2022 Annual Report

2022 Annual Report and Meeting Notice


Notice of the Annual Meeting

Notice of the Annual Meeting to the members of Yellowstone Valley Electric Cooperative

The Annual Meeting of the Members of the Yellowstone Valley Electric Cooperative, Inc. will be held in the Pavilion at MetraPark in the City of Billings, in Yellowstone County, Montana, beginning at 10 a.m. on Tuesday the 21st of March, 2023 to consider and take action upon the following matters:

  1. Report on the number of members present in person in order to determine the existence of a quorum;
  2. Reading the notice of the meeting and proof of the due publication or mailing thereof;
  3. Reading of unapproved minutes of previous meeting of the members and the taking of necessary action theron;
  4. Presentation and consideration of reports of officers, trustees and committees;
  5. Election of 2 board members – one from each district below:
    District 2 – The area north and south of Ballantine and the towns of Ballantine and Worden.
    District 5 – The area west of Billings and Lockwood.
  6. Unfinished business;
  7. New business;

Dated at Huntley, Montana This 3rd Day of March 2023 | Yellowstone Valley Electric Cooperative, Inc.

David E. Kelsey, Secretary Treasurer 


President's Report 2022

Daniel R. Swartz, President headshotI would like to start this year’s report by saying hello to everyone and hoping your past year was a good one. From the Board of Trustees and YVEC we wish you the best in 2023.

Our meeting this year will be held on March 21, in the Pavilion at MetraPark. Please note the change in time this year, the doors open at 9:30 a.m. and the membership meeting begins at 10:00 a.m. The agenda will include the Auditor’s Report, CEO/General Manager’s Report, Trustee election, Luck of the Draw Scholarship drawings, and BIG prize giveaways. There will be a barbecue lunch directly following the meeting for all members. We hope to see you there, especially if you are a NEW or longstanding member and want to catch up with some familiar faces. We would love to meet you and answer any additional questions you might have on your cooperative membership.

We had a great year at YVEC! Our growth and new membership continue to increase. Our company added 533 new services for 2022. We are currently at 22,409 meters and growing. Dan Shaules, Manager of Outside Operations reported at the last board meeting that crews had completed 1,000 work orders in 2022. Our hats go off to the crews, both inside and outside. The hard work from all employees is a true testament to being a team.

We are pleased to report a margin of $2,078,165 for the year of 2022. This margin includes both operating income and non-operating income, which is comprised of patronage allocated to us by our power supplier and other area cooperatives. Your Board of Trustees voted at the last board meeting to return to the membership four years of patronage capital. The years selected to be paid out are 2004, 2005, 2006 and 2007. The patronage for these years totals $1,699,583 and will be retired to the membership in March of 2023. The retirement of Capital Credits is one of many additional benefits YVEC is happy to provide to its members and shows the positive benefits of belonging to a cooperative.

Brandon Wittman, our CEO communicated in several marketing channels throughout 2022 about the $40,034,285 of improvements and services added to YVEC both internally and externally, all while not raising rates. Currently, there is no plan to increase rates for the following year. Quite an achievement!

Due to the growth and increased demand on the West End of Billings, the new residential and commercial developments necessitated the building of the Central Avenue substation. It has been completed and is fully energized. We were excited to welcome the new Buggy Bath carwash on Shiloh Avenue and the new Albertsons store on Grand Avenue. Both are extremely impressive!

One of our upcoming project’s this year is the rebuild of the substation in Worden. Plans for construction are set to begin this spring.

Closer to home, the warehouse and Operations center off Highway 312 are being remodeled to store equipment allowing further expansion to help all departments.

In closing, we appreciate you and look forward to serving you this coming year. See you at the Annual Membership Meeting, on March 21, at 10 a.m. in the MetraPark Pavilion.

Daniel R. Swartz
President


Yellowstone Valley Electric Cooperative at a Glance

Year organized:
1937

Territory:
10,000 square mile service territory including 6 counties

Total Utility Plant:
$109,767,186

Electricity Purchased 2022:
329,541,089 kilowatt hours

Wholesale Power Costs
$21,932.749 or .6656/kwh

2022 Average Monthly Bill:
Residential-1,173 kwh
Average Bill- $158.13

2022 Maximum System Demand:
78.7 Megawatts - August 2022

Transmission System Demand:
142.330 miles of high voltage transmission
lines and two substations


Distribution System:
2,649.37 miles of distribution lines

Poles Replaced in 2022:
134

New Services Added:
533

2022 Property Taxes:
$1,478,270

Total Taxes:
$1,553,598

2022 Revenue:
$39,175,617

Total Long Term Debt:
$52,302,016


Utility Plant Growth

2022 2021
Utility Plant 109,767,186 103,330,620
Less: Reserve for Depreciation 40,869,970 38,127,071
Depreciated Cost of Utility Plant 68,897,216 65,203,549

Capital Credits

Worker operating a piece of heavy machineryYellowstone Valley Electric Cooperative 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 2004, 2005, 2006 and 2007. 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 $50.00, 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 2023.


