ML20155G479
| ML20155G479 | |
| Person / Time | |
|---|---|
| Site: | Fermi  |
| Issue date: | 12/31/1985 |
| From: | Basel M, Cristell R WOLVERINE POWER SUPPLY COOPERATIVE, INC. (FORMERLY |
| To: | |
| Shared Package | |
| ML20155G478 | List: |
| References | |
| NUDOCS 8605060147 | |
| Download: ML20155G479 (28) | |
Text
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THE COVER CONTENTS Wolvenne's Energy Control Center, located near Cadillac. 1 Financial Highlights Michigan, is a state-of-the-art computerized power dispatch facility. Through the Center's computenzed 2 President & General Manager's Report Supervisory Control and Data Acquisition (SCADA; 4 B ard of Directors system. Wolverine has the capabil: ties to electronically 6 Member Dntr.bution Cooperatives gather, tabulate and evaluate necessary energy data. The 8 Management & Departmental Summary Energy Control Center coordinates power dispatch opera. 8 Finance & Admimstrative Services tions for Wolverine and mumcipal utilities in Grand 9 Power Production Haven. Iowell, Traverse City and Zeeland. 10 Transmisuon. Eng:neenng & Operations 11 Regulatory Affairs 13 Financial Statements ANNUAL MEETING Apnl 23,1986, 9.00 a m. McGuire's Resort & Convention Center FOR INFORMATION Mackinaw Trail Cadi!!ac. Michigan Wnte or Call. Cray A Borr Wolverine Iber Supply Cooperatwe. Inc. 1050 E. Dwision. P. O Box 369 Boyne City. Michyan 49712 (616) 582 6572 Equal Employment Opportunity INDEPENDENT ACCOUNTANTS Coopers & Lybrand Valley Amencan Bank Buildmg South Bend, IN 46601 GENERAL COUNSEL Albert Ernst Dykema. Gossett, Spencer, Goodnow & Trigg 800 Michigan National Tower Lansing. MI 48933
1C85 Finnzclal Highlights ER __LX,4%Q, increase 'Lincrease 1985 1984 (Decrease) (Decrea,e) Assets SSS7.266.691 5837,443.012 549.823.679 5 95 Operat:ng Revenue 50.042.520 50.350.505 (313.985) ( 62) Total Expenses 49.291.380 47.730.677 1.560.703 3 27 Non Operating Margins 764.927 612.340 152,587 24.92 Net Margins 1.516.067 3.308.530 (1.792.469) (54 18) System Peak Demand (MW) 207 195 12 6.15 Energy Sales (MWH) 1.059.853 1.043.530 16.323 1.56 To Member Systems 1.018.294 984.465 33.829 3 43 To Others 41.559 59.065 (17.500) (29 64) Members Revenue per KWH Sold (millsikwh) 46 38 48 16 (1.78) (3 70) Purchased Power Costs (mills /kwh) 30.91 3104 ( 13) ( 42) Total Cost of Electric Service per KWH sold 46 51 45 74 1.17 2 56 Advance Plant Purchased Coal ($/ ton) 50 60 50 39 21 ,42 Full Time Employees 114 111 3 2.70 The Cooperative Wolsenne Power Supply Cooperative. Inc . with headquarters in Boyne City Michigan, n a non profit rural electnc generation and transmission cooperatwe supplying wholesale electric energy to sesen rural electnc distnbution cooperatives serving a total consumer membership exceeding 130.000 in 35 Michigan counties Wolvenne owns and/or operates 165 megawatts of coal bred, natural gas, diesel and hydroelectnc generation in ad dition. Wolvenne is an approximately 15 oercent owner, with the Detroit Edison Company. in the Fermt 2 Nuclear Power Plant near Monroe. M.chigan Fernu 2 is o 1.091 megawatt boiling water reactor which Detroit Edison has scheduled for commercial operation in 1986 Wolvenne also mainta;ns an approximate 15 rnegawatt ownership with Consumers Power Company in the 770 megawatt J H Campbell Urut 3 coal f: red plant located near Grand Haven. Michigan
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t i liut the cha!!cnges we must face together will con-B eyond Expectations in Pursuit of Ex ellence, it requires that we meet the needs of our mem ber distnbution cooperatives - and then some. tinue Wolsenne is part of an industry that faces cha!!enges every day We expect those challenges and The pnnciple by which we have guided Wolvenne during 1985 Wolvenne agam overcame many of them over the past three years wdl continue Wolverinei Dunng 1985. management again expended a signifi f underlying business philosophy will contmue to be " pro- cant amount of tone and resources towards continuing , viding reliable wholesale electric service at the lowest the precedent established in 1983 of stabilaing wholesale l possible cost." power costs We a,e p vawd to report that our joint ef- ( in 1982, we met the cntical challenge of merging forts have been successful two generation and transmission cooperatives into a new Wolvermei financial condition has also become more I and much larger cooperative We believe that Wolverinei stable and November 1985 marg:ns of if>38JXX) performance since that time can speak for itself. Since reprewnted the largest single month of margms in the l the rrerger of Wolverine Dectric Cooperative and hstory of Wolverine Electric Cooperative. Northern l Northern Michigan Dectric Cooperative into Wolverine Mwhityn Electnc Cooperative or Wolserine Pbwer Supply l Power Supply Cooperative, wholesale power costs have Cooperatise i been eut by an average of nearly 15't, and the The continued growth of Wolvenne's seven member cooperative's financial outlook has steadily improved systems has also provided additional ben.f.ts Wolverine l
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members purchased 3 4% more whotesa!e power during vice Commission and Wolvennis member syrems dunng 1985 than dunng 1984 and we are happy to report each this entire rate blending process. 6 of Wohennis member systems contnbuted to this While 1985 was indeed a very challenging year. it increase. was also a year of progress and transition To help meet the contmued growth of Wolvennis Efforts toward one of Wolvennis most visible trinsi-
, member systems, seseral measures were undertaken this tions are airs ady underway Smcc the Board of Directors past year to ensure the contia_ed low cost and rehable has approved the relocation of our corporate head-operation of both generation and transmission facihties quarters from Boyne City to Caddlac. construction will A study of the Advance Steam Plant was undertaken begm this spring on the new 12JXX) square foot head-to analyze future electncal generation alternatives at the quarters buddmg. By moving the entire administrative plant and to determme the feasibthty of upgradmg the function of Wolvennis operation to Caddlac later this plant's generating capablities High cost standby gas con- seat, we feel confident that Wolverine can more fully tracts at Burnips. Hersey and Scottedle were also can- serse the member systems' needs At the present time.
cel!cd and wdl result in savings of approximately we expect to relocate in the new Caddlac headquarters
$382.000 in standby gas charges late this summer The new headquarters facihty wdl be Management was also successful in reachmg a signifi- constructed east of Caddlac and adjacent to Wolvennis cant new amendment to the Wohenne and Consumers Energy Control Center.
