nnnnnnnnnnnnnnnnnnnnnconnecting with our members 2008 in ... · a letter from the president &...

28
2008 in Review n n n n n n n n n n n n n n n n n n n n n Connecting With Our Members

Upload: others

Post on 15-Aug-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

2008 in Review n n n n n n n n n n n n n n n n n n n n n Connecting With Our Members

Page 2: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

AMEA-Sylacauga Plant

Contentsn 1 In Memoriam - Wayne Duke

n 2 A Letter from the President & CEO

n 3 Reflections of 2008

n 6 Alexander City

n 7 Dothan

n 8 Fairhope

n 9 LaFayette

n 10 Lanett

n 11 Luverne Electric Board

n 12 Opelika

n 13 Piedmont

n 14 Riviera Utilities

n 15 Sylacauga Utilities Board

n 16 Utilities Board of Tuskegee

n 18 AMEA Board of Directors

n 19 AMEA Management Staff

n 20 Financial Statements

Photo Credits:

Front Cover:“Blue Bell Pavilion” by Brian Schoenhals, The Daily Home“Just Before Sunrise – Children’s Island” by Mitford Fontaine “Fall Flowers Downtown” by the Eastern Shore Chamber of Commerce

Page 8 – Fairhope “Heron Sunset” by Louis Mapp

Other photos provided by chambers of commerce in Alexander City, Dothan, Eastern Shore and Sylacauga; Regina Grayson, The Luverne Journal; and AMEA Members.

Page 3: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

T he work and contributions of an individual are like the bricks and beams in a building. A person might depart, but their work lives

on. Much like a building, when someone leaves an organization, their contributions continue long after they have departed.

Such is the case for the Alabama Municipal Electric Authority (AMEA) and the public power industry. On Dec. 25, 2008, AMEA lost a longtime friend and supporter when Wayne Duke of Sylacauga, AMEA’s Chairman of the Board, died at his home. He is survived by his wife of 45 years, Connie Sue Duke; four daughters; eight grandchildren; and several nieces, nephews, and special friends.

Wayne began his tenure on the AMEA Board in August 1992. He served as Chairman of the Board from 2006 until Dec. 2008. Duke was also a member of the Sylacauga Utilities Board, B.B. Comer Memorial Library Foundation, and Superior Bank Board of Directors. He was a member and deacon of Sylacauga Church of Christ.

Brick by brick, you might say, Wayne helped build our organization with integrity and vision. His experience, wisdom, dedication and concern for our

Members and their communities cannot be easily replaced. Although we mourn his loss, we continue to celebrate what Wayne leaves behind – strong leadership that has helped our Members grow and flourish.

Life is like tossing a pebble into a quiet stream and watching the ripples spread over the water. What we do with our lives is important because, while it might seem like we are just little pebbles dropping in a big universe, our deeds have lasting effects. The influence of our actions spread over time, just like those ripples.

The contributions of Wayne Duke cannot just be measured by what he did at a moment in time, a pebble tossed in water, if you will. His work helped build a larger entity that will continue to provide a reliable and economical source of electric power to our Members and their customers.

It is now our job to enhance the legacy he has left us. We will continue to build new bricks on the foundations he erected as we face new challenges. And we will continue to grow and enhance the quality of life to our Members and their communities because Wayne helped show us the way.

In MemoriamWayne Duke • 1940-2008

Wayne Duke

We dedicate this 2008

in Review to Wayne’s

memory and to those

pioneers before him who

left an enduring legacy.

1

Page 4: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

A Letter from the President & CEOn n n n n n n n n n n n n n n n Connecting With Our Members

The Alabama Municipal Electric Authority’s (AMEA) connections go far

beyond electricity. The health and vitality of our company is intertwined

with that of our 11 Members and the communities and customers they serve.

Maintaining these strong connections is our commitment – and our responsi-

bility.

We believe that we have a responsibility to our Members and their com-

munities – and to the generations yet to come. As we plan today to meet

growing energy demands, we must stay constantly aware of the ways our

decisions affect both the present and the world we will leave behind. We call

it leadership legacy – leaving it better than we found it. After all, it is our con-

nections to the people and places we serve that matter most.

Connecting with our Members begins with the delivery of safe, affordable

and reliable power. But there’s far more to it than that. It is our responsibility

to generate power in ways that minimize risk and price volatility. It is also

our responsibility to use a balanced approach, including energy efficiency

and conservation, to meet growing energy demand in the future.

