ML20246H877
| ML20246H877 | |
| Person / Time | |
|---|---|
| Site: | La Crosse File:Dairyland Power Cooperative icon.png |
| Issue date: | 12/31/1988 |
| From: | Taylor J, Willink W DAIRYLAND POWER COOPERATIVE |
| To: | |
| References | |
| NUDOCS 8907170227 | |
| Download: ML20246H877 (32) | |
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'37 .. yng q% ,b k h 8 O p p!N"[gy; ChrhhbbdY;w'bhbbbhlrbN 0 RM %,j n airyland does not market electricity directly to the individual user, Telemark orientedResort, a family year-around 11 but supplies at a wholesale cost, the total electrical requirements vacation area cast of Cable, Wis., of 29 rural electric distribution cooperatives who,in t urn, sell the accounts for over 10 percent of energy to their consumer-members.
Bayneki Elect ric Cooperative's In 1988, electricity from Hve Dairyland generating stations - 986 load. Carl Melchiors (left), megawatt (MW) capacity - was t ransmitted via nearly 3.272 miles of llayneld general manager, transmission power lines to 31I substations located throughout the discusses electric heat storage system's 44,500 square mile service area.This area extends into 62 units with Ilob Greenly, Telemark counties in Hve states (Wisconsin, Minnesota, Iowa, Illinois and general manager, and Bill Papaik, Michigan ). Telemark president. Dairyland's This instant energy is then delivered to over 178,000 consumers by energy management personnel way of over 44,557 miles of distribution power lines built and and employees of Bayfield REC maintained by the locally owned and controlled rural electric have worked closely with cooperatives. Telemark management to efficiently meet Telemark's energy requirement s. 11alryland's genemi rnanager and assistant genernt inanagers oncet sterLly to corninunicate "schat's happening"Ls thcir respectite divisions. They also sharv ideas on arays to sneet ihairyland's goals and objectives. Frvan left arr Bob Slueller, assistant generni rnanager and contrvller
,Iirn Shenrood, assistant gencrul unanager for adininistintion:, lack Lager, assistant generul rnanagerfor operutions; Bill 4 Berry, assistant generul rnanagerfor engineering and technical services: and jlf Jirn l'aylor, generul rnanager.
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R support staff General Management controller's Division operations Mary L Lund. frinstar utf thoman Resounts Ikmald U. cathoun.lbinrtor. Aramnting Unniel L crudy. f rinrtor. Plant Betterment Ann .l. Mahn, Administralitr Assistant K Neit h W. Garret t. f binrtor.1%a ncial Vaul lL Finner,1binrtor.1%uer Pnufactiem Svn1ary to General 31anager S1a nagement charles 3. Nulu . Irinrtor. llbrtrical Systems Thomas A. 8tecle. Ibinrtor,1.rternal James c. Lawrence, thovrtor Onnputer flarry W. Mont k. Ibinrtor. System Operntions Relations Nreices center Administration i.eRo3 W. Niedfelt. Internal Auditor Ru hard 11 shimshak. f)inrtor. Pmjert Veter R Dein iche. I)inrtor, littbrmation & F.ngineering and Technicad Servicen I!ngiturring blember Sveices Albert D lhal lkinrtor. Revl listate. Right of .lohn U Var kyn. Superustendent. La Cmsse DarrellIl Luc k.ltinrtor, Afaterials \\ ay & Related %reiers Boiliny IVater Reactor Sta nqrement charles V. sun'. Cramt e. lki nrtor, !!!strical Robert H. Wery,1birnlar. Quality Dougins D Veterson. />inrtor. Pnx urement I:nyinverims Assuranec Frederick schubert. NIq(Littorney Larry n Thor .on. Irinrtor. Nystem Planning Richard N. Wilhams. I)inrtor. Anw ihr k C. Willenberg. liinrtor, Tra nxmission iMrlopment E!nginnring & Omstructirm
. lames 11 W:ule Ibinv1or, sqfety Administration
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D1.9,88.1n Review 2
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- The cost of elect ricity deh.vered to member cooperatives decreased Contents E7 percent to 4.2 cents per kilowatt-hour (kWh). Report of the President
- Total operating revenues increased 2.6 percent to $156.5 million. and the General Manager . 4
- Extremely high summer sales contributed to a 1988 net margin of Dairyland Meets Consumers'
$8.3 million before adjustment. I)ue in part to these excellent Challenge 6 financial results, the Dairyland board elected to write off $2.3 h,.nanc.u.I Statements. .
18 md. b.on related to past service pension costs resulting in a net Notes to Financial margin of.$6 md. lion.
- Total electric sales were 4.4 billion kWhs, representing a 10.4 St tements ,
22 percent increase from 1987 sales. Electric sales to Class A members Statistical Comparative
- the 29 RECS of1he Dairyland system - were 2.9 billion kWhs,6.2 Summarv 25 percent higher than 1987. Comparative Sales 26 e Construction of a new Administration Building and Systems Service Area Map 27 Operations Center, adjacent to the Frank Linder Service Center in Consolidated Cost La Crosse, began April 25,1988, and is expected to be complete in Information 28 1he fall of 1989. Mission Statement Back Cover wpMgm-*'m?mi7.y
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s - m The dmught of1988 adurrwely impactedfanners thmughout th* Dairyland service arva. l'anners using irrigation systems reduced these negatite effects, but most still had lower emp yield. This is the irrigation system of Pat Donahue, fanner in rumi Baldwin, M1s., scho is a member of the M. Chdx County I'lectric Coopemtire boani ofdirectors. 3
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f a single word couki Budgetary and maintenance with the highest payhack are I describe our operations in }aanning go hand in hand. We scheduled earliest. 1988, it is st ability. can anticipate and estimate Manpower planning not only Stability, however, does not the cost of routine includes the succession of mean that change did not maintenance required to keep replacements for retiring occur. Changes have been our generation and employees, but for improving made and will cominue to be transmission facilities in good the skill levels and supenisory made at a rate that does not working order. abilities of our entire upset the stability of our Life maintenance planning workforce. Training programs operations. Changes will be for both the generation and were planned and scheduled to made only if success and transmission systems must be permit the utilization of our improvement are reasonably projected for years ahead so trainers and the absorption of assured and as they fit our that the revenue stream can the new ideas by the trainees. plans for the future. provide the necessary dollars Financial planning is Planning has become a part to fund new equipment and intimately tied to the of our corporate life. Strategic operational improvements. The anticipated replacement of marketing planning. financial planning process includes an large items of equipment, planning, energy supply analysis of the anticipated machinery, substations, planning, manpower planning, payback from these t transmission lines, and, maintenance and budgetary investments in plant event ually, the addition of new planning are now standardized improvements and life generating capacity which functions recognized as part of extension. Those investments absorbs large sums of money. the overall goal setting and Our Energy Supply Planning objective seeking process. Task Force told us that a new generating plant will be needed after the turn of the century and that there is still time to prepare for that financial crunch. We are not entirely
- sure at this point what form aE this new generating plant may J '. take. Part of our energy supply
' y planning involves the study of
;AG changing technology in power
% generation, emissions control, and developing options for i non-ownership power supply.
Choices must be made 10 years in advance of the need, so we must choose wisely and carefully. A Financial Policy Task Force made up of representatives from distribution cooperative boards and management and from selected Dairyland staff met Jarnes W. Taylor (It:ft) Genens! Manager, and Wayne Hillink, Prrsident
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m.4g' , m. , F > y g yf . w a ,m . , 3 : x , i throughout the year to analyze Through the efforts of a The needs of our our capital'needs now and into strategic marketing emphasis membership vary throughout the twenty-first century. utilizing techniques and our service area. These varying With the prospect that strategies developed through needs are being addressed in traditional REA financing the combined efforts of designing programs and j methods may not be available representatives of member services which require to us, we are planning now to cooperatives and Dairyland Dairyland's support. When you put all of these efforts together, our primary
" Working Together, Workingfor You "is the best P"
'P"*' i"' ""d h *" b"' '
supply the needs of our clCScrl])l1on Of1[ hut 100 haDe bCCH (101Hg 1H 1988, members in the most cost 1 Chat 1C0 0re pl0HHiHf to (lO in 1989, GH(i 1 Chat effcctive manner on the most we CXpCCt 10 (lofor MGHy years to Come. reliable basis. With the number of people involved, the cooperative
. attitudes expressed, and the survive 1 hat possibility without staff, we expect to improve the
, desirable results achieved in adverse impact on our rate load faccor. Tlus will increase 1988, the slogan " Working structure tomorrow. the beneficial use of our Together, Working for You"is Opportumties now exist to generation facilities without the best description of what we avoid a severe rate shock when impacting adversely our ability have been doing in 1988, what a new generating plant is to supply energy requirements we are planning to do in 1989, mstalled. Financial planning during the peak hours. and what we expect to do for and energy supply planning are many years to come. The real therefore inseparable; m fact, trick will be to meet all of the all of our planning activities challenges we face without are interrelated and rocking the boat. age mteract tve.
Energy supply planning utilizes the skills of forecasters, The strategic marketing financial analysts, fuel supply effort is as much an experts, environmental educational program as it is a / -g scientists, engineering and promotional program. (, ' operations experts. The Incentives are being offered to **" combined talents of this special encourage off-peak use of " " "## group analyzed the effects of electrical energy in order to new environmental laws, t he achieve the efficiency , hua WM impact of even stricter rules improvement goals of the and many other factors in the program. . selection of options for pow er President supply in the fut ure. The utilization of our facilities in an efficient manner directly affects the cost of producing electric power for our member cooperatives.
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%WorkingforYouk w y a + *t 3 Dairyland Meets Cost of Coal Per'ron Burned Barged EUnierrain Consumers' on notiars)
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L ast year, i9s7Dairytand reported ihai wa on exceptional year. We can now report that 1987 , regI 39 t' : '
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1988 was an even hetter year . ======a'====== perhaps the best in Dairyland's 1986'pfyf*$"^s@~[J'?]G11i ~ "". ' " jQ - ========
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history! F . . Of greatest interest is the fact that Dairyland decreased its 3 g37' r kW [Y *' ] ,% 4Q ,$ :7[ N^> f. A WA Mm P i s wholesale electric rate to Chtss A i- -
- I, reembers 5.7 percent. This is the seond year in a row Dairyland s 1984 ,gT g yjp g g ggg g$f ) [p>
g, . wholesale rates have decreased. That's rare m today's busmess f } O'y , lh 20 2b, 3b - 3T) climate and great news for consumers. energy delivered by Dairyland. price reduction on its primary The major reason for the lower The average unit cost of contract, teaximum utilization of wholesale rates was the coal delivered barged coal, on a net low-cost Wmming coal and , renegotiation process completed energy basis, decreased 6 percent. elimination of eastern coal in late 1987. Coal is the fuel which This decrease is attributed to sources which bear high produces over 85 percent of1he Dairyland's efforts in negotiating a transportation costs. The relaxation in sulfur rm dioxide emission standards for the 361 megawatt Genoa Station
-{' No. 3 also made a positive contribution toward reducing costs because it allowed Dairyland to burn lower cost Illinois coal.