Power Company transmission owne ship and operatmg Whde construction on the Energy Control Center agreement This amendment wdl save Wolvennis was completed in 1984. Wolvenne personnel are present-member systems approximately $1 mdhon per year in ly instalhng the center's computer and commumcations transmission wheehng charges and allow Wohenne to use equ:pment and we expect the facihty to be fully opera. its ownership in the Consumers Power transmission tional later this year system for purchased power from other utihties This past year, we were also very pleased that But Wolvermis largest and most cntical cha!!enge Wolvennis apprentice hnemen trammg program received contmues to pose both intenm and long term problems accreditation from the U S Department of Labor. The As a minor:ty owner in the Fermi 2 nuclear power plant. program, which runs for a 3h year penod and includes the contmu:ng problems Detroit Edison has encountered 7.200 hours of class and field work. has been expanded in bring:ng the plant into commercial operation wdl con and now mcludes nearly 30 apprentice hnemen from t;nue to have a d: rect effect upon Wolvenne Wolverme. its member systems and other Michigan elec-During extensive negotiations with Detron Edison inc utiht,es This is the only fully accredited program of. Company senior management this past year. Ae were fered by a rural electnc cooperative in Michigan successful in achievmg an agreement that resolved some It now appears that WoNerme wdl achieve success in of our concems at Fermi 2 and is expected to result in an htigation agamst Canome and Dundee, and their ap-estimated savings of $150 mdhon over the Lfe of the parent neghgence relatmg to Woherinis underwater agreement. transmission cable to Beaser Island A mediator has We are very concemed with Fermi 2 and its eventual rendered a dension m Wolvennis favor in the amount impact on Wokennis wholesale power costs Although of $494.000 - eighty percent of whn h is apportioned to we f:rmly beheve that the agreement achieved in 1985 Canome and the remaming twenty percent to Dundee. will greatly benefit Wohenne, we wdl cont nue to closely We are rnost optimatic that the two defendants wdl ac-mon for the situat;on at Fermi 2 cept the mediator's decision To help offset the challenges presented by Fermi 2. The many successes that WoNenne achieved dunng the Board of Directors has organized a committee whose 1985 must be attnbuted in great measure to the Board of sole parpose is to analyze future fmancial and power Directors, member system rnanagers and our employees supply options. By drawing upon the resources of the We look forward to the;r contmued support m taking l directors and management we are confident in the com. Wolvenne "Beyond Expectations in Pursu:t of Ex-i mittee's abihty to arrive upon several recommendations to cellence" We stand committed to accept whatever analyze iurther. challenges he ahead The challenge of combming wholesale power rates to Wokerir e member 4ystems was aho completed dunng "" Udd ) P" d " "' ca 9 a l 1985 Besinnmg with October 1.1985 power bdhngs. whobsale power costs to each of Wolverinds member
/ Mtw re [AN systems were identical We are thankful for the patience Haymond H Cristell -f7 .
and guidance exhibited by both the Michigan Pubhc See Executive We President and General Manager dg%Lh Jd
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/" . Seated (from left) Me vtn flasel, President,
'< ^ S liennard Carson. Sec retary, standing (from left)
Donald liarmon, Treasurer, William Chapen, Senior Vke Presulent. Directors (y A em l
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iA _ -hake Mehin Basel Wallace Hofman President General I arming Age 64 Self Empkiyed Farmer. Age 59 Wolvenne Dwertur Snce 19%S Wolvenne Drector Since 1975 Oceana Electnc Cooperatwe Duccor Snce 1981 Presque ide Electnc Cooperatne Director Since 1(roS Oceana Electrw Cooperatae Member Snce 1945 Presque isle Electnc Cooperatne Member Snce 1958 Wayne Nordbeck William Chapin Retail Grocer. Age 52 Senor Vre Presadent Wolvenne Director Swe 1984 Daey Farmer. Age 64 Cherryland F, ural Electnc Cooperatne Dtrector S nce 1967 Woherme Director Since 1976 Cherryland Rural Ekonc Cooperatae Member Nnce 1957 Tri County Electnc Cooperatne Director Nnce 1973 Tn County Electrr Cooperatae Member Since 1950 Emma Reinbold Retred Home Econommt. Age 65 Houard Carson Wohenne Director Snce 19M Secretary inp O Whsan Rural Ilectnc Director Snce 1977 Bmidog 0%cial. Age 52 Top O M4hqan Rural Ntnc Member Swe 1949 Wokenne Drector Snce 1977 Tcp O Whgan Rural Ekctnc D: rector Since 1973 Top O Whyan Haral E;ectnc Member Swe 1%0 Edgar Rendn Retaed Manufacturers Agent. Age 6H Wokenne thrector Swe 1978 Donald Harmon Preque 14, flertnc Cooperata, Director Snce 1975 Treasurer Prewuc h:e liectnc Cooperarme Member Nnce 1%2 F ruit Farmer Woherne D: rector Snce 1981 Hunon Seon Westem Whwpn Electne Cmperatxe Direoor Nnce 1%4 Weswrn Wh>gan Ekctnc Cmpcars, MemNr snce 1946 N '"' h "
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Wokerne Director Nnce 1973 0 & A Ele enc Cooperaen,e Ehrector S nce 1967 Fred P. Iolts O & A t lectnc Cooperanse Member Swe 19 94 Dairy Farnwr Age 59 Woherre *> rector S.nce 190 Clare Shull Top O M(hyan Rsral Elecr4 Dreoor 5 me 19%0 Retired Farmer. Age MO Top o Whrpn Rural Ekctrw Member 9me 1945 W,4Nenne Ductor % e 19t>7 O< eana f lectrw Cooperatse Direc tor Nnce 1964 Carl Fortelka Oceana Ntnc Co<>peranse Membn Swe 19M C4 ioe Laecy Propretor. Age 4M Woh erne Dodor Snce 1976 Thomas VanPelt O & A L:ectra. Ompcatn.e Ductor Nnce 197 i Cherry Iarmer. Age 34 0 & A Electnc Coopeatwe Memtvr Nnre 1958 Wohenne D: rector Nnce 19M5 CherryLsnd Rural Electnc Cooperatse Duettor Nnce 1984 Thaddeus Gamel Cherryland Rural E lectre Cooperatne Memt-r Nnt e 1952 Ret: red Do ry Insp. ctor. Age 67 Wokenne D; rector 5 nce 1981 Prevne Ide Ekctra Cooperar+e D>reoor Nnce 1978
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Presque k:e Eleonc Cooperate.e Memtvr %nce 199, Diredors flawl Chapin Carvin. Harmon Willard Haenke Buildmg Committee Retzed Farmer & Carpenter. Age 69 D.recors Carven. I okt iortelka Hac4e Wohenne D: rector Sn e 1967 Tn County L;eorv Cmperane Director sn<e 1947 f.necutive / Polky/ Inng Range Planning Committee Tn County Elecenc Cooperat" e Memrwr %nce 1917 I> rectors Hawl. Chapm. Carson. Harmon Nordhe< k. N ott hil Robert Hasenbank I quity Management Committee Bus Dnver Datry F armer. Age 60 Directors Hawl. Chapin. Carson Harmon. Hawnbank, Reinbokl, Render WoNer ne D rec tor Snce 19dl Western Mehrpn flectnc Cooperara, D, rec tor %ne,1975 Hargaining Unit Compensation Committee Westem Whypn Eleone C.orgwratwe Member %nce 195r, Dirntors Gawel Hoffman, VanPek
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Stated (from leph Philip Cole. Manager . Chernland Rural iIrceric Cooperetter Asen.. Robert l~redersk ern Manager O< rana i Iretrw Cooperature. Kenneth Bumstrad Manager O & A Liectric Cooperatise. Standing (from left) Jack Stkkney. Manager - Western Mu hkaan Ilettrar Cooperatese. Thomas Hanno. Manager Top O'Mkhtgan Rural Liretric Co , Nobert Matheny. Manager - Tri County IIrstrw Cooperates r. A. IlarkIrv Iras4s. Manager Presque Isle Electric Cooperatise.
