Our Mission is Our Members — March 18, 2021
President's Report
Here we are, a year later, and I will try this again... I invite you to the 82nd Annual Meeting of Yellowstone Valley Electric Cooperative (YVEC), and the beginning of the 84th year of operation. This will be held at MetraPark in the Pavilion on March 18, at 1 pm.
As you know, we had to cancel last year's meeting due to COVID-19 restrictions. Currently, we are operating under the requested restrictions, so this meeting will be different than what we've had in the past. The Radisson and Convention Center have closed. We are excited to have a new venue with plenty of space to accommodate our members. If you are not familiar with the facilities, this is the building closest to the lower parking lot, with good access. We will have it well marked, along with employees to help you straight to the front door. In the last Rural Montana magazine, a start time of 10 am was posted. This has been moved to 1 pm, with doors opening at 12:30 pm. Due to current restrictions, lunch will not be served. Instead, a gift card will be given to those attending. Face masks and hand sanitizer will be provided. The meeting will consist of the Auditor's Report, CEO/General Manager's Report, Luck of the Draw Scholarship drawings, door prize drawings, and the election of four trustees.
It has been another busy and rewarding year here at the co-op. We finished the year with excellent margins, with a sizeable portion of them being an allocation from our power supplier. Our cash margins were strong, resulting from member usage and the growth we are experiencing. Again, the rates are the same as they were in May of 2011, and we do not expect a rate increase this year either. That makes 10 years without a rate increase, and we fully expect that to go to 11.
All employees have been busy and rising to the challenges they faced this last year. We have completed the rebuild of the Mossmain Substation and due to the west end growth, YVEC is currently working on a new substation that will be built on the comer of Shiloh and Central. A large retaining wall will be built around the substation, to meet city codes. Work will start on the substation itself soon after, weather permitting.
Annual revenue topped $36 million, with sales of kilowatt-hours (kWh) surpassing 300 million. The total utility plant is now at $95 million, and equity increased 2.7%. The linemen installed 436 new services this year, with total meters now surpassing 21,000. It has been a highly successful year at the co-op.
Even though this meeting will be structured differently, I encourage you to come and learn about the last two years of activities and accomplishments of the co-op. It is always worth the time to come and listen to Brandon's report. I hope to see you at MetraPark Pavilion on March 18 at 1 pm.
Daniel R. Swartz
President
Income, Revenue, Expenses
2020 Income
- Residential and Farm: 75%
- Large Commercial: 14%
- Small Commercial: 9%
- Irrigation: 2%
2020 Expenses & Margins
- Wholesale Power: 56%
- Operations and Maintenance: 16%
- Depreciation: 8%
- Administrative and General: 7%
- Interest: 5%
- Operating Margins: 5%
- Consumer Accounts: 4%
Utility Plant Growth
- 2020
- Utility Plant: $95,402,576
- Less: Reserve for Depreciation: $35,484,670
- Depreciated Cost of Utility Plant: $59,917,906
- 2019
- Utility Plant: $92,657,647
- Less: Reserve for Depreciation: $33,565,705
- Depreciated Cost of Utility Plant: $59,091,942
Capital Credits
YVEC is a non-profit organization. The electric rates are priced to cover operating expenses and loan repayments. If there is any revenue left over after expenses are paid, it is classified as margins. Margins are divided among the members of the cooperative and allocated as patronage capital (capital credits) based upon how much power each member is billed during the year.
The Board of Trustees voted to retire capital credits for all of 2001 and 50% of 2002. Please take a close look at your March or April billing statement to see the capital credits that have been credited to your account.
If the capital credit retirement for inactive accounts is greater than $50, a check will be issued and mailed out after the annual meeting. Active members' capital credits will be applied to their electric account. Some capital credit funds have been set aside for payment of estates to be processed during the year 2020.
