ML19114A104
| ML19114A104 | |
| Person / Time | |
|---|---|
| Site: | La Crosse File:Dairyland Power Cooperative icon.png |
| Issue date: | 12/31/2017 |
| From: | Dairyland Power Cooperative |
| To: | Office of Nuclear Material Safety and Safeguards |
| Shared Package | |
| ML19114A114 | List: |
| References | |
| LAC-14428 | |
| Download: ML19114A104 (36) | |
Text
- COMMITMENT DAIRYLAND POWER COOPERATIVE A Touchstone Energy'"Cooperative
~T
AT A GLANCE 262,542 TOTAL MEMBERS S2 '7million
, MARGINS l,000.4MW* Peak demand (reported to MISO 7 /6/17) 548EMPLOYEES lnde~ndent Auditors' Financial Statements ....................... 20-23 Notes to Consolidated Financial Statements...... 24-31 Members & Facilities/Generating
OUR RENEWED COMMITMENT Decades ago, cooperative leaders unified with the vision to ensure reliable electricity would always be available in their rural communities. In 1941, they made a long-term commitment to each other and created their own power provider, Dairyland Power Cooperative.
Today, Dairyland remains steadfast in its vision to provide safe, sustainable, reliable and competitively-priced electricity to members in Wisconsin, Minnesota, Iowa and Illinois. From densely wooded forests to lush river valleys and thriving corn fields, the landscape throughout the Dairyland system is as diverse as its members. Each cooperative serves unique communities and memberships.
Cooperatives with the foresight to create Dairyland remain committed to the common goal to improve the quality of life in the region. Dairyland and cooperative members renew their commitment to achieve that goal each and every day.
DAIRYLAND POWER COOPERATIVE A Touchstone Energy* Cooperati ve ~f-"
COMMITTED TO OUR MEMBERS ifhrough power P.urchase ~reements, we have added System growth a.'uas fiaancial s1renglh I major renewable energy; resources from the Barton Barhara A. Nick President and CEO
EXECUTIVE COMMITTEE Roger Tjarks, Chairman Heartland Power Cooperative Greg Socia, Vice Chairman Riverland Energy Cooperative Eugene Miller, Treasurer People's Cooperative Services Jennifer Scharmer, Secretary MiEnergy Cooperative MEMBERS-AT-LARGE Charles Bena Clark Electric Cooperative Jerry Huber Jackson Electric Cooperative Larry Lamborn Allamakee-Clayton Electric Cooperative Barry Radloff Bayfield Electric Cooperative Laurie Engen, Assistant Secretary Dairyland Power Cooperative Niles Berman, General Counsel Wheeler, Van Sickle & Anderson
BOARD OF DIRECTORS Michael Baker Barron Electric Cooperative Clarence Boettcher Eau Claire Energy Cooperative Sandra Davidson Scenic Rivers Energy Cooperative Ed Gullickson Polk-Burnett Electric Cooperative Francis Gwinn Price Electric Cooperative Edward Hass Pierce Pepin Cooperative Services Robert Hess Oakdale Electric Cooperative Daniel Korn Vernon Electric Cooperative Burt Magnuson Freeborn-Mower Cooperative Services Joseph Mattingley Jo-Carroll Energy Jeff Monson Richland Electric Cooperative David Orf St. Croix Electric Cooperative John Petska Chippewa Valley Electric Cooperative Jane Reich Jump River Electric Cooperative Dean Tesch Taylor Electric Cooperative Tom Zwiefelhofer Dunn Energy Cooperative
CAPACITY SOURCE PROJECTION
Big wind joins Dairyland portfolio I 2017 was a windy The power behind the power I Resource Diversification year in the Dairyland system. In the spring, Dairyland is a strategic imperative at Dairyland. As generation began purchasing 80 MW of renewable energy from the resources evolve, system reliability continues to be a focus.
Barton Wmd Farm (Kensett, Iowa), in partnership with In June 2017, Dairyland and Mirmesota Power/ALLETE Avangrid Renewables. armounced plans for the Nemadji Trail Energy Center, a renewable-enabling 525-550 MW combined-cycle natural In the fall, Dairyland celebrated the 98 MW Quilt Block gas facility. The site is in Superior, Wis., adjacent to the Wmd Farm's dedication. Dairyland purchases all the wind service territories of both co-owners. The flexible facility energy produced &om the new facility, which is owned by will be responsive to intermittent solar and wind generation, EDP Renewables and located near Darlington, Wis. The assisting the transition to a more sustainable power supply.
wind furn has a "crop" of 49 wind turbines. This project created 10 new fu.mily-supporting jobs in the community. Boosting Evergreen benefits I Evergreen is a long-standing, voluntary program offered by Dairyland's member Approximately 40,000 homes can be powered by the wind cooperatives to consumers who wish to support renewable energy produced by Barton and Quilt Block. Dairyland energy. Costs for Evergreen have been significantly reduced also purchases the output from several smaller wind fums.
and the program is being modified to maximize beneficial Up with the sun I Dairyland reaffirmed its reputation as opportunities for members. As a cooperative, cost savings are a solar energy leader with the spring 2018 announcement passed directly on to the member-consumer.
of three more utility-scale solar generation sites. Together, Stewardship is a core commihnent I Dairyland's the 18 solar sites will be able to produce 25 MW of Sustainability Initiative focuses on business and operational renewable energy, enough to power 4,000 homes.
opportunities to reduce environmental and social impacts, The solar facilities are located in the service areas of while encouraging efficiency and cost savings. Environmental Dairyland's member electric cooperatives. Dairyland has stewardship is key to sustainability. Every year, power purchase agreements with SoCore Energy for 17 of Dairyland renews its commitment to the sites, and CMS Energy for one. stewardship by broadening already successful activities--such as the beneficial Many of Dairyland's member cooperatives multiplied reuse of power plant byproducts for road their local renewable energy benefit by piggybacking construction-and embracing new ideas.
onto Dairyland's projects with community solar gardens. Employees support pollinator gardens, Although these 18 sites represent Dairyland's largest and lead e-recycling drives, nurture bird and most recent solar investments, Dairyland also purchases fish habitats and find new ways to reduce energy from rwo other major solar installations. In environmental waste at work addition, there are over 1,200 consumer-owned distributed generation solar installations in Dairyland's service area.
Pollinator gardens sustain vulnerable populations I The solar projects have created a domino effect of good results for members and the environment, beyond the energy produced. All sites include pollinator gardens that sustain bee and butterfly populations. Dairyland also plans to create pollinator gardens at substation locations.
assist in power recovecy, efforts following Hurricane Irma.
was on full displar. as cooP.eratives workers safelra bro~t Infrastructure essential for power delivery I the reliable delivery; of energY; D~land's !Transmission Construction crews work to safelr. rebuild, construct and up~de apP.roxirnately. 50 miles of 69 kV, transmission
Safety: Dairyland's most important commitment I Over 150 union and nonunion employees have graduated President and CEO Barbara Nick leads Dairyland with from Dairyland's Leadership Development Program. The the belief that there is no success in business without nine-month educational program strengthens individual safety. T101e, schedule, costs ... all those business factors skills and promotes positive collaborations to develop take second place to operational safety. It takes constant leaders within the cooperative.
vigilance, open communication and mutual accountability of every Dairyland team member to ensure safety remains Powering your life I Dairyland's generation resources include coal-fired units in Genoa and Alma, Wis., a in first place.
30 percent share in Wisconsin Public Service's Weston 4 Everyone Home Safe Every Day emphasiz.es Dairyland's power plant in Wausau, the Elk Mound natural gas units, commitment to safe practices in and out of the workplace. the Flambeau Hydro Station in Ladysmith and a significant We are pleased that safety metrics show continual number of renewable energy investments.
improvement, but also know the work on safety is never The Genoa and Alma power plants achieve the Electric done. Continuous Improvement Teams at Dairyland Power Research lnstitute's "world class" status for minimal focus on specific "in-house" goals toward our aim of zero forced outage rates related to boiler tube failures. Periodic disabling incidents.
projects to overhaul and inspect facility equipment help In addition to on-the-job safety training and meetings, general safety education is emphasized at Dairyland.
Classes and seminars are planned with an eye toward maintaining a safe environment at work, home and in the community. Employees become CPR/AED certified, learn defensive driving skills and build skills establish continuing safe and efficient plant operations.
Environmental controls in Genoa and Alma are best-in-class and have greatly reduced emissions. Dairyland's progressive recycling program works to ensure that power plant byproducts are beneficially reused, frequently as a component of concrete for roadways.
for effective communications through the Speak Up!
Listen Up! program.
Employees: Dairyland's most important asset I Attracting and retaining talented employees is one part of planning for a successful future for Dairyland and its member cooperatives. Leadership and succession planning are pivotal for continued positive growth for any organization. Developing leaders within Dairyland's talent pool today will launch tomorrow's trailblazers, with a focus on exceeding member expectations.
Leaders listen. Based on employee feedback, Dairyland's annual Performance Development Discussions now include a new assessment process that encourages positive and productive conversations. "DPC Essential Series" courses are offered to employees on core cooperative topics, including financial, project and change management. All courses are tied to Dairyland's Vision, Mission and Values.
COMMITTED TO OUR COMMUNITIES
2 0 1 7 REVENUE & EXPENSE DOLLAR
Committed to system growth I Opportunities to constimting a significant portion of that cost. Dairyland's enhance efficiency and provide competitive costs and plants used about 2.38 million tons of coal in 201 7, service can be created through growth. In addition including its 30 percent share of the Weston 4 power plant.
to supporting economic development and beneficial Net margins in 201 7 were $27 million, compared to 2016 efficient electrification, Dairyland and its members seek margins of $23.1 million. Dairyland's net generation growth opportunities that benefit the entire system.
and purchased power totals were up slightly at 6 billion The Dairyland system grew by about 10 percent in kilowatt-hours (kWh), compared to 5.7 billion kWh in early 2018 with the addition of new Jo-Carroll Energy 2016. Class A member loads had a slight increase to members. Jo-Carroll acquired additional service 4.9 billion kWh from 4.8 billion kWh. Total operating territory in 2007 and had agreements in place for the revenues for 201 7 increased to $441.4 million, compared additional energy to be provided by another power to $4 14.8 million in 2016.
supplier until 2023. Jo-Carroll worked closely with Committed to sustainable decommissioning I Projects Dairyland to develop a win-win agreement and bring are underway to complete decommissioning of the those members on to the Dairyland system five years La Crosse Boiling Water Reactor (lACBWR), Alma earlier, effective April 1, 2018.