Mcmber Distrib tion Cooperativa Profilo CfLTISH Cherryland Rural Electric Cooperative Assn. O & A Electric Cooperative Number of Members: 17,589 Number of Members: 24,786
) Miles of Distribution Line: 1,935 Miles of Distribution Line: 3,284 Members / Mile of Line: 9 Members / Mile of Line: 7.5 1985 Kwh Sales: 140,836,475 1985 Kwh Sales: 132,426,292 Operating Revenue: $11,125,000 Operating Revenue: $11,137,431 Employees: 54 Employees: 41 Oc:ana Electric Cooperative Presque Isle Electric Cooperative, Inc.
Number of Members: 8,306 Number of Members: 25,076 Miles of Distribution Line: 1,015 Miles of Distribution Line: 3,696 Members / Mile of Line: 8.2 Members / Mile of Line: 6.8 1985 Kwh Sales: 55,267,061 1985 Kwh Sales: 131,874,567 Operating Revenue: $4,642,776 Operating Revenue: $11,036,389 Employees: 22 Employees: 65 Tcp O' Michigan Rural Electric Company Tri. County Electric Cooperative Number c,f Members: 37,216 Number of Members: 16,400 Miles of Distribution Line: 4,929 Miles of Distribution Line: 2,538 Members / Mile of Line: 7.6 Members / Mile of Line: 6.4 1985 Kwh Sales: 283.573,428 1985 Kwh Sales: 139,707,477 Operating Revenue: $20,876,000 Operating Revenue: $11,616,844 Employees: 78 Employees: 42 Western Michigan Electric Cooperative Number of Members: 9,718 Miles of Distribution Line: 1,282 Members / Mile of Line: 7.6 1985 Kwh Sales: 40,762,985 Operating Revenue: $3,993,376 Employees: 19
! Monogament & Departmental Summary xn w - ,,--_ n-; s 3,
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( f Te~ Stated (from left) Raymond R. Cristell. Esecutive Vice PresMent and General Manager, Ray G. Tou-nr. Assistant General blanager
& blanager, Finance & Ad-ministrative Sen krs. Stan.
ding (from left) Albert Ernst. General Counsel - Dykema, s Gossett, Spencer, Goodnoir ( ,
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Finance and Administrative Services Fuel Costs Purchased Power Costs l n a continuing effort to provide the most efficient 1982 33 38 37 69 and reliable services to Wolverine member-systems, 1983 28 83 31.01 several measures were undertaken in the Finance and Administrative Services department during 1985. M 25 66 31 m I This past year was a very impressive fmancial year 1985 25 69 30 91 for Wolverine. Kilowatthour sales to Wolverine member- (figures expressed m mills 'kwh) systems were up 3.4 percent from a year ago, with each of Wolverine's member systems contributing to this in. This continuing stabc crion in wholesale power costs crease. This past November, Wolverine's margins totaled will result in a third consi tutive year of Power Supply approximately $638,000 and this figure represented the Cost Hecovery (PSCR) overcollections. For the period l largest single month of margins in the history of ended December 31.1985, approximately $1.8 million l Wolverine Electric, Northern Michigan Electric or was overcollected from Wolverine member systems. Since Wolverine Power Supply Cooperative. Wolverine was successful in achieving more than a 1.35 l Much of the growth in energy usage by Wolverine Times Interest Earned Ratio (TIER) during 1985, member l member-systems can be attributed to Wolverine's ability to systems also received an approximate $1.3 million rate stabilize wholesale power costs. reduction. Wolvenne is particularly pleased with the con-Against the national trend, Wolverine's wholesale tinued growth of its member qstems as it has greatly power costs have continued on the stable course that was contnbuted to the cooperative's improving financial established in 1983. Fuel costs for Wolverine's generating condition. , plants have also continued to remain stable. Wolvenne also continued working closely with its ! I
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member systems in seeking new members and satisfying and whether tax abatement from Missaukee County's the needs of existmg members. During 1985. Wolvenne Lake Township can be received. Pbnding outcome of members were successful in attracting two large industrial legislation currently before the Michigan House of customers. Representatives, Wolverine may stdl receive tax abate-Wolverine and Top OMchigan were successful in at- ment status before construction begins on the facdity this v tracting bxaMar Corporation as a new Top OMchigan spring member. kxaMar Corporation, which is cunently con- Administrative improvements have also been realized structmg its facihty in the Boyne City Air Industnal Park, from a totally revised set of corporate pohcies, a new sntic: pates an initial load cf up to 5.000 kw at its plant safety manual, additional word processing capabilities and currently under construction and additional loads may the purchase of a new IBM 3600 series computer system soon become a reahty through further growth by LxaMar for the engheenng and accounting departments. With and other businesses in the industnal park. Wolverine this new computer system. Wolverine wdl have the member O & A Electric Cooperative was also successful capabdities to perform more extensive accounting and in attracting PPG Industries potash test facihty to its engineering functions in-house. system this past year. To lessen the eventual impact of Fermi 2 on Wolverine's member-systems' wholesale power cost, Wolverine and its member-system managers have been g gg g working closely with Dennis Eicher of Power Systems uring the past year, several measures were Engmeering to formulate a comprehensive undertaken to ensure the continued reliabihty marketing / load management program. Prehminary indica- and most efficient operation of Wolverine's tions recommend that Wolverine aggressively market fur- production facihties ther new industrial loads, new interruptible dual fuel Standby natural gas contracts at Bumips, Hersey and hecting sales and perform annual surveys to detect any Scottvdle were cancelled during 1985 and will result in a member movement away from electric hot water heaters savmgs of approximately $382.000. Smcc cancellation of To help meet these marketing recommendations. these contracts, plant personnel have converted these Wolven. . sought, and received approval from the standby units so they are now operating with fuel oil Michigan Public Service Commission to offer a large rather than natural gas. power interruptible rate for industrial members and a dual Restoration work on the Tower Hydro was also com-fuel heatmg rate. The interruptible rate will grant p!ered this past year. Durocher Dock and Dredge com-Wolverine member-systems a reduced demand charge for pleted extensive work on the dam's flood gates and re-service to loads of more than 1.000 kw. The dual fuel taming walls that will allow continued use of this efficient hecting rate provides an energy credit for dual fuel source of low-cost power heating loads- Sohd Fuel Technology is