beartooth electric cooperative board of trustees …...three example rate designs: • base, demand,...

BEC BOARD OF TRUSTEESJulie Lindgren, President District 3—Roberts, Bearcreek [email protected] 406-671-1086

Bill Pascoe, Vice PresidentDistrict 6—Nye [email protected]

Arleen Boyd, Secretary/TreasurerDistrict 5—Fishtail [email protected]

Dan DuttonDistrict 1—Bridger, MT, Clark, WY [email protected]

Roxie MeltonDistrict 2—Boyd, Joliet [email protected]

Richard NolanDistrict 4—Red Lodge [email protected] 406-425-2269

Ralph LewisDistrict 7—Columbus, Rapelje, Reed [email protected]

__________________________

Kevin P. Owens, PEGeneral ManagerPO Box 11101306 Broadway Ave NRed Lodge, MT [email protected]

Beartooth Electric Cooperative Board of Trustees Meeting

September 24, 2019

BEC Board Book | September 24, 2019 |

mailto:[email protected]







Beartooth Electric Cooperative Regular Board Meeting Tuesday, September 24, 2019

Noon | Beartooth Electric Office Agenda

1. Call Meeting to Order

2. Pledge

3. Visitors Comments

4. Approve Agenda

5. Approve Minutes

• August 27, 2019 Board Meeting

6. Committee/Trustee/Attorney Reports

• Finance Committee (Julie Lindgren)• Risk Management Committee (Arleen Boyd)• Bylaw Committee (Arleen Boyd)• Policy Committee (Roxie Melton)• Communication Committee (Richard Nolan)• Treasurer’s Report (Arleen Boyd)

CONSENT AGENDA (Items 7-9, shown in blue)

7. Membership Connections and Cancellations, Capital Credit to Estates, Registers, Reports, and Summary of Disbursements

8. Financials – Brad Prophet

• 2019 – August Financial Statements• Revised 2019 Budget

9. Staff Reports

• General Manager Report – Kevin Owens• Member Communication & Services Report – Kaaren Robbins• Line Superintendent Report – Eric Elton


10. New Business• Policies

-- Trustee Policy 207 Evaluation of the General Manager -- Trustee Policy 207 General Manager Performance Evaluation -- Financial Policy 307 Power Supply and Transmission

10. Old Business

• Board Strategic Planning Session (October 2-3, 2019) – Julie Lindgren

11. Upcoming Meetings

• BEC Bylaw Committee Meeting | BEC Office | October • BEC Strategic Planning Meeting | Carbon Fork, Red Lodge, MT | October 2-3, 2019• MECA Annual Meeting | Great Falls, MT | October 7-9, 2019• BEC Policy Committee Meeting | BEC Office | October 16, 2019 | 2 PM• BEC Communication Committee Meeting | BEC Office | October 22, 2019 | 2 PM• BEC Finance/Risk Management Committee Meeting | BEC Office | October 24, 2019 | 2 PM• BEC Regular Board Meeting | BEC Office | October 29, 2019 | Noon

12. Executive Session

13. Executive Action

14. Adjourn


Beartooth Electric Cooperative Regular Board Meeting Tuesday, August 27, 2019 | Noon

Beartooth Electric Office Minutes

Beartooth Electric Cooperative will be referred to as BEC herein. The Glossary of Terms and Acronyms website link is http://www.BeartoothElectric.com/content/glossary.

1. Call to Order: Board President, Julie Lindgren, called themeeting to order at 12:03 p.m.

2. Pledge of Allegiance

Present: Presiding: Julie Lindgren, Bill Pascoe, Arleen Boyd, DanDutton, Roxie Melton, and Ralph Lewis

Staff:Kevin P. Owens, General ManagerEric Elton, Line SuperintendentBrad Prophet, AccountantKaaren Robbins, Member Communication & Services

Via telephone:Larry Martin, Legal Counsel

Visitors:Jim Rodgers, Risk Management Committee MemberFrank Willett, Finance and Risk Management Committee Member

3. Visitor CommentsNone.

4. Approve Agenda

MOTION A motion was made by Arleen Boyd and seconded by Daniel Dutton, to accept the August 27, 2019, agenda with edits. Motion carried. Voting was unanimous.

5. Approve Minutes

MOTION A motion was made by Bill Pascoe and seconded by Arleen Boyd to accept the minutes of the July 30, 2019, regular board meeting as presented in the hard copy board book. Motion carried. Voting was unanimous.


http://www.beartoothelectric.com/content/glossary

6. Committee/Trustee/Attorney Reports• Finance Committee (Julie Lindgren)

The Finance Committee met at the open of the Risk ManagementCommittee meeting, August 19, 2019.

Brad Prophet walked through the second quarter financial reportwith the finance committee and risk management and board members inattendance. Final results held no surprises since the board hadpreviously reviewed monthly reports. In response to committeecomments, Brad will, before the August 26 Board meeting, add the2014 annual meeting expense on page 28. He also will provide anexplanation of why the year-end long-term debt numbers in thefinancial forecast for 2017, 2018, and 2019 are not the same numberas the beginning long-term debt for the following year. He seesthis as the result of a CFC forecast calculation that does notprecisely reflect BEC numbers but believes they are the correctnumbers.

Recommendation: The committee recommends acceptance by the Board ofthe Q2 financial statements with recommended changes.

MOTION A motion was made by Roxie Melton and seconded by Daniel Dutton to accept second-quarter financial statements with recommended changes. Motion carried. Voting was unanimous.

There was a discussion of creating a revised budget to reflect two issues affecting the 2019 budget: depreciation and the allocation of employee time between the capital and operating expenses. There also could be a significant increase in NWE transmission expense, which was not budgeted. At the board meeting Julie Lindgren will announce a decision reached with Manager Kevin Owens to authorize creation of a revised budget six months into the year under set circumstances (corrections or updates identified to exceed $100,000).

Recommendation: The committee recommends acceptance by the Board of the Q2 financial statements with recommended changes.

MOTION A motion was made by Ralph Lewis and seconded by Roxie Melton to implement a board practice to annually allow a revised budget if, at the six-month review significant change in spending, revenue or margins are $100,000 or more and the revision clearly indicates the changes. Motion carried. Voting was unanimous.

• Risk Management Committee (Arleen Boyd)Attending committee: Frank Willett, David Peterson, Jim Rodgers,Walter Clapp, Bill Pascoe, Julie Lindgren, Arleen Boyd. Board andother attendees: Dan Dutton, Richard Nolan, Roxie Melton, BradProphet, Kevin Owens, Russ Schneider (phone), Larry Martin (phone).


Risk Management Agenda, August 19, 2019: • Finance Committee review of Q2 financials• Rate Design Analysis — Russ Schneider, EES• BEC Forecast, Next Steps — Discussion, identify what-if runs• Catastrophic Risk Developments (TBD) — Walter Clapp• Update, Shares du Soleil and NWE OATT Filing — Kevin Owens

Risk Management report – Bill Pascoe and Kevin Owens worked with Russ Schneider on calculations and framing for the EES presentation -- Arleen and Bill reviewed the presentation with Russ to prepare for the Risk Management meeting on August 19.

The chair welcomed RUSS Schneider, EES Senior Financial Analyst who joined the group via phone and electronic slide presentation of Rate Design Analysis Beartooth Electric Cooperative. Bill Pascoe and Russ reported on the intent to use specific rate design examples to answer questions raised in the previous meeting – exactly how would any rate design change impact bills for various members classes, and individuals within classes.)

The presentation sets out to: • Select a few rate design examples to illustrate potential billimpacts• Develop ideas for specific customer types that are easy formembers to understand• Look at how each rate design example could affect the bills ofcustomers within different rate classes

COSA unit costs were recently calculated for all member classes. This rate design analysis starts with a focus on the residential and small commercial with initial information for later development of large commercial, industrial, and irrigation in any rate design analysis. The presentation looks at residential customers using three example rate designs: • Base, demand, and energy,• $50 minimum bill,• $50 minimum with $30 base and $2 demand.

The analysis looks at the impacts on rates/bills for each of the three approaches on low use, average use, and high use customers. The purpose of the presentation is to look at impacts on members of example rate designs and test examples and identify others for consideration

The co-op costs, reflected in the COSA and used for a rate design analysis include: paying for electricity, maintaining the system structure to deliver the power, administering member services, and meeting the obligations of running a service business. COSA assigns these items in detail to members by class. With new meters, we have the opportunity to accurately assign the costs for individual members and reach conclusions about fair payments by segments and


individuals within the existing classes. We can identify and discuss how costs are assigned to set rates and, with improved demand data and load factor analysis how to get a clear, granular look at members within a class and whether they are carrying their fair share of the cost assignment for their class.

Next steps will include gathering demand data for the seasonal, weekend, and net-metered accounts. Kevin is reviewing the internal data to see what is available. This will fill in data for the three example alternatives.

The minimum bill approach received skepticism and some opposition from committee members. There was agreement that it was an example, not a proposal and that other examples will be examined.

Recommend updating the presentation and posting it after the next meeting with clear statements that this is an analysis exercise in-progress, to look at examples, not a proposal for new rate design.

The committee postponed the remaining agenda items until its scheduled September 10 meeting due to time constraints. The chair circulated a “starter” list of questions about the rate design analysis process, objectives, and terms and approach. The committee and board members are examining the list, adding question and comments – especially to the basic question: what are the reasonsfor considering a change to the BEC rate design? The list will be a discussion topic at the next meeting.

• Bylaw Committee (Arleen Boyd)The committee is reviewing the Bylaws in order to define theagenda for our next meeting. The approach the committee is takingis to define several categories of review:

1. Identify bylaws that are not as clear as they might be andwould make more sense if rewritten

2. Identify bylaws that are confusing the bylaws themselvesseem quite confusing

3. Identify bylaws which are Montana Code Annotated law orstill law, and if they read according to the law.

Committee Chair, Boyd has sent counsel a few items which require legal review to provide direction to the committee.

Trustee Lewis inquired why is State of Montana law in the cooperatives’ bylaws. Counsel Martin provided this explanation: The State of Montana in its statutes defines rights and obligations of cooperatives. Therefore, the cooperative bylaws need to reflect and be in compliance with the state statutes.

The Committee will teleconference on September 6, 10:00 AM for a review meeting to define the agenda for the next face-to-face meeting.


• Policy Committee (Roxie Melton)The Committee is scheduled to meet Thursday, September 17, 2019,at the BEC Office, at 2 PM. A review will begin on the 200Trustee and Manager policies. In addition, General Manager Owenswill present a draft PrePay Policy. Trustee Pascoe state he isworking on the rough draft of Financial Policy-309 he will haveprepared for presentation.

• Communication Committee (Richard Nolan)Committee Chair Nolan is absent today due to a medical condition.Kaaren Robbins will conduct the Communication Committee reportduring the Consent Agenda.

• Treasurer’s Report (Arleen Boyd)Treasurer Boyd reported she has a meeting planned withAccountant Prophet in the next week to review the accountingsystem and its functions. Treasurer Boyd will report on thesystem next month.

CONSENT AGENDA (Items 7-9, shown in blue)

7. Membership Connections and Cancellations, Capital Credit toEstates, Registers, Reports, and Summary of Disbursements

8. Financials—Brad Prophet• Accountant Brad Prophet presented the July 2019 financials.

Questions:• Trustee Dutton asked about the forms that appear on pages 46-47,

are they sent to RUS? Accountant Prophet stated no, these areinternal forms, The Cooperative reports to the RUS annually.

• Trustee Dutton asked if the budget changes previously discussedwill be made in these reports as well? Accountant Prophet statedyes, and the same change notes will appear in this document asin the revised budget.

• Trustee Pascoe commented on Prophet’s review of the reduction inkWh sales and its effect on revenue. Pascoe commented there is adifference in how that effects revenue between the Residentialand Small Commercial-where it is heating/air driven, and theIrrigation class and the difference is in the rate design. Inthe residential/small commercial classes we are charging 9 centsa kwh because we are collecting a lot of non-energy costs in theenergy charge. So, if heating/air sales are down we lose the 9cents in kWh revenue, save 4 cents in power costs, so we losenet 5 cents. On the irrigation rate, we have a demand charge.Assuming irrigators turn on irrigation, we collect the demandrevenue, we lose 5 cents of energy revenue, save 4 cents inpower costs, so we lose net 1 cent. This is a perfect example of


what we are looking at in our rate design study. How do we make our revenues more stable and how do we make the member bills more stable? This is what we are talking about in that forum.

9. Staff Reports

General Manager’s Report—Kevin Owens

• Shares du Soleil community solar project was put out for bid July1. Bids were received August 1. Sundance Solar Systems was the solebidder for the project. The bid was substantially over the projectbudget. I met with the contractor on August 13 to fully understandthe project cost drivers. The soil conditions at the project sitesignificantly impacted excavation and foundation costs. TheContractor was asked to revise their bid to reflect a roof mountsystem to maximize energy output within the project budget. AProject History summary is attached, reflecting how the project hasevolved over the past year. Technology improvements and pricinghave improved substantially over the past year, providingparticipating members a better return on their investment. Whilethe Scope of Work has changed significantly over the past year,participating members will benefit immensely. The project is slatedfor completion mid-October. Project History and Contract forApproval are attached.

MOTION A motion was made by Bill Pascoe and seconded by Roxie Melton to approve the Sundance Solar, $77,500 turnkey, fixed price contract for the Shares du Soleil, Beartooth Electric Shared Solar Array. Motion carried. Voting was unanimous.

• Sen. Steve Daines held a Town Hall Meeting in Red Lodge this pastmonth. NWPPA provided talking points (attached) for utility Boardmembers and staff should they attend any of the Town Hall meetingsduring the recess. I requested support from the Senator on a coupleof the Bills important to Cooperatives.

• Considerable time was spent over the past month to support the RMCommittee on Rate Design matters.

