ML20195D781
| ML20195D781 | |
| Person / Time | |
|---|---|
| Site: | La Crosse File:Dairyland Power Cooperative icon.png |
| Issue date: | 12/31/1987 |
| From: | Willink W DAIRYLAND POWER COOPERATIVE |
| To: | |
| References | |
| NUDOCS 8806230191 | |
| Download: ML20195D781 (32) | |
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On The Cover o Dairyland Power Cooperative This is where it all begins. A night D airy and d es n t market electricity directly t the individual user, but supplies scene at the 364 megawatt coal at a wholesale cost, the total electrical requirements of 29 rural electric fired John P. hiadgett Station at Alma, distribution cooperatives who, in turn, sell the energy to their consumer members. Wis., dramati:es the complexity of just In 1987, electricity from seven Dairyland generating stations - 1,048 megawatt one part of a power generating station, (MW) capacity - was transmitted via 3,279 miles of transmission power lines to the fuel handling system. This 307 substations located throughout the system's 44,500 square mile service area. photograph looks from the generating This area extends into 62 counties in five states (Wisconsin, hiinnesota, Iowa, station toward the coal unloading Illinois and hiichigan). facility and storage silo. The fuel This instant energy is then delivered to over 176,300 consumers by way of delivery system to the John P. Madgett 44,660 miles of distribution power lines built and maintained by the locally owned Station begins with unit trains that and controlled rural electric cooperatives, deliver 11,000 tons of Wyoming coal up to twice a week. Through a series of conveyors, the mal is delivered to a 14,000 ton s s, then to a crusher building (pictured in background) and 1987 In Review then either to a stockpile or directly to the generating station. - Photo by - The cost of electricity delivered to member cooperatives decreased 4.8 percent J .W. Taylor. to 4.45 cents per kilowatt hour (kWh).
- Total operating revenues dropped 2.3 percent to $152.6 million.
- Before recording a one time accounting adjustment due to Dairyland's diversification investments in a fiber optic telecommunications venture, the Ce atents 1987 m margin am uned m $8.4 milli n. This adjustment, however, reduced Dairyland's margin to $2.8 million, a decrease of $3 million from 19S6.
-. Total electric sales were four billion kWhs, representing a 5 percent increase Report of the President 3
from 1986 sales. Electric sales to Class A members - the 29 RECS of the General Manager's Messa.:e 5 Dairyland system - were 2.7 billion kWhs, virtually the same as the 1986 Assistant General level. Manager Reports 6 - Coal contract renegotiations resulted in the lowest delivered cost of coal since Financial Statements 16 1979. Notes to Financial - New coal contracts measured against the higher comparative cost of producing Statements 20 a kWh of electricity at the La Crosse Boiling Water Reactor, resulted in the Statistical Comparative decision by the board of directors to discontinue operation of the 49 MW Summary 23 ""CIC*' I CIII'Y I" ^P'il' i Comparative Sales 24 REC Service Area 25 Consolidated Cost Information 26 ! Mission Statement Back Cover l l l l l
President's Report 1987. Some of these commitments When faced with the need to were made before the end of 1986, but replace an obsolete System Control it took several months to negotiate the and Data Acquisition / Automatic
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final contract terms. Generation Control System These new coal contracts measured (SCADA/AGC), Dairyland undertook
# against the higher comparative cost of a study to determine the feasibility of producing a kilowatt-hour of electricity expanding the present administration
- 3 at the La Crosse Boiling Water building to house the dispatch system.
Construction of a new building on Reactor, resulted in the decision by the board of directors to discontinue a new, available site was more cost-operation of the 49 MW nuclear effective. Development of plans and
- facility in April. specifications for the new building This decision was made after required almost a year of work with thorough consideration by the board the architects, Dairyland staff and a Wayne Whnk, Presdent committee of the Dairyland board of and was purely an economic decision.
The plant was operat .ig well and in a directors. safe manner when it was shut down. Final plans have been completed, Nineteen eighty-seven was an In September, a hearing examiner constraction is set to beg n and exceptional year for Dairyland, both m operations and earnings. I am of the Wisconsin Department of occupancy is expected in the fall of proud to say that Dairyland was able to Administration reversed an earlier 1989. decrease its wholesale electric rate 4.8 regulatory decision by the Wisconsin Strategic Marketing percent to Class A member Department of Natural Resources cooperatives on May 1,1987, and (WDNR) which determined that At Dairyland we reali:e we are now continues to work on controlling costs. "Dairyland could burn low sui .:r coal in a competitive market for sale of Coincident with this better than which would meet reduced sulfur energy in rural areas. Other fuel average year, the application of certain dioxide emissions and also save suppliers are promoting their products accounting principles required us to mone y." for applications whkh traditionally recogni:e losses experienced in the start The hearing examiner found that were met by electric energy. I up of a new fiber optic tele- the WDNR had erred in its assessment During 1987, Dairyland initiated a communictrion system, Norlight, in of how much it would cost Dairyland strategic marketing study to allow a which Dairyland, through its subsidiary to purchase lower sulfur coal. The better match of our energy resources ! Curtis Telecommunications, Inc., is decision is significant because with the contemporary rural energy a partner. WDNR's cost projections were the markets. This study is already yielding The Norlight system is operating basis for denying a higher emission new program ideas which will allow a well. Revenu s from the sale of limitation requested by Dairyland for 'uller use of generating plants and lines telecommunications services are its 363 MW Genoa Station No. 3. while doing a better job of meeting l increasing steadily. However, normal to The difference between the limit rural energy needs. all start-up businesses, losses may be sought by Dairyland and the one which Now, more than ever we need to anticipated in the first year or two of the WDNR proposed, results in the strengthen the bond between our local operations. We were able to absorb avoidance of about $3 million per year RECS and Dairyland, in order for all these losses in 1987 and still maintain a in higher fuel cost to Dairyland and its our members to take advantage of this positive margin for the year. members, important regional power supplier, and Dairyland has reduced its system for Dairyland to understand and Coal Cost Reductions emissions by 55 percent over the last respond to the members needs and One major reason for the 1987 14 years while increasing generation by wants. success was the achievement of over 25 percent. Dairyland continues substantial reduction in the delivered to operate its facilities well within f cost of coal for ali plants. nationally accepted air quality brux <E bfddd Seven coal and transportation standards which protect the public # contracts were negotiated and health and welfare while meeting the presented to the board of directors in electrical needs of its members. b
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I l General Manager's
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before final dismantlement, presented on the back cover of this
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All of the spent nuclear fuel has report. been removed from the reactor and Our consumer members are also our owners. Therefore, our actions
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safely stored on-site awaiting transfer
.. to a government-owned permanent have been and will always be directed i repository. Improvements m the cost toward their best interests. We will not
?,. and efficiency of coal-fired generation sacrifice long-term goals in improved
,( g simply made Dairyland's sraall nuclear service and stability of rates for short-plant less economical by comparison. term expediencies.
DairSnd's record in the As we entered 1988, we did so with mainten'nce of air and water quality renewed vision, enthusiasm, and crumd its 3 wer plants is excellent. recognition of the importance of We ap;mded and won from the planning. Having tasted the fruits of Wiscoru.ia Department of Natural the efforts of previous years, we have James W. Taylor, Gmeal Resources a modified emission permit begun in new v'ays to manage our ) M"""## businees to control the stability of for Gu.oa Station No. 3 which will l enable us to use less costly fuel during rates, extend the life of our plants, New, lower fuel and transportation the next four years. Solid waste improve the performance of our costs went into effect on Jan.1, esposal, however, looms as a difficult facilities and our people, and to do so 1987, and heralded an opportunity to and costly problem yet to be resolved. with all of the positive attributes we stabi!i:e wholesale power rates and Training programs for management can embrace. stimulate off-cystem energy sales, and supervisory persons have already But as we stand or. this springboard Gaining this major foothold in cost proven their merit and will be extended into the future, we will not take the control provided a springboard to and expanded into future years to dive until we have tested the water for other opportunities for overall improve the quality of our workforce. both temperature and depth. improvement of our operations in the The strength of the Dairyland future. organi:ation ano its hope for the future f Nineteen eighty-seven was an event-filled year. By the beginning of the lie not only in its physical facilities but in the caliber of its workforce, its V second quarter, the Nortight fiber supervisory and management team. We optic telecommunications system had are learning how to work effectively begun operation. Revenues accelerated together; to complement each other's through 1987, and, by year-end, talents in ways which bring out the best prospects for a successful new venture in all of us while acknowledging were improving. wherever possible unusual personal Support Staff Shutdown of our I.a Crosse Boiling achievement in the attainment of Water Reactor on April 30,1987, Dairyland's goals. ^'* W i" ~ ' ^d*i^i*"" resulted in greater than anticipated And so, Dairyland has set for itself coor&nat sect a e savings by year-end. This efficient but a model of performance, appropriate Director, Thomas A. steele .. . small nuclear facility will remain in safe goals, and objectives for achieving External Retstions storage for as long as 20 to 30 years those goals. Our mission statement is Dairyland directors are pictural durmg daylight hours from the sery spot the coser photo uus taken at the63 4 megauart John P. Madgett Station at Alma, Wis. These darwtors, front row left to right, are: Allen Hoel, Chippeuu Valley; Art Riemer, Bayfielf; frv Schnick, Jackson; Llosi Steinment Venon; Benard Xfichenstein, Lofayette; bo Dymes (treasurer), AllamakeeClayton; Les birmo, Crauford, and Maurice Muller, Cafar Valley. Second rou: Niles Ibman, general cowuct; Roger Enckson (first sice president), Tnsnpealcau; Quentin Rucker, People's; Don Corty, Polk-Burnett; Erv Schults Price; Geaki Koelin, Grant; asf Glen Kanten, Pierce-Pepin. Third rou: Selmcr Nelson, Banon; Roh rr Trainor, Dunn County; Leonard Ricke, Jo-Canoll: Gordon Yost, Frechnn-Moun; Brice Bender, Clark; Earl Palemm, Jump Riser; Victor Knudtson, Winncfugo; asi Merlin Hamser, Buffalo. Top rou: Wayne Willink (pesident), St. Croix County; Haney Ristow (altemate) TriCounty John Roberts, Eau Claire; La Wallace (Secretary), Richland; Roland Kelley, Oakdale; Lanard Skatek, Haukeye TriCounty; Frank Bohn (second sice president), Taylor; and Ray Tolley (Class B rcpresentatise), AdamsColumbia. Rober Ardoson, Tri-County, is missing from the photo. - Photo by J.W. Taylor
"Tite oairylami system's fastest grotving single customer sector is the Administration commercial amt imiuscrial area."
count upon to remain stable. The participation among all cooperatives, committee made recommenJations for and approxinutely 70 rural electric programs to meet these challenges. cooperative managers, staff members, The Phase i report recommended anJ directors are preparing several
',, development of a uniform, system-wide marketing programs which are applicable body of consumer info - "ion, both to each market segment.
fact and opinion. Through these more aggressive The steering committe. was broken marketing programs, we hope to raise into subcommittees wl.ich drafteJ energy growth from the 1.1 percent reports on subjects such as power average of the past few years to 2.0 supply, changes in the energy market percent anJ to improve the system load place, and future sales to municipal factor by 0.5 percent per year. e subcommittees also prepared Fuel Cost James N. SkmcJ Assistant reports on the five Dairyland system Dairyland completed a long O""" """# d " major market segments: residential, renegotiation process on coal and coal agricultural, commercial and industrial, transportation contracts during 1987. recreational, and off-system sales. Coal is the fuel which produces over 87 A most significant Administration These committees reported that the percent of the energy delivered by Division event in 1987 was defining Dairyland system's fastest growing single Dairyland. the present role and future opportunities customer sector is the commercial and These new contracts will allow for Dairyland and its member systems in industrial area, and that the :argest continued stable wholesale energy the energy marketplace. potential for increasing sales is within charges to rural electric cooperatives in That was the objective of Phase 1 of a the agricultural sector. the Dairyland system. , Strategic Marketing Steering Committee Phase 11 of the study expanded the Dairyland experienced its lowest i study from June through December, with Phase 11 starting in January of 1988. Oso em cmples une mmlwd in a 3Ar basic sulmim tramsg larram cahl Inteutam ) The Steering Comr mee was made Afanaxem<nt durine
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up of nine rural electric cooperative ' managers, plus a support staff of various 7" . i , l Dairyland management and staft ' -
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personnel. The work of the committee / ~ l was guided by a marketing consultant.