Station (pictured) and the Seven Mile Creek landfill gas-Competitive and financially strong I Maintaining to-energy. Public safety and compliance with all regulatory competitive rates is important to the economic well-being of the region and long-term viability of requirements is essential, while minimizing the cost impact on Dairyland's members and reducing fumre liabilities.
II the cooperative system. Dairyland worked with its Dairyland has contracted with EnergySolutions, a members to incorporate the new system growth, national radioactive waste services contractor, for the final while limiting wholesale rate increases for member decommissioning oflACBWR. Under the agreement, cooperatives to an average of2 percent on May 1, 2018.
La.CrosseSolutions LLC Dairyland continues to focus on managing controllable temporarily holds the license costs and risks, and efficient project management.
and assumes responsibility Prudent investments in regional transmission projects for the decommissioning of also add value while improving reliability.
the lACBWR site. When To ensure long-term financial strength, the Dairyland completed, the license will Board has a Strategic Financial Plan to maintain "~' remm to Dairyland.
ratings from Moody's and Standard & Poor's credit rating agencies. In February 2018, Standard & Poor's elevated Dairyland's rating to an A+ with a stable outlook in its annual credit opinion.
Local and regional transmission projects, purchased power and transmission costs all have significant impacts on the bottom line. However, fuel to operate its generating facilities continues to be Dairyland's largest annual expense, with barge and rail transportation of coal
DAIRYIAND POWER C OOPERATIVE A 'fouchstone Energ
- Cooperative
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~J o~C Wall of ~~complishme_nts
Barbara Nick, President and CEO With the guidance ofDairyland's Board John Carr, Vice President, Generation of Directors, responsible for directing Responsible for achieving operational Dairyland's overall strategic direction excellence in power production and leadership, building relationships including operations ofDairyland's with other key leaders, as well as traditional and renewable generation maintaining strong relationships with facilities and environmental aflairs.
members and employees.
Laurie Engen, Nate Melby, Chief Information Officer Senior Executive Assistant Responsible for cybersecurity and Provides professional support and leading the implementation of guidance to the President and CEO information technology initiatives and serves as assistant secretary to the and systems that align and advance Board of Directors. Dairyland's business/ operations strategies.
Deb Mirasola, Directer, Phil Moilien, Vice President & CFO/CAO Communications and Marketing Responsible for accounting, finance, Responsible for developing and enterprise risk management, corporate leading strategic communications budget, supply chain and financial and marketing programs aligned with activities of subsidiaries. Also for business initiatives to engage and employee recruitment, retention and educate employees, members development, compensation/benefits, and the public. labor relations and business ethics.
Rob Palmberg, Vice President, Ben Porath, Vice President, Strategic Planning Power Delivery Responsible for leading strategic and Responsible for reliable system business planning, power supply operations, transmission lines, diversification, business development, substations, telecommunications and fuel procurement, energy marketing real estate/right-of-way. Also, business and trading. Also, safety and security, continuity, compliance and including training. information technology.
Brian Rude, Vice President, External and Member Relations Mary Lund Responsible for state and federal Executive Vice President, government relations, energy efficiency, Human Resources conservation programs, communications Retired March 2018 and marketing, publication services and administrative services.
INDEPENDENT AUDITORS' REPORT To the Board of Directors of Dairyland Power Cooperative I We have audited the accompanying consolidated financial statements of Dairyland Power Cooperative and subsidiary (the "Cooperative"), which comprise the consolidated balance sheets as of December 31, 2017 and 2016, and the related consolidated statements of revenues, expenses, and comprehensive income, member and patron equities, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
Management's Responsibility for the Consolidated Financial Statements I Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility I Our 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 audit 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 Cooperative'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 Cooperative'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.
Opinion I In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Cooperative as of December 31, 2017 and 2016, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
March 28, 2018
- Minneapolis, Minnesota
- Deloitte & Touche LLP
CONSOLIDATED BALANCE SHEETS - ASSETS As of December 31, 2017 & 2016 (All dollar amounts in thousands)
Electric Plant: 201 7 2016 Plant and equipment-at original cost . . .. ..... . . .......... . ..... . . .... .. . .. . . $ 1,760,050 $ 1,691,311 Less accumulated depreciation .. ... . . .................... . .. .. . . ... ....... . . (644,353) (612,445)
Net plant and equipment . . ... .... .. .. . . .. . . ... ... .... . .. . . ........... . 1,115,697 1,078,866 Construction work in progress . ... .... . .. ... . . . .... . .. . . ....... . .. .. .. ..... . 66,775 109,556 Total electric plant . .......................... . ...................... . 1,182,472 1,188,422 Other Assets:
Nuclear decommissioning funds (Note 4) 23,114 74,343 Investments under debt agreements-marketable securities (Note 4) ......... . . ..... . 2,631 3,783 Other property and investments ............ .. ...... . .......... ..... ... . .... . 11,627 11,721 Investments in capital term certificates of National Rural Utilities Cooperative Finance Corporation ..... . .. .... . ....... . .. .... . .. . ... . 9,176 9,176 Regulatory assets (Note 1) ....... . .. .... . .. . . .. .. ......... . . . . .... .... .... . 24,939 29,995 Investment for deferred compensation ................. . ..................... . 1,890 1,603 Deferred charges (Note 1) .. . ............... . ..... . . . ..... . ... ... . ....... . . 17,546 16,909 Total other assets 90,923 147,530 Current Assets:
Cash and cash equivalents 30,731 27,278 Accounts receivable:
Energy sales- net of allowance for doubtful accounts of
$10 for 2017 and 2016 ...... . ................. ... ... . ............... . 40,793 37,362 Other .. . ............................................. .. ... . ..... . . .. . 2,678 1,942 Inventories:
Fossil fuels ........................ . ......... . .. . . ... . ........... . .... . 55,075 59,863 Materials and supplies . . ... ... ....... . . . . . .. . ..... .. .. .. ... .. .. ......... . 21,324 19,769 Prepaid expenses and other ..... . ........ . .... . ..... ... .. ............. ..... . 15,295 21,078 Total current assets ......... . . . ...................................... . 165,896 167,292 Total ............................................. . . ... ... ... ..... ... . .. . $ 1,439,291 $ 1,503,244 See notes to the consolidated financial statements.
CONSOLIDATED BALANCE SHEETS - CAPITALIZATION & LIABILITIES As of December 31, 2017 & 2016 (All dollar amounts in thousands)
Capitalization: 2017 20 16 Member and patron equities:
Membership fees . ... . .. . ... . .... . .. . . .. . ......... .. .. . .. . .. . . . ....... . $ 1 $ 1 Patronage capital .. . . .. . . . .. ... . ... . . . . . . . .. .. .. . . . . . . ...... .. ....... . . 296,389 273,501 Accumulated other comprehensive income (Note 1) .. . . ....... . .. . ... . . . .. . . . . 2,397 2,289 Total member and patron equities . . .. .. . .... . . . . .... . .. . .. .... .. .. .. . . 298,787 275,791 Long-term obligations (Note 6) . . . ...... . . . . . .. . .. . . .. . . . . ... . .. . .... ... . . . . 767,343 772,961 Total capitalization . . ... . . ...... . ..... . .. ...... . ...... . .. . . ... . . . . . . 1,066,130 1,048,752 Other Liabilities:
Decommissioning and asset retirement obligations (Note 14) . .. .... . ..... . .. . . . .. . 28,614 81,380 Postretirement health insurance obligation (Note 11) ......... .. .... . . . . . .. . .. . .. . 4,492 4,669 Accrued benefits . . . .. . . . . .. . ... .. . ... . . . . .. .. . ....... . ... .. . . .... . . . . . . . . 645 853 Deferred compensation .. . . .... . . .. . . ... . . . . . ...... . .. .. . .. .. .. . . . ... . . .. . 1,890 1,603 Obligations under capital leases . .. .. . . ... . . .... . .. . . . . . .. . ... .. . . .. . . ...... . 5,875 5,615 Other deferred credits (Note 1) .. . . . .. . .. ..... . . .. . ....... .. ... .. . . .. . ..... . 63,494 69,263 Total other liabilities .... . .. . . .. .. . ... . . .. . . ... . ... . ............. . .. . 105,010 163,383 Commihnents and Contingencies (Note 10)
Current Liabilities:
Current maturities of long-term obligations and obligations under capital leases . .. . . . . . 49,533 52,899 Line of credit (Note 5) ... .. . . . . . . . .. . . . . . . . . ... . . . .. ... .. . . . . .... . . . .. . . . . 154,000 108,000 Advances from member cooperatives . ... . ... . . .. . . . . . . . . .. ...... ... ... . . . ... . 12,461 13,274 Accounts payable ......... . ...... . . . . . . .. . ...... .. .. .. ... . . . ........ . . . . . 23,425 38,835 Accrued expenses:
Payroll, vacation, and benefits . . . ......... . .. . ............. .... . . .... . . . . . 6,307 6,980 Interest .. . ...... .. . .. . ... . ... . .. . . . . .............. . . .. . .. .. ... . . .... . 9,195 9,500 Property and other taxes . . . .. ... .. . . . ...... . ... ... . . .. . . . . . . . ........ . .. . 3,924 3,919 Special refund to members (Note 15) .. .. .. ..... . ... . . . . . ... . .. . . . . . . . .... . . 47,636 Other . . .. .. . . .. . .. . . . .. . . . ... . . . . . ... . ... . ........ . . .. . ... . . . . . . ... . 9,306 10,066 Total current liabilities ... . . . ... . . . .. .. . .. . . .. .. . ......... . ... . . .. . . . 268,151 291,109 Total .. . .... . ..... . . . . .. .. ... . . ..... . . . .. . . . ... . . . . .. ... ... . . . . ... .. .... . $1,439,291 $ 1,503,244 See notes to the consolidated financial statements.