• Considerable time was spent over the past month preparing for theSeptember Policy Meeting. Rules and Regulations are going through asignificant update and rewrite. In the future, they will exist asseparate R & R’s for Montana and Wyoming.

• A new policy for PrePay Accounts was drafted in the past month andwill be ready for discussion at the September Policy Meeting.


• Met with Meg Hatch to review progress on Operation Round Up priorto the Board Meeting.

Member Communication & Service—Kaaren Robbins 1. Communication Committee Meeting

August 20, 2019, BEC Red Lodge Office, 2 PMAttendees included: Chair, Richard Nolan, Janet Luloff, JulieLindgren, Arleen Boyd, Kevin Owens, and Kaaren Robbins.

Agenda• Google Analytics

o How do our visitors come to www.beartoothelectric.com? 65% desktop 35% mobile (29% smartphone/6% tablet) Apple iOS is the top operating system followed by Samsung

Galaxyo How have visitors used our website over the last year? Top Ten• Bill Pay• Contact Us• Welcome BEC Members• About• Employment Opportunities• Report an Outage• Board• Board Meeting Minutes• 8-Websites Energy Calculators Can Help You Save Energy• Service Area Map

• Award-Winning Electric Co-op Websiteso Wells REC (www.wrec.coop)o Umatilla Electric Cooperative (www.umatillaelectric.com)o Flathead Electric (www.flatheadelectric.com)o SMUD (www.smud.org) Committee Member Boyd added Pedernales as a good reference

for the Board section (www.pec.coop)• Current Website and Proposed Website Site Map

o White Board Exercise The Committee built a wireman site map to have developed and

sent to all Committee members (all committees) to review andcomment. Timeframe for development 4-6 wks. Kaaren will developand distribute for comment.

2. Work in Progress• October Rural Montana

- Shares du Soleil –Breaking Ground- Washington D.C. Youth Tour 2020 Applications- Getting ready for fall-Energy Efficiency

• October Billing Insert


• September Billing Memo

• Member eNewsletter- Post-Board meeting email scheduled for September 7- Pre-Board meeting email scheduled for September 21

• NEW Billing Statement Development- The new billing statement data flow from Aclara to NISC isunder construction. Once complete, this data will allow thedevelopment of the new usage graphs.- The Shares du Soleil reporting prework is complete. Dataflow will be tested once the system is constructed.- The rollout will occur upon completion of the meterupgrade project — projected rollout early 2020.

• SmartHub Update & Rollout- New SmartHub communication, marketing, and reportingcapabilities will be available with the installation of thedigital meters. Prework is being completed.- The rollout will occur upon completion of the meterupgrade project — projected rollout early 2020.

• Shares du Soleil- Solar Power Up ceremony- Monitor system TBD upon system design- Signage TBD upon system design and highway easements- Partner Certificate (Can complete once system specs are

defined)

• MECACommunication Committee

• Printer OptionsMembers Services• Today’s Member Course (MECA Annual Meeting October 2019) –

BEC sponsoring new member(s)?

• Coop Day at the Capital (January 2020)

• Electronic Forms Development- Numerous BEC forms are required from member including Aid-

to-Construction, Membership, etc. A move to electronicforms would significantly assist both members and internaloperations.

- In addition to electronic forms, an electronic signatureis also under evaluation.

- An analysis of available systems/processes is underway.

• Current Website (Discussion Topic August 20 CommunicationCommittee meeting)- NEW Website design is in progress


- Continue content updates to the current site- New headers- Post new press releases- Post financials- Update calendar- Continue redesign website sitemap

• BEC App Development- Research new BEC app development to incorporate BEC

specific needs and SmartHub

• FacebookContent follows board meeting information, press releases,and RM

• BEC Membership ApplicationA new review is scheduled with the Policy Committee

• BEC New Member Welcome (email & hard copy package)Work is progress-awaiting membership application

• CCC Certificate Portfolio DevelopmentCertificate work continues.

• Operation Round UpOperation Round Up received $116.01 billed 08/07/2019. 202Accounts and 186 Customers. Current Balance for OperationRound Up is $6,059.37.

• LISD/LIDDTotal LISC/LID Discount Accounts for July 2019 billed08/07/2019. WY: $33.60 and MT: $185.10 = Total $218.70. Totalnumber of accounts are 38.

The Member Services department suggests a review of ourLISD/LIDD programs on two fronts:- Can we open up this program to all Low-Income Members? Why

just Seniors and Disabled?- Can we provide a service that truly benefits our members

in need (a few dollars a month –10% of the total kWh usedcharge). How about the full base rate?


NISC Enterprise System Update July 2019

Process Reviews • Several internal process reviews are taking place (SO/WO/Street

light).• New system capabilities are being implemented into processes as

available.

Installed Systems (Updates) • ABS• Customer Information System (CIS)• CashRegister• RemitPlus• SmartHub

NEW System Installations• E&O App Suite

o Automated Meter Information (AMI)--Installed

o Work Management Solutions (WMS)--Installed

o DocuVault--Installed

o CallCapture--Installed

• Mapwise-Mappingo Work in Progress

• Mapwise-Stakingo Work in Progress

• ESRI GISo Installed with MapWise

• Meter Data Management System (MDMS)o Work in Progress

o OMS--2020

o Prepaid--2020

OTHER

Billing Statement Programming• Work in Progress

o Aclara-MDMS data flow


Line Superintendent Report—Eric Elton

CONSTRUCTION, OPERATIONS & MAINTENANCE • The Red Lodge crews are still busy putting in new services. It’s

been a really interesting summer with wind, hail, and lightning.

• We have finished the meter change-outs on the Roberts Sub, and wewill be starting Columbus and Red Lodge Subs next. So far, we haveBelfry, Absarokee, Luther, Edgar, Reed Point and Roberts completed.All of the TWACS equipment has been installed in all the subsexcept Nye. (We will be waiting on installing this equipment untilthe 100 KV upgrade is completed).

• Columbus crew has been busy with new services.

• Par Contractors have been working on the Nye substation rebuild. Weenergized the temp transformer on the 15th, and the contractors havestarted rebuilding the permanent tap. The new power transformer istwo weeks ahead of schedule and should arrive on the 20th ofSeptember.

• We have started placing ocrs on one shot with the conditions dryingout.

• We installed 13 new services in July.

• There was a total of 20 outages system-wide in July.

• We had 417 individual consumers out of power at some point in July,having a duration of 1850 minutes.

EDUCATION, SAFETY & LOSS • Next MECA safety meeting is September 4th.

• No lost time accidents to report for the month of July.

TRUCK, TOOLS & EQUIPMENT • The digger derrick being repaired is Salt Lake City should be back

together and heading to the paint shop this shortly.

10. New Business

• Operation Round Up Presentation—Meg Hatch

President Hatch provided this report:1. New Status: Independent 501c3 organization, but still


reporting to BEC Board of Trustees. The Board stated that BEORU does not need to report to this board.

2. Current Operation Round Up© Board of Trustees: President-Meg Hatch (Nye)Vice-President-Judy Strobbe (Roberts) Secretary-KarenReiner (Fishtail) Treasurer-Greg Waite (Absarokee)At-Large Members-Janet Luloff (Roberts)Peggy Joki (Fishtail)BEC Staff Support-Stephanie Fletcher

3. Financial Status: $6249.32 as of July 26, 2019--Generous donations from Yellowstone Bank--206 members currently contributing to ORU out of 4500+

4. By Laws Revisions are in process, due to new 501c3 statusand due to changing focus.*We're continuing to clarify our relationship to the BECBoard of Trustees in order to maintain our accountabilityto them and to all BEC members, at the same time that weestablish our independent status.

The BEC Board stated they would enjoy the information of the ORU Bylaws. Also, perhaps the BEC Board Bylaws Committee could assist with their bylaw review. And if required, the BEC counsel could also lend review and assistance directly to the ORU as an independent charitable foundation.

5. Mission and Vision: This year we will be expanding ourpurpose beyond simply helping co-op members pay theirelectric bills to living out co-op principle seven,"Concern for Community," in accordance with the original

vision of Operation Round Up©.

Trustee Pascoe noted there is also way to increase revenues as each member can make a larger flat rate or one-time donation. ORU President noted to date the foundation has approved all requests received, funding was available. Trustee Melton suggested the foundation officers contact cooperatives in our area to see how they operate. President Lindgren thanked Meg for her presentation and her work with Operation Round Up.

• Shares du Soleil—Project History & ContractGeneral Manager Owens presented the Shares du Soleil projecthistory & contract during Consent Agenda.

11. Old Business

• MECA Annual Meeting (October 7-9, 2019)- Board of Director’s Certification


- MECA Voting Credentials

Arleen Boyd is the designated BEC primary voter. Bill Pascoe is the designated BEC alternate voter. Roxie Melton is the designated BEC second voter.

General Manager Owens noted Bill Pascoe and he are on the Legislative Committee agenda to discuss escheated funds.

• NRECA Voting Delegate—Region IX

Daniel Dutton is the designated BEC primary voter.

• Board Strategic Planning Session (October 2-3, 2019) – JulieLindgren

A questionnaire will be emailed to you from CoBank for theStrategic Planning session. Keep a look out.

12. Upcoming Meetings

• BEC Bylaw Committee Meeting | BEC Office | September 6, 2019 |Teleconference 10 AM

• BEC Communication Committee Meeting | BEC Office |October 22, 2019 | 2 PM

• BEC Finance/Risk Management Committee Meeting | BEC Office |September 10, 2019 | BEC Office | 2 PM

• BEC Policy Committee Meeting | BEC Office|September 17, 2019|2 PM• BEC Regular Board Meeting | BEC Office | September 24, 2019 |Noon• BEC Strategic Planning Meeting | The Carbon Fork | October 2-3,

2019

• MECA Annual Meeting | Great Falls, MT | October 7-9, 2019

13. Executive Session

• General Manager Evaluation

14. Executive Action

• In Executive Session, the board discussed the General Manager’s Evaluation. President Lindgren and Counsel Martin will negotiate the General Manager’s 2020 compensation on September 24, 2019 after the board meeting.


15. Adjourn

President Julie Lindgren adjourned the August 27, 2019, BEC Board ofTrustees meeting at 3:35 p.m.

ATTEST:

Arleen Boyd, Secretary


Board Report – Risk Management September 2019 Risk Management Meeting, Tuesday September 10, BEC Red Lodge Office, 2:00 Committee Attendees: Frank Willett, David Peterson, Bill Pascoe, Arleen Boyd. Board and Guests Attending: Roxie Melton, Kevin Owens, Russ Schneider via telephone), Jim Movius. AGENDA

• Rate Design Analysis — Bill Pascoe, Russ Schneider, EES• BEC Financial Forecast Demonstration and Next Steps — Brad Prophet and

Frank Willett• Update, Shares du Soleil and NWE OATT Filing — Kevin Owens• Strategic Planning CoBank Webinar

Rate Design – The committee examined rate design issues and discussed how to define and examine potential alternative rate designs. Bill Pascoe led discussion of next steps and a detailed schedule for the committee’s analysis of rate design alternatives and examination of alternatives with the board. The committee’s proposed schedule is attached.

The list of questions raised by BEC members and trustees was discussed at the last committee meeting and has been resent to the board and committee members. We continue to add to the list and it will be organized for wider distribution before the next committee meeting.

EES Senior Analyst Russ Schneider joined the meeting and discussion by phone. Preparing for the October 24 committee meeting, Russ will work on pros and cons of potential rate design alternatives including: implementation of a 3-part rate that includes demand charges across rate classes, billing for energy costs accurately with all other expenses reflected in the base rate, minimum bill structure, block rates, keeping the current rate structure, and others. The October meeting may include phone discussions with some Montana co-ops that have implemented demand charges across member classes.

The rate design analysis process will look at all alternatives as revenue-neutral, based on current BEC forecasts that show no need for rate changes to increase revenue.

Recommendations – Timing for reaching a decision about possible rate design recommendations to the board includes a recommendation to aggressively inform members of the ongoing discussions of rate design at the committee and board meetings and to encourage their input and participation. The committee recommends the attached schedule showing review of the impacts and pros and cons of potential alternatives starting in October, full discussion of alternatives by the committee in November, and recommendations of alternatives to the board for discussion and further analysis by the committee and board in December and


January to prepare for a board decision in February. If a rate design change is recommended, an implementation plan could launch in April of 2020.

Financial Forecast – Frank Willett and Brad Prophet outlined the status of the financial forecast and how it can now be used to test scenarios in real time. Using the just revised budget Brad showed the financial impacts of the two hypothetical scenarios: occurrence of a $300,000 storm within two years and a reduction in capital credit payments from 5% to 4%. The resulting impacts on our financial reports were calculated and shown in the reports within minutes.

Shares di Soleil – Kevin Owens reported on the very positive developments for the Shares du Soleil project, which are featured in this month’s manager’s report to the board. The project is ahead of schedule and under projected cost. The project capacity is greater than anticipated and members who invested in will see their investment returned sooner than expected. Construction will start soon.

Pre-Payment – The October 24 Risk Management Committee meeting will include a presentation by General Manager Kevin Owens taking a close look at a proposal to introduce a prepayment billing option for BEC members. A report on prepayment provisions prepared by EES is attached. Other co-ops’ experiences with pre-payment and a discussion of benefits and challenges are briefly outlined in the attached EES report.

Strategic Planning – The Committee viewed an outstanding webinar presentation on strategic planning by Karl Hiesterman, Vice President, Process Change Management at CoBank. With the board scheduled to conduct a strategic planning session in early October the presentation was timely. Hiesterman outlines effective strategic planning as a best business practice that starts with defining the organization’s mission (what you do now) and vision (what you want to do) and then sets a process in place that works in two complementary directions -- from planning forward to set direction and from budget back through the plans and objectives with metrics to test effectiveness. The process steps are: setting the vision, defining strategies, developing a strategic plan, documenting an operational plan and forming a budget.

