2023 Annual Report
84 Years
1939-2023
Serving in Times of Need
As we shape Wiregrass Electric Cooperative’s future, our mission as a member-owned cooperative is summed up by our 2023 Annual Meeting theme: Building a Powerful Legacy.
The past year presented challenges, both expected and unforeseen. The economic landscape shifted, subtly in some places and sharply in others. Perhaps you felt it at the grocery store or when budgeting your household expenses. We noticed it too, and we took methodical steps to address these challenges without losing sight of our mission to provide reliable and affordable energy.
Our cooperative navigated complex terrain, from hurdles associated with costs to equity considerations and the rising energy demand. We adjusted our rate structure to factor in costs associated with demand, balancing immediate needs with long-term sustainability. While these are intricate matters, we remain committed to transparency and integrity, ensuring our members are at the center of every decision.
Of particular concern is the critical role played by peak demand, specifically from 6-9 a.m. during the winter. These peaks are a significant component of the equation determining the cost of wholesale power. Our focus is on reducing this demand to benefit all members. We encourage you to join this crucial effort as we work together to lay the strongest foundations for our legacy.
While recognizing the challenges, we also embrace our role in making a better community. It’s not about grand gestures. Instead, our goal, as always, is to consistently support our members.
In crafting our legacy, we are guided by our core values: reliability, affordability, integrity and a determination to do what’s right for the communities we serve. While more challenges may arise, we stand ready to meet them with careful planning and vision, always with our members’ best interest in mind.
We thank you for placing your trust in Wiregrass Electric. It’s a responsibility we carry with pride and humility, knowing our efforts are building a powerful legacy.
Your Board of Trustees
David Winstead
President, District 9
Randy Odom
Vice President, District 2
Debra E. Baxley
Secretary District 1
John Clark Jr.
District 3
Danny McNeil
District 4
Tracy Reeder
District 5
Kip Justice
District 6
Donald Ray Wilks
District 7
Greg McCullough
District 8
Powering Forward
Our partnership with PowerSouth ensures a reliable power supply that enhances our ability to meet the rising demand for electricity while balancing costs. PowerSouth added several new generation sources, such as the Lowman Energy Center — a natural gas plant in Leroy — the Vogtle Nuclear Plant in Georgia and utility-scale solar farms. These additions support immediate needs and future growth.
Tyler Driskell,
Journeyman Lineman
Safety Certified
Safety at Wiregrass Electric Cooperative isn’t a checklist — it’s a lifeline to reliable service. Passing the Rural Electric Safety Achievement Program’s assessment is no small feat. This inspection underscores WEC’s pledge to lineworkers and members. From safety posters to training and audits, WEC makes safety a shared responsibility. By prioritizing safety, WEC ensures a well-protected and prepared workforce that stands ready to provide members with consistent, reliable and affordable electric service.
Building for the Future
An active partner in economic development, WEC leverages resources in innovative ways to shape a future where community and commerce thrive.
- WEC played an instrumental role in developing a speculative building in the Geneva County Industrial Park, now home to ISA Corporation, which is readying for operations. Since the WEC service area is 80% residential, adding such commercial customers creates a more diverse and better-balanced system while also promoting growth.
- By channeling over $482,000 into the Sam Houston and Geneva County industrial parks through the Growing Alabama tax credits to fund lighting, road and site improvements, WEC helped attract commercial interest.
- Collaboration with civic organizations and elected officials, including involvement in the Highway 167 Feasibility Study, reflects a unified and forward-thinking strategy for development. Together, we’re working to grow the region commercially, enhance safety along heavily trafficked routes and make the Wiregrass a more inviting place to visit and live.
Community Solar
Our Green Power Choice initiative allows our members to tap into solar energy without the need for personal solar panels — making renewable energy accessible to all. Our co-op’s own community solar garden next to our Hartford office is a representation of WEC’s belief in the power of informed choices.