The favorable cost reductions achieved at the barge plants were partially offset by a 9.8 percent increase in delivered costs of coal received by unit train at the 362 megavmtt .lohn P. Madgett Station at Alma, Wis. This increase was due to the 12.5 percent royalty
~~~~~~
which was recently imposed on federal coal leases mined by AMAX Coal Co. in Wyoming. Overall. the delivered cost of coal increased I percent. Our delivered fuel costs are approxiteately the same t hey were in 1980. The cost of fuel burned is the The Engcutist Committee rnrets monthly seith Niles Bennan (secondJhom left) general counsel, and Jim Taylor, general manager (not pictured). Executier Committee Iatgest annual expense item at eneminers (frvm left) crr Roger Erickson,first vicepersident, Trrmpealvan REC; M ayne H illink, persident, St. iholx County REX'; Ertsnk Bohte, second riceprvwident, Taytor REX} Leo n'allace, secirtary, Richland REC; Leonard Ricke, Jo-Carmli REC; Leo Byrnes, treasurrr, Allamakee Gayton REC; and Quentin Rucker, People's Cooperutier PouvrAssociatiorL
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,e, jg 4 p.;Sg~{3 s Y i Y.. % M exceeding of $142.5 million.its budgeted revenues Extremely high M' , y /r 4
, C j% summer sales, principally to non-
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- . M class A members, contributed to a c f 1988 net margin of $8.3 million
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4 Due in part to these excellent i" Jg ' 1 j[ T financial results, the Dairyland board authorized the expensing of {
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g MhQQ 1988, a $3.2 million increa3e over k c 1987(In 1987, net margins were r ww g gg ' Wed to $2.8 million due to a L one time adjustment of
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Dairyland's investment in a fiber ( optics venture - NorLight). Overall electric sales of 4.4 billion kilowatt-hours (kWhs) is a 10.4 percent increase from 1987. Electric sales to Class A members Oeer 2.1 inillion tons of coal stere delivered to Dairyland's genetutingfacilities in 1!wH. Were 2.9 billion kWhs,6.2 percent Doug Peterson (right), dirvctor ofprocurvment, explains operution of one of tu'o bulldo:ers used to inmv the coalfnom the stockpile to trelaim at Dairilland's 3G1 Revenue hum Member Cooperative megauntt Genoa Mation No. 3. Boani enernbers on the Tuela Committee arv (pvm lep) (cents per kWh) Bernaril Kilchenstein, lafayette REC; Leonant Shatek, Hau keye Tri-County RFC; and , , Robert Mrvit, Cedar l' alley REC. Roland Kelley, Oakdale REC, is missingfrvm the 9myw w r n r mvys photo. 19+(:.lMlb}4ll%l1%KQ&pQ is . yv ervvvmi . Dairyland and amounted to $62.8 2.6 percent, amounting to $156.5 ios( r d{E F 4 4 1 4 I W { f million or 40 cents of each million. Revenues from energy uweverwer*T a revenue dollar. sales to Class A member 19891 W 1 W IeI614E619E war M vv---w A cooperatives - tyle nq ggCs of , ,,gg g y p yggy ,ggg y 3 the Dairyland syctem - however, Inereuses in inc,ea,ed ie, , hen 1 pe,cen, ,e
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n,q' ggimq' ',#; Revenues 2 Class C, L) & E members (those 00 M M'1^2* 2 ao n 40 " no Margins # Sales ' ather than REC distribution systems) increased 12.2 percent higher than 1981 sales. Class A t.) $35I) million. sales "onstit ute 65 percent of Dairyland's 1988 operating Dair total energy sales. revenues increased $3.9 million, or success'vland ful year, had a very substantially Sales to Class C, D & E
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members - neighboring elect ric utilities, Mid-Continent Area History of Revenues and Expenses Power Pool WAPP) members and municipal systems -- were 1.6 billion kWhs in 1988, an 18.9 Total Total Non. Operating Operating Opemting Net percent increase from the Year Revenues Expenses Margins Margins previous year. 1981 .. .. 165,875,094 164,108,007 4,719,994. 6,487,081 1985 , 159.793,307 161,322,306 . 4,911,191 3,382,192 1986 . . ,,, 156,221,395 155,311,326 4,852,532 5,762,601 1987 ,, , 152,552,945 155,747,527 6,042.834 2,848,252 1988 . , 156,502,180 158,554,881 8,034,951 5,982,250
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to earn reasonable margins has Revenue Dollar Expense Dollar supported the well deserved bond CPA - 822* ouier -- n4:n. ""'"I"",~*"2* Fuel & Purch. credit rating of AA from both class C, D & E other - 7.021- Powei - anon, national rating agencies on its 8" jbg3 , salaries & outstanding tax-exempt bonds. W " "E"" Following the two years of
- 3 ' #2* Class A rate decreases, Dairyland's board approved a W 1989 budget which will result in b'. j SN substantially no rate change from kn gg 193gs rate of 42 mills (4.2 cents) per kWh. The 1988 and 1989 rates g%[M[qg,% y
'jggg]#$y$ ) are the lowest since 1982.
Adding to future rate stability W hydd) .yF
' w was the adoption of a five year class A sales - 7&s71 .
plan limiting any annual increases on the energy portion of Daityland's wholesale rate to 2.5 The total cost of service, liquidity of this investment base, a percent. This allows the Class A exclusive of fuel and purchased majority of which is unrestricted members to market certain power, decreased slightly (less as to use. classes of sales with stabilized Dairyland has repaid over $429 retail rates resulting in benefits t.han 1 percent) to $86.5 million. million to the Rural Electrification for all Dairyland system This total of the cost of service along with fuel and purchased consumer-members. Administration (REA) and other power offset by nonoperating creditors on a timely basis for margins, resulted in Dairyland's principal and ;nterest tbrough the net margin of $G million, end of 1988. This payment record plus Dairyland's continuing ability Financial Results mgn, -- 77 ' 77 ig .
. .1 % g 4 investment of commercial C ..ND paper and government obligations F' i '
' %@h of $96.7 million provided A %,
Dairyland with $8 million of gdWlMl <@" nonoperating margin. In addition, . Dairyland's financial strength and ability to meet any major
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emergency is supported by t he s ', Power salen (nmusands or MWh) O ghNuives @ EPA E others N~ nisk 1987 N]j dG , , nis4 4 g 9 j 198 i e'
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'f LeRoy Niecifelt (standing), internal a uditor, meets u ith Audit C<>manittee, llaant 9 unan wnna wuns At u n > in u n memtscru un the Audit Committee air (fmm left), Glen Kanten, Pierre-Pepin RI:C; John Roberts, Eau Clairr REC; and Allen floci, Chippeu a l' alley RCC.
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Q 7 N f@ loM N b5 p 0 )(N) JtNI lI(N) 4f M) fi(K) .m) o . .. Y( _,y Dairyland's financial future looks bright as recent financial foreertsts demonst rate t he ability to stabilize Class A rates while building financial st rength. _ _ _ h task force of Dairyland Once a month, the day prior to each l>onni meeting, the Rnancial Opemtions ami directors, cooperative ntallagers, Revleur Committee meets with the Contrviler's Division sletff to tvriew the month's Jinancial operations. llach Dalryland dirretor senen on this committee twice a year and DalrSlan(g seniol. I
@n the m ruge1 Fmm it-A an Ce rnld A'oe Ile t, (irnid RM) M h tr7 rut (MM REX) nlattagettlent begall Work In inld- (;onlon Yost, Favelsorn Slou er RilC; Bob Alueller, assistant generul snanager and 1088 on a con)prehettsive contrviler; Art Riemer, Haufleid RElC; Don Calhoun, dinstor, accounting: Ray Tolley, Class B tvpn sentalisvpum Adams-Columl>ia RI C; Selmer.Velson, Barnm RilC; and finanelat policy Which Will guido '
Hrice Hender, Clark REX'. Da.iryland,s future and its ability to conti , ally ineet Dairyland's Inission. Power Generated & Purchased (Net) High Smnmer "I,housamis of.MWh Electric Demand l a Stcam O Nuclear E "DieselF"* O Purchased . Dairyland,s generating st ations
-.s - s .g 4 .a produced 86.3 percent of the total systein enerO recluirernents in p , w w # vpf
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Arc.a Power Pool (MAPP) 1987 ,"$NS h [$jhh < '$hTds l[h / [ accounted for t he balance of 13.7 percent. Q w ee a w ./, I.. Dairvland, which has been a 1986 ' M $ gf %l@jp ky [, , nredon$inantly winter peaking systein, experienced a closing of. y ,,w w. w / y/ 7 t he gap between t he winter and g/h p,%.. ))W %fh 49 h- p 1985l .[ the suintner pe aks during Ihe u ,, ., ,- yvg sununer or nis8. 1984 r ghh4d,Nf M N [ [7 r r , , . O 1000 '2000 3000 4000 5 0(10 L_.---____ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ __
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n , , The 1988 summer peak of MO megawatts at the time of affirmative action practices in megawat t s wasimly 50 maximum demarut. order to keep pace with the many megawatts less than the 1987-88 During last summer's unusually techtmlogical changes taking cont rolled winter peak. This hot weat her, generation place tbroughout the industry as shows the importance of the requirements in the upper well as at Dairyland. versatility of Dalryland's load Midwest were staggering. Dairyland will promote and mnnagement system. Dairyland is Dairyland is proud to say tlutt our t rain existing personnel to take continuing to amilyze its summer generation facilities were able to the positions of retiring employees load ami develop effective load meet those demands. arul hire ami train qualified management programs to control Dairylarul has outstanding people to meet its future needs. summer lx aks wheri necessary. plant life numagement, At year's emi. Dairylami's load perfornmnce improvement, arul control system was cont rolling pers mnel t raining programs. The gggggggg7pJ {g((g over 61,00G water heaters, 4,,00 goal (is to keep existing generation , dual fuel installations,1,000 heat facilities operating well into the [y[rgmg[y storage systems, amt 40 peak alert future arul in a reliable and Reltable lomis. Th'is provides a load economical manner. If last year's reduction of approximately 75 record is any indication, that goal will be achieved. Dairyland Power Cooperative's Dairyland employees are Operations Division is responsible working together to meet each for round Ihe clock operation of division's established goals. D ~ ' .j generating stations, t r msmission An example of this is the ,!;f( D h N ,tH %i fy% w :V substations and t transmission activity of the Plant Perfbrnumee Q$6fiQ'$ d$ W {} 4 EU i [ lines. The Operations Division has Commit tee. This commit tee consists of employees from three broad goals: first (as with Dairyland's generating st ations, p" [ hf g ygg p3 every division at Dairyland) is to develop well-t rained, professional, System Operations Center, and Plant lietterment Department,
+,i<q i M} and motivated employees.The They meet regularly to evaluate N j~
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$ second is to improve efficiency, ways in which power plant y 6 {i availability, and reliability of performance can be improved.
j f '* y existing generating and Among t he projects initiated by
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2b 1 N;g talk is about people first. You can For the station power
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j have the best equipment, best assessment, each plant made a p W computers, best generators, best detailed evaluation of all electrical j w ; coal, etc., but Dairyland equipment usage in the plant. The
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Dairyland's goal is to t rain
, ,b k existing personnel and to hire quality replacements using our lhe 135 foot Genoa ash ello was ptmtrd continutmsty in slipforin,24 htmrw per dayfor il struight days in earlyfull. The base and silo avnairwi 1, LIM culde unttis of'ermervte. Ihr newJ1y ash allo is part of the.Wil ruegawatt Genoa Mation No. 3 Ash finndling Modu 1 cation Prvtject scheduled for completion in the spring of1M9.