Arleen Boyd Co-chair


BEC Rate Design Process Tentative Schedule

September 2019 RMC • Review where we’ve been and where we’re going

o scheduleo information needso analysis tools

October 2019 RMC • Review Q&A answers to date• Review preliminary pros/cons of different rate designs• Select rate designs for analysis

November 2019 RMC • Initial review of analysis of rate designs (pros/cons, bill impacts)• Review Q&A answers

December 2019 RMC • Final review of analysis of rate designs (pros/cons, bill impacts)• Final Q&A answers• Recommendations to BOT

January 2020 BOT • Initial consideration of RMC rate design recommendations

February 2020 BOT • Rate design decisions

April 1, 2020 • New rate designs (if any) implemented (bills go out in early May)

Pascoe 9-5-19


September 10, 2019

TO: Kevin Owens Beartooth Electric Cooperative

FROM: Russ Schneider

SUBJECT: Background on Residential Pre-Pay Programs

The purpose of this memo is to provide background information with respect to residential customer pre-pay programs. There are good examples of successful pre-pay programs in the region. Beartooth Electric Cooperative could select the components of pre-pay programs already implemented by other utilities to develop its own pre-pay rate.

Pre-pay programs have become more popular in recent years for several reasons. First, metering technology and supporting back-office systems for pre-pay programs are now widely available at more reasonable costs. Second, pre-pay programs have proven to reduce utilities’ write-downs of uncollectible debt and unpaid disconnect/reconnect fees. Third, the average pre-pay customer reduces their energy consumption by 7 to 12 percent. As such, pre-pay programs have proven to be effective at incentivizing behaviors that conserve energy. And lastly, it is considered good customer service to provide a pre-pay rate option to customers.

Many utilities with pre-pay programs use a web-based consumer interface like SmartHub from National Information Solutions Cooperative1 to interact with participating customers. Vendors typically provide customers with account access and two-way communication with their utility or telecommunications provider online or via smartphone. This allows users to manage payments, notify customer service of account and service issues, check their usage, and receive special messaging from their utility. Vendors supply an App for Android and iOS smartphones and tablets. Most have a tool that estimates how much customers need to pre-pay to cover a period selected by the customer.

1 https://www.nisc.coop/utility-solutions/customer-care-billing/payments/smarthub/


EES surveyed the pre-pay programs at several utilities. Below are observations made based on this survey:

• Most utilities do not have separate rate schedules for pre-pay customers, but insteadapply the standard residential rate schedule to pre-pay customers.

• Most utilities allow pre-pay customers to switch back to the traditional residential rateschedule at any time; though two of the utilities surveyed require customers to remainon the program for at least 12 months.

• Utilities typically do not supply monthly billing statements to pre-pay customers; dailyenergy consumption and account balances are available at any time through the utility’swebsite or smartphone app (e.g. SmartHub or other App).

• The name of the pre-pay program is important from a marketing standpoint. Somecustomers may not sign up for a program called “pre-pay” as the word “pre” has anegative connotation for some customer groups. Several utilities, such a Clallam PUD with“SmartPay”, Flathead Electric Cooperative with “FlexPay” and Lincoln Electric Cooperativewith “Pay As You Go” have gotten away from using the word “pre” in the program’s name.

• Non-rate schedule fee policies are an important part of program implementation,specifying how disconnect and reconnect fees related to participation in the pre-payprogram. For example, it is typically a significant fee for a customer in collection to bothpay their past due balance and pay reconnect fees. Offering some discount for pre-payparticipation can reduce the financial burden on those having difficulty paying their bills.

• The cost-benefit of pre-pay programs appears favorable for utilities as shown by thepopularity of programs across the region. However, individual utility costs and benefitswill vary based on implementation costs and the number of participants compared to theoverall size of the utility.

There are costs and benefits of a pre-pay program to both utilities and consumers and each cost or benefit depends upon the perspective. Below is a list of common categories.


Table 1 Costs, Benefits and Concerns with Pre-Pay Electric Service Programs2

Consumer benefits Utility Benefits Public Concerns

A greater sense of control. Better-informed consumers. Prepay often bypasses traditional notification requirements regarding termination of service.

No surprises on their utility bill. Debt recovery through prepay payments. Critics consider prepay an inferior service.

Prepay can prevent consumers from always being behind.

Reduced write-offs and bad debt risk. Marketing to low-income consumers.

A clear link between daily electricity use and electricity spending.

Disconnections occur quickly with prepay Doing without an essential service.

Empowered to manage budgets and prioritize spending.

Safety benefits of remote disconnect

Affordability, doesn’t resolve the underlying problem of utility service being too expensive for some consumers.

Can act to reduce bills. Avoiding initial fees. Rapid reconnection.

Some utilities have significant fee revenues from various service fees related to disconnection, reconnection and non-payment. It is likely that this revenue would decline with movement of customers to a pre-pay program. However, operation and maintenance costs should also decline and, if the current fees are appropriate and based on the actual costs incurred by the utility, then there should be no net impact on non-participating customers or the utility. If the current fees do not align with costs and net revenue collection, then there may be a net impact on non-participating customers and the utility.

Some utilities recognize the added administrative cost of pre-pay programs in a separate charge or with a higher facilities charge. However, it is more common and less controversial to keep rates and charges the same as non-pre-pay customers to avoid the appearance of collecting more for those that take part. If there is truly a net savings to the utility due to increased participation in a prepay program, a lower average rate would follow based on cost causation.

Beartooth may wish to re-evaluate the appropriateness of its fees before implementing a pre-pay program.

All utilities surveyed disconnect customers if their account balances go negative (i.e. less than $0). The timing of the disconnects and the requirements for re-connection vary by utility. Table 2 below supplies a comparison of some of the key part of pre-pay programs implemented at other utilities.

2 Bridging the Gaps on Prepaid Utility Services - U.S. Department of Energy |September 2015 https://www.energy.gov/sites/prod/files/2015/11/f27/Bridging%20the%20Gaps%20on%20Prepaid%20Utility%20Service_0.pdf


Table 2 Key Components of Pre-Pay Programs

Utility Initial

Balance Notification of Low Balance Disconnect Policy

Cowlitz PUD $25 “low balance” set by customer

Accounts are disconnected immediately if account balance is below $0; $25 minimum balance required to restore service.

Clallam PUD > $40 If balance is $20 or less

Customers notified if balance goes below $0 and have 30 minutes to add money to account before disconnection; $40 minimum balance required to restore service.

Mason PUD #3 $30 Definition of “low” not provided


Clearwater Power $50 If balance is less than $20

Accounts are disconnected immediately if account balance is below $0; a positive account balance is required to restore service.

Consumers Power $25 If balance is less than $20

Accounts are disconnected if balance is below $0; accounts will not be disconnected on a Thursday, Friday, weekend, or holiday. $50 minimum balance is required to restore service.

Kootenai Electric $50 Not specified Accounts with negative balances are disconnected at 12:30 pm daily; $5 minimum balance required to restore service.

Flathead Electric $50 Not specified Accounts with negative balances are disconnected immediately except on weekends, holidays and at times when the overnight temperature is predicted to be less than 15 degrees.

Sun River Electric $100 If balance is less than $20

Accounts with negative balances are disconnected after 10 am on Monday through Friday (except holidays); $40 minimum balance plus $10 reconnect charge required to restore service.

Missoula Electric $25 If balance is less than $25


Lincoln Electric $50 If balance is less than $50

Accounts with negative balances are disconnected after 10 am on Monday through Wednesday (except holidays); must pay off outstanding balance and a $30 reconnect fee to restore service.

* Most utilities notify customers of low balances and impending disconnects only via text messages, the SmartHubapp and emails. Some utilities offer a phone call as an alternative.

No security deposits are required for pre-pay customers. The utilities surveyed allow customers to convert their security deposits over to pre-pay programs to establish initial balances. Since service can be disconnected if account balances fall below $0, pre-pay customers are not subject to late fees or collection-related fees.

A good example of a pre-pay program is Clallam PUD’s SmartPay program. Below is a link to Clallam PUD’s website, along with links to several other programs.

Please let us know if you would like further research on this topic.


Selected Examples of Pre-Pay Programs

Cowlitz PUD: https://www.cowlitzpud.org/customer-services/prepaid-billing/

Clallam PUD’s Smart Pay: https://www.clallampud.net/smartpay/

Mason PUD #3: http://www.pud3.org/uploads/pdf/fees-and-policies/prepayaccountsadm-prepay-c.pdf http://www.pud3.org/service/manage-your-account/prepay (video that explains pre-pay)

Clearwater Power Company: https://www.clearwaterpower.com/webform/mypower_pre_pay_enrollment

Consumers Power Inc.: https://www.cpi.coop/my-account/prepay/

Kootenai Electric Cooperative’s Smart Pay: https://www.kec.com/prepaid-rate

Flathead Electric Cooperative’s Flex Pay https://www.flatheadelectric.com/account/payment-billing-options/

Sun River Electric Cooperative http://www.sunriverec.com/sites/sunriverelectric/files/PDF/Pre-PayAgreement.pdf

Missoula Electric Cooperative https://missoulaelectric.com/wp-content/uploads/prepay-agreement.pdf

Lincoln Electric Cooperative’s Pay As You Go https://www.lincolnelectric.coop/index.php/billing/pay-as-you-go-program


https://www.cowlitzpud.org/customer-services/prepaid-billing/

https://www.clallampud.net/smartpay/

http://www.pud3.org/uploads/pdf/fees-and-policies/prepayaccountsadm-prepay-c.pdf

http://www.pud3.org/service/manage-your-account/prepay

https://www.clearwaterpower.com/webform/mypower_pre_pay_enrollment

https://www.cpi.coop/my-account/prepay/

https://www.kec.com/prepaid-rate

https://www.flatheadelectric.com/account/payment-billing-options/

http://www.sunriverec.com/sites/sunriverelectric/files/PDF/Pre-PayAgreement.pdf

https://missoulaelectric.com/wp-content/uploads/prepay-agreement.pdf

https://www.lincolnelectric.coop/index.php/billing/pay-as-you-go-program

Bylaw Committee Report

The current Bylaw Committee review started with questions about updating the bylaws for issues that have changed since the major rework of that produced the 2013 Amended Bylaws. One example is the requirement for communicating with members that calls for using a range specified channels that various members might use to receive information. Current technology enables wide range of electronic devices and applications that did not exist in 2013, which people rely on for information today. The board asked the committee, which includes members who wrote the 2013 and later amendments, to look thoroughly at the bylaws.

We are outlining areas/categories for the board to consider: changes to bring bylaws into alignment with Montana Code Annotated; changes to clarify incorrect or ambiguous language that can be misunderstood; changes that permit rate design change if needed; changes to bylaw provisions that conflict with each other.

Larry Martin has drafted, with committee input, language to accurately define and separate the requirements for petitions and member meetings which are separate legal issues mixed together in the current version. The committee has reviewed additional issues and some remain for discussion at a fourth telephone conference in October. We anticipate having the issues identified for a board report in October.


MONICA ALRIFAIE RACHEL MEIGGSNANCY ARTHUN JOHN MOOREBRIAN BAILEY AMY & KEN OLINGERJASON & EMILY BARLOW PAR ELECTRICAL CONTRACTORS INCCHERYL BASS KIRK PAYOVICHPATRICK & LISA BEDDOW ANGIE & CRAIG REYNOLDSJOSEPH COPPER PETER & MARIA SCHICKMICHAEL CROFT MICHAEL SHEPHERDLEONARD EASTBURN ERICA & SCOTT STEMMANNETTE & DARRELL GILLESPIE JAY STERNADKEN & MERRY HALL WILLIAM TESKECHAD JESTER TRAILHEAD BUILDERS OF MTLONE TREE STOCK TYNER'S TOWERSELINA MANWARING STACIE WAREHIMEBRITTANY MCCALLUM TANA WEIMERHEATHER MEIER & DEVON PINKAL KAY WILLIAMS

1ST CLASS REALTY WM D HEATHMARK & VALERIE ALLEN JULIE & MIKE JONESLAVERNE BASS FRANK KELLEYJIM BENNETT STACI & ZARRIN MALISKEMARK CARTMELL SARAH MCBRIDEWESLEY & KAREN CHAPMAN WILLIAM V MILLER IIGABE & SARAH DEAN JOE MOFFETJANEALE & MITCHELL DURAND ROBERT PETERS JRHEATHER GONZALES ADAM RICEGREG HADFIELD CLARENCE WAHL

MEMBERSHIP CANCELLATIONS

SEPTEMBER 24, 2019AUGUST 2019

MEMBERSHIP CONNECTIONS

CAPITAL CREDITS Capital Credits Allocated

Discounted Refund to Member Retained by Co-Op

TOTALS $851.84 $664.92 $186.92

DOROTHY BOGGS $319.60 $319.60 $0.00RUTH WHITMYER $532.24 $345.32 $186.92


OPE

N B

ALA

NC

E R

EGIS

TER

09/1

7/20

198:

05:0

9 am

Page

: 1

Rev

isio

n: 1

8847

Bea

rtoot

h El

ectri

c C

o-O

p.,In

c.

Tot

alA

R A

mt

Cur

rent

AR

Am

t30

Day

60 D

ay90

Day

Tot

alB

ill A

mt

Tot

alB

ill P

ast

Cur

rent

Bill

Am

t

7,37

8.19

573.

2651

1.53

310.

375,

983.

03

Bud

get A

mt D

ue

Tot

al A

R A

mt

Cur

rent

90 D

ay

60 D

ay

30 D

ay

0.00

0.00

0.00

Tot

Act

ive

Dol

lars

Act

ive

Acc

ts 000

0.00

0.00

0.00

000

Tot

Inac

tive

Dol

lars

Inac

tive

Acc

ts

0.00

7,37

8.19

573.

26

5,98

3.03

310.

37

511.