CONSOLIDATED STATEMENTS OF REVENUES, EXPENSES & COMPREHENSIVE INCOME For the years ended December 31 , 2017 & 2016 (All dollar amounts in thousands)
Utility Operations: 2017 2016 Operating revenues:
Sales of electric energy . . ... . ........... . ............................... . $ 414,194 $ 392,123 Other .... . .. . ... . ...... . ............. .. . . ... .. ............ . .. ... . .. . 27, 192 22,709 Total operating revenues ............ . . . ..................... . .. . .... . 441,386 414,832 Operating expenses:
Fuel . .. . ..... .. . . . . ............ . .... . ..... . ....... .. .. . . . .......... . 120,471 107,746 Purchased and interchanged power .... . . . ..... .. ....... .. . . .... . .... . ... . . . 66,664 61,651 Other operating expenses .. . .... . .................................. . .... . 94,438 92,693 Depreciation and amortization ................. . . ........................ . 55,000 48,989 Maintenance .. ................... . ........... . .............. . ....... . 37,839 40,198 Property and other taxes ... . .. .. ....... .. .... . . . . .... . .... . .... . ... . .... . 8,842 8,230 Total operating expenses ..... . ................. . . ........ . .. . ... . . . . . 383,254 359,507 Operating margin before interest and other ......... . ......... . ..... .. .. . 58,132 55,325 Interest and other:
Interest expense .. .. . .. . ... . . ... . ... . . .. . . . . . . .... .... .. . . .. . .. . .... . . . 40,679 39,817 Allowance for funds used in construction-equity .. .. . . . ................. . .. . . (1,024) (1,591)
Other-net . .. .. . . . ... .. .. . . . .. . ... ...... .......... . ............... . . 203 1,639 Total interest and other. . . . . . . ... . .......... . . . . .. ... . . ... .... . ..... . 39,858 39,865 Operating margin . . ... ...... .. . .. ... . ...... . ...... . ................ . ...... . 18,274 15,460 Nonoperating margin (Note 1) ..... .. .. . . .. ....... . . .. . ...................... . 8,724 7,686 Net Margin and Earnings ... . .. . . .. . .. . .. .. .... . ... . . .... . . . ................ . 26,998 23,146 Other Comprehensive Income (Loss):
Postretirement health insurance obligation adjustments . .. . . ... . ... ............ . . . 108 (126)
Comprehensive Income . . .... . .... .. ...... . ... .. .......... . ............ . .... . $ 27,106 $ 23,020 CONSOLIDATED STATEMENTS OF MEMBER & PATRON EQUITIES For the years ended December 31, 2017 & 2016 (All dollar amounts in thousands)
Accumulated Other Tora] Member Membership Comprehensive Patronafe and Parron Fees Income Capita Equities Balance-December 31, 2015 .......... . ...... . . . ........ $ 1 $ 2,415 $ 254,265 $ 256,681 Net margin and earnings ..................... . . . ..... . 23,146 23,146 Postretirement health insurance obligation adjustments . ...... (126) (126)
Retirement of capital credits ........... . ... . .. ......... . (3,910) (3,910)
Balance-December 31, 2016 ......... . .... .. . . . ......... 1 2,289 273,501 275,791 Net margin and earnings . . . .... . .. . .. . . . . .. ........... 26,998 26,998 Postretirement health insurance obligation adjustments . .. . ... 108 108 Retirement of capital credits ..... . . ...... . . ... . .... . .... (4,110) (4,110)
Balance-December 31, 2017 . . . . ......... . . ...... . .. . ... $ 1 $ 2,397 $ 296,389 $ 298,787 See notes to the consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31 , 2017 & 2016 (All dollar amounts in thousands)
Cash Flows from Operating Activities: 2017 2016 Net margin and earnings ................. . .. . ................ . ........... . $ 26,998 $ 23,146 Adjustments to reconcile net margin and earnings to net cash provided by operating activities:
Depreciation and amortization:
Charged to operating expenses ........ .. .. .. . .. . ................. . ... . . . 55,000 48,989 Charged through other operating elements such as fuel expense . ............... . 1,798 1,754 Allowance for funds used in construction-equity . . . . . ........ . ... . ... . . . . . .. . (1,024) (1,591)
Unrealized gains on nuclear decommissioning crust investments . . ......... . ..... . (1,046)
Changes in operating elements:
Accounts receivable . .. .. . . . . .. .. .. . . . .. . .... . .... . .............. ... . . (4,167) (1,538)
Inventories ... . . ............ . ......... . .. .. ...... . ...... . .. . .... . . . . 2,728 (10,812)
Prepaid expenses and other assets ........................ . .... . ..... . ... . 5,783 (4,853)
Accounts payable . ........... . .. . .. . ............................. . . . . (20,117) 12,727 Accrued expenses and other liabilities .. .... . . ... ... ... . . . . . ............ . . . (55,518) 42,668 Deferred charges and ocher. ... . .... . ....... . . . ..... . ...... . ..... . .. . .. .
Total adjustments ................................................. .
Net cash provided by operating activities .. .. . . .. . . ........ . ..... . ...... .
1,377 (15,186) 11,812 38,743 126,087 149,233 II Cash Flows from Investing Activities:
Electric plant additions ............. . . .............. . .. . ........... . ... .. . . (37,490) (56,283)
Advances to nuclear decommissioning funds .... . ... . ... . ..................... . (8)
Purchase of investments . . . . . . ... ... .. . ...... . ............ . . . ...... . ...... . (190,454) (547,107)
Proceeds from sale of investments and economic development loans . ... ... .. . . ... .. . 190,247 546,278 Net cash used in investing activities ................ . .. ... .... . ........ . (37,697) (57,120)
Cash Flows from Financing Activities:
Borrowings under line of credit ..................... .. ..................... . 182,000 79,000 Repayments under line of credit . . .. ... . ......... . . . . . ..... . .... . . . .. . ...... . (136,000) (167,000)
Borrowings under long-term obligations ........... . ....... . ..... . ........ . .. . 21 ,665 99,090 Repayments of long-term obligations .................. . .. . .................. . (33,404) (100,917)
Retirement of capital credits .............. . .. . ..... . ......... . .... . ..... . .. . (4,110) (3,910)
Borrowings of advances from member cooperatives .... . ........................ . 255 ,562 219,173 Repayments of advances from member cooperatives .. . .... . .. . ......... .. .... . .. . (256,375) (216,657)
Net cash provided by (used in) financing activities . . . .. . . . . . .......... . ... . 29,338 (91,221)
Net Increase in Cash and Cash Equivalents ....... . .. .. . . . . ... . . . .... . ............ . 3,453 892 Cash and Cash Equivalents-Beginning of year . .. . ............. . ........... .. .. . . 27,278 26,386 Cash and Cash Equivalents-End of year . . . . . . . . .. . ............ . . . ....... . .. .. . . $ 30,731 $ 27,278 Supplemental Cash Flow Information:
Cash paid for interest . ..... . . . .... . ................................. . .... . $ 42,274 $ 32,575 Electric plant additions funded through accounts payable and accrued expenses . . . .... . $ 9,470 $ 4,764 Electric plant additions under capital leases . . . . .. . .. ............... . .......... . $ 3,015 $ 4,062 See notes to the consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As of and for the years ended December 31 , 2017 & 2016 (All dollar amounts in thousands)
ONE NATURE OF BUSINESS & ORGANIZATION asset (if any) are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estiniaced fair value Business I Dairyland Power Cooperative and subsidiary ("Dairyland" or che based on quoted market prices or ocher valuation techn iques. To date, management "Cooperative") is an electric generation and transmission cooperative organized has determined that no impairment of these assets exists.
under the laws of the states of Wisconsin and Minnesota. The Cooperative, whose principal offices are located in Wisconsin, provides who lesale electric service to Investments I Investments in marketable debt and equity securities classified class A members engaged in the retail sale of electricity to member consumers as available for sale are reported at fair val ue, with the interest, dividend income located in Wisconsin, Minnesota, Iowa and Illinois, and provides electric and and realized gains reported in nonoperating margin. The Cooperative conti nually ocher services to class C, D and E members. monitors the difference between cost and estimated fai r value of its investments.
If any of che Cooperative's investmen ts experience a decline in value that the Principles of Consolidation I The consolidated financial statements include Cooperative believes is other than temporary, the Cooperative will realize the loss the accounts of Dairyland and Dairyland's wholly owned subsidiary, Genoa as a reduction in investment income on decom missioning funds. In 2017 and FuelTech, Inc. All incercompany balances and transactions have been eliminated in 2016, the Cooperative realized $167 and $1,189, respectively, of losses on these consolidation.
investments as a resu lt of ocher-than-tem porary impairment (OTTI).
Accounting System and Reporting I The accounting records of che Cooperative Regulatory Assets and liabilities I The Cooperacive's accounting policies and are maintained in accordance with the uniform system of accounts prescribed by the the consolidated financ ial statements conform to accounting principles general ly Federal Energy Regulatory Commission as adopted by the Rural Uti lities Service accepted in the United States of America applicable to electric cooperatives. During (RUS), the Cooperacive's principal regulatory agency.
