2019 Annual Report

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View the 2019 Grand Valley Rural Power Lines Annual Report

83

83 Years | Annual Report

Grand Valley Rural Power Lines, Inc.

1936 - 2019


BY

THE

GVP NUMBERS

$98 MILLION

INFRASTRUCTURE IN

MESA COUNTY

$1 Million

CASH CREDITS RETURNED

TO MEMBERS IN 2018

co•op•er•a•tive [adj]

working or acting together

willingly for a common

purpose or benefit.

156,739

TIMES OUR SOCIAL MEDIA

POSTS WERE SEEN

18,743

METERS WE SERVE

1,673

MILES OF ENERGIZED LINE

43

DEDICATED

EMPLOYEES

5

STAR CUSTOMER SERVICE RATING


Board of

directors

Rod Martinez

PRESIDENT

Carolyn Sandeen-Hall

VICE PRESIDENT

Dennis Haberkorn

SECRETARY/TREASURER

Sylvia Spangler

DIRECTOR

Bob Saunders

DIRECTOR

Lighting the way

MESSAGE FROM CHIEF EXECUTIVE OFFICER AND BOARD PRESIDENT

Back before the days of

candles and fuel burning

lamps, the simple act of

producing light was incredibly

labor intensive. A report

published by the Cato Institute’s

Human Progress Project

noted that producing 1,000

lumen hours of light required

our ancestors to gather and

chop wood 10 hours a day

for six days. This effort would

produce about 54 minutes

of dim, flickering, smoky light

– about the same amount

Rod Martinez

Tom Walch

Board President Chief Executive Officer

of light generated by a clean,

efficient modern light bulb.

The light bulb – and central station delivery of electric power – changed everything.

When Grand Valley Power was formed 83 years ago, 60 hours of work could produce

five months of clean, even lighting. In today’s fast-paced world, it is difficult to

understand how transformative this was. Back then cooperatives like Grand Valley

Power were commonly referred to as the “light company.” The light and power our

fledgling hometown organization produced for lower valley farmers was truly empowering.

More than eight decades later, our team members continue to work to

empower and enrich the lives of all our members and consumers.

the right thing with our commitment to returning cash credits to our members, once again topping the $1 million dollar

mark with credit retirements. In the environmental arena, we remain one of the leaders among cooperatives in the state

of Colorado and across the country, with over 30 percent of the energy delivered to our consumers coming from renewable

resources. Earlier this year, Grand Valley Power adopted one of the most aggressive clean energy targets in the

country, aiming for 60 percent clean energy by 2030.

Grand Valley Power’s 2018 financial and operational results show that we are dedicated to delivering value to

all we serve. Our utility plant expanded significantly in 2018, and we now have almost $100 million invested in Mesa

County. This kind of growth imposes financial challenges. Even so, we finished the year with margins exceeding budget

projections to go along with a healthy 35 percent distribution equity level. From a reliability standpoint, our robust distribution

system and diligent efforts by our crews produced reliability results that rank in the top three among Colorado

cooperatives. When it comes to service, it’s tough to improve on the record our workforce produces. Over 90 percent

of consumers surveyed rank the service provided by our linemen, service planners and customer service representatives

with five stars – the highest ranking available. Best of all, we have achieved these results with rates remaining flat. Even

though we don’t have the economies of scale or the density or commercial and industrial load that typically helps cooperatives

operate more efficiently, when compared with other Colorado cooperatives, Grand Valley Power’s rates remain

below average across the board.

What does the future hold in store for Grand Valley Power? We know that the pace of change will continue to

accelerate. The sixty hours of labor that once produced 54 minutes of light will now generate the same amount of light

for 52 years. As technology advances, more changes will be on the way. Consumers and lawmakers will demand more

than just safe, affordable and reliable energy – it will have to be clean as well. Whatever the changes, the Grand Valley

Power team is ready to take them on. From our accountable, member-elected board of directors to hometown employees

dedicated to providing exceptional service – we have the pieces in place to ensure that we will continue to empower

and enrich the lives of our hometown members.

Grand Valley Power presents

Don McClaskey

DIRECTOR

Bill Rooks

DIRECTOR

Janie VanWinkle

DIRECTOR

Jesse Mease

DIRECTOR

Gregg Kampf

ATTORNEY

How do we do this? The emphasis on hometown service that started here

in 1936 continues to this day. We’re governed by democratically elected directors

who also happen to be your friends and neighbors. Our employees aren’t just passing

through – they call Mesa County home, just as you do.

