Your...Member Owned, Not for Profit...electric cooperative

President & Chairman Messages

Fiscal 2014 has proven to be a banner year for Middle Tennessee Electric Membership Corporation (MTEMC) and its members. Our revised mission statement; Providing Affordable, Reliable, Safe Electricity and Outstanding Member Service, is the foundation by which MTEMC measures its success. Member satisfaction, measured through the American Customer Satisfaction Index (ACSI), has risen to an all-time high of 83.

Chris Jones, President

Chris Jones

Our commitment to MTEMC members is providing affordable, reliable, safe electricity and outstanding member service to everyone within our service territory. We are blessed to serve an area that continues to experience growth and prosperity. Regardless of our size, our focus is on our members and delivering value. We’ve built on our successes this past year and continue to find ways to improve the level of service we provide.

Gordon Bone, Chairman

Gordon Bone

The growth the cooperative has experienced over the last 30 years has been phenomenal. The active participation of our members, coupled with the hard work of our employees, has paved a road that will allow our cooperative to continue to thrive.

As you scroll through this report, please take time to watch the videos and read about the great programs your cooperative offers, and learn more about where we are heading.
County Area: Cannon, Rutherford, Williamson, and Wilson Williamson County Rutherford County Cannon County Wilson County
Select a county to see your member-elected Board of Directors from each district.

Cannon County

Charlie Bowman Charlie Bowman
District 3

Rutherford County

Will Jordan Will Jordan
Vice Chairman
District 2C
David Lee David Lee
District 2B
Mike Woods Mike Woods
Secretary-Treasurer
District 2A

Williamson County

Ann Little Ann Little
District 1B
Gloria O'Steen Gloria O'Steen
District 1C
Steve Seger Steve Seger
District 1A

Wilson County

Gordon Bone Gordon Bone
Chairman
District 4C
Jim Mills Jim Mills
District 4D
Tom Purkey Tom Purkey
District 4A
Dan Smith Dan Smith
District 4B

Affordability

Affordable electricity is key to the overall satisfaction of MTEMC’s membership. Tennessee’s rates are 15-20% lower than the national average, and Middle Tennessee Electric’s rates are lower, on average, than neighboring utilities.. For every dollar collected by MTEMC, 82 cents is paid to the Tennessee Valley Authority, our wholesale power provider, who delivers power generation and transmission to MTEMC’s distribution substations. Once our power bill is paid to TVA, we utilize the remaining 18 cents to operate your distribution electric cooperative. A few of the many services offered by MTEMC assists members in finding ways to manage and reduce their energy consumption, which in turn, helps reduce their electric bill. Because we exist to serve you, we actually help you find ways to use less of what we sell. That’s the power of cooperative membership.

Reliability

When a member flips a light switch, their lights should come on, and that’s job number one for MTEMC. Continual investments in infrastructure ensure members have power when they want it. Proactive vegetation management programs help to reduce the potential of an outage caused by a falling tree limb or other vegetation related issues. Investments in substations aimed at keeping animals away also aid in reducing outages. Technology advancements like an Advanced Metering Infrastructure will help the cooperative respond to outages quicker and with increased precision in the future. Reliability is paramount for our members and a fundamental part of MTEMC’s mission.

Safe

Safety is critical in everything we do. Continual training and safety instruction ensures our employees will be able to do their job with the utmost confidence. Knowing the dangers of electricity, both on the job and in the home, is first and foremost in the minds of MTEMC employees. But safety does not stop with our employees. MTEMC strives to educate our members on the dangers of electricity, working in schools and at public events, demonstrating safe ways to work with or around electricity. This training also extends to first responders, who need to immediately recognize the danger associated with downed power lines.

Outstanding Member Service

While MTEMC is in the business of providing power to members, our members, and their overall satisfaction, are our number one focus. Through annual surveys, member interaction and open communication, we listen to our members and work to make their experience outstanding. Members want to know what is going on at their cooperative, and through advances in technology, such as social media, we are able to quickly relay information they’re searching for. Information is not the only area of member service we focus on; we are active in the communities we serve. MTEMC’s Customers Care Foundation, funded through more than 70% of our members participating in rounding up their monthly bill to the nearest dollar, works closely with agencies across the territory to support the needs of our communities. At the end of the day, we want to make sure our members are satisfied, and provide them outstanding service.

4-H Electric Camp/4-H Electric Project

In a four-day camp on the University of Tennessee-Knoxville campus, more than 200 students participate in hands-on learning, computer training, building projects and other camp activities. The camp is a joint effort between Tennessee’s 23 rural electric cooperatives and the UT Agricultural Extension Service. In addition to the camp sponsorship, each year counties within the cooperative service area name winners who participate in the district, state and national 4-H Electric Project competition.

6th Grade Energy Projects

MTEMC encourages students to bring inexpensive, energy-related projects to school to compete in informal three-week “science fairs.”

MTEMC Group Presentations

Throughout the year, the cooperative offers programs on electrical safety and how electricity is used to audiences of all ages. For more information about MTEMC presentations, please call 615-494-1065.