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
2020 21,061 2,603 $36,062,960
2021 21,778 2,633 $37,274,462
2022 22,409 2,656 $39,175,617

2022 Income

  • Residential and Farm: 75%
  • Large Commercial: 14%
  • Small Commercial: 9%
  • Irrigation: 2%

2022 Expenses & Margins

  • Wholesale Power: 56%
  • Depreciation: 8%
  • Interest: 5%
  • Operating Margins: 5%
  • Administrative and General: 7%
  • Operations and Maintenance: 15%
  • Consumer Accounts: 4%


Comparative Statement of Revenue & Expenses

Operating Revenue and Patronage Revenue 2022 Amount 2022 Percentage 2021 Amount 2021 Percentage
Electric Energy Sales $38,938,327 99.39% $37,274,462 99.39%
Other Electric Revenue 237,290 0.61% $228,839 0.61%
Total Operating Revenue $39,175,617 100% $37,503,301 100%

 

Operating Expenses 2022 Amount 2022 Percentage 2021 Amount 2021 Percentage
Cost of Power $21,932,749 55.99% $20,690,333 55.17%
Transmission & Distribution Expense $4,613,82 11.78% $4,461,246 11.90%
Operations Expense $1,659,547 4,24% $1,702,571 4.54%
Consumer Accounts $783,585 2% $872,629 2.33%
Sales Expense $934,709 2.39% $786,875 2.10%
Administrative and General Expense $2,888,664 7.37% $2,480,924 6.62%
Depreciation $3,235,139 8.26% $3,076,841 8.20%
*Taxes $(8,424) -0.02% $4,255 0.01%
Interest $1,917,342 4.89% $1,905,198 5.08%
Total Operating Expense and Interest $37,957,134 96.89% $34,602,247 $95.38%

 

Margins 2022 Amount 2022 Percentage 2021 Amount 2021 Percentage
Net Operating Margins $1,218,483 3.11% $1,522,426 4.06%
Net Non-Operating Margins $42,708 0.11% $357,076 0.95%
Total Patronage Capital $1,216,191 3.22% $1,879,502 5.01%
Generation and Transmission Capital Credits $816,973 2.09% $1,519,139 4.05%
Net Margins for Period $2,078,164 5.30% $3,398,641 9.06

*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, 2021

Assets

Utility Plant

  • Electric Plant in Service: $108,170,858
  • Construction Work in Progress: $1,596,328
  • Total Utility Plant: $109,767,186
  • Less Accumulated Provisions for Depreciation: $40,869,970
  • Net Utility Plant: $68,897,216

Other Property & Investment

  • Non-Utility Property: $126,772
  • Investments in Associated Organizations: $9,566,613
  • Total Other Property and Investments: $9,693,385

Current & Accrued Assets

  • Cash-General: $357,772
  • Cash-RUS Loan Fund: $1,393
  • Cash-Operation Roundup: $39,560
  • Temporary Investments: $6,399,686
  • Accounts Receivable-Sales of Energy: $2,746,026
  • Accounts Receivable-Other: $179,769
  • Materials and Supplies: $1,164,395
  • Prepaid Benefits: $108,473
  • Total Current and Accrued Assets: $10,996,663

Deferred Debits

  • Regulatory Assets: $288,223
  • Other Special Funds: $303,872
  • Total Deferred Debits: $592,095

Total Assets & Other Debits

  • $90,179,359

Liabilities & Credits

Equities & Margins

  • Memberships: $0
  • Patronage Capital: $25,113,052
  • G&T Capital Credits: $4,068,186
  • Total Equities and Margins: $29,181,238

Long-Term Debt

  • RUS-FFB Notes Payable: $22,582,836
  • NRUCFC Notes Payable: $5,943,836
  • CoBank Notes Payable: $23,775,344
  • Total Long-Term Debt: $52,302,016

Current & Accrued Liabilities

  • Accounts Payable: $5,247,022
  • Consumers' Deposits: $163,364
  • Taxes and Interest Accrued: $1,860,016
  • Leases: $0
  • Accrued Vacations, Sick Pay, Insurance: $982,015
  • Short Term CoBank, CFC: $217,206
  • Total Current & Accrued Liabilities: $8,469,623

Deferred Credits

  • Consumer Energy Prepayments: $0
  • Other Deferred Credits: $226,482
  • Total Deferred Credits: $226,482