53

038192087

Gra

nd T

otal

s:

Act

ive

Cre

dit $

Act

ive

Cre

dit A

ccts

0.00

0.00

0.00

0.00

0.00

0.00

000000

Inac

tive

Cre

dit $

Inac

tive

Cre

dit A

ccts

0.00

-32.

80

-32.

80

0.00

0.00

0.00

011000

Act

ive

Deb

it $

Act

ive

Deb

it A

ccts

0.00

0.00

0.00

0.00

0.00

0.00

00000

Inac

tive

Deb

it $

Inac

tive

Deb

it A

ccts

0.00

7,41

0.99

606.

06

5,98

3.03

310.

37

511.

53

037182087

GR

AN

D T

OT

AL

SU

MM

AR

Y IN

FOR

MA

TIO

N

6,80

4.93

7,37

8.19

573.

26

0

/pro

/rptte

mpl

ate/

cis/

2.45

.1/O

PEN

_BA

LAN

CE.

xml.r

ptsf

letc

her

2801

9

Accu

mul

ated

pro

visi

ons

set a

side

for U

ncol

lect

able

Writ

e-O

ff ac

coun

ts a

s of

Aug

ust 3

1, 2

019

is $

56,4

50.2

5.C

apita

l cre

dits

to b

e ap

plie

d w

ith G

ener

al R

etire

men

ts.

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 28

RED LODGE(RDL)

COLUMBUS (CMB)

DATE CITY SERVICE LOC# LOCATION ACCOUNT AREA DISCONNECTED RECONNECTED

August 2018 TOTAL DISCONNECTS NON-PAY = 20 August 2, 2018

TOTAL RECONNECTS = 16 August 2, 2018

September 2018 TOTAL DISCONNECTS NON-PAY = 18 September 26, 2018

TOTAL RECONNECTS = 17 September 26, 2018

October 2018 NO DISCONNECTS

November 2018 NO DISCONNECTS

December 2018 NO DISCONNECTS

January 2019 NO DISCONNECTS

February 2019 NO DISCONNECTS

March 2019 NO DISCONNECTS

April 2019 TOTAL DISCONNECTS NON-PAY = 1 April 25, 2019TOTAL RECONNECTS = 1 June 7, 2019

May 2019 TOTAL DISCONNECTS NON-PAY = 5 May 28, 2019


June 2019 TOTAL DISCONNECTS NON-PAY = 5 June 24, 2019

TOTAL RECONNECTS = 5 June 24, 2019

July 2019 TOTAL DISCONNECTS NON-PAY = 3 July 30, 2019


August 2019 BELFRY 8S 22E 26 725 A 391608 RL August 22, 2019 August 23, 2019

BRIDGER 5S 23E 27 611 106307 RL August 22, 2019 August 22, 2019

GREYCLIFF 1S 16E 17 1376 Q 542303 CMB August 22, 2019

JOLIET 4S 23E 32 577 B 527904 RL August 22, 2019

NYE 4S 17E 04 01 A5 461500 CMB August 22, 2019 August 26, 2019

POWELL 58N 102W 33 798-15 388303 RL August 22, 2019 August 22, 2019

ROBERTS 6S 20E 26 413 218703 RL August 22, 2019 August 22, 2019

Notices went out with Past Due Balances due 8/7/2019.

Delinquent accounts were called 8/16/2019 and Disconnecting Accounts 60-90 days in arrears 8/22/2019.

DISCONNECT NON PAY


According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMBcontrol number. The valid OMB control number for this information collection is 0572-0032. The time required to complete this information collection is estimated to average 15 hours perresponse, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

BORROWER DESIGNATIONMT0019

PERIOD ENDEDFINANCIAL AND OPERATING REPORT August 31, 2019

BORROWER NAMEINSTRUCTIONS-See help in the online application BEARTOOTH ELEC COOP INC

This information is analyzed and used to determine the submitter's financial situation and feasibility for loans and guarantees. You are required by contract

and applicable regulations to provide the information. The information is subject to the Freedom of Information Act (5 U.S.C. 552)

CERTIFICATION

We recognize that statements contained herein concern a matter within the jurisdiction of an agency of the United States and the making

of a false, fictitious or fraudulent statement may render the maker subject to prosecution under Title 18, United States Code Section 1001.

___X___ All of the obligations under the RUS loan documents have been fulfilled in all material respects.

_________ There has been a default in the fulfillment of the obligations under the RUS loan documents. Said default(s) is/arespecifically described in Part D of this report.

9/19/2019 DATE9/19/2019 DATE

YEAR-TO-DATEITEM LAST YEAR THIS YEAR BUDGET THIS MONTH

(a) (b) (c) (d)1. Operating Revenue and Patronage Capital................................... 5,753,051 5,940,707 5,785,700 738,213

2. Power Production Expense............................................................... 0 0 0 03. Cost of Purchased Power............................................................... 2,113,407 2,237,623 2,100,188 300,127

4. Transmission Expense..................................................................... 6,613 2,995 3,438 368

5. Regional Marketing Expense………………………………………….. 0 0 0 0

6. Distribution Expense-Operation...................................................... 644,024 737,458 639,801 90,533

7. Distribution Expense-Maintenance................................................. 398,314 467,458 453,616 96,455

8. Consumer Accounts Expense.......................................................... 217,156 212,527 263,564 24,526

9. Customer Service and Informational Expense............................... 81,294 80,675 93,006 8,671

10. Sales Expense................................................................................. 3,747 5,140 3,938 520

11. Administrative and General Expense........................................... 746,807 821,405 753,478 77,794

12. Total Operation and Maintenance Expense (2 thru 11)................. 4,211,362 4,565,281 4,311,029 598,994

13. Depreciation and Amortization Expense........................................ 669,869 723,819 679,589 92,135

14. Tax Expense - Property and Gross Receipts.................................. 0 0 0 0

15. Tax Expense - Other......................................................................... 1,464 1,328 1,874 204

16. Interest on Long-Term Debt............................................................ 396,828 402,745 404,822 49,948

17. Interest Charged to Construction - Credit...................................... 0 0 0 0

18. Interest Expense - Other.................................................................... 799 1,018 800 127

19. Other Deductions............................................................................. 1,200 1,200 1,200 150

20. Total Cost of Electric Service (12 thru 19).................................... 5,281,522 5,695,391 5,399,314 741,558

21. Patronage Capital and Operating Margins (1 minus 20)............... 471,529 245,316 386,386 (3,345)

22. Non Operating Margins - Interest................................................... 87,073 83,524 73,338 9,485

23. Allowance for Funds Used During Construction.............................. 0 0 0 0

24. Income (Loss) from Equity Investments........................................ 0 0 0 0

25. Non Operating Margins - Other................................................... (4,444) 511 1,655 3,864

26. Generation and Transmission Capital Credits............................. 0 0 0 0

27. Other Capital Credits and Patronage Dividends............................. 41,657 51,322 43,600 18,760

28. Extraordinary Items.......................................................................... 0 0 0 029. Patronage Capital or Margins (21 thru 28)..................................... 595,815 380,673 504,979 28,764

Rev 2010

BRAD PROPHET, ACCOUNTANTDRAFT

KEVIN P. OWENS, GENERAL MANAGER

PART A. STATEMENT OF OPERATIONS

RUS Financial and Operating Report Electric Distribution

PERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES.DURING THE PERIOD COVERED BY THIS REPORT PURSUANT TO PART 1718 OF 7 CFR CHAPTER XVII

(check one of the following)

DRAFT

UNITED STATES DEPARTMENT OF AGRICULTURERURAL UTILITIES SERVICE

ELECTRIC DISTRIBUTION

We hereby certify that the entries in this report are in accordance with the accounts and other records of the

system and reflect the status of the system to the best of our knowledge and belief.

ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, RUS, WAS IN FORCE DURING THE REPORTING


USDA - RUS BORROWER DESIGNATIONMT0019

FINANCIAL AND OPERATING REPORT PERIOD ENDED

PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT

YEAR-TO-DATE YEAR-TO-DATEITEM LAST YEAR THIS YEAR ITEM LAST YEAR THIS YEAR

(a) (b) (a) (b)

1. New Services Connected 51 58 5. Miles Transmission 15.21 15.21

6. Miles Distribution-2. Services Retired 5 26 Overhead 1,310.34 1,307.02

7. Miles Distribution-3. Total Services in Place 6,643 6,705 Underground 495.55 503.50

4. Idle Services 8.Total Miles Energized(Exclude Seasonal) 459 431 (5 + 6 + 7) 1,821.10 1,825.73

PART C. BALANCE SHEET

ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS

1. Total Utility Plant in Service.................................................33,707,714 30. Memberships................................................................... 0

2. Construction Work in Progress........................................... 255,717 31. Patronage Capital............................................................. 8,224,753

3. Total Utility Plant (1 + 2).......................................................33,963,431 32. Operating Margins - Prior Years...................................... 0

4. Accum. Provision for Depreciation and Amort.................. 16,425,450 33. Operating Margins - Current Year..................................... 245,316

5. Net Utility Plant (3 - 4)...........................................................17,537,981 34. Non-Operating Margins................................................... 540,257

6. Non-Utility Property - Net.................................................... 0 35. Other Margins and Equities............................................. 220,028

7. Investments In Subsidiary Companies............................... 0 36. Total Margins and Equities (30 thru 35)............................. 9,230,354

8. Invest. In Assoc. Org. - Patronage Capital....................... 454,799 37. Long-Term Debt - RUS (Net).......................................... 408,981

9. Invest. In Assoc. Org. - Other - General Funds................. 0 38. Long-Term Debt - FFB - RUS Guaranteed......................... 6,438,572

10. Invest. In Assoc. Org. - Other -Nongeneral Funds.......... 285,418 39. Long-Term Debt - Other - RUS Guaranteed....................... 0

11. Investments In Economic Development Projects............ 0 40. Long-Term Debt - Other (Net).............................................5,654,603

12. Other Investments.............................................................. 0 41. Long-Term Debt - RUS - Econ. Devel. (Net)........................ 0

13. Special Funds.................................................................... 0 42. Payments-Unapplied 1,755,602

14. Total Other Property and Investments (6 thru 13)........ 740,217 43. Total Long-Term Debt (37 thru 41-42)...................................10,746,554

15. Cash - General Funds....................................................... 181,912 44. Obligations Under Capital Leases-Noncurrent.................................... 0

16. Cash - Construction Fund - Trustee.................................. 1 45. Accumulated Operating Provisions................................... 0

17. Special Deposits................................................................ 0 and Asset Retirement Obligations18. Temporary Investments.................................................... 902,562 46. Total Other Noncurrent Liabilities (44+45)......................... 0

19. Notes Receivable (Net)...................................................... 0 47. Notes Payable.................................................................. 0

20. Accounts Receivable - Sales of Energy (Net).................. 807,561 48. Accounts Payable........................................................... 485,374

21. Accounts Receivable - Other (Net)................................... 118,912 49. Consumers Deposits........................................................ 106,372

22. Renewable Energy Credits.......................................... 0 50. Current Maturities Long-Term Debt................................... 0

23. Materials and Supplies - Electric and Other.................... 263,749 51. Current Maturities Long-Term Debt-Ec.Dev...................... 0

24. Prepayments....................................................................... 143,025 52. Current Maturities Capital Leases..................................... 0

25. Other Current and Accrued Assets................................... 4,762 53. Other Current and Accrued Liabilities................................ 681,701

26. Total Current and Accrued Assets (15 thru 25)............... 2,422,484 54. Total Current and Accrued Liabilities (47 thru 53)................1,273,447

27. Regulatory Assets.............................................................. 470,170 55. Regulatory Liabilities...................................................... 0

28. Other Deferred Debits......................................................... 119,011 56. Other Deferred Credits................................................... 39,508

29. Total Assets and Other Debits (5+14+26 thru 28)............21,289,863 57. Total Liabilities and Other Credits (36+43+46+54 thru 56).......................................................21,289,863

PART D. NOTES TO FINANCIAL STATEMENTS

THIS SPACE IS PROVIDED FOR IMPORTANT DISCLOSURE NOTES TO THE FINANCIAL STATEMENT CONTAINED IN THIS REPORT.

(A SEPARATE SHEET MAY BE USED IF ADDITIONAL SPACE IS NEEDED.)

RUS Financial and Operating Report Electric Distribution Rev 2010

ELECTRIC DISTRIBUTION August 31, 2019

CFC Line of Credit Balance as of 8/31/2019 = $0CoBank Line of Credit Balance as of 8/31/2019 = $0Contributions-In-Aid of Construction received through 8/31/19 totaled approximately $17,840,437


BOR

RO

WER

DES

IGN

ATIO

NBO

RR

OW

ER D

ESIG

NAT

ION

MT

019

PER

IOD

EN

DED

RU

S U

SE O

NLY

PER

IOD

EN

DED

RU

S U

SE O

NLY

INST

RU

CTI

ON

S - S

ee R

US

Bulle

tin 1

717B

-2IN

STR

UC

TIO

NS

- See

RU

S Bu

lletin

171

7B-2

CO

NSU

MER

CLA

SSIF

ICAT

ION

SALE

SJA

NU

ARY

FEBR

UAR

YM

ARC

HAP

RIL

MAY

JUN

EJU

LYAU

GU

STSE

PTEM

BER

OC

TOBE

RN

OVE

MBE

RD

ECEM

BER

TOTA

LAN

DR

EVEN

UE

DAT

A(a

)(b

)(c

)(d

)(e

)(f)

(g)

(h)

(i)(j)

(k)

(l)(C

onta

ins a

thru

l)

a. N

o.C

onsu

mer

s Se

rved

5,61

15,

612

5,61

95,

613

5,62

85,

637

a.#C

onsu

mer

s5,

660

5,67

10

00

0 1

. R

esid

entia

l Sal

esb.

kW

h So

ld5,

746,

047

6,67

0,50

35,

882,

975

4,02

3,55

33,

885,

500

3,28

1,30

2 1

. R

esid

entia

l Sal

esb. k

Wh

Sold

3,70

7,92

03,

828,

069

00

00

37,0

25,8

69(e

xclu

din

g s

easonal)

c. R

even

ue69

7,62

1$

779,

617

$

70

9,94

6$

543,

420

$

53

2,64

8$

479,

279

$

(e

xclu

din

g s

easonal)

c. R

even

ue51

7,54

4$

528,

574

$

-

$

-

$

-

$

-

$

4,

788,

649

$

a.