AMEA has been a part of life for its 11 Members and their customers from

northeast Alabama to the Alabama Gulf Coast for 27 years. So our connec-

tions to the communities we serve run deep. That’s why we consistently sup-

port our Members through education and economic development initiatives

– all of which increase opportunities and add to the overall quality of life in

the places we call home.

Our responsibilities to our Members and to the environment will always

be connected. Producing the affordable, reliable power our Members

need must be done with minimal environmental impact.

Over these many years, AMEA has found that issues which impact electric

costs are caused by outside events. That’s why we have strong connections

with our state and national leaders to encourage legislation that is balanced

between protecting the environment and the impact of potential costs to

AMEA’s Members and their customers. At AMEA, we are committed to con-

tinuous improvement in environmental quality and to being good stewards

of the natural resources we share.

We believe that it is imperative to pursue the highest standards of perfor-

mance, ethics and accountability in every aspect of our business operations.

This is what our Members expect from us and what we strive to achieve

every day.

These connections motivate us to champion the cause of public power,

rally us to plan for a reliable and competitive future, and encourage us to

achieve a standard of

excellence worthy of any

organization. After all, our

standard of excellence is

measured by those we serve

and are connected to –

our Members.

Fred Clark

President & CEO2

Page 5: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

A Letter from the President & CEOn n n n n n n n n n n n n n n n Connecting With Our Members

Reflections of 20082008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

3

AMEA Launches Partnership with ENERGY STAR®. In an effort to help Members promote the benefits of energy-efficient homes, build-ings, products and services, AMEA entered into an official partnership with ENERGY STAR® in January 2008. ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy-efficient products and practices. Throughout the year, AMEA has worked diligently to provide its Members and their customers with re-sources to help maximize energy dollars. Some of these efforts have been demonstrated in Alabama Currents magazine, Energy Depot®, monthly energy-efficiency public service announcements, and the American Public Power Association (APPA) Consumer Information Service CD. Through the partnership, AMEA and its Members promote energy efficiency as an easy and desirable option for organizations and consumers to help reduce pollution, protect the global environment, and save on energy bills.

AMEA Board Approves Load Growth Contract with Alabama Power. The AMEA Board of Directors approved a proposed Agreement for the Supply of Supplemental Capacity and Energy with Alabama Power Company (APCo) during its regular February 2008 board meeting. The agreement was made official on February 20, when AMEA staff and Board Officers met with APCo and Southern Wholesale Energy representatives to execute the contract. The agreement provides the additional capacity and energy to meet the load growth of AMEA’s Member systems for the 2011-2015 timeframe.

AMEA Upgrades Energy Depot® for Members. In February 2008, AMEA worked with its 11 Member cities to upgrade Energy Depot® for Homes to the latest software release on each Member’s site. Energy Depot is hosted by Enercom, a Hometown Connections® partner. Energy Depot is a one-stop shop of resources and online tools to help your customers better understand and manage their home energy use and costs. The re-lease offers many new features over the previous software, including new web page graphic design; user choice of Full or EZ audits; and, ability to run and save multiple home energy audits, just to name a few.

AMEA Hosts First Power Supply Conference. AMEA’s first Power Supply Conference was held in February 2008 in Fairhope. Topics in-cluded: Electricity Technology in a Carbon-Constrained World; Drought Impact on the Southeastern Power Administration (SEPA); Issues Impact-ing Fuel Costs; State Legislative Update: Comprehensive Energy Legisla-tion; Federal Legislative Update: Legislation Impacting Power Generation (Climate Change Legislation and Mandated Renewable Portfolio Stan-dards); and a Review of AMEA’s first draft of the 2009-2011 Strategic Plan. The purpose of the conference is to review issues of importance to AMEA’s Members. Those in attendance were Member cities’ governing bodies, in-cluding city council members and utility board members, as well as senior utility management staff.

AMEA Scholarship Program Helps High School Seniors. The AMEA Scholarship Program enjoyed another successful year in 2008. In

Page 6: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Reflections of 2008n n n n n n n n n n n n n n n n Connecting With Our Members

44

May, approximately $80,000 was distributed to students pursuing four-

year degrees and two-year technical degrees. Each year, AMEA and its 11

Member cities make available 22, $2,500 scholarships (two scholarships

per Member city), and 11, $2,500 technical scholarships (one technical

scholarship per Member city), for a total of 33 scholarships. To be eligible

for either of AMEA’s scholarships, a student’s family must receive electric

service from a Member’s electric utility and the student must attend an

Alabama college or university.