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$$ $egv $ m 15 ,c h ? * ' ' 00 m a The plant performance data Performance Committee reduced, to take units out for base established a daily reporting recognizes the need for enhanced maintenance. Electrical demands ;
system in which each plant methods of analyzing combustion were high and generation reserves raports energy generated, coal in boilers. During 1989, Dairyland in MAPP were low. For example, burned and other data which will train a number of employees 1,000 megawatts of hydroelectric provides the base for daily to perform required tests for capacity from Canada was not waluations of plant performance. complete combustion analysis at available due to the drought. This Coincident with the Plant all generating stations and, power was produced from fossil Performance Committee, the hopefully, these tests will reveal plants throughout the MAPP area. generating stations operations met hods to improve performance. In addition to meeting the supervisors have developed an Performance also means electrical requirements of rural operator t raining program. reliability and not just cost electric members and municipals. The generating station reduction. Dairyland's generating Dairyland was generating and operators recommended such a units have been extremely reliable selling 100 megawatts to program and it was endorsed by which is one reason that Wisconsin Power & Light,60 management. This training Dairyland has become a megawatts to Northern States program is targeted for station consistent supplier to other MAPP Power, and 20 megawatts to operators. members. United Power Association through This operator training has been Most of the components in power sales contracts arranged i implemented and will continue. Dairyland's generating facilities prior to the summer season. ! To assure that all plant operators are replaceable. A preventative Adding to the reliability of the I receive consistent training, each maintenance program is geared energy delivery system was the plant has a training supervisor. toward reducing emergency fact that there were fewer than Dairyland is developing maintenance by replacing worn normal ice and wind storms realistic goals for heat rate components before they fail. during 1988. This good fortune improvement at its coal-fired During last summer's unusually helped maintain the reliability of generating stations. The Plant hot weather, Dairyland waited the transmission system. until weekends, when loads were GENERATION STATIONS 'IUTAL MWh REQUIREMENTS Support Afq/f' Total Plant Net Capacity Fuel Generating suit.lons David M carroll,Mamhcan Number of in kW Cost Per utvinrlstrie station, Type Station Units (Winter)_ Net MWh % of Total Net MWh superintendent Steam: Alma . . . 5 195f)00 565,512 12.31 $17.39 l
\bchard D Davts, John P. Afad !v1t M ". .. 1 362,000 1,567,644 34.14 16.52 station, superintendent Genoa #3 1 361,000 1,743,635 37.97 14.85 John s. Dilworth. Genoa station No. 3. Superintendent Stoneman . . 2 50,000 48,939 1.07 22.58 Total Steam . .. 9 968f)00 3,925,730 85.48 15.98 I ti n , fi Doughs 1 Mclice, Alma Site, Assistant Staunger Ilydro: Flambeau .. 3 18.000 36,600 0.80 -
.luhan A. Nelson. Alma site, Total Generation . 12 986fXX) 3,962,330 86.28 15.83 Afana,pr Alfred F. Zittel, El Stoneman Purchased Power . ., 630.011 13.72 14.87 station, superintendent Totd Requirements .. .. 4,592,341 100 00% $15.70 Trannmlaulon clarence it Farley. Dunsmission TRANSMISSION LINES SUBSTATIONS Alaintenanw. Afanager Inchard M. Girohuno, irest A nu. Miles as TotalCapacity Supreign Voltage -kV Constructed Type ^ Number kVA Jol r I I k, .vuth Anu,
- 161 58L97 h . _ . 4 W M00 Everett .I. Traxler, North A nn. 69 2,448.24 Transmission . . 02 1,286,000 Supreixor 34.5 241.66 Distribution , ,11 812,250 1 271.87 Total ., 311 3.109.750
- - - - - - - - - ---------_____m____- _ _ _ _ _ _ _ _ _ _ _ _ , _ _ _ _ _ _ _ _ _, _ _ ___ ___ , _ _ , _ _ _ _ _ _ _ _
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61 Nf@horking;T6sechssy.W)5 J ; s s g 1 Commitment to 3 Marketing and Member Services After a year of research and # I planning, a strategic marketing ; process - which would benefit ( the entire Dairyland Power h^ Cooperative service area - was 74
- 'unched. 2' The slogan " Working Together, V>
1 Working fbr You" was selected to ' symbolize an increased a .n commitment to marketing and @ " member services. ,, , This slogan was selected to emphasize the real goal of y meeting the diverse needs of th( 3, nearly 179,000 consumers who 0' T belong to the 29 ItECs in the t( $'/ L il Dairyland system. 7 , , The purpose of the strategic Ns -
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t marketing program,in which all ItECs in the Dairyland system are 3 J o p.y participating, is to define the q w present role and future opportunities for Dairyland and
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its member systems in the energy m trketplace. - Nith ItECs and Dairyland , workir g iogether, the cooperatives'present positions can be defined. Future roles in matching power supplies with member energy needs as 7 eae effectively and economically as possible can also be achieved. f A St rategic Marketing Planning Task Force, made up ofItEC managers and Dairyland staff, recommended that Dairyland and h._ its 29 member ItECs work closely - ,y together to improve service to the .ge~ , present market segments. The - group also determined that n=erve selected additionalload growth at oiT-peak times would benefit the I>airyland's I:lectrical Ala.untenance and Staterials Departments perparr to rnove a sci consumer,ItCCs and Dairyland. kilovolt to enkilovolt emnsfonner serving reople's coopemtier rouver Association near Rochester, niinn. Thsngonners consvrt electricity to louer voltages. Jemme khaulo (top), truck driter, hydmulic opemtor, and Steur Yonkovich (bottom ofladder), electrician, invasurr the height of the tmngonner on the trailer to ensurr nrire cleamnce. Ryan Rykal(fn>nt left), indenturvd apprvntice electrician, and Garry Huset (fn>nt right), truck driver / hydraulic opemtor, securv the tmnsfonnerfor tmvel.
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- development activity coupled wit h Dairyland and member ItECs .= mewiesem, . .~... the strategic marketing effort..
needed to find out who and what 'e qmewa==~ - *~ - 4 1 Dairyland is working with existing conunercial and they were rather than continue to i* da*****'**
~~ "1 4 rely on assumptions or guesses. * "" ****"' " "' T industrial consumers to better meet t heir needs while As a result, a ser:es of surveys was
{ , '"""*__;_"i3 conducted. These included , ~, ,, encouraging new businesses to surveys of members, empk>yees, : w seen -maa- 5 M settle in the service area. The load and directors. w =="a***"* *. - d The results (reported to 7s '
- i- {f]i customers of commercial complements the load of the agriculture andand indust management at each rural f patterns
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- rural residential sectors, and, as elect ric cooperative) were enlightening because, for the first ",
i 6 v~ C Jg%g such,willimprove the u , tir, they presented a much .. f efficiency of1)airyland's electric beuer idea of the attitudes, needs i i ,3 y generation and transmission and composition of these 88M""" y, @*' 7kg facilities. important groups. Gerald Koener (h:/t), fanner as aren as a . All of:hese elTorts are 1)airyland and member itECs Gmut RI:C and Dairittand director, and mtended to increase the econontic gained a better understanding of Paui 6uns, pairpland anneuttumi health of the service area. Ily their consumers and the markets """*"""# 6 Ch"* ""' ""d"'""' holding increases in the cost of content of high "P"d"""uty, qua high test u eight they represent tbrough this com dried in Koetier's natunit air toir electricity below the rate of comprehensive survey. The ternperaturv gmin drying systern. inflation, t he welfare of all will be reassessment also showed that se:Ted. Ilesults of these efforts I)airyland and member IlECs should be visible in the early must consider the needs of the 1990s. commercial and indust rial market segments in addition to , agricult ure and rural resident tal 1( W2 - %
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loads. They must keep up with
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- j, program will allow a better match %.
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g generating plants and [ y t transmission lines while doing a betterjob of meeting rural energy o e, f: ?
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needs. ; , i j This foundation of information -: will help direct the actions and M /E-f ]M " ' changes in the mont hs and years A # .
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to come. Dairvland's fut ure is intimately 1ied to the economy ofIhe rural area. In an effort to improve the economic future,I)airvland has P, - organi7ed an aggressive economic l'he atmtegic rnattrting sunvy entirnates that nearty 17pervent of the consurnerw in the Dalryttarut systern arr dairyfanners. Gar 1/ Cavitt (far right), supervisor, envrmt unanagernent, and Atere Nelson (secondfmrn right), encryry rvsvarth engineer, caldain a treentry cornpleted DaintAtudy to the Dair31 Cornrnittee. Hoarilinernbetw on the Dairy Cornrnittee arv (fman left),1 rr Schultz. Price REX'; 11ctor Knudtson, ifinnebago REX:; arul Lee Ifleland, Buffalo RI:C. Brice Hender, (Turk REX', is vnissingfrven thephoto. Picturvd in the backymund is Oper.1*atley I'enn ostned by liin Roesler and Non, consurner-rnernbers ofI'ernon RCC, SYestby, SYin
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- g 'a y* y '"" v Q The management of Telemark } yjg g ['S Q y r A? "Wg s ,
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" *y j involvement of Bayfield REC and Mg' p; Myg ,"WtNd;m Dairyland personnel. Telemark's operations have exceeded expectations which is good news Unpredictable as t he future for Bayfield HEC as Telemark may be, Dairyland is planning now represents ap-oximately 10 '
for the needs of tomorrow's percent of their lead. consumers. Some things will Dairyland and n' ember HECs remain true in the future as they continue to be invowed with have in t he past. The population similar commercial energy audits. will continue to expand, goods It's a process of working with the and services will be more member examining how energy is expensive, electrical appliances being used, and determining if will become more efficient and there is a better way to serve that there will certainly be a consumer. Dairyland can be a continuing need for reliable som oumda rieft), manager ofAnthonu valuable resource to the RECS in electric service. , rarmswekoona virision, discusses the this process. %,e can't predict with certa,nty i importance ofirrigationfor a successful the type of electrical generation potato harerst uith cary Robison, or distribution equipment that snevnt>cr service advisor at oakdale ricerric Coopemtier, oakdale, His. Inay become available m. the 21st cent ury. Designing around Meanwhile, planning horizons go well beyond the next decade. Slow, but steady, growth is . , - .- - anticipated in both the - s -'- .
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agricultural and conunercial '
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sectors of the service area. - - - ' Tourism is being encouraged, since visitors bring "new money" 4 ' in to the economy, stimulating ,
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A very positive tourism story in .
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1988 occurred at Telemark ,,,, $ " Hesort, a four season recreational #'- f facilit.y served b.y Ba.vfield Electric
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P' Cooperative in northern {, ' -
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. Bayneld REC worked closely with 'l,elemark management to 1. A:
specify individual room elect ric A '
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heat storage systems to allow ^ i _ . . . _ ,
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newly const ructed condominiums 1 units to be heated at off-peak $; '
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Dairyland's Energy ,, c f d y - -- Management Department ' ~ h'V##- #% "I \ a L' Agg provided assistance in designing - i - f ." g. l (^~g- ["QF ' ,, the systems and developing a # - Daimland's in n' System opemtions Center and Administmtion Building (in control scheme for the backymund) acill be the home of57 employees and is e.tpected to be completed in the condontil1iums. fall of1989. Dick hhimshak (h:ft), dirretor ofpridect engineering: and Ed Eckert (center, holding dwering), manager, administmtion building perfect, keep the Building Recient Committee abriant ofconstruction activities. Board members on the Building Reelear Committee include ficonarti Ricke (secondfmm left), Jo Carmll REC; frr
&hnick, Jackson REX'; and Err Schult: (right), Price REC.