continuing its evaluation of In anticipation of construction of the new head- future electncal generation ahernatives at the Advance quarters facility in Cadillac this spring. Wolverine took Steam Plant. The Advance plant is Wolverine's largest many steps during 1985 to ease this trans: tion. fully-owned production facihty. In its initial feasibihty l The most significant step was the sale of Wolvenne's study. Sohd Fuel Technology recommended rehabditation current Boyne City headquarters facd:ty and the construc- of boders 1 & 2 installation of a new turbine generator tion bid award of the new 12.000 square foot corporate and instrumentation and control systems. During the hecdquarters facihty in Cadi!!ac. Wo!verine's Board of coming year. Sohd Fuel representatives wdl prepare Directors approved the sale of the current Boyne City specifications for ultrasonic testing on the boiler and headquarters facdity on favorable terms to continue using associated tubes test station piping and inspect the the e::isting garage facdities for ten years. plant's stack and electrical equipment. Clean up efforts At the present time. Wolverine anticrpates that the were also completed on both the interior and exterior of new Cadillac headquarters facihty will be ready for oc. the plant. with installation of a new electronic security cupancy by August 15 By relocating in Caddlac, system also completed. Wolverine is confident that it can more adequately service Efforts were also successful in negotiating a 15 cent its member-systems' needs through a more centralized per ton reduction in rad transportation costs with the location. Chesapeake and Ohio Railroad. Since Wolverine annually in the interim, management is examining the vanous transports approximately 85.000 tons of West Virginia financing alternatives fer the new headquarters facihty coal, this measure resuhed in an approximate $13.000
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-A s savings to Wolverine. Savings of approximately $30.000 Ris past summer. Wolvenne management con-were realized by Wolverine as a result of reduced workers sultants and directors concluded negotiations with Detroit compensation costs to Winchester Coals Inc. - the Edison that signihcantly hmited Wolvenne's exposure at cooperative's largest fossil fuel supplier. ikrmi 2 and solidified the cooperative's future power Through a great deal of effort during the past year. supply picture. The new agreement entitled " Sixth operation of Wolverine's state-of the-art computerized Amendment to the Fermi 2 Participation Agreement" will I Energy Control Center will become a reahty in 1986. The result in savmgs of approximately $150 milhon to computerized Supervisory Control and Data Aquisition Wolverine over the hfe of the agreement.
(SCADA) equipment has been received and installation The Sixth Amendment provided the followmg-of the sophisticated equipment began in late 1985. The 1. Wolverine wouki not be required to seek additional SCADA equipment, mar ufactured by Harris Controls borrowings of approximately $21 milhon per quarter to Corporation, will help to minimtze transmission outages finance Fermi 2 construction and related interest costs. cnd increase the efficiency of power production and pur- Detroit Edison has already made two $21 million chase transactions. Preliminary estimates show that sav- payments to Wolverine covering its quarterly interest ings of $2,000 to $3,000 per day could be obtained payments to the Federal Financing Bank and will con-through operation of the Control Center. tinue makmg such payments until Fermi 2 attains com-During 1985. Wolverine continued working with the mercial operation. Michigan Public Pbwer Agency to accommodate the in. 2. Wolvenne's ownership percentage in Ibrmi 2 was terests of its municipal utihty members in Wolverine's frozen on December 31.1985. Energy Control Center. RW. Beck and Associates com. 3- Wolverine would contmue its purchase of interrup-pleted the first of a two-part study for Wolverine and tible on and off peak power, at very favorable prices. MPPA examining the economic and technical feasibility of from Detroit Edison through October 2002. forming a power resource pool. R.W. Beck has also been 4. Wolverine will sell back more of its Fermi 2 energy given approval to conduct a joint dispatch study for and capacity in earher years than had been agreed to Wolverine and MPPA analyzing potential cost sharing previously benefits through joint usage of Wolvenne's Energy Con. While the Sixth Amendment greatly enhanced the trol Center. R.W. Beck may begin that study later this future. Wolvenne continues to be seriously concerned year. with the ongomg problems Detroit Edison has en-Through the Energy Control Center, Wolverine countered at Fermi 2. handles power dispatch operations for the Municipal and Wolverine wdl contmue to momtor the situation at Cooperative Pool (MCP). MCP members include Fermi 2 through its on-site nuclear consultant and Wolverine and municipal utdities in Grand Haven. Iowell. monthly management meetings with Detroit Edison. Trr. verse City and Zeeland. As a result of increased wheeling charges from Wolverine to MCP members, an approximate $8,000 per month increase in revenue will . . be realized. Effective June 1.1985, MCP members were EEE N' charged an additional 2 mills /kwh wheehng charge for all third party transactions wheeled through the Woivenne Engineering & Operations transmission system. ith the number and diversity of maintenance Favorable changes were also fmalized in the J H. and construction tasks undertaken by the Campbell 111 Ownership and Operating Agreement bet- Transmission Engineering & Operations 1 ween Wolverine and Consumers Power Company. Under department during 1985. Wolverine member-systems can terms negotiated in the new amendment, Wolverine's cost be assured of an even more economical and reliable of backup energy for Campbell Ill has been reduced and transmission system. , the supply or replacement of Campbell lit backup will be The most significant cost savings measure came in a consistent with practical unit and system operations. new amendment to the transmission ownership and Wolverine retains an approximate 15 megawatt ownership operating agreement between Wolverine and Consumers share of the 770 megawatt J H. Campbell !!! plant. Power Company. Prior to this amendment, Wolverine While many production related concerns have been was not able to use its 93 megawatt ownership in the resolved during 1985. Fermi 2 still continues to be Consumers Power transmission system for purchased Wolverine's largest area of concern. Wolverine retains an power. It became necessary to seek changes in this approximate 15 percent ownership share of the Fermi 2 agreement after Consumers Power sought approval from nuclear power plant with the Detroit Edison Company. the Federal Energy Regulatory Commission to raise its