Cooperative Statistics
| Year | Connected Meters | Miles of Line | Gross Revenue |
|---|---|---|---|
| 1937 | 17 | Not applicable | Not applicable |
| 1950 | 2,087 | 841 | $216,467 |
| 1960 | 2,909 | 1,170 | $446,454 |
| 1970 | 3,861 | 1,419 | $694,217 |
| 1980 | 7,795 | 1,821 | $2,910,005 |
| 1985 | 9,698 | 1,967 | $6,188,409 |
| 1990 | 9,848 | 2,010 | $7,549,105 |
| 1995 | 11,316 | 2,086 | $9,219,327 |
| 2000 | 13,027 | 2,228 | $12,207,521 |
| 2005 | 15,285 | 2,378 | $15,720,947 |
| 2010 | 16,992 | 2,499 | $27,391,608 |
| 2011 | 17,148 | 2,508 | $30,027,621 |
| 2012 | 17,494 | 2,523 | $30,600,731 |
| 2013 | 18,045 | 2,537 | $31,820,618 |
| 2014 | 18,467 | 2,557 | $32,928,754 |
| 2015 | 18,857 | 2,576 | $32,620,972 |
| 2016 | 19,274 | 2,594 | $33,138,830 |
| 2017 | 19,703 | 2,608 | $34,816,717 |
| 2018 | 20,158 | 2,625 | $33,348,934 |
| 2019 | 20,488 | 2,647 | $35,578,959 |
In the 83 years that this Cooperative has been in operation, our members have earned $39,100,917 in Capital Credits: of that amount $14,162,063 has been repaid in cash during the last 63 years.
Comparative Statement of Revenue & Expenses
| Operating Revenue and Patronage Revenue | 2020 Amount | 2020 Percentage | 2019 Amount | 2019 Percentage |
|---|---|---|---|---|
| Electric Energy Sales | $36,062,960 | 99.41% | $35,342,224 | 99.33% |
| Other Electric Revenue | $214,352 | 0.59% | $236,736 | 0.67% |
| Total Operating Revenue | $36,277,312 | 100.00% | $35,578,959 | 100.00% |
| Operating Expenses | 2020 Amount | 2020 Percentage | 2019 Amount | 2019 Percentage |
|---|---|---|---|---|
| Cost of Power | $20,261,602 | 55.85% | $19,748,613 | 55.51% |
| Transmission & Distribution Expense | $3,953,690 | 10.90% | $4,103,956 | 11.53% |
| Operations Expense | $1,659,804 | 4.58% | $1,536,981 | 4.32% |
| Consumer Accounts | $1,146,336 | 3.16% | $834,237 | 2.34% |
| Sales Expense | $669,081 | 1.84% | $606,950 | 1.71% |
| Administrative and General Expense | $2,156,845 | 5.95% | $2,374,146 | 6.67% |
| Depreciation | $2,941,007 | 8.11% | $2,849,502 | 8.01% |
| *Taxes | $2,404 | 0.01% | $4,330 | 0.01% |
| Interest | $1,811,477 | 4.99% | 1,880,184 | 5.28% |
| Total Operating Expense and Interest | $34,602,247 | $95.38% | $33,938,900 | 95.39% |
| Margins | 2020 Amount | 2020 Percentage | 2019 Amount | 2019 Percentage |
|---|---|---|---|---|
| Net Operating Margins | $1,675,065 | 4.62% | $1,640,060 | 4.61% |
| Net Non-Operating Margins | $529,219 | 1.46% | $552,241 | 1.55% |
| Total Patronage Capital | $2,204,284 | 6.08% | $2,192,300 | 6.16% |
| Generation and Transmission Capital Credits | $1,865,042 | 5.14% | $827,013 | 2.32% |
| Net Margins for Period | $4,069,327 | 11.22% | $3,019,313 | 8.49% |
*Due to accounting changes recommended by RUS, $1,511,250 of payroll and $1,323,372 of property taxes are no longer a line item, but are spread into operations, maintenance, and general administrative expense accounts.