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m g. D ,y%,%j @y% gqgpfgph W Angsb 3 v:d(j'gh present technology alone may leave us in *1u past when we arrive in the future. Our planning must be both flexible and visionary. This planning is being done by an Energy Supp' Planning Task Force made up o personnel from Dairyland's System Planning, Cont rollers Division, Environmental, Plant lletterment, and Procurement Departments. j:::., Their work is based on t rends, ' *', Q forecasts and information from ' many sources indicating the direction in which our industry is headed. Protecting our Li: feline - Land Tom MHght (left), inanager ofcornpensation and labor triations, and Mary Lund Qyh fq(gf* (rnissingfrom photo) director ofhuman resourres, unrked neith the Latsor Cornmittee throughout the bargaining process. Boarit inembers on the Latsor Corrunittee include Robert Anderson (secondfrvan left), TH-County REX'; Roger Erickson, Th mpealeau REC: and Robert 1hdnor, Dunn County REC. Rural people have always been caretakers of the land. Those of us who live on the land and derive in response to concerns over acid our livelihood from it can rightly rain and the greenhouse effect. OOfIM[ONd38 NOM call ourseh'es stewards of the What Congress does in response land. to these issues will affect all of us Headquarters Our world is changing. New replaces old - sometimes before to an as yet unknown extent. St ricter laws will bring a Negr[ng , there is an opportunity to disproportionately higher cost of CompletlOn consider the eventual operation. consequences. Ultimately, each of As we plan we will also be us is responsible for maintaining assessing the alternatives. Acid Of great pride to Dairyland's the delicate balance that exists deposition, the scientific term for board of directors and Dairyland between technological advances acid rain, remains a m:dar issue. employees is the construction of and environmental stewardship. Nationwide sulfur dioxide and the new 87,860 sq. ft. Involved in all that Dairyland is nitrogen oxide emissions have Administration Building and doing to strengthen its electric decreased while coal use has System Operationn Center power system is concern for the increased. At Dairyland sulfur adjacent to the Frank Linder environment. Existing laws must dioxide and nitrogen oxide Service Center in La Crosse, be obeyed. Air, water, plant and emissions have decreased 44 A st udy to determine t he animallife must be protected. percent since 1980 while energy feasibility of expanding the The real challenge is to meet production has increased 6 present Administrative Building legal requirements with minimum percert, to house the new sophisticated impact on the cost of energy, Dairvland is concerned with System Operations Center showed which has a direct bearing on our both protecting resources and that constructing a new building ability to compete for economic minimizing t he economic impact on a new, Dairyland owned site development. of expensive modifications which was more cost effective. For this reason, we are will ultimately be paid for by the watching closely t he actions by consumer members. Congress and the new president
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l , Construction of the new facility "F""vS"""N?NPp" P""'"fy" % 77" '" G* 'T began April 25,1988, and is ,. f *' Q expected to be complete in the
/[h((yp[Jq]j{ff %~~' y i 3 - j; iQ fall of 1989. It is located on 8.7 .. Q l <{
F acres of tand in La Crosse
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between East Avenue and the - Mississippi Itiver. Many years of work have gone into the planning and building of x.mnit the new Energy Management System (EMS) to be located in the System Operations Center. This -t sophisticated tool is a computer based system for monitoring and controlling Dairyland's complex energy generation and delivery system. The goal of the new EMS is to , 7 , allow Daigland to increase .f reliability and to operate its / system more economically. Many Dairyland employees have worked with the manufacturer in designing the system. At year's end, Cheryl Ruud, right of tray agent at Dalryland, explains 161 kilowlt reconductorpntject development of the EMS Was to Arnold Pedretti scho is a landottner andfanner along the line's mute in rural nearing completion. Dairyland acnoa, niu. - Photo by Cl(rfont R.11aughton personnel are working with t he manufacturer in checking out the system to insure that it meets Interaction Management training Fr.ber Optics specifications. since it began a year-and-a-half Once factory acceptance testing is complete, dispatcher ago. The bas,c i training program pjygpgjfjggfjgg training sessions will be teaches supenisors to use conducted. The system will then problem solving met hods along NorLight is a fiber optic based be shipped to the new building in with communications skills to teh communications company. La Crosse. handle any interpersonal Dairyland, through its subsidiary Approximately 277 of sitnation. Dairyland is also Curtis Telecommunicat ions, Inc. Dairyland's nearly 700 employees reviewing a program for non- (CTI), is one of four utilities in will be located at the office. supervisory employees called general partnership of NorLight. The average number of full " Interaction." The program would CTI owns nearly 32 percent of time employees during 1988 at give non-supenisory employees NorLight. Dairyland was 687. The lluman an opport unity to enhance t heir Fiber optic cable is made of
!!esources Department reports communication skills and hair-thin strands of super pure there were over 2,100 applications knowledge. ghtss. Information is carried for employment received.There through the fibers by bursts of were 65 applicants hired,27 laser hght. The glass filaments are resignations, one death, and 22 enclosed in a cable carried atop retirements. There were also over high vohage transmission 150 transfers and promotions. st ruct ures.
More than 300 Dairyland and NorLight's network currently llEC employees completed connects Chicago, Dekalb, Itockford, Minneapolis, llochester,
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{}f Q M'O < & < Winona, Milwaukee, Madison, to the timely review and approval changes due to changing La Crosse, Eau Claire, Janesville by the PSCW of Dairyland's plan. membership needs. One constant and Racine in Illinois, Minnesota This practice will be continued has been a conunitment to a and Wisconsin. Extensions of the when of her new high voltage lines continued reliable, economical NorLight network were recently are constructed. energy supply system, governed completed to t he Wisconsin cities Dairyland continues to democratically by the energy of Green Bay, Appleton and improve its microwave system. users themselves. Dairyland is Oshkosh. New tower sites have been working to maintain t hat This Norlight network includes developed and channels have conunitment. while adapting to a 177.3 miles in the Dairyland been added which create a more changing world. system from near Cassville, Wis. to reliable communications system Dairyland's goal is to perform about 10 miles north of Elk between Dairviand and the llECs its task even better in the fut ure Mound, Wis. as well as for system operations. through well trained and highly The NorLight system continues This will cont ribute to motivated employees. to operate well. llevenues from improvements in both voice and People come first. For the sale of telecommunications data communications between Dairyland's generating and services are increasing more Dairyland and the llECs. transmission facilities to operate rapidly than expenses. Most of these improvements er0ciently and reliably,it must are being made in t he southern continue to recognize t hat part of the Dairyland system as Dairyland's most important asset the miermvave system in nort hern is people. Alp Public Input. par, or Dairriand s service area is more firmly established. The Public Service Commission Dairyland, like other of Wisconsin (PSCW) requires a imperatives, is experiencing public hearing prior to the construction of any transmission line over 100 kilovolts. In the .
, ym, spring of 1988, Danyland nutiated ..y,.,,,4 , , .
Q gg ,, g A its own hearings, ahead of the <9- > required PSCW hearing, on its w' d >MA plan to construct a 27 mile long ' M 101/69 kilovolt double circuit line 4 from Amery to Barron, Wis. Work C ,
) '
V on the line is scheduled to begin , I in the spring of 1990. % The purpose was to gain public - input and address the concerns of , 4 landowners affected by y-s i construction of the new line. At g ' n ,, - n _ y t hese meetings, t here were reports on transmission design, Q/ Me M'A WL, right of way, environmental - [z ks concerns and the procedures ,k#%,hj"%%$Q$
~'
N r *9 involved in const ructing t he line. - It was felt that these successful meetings significantly cont ributed i Prior to Dairyland's annual rnveting in ,1une, the Resolutions and Hylasts Corninitter trorts seith Dairyland stcVf to consider tvsolutions and bylasr changes. Dairyland stcff are Peter Dehriche (k:lt), dirretor ofirformation and rnernher services, and Jirn Sher,vood (right), assistant general rnanagerfor adrninistration. Twn Nterb; director, external trlations, is rnissingfrurn the photo. Dirvctors on the Resolutions and Hylasts Corninittee arr (Jhms left), Don Corty. Polk-Hurnett REX?; Leo Wallace, Richland REX!; Lloyd Ateinnsetz, Vernon REC; and Earl Pedersen, Jurnp Riser RCC.
Consolidated Balance Sheets Assets:
~ December 31, (In Thousands) 1988 1987
- ELECTRIC PIANT (Notes 1,2,7 and 10):
Plant and equipment, at original cost .... . .. . .. . . .. $497,308 $491,803 less- Accumulated depreciation . .. . . .. . ... .. . .. (216,469) '(202,653) 280,839 289,150 Construction work in progress . ...... . . .... 19,563 7.634 Total electric plarit .... . ... .. .. ..... . .. 300,402 296,784
. OTIIER ASSETS:
Investments (Note 1) .. . .. .. .. , . . . ,, . . 45,044 36,887 investment in fiber optics venture (Note 9) .. .. . 3,147 3,126 Investments in capital term certificates of National Rural Utilities Cooperative Finance Corporation . .... . . .. . ... . . . .... . 9,856 9,856 Pollution Contml Bond proceeds on deposit with trustee = , .. ..... .. .. 2,004 2,041 n eferred charges-
,ACBWR costs, net (Note 10) .... . . .. . ... . . .. 15,254 17,199 Other (Note 8) .. .. .. . . . . J,575 4,103 Total other assets .. . .... . .. ... ..... , . .. . 76,880 73,212 CURRENT ASSETS:
Cash and temporary cash investments . . . . . . . .... 51,671 51,542 Accounts receivable-Energysales . . ... .. .. . . .... . 16,171 14,982 Other.. ... .. .. .. . . . . , .. ... . . .. 2,467 4,819 Inventories, at average cost-Fossil fuels . . . ... .... .. ..... . .... .. 30,855 35,622 Materials and supplies .. .. . . . . . ... . . 8,409 8,442 Prepaid expenses , ,,. .. . . . . .. .. 668 779 Total current assets . . . . 110,241 116,186
$487,523 $486,182 The accompanying notes are an integral part of these consolidated balance sheets t
>: . Capitalization and Liabilii t es December 31,
-(In Thousands) 1988- 1987 CAPITALIZATION:
Member and patron equities-
' Membership fees ., . . ... . . .. .. .... .. ... . '$. 10 $' 10 Patronage capital (Note 4)' . . .. .... ... ... .. . _ 73,494 70,351 Total member and patron equities . ... . . . ...... 73,504' 70,361 Long-term obligations (Note 2) . ..... . . . .. .. .... . 355,253 363,705 Total capitalization _ . . . . . . . . . . . . . . . , . . .. ... 428,757' 434,066_
DEFERRED CREDITS (Notes 5 and 8) . . .... . ........... 20,097 20,194 COMMITMENTS AND CONTINGENCIES (Note 6) , CURRENT LIABILITIES: Current maturities oflong-term obligations .. . .. .. 8,944 8,614 Advances from member cooperatives (Note 3) .. . . ... 8,471 8,471 Accounts payable . ,, . . . . . . . . . ..... ..... . . 10,060 6,785 Accrued liabHities-Payroll and vacation pay ... . .. ...... .. . 2,579 2,416
'laxes .. . .. . ... .. .. ,, ... .. .. .. 1,612 2,108 Ir.terest . . .. . .. . .. . . . ... .. . ..... ... 5,614 939 L .er . . .. . .... . . . .. .. .. . . .... 1,389 2,589 T :.al current liabilities ... . . .. ... 38,G69 31,922_
$487,523 $486,182
y' m Consolidated Statements of Revenues, Expenses and
,y Patronage Capital
'h %gs o For The Years Ended Deceniber 31, (In Thousands) 1988 1987 OPERATING REVENUES: Sales of electric energy .m. .. .... . . ....... ... .... $155,826 ' $151,764 Other .... . .. ...... . .. .... ... ... .. .... 676 789 , Total operating revenues . .. . .. . . , 156,502 152,553
' OPERATING EXPENSES:
Fuel .. ..... . . , ... .. . . . 62,727 62,790 Purchased and interchaord uower, net . . 9,371 6,488 Other operations .... . . .. .. .. .. ... 22,579 23,241' Maintenance ., ..... . .. ... . 11,186 8,894 Depreciation and arnortization (Notes 1 and 10) . .. 17,865 17,715 Taxes...... . .. ... ........... .. .. .. .. .. . .. ... . 6,408 6,682 Total operating expenses ... . . .. . 130,136 125.810 Operating rnargin before interest and other deductions . . . . ...... . 26,366 26,743 INTEREST AND OTilER DEDUCTIONS: Int erest ', .. . . ........ . . . .. . . ... . .. .. . 25,374 25,500 A!!swance fo' funds used during construct'an (Nou i' . ........ . .. . . (545) (467) Other (Notes 8 and a > . . . . . . 3,590 5,179 - Totalinterca and other deductions . .. .. 28,419 30,212 4 i Operating deficit .. .. .. .. .. .. ,, (2,053) .(3,469) l 4 NONOPERATING MARGIN, principally ) investinent income . ,, .. . . .. . . .. . 8,035 6.317 i A *. margin , . .. . .. .. . . 5,982 '8 PATRONAGE CAPITAL, beginning of year ... .. . . 70,351 71,505 RETIREMENT OF CAPITAL CREDITS (Note 4) ,. (2,839) (4,002) PATRONAGE CAPITAL, end of year, including margins assignable of $5,982 in 1988 and $2,848 in 1987 .. . . $ 73,494 $ 70,351
- The accompanying notes are an integral part of these consolidated statements l
L to
Consolidated Statements of Cash Flows I For The Years Ended December 31, . ; (In Thousands) - . .i 1988 1987 .l CASil FLOW PROVIDED BY(USED FOR): ] Operating activities-Net margin . . . . . . . . .. . . . .. . 8 5,982 $ 2,848 Depreciation and amortization ~ .,.. ... . . ... 17,865 17,715 : 1,967 l Amortization of nuclear fuel .. .. . .. ... .. Losses and reduction in carrying value of ' fiber optics venture ... . .. . . .. ...... 1,0 M 5,567 Writeoff of deferred charge (Note 8) . . . 2,289 - Other .. . . .. . .. .. . .... ... . 1,789 2,400' Change in current operating items: j Accounts receivable . . . ........ ... .. . 1,163 352 '! Inventories . .. 4,800 5,988 ) . . . .. .. . . i Prepaid expenses . . . ..... . . 111 136 Accounts payable ' ., . . .. , . . . . . 3,275 3,201 Accrued liabilities .. . . ... . . .. .... 3,142 _ 1,517 j Cash provided by operating aethities ... . 41,479 41,691 . Financing activities-Proceeds from long-term obligations . - 18,608 f Change in Pollution Control Bond proceeds on deposit with trustee .. . ... . ... 37 (172)- Repayment oflong-term obligations . .. .. (8,122) (6,999) fletirement of capital credits . ... .. . .. (2,839) (4,002) - Cash provided by (used for) financing activities . . . . . . (10,924). 7,435 investing act h*ities-Electric plant additions, net . ...... . . . . . . -(21,288) (15,034) l Changes due to termination of LACinVR operations: Elect ric plant . .. . .. .. . .