No.

Con

sum

ers

Serv

eda.

#Con

sum

ers

2.

Res

iden

tial S

ales

-b.

kW

h So

ld 2

. R

esid

entia

l Sal

es-

b. k

Wh

Sold

0 S

easo

nal

c. R

even

ue S

easo

nal

c. R

even

ue-

$

a.

No.

Con

sum

ers

Serv

ed0

00

121

121

122

a.#C

onsu

mer

s12

212

20

00

0 3

. Irr

igat

ion

Sale

sb.

kW

h So

ld0

00

61,8

6035

,951

488,

422

3.

Irrig

atio

n Sa

lesb

. kW

h So

ld70

9,39

21,

026,

426

00

00

2,32

2,05

1c.

Rev

enue

-$

-$

-$

20,2

14$

22,1

46$

73,3

95$

c. R

even

ue89

,978

$

10

8,54

0$

-$

-$

-$

-$

314,

271

$

a.

No.

Con

sum

ers

Serv

ed48

347

947

947

948

048

1a.

#Con

sum

ers

482

480

00

00

4.

Com

m. A

nd In

d.b.

kW

h So

ld1,

006,

236

1,09

1,59

696

9,46

277

5,57

575

7,46

967

9,24

2 4

. C

omm

. And

Ind.b.

kW

h So

ld72

0,07

872

1,21

70

00

06,

720,

875

1000

kVa

or L

ess

c. R

even

ue10

1,86

6$

108,

968

$

99

,466

$

83

,848

$

83

,712

$

77

,485

$

10

00 k

Va o

r Les

sc.

Rev

enue

80,6

48$

81,1

23$

-$

-$

-$

-$

717,

115

$

a.

No.

Con

sum

ers

Serv

ed1

11

11

1a.

#Con

sum

ers

11

00

00

5.

Com

m. A

nd In

d.b.

kW

h So

ld10

8,30

011

8,20

012

9,90

011

3,70

014

1,90

021

7,50

0 5

. C

omm

. And

Ind.b.

kW

h So

ld13

4,40

022

2,60

00

00

01,

186,

500

Ove

r 100

00 k

Vac.

Rev

enue

8,58

0$

9,13

2$

9,97

0$

9,06

7$

14,5

45$

18,8

53$

Ove

r 100

00 k

Vac. R

even

ue11

,988

$

18

,579

$

-

$

-

$

-

$

-

$

10

0,71

5$

a. N

o.C

onsu

mer

s Se

rved

a.#C

onsu

mer

s

6.

Publ

ic S

treet

and

b.

kW

h So

ld 6

. Pu

blic

Stre

et a

ndb. k

Wh

Sold

0H

ighw

ay L

ight

ing

c. R

even

ueH

ighw

ay L

ight

ingc. R

even

ue-

$

a.

No.

Con

sum

ers

Serv

eda.

#Con

sum

ers

7.

Oth

er S

ales

tob.

kW

h So

ld 7

. O

ther

Sal

es to

b. k

Wh

Sold

0Pu

blic

Aut

h.c.

Rev

enue

Publ

ic A

uth.

c. R

even

ue-

$

a.

No.

Con

sum

ers

Serv

eda.

#Con

sum

ers

8.

Sale

s fo

r Res

ale

-b.

kW

h So

ld 8

. Sa

les

for R

esal

e-

b. k

Wh

Sold

0R

US

Borro

wer

sc.

Rev

enue

RU

S Bo

rrow

ersc. R

even

ue-

$

a.

No.

Con

sum

ers

Serv

eda.

#Con

sum

ers

9.

Sale

s fo

r Res

ale

- b.

kW

h So

ld 9

. Sa

les

for R

esal

e-

b. k

Wh

Sold

0O

ther

sc.

Rev

enue

Oth

ers

c. R

even

ue-

$

10.

TO

TAL

No.

Con

sum

ers

(line

s 1a

- 9a

)6,

095

6,09

26,

099

6,21

46,

230

6,24

1 1

0. T

OTA

L N

o. C

onsu

mer

s (li

nes

1a -

9a)

6,26

56,

274

00

00

11.

TO

TAL

kWh

Sold

(lin

es 1

b - 9

b)6,

860,

583

7,88

0,29

96,

982,

337

4,97

4,68

84,

820,

820

4,66

6,46

6 1

1. T

OTA

L kW

h So

ld (l

ines

1b

- 9b)

5,27

1,79

05,

798,

312

00

00

47,2

55,2

95 1

2. T

OTA

L R

even

ue R

ecei

ved

From

Sal

es o

f 1

2. T

OTA

L R

even

ue R

ecei

ved

From

Sal

es o

f

Elec

tric

Ener

gy (l

ines

1c

- 9c)

808,

068

$

89

7,71

7$

819,

382

$

65

6,54

9$

653,

051

$

64

9,01

0$

El

ectri

c En

ergy

(lin

es 1

c - 9

c)70

0,15

8$

736,

815

$

-

$

-

$

-

$

-

$

5,

920,

751

$

13.

Tra

nsm

issio

n R

even

ue 1

3. T

rans

miss

ion

Rev

enue

-$

14.

Oth

er E

lect

ric R

even

ue 1

4. O

ther

Ele

ctric

Rev

enue

-$

15.

kW

h - O

wn

Use

51,1

5762

,792

46,7

8526

,015

23,1

1911

,024

15.

kW

h - O

wn

Use

11,5

4412

,465

00

00

244,

901

16.

TO

TAL

kWh

Purc

hase

d7,

617,

102

8,60

8,46

07,

705,

162

5,44

9,33

65,

295,

862

5,13

4,19

5 1

6. T

OTA

L kW

h Pu

rcha

sed

5,77

2,54

86,

416,

552

00

00

51,9

99,2

17

17.

TO

TAL

kWh

Gen

erat

ed0

00

00

0 1

7. T

OTA

L kW

h G

ener

ated

00

00

00

0

18.

Cos

t of P

urch

ases

and

Gen

erat

ion

311,

706

$

34

8,05

3$

319,

282

$

23

3,60

1$

230,

739

$

23

0,56

6$

18.

Cos

t of P

urch

ases

and

Gen

erat

ion

263,

549

$

30

0,12

7$

-$

-$

-$

-$

2,23

7,62

3$

19.

Int

erch

ange

- kW

h - N

et0

00

00

0 1

9. I

nter

chan

ge -

kWh

- Net

00

00

00

0 2

0. P

eak

- Sum

All k

Wh

Inpu

t (M

eter

ed)

20.

Pea

k - S

um A

ll kW

h In

put (

Met

ered

)o

Coi

ncid

ent

x N

on-C

oinc

iden

t15

,853

17,6

8818

,541

11,2

7810

,880

11,0

90o

Coi

ncid

ent x

Non

-Coi

ncid

ent

13,7

9114

,124

00

00

18,5

41

RU

S F

orm

7 (

Rev. 6-9

4)

Lin

e L

os

se

s9

.26

%7

.73

%8

.77

%8

.23

%8

.53

%8

.90

%8

.47

%9

.44

%#

DIV

/0!

#D

IV/0

!#

DIV

/0!

#D

IV/0

!8

.65

%

Lin

e L

os

se

s p

lus

Tra

ns

mis

sio

n L

os

se

s1

3.4

7%

12

.01

%1

3.0

0%

12

.49

%1

2.7

8%

13

.13

%1

2.7

2%

12

.62

%#

DIV

/0!

#D

IV/0

!#

DIV

/0!

#D

IV/0

!1

2.7

6%

Red

Lod

ge H

eatin

g D

egre

e D

ays

1,1

32

1

,43

7

1,0

67

6

25

6

60

2

40

7

9

75

5

,31

5

Cur

rent

Mon

th Y

TD

1,1

32

2

,56

9

3,6

36

4

,26

1

4,9

21

5

,16

1

5,2

40

5

,31

5

5,3

15

5

,31

5

5,3

15

5

,31

5

+/- P

erce

ntag

e vs

. 201

8 H

isto

ry C

urre

nt M

onth

YT

D1

%7

%1

0%

6%

15

%1

7%

18

%1

8%

+/- P

erce

ntag

e vs

. 15

Yr.

Ave

. Cur

rent

Mon

th Y

TD

-4%

16

%2

0%

17

%2

2%

24

%2

5%

26

%

Red

Lod

ge H

eatin

g D

egre

e D

ays H

isto

ry (2

018)

1,1

23

1

,28

6

89

7

70

2

28

0

13

2

15

8

2

28

1

63

3

98

3

1,0

90

7

,50

4

Cur

rent

Mon

th Y

TD

201

8 H

isto

ry1

,12

3

2,4

09

3

,30

6

4,0

08

4

,28

8

4,4

20

4

,43

5

4,5

17

4

,79

8

5,4

31

6

,41

4

7,5

04

Red

Lod

ge H

eatin

g D

egre

e D

ays H

isto

ry (1

5 Y

r. A

ve.)

1,1

81

1

,03

4

80

5

63

1

38

8

12

6

14

4

2

20

5

57

2

88

0

1,2

25

7

,10

4

Cur

rent

Mon

th Y

TD

15

Yr.

Ave

.1

,18

1

2,2

15

3

,02

0

3,6

51

4

,03

9

4,1

65

4

,17

9

4,2

21

4

,42

6

4,9

98

5

,87

9

7,1

04

Decem

ber

31, 2019

PA

RT

R. P

OW

ER

RE

QU

IRE

ME

NT

S D

AT

A B

AS

E

LIN

EIT

EMN

UM

BER

US

DA

- R

US

US

DA

- R

US

FIN

AN

CIA

L A

ND

ST

AT

IST

ICA

L R

EP

OR

TM

T019

FIN

AN

CIA

L A

ND

ST

AT

IST

ICA

L R

EP

OR

T

Decem

ber

31, 2019

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 32

BEARTOOTH ELECTRIC COOPERATIVE, INC.

