138
Charles C. Walker ArenaSite of Member Meeting and Events
Georgia International Horse Park1996 Centennial Olympic ParkwayConyers, GA 30013
Gees Mill Road
Man
e St
reet
Centennial Olym
pic ParkwayWalkway
to Arena
Ye
llo
w R
ive
r
Handicap Entrance Only
gateA
gateB
Main Entrance
Mane Street
Handicap Parking
are an essential part of what keeps the energy flowing at our co-op, not only the electrical connections along our power lines, but also the interpersonal connections among our members, employees and the communities we serve.
Snapping Shoals EMC recognizes the importance of these connections. We are dedicated to members like the ones appearing in this year’s Annual Report. We appreciate the role they play in energizing our cooperative.
We invite all our members to attend the 79th Annual Meeting on July 20, 2017 at the Georgia Interna-tional Horse Park in Conyers, Georgia. Registration starts at 8:30 a.m. and ends promptly at 11:15 a.m. The business session will begin at 11:30 a.m. Prize drawings will be held after the business session ends.
Map to 2017 Snapping Shoals EMC Annual Meeting
DIRECTIONS:Take Exit 82 off Inter-
state 20 in Conyers. Travel north approximately 4 miles. Turn right onto Centennial Olympic Parkway. The main
entrance to the park is 2 miles ahead on
the right.
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r) O
mar
i Am
ster
dam
, Bra
d Ca
pps,
Aubrey H
arvey, F
rank Askew, Yadira Colin, Steve Helm, Faye Sharpe, Ciara Chesser, Mei Li, Melissa Calloway, Lennox Amsterdam
, Austin Darby
CONNECTIONS
Jake Carter Henry County • District 4
BOARD OF DIRECTORSSNAPPING SHOALS EMC
Frank Lineberger DeKalb County • District 3
D.L. “Pete” Knox Newton County • District 1
Dr. Joseph Sharp Rockdale County • District 2
Anthony Norton Chairman • Rockdale County • District 2
Dr. Millard Ross Rockdale County • District 2
James I. White Henry County • District 4
Ruby Woods Secretary/Treasurer • Newton County • District 1
Gene Morris Assistant Secretary/Treasurer • Henry County • District 4
Walter Johnson Vice Chairman • DeKalb County • District 3
Jeanette Berry Newton County • District 1
LETTER TO OUR MEMBERS
Snapping Shoals EMC will next year celebrate its 80th Anniversary as an electric cooperative. We were organized in 1938 to deliver safe, reliable and affordable power to our member-owners. This consistent goal, for now 79 years, has made our longevity possible. This goal keeps us member-focused and drives us every single day to provide service that surpasses expectations. Member–focused and quality service above all else are the core values that define our co-op and keep us dedicated to our steadfast commitment to “keeping the lights on.” This commitment is the promise of the 11 Directors that you elect to the Board of Snapping Shoals EMC, as well as that of our 235 dedicated employees.
By being a Snapping Shoals EMC member-owner, you have the distinct honor of being served by one of the lowest cost electric utility providers in the state. We have always prided ourselves on being a low cost provider and 2017 is no different. In fact, according to the 2017 Georgia Public Service Commission survey of winter rates among all 94 electric providers in Georgia, your co-op has the 5th lowest residential rates at 1000 kWh, 4th lowest residential rates at 1500 kWh and 2nd lowest residential rates at 2000 kWh. Our Board of
We thank you for being a member of Snapping Shoals EMC and are proud to be your energy services provider. Our top priority not only includes the delivery of reliable and affordable electricity but also expands beyond to provide service that exceeds your expectations. We are committed to putting you, the member-owner, first above all else and are dedicated to meeting your needs in the best possible way.
Anthony NortonChairman, Board of Directors
Brad ThomasPresident/CEO
Directors’ commitment to being good stewards of the assets you entrust us to manage as well as our highly skilled and hard-working employees makes being one of the most affordable electric utilities in the state possible. We are truly proud of all of those who work for Snapping Shoals EMC and applaud their daily efforts to control costs for our member-owners. You are fortunate to have some of the brightest and most motivated employees serving you.