Total Liabilities & Other Credits

  • $90,179,359


Operation Round Up — Your Generosity Impacts Our Community

Operation Round Up logo$75,512 to 30 Non-Profit Organizations in 2021

Total Allocation to Date: $370,154

1st Quarter

Organization Description of Non-Profit Organization What the funds were allocated towards
Dementia Friendly Billings Works to raise dementia awareness and develop respect and inclusion for persons with dementia, their care partners, and their families Funding for materials, games and puzzles
Junior League of Billings Supports low income children and families with a focus on increasing learning opportunities and the potential to thrive Funding towards their Free Laundry Project
Park City FFA Is an organization that is built on building leadership skills and serving the community Funding for a new gazebo and costs associated with concrete pouring
St. Vincent de Paul Billings Giving priority to the poorest of the poor and those most rejected by society Funding for a new commercial steam table
Worden Community Club To develop, encourage, and promote the commerical, professional, financial,
industrial, residential and agricultural interests of the worden area
Funding for a new LED sign

2nd Quarter

Organization Description of Non-Profit Organization What the funds were allocated towards
Ballantine United Food & Lunchbox Program Actively serves community members with many needs Funding towards their Lunchbox Program
Billings Heights Kiwanis Serves Heights schools K-12 Funding for an enclosed trailer
Custer Volunteer Fire Department Volunteer fire department that serves an area in eastern Yellowstone County Funding for a new hose reel
Grace Montessori Academy Dedicated to helping children “grow in wisdom and stature before God and men” Funding for a new smartboard with a portable stand
Haley Bench Volunteer Fire
Department
Volunteer fire department within the YVEC service territory and mutual aid in the county Funding for handheld radios, speakers, mics and in-dash radios
Huntley Project Museum The museum interprets, preserves, restores and portrays the history of the area from prehistoric time to the present Funding for a handicap accessible board walk
Laurel Police Reserves Serves the Laurel Police Department in times of need for extra personnel, such as emergency situations, events, and other times of need Funding for new body armour
Montana Rescue Mission Provides emergency, temporary, and rehabilitative care for those experiencing hunger and homelessness Funding for new playground

3rd Quarter

Organization Description of Non-Profit Organization What the funds were allocated towards
Big Sky Senior Services Promotes independence, enhances quality of life, and prevents elder abuse Funding for cleaning and laundry supplies
Fuego Volunteer Fire Company Emergency service entity that serves the Highway 3 corridor from Billings to Acton and east to west from Billings Heights to Molt Road Funding for a new mobile radio
Head Start INC. Provides comprehensive services for young children and their families to achieve school readiness and lifelong success Funding for swing sets, enclosing the playground and adding playground equipment
Montana Veterans Meat Locker Provides frozen, professionally processed meat free of charge to Veterans Funding for a temperature controlled meat transporting vehicle
Out of the Wilderness Provides programs and activities that are designed to be a catalyst that helps community members reach their goals and full potential Funding for gifts for kids of veterans and meals for Thanksgiving and Christmas
Park City MT PTA Works towards raising awareness of the issues Park City faces Funding for hardware to hang senior banners, and the banners
Walla Walla University Billings Mental Health Provides free mental health services for the underserved and/or uninsured population Funding towards their Therapy Notes subscription and new emergency buttons

4th Quarter

Organization Description of Non-Profit Organization What the funds were allocated towards
Billings Food Bank Provides assisstance to many families during difficult times Funding for food and meal distribution
Billings Junior Womens Club Organization dedicated to community improvement by enhancing the lives of others through volunteer service Funding for their Books for Babies and Beyond program
Coles Pantry Feeding children and families on the weekends as well as in the summer months Funding for food for children and families
Cutting Fences Foundation Strengthens the physical and mental well-being of the agricultural community Funding towards agricultural equipment for farmers and disabled veterans
Family Promise of Yellowstone Valley Helping homeless families achieve and sustain independence through a community response to homelessness Funding towards their Break the Cycle of Poverty program
Fellowship Baptist Church Provides the opportunity for students who are unable to pay to go to a sports camp to attend camps free of charge Funding to host sports camp for youths
Friendship House of Christian Service Specializes in assisting at-risk, low income children with out of school time, academics, social, emotional, and spiritual growth Funding for new garden tools
Huntley Project VFW Post Promotes patriotism and gives aid to local Veterans Funding for an oil furnace replacement
NAMI Billings Supports and educates individuals and families affected by mental illness Funding for new classroom tables
Tumbleweed Serves vulnerable and homeless youth and young adults in the community Funding towards their runaway drop-in progam