Athens Joins AMEA Affiliate Member Program. In June 2008, the

City of Athens Utilities joined the list of AMEA Affiliate Members, bring-

ing the total to 10. Besides Athens Utilities, AMEA’s Affiliate Members

include Cullman Power Board, Florence Utilities, Fort Payne Improve-

ment Authority, Huntsville Utilities, Marshall-DeKalb Electric Coopera-

tive, Muscle Shoals Electric Board, Russellville Electric Board, Scottsboro

Electric Power Board, and Tuscumbia Utilities. The purpose of AMEA’s

Affiliate Member program is to create a foundation for relationships with

non-AMEA municipal utilities in order that AMEA may be 1) a potential

future resource of power supply should it benefit AMEA to do so, or 2)

a resource for those utilities regarding matters of mutual interest and

thereby build a base of support in general for matters of importance to

AMEA.

AMEA Facilitates Formation of Distribution Services Working Group. During the June 2008 Member Managers Meeting, several attend-

ees expressed their desire that AMEA provide and/or facilitate the pro-

curement of certain distribution services that could not be obtained by

a sole Member distribution system due to cost and lack of manpower. In

response to the Members’ inquiry and direction, AMEA plans to facilitate

the organization and on going work of a Distribution Services Working

Group. The purpose of the group is to identify those distribution services

that are needed by AMEA’s Members, and possibly AMEA’s Affiliate Mem-

bers, which satisfy a verifiable need and can produce substantial savings

to the distribution system through joint participation.

Tom Bartels Retires After 21 Years of Service. Tom Bartels, Di-

rector of Marketing and Special Projects, said goodbye to AMEA and its

Members July 1, 2008 as he retired from the organization after 21 years

of service. AMEA hosted a retirement reception honoring Bartels in June.

Bartels, who joined AMEA in 1987, has over 35 years of utility engineer-

ing and management experience in natural gas, water, and electricity at

the corporate and municipal levels.

AMEA Assists Members with Economic Development Initiatives. The AMEA Economic Development Program works with and supports the

efforts of our Members by enhancing existing industries and bringing in

new industry. AMEA provides no interest loans to Members through the

Capital Fund Program. In 2008, AMEA’s Capital Fund Program assisted

the City of Sylacauga with a new speculative building and the City of

Dothan with a facilities expansion for Wholesale Wood Products. Also in

Page 7: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members

Reflections of 2008

5

2008, AMEA’s Economic Development Program provided grants to assist

with special economic development projects and events, including: the

City of Opelika for a special Korean Summer School to assist the many

relocated Korean families who are employed with the new Korean indus-

tries in the area; the City of Fairhope for the Festival of Flight; the City

of Foley for Familiarity Tours; the City of Piedmont for the Chief Ladiga

Trail; and, the City of Dothan for the development of new promotional

materials. AMEA also plays a vital role in supporting statewide recruit-

ing events and continues to build relationships with other utilities and

groups to provide opportunities for AMEA Members and the state.

AMEA Focuses on Energy Efficiency. During 2008, AMEA contin-

ued its efforts to explore best practices in the area of energy efficiency

on behalf of its Members. Efforts have included discussions with the

Alabama Department of Economic and Community Affairs (ADECA)

and Central Alabama Regional Planning and Development Commission

(CARPDC). ADECA’s Weatherization Program helps reduce energy costs

for low-income households by increasing the energy efficiency of their

homes, while ensuring their health and safety. On average, homes receiv-

ing weatherization services will see an average energy savings of $358 per

year. Weatherization focuses on the elderly, people with disabilities, fami-

lies with children, and households which are high energy users. Weath-

erization typically includes installing attic and wall insulation, repairing

leaky or broken windows and doors, sealing air leaks into the home,

testing home appliances for energy usage, heating and cooling system

tune-ups and repairs and replacing incandescent light bulbs with highly-

efficient compact fluorescent light bulbs. CARPDC has expressed an

interest in partnering with AMEA to seek grant opportunities for AMEA’s

Members which reach individual households. Additional benefits of these

initiatives will greatly enhance the ADECA’s Weatherization Program and

aid in bringing additional U.S. Department of Energy investment into the

state.

AMEA and Its Members Continue to Benefit from Hometown

Connections®. 2008 was a very good year for Hometown Connections,

with very strong performance from our core partners, such as Milsoft and

Survalent. The addition of Cogsdale and active discussions with AMR/

AMI vendors should position Hometown Connections very favorably in

addressing many of the most significant needs of public power.

