2022 Financial Report
The 2022 financial statements 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 2022 and 2021. Overall, 2022 was a difficult year for the cooperative, and PSREC ended with a negative margin.
Power costs were the primary driver of our loss in 2022. They were 62% higher than 2021 due to market volatility in electricity and natural gas. Below is a chart with power costs for the last four years.
While generation and market costs may fluctuate, one cost that only goes up is the cost of Pages from c-39 pp28-29 August2023-2transmission service from PG&E. PG&E is paid to wheel power from our suppliers to the West. Their transmission fees are now among the highest in the nation at more than 3 cents per kilowatt- hour, and they are expected to continue climbing. This is a primary driver in our efforts to build a new transmission line to the Nevada grid.
Additionally, the cooperative’s costs for tree-and brush-clearing efforts near poles and lines in 2022 increased from 2021. These efforts play an essential part in fire prevention and have become almost year-round operations, depending on the weather. We expect these costs to continue to rise in the coming years. Vegetation management operations help us avoid local public safety power shutoff occurrences.
Our operating margin in 2022 was a substantial loss, and overall net margin was not much better. This was driven by increased power costs, tree-and brush- clearing costs, and inflation. Materials and equipment are also more difficult to procure in a timely fashion, as supply chain issues continued through 2022 and beyond.
As we look forward, power costs have moderated somewhat in 2023 as compared to 2022. They are expected to continue to increase throughout the next five years. We will start budgeting for 2024 in October and will continue to look for greater efficiency where feasible in the year ahead.
If you are considering heating and cooling technologies or investing 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 the benefits of solar on your home without the hassles, including price protection and a convenient monthly payment option. We are here to help our member-owners.
PST received additional California Advanced Service Fund grants in 2022 to expand broadband services in specific unserved neighborhoods within our service area. Thanks to the CASF program, we can extend broadband service to areas that would otherwise be cost-prohibitive to serve from an infrastructure perspective. Outside of the grant areas, we continue to expand our system and have projects underway in several underserved/unserved neighborhoods. 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 auditor, Aldrich, has concluded the consolidated financial statements present fairly, in all material respects, the financial position of the cooperative and its subsidiary.Consolidated Balance Sheet/Statement of Operations (PDF)