2014 MOUNTAIN PARKS ELECTRIC, INC. ANNUAL REPORT
BOARD PRESIDENT AND GENERAL MANAGER REPORT
TOGETHER WE SERVE
T
The year 2014 completed our 68th year of service to memberowners of Mountain Parks Electric, Inc. The cooperative delivered safe and reliable electric energy, at a fair and reasonable
value.
MPEI delivered 277,803 megawatt-hours, a decline of 9 percent, resulting in revenues of $34.8 million. Deduction of our
total cost of electric service at $33.6 million resulted in an operating margin of $1.1 million for the year. Addition of patronage
capital from our supplier, Tri-State Generation and Transmission Association, and other cooperative partners added another
$1.4 million to the total margins.
MPEI assets at year-end were $95.3 million; long-term debt
obligations were $34.3 million. Member-owners’ margins and
equities are now 53 percent of total assets. No funds were borrowed in 2014.
As we entered 2014, the MPEI board authorized capital credit
retirements of $1.4 million to our owners; over the years we have
refunded a total of $15.5 million in credits.
MPEI connected 121 new services in 2014, bringing our total
services to 19,881; we have 1,828 miles of line in place.
The cost of purchased power from Tri-State decreased to $21.2
million; average cost was $72.64 per MWH.
Our average residential user of 703 kilowatt-hours per month
paid $100.70, representing an increase of 2.1 percent over 2013
rates. MPEI rates are essentially at the median (middle) of electric rates in Colorado.
Reliability continued to be a focus of excellence; the average
outage time per consumer was 54 minutes, compared to our fiveyear average of two hours per consumer. MPEI’s 59 employees
continued to work smart, hard and safe to take care of all our
members.
Among the significant events of 2014, we are pleased to report
the following:
• 173 customer projects were released for construction, an
increase of more than 31 percent over 2013.
• 11 projects related to production of oil and natural gas were
engineered in Jackson County.
• MPEI engineers, operations personnel and consultants
developed a new 20-year (2015-2035) long-range plan, with total
estimated costs of $143 million.
• A new four-year construction work plan was approved, with
$23.5 million for replacement of aged facilities.
• MPEI’s board approved an advanced metering infrastructure
project, totaling over $4 million.
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• A new Blue River Substation
delivery point with Tri-State and Xcel
Energy was approved, with engineering to be done in 2015.
• Town of Grand Lake rebuild of
two miles of obsolete lines project represented an investment of $1 million.
During the year, many of you
contributed to the Mountain Parks
Charitable Trust by way of Operation
Round Up® (rounding up electric bills
to the nearest dollar to support the
charity). The charitable trust was able
to provide $69,038 to individuals and
organizations in our service territory; since inception it has disbursed
$885,914.
[contined on page 8]
Greg Norwick, President, District 4
Joe Pandy, General Manager
Mountain Parks Electric, Inc., Annual Meeting
66 th Annual Meeting
Saturday, May 16, 2015
MPEI Main Office Warehouse
321 W. Agate Ave. • Granby, CO
8 a.m. Registration and breakfast
9:15 a.m. Business session called
to order
Welcome
Close registration
Determination of quorum
Notice of Annual Meeting proof
of mailing
Approval of minutes —
Annual Meeting May 10, 2014
President’s report
Committee reports
Scholarship awards and D.C. Youth
and Leadership Camp Recognition
Open forum
Old business
New business
District 2 and District 5 director election
Prize drawings
Adjourn
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[2014 MPEI ANNUAL REPORT]
TOGETHER WE SERVE
[contined from page 7]
The Mountain Parks Electric Educational Trust, funded
by unclaimed capital credits, granted funds for scholarships and driver education classes in the amount of $69,362
in 2014; since the inception, the Educational Trust has
supported education in the amount of $1,118,600. Working
with our trusted partner, Cooperative Finance Corporation, the board authorized an investment of $700,000 of the
trust funds in a 30-year investment at a 5 percent interest
rate, to ensure the long-term viability of the trust.