Balance Sheet
December 31, 2020
Assets
Utility Plant
- Electric Plant in Service: $92,662,630
- Construction Work in Progress: $2,739,946
- Total Utility Plant: $95,402,576
- Less Accumulated Provisions for Depreciation: $35,484,670
- Net Utility Plant: $59,917,906
Other Property & Investment
- Non-Utility Property: $161,828
- Investments in Associated Organizations: $8,178,404
- Total Other Property and Investments: $8,340,231
Current & Accrued Assets
- Cash-General: $423,061
- Cash-RUS Loan Fund: $1,393
- Cash-Operation Roundup: $45,351
- Temporary Investments: $1,819,831
- Accounts Receivable-Sales of Energy: $2,364,778
- Accounts Receivable-Other:190,681
- Materials and Supplies: $998,205
- Prepaid Benefits: $75,114
- Total Current and Accrued Assets: $5,918,414
Deferred Debits
- Regulatory Assets: $582,341
- Other Special Funds: $461,302
- Total Deferred Debits: $1,043,643
Total Assets & Other Debits
- $75,220,194
Liabilities & Credits
Equities & Margins
- Memberships: $0
- Patronage Capital: $21,240,061
- G&T Capital Credits: $5,401,473
- Total Equities and Margins: $26,641,534
Long-Term Debt
- RUS-FFB Notes Payable: $22,082,799
- NRUCFC Notes Payable: $4,285,366
- CoBank Notes Payable: $17,141,464
- Total Long-Term Debt: $$43,509,629
Current & Accrued Liabilities
- Accounts Payable: $3,462,208
- Consumers' Deposits: $174,199
- Taxes and Interest Accrued: $744,364
- Leases: $23,723
- Accrued Vacations, Sick Pay, Insurance: $779,441
- Short Term CoBank, CFC: -$310,869
- Total Current & Accrued Liabilities: $4,873,066
Deferred Credits
- Consumer Energy Prepayments: $195,964
- Other Deferred Credits: $0
- Total Deferred Credits: $195,964
Total Liabilities & Other Credits
- $75,220,194
Operation Round Up — Your Change Creates Change
$72,500 to 26 Non-Profit Organizations
Bethlehem Congregational Church
Provides support and assistance in the community. Funding for new AED.
Blankets & Bears
Provide bundles of pillows, pillowcases, blankets, and stuffed animals for children in foster care, Head Start schools, Shriner's program, pediatric hospital wards, and more. Funding to purchase pillows and ribbon.
Blue Creek Fire Department
Provides fire suppression and EMS service for eastern Yellowstone County and mutual aid to other fire departments. Funding for new AED and equipment.
Boys & Girls Clubs of Yellowstone County
Serving youth ages 6-18 in Yellowstone County to help them realize their full potential as productive, caring and responsible citizens. Funding to renovate the Ed Center at the Lockwood Club.
Casa of Yellowstone County
A non-profit organization whose mission is to advocate for a safe and permanent home for abused and neglected children in Yellowstone County. This is accomplished through the work of volunteer Court Appointed Special Advocates. Funding to help with training programs and recruitment.
Cole's Pantry
Provides food to feed children on weekends in 14 Montana communities including Huntley, Shepherd, and Laurel (ORU funds were allocated to the YVEC service territory). Funding to purchase food and milk vouchers for the weekend meals, and holiday food boxes.
Dog Tag Buddies
Partners disabled Veterans with rescue dogs. Funding for facility shed.
Flakesgiving Fund
Serve Thanksgiving meals in the community. Funding for meal boxes.
Girl Scouts of Montana & Wyoming
Provides opportunities and education to help young girls learn life skills. Funding for STEM project.
Horses Spirits Healing
Helping disabled Veterans with assisted equine therapy. Funding for equine sessions.
Huntley Community Club
Local park assisting the community with playground equipment and facilities for events. Funding to renovate the park restroom.
Huntley Project PTA
Serve all students, teachers, family members, and everyone living in the Huntley Project area. Funding towards a storage shed at the school for event supplies.
Huntley Project VFW
Assist all veterans in the Worden area and conduct patriotic activities in the same area. Funding to help with restoration of the roof and painting supplies.
MSU·B Foundation
Provides program assistance to University students and the community. Funding to help the welding program and students with shop equipment.
N.A.M.I. (National Alliance of Mental Illness)
Providing education and advocating for mental health. Funding to help facilitate mental illness classes.
Park City Schools PTA
Serves children in the Park City area schools. Funding for teacher projects.
Project Linus
Provide handmade blankets to ill and traumatized children in hospitals. Funding to purchase materials for the handmade blankets.
Read Win Race
Literacy program for elementary children. They encourage and reward children to read. Funding to help total program costs.
Shepherd Area Food Pantry
Provides food and basic need items for families from Billings Heights to Pompey's Pillar. Funding to help stock during the COVID-19 pandemic.
Shepherd Middle School Science Department
Provides science education to students. Funding for STEM project and materials.
St. Vincent Healthcare Foundation
Impacting and improving the community with local projects. Funding for pediatric exam rooms.
