ANNUAL MEMBER Also on FaceBook LIVE. Go to the Beartooth Electric - - PowerPoint PPT Presentation
Get ready to BECs 82nd ANNUAL MEMBER Also on FaceBook LIVE. Go to the Beartooth Electric page. MEETING Historical Video Conference May 2, 2020 Staying SafeBeing Healthy 1 Agenda WELCOME & CALL TO ORDER 01 -President,
Historical Video Conference May 2, 2020
Staying Safe—Being Healthy
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Also on FaceBook LIVE. Go to the Beartooth Electric page.
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WELCOME & CALL TO ORDER
PLEDGE OF ALLEGIANCE
APPOINTMENT OF PARLIAMENTARIAN
LAURENCE MARTIN, ESQ., COUNSEL
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ESTABLISH A QUORUM Secretary, Arleen Boyd NOTICE OF MEETING—MOTION Secretary, Arleen Boyd APPROVAL OF 2019 ANNUAL MEMBER MEETING MINUTES — MOTION Secretary, Arleen Boyd
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JULIE LINDGREN, PRESIDENT
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SHARLENE MCCOMAS
BYLAW
CHARLES SANGMEISTER
BYLAW
MIKE SPECHT
BYLAW
LINDA HALSTEAD- ACHARYA
COMMUNICATION
BRUCE AUSTIN
COMMUNICATION
BILL HAND
COMMUNICATION
FRANK WILLETT
FINANCE | RISK MGMT
WALTER CLAPP
RISK MGMT
JIM RODGERS
COMM | RISK MGMT
JANET LULOFF
POLICY
DAVID PETERSON
RISK MGMT
JEAN PETERSEN
COMM-EDITOR
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DANIEL DUTTON RALPH LEWIS
NO NOMINATIONS RECEIVED Ready to Serve? If you live in District 3 and would like to serve on the Board
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MCA 35-18-207. Bylaws. The original bylaws of a cooperative shall be adopted by its members. The bylaws shall set forth the rights and duties of members and may contain other provisions for the regulation and management of the affairs
Healthy
TRANSPARENCY MEMBER INVOLVEMENT BEST BUSINESS PRACTICES
BYLAWS FOR A DEMOCRATIC COOPERATIVE
MONTANA LAW CONFORMITY
ARLEEN BOYD, CHAIR
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Montana law.
various bylaw articles with each other.
methods for communicating with members.
some Articles
MIKE SPECHT, COMMITTEE MEMBER
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The proposed Article XI amendment allows co-op spelling, grammar, and syntax changes that do not affect the meaning of a bylaw to be made without member approval. With the 2020 proposed amendments—few needed changes are expected near term. QUESTIONS?
Montana law.
various bylaw articles with each other.
methods for communicating with members.
some Articles.
Bylaws are the cooperative’s legal agreement with members and the rules and requirements for all parties.
2020 PROPOSED BYLAW AMENDMENTS
Meet Fiduciary Responsibilities Analyze plans and projects Examine developing trends and technology Involve members and engage outside expertise
BILL PASCOE, CO-CHAIR ARLEEN BOYD, CO-CHAIR
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Take care –Stay safe –Watch the money –Watch the future
4.3 2.5 3.5 4.5 7.8 3.3 4.4 1.6 5.5 4.3 7.9 4.6 2.4 4.4 1.8 2.8 5.7 1.2 3.2 2.4 6.7 2.9 5.6 2.4
1 2 3 4 5 6 7 8 9 January February March April May June July August September October November December
Rate Design identified as a priority issue in 2017 and 2019 Strategic Plans Risk Management Committee focused on Rate Design since October 2018 Did a lot of analysis, considered a lot
BEC website at MyBEC/Rate Design
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Involve members and engage
4.3 2.5 3.5 4.5 7.8 3.3 4.4 1.6 5.5 4.3 7.9 4.6 2.4 4.4 1.8 2.8 5.7 1.2 3.2 2.4 6.7 2.9 5.6 2.4
1 2 3 4 5 6 7 8 9 January February March April May June July August September October November December
Minor changes to existing 3-Part Rates for Large Commercial, Industrial, and Irrigation. Transition to new 3- Part Rates for Residential and Small Commercial.
RMC Recommendations to the Board
Board will vote on Rate Design recommendations
30-day advance notice to membership in early May
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.
Costs that are driven by maximum energy usage measured in kilowatts (kW). These costs are generally recovered through a system charge.
Costs incurred without a single kilowatt (kWh) sold. These costs are generally recovered through a monthly base charge.