Voluntary contributions by our members to the Green
Power Fund totaled $23,508 in 2014. Solar projects received
disbursements of $18,000, bringing total grants to $63,500.
All of us who govern, manage and work for MPEI are
proud of our 68-year record of providing safe, economical
and reliable service to our cooperative member-owners,
despite the challenging environment of our mountainous
terrain!
On behalf of the entire board of directors and staff of
MPEI, we thank you for your business and positive interactions with the cooperative business model. We look forward
to communicating with you at our annual meeting on
May 16, 2015, at our headquarters in Granby, and to serving
your energy needs in the future.
Greg Norwick, President, District 4
Richard Zieff — Vice President,
District 2
Elizabeth McIntyre — Assistant
Secretary/Treasurer, District 6
Jeff Hauck — Secretary/
Treasurer, District 5
Carl Trick II — Assistant
Secretary/Treasurer, District 3
Rick Jerrigan — Assistant
Secretary/Treasurer, District 1
Greg Norwick, President
Joe Pandy, General Manager
District 2 and District 5
Election of Board of Directors
Mountain Parks Electric, Inc. is managed by a board of six members, known as directors. For
the purpose of the election of the members of the board, the areas serviced by the cooperative are divided in six districts. The term of each member of the board selected at a district
election commences upon his or her election for a term of three years thereafter. District
director elections are held at the annual meeting of the members. Directors exercise all of
the powers of the cooperative, except those powers conferred upon and reserved to the
members, according to the bylaws of Mountain Parks Electric, Inc.
One petition for District 2 and one petition for District 5 election were filed with the board
within the time permitted for nominations.
District 2 – Richard Zieff (incumbent) — Winter Park/Fraser Valley-West
District 5 – Jeff Hauck (incumbent) — Grand Lake
Directors Hauck and Zieff were the only members to submit petitions to serve on the board
by the deadline of 5 p.m., February 26, 2015. No mail-in ballots will be mailed to members
in District 2 and District 5 since this is an uncontested election. For additional information,
please refer to MPEI bylaws, or call Mountain Parks Electric, Inc., at 970-887-3378.
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[2014 MPEI ANNUAL REPORT]
MOUNTAIN PARKS ELECTRIC, INC.
Annual Meeting of the Members Minutes
Granby, Colorado • May 10, 2014 • 9:15 a.m.
Location
MPEI’s 65th Annual Meeting of the members was held
at Mountain Parks Electric headquarters office, 321 W.
Agate Ave., Granby, CO 80446.
Call to Order
General Manager Joe Pandy called the meeting to order
at 9:15 a.m.
Prayer & Pledge of Allegiance and National Anthem
Father Ryan Cullen Thomas Aquinas O’Neill, Parochial
Vicar, led a prayer followed by the Pledge of Allegiance.
Juliet Shams sang the National Anthem.
Close Registration
General Manager Joe Pandy closed member registration.
Introductions
General Manager Joe Pandy introduced the MPEI Board
of Directors, MPEI Attorney and Special Guests.
copy of which is attached and forms a part of these
minutes.
Operation Round Up Report
Clare Rutila, Charitable Trust President, presented an
update on MPEI’s Charitable Trust. A copy of the presentation is attached and forms a part of these minutes.
Green Power Program Report
Alex Buhayar, Green Power Committee Member, presented a report on MPEI’s Green Power Program. A copy
is attached and forms a part of these minutes.
Electric Industry Report
General Manager Joe Pandy presented an Electric Industry Report. A copy of the report is attached and forms a
part of these minutes.
Scholarship Award Presentations
MPEI Directors announced the following scholarship
winners:
Determination of Quorum
•Cody Volt of West Grand High School was awarded a
Attorney Williamson reported that 107 members had
$2,000 Mountain Parks Electric Academic Scholarship.
registered. The list of those registered is hereby attached
•Nicholas Ritschard of West Grand High School was
and an official quorum was present.
awarded a $2,000 Mountain Parks Electric Academic
Scholarship.
