Annual Report

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 headshot

David Winstead
President, District 9

Randy Odom headshot

Randy Odom
Vice President, District 2

Debra Baxley headshot

Debra E. Baxley
Secretary District 1

John Clark Jr. headshot

John Clark Jr.
District 3

Danny McNeil headshot

Danny McNeil
District 4

Tracy Reeder headshot

Tracy Reeder
District 5

Kip Justice headshot

Kip Justice
District 6

Donald Ray Wilks headshot

Donald Ray Wilks
District 7

Greg McCullough headshot

Greg McCullough
District 8

Powering Forward

Lowman Energy Center

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

Workers at ISA Alabama Corporation working hard
to open their manufacturing plant located in the
Geneva County Industrial Park in Hartford, AL.

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

Green power choice logoOur 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.

Ribbon cutting ceremony for Green Power Choice initiative

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.

Laptop and mobile device both displaying the Wiregrass Electric website homepage

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.

Cassy Haveard,
Member Services
Representative-Lead Cashier

Powerful Experiences

Wiregrass Electric’s 2023 Montgomery Youth Tour delegation meet with Rep. Jeff Sorrells to learn about civics and leadership.

Students standing in front of Washington MonumentThis 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

operation round up logoAt Wiregrass Electric Cooperative, we’re driven by a core principle to serve our community in meaningful ways. Here’s how:

  • Jeff Findley,

    Asplundh

    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

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.

65.4¢: cost of wholesale power; 5.2¢ administrative and general; 7.6¢: depreciation expense; 3.3¢: interest expense; 6.4¢: maintenance; 1.1¢: taxes; 5¢: operations; 6¢: consumer accounts

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