g_ mm.m ._ F 11 . - t . . -. tr:nsmission wheehng charges from 24 cents /kw/ week to Beaver Island was successfully energized and should fur-30 cents /kw/ week. This new amendment, which has ther improve reliability to island residents. This past sum-been approved by Wolverine, Consumers Power and the mer Wolverine personnel also completed installation of a Rural Electrification Administration, became effective new standby geaerator at the Beaver Island Plant, which December 1 and allows Wolverine to use its transmission can be used in case of cable failure. ' During 1985. Wolvenne went through the formal ownership in the Consumers Power system for purchased power from Detroit Edison or other utihties. This new process of seeking accreditation from the U S. Depart-amendment will save Wolverine's member system approx- ment of Labor for its apprentice hnemen training pro-imitely 51 milhon per year in transmission wheehng gram. Wolverine is partrularly pleased to have received charges. accreditation for this program and dunng 1986 this Wolverine is also awaiting preparation of final valuable program will be expanded to include linemen documents relating to the purchase of the Blendon swit- from electric uthties not associated with the Wolverine ching facility from Consumers Power Company. system. Wolverine is most encouraged by the wide accep-Wolverine currently leases the facility from Consumers tance of this program Power Company and its purchase will allow a savings in While this annual report is intended to recognize the carrying charges of approximately $20,000 per year. At many accomplishments that were completed during 1985, the present tin,e, a 50MVA interconnection with Con. Wolverine would be remiss in not mentioning the tragic sumers Power at Wayland is also being planned for an accident that killed Carl Armock, a journeyman lineman anticipated in service date of October,1987. stationed at the Burnips Generatmg Plant. Carl was killed Construction will soon begin on Wolvenne's pro- on December 20,1955 when, while attempting to board posed Pierson to Howard City 69kv transmission hne. a hehcopter for ime patrol duties at Burnips, he acciden-Harza. Inc. was awarded the contract to complete the bid tally came in contact with the tail rotor of the behcopter. tabulation, engineering, design and supervision of con- He died in route to Butterworth Hospital in Grand struction on the 10-mile section of line. Many of the Rapids. This was the first on the job fatahty involving an casements for the line have already been received and employee of Wolverine Electric Cooperative, Northern right-of-way personnel are currently compermg this pro- Michigan Electric Cooperatwe or Wolverine Power Supply cess. Transmission personnel also completed stabihzation Cooperatwe. of the White Cloud to Hart line with phase spacers to im-prove the line's rehabihty in inclement weather. When the merger of Wolverine Electric Cooperatwe and Northern Michigan Electric Cooperative forming Wolverine Power Supply Cooperatwe was successfully Regulatory Affairs completed in 1982. management opted for less rehance ineteen hundred and eighty five was an on outside engineering constJtants by hiring more in- active year for Wolverine in the regulatory house engineering expertise. Since that time Wolvenne's arena ~ primanly before the Michigan Public non-Fermi engineenng consulting costs have been reduc. Service Commission. ed from 5620.000 to $84,000. By utihtizing the talents of Specifically, Wolverine successfully resolved / initiated in-house expertise, Wolverine was able to undertake and proceedings relating to the following: complete many more construction and maintenance pro- Approval of rate revisions which completed jects during 1985. the process of blending rates for all of the Wolverine personnel have completed construction on member-systems, both the Bagley and Burnips substations and both Approval of new load management rates; facihties have been energized. Work is also progressmg Approval of a unique mechanism to allow tourds energizing the West Traverse, Riverton and excess margins to be expeditiously returned Wilson substations. Prehminary engineering and matenal to the member systems' member-consumers' procurement has also begun for new substations at Ad- Approval of power supply cost recovery vance, Fife Lake Hagensville, Howard City, Isroy and plans and reconciliations, allowing full and Thompsonville. Construction of new oil circuit breaker fair cost recovery; stations is also currently in progress and Wolverine - Initiation of proceedings to reduce the linemen have already completed nearly 70 percent of the regulatory assessment which Wolverine is pole nLmbering project in the southern portion of required to pay. Wolverine's transmission system. Prior to the merger which created Wolverine, three In July, the second underwater transmission cable to of the member-systems purchased power from the former
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- . :ltsA Northem hiichigan Electric Cooperative and four of the tional off-peak sales will allow Wolvenne to spread its fix-member-systems purchased power from the former ed costs over a greater number of Kwh sales Wolverine Electric Cooperative. Thus. at Wolverine's birth, if one overall goal had to be chosen, it would be there were differences in the wholesale power rates of the providmg rehable power at the lowest possible pnce - to member-systems. the member consumer at the end of the hne.1985 of-Soon after the merger, a Rate Review Committee fered what, we hope, is a major stnde toward that goal was formed (1) to evaluate various cost of service and - the "I 35 Tier Ceihng hiechanism" rate design altematives available to the newly merged en- Tier refunds can be (and are) sigmficant Ibr example, tity and (2) to develop rates designed to lead to the at its January 23,1986 meeting, Wolvenne's Board of eventual ehmination of rate differentials between the three Directors authonzed the refund of $1,295,908 to Wolvenne's former Northern hitchigan member-systems and the four member-systems in effect, these refunds reduced the former Wolverine Electric member systems member systems' who!esale power costs by approximately The Rate Review Committee's work culmmated in an 14 mills per Kwh, or by approximately 3% Again. the 1.35 October 1,1985 Commission Order (1) authon2mg the Tier Ceihng hiechamsm could not have been approved requested rate revisions (2) implementmg requested load without the assistance of Wolvenne employees, the member-management rates (discussed below), and most impor- system managers, the Commission (which authorized the tantig (3) completmg the process of blending the mechanism) and its Staff.
