Annual Meeting

2017 Financial Report

David Hansen
District 5

The 2017 financial reports are presented on a consolidated basis for Plumas-Sierra Rural Electric Cooperative and its subsid-iary, 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 recom-mendation 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 dis-cussed 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 mod-est operational loss in our telecommu-nications 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 asso-ciated with the federal grant we received. This required us to take a write-off for PST for $630,000. This is a non-opera-tional 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 con-cluded that the consolidated financial statements present fairly, in all material respects, the financial position of the cooperative and its subsidiary.

David Hansen

Balance Sheet & Operations Statement