- 20,408 Deferred charges .. . . . . 103 (18,427)'
Other ... . , , ,. . ..
- (1,981) l Net purchases of other investments , , . .. . (8,157) (4,708) .
i Investment in fiber optics venture .. ... (1,084) (2,250) 4 Other,not .
- (1,543) !
l' . .. Cash used for investing activities . . . . (30,426) (23.535) Cash flow during the year . ... . 129 25,591 l CANI AND TEMPORARY CASH INVESTMEN'lK Beginning of year . . . . 51,542 25,951 i F.nd of year . . . . J1,671 $51,642 The accompanying totes are an integral part of these consolidated statements
Notes to Consolidated Financial Statements (1) Summary of Significant Accounting Policies-Organization Dairyland Power Cooperative (the Cooperatiw) is an electric generation and transmission cooperative association organized under the laws of Wisconsin and Minnesota. The Cooperative's principal ollices are located in Wisconsin. The Omperative provides wholesale electric service to Class A members engaged in the retail sale of electricity to member consumers located in Wisconsin, Minnesota. Iowa, Illinois and Michigan and provides electric and of her services to Class C. D and E members.
. The accounting records of the Cooperattw are maintained in accordance with the uniform systern of accounts prescribed by 1 the Federal Energy Regulatory Commission u adopted by the Rural Electrification Administration (REA), the Cooperatiw's principal regulatory agency.
The consolidated financial statements include the accounts of the Cooperatim and its wholly owned subsidiary, Curt!s
, Tek communications. Inc. (CTI). All intercompany balances and transactions between the Cooperative and CTl have been ,
- i ' . eliminated. -
Deprt clation: Depreciation is provided based on the straight-line method at rates which are designed to amortize the original cost of properties over their estimated useful lives and includes a provision for the cost of removal and decommissioning of the properties. The provision for depreciation averaged 3Rt of depreciable plant balances for 1988 and 1987. Income Taxes: The Cooperative is exempt from federal and state income taxes and, accordingly, no provision for such taxes is reflected in
- the consolidated fmancial statements.
Allowance forFunds Used During Construction: Allowance for funds used during construction represents the cost of external and internal funds used for construction purposes and is capitalized as a component of ek'etric plant. The amount of such allowance is determined by applying a rate to certain ch ctric plant additions under construction. The rates used varied from 7.I'% to 8.5't in 1988 and from 7.0't to 8.I'% in 1987, depending on the source of funds. Pmperty Additions:
. The cost of renewals and betterments of units of pmperty (as distinguished from minor items of property) is charged to ekictric phmt accounts. The cost of units of property retired, sold or otherwise disposed of, phis removal costs, less sahage, is charged to accumulated depreciation. No profit or loss is recognized in connection with ordinary retirements of property units.
Maintenance and repair costs and replacement and renewal of minor items of property are charged to operating expenses. Investments: Investments consist primarily of commercial paper and government obligations. All investments are recorded at the lower of aggregate cost or quoted market value. The carrying value of the investments is adjusted for amortization of premiums and accretion of discounts. Supplemental Cash Flow Information During 1988, the Cooperatlw paid interest of $21,059,000. Reclassificathms: Certain 1987 anmunts in the accompanying consolidated financial statements have been reclassified to conform to the 1988 presemation. These reclassifications haw no effect on previously reported net margin or patronage capital. (2) Lsmg-Tenn Obligations. long-term obligations at December 31 consist of the following (in thousanels): 1988 1987 REA Obligations,2% . . . . .. 8 67,764 $ 72.537 REA Obligations,5% . . . .. . 32,798 33,400 FFil Obligations,7.5% to 10Rt . . . . 223,938 226.511 NRUCFC Obligations,9.5% , .. . , ,- . .., 6,116 6,477 City of Almg Wisec>nsin, pollution Omtrolikmds: Fixed rate (6.38.Tt) . . . . 'I1,315 11,620 Adjustable rate (6.18% at Decemben 31.1988). ... . . 13,900 13.000 City of La Crosse, Wisconsin, Industrial Development Revenue Bonds, adjustable rate (6.18% at December 31,1988) 4,160 4,160 Capitalized lease obligations. principally at implicit interest rates of 7't, due in varying amounts to 1995 . 4,206 4.714 364,197 372,319 Irss - Current maturitk s . (8,944) (8,614) Totallong-term obligations . . . . ., $355,253 $363.705
L Long-term olnigations to the REA are payable in equal quarterly principal and intwest installments through 2015. Principal ; repayments on the long-term obligation to the Federal Financing Ilank (FF3) extend through 2021. Principal and interest i payments on the National Rural Utilities C<mperative Finance Corporation (NRUCPC) obligations are payable quarterly through .' ; 1999. The fixed rate Pollution Control Ikands are payable in increa.*ing annual amounts through 2008. . l The acUustable rate Pollution Control and Industrial Development Revenue Ilonds mature in 2015 unless previously called ! for redemption. Ilank letters of credit aggregating $19,000,000 which terminate in February 1991 have i een issued on behalf of the Cooperative to the trustee to provide funds for, payment of principal of any such lxmds to be redeemed or repurchased prior , to that date. Accordingly, the entire principal amount of these bonds is classified as long-term obligations. ! Substantially all of the Cooperative's assets are pledged as collateral for these obligations. The Cooperative is requ! red to and ' has maintained certain financial ratios related to earnings and liquidity in accordance witn the covenants of its loan agreements. Maturities of the Coo, perative's long-term obligations are as follows (in thousands): Year Amount 1990 . . . . .. . , , . . . .. . .. $ 9,343 - 1991 , .... . . .. . . ., .. . . ... .. ... . 9,630 1992 . . .. .. . .. .. . . . .. .. 10,008 . 1993 . .. . . ... ...., . .. 10,396 . Thereafter , . , . . .. .. . . . . .. . .. 315,876 ; Total . . . ... . .. . . . . . .. . $355.253 l (3) Ihes of Credit- l To provide interim financing, the Cooperative has arranged lines of credit aggregating approximately $25.4 milhon, ! principally through NRUCFC. Ilorrowings are at a rate no greater than prime plus 1% and were not significant in either 1988 or 1987. Compensating balance requirements or fees relatieg to the lines of credit are not significant. While the lines of credit expire ; in May 1989, the Cooperative believes it will renew then. l The Cooperative also allows member cooperatives to prepay their power bills and pays interest on these prepayments based on current short term borrowing rates. Interest expense on member cooperative advances ($1,008,000 in 1988 and $877,000 in l 1987) has been included in interest expense while interest income carned by the Cooperative on prepayments ($1,077,000 in i 1988 and $881.000 in 1987) is reflected as nonoperating margin. ! (4) Retimment of Capital Cmdits- l The Cooperative board of dirretors has adopted a policy of retirire capital credits allocated to members on a "first-in, first- l out" basis so that at all times the Cooperative will n(st retain as patronagespital any capital contributed or deposited more , tban 20 years prior to theecurrent yean Accordingly,the 1968 and 1967 capital credits were retired in 1988 and 1987, ! respectively. Implementation of this policy is subject to annual review and approval by the board of directors and the REA, and l no cash retirements are to be made . hich would impair the financial condition of the Cooperative or violate any terms of its l agreements. (5) Shand Transmisshm Agreements- ; The Cooperative has entered into shared. transmission agreements with the Southern Minnesota Municipal Power Agency ,j (SMMPA) and the Western Wisconsin Municipal Power Group (W%NPG) which provide SMMpA and WWMPG use of the ! Cooperatiw-owned transmission system to deliwr power and energy requirements to SMMPA and WWMPG members in the l Cooperatiwk electric service area for a perhid of 50 years. Payments received from SMMPA and WWMPG for use of the ( Cooperative transmission system are reflected as deferred credits and are being amortized to operations over the terms of the related agreements. The Cooperative may be entitled to further payments cepending on the investment in, and joint use of, the I system. (6) Commitments and Contingencies-The Cooperative has been named a defendant in several lawsuits and claims, primarily related to construction and operation ofits electric plant. Although the outcome of1hese matters cannot be determined at the present time, mamagement and legal counsel believe these actions can be successfully defended or resolwd without a material efTect on Ihe financial ! position of the Cooperative. (7) Construction- ; The Cooperative % 1989 estimated construction program is $28 million. Financing of construction is expected to be provided by borrowings from the FW and funds generated internally. (8) Pension Plan-Pension benefits for substantially all employees are provided through par *icipation in the National Rural Electric > Cooperative Association (NRECA) Retirement and Security Program. C<mtributions are determined in accordance with the provisions of the program and are based on salaries, as defined, of each participant. NRECA declared a moratorium on plan contributions effectiw July 1.1987 through December 31,1989, and accordingly, pension expense was reduced or substantially i eliminated in 1987 and 1988. As of December 31.1985, the date of the last available actuarial valuation, net asets of the plan exceeded the actuarial present value of accumulated plan benefits. Effective January 1,1986, the Cooperative adopted an amendment to the pension plan which reduced the normal retirement age from 05 to 62. This amendment resulted in the creation of a liability for unfunded prior service cost of $2,407,000, the unpaid portion of which is included in deferred credits. A deferred charge of the same amount was recorded to reflect the j expected recovery ofIhis amount from future customers. During 1988, the Cooperatiwh board r,f directors passed a reso!ution prewnting the Cooperative from affecting service rates charged Io members to recowr the unfunded prior service cost. Accordingly, $2.289.000 was charged to ex pense as an other dedoction in 1988 to reflect Ihe elimination of this defers ed charge. 23 '. ' ,
l
, . (9) Fiber Optics Venture-The Cooperative's wholly owned subsidiary, C'll, owns a 31 frt partnership interest in Norlight, a venture with three other partners to own and operate a Dber optics network in the Upper Mit west.