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m- : ' j I The committee met for 14 full days l '?' !- as a whole, plus many additional days in I C' -* < subcommittee sessions. Their findings . ME ' portrayed the distribution cooperatives' -
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present position and future role in ,
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matching power supplies with member = energy needs as effectively and 9s ,
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economically as possible. 1
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The committee found that the : - toughest competition in the near term is % , qt , ,
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6 suppliers. Another major challenge is to V '
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improve system loaJ factor, thus holding f j Js
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kilowatt hour. , . Electric cooperatives have ' emphasi:ed the need to offer the very .. best service at rates the member can b
f Dairyland's senior management also achievtments in reducing inventory $1 received over 40 hours of training in million and increasing the turnover of I 1i" Interaction hianagement. The training program is a result of a Front.End materials by 20 percent. The hiaterials hianagement Analysis conducted in late 1986. information system has grown to offer
. The program is expected to continue increased amounts of data and t for over three years and will involve information, on a more timely basis, to over 160 employees, both management and generating station During 1987,15 employees retired employees.
with a total of over 456 years of service. Dairyland's aircraft continue to At year's end, Dairyland had 671 provide cost efficient travel for the active full-time, employees. There were numerous Dairyland Power employees 45 new employees,45 employee associated with various utility
. terminations and four deaths. There responsibilities in the hiidwest.
!i were 1,955 new applications received, Helicopter line patrol activities allow
" reviewed, evaluated and logged. Transmission hiaintenance personnel to A two year labor agreement was present transmission outages due to Dunng @7. oser 7co imrors courtd Daroland ratified through January,1989. worn and damaged transmission lines
/<uhncs. Dismhunon oopeariie anplowes.
Jareaors. consurnas. clonentary, Ad sbl and Coordination with member rural and structures. cdlexe students are cuneaged to whalule tours hW m hts m WoMd of Dasoland's of(sce arul omcating f.uilitic<. U&% NMd MdyM hing 1%7. ,y h' To inform members, the public and / employees, various video and delivered cost of coal since 1979. The audiovisualProductions, publications ] wf /. average cost of coal delivered in 1987 anJ tours were completeJ. Numerous was $27.22 ptr ton compared to $34.S7 presentations were made at annual per ton in 1986, a 21 percent decrease. meetings, to environmental groups and Since Dairyland's largest annual various clubs. expense is fuel, primarily coal, this is The Information and hiember positive news in continued efforts to Services and Printing Departments were keep wholesale rates down. responsible for many of these activities. Human Resources Safety Im provement Over 100 employees were involved Dairyland Power's safety record in a basic supervisory training program continues to show substantial called "Interaction hianagement" during improvement. The number of lost time 1987. accidents decreased to 18 in 1987 The program is designed to use compared to 25 in 1986 and 29 in 1985. problem solving methods along with in hiaterials hianagement. positive generic communications skills to handle results have been shown from the Support Staff most personnel performance problems. initiation of an automucJ purchase Peter R. Dehnche . , . . Director. Interaction hianagement uses the order system, computerced inventory at Information & Member sen4ces behaviorai modeling learning theory, the Alma Site, Genoa Site anJ Darrell H. tack m. . . Director, hhtertals which incluJes a short lecture, a viJeo La Crosse, the spotting of construction khn2 cement model, followed by extensive repetitious materials throughout DairylanJ's service Mary uuid . . Nectm, Human Resources practice with constructive feeJback from area, anJ the sale of salvageable material. Doudas a Penson m m Netm, Procurnnna peers. Frederick Schuhrt . . . . . . , . Staff Attorney hiaterials Control interfaces with An essentialingredient of the Richard K. WJ11ams . . . . . . . Director, Area every department within DairylanJ. o,y,joyn,n, program is the willing support, coaching, During 1987, hiaterials Control y,mes E. Yea:N . . . Director, Safety and reinforcing by the surervisor's boss personnel, in conjunction with the Aamini tr, tion and senior management of Dairyland. various user Jerartments, made major
_ .._ _ _ _ _ _ _ _ _.. _ . _ _. _ _ _ . _ _ _ m , }[ i k w w n s "The goal of the energy s,<pt>iy i Plan Task Force is to help Y . . Dairylanti select the most ish EnSineennS and econantical anti reltable power ? Technical Services supply alternarites." = b =
.; - - - . : r. ' , ., c . s .. -- The planning process developed for control syoem <as controlling ES M Rf' Advance Plan V addressed the approximat ly 8,000 water heaters,
$" M '- 6 challenges and opportunities associated 6,800 dual 2el nstallations,1,000 O.
- d' .j with the concept ofleast cost planning. heat storage iys ems and 30 peak alert p gg - Pursuit of a least cost plan places loads. This r:pr sents approximately & g-Ofg W increased emphasis on the member side 65 hlW of to a under control. of the meter as opposed to only the Dairyland and :s member cooperatives
/ generation side. Alternatives are well on the way to reaching their b consiJered include load management goal of approxcaately 120 htW of k 1 and energy conservation for the controlled load.
E ..b member. Phase 11 of the Dairy Study ended c, .
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At year's end, DairylanJ's load in 1987 and Phase 111 will follow.
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Danyland a nnaaal a hchcorner firm in Apnl to make eight lifts un tuu 161 kilotolt imes near f Wilham L llog, Aisistant f.o Gosse and Genna. Wn. The hchay.ra uus restal to sair nmc and money in utring the folcs in arc.ts T Geneal Manage for maccesselc to cvnstmetton whiclcs. The poles raged fnnn 3o fat to 93 fccc call und one ueidal mer l Engmcenng ard Technical 4,000 tends. him i .
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[k f[ . ? - . . O k....) uting 1987 'he Enginecting and d . Y k ./ P Technical Ser& division has - Eh g contiriued to emphasi:e reiiability and cost-saving improvements. ,,,g;
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E reorgani:ation is one more step in a
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Fd f Under the new arrangement, all -r E .'.h._ @ ~ Mpk $ ' Mj g aspects leading .o completed lines and (, ,,' - f%' n 30.g n substations are now under the ( .'Q+ , . .- , e ' .Q [. n =- . - + - &
# *. . e~
e responsibility of a single division. This - ih includes planning, engineering, riaht of .kv. RI.N- W Y.c. ... - ; h /^ $ way procurement and construction. t x g# #]ti s.
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" g g p g.
This change, with its direct lines of communication and accountability, v.111 d;f(ykg.% i" A
- # - 3-i ~ %.s A
. 7.
Y
' .} # '
allow us to increase efficiency and ~. -: - improve service. % System Planning
- r, Preparation of Advance Plan V .
- ~ %- - ; %,e . -
V , occupied a majority of System Planning h < ~e y p MS~ , D g$ staff time in 1987. Dairyland, hke fd ii'N 4%'I:Ech*!i .d h'M othe- Wisconsin utilities, is required to J i.? . M-F i $ oQQ.sSt.l.N.)3.' t$@4 fM T ~ file a comprehensive document - 3 ,;
%f% - R' y
~
approximately once every two years -
< . Mf# q outlining its plans to meet the future -t- N Mi M,,b'"' .8 energy requirements of its membership. -' ' I' N N /.Y"W f"Mk.dVE 5' E# N 4 ' '
L
W:.W D"hs p< 4 mmf We44 l w
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41 l l u - During a three year period, Dairyland substations with its own personnel, addition will increase reRaoility by monitored over 30 dairy farms, During 1937, Dairyland providing a backup path for the averaging 48 cows and 780,000 pounds constructed several new 69 kV southern half of the system. of milk per year. The average transmission lines, including the 7.6 Also during 1987, this microwave monitored dairy farm utili:ed 32,000 mile Lime Springs line (Hawkeye Tri- network was extended to two member kWh of energy annually in the County), the 6.0 mile Dalbarco line distribution cooperatives: Cedar Valley I production of milk and contributed (Barron), and the 5.9 mile Canyon line and People's. This was done using low approximately 10.5 kW to peak (Jo-Carroll). density microwt.ve radio which can demand. Numerous opportunities were in addition to new lines, Dairyland carry up to six channels of voice or identified in Phase 11 to shift load to off also reconductored its existing 21 mile data into, or out of, the member peak periods as well as to conserve 161 kV line between Genoa and distribution cooperative. This has energy. Phase 111 of the study will La Crosse and upgraded 40 miles of 69 proven to be a tremendous economic involve detailed analysis and kV line its Mitchell and Floyd Counties benefit to offset the high cost of leased I experiments with a variety of energy in Iowa (Cedar Valley). It also telephone circuits. I and load management csptions. completely rebuilt 19 miles of line, Energy Supply Plan c .werted from 34.5 kV to 69 kV, m. Real Estate and Right of Way The work of the Energy Supply the service areas of Vernon and Dairyland owns property Trempealeau Electric Cooperatives. Plan Task Force, organi:ed ir 1986, l throughout its service area which is There were three transmission and grew significantly in 1987. This task managed by the Real Estate, Right of five distribution substations completed force combines a broad spectrum of Way and Related Services Department. in 1987. The transmission substations disciplines witain the cooperative, The following are some of the diverse are; Jerico, built in the Hawkeye Tri- including fuels procurement, projects, besides normal right of way County service area; Skyline, built in operations, environmental, financial procurement for new facilities, which the Vernon service area; and North and engineering. The committee brings this department undertook in the past La Crosse, which serves T ,pealeau all of these perspectives into the year: and Vernon RECS. planning process.
- Negotiation of a property The new distribution substations Task Force achievements include exchange with the U.S. Fish & are Equity (Eau Claire), Pine Creek development of a comprehensive Wildlife Service to accommodate (Tri-County), Canyon (Jo-Carroll), corporate model and a base case plan.
Dairyland's Misssissippi River Fleeting Dalbarco (Barron), and Lime Springs The gohf this process is to help Operation, exchanging Dairyland's (Hawkeye Tri-County). Dairyland select the most e enomical Weaver Bottoms land for land on and reliable power supply alternatives. Electrical Engineering Thief Island near Genoa.
- Continuing efforts in the in early 1937, a contract was signed gg{
retirement of the Elk Lake Dam, near for a new Energy Management System Eau Claire, Wis., including (EMS). This sophisticated tool is a preparations for the restoration of the computer based system for monitoring dam and transfer of the facility to the and controlling Dairyland's complex Lake District by mid 19SS. energy generation and delivery system.