We focus on key foundational principles. For example, everyone on our

team knows that we are committed to the safety of our workforce and the general

public. In 2018, this produced a blemish-free safety record, with no lost time

accidents and no Occupational Safety and Health Administration recordable incidents.

It produced ongoing efforts to educate folks in our communities about safety

issues associated with the delivery of electricity. Take a minute to review some of

the pictures and articles in this report that highlight our stellar safety performance

and some of our outreach activities.

The report also reflects how we seek to find new ways to serve our members

and communities. Our deployment of enhanced meters will enable you to access

energy usage information faster than ever before. This new tool will allow us to

communicate with you by text message or email regarding outages. It also facilitates

a prepaid billing program that will give consumers direct control over how they use

electricity. Just as importantly, the operating efficiencies of our new metering system

will help control costs, for the benefit of our members.

Our support of scholarship and community programs illustrates how we

strive to do the right thing, holding true to our values and principles. When

Grand Valley Power and its team members invest their time, talent and dollars in

these programs, it’s not for public relations purposes. It’s because we understand

the importance of these contributions here in our hometowns. We’re also doing

2 0

1 9

Raffle prizes

Free gifts

& Dinner

Registration

at 5 :30 p .m.

open

ANNUAL MEETING

free dinner

free parking

One of three ways:

Special Performance By

Colorado Mesa University

August 8, 2019

MAIL in your RSVP card (inside this report),

ONLINE at gvp.org/RSVP,

or CALL (970) 242-0040.

PEGGY

MALONE

Entertainment starts at 6 p.m.

RSVP TODAY!


COMMITTED TO

SAFETY

Safety is a key ingredient in our cooperative - both for our employees and the general public. We

provide comprehensive safety training and education for our employees, whether they’re working

in the field or in the office. Emergency response training such as CPR, first aid and pole-top rescue

exercises are just part of our critical curriculum. For our communities, we provide materials that

suit all ages and electric demonstrations that provide important lessons about the dangers of

electricity. GVP participates in multiple events each year which shines the light on electrical safety,

including the Mesa County Safety Fair, Plateau Valley Safety Day and Sherwood Park Kite Day.

NEW & BETTER WAYS

TO SERVE YOU

Hourly Usage

It’s energy your way! With our enhanced meters,

you’re able to access your energy usage faster than

ever before. Your SmartHub account will detail

monthly, daily and hourly use so that you can make

smarter energy choices and save money. Visit gvp.org/

SmartHub today for more details.

A SmartHub account is required.

Outage Alerts

You’ve asked for it and we delivered. Now, through your

SmartHub account you can elect to have outage alerts

sent to you by text message or email. We’ll notify you

if your service is interrupted and when it is restored.

A SmartHub account is required.

This program will be available beginning fall of 2019.

GVP Lineman, Scott Bradley (left) and Don Burbridge (right), conduct an electrical safety demonstration to a

group of young students. Each year, GVP teaches over 1,800 kids and adults about safety around power lines.

The demonstrations are given to schools, groups and businesses in the Grand Valley.

ZERO INCIDENTS,

NO LOST TIME ACCIDENTS OR

OCCUPATIONAL HEALTH

AND SAFETY ADMINISTRATION

RECORDABLE INCIDENTS

IN 20180

Pictured right: CareFlight pilot, Pemba Sherpa (left) visits our office to train Grand

Valley Power employees about best practices when calling CareFlight for assistance

in medical emergencies. CareFlight is a joint venture between Montrose Memorial

Hospital and Grand Junction’s St. Mary’s Hospital, which provides critical medical

transportation between facilities and from scenes to hospitals.

E

Prepaid Billing

No deposits. No monthly bills. No late fees.

Sounds great, right? We’re bringing more

energy choices to you with our new prepaid

billing program. The program is similar to

purchases you make everyday - food for your

family, gasoline for your car - which you pay

for when you use it. We alert you when your

account gets low. For more information, visit

gvp.org/Prepay.

A SmartHub account is required.

This program will be available beginning fall of 2019.

F

@GVRuralLines

We use Facebook and Twitter to post

information on how to become more energy

efficient, tips on safety and to inform

members about special events and activities

throughout the year. Additionally, during

adverse weather, these sites provide a

channel to deliver valuable communications

on storm preparation details, outage

information and restoration updates. To

receive Grand Valley Power updates simply

like us on Facebook and follow us on Twitter.