Proof of Mailing/Election of Directors
•Emily Gardner of Middle Park High School was
Attorney Williamson acknowledged the notice of the
awarded a $2,000 Mountain Parks Scholarship.
Annual Report/Annual Meeting and “Proof of Mailing”
•Danielle Keen of Middle Park High School was
with 17,045 Annual Reports mailed on March 31, 2014. A
awarded a $1,000 Tri-State/ Mountain Parks Electric
copy of the proof of mailing is attached and forms a part
Matching Scholarship.
of these minutes.
•Simona Senovaityte of Middle Park High School was
Approval of Minutes
awarded a $2,000 Mountain Parks Electric Scholarship.
Attorney Williamson presented the minutes of the May
•Jenna Curran of Middle Park High School was awarded
11, 2013 MPEI Annual Meeting for approval.
a $2,000 Mountain Parks Electric Scholarship.
MOTION: Member Eden Recor moved to approve
•Haley Pedersen of Middle Park High School was
MPEI’s May 11, 2013, Annual Meeting
awarded a $2,000 Mountain Parks Electric Scholarship.
minutes as presented in the Annual Report.
•William Doebling of Winter Park Christian School was
The motion passed unanimously.
awarded a $2,000 Mountain Parks Electric Scholarship.
Attorney Williamson, announced collection of District 6
•Alex Anderson of North Park High School was
Floor Ballots.
awarded a $2,000 Mountain Parks Electric Scholarship.
•Nicholas Peters of North Park High School was
Bylaw Change
awarded a $2,000 Mountain Parks Electric Scholarship.
Attorney Williamson explained MPEI’s proposed change
•Shelby Reneau of North Park High School was
to Bylaw Article IV Section 6 “Removal of Board Memawarded a $2,000 Mountain Parks Electric Scholarship.
bers by the Board of Directors”.
•Clay Russell of Middle Park High School was awarded
Attorney Williamson called for ballot vote. Attorney
a $1,000 Basin Electric Scholarship.
Williamson announced collection of floor ballots.
•Talise Hansen of Middle Park High was awarded a
President’s Report
$1,000 Tri-State/Mountain Parks Electric Matching
MPEI President Greg Norwick presented his report, a
Scholarship.
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•Ariel Bowman of Middle Park High School was
awarded the $500 Scholarship Committee Award.
•Jill Carol Wilkinson of West Grand High School was
awarded an all expenses trip to Washington D.C. for
her energy related essay.
Open Forum
Greg Norwick, MPEI Board President, and General Manager Joe Pandy opened the meeting to an open forum
for questions or concerns of the membership. Several
questions were asked by members.
Old Business
No old business.
New Business
Member Approval of Bylaw Amendments
Attorney Williamson referred to the proposed change to
Bylaw Article IV Section 6. “Removal of Board Member
by the Board of Directors” and asked for any questions.
A copy of the Annual Report with the Bylaw changes is
attached and forms a part of these minutes.
Attorney Williamson reported 87 members voted in
favor of the Bylaw amendment 0 voted against. Attorney
Williamson reported the Bylaw change is approved as
presented.
District 4 Election Results
Attorney Williamson reported the candidate for District
4 is uncontested and therefore Greg Norwick is deemed
elected for a three (3) year term.
District 6 Election Results
Attorney Williamson announced the results of the
District 6 director election.
• Liz McIntrye received 322 votes
• Richard Jernigan received 639 votes.
Richard Jernigan is elected for a three year term.
Thank you
General Manager Joe Pandy thanked Rosemary Knerr and
all the MPEI employees for their efforts planning and
volunteering for the Annual Meeting.
Door Prizes
Door prizes were drawn and presented to MPEI members. A list of the door prize recipients is attached and
forms a part of these minutes.