20 17, the Cooperative established a regulatory asset for the unrecovered plane Electric Plant I The cost of renewals and betterments of units of property (as balance and termination of gas purchase agreement related to the discontinuation distinguished from minor items of property) includes contract work, direct labor of landfill operations at the Seven Mile Creek site. The amount is being amortized and materials, allocable overhead, and allowance for funds used during construction, through rates over 36 months beginning in July 2017. During 2015, the and is charged co electric plane accounts. Included in accumulated depreciation Cooperative established a regulatory asset for a contract termination fee related to are non legal o r nonco ncraccual coses of removal components. As a resu lt, che cost a power purchase agreement. Th is is being amortized to purchased power expense of units of property retired, sold or otherwise disposed of, plus removal costs, less over the five-year remain ing term of the original contract beginning November salvage, is charged to accumulated depreciation and no profit or loss is recognized 2015. During 2014, the Cooperative established a regulatory asset related to in connection with ordinary retirements of property units. A provision for these unrecovered plane balances upon closure of the Alma 4 & 5 generating stations.
nonlegal or nonconcracrual coses of removal components is recognized based on This is being amortized through races over l O years beginning in 2015. The depreciation rates determined by a th ird-parry depreciation study completed in expected fo llowing year's portion of these regulatory assets is included in prepaid November 20 16 an d approved by RUS in 2017 fo r races effective in 20 17. T he expenses and other at Decem ber 31, 20 17 and 2016, respectively.
Cooperative is unable to obtain the information to separate the cumulative removal The noncurrenc portion of regulatory assets as of December 31, 2017 and 2016, coses as of December 31, 2017 and 2016. Maintenance and repair costs and include the following:
replacement and renewal of minor items of property are charged to operations.
2017 2016 Depreciation I Depreciation, wh ich is based on the straight-line method at races Power purchase contract termination fee ************** .. $ 10,023 $ 15,49[
chat are designed co an1orti ze the ori ginal cost of properties over their estimated Al ma 4 & 5 unrecovercd plant balances . .. 12,432 14,504 useful lives, incl udes a provision for che cost of remov ing and decommiss ioning Seven Mile unrecovered plant balance and termination fee. 2,484 the properties. The provision for depreciation averaged 3.3% of depreciable plant Total regulatory assets ************* * ****** .$ 24,939 $ 29,995 balances for 2017 and 3.1 % for 2016.
Allowance for Funds Used During Construction I Allowance for funds used Deferred Charges I Deferred charges represent future revenue to the Cooperative d uring construction (AFUDC) represents the cost of external and internal funds associated with coses that wi ll be recovered from customers th rough the race-used for construction purposes, and is capitalized as a component of electric plane making process. As of December 3 1, 20 17 and 20 16, the Cooperacive's deferred by applying a rate (3.715% in 2017 and 4.120% in 2016) to certain electric plant charges are being reflected in rates charged to customers, except the deferred additions under construction. The amount of such allowance was $1,847 in nuclear litigation as noted below. If all or a separable portion of the Cooperacive's 20 17 and $3,055 in 2016. The borrowed funds component of AFUDC for 2017 operarions become no longer subject to the provisions of regulatory accounting, and 2016, was $823 and $1,464, respectively (representing 1.656% and 1.990% a write-off of deferred charges would be req ui red, unless some form of transition in 20 17 and 2016, respectively). The equity component of AFUDC for 2017 and recovery (refund) continues through races established and co ll ected for the 2016 was $ 1,024 and $1,591, respectively, (representing 2.059% and 2. 130% in Cooperacive's remaining regu lated operations. In addition, the Cooperative would 2017 and 2016, respectively) . The borrowed funds components were included as a be required to determine any impairment to the carrying coses of deregulated reduction ofinceresc expense in the consolidated statements of revenues, expenses plane and inventory assets. The noncurrent portion of deferred charges as of and comprehensive income. December 31, 2017 and 2016, include the following:
Recoverability of Long-Lived Assets I The Cooperative accounts for che impairment 2017 2016 or disposal of long-lived assets, sucli as property and equipment, whenever events or Pension prepayment . . *.*.*.*.*. * . * . * . * . . .. $ 10,759 $ 13,449 clianges in circumstances indicate the carrying value of an asset may not be recoverable. Deferred nuclear litigation . 105 Ocher. .... 6,682 3,460 An impairment loss is recognized when estimated undiscounted cash flows expected Total deferred charges ....... . . . . .. *.*.*.*.*.*. .. . 17,546 $ 16,909 to result from the use of the asset, plus net proceeds expected from disposition of the
The voluntary prepayment co the Cooperative's mulriemployer defined-benefit Nonoperating Margin I The nonoperating margin for the years ended pension plan to reduce future funding amounts is being amortized to benefits December 31, 2017 and 2016, includes the following:
expense over 10 years beginning in 2013 as prescribed by RUS. Litigation 2017 2016 expenses from the third nuclear contract damages claim against the United Investment income .. . . . .. . ..... . . . .. . ... . . , . * .* . * . . ... $ 7,841 $ 6,722 States government, are being deferred pending the outcome of that litigation. Invesonenc income on nuclear decommissioning funds :
Cash and Cash Equivalents I Cash equivalents include all highly liquid Net earnings . 2,225 3, 153 Realized gains . 671 5,703 investments with original maturities of three months or less. Cash equivalents Realized losses and losses due to OTT!. .. . (1,798) (9,070) consist primarily of commercial paper, stated at cost, which approximates marker.
Provision-recorded as estimated decom m issioning liabilities. ( 1,098) 214 Fossil Fuels and Materials and Supplies I Coal inventories, as well as materials O ther. . 883 964 Nonoperacing margin . .. . . ........ .. .*... . .. . . .... ......... . . ....$________ 8,724 .....____
$ 7,686 and supplies inventories, are stated at the lower of average cost or net realizable value.
Nitrogen Oxide Emission Allowances I Beginning in 2009, the U.S. Use of Estimates I The preparation of consolidated financial statements in Environmental Protection Agency (EPA) requires power plants co hold sufficient conformity with accounting principles generally accepted in the United States of allowances co cover emissions of nitrogen oxide. Under these requirements, the America requires management to make estimates and assumptions that affect the Cooperative is required to surrender one emission allowance per con of nitrogen reported amounts of assets and liabilities, and the disclosure of contingent assets oxide emitted. Actual emissions during 2017 and 2016 did not require the and liabilities at the date of the consolidated financial statements, and the reported Cooperative co purchase additional allowances beyond what was allocated under amounts of revenue and expenses during the reporting period. Significant estimates the program . As of December 31, 2017 and 2016, allowances are recorded in in the consolidated financial statements relate to inventory reserve, postretirement inventory at lower of average cost or nee realizable value .. The obligations co benefit obligations, asset retirement obligation liabilities, fixed-asset depreciable lives, EPA co meet 2017 and 2016 emissions are $0. The transfer to EPA for the 2016 and litigation and contingencies. Actual results could differ from those estimates.
annual allowances occurred in June 2017. The transfer co EPA for the 2017 Accumulated Other Comprehensive Income I Accumulated other annual allowances is expected to occur in May or June 2018. The remaining comprehensive income is comprised solely of a postretirement health insurance allowances in inventory as of December 31, 2017, will be surrendered co EPA, obligation. See additional information in Nore 11 . The components for the years as applicable, under the terms of the consent decree. ended December 31, 2017 and 2016, are as follows:
Deferred Credits I Deferred credits represent both future revenue to the 2017 2016 Cooperative associated with customer prepayments and noncurrent obligations and Balance-beginning of year ...... . ... . . , .*......... , . , .*. , .... . .. $ 2,289 $ 2,4 15 reserves related co operations. As of December 31, 2017, the Cooperative's deferred Recognition in expense:
credits are being considered when determining rates charged co customers. Amortization of prior service cost . . . . . . . . . . .... . ..... . . (102) (102)
Amortization of unrecognized actuarial gain .. . . . . . . . ... . (126) (131)
The noncurrent portion of deferred credits as of December 31, 2017 and 2016, Actuarial assumption changes. . . . . . . . . . . . . . ..*. . ... . ... --===-----'-"'-
336 107 include the following: Net other comprehensive gain (loss) ..... . ... , ... , ... . . . . . .. . 108 (126)
Balance-end of year . . . .. ... , . , .... . .. . .*.* . , .. . .. ...$;.,,_=
2,397 $ ..;;;.:.;;.;;.;;..
- .;....-..... 2,289 2017 2016 Unearned revenue--con tract prepayment . , .. . .. $ 63,015 $ 68,744 Other. . .. 479 519 Concentration of Risk I Approximately 45% of the labor force for the Cooperative Total deferred credits . . ......... . $ _6__
.. .. . ....... _$_ 63__,4_9_4____ 9,__
26__3_
is under a collective bargaining agreement that expires January 31, 2019.
Subsequent Events I The Cooperative considered events for recognition or Unearned Revenue-Contract Prepayment-Revenue from the settlement disclosure in the consolidated financial statements that occurred subsequent to payment received from Great River Energy (GRE) as discussed in Nore 13, is December 31, 2017, through March 28, 2018, the date the consolidated financial being recognized into revenue through 2029 . statements were available to be issued. All material subsequent events have been Sales of Electric Energy I Revenues from sales of electric energy are recognized disclosed in these consolidated financial statements.
when energy is delivered. The class A wholesale rares approved by the Cooperative's board of directors (the "Board of Directors") have a power cost adjustment that allows for increases or decreases in class A member power TWO RECENTLY ISSUED ACCOUNTING STANDARDS UPDATES billings based upon actual power costs compared to plan. For 2017 and 2016, Issued I In May 2014, the Financial Accounting Standards Board (FASB) issued che power cost adjustment co che class A members resulted in credits to sales Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with billed of$(1,188) and $(5,450), respectively. These amounts are recorded in Customers (Topic 606). The core principle of the guidance is that an entity should sales of electric energy in operating revenues on the consolidated statements of recognize revenue co depict the transfer of promised goods or services to customers revenues, expenses and comprehensive income.
in an amount that reflects the consideration to which the entity expects to be Other Operating Revenue I Ocher operating revenue primarily includes revenue entitled in exchange for those goods or services. In August 2015, the FASB issued received from transmission service and is recorded as services are provided. ASU 2015-1, Revenue from Contracts with Customers (Topic 606): Deferral ofthe Effective Date, which defers the effective date of ASU 2014-09 by one year for all Accounting for Energy Contracts I Contracts that did not meet che accounting entities and permits early adoption on a limited basis. ASU 2014-09 is effective for definition of a derivative are accounted for at historical cost. The Cooperative's the Cooperative in 2019. Management is in the process of evaluating the guidance energy contracts that qualify as derivatives continue to be accounted for at fair and has not yet determined if the adoption of chis guidance will have a material value, unless those contracts meet the requirements of and have been designated impact on the Cooperative's consolidated financial statements.