COMPARATIVE BALANCE SHEET

August 31, 2019

CURRENT YEAR LAST YEAR DIFFERENCE

ASSETS AND OTHER DEBITS

-----------------------

TOTAL UTILITY PLANT IN SERVICE $33,707,713.97 $32,066,967.65 $1,640,746.32

CONSTRUCTION WORK IN PROGRESS 255,717.52 444,745.09 -189,027.57

TOTAL UTILITY PLANT $33,963,431.49 $32,511,712.74 $1,451,718.75

-------------------- -------------------- --------------------

ACCUMULATED PROVISION FOR DEPRECIATION -$16,425,450.40 -$15,862,736.22 -$562,714.18

-------------------- -------------------- --------------------

NET UTILITY PLANT $17,537,981.09 $16,648,976.52 $889,004.57

-------------------- -------------------- --------------------

INVEST. IN ASSOC. ORG.-PATRONAGE CAPITAL $454,799.26 $438,637.84 $16,161.42

INVEST. IN ASSOC. ORG. NON-GENERAL FUNDS 285,417.76 287,267.24 -1,849.48

-------------------- -------------------- --------------------

TOTAL OTHER PROPERTY & INVESTMENTS $740,217.02 $725,905.08 $14,311.94

-------------------- -------------------- --------------------

CASH - GENERAL FUNDS $181,912.32 $871,841.48 -$689,929.16

CASH - CONSTRUCTION FUND - TRUSTEE 1.00 1.00 0.00

TEMPORARY INVESTMENTS 902,561.71 1,296,079.89 -393,518.18

-------------------- -------------------- --------------------

TOTAL CASH ON HAND $1,084,475.03 $2,167,922.37 -$1,083,447.34

NOTES RECEIVABLE $0.00 $0.00 $0.00

ACCOUNTS RECEIVABLE SALES OF ENERGY (NET 807,560.46 767,324.34 40,236.12

ACCOUNTS RECEIVABLE - OTHER (NET) 118,912.21 40,870.51 78,041.70

MATERIAL AND SUPPLIES - ELECTRIC & OTHER 263,749.24 488,025.21 -224,275.97

PREPAYMENTS 143,025.09 125,515.50 17,509.59

OTHER CURRRENT AND ACCRUED ASSETS 4,761.82 7,919.64 -3,157.82

-------------------- -------------------- --------------------

TOTAL CURRENT AND ACCRUED ASSETS $2,422,483.85 $3,597,577.57 -$1,175,093.72

-------------------- -------------------- --------------------

OTHER DEFERRED DEBITS $589,180.81 $736,204.74 -$147,023.93

-------------------- -------------------- --------------------

TOTAL ASSETS AND OTHER DEBITS $21,289,862.77 $21,708,663.91 -$418,801.14

==================== ==================== ====================

LIABILITIES AND OTHER CREDITS

-----------------------------

MEMBERSHIPS $0.00 $0.00 $0.00

PATRONAGE CAPITAL 8,224,753.18 8,160,390.76 64,362.42

OPERATING MARGINS- PRIOR YEAR 0.00 0.00 0.00

OPERATING MARGINS- CURRENT YEAR 245,316.28 471,529.45 -266,213.17

NON-OPERATING MARGINS 540,256.40 399,891.87 140,364.53

OTHER MARGINS AND EQUITIES 220,028.33 162,485.84 57,542.49

-------------------- -------------------- --------------------

TOTAL MARGINS AND EQUITIES $9,230,354.19 $9,194,297.92 $36,056.27

-------------------- -------------------- --------------------

LONG-TERM DEBT -RUS (NET) $408,981.02 $435,678.67 -$26,697.65

LONG-TERM DEBT-FFB-RUS GUARANTEED 6,438,571.73 6,632,678.81 -194,107.08

OTHER LONG-TERM DEBT (NET) 5,654,602.87 6,664,058.49 -1,009,455.62

ADVANCE PAYMENTS UNAPPLIED-RUS LOANS -1,755,602.23 -2,173,696.98 418,094.75

-------------------- -------------------- --------------------

TOTAL LONG-TERM DEBT $10,746,553.39 $11,558,718.99 -$812,165.60

-------------------- -------------------- --------------------

NOTES PAYABLE $0.00 $0.00 $0.00

ACCOUNTS PAYABLE 485,373.98 401,090.41 84,283.57

CONSUMERS DEPOSITS 106,371.62 62,153.80 44,217.82

OTHER CURRENT AND ACCRUED LIABILITIES 681,701.34 472,076.03 209,625.31

-------------------- -------------------- --------------------

TOTAL CURRENT AND ACCRUED LIABILITIES $1,273,446.94 $935,320.24 $338,126.70

-------------------- -------------------- --------------------

OTHER DEFERRED CREDITS $39,508.25 $20,326.76 $19,181.49

-------------------- -------------------- --------------------

TOTAL LIABILITIES AND OTHER CREDITS $21,289,862.77 $21,708,663.91 -$418,801.14

==================== ==================== ====================


Fin

anci

al In

form

atio

n A

ugu

st 2

01

9

Act

ual

Bu

dge

t2

01

8A

ctu

alB

ud

get

20

18

Op

erat

ing

Re

ven

ue

$5

,94

0,7

07

$5

,78

5,7

00

$5

,75

3,0

51

$7

38

,21

3$

71

1,1

00

$7

07

,94

6

Co

st o

f P

ow

er

$2

,23

7,6

23

$2

,10

0,1

88

$2

,11

3,4

07

$3

00

,12

7$

25

1,7

20

$2

53

,30

5

$-

$1

,00

0,0

00

$2

,00

0,0

00

$3

,00

0,0

00

$4

,00

0,0

00

$5

,00

0,0

00

$6

,00

0,0

00

$7

,00

0,0

00

Rev

en

ue

& C

ost

of

Po

we

r -

20

19

Act

ual

Bu

dge

t2

01

8A

ctu

alB

ud

get

20

18

Ad

min

. & G

en.

$8

21

,40

5$

75

3,4

78

$7

46

,80

7$

77

,79

4$

90

,21

6$

88

,79

5

Cu

st. S

erv.

$2

97

,72

8$

36

0,5

07

$3

02

,19

7$

33

,10

2$

50

,66

9$

44

,55

5

Op

er &

Mai

nt

$1

,20

7,9

11

$1

,09

6,8

54

$1

,04

8,9

51

$1

87

,35

6$

16

7,8

81

$1

69

,55

4

$-

$5

00

,00

0

$1

,00

0,0

00

$1

,50

0,0

00

$2

,00

0,0

00

$2

,50

0,0

00

Op

era

tin

g Ex

pe

nse

s -

20

19

YTD

AU

G

$-

$1

00

,00

0

$2

00

,00

0

$3

00

,00

0

$4

00

,00

0

$5

00

,00

0

$6

00

,00

0

$7

00

,00

0

$8

00

,00

0

Jan

Feb

Mar

Ap

rM

ayJu

nJu

lA

ug

Sep

tO

ctN

ov

De

c

YTD

Cu

mu

lati

ve M

argi

ns

-2

01

9

Act

ual

Bu

dge

t2

01

8

$(1

00

,00

0)

$(5

0,0

00

)

$-

$5

0,0

00

$1

00

,00

0

$1

50

,00

0

$2

00

,00

0

$2

50

,00

0

Jan

Feb

Mar

Ap

rM

ayJu

nJu

lA

ug

Sep

tO

ctN

ov

De

c

Mo

nth

ly M

argi

ns

-2

01

9

Act

ual

Bu

dge

t2

01

8

YTD

AU

G

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 34

Fin

anci

al In

form

atio

n T

hro

ugh

Au

gust

20

19

chan

ge d

ate

in h

ead

er

Rat

ios:

Dec

emb

er 3

1, 2

01

8 a

nd

Au

gust

31

, 20

18

& 2

01

9YE

20

18

8/3

1/1

88

/31

/19

Qu

ick

Rat

io *

2.4

23

.18

1.5

8

Cu

rren

t R

atio

2.9

23

.85

1.9

0

Equ

ity

as a

% o

f N

et U

tilit

y P

lan

t5

2.9

5%

55

.22

%5

2.6

3%

Equ

ity

as a

% o

f To

tal A

sset

s**

41

.55

%4

2.3

5%

43

.36

%

Net

TIE

R *

** (

YTD

)2

.16

2.5

01

.95

Jan

-Sep

t 1

5O

ct 1

4-D

ec1

4D

SC *

***

1.3

21

.19

1.1

8

Mo

dif

ied

DSC

w/o

CO

C L

oan

1.8

61

.87

1.7

1

71

92

57

.72

34

82

0.8

Cas

h &

Inve

stm

ents

1,7

19

,87

1

2,1

67

,92

2

1,0

84

,47

5

43

79

17

.91

50

49

7.7

Rec

eiva

ble

s9

34

,02

2

8

08

,19

5

9

26

,47

3

57

96

96

.82

,65

3,8

93

2

,97

6,1

17

2

,01

0,9

48

58

24

13

.51

76

33

5.9

Less

Pay

able

s(4

48

,55

1)

(40

1,0

90

)

(48

5,3

74

)

10

37

02

4Li

qu

idit

y2

,20

5,3

42

2

,57

5,0

27

1

,52

5,5

74

2.3

3O

ther

Pay

men

ts D

ue:

Du

e$

2.7

99

06

04

5 R

US

Loan

Pay

men

t9

/30

/20

19

4,1

26

(f

rom

CO

C a

cco

un

t)

FFB

Lo

an P

aym

ent

9/3

0/2

01

91

16

,33

7

(f

rom

CO

C a

cco

un

t)

CFC

Lo

an P

aym

ent

10

/31

/20

19

15

3,7

81

No

te: R

ecei

ved

are

pay

men

ts r

ecei

ved

th

rou

gh S

epte

mb

er 1

5th

of

the

corr

esp

on

din

g ye

ar C

oB

ank

Loan

Pay

men

t9

/20

/20

19

59

,82

0

* Q

uic

k ra

tio

=mea

sure

s th

e ab

ility

of

a co

mp

any

to u

se it

s ca

sh a

nd

sh

ort

-ter

m/

dem

and

dep

osi

ts t

o e

xtin

guis

h c

urr

ent

liab

iliti

es im

med

iate

ly**

Eq

uit

y Ta

rget

- 4

0%

***

Net

TIE

R=T

imes

Inte

rest

Ear

ned

Rat

io (

TIER

) m

ean

s th

e ra

tio

of

ab

orr

ow

er’s

net

inco

me

(aft

er t

axes

) p

lus

inte

rest

exp

ense

,al

l div

ided

by

inte

rest

exp

ense

Net

TIE

R T

arge

t =

RU

S C

ove

nan

t =

1.2

5 (

met

2 o

f 3

yea

rs)

****

DSC

=Deb

t Se

rvic

e C

ove

rage

is a

mea

sure

men

t to

gen

erat

e su

ffic

ien

t fu

nd

s

to c

ove

r p

rin

cip

al a

nd

inte

rest

of

lon

g-te

rm d

ebt

on

an

an

nu

al b

asis

DSC

Tar

get

= 1

.25

(R

US

Co

ven

ant

= 1

.25

, met

2 o

f 3

yea

rs)

3,5

00

,00

0

4,0

00

,00

0

4,5

00

,00

0

5,0

00

,00

0

5,5

00

,00

0

6,0

00

,00

0

6,5

00

,00

0

7,0

00

,00

0

7,5

00

,00

0

8,0

00

,00

0

8,5

00

,00

0

Jan

Feb

Mar

Ap

rM

ayJu

nJu

lA

ug

Sep

tO

ctN

ov

De

c

Mo

nth

ly k

Wh

Sal

es

20

19

20

19

Bu

dge

t/2

01

8 A

ctu

al2

01

7

$-

$2

0,0

00

.00

$4

0,0

00

.00

$6

0,0

00

.00

$8

0,0

00

.00

$1

00

,00

0.0

0

$1

20

,00

0.0

0

30

Day

s6

0 D

ays

90

Day

sTo

tal P

ast

Du

e

Au

gust

Age

d P

ast

Du

e A

cco

un

ts R

ecei

vab

le

20

19

20

19

Re

ceiv

ed2

01

82

01

8 R

ecei

ved

$-

$2

0,0

00

$4

0,0

00

$6

0,0

00

$8

0,0

00

$1

00

,00

0

$1

20

,00

0

Jan

20

19

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

De

linq

ue

nt

List

ing

-P

aym

en

ts r

ece

ive

d t

hru

0

9/1

5/2

01

9 -

Ove

r 3

0 D

ays

Cu

sto

me

r In

form

atio

n S

yste

mP

aym

en

ts R

ece

ived

Bal

ance

Du

e

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 35


SIMPLIFIED CASH FLOW

As of August 31, 2019

Black = creates cash

Red = uses cash

Thousands (000s) Actual Budget*

CASH FROM OPERATIONS

Margins 380.7$ -$

Add back Depreciation 723.8 -

Add back Regulatory Asset Amortization 94.0 -

Cost from retirement of assets (poles, etc.) (512.1) -

Cash from Operations 686.4 -

Uses of Cash in Operations

Change in Ending Receivable Balance 7.5 -

Change in Ending Inventory Balance 160.2 -

Change in Ending Prepaid Expense Balance (23.0) -

Reduction of (payment for) other Current Assets 9.7 -

Change in Ending Accounts Payable Balance 36.9 -

Accrual/(payment) of other Current Liabilities 129.3 -

Cash created by (used in) operations 320.6 -

Capital Spending

Utility Plant (1,180.1) -

Construction Work in Progress 282.9 -

Other Property & Investments (12.7) -

Cash (used in) Capital Spending (909.9) -

Increase of debt (borrowing) - -

New debt -

Pay down of debt (829.6) -

Advance Payments Unapplied 203.6 -

Other creation (use of) cash (Estate Retirement) (64.7) -

Other Deferred Credit (41.8) -

Change in cash from all activities (635.4) -

Cash and Investments beginning 1,719.9 1,719.9

Change in cash (635.4) -

Cash and Investments ending 1,084.5 1,719.9

Payroll 1,008.4 996.0

Benefits 707.1 608.9

Total 1,715.4 1,604.9

*Note: Cash Flow Budget was forecasted on a quarterly basis. August 2019 is the second month of third quarter (September 2019).


Firs

t Int

erst

ate

Ban

k - C

heck

ing

1/1/

2019

2/1/

2019

3/1/

2019

4/1/

2019

5/1/

2019

6/1/

2019

7/1/

2019

8/1/

2019

9/1/

2019

10/1

/201

911

/1/2

019

12/1

/201

9To

tals

Beg

inni

ng B

alan

ce36

1,30

1

176,

165

23

7,28

8

261,

510

19

7,71

5

180,

071

39

3,75

8

174,

339

88

,284

21

9,04

7

(161

,684

)

(270

,368

)

361,

301

Tran

sfer

s In

- 19

8,84

3

900,

000

70

0,00

0

200,

000

50

0,00

0

2,49

8,84

3

Tran

sfer

s Out

- (1

98,8

43)

(7

00,0

00)

(6

00,0

00)

(4

00,0

00)

(1

,898

,843

)

Rec

eipt

s82

5,60

4

826,

315

91

4,46

0

855,

958

73

3,75

2

747,

483

70

4,38

5

790,

933

79

9,91

3

638,

900

63

6,80

0

729,

500

9,

204,

004

- -

- -

- -

- -

- -

- -

-

Paym

ent Pa

yrol

l E

mpl

oyee

s(1

20,7

68)

(6

9,71

6)

(69,

704)

(6

9,10

8)

(70,

865)

(7

3,29

5)

(118

,958

)

(75,

973)

(7

0,00

0)

(70,

000)

(7

0,00

0)

(70,

000)

(8

27,6

18)

Tax

es(4

9,84

3)

(23,

485)

(4

6,43

2)

(35,

109)

(3

3,52

5)

(34,

819)

(3

6,16

3)

(56,

755)

(3

2,00

0)

(32,

000)

(3

2,00

0)

(32,

000)

(3

94,2

88)

R&

S/40

1k(6

4,45

4)

(62,

248)

(5

0,28

2)

(54,

441)

(5

1,01

8)

(52,

268)

(6

2,31

7)

(51,

891)

(2

9,00

0)

(29,

000)

(2

9,00

0)

(29,

000)

(5

00,4

66)

Loan

s R

US*

- -

- -

- -

- -

- -

- -

-

CFC

(153

,759

)

- -

(153

,754

)

- -

(153

,781

)

- -

(153

,759

)

- -

(461

,294

)

FFB

*-

- -

- -

- -

- -

- -

- -

CoB

ank

(59,

927)

(5

9,93

5)

(59,

619)

(5

9,92

4)

(59,

833)

(5

9,93

2)

(59,

820)

(5

9,92

4)

(59,

935)

(5

9,93

5)

(59,

935)

(5

9,93

5)

(658

,728

)

Insu

ranc

e G

roup

(64,

699)

(1

3,57

2)

(13,

572)

(5

9,41

7)

(13,

572)

(1

3,57

2)

(61,

521)

(1

0,85

8)

(14,

000)

(6

0,00

0)

(14,

000)

(1

4,00

0)

(288

,083

)

Gen

eral

- -

- -

- -

- -

- -

- -

-

WC

(25,

279)