- Efforts in conjunction with the The goal of the new EMS is to allow Wisconsin Electric Cooperative Dairyland to increase reli:bility and to Support Staff l Association and legal counsel to obtain operate its system more economically. Albert D. Dial .. . Director, Real Estate, corrective legislation necessary to Development of the new EMS is Right of Way eliminate the requirement for prcuressing on schedule. Plans are to & Re'ated Services cooperatives to re-record easements. have the system complete ana ready to charles v. sans crainte , oirector, ship by the end of January,1989. Electrical Enginceing Transtnission Engineering During 1937, engineering and Larry H. Thorson .. .. .. Director, and Construction planning was completed in conjunction system nanning Rkk C. Willenberg . Director, Dairyland is proud of the fact that with another utility for an extensive .. .
it plans, designs and constructs addition to the joint microwave **" ] " j ,'" [ essentially all its transmissic,n lines and communications network. This new
~
"The teamtvork atmosphere exhibited by the interaction of people in the division tvill provide a stronger and more integrated energy 0 Operations supply natwrk."
determine their current and future decisior. , discontinue operating economic and productive value. LACBWR based primarily on The goal is a continuing focus on economics. The plant was operating operational efficiency and performance safely, reliably, and in an g ' improvement resulting in a stronger environmentally satisfactory manner. and more integrated energy supply However, it was a relatively small i# # network. A network that is more plant and the comparative cost of a M responsive to the needs of member kilowatt hour from the facility had systems. become higher than one from the coal-The Operations Division fired plants. accomplishes this through a Dairyland will continue to maintain
, , '% coordination of personnel from various custody of the spent fuel and the other 1 skill groups interacting on a day to day basis.
nuclear plant components for some time. Plant staffing has been reduced
$"[$Ih["'
Amno'u LACBWR Closed A major event of the past year was from 82 to 47, and some further staff reducn,ons wiu be coming. the decision of the Dairyland board of These staff reductions have been I direuors to discontinue operation of accomplished without any layoffs. All The past year ,uld be classified as a f these employees have accepted jobs process of strengthening the 49 MW LACBWR nuclear Dairyland's operations by reviewing ali generating facility at Genoa, Wis. elsew here, many of them m other areas generation and transmission facilities to The board carefully considered the at Dairyland. Support Staff l GENERATION STATIONS TOTAL MWh REQUIREMENTS Generating 5tations Dmd M. CarroH . namksu H3droelettrw TotM PW statum. knemtenJere g pg R, shard D Deu. . John P Madget 5tarwm, Number of in kW Cost Per John S (Wwth . . Gerwie St mN 3. l sy,m,an, Steam: Alma. $ 194.390 560.689 13.34 $17.90 ; RxhorJ B tiedbnger . A'ma staexe.
. MI
- I W.M0 I.W P RM 16M kneintendent Genoa #1. 4 9.320 t 3M) (0.01 ) -
Ibudas L M,Kee Alma Generarmg Sae, Genoa 83 . 1 363.333 1,134,611 - 32.93 15.68 A= tant Manarr Stoneman 2 44900 51.132 1.22 20 84 Juhan A Nelam . Alma a neranng. Total Steam . 13 980.830 3.639,331 86.56 16.68 Sw Manarr John D. Parkvn . . %grintendent, LACBwR Alfred F betel . E J Stoneman Statxm. Supemeendent Hiro: Flamleau . 3 11.000 31.214 0.79 - Transmih Clarerwe R Faricy Nuclear: (IACBWR) . I .__49M 120.0f0 3 07 16 26 Manaar. Total Generation . 21 M7.930_ 3.801.605 90.42 16 52 Ihmaid A Fetta . Supr> w. hAce Purchased Powet . 402,627 9.53 16 11 Rxhard M carolamo Total Requirements . 1204,22L John F. Ihnk . Ngemv. wesi Arc.
. Sun.ruxe.5outh Area
~IM0(1 516 40 TRANSMISSION LINES SUBSTATIONS Miles as Total Capacity Voltace -kV Constr uctedL Tvtse Numbe. .kVA-161 583.84 Plant . . 4 1.011,500 69 2,447.81 Transmission . 31 1,301,000 34.5 ,_H7.7 3 Distribution .. .. 272 80L680 1 279 33 Total . .
_30]_ 3 120,180 . M
( nym:. ; e , , ta .. _- fr' , gg:
,y ~.-e." A plant life extension program has M l:
j{ r g
.e
.b been initiated to evaluate the condition of existing plants and to develop plans i: t <l g, , !
, y to extend the life of some of the
! , a #: --
existing facilities. This will result in a
~
; " 4 sophisticated maintenance management V. _# w J. -. 'h.- D program.
* ~
A newly formed Plant Betterment
~
!l , I . !v -
Department initiated a number of
+ studies and programs including hl.. , 'gw' ; '
'd
- performance monitoring of plant i
! I gl . E~- systems, monitoring of plant thermal !
t] - .- ' ,
.. efficiency and evaluation of system and equipment performances; and the
-' monitoring and improvement of 3 J l
~
availability and reliability of power plant auxiliary systems.
. .m -
A Plant Performance Committee, consisting of plant superintendents. [] . ...?~_ \A x
' .-Tc c performance engineers and Headquarters staff meet regularly to
._.4 M'%
.",a
...i. . .%- . . -
.j ._ .-
d scuss opportunities for plant La Crosse iblmg Water Reacer Immnct gwde fast fucl awmNy in spent fact storage tml insik the operations and heat rate con:amment holdmg folla mg plant's shiah on Atwil p. nW Thu is onc of n assonNics remowd improvements. The interaction among funn the teamr anc The a mccauan falay b xm annmercial opcarsm m Lemlvr of i A these personnel has resulted in a Genoa Station No.1 (9 MW) has Teamwork Atmosphere positive teamwork atmosphere also been retired. The boiler has been throughout the Operations Division. sold and the plant will be dismantleJ Dairyland has evaluated ways to This teamwork aprroach is also by the end of 1988. utd. i:e its plant personnel and has ev dent in activities of a System begun a techmcal training program to Technical Training Committee. This Plant Operations keep the skills of plant personnel up to committee includes personnel involved A major overhaul and maintenance date. at Dairyland's Genoa Station No. 3 was Hydro 66 Power Generated & Purchawd (Net) Steam Nuclear planned well in advance and conducted mound, a un E Purchased with minimal outside supervision and , almost entirely with Dairyland Power -
, maintenance personnel. 1987 l _ .g -
Genoa Station No. 3 was out of , service from Sept. I through Nov. 30. ~' All sections of the turbine were 1986[' ._ disawembled and inspecteJ during the overhaul. There were two similar rr.ajor 1985 l n overhauls presiously at Genoa Station - No. 3 by outside contractors. From 39g { records and past experience Dairyland h- 2 , decided to "Jo this one ourselves." i _ _ Employees from throughout tl.e 1983l0 w - M-.i p DairylanJ generation system took great pride in the work on "their facility" 0 1000 N00 3000 4000 5000 and it saved Dairyland money.
blending system for Genoa Station No. Coit of Coal Per Ton Burned Barged Unit Train 3. This will allow Dairyland to economically utili:e types of coal, not only reducing costs but, also meeting N ual t sura e e artment has been formed to develop and I" r u hIut Dai ytan e pr ran s are expected to assist all of Dairyland i 9,33 Power's functions and improve their operations. The five personnel in this department were previously assigned to 19s4 . 1 LACBWR. During the past year, Dal yland has enhanced the physical securi y at all of its generating facilities. There is now 5 to 15 20 25 30 35 e ntr lied access at all of the generating stations. As part of the organi:ational with training people at rower plants a sophisticated state of the art System improvement during 1987, and the transmission systems and Operations Center (SOC). Personnel transmission construction activities involves the employees that have are already taking part in operational were transferred to the Engineering and experience in handling the problems, training for the new SOC. Technical Services Division. The SOC Center W rk on the aJministrative Operations Division is now involved i building and SOC is expected to begin with the roui.d-the-clock activities at The Power Engineering Department in May of 1988 with completion the generating stations, transmission was greatly involved with the scheduled for the fall of 1939. substations and transmission lines. development of plans for the new This department has also been Dairyland is sure that the teamwork administration building w hich includes involved with the design of a coal atmosphere exhibited by the t mcrasurt Gcnm Station No. 3 uus out of scruce fmm Scn a thmui:h Noi. 30 for marr interaction of people in the division Runland's 3 >3 oidaul and ma nrenance. The maage was planncJ util in adiunce and conducrcJ uith minhnal maside will pr vide a stronger and more su;minen. - 5 4 toto by Sig Molland integrated energy supply network and
. be more responsive to the needs of
, g .
.
- members.
J _- 7 - ; Q l 9 33 __ n .. G
~
-,' Q
%g( , a ' 'd- j .
'(,M es' ii ' ' k lh ., ' 3 ,
kPPo" &E h; '. , Daniel L Crady . . Director. Plant fletterment
" - e 1 -
p ! [ ; Paul E. Finner Director, Power ProJuction
, P' 4- . ' !
'Ul b' Oarles J. Kulas . . Director. Electrical Systems
? !I ,
j .//, N ,_ pse; Harry W. Monti . . . . . . Director, System "I { j f[. ', - M , g Operaticms Center y'[!*
-- I '
Richard E. Shimshak . . . . Director, f ' * - ' f r g%[ y. h"/ Power Engineering
}2
- C 4 1 , (h . , Robert R. Wery . . .. . .. Sutyrvisor, b
1* _um, . 4 i [1
.. Quahty Assurance I
F" i Controller's Group , f i estimated reali:able value. The total of rates to its Class A members. The these adjustments amounted to a overall result was a Class A revenue
., charge to expense of $5.6 million. The per kWh decrease of 4.8 percent from Dairyland board is continuously the 1986 level of 46.78 mills to 44.53 monitoring its investment in CTI in mills in 1987.
order to optimi:e the future Additionally, rates were reduced by the Dairyland board in 1988 with the
\ a opportunities associated with CT1's investment in Norlight. Class A revenue per kWh projected to
" Dairyland's margin history in recent decrease by 3.5 percent to an average
. years has been adequate to maintain rate of 42.96 mills.
equity and build cash reserves. The This forecasted 1988 Class A rate one-time aJjustment of $5.6 million, will be the lowest in six years going s while undesirable, uas able to be back to 1983 when the rate was 44.02 absorbed due to the cushioning effect mills. It is also anticipated that the wur c. wue. Assistanl f excellent results m the previous average rate in 1989 will not be higher cual Manam and three years and Dairyland's financial than the 1987 rate level, resulting in a a,nm,n, strength. fairly stable rate to Dairyland's Class A The annual margins provide a members for the three year period A lthough Dairyland's 1987 revenues s urce >f funding, along with REA 1937 through 1989. Dairyland's rate decreased overall compared to gu r nteed FFB financing, to will have averaged approximately 44 1986, Dairyland had a very successful c ntinually upgrade existing facilities mills for this time frame. year in terms of operating and non, and construct new facilities. g,ye, operating margins prior to an hiamtenance of Datryland's financial extraordinary adjustment. strength is important in order to be in Total sales of 4 billion kWhs Before recording a one-time a strong position if the REA financing represent a 5 percent increase from accounting adjustment, the 1987 net program diminishes. At that point, 1986 sales of 3.8 billion kWhs. margin amounted to $8.4 million Dairyland, may be utili:ing other Dairyland generating plants compared to the 1986 amount of $5.8 produced 90.4 percent of the total
* "'CCS f1 ng-term debt financing million, an increase of $2.6 million. A .
t gether with its own capital arising system energy requirements while one-time adjustment of $5.6 million purchased power from members of the fr m adequate margins. ultimately reduced Dairyland's margin In 1987, Dairyland decreased its hiid Continent Area Power Pool to $2.8 million in 1987, producing a decrease from 1986 of $3 million. The $5.6 million adjustment is the I result of recogni:ing losses which are Revenue Dollar Experse Dollar attributable to Dairyland's
""*-8*
diversification subsidiary, Curtis tg,tg m m, m_. mm Telecommunications, Inc. (CTI).