3-Part Rates establish charges that align with BEC’s costs
“Energy” represents the electricity consumed during a billing period, measured in kilowatt hours (kWh). “Transmission” represents the delivery of electricity to BEC’s distribution system. These costs are generally recovered through a combined energy charge or independent transmission and energy charges. BASE COSTS SYSTEM DRIVEN COSTS ENERGY DRIVEN COSTS
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BEC’S COSTS FALL INTO THREE CATEGORIES:
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ENERGY CHARGE BASE CHARGE
Base Costs
System Driven Costs Energy Driven Costs
SYSTEM CHARGE
COOPERATIVE COSTS FLOW INTO CHARGES
Administrative & General (A&G) Member Services BEC Distribution System Operations & Maintenance (O&M) Wholesale Power NWE Transmission System Depreciation
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COOPERATIVE COSTS FLOW INTO CHARGES
ENERGY CHARGE BASE CHARGE
100% 28% 72% 100% $33.50/ Month $0.09238/ kWh
Base Costs
System Driven Costs Energy Driven Costs In the current 2-Part rate design, system driven costs are captured in both the base and energy charges.
SYSTEM CHARGE
Administrative
& General (A&G) Member Services BEC Distribution System Operations & Maintenance (O&M) Wholesale Power NWE
Transmission
System Depreciation
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ENERGY CHARGE
Administrative & General (A&G) Member Services BEC Distribution System Operations & Maintenance (O&M) Wholesale Power NWE Transmission System Depreciation
BASE CHARGE
100% 20% 57% 100% $30.00/ Month $0.08387/ kWh
Base Costs
System Driven Costs Energy Driven Costs 23%
SYSTEM CHARGE
$2.00/ kW
In the recommended 3-Part rate design, the shift to a system charge results in 23% of the system driven costs allocated to this charge, and the introduction of the $2.00/kW charge. COOPERATIVE COSTS FLOW INTO CHARGES
CURRENT RATES PROPOSED RATES RESIDENTIAL
BASE CHARGE ($/MONTH)
$33.50 $30.00
SYSTEM CHARGE ($/kW)
$2.00
ENERGY CHARGE ($/kWh)
$0.09238 $0.08387 SMALL COMMERCIAL
BASE CHARGE ($/MONTH)
$33.50 $30.00
SYSTEM CHARGE ($/kW)
$2.00
ENERGY CHARGE ($/kWh)
$0.08705 $0.08109
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APPLIANCE WATTS (w)
KILOWATTS
(kW)
KILOWATTS
(kWh) 1-hour
KILOWATTS
(kWh) 2-hours
OVEN 2,000 2.0 2.0 4.0 REFRIGERATOR 500 0.5 0.5 1.0 LIGHTS 300 0.3 0.3 0.6 TOTAL 2,800 2.8 2.8 5.6 KILOWATT-HOURS (kWh) IS THE AMOUNT OF ELECTRICITY CONSUMED OVER TIME. SYSTEM CHARGE BILLED BASED ON THE MAXIMUM 15-MINUTE USAGE (kW) AT ANY TIME DURING THE MONTH. KILOWATTS (kW) IS THE TOTAL AMOUNT OF ELECTRICITY BEING USED AT ANY POINT IN TIME.
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GOAL: NEW RATE DESIGN IS REVENUE NEUTRAL
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REVENUE NEUTRAL BEC’S CURRENT REVENUES ARE ADEQUATE TO COVER CURRENT COSTS. NEW RATES WILL GENERATE SAME REVENUE FROM EACH CLASS AS CURRENT RATES (ASSUMING NORMAL WEATHER). SYSTEM CHARGE REVENUES WILL BE USED TO REDUCE THE BASE CHARGE (10.4%) AND THE ENERGY CHARGE (9.3%). TYPICAL MEMBER’S BILL WILL BE ABOUT THE SAME, BUT SOME MEMBERS WILL PAY A LITTLE MORE AND SOME WILL PAY A LITTLE LESS DEPENDING ON ELECTRICITY USAGE CHARACTERISTICS.
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ALLOCATES COSTS FAIRLY WITHIN EACH RATE CLASS.
REDUCES DEPENDENCE ON ENERGY CHARGE TO FUND SYSTEM COSTS
REDUCES DEPENDENCE ON BASE CHARGE TO FUND SYSTEM COSTS
BETTER ALIGNS BEC AND MEMBER INTERESTS IN ENERGY EFFICIENCY AND DISTRIBUTED GENERATION.
4.3 2.5 3.5 4.5 7.8 3.3 4.4 1.6 5.5 4.3 7.9 4.6 2.4 4.4 1.8 2.8 5.7 1.2 3.2 2.4 6.7 2.9 5.6 2.4
1 2 3 4 5 6 7 8 9 January February March April May June July August September October November December
30-DAY Member Notice | May 2020
comments welcomed on or before June 30 Fall & Winter 2021
Current rates remain in effect—
showing more usage information, kW and kWh
Fall & Winter 2021
Current rates remain in effect (continued)—
member communications
tool on website
April 1, 2021
New rates, including System Charge, in effect for all rate classes
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June 30, 2020 Board decisions
Brian Van Steeland, CPA BEC Auditor Summers McNea and Company, PC
Minor changes to existing 3-Part Rates for Large Commercial, Industrial, and Irrigation.