as "normal purchase/normal sale." The Cooperative does not have any energy contracts char are required to be accounted for at fair value as of December 31, 2017 and 2016.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The The contractual maturities of marketable debt securities, which include U.S.
guidance will require organizations that lease assets to recognize on the balance government securities, foreign obligations and corporate bonds, as of sheet the assets and liabilities for the rights and obligations created by those leases. December 31, 2017, are as follows:
The Cooperative is still in the process of evaluating the impact this guidance will Fair Value Cost have on the consolidated financial statements. This guidance is effective for the Due within l year ...... . .. .. .. * . .. . .. . . . .. . . .. . . . . $ 434 $ 890 Cooperative in 2020. Due after I year through 5 years .. . 9,276 9,287 Due after 5 years through IO years ..... , . * . * . * . * . . . 6,554 6,533 In March 2017, the FASB issued new accounting guidance to improve the Due after l Oyears .......... . 4,400 4,519 presentation of net periodic pension cost and net periodic postretirement
$ 20,664 $ 2 1,229 benefit cost in financial statements. The new guidance requires components of net periodic pension cost and net periodic postrecirement benefit coses chat are currently aggregated and reported as part of compensation be Information regarding the sale of available-for-sale marketable securities, including disaggregated and reported separately. Only the service cost component nuclear decommissioning crusts, for the years ended December 31, 2017 and may be reported as part of compensation, be included in income from 2016, is as follows:
operations and be eligible for capitalization . The other cost components must 2017 2016 be reported separately in the income statement. The new guidance will be Proceeds from sale of securities .. . ...... . .. . . ........ , .. . , . . . *.... $ J88,543 $543,732 effective for the Cooperative in 2019. Management believes the adoption Realized losses . . . . . . . . . . . . . ...... . ... . ........ , . * . * . * . * . . . . (960) (2,178) of chis new guidance will not have a material impact on the consolidated financial statements and disclosures. For the purposes of determining realized gains and losses, the cost of securities sold is based upon specific identification.
THREE INCOME TAXES Securities in the portfolio are reviewed to determine whether they have been other-than-temporarily impaired. The Cooperative has recorded impairment write-The Internal Revenue Service has determined that Dairyland is exempt from downs of its investments of$167 and $1 ,189 in 2017 and 2016, respectively, as federal income taxes under Section 50l(c)(l2) of the Internal Revenue Code. the Cooperative cannot represent that it has the intent and ability co hold securities Accordingly, the Cooperative's utility operations are generally exempt from until they recover in value, since that decision is outside of its sole control.
federal and state income taxes and no provision for such taxes is recorded in the consolidated financial statements. In accordance with restrictions enacted by the Nuclear Regulatory Commission, the Cooperative does not control the day-to-day management of nuclear decommissioning trust fund investments. The nuclear decommissioning trust of the Cooperative is managed by independent investment managers with FOUR AVAILABLE-FOR-SALE INVESTMENTS discretion to buy, sell and invest to achieve the broad investment objectives Investments in the nuclear decommissioning trust (NDT) and under debt set forth by the Cooperative. The Cooperative's policy is to provide additional agreements are classified as available-for-sale, recorded at fair value, and include funding of the nuclear decommissioning crust, as necessary, through rates and the following as of December 31, 2017 and 2016: with future earnings, to ensure that the trust will be sufficient to cover final Fair Value decommissioning expenses. Earnings on the nuclear decommissioning funds 2017 Debt and the equivalent provision for nuclear decommissioning coses are recorded as NOT Ai,eements Total nonoperacing margins, since the plant is no longer in service.
Cash and cash equivalents . $ 2,450 $ 2,63 1 $ 5,08 1 U.S. government securities . . 5,922 5,922 Investment income included in nonoperating margin on the consolidated Corporate bonds . . 14,541 14,541 statements of revenues, expenses and comprehensive income is net of investment Foreign obligations . . . .. . . . 201 20 1 fees of approximately $101 and $298 for the years ended December 31, 2017
$ 23, 11 4 $ 2,63 1 $ 25,745 and 2016, respectively.
Fair Value 2016 Debt NOT Ai,eements Total Cash and cash equivalents . $ 3,427 $ 3,783 $ 7,210 FIVE LINES OF CREDIT U.S. government securities . . 19,01 6 19,016 Corporate bonds . . . ... ... . ... . .. .. . . . . . 49,759 49,759 To provide interim financing capabilities, the Cooperative has arranged committed Foreign obligations *** * * ** *** 2, 14 1 2,141 lines of credit with availability aggregating approximately $350,000. On November
$ 74,343 $ 3,783 $ 78,126 30, 2015, a syndicated credit facility was execured with CoBank acting as lead arranger. This facility has a five-year term and provides funds both for short-term Investments under debt agreements represent amounts arising from the sale of working capital requirements and for capital projects until permanent financing assets that are encumbered by mortgages and restricted by the RUS for use on can be obtained. Some capital projects wiU last longer than one year, but the intent future generation and transmission construction projects. is to pay down the line of credit as permanent funding is received. Compensating balance requirements and fees relating ro the lines of credit were not significant in 201 7 and 2016. Information regarding line of credit balances and activity for che years ended December 31, 2017 and 2016, is as foUows:
2017 2016 Interest rate at year-end . 2.56% 1.76%
Total committed availabiliry at year-end . $350,000 $350,000 Total borrowings outstanding at year-end .. $154,000 $ 108,000 Average borrowings outstanding during year . .. .. ....... .. _.$_1"' 5;;.:
l ,;;;;
23;.;;J_ ...;$:;..:.:
17..::8!;:
,3.::;
08;:..
The Cooperative also allows member cooperatives to prepay rheir power bills and pays interest on rhese prepayments based on current short-term borrowing SEVEN LEASES rates. Advances from member cooperatives totaled $12,461 and $13,274 Operating Leases I The Cooperative has entered into lease agreements under at December 31, 2017 and 2016, respectively. Interest expense on member which it is rhe lessee on an operating lease for a Caterpillar coal dozer, six cooperative advances was $194 and $111 at December 31, 2017 and 2016, rail cars, and fleet vehicles. These transactions are covered in the master lease respectively. These amounts have been included in interest expense in rhe agreement and have lease terms ranging from four to 15 years. At the end of rhe consolidated statements of revenues, expenses, and comprehensive income. leases, the Cooperative can eirher purchase rhe equipment at fair market value, continue to lease the assets, or return rhe equipment to rhe lessor. Rent expense was $500 and $590 in 2017 and 2016, respectively. The schedule of future SIX LONG-TERM OBLIGATIONS minimum lease payments as of December 31, 2017, is as follows:
Long-term obligations as of December 31, 2017 and 2016, consist of the Years Ending December 31 2018 .. . $ 444 following:
2019 ......*. * . * . * .*.*. . ... ... . * * * * * * * * * *
- 345 2017 2016 2020 ..... . ..* . . . . . . .* . . .*... . . .. ... ..... .. . 180 Federal Financing Bankobligacions-1.93% to 4.46% ... . . . .. . .*.*.... $393,223 $380,833 202 1 ...... *.* .*.*.*.. .. ... . . . . . . . . *.*.*. . . .. *..... 49 Federal Financing Bank obligacions--4.52% to 6.80% .... . .... .*.... 307,675 315,128 2022 ....... . ....*. * .* .. ....... . .. . . ..... 39 Total Federal Fi nancing Bank ....... . 700,898 695,961 Thereafter .... * . * .*. * .* . ......... . . . , .* . . . .. . . 33 RUS obligacions--4.125% and grant funds . 4,423 4,839 Tocal .. $ 1,090 CoBank notes-2.6%, 2.9%, 4.3%, 6.2%, and 7.4% . . . . .. .. .... * ... . 25, 123 35,801 Private bonds placement obligacions-3.42% .. . . . ....... . . . . 84, 166 87,500 Long-term debt. . . . . . . .... . ........ . .. . .. . .. ... . ... . 814,610 824, 101 Capital Leases I The Cooperative has entered into several capital lease Less current maturities . . (47,267) (51,140) agreements for work equipment and computer equipment. The transactions Total long-term obligations .....* . .. . .. .. . . . ... .. . .. . . . . . . ....... $ 767,343 $ 772,961 are covered in rhe master lease agreement with lease terms of four, five or nine years. At rhe end of rhe lease, the Cooperative can purchase rhe equipment for a Quarterly principal and interest payments on rhe long-term obligations to the bargain purchase price. The gross amount of the leases was $3,305 and $4,137 Federal Financing Bank (FFB) extend rhrough 2048. Long-term obligations to as of December 31, 2017 and 2016, respectively. The accumulated amortization FFB are net of deposits in the RVS debt prepayment program of $195,657 and of rhe capital leases was $1,376 and $2,360 as of December 31, 2017 and 2016,
$214,581 as of December 31, 2017 and 2016, respectively. These deposits earn respectively. The principal and interest payments were $2,461 and $1,991 in 5% interest and are available solely for future principal and interest payments. 2017 and 2016, respectively. The schedule of future minimum lease payments as of December 31, 2017, is as follows:
Long-term obligations to rhe RVS are payable in equal monthly principal and interest installments rhrough 2024. Payments on the CoBank 2.6%, 2.9%, Years Ending December 31 4.3%, 6.2%, and 7.4% notes are due monthly or quarterly rhrough 2023. The 2018 $ 2,5 19 private bond placement is an amortizing 30-year term loan at an interest rate 2019 . ... 2,178 2020 1,837 of 3.42%. Quarterly principal and interest payments on this obligation extend 2021 1,259 through 2043.