whobsale rates of the member systems Power supply costs are, by far, the greatest single ex-These results could not have been achieved without pense of Wolverme and its member-systems - and the dedicated work of Wolverine's employees, the full timely / fair power supply cost recovery is vital to finan-cooperation of the member-systems and the assistance cial health Dunng 1985. power cost recosery proceeded and understandmg of the Commission and its Staff. smoothly As this report is bemg written Wolvenne is about Wolverine is systemancally pursuing prudent, load to seek authonty to refund $1,782,939 to its member-management rates - with the goal of fitting retail systems for the penod ended December 31,1985 - relating member-consumer usage pattems into Wolvenne's power to 1985 power supply cost recovery supply picture, so that total power supply costs are less Wolvenne, as a utihty regulated by the Commission, for V.'alvenne, its members and their retail member- is required to annually pay a regulatory assessment - consumers. based on Wolverine's gross revenues The same is true On October 1,1985, the Commission authorized for each of Wolvenne's member systems Wolverine to implement two new load management tanff The gross revenues of Wolverine and its member-riders - (1) an interruptible large power rate appbcable to systems are. obviously, earned by " teaming up" to pro-interruptible service to large commercial and industrial vide electncity to the member-consumers In other words. retail consumers of Wolverine's seven members and (2) a Wolverine provides the electricity to the member-system special energy charge credit applicable to interruptible so that the member-system may distnbute the same elec-space and water heating sales of the seven members tncity to its member-consumers. Thus, the gross revenues The first rider mentoned above, the 12rge Power In- of Wolverine and its member-systems used in calculatmg terruptible Rate, provides a 50% reduction in the demand the regulatory assessment relate to the same electricity charge for service to large power loads (1.000 Kw or being sold to the member consumer more) which may be interrupted by Wolverine during simp;y stated, Wolverine and its member systems are system emergencies or peak load conditions This de- "being hit twice" in providing electncity to the member-mand charge discount from Wolverine to its seven consumer -- once by Wolverine's sa!e to the member-members is then passed on to large power retail member- systems and again by the member systems' sale to their consumers. To date, this rate has been attractive to large member consumers ; power member-consumers and, we hope, will encourage To reduce operating expenses Wolverine has asked l additional sales to these customers- the Commission to reduce its regulatory assessment and The second rider provides a 3.0 mills per Kwh denve a fairer and more equitable formula for determin-energy charge credit applicable to interruptible heating ing future segulatory assessments sales load. This rider's goal is to permit Wolverine While the matter is in progress, prehminary discus-memb2rs to develop retail rates which are competitive sions with the Commission Staff indicate a strong with altemative fuels such as oil and gas These com- possibihty that we will be able to make required ad-petitive rates should encourage development of interrupti- justments Hopefully, this change will benefit Wolvenne, ble off-peak load which, in the long run, should be its member systems and their member-consumers beneficial to Wc'verine and its members - since addi-
r Lgm __mmm~~~ } m MICHIGAN 46, NEWAYGO WOLVERINE POWER SUPPLY COOPERATIVE, INC, BOYNE CITY, MICHIGAN Report on Examination of Financial Statements for the years ended December 31,1985 and 1984 CONTENTS Pages Financial Statements: Balance Sheets 14-15 Staternents of Revenue 16-17 Statements of Changes in Financial Position 18-19 Statements of Patronage Capital and Other Equities 20 Notes To Financial Statements 21-23 Report of Independent Accountants 24 i k I a a
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--a MICHIGAN 46, NEWAYGO WOLVERINE POWER SUPPLY COOPERATIVE, INC.
BALANCE SHEETS, as of December 31,1985 and 1984 t 1985 _ 1984 ASSETS Electric plant, at cost (Notes A, B, G, and H): In service $ 104,232,714 5 102,452,693 Construction work in progress 788,869,140 744,138,266 893,101,854 846,590,959 Less, Accumulated depreciation and amortization 35,055,360 32,621,985 Net electric plant 858,046.494 813,968,974 Other assets and investments: Non-utility property 12.210 Investments in associated organizations (Note C) 4,507,891 4,704,606 4,507,891 4,716,816 Current assets: Cash and cash investments - General funds 8,769,057 6,022,894 Cash - Construction funds 228,199 227,326 Accounts receivable 6,782,436 5,350,338 Materials and supplies (Note A) 7,968,051 6,986,545 Other current and accrued assets 942,358 170,119 Total current assets 24,690,101 18,757,222 Deferred charges 22,205 - Total assets $_ 887,266,691 $ 837,443,012 l The accompanying notes are a part of the financial statements.
1 EQUITIES AND L'I ABILITIES 1985 1984 Equities: Memberships 5 1,400 $ 1,400 Patronage capital 11,289,531 10,538,391 Other equities 1,013,770 248,843 Total equities 12,304,701 10,788,634 Long term debt (Note G): REA mortgage notes 49,333,587 49,339,587 Federal Financing Bank notes 800,544,476 763,145,476 Total long-term debt 849,878,063 812,485,063 Current liabilities: Current maturities of long term debt (Note G) 10,713,000 2,057,763 Accounts payable - purchased power 4,169,412 4,014,059 Accounts payable - other 213,627 220,263 Advances payable to members (Note E) 3,5 % ,500 3,971,500 Refunds payable to members (Note F) 3,078,847 1,193,681 Taxes and wages payable 2,172,005 1,607,784 Accrued vacation and sick leave 557,022 504,246 Accrued interest 203,722 230,934 Total current liabilities 24,704,135 13,800,230 Deferred credits 379,792 369,085 l l l Total equities and liabilities $ 887,266,691 $ 837,443,012 i l
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- A STATEMENTS OF REVENUE for the years ended December 31,1935 and 1984 1985 Percent of e Operating Amount Revenue Operating revenue 5 50.042.520 100.0 Operating expenses:
Purchasc<1 power 25.322.267 50 6 Power generation: Operation 9.625,956 19.2 Maintenance 999.671 2.0 Transmission expense: Operation 827.525 1.6 Maintenance 460,976 .9 Distribution expense: Operation 150.716 .3 Maintenance 182,341 .4 Administrative and general: Operation 2.128,486 4.3 Maintenance 44.438 .1 Depreciation and amortization (Note B) 2,981.832 6.0 Taxes 1.896,388 38 Other deductions 7,575 Total 44.628.171 89.2 Operating margins before fixed charges 5,414.349 10.8 Fixed charges: Interest on debt 4.663.209 9.3 Operating margins af ter fixed charges 751.140 1.5 Capital credits - - . - _ _ _ - _ . Net operating margins 751.140 1.5 l Non operating margins: l Interest income 764.927 1.5 ) Net margins 5 1.516.067 30 The accompanying notes are a part of the financial statements.