AMEA Committed to Its Mission. AMEA provides a vital service –

electricity that powers our Member communities and the 350,000 cus-

tomers of those public power communities. AMEA’s planning always has

and always will focus on what its Members need – a reliable and eco-

nomical source of energy and the services and support to make Members

successful. Living up to its mission of providing an economical source

of electricity, AMEA’s average FY 2008 firm delivered cost of power to its

Members was 62.6 mills per kilowatt hour.

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 8: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Connect

with Alexander City at

www.alexandercityonline.com

Alexander Cityn n n n n n n n n n n n n n n n Connecting With Our Members

6

Page 9: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members

Dothan

7

Connect

with Dothan at

www.dothan.org

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 10: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members

Fairhope

8

Connect

with Fairhope at

www.cofairhope.com

Page 11: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

LaFayetten n n n n n n n n n n n n n n n Connecting With Our Members

9

Connect

with LaFayette at

www.lafayetteal.com

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 12: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members

Lanett

10

Connect

with Lanett at

www.cityoflanett.com

Page 13: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Luverne Electric Boardn n n n n n n n n n n n n n n n Connecting With Our Members

Connect

with Luverne at

www.luverne.org

11

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 14: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

12

Opelikan n n n n n n n n n n n n n n n Connecting With Our Members

Connect

with Opelika at

www.opelika.org

12

Page 15: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

13

Piedmontn n n n n n n n n n n n n n n n Connecting With Our Members

Connect

with Piedmont at

www.piedmontcity.org

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 16: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

14

Connect

with Riviera Utilities at

www.rivierautilities.com

n n n n n n n n n n n n n n n n Connecting With Our Members

Riviera Utilities

14

Page 17: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

15

Sylacauga Utilities Boardn n n n n n n n n n n n n n n n Connecting With Our Members

Connect

with Sylacauga at

www.sylacauga.net

15

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 18: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members

Utilities Board of Tuskegee

16

Connect

with Tuskegee at

www.yourubt.net

Page 19: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

17

n n n n n n n n n n n n n n n n Connecting With Our Members

“We believe that it is imperative to pursue

the highest standards of performance, ethics and accountability

in every aspect of our business operations.

This is what our Members expect from us and

what we strive to achieve every day.”

Fred Clark President & CEO

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 20: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Alexander Cityn n n n n n n n n n n n n n n n Connecting With Our Members

18

n n n n n n n n n n n n n n n n Connecting With Our Members

Board of Directorsn n n n n n n n n n n n n n n n Connecting With Our Members

18

Wayne DukeChairman

Sylacauga Utilities Board

Donald F. McClellanVice Chairman

City of Alexander City

Gary FullerSecretary-Treasurer

City of Opelika

Mike DuggerRiviera Utilities-Foley

Bill FannCity of Piedmont

Tim KantCity of Fairhope

Paul LeeCity of Dothan

Henry OsborneCity of Lanett

Morris TateLuverne Electric Board

Alan WillifordManager of Planning

and Engineering

Tim FosterManager of Operations

Raymond W. PhillipsManager of Compliance

and Special Projects

Anne GradyEconomic Development

Representative

Page 21: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members n n n n n n n n n n n n n n n n Connecting With Our Members

Dothan2008 Annual Report n n n n n n n n n n n n n n n n n n n n n n n

19

n n n n n n n n n n n n n n n n Connecting With Our Members

PARTICIPATING MEMBERSCity of Alexander CityCity of DothanCity of FairhopeCity of LaFayetteCity of LanettCity of OpelikaCity of PiedmontThe Utilities Board of the City of FoleyThe Electric Board of the City of LuverneThe Utilities Board of the City of SylacaugaThe Utilities Board of the City of Tuskegee

CONSULTING ENGINEERSR.W. Beck, Inc.Orlando, Florida

GENERAL COUNSELBradley Arant Boult & Cummings, LLPMontgomery, Alabama

MILLER, BALIS & O’NEIL, P.C. Washington, D.C.