2022 . 676 The Cooperative executed, filed and recorded an indenture of mortgage, Thereafter 231 security agreement and financing statement, dated as of September 13, 2011 Total minimum lease payments . . 8,700 Amounts representing interest ..... . (559)
(the "Indenture"), between rhe Cooperative, as grantor and U.S. Bank National Present value of minim um lease payments . 8,141 Association, as trustee. The perfected lien of the Indenture on substantially all Current maturities . . ....... .. . (2,266) of rhe Cooperative's assets secured equally and ratably all of the Cooperative's -~~~
Long-term capital lease obligations . . . . . . . $ 5,875 long-term debt wirh rhe exception of unsecured notes to CoBank (balances of$14,794 and $21,989 at December 31, 2017 and 2016, respectively). The Cooperative is required to maintain and has maintained certain financial ratios related to earnings in accordance wirh the covenants of its loan agreements as of EIGHT FINANCIAL INSTRUMENTS December 31, 2017.
The fair value of the Cooperative's financial instruments other rhan marketable Scheduled maturities of the Cooperative's long-term obligations as of securities and short-term borrowings, based on the rates for similar securities December 31, 2017, were as follows: and present value models using current rates available as of December 31, 2017 Years Ending December 31 and 2016, is estimated to be as follows:
2018 ................. . ..... . .. . . . . . . .* . . . * . .. $ 47,267 2017 2016 2019 46,737 Recorded Fair Recorded Fair 2020 . 46,922 Value Value Value Value 2021 ... . . . . .. ... . . . . .... ..... ..*.... . . . . . . . . . .. . . .. . . ....... . . . . . 46,280 Assets:
2022 45,469 Other properry and investmenrs. ... $ 11,627 $ 11 ,627 $ 11,721 $ 11,721 Thereafter 581,935 lnvestmenrs in capital term Total .. $814,610 certificates ofNRUCFC .. 9,176 9,176 9,176 9,176 Liabiliries-long-term obligations . 814,610 1,110,071 824,101 1,149,059
Assets and Liabilities Measured at Fair Value I Accounting principles There were no significant transfers between Levels 1, 2 and 3 in 2017. The changes generally accepted in the United States of America establish a framework in Level 3 recurring fair value measurements using significant unobservable inputs for measuring fair val ue by creating a hierarchy for observable independent for the years ended December 31, 2017 and 2016, are as follows:
market inputs and unobservable market assumptions and provides for required 2017 2016 disclosures about fair value measurements. Considerable judgment may be Other property and investments:
required in interpreting market data used to develop the estimates of fair value. Balance-beginning of year .... . . . . . . . . . *.* .* . * .*. . ....... . .... $ I 0,348 $ 9,740 Accordingly, the estimates presented herein are not necessarily indicative of the New investment and loans made .. . l,400 2,850 amounts that could be realized in a current market exchange. Loan repayments received and current maturities . . 43 (259)
Patronage capital allocations . . ... . 223 267 A description of the inputs used in rhe valuation of assets and liabilities are as Refunds of depositS . ... .. ...... . * * * * * * * * * * * .. . . . . .... .. . . . _ . .,_(1:.,5c. .c :,Oc::,0)' - - --" (2"',2"'5-'-'-)-0 follows: Balance-end of year ... . . . *. *.* . . .. * . * . * . * .. . . . . . .. .... . . . ...;;$....a:.lo""';;..;
5 I;.;4_ ...;$c.....J..;..
o,_34_s_
Level 1 inputs utilize observable market data in active markets for identical assets or liabilities. Level 2 inputs consist of observable market data, ocher than The valuation of these assets involved management's judgment after chat included in Level 1, char are either directly or indireccly observable. Level consideration of market factors and rhe absence of market transparency, market 3 inputs consist of unobservable market data, which are typically based on an liquidity and observable inputs.
entity's own assumptions of what a market participant would use in pricing an asset or liability as there is liccle, if any, related market activity. In instances where che determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy NINE RETIREMENT OF CAPITAL CREDITS within which the entire fair value measurement falls is based on che lowest- The Cooperative's Board of Directors has adopted a policy of retiring capital credits level input that is significant co the fair value measurement in its entirety. The allocated to members on a first-in, first-our basis. As part of an equity development Cooperacive's assessment of the significance of a particular input to the fair value strategy adopted in 2003, patronage capital retired will be limited co no greater than measurement in its entirety requires judgment and considers factors specific to 2% of the coca! assigned patronage capital balance as of December 31 of the prior che asset or liability. year. This policy is subject co annual review and approval by the Board of Directors and the RUS, and no cash retirements are co be made wh ich would impair the The following table summarizes the Cooperative's assets and liabilities measured financial condition of the Cooperative or violate any terms of its agreements. Since ar fair value on a recurring basis as of December 31, 2017 and 2016, aggregated 2003, the amount of nonoperating margins assigned co members each year is at by the level in the fair value hierarchy within which chose measurements fall:
the discretion of the Board of Directors. Any unassigned nonoperaring margins Fair Value Measurements Using will become unallocated reserves and part of permanent equity. Patronage capital Quoted Prices Significant amounts for the years ended December 31, 2017 and 2016, are as follows:
in Active Markets Orher Significant for Identical Observable Unobservable Assi~ed Unassi~ed Total Assets and Liabilities Inputs Inputs Balance-December 31, 2015 . $ 195,525 $ 58,740 $ 254,265 20 17 Fair Value (Level l ) (Level 2) (Level 3)
Reti rement of capital credi ts . .... . . .... ~ . .. . . , . .. . (3,910) (3,910)
Assets-investments:
Current year margins 13,869 9,277 23,146 Nuclear decommissioning funds . $ 23, 114 $ 23, 11 4 $ $
Balance-December 31 , 2016 . . . . 205,484 68 ,017 273,501 Investments under debt agreements Retirement of capital credi ts .. . . (4, 110) (4,110)
- marketable securities . . . . . 2,631 2,631 Current year margins . ..... . . . . . 17,250 9,748 26,998 Other property and invescmen tS . 11 ,627 l,113 10,51 4 Balance-December 31, 201 7. $ 218,624 $ 77,765 $ 296,389 lnvescmems in capital term certificates of Nacional Rural Utilicies Finance Corporacion .. 9,176 9,176 Investment for deferred compensation . ... 1,955 1,955
$ 48,503 $ 24,227 $ 4,586 $ 19,690 TEN COMMITMENTS & CONTINGENCIES Fair Value Measurements Using The Cooperative is a party co a number of generation, transmission and distribution Quo[cdPriccs Significant in Active Markets Other Signi6ca.nt agreements, under which coses and/or revenues are recognized currencly based for Identical Observable Unobservable Assets and Liabilities Inputs Inputs upon the Cooperative's interpretations of the provisions of the related agreements.
20 16 Fair Value (Levell ) (Level 2) (Level 3) Differences between che estimates used in the consolidated financial statements and Assecs- invescmencs: the final settlements are recorded in the year of serclement.
N uclear decommissioning funds. $ 74,343 $ 74,343 $ $
Investm ents under debt agreements The Cooperative has entered into various coal purchase concraccs with one- co three-
- marketable securities . . . . 3,783 3,783 year terms. The estimated commirmen rs w1der these contracts as of December 31, Other property and investments . .. 11,721 1,373 10,348 2017, were $84,420 in 2018, $63,217 in 2019, and $61,198 in 2020.
Investments in ca piraJ term certificates of Natio nal Rural Ucilicies Finance Corporation . . 9, 176 9,176 A consent decree (CD) between the Cooperative, the EPA, and the Sierra Club lnvesanent for deferred compensation . 1,679 1,679 entered by the U.S. Disuicc Court in 2012 was modified in 2014. The CD requires
$ 100,702 $ 75,7 16 $ 5,462 $ 19,524 the Cooperative co spend $5,000 on environmental mitigation projects within five years of EPA'.s April 2013 approval of the projects and includes participation in major solar projects. The Cooperative reflected the obligation of this requirement in deferred credits. During 2016, the remaining $2,210 obligation for environmental mitigation projects was reduced by $1,44 1 spent on approved solar and other projects. During 2017, the remaining $769 obligation for environmental mitigation projects was reduced by $755 spent on approved solar and other projecrs. The estimated $14 cost for 2018 solar and other projects participation is included in accrued expenses.