Tumbleweed
Provides safety and assistance to the homeless and at-risk youth in the community. Funding to help with outreach programs and crisis intervention and front door services.
Yellowstone Boys and Girls Ranch Foundation
Support charitable and educational organizations whose services benefit children and adults with special needs. Funding for fire suppression system.
Zoo Montana
Local zoo serving our community with education and wildlife habitats. Funding for new garage at their Pavilion.
Total Allocation
Total Allocation to Date: $200,495
Note: Some non-profit organizations have received funding more than once.
Applications
For more information on applications and deadlines, visit our Operation Round Up page.
2020 Scholarship & Essay Winners
$1,000 YVEC Academic Scholarships
- Hannah Anderson: Homeschooled
- Jessica Chaffin: Attending MSU-B
- Olivia DeBoer: Skyview High School
- Keon Lockie: Billings Central High School
- Caden Moore: West High School
- Loran Murphy: Attending U of M - Western
- Brynn Newell: Shepherd High School
- Jaelynn Roesler: Billings Senior High School
- Madison Rohrer: Attending MSU
- Anney Sokoloski: Billings West High School
- Heather Strobel: Billings Senior High School
- Jessica Strobel: Billings Senior High School
- Sara Sumner: Huntley Project High School
$1,000 Ray Michaels Memorial Scholarships
- Dawson Bender: Huntley Project High School
- Eli Derrig: Billings Central High School
- Garrett McMillen: Park City High School
- Edward Shay: Park City High School
$1,000 Marlene Amen Memorial Scholarship
- Andee Baker: Park City High School
$500 Luck of the Draw Scholarships
- Mariah Anderson: Attending MSU Bozeman
- Hayden Behm: Attending MSU
- Berkley Cox: Attending MSU Billing COT
- Cody Dahinden: Skyview High School
- Logan Donally: Huntley Project High School
- Brittany Frank: Park City High School
- Kenna Hofer: Attending Boise State
- Addison Hultgren: Huntley Project High School
- Shelby McMillen: Attending University of Providence
- Kevin Stanina: Shepherd High School
- Jessica Swandal: Attending MSU
- Mikayla Zakrzewski: Laurel High School
Youth Tour Scholarships
- Dayton Magone: Billings West High School
- Buddy Boucher: Billings Skyview High School
The 2020 Youth Tour Trip was canceled due to the COVID-19 pandemic. Winners were awarded scholarships.
$1,000 Basin Electric Power Cooperative Scholarship
- Ann Killen: Huntley Project High School
Applications
For more information on applications and deadlines, go to our Scholarships page.
Employees & Years of Service
- Bob Bolin: 31 years
- Kyle Bomar: 3 years
- Houston Bradbury: 1 year
- Chris Buttram: 2 years
- John Chatwood: 15 years
- Bridger Coffman: 4 years
- Braden Devries: 10 y ears
- Cameron Erb: 6 years
- Steve Erb: 35 years
- Donovan Ferrin: 2 years
- Jared Haworth: 17 years
- Heath Heigis: 22 years
- Jake Hould: 9 years
- Jordan HouId: 6 years
- Cody Houska: 15 years
- Eva Jones: 6 years
- Jeannie Jones: 22 years
- Lia Keller: 3 years
- Brent Koch: 17 years
- Ronda Laurie: 29 years
- Stuart Lawson: 23 years
- Kyle Lonsbery: 4 years
- Andy Macks: 15 years
- McKye McCarthy: 2 years
- Nick Ostrem: 16 years
- Taylor Ragain: 1 year
- Tyler Reichert: 1 year
- Christopher Reynolds: 7 years
- Kelly Richard: 27 years
- Erik Richardson: 3 years
- Gary Saling: 5 years
- Jennifer Sayler: 3 years
- Penny Seader: 17 years
- Zane Seader: 4 years
- Dan Shaules: 21 years
- Rhonda Shaules: 39 years
- Shelly Smith: 4 years
- Kristi Snively: 2 years
- Mike Stookey: 30 years
- Mike Teter: 23 years
- Wes Thatcher: 31 years
- Robert Trost: 3 years
- Jerry Wandler: 17 years
- Jim Webber: 18 years
- Monti Wetsch: 20 years
- Colter Wigley: 1 year
- Brandon Wittman: 27 years
- Mariah Wittman: 3 years