Easy, Convenient Business
In today’s fast-paced world, convenience is key. The Wiregrass Electric mobile app and website were designed with you in mind. Want to sign up for a new service? Report an outage? Check your energy usage or pay your bill at 2 a.m.? WEC makes it easy.
With user-friendly features and intuitive design, handling your business with WEC is as simple as a few clicks or taps on your device. Our digital platforms mirror our physical presence — accommodating, easy to navigate and always with members’ needs at the forefront. Together, we’re creating a cooperative experience that fits your lifestyle.
A Member-Centric Approach
At the heart of WEC’s operations lies a willingness to serve. Driven by the needs and interests of its members, our member services representatives do more than merely handle transactions — they build relationships. Friendly, courteous and attentive, our team is a go-to resource for members seeking assistance. Whether it’s an inquiry about a bill, guidance on energy-saving programs or simply a friendly check-in, WEC is here for you, treating every member as a valued part of our cooperative family.
Powerful Experiences
This year, we returned to the Montgomery and Washington, D.C. youth tours to offer Wiregrass students a personal experience learning about government, U.S. history and their relationship to the formation and powerful roles of electric cooperatives. For the third year in a row, we also gathered these rising seniors for a localized version of Youth Tour, where they learned about good governance from our local delegation. By providing these opportunities, we hope to empower students with the knowledge and guidance to become future leaders.
Reaching Members in Various Forms
Our Alabama Living publication keeps our members informed with stories about Wiregrass Electric Cooperative’s varied activities — service projects, grant awards through Operation Round Up, civic involvement, reminders involving your service, various opportunities and events and much more. But we don’t stop there. We share even more timely information via your monthly bill insert, My Hometown Power, and our e-newsletters. Through our social media pages on Facebook, Instagram and Twitter, we share relevant news about the weather, our cooperative and the economy, as well as important updates about outages and noteworthy events.
Staying connected and transparent with our members is a priority, and we ensure success through multiple channels of communication.
Big Enough to Serve, Local Enough to Care
At Wiregrass Electric Cooperative, we’re driven by a core principle to serve our community in meaningful ways. Here’s how:
-
CoBank awarded WEC a $10,000 grant. With employee contributions and corporate support, WEC matched the grant, donating $20,000 to the Wiregrass United Way, which supports 38 local charities.
- Launched in 2015, Operation Round Up is our initiative to foster positive change. In 2023, this foundation reached $1 million in total donations, thanks to members who voluntarily round up their monthly bills to the next highest dollar. Every single penny contributed found its way back to our communities to help numerous worthy causes, including scholarships and the Silent Heroes of the Wiregrass program — a partnership with WTVY.
- Our first ORU Charitable Golf Tournament in 2022 raised over $50,000 to bolster the foundation’s impact. Our second tournament in 2023 quickly filled team rosters, displaying overwhelming community support.
WEC’s efforts echo our motto: Big enough to serve, local enough to care. Compassion into action — that’s our legacy.
Operation Round Up
$6,050
Fire/Rescue/Police
$32,000
Schools
$44,000
Nonprofit community organizations
$37,550
Scholarships
$9,000
Individual Grants
$24,000
Media partnerships
(Silent Heroes)
Powering Affordability
Amid the challenges of inflation and rising power costs, WEC has taken deliberate steps to maintain financial stability allowing us since 2010 to return $12,985,084 to members through the power cost adjustment. However in 2022, we faced a debit of $2,003,399.46, driven by prolonged fuel cost increases. An all-time high peak electrical demand in December intensified these challenges.
Consequently, we’ve fine-tuned our rate structure to incorporate a portion of demand costs for immediate and long-lasting financial stability. Changes were necessary and made with thoughtful consideration, positioning us well for the future.
Building Resilience
WEC’s financial stewardship reflects our commitment to reliability and growth. Margins are integral to our operations — essential for financing growth and improving services. Through 2022, we’ve returned $15,928,363.83 to members via capital credit retirements. We continually assess our financial approach and adapt to challenges and pressures to ensure that we remain strong and responsive.