BOND FUND TRUSTEERegions BankBirmingham, Alabama

FINANCIAL ADvISORThe Frazer Lanier CompanyMontgomery, Alabama

AMEA Management Staff

Fred D. Clark, Jr.President & CEO

Thomas E. BartelsDirector of Marketing and Special Projects

J. Marlin WadeChief Financial Officer

Lisa M. MillerManager of Communications

and Marketing

Mike DuggerRiviera Utilities-Foley

Bill FannCity of Piedmont

Tim KantCity of Fairhope

Paul LeeCity of Dothan

Henry OsborneCity of Lanett

Morris TateLuverne Electric Board

Alan WillifordManager of Planning

and Engineering

Tim FosterManager of Operations

Raymond W. PhillipsManager of Compliance

and Special Projects

Anne GradyEconomic Development

Representative19

2008 in Review n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 22: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Alexander Cityn n n n n n n n n n n n n n n n Connecting With Our Members

20

n n n n n n n n n n n n n n n n Connecting With Our Members

ASSETS 2008 2007

PROPERTY AND EQUIPMENT -- NET $35,606,393 $37,509,156

OTHER LONG-TERM ASSETS: Investments 404,267 369,794 Participant receivables 69,263 211,018 Capital fund program receivable 558,832 717,668

Total other long-term assets 1,032,362 1,298,480

SPECIAL FUNDS INVESTED: Debt service fund (restricted) 2,927,186 2,904,905 Reserve and contingency fund 50,000 50,000

Total special funds invested 2,977,186 2,954,905

CURRENT ASSETS: Funds invested: Revenue fund 21,608,490 17,211,085 Operation and maintenance fund 7,356,923 12,096,991 Special funds -- debt service fund (restricted) 243,859 243,841 Total funds invested 29,209,272 29,551,917

CURRENT ASSETS (CONT.) 2008 2007

Participant receivables 31,029,041 37,889,999 Other receivables 135,870 102,225 Materials and supplies 184,592 186,855 Capital fund program receivable 158,834 198,832 Prepaid expenses 118,763 112,308

Total current assets 60,836,372 68,042,136 DEFERRED COSTS: Regulatory assets 2,199,171 2,436,698 Unamortized bond issuance costs-net of accumulated amortization of $396,459 (2008) and $321,548 (2007) 1,129,308 1,204,219

Total deferred costs 3,328,479 3,640,917 TOTAL ASSETS $103,780,792 $113,445,594

Continued

n n n n n n n n n n n n n n n BALANCE SHEETS n n n n n n n n n n n n n n n

As of September 30, 2008 and 2007n n n n n n n n n n n n n n n BALANCE SHEETS n n n n n n n n n n n n n n n

As of September 30, 2008 and 2007

20

Page 23: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n Connecting With Our Members n n n n n n n n n n n n n n n n Connecting With Our Members

Dothan2008 Annual Report n n n n n n n n n n n n n n n n n n n n n n n

21

LIABILITIES AND NET ASSETS 2008 2007 LONG-TERM DEBT -- Revenue bonds -- net of unamortized discounts $40,229,581 $41,129,271

REGULATORY LIABILITIES -- Net costs to be refunded to participants 23,952,917 20,481,282

CURRENT LIABILITIES: Current maturities of revenue bonds 910,000 885,000 Amounts payable under power supply contracts 21,486,774 34,578,874 Special funds -- accrued interest on revenue bonds 168,026 170,091 Other current liabilities 945,503 1,181,559

Total current liabilities 23,510,303 36,815,524

TOTAL LIABILITIES 87,692,801 98,426,077

NET ASSETS Invested in capital assets, net of related debt (5,533,188) (4,505,115) Restricted for debt service 3,171,045 3,148,746 Unrestricted 18,450,134 16,375,886 TOTAL NET ASSETS 16,087,991 15,019,517 TOTAL LIABILITIES AND NET ASSETS $103,780,792 $113,445,594

(Concluded)

n n n n n n n n n n n n n n n BALANCE SHEETS n n n n n n n n n n n n n n n

As of September 30, 2008 and 2007n n n n n n n n n n n n n n n BALANCE SHEETS n n n n n n n n n n n n n n n

As of September 30, 2008 and 2007

21

Page 24: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

2008 2007

OPERATING REVENUES: Sales of electricity to participants $211,077,261 $180,085,458 Sales of electricity -- other 1,213,206 240,209 Total operating revenues 212,290,467 180,325,667

OPERATING EXPENSES: Partial requirements services: Purchased power 185,131,507 160,974,554 Transmission and distribution 12,123,937 12,111,703 Plant operating expenses 1,579,477 2,428,190 Cost of other electricity sales 949,660 148,612 Other operating and maintenance expenses 658,726 980,950 Administrative and general expenses 4,039,715 4,116,142 Amortization and depreciation 2,380,717 2,365,577

Total operating expenses 206,863,739 183,125,728

NET OPERATING GAIN (LOSS) 5,426,728 (2,800,061)

