ANNUAL REPORT
2013
WHEN NOTHING IS CERTAIN,
EVERYTHING IS POSSIBLE.
Gibson Electric Membership Corporation has a history of doing what others have thought was impossible. Our founders
overcame huge obstacles to replace darkness with light for generations of Northwest Tennesseans. And every day your
cooperative delivers POWER, COMFORT, CONVENIENCE and OPPORTUNITY to communities throughout
our eight-county area. Even as our economy continues to struggle to find sure-footing, and as we face new challenges of
expanding laws and environmental regulations threatening the affordability of electricity, we know that our challenges
are not nearly as great as our potential. We – our member-owners, our board and our employees – possess the power to
successfully navigate our future. Where some see uncertainty, we see possibility.
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POWER
Substation Improvements
2013 was an extremely busy and productive year
for our operations group. We made significant
improvements to three of our 16 substations. In
the Bells substation, we upgraded service to 161
kV, installed two new power transformers and
new microprocessor relays. We installed a second power transformer and new microprocessor
relays in our Tiptonville substation; and we refurbished and relocated the Bells transformer to
Maury City. The microprocessor relays provide
more detailed data enabling us to better operate
and maintain our power system. All of the improvements will enhance service reliability and
help prepare us to meet the long-term power
needs of our membership.
Construction Work Plan
Gibson EMC lineworkers once again showcased their expertise at the 2013 Tennessee Valley Lineman Rodeo. Pictured from left, Line Crewleader Mark Perry, VP of Operations and
System Planning Barry Smith, Operations Supervisor Eddie Bell, First Class Lineworkers
Jeff Milam and Trent Cary, and Safety Coordinator Billy Porter. Not pictured is Field Engineer Jeff Boyd. Bell placed third in the Seniors’ Recloser Bypass event, third in the Seniors’
Transformer Service Installation event and third in the Seniors’ Overall Standings. The
team of Milam, Cary and Perry placed second in the Team Transformer Banking event and
fifth in Team Overall Standings. Porter and Boyd served as event judges while Smith
served on the Rodeo’s planning committee and board of directors.
We also developed a new Rural Utilities Service
Construction Work Plan. Through this process,
we model our physical electric system and identify improvements that need to be made to provide ample and reliable service for the next four to five years. The Work Plan serves
as a detailed guide for delivering reliable service going forward.
Safety
fiber optic systems of other West Tennessee utilities. This interconnection partnership strengthens business redundancy and
adds value to Gibson EMC and our neighboring utilities. Another
important benefit of our fiber optic system to our members is the
repeating source of revenue it generates, helping to keep our
electric rates affordable. In 2013, our fiber transport business
generated $1.1 million in net income for our membership.
Fiber
Gibson EMC enhanced our disaster preparedness in 2013 by further developing the technical infrastructure capabilities of our
Alamo facility. Should we sustain catastrophic damage to our corporate facility in Trenton, we now have the technical system safeguards in place to prevent loss of member data and prevent
disruption of communications systems. This enables us to continue serving our members well through this backup location.
The safety of our members and our employees is another high priority for Gibson EMC. We are very proud of our Tiptonville and
Troy employees for completing a full year without a lost-time accident. Tiptonville worked 36,069 hours free of accidents, and
Troy worked 91,605 hours free of accidents. No one in these offices missed a day of work in 2013 because of a work-related accident.
During 2013, Gibson EMC continued to grow our fiber optic system. Not only are our facilities interconnected, providing a strong
communications network, but our system also is connected to the
Disaster Preparedness
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COMFORT AND
CONVENIENCE
Advances in technology coupled with our
commitment to provide high quality service led
to a number of improvements and new service
offerings during 2013.
Telephone System Upgrade
One technological upgrade that directly touches
our members is the installation of a new telephone system. We now have additional phone
lines enabling the system to handle more calls
simultaneously. The new system also provides
greater communications system redundancy so
we are better equipped to provide uninterrupted service in the event of a disaster.
Website - Outage Map and Use
Management Tool
Tennessee State Representative Bill Sanderson and wife, Marjie, of Kenton
were among those who participated in the Green Power Providers Program
offered by Gibson EMC and TVA in 2013. The tracking solar panel was installed at the couple’s future White Squirrel Winery event facility. Construction of the facility is nearing completion.
In 2013, Gibson EMC also improved our website. From our
redesigned website at www.gibsonemc.com, you can pay
your bill, get news and information, access energy efficiency advice, learn about our financing and convenience
programs and much more. A couple of new features
we’ve added are an Outage Map enabling you to track the
location and status of outages in real-time and a mobile
application that makes our website more user-friendly on
mobile devices. Another new feature getting positive reviews from members is our Use Management Tool. It provides a visual picture of your daily and monthly electricity
use and enables you to better track, analyze and manage
consumption. With the Use Management Tool, you can
easily see how much electricity you are using each day,
and when it is running higher, you can immediately take
steps to reduce your kWh consumption – like adjusting
your thermostat. The data also can enable you to more
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quickly identify an energy-related problem (with cooling
and heating equipment, for example).