1984 3 Percent of Operating increase Amount Revenue (Decrease)
$ 50,356,505 100.0 $ (313,985) l 24,467,777 48.6 854,490 9,912,636 19.7 (286,680) 731,112 1.5 268,559 754,526 1.5 72,999 335,808 .7 125,168 139,375 .3 11,341 111,975 .2 70,366 j 2,045,009 4.1 83,477 54,131 .1 (9,693) 2,788,005 5.5 193,827 1,820,329 3.6 76,059 85,939 .1 (78,364) 43,246,622 85.9 1,381,549 7,109,883 14.1 (1,695,534) 4,484,055 8.9 179,154 2,625,828 5.2 (1,874,688) 70,368 .1 (70,368) 2,696,196 5.3 (1,945,056) 612,340 1.2 152,587 5 3,308,536 6.5 $ (1,792,469)
s STATEMENTS OF CHANGES IN FINANCIAL POSITION for the years ended December 31,1985 and 1984 1985 _ 1984 c Funds were provided by: Net margins $ 1,516,067 $ 3.308,536 items not affecting funds: Depreciation and amortization 2,981,832 2.788,005 Capital credits assigned from CFC - (70.368) Gain on sale of electric plant (108,502) - Proceeds from sale of electric plant 42,351,495 Advance from REA and Federal Financing Bank 48,106.000 129,062.000 increase in deferred credits - 10,707 16,314 Decrease in non-utility property 12,210 - Decrease in deferred charges - 83,416 Capital credits refunded from CFC 196,715 530,150 Decrease in working capital 4.971,026 Total $ 100.037,550 $ 135,718.053 Funds were used for: Extension and replacement of electric plant $ 89,302,345 $ 103,541,857 Payment and current maturities of long term debt 10,713.000 2,057,763 Decrease in accrued interest, long-term 17,706,888 Purchase of CFC capital term certificates - 291,768 increase in deferred charges 22,205 - Increase in working capital 12,119,777 Total $ 100,03_7,550_ _
$_ _135,718.05_3_
The accompanying notes are a part of the financial statements.
y .-:~-+ - m-mmy f . .. ., . Changes in Composition of Working Capital 1985 1984 7 increase (Decrease) Current assets: Cash and cash investments - General funds $ 2,746,163 $ 5,470,719 Cash - Construction funds 873 (76.544) Accounts receivable 1,432,098 411,468 Materials and supplies 981,506 180.138 Other current and accrued assets 772,239 15,112 increase in current assets 5,932,879 6,000,893 Current liabilities: Short-term borrowings (5,369,627) Current maturities of long-term debt 8,655,237 40,998 Accounts payable - purchased power 155,353 (167,388) Accounts payable - other (6,636) (89,517) Advances payable to members (375,000) (125,000) Refunds payable to members 1,885.166 (604,588) Taxes and wages payable 564,221 139,794 Accrued vacation and sick leave 52,776 23,974 Accrued interest (2_7,212) 32,470 Increase (decrease) in current liabilities 10,903.905 (6.118,884) Increase (decrease) in working capital $ (4,971,026) $ 12,119,777. i
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-1 291 STATEMENTS OF PATRONAGE CAPITAL AND OTHER EOUlTIES for the years ended December 31,1985 and 1984 PATRONAGE CAPITAL y
1985 1984 Balance, beginning of year 5 10.538,391 $ 7,912,563 Operating margins - assignable 751,140 2.625,828 Balance, end of year $ 11,289,531 10,538,391 Assignable $ 751,140 $ 2.625,828 Assigned to date 10,538,391 7,912,563 Total $ 11.289,531 $ 10,538,391 OTHER EQUITIES 1985 1984 Balance, beginning of year $ 248,843 $ (433.865) Non-operating margins 764,927 612,340 Capital credits - 70,368 Balance, end of year 5 1,013,770 $ 248,843 The accompanying notes are a part of the financial statements.
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NOTES TO FIN ANCIAL STATEMENTS for the years ended December 31.1%5 and 1984 NOTE A: ACCOUNTING POLICIES. The following is a summary of the accounting policies adopted by the Cooperative which have a significant effect on the financial statements. The pohcies conform to generally accepted accounting principles and have been consistently apphed Certain reclassifications have been made in the accompanpng 1984 financial statements to conform to the 1%5 presentation. Inventory Valuation Matenals and supphes are stated at average unit cost. which is not in excess of market. Construction Pened interest The cost of construction work in progrets includes the actual cost of funds borrowed to finance the construction of the Fermi No 2 Nuclear Power Plant The Cooperative incurred total interest costs of 588.147.548 and $80.482.739 of which 583.484.339 and 575.998 684 has been capitat i zed dunng the years ended December 31.1985 and 1984. respectively Federal income Tames - The Cooperative is exempt from federal incume taxes under Section ' C1(ex12) of the Intemal Revenue Code Therefore. no provision for federal acome tan has been made NOTE B: ELECTRIC PLANT. The electric plant in service cons:sts of the foltoning at December 31.1985 and 1984
. _ . 1985 1984 _
intang'ble p! ant 5 628.005 5 628.005 Production ptant 38.260.123 38.095.207 Transmission plant 50.557.799 49.318.371 Distnbution plant 12.008.987 11 766.405 General plant 2.777.800 2.644.705 Total 5 104 232 714 5 102.452.693 Major classes of construction work in progress consist of the following at December 31.1985 and 1984 1985 1984 Ennco Fermi Nuclear Unit 2 5 785.107.035 5 740 448 243 Other construction 3 __ .752.105 3 690.023 Total 5 788 869.140 5744138 2f>6 Provision has been made for depreciat.on of production, transmission and distribution plants at a straight line composite rate of 310%. 2 75*. and 2.88%. respectively per annum General Piant depreciation rates have been applied on a straight line basis and are as follo*s-Pe<c ent Structures and improvements 20- 30 Transportation equipment 140 170 Power operated equ pment 100-110 Communicatons equipment 80 100 Cffice furnitu'e and fintures 60-100 Too!s and shcp eau,pment 60 Laboratory ( quipment 60 Other gereral plant 50-100
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.~~a 224 NOTES TO FIN ANCIAL STATEMENTS. Continued for the years ended December 31,1985 and 1984 NOTE C: INVESTMENTS IN ASSOCIATED ORG ANIZATIONS The investments in associated organizations consist of the following at December 31.1985 and 1984 e
1985 1984 National Rural Utilities Cooperative Finance Corporation: Capital term certificates tCTC) $ 2.856.095 5 2.856,095 Patronage capital credit s 1.637.135 1.833.850 Other 14 661 14 661 Totat $ 4.507.891 $ 4.704 .,60_6 NOTE D- SHORT-TERM BORROWINGS The Cooperabve has available an unsecured linect cred:t with the National Rural Utilities Cooperative Finance Cor. poration, whereby advances of $12.000,000 for general operations are available until March,1987. Interest on advances is determined monthly by CFC NOTE E- ADVANCES PAYABLE TO MEMBERS The Cooperative has an arrangement with its members to receive advances against their monthly power bills. The advances are interest beanng using the General Motors Acceptance Corporation 30 59 day commercial paper rate computed and payable on the twentieth day of each month Tnere is no stated matunty date or repayment schedule. NOTE F: REFUNDS PAYABLE TO MEMBERS The refunds payable to members consist of two separate refunds The first is under a new Vichigan statute, Power Supply Cost Recovt.ry Clause, whereby estimated power cost for a 12 month period will be billed by the Cooperative to its members each month at a fixed rate Following the close of the 12 month penod, a reconciliation of actual power cost to estimated power cost will determine the under or over-collection with the appropnate amount being co!!ected or refunded to the members At December 31.1985 and 1984. the Cooperative had overcollected
$1.782.939 and $1.193.681 respectrvely. which is refundable to its members The second is a 1.35 Tier Refund which was adopted by the Cooperative in 1985 The refund is the dif ference bet ween 35% of interest on long term debt and net margins before the Tier Refund The refund is allocated to the members based on each member's percentage of power parchased to total power purchased by members. The amoult of the 1.35 Tier Refund. payable at December 31. 1985 is 51295.908.