With the cost of wholesale power accounting for 72 percent of our expenses, managing these costs will continue to be a constant priority and a challenge as we make our best effort to keep future rates as low as possible. As we have stated before, the most reasonable way to meet any impending challenge and still provide reliable, high-quality electricity while keeping rates low is with a diversified supply of energy resources, including nuclear, natural gas, clean coal, energy efficiency, conservation and renewable energy. The least expensive resource today might not be the least expensive resource tomorrow. An “all of the above” strategy still makes sense, even in our ever increasingly complicated industry. This strategy will continue to assist us in the delivery of dependable power at a good value.
Snapping Shoals EMC also remains committed to being involved in the communities that we serve. Concern for Community, one of the seven guiding cooperative principles, is very near and dear to us. Through our participation and support of local organizations in the areas of civic, education, community activities and economic development, we aim to improve the quality of life for all the communities that we serve. Snapping Shoals EMC is proud to have been recognized by the Newton County School System as their 2017 “Partner in Education” award recipient. We are also very proud of our Bright Ideas, Washington Youth Tour, College Scholarships and Operation Round Up programs.
MISSION +
MEMBERS +
COOPERATIVE
2
LETTER TO OUR MEMBERS
Snapping Shoals EMC will next year celebrate its 80th Anniversary as an electric cooperative. We were organized in 1938 to deliver safe, reliable and affordable power to our member-owners. This consistent goal, for now 79 years, has made our longevity possible. This goal keeps us member-focused and drives us every single day to provide service that surpasses expectations. Member–focused and quality service above all else are the core values that define our co-op and keep us dedicated to our steadfast commitment to “keeping the lights on.” This commitment is the promise of the 11 Directors that you elect to the Board of Snapping Shoals EMC, as well as that of our 235 dedicated employees.
By being a Snapping Shoals EMC member-owner, you have the distinct honor of being served by one of the lowest cost electric utility providers in the state. We have always prided ourselves on being a low cost provider and 2017 is no different. In fact, according to the 2017 Georgia Public Service Commission survey of winter rates among all 94 electric providers in Georgia, your co-op has the 5th lowest residential rates at 1000 kWh, 4th lowest residential rates at 1500 kWh and 2nd lowest residential rates at 2000 kWh. Our Board of
We thank you for being a member of Snapping Shoals EMC and are proud to be your energy services provider. Our top priority not only includes the delivery of reliable and affordable electricity but also expands beyond to provide service that exceeds your expectations. We are committed to putting you, the member-owner, first above all else and are dedicated to meeting your needs in the best possible way.
Anthony NortonChairman, Board of Directors
Brad ThomasPresident/CEO
Directors’ commitment to being good stewards of the assets you entrust us to manage as well as our highly skilled and hard-working employees makes being one of the most affordable electric utilities in the state possible. We are truly proud of all of those who work for Snapping Shoals EMC and applaud their daily efforts to control costs for our member-owners. You are fortunate to have some of the brightest and most motivated employees serving you.
With the cost of wholesale power accounting for 72 percent of our expenses, managing these costs will continue to be a constant priority and a challenge as we make our best effort to keep future rates as low as possible. As we have stated before, the most reasonable way to meet any impending challenge and still provide reliable, high-quality electricity while keeping rates low is with a diversified supply of energy resources, including nuclear, natural gas, clean coal, energy efficiency, conservation and renewable energy. The least expensive resource today might not be the least expensive resource tomorrow. An “all of the above” strategy still makes sense, even in our ever increasingly complicated industry. This strategy will continue to assist us in the delivery of dependable power at a good value.
Snapping Shoals EMC also remains committed to being involved in the communities that we serve. Concern for Community, one of the seven guiding cooperative principles, is very near and dear to us. Through our participation and support of local organizations in the areas of civic, education, community activities and economic development, we aim to improve the quality of life for all the communities that we serve. Snapping Shoals EMC is proud to have been recognized by the Newton County School System as their 2017 “Partner in Education” award recipient. We are also very proud of our Bright Ideas, Washington Youth Tour, College Scholarships and Operation Round Up programs.
