 2,169,344
Maintenance of Distribution Plant 858,480 904,232
Accounting and Collection Expenses 1,256,097 1,229,473
Other Customer Expenses 375,027 376,953
Administrative and General 2,408,478 2,246,005
Depreciation 2,439,911 2,397,149
Taxes 772,233 705,429
Interest on Long-Term Debt 1,612,049 1,673,902
Interest Expense - Other 691 769
Other Deductions 218,952 225,982
Total Operating Revenue Deduction $30,268,863 $29,945,493
ELECTRIC OPERATING MARGIN 1,869,920 2,006,011
NON-OPERATING MARGIN
Interest Income 49,889 56,172
Other Non-Operating Income 15,508 11,204
Total Non-Operating Margin 65,397 67,376
Cooperative Capital Credits 187,511 213,873
Net Margins for Period $2,122,828 $2,287,260
PATRONAGE CAPITAL at Beginning of Year 25,935,748 25,275,349
Subtotal 28,058,576 27,562,609
Less Retirement of Capital Credits (1,342,479) (1,626,861)
PATRONAGE CAPITAL at End of Year $26,716,097 $25,935,748
2017
YEAR IN REVIEW
BOARD OF DIRECTORS,
AND EMPLOYEES OF
GRAND VALLEY POWER
ADOPT MISSION
STATEMENT
JAN
FINAL PHASE OF LOW-
INCOME COMMUNITY
SOLAR PHASE IS
ENERGIZED. OVER 30%
OF OUR ENERGY MIX IS
RENEWABLE
LOCAL STUDENTS
ACROSS OUR
COMMUNITIES
RECEIVE $19,500 IN
SCHOLARSHIPS FOR
FURTHERING EDUCATION
APR MAY JUN
TEAM GVP RAISES
OVER $12,000 FOR
LOCAL ST. BALDRICK’S
FOUNDATION
CAMPAIGN

STATEMENTS
BALANCE SHEET
ASSETS 2017 2016
UTILITY PLANT
Electric Plant $90,821,501 $88,636,302
Construction Work in Progress 2,493,787 1,255,623
93,315,288 89,891,925
Less: Accumulated Depreciation (25,658,611) (23,958,296)
Total Utility Plant 67,656,677 65,933,629
INVESTMENTS 1,527,524 1,422,548
CURRENT ASSETS
Cash and Cash Equivalents (34,129) 1,424,366
Temporary Cash Investments -0- -0-
Receivables (less provisions for uncollectable
accounts of $70,000 at 12/31/17 and
12/31/2016) 3,916,937 4,745,050
Materials 2,181,883 2,124,775
Other Current Assets 120,491 66,277
Total Current Assets 6,185,182 8,360,468
Deferred Charges 1,026,381 1,220,648
TOTAL ASSETS $76,395,764 $76,937,293
EQUITIES AND LIABILITIES
CAPITAL EQUITIES
Patronage Capital $26,716,097 $25,935,748
Other Equities 1,454,761 1,410,816
Accumulated Comprehensive (loss) (203,400) (47,500)
Total 27,967,458 27,299,064
LONG-TERM LIABILITIES
Mortgage Notes 40,348,674 41,976,140
Less: Current Maturities (1,577,072) (1,035,000)
Total Long-Term Debt 38,771,602 40,941,140
OTHER LONG-TERM OBLIGATIONS 773,500 622,400
CURRENT LIABILITIES
Current Maturities of Long-Term Debt 1,577,072 1,035,000
Accounts Payable 1,804,616 2,069,947
Notes Payable 350,000 -
Accrued Interest Payable 83,040 87,451
Accrued Taxes 855,014 793,199
Other Current Liabilities 2,151,245 2,041,824
Total Current Liabilities 6,820,987 6,027,421
DEFERRED CREDITS 2,062,217 2,047,268
TOTAL LIABILITIES & CAPITAL $76,395,764 $76,937,293
GVP IS SELECTED TO PARTICIPATE IN
THE NATIONAL RURAL COOPERATIVE
CYBER SECURITY CAPABILITIES
PROGRAM (RC3) FOCUSED ON
DEVELOPING SOUND CYBER
SECURITY POLICIES
BOARD OF DIRECTORS
APPROVES DEBT
REFINANCE WITH
CFC, A NATIONAL
NONPROFIT FINANCE
COOPERATIVE
JUL AUG SEP DEC
RECORD ATTENDANCE
AT THE ANNUAL
MEETING
VENDORS ARE SELECTED
FOR METERING EQUIPMENT
UPGRADE AND ORCHARD
MESA SUBSTATION
EXPANSION

NOTICE OF ANNUAL MEETING
PRSRT STD
US POSTAGE
PAID
GRAND JCT.
CO
PERMIT 1
By order of the Board of Directors of Grand Valley
Rural Power Lines, Inc., notice is hereby given that the
annual meeting of the organization’s shareholders will
be held at Colorado Mesa University in the University
Center Meyer Ballroom, Grand Junction, County of
Mesa, Colorado on Thursday August 2, 2018 at 6:30
p.m., for the purpose of electing a Board of Directors
as provided by the bylaws and the transaction of all
business which may be properly brought before the
annual meeting.
The annual meeting of Grand Valley Power will
be held on August 2, 2018 with registration
starting at 5:30 p.m. in the Meyer Ballroom
of the University Center of Colorado Mesa
University.
The map below shows the parking garage
closest to the event location. Access to the
garage is off 12th Street near Kennedy Avenue.
Suggested travel is south on 12th Street to the
garage entrance. FFA students will be on hand to
assist with parking and meeting questions.
845 22 Road
Grand Junction, CO 81505
PROGRAM AND AGENDA
5:30 p.m. - 6:30 p.m. Registration & Dinner
6:30 p.m. - 8:00 p.m. Business Meeting
Order of Business
1. Quorum and shareholder attendance
2. Notice of meeting and proof of publication
3. Approval of previous year minutes
4. CEO and President reports
5. Election
6. Unfinished business
7. New business
8. Adjournment
Door prize drawings will follow the
business meeting.