% _ s es. %_mn CTI is a partner with four other m utinties in a fiber optic based w =-im telecommunications company, Norlight. Dairyland has been deferring CT1's share of the expected early year book losses of NorLight which operates a fiber optic network primarily as a "carrier's carrier." Due to various factors, Dairyland in 1987 reversed the deferral and expensed the CTI losses through year-end. In addition, an adjustment in the carrying gg W
value of CTI has been maJe to reduce CTl's investment in Nottight to an b
"The average cost of power delivered to the 29 Class A members in 1987. . . decreased 4.8 percent."
(MAPP) accounted for the balance of Expenses million. Net margin, the result of 9.6 crcent. . combining operating and nonoperating Operating expenses plus interest margins along with the Nortight diectric sales to Class A members - the 29 distribution cooperatives and other deductions totaled $155.1 adjustment, amounted to $2.8 million, served by Dairyland - of 2,697 rnilli n as c mpared to $155.3 million a decrease from the 1986 net margin of million kWhs were less than 1 percent in 1986 for an overall total cost of $5.8 million. The net margins lower than 1986 sales of 2,710 million service decrease of less than 1 percent, amounted to approximately 1.9 cents kWhs. Class A member kWh sales are n e c st f fuel, the largest annual of the 1987 revenue dollar as 67 percent of total energy sales, expense item at Dairyland, amounted compared to 3.7 cents in 1986. Sales to Class C, D, & E members to $62.8 million or 41 cents of each Dairyland's capital credit policy is - neighboring electric utilities, M APP revenue dollar. In 1937 purchased to assign margins as patronage capital members and area municipal systems p wer c sts amounted to $6.5 million to its members to be returned on a 20 - were 1.3 billion kWhs in 1987, a 20 f r power purchased from others year basis. In 1987 $4 million was p:rcent increase from the previous w hich was 9.6 percent of total kWh returned to the Dairyland distribution year. These sales comprised 33 percent raimrements. cooperatives adding to the $28 million of Dairyland's total energy sales. The tctal cost of service, exclusive of patronage previously returned to the of fuel and purchased power, was Revenues Dairyland distribution cooperatives. higher in 1987, increasing from $78.6 Total operating revenues dropped milli n in 1986, to $85.8 million in Rates and the Class A to $152.6 million in 1987 from $156.2 1987. The main reason for this Cost of Power million in 1986, a decrease of 2.3 incre se is the one-time NorLight The Dairyland board of directors percent. Revenues from energy sales to write- ff f $5.6 million. A substantial authori:ed a rate reduction for the Class A member sycems, decreased to p rtion of Dairyland s cost of service is 1987-88 rate year beginning on May 1, c mpnsed of the fixed costs of $120.1 million from the 1986 level of 1987. This was expected to result in an $126.8 million for a 5.5 percent depreciation, taxes, interest, and other overall rate decrease of 2.28 mills from decrease, deductions which amounted to $53.7 million or approximately 35 cents of the 1986 actual rate of 46.78 mills to Revenues from Class C, D & E 44.50 mills in 1987. members and other power sales each revenue dollar. He actual cost of power delivered increased 11 percent to $31.6 million Margins to the 29 Class A members in 1987 in 1987 from $28.6 million in 19S6.
, He operating margin resulting am umed t 44.53 mills per kWh.
Total operating revenues also included His is a decrease of 4.8 percent from from electric energy sales, exclusive of other revenues of $0.8 million the NorLight write-off of $5.6 million, the 1986 cost of power of 46.78 mills primarily from rent from electne amounted to $3 million, up from the per kWh. property and miscellaneous service tesenu a 1986 operating margin of $900,000. Nuclear Plant Activities The nonoperating margin, principally investment income, increased to $5.4 hs f & History of Revenues and Expenses Total Total Non-Operatinc . Operating Operating Net Year Revenues Expenses Margins Margins 1983 ... ..... $154,076,077 $152,027.620 $2,843,578 $4,892,035 4 1984 165,875,094 164,108,007 4,719,994 6,487.081 1985 .. . 159,793,307 161,322,306 4.911,19! 3,382,192 1986 , 156.221,395 155,311,326 4,852.532 5,762,601 1987 . . 152,552,945 155,747,527 6.042,834 2,848,252 b
. - t ,
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"- ii J. ;41
)
'hi .. I m w a u w, c., La Crosse Boiling Water Reactor Financing r (LACBWR) as of April 30,1987. The j
' * * Through 1987, Dairyland has paid
d plant will continue under a "possession
- the REA $71.8 million in interest b only" license in a "safe storage" mode payments and $117.4 million in m w. 7 y q,77, v- :.m y,gg[ ..gd until the fuelis removed from the site and ultimate decommissioning takes principal payments for a total of O hl red t reco er h tIalue of the pa e i cib $ 2 ni n on Y plant and its fuel in the amount of REA two and five percent debt plus
= hgn )4 . mmA .
m ,.r 2a 8
$18.2 million on FFB obligations.
$18.4 million over a 10 year period s se of $1.8 mi$ lion IIi o aled $18 mi n for 87 to o, io n u n io """"
anticipated that the safe storage costs The balance of long-term interest llf3= ' '- E *- 5 "- along with the annual amorti:ation will payments included $0.4 million on a
- still result in a significant cost savings capitali:ed barge lease plus $3.2 y
)a 4
null on, primarily payments to trustees m W 7: . 1 7l lMli
'- - ~ - ' " ' ~ - -
compared to continuing to generate electricity. for three tax-exempt municipal bonds. m;3gNh5]d j jl
. Dairyland's decommissioning financing policy is intended to provide Interest and principal payable totaled
$32 million for 19S7.
= yh4.W c ww. u,b g '
a reasonable reserve for the eventual Operating Plan 4 cost to decommission LACBWR, ne
- @ W.r F .VCE;% ' !! funded LACBWR decommissioning After careful consideration, the
<E , P reserve at year end of $9.4 million is Controller's Divi 3 ion has developed a
= w.;7. m '.WI . d .. anticipated to reach in excess of $92 1988 perating plan which involves d s4 4 4 & & a 8 il million by the year 2010 based upon m j rg is such as development and
, , .,s annual funding of $1.3 million through doption of a financial policy, major m uu Dmi. E'" B "*'--
1999 along with interest earnings. The impr vements in the accounting it # 9 t' s d decommissioning finansing policy is systems and a transition to a data base
-(~,Lmy 0
7 C
- Mj U intended to assure that the current generation of consumers provide for
* ". ger in Dairyland's computer suces area.
= {L LJ Og fy the expected cost to decommission LACBWR through the Class A
~ M_a [-
=f f wholesale power rates.
a a a . >
,(( "g$ General Fund Activity LL" -
Dairyland's cash and temporary
= C"de i d Euk A A h cash investments level increased from
$26 million in 1986 to $51.5 million u w,re,au r.-rw .m, in 1987, a change of $25.5 million. A O=== E am. *
- 5%, prime factor was the drawdown of
$18.6 million in FFB funds from the
, close-out of the REA generation and
, ,; e , e transmission k>ans, replenishing m Dairyland's general funds which had n 4 - , e been used previously for construction. Support Staff
. Another factor has been the DonaM D. Calhmn . . Director, Accounting 9 5 - a e reduction of Dairyland's coal inventory Keith W. Garrett . .... Director,
- from $40.4 million in 1986 to $35.5 Financial Managernent
*
- e e a million in 1987, thus requiring less Jarnea c. Lawence . . . .. .... Direnor, m cash to replace (nventory. The average computer service.
; & 4 A a cost per ton decreased as well as the 12Roy W. Niedfelt . . Internal Auditor tonnage maintained at the plants.