Access these features

on SmartHub

Scan the QR code or visit

gvp.org/SmartHub to get started!


Scholarships &

Youth Tour

Since 1996, Grand Valley Power has awarded over

$174,000 to students who are continuing their education,

and has sponsored youth leaders to attend the annual

Washington, D.C., Youth Tour.

Education and training is a key ingredient for our future

and we provide these scholarships and experiences to

further expand the horizons of our local youth.

Community Focused

he idea of community involvement is so engrained into what Grand Valley Power does, that it became our mission statement: Empowering Lives with

T

Hometown Service. It’s more than just safe, reliable and affordable power we provide. It’s taking an active role in all our communities. GVP is a member of

the chambers of commerce within its service territories and the Grand Junction Economic Partnership. We support education and leadership opportunities

each year, by providing over $20,000 in scholarships and sponsoring young leaders to attend the Washington, D.C., Youth Tour and Cooperative Leadership

Camp in Steamboat Springs, Colorado. GVP also supports multiple local organizations, including the Eureka! McConnell Science Museum, HopeWest, Glade

Park Movies Under the Stars, Rocky Mountain PBS, Mesa Mall Safety Fair, St. Baldrick’s Foundation, Collbran Job Corp and more. Since employees live here

too, many take part in personal volunteer efforts as well. Community engagement is a year-round effort focused on those most important to us - YOU.

This year, we’re awarding $22,500 in scholarship awards

and youth leadership opportunities to local students.

Congratulations to all the 2019 recipients!

Jack Broughton -

Colorado Mesa

University Scholarship

TyLee

Brown

$2,000 scholarship

(renewable)

Washington, D.C., Youth

Tour Award

Izzy

Mease

$2,000 value

Grand Valley Power Scholarship

Jeron

Walck

$1,500 scholarship

Lauren

Amos

$1,500 scholarship

Kia

Holton

$1,500 scholarship

Makayla

Moran

$1,500 scholarship

Peiten

Barton

$1,500 scholarship

Kassidy

Wilkerson

$1,500 scholarship

Western Colorado Community College Scholarship

Glow Halloween

Wyatt

Bramwell

$1,500 scholarship

Western Colorado Community College

Electric Lineworker Scholarship

Jace

Sinks

$2,000 scholarship

The Fruita Chamber of Commerce Parade of Lights, sponsored by Grand Valley Power, is

just one of the many events we support throughout the year. In 2018, we received Santa

Claus’ “Best of Show” for our “Santa’s Stables” float [pictured above].

This year, we hosted a member

appreciation event surrounding

Halloween safety for our

communities. We decked out

the lobby with ghoulish fun and

provided plenty of glow sticks

(and cupcakes) for all ages!

Watch out for this year’s

Halloween event in October!

Visit our Facebook and Twitter

page for updates.

Pictured above: A group of young kids pick up

their safety glow sticks before they head out for

trick-or-treating.


DELIVERING VALUE

In today’s world, so many aspects of our lives depend on electricity. Grand Valley Power is proud

to report that compared with other cooperatives in Colorado, we are in the top three with lowest

instances of outages, both in duration and frequency. The integrity of our electric system plays a major

factor in the level of reliability you receive from the cooperative. We are always planning for your future

electric needs by evaluating our current system, anticipating

future growth, and working with our energy suppliers to ensure

Top 3

they have adequate generation capacity to meet the future

electric load demand on our system. We pride ourselves on

maintaining a balanced and diverse generation portfolio that

is over 30% clean, renewable energy. Even more, we pride

ourselves on affordable power. Since 2011, GVP’s electric rates

have remained flat. The most recent Colorado Association

of Municipal Utilities electric rates survey show our average

residential bill for 700 kWh is less than $100 per month.