Our measured response to demand, material shortages and inflation is to build equity and resilience.
With these strategies, we’re not only responding to today’s challenges but also preparing for the future. It’s all part of our commitment to keeping the cooperative on strong financial footing, today and in the years ahead.
Balance Sheets
Statements are for the years ended April 30, 2023, and April 30, 2022.
Assets
Utility Plant | 2023 | 2022 |
---|---|---|
Utility Plant | $139,421,354 | $31,408,864 |
Construction Work in Progress | 674,133 | 904,534 |
Total Utility Plant | $140,095,487 | $132,313,398 |
Less: Accumulated Depreciation | $30,644,141 | $29,045,076 |
Net Utility Plant | 109,451,346 | 103,268,322 |
Other Assets and Investments | 2023 | 2022 |
---|---|---|
Investments in Associated Organizations | 24,672,201 | 23,866,673 |
Temporary Cash Investments | 2,000,000 | 2,000,000 |
Economic Development Notes Receivable, Less Allowance of $150,000 in 2023 and 2022 | 1,421,805 | 1,770,126 |
Total Other Assets and Investments | 28,094,006 | 27,636,799 |
Current Assets: | 2023 | 2022 |
---|---|---|
Cash and Cash Equivalents | 12,634,034 | 12,611,963 |
Accounts receivable: Customers, Less Provision for Doubtful Accounts of $28,525 in 2023 and $37,903 in 2022 | 1,588,413 | 1,143,632 |
Other Accounts Receivable | 96,265 | 112,805 |
Unbilled Revenue | 2,857,364 | 2,786,788 |
Materials and Supplies | 1,522,451 | 1,011,492 |
Other Current and Accrued Assets | 420,638 | 429,251 |
Total Current Assets | 19,119,165 | 18,095,931 |
Deferred Charges: | 2023 | 2022 |
---|---|---|
Work Plan and Preliminary Charges | 28,270 | 41,156 |
Total Deferred Charges | 28,270 | 41,156 |
Total Assets | 2023 | 2022 |
---|---|---|
Total | $156,692,787 | $149,042,208 |
Equities and Liabilities
Statements are for the years ended April 30, 2023, and April 30, 2022.
Equities: | 2023 | 2022 |
---|---|---|
Memberships | $95,600 | $94,480 |
Patronage Capital | 70,062,066 | 69,581,521 |
Other Equities | 6,860,102 | 6,458,497 |
Total Equities | 77,017,768 | 76,134,498 |
Noncurrent Liabilities: | 2023 | 202 |
---|---|---|
Mortgage Notes Payable, Net of Current Maturities | 64,930,201 | 59,664,954 |
Capital Lease Obligations | – | 1,538,099 |
Right-of-Use Obligation, Net of Current Maturities | 1,687,325 | – |
Total Noncurrent Liabilities | 66,617,526 | 61,203,053 |
Current Liabilities: | 2023 | 2022 |
---|---|---|
Current Maturities on Notes Payable | 2,360,827 | 2,292,594 |
Current Maturities on Capital Lease Obligations | – | 484,153 |
Current Maturities on Right-of-Use Obligations | 425,828 | – |
Accounts Payable: Trade | 527,384 | 215,320 |
Accounts Payable: Purchased Power | 2,893,781 | 2,361,896 |
Customer Deposits | 2,387,355 | 2,329,986 |
Accrued Liabilities: Taxes | 1,442,552 | 1,331,919 |
Other Accrued Liabilities | 1,353,099 | 1,488,789 |
Total Current Liabilities | 11,390,826 | 10,504,657 |
Deferred Credits | 2023 | 2022 |
---|---|---|
Deferred Revenue | 1,666,667 | 1,200,000 |
Total Deferred Credits | 1,666,667 | 1,200,000 |
Total Equities and Liabilities | $156,692,787 | $149,042,208 |
Statement of Revenue
Statements are for the years ended April 30, 2023, and April 30, 2022.