The Cooperative has been named as a defendant in various lawsuits and claims The accumulated posuetirement benefit obligation (APBO) and the a.mounts arising in the normal course of business. Although the outcome of these matters recognized in the consolidated financial statements as of and for the years ended cannot be determined at the present time, management and legal counsel believe December 31, 2017 and 2016, are as follows:
these actions can be successfully defended or resolved without a material effect 2017 2016 on the consolidated financial position, results of operations or cash flows of the Amount recognized in the consolidated balance sheers:
Cooperative. Total a=ued q ual ified and nonqualified benefit obligation .. .. . ....... $ 4,769 $ 4,956 Less current portio n induded in accrued expenses--other . . ..... . ..... - -~ (277)~- (287) l..ong-term portion . . . .. . ... . .................... . .. . . .. . . . .. *...:$'---'-'-'= 4,492 - $ 4,669 ELEVEN EMPLOYEE BENEFITS C hange in benefi t obligatio n:
APBO-bcgi nning of year . . ....*.*.*. * ... . *.*.*.*.*. .. * . *..... $ 4,956 $ 4,744 Multiemployer Defined-Benefit Pension Pion I Pension benefits for substantially Service cost ........ . . .. . .. . ........... . . . ................... . 262 248 all employees are provided through participation in the National Rural Elecuic lnterest cost . ...... . . . * . . . * ............. . .......... . ...... . .. 175 174 Cooperative Association (NRECA) Retirement Security Plan ("RS Plan"). This is Actuarial loss ...... ... . ... . ...*.*.*.*. . ..*.*.*.*.*.... (336) (107) a defined benefit pension plan qualified under Section 40 I and tax-exempt under Participant contributions .... .. . ... . . . .. . .. . . . . . ......... . 38 1 Section 501 (a) of the Intemal Revenue Code. Pension benefits are funded in Benefirs paid. . . . ...* . *.* . * . *. . .. . . *.*.*.*....... (288) (484) accordance with the provisions of the RS Plan and are based on salaries, as defined, APBO-end of year. . . . . . . . . . . . . . *. *. . . . *. *. *. *. . . . . . . *~$- ~- 4,769 - $ 4,956 of each participant. The Employee Retirement [ncome Security Act of 1974, as Funded status of plan- December 3 1 .. . . . (4,769)
. ... ....$___.-"-'""""- $ (4,956)
Accrued postretirement health insurance obligations recorded at year-end . ... _$_ _... 4,769_ __ $ _4,956 amended by the Multiemployer Pension Plan Amendment Ace of 1980, imposes certain liabilities on employers who are conuibutors to multiemployer plans in C hange in plan assers:
the event of a plan termination or an employer's withdrawal. These plans have not Employer contribution ... . ... . . (288) (484) been terminated, nor has the Cooperative undertaken any plans to withdraw from Benefi rs paid . 288 484 participation . Since the RS Plan is a mulciemployer plan for accounting purposes, all plan assets are available to pay benefits of any plan participant. Separate asset Change in accumulated other comprehensive income:
Net income at prior measurement dare . .... . . . . . .. *. . .*.* $ 2,289 $ 2,415 accounts are not maintained for participating employers. This means that assets AcruariaJ assumption changes. . . . . . . ... . . ... . 336 107 contributed by one employer may be used to provide benefits to employees of ocher Recogn ition in expense:
participating employers. The Cooperative may be contingently liable for its share of (102) (102)
Amortization of prior service cost the RS Plans' unfunded vested liabilities. Amortization of unrecognized actuarial gain (126) $ (1 3 1)
AccumuJaced ocher comprehensive income. . .............. _$_ 2~,3_9_7 _ _$_ 2~,2_8_9 The Cooperative's contributions to the RS Plan in 2017 and 2016 represented less than 5% of the total conuibucions made to the plan by all participating employers. Components of nee periodic poscretirement benefit cost:
[n 2013, the Cooperative made a voluntary prepayment of$26,899 to chis plan ro Service cost-bcnefirs attributed to service during the year . . . . . . . . . . . . $ 262 $ 248 reduce future contribution amounts. Expense for chis pension plan was $11,619 in Lnteresc cost on accrued postretirement health insurance obligation. 175 174 2017 and $11,071 in 2016.The2017 expense includes contributions to the plan Amortization of prior service cost . ... ( 102) (102) of$8,929 and $2,690 of prepayment amortization. The 2016 expense includes Amorci1.ation of unrecognized actuarial gain . . .. .... . (126) (13 1) conuibutions to cl1e plan of $8,381 and $2,690 of prepayment amortization. There Net periodic poscrecirement benefit expense .. $ 209 $ 189 have been no significant changes chat affect the comparability of2017 and 2016 contributions. Employer cash contributions expected to be made ro the plan during the fiscal year ending December 31, 20 I 8, is $277. The amount of accumulated other In the RS Plan, a "wne status" determination is not requ ired, and therefore not comprehensive income expected to be recognized during the fiscal year ending determined, under the Pension Protection Act (PPA) of 2006. In addition, cl1e December 31, 20 18, is an actuarial gain of $139 and amortization of prior accumulated benefit obligations and plan assets are not determ ined or allocated service cost of $1 02.
separately by individual employer. In total, the RS Plan was over 80% funded on both January I, 2017 and 2016, based on the PPA funding target and PPA For measurement purposes, a 3.32% and 3.64% discount rare was assumed actuarial value of assets on chose dates. for 2017 and 2016, respectively, to determine net periodic benefit cost. The 2017 and 20 I 6 annual healrh care cost increase assumed is 6.80% and 6.90%,
Because the provisions of the PPA do not apply to the RS Plan, funding respectively, decreasing gradually to 4.95% for 2040 and thereafter. A one improvement plans and surcharges are not applicable. Future conuiburion percentage point increase in the assumed health care cost rrend rates would requirements a.re determined each year as part of the actuarial valuation of the plan increase the rota! of service and interest cost components by $73 and the and may change as a result of plan experience. end-of-year APBO by $514. A one percentage point decrease in the assumed health ca.re cost trend rates would decrease the total of service and interest cost Postretirement Health Insurance Obligation I Certain employees of the components by $60 and the end-of-year APBO by $439.
Cooperative retiring at or after age 55 are eligible ro participate in a postretiremenr health care plan through age 65. Eligible dependents of the retired Cooperative Estimated future benefit payments from the plan as of December 31, 2017, employees are also eligible to participate in this plan through age 65. Retirees pay a.re as follows:
I 00% of the premium amount for this coverage. The premium is based upon Years Ending December 31 the combined medical claims experiences of all active employees and retirees. If 2018 $ 277 premiums were determined based upon the medical claims experience of retirees 2019 ..... . . . . . . . 337 only, the resulting premium for retirees would be higher. The difference between 2020 .. . . .. . . . *.... 325 the premium paid by retirees and the potential actual premium amounr is the basis 2021 302 for the postretiremenr benefit obligation. The Cooperative uses a December 31 2022 ..... . 282 measurement date for its plan. The postretirement health care plan is unfunded. 2023-2027. 1,582
Defined-Contribution Pion I Dairyland has a qualified tax-deferred savings plan $83,543 for certain obligations under the agreement. GRE is no longer entitled for eligible employees. Eligible participants may make pretax contributions, as to any output from the unit. GRE will remain responsible for its share of eventual defined, with the Cooperative marching up to 2.5% of the participants' annual decommissioning costs and of any liability for disposal of coal combustion compensation. Contributions to this plan by the Cooperative were $1,242 and byproducts. The transaction received required approval from RUS during 2015.
$1,098 for 2017 and 2016, respectively.
The prepayment by GRE was recorded in deferred credits and is being recognized Other Plans I The Cooperative offers key employees deferred compensation into operating revenues on a straight-line basis through 2029, the approximate time plans available through NRECA. The plans permit qualifying employees to frame over which the prepayment amounts would have been billed. The amounts defer a portion of their salary until future years. The accumulated deferred recognized as revenue were $5,729 during both 2017 and 2016. Energy charges compensation balance is not available to employees until termination, to GRE under the original agreement were $17,411 during 2015. Advances from retirement or death. GRE for required deposits under the original agreement were refunded as part of the settlement terms.
All amounts of compensation deferred under the plans and all income attributable to those amounts (until paid or made available to rhe employee or other beneficiary) are solely the property and rights of the Cooperative (not restricted to rhe payment of benefits under the plan), subject only to the claim FOURTEEN ASSET RETIREMENT OBLIGATIONS of general creditors. Participants' rights under the plans are equal to those of An asset retirement obligation (ARO) is the result oflegal or contracrual obligations general creditors of the Cooperative in an amount equal to the fair market value associated with the retirement of a tangible long-lived asset that results from the of the deferred account for each participant. The related assets and liabilities, acquisition, construction, or development and/or the normal operation of a long-totaling $1,955 and $1,678 as of December 31, 2017 and 2016, respectively, lived asset. The Cooperative determines these obligations based on an estimated are reported at contract value, which approximates fair value. asset retirement cost adjusted for inflation and projected to the estimated settlement dates and discounted using a credit-adjusted risk-free interest rate. Upon initial The Cooperative also provides employees with medical insurance coverage, recognition of a liability for ARO, the Cooperative capitalizes the asset retirement vision and dental insurance coverage, short-term and long-term disability, and cost by increasing the carrying amount of the related long lived asset by the same life insu rance, which are funded by employer and employee contributions.
amount as the liability. The Cooperative allocates that asset retirement cost to expense The Cooperative's costs related to these benefits were $9,248 and $9,077 for using the straight-line method over the remaining useful life of the related long-lived 2017 and 2016, respectively. The liabili ty for these plans of $45 and $848 as of asset. The accretion of the obligation is recognized over time up to the settlement December 31, 2017 and 2016, respectively, are recorded in accrued expenses.
date. Any future change in estimate will be recognized as an increase or a decrease in the carrying amount of the liability for an ARO and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset.
TWELVE RELATED-PARTY TRANSACTIONS The Cooperative determined that it has AROs related to future removal and disposal The Cooperative provides electric and other services to its Class A members.
of asbestos at its power plants. There are no assets legally restricted for purpose of The Cooperative received reven ue of$363,603 and $351,49 1 in 2017 and settling the ARO related to future removal and disposal of asbestos.
2016, respectively, for these se rvices. The Coope rative has accounts receivable from its Class A members of $37,892 and $34,420 as of December 31, 2017 The Cooperative has established a decommissioning trust to accumulate the and 2016, respectively. estimated amounts necessary to decommission a nuclear power plant that the Cooperative formerly operated and the related Independent Spent Fuel Storage The Cooperative has advances from Class A members of $12,444 and $13,274 Installation (ISFSI). The assets of this trust in the amount of $23,114 and $74,343 as of December 31, 2017 and 20 J 6, respectively, related to the prepayment as of December 31, 2017 and 2016, respectively, are outside the Cooperative's program. Class A members have the option of paying their electric bill in administrative control and are available solely to satisfy the future costs of advance, and in turn, rhe Cooperative pays the members interest in come. The decommissioning.