n
Consolidated Balance Sheets Assets December 31, (in Thousands) 1987 19 % ELECTRIC PLANT (Notes 1,2 7 and 10): 1 Plant and equipment, at original cost $491,803 $499,041 Less. Accumulated depreciation . _{202,653] (197,911) 289,150 301,130 Construction work in progress 7,634 4,786 Nuclear fuel, at amorti:ed cost - 16,446 Total electric plant , 296,784 322,362 OTHER ASSETS: Investments (Note 1) 36,887 32,271 Investment in fiber optics venture (Note 9) 3,126 6,351 Investments in capital term certificates of National Rural Utilities Cooperative Finance Corporation 9,856 9,856 Pollution Control Bond proceeds on deposit with trustee ,, 2,041 1,869 Deferred charges-LACBWR costs, net (Note 10) 17,199 - Other (Note 8) 4,103 S,087 Total other assets 73,212 55,434 CURRENT ASSETS: Cash and temporary cash investments . 51,542 25,951 Accounts receivable-Energy sales 14,982 15,002 Other 4,819 1,850 Inventories, at average cost-Fossil fuels 35,622 40,924 Materials and surplies . 8,442 9,516 ( Prepaid expenses 779 915 Total current assets 116,186 94,158 __$486,182 $471,954 The accompanying notes are an ir,tural par of these consohdated balance sheets j m$1 O
Capitalization and Liabili".ies December 31, (In Thousands) 1987 1986 CAPITALIZATION: hiember and patron equities-hiembership fees $ to $ 10 Patronage capital (Note 4) 70,351 71,505 Total member and patron equities . 70,361 71,515 Long-term obligations (Note 2) 363,705 353,718 Total capitali:ation . 434,066 425.233 DEFERRED CREDITS (Notes 5 and 8) . 20,194 21,989 COhthilThiENTS AND CONTINGENT LIABILITIES (Note 6) CURRENT LIABII.lTIES: Current maturities of long-term obligations . 8,614 8,185 Advances from member cooperatives (Note 3) 8,471 7,278 Accounts payable 6,785 2,734 Accrued liabilities-Payroll and acation pay 2,416 2,081 Taxes 2,108 1,310 Interest 939 937 Other 2,589 2,207 Total current liabilities 31,922 24,732
$486,182 $471,954 17
Consolidated Statements of Revenues, Expenses and Patronage Capital For The Years Ended December 31, (In Thousands) 1987 1986 OPERATING REVENUES: Sales of electric energy .. . .. $ 151,764 $155,325 Other . . 789 896 Total operating revenues . . 152,553 156,221 OPERATING EXPENSES: Fuel .. . . . 62,790 72,737 Purchased and interchanged power, net . 6.488 3,968 Other operations 23,241 23.708 hiaintenance 8,894 8,836 Depreciation and amorti:ation (Notes I and 10) , 17,715 16,453 Taxes . . 6,682 5,651 Total operating expenses .. 125,810 131,353 Operating margin before interest and other deductions . . . 26,743 24,868 INTEREST AND OTliER DEDUCTIONS: Interest . . . 24,623 24,552 Allowance for borrowed funds used during construction (Note 1) . (467) (1,105) Other (Note 9) 5,179 511 Total interest and other deductions . . 29,335 23,958 Operating margin (deficit) (2,592) 910 NONOPERATING hi ARGIN, principally investment income . 5,440 4,83 Net margin . 2,848 5,763 PATRONAGE CAPITAL beginning of year . . 71,505 69,670 RETIREhiENT OF CAPITAL CREDITS (Note 4) (4,002) B 928) PATRONAGE CAPITAL, end of year, including margins assignable of $2,848 in 1987 and $5,763 in 1986 . . . .. . . $ 70,351 $_71,505 The accornpanying notes sre an integral part of these consolidated statements
} l l
O Consolidated Statements of Cash Flows For The Years Ended December 31, (In Thousands) 1987 _ 19S6 CASH FLOW PROVIDED BY (USED IN): Operating activities-Net margin $ 2,848 5 5,763 Depreciation and amortization 16,486 16,453 Amorti:ation of nuclear fuel 1,968 2,751 Amorti:ation of deferred charges- LACBWR 1,228 - Reduction in carrying value of fiber optics venture 5,567 - (%: 2,400 2,792 Change in current operating items: Accounts receivable 352 39 Inventories . 5,988 (8,648) Prepaid expenses 136 94 { Accounts payable 3,201 (2,035) Accrued liabilities 1,517 (572) Cash provided by operating activities 41,691 16,637 Financing activities-Proceeds from long-term obligations 18,608 9,980 Change in Pollution Control Ibnd proceeds on deposit with trustee (172) 242 Repayment of long-term obligations . (6,999) (',904) Retirement of capital credits (4,002) (3,928) Cash provided by (used for) financing activities 7,435 j l,610) Investing activities-Electric plant additions, net . (15,034) (12,552) Changes due to termination of LACBWR operations: Electric plant 20,408 - Deferred charges . (18,427) - Other (1,981) - Increase in other investments (4,616) (6,455) Investment in fder optics venture (2,342) (5,079) Other, net (1,543) _ 4,899 Cash used for investing activities (23,535) _119,187) Cash Cow during the year _ $ 25,591 1(4,160) The accornpanying notes are an integral part of these consolidated statements l 19
Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies. Organizatiom DairylanJ Power Cooperative (the Cmperanve)is an electric generation and transmission emperatwe associanon organi:cd under the laws of Wisconsin. ne Coonrative provides wholesale electcic setsice to Class A members engaged in the retail sale of electricity to member consurners located in Wisconsin, Minnesota, Iowa, Ilknois and Michigan and provides electric and other services to Class C D and E members. He accounung records of the Coogrative are maintained in accordance with the uniform system of accounts prescnbed by the Federal Energy Regulatory Commission as aJopted by the Rural Electnfication Administration (REA), the Cmpe ative's pnncipal regulatory agency. He consohdated financial statements include the accounts of the Cmperative and its wholly owned suosidiary, Curtis Telecommunications, Inc. (CTI). All intercompmy accounts and transacnons betw een the Cmperative anJ CT! have twen ehminated. Depreciatiom Depeciation is provided based on the straight-hne methoJ at rates w hich are designed to amorti:e the origmal cost of properties over their esumated useful lives and include a provision for the cost of removal and decommissioning of the properties. He provision for Jerreciation averaged 3.8% of depreciable plant balances for 19M7 and 1956. Amortization of Nuclear Fuel: Pnor to Arn! 30,1937, the cost of nudear fuel was charged to fuel expense based on heat produced for the generation of electricity. Le cost of dispwal of sgnt fuel was recorJed over the hves of individual aswmbhe,. See Note 10 for further discussion regarding the cess:. tion of operations of the Cmperanve's nuclear g-nerating facihty. Income Tases: ne Cmperative is exempt from federal and state income taxes anJ, accordmgly, no provision for such taxes is redeceJ in the consolidated financial statements. Allowance for Funds Used During Constructiom Allowance (or funds used Juring construction repesents the cost of borrowed funds used for construction purpmes and is capitali:cJ as a component of electric plant. He amount of such allowance is determined by applying a rate to certain electric plant additions under construcnon and, for perioJ* prior to May 1,1957, to the balance of nuclear fuel in stock and in fabncation. He rates uscJ saried from 7M to 8.1T and from 6.6% n 11.1% in 1937 anJ 19A respectwely, Jependmg on the source of funds. Property Additions: ne cmt of renewah and benerments of umts of noncty (as distinguished from minor items of progrey)is chargcJ to electric plant accounts. He cost of units of property renred sold or otherwne dispowd of. plus removal cmts, less salvage, is chargcJ to accumulated Jerreciation. No profit or loss is recogni:ed in connection with ordmary retirements of Property units. Maintenance and repair cmts, anJ replacement anJ renew al of mmor items of property are chargeJ to operanns expenses. In s estmen ts: Investments of the Cmperanve consist pnmarily of commercial paper and government obbgations. All investments sre recorJed at the lower of aggregate cost or quoteJ market value. He carrpng value of the investments is adjustcJ for amorn:ance of premiums and Jncounts. (2) long term Obligations. Long-term obhganons at Decemlwr 31 consist of the followmg (in thousands); 1987 1986 REA Obliganons,2% $ 72,537 $ 77,302 REA Obhganons, 5% 33,400 33,973 FFB Obheanons, 7.5 t, to 10.9 i 225,511 208/M NRUCFC Obhgations,8 Y, 6,477 6,810 City of Alma. Wisconsin. Pollunon Control ibnds: EneJ rate (6. 38 3 i ) . 11,620 11,910 AJ;ustable rate (5.31% at December 31.1987) 13,900 13,900 City of Li Crosse, Wisconsin Industrial Des elopment Revenue Ibnds, aJ;ustable rate (5 31% at December 31,1987). 4,I60 4,160 Capitah:ed lea,e obbeanons, pnncipally at imphcit mterest rates of 7 f., Jue m varung amounts to 1995 4,714 5.180 372,319 361 903 Less - Current matunnes (8,614) (8.185) Total long-term obbgations $ 36 3,705 $ 35 3,718
Long-term obhganons to the REA are payable in equal quarterly principal anJ interest installments through 2015. Pnncipal repayments on the long-term obhganon to the FeJeral Financmg Bank (FFB) cxtend through 2021. Pnncipal and interest payments on the National Rural Unhties Cwrerative Finance Corporanon (NRUCFC) obhgations are payable quarterly through IW9. He fixed rate Pollution Control Ibnds are payable in increasing annual amounts through 200& ne aJjustable rate Pollution Control and Industrial Development Revenue Bonds mature in 2015 unless previously called for redempnon. Bank letters of credit aggregatmg $19,0N.000 and terminating in February 1991 have been issued on behalf of the Cooperative to the trustee to provide funds for payment of rrincipal of any such bonJs to be redeemed or repurchased prior to that date. Accord ngly, the ennte pnncipal amount of these N.nds is clrsified as long-term debt. Substantially all of the Coonranve's assets are pledged as collateral for these obbeations. He Cooperative is required to and has maintameJ certain financial ratios tvlated to earnings and hquiJity in accordance with the covenants ofits loan agreements. hiatunties of the Cwrerative's long-term obhgations are as follows (in thousandst Year Amount 1959 $ 8,960 1940 9,329 1991 9,630 1992 10,N 3 nereafter 325,783 Tota! $ 363,705 (3) Lines of Credit. To rrovide interim financmg. the Cooperante has arranged knes of credit aggreganne approumately $27.3 milhon, principally through the NRUCFC. Borrowings (which were not significant m either 1957 or 1956) are at the pnme interest rat- and prin e mmus 3'4 A Compensarmg balance requirements or fees relating to the hnes of credit are not significant. The Cooperanve also allows member cooperatives to prepay their power bills and pays interest on these prepayments based on current short term borrowing rates. Intermt expense on member cooperative adnnces has been netteJ against interest income earned by the Cmperative on prepayments in excess of its uorking capital requirements and reflected as nonoperating margins in the accompansing consohdated statements of revenues and expenses. (4) Retirement of Capital Credits. The Cmperative's Nard of Directors has adopted a policy of rennns capital credits allocated to members on a "first-in, first-out" basis so that at all nmes the Cooperante will not retam as patronage capital any capital contnbuted or Jerosited more than 20 scars prior to the current iear. Accord ngly, the 1967 and 10 66 capital credits were retireJ in 19M7 and 1956, respectisely. Implementanon of this pohey is subject to annual renew and aprroval by the Board of Directors and the REA, and no cash retirements are to be made w hich woulJ impair the (mancial condmon of the Coonrante or violate any terms ofits agreements. (5) Shared Transminion Agreements-ne Coogrative has entered into shared transmission agreements with the southern hiinnesota hiunicipal Power Agency (SMhtPA) anJ the Western Twonsin hiunteiral Power Group (WWhiPG) which provide S'thtPA and WWhtPG use of the Cooperative-owneJ transmission system to Jehver power and energy requirements to ShihtPA and WWhtPG members in the Cmperative's electrie service area for a penod of 50 years. Payments received from SMMPA and WWMPG for use of the Coonrative's transmission system are retlected as Jeferred crcJits in the consohdated balance sheets and are being amorti:ed to oprations over the term of the related agreements, ne Cooperative may be entitled to further payments depenJmg on the insestment in, and joint use of, the system. (6) Commitments and Contingencies-The Cooperative has been nameJ a defendant in seseral law suits and claims, primanly related to construction and operation ofits electric plant. Although the outcome of these matters cannot be determined at the present nme, management and legal counsel behese these actions can be successfully JefenJed or resolved without a material aJserse effect on the fmancial position of the Cooperanve. l (7) Construction. l ne Cooperatne's 1938 esnmated construcnon program is $30.6 milhon. Fmancing of construction is exgeted to be prouded by I borrowmas from the FFB, proceeds from the issuance of Pollution Control Bonds, short. term hnes of credit with the NRUCFC, ads ances l from membe cooperat ves anJ funJ< .enerated mternally. 1 l (8) Pension Plan. Penuon benefits for substantially all employees are prouded through particinnon in the Nanonal Rural Electnc Cooperanve Associanon (NRLCA) Retirement and Secunty Program. He cost for this defined benefit pension program was approximately $759,0N in 1987 anJ $2,030,000 in 1986. Conenbunons are JetermineJ in accordance with the prousions of the Program and are based on salaries, l as defined, of each participant. During 1987. NRECA Jeclared a moratonum on plan contnbutions etfective July 1,1987 through I December 31,19m As of Decemhr 31,19,5, the Jate of the last available actuanal valuanon, net assets of the plan available for benefits i esceeded the actuarial present value of accumulateJ plan benefits. EITective January 1,19% the Cooperatne adopteJ an amendment to the pension plan whish reJuced the normal retirement age from 64 to 62. His amendment resulteJ in the creanon of an unfunJed pnor tervice cost of $2,452,000, w hich is included m Jeferred credits in the consohdated balance sheer with an intangible asset of the same amount recordcJ in Jeferred charges to redect the expected future ; economic benefits associated with the amendment. He intangiNe asset is being amorti:cJ to expense on a straight-kns basis over 30 gears. l AJJitiona!!v, interest at n is also bems recogni:ed on the unfunded enor scruce costs.