IN ELECTRIC

SERVICE

RELIABILITY

*U.S.. ENERGY INFORMATION ADMINISTRATION - 2017 DATA

SAIDI W/ MAJOR EVENTS MINUS LOSS OF SUPPLY

Financial Statements

BALANCE SHEET

ASSETS 2018 2017

UTILITY PLANT

Electric Plant $97,434,555 $90,821,501

Construction Work in Progress 1,405,187 2,493,787

98,839,742 93,315,288

Less: Accumulated Depreciation (27,323,127) (25,658,611)

Total Utility Plant 71,516,615 67,656,677

INVESTMENTS 1,667,826 1,527,524

CURRENT ASSETS

Cash and Cash Equivalents 162,586 (34,129)

Temporary Cash Investments 1,120,411 -0-

Receivables (less provisions for

uncollectable

accounts of $70,000 at 12/31/18

and 12/31/2017) 4,273,441 3,916,937

Materials 2,374,847 2,181,883

Other Current Assets 49,513 120,491

Total Current Assets 7,980,798 6,185,182

Deferred Charges 922,483 1,026,381

TOTAL ASSETS $82,087,722 $76,395,764

EQUITIES AND LIABILITIES

CAPITAL EQUITIES

Patronage Capital $27,868,030 $26,716,097

Other Equities 1,536,464 1,454,761

Accumulated Comprehensive (loss) 306,340 (203,400)

Total 29,710,834 27,967,458

STATEMENT OF OPERATIONS

TOTAL OPERATING REVENUE

2018 2017

Electric Energy Revenue $31,992,882 $31,855,532

Other Operating Revenue 233,046 283,251

Total Operating Revenue $32,225,928 $32,138,783

OPERATING EXPENSES

Cost of Purchased Power 17,699,272 17,753,846

Operating Expenses - Transmission 61,341 49,084

Operating Expenses - Distribution 2,451,340 2,524,015

Maintenance of Distribution Plant 982,254 858,480

Accounting and Collection Expenses 1,264,624 1,256,097

Other Customer Expenses 372,513 375,027

Administrative and General 2,328,959 2,408,478

Depreciation 2,532,205 2,439,911

Taxes 738,258 772,233

Interest on Long-Term Debt 1,713,301 1,612,049

Interest Expense - Other 669 691

Other Deductions 223,369 218,952

Total Operating Revenue Deduction $30,368,105 $30,268,863

ELECTRIC OPERATING MARGIN $1,857,823 1,869,920

*

LONG-TERM LIABILITIES

Mortgage Notes 44,787,948 40,348,674

Less: Current Maturities (1,684,574) (1,577,072)

Total Long-Term Debt 43,103,374 38,771,602

OTHER LONG-TERM OBLIGATIONS 215,125 773,500

CURRENT LIABILITIES

Current Maturities of Long-Term Debt 1,684,574 1,577,072

Accounts Payable 2,428,175 1,804,616

Notes Payable - 350,000

Accrued Interest Payable 77,926 83,040

Accrued Taxes 738,258 855,014

Other Current Liabilities 2,214,131 2,151,245

Total Current Liabilities 7,143,064 6,820,987

DEFERRED CREDITS 1,915,325 2,062,217

NON-OPERATING MARGIN

Interest Income 32,767 49,889

Other Non-Operating Income 31,260 15,508

Total Non-Operating Margin 64,027 65,397

Cooperative Capital Credits 231,055 187,511

Net Margins for Period $2,152,905 $2,122,828

PATRONAGE CAPITAL at Beginning of Year 26,716,097 25,935,748

Subtotal 28,869,002 28,058,576

Less Retirement of Capital Credits (1,000,972) (1,342,479)

service awards

EMPOWERED EMPLOYEES

MIKE BIRCH

OPERATIONS MANAGER

40 YEARS

DEBRA WHITESIDE

MEMBER SERVICES REPRESENTATIVE

30 YEARS

BILL BARLOW

OPERATIONS SUPERVISOR

30 YEARS

TOTAL LIABILITIES & CAPITAL $82,087,722 $76,395,764

DEBBIE DEROSE

CUSTOMER SERVICE REPRESENTATIVE

30 YEARS

LEROY LOWARY

SERVICEMAN/METERMAN

25 YEARS

PATRONAGE CAPITAL at End of Year $27,868,030 $26,716,097

*As this report goes to press, the audit of these financial statements has not been finalized.

MARK SHAFFER

OPERATIONS FOREMAN

25 YEARS


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Program &

Agenda

5:30 p.m. - 6:30 p.m. Registration & Dinner

6 p.m. Special Guest Entertainment

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 report

5. Election

6. Unfinished business

7. New business

8. Adjournment

Door prize drawings will

follow the business meeting.

notice of annual

meeting

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

8, 2019 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.

Registration opens at 5:30 p.m. in the Meyer Ballroom

of the University Center of Colorado Mesa University.

The map inset 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.

RSVP INSIDE

970-242-0040 | www.gvp.org

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