MISSION +
MEMBERS +
COOPERATIVE
2
Corey KiddRay Davis Middle School, Junior Solar Sprint team member
Sony GalaRay Davis Middle School Engineering & Technology Teacher, Junior Solar Sprint team sponsor
Adriana GuadagnoRay Davis Middle School, Junior Solar Sprint team member
Doster HarperEastside High School, Newton College and Career AcademySSMEC Washington Youth Tour Representative
Salimah ZiyadVeterans Memorial Middle School, Junior Solar Sprint team member
Cliff RobertsVeteran Memorial Middle School Physical Science Teacher, Junior Solar Sprint team sponsor
Nia AmbroiseVeterans Memorial Middle School, Junior Solar Sprint team member
Lizbeth SandovalVeterans Memorial Middle School, Junior Solar Sprint team member
Myah ScottVeterans Memorial Middle School, Junior Solar Sprint team member
SCHOOLS + STUDENTS + OPPORTUNITIESour commitment to the future
At Snapping Shoals EMC, we believe that an investment in the community’s young people of today ensures a brighter tomorrow for everyone, which is why we proudly offer scholarships and special programs for the youth in our community. ScholarshipsThe first Snapping Shoals EMC Scholarships were created in 1993 to recognize the achievements of outstanding high school students throughout our area. In 2004 we renamed them the Snapping Shoals EMC J.E. Robinson Memorial Scholarships in memory of our former manager, president and CEO J.E. “Ed” Robinson, who was at the helm of Snapping Shoals from 1953 to 1995. The Snapping Shoals EMC J.E. Robinson Memorial
4
Scholarships are currently worth $2,000 each and are awarded to 14 high school seniors each year. The number of scholarships per district is based on the percentage of Snapping Shoals members in each district.
The Snapping Shoals EMC All-Around Student Scholarships were created in 2007 to recognize the amazing high school students throughout our area who are able to balance involvement in extracurricular activities while maintaining an excellent academic record. Involvement in school and community activities is the primary consideration for the All-Around Student Scholarship. Academic ability and financial need are also factors in the selection of the scholarship recipients. The 6 Snapping Shoals EMC All-Around Student Scholarships are currently worth $2,000 each.
Washington Youth TourNot only are we helping build strong leaders for tomorrow through our scholarship programs, we’re also helping by offering the Washington Youth Tour experience. We once again sent three outstanding high school students on a fun-filled, educational trip to Washington, D.C., this year. Ronan Fitzgerald of Conyers, Doster Harper of Covington, and Emily Lent of Oxford joined teens from across the country on the 2017 Washington Youth Tour, which is a week-long trip to our nation’s capital where students visit historic sites, meet government leaders and get an up-close look at government in action.
Junior Solar SprintJunior Solar Sprint is a classroom based, hands-on, disciplinary program designed to teach principles of energy and science in an atmosphere that is fun and exciting for 6th, 7th and 8th grade students. All participants build small, solar-powered model cars using identical solar panels and motors. The chassis, wheels and transmission are made from any other materials. Students are encouraged to use math and science principles, together with their creativity, as a means of stimulating interest in technology and incorporating these principles in their education, daily practices and career plans.
Students from middle schools throughout our territory work together to build, decorate and test each car supplied by Snapping Shoals EMC. Trophies are awarded for the funniest car and the most creative car, as well as the fastest overall car. This year’s winners were: Veterans Memorial Middle School (fastest overall car), Piedmont Academy (funniest car) and Peachtree Academy (most creative car).
Bright IdeasWe award approximately $50,000 in grants to a number of teachers in Rockdale, Newton and Henry counties through the co-op’s Bright Ideas program each fall. The grants are
designed to help teachers who wish to extend educational opportunities and activities for students by developing student interests and abilities with innovative teaching ideas. The grants are funded from unclaimed capital credits.
Partners in EducationSnapping Shoals works with several schools throughout our service area through the Partners in Education program. The Partners in Education program is designed to create a close, working relationship between community organizations and schools. The purpose of the program is to enrich and expand the educational opportunities of students, while fostering a deeper understanding of the school system within the community.
Snapping Shoals
is proud to have been recog-
nized by the Newton County
School System as their 2017
“Partner in Education”
award recipient
Students and educators like the ones pictured above represent a portion of those involved in programs offered to our co-op’s communities.