Prior to 1987, losses incurred by Crl (principally due to recognit, m of its proportionate share of NorLight losses) and payments receked by the Cooperative from NorLight for use of the Cooperative's right-of way were deferred based on a board of directors' resolution to allow recovery of such deferrals through future service rates. As a reault of a resolution adopted by its members during 1987 which effectively prohibits future service rate increases as a result of losses of CTI, the Cooperative ceased the policy of deferring CTI losses and charged all previously deferred amounts to expense. In addition, in recognition of developments in the fiber optics industry, the carrying value of Crfs investment in NorLight was reduced to reflect Crrs proportionate interest in the estimated current value of the NorLight venture. The effect of the above actions was to reduce 1987 margins by $5B million. During 1988, Crl made additional capital contributions to NorLight of $1000,000 and purchased an additional 8.Pt interest in NorLight from a former partner for $84,tKK). Crrs share of NorLight losses for 1988 was approximately $1,063fX)0. During 1087, CTI made capital contributions to NorLight of $2.250,000. In November 1987, Crt assigned its interest in NorLight to a bank as collateral securing NorLight's financing. Based upon information currently available, the Cooperative expects to continue its involvement in the NorLight "enture and to be able to recover the carrying value of its investment either through operations of NorLight or divestiture of its ownership interest. (10) Nuclear Reactor. The La Crosse lloiling Water Nuclear Reactor (IACHWit) was voluntarily remowd fron service by the Cooperatiw effectiw April 30,1987. The intent was to termmate operation of the reactor and a ' possession ciliy" heense was obtained from the Nuclear Regulatory Commission in August 1987. '!he facility is being phaced in a " safe storage" status and will remain so until the year 2010 to 2M 4 at which time decommissioning will be completed. All LACHWR-related property, construction work-in-
' progress,. inventories and nuclear fuel totaling $18.4 million was transferred to a deferred charge in 1987 and is being amortized to operating expense over n ten-year period ending in 1997 with appropriate recognition in rates charged to members for electric service.
The provision for depreciation includes $2.1 millbn in 1988 and $1.8 million in 1987 to provide for the estimated costs of decommissioning the nuclear generating facility; however, the manner of decomraicioning the facility has net been determined. The Cooperative continues to review its decommissioning cost estimates and exp* cts that any increases in such costs will be recovered through futurc rates. The Cooperatlw has adopted a policy of fundmg decommissioning costs currently and the related investments are included in investments in the consolidated balance sheets, while the decommissioning reserve of $11.5 million is included in accumulated depreciation Report ofIndependent Public Accountants To the Members and the Board of Directors, Dairvland Pow er Cooperative: We have audited t he accompanying consolidated balance sheets of DAIRYLAND POWER COOPERATIVE (a Wisconsin cooperative) AND Sl'HSIDIARY as of December 31,1988 and 1987, and the related consolidated statements of revenues, expenses and patronage capital and cash flows for the years then ended. These financial statements av t he responsibility of the Cooperative's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards recluire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ut n:aterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosure in t he financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating Ihe overall financial statement presentation. We believe t hat our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly,in all u,: terial respects, the financial positior, of Dairyland Power Cooperative and Subsidialy as of December 31, 1988 and 1987, and the results of their operations and their cash flows for the years then ended in conformity with generally accepted accounting principles. ARTHl'R ANDERSEN & CO. Minneapolis. M m nesot a. March 2,1989. s 24
Statistical Comparative Summary UNAUDITED December 31, 1988 1987 Revenue Class A Member Power Sales . $120,307,019 $120,116.269 Class C, D, & E Member Power Sales . . 35,519,060 31,647,798 Otler Sales ., . . 676,101 788.878 Total Revenue . . $156,502,180 $152.552,945 Net Generating Plant Capability- kW . 986,000 1,047,930 Kilowatt IIour Output Net (000 Omitted) i Steam Generation . 3,925,730 3,639,331 Nuclear Generation . 0 129,060 Ilydro Generation . 36,600 33,214 Diesel Generation . . 0 0 Purchased Power 630,011 402.627 Total , , 4,592,341 4.204.232 Kilowatt-llour Sales (000 Omitted) To Class A Members 2,865,949 2,697,452 To Class C, D, & E Members , . 1,565,045 1,315,971 Total . 4,430,994 4,013,423 Average kWh Cost To Member Systems Gross (Hefore Margins) $0.04198 $0.04453 Net ( After Margins) . 80.03989 $0.04347 Number of Member Consumers (Average During Year) . 178,628 176,323 Full Time Employees ( Average During Year) . 687 668 Utility Plant At Cost ! Electric Plant In Service 5497.308,267 $491.803,345 Construction in Progress . . 19,563,196 7,634,089 i Total Electric Plant .
$516,871,463 $499,437,434 Accumulated Depreciation and Amortization (216,469,251) (202,653,378) l Depreciated Cost of Plant .. $300,402,212 $296,784.056 Investment At Cost l Per Consumer . $ 1,682 $ 1,683 l Per Member System . .. . $ 10 358,697 $ 10,233,933 Total Assets . $487,523,605 $486,181,784 Transmission Line Miles of 34.5 kV 241/e6 247.73 Miles of 60 kV 2,448.24 2,447.81 Miles of 161 kV 581.97 _ f>83.84 Total Miles . 3,271.87 3,279.38 Distribution Substations 275 272 Member System Substations Demand Maximum kW 506,928 522.940 Member System Annual Load Factor - % 57.1% 58.07, kWh Monthly Consumer Use 1,337 1,275 CoalIlurned (Tons) 2,199,957 2,653,fi95 Coal Cost Per Ton Burned Ilarged Coal $31.87 $34.30 Unit Train . $24.49 $25.14
I Comparative Sales to Member Cooperatives For The Years Ending December 31,1988 and 1987 UNAUDITED Average
. Class A Number of Member Consumers kWh Billed Rewnue Cooperatives 1988 1987 1988 1987 1988 1987 WISCONSIN Barron . .. . .., .. 11,845 11,678 214,471,782 199,166,290 $ 7,941,405 $ 7,874,856 Bayfield .. . 5,948 5,831 52,307,114 46,243,402 2,184,087 2,137,373 BufTalo .. . .. .. . 3,479 3,460 67,230,147 62,302,839 2,812,615 2,780,632 Chippewa Valley . 5,014 4,939 74,587,990 70,597,033 3,117,453 3,148,126 Clark .. . 6,712 Ofi44 124,028,844 118,065,842 5,362,951 5,412,679 Crawford . . ... 2,943 2,900 42,089,416 40,285,964- 1,822,745 1,819,164 Dunn 5,976 5,904 110,254,124 101,523,170 4,785,005 4,692,110 l- ..
1%u Claire .. . 7,318 7,224 110,897,024 107,330,230 4,934,630 5,020,274 Grant . . .. 5,096 5,068 115,091,524 112,476,547 4,997,147 5,085,797 Jackson . . . . 4,699 4,636 72,297,924 68,717,867 2,751,563 2,776,121 Jump River . . . . .. 6,051 5,921 61,356,430 57,818,756 2,549,346 2,552,797 Lafayette . 2,15T, 2,216 49,774,393 48,932,600 2,295,822 2,346,899 Oakdale .. 10,583 10,321 129,120,203 116,811,074 5,296,127 5,153,700 Pierce-Pepin 4,896 4,849 86,661,956 80,057,791 3,514,665 3,462,030 Polk-Burnett . 13,446 13,195 129,855,317 119,597,922 5,355,455 5,240,030 Price . 6,413 6,346 47,286,905 44,543,523 1,961,182 1,951,370 Richland . ... . 2,933 2,918 43,376,357 41,192,310 1,856,571 1,898,872 St. Croix . . . . . 4,909 4,792 102,690,802 95,896,362 4,464,171 4,404,931' Taylor . . . . 3,081 3,026 50,643,085 48,307,577 2,126,891 2,128,427 Trempealeau . 7,195 7,103 119,759,510 112,324,582 5,059,436 5,035,501 Vernon . .. 7,800 7.721 127,611,042 120.329.259 5,578,973 5,53333 Total Wisconsin . . . . 128,472 126,692 1,931,391,889 1,812,521,030 $ 80,768,240 $ 80,454,022 ILLINOIS Jo-Carroll ... 4,327 4,192 64,203,547 59,857,293 2,819,026 2,787,479 MINNESOTA Freeborn-Mower . . 5,448 5,445 115,881,066 112,633,623 $ 4,808 340 $ 4,857,672 People's . . . . .. 11,428 11,217 189,239,541 175,570,781 7,723,995 7,667,770 Tri-County . . . .. . 10,599 10,485 235,454,312 222,999,453 9,781,994 9,839.194 Total Minnesota . . 27,475 27,147 540,574,919 511,203,857 $ 22,314,929 $ 22,364,636 IOWA Allamakee-Clayton 7,751 7,684 119,179,328 112,942,723 $ 5,257,932 .$ 5,240,473 Cedar Valley 2,821 2,831 57,849,037 54,723,423 2,395,245 2,393,038 Ilawkeye . 5,718 5,706 113,016,214 108,357,251 5,077,012 5,191,356 Winnebago 2,064 2,071 39,733,565 37,846,845 1,674,635 1,685,265 Total Iowa 18,354 18,292 329,778,144 313,870,242 $ 14,404,824 $ 14,510,132 TOTALS. . 178,628 176,323 2,865,948,499 2,697,452,422 $120,307,019 $120,116,269 2t1
The Members of the Dairyland Power System CIASS A MEMBElts ~40 WISCONSIN
- 1. Rarnm Electric DmperatJw / Ilarrun #
- 2. lleytleid Electric Dmperatiw, Inc. / Iron Inver
' 3. ButTalo Electric Omperatsw / Alma
- 4. Chippewa Valley Electric Omgwradve / Cornell
- 5. Clcrk Electric toolwrative / Greenwood g d
- 6. Crawfon! Electric GioM rative / Gays Mdip l . mm men
- 7. DtMn County Electric Omlerative / Menomunie N. Eau Claire Electric Q>uperadve / FallCreek ,,,,,,,,
- 9. Grant Electric Omgwrative / Lancaster ba'" 2
- 10. JacNmm Electric OmperatJve / lilack Inver Falls l
- 11. Jump IOver Electric Onyeradve,Inc, / ladysmith
' 12. Lafayette Electric Gmperatlw / Dartmgton
( **""F
- 13. Oakdale ';lectric Omiwetiw / Oakdale 1
- 14. Pierce Pepin Electric Cooperative / Ellswnrth
- 15. Polk-Humett Dectric Qmperattw / Centuria IG. Price I:lectric Omtwrative. Inc. / Phillym I -
ll "
- 17. Richland Electric Omperative / luchland Center
!N. Mt. Omix County Electric Dmperative / thddwin /
4 P M '"'" J 16
- 19. Taylor Omnty 1:lertric Omperative / Medford
[
- 20. Tiempealcau ElectricQmperative / Arcadia
- 21. Vernon Electric Omperative / Whtby lOWA j b 15 i[ i -
- 22. Allamakee Clayton Electric Gmperattw, Inc. / lbstville l
7 ,,,,,,, \ "~ f ";""" ll--
- 21 Cedar Valley Electric Gmgeratiw / Mt Anngar ,c,,,, ,
.a m ao
- 24. Hawheye Trifeunty Electric Camperative / Creuro
- 25. Winnetmgo Rural Electric Omperative Annociation / Thompum j oaana d """'{ ^
MINNESOTA I I - 19
- 26. I'rcelmrn Mower Electric Cooperattw / A11.crt 1.ca m 'a*
- 27. People'n Dmperative Power Annociation / linchester e
#" 4 h ' " * " "
2N. Tri Omnty Electric Omjwrattw / Ilushford d jg i g
~
IILINOIS y
- 29. Jo Carmll Electric Qwywratlw, Inc. / Eliadeth '"L.,,,,,l ,,,o ,
5 CIASN B MEMBERS j , Adamn-Odumbia Electric Omperatlw / Friendship,Wiwonnin Central Wincemnin Electric Qaywrative / Inla. Hk'unsin 1 7 --,,) * * '""g
" 8 "*"O
.eus.onvu I / i,, c.
