Co-op recognized for efficiency
Flathead Electric annual meeting is on March 22
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It’s easy for Flathead Electric Cooperative managers to see how cold it’s been this winter — all they have to do is look at their meters.
The Co-op broke an energy consumption record in December 2012 when its 49,000-plus members used 6,783 megawatt-hours of electrical power from midnight Dec. 5 through midnight Dec. 6. The previous record was 6,774 set on Dec. 16, 2008.
Electrical use in the Flathead Valley has come a long way since the Co-op was established 77 years ago. Now encompassing the urban areas of Kalispell, Whitefish, Columbia Falls and Bigfork as well as all the rural areas in between, the Co-op’s electrical system includes 60,000 meters, 29 substations and 4,700 miles of overhead and underground power lines.
Flathead Electric is run as a cooperative, with voluntary and open membership and democratic membership control. Anyone who wants to see “town hall” type governing in action should attend one of the Co-op’s annual membership meetings.
The Co-op’s 77th annual membership meeting will be held at the Christian Center, 255 Summit Ridge, in Kalispell, on Saturday, March 22, beginning with registration and refreshments at 8:30 a.m. and a short business meeting starting at 10 a.m. Prize drawings and child care will be provided, and members will hear from candidates running for District 6, West Valley and Marion, and District 8, Bigfork and Rollins.
Mark Johnson took over as the Co-op’s general manager on Nov. 1, succeeding Ken Sugden, who served as general manager since 2003. Johnson has a CPA degree from the University of Oregon and an MBA degree from the University of Montana. He was hired as the Co-op’s finance director in 1999.
The Co-op’s largest operating expense is the cost of power, accounting for 52 percent of operating expenses. Power sales to members increased to $99.7 million in 2013, about 11 percent more than in 2012. The increase is attributed to higher power costs and more demand by Co-op members.
The Bonneville Power Administration imposed a significant rate increase last year, but the Co-op’s board of trustees elected not to increase rates at a comparable level. Instead, the board chose to smooth out the transition to higher power costs by implementing smaller incremental increases.
At the same time, operations and maintenance costs fell to $8.8 million in 2013, about 4 percent less than in 2012, as a result of reduced full-time equivalent positions and no major weather-related events in 2013.
Long-term debt, however, increased to $173 million in 2013, about 6 percent more than in 2012. Co-op officials say the construction budget is funded by long-term debt and revenue financing. Interest payments on Co-op debt increased to $8.4 million in 2013, about 3 percent more than in 2012.
More than $2.6 million in capital credits were returned to Co-op members in 2013. The Co-op has returned nearly $22 million in capital credits to members over the past 77 years.
The Co-op is recognized for its role in promoting energy efficiency and new sources of energy. Overall, the Co-op’s energy efficiency programs saved members more than 10,000 megawatt-hours in 2013. Last year, the Co-op presented Plum Creek Timber Co. with a $386,635 check for energy efficiency projects that will save Plum Creek more than $54,000 per year.
The Co-op also has Montana’s most member-friendly net-metering policy, which allows members who generate electricity to sell their surplus power to the Co-op.
In addition to purchasing power generated by F.H. Stoltze Land & Lumber Co.’s new biomass plant and the city of Whitefish’s hydroplant, the Co-op benefits from 1.3 megawatts of power generated by burning methane gas produced by the Flathead County landfill — enough power to serve 1,600 homes.
The Co-op’s annual maintenance costs for the landfill generator fell to $473,062 in 2013, about 10 percent less than in 2012, but major maintenance expenses are scheduled for this year.