(9) Fiber Optks Venture.
%e Cmperative's who!!y owned subsidiary, CTl owns a 23.8% partnership interest in Norlight, a venture with four othe; partners, to own and ograte a fiber optics network in the Uppr Miduest.
Prior to 1987, losws incurred by Lil (princirally due to recognition of its proportionate share of Norlight losses) and payments received by the Cooperative from NorLight for use of the Cooperatise's right of way were deferred based on a ikiard of Directors' remlution to allow recovery of such deferrals through future senice rates. Such deferred amounts were to be amorti:ni to operations (with I appropriate recognition in service rates charged to members) over a perioJ commencing the 6rst year in w hich CTI became profitable, with 1 all deferred amounts amorti:ed by 1997. Amounts deferred in 1986 included an approximate $1 million low of NorLight and a $1.3 ! million pa) ment rWeived for right-of way which are included in investment in 6ber optics venture and deferred crnhts, resnttively, in the consolalated balance sheets. As a result of a resolution adorted by its members Junns 1987 which effectively prohibits future wrvice rate increases as a result of kwses of CTI, the Cooperanvc ceased the p>licy of deferring LTI hisses and charged the previous deferred losses and right of way payments to operating exgynses. In addition, in recognition of developments in the fiber optics industry, the carrying value of CTPs investment in Norlight was reduced to rc6ect C11's proportionate interest in the estinured current value of the Norlight venture. ne effect of the above actions was to reduce 1987 margins by $5.6 million. fiased unin information currently available, the Cooperative expcts to continue its involvement in the venture and to be able to recover the remaining carrying value of its investment either through operations of the venture or divesnture ofits ownership interest. In November 1987, CTl assigned its interest in NorLight to a bank as collateral securing NorLight's 6nancing. (10) Nuc! car Reactor. He La Cnwse Ibbng Water Nuclear Reactor (LACliWR) was voluntarily removed from sen-ice by the Cmperative effective April 30,1987. The intent was to terminate operation of the reactor and a "possession only" license has been obtained from the Nuclear Regulatory Commnsion during August 1987. He facility is lying placed in a "safe storage" status and will remain so until 2010 to 2014 at u hich time decommissioning will be completed. All LACBWR-related property (net of depreciation), construction work in-pogress, inventories and nuclear fuel (net of amorti:ation and salvage vahr) totalmg $18 4 milhon has been transferred to a deferred charge and is being amorti:ed to operating expense over a ten-year period with appropriate recogmtion in rates charged to members for electric service. The provision for depreciation includes $ 1.8 million to provide for the estimated costs of decommissioning the nuclear generating i facihty; however, the manner of decommissioning the facihty has t.ot been determined. %c Cooperatis e continues to review its decommissioning cost estimates and expects that any inc reases in such costs will be recovered through future rates. %c Cmsvrative has akpted a n> hey of fundmg decommissioning costs currently and the related investments are included in investments in the consohJtted balance sheets. while the decommissioning reserve of $9.4 milhon is includeJ in accumulat%% tion. Under the Nuclear Taste Pohey Act of 1982 ( Act h the UniteJ States Department of Energy (IME)is respmsible for the storage and disposal of sgnt mxicar fuel renxncJ from nuchar reactors. Under the provisions of the Act and a contract with DOE, the Cooperative maJe quarterly payments for nuclear fuel burned during the year. Auditord Report To the Members and the IkiarJ of Directors. Dairsland Power Cmperative: We hase examincJ the consohdated balance sheets of DAIRYLAND POWER COOPERATWE (a Wisconsin cooperatne } AND SUBSIDIARY as of Detember 31.1937 and 1936 and the related consohdated statements of resenues. exgnses and patronage carital and cash flow s for the scars then ended Our exammations were made in accorJance with generally accepted auJiting standarJs and, accordingiv. includeJ such tests of the accounnne recorJs and such other auJmne procedures as we considereJ necessary m the circumstances. In our opinion, the consohdated (mancial statements referred to abme present fairly the financial nwinon of Dairsland Power Coogrrante and SubsiJiary as of December 31,1937 and 19% and the results of their operanons and their cash flows for the years then ended, in conformity with generally accepted accounting principles applied on a consatent ba<.is. ARTliUR ANDERSEN & CO. M mneanihs. Minnesota, March 3,19m f"U cu
Statistical Comparative Summary UNAUDITED Decembre 31, 1987 1986 Revenue Class A hiember Power Sales ... ... . .. $ 120,116,269 $126,755,903 Class C, D. & E Member Power Sales . . . .. 31,647,798 23,569.353 Other . .. . . . . . . . 788,878 8 % ,139 Total Revenue . . .. . .. $152,552,945 $156,221,395 Net Generating Plant Capability - kW . .. . 1,047,930 1,039.920 Kilowatt 41our Output Net l (000 Omitted) l Steam Generation , . .. . . 3,639,331 3,499.649 Nuclear Generation . . 129,060 157,179 liydro Generation . . . .. . 33,214 74,184 Diesel Generation . . . . . .. .. - (113) Purchased Power . .. . . . . 402,627 246,973 Total . , . . . . . . . . 4,204,232 3.977.872 - Kilowatt 41our Sales (000 Omitted) To Class A hiembers . . . 2.697,452 2,709,774 To Class C, D, & E hiembers . . .. 1,315,971 1.067,% 5 Total . .. ... . 4,013,423 3,777,739 Average kWh Cost To Member Systems Gross (Before htargins) . . . .. $0.04453 $0.046S0 Net (After Margins) . .. . . $0.04347 $0.04440 Number of Member Consumers ( Average During Year) . .. . .. . 176,323 174,352 Full Time Employees (Average Du-ing Year) . .. 668 681 Utility Plant At Cost Electric Plant In Service $491,803,345 $515,486,599 l Construction in Progress . . 7,634,089 4.786.422 Total Electric Plant . $499,437,434 $520,273,021 Accumulated Depreciation and Amorti:ation (202,653,378) (197,911,162) Depreciated Cost of Plant $296,784,056 $322.361,859 l l Investment At Cost l Per Consumer . $ 1,683 $ 1.849 Per Member System . .. . . . $ 10,233,933 $ 11.115.926 Total Assets $486,181,734 $471.953,719 Transmission Line Miles of 34.5 kV . , . . .. . . 247.73 288.60 Miles of 69 kV .. .. . . 2,447.81 2,395.17 Miles of 161 kV . .. 583.84 583.49 Total Miles - ... 3,279.38 3.267.26 Distribution Substations . . .. . . 272 267 Member System Substations Denund Maximum kW . . . . .. . 522,940 562.652 Member System Annualload Factor % ., ,. 58.0% 55.0% kWh Monthly Consumer Use . . .. .. . . 1,275 1,295 Cod Burned (Tons) , . . . . . . . . 2,053,595 1,997,565 Coal Cost Per Ton Burned Barged Coal . .. . , . . . $34.30 $34.% Unit Train . . . . . . . ... . $25.19 $34.49 b
Comparative Sales to Member Cooperatives For The Years Ending December 31,1987 and 1986 UNAUDITED i Average Class A Number of Member Consumers kWh Billed Revenue Cooperatives 1987 1986 1987 __ 1986 1987 1986 WISCONSIN Barron 11,678 11,523 199,166,290 195,429,113 $ 7,874,856 $ 8,426,569 Bayfield 5,831 5,766 46,243,402 47,740,066 2,137,373 2,288,664 Buffalo 3,460 3,449 62,302,839 62,527,023 2,780,632 2,915,971 Chippewa Valley 4,939 4,900 70,597,033 70,314,252 3,148,126 3,348,404 I Clark 6,644 6,611 118,065,842 117,827,802 5,412,679 5,652,670 Crawford 2,900 2,874 40,285,964 40,190,899 1,819,164 1,912,823 Dunn . 5,904 5,849 101,523,170 101,338,713 4,692,110 4,949,004 Eau Claire . 7,224 7,109 107,330,230 110,198,904 5,020,274 5,307,141 Geant 5,068 5,040 112,476,547 113,530,419 5,085,797 5,366,912 i Jackson . 4,636 4,599 68,717,867 65,402,831 2,776,121 2,879,665 l Jump River . 5,921 5,849 57,818,756 57,751,282 2,552,797 2,668,455 l Lafayette 2,216 2,227 48,932,690 49,282,339 2,346,899 2,469,818 l Oakdale 10,321 10,145 116,811,074 114,521,904 5,153,700 5,348,143 Pierce-Pepin . 4,849 4,776 80,057,791 79,679,835 3,462,030 3,642,323 l Polk-Burnett 13,195 12,985 119,597,922 118,820,633 5,240,030 5,431,626 ) Price 6,346 6,276 44,543,523 44,138,124 1,951,370 2,026,528 Richland 2,918 2,898 41,192,310 40,976,895 1,898,872 1,992,613 St. Crc,ix 4,792 4,675 95,896,362 95,057,041 4,404,931 4,592,779 Taylor 3,026 2,973 48,307,577 47,947,105 2,128,427 2,226,494 Trempealeau 7,103 7,003 112,324,582 112,928,486 5,035,501 S,341,405 Vernon 7,721 7.643 120,329,259 120,707,779 5,532,333 5,835,206 j Total l Wisconsin 126,692 125,170 1,812,521,030 1,806,311,445 $ 80,454,022 $ 84,623,303 ILLINOIS Jo-Carroll 4,192 4,029 59,857,293 58,593,562 2,787,479 2,877,506 l MINNESOTA Freeborn-Mower . 5,143 5,410 112,633,623 116,389,526 $ 4,857,672 $ 5,215,644 People's 11,217 11,032 175,570,781 176,059,512 7,667,770 8,106,011 Tri-County . _ _10,485 10,425 222,999,453 224,334,081 9,839,194 10,400,284 Toeal Minnesota 27,147 26,867 511,203,857 516,783,119 $ 22,364,636 $ 23,721,939 IOWA Allamakee. Clayton 7,684 7,652 112,942,723 116,128,304 $ 5,240,473 $ 5,587,794 Cedar Valley 2,831 2,841 54,723,423 57,9S0,314 2,393,038 2,608,166 Hawkeye 5,706 5,722 108,357,251 113,443,148 5,191,356 5,507,679 Winnebago , 2,071 2,071 37,846,845 40,531,434 1,685,265 1,829,517 Tc. cal lowa 18,292 18,2S6 313,870,242 328,086,200 $ 14,510,132 $ 15,533,156 TOTALS 176,323 174,352 2,697,452,422 2,709,774,326 $ 120,116,269 $126,755,904 b
n Y a hi The Members of the W & w" Dairyland Power System j,
,,._o CLASS A MEMBERS WISCONSIN **-* **
- 1. Barrm Electric Cwperatise / Ihreon 1
- 2. Basfield Electric Geperarise,Inc. / tron Riser N
- 3. Buffalo Electric Quperarise / Alma
- 4. Chippewa Valley Electrk Cooperatise / Cornell I
- 5. Clark Elutrk C operarise / Greenum! 11
- 6. Crawford Llurric Gvperatise / Ga3s Ahlh '" *
- 7. Dunn County Elurric Cooperaris e / Menomome jg M. Eau Claire Elurrk Cooperar' . / FallCreek
- 9. Grant Electrk Geperarise r .ancaster . '
. u.s
- 10. Jackum Elutric Coopesarise / Nack Rncr Falls [ '
15 - I 1. Lump Rher Electric Cooperathe,Inc. / Lad >snurh a-a
- 12. afagette Electric Coopsrathe / Darlmrton , *ws- jj j a.a a., . ,
- 11. Oakdale Electric Guperative / Oakdale . c.,,vm i *
- 14. Pierce-Pepin Electric C4eperathe / Ellsworth j ***** g,*M,"1
- 15. Polk Ilu.nett Electric Geperarise / Cenruna j m
- 16. Price Electric Cwperarise. Inc. / Phille
- 17. Richland Electric Cooperatise / Rxhland Center f >
IM. St. Crois County Electric Cteperathe / lblJwm . 19 V . =rc c.c
- 19. Tat tor County Electric Caircrative / MeJford e 18 4 "" .
t
- 20. Trernrealeau Electric Cwperarne / Arcadia
- 21. Vernon Elutric Cooperarise / Westby
. .c, l ow=
H IOWA
,u,,,
c.,,,,,,, 3 22, Allarnakee Clayton Electric Cooperathe,Inc. / Pw. tulle
.m m. 5 -
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2 3. Cedar Valley Electric Geperath e / St. An gar 7 * ' " " ' "*** '
- 24. llankeye Tri-County Electric Cooperathe / Cresco 2 5. Winnebago Rural Electric Cooperath e Aswesation / Thompson
. au s.o.n.
f* '.,, c ,,,,, g i C'"' ) MINNESOTA 14 / I 26, Freehorn Mower Elutric Cooperative / AIFert les . , * * * -f . , , *- _\ w
- 27. People's Cm arise Power A .ociation / Rochester 2M. Trifounty lectric Coop rathe / Rushford +
- C,d u q 1'4 Qi l @' f] p' -
ILLINOIS m 1 ~~a *"*
- 29. Jo Carroll Electric Qvperathe. Inc. / Elnaheth CLASS B MEMBERS g
E 3 c'~ ~; f,-" 20 Adams-Columhia Electric Geperathe / Fnendship, Wmmm o, 27 c Central Wisconsin Electric Qvperathe / lola, Wuconsm i Omnto Electric Cooperaehe / '** *** * * "
- Oconto ' alls. Wnconun (p 7- t ca.c as .
Rak C4maty Electric Coogwrathe Amwiation / j - Janemlic. \t,,immun _ j eb uc , ,,,,,,, a ** , Waushara Llutrie C4vperarbe / "**"
- wout- wmom CLASS C MEMBERS
. ar"a 26 - . ,,,, 2 8 , , _ , .
21 ""'" - Om rathe Power / . 1,onea n E Praine Mmnewa r Minnkota Pow er Geperative,Inc. / =a*** 25 23 ---. Grand Forks, Nonh Dakota ,,,cJ,,o,, e., = = " 24 c.',,~~ i17 c.wo . United Power Annociation e *,.=.5c a* 4- f j . a Elk Rncr. Khnrwa t n, w n 7 f;g = = - - == g wun , W CLASS D MEMBERS '
-o e s c.--* p City of Arcadia, Wminun ,,,,,, c,,,,,,,
Village of Arole WLwonun City of Austin, Ahnnewca City of Barron. Wmem 22
+ [*#. -
9 City of Blooming Prairie, khnnewta Village of Canhton. humun MM '=='a cw==
&==
City of Cumherland. Wmmim I in civia City of Elroy, humm un ..
- l2 m, City of Fennirnore, Wemm ^ c.4=t a'cw l
City of Forest City, lo*a i City of la Farge Wmen m , J City of lake Mill., low a City of lane.hiro, Mmnewca go Village of Merrillan, Wemm Xe City of New E4.hm Wmum ,T CLASS E MEMBERS City of Omage, low a Interstate Power Company / Dubuque,lowa g.u2'"' City of Pre ron, l.ma Minnesota Power / Duluth, Mmneuxa City of Rkhland Center, hconun Northern Searco Powet Company Minnesota / Mmneapola. Mmnewa c City of Rher Fall., hsam Northern Scaren Power Company.Whconsin / Eau Claire, W,aconun City of Rochester, hhnne.ota nn n Northwestern Public Serv 6ce Com.eny / Huron, South Dakcwa Illl 4. Southern Minnewta Municipal Power Agency / Ra bester, Mmncvra North =corern Wisconsin Electric Coenpany / Fredenc, Waconun Village c4 Viola, Wmm.n Winconeln Power & IJght / Madison, Waeurum
Consolidated Balance Sheet of Dairyland Power and Member Distribution Cooperatives UNAUDITED Assets Distnbution Current & Cooperatives Total Accum, Prov, Net Invest. In Other Accrued Total Class "A" Unhty For Depr. Utihty Assoc. Org. Property Assets & Assets & hiembers Plant & Amort. Plant Pat, Capital 66 Insest. Def. Debits Other Deb ts WISCONSIN Ibtron . $ 19,655,957 5,354,692 14,301,265 4,297,884 857,539 1,516,682 20,973,370 l Ba3 field 14,810,408 4,443,930 10,361,478 986,258 415.293 1,620,418 13,383,477 ! Buffalo 6,048,352 1,846,265 4,202.087 1,784,102 278,817 970,045 7,235,051 Chippewi Valley . 8,760,359 1,850.613 6,909,746 1,927,907 409,709 1,067,845 10,315,207 Clark 10,850,942 3,291,759 7,559,183 3.223,876 726,041 2.834,912 14,344,012 Crawford 3,806,063 1.244,116 2,561,947 1,138,624 206,698 710,788 4,618,057 Dunn 9,743,120 3.208,171 6.534,949 2,685,939 693,901 2,586,043 12,500,882 Eau Claire 13,981,007 2,875,261 11,105,746 2,735,907 470.667 1,350,283 15,662,803 Grant 8,672,452 2,959,029 5,713,423 3,159,774 444,482 2,684,372 12,002,051 Jtckson , 9,338,814 2,761,722 6,577,C92 1,592,148 374,647 1,134,721 9,678.608 Jump River 12,495,468 2,587,854 9,907,614 1.558,133 492,625 1,627,505 13,585,877 Lafayette 5,073,8W 1,N2,556 3,471,343 1,531,438 244,798 776,166 6,023,745 Oakdale 16,454,218 4,715,143 11,739,075 3,258,391 764,795 3.073,066 18,835,327 Pierce Pepin . 9.658,957 2,530,533 7,128,424 2,513.210 493,077 1,247,734 !!,382,445 Polkeurnett 18,947,934 5,169,788 13,778,146 2,973,056 692,260 2,530,951 19,974,413 Price 12,754,982 3,644,499 9.110,483 804.877 381,673 936,572 I I,2 33.M5 Richland 5,867,727 1.450,733 4,416,W4 1,208,824 390,669 522,110 6.538.597 St. Croix 9,556A89 2,879,709 6,676,9M 2,3S8,543 668,103 1,354,945 11,088,571 Taylor 5.885,748 1,534,526 4,351,222 1,254,570 248,542 944,660 6,793,994 Tremp alcau 13,175.287 3,74' N2 9,434,245 3,051,092 529,909 1,903.015 14,918,261 Vernon , 14,642,946 4.582,793 10,060,153 3,618,040 651,330 2,614,430 16,943,953
$230,181,329 64,279,734 165,901,595 47.692,673 10,435,775 34,007,263 258,037,306 ILLINOIS Jo-Carroll . $ 11,322,546 2,406,% 7 8,915,579 1,543,195 336,336 1,045,784 11,840,894 hlINNESOTA Freeborn 4 tower . $ 14.019,158 4,250,905 9,738,253 3,351,812 1,351,141 1,964,419 16,405.625 People's 22,002,754 7,086,781 14,916,003 4,431,797 864,730 3,257,742 23,470,272 l
Tri-County 22,126,565 5,205,487 16,921.078 5.998,484 878.503 2,465,251 26,263,316 l
$ 58.148,507 16,573,173 41,575,334 13,782,C93 3,094,374 7,687,412 M,139,213 IOWA Allamakee-Claston . $ 14,866.949 4,443,224 10,423,725 3,269,865 853,125 2,226,920 16,773,635 Cedar Valley 7,421 S82 2,087,S57 5.334,025 1,776,872 403,949 1,309.910 8,824,756 Haw keye 10,845,603 3,630,377 7,215,226 3,097,265 115,286 1,914.925 12,342,702 Winnebago 3,455,972 1,656F6_ 1,799,326 1.558,298 232,058 828,154 4,417,836
$ 36,W,406 11,818,104 24,772,302 9,702,3N 1.M4,418 6.279,909 42,358,929 Total Disenbution $ 336,242,788 95,077,973 241,164,810 72,720,261 15,470,903 49,020,368 378,376,342 Dairyland Power $499,4 37,4 34 202.653,378 296,784,056 - $ 1,909.757 137,487.971 4 %,181,784 Total Distnbution 66 Dairyland , $835,680,222 297,731,356 537,948,% 6 72,720,261 67,330,660 156,508,339 664,558,126 Dair31and Patronage Cantal, - - - (70,350,364) - - (70,350,364)
Connohdated , $835,680,222 297,731,356 537,948, 2.369,897 67,380,6M IM,508,3 39 794,207,762 E
December 31,1987 Li:bilities and Other Credits Def. Pat. Cam, & Non- Other Total lamg Current & Credits Onrating Operating Margins & Margins & Term Accrued & Misc. Total Mernkrships Marens Marens Equities Equities Debt Liahbries Oper. Resv. Liabihties
- 7.416,768 159,036 316,466 7,892,270 11,660,428 1.311,330 109,342 20,973,370 28,065 2.237,409 (54.280) 14.063 2,225,257 9,9N,988 1,059,071 198,161 13,383,477 9,463 4.069,776 47,054 124,877 4,271,170 2,568,430 391,526 3,925 7,235,051 22,4(O 4,773,602 41,135 14,494 4,851,691 4,944,217 469,450 49,849 10,315,207 26,685 11,406,862 148,077 33,752 11,615.376 1,738,628 936,139 53,869 14.344,012 12N5 2,442,624 18,648 8.242 2.482,319 1,869,580 266,143 15 4,618.057 30,035 8.412,350 89,6 % 280,317 8,812,338 2,881,894 595,955 210,695 12,500,882 92.M 5 6,234,239 46,922 148,251 6,521,777 3,121.023 Wl,709 28,294 15,662,803 26,270 7,646,228 138,332 152,709 7,963,539 3,347,684 664,615 26,213 12,002,051 21,784 5,236,020 - 2,4N 5,310,213 3,811,501 500,953 55,941 9,678,edi 59,760 3,635,787 00,142 - 3,7s5,ts9 9,076,566 545,097 178,525 13,582,877 16,159 3,5
- 081 67,312 - 3,969,582 1,628,497 350,719 74,947 6,023,745 58,949 8,369.214 - 12,880 8,941,043 3,959,191 %%,9 32 28,161 18,835.327 36.698 5,630,931 M,032 23,311 5,726,972 4.722,324 829,8N4 103,261 11,382,445
- 8,558,722 101,352 - 8,670,074 10.224,835 920,157 159,347 19,974,413 29.679 2,156, M4 -
