After a unique year, Kankakee Valley REMC is proud to report that your cooperative weathered the COVID storm and remains in a solid financial position.
KV REMC invested over $5 million in ongoing efforts to ensure reliability through continuous investments in utility plant improvements and replacements. The cooperative’s utility plant includes items such as poles, wires, meters, transformers and other equipment. The total assets held by the REMC totaled $74 million, with the majority of those being electric plant. The cash position stayed consistent and had no other substantial changes. The investments made to the plant were made with equity contributions from member-consumers and an increase in debt of $1.5 million.
As of the end of the year, member-owned equity in the cooperative totaled $51 million. In addition, the cooperative returned $400,000 worth of patronage equity to the membership.
The revenue collected by the REMC was steady, compared to the prior year as rates stayed consistent. Operating expenses increased in 2020, primarily due to the increased cost of power. This increase drove margins for the cooperative down slightly to $3.3 million compared to the prior year’s $3.6 million. Through the REMC’s rates, member-consumers pay for the cost of their electric service. During the year, we collected $36.7 million to operate the utility. The REMC expended a total of $32 million to purchase power and cover the operating cost to manage the utility. As mentioned before, another $5 million was spent to invest in utility plant improvements.
Given the challenges of 2020, your cooperative leadership team has remained focused on providing quality service to the membership. Your cooperative remained vigilant on the system’s integrity with increased investment, absorbing the rising costs while maintaining the same level of revenue, and collecting from the membership only what was necessary to provide safe and reliable electrical service.
SUSAN BACHERT is secretary/treasurer of the board of directors at Kankakee Valley REMC