2018 Financial Report

The 2018 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 2018 and 2017.

The cooperative has the ability to carry under-budget power costs into the following year. At the end of 2018, your board of directors approved a recommendation to carry $190,000 from 2018 into 2019. Even though this is less than one-third of what we were able to carry over in 2018 from 2017, it does help offset some of the expenses for 2019. Although there was a decline in operating margin compared to 2017, our overall net margin ended up being slightly higher in 2018.

In the 2017 treasurer’s report, we discussed our plans to restructure our rates to match the cost of service. Due to the long-term projections of higher power costs going forward, rates were increased overall by 3.25% on July 1, 2019. This was applied to the fixed charges to help match cost of service, while the kilowatt hour charges were left unchanged. It is our first rate increase in more than five years.

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. We have an excellent GeoExchange ground-source heat pump program to help our members. Also, our community solar program offers all the benefits of solar on your home, without all the hassles, including price protection. We are here to help you, our member-owners.

Plumas-Sierra Telecommunications posted a net profit in 2018. For the first half of 2019, we have continued to expand our system, and have projects underway in several underserved / unserved areas. If you have questions about internet service or need service in your area, please contact us for the latest information.

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.

Sincerely,

David Hansen
Secretary/Treasurer