4.721 2,190,7M 7,895,736 868,831 278,224 11,233,605 13,770 3.027,914 33,393 - 3,075,077 2,849,646 360,821 53,053 6,538,597 22,659 4,892,276 53,472 117,734 5,066,141 5.061,227 913,964 27,239 11,088,571 9,072 2,895,151 48,572 43,902 2,996,697 3,448,226 345,483 8,5ss 6,798,N4 12,626 7.149.092 168,M 3 108,471 7,438,552 6,579,040 862,744 37,925 14,918,261 36,640 8.579.274 130,493 165,625 8,912,032 7,117,266 871,785 42,870 16,943,953 565.974 119.2 %,6s4 1.M 3,691 1,572,224 122,738,573 118,40n,977 15,163,312 1,728,444 258,037,kV 31,460 4,413.5J5 30,670 109,737 4,555,372 5,699,140 840,768 715,614 11,340,894 9,714 8,722,561 273,074 321.167 9,326,516 6,812,414 210.408 56,287 16,405,625 48,755 10,500,116 146,428 302,879 10.998,178 10,769,903 1,566,W 3 135.198 23,470,272 17,9 % 17,642.681 506,801 174.710 18,342,130 6.491,456 1.390,474 39,256 26,263,316 76,405 36,565,360 926,303 798,756 18.6f6,824 24.073,773 3,167,875 230,741 66,139,213 18,205 7,6 b 09 3 364,702 - 8.039,000 7,750,868 909.790 73,977 16,773,635 12,730 3,334,874 37,454 745,218 4,130,276 4.287,601 367,415 39,464 8,824,756 31.420 9,424,553 249N8 372,896 10.078,677 780.506 1,444,50S 39,009 12,342,702 11,730 4,296,797 - - 4,k%527 39,194 70,115 - 4.417,836 94,0s5 24.692.317 651,964 1,118.114 26.556,4 0 12,858.171 2.791.828 152,450 42,358,929 767,924 185,207.866 2,972,628 3,598,831 192,547,249 161,038.061 21,% 3,783 2,827,249 378,376,342 10,189 70.350,164 - - 70,360,553 M 3,705.055 31,922,265 20,193,911 4 % 181,784 778,113 255,558,230 2,972.628 3,598,831 262,907N2 524,743,116 53,536,048 23.021,160 864.558,126
- (70,350,364) - - (70,350,164) - - - (70,350,364) 778.113 185.207.866 2,972.628 3.598,831 192,557,438 524,743,116 5 3.Nso.048 23.021,160 794.207.762
Consolidated Statement of Revenues & Expenses of Dairyland Power and Member Distribution Cooperatives - 1987 UNAUDITED Disenbuuon Ograting Cost of Ibtnburion Exgnse Consumer Ccogratis es Rev. 6L Pat. Purthased Ogrations Maintenance Accounts Sales Clam "A" Member Capital Pow er Expenw Expnse Expense Exp nse , WISCONSIN Nrron $11,191,478 7,874,855 160,113 422 K9 4t%375 - NyfielJ , , 4,178,060 2,137,374 41,617 264,441 207,023 - Buffalo 4,020.250 2,780.631 101,310 131,784 129,616 - Chirgwa Valley . , 5,024,966 3,148,125 64,229 1M,718 142,797 - Clarh 7.6 % 914 5,415,908 156.352 217,116 208.950 3,657 Craw ford 2,765,080 1,819,163 56,066 179,022 127,559 1,413 Dunn 6,710,449 4,692,110 117,808 209,348 107,462 3,232 Eau Claire 7,369,393 5,020,273 171,031 323.019 265,769 8,844 Grant 7,251,515 5,085,797 227,360 272,726 152,580 3,927 Jachmn , 4,745,917 2,776.121 91,736 225,712 222,416 - Jump River 4,% 3,335 2,557,239 213.169 326,871 187,4M 50,475 Lafayette 3,330,259 2,346,900 54,959 208,837 68.338 - Oahdale 8.819,179 5,153,701 388,128 336,095 420,235 - Pierce-Pepin . 5,283,625 3,462,032 104,t%7 295,112 155,415 63,599 Polh Burnett 8,936,132 5,240,307 235,271 50?,889 357,383 14.251 Price 3,643 041 1,951,370 43,I t0 239,447 138,842 9,307 Rkhland , 2,911,145 1,900,476 88,449 143,423 48,284 - st. Croix 6,066,353 4,404.931 110 276 206,128 156,267 - Tailor , 3,166,146 2,128,427 70,140 It%484 66,261 16,182 Trempealeau 7,528,193 5,035,502 224.044 306,742 367,763 - Vernon . 7,990,705 _ 5.535,962_ 237,918 318,69M 230,083 -
$ 12 3.552.140 80,467,204 2,962.203 5,472,621 4,266,836 180,087 ILLINOIS JoCarroll . $ 4,719,615 2,789,846 99,6 @ 212,187 181,342 -
MINNESOTA f Frnborn-Mower . $ 7,215.f00 4,M4,197 202,481 291,842 113.380 59,900 l People's 11,507,119 7,t68,0 35 284,101 687,465 334,902 6,951 ! TriCounty 13,84).472 9,842,462 393.006 M2,385 298,236 68,695
$ 32,566,191 22,395,194 879,648 1,661,692 746,518 135,546 IOWA AllamakeeClayton $ 7,874,419 5,240,473 135,t%0 384,237 258,976 -
l Cchr Vallev 3,674.h8 2,393.038 30.550 119,276 93,007' 83,752 l I taw 6c)e 6,735.338 5,191,593 2t% 314 292,289 156,tc3 943 l Winnebar 2,5M,711 1,701.498 115,777 123,185 59,586 9,019
$ 20,852,856 14,526,t02 707,731 918,987 598,232 93,714 Total [benbution . $ 181,690N 3 12D,178,847 4.649,272 8,265,4 % 5,792,979 409,347 DatrylanJ Power $ 152.552,945 6.4 H7.324 74 763,372 8.894,158 - 481,996 Total [benbutair,66 Dair31a..J $ 334,24 3,748 126,666,171 79,412,644 17,159,644 5,792,979 891,343 Intercongrative Ehmination , , ( $120,116,269) ($120,116.269) -- - -
ConwlidarcJ $214,127.479 6.549,902 79.412.644 17,159,644 5,792,979 891.343
December 31,1987 Cen.& Admin. & Depr & Interest Total Utihty Non. Trans. Net Margin General A.wrt. Tax on long Other Operating Ograting Ogratmg Capital & l'atronage Expen* Experwe Expenw Term I%t DeJuctions E xpense Margin Marg n Credits Capital 723,464 512,603 179.3x4 643,391 2,959 10,925,153 266,325 71,797 156,732 524,854 344,197 361,040 106,783 385,193 64,445 3,912,113 265,947 (104,960) 50,682 211,664 247,769 155,761 66,996 139,251 115 3,753,253 266,997 55,289 65,9 % 388.212 303.833 220,694 92,441 302,952 3,941 4,467,730 557,236 55,891 74,650 687,777 372,936 310.665 112,829 112,431 1,384 6,917,278 689,636 154,090 128,343 972,074 177,332 97,131 56b68 100,057 1,048 2,615,509 149,571 24,110 43,137 216,818 404,431 259,815 99,964 177,482 1,211 6.072,863 637,5S6 147,372 111,261 896,219 422,847 444,81S !!6,293 431,403 5,517 7,249,816 119,577 62,173 119,043 300,793 349.959 247,224 115,934 1 %,745 66S 6,652,920 598,595 149,400 120,597 868,592 411.165 250.619 110,456 204.2 M 6.761 4.329,274 416,643 25,632 65,829 508.104 473,329 300e M 134,781 513.019 10,139 4,767,358 195,977 73,280 60,533 329,790 250,462 136,256 67,217 108,832 - 3,242,301 137,958 123.703 - 261,661 700,578 475,785 145,552 479,202 982 8.200,258 613,921 159,272 122,207 900,400 352,216 255,0Y4 101,545 260,896 1,129 5,051,105 232,520 36,033 82,093 350,646 541,316 509,405 194,166 565 M9 7,025 8.165,722 770,410 135,155 124,254 1,029,849 l 321,454 337,454 83,494 338.086 49341 3.517,463 125.578 23,151 46,272 195,001 i 237,540 145,181 62,767 17M,549 6,918 2.861,587 49,558 42,376 45,027 136,%1 282,5s8 260,M3 87,427 311,951 13.310 5,833,241 233,112 71,607 104.452 4 N.171 260,62s 160,908 55,958 218,412 6.045 3.0e9,645 76,501 $9,102 50,470 186,073 400,341 402.255 150,337 346A%1 3,%3 7,237458 291,110 75,687 119,404 456,201 C72.NM N2,2 3 3 135,089 421,193 8,711 7,801,595 1s8,810 161.331 131,185 481,326 8,0WM 4 6, k%206 2,326,155 6,435,083 146,162 116,663,572 6,888,568 1,601,521 1,852,112 10,342,201 476306 236,017 94,107 332,706 34.161 4,506,952 212,663 43,06S M 098 321,829 505,314 W,990 78,043 373, % 1 1.426 6,679,539 336,061 156,442 115,187 637,690 666,736 535 N4 232,919 5s6.553 13,403 11,016,539 490,580 173,761 181,822 646,163 644,552 592,835 210.1 % 372.771 2,902 13 A%8,590 774 382 79.541 233,311 1,087,734 1,816t52 1,4;7,219 521,153 1,333,315 17,731 30,964,66S 1,601,523 439,744 530,320 2,571,587 452,431 413,40 147,826 449,753 9,945 7.752,152 122,268 107,569 '24,265 354,101 327,6 % 142.443 69,34's 251,743 5.8 % 3.5 M,659 137,729 48,227 56,745 242,701 317.076 296,923 98,247 39,M2 62,587 6.662,317 73,021 50,197 123,1tB 246,31S 245,102 46,570 36AY 1,071 64 2.387,872 180,83') 47,823 39,% 2 269,624 1.372,295 949.296 351,421 742,249 73.472 20.339 AY 513,857 253.816 344.072 1,111,744 11,716,507 8,494.733 3,292,836 8.543,253 326.526 172,474,192 9,216,611 2,333,149 2,792,601 14,347,361 10,7s5,476 17,715,142 6h82,2 42 24.155,330 5.782,487 155,747,527 (3,194,582) 6,042,334 - 2,849,252 22,502,283 26,713,v0 9,975,078 32,998,683 6IN,013 328,221,719 6.022,029 8,350,983 2,792,601 17,195.613
- - - - - (120,116.269) - - (2,848,252) (2,843,252) 22,502,253 26,713bs0 9,475,078 32,994,683 6,1 N.013 208.105,450 6.022.029 8.350,983 (55.651) 14.347,M1 l
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Dairyland Power Cooperative's Mission Statement Dairyl nd Power Cooperative is a cooperatively-owned supplier of wholesale electricity and other services to its members. Our mission is to reliably fulfill the member's needs:
- At lotvest reasonable cost and maximsmt value now and in the future;
- While encouraging the tvise use ofits resources;
- In a manner schich is environmentally and socially acceptable;
- Maintaining the highest ethical standards in all ofits relationships;
- Through a staff of honest, tvell-trained, professional and motituted employees; In order to improve the quality oflife of the ultimate consumer members of Dairyland's member cooperatives and the economic and social well being of the region in which they live.
i D DA/RYLAND 1 l0l$/ =!? COOPERA TIVE - L A CROSSE. alSCONSIN}}