2008 2007

OTHER INCOME (EXPENSE): Interest expense -- net of capitalized interest (2,039,023) (1,865,082) Interest income 823,104 1,149,790 Investment gain (loss) 34,473 (5,750) Interest rate swap agreement gain 773,314 Other income 380,048 46,491 Amortization of bond discounts, issuance costs, and excess costs of bond refundings (85,221) (86,975)

Total other (expense) income (886,619) 11,788

CHANGES IN NET COSTS TO BE REFUNDED TO PARTICIPANTS (3,471,635) 3,768,635

EXCESS OF REVENUES OVER EXPENSES 1,068,474 980,362

NET ASSETS: Balance -- beginning of year 15,019,517 14,039,155 Balance -- end of year $16,087,991 $15,019,517

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETSn n n n n n n n n n For the Years Ended September 30, 2008 and 2007 n n n n n n n n n n

22

STATEMENTS OF CASH FLOWSn n n n n n n n n n For the Years Ended September 30, 2008 and 2007 n n n n n n n n n n

Page 25: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Dothan2008 Annual Report n n n n n n n n n n n n n n n n n n n n n n n

23

2008 2007 OPERATING ACTIVITIES: Cash received from sales of electricity $219,241,145 $174,774,676 Cash paid under power supply contracts (211,474,070) (170,270,842) Cash paid to other suppliers and employees (6,536,573) (7,614,661) Refund of deposit 1,070,386 Other cash receipts 361,883 173,163 Net cash provided by (used in) operating activities 1,592,385 (1,867,278)

CAPITAL AND RELATED FINANCING ACTIVITIES: Payment for acquisition of property and equipment (148,168) (348,722) Proceeds from sale of emission allowances 282,000 Repayment of line of credit (511,700) Principal paid on revenue bond maturities (885,000) (865,000) Interest paid on revenue bonds (2,041,087) (2,061,847)

Net cash used in capital and related financing activities (2,792,255) (3,787,269)

2008 2007

INVESTING ACTIVITIES: Payments for purchases of funds invested (3,064,705) (3,090,381) Proceeds from sale of funds invested 3,064,686 3,090,444 Interest income received 859,821 1,434,042

Net cash provided by investing activities 859,802 1,434,105

NET DECREASE IN CASH AND CASH EQUIVALENTS (340,068) (4,220,442)

CASH AND CASH EQUIVALENTS –Beginning of year 29,296,991 33,517,433

CASH AND CASH EQUIVALENTS –End of year $28,956,923 $29,296,991

Continued

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETSn n n n n n n n n n For the Years Ended September 30, 2008 and 2007 n n n n n n n n n n

STATEMENTS OF CASH FLOWSn n n n n n n n n n For the Years Ended September 30, 2008 and 2007 n n n n n n n n n n

23

Page 26: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

2008 2007 RECONCILIATION OF NET OPERATING LOSS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Net operating gain (loss) $5,426,728 ($2,800,061) Adjustments to reconcile net operating loss to net cash (used in) provided by operating activities: Amortization and depreciation 2,380,717 2,365,577 Noncash operating expense amount 13,085 Changes in assets and liabilities: Decrease (increase) in receivables 7,193,045 (5,470,207) Increase in prepaid expenses (6,455) (22,008) Decrease in deposits 1,070,386 Decrease (increase) in materials and supplies 2,263 (81,767) Decrease (increase) in amounts payable under power supply contracts (13,123,245) 3,064,625 Decrease in other liabilities (280,668) (6,908) Total adjustments (3,834,343) 932,783

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $1,592,385 ($1,867,278)

(Concluded) 24

A complete presentation of the 2008 Annual Financial Statements can be found at www.amea.com, Publications, Financial Reports.

STATEMENTS OF CASH FLOWS n n n n n n n n n n For the Years Ended September 30, 2008 and 2007 n n n n n n n n n n

Page 27: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

n n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n nn n n n n n n n n n n n n n n n n n n n n n n n n n n n

Page 28: nnnnnnnnnnnnnnnnnnnnnConnecting With Our Members 2008 in ... · A Letter from the President & CEO nnnnnnnnnnnnnnnnConnecting With Our Members Reflections of 2008 2008 in Review nnnnnnnnnnnnnnnnnnnnnnnnnnn

Alexander City Dothan Fairhope LaFayette

Lanett

LuverneElectricBoard

Opelika Piedmont Riviera Utilities

Sylacauga UtilitiesBoard

Utilities Board of Tuskegee

Alabama Municipal Electric Authority804 South Perry Street

Montgomery, Alabama 36104(334) 262-1126 n Fax (334) 262-2267

www.amea.com