-

(1,2

31)

-

- -

- -

- -

- -

(1,2

31)

A/P

(147

,544

)

(154

,201

)

(241

,200

)

(231

,481

)

(176

,180

)

(82,

495)

(2

07,6

35)

(4

44,4

89)

(1

75,0

00)

(1

75,0

00)

(1

75,0

00)

(1

75,0

00)

(2

,237

,681

)

Pow

er(3

22,4

30)

(3

05,2

28)

(3

64,7

85)

(3

17,3

63)

(2

24,9

33)

(2

39,1

54)

(2

06,0

76)

(2

75,5

59)

(2

59,6

65)

(2

39,0

08)

(2

38,5

49)

(2

66,1

38)

(2

,936

,458

)

Prop

erty

Tax

es-

- -

(8,8

68)

(1

23,4

69)

-

- -

- (1

0,00

0)

(125

,000

)

- (2

67,3

37)

Met

er P

roje

ct-

(74,

898)

(4

1,20

5)

(128

,251

)

(95,

854)

(1

76,2

55)

(1

5,43

0)

- (2

7,55

0)

(188

,929

)

- -

(748

,371

)

Oth

er(2

,039

)

(1,9

08)

(2

,210

)

(2,0

38)

(2

,147

)

(2,0

06)

(2

,102

)

(1,5

39)

(2

,000

)

(2,0

00)

(2

,000

)

(2,0

00)

(2

1,95

0)

Tota

l Pay

men

ts(1

,010

,741

)

(765

,192

)

(890

,238

)

(1,1

19,7

53)

(8

51,3

96)

(7

33,7

96)

(9

23,8

04)

(9

76,9

88)

(6

69,1

50)

(1

,019

,631

)

(745

,484

)

(648

,073

)

(9,3

43,5

05)

Endi

ng B

alan

ce17

6,16

5

237,

288

26

1,51

0

197,

715

18

0,07

1

393,

758

17

4,33

9

88,2

84

219,

047

(1

61,6

84)

(2

70,3

68)

(1

88,9

41)

82

1,80

0

*Beg

Sep

t 201

8 Pd

thru

CO

C1/

31/2

019

2/28

/201

93/

31/2

019

4/30

/201

95/

31/2

019

6/30

/201

97/

31/2

019

8/31

/201

99/

30/2

019

10/3

1/20

1911

/30/

2019

12/3

1/20

19

Firs

t Int

erst

ate

Ban

k - S

avin

gs

Beg

inni

ng B

alan

ce52

7,15

3

540,

964

56

7,45

5

1,29

5,76

0

396,

966

42

7,54

3

245,

814

24

9,70

9

372,

886

38

4,88

6

396,

886

40

8,88

6

527,

153

Tran

sfer

s In

- 70

0,00

0

700,

000

60

0,00

0

2,00

0,00

0

Tran

sfer

s Out

- (9

00,0

00)

(7

00,0

00)

(2

00,0

00)

(5

00,0

00)

(2

,300

,000

)

Rec

eipt

s13

,811

26

,492

28

,304

1,

206

30

,577

18

,271

3,

895

23

,177

12

,000

12

,000

12

,000

12

,000

19

3,73

3

Tota

l Pay

men

ts-

- -

- -

- -

- -

- -

- -

Endi

ng B

alan

ce54

0,96

4

567,

455

1,

295,

760

39

6,96

6

427,

543

24

5,81

4

249,

709

37

2,88

6

384,

886

39

6,88

6

408,

886

42

0,88

6

420,

886

All

Oth

er A

ccou

nts

Beg

inni

ng B

alan

ce83

1,41

6

838,

230

84

1,40

0

143,

316

92

3,41

2

823,

318

82

3,42

8

823,

305

62

3,30

5

623,

306

62

3,30

7

211,

035

83

1,41

6

Tran

sfer

s In

700,

000

60

0,00

0

600,

000

40

0,00

0

2,30

0,00

0

Tran

sfer

s Out

- (7

00,0

00)

(7

00,0

00)

(6

00,0

00)

(6

00,0

00)

(2

,600

,000

)

Rec

eipt

s6,

814

3,

170

1,

917

80

,096

(9

4)

110

(1

23)

-

1 1

1 1

91,8

93

Tota

l Pay

men

ts/G

en.R

etire

- -

- -

- -

- -

- -

(412

,273

)

- (4

12,2

73)

Endi

ng B

alan

ce83

8,23

0

841,

400

14

3,31

6

923,

412

82

3,31

8

823,

428

82

3,30

5

623,

305

62

3,30

6

623,

307

21

1,03

5

211,

036

21

1,03

6

TO

TA

L A

LL

AC

CO

UN

TS

1,55

5,35

8$

1,64

6,14

3$

1,70

0,58

6$

1,51

8,09

3$

1,43

0,93

2$

1,46

3,00

0$

1,24

7,35

3$

1,08

4,47

5

1,

227,

239

$

85

8,50

9$

349,

553

$

44

2,98

1$

1/31

/201

92/

28/2

019

3/31

/201

94/

30/2

019

5/31

/201

96/

30/2

019

7/31

/201

98/

31/2

019

9/30

/201

910

/31/

2019

11/3

0/20

1912

/31/

2019

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 37

BEA

RTO

OTH

ELE

CT

RIC

CO

OPE

RA

TIV

E, I

NC

.C

FC S

ELEC

T N

OTE

S IN

VES

TMEN

TS 1/31

/201

92/

28/2

019

3/31

/201

94/

30/2

019

5/31

/201

96/

30/2

019

7/31

/201

98/

31/2

019

9/30

/201

910

/31/

2019

11/3

0/20

1912

/31/

2019

1,55

5,35

8$

1,64

6,14

3$

1,

700,

586

$

1,51

8,09

3$

1,

430,

932

$

1,46

3,00

0$

1,

247,

353

$

1,08

4,47

5$

1,

227,

239

$

858,

509

$

349,

553

$

442,

981

$

6/29

/201

83/

26/2

019

70

0,0

00

m

atur

ity4/

10/2

019

(70

0,0

00

)

in

vest

- 48

day

s5/

28/2

019

70

0,0

00

mat

urity

5/29

/201

9(6

00

,00

0)

inve

st -

51 d

ays

7/19

/201

96

00

,00

0

m

atur

ity7/

19/2

019

(60

0,0

00

)

in

vest

- 31

day

s8/

19/2

019

60

0,0

00

mat

urity

(40

0,0

00

)

in

vest

- 49

day

s4

00

,00

0

m

atur

ity

(70

0,0

00

)

(70

0,0

00

)

-

(70

0,0

00

)

(60

0,0

00

)

(6

00

,00

0)

(60

0,0

00

)

(4

00

,00

0)

(40

0,0

00

)

-

- -

WO

RK

ING

CA

SH A

VA

ILA

BL

E85

5,35

8$

94

6,14

3$

1,

700,

586

$

818,

093

$

830,

932

$

863,

000

$

647,

353

$

684,

475

$

827,

239

$

858,

509

$

349,

553

$

442,

981

$

Inte

rest

Rat

e2

.64

%2

.64

%2

.64

%2

.67

%2

.67

%

1,5

69

.53

$

1

,41

7.6

4$

1,3

16

.42

$

1

,02

4.1

1$

1,4

33

.75

$

3128

26

2

0

28

216

244

270

20 48

Inte

rest

Rat

e2

.62

%2

.62

%2

.62

%

86

.14

$

1

,29

2.0

5$

81

8.3

0$

2 30

192

3251

Inte

rest

Rat

e2

.48

%2

.48

%

48

9.2

1$

77

4.5

7$

1219

1231

2.2

3%

2.2

3%

2.2

3%

24

.44

$

73

3.1

5$

43

9.8

9$

130

181

3149

Mon

thly

Inte

rest

Inco

me

1,56

9.53

$

1,41

7.64

$

1,31

6.42

$

1,02

4.11

$

1,51

9.89

$

1,29

2.05

$

1,30

7.51

$

799.

01$

73

3.15

$

439.

89$

To

tal I

nter

est I

ncom

e14

,694

.25

$

2,45

7.86

$

2,

196.

49$

1,26

3.78

$

1,

197.