Social Media
Through our website you can link to Gibson EMC’s Facebook page and Twitter account. We encourage you to
“like” us on Facebook and “follow” us on Twitter because
we use these platforms to quickly communicate information regarding outages, other co-op news, contests and
more. These and our website are excellent tools for accessing Gibson EMC news and information.
Irrigation, Solar, Etc…
Unique to 2013 was the increased demand for solar generation system installations through the Green Power
Providers Program and for irrigation services assistance.
We continued to provide a variety of other services to residential members including water heater financing, heat
pump financing, leased outdoor lighting, Surge Alert protection, In-Home Energy Evaluations and Home e-Valuation surveys.
USave Pilot Projects
In 2013, Gibson EMC launched two innovative pilot program projects
– our USave Thermostat Program and our USave Water Heater Program.
We installed more than 100 free, state-of-the-art, remote-controlled,
programmable thermostats with free professional installation (a $250
value) for participants in our USave Thermostat Pilot Program. Participants also received an app through which they can remotely manage
their thermostats via a computer, smart phone or tablet. Some participants have said the bigger benefit is the energy savings they’ve realized by using the technology to manage their energy use. There are
a limited number of participant spots still available for this program.
Interested members should contact their local Gibson EMC member
service center for more information.
Gibson EMC’s newest pilot program provides free monitoring and replacement of water heater elements and thermostats for members
who allow us to install load management devices on their water
heaters. With this advanced load management technology, we may
be able to detect and notify you of an element or thermostat problem before you are aware of it. (Gibson EMC will provide this free
service for as long as parts are available for your water heater and
the load management device is connected and functioning properly.)
The device allows Gibson EMC to cycle your water heater off during
times of peak electricity demand. Your comfort should not be affected because your water heater will be cycled back on once it
reaches a minimum temperature of 113 degrees.
Participants in both USave programs play an important role in keeping electricity affordable. By reducing Gibson EMC’s peak demand,
participants will help hold down our wholesale power costs; and by
reducing TVA’s peak demand, participants will help TVA avoid purchasing more expensive power on the open market and delay the
need for construction of costly new generation plants. More specifically, for each kilowatt reduced from Gibson EMC‘s wholesale power
bill through the USave water heater program, Gibson EMC and therefore the membership will see a savings of over $9. The greater the
level of participation, the more savings the membership will realize.
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Hundreds of members joined us in October for Member Appreciation Events at
each of our Member Service Centers. Barbecue lunches, USave program
information and promotional items were provided, with eight lucky members
winning $100 bill credits. Above, President and CEO Dan Rodamaker and VP of
Economic Development Emily Sullivan visit with members at Tiptonville.
Valley Investment Initiative, Valley Advantage
and Valley Commitment Programs
Gibson EMC continued to support our commercial and industrial members by partnering with TVA to provide programs
that foster economic growth in our service area. In 2013,
Williams Sausage Company of Union City and KMI Group of
Kenton were participants in the Valley Investment Initiative,
Valley Advantage and Valley Commitment Program, all of
which incentivize manufacturers for making capital investments and retaining/creating jobs.
Williams Sausage Company, a processor of pork sausage, expanded its convenience product lines and market share,
added new equipment and production space, and formed a
joint venture with an Oklahoma sausage products manufacturer. They increased their workforce by 60 in the past year
and plan to build additional refrigeration space and create another 148 jobs over the next two years.
KMI Group, global manufacturers and distributors of plastic
resins, began extensive improvements to their Kenton plant,
expanded their product line and purchased a former speculative building in Dyer to be used as a distribution facility. They
hope to add 150 jobs over the next five years.
Gibson EMC's technical staff also assisted Williams Sausage
Company and KMI Group, as well as several other commercial
and industrial customers, as upgrades were made to serve additional electric load.
Comprehensive Services and Energy Right
Solutions Programs
Administrators at Crockett County Schools maximized budgetary dollars while improving energy efficiency in five schools
last year. Gibson EMC, in partnership with TVA, provided
them with free energy audits through the Comprehensive
Services Program. These audits provided baseline data required for grant applications to the state and other sources.