2022 Scholarship & Essay Winners

$1,000 YVEC Academic Scholarships

  • Hannah Anderson – Montana State University Bozeman
  • Andee Baker – Montana State University Bozeman
  • Chloe Davies – University of Georgia
  • Shaelynn Haman – Montana State University Billings
  • Gabrielle Heggem – Montana State University Bozeman
  • Ann Killen – University of Montana
  • Emilie Killham – Montana State University Billings
  • Lainey Kitzmann – Montana State University Bozeman
  • Timothy Lane – Montana State University Northern
  • Dayton Magone – University of Alabama
  • Paige Mayhall – University of Northern Colorado
  • Marie Stott – Brigham Young University

$1,000 Students of Employees Scholarship

  • Shelby Haworth – Montana State University Billings
  • Ethan Richardson – Montana State University Bozeman
  • Eli Rouane – Montana State University Billings
  • Faith Sayler – Montana State University Bozeman
  • Marcus Wittman – Montana State University Bozeman

$1,000 Ray Michaels Memorial Scholarships

  • Ashley Parker – New Mexico State University
  • Peyton Whitehead – Miles City Community College

$1,000 Marlene Amen Memorial Scholarship

  • Loran Murphy – University of Montana Western
  • Hannah Porter – Miles City Community College

$1,000 Basin Electric Power Cooperative Scholarship

  • Loree Reck – Dordt University

$500 Luck of the Draw Scholarships

  • Hannah Anderson – Montana State University Bozeman
  • Hayden Behm – Montana State University Bozeman
  • Chloe Davies – University of Georgia
  • Ann Killen – University of Montana
  • Lissette Lyautey – Utah State University
  • Dayton Magone – University of Alabama
  • Cearra Oblander – Montana State University Northern
  • Rory Shay – Montana State University Billings C.O.T.
  • Heather Strobel – Montana State University Bozeman
  • Sarah Thomae – University of Montana
  • Grace Wagner – Carroll College
  • Hayden Wagner – Montana State University Bozeman

Applications

For more information on applications and deadlines, go to our Scholarships page.


84th Annual Membership Meeting Agenda

  • Doors open at 9:30am
  • Meeting begins at 10:00am
  • Auditor’s Report
  • CEO/General Manager’s Report
  • Trustee Election
    • District 2
    • District 5
  • Luck of the Draw Scholarship Drawings
  • Prize Drawings and More
    *Must be present to win
  • Refreshments Provided
  • Membership BBQ Following the Annual Meeting

 Employees & Years of Service

  • Ty Albert — 2 years
  • Kyle Bomar  —  5 years
  • Houston Bradbury —  3 years
  • Chris Buttram —  4 years
  • Sarah Carroll — 2 year
  • John Chatwood  — 17 years
  • Bridger Coffman —  6 years
  • Benjamin Degel —  2 years
  • Braden DeVries — 12 years
  • Cameron Erb —  8 years
  • Steve M Erb — 37 years
  • Donovan Ferrin —  4 years
  • Logan Gallagher — 1 year
  • John Hardenbrook — 1 year
  • Jared Haworth —  19 years
  • Heath Heigis —  24 years
  • Jake Hould —  11 years
  • Jordan Hould —  8 years
  • Cody Houska —  17 years
  • Cody Inabnit  —  2 years
  • Taylor Johnson — 1 year
  • Eva Jones —  8 years
  • Lia Keller —  5 years
  • Charles Knight — 2 years
  • Brent Koch —  19 years
  • Ronda R Laurie —  31 years
  • Stuart W Lawson —  25 years
  • Kyle Lonsbery —  6 years
  • Andy Macks  —  17 years
  • McKye McCarthy —  4 years
  • Nick Ostrem —  18 years
  • Tyler Reichert —  3 years
  • Levi Reiff — 2 years
  • Christopher Reynolds —  9 years
  • Kelly Richard —  29 years
  • Erik Richardson —  5 years
  • Annette Rohrer — 1 year
  • Gary Saling —  7 years
  • Jennifer Sayler —   5 years
  • Penny Seader —  19 years
  • Zane Seader —  6 years
  • Dan Shaules —  23 years
  • Rhonda Shaules  —  41 years
  • Shelly Smith —   6 years
  • Kristi Snively  —  4 years
  • Mike Stookey —  31 years
  • Keera Stookey —  1 years
  • Micheal Teter —  25 years
  • Robert Trost  —  5 years
  • Jerry Wandler  — 19 years
  • James J Webber — 20 years
  • Monti J Wetsch  —  22 years
  • Colter Wigley —  2 years
  • Brandon J Wittman —  29 years
  • Mariah Wittman —  3 years
  • Marcus Wittman — 2 years