Middle Tennesse Electric Membership Corporation

MTEMC 2016 Annual Report

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

President & Chairman Messages

Focusing on delivering affordable, reliable and safe electricity while providing outstanding member service, Middle Tennessee Electric Membership Corporation (MTEMC) continues to build upon the foundation as a trusted energy advisor.

Chris Jones, President

Chris Jones

We continue to build on our commitment to our members of delivering a great value while we continue to grow. We are focused on becoming the trusted energy advisor in Middle Tennessee.

Mike Woods, Chairman

Mike Woods

For 80 years, MTEMC has grown from a small electric distribution cooperative to one of the largest in the nation, and it’s due to the hard work of the employees and the active participation of the membership. There is a bright future ahead for the membership and the cooperative.

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
District 2C
David Lee David Lee
District 2B
Mike Woods Mike Woods
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
District 4C
Jim Mills Jim Mills
District 4D
Tom Purkey Tom Purkey
Vice Chairman
District 4A

Director Emeritus

Dan Smith Dan Smith

Our People Make Us Who We Are

Reliability is paramount in the electric business, and MTEMC has more than 400 employees that form the tightknit team ensuring when our members flip the switch, the lights come on. From our linemen in the field to our member service representatives in the offices, Team MTEMC is focused on the reliability of the system while keeping power affordable through energy efficiency programs.

Improved Reliability

Middle Tennessee Electric makes continual infrastructure investments to ensure members have power when they want it. Programs like the cooperative’s proactive vegetation management program helps reduce the potential of outages caused by trees and other vegetation, and the new, Advanced Metering Infrastructure that has been put in place provides faster outage response, ultimately improving the level of service provided to you, our member.

Service Through Technology

In Fiscal 2016, the cooperative built on its legacy of being the trusted energy advisor to its membership. MTEMC leads the 7 state TVA region in its solar energy efforts, has broken ground on its first cooperative solar project, and is exploring the feasibility of broadband internet services.

Commitment to Community

Middle Tennessee Electric is committed to making a difference in the communities it serves. In Fiscal 2016, the cooperative launched a rebranded charitable foundation, streamlining the program and offering more ways for members to participate. SharingChange was born from the successes of previous programs and continues the rich tradition of giving back 100 percent of member donations to local charitable organizations. To date, 580 charitable organizations have received more than $9 million. All of these dollars make an local impact.


meters served

Programs to Serve Our Members

The future of MTEMC is bright. We are laying foundations now that will pay dividends in the future. As our members begin to ask important questions, we want to be in a position to not only provide good answers, but to also provide them outstanding service. We are your family, friends and neighbors; we are a cooperative and we are here to serve you.

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.

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.

SharingChange Scholarship

SharingChangeEach July, ten 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 SharingChange 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.

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
MTEMC's member growth since 1936

Annual Financial Report

      2016 2015
Condensed Balance Sheet
Utility Plant     $657,049,083 $621,866,640
Less accumulated depreciation     (232,089,004) (226,013,027)
      424,960,079 395,853,613
Investments and Special Funds     8,588,997 6,729,665
Current Assets
Cash and Cash Equivalents     73,292,274 91,095,333
Accounts Receivable     38,487,210 38,776,214
Accrued Utility Revenue     21,884,397 25,390,858
Materials and Supplies     4,496,860 3,158,547
Other Current Assets     3,844,400 3,593,935
      142,005,141 162,014,887
Deferred Debits     18,024,432 20,184,466
Total Assets     $593,578,649 $584,782,631
Equities and Liabilities
Equities     $398,507,504 $387,483,825
Long-Term Debt and Other Long-Term Liabilities     112,005,000 114,480,050
Current Liabilities
Current Maturities of Long-Term Debt     5,432,454 5,205,919
Accounts Payable     49,526,398 49,060,531
Consumer Deposits     13,004,978 13,395,397
Accrued Expenses and Other Current Liabilities     10,368,700 10,293,472
      78,332,530 77,955,319
Deferred Credits     4,733,615 4,863,437
Total Equities and Liabilities     $593,578,649 $584,782,631
Condensed Statement of Revenue and Expense
Operating Revenue     $543,855,839 $558,334,063
Operating Expenses
Purchased Power     434,256,349 451,830,815
Distribution Operations     23,860,621 21,789,472
Distribution Maintenance     17,022,039 16,025,068
Consumer Accounts     18,764,716 18,077,036
Consumer Information/Sales     1,133,509 1,019,368
Administrative and General     13,305,634 12,229,084
Depreciation     24,012,946 22,534,342
Other     241,863 241,863
      532,597,677 543,747,048
Operating Margins     11,258,162 14,587,015
Interest Expense     (2,680,386) (2,988,445)
Nonoperating Income     1,478,003 1,292,513
Net Margins     $10,055,779 $12,891,083


Statistical Report

  2016 2015 2014 2013
Statistical Information
Total Electric Sales Revenue $532,808,731 $547,468,724 $540,342,184 $514,430,391
Megawatt Hours Used by All Members 5,653,766 5,757,506 5,675,719 5,386,766
Number of Accounts Billed 212,919 206,428 200,511 194,770
Average Cost per kWh to Member 9.42 cents 9.49 cents 9.48 cents 9.57 cents
Average Monthly Residential Electric Bill $133.71 $143.73 $147.37 $143.21
Cost of Power Purchased $434,256,349 $451,830,815 $440,257,233 $414,206,693
Megawatt Hours Purchased by MTEMC 5,810,733 5,961,563 5,832,512 5,523,082
System Electrical Demand in Megawatts 1,301 1,410 1,432 1,278
Average Cost per kWh Purchased Power 7.47 cents 7.58 cents 7.55 cents 7.50 cents
Total Miles of Energized Line 10,977 10,810 10,682 10,562
Provided financial information is the unaudited information for FY2016.

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

Thank you for viewing the MTEMC 2016 Annual Report. Please enjoy the full version of the Chairman and President's Report.