j NOTE G LONG TERM DEBT. Substantially all assets are pledged as collateral for long term debt Long term debt consists of the following at December 31,1985 and 1984 Rural Electnfication Administrat.on (REA) mortgage notes beanng interest at 2% and 5% per annum The notes are payable in quarterly mstallments to the year 2018 Federal Financing Bank (FFBI notes. guaranteed by the RE A and beanng interest at 8 038% - 13195. per annum The rate of interest is redetermined by FFB at each change of matunty date All advances made under FFB notes issued pnor to October 1,1983. have a seven year deferment before tne repayment of pnncipal is required The final principal payment of all loans as established when the notes are issued. At the time of each advance, the Cooperative can select an initial matunty date for that advance of not less than two years or more than seven years Entensions of the initial matunty date are available, however, n
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[2S _a._ - NOTES TO FIN ANCIAL STATEMENTS Continued for the years ended December 31,1985 and 1984 NOTE G: LONGTERM DEBT Concluded not to be less than two years in length. The total pened of the initial matunty dare and entensions cannot exceed a maximum of seven years Af ter the maximum seven year maturity. the advances are to be repaid according to the FFB guidehnes. Matunty dates of a:t advancett made under FFB notes issued af ter October 1.1983. are determined by REA based on the project's commercial operation date All advances under these notes are to be repaid according to FFB g uide!ines. All notes issued poor to October 1.1983 are 34 year mortg age notes and all notes issued after October 1.1983 am 30 year mortgage notes Following is a summary of the outstanding long term debt at December 31,1985 and 1984. 1985 1984 Rural Electrification Administration $ 51,175.587 5 51.186.334 Federal Financing Ba% 809.415.476 763.356.492 860.591.063 814.542.826 Less. Current matuntees 10 713.000 2.057.763 Total long term debt 5 849.878.063 $ 812.485.063 Unadvanced loan funds of $5 753,181. $1.230.000 and $7.897.756 are avaitable to the Cooperative on loan commitments from RE A CFC and FFB. respectively Matunties based on the terms of the debt instruments which aMon de'erment of pnncipa' payment for the nemt five years are as folioas. 1986 - $10.713.000; 1987. $12.237.000.1988 - $13 789 000.1989 - $15.884.000 and 1990 $19.382.000 NOTE H: COM MITM ENT. The Cooperative and the Detroit Edison Company are participahng under an agreement for the construction and operation of the Ennco Fermi Nuclear Unit 2. Under the agreement, the Cooperative's portion of the construc-tion costs is limited to $426 9 milhon (this escludes capit.hzed interest costs) This cap is effective regardless of how long it takes to complete the construction The Cooperative's ownership interest is approximately 14.41% as of December 31,1985 The Cooperative has capitahted through December 31,1985.
$785.107.035 and anticipates $3.603.000 of remaining nuclear fuel and overhead costs until the unit's scheduled operational date in the fall of 1986 In accordance with the six th amendment to the agreement. Detroit Edison will purchase a portion of the Cooperative's intemst in plant, nuclear fuel and matenals and suppl.es, quarterly, in an amount equa! to the Cooperative s quarterly interest related to specific borrowings related to the construction Sales under this agreement we<e $42.028.144 in 1985 These sales reduced the Cooperative's ownership interest by 817% in 1985 The Cooperative has a binding agreement with Detroit Edison Company in which Detroit Edison is obhgated to pur.
chase the scheduled amount of excess energy generated related to the Cooperative s portion These revenues will assist in offsetting the effect of the additional interest and depreciation costs recognized NOTE t RETIREMENT PLAN. Retirement plan benefits for substantially all employees are provided through participation in a retirement and secunty program and savings plan for employees of the National Rural Electoc Cooperative Association and its member systems. Contnbutions for the retirement and security program were $198,900 in 1985 and $195.200 in 1984. Contnbutions for the savings plan program were $125.700 in 1985 and $101.600 in 1984
%,.- -m_._d.. k COOPERS & LY B R A N D c a av.< r o avevc Accowa~,s A Mf MH( A Ft RM CF C Q s p( D $ & ( V M 4 A N Q ] .N f g &#s A e T ,O N A () To the Board of Directors and Members of Wolverine Power Supply Cooperative, Inc.: We have examined the balance sheets of Wolverine Power Supply Cooperative, Inc. as of December 31,1985 and 1984, and the related statements of revenue, changes in financial posi-tion and patronage capital and other equities for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial posi-tion of Wolverine Power Supply Cooperative, Inc. as of December 31,1985 and 1984, and the results of its operations and changes in its financial position for the years then ended, in conformity with generally accepted accounting principles appl:ed on a consistent basis. South Bend, Indiana y e February 21,1986 C#[+4 1
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d F E I l l l l l l l l l l W.P.S.C. WOLVERINE POWER SUPPLY COOPERATIVE, INC. P. O. Box 369 -:- 1050 East Division Street Boyne City, MI 49712 -:- Telephone: (616) 582-6572
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