48$

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 38


Accounts Payable

Check Register

8/16/2019 To 9/15/2019

Bank Account: 1 - GENERAL FUND

Check / Date Pmt Vendor Name Reference Amount

Tran Listed Type

1917 8/16/2019 WIRE INTERNAL REVENUE SERVICE FEDERAL TAXES WITHHELD & FICA 15,144.46

1918 8/20/2019 WIRE COBANK PRINCIPAL & INTEREST 59,923.60

1919 8/20/2019 WIRE MORGAN STANLEY CAPITAL GROUP INC. POWER BILL 190,579.32

1920 8/20/2019 WIRE DEPARTMENT OF ENERGY POWER BILL 11,288.49

1921 8/22/2019 WIRE NATIONAL RURAL ELEC COOP ASSOC R & S PLAN 33,427.87

1922 8/28/2019 WIRE PAYROLL PAYROLL 37,102.42

1923 8/28/2019 WIRE NRECA 401k PENSION PLAN 8,444.70

1924 8/28/2019 WIRE NRECA 401k PENSION PLAN LOAN REPAYMENT 1,014.04

1925 8/28/2019 WIRE NORTHWESTERN ENERGY TRANSMISSION BILL 73,691.17

1926 8/29/2019 WIRE INTERNAL REVENUE SERVICE FEDERAL WITHHELD & FICA 14,973.86

1927 8/30/2019 WIRE NATIONAL RURAL UTILITES FIB CHECKING TO CFC SELECT NOTES INVESTM 400,000.00

1928 9/4/2019 WIRE PAYROLL PAYROLL-PTO LIMITS 21,341.44


1930 9/11/2019 WIRE PAYROLL PAYROLL 35,175.03

1931 9/11/2019 WIRE NRECA 401k PENSION PLAN 8,035.03

1932 9/11/2019 WIRE NRECA 401k PENSION PLAN LOAN REPAYMENT 1,014.04

1933 9/10/2019 WIRE US BANK MONTHLY CORPORATE CREDIT CARD STATEMENT 5,803.97


60484 8/16/2019 CHK ANIXTER INC METERS 129,571.00

60485 8/16/2019 CHK BORDER STATES ELECTRIC SUPPLY MATERIAL 77,133.11

60486 8/16/2019 CHK CARBON COUNTY TREASURER UNIT #64 & UNIT #82 REGISTRATION 299.48

60487 8/16/2019 CHK DANIEL DUTTON BOARD FEE & OTHER MEETING 375.00

60488 8/16/2019 CHK EES CONSULTING RATE STUDY CONSULTING 5,747.50

60489 8/16/2019 CHK GENERAL PACIFIC, INC. METERING SUPPLIES 340.00

60490 8/16/2019 CHK MCFARLAND CASCADE HOLDINGS POLES FOR NYE SUBSTATION REBUILD 7,007.00

60491 8/16/2019 CHK MONTANA DEPT OF REVENUE MT WITHHELD TAXES 2,704.00

60492 8/16/2019 CHK RICHARD T NOLAN BOARD FEE, MILEAGE, EM, & OTHER MEETINGS 1,342.83

60493 8/16/2019 CHK NORTHWEST PUBLIC POWER ASSOC COMMUNICATIONS CONFERENCE 795.00

60494 8/16/2019 CHK QUILL CORPORATION OFFICE SUPPLIES 116.68

60495 8/16/2019 CHK STILLWATER CO CLERK & RECORDER NYE SUBSTATION REBUILD EASEMENT 5.00

60496 8/16/2019 CHK TERRELL'S OFFICE MACHINES, INC. KYOCERA MAINTENANCE 296.80

60497 8/16/2019 CHK UTILITIES UNDERGROUND LOCATE BILLABLE TICKETS 580.90

60498 8/23/2019 CHK ACLARA TECHNOLOGIES LLC ADDITIONAL MDMS CUSTOM FILE CHARGE 3,500.00

60499 8/23/2019 CHK ALTEC INDUSTRIES INC UNIT #6 PART 54.80

60500 8/23/2019 CHK BOBCAT OF BIG SKY, INC. UNIT #90 PART 26.90

60501 8/23/2019 CHK CREDIT ASSOCIATES, INC. COLLECTION FEES 63.76

60502 8/23/2019 CHK FELT, MARTIN, FRAZIER & WELDON, P.C. ATTORNEY STATEMENT 438.25

60503 8/23/2019 CHK HDR ENGINEERING INC NYE SUBSTATION REBUILD ENGINEERING 6,751.21

60504 8/23/2019 CHK JACK HENRY & ASSOCIATES ACH PROCESSING FEES 76.20

60505 8/23/2019 CHK KEN'S I-90 UNIT #63 R & R FUEL FILTERS 1,239.83

60506 8/23/2019 CHK MONTANA MOBILE MONTHLY OFFICE SHREDDING SERVICE 45.00

60507 8/23/2019 CHK MORRISON MAIERLE SYSTEMS CORP TEN SUBSTATIONS FIREWALL SUPPORT 307.00

60508 8/23/2019 CHK NORTHWEST PUBLIC POWER ASSOC LINEMAN AD 165.00

60509 8/23/2019 CHK NRECA TRUSTEE GUEST REGISTRATION 25.00

60510 8/23/2019 CHK ONE CALL LOCATORS, LTD BILLABLE TICKETS - MT & WY 10,664.93

60511 8/23/2019 CHK ONE SMART CONFERENCE, INC. CONFERENCE SERVICE 33.97

60512 8/23/2019 CHK RONNING AUTO TRUCK TRACTOR SERVICE UNITS #6 & #58 OIL CHANGE AND #60 BRAKES & OIL CHANGE 1,609.00

60513 8/23/2019 CHK SOUTHERN STATES FUSES FOR NYE SUBSTATION REBUILD 18,767.12

60514 8/23/2019 CHK WYOMING DEPT OF REVENUE WY SALES & USE TAX 1,859.74

60515 8/23/2019 CHK MEMBER ESTATE RETIREMENT JULY 2019 3,749.65

60516 8/23/2019 CHK MEMBER REWRITE FOR UNCLAIMED CC 3.81

60517 8/30/2019 CHK AMERICA FAMILY LIFE INSURANCE CO PAYROLL DEDUCTION INSURANCE 270.92

60518 8/30/2019 CHK ASPLUNDH TREE EXPERT CO. TREE TRIMMING 35,370.00

60519 8/30/2019 CHK BOOSTER CLUB PLATINUM MEMBERSHIP 150.00

60520 8/30/2019 CHK CENTURYLINK RL FAX, COLUMBUS & FIVE SUBSTATIONS 552.94

60521 8/30/2019 CHK CHARTER COMMUNICATIONS RL INTERNET 99.97

60522 8/30/2019 CHK FARMER BROS CO COFFEE 117.70

60523 8/30/2019 CHK GENERAL PACIFIC, INC. METERS 2,343.48

60524 8/30/2019 CHK HDR ENGINEERING INC ENGINEERING CONSULTING 407.50

60525 8/30/2019 CHK LANDIS+GYR TECHNOLOGY, INC. JULY & AUG HOSTING FEE AND JUNE & JULY LONG DISTANCE 1,960.44

60526 8/30/2019 CHK LOCAL UNION 44 UNION DUES 1,103.70

60527 8/30/2019 CHK METLIFE PAYROLL DEDUCTION INSURANCE 25.00

60528 8/30/2019 CHK MONTANA CSED SDU MONTANA CSED 389.52


60530 8/30/2019 CHK MONTANA ELECTRIC COOP ASSN., INC. GENERAL & SAFETY DUES, RM & N.BROADCSTNG 8,040.18

60531 8/30/2019 CHK NISC MISC, MDMS IMPLEMENTATION, AMS, NEWSLETTER 17,617.21

60532 8/30/2019 CHK KAAREN S ROBBINS EXPENSE REIMBURSEMENT 55.46

60533 8/30/2019 CHK TOWN AND COUNTRY SUPPLY ASSO. FUEL 2,412.14

60534 8/30/2019 CHK VERIZON WIRELESS COLUMBUS MAPPING INTERNET 314.73

60535 8/30/2019 CHK MEMBER REWRITE FOR UNCLAIMED CC 3,749.65

60536 8/30/2019 CHK MEMBER INACTIVE REFUND 28.38

60537 8/30/2019 CHK MEMBER ESTATE RETIREMENT JULY 2019 2,079.75

60538 8/30/2019 CHK MEMBER CHECK REWRITE FOR UCLAIMED CC 145.82



60541 9/6/2019 CHK BIG SKY LINEN SUPPLY RL & COLUMBUS RUG CLEANING 110.39

60542 9/6/2019 CHK BOBCAT OF BIG SKY, INC. UNIT #90 PART 92.73

60543 9/6/2019 CHK CENEX FUEL 1,567.66

60544 9/6/2019 CHK CENTURYLINK COLUMBUS FAX LONG DISTANCE 2.57

60545 9/6/2019 CHK CITY OF RED LODGE MONTHLY WATER & SEWER 356.57

60546 9/6/2019 CHK COLUMBUS TIRE & SERVICE CENTER UNIT #63 FOUR (4) TIRES 1,069.80

60547 9/6/2019 CHK ECOLAB PEST ELIM DIV RL & COLUMBUS PEST CONTROL 190.59

60548 9/6/2019 CHK FAST INITIAL RESPONSE SYSTEMS & TRAINING TWO AED BATTERIES 350.47

60549 9/6/2019 CHK STEPHANIE FLETCHER AUGUST FITNESS REIMBURSEMENT 24.79

60550 9/6/2019 CHK GALVANIZERS, INC. NYE SUBSTATION UPGRADE MATERIAL 577.80

60551 9/6/2019 CHK HELI LLC POWER LINE INSPECTION AND GPS MAPPING 1,812.72

60552 9/6/2019 CHK MAID IN COLUMBUS LLC CLEANING COLUMBUS SHOP 200.00


60554 9/6/2019 CHK NEMONT TWO SUBSTATIONS 131.16

60555 9/6/2019 CHK ONE SMART CONFERENCE, INC. CONFERENCE CALLING 70.24

60556 9/6/2019 CHK KEVIN P OWENS MONTHLY AUTO ALLOWANCE 400.00

60557 9/6/2019 CHK ROLLING RIGHT DOOR SERVICE RESET BACK DOOR OPENER 92.00


Check Register

8/16/2019 To 9/15/2019

Bank Account: 1 - GENERAL FUND

Check / Date Pmt Vendor Name Reference Amount

Tran Listed Type

60558 9/6/2019 CHK SELBY'S ESSCO MAPPING SUPPLIES 60.78

60559 9/6/2019 CHK CONSTANCE S TEACHOUT MILEAGE REIMBURSEMENT 32.19

60560 9/6/2019 CHK VERIZON WIRELESS POLE GPS,TWACS IPADS, TRUCK, COLUM&CELLS 355.90


60562 9/6/2019 CHK VOID VOID -

60563 9/9/2019 CHK PAYROLL PAYROLL 3,706.10

60564 9/13/2019 CHK ALTEC INDUSTRIES INC UNIT #9 REPAIRS 1,096.64

60565 9/13/2019 CHK EES CONSULTING RATE STUDY CONSULTING 4,640.00

60566 9/13/2019 CHK FELT, MARTIN, FRAZIER & WELDON, P.C. MONTHLY ATTORNEY STATEMENT 33.25

60567 9/13/2019 CHK STEPHANIE FLETCHER MILEAGE REIMBURSEMENT 13.05

60568 9/13/2019 CHK LINECO LINEMAN INSURANCE 10,857.60

60569 9/13/2019 CHK MONTANA CSED SDU MONTANA CSED 194.76


60571 9/13/2019 CHK MONTANA MOBILE MONTHLY OFFICE SHREDDING SERVICE 45.00

60572 9/13/2019 CHK ONLINE INFORMATION SERVICES MONTHLY EXCHANGE SERVICE 8.10

60573 9/13/2019 CHK P D Q JANITORIAL SERVICE INC JULY & AUGUST RL CLEANING SERVICE 1,880.26

60574 9/13/2019 CHK SUNDANCE SOLAR SYSTEMS LLC PHASE 1 SHARES DU SOLEIL 36,540.00

60575 9/13/2019 CHK MEMBER PD Engineering fee 2X 250.00




60579 9/13/2019 CHK MEMBER PARTIAL REFUND PLOWING 2,300.00

Total Payments for Bank Account - 1 : (113) 1,369,625.00

Total Voids for Bank Account - 1 : (1) 3,749.65

Total for Bank Account - 1 : (114) 1,373,374.65


Beartooth Electric Cooperative, Inc.

Revised2019 Budget

2nd Quarter Review Footnotes:

Only the Operating Budget, Cash Budget and Projected Balance Sheet are adjusted in this Revised Budget.

$92,859 increase for July-Dec Cost of Purchased Power, which includes 75% of the NWE FERC raterequested increase that went into effect July 1, 2019

$68,496 increase for Jan-Dec Depreciation Expense under allocation $100,824 for Jan-Dec Payroll Benefit (primarily PTO) due to an under allocation

DRAFT For Disc

ussio

n Purp

oses

Only


Table of Contents

Narrative Summary…………………………………………………………….………………..……. 3

Operating Budget with Comparison to Prior Year……………….……….….……….. 10

Cash Budget …............................................………………………………...…….…….…………… 15

Projected Balance Sheet …............................................…………………….………...……….. 17

Revenue…………………………………………………………………….……………………………. 19

Cost of Power …………………………………………...……….……………………………………. 27

Payroll …………………………………………………………………………..………………………… 30

Capital Budgets ………………………………………………………………….….……………….. 33

Depreciation ……………………………………………………….……………….………………….. 39

Debt Service/Interest ……………………………………….…………………..………………….. 41

DRAFT For Disc

ussio

n Purp

oses

Only


Narrative Summary

Introduction:

There is no planned increase in rates contained within the 2019 Budget.

The Financial Forecast indicates solid cash levels, strong ratios and growing equity. The Forecast also indicates that revenue requirements will not call for a rate increase for the next five years.

Excluding Montana electric cooperatives served by the Bonneville Power Administration for wholesale power supply, Beartooth Electric residential rates are 2% below the remaining Montana electric cooperative average residential bill for 1000 kWh per month.

The 2019 Budget remains focused on the safety and reliability of BEC’s electric distribution system, capital improvements, member communication and a major step forward in displaying Beartooth’s support and commitment to renewable energy (Shares du Soleil).

The Cooperative will maintain focus on completing the TWACS digital meter upgrade in 2019. The NISC back office technology and software upgrades will continue through 2019 with the balance completed in 2020. Many of the NISC app-suites implemented in 2019 will significantly enhance communication between the Cooperative and the Member respective to outages, energy-use, bill payment and bill presentation. Members will start to see real value in the TWACS meter/NISC back-office upgrade project in 2019.

Financial thresholds have been established by the Board to maintain $500,000 in cash reserves. Beartooth’s lenders require that we maintain a Debt Service Coverage Ratio (DSCR) of 1.25 and a TIER Ratio of 1.25 throughout the period of the Work Plan 2018-2022. The 2019 Budget and 5 Year Financial Forecast maintains those levels. The Cooperative maintains a $2 million line of credit with both CFC and CoBank. The Board has chosen to access these funds primarily for unforeseen emergency situations. The Finance Committee and Board have also recognized debt management/borrowing as a financial tool for distributing investment costs over time (and generations of members) and even taking advantage of programs and interest rate developments such as cushion of credit.

The calculated percentage of Administrative & General Expense to Total Operating and Maintenance Expense has dropped from the 2018 ProForma of 18.5% to 17.2% in 2019.

The Board desires to maintain a target of retiring (payment to Members) 5% of Equity (outstanding Capital Credits). The 2019 Budget includes a 5% Capital Credit payout consistent with the Cooperative’s Equity Management philosophy. The Board will discuss this matter later in 2019 as they have done in the past.

The 2019 Capital Budget is approximately $1.4 million with nearly 60% dedicated to finishing the TWACS/NISC Project.

Planning and land acquisition for the East Columbus Substation will begin in 2019 with construction and energization to take place in 2021.

DRAFT For Disc

ussio

n Purp

oses

Only


Looking forward in the 5-year Capital Work Plan, capital work dedicated to electric system improvements will typically run between $700,000 and $850,000. However, capital expenditures in 2019 are estimated at $1,495,675 to complete the TWACS project. Similarly, capital expenditures in 2021 are estimated at $1,171,509 which includes completion of the East Columbus Substation.

The Vegetation Management Plan (tree trimming) will be in the second year of a five year cycle in 2019. Funding will replicate 2018 with $220,000. The Vegetation Management Plan is a key element of the Cooperative’s preventative maintenance efforts. It directly benefits Members with fewer outages but also reduces the risk and liability associated with range/forest fires ignited from electrical facilities. The first year of the Plan showed promising results. Overtime hours normally associated with after hour customer outages in 2018 were 45% below overtime hours in 2017. Weather, NWE transmission outages, trees, animals, equipment failure etc. directly impact customer outages. Customer Outage Minutes were also 29% below 2017.

Power costs remain stable for 2019 with no planned increases. BEC’s transmission provider (NWE) will be seeking an increase in transmission rates to be reviewed by the Federal Energy Regulatory Commission (FERC) sometime in 2019. This unknown increase has not been incorporated into the 2019 Budget. It would be pure speculation on how much of an increase to expect and when it might occur in 2019.

There are no planned increases in staffing for 2019. There will be one retirement in January 2019. That employee was replaced in October 2018.

DRAFT For Disc

ussio

n Purp

oses

Only


2019 Capital Budget

A. Electric Distribution Extensions- $1,710 Meters will need to be purchased for new construction in the state of Wyoming. Montana meters are paid by the member as a contribution in aid of construction. 2 three phase meters @ $500 each. 3 single phase meters at $120 each. 2- 320 amp meters @ $175 each= $1,710

2019 2020 2021 2022 2023

$1,710 $1,710 $1,710 $1,710 $1,710

B. Miscellaneous Electric Distribution- $200,000 Replacement Transformers- To be used for replacement of faulty or damaged

transformers. Any given variety, $20,000

2019 2020 2021 2022 2023

$20,000 $20,600 $21,218 $21,855 $22,510

OH Miscellaneous Conductor Replacement- Hard drawn copper and steelconductor replacements as deemed necessary.

2019 2020 2021 2022 2023

$20,000 $80,000 $84,000 $84,000 $88,200

UG Ordinary Replacements – Replace underground cable as needed. Undergroundcable is replaced after three faults. $45,000

2019 2020 2021 2022 2023

$45,000 $46,350 $47,741 $49,173 $50,648

Sectionalizing Equipment- Equipment to replace outdated line oil circuit breakers.The new breakers will be “one shot” capable, whereas the old ones are not. This is asafety measure for working on the power lines and during dry conditions to preventrange fires. This program is as much about lineworker safety as it is about riskmanagement and liability. The 5 Year Capital Plan is built around 10 breakerreplacements in 2019 and then 18 per year for the next 5 years. $15,000

2019 2020 2021 2022 2023

$15,000 $27,000 $27,000 $27,000 $27,000

DRAFT For Disc

ussio

n Purp

oses

Only


Distribution Line Conversions- MDOT road widening from Red Lodge toBeartooth Hospital in 2022.

2019 2020 2021 2022 2023

$0 $0 $0 $77,000 $0

Electronic OCR’s (NOVA’s) - This is the second year of a multi-year replacementprogram. Oil-filled substation circuit breakers will be replaced with new electroniccircuit breakers that will be compatible with the TWACS system and provideