President’sReport Report
good year for Harmon Electric. We generated $8.8 million in revenue and $984,203 in margins. We met all RUS and CFC requirements and ratios in 2014, which means your cooperative remains strong and in good financial condition. The positive margins were generated without an increase in kilowatt hours sold compared to 2013 sales. Sales were down slightly in our residential and irrigation class but our large commercial class had an increase in sales compared to 2013 which led to overall sales being the same. A very positive outcome of 2014 saw a 16.5% decrease in
expenses. This alone had a tremendous impact on the amount of margins we were able to generate this past year. The majority of the decrease was due to being able to capitalize the installation cost of the new TWACS meter conversion we completed recently. The capitalization of the installation cost of the meter system offset expenses which in turn generated additional margins.
Besides completing this conversion lately we continue working on our right-of-way maintenance program. This has been ongoing now for several years and has improved reliability. We will continue to move forward and anticipate even greater reliability in the future. Your board made the decision several years ago to do this in house instead of hiring right-of-way contractors.
The year 2015 marks the 77th anniversary of Harmon Electric Association. Your annual meeting will be held on Friday, April 3, 2015 at the Hollis Civic Center in Hollis, OK. Your board of trustees and management encourage you to attend and take an active part in your association. Financially, 2014 was another
Manager’s
I am proud to present to you Harmon Electric Association’s 2014 Annual Report. This report contains the current status of your cooperative. You the member are part owner, so please take an active part and plan to attend the Annual Meeting. As noted in the President’s report,
your cooperative remains financially strong. We continue the rebuilding
process due to the 2010 ice storm plus the continuing efforts of the right-of-way program. Although these efforts are a challenge at times, we know that in the end it will be worth the effort. We do this for you the member/owner of Harmon Electric. In the January edition of the Harmon Hi-Lites, I discussed the accomplishments of 2014. I am very proud of those accomplishments and our employees who make sure we continue to move forward. It’s also very rewarding working with a knowledgeable, supportive board of trustees. In my Manager’s Report, I would like to let you know how your board and management are planning for the future. If you have been through our offices in Hollis, it doesn’t take
long to realize that we are bursting at the seams. The offices are small and we desperately need more office space for growth. According to the abstract, we have been at the current location since 1948. I’m not sure how old the building is, but in 1940 it was a Kraft Cheese Factory. Needless to say, the building is over 75 years old and needing some work. The last time the office was remodeled was in the early 80’s.
Another problem is the limited space for line construction
This decision alone has saved a tremendous amount of money compared to hiring contractors. As always, your board of trustees realizes that we represent you the members in our district and we strive to keep each member in mind as we make those decisions. We also continue with the FEMA rebuilding. The deadline to finish this project is March 2016. But, if everything goes well, we will finish this major project by the end of this year. As of February 2015 we have completed over 700 miles of line with just under 300 miles to go. This continues to be the largest project your cooperative is focusing on. It also continues to be a challenge for the staff. The FEMA work is very time consuming plus the everyday workload continues. Considering the small staff and workload involved, it’s amazing how well things have gone. We look forward to the completion of this project and a much improved system. A system that should provide improved service reliability for years to come. With any decision your board of trustees makes, we always keep in mind how it will affect you, the member at the end of the line. We weigh that with what will keep your cooperative in good financial condition plus continue to provide excellent service. You are ultimately the one we all have to answer to and something we never forget. Being locally owned and controlled is just one thing that makes cooperatives different. Our goal continues to be providing
electricity at an affordable cost while maintaining excellent service. We know that you the member are the reason for our
existence. We urge you to attend your annual meeting on Friday, April 3, 2015 and take an active role in your cooperative.
safe, reliable
equipment, material storage, and fleet parking. Over the years, the equipment we use has increased in size plus our fleet and other equipment has grown in numbers as well. Room has been a challenge at our current location for a number of years. Currently, we have a small yard at the office location. Just
north of the office, we have half a city block for material, pole storage and vehicle parking. We also have a pole storage yard located north of Hollis, and we are renting warehouse space for FEMA projects.
Because of these issues, the board and management are currently looking to build a new headquarter facility on the north side of Hollis. This is something the board has been considering for a number of years. Before making any decision, the board always keeps in mind the impact it will have on the member. According to the financial forecast this building project will not increase costs to our members. We are in the preliminary stages of planning but our plan is to not have any long-term financing for the project.
As we move forward, we will keep you informed on the progression. Look for updates in the newsletter and on our Facebook page. This is your cooperative and we always want to keep you informed. We are excited about the upcoming Annual Meeting. It gives you an opportunity to visit with your board member and the employees of your cooperative. You will also be brought up to date on the activities of your cooperative. Again this year, we will be serving a burger lunch. When you register you will receive a ticket for the lunch. The employees will be cooking and as always will do a great job.
Also, as noted in the annual report, we will be giving away a
flat screen TV for the grand prize. We will once again be giving away $50 for some lucky winner in each district. Plus, there will be other numerous prizes given away during the meeting. Make plans to join us on Friday, April 3, 2015. We look forward to seeing you.
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