2017 Financial Report
The 2017 financial reports are presented on a consolidated basis for Plumas-Sierra Rural Electric Cooperative and its subsidiary, Plumas-Sierra Telecommunications.
The consolidated statement of operations provides an overview of the income and expenses for 2017 and 2016.
Our primary goal is to keep rates as flat as possible over time. We worked very hard during the drought that just ended to protect our member-owners from the higher costs associated with the drought. This meant we were cutting our margins as low as possible.
Our lenders wanted us to build up our financial strength. The cooperative has the ability to carry under-budget power costs into the following year. At the end of 2017, your board of directors approved a recommendation to carry $600,000 from 2017 into 2018. This allowed us to avoid a rate increase in 2018.
In the 2017 treasurer’s report, we discussed our plans to restructure our rates to match the cost of service. This means in the long run, on a yet-to-be determined schedule, we will be reducing the kilowatt- hour charges on your bills in the years to come, while increasing the fixed and/or demand-based charges for service.
If you are considering heating and cooling technologies, or whether to invest in renewable energy, please talk to us to be sure you are making an informed decision.
Plumas-Sierra Telecommunications posted a loss in 2017. There was a modest operational loss in our telecommunications subsidiary due to the rapid expansion of our system.
We saw a significant financial improvement compared to 2016, although that doesn’t show up in the final numbers for 2017. There was a federal tax bill signed into law that affected our loss-carry forward accounts that are associated with the federal grant we received. This required us to take a write-off for PST for $630,000. This is a non-operational paper adjustment.
PST is off to a great start for 2018, and looks to be a net cash generator in the years ahead.
Finally, we are pleased to report our external auditors, Aldrich, have concluded that the consolidated financial statements present fairly, in all material respects, the financial position of the cooperative and its subsidiary.
Consolidated Balance Sheet
December 31, 2017 and 2016
|Plant in service||$105,981,578||$105,020,766|
|Construction work in progress||6,799,116||5,386,100|
|Provision for accumulated depreciation||(43,707,843)||(41,778,492)|
|Electric plant, net||69,072,851||68,628,374|
|Other assets and investments:|
|Non-utility construction in progress||861,704||1,810,176|
|Provision for accumulated depreciation||(6,239,713)||(4,765,007)|
|Investments in associated organizations||6,894,375||6,900,265|
|NCPA reserve fund||1,324,250||1,239,384|
|Deferred income taxes||1,684,200||2,314,200|
|Total other assets and investments||30,405,589||31,020,765|
|Cash and cash equivalents||858,832||605,608|
|Accounts receivable, less provision for doubtful accounts of $106,032 ($183,130 in 2016)||3,099,046||2,986,437|
|Materials and supplies||1,772,796||1,603,527|
|Total current assets||8,548,025||7,631,743|
|EQUITIES AND LIABILITIES|
|Equities and margins:|
|Accumulated comprehensive loss||(748,100)||(802,800)|
|Total equities and margins||34,572,305||32,670,010|
|Capital lease obligations||74,112||–|
|Total long-term debt||43,608,283||45,664,467|
|Lines of credit||5,004,000||5,266,000|
|Current maturities of long-term debt||3,549,283||3,439,672|
|Current maturities of capital leases||58,025||–|
|Accounts payable, trade||346,273||479,703|
|Total current liabilities||14,103,212||13,315,155|
|Consumer advances for construction||1,214,150||1,113,630|
|Revenue deferral plan||588,773||313,773|
|Deferred grant revenue||11,536,133||12,468,274|
|Total other liabilities||17,664,074||17,945,402|
|Total Equities and Liabilities||$109,947,874||$109,595,034|
Consolidated Statement of Operations
Years ended December 31, 2017 and 2016
|Cost of power||10,597,851||11,597,342|
|Distribution-operation & maintenance||3,458,959||3,342,960|
|Customer service and information||334,576||306,553|
|Administrative and general||2,104,867||1,985,634|
|Total operating expenses||18,045,689||18,733,321|
|Depreciation and amortization||2,614,298||2,534,380|
|Total Cost of Electric Service||23,088,811||23,778,517|
|Income (Loss) from Telecommunications operations||(803,096)||(397,335)|
|Other Capital Credits and Patronage Dividends||78,020||92,300|