r } Octmto Dectric Qwyeratiw e f Oronto Falla Winconnin Rock Omnty Dertric Quyeradw Annunciation ,,, od
.luienville. Winonnsin *%**% j4 ~~
[4 %, W qu'U V"1 A. I_i [k. f L Wannhara Dectric Omswratlw , sua -t Waut oma, H laconsin o.**= ' v 10 ~ ~ CIASS C MEMBEltS m Conjerntive Ivwer pe" sin 3 /ecama l au; -a bien Prairie, Mmnennt" Mlunh..ta Power Omperative, Inc. ,,,,,,,,,,I 12 7 f 20*j- via Grund Furks. North Dakota **==
- 1 3 Onited Power Ammictation -
Elk lawr, Mmnesntu CIASS 9 MEMBEitS - dgpQq W ^ )[ gIy> j3'\ S d'H un-sapaa - City of Arcadia, M isennnn Village of Argyle.Wlse insm
, , , . , , N'[ /- au=*oan
- 28 aq i Cit 3 a.f Aunfin, Mme.enta
,,,,g, g "**' e n====
! J City of Harmn. Wbronsin , 2 l , ,,,,,,
l City of Ilknendsg Prairie, Mintu'sota ' d, nre ,ia mes r""""*s Village of Cunhton, Rh onsin J City of Cumtwrland, Wawonsin
- 20 23 .,
'" M"- .
City of Elmy, Wigronnin ,,,,,,,,, e-. h s' mu.ax om.m . 24 7 j7 Cit 3 of Pennimore.Wisconxm
,' y j , , , , ; y, City of Forent Cit 3, Iowa jgnng === . - -
g ma. aP""*
%d City ofIm Farge, Wmennsin City of Lake Mills, inwa Oty of lanentmm, Mmnennta a==== c
-b y,(,a o==
p .-/'""' Villase of Merrillan, Wisconsm City of New !.lainen. Wia.cnnsin
. cm U
. ,wyn a
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$1 r at n, I n City nf Itichland Center, We*consin ,
City of Riwr l'alin. Wmronsui e ,' 1
"'."" 12 "'-
l City of Rochenter, Mmnesota ~ l femthern Mimenota Municipal Power Agency / Ikhester. Mimmunta """ '" l Village of Viola, Wisconsin N 1 / CIASS E MEMBERS 1nterwtate Power Comgany / Ilubuque,Inwu \, o. Minnenota Power / Ouluth, Mmnennia s Northern Ntaten Power Comimny-Minnesota / Mmncupolin. Mammanta i. Northern Ntaten Power Compa WWinconnin / Eau Claire W6wonsin ! suammem Northwestern Public hervice Q mpany / Ituron, South Dakotn - Northwestern Winconaln Electric Omymny / Frederic, Wm nusin c Winconsin Power & IJght / Madinon, % meonnin _bIl O.___
, Consolidated Balance Sheet of Dairyland Power and 1 Member Distribution Cooperatives 4
! UNAUDITED Asfeets Current & Distribution Total Accum. i rov. Net invest, in Other Accrued Total Cmq>eratives Utility for Depr, Utility Assoc, Org, Property Assets & Assets & finns 'A" Member Plant & Amort. Plant Pat. Capital & Invest. Def. Dobit s Other De bits
~; 'IS00NSIN Ilarron , ,, $ 21,020,757 r>,671,552 15,349205 4,580,033 901,039 1,509,695 22,339.972 Baylield . .. 15,383,959 4,823,084 10,560,875 1,102,093 435,257 1,561,109 13,659,334 Iluffalo .. 6,345,828 1,913,322 4,432,500 1,856,039 284,817 1,338,095 7,911,497 Chippewa Valley ,, DA68,841 2J)05.409 7,463,432 2,023,699 441,953 2,152,505 12,081,589 Clark ,, , , 11,498,661 3,263,584 N,23r>,077 3.358,000 734,056 3,035,962 15,363,995 Crawford , 4,164,442 1,325,021 2.839,421 1,188,159 207.726 796,611 5.031,917 Dunn , , 10,306,465 3,552,939 6,753,520 2,841,249 727,080 2.607,353 12,929,214 Eau Claire . 14,914,726 3,218,344 11,696,382 2,tK)6,260 477,r,83 1,968,737 17,048,962 Grant , .. , 8,965,001 3,lr>5,910 5,809J)91 3,291,521 444.538 2.827,349 12,372A99 Jackson , , 10,423,708 2,905,780 7,517,928 1,681,1 r,8 613,558 1,263/i43 11,076.287 Jump River . . ,, 13,256,799 2.777,022 10,479.777 1,657,101 494,400 1Ji41,276 14,272,554 Lafayette . 5J135,803 1,834,859 3,800,944 1,r>82,280 245,832 497,136 6,126,192 Oakdale , ,, ,, 17,398,683 4,998,035 12,400,648 3,425,424 759,793 3,245,390 19,831,255 Pierce-Pepin , , 10,175,449 2,747,468 7,427,981 2,589,183 400,046 1,782,355 12.205,r>65 Polk-Burnett , 20,035,918 5A68,464 14,567,454 3,165,222 696,985 4,028,474 22A58,135 Price , 13,203,480 3,937,583 9,265,897 914,373 381,091 811,835 11,373,196 Richland ,,, 6,277,836 1,r>74,604 4,703,232 1,257,259 275,385 961.107 7,196,983 8t. Croix . ,, , 10,374,496 3,108.352 7,266,144 2,539,830 672,710 1,247,772 11,726.456 Taylor , , 0,100,993 1/157,866 4,449,127 1,314,062 248233 884A00 6,895,822
'Irempealeau , , , 14,213,386 4 AK)5,119 10,208,267 3,199,837 530,655 2,674,010 16,612,769 Vernon , 15,512,371 4.772,341 10,740,030 3,762.379 653228 P,375,8r>6 17,531,493
$244fi83,602 68,716,657 175,966,945 50,236,061 10.631,971 39,210,670 276,045,M6 IlllNOIS Jo-Carroll , , $ 12/ Mil,472 2,976fi89 9.084,783 1,653,646 336,136 868,538 11,943,103 MINNESOTA Freeborn-Mower , $ 14,481,207 4,397,180 10,084,027 3.450,136 1,720,580 1,1Ni8,477 17,223.220 People's , , , 23,019,316 7,522282 15A97,034 4 S32,249 864.734 3.028E31 24,022,M8 Tri County , 23,386,323 5402.126 17,984.197 6,250.265 884.450 3,lr>3A20 28272,332
$ 60,886,846 17,321,588 43,565,258 14,332,650 3A69,764 8,150,528 69,518200 IOWA Allamakee-Clayton , $ Ir>A15.970 4,641 A61 10,774,509 3A20,700 852,988 1,914,384 16,962,641 Cedar Valley , 7,685,912 2,177,666 5,508,246 1,834,101 401,558 1,882,232 9,626,137 llawkeye 11,257,367 3,778,"47 7,479.020 3224,623 160,302 2A37,063 13,3014)08 Winaebago 3 M S,771 1,723,445 1,822.326 1 A69.669 234 443 926.782 4 AT>3,220
$ 37,905.020 12,320S19 25584.101 10.049,153 IS51,291 7.158A61 44,443206 Total Distribution . $355,ri36,940 101,335,853 2M,201,087 76271,r>10 16,089,161 r>5,390,197 401,949,955 Dairyland Power , $516,871 A6'( 216,469,251 300A02212 - 60.050,257 127,071,136 487,T>23A05 Tota' Distribution &
Dalryland $871,408,403 317,805.104 553M03,299 76,271,510 77,139A 17 182,459,333 889A73,ri60 Dalryland Patronage Capital , - - - (73494,149') - - (73,494,149) 04msolidated $871 A08,403 317,805,104 fir >3h03,290 2.777,361 77.139,417 182.459,333 815.979 411
December 31,1988 Llibilities and Other Credits Def. l'at Cap & Non- Other Total long Current & Credits Operating Operating Margins & Margins & Term Accrued & Misc. Total Memin rships Margins Margins %)uities Equities Debt Liabilities Oper Ilesv. Liabilities
- 8,379,076 169JKi3 333,900 8,882,039 11,973,307 1,345,305 139,321 22,339,972 28,47T) 2,379,760 146,242 14,063 2,568,540 10,300,592 569,7N 220,439 13,659,331 0,4 ">7 4,ZH7,103 72,469 137.901 4.506.930 2,993,915 407,363 3,249 7,911,457 23,891 5,205,011 94,495 13.299 5,336,696 6,200,367 489,634 54,892 .12,081,r>89 28,085 12,188,587 172.936 40,770 12.430.378 1,691,923 1,207,270 34.424 I ri.36b)D5 12,925 2,667,232 37,905 7,57h 2,725,G11 2,007,r>26 298,735 15 5,03),917 32,652 8.465,743 469,208 314.46T> 9,282,068 2,7Gl198 638,310 244,638 12,929,214 95,635 6,r>28,421 45,814 175,126 6.844,997 9,239,455 937,305 27,200 17,048.962 26,360 8,046.302 1f R1,769 184,750 8,454,181 3,257,963 628.132 32,223 12,372,499 22,069 5,423,000 - 3,399 ri,448.r>28 4,422,847 1,152,068 52.844 I l.076,287 66,115 3.942,646 96,811 - 4,105,572 9,179.737 892,2 t ri 95,030 14 172.554 16.179 4.018S07 51,448 - 4,115,634 1,606,463 324.571 79,524 26,192 60,299 10,039.888 -
13.611 10.I13,798 8,738,676 963,292 15,489 i ;I,255 39.671 Ti,912,493 43Ji10 38,062 6,033,816 5,280.292 754,128 137,304 12,205.565
- 9,387,417 99,358 - 9,486,775 11,369.072 1,435,956 165,r>32 22.458,135 30.015 2,412,067 - 4,721 2,476,803 8.241,539 404.675 250,179 11,373,196 14,155 2,994.611 49,371 - 3,058.337 3 586,527 487,853 64,466 4,196,983 23,205 5,226,482 72,318 134,120 5,456,125 5,523,074 717,026 30.231 11,726,456 9,300 2,982,228 52,306 41,980 3.085.814 3,384,436 415Ji93 9,879 6,895,822 12,764 7,441,240 155,688 136,345 7,749,037 6,429,342 2.420,074 14,316 16,612,769 33.430 8,775,!53 111,725 199,663 9,119,971 7,433 085 932.559 45S78 17.531,493 584,682 126,765.528 2.137,536 1,710,7T>3 131,281 A99 125.625,136 17,421.927 1,717,084 276S45fi46 23.665 4,741,997 30.670 118.922 4.915,254 6.221,982 558,866 247j)01 11,943,103 9,676 p.278.771 320,056 351,468 0,959,971 6,929.826 281,340 52,083 17,223,220 49,760 10,868.359 1r&l08 302,879 11,377,446 10S21,518 1,588.608 135,026 24,022,G18 18,040 18.607.971 57Fi,950 267.835 19,469,796 7,324.536 I A27,408 50,592 28,272.332 77,476 38,7T 5.101 1,052,504 922,142 40,807.263 2,5,175.880 3,297,356 237,701 69,518,200 38.695 7,855,936 364,702 - 8.259,334 7.620,953 999,472 82,882 16,962,641 12,445 3,248,054 164,786 ,64,3G1 4,189fi49 4.947,600 446,393 42,495 9,626.137 30,260 9,672,002 280,325 385,095 10,368,282 2,225.653 657,538 49,535 13.301/108 11,500 4.487,314 - - 4,498.814 17,936 36,470 - 4.r>53,220 92S00 25,263.906 809,813 1,1,?9.459 27,316,079 14.812,l 42 2,139,873 174,9l 2 44,443JK16 778,723 195,526,532 4,030,523 3,9P4,316 204,320,095 171,835,140 23,418,021 2,376,699 401,949,955 10.327 73A91.149 - -