Jeff Hauck, Secretary/Treasurer
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[2014 MPEI ANNUAL REPORT]
BALANCE SHEET
December 31, 2013, and 2014*
Assets
Total utility plant
Accumulated depreciation
Net utility plant
Other property & investments
Current assets
Deferred debits
Total assets
20132014*
$88,137,178
$91,411,455
(25,258,632)
( 27,173,310)
62,878,546
64,238,145
22,697,216
23,131,952
6,265,539
6,176,462
2,095,626
1,756,364
$93,936,927
$95,302,923
Power cost — 63.2%
Operations & maintenance — 12.5%
Customer accounts — 4%
Customer service & sales — 1.2%
Administration — 6.3%
Depreciation — 8.7%
Equities & Liabilities
Patronage capital & equity
Long-term debt
Current liabilities
Other credits
Total equity & liabilities
$48,913,649
34,393,227
5,306,599
5,323,452
$93,936,927
Statement of Operations
Operating revenues
Cost of power
Operating expenses
Depreciation
Interest
Other expenses
Total 2013
2014*
$35,479,283$34,763,624
22,357,299
21,245,122
7,494,237
8,057,979
2,429,4892,914,567
1,319,348 1,354,094
56,291
51,249
$33,656,664
$33,623,011
Operating margins
Interest income
Nonoperating margins
Patronage capital (other)
Total margins
OPERATING
EXPENSES 2014
$50,458,590
33,448,787
5,990,204
5,405,342
$95,302,923
$1,822,619$1,140,613
42,749
39,265
73,935
909
1,646,352
1,344,273
$3,585,655
$ 2,525,060
Interest — 4.1%
NOTICE OF 2014 PATRONAGE
CAPITAL ALLOCATION
This is to advise the patrons of Mountain Parks Electric, Inc.,
that the total margins earned by MPEI during 2014 will be
assigned to each patron’s capital credit account. All revenues
received by MPEI, in excess of total expenses, are allocated as
patronage capital furnished and assigned in direct proportion
to the amount of revenue furnished.
For the year 2014, Mountain Parks Electric’s operating margins were $2,525,060. This margin represents 7.4 percent of
your annual billing being credited to your patronage account.
The Board of Directors of MPEI may retire capital credits
when, in its judgment, such retirements will not impair the
financial condition of MPEI.
*Unaudited
2014 MPEI
Statistical
Information
Counties Served......................Grand, Jackson,
Summit, Routt and Larimer
Number of employees................................... 59
Year organized............................................... 1946
RUS Borrower No. ........................Colorado 42
Total plant in service.......................$ 91,411,455
Property taxes ....................................$ 386,940
Monthly board meetings........2nd Thursday
Power Source........ Tri-State Generation and
Transmission Association, Inc.
Consumers per mile..................................... 10.8
Miles of line................................................... 1,828
Meters served............................................. 19,881
Interest paid.......................................$ 1,354,094
New services added........................................121
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APRIL 2015
MOUNTAIN PARKS ELECTRIC, INC.
STATEMENT OF NONDISCRIMINATION
This institution is an equal opportunity provider and employer. If you wish to file a civil rights program
complaint of discrimination, complete the U.S. Department of Agrigulture Program Discrimination
Complaint Form found online at www.ascr.usda.gov/complaint_filing_cust.html or at any USDA office,
or call 866-632-9992 to request the form. You may also write a letter containing all of the information
requested in the form. Send your completed form or letter by mail to U.S. Department of Agriculture,
Director, Office of Adjudication, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410, by fax to
202-690-7442 or by email to [email protected].
MOUNTAIN PARKS ELECTRIC’S 2015 ENERGY EFFICIENCY REBATES
Electric Water Heaters
Energy Star Appliances
LED Lightbulbs
(excludes tank-less water heaters)
• Lifetime tank warranty $95
• Standard tank style (no lifetime
warranty) $70
• Dishwasher — $30
• Clothes washer — $40
• Refrigerators — $40
• Refrigerator/freezer recycling — $40
• 300 or > lumens
• LImit 50 lightbulbs/year/customer
• Lower of 50% of lamp cost or
$10/bulb
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