Customers Care Scholarship

Customers CareEach July, 10 students from the MTEMC service area are awarded $2,000 scholarships to attend two- or four-year accredited colleges or trade schools. The scholarships, established through MTEMC’s Operation Round Up program, are based on financial need, GPA, a written essay, and community service and leadership.

Tree Wise

TreewiseEach spring, MTEMC brings an educational initiative to area students that is entirely focused on trees. Students participate in classroom activities and discussions on how to transport, plant and care for trees (as well as their importance to the environment).

Washington Youth Tour Writing Contest

Washington Youth Tour Writing Contest

Each year, high school juniors from MTEMC’s service area write an original essay about rural cooperatives to compete for school, county, area and statewide prizes. In June, winning students from MTEMC’s service area receive an all-expenses-paid trip to Washington, D.C., to participate with other finalists from around the nation.

Youth Leadership Summit

Two students from each of the 23 rural electric cooperatives in Tennessee receive an all-expenses-paid trip to the three-day summit in Nashville. Participation in the summit includes visits to the Legislative Plaza, the state Senate and House of Representatives, and a tour of the Capitol, in addition to leadership development and cooperative learning sessions.

Online Home Energy Evaluations

MTEMC offers an easy way for members to learn how to increase energy efficiency and save money - energy evaluations. Members can get started by going online to mtemc.com for a quick online energy evaluation that reveals how each home uses - and loses - energy.

Green Power Switch

Green Power SwitchThis program brings green power to the MTEMC service area, making a difference in the amount and type of energy used. Residential, commercial and industrial members can purchase 150 kilowatt-hour blocks for $4 a block, with no limit on the amount of blocks purchased. It’s an investment in power generated by cleaner sources - and just two blocks of energy purchased each month is the equivalent of planting an acre of trees in the Tennessee Valley.

Energy Right® Certified Platinum

EnergystarMTEMC’s energy efficiency plan for new homes - Energy Right Certified Platinum - gives members cash-back incentives for building more efficient homes. Homes must include proper insulation, an energy- efficient heating and cooling system, high- performance windows and Energy Star® rated appliances. Homeowners must work with a trained inspector who will do a final review of the home before certification is met. Members can contact their district Energy Services Coordinator for more information on the program.

Green Homes Plus

Green Homes PlusMembers can reap extra money-saving benefits by committing to energy efficiency with MTEMC’s Green Homes Plus initiative, which rewards members who build their homes to be environmentally friendly.

EnergyRight® Solutions for Business

Electricity is essential to the success of your business and using electricity efficiently saves you money while conserving natural resources and preserving our environment. Our EnergyRight® Solutions for Business program offers cash incentives for installing energy-saving equipment.

If your business has an electrical demand of 5,000 kW and less, you may qualify for this program. Find out more information regarding the program and access its applications at EnergyRight® Solutions, How To Get Started.

Renewable Energy

Middle Tennessee Electric partners with the Tennessee Valley Authority to offer its members renewable energy options. Currently, the cooperative has systems that range in design capacity from 1.8 kilowatts to 1 megawatts ­­- totaling more than 5 megawatts of distributed renewable generation on the system. Renewable energy projects include those that generate electricity through solar, wind and other resources.

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meters served

Customers Care

While the primary mission of the electric cooperative is to deliver reliable, affordable, safe electricity, a secondary objective has always been to make a difference in the communities we serve.

In the 1930s, it was going from community to community teaching farmers and homeowners how to use electrical appliances. In the 1960s, we began working with local high schools in the Washington Youth Tour program. In the 1970s, it was developing energy conservation programs.

MTEMC members continue to exemplify how just a few cents per month add up to make a big difference in our communities through Operation Round Up and the Customer’s Care Foundation. It is the power of members that make this program the success it has become, with more than $7 million going back to local communities, 100% of what has been donated, over the past 10 years.

Concern for community - another way the electric cooperative distinguishes itself as something more than just a power company.

Community Donations

$7.3 Million Operation Round Up

MTEMC’s Operation Round Up has awarded $7.3 million to local charities and community organizations over the last ten years. From volunteer fire departments and rescue squads to food banks, hospices and youth programs, MTEMC members have made a difference through the Customers Care Foundation. By rounding members’ bills to the next highest dollar, the foundation has turned individual resources into a community-wide benefit, essentially turning excess change into change for the better.

Project Help

Members may donate $1 or more on their monthly bills to assist others - elderly, disabled or economically challenged members - in paying their electric bills.