73 Tot.476 355.253,052 38Ji68.891 20,097,186 487,523/ioS 789.0",0 260 020,681 4,030,523 3S84,316 277.824,571 527,088.192 62,086.912 22A73,88.5 889,473,'60
- ( 73,4fLI,149 ) - -
(73.491.149) - - - (73,494.149) 789,050 195.526,532 4.030,522 3,984.316 204.330.422 527.088.192 62.086.910 22,473,885 815.979,411
Consolid" ted Statement of Revenues & Expenses of Dairyland Power - and Member Distribution Cooperatives UNAUDITED v
. DlAribution Operating Cost of Consumer Cooperatives Erv.& Pat. Purchased Distribution Expense Accounts Salee Chuis "A" Member Capital Operations Operations Maintenance Expense Expense WISCONSIN y llarron . . ......., . ... .. $12,027,439 7,941,407 140,414 433,241 397,252 --
Itylield .. . , , ... . .. ...., .... . 4,470,622 2,l M,086 62/183 420,054 202,462 - .I IlulTalo . . . , ... . . . . . ... 4,056,127 2,812,615 111,857 115,588 134,724 - 4 Chippewa Valh y .. .. .. . .. ..... . 5,015.604 3,117,451 79,576 191,851 155,037 - Clark.... ,, .. .... . .. .. 7f>47,384 5,366,031 189 fig 9 243,605 201,168 9,704 Crawford , ,, , , ... .. . . . ,, 2.808,041 1,822.744 55,435 160,612 ' 121/W19 ' l /Wi - Dunn .. , ,, , . .. .. .. 6,605,317 4,785,005 152,451 274,719 120,530 10,539 thu Claire , ,, . . .. . .. . . . 7,ril6,286 4,934/i32 Ifi7,076 359,921 276,395 19,755
. Grant . . , . ,, . . . .. 6,907,415 4,997,147 228,433 228,121 203,078 13,756 Jacksam . . .. ... ... , 4,74rs,083 2,751,563 103,898 229,347 261,700 -
Jump lher . . . . .. ... ,, 5,0r>7,267 2,548,716 216,115 373,r>74 194,597 54,029 Lafayette . . . . .. . . .. . . 3,528,326 2,295,822 56,856 286,894 90,379 -
' Oakdale . . , . .. .. . 9,426,998 5,296,127 383,713 43ri,285 592,270 -
Pierce Pepin . . .... . . 5.594,524 3,510,927 113,572 324,119 176,487 87,675 Polk-Ilurnett . . . .. . . 9,095.r>53 5,355,698 276,344 571,950 379,569 23,5t>7 Price . .... . . .. ... . . 3,770,823 1,961,181 53,414 251,461 136,592 15,340 Richland .. .. . .. .. ., 2,912,712 1,855,213 97,479 151,9t>0 fm,341 - St. Croix . . . . . .... . .. . . 6,261,449 4,464,170 99,733 238,r>27 168,050 .- Taylor . . , , .... . .. .. . 3,301,775 2,126,890 74,404 140,944 93,724 28,100 Trempealeau . .... . .. . 7,910,299 5,05T>,345 317,933 360,650 379,520 - I Vernam .. . . , . ... . .. . .., . 8,1N.140 5,575.640 308,052 376,426 268.83r> 13.271
$126,813,184 80,758,410 3,289,107 6,168 839 4,6r>3,379 277,437 ILLINOIS g Jo-Carroll . . . ... ., . ,, . . . $ 4,975,080 2,821,345 107,920 321,190 185,919 - l MINNESOTA ]
Pn eborn-Mower . . . . . . .. $ 7,375,388 4,803,581 234,312 311,370 113,770 185,884 i People's . . . , . . . .. . ,, 11,45(i,732 7,724,431 308,385 (185,278 359,779 8,685 Tri-County . . .. . . 14.434,471 0,786.677 4r>1,809 724.679 291,025 137,166 j 4
$ 33,266,591 22,314,689 994,r:06 1,721,327 764.574 331,735 i 10WA
$ 8268,80'l Allamakee Clayton .. . . 5,257.932 367,3N 462,609 306,91(*
CedarValley . . . . .. ... ... 3,768,401 2,395,245 53,878 147,179 102,360 80,134 Itawkeye . . . . . ,, . 7,176,618 r>,077,358 148,498 3fi3,501 201,592 2,638 Winnebago . .. 2.626.985 1,674,721 143,333 104 r>30 58,420 21,702
$ 21,840,807 14.405.256 713,0g 1,077,819 6(19.288 104,474 i Total Distribution . .,, , . $186,895t>62 120,2rr9,700 r>,104,546 9,289,175 11.273,160 713,M6 ;
Dahyland ibwer . . . .
$156,502.180 9,370,529 73,883.410 11,185Mi5 -
626.514 Total Distribution & Dairyland . . $343,397,842 129,670,229 78,987,956 20,475,140 0,273,160 1,340,160 Interevoperathre Ehminations . ($120,307,019) ($120.307,019) - - - - Qinsolidated . , . $223,090.823 9,363.210 78,987,956 20.475,140 6,273,160 1,340,160 I i 30
s s DeC('Illlwr 31,1988 l. 1 Gen,& Artmin.& : .liepr.& Interent Total Utliity Non- Trens~ Net Margin General Amort, Tax; on long Other Operating . Operating Operating Capital & Put runage Expense 1 xpense Expense Term th4st th' ductions Expense Margin - Margin Credits Capital 666,402 546A09 224,604 688,6fi9 1,361 11,040,159~ 987,280 87,05H 394A29 1,469,167 l 34),208 37T>J)32 L 120;lf>3 446,438 113,752 '4,266,068 204,554 37,365 108,877 350,7(Ni 241,820' 165,173 69,325 " '165,641 609 3,817A52 236,775 - 80,197 139,985 J 458,957 324,107 ~ 234,318 98/150 348,18H 3,981 4 452,559. 463JM5 ' 109,809 154,940 ' 727,794 ; 3(125H3 ' 339,146 120,970 110,495 .1,47H . 6,944,849 702,535 179,459 266,808 lil4HA02 . !
- 19G,102 'JO2S3H 56JMNi -107,176 -- 2/i23,433 184fi08 44,016 90,930 - 319,554 378f193 352,300 lid r>88 168,4M H12 ' 6,35H,211 247,106 239,574 238,093 724,773 f'
.416,802- .566.220 128,H77 461,129 H,407 7,339,214 177,072 - 58,995 245,272 4H1,339 331/i34 257,598 - 114,943 193,162 521 6568,393 330,022 205,982 248,263 793267 '
434,160 285,263 103,346 215fi32 33,823 4,418,732 326,351 4r>,010 136,991 508,355' i 442ji80 343,236 148,086 529/ilie : 6,910 4S57Ar>H 199,709 79,165 126,824 405/iO8 243,162 238,951 65,342 107/19 2,038 3;1H6,493 141,833 51,494 114261 307,588
' 54H,542 502,536 21r>All 494.113 2,072 H,470,169 956,H29 INS 37 ;263,219 J ,4N,685 .
,390,067 280,715 120,268 2H8,464 3,4(Ni 5.296,300 298,224 43fiOO 174,682 516,515 .
615EH) . 537,611 209,782 546,309 7,615 HA23,971 571582 12fi,213 .. 266,210 964,005
' 339,H91 352,966 91/107 340,656 45,455 3h07A63 173,260 32,744 97,511 303A15 233,756 212,825 58,788 200,110 6,467 2,91 r>,929 - (3,217) 59,846 92,127 148,756 294,726 295,711 96,981 343,425 3,789 6J05,112 256,337 92.008 221,941 r>70.286 260,280 lH2,680 64A91 219,155- rg747 3,1fNi,315 105,460 37,319 95,1174 238,453 382,170 472,915 147AH5 366,728 40,049 7,522,895 ~ 387,404 61,371 252,767 701,542 477,367 409,266 1462 N . 434,42H 51140 8,014,919 139,221 138281 277576 555,078 7,922,2HH 7,053,369 2.515/196 6,784,036 293S32 119,716,194 7#98,990 1,992.152 4 f M)7,783 13,098,925 468,907 310S51 102S30 3H9,130 19,370 4,727JNi2 248,018 50,082 139,9H5 43HSHis j 1
510,361 37H,125 84 AID 2 374,439 2,H14 6,999,348 376340 232,896 239,967 848,903 6H3.948 561/10H 2375H5 r>HO,082 14,847 11,176,628 280,104 183,664 346,530 H10,298 634,859 586520 234,176 430,1(Wi 2$56 13.279.663 1,lM,808 131,712 486,3r>7 1,772,877 1,829,16H 1529,253 55ti,453 1,393,717 20,217 31,455S39 1,810A52 548,272 1,072,854 3,432,078 553,300 428,H 82 I r>5,M9 500,402 H,852 H,041,796 227#07 144A83 261,424 633,014 372,224 149,213 73,932 268,785 7,937 3J150,887 117,514 45,740 119,047 282,301 ; i 322fHi2 325,310 105,214 80A86 27,958 6/iM,717 r>21,001 76,201 252,451 850553 263,983 94,761 39,091 572 211 2,401 A24 225.661 49fN)1 H2455 357,217 1,511 A69 - 998,12fi 373,786 H50,435 44.958 20,74H,724 1,092,083 2,123,085 315.525 _ 715l477
'11,731,932 ftH91,399 3,MHA66 9,417,31H 378,177 176A47,619 10,250,043 2,fNNi,032 5,936,100 19,092,175
'10.795,973 17,865.477 6,408,405 24.829,074 3,589534 If>HS M,Hsi (2,052,701) 8.034,951 .
5,982,250 - 22,527,905 27,7t>6,876 9,9r>6,971 34,246,392 US67,711 335,202,500 8,197,342 10,940,983 5,936,100 ' 25S74,42r>
- - - - - (120,307,019) -
- (5,982,250) (ie,982,250) .,
22,527,90ra . 27,756,876 9,956,971 34246,392 3,967,711 214.895,481 H,197.342 10,940,983 (46,150) 19,092,175 ' I l i 1
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