Extensive energy-efficient lighting and HVAC upgrades also
Roger Williams
“We have been very pleased to have
Gibson EMC as a business partner for
over 55 years,” says Roger Williams,
President of Williams Sausage Company in Union City. “Over our long relationship, there have been numerous
occasions that Gibson EMC and TVA
have assisted our company with incentive programs and low-interest
loans to expand our business, and we
have always been very pleased with
this assistance. It is a pleasure to
work with someone who is very interested in the success of our business.”
"We received over $91,000 in bill
credits through the Energy Right Solutions for Business program this past
year,” explains Crockett County Assistant Director of Schools P.A. Pratt.
“The reduction in our energy budget
enabled us to make additional investments in safety and security measures for our students, as well as to
upgrade computers and other technology items."
P.A. Pratt
qualified the school system for participation in the Energy
Right Solutions for Business program. Incentives for energy
efficiency improvements were paid as electric bill credits.
These incentives, plus anticipated reduction to the school
system's future energy budget, enabled administrators to
reallocate funds.
ABB Inc. also benefitted from the Energy Right Solutions
for Industry program last year. Its Alamo plant, a manufacturer of power transformer components, replaced two
chillers and some high-bay lighting. The benefits from the
Energy Right Solutions program was a deciding factor in
the approval process of these projects.
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OPPORTUNITY
The Port of Cates Landing and the Lake
County Industrial Park at Cates Landing
Construction of The Port of Cates Landing on the Mississippi River near Tiptonville was completed in the
summer of 2013. The new port includes 9,000 linear
feet of slack water access to a barge berthing area, a
37,500-square-foot transit shed/warehouse, and an
office building. Road improvements are near completion and efforts are underway for the last component
of this multi-modal facility – a rail spur connection
from the TennKen Shortline to the 400-acre port site
and the adjoining industrial park.
Also in 2013, the Lake County Industrial Park at Cates
Landing was certified under the Select Tennessee Certified Sites Program, giving this 345-acre site the prestige of being one of only 26 in the state to achieve this
status. Gibson EMC joined with other economic devel-
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opment partners to assist the Reelfoot Area Chamber
of Commerce with the Select Tennessee application
process; and we assisted with funding some of the
archeological, environmental and geotechnical requirements. Select Tennessee industrial sites offer
unique competitive advantages due to rigorous sitereadiness standards.
United Way, Safety Demos, Leadership
Development, Etc…
From employee United Way and food pantry donations to the co-op’s sponsorship of youth and adult
leadership development opportunities, from teaching
electrical safety in our schools to presenting energy efficiency information for community groups, Gibson
EMC is engaged and contributing. We – our memberowners, our board and our employees – are our communities.
Visiting the newly completed Port of Cates Landing in the summer of 2013 were, from left, Rep. Bill Sanderson, Sen. Lowe
Finney, Port Authority Board Director Jimmy Williamson, Gov.
Bill Haslam, Ken Eriksen and John Lannom. Gibson EMC has
actively worked alongside local, Northwest Tennessee, and
State partners to bring this important project to this point.
Photo by State Gazette
Student Molly Maclin, third from left, represents Gibson EMC and
Tennessee as she lays a wreath on the Tomb of the Unknown
Soldier during the 2013 Washington Youth Tour.
CHALLENGES
The electric industry, Gibson EMC, and by extension you, our member, face formidable challenges in the future. Federal and state
legislative issues threaten the affordability and reliability of electric service. The Environmental Protection Agency’s proposed policy that sets stringent limits on carbon dioxide emissions from future coal or natural gas plants is a prime example. In a 2012 Congressional Budget Office report, engineers estimated it would increase the cost of producing electricity from coal-based plants by
75 percent.
You can be sure that Gibson EMC along with our sister electric cooperatives are speaking out, working to protect you from this
and other threats to the availability and affordability of your electric service. We advocate common sense public policies on air
quality, water, climate change and land resources, but they must balance environmental stewardship with our need for energy to
power the nation’s economy. We call on you to also communicate with your legislators in protection of reliable and affordable
electric service.
It is true that we face formidable challenges, but our challenges are not nearly as great as our potential. Harnessing the power of
our people – our member-owners, board and employees – we look optimistically to our future.
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The Financial Statement
Gibson Electric Membership Corporation is an electric cooperative owned by its members. Its service area includes
parts of Crockett, Dyer, Gibson, Lake, Madison, Obion, Haywood and Lauderdale counties.