5
Corey KiddRay Davis Middle School, Junior Solar Sprint team member
Sony GalaRay Davis Middle School Engineering & Technology Teacher, Junior Solar Sprint team sponsor
Adriana GuadagnoRay Davis Middle School, Junior Solar Sprint team member
Doster HarperEastside High School, Newton College and Career AcademySSMEC Washington Youth Tour Representative
Salimah ZiyadVeterans Memorial Middle School, Junior Solar Sprint team member
Cliff RobertsVeteran Memorial Middle School Physical Science Teacher, Junior Solar Sprint team sponsor
Nia AmbroiseVeterans Memorial Middle School, Junior Solar Sprint team member
Lizbeth SandovalVeterans Memorial Middle School, Junior Solar Sprint team member
Myah ScottVeterans Memorial Middle School, Junior Solar Sprint team member
SCHOOLS + STUDENTS + OPPORTUNITIESour commitment to the future
At Snapping Shoals EMC, we believe that an investment in the community’s young people of today ensures a brighter tomorrow for everyone, which is why we proudly offer scholarships and special programs for the youth in our community. ScholarshipsThe first Snapping Shoals EMC Scholarships were created in 1993 to recognize the achievements of outstanding high school students throughout our area. In 2004 we renamed them the Snapping Shoals EMC J.E. Robinson Memorial Scholarships in memory of our former manager, president and CEO J.E. “Ed” Robinson, who was at the helm of Snapping Shoals from 1953 to 1995. The Snapping Shoals EMC J.E. Robinson Memorial
4
Scholarships are currently worth $2,000 each and are awarded to 14 high school seniors each year. The number of scholarships per district is based on the percentage of Snapping Shoals members in each district.
The Snapping Shoals EMC All-Around Student Scholarships were created in 2007 to recognize the amazing high school students throughout our area who are able to balance involvement in extracurricular activities while maintaining an excellent academic record. Involvement in school and community activities is the primary consideration for the All-Around Student Scholarship. Academic ability and financial need are also factors in the selection of the scholarship recipients. The 6 Snapping Shoals EMC All-Around Student Scholarships are currently worth $2,000 each.
Washington Youth TourNot only are we helping build strong leaders for tomorrow through our scholarship programs, we’re also helping by offering the Washington Youth Tour experience. We once again sent three outstanding high school students on a fun-filled, educational trip to Washington, D.C., this year. Ronan Fitzgerald of Conyers, Doster Harper of Covington, and Emily Lent of Oxford joined teens from across the country on the 2017 Washington Youth Tour, which is a week-long trip to our nation’s capital where students visit historic sites, meet government leaders and get an up-close look at government in action.
Junior Solar SprintJunior Solar Sprint is a classroom based, hands-on, disciplinary program designed to teach principles of energy and science in an atmosphere that is fun and exciting for 6th, 7th and 8th grade students. All participants build small, solar-powered model cars using identical solar panels and motors. The chassis, wheels and transmission are made from any other materials. Students are encouraged to use math and science principles, together with their creativity, as a means of stimulating interest in technology and incorporating these principles in their education, daily practices and career plans.
Students from middle schools throughout our territory work together to build, decorate and test each car supplied by Snapping Shoals EMC. Trophies are awarded for the funniest car and the most creative car, as well as the fastest overall car. This year’s winners were: Veterans Memorial Middle School (fastest overall car), Piedmont Academy (funniest car) and Peachtree Academy (most creative car).
Bright IdeasWe award approximately $50,000 in grants to a number of teachers in Rockdale, Newton and Henry counties through the co-op’s Bright Ideas program each fall. The grants are
designed to help teachers who wish to extend educational opportunities and activities for students by developing student interests and abilities with innovative teaching ideas. The grants are funded from unclaimed capital credits.
Partners in EducationSnapping Shoals works with several schools throughout our service area through the Partners in Education program. The Partners in Education program is designed to create a close, working relationship between community organizations and schools. The purpose of the program is to enrich and expand the educational opportunities of students, while fostering a deeper understanding of the school system within the community.
Snapping Shoals
is proud to have been recog-
nized by the Newton County
School System as their 2017
“Partner in Education”
award recipient
Students and educators like the ones pictured above represent a portion of those involved in programs offered to our co-op’s communities.