Operating Revenue | 2023 | 2022 |
---|---|---|
Revenue From Contracts With Customer | $55,916,676 | $49,025,651 |
Other | 890,631 | 1,318,772 |
Total | 56,807,307 | 50,344,423 |
Operating Expenses: | 2023 | 2022 |
---|---|---|
Cost of Power | 36,951,549 | 31,300,036 |
Distribution – Operations | 2,839,480 | 2,572,829 |
Distribution – Maintenance | 3,645,411 | 3,163,699 |
Consumer Accounts Expense | 3,382,332 | 3,199,830 |
Administrative and General | 2,919,980 | 2,428,169 |
Depreciation Expense | 4,292,851 | 4,120,529 |
Taxes | 643,757 | 570,945 |
Total Operating Expenses | 54,675,360 | 47,356,037 |
Operating Income | 2023 | 2022 |
---|---|---|
Total | 2,131,947 | 2,988,386 |
Margins | 2023 | 2022 |
---|---|---|
Fixed Charges: Interest Expense | 1,865,805 | 1,740,596 |
Operating Margins After Fixed Charges | 266,142 | 1,247,790 |
G&T and Other Capital Credits | 991,812 | 938,433 |
Net Operating Margins | 1,257,954 | 2,186,223 |
Nonoperating margins: Interest Income | 304,659 | 260,435 |
Other nonoperating revenue | 117,874 | 115,933 |
Total nonoperating margins | 422,533 | 376,368 |
Net Margins for the Year | $1,680,487 | $2,562,591 |
WEC Operation Round Up Charitable Foundation
Statements are for the years ending Dec. 31, 2022, and Dec. 31, 2021.
Statement of Financial Position
Assets | 2022 | 2021 |
---|---|---|
Cash | $41,383 | $10,920 |
Contributions Receivable | $29,856 | $29,845 |
Total Assets | $71,239 | $40,765 |
Liabilities | 2022 | 2021 |
---|---|---|
Funds Payable | $44,000 | $30,400 |
Net Assets | 2022 | 2021 |
---|---|---|
Without Donor Restriction | $27,239 | $10,365 |
Total Liabilities and Net Assets | 2022 | 2021 |
---|---|---|
Total | $71,239 | $40,765 |
Statement of Activities
Revenue | 2022 | 2021 |
---|---|---|
Contributions of cash and other financial assets | $119,146 | $119,550 |
Golf Tournament | 70,150 | – |
Contributions of non-financial assets | 26,722 | 17,844 |
Total Revenue | 216,018 | 137,434 |
Expenses | 2022 | 2021 |
---|---|---|
Program Services | 164,600 | 132,059 |
Supporting Services: Management and general | 22,685 | 18,319 |
Supporting Services: Fundraising | 35,209 | – |
Total supporting services expenses | 57,894 | 18,319 |
Total Expenses | 222,494 | 150,378 |
Change in Net Assets | 2022 | 2021 |
---|---|---|
Before Contributed Services from Affiliate | (3,167) | (7,440) |
Contributed Services from Affiliate | 23,350 | 11,895 |
Change in Net Assets | 16,874 | (1,049) |
Net Assets At Beginning of Year | 10,365 | 11,414 |
Net Assets At End of Year | $27,239 | $10,365 |
Statement of Cash Flows
Cash Flows From (Used For) Operating Activities | 2022 | 2021 |
---|---|---|
Change in Net Assets | $16,874 | $(1,049) |
Adjustments to Reconcile Change in Net Assets to Net Cash From (Used For) Operating Activities Decrease (Increase) in Operating Liabilities | ||
Contributions Receivable | (11) | (161) |
Funds Payable | 13,600 | 2,900 |
Net Cash From (Used For) Operating | 30,463 | 1,690 |
Net Assets | 2022 | 2021 |
---|---|---|
Net Increase in Cash | 30,463 | 1,690 |
Cash at Beginning of Year | 10,920 | 9,230 |
Cash at End of Year | $41,383 | $10,920 |