Assets
Electric Plant .............................................. $136,331,919
Depreciation.............................................. $(57,044,456)
Net Plant ..................................................... $79,287,463
Reserve & Cash Fund ...................................$15,002,459
Current & Accrued Assets ........................... $10,676,155
Deferred Debits ............................................. $3,267,284
Total Assets .......................................... $108,233,361
Liabilities
Current & Accrued Liabilities ..................... $10,248,144
Deferred Credits ................................................$630,541
Membership Investment ................................ $249,331
Long-Term Debt .......................................... $23,764,492
Earnings Reinvested In System Assets ........... $73,340,853
Total Liabilities ..................................... $108,233,361
Revenue & Expense Statement
Operating Revenue ..................................... $82,033,608
Purchased Power Expense ......................... $61,075,599
Operations Expense ...................................... $7,912,762
Maintenance Expense .................................. $3,787,214
Depreciation Expense ................................... $4,848,905
Tax Expense .................................................. $1,260,000
Net Margin from Operations ........................ $3,149,128
Non-Operating Income ................................. $2,409,102
Interest Expense ........................................... $1,633,891
Net Margin..................................................... $3,924,339
Capital Investment
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After meeting expenses, the net margin of $3,924,339 was
used to reinvest in your electric system.
Revenue
2013 Revenue (Per $1)
Gibson EMC received
Residential
$82,033,608 in revMembers: 61¢
enues in the fiscal year
Commercial &
that ended December
Industrial
31, 2013. Our revMembers: 36¢
enues came from sevMiscellaneous
eral sources: residential
Income: 3¢
members,
industrial members, commercial members and
miscellaneous income, such as outdoor, street and
athletic lighting.
Expenses
2013 Expenses (Per $1)
Gibson EMC buys power
Purchased Power
from TVA: 77¢
from the Tennessee
Valley Authority. In
Construction,
the fiscal year that
Maintenance &
ended December 31,
Administration
Expenses: 23¢
2013, we spent about
77% of our electric sales
revenue to pay our TVA power
bill. The other 23% was used for operations,
depreciation, maintenance, interest and taxes, and
capital investment.
Auditor’s Statement:
Gibson EMC’s books are audited annually by the firm of Alexander,
Thompson, Arnold, PLLC, Certified Public Accountants, Union City,
Tenn. Copies of the audit report are on file at Gibson EMC’s Corporate Office, 1207 S. College St., Trenton, Tenn., 38382.
Statistical Information
2011
2012
2013
Number of Meters
34,696
Member Equity
$65,276,892
Long-Term Debt
$27,176,029
Interest Paid
$1,755,817
Total Kilowatt-Hours Sold
838,267,504
Average Monthly Residential
Kilowatt-Hour Consumption
1,430
Number of Full-Time Employees
85
Meters per Mile
12.2
Miles of Line
2,844
Investment per Meter
$3,686
Taxes Paid
$1,130,909
Wholesale Power Cost as %
of Electric Sales Revenue
77%
34,674
$69,416,513
$26,099,850
$1,597,195
802,820,120
34,863
$73,340,853
$23,764,492
1,633,891
811,502,110
1,325
85
12.2
2,851
$3,819
$1,156,435
1,367
86
12.2
2,861
$3,911
$1,161,135
77%
77%
Ad Valorem Taxes
Each year Gibson EMC pays ad valorem taxes
to the towns and counties in which the cooperative has infrastructure. The amount of
taxes paid is based on the assessed value of
the infrastructure, including buildings, substations, transformers, poles and lines. The
2013 ad valorem taxes paid to counties
were…
Crockett .....................................$238,954.80
Dyer ..............................................$32,320.00
Gibson ........................................$474,724.12
Haywood ........................................$1,225.06
Lake ............................................$102,044.00
Lauderdale ...........................................$38.00
Madison .......................................$31,185.00
Obion ..........................................$280,644.33
TOTAL.......................................$1,161,135.31
Gibson EMC Board of Trustees, President and CEO, and Attorney
Steve Sanders,
Vice Chairman
District 1
Keith Heglar, Assist.
Secretary-Treasurer
District 2
Bob McCurdy
District 8
Tony Bargery
District 3
Richard Skiles
District 9
Larry Hicks
District 4
Keith Forrester
District 10
Mack Goode,
Chairman
District 5
Joan Mouser
District 6
Rana Buchanan
District 7
Don Leathers,
Dan Rodamaker, Jim Ryal, Attorney
Secretary-Treasurer President and CEO
District 11
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Member Service Centers
Corporate
P.O. Box 47 n 1207 S. College St.
Trenton, TN 38382 n 731-855-4740
Alamo
402 Egghill Rd. n Alamo, TN 38001
731-696-5961
Medina
201 Hwy 45 E North n Medina, TN 38355
731-855-4660
Tiptonville
1515 Church St. n Tiptonville, TN 38079
731-253-7181
Trenton
P.O. Box 47 n 1207 S. College St.
Trenton, TN 38382 n 731-855-4660
Troy
602 C.C. Gurien Drive n Troy, TN 38260
731-536-5920 n 731-885-5501
731-894-5920 n 731-643-6046
www.gibsonemc.com