2019 | 2018 BALANCE SHEET
Audited Financials
2019 | 2018
STATEMENT OF REVENUE & PATRONAGE CAPITAL
Audited Financials 21
STATEMENT OF REVENUE & PATRONAGE CAPITAL Amounts in $000 DECEMBER 31, 2019 DECEMBER 31, 2018
Amount % Of Revenue Amount % Of Revenue Increase (Decrease)
TOTAL OPERATING REVENUE $8,847 100.0% $8,577 100.0% $270 OPERATING EXPENSES Cost of Power & Transmission $3,388 38.3% $3,187 37.2% $201 Distribution Operations & Maintenance $1,795 20.3% $1,581 18.4% $214 Admin, General & Consumer Expense $1,531 17.3% $1,523 17.8% $8 General Plant Maintenance $153 1.7% $139 1.6% $14 Depreciation $1,097 12.5% $1,016 11.8% $81 Interest Expense $597 6.7% $608 7.1% $(11) Total Operating Expense $8,561 96.8% $8,054 93.9% $507 Net Operating Margin Before Patronage Capital Credits $286 3.2% $523 6.1% $(237) Patronage Capital Credits $67 0.8% $50 0.6% $17 Net Operating Margin $353 4.0% $573 6.7% $(220) Non-Operating Margins Interest Income $117 1.3% $132 1.5% $(15) Other Non-Operating Revenue $3 0.0% $(3) 0.0% $6 Total Non-Operating Margins $120 1.3% $129 1.5% $(9) Net Margins $473 5.3% $702 8.2% $(229) PATRONAGE CAPITAL—BEGINNING OF YEAR $8,463 $7,136 Refund Allocated to Prior Years’ Equities and Margins $0 $1,112 Less: Retirement of Capital Credits $(494) $(407) Add/Less: Margins Transferred from/to Other Equities $(41) $(29) Less: Non-Operating Margins Transferred to Other Equities $(129) $(51) PATRONAGE CAPITAL—END OF YEAR $8,272 $8,463
2019 | 2018 BALANCE SHEET
Audited Financials 22
Brian Van Steeland, CPA BEC Auditor Summers McNea and Company, PC
BALANCE SHEET Amounts in $000 ASSETS EQUITIES, MARGINS, LIABILITIES & OTHER CREDITS
2019 2018 2019 2018
UTILITY PLANT (AT COST) EQUITIES AND MARGINS Total Utility Plant $33,912 $33,066 Patronage Capital $8,272 $8,463 Less: Accumulated Depreciation $16,506 $16,213 Other Equities $631 $461 Net Utility Plant $17,406 $16,853 Total Equities & Margins $8,903 $8,924 OTHER PROPERTY & INVESTMENTS Investments in Assoc Organizations $467 $450 LONG-TERM DEBT $9,345 $10,131 Investments in CFC $275 $277 Total Other Property & Investments $742 $727 CURRENT LIABILITIES Note Payable Bank LOC $0 $0 CURRENT ASSETS Current Portion Long-Term Debt $1,211 $1,242 Cash & Temporary Cash Investments $730 $1,720 Accounts Payable $588 $453 Accounts Receivable & Note Receivable $884 $946 Consumers' Deposits $41 $97 Materials, Supplies, Prepayment & Other $426 $588 Accrued Taxes, Interest & Vacation $350 $384 Total Current Assets $2,040 $3,254 Total Current Liabilities $2,190 $2,176 DEFERRED DEBITS DEFERRED CREDITS Unamortized Loan Fees $6 $8 Consumer Energy Prepayments $24 $21 Preliminary Surveys & Investigations $0 $10 Capital Credits Payable $212 $164 NorthWestern Transmission Deposit $60 $60 Other Deferred Credits Payable $3 $60 Southern Montana Prepayment $423 $564 Total Deferred Debits $489 $642 Total Deferred Credits $239 $245 TOTAL ASSETS $20,677 $21,476 TOTAL EQUITIES, MARGINS, LIABILITIES & OTHER CREDITS $20,677 $21,476
December 31, December 31,
KEVIN P. OWENS, PE GENERAL MANAGER
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07 08 09
BEC HIGHLIGHTS UNFINISHED BUSINESS NEW BUSINESS
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MEMBER QUESTIONS & COMMENTS
DISTRICT 1 DANIEL DUTTON 30 PROPOSED BYLAW AMENDMENTS DISTRICT 7 RALPH LEWIS
TRUSTEE ELECTIONS PROPOSED BYLAW AMENDMENTS
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MEMBERS
BEARTOOTH ELECTRIC COOPERATIVE, INC. 82nd ANNUAL MEMBER MEETING THANK YOU FOR PARTICIPATING IN THIS HISTORICAL EVENT
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