By the Numbers

Average Annual Price Increase over the Last Decade

Electricity 3.2%
Gas 11.1%
Eggs 7.8%
Apples 4.8%
Orange Juice 3.6%
Bread 3.4%
Source: U.S. Bureau of Labor Statistics Consumer Price Index 12-month percent change averaged from 2002 through 2012
Renewable Energy
Middle Tennessee Electric partners with the Tennessee Valley Authority to offer its members renewable energy options. Currently, the cooperative has systems that range in design capacity from 1.8 kilowatts to 1 megawatts - totaling more than 5 megawatts of distributed renewable generation on the system. Renewable energy projects include those that generate electricity through solar, wind and other resources.
MTEMC's member growth since 1936

Annual Financial Report

  2010 2011 2012 2013 2014
Income Statement
Total Revenue 460,425,902 526,444,173 511,459,466 525,686,132 553,468,966
Power bought from TVA 362,338,265 419,650,460 413,906,130 414,206,693 440,257,233
Operations and maintenance 55,920,724 52,901,230 55,544,519 58,976,804 62,423,508
Depreciation and acquisition adjustment 19,501,770 18,001,530 20,669,966 21,805,900 23,301,637
Interest on borrowed money 3,628,731 3,372,864 3,089,681 2,899,218 2,827,332
Total Operating Expense, Purchase Power, and Debt Expense 441,389,490 493,926,084 493,210,296 497,888,615 528,809,710
Net margins 19,036,412 32,518,089 18,249,170 27,797,517 24,659,256
Principal payments on loans 4,975,602 4,784,522 4,145,448 3,228,690 2,489,896
Balance after Principal Payments 14,060,810 27,733,567 14,103,722 24,568,827 22,169,360
Balance Sheet
Assets
General funds and working capital 5,613,618 32,934,315 57,820,281 58,942,116 80,957,297
CFC certificates and other investments 4,731,888 5,445,238 5,615,958 5,757,590 5,940,158
Renewal and replacement funds 1,281,800 788,920 590,925 590,925 591,925
Bills due us 43,425,031 70,150,954 68,184,616 83,301,848 87,781,559
Materials on hand 3,635,254 3,988,214 4,050,648 3,510,796 3,446,893
Payments in advance 1,611,776 1,686,106 1,955,664 1,766,493 1,968,136
Electric lines and property less depreciation 347,144,758 350,777,397 351,141,498 359,410,368 369,092,050
Total Assets 407,444,125 465,771,144 489,359,590 513,280,136 549,778,018
Liabilities
Bills we owe 28,442,385 46,847,505 53,983,804 50,028,696 54,261,549
Consumer deposits 8,654,394 9,541,637 10,541,402 11,663,143 12,334,271
Accrued taxes 2,341,828 2,413,726 2,531,862 2,529,723 2,575,195
Long-term debt to RUS, CFC, and others 90,911,087 89,567,677 93,782,752 95,434,787 106,982,159
Total Liabilities 130,349,694 148,370,545 160,839,820 159,656,349 176,153,174
Net Worth
Earnings reinvested in system - prior year 258,058,019 284,882,510 310,270,600 325,826,270 348,965,587
Earnings reinvested in system - current year 19,036,412 32,518,089 18,249,170 27,797,517 24,659,257
Total Net Worth 277,094,431 317,400,599 328,519,770 353,623,787 373,624,844
Total Liabilities and Net Worth 407,444,125 465,771,144 489,359,590 513,280,136 549,778,018

 

Statistical Report

  2010 2011 2012 2013 2014
Statistical Information
Number of Members Served 184,097 185,905 190,750 194,770 200,511
Total Miles of Line Energized 10,324 10,393 10,470 10,562 10,682
Number of Distribution Substations 32 32 34 34 34
System Electrical Demand in Kilowatts 1,203,400 1,313,747 1,325,623 1,277,948 1,432,287
Total Kilowatt Hours Purchased by MTEMC 5,465,816,004 5,945,951,826 5,411,752,350 5,523,081,659 5,832,512,242
Cost of Power $362,338,266 $419,650,460 $413,906,130 $414,206,693 $440,257,233
Total Kilowatt Hours Used by All Members 5,243,029,507 5,581,441,597 5,211,835,138 5,386,766,372 5,675,718,622
Total Electric Revenue $449,812,377 $514,741,064 $500,267,614 $514,430,391 $540,342,184
Uncollectible Accounts 0.23% 0.27% 0.18% 0.16% 0.12%
*Times Interest Earning Ratio (TIER) 6.25 10.64 8.17 10.59 9.72
Percent of Line Losses 4.08% 6.13% 4.59% 2.47% 2.69%
Average Cost per Kilowatt Hour Purchased Power 6.63 cents 7.06 cents 7.58 cents 7.50 cents 7.55 cents
Average Cost per Kilowatt Hour to Member 8.58 cents 9.22 cents 9.58 cents 9.57 cents 9.48 cents
Average Monthly Residential Electric Bill $132.50 $151.94 $139.65 $143.21 $147.37
Plant Investment per Service $2,718 $2,782 $2,780 $2,839 $2,889
Number of Employees 371 377 370 370 393
Member to Employee Ratio 496 493 516 526 510
* TIER - Times Interest Earning Ratio - The ability of MTEMC to pay interest on its debt is determined by this ratio.
MTEMC presently is able to pay interest on its long-term debt 10.59 times.

Your MTEMC...Providing Affordable, Reliable, Safe Electricity and Outstanding Member Service