Coopera ti ve's interest expense related to the prepayment program was $194 and $111 as of December 31, 2017 and 2016, respectively. Nuclear decommissioning and other asset retirement obligations as of December 3 1, 2017 and 2016, are as follows:
The Cooperati ve bas interest-bearing loan receivables from Class A members Nuclear Other Total of$132 and $246 as of December 3 1, 2017 and 2016, respectively. These Balance--December 31, 2015. $ 88,114 $ 9,116 $ 97,230 loan receivables, wh ich are recorded as part of other assets, are related to Accretion in ARO. **************** * * *
- 33 33 the eco nomic development program, wherein C lass A members can borrow (2,444)
(Decrease) in estimated obligation (2,444) funds from the Cooperative, which the members, in turn, loan to economic Incurred costs on projects . ... (11,327) (2,1 12) (13,439) development projects in their serv ice territories. These loans are rypically repaid Balance--December 31, 2016. $ 74,343 s 7,037 $ 81 ,380 to rhe Cooperative over l O years. The Cooperative recorded interest income Accretion in ARO . ... ***** ** ****
- 19 19 related to the economic development program of $6 and $16 as of l.ncrease in estimated obligacion 1,265 1,265 December 31, 2017 and 2016, respectively. Incurred coses on projects. (52,494) (1,556) (54,050)
Balance--December 31 , 201 7 ... , .,.,. , . . . $ 23,1 14 $ 5,500 $ 28,614 The Cooperative did not record a conditional ARO related to the dismantlement THIRTEEN LONG-TERM POWER AGREEMENTS of the dam and drainage reservoir for the hydro generation plant at Flambeau, During 2015, the Cooperative and GRE reached sertlement terms an1ending rhe restoratio n of land to preexisting condition at Genoa Station #3 site related to a power agreement wh ich shared costs and benefits of the Cooperative owned the land rights permit, and the removal of transmission lines in various corridors, 345-megawarr coal fired generating unit ("Genoa Station #3") located in Genoa, because the Cooperative does not have sufficient information to estimate the fair Wisconsin. The settlement terms allowed GRE to end its purchase of power and value of the ARO.
energy under the agreement as of June l, 2015, upon prepayment by GRE of
FIFTEEN NUCLEAR REACTOR The Cooperative filed a second contract damages claim in December 2012 to recover its costs generally incurred from 2007 through 2012. The Cooperative and the Llcense I The La Crosse Boiling Water Nuclear Reactor (IACBWR) was voluntarily government agreed ro settle rhe second claim in October 2016. Settlement proceeds of removed from service by the Cooperative effective April 30, 1987. The intent was $73,500 were received from the government in November 2016, and at the direction to terminate operation of the reactor, and a possession-only license was obtained of the Board of Directors, were recorded as a regulatory liability due the Class A from the Nuclear Regulatory Commission (NRC) in August 1987. lACBWR will members. The nuclear related regulatory asset of $16,700 and deferred charges fur remain in safe storage status (SAFSTOR) unril the final stage of decommissioning nuclear related litigation and plant costs of $9,164 were recovered from the regulatory oflACBWR, involving dismantlement and decontamination, can be completed. liability as these amounts had not been collected in rares yet. The remaining net In May 20 16, the NRC approved transfer of the license ro La CrosseSolutions LLC amount of$47,636 was refunded to Class A members in February 2017.
(Solutions), a subsidiary ofEnergySolutions ll.C. Solutions will temporarily hold the license and assumes responsibility fur the decommissioning of the sire. The Subsequent damages claims will be filed to recover the continuing costs arising &om license will revert back to the Cooperative following completion of decommissioning the presence of the spent fuel.
activities. While Solutions undertakes decommissioning, the Cooperative retains a lSFSI I The Cooperative completed the temporary dry storage facility project located license for its continued ownership of the spent fuel. on the lACBWR site and completed the move of the LACBWR spent nuclear fuel Nuclear Waste Policy Act of 1982 (NWPA) I Under the NWPA, the United to this ISFSI facility in September 2012. The spent nuclear fuel will remain at the States government is responsible for the storage and disposal of spent nuclear fuel ISFSI unril it is able to be transferred to the government. Annual ISFSI costs are removed from nuclear reactors. By stature and under contract, the Uni red Stares recorded on an as incurred basis and incorporated into the annual budget and rare government was to have begun accepting spent fuel in January 1998, but has nor yer making process.
licensed and established a repository. Decommissioning I The Solutions decommissioning plan anticipates completion The Cooperative filed an initial breach of contract damages claim against the United of decommissioning lACBWR, not including the ISFSI, by the end of 2019. The States government in the United States Coun of Federal Claims to recover its costs estimated costs of decommissioning the nuclear generating facility are based on generally incurred after 1998 through 2006 related to spent fuel remaining at the Solutions cost study and decommissioning plan filed with the NRC as part lACBWR. In January 20 13, the Cooperative received a damages award payment of of the license transfer. Costs incurred for decommissioning projects are charged
$37,659 from the government for this claim. against the decommissioning liability. As costs are incurred, Solutions submits requests for withdrawals to the Cooperative for release of funds from the nuclear decommissioning uusr.
~
LACROSSESOLUTIONS I
CLASS A MEMBERS CLASS E MEMBERS DAIRYLAND SOLAR FACILITIES Wisconsin Alliant Energy/Madison, Wis. Wisconsin: Arcadia, Centuria, Conrath, Hallie, Barron Electric Cooperative/Barron Northwestern Wisconsin Electric Co./Frederic, Wis. Hillsboro, Liberty Pole, Medford, Menomonie, Bayfield Electric Cooperative/Iron River NSP-Minnesora/St. Paul, Minn. Mc. Hope, Necedah, New Auburn, Phillips, Chippewa Valley Electric Cooperative/Cornell NSP-Wisconsin/Eau Claire, Wis. Roberts, Viola & Westby Clark Electric Cooperative/Greenwood Southern Minnesota Municipal Power Agency/ Minnesota: Albert Lea & Oronoco Dunn Energy Cooperative/Menomonie Eau Claire Energy Cooperative/Fall Creek Rochester, Minn. Illinois: Thomson Jackson Electric Cooperative/Black River Falls Iowa: Decorah & Strawberry Point FACILITIES ON MAP Jump River Electric Cooperative/Ladysmith Headquarters/La Crosse, Wis. FACILITIES NOT SHOWN Oakdale Electric Cooperative/Oakdale Adams Wind/Adams, Minn. Central Disposal Landfill/Lake Mills, Iowa**'*
Pierce Pepin Cooperative Services/Ellsworth Alma Generating Sire/Alma, Wis. Timberline Trail Landfill/Weyerhaeuser, Wis.****
Polk-Burnett Electric Cooperative/Centuria Barron Wind/Kensett, Iowa*
Price Electric Cooperative/Phillips Richland Electric Cooperative/Richland Center Elk Mound Generating Scacion/Elk Mound, Wis.
Riverland Energy Cooperative/Arcadia Flambeau Hydro Srarion/Ladysmich, Wis.
St. Croix Electric Cooperative/Hammond Genoa Generating Sire/Genoa, Wis.
- Avangrid Renewables Facility Scenic Rivers Energy Cooperative/Lancaster Gundersen Wind/Lewisron, Minn.
- EDP Renewables Facility Taylor Electric Cooperative/Medford Prairie Scar Wind/Austin, Minn.
- "*Eagle Creek Renewable Energy, LLC Facility Vernon Electric Cooperative/Westby Quilt Block Wind/Darlington, Wis.**
- '*Waste Management, Inc., Facilities Sarrell Hydro Station/Sartell, Minn.""
Iowa/ Minnesota Weston 4 Generating Station/Wausau, Wis.
MiEnergy Cooperative/Cresco & Rushford (Merger of Hawkeye REC and Tri-County Winnebago Wind/Thompson, Iowa Electric Cooperative on Jan. I, 2017.)
Iowa Allamakee-Clayton Electric Cooperarive/Poscville Heartland Power Cooperative/Thompson & St. Ansgar FACILITIES GENERATING RESOURCES Minnesota Freeborn-Mower Cooperative Services/Albert Lea GENERATING STATIONS People's Energy Cooperative/Oronoco Year-end Capacity Type Station in Megawatts (MW)
Illinois Jo-Carroll Energy/Elizabeth Coal (Steam) John P. Madgett .......... .. .. . ........... 387 Genoa #3 ..................... . ......... 305 SPECIAL SERVICES MEMBERS Weston #4* ... . .. . ............... .. ...... 165 Adams-Columbia Electric Cooperative/Friendship, Wis.
Combustion Turbine (Gas/Oil) Elk Mound 1-2 ............................ 80 Central Wisconsin Electric Cooperative/Iola, Wis.
Oconto Electric Cooperacive/Oconro Falls, Wis. Hydro Flambeau . .... ..... . ............... . ..... 22 Rock Energy Cooperative/Janesville, Wis. Total Dairyland Capacity . ................................ 959 CLASS C MEMBERS UNDER CONTRACT Great River Energy/Maple Grove, Minn.
Minnkota Power Cooperative/Grand Forks, N.D. Diesels Municipals . ...... .. ... . ................. 124 CLASS D MEMBERS Digesters (Biogas) Multiple Sites ......... . .............*...... 3 City of Arcadia, Wis.
Landfill Gas Timberline Trails ..... . ... ............... . .. 5 Village of Argyle, Wis. Central Disposal .............. . ....... . ..... 5 Village ofCashron, Wis.
Solar Multiple Sires .. ....... . ...... .. .......... 21.5 City of Cumberland, Wis.
City of Elroy, Wis. Hydro Sartell Hydro ........ .. .................... 10 City of Fennimore, Wis. Wind Adams Wind ..... ... . .. . . . ... .. ......... . . 17 City of Forest City, Iowa Barron Wind ........ ..... . ... ... . . ...... . . 80 Vil lage of La Farge, Wis. Gundersen Wind .. . . ........ ..... . . ... ..... 5 City of Lake Mills, Iowa Prairie Scar Wind** ................... . ...... 5 City of Lanesboro, Minn. Quilt Block Wind . ........... .. .... .. ... .. . 98 Winnebago Wind Farm ....... .. ...... . ..... 20 McGregor Municipal Uriliries, Iowa Small Wind(< 5 MW) . .......... . .......... 2.5 Village of Merrillan, Wis.
City of ew Lisbon, Wis. Total Under Contract . ................................ 396 Osage Municipal Utilities, Iowa Total Capacity in Service . ............................... 1,355 City of Sr. Charles, Minn.
City of Strawberry Point, Iowa ' Dairyland Share of Weston #4 ** 5% Share of I 00 MW Wind Farm Village of Viola, Wis.
MEMBER & SYSTEM MAP SARTEU HYDRO WESTON4 MINNESOTA WISCONSIN IOWA ILLINOIS
DAIRYLAND POWER COOPERATIVE