5
TREES + COMMUNITY + RELIABILITY
Susan GranberyUrban & Community Forestry Coordinator, Georgia Forestry Commission, Certified Arborist
Beryl BuddRetired Community Forester, Wildfire Prevention Specialist, Certified Arborist
Seth HawkinsCommunity ForesterGeorgia Forestry Commission,Certified Arborist
Dr. Takila CurryVeterans Memorial Middle School Principal and “Making the Shade” Coordinator for West Newton Elementary
Janet RawlsPeeks Chapel Elementary Educator and “Making the Shade” Coordinator
Bobby FincherSnapping Shoals EMCDirector of Line Services
Robert BaughSnapping Shoals EMC Lead Right-of-Way Worker
Trees create an ecosystem that provides habitat and food for wildlife. They produce oxygen and absorb potentially harmful gases, such as sulfur dioxide and carbon monoxide. They cool paved surfaces, protect our watersheds and prevent erosion. Additionally, trees provide aesthetic and social benefits to our communities. Conflicts between trees and overhead power lines, however, can lead to power disruptions, safety hazards, increased utility costs and trimming practices that can disfigure trees. By making good choices about tree selection, planting location and care of trees, power lines and trees can co-exist. Proper tree location can not only enhance our communities, but also help homeowners save on energy costs.
Snapping Shoals is committed to balancing the importance of trees with the need to provide members with electricity. SSEMC continues to adhere to our right-of-way guidelines and has launched two new tree programs. The new programs were developed to reinforce our philosophy of “right tree, right place,” as well as provide members with the opportunity to take advantage of the energy-saving benefits provided by trees. Right-of-Way ManagementRight-of-way management is a critical part of maintaining a reliable supply of electricity for our members. One of the many ways that Snapping Shoals EMC provides you with safe, reliable electric service is right-of-way clearing or vegetation management. To do this, we control the growth of woody plants around power lines and other energized equipment. Tree limbs that come into contact with power lines are the most common cause of brief and prolonged power outages, especially during storms. Just one tree limb can knock out electric service to dozens of families up to several miles away. Interfering trees and brush also can delay the efforts to restore service that has been interrupted. SSEMC’s right-of-way policy maintains a minimum of 15 feet of right-of-way on either side, ground to sky. We also seek to maintain zero woody growth beneath the lines, as this area serves as a work zone for line maintenance and repair. New signs are being placed on power poles throughout our system to make the public aware of our right-of-way guidelines and to draw attention to potential hazards associated with overhead power lines. “Plan It Before You Plant It”“Plan It Before You Plant It” was implemented this year as a centralized communication tool that puts members in contact with SSEMC operations personnel regarding the planting of trees and shrubs. In addition to calling the Georgia Utilities Protection Center at 811, members should email [email protected] before planting any trees or shrubs. Under the High Voltage Safety Act, if you are performing any activity within the vicinity of an overhead high-voltage line, you are required to give notice to the Utilities Protection Center at least 72 hours in advance.
Community ProgramsSnapping Shoals continues its involvement in community-based tree programs like Making the Shade and Energy Saving Trees.
The Making the Shade program, created by the Georgia Forestry Commission in cooperation with the U.S. Forest Service, is designed to create healthier, shaded playground areas on elementary school campuses throughout Georgia. Traditional elementary school campus designs often eliminate the health benefits provided by shade trees. Snapping Shoals assists in these projects by working with host schools and State Community Foresters in planning and by providing equipment and personnel.
Energy-Saving Trees is an Arbor Day Foundation program that helps conserve energy and reduce energy bills through strategic tree planting. In partnership with the Georgia Forestry Commission, Snapping Shoals EMC provided 1,000 free trees to customers through Energy-Saving Trees. An online tool helps customers estimate the annual energy savings that result from planting trees in the most strategic location near their homes or businesses.
These are a few of the people involved in careful consideration of the trees growing in Snapping Shoals EMC’s communities and service territory.
