Your Board of Directors is happy to report that while 2015 ended in lower kilowatt-hour sales, we were still able to achieve all of our financial goals.
The kilowatt-hour sales for 2015 were 2.7% below budget and 4% under 2014. However, margins for the year were $2,092,169, which is $628,755 over the budgeted amount of $1,463,414. Margins from electricity sales were $1,267,057, and the other $825,112 came from non-operating sources such as patronage from CIPCO, our generation and transmission, and other non-profit cooperatives.
The management team worked hard to propose a 2016 budget with expenses comparable to 2015. Our goal is to use technology and reduce costs without compromising service or reliability.
As always, keeping your lights on at an affordable rate is your Cooperative’s top priority. We are providing a breakdown of the 2016 budget so that you may see where your dollars are invested. The budget includes approximately $2,600,000 in system improvements and $2,500,000 for a new operating facility in Independence. Some of the improvements include:
- $141,000 in new services construction
- $1,000,000 to replace old lines
- $90,000 in substation upgrades
- $500,000 in new transformers, meters, and special equipment
- $200,000 in member services upgrades
- $350,000 in sectionalizing equipment
- $75,000 in pole replacements
These system upgrades are part of our 2013-2016 Construction Work Plan and make it possible to accommodate new growth and improve reliability of your electric service.
The budget includes $2,300,000 in preventative and ongoing line maintenance programs including pole testing and meter testing, tree trimming, transformer and breaker maintenance, and many other items.
The graph above is a brief summary of the 2015 budget now that the year has concluded.