6 7
TREES + COMMUNITY + RELIABILITY
Susan GranberyUrban & Community Forestry Coordinator, Georgia Forestry Commission, Certified Arborist
Beryl BuddRetired Community Forester, Wildfire Prevention Specialist, Certified Arborist
Seth HawkinsCommunity ForesterGeorgia Forestry Commission,Certified Arborist
Dr. Takila CurryVeterans Memorial Middle School Principal and “Making the Shade” Coordinator for West Newton Elementary
Janet RawlsPeeks Chapel Elementary Educator and “Making the Shade” Coordinator
Bobby FincherSnapping Shoals EMCDirector of Line Services
Robert BaughSnapping Shoals EMC Lead Right-of-Way Worker
Trees create an ecosystem that provides habitat and food for wildlife. They produce oxygen and absorb potentially harmful gases, such as sulfur dioxide and carbon monoxide. They cool paved surfaces, protect our watersheds and prevent erosion. Additionally, trees provide aesthetic and social benefits to our communities. Conflicts between trees and overhead power lines, however, can lead to power disruptions, safety hazards, increased utility costs and trimming practices that can disfigure trees. By making good choices about tree selection, planting location and care of trees, power lines and trees can co-exist. Proper tree location can not only enhance our communities, but also help homeowners save on energy costs.
Snapping Shoals is committed to balancing the importance of trees with the need to provide members with electricity. SSEMC continues to adhere to our right-of-way guidelines and has launched two new tree programs. The new programs were developed to reinforce our philosophy of “right tree, right place,” as well as provide members with the opportunity to take advantage of the energy-saving benefits provided by trees. Right-of-Way ManagementRight-of-way management is a critical part of maintaining a reliable supply of electricity for our members. One of the many ways that Snapping Shoals EMC provides you with safe, reliable electric service is right-of-way clearing or vegetation management. To do this, we control the growth of woody plants around power lines and other energized equipment. Tree limbs that come into contact with power lines are the most common cause of brief and prolonged power outages, especially during storms. Just one tree limb can knock out electric service to dozens of families up to several miles away. Interfering trees and brush also can delay the efforts to restore service that has been interrupted. SSEMC’s right-of-way policy maintains a minimum of 15 feet of right-of-way on either side, ground to sky. We also seek to maintain zero woody growth beneath the lines, as this area serves as a work zone for line maintenance and repair. New signs are being placed on power poles throughout our system to make the public aware of our right-of-way guidelines and to draw attention to potential hazards associated with overhead power lines. “Plan It Before You Plant It”“Plan It Before You Plant It” was implemented this year as a centralized communication tool that puts members in contact with SSEMC operations personnel regarding the planting of trees and shrubs. In addition to calling the Georgia Utilities Protection Center at 811, members should email [email protected] before planting any trees or shrubs. Under the High Voltage Safety Act, if you are performing any activity within the vicinity of an overhead high-voltage line, you are required to give notice to the Utilities Protection Center at least 72 hours in advance.
Community ProgramsSnapping Shoals continues its involvement in community-based tree programs like Making the Shade and Energy Saving Trees.
The Making the Shade program, created by the Georgia Forestry Commission in cooperation with the U.S. Forest Service, is designed to create healthier, shaded playground areas on elementary school campuses throughout Georgia. Traditional elementary school campus designs often eliminate the health benefits provided by shade trees. Snapping Shoals assists in these projects by working with host schools and State Community Foresters in planning and by providing equipment and personnel.
Energy-Saving Trees is an Arbor Day Foundation program that helps conserve energy and reduce energy bills through strategic tree planting. In partnership with the Georgia Forestry Commission, Snapping Shoals EMC provided 1,000 free trees to customers through Energy-Saving Trees. An online tool helps customers estimate the annual energy savings that result from planting trees in the most strategic location near their homes or businesses.
These are a few of the people involved in careful consideration of the trees growing in Snapping Shoals EMC’s communities and service territory.
6 7
FINANCIALSReport of Independent Auditors
8
McNair, McLemore, Middlebrooks & Co., LLC CERTIFIED PUBLIC ACCOUNTANTS389 Mulberry Street • Post Office Box One • Macon, GA 31202Telephone (478) 746-6277 • Facsimile (478) 741-1129mmmcpa.com
April 11, 2017
The Board of DirectorsSnapping Shoals Electric Membership Corporation
We have audited the accompanying consolidated financial statements of Snapping Shoals Electric Membership Corporation and Subsidiary (the Corporation), which comprise the consolidated balance sheets as of December 31, 2016 and 2015 and the related consolidated statements of operations, changes in members’ equity and cash flows for the years then ended, and the related notes to the consolidated financial statements.
Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implemen-tation and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s ResponsibilityOur responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Corporation’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Snapping Shoals Electric Membership Corporation and Subsidiary as of December 31, 2016 and 2015 and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
McNair, McLemore, Middlebrooks & Co., LLC
2015
$ 168,278,202
116,446,13611,525,803
6,452,8118,338,156
668,9251,018,5919,030,5709,249,850
91,939
162,822,781
5,455,421
4,426,870
1,028,551
768,033
643,827
983,296
3,423,707
7,843
$ 3,415,864
2016
$ 182,733,671
134,236,23510,918,910
5,923,3706,851,093
490,991601,256
8,436,14110,551,288
90,435
178,099,719
4,633,952
4,211,087
422,865
1,478,751
619,551
953,931
3,475,098
-
$ 3,475,098
Operating Revenues
Operating Expenses Cost of Power Distribution Operations Distribution Maintenance Consumer Accounts Consumer Service and Information Sales Administrative and General Depreciation Other
Operating MarginsBefore Interest Expense
Interest Expense Operating MarginsAfter Interest Expense Non-operating Margins Generation and TransmissionCooperative Capital Credits Other Capital Credits and Patronage Capital Allocations Net Margins Before Income Tax
Income Tax Expense
Net Margins
FINANCIALSConsolidated Statements of Operations
9
2016
$ 276,801,3361,626,949
278,428,285 (107,919,811
170,508,474
23,485,319297,721
3,089,152
26,872,192
8,988,941
11,344,47386,490
2,248,19736,114,453
58,782,554
29,853
$ 256,193,073
Utility Plant Electric Plant in Service - At Cost Construction Work in Progress
Accumulated Depreciation
Other Property And Investments Investments in Associated Organizations Notes Receivable Other Investments
Current Assets Cash and Cash Equivalents Accounts Receivable (Net of Accumulated
Provision for Uncollectible Accounts of $372,153
in 2016 and $448,969 in 2015)
Current Portion of Notes Receivable Materials and Supplies Other
Deferred Debits
Total Assets
FINANCIALSConsolidated Balance Sheets
10
ASSETS
2015
$ 268,443,3891,541,935
269,985,324 (100,266,601
169,718,723
22,467,351394,376
3,089,152
25,950,879
2,089,490
10,724,79686,490
2,195,34136,343,774
51,439,891
109,355
$ 247,218,848
) )
2016
$ 858,18486,008,737
4,324,052
91,190,973
74,086,815
9,380,105
5,512,00012,031,32410,072,906
2,150,389
235,0004,111,207
34,112,826
47,422,354
$ 256,193,073
Members’ Equity Membership Fees Patronage Capital Other Equities
Long-Term Debt
Accumulated Provision for Postretirement Benefits Other Than Pensions - Noncurrent
Current Liabilities Current Maturities of Long-Term Debt Accounts Payable Consumer Deposits Accrued and Withheld Taxes Accumulated Provision for Postretirement Benefits Other Than Pensions Current Other
Deferred Credits
Total Members’ Equity and Liabilities
FINANCIALSConsolidated Balance Sheets
11
MEMBERS’ EQUITY & LIABILITIES
2015
$ 844,974 86,419,700
4,228,184
91,492,858
74,659,669
8,868,792
5,426,000 9,654,513 9,771,049 1,551,338
219,000 3,444,423
30,066,323
42,131,206
$ 247,218,848
Margins
2%Interest
2%Depreciationof UtilityPlant
6%
GeneralExpenses
9%Maintenance& Operations
9%Cost of Power
72%
How Your Co-op Dollars Were UsedIn 2016
300
1,291
4,578
6,223 Total Miles of Energized Lineon Snapping Shoals EMC System
1000
11,099
64,627
97,110
1940
40
798
1,256
1970
2000
1,341
2016
Average Monthly Kilowatt HoursConsumed by Snapping Shoals Residential Members
Total Number of Electric Meters on the Snapping Shoals EMC System
1940
1970
2000
2016
1940
1970
2000
2016
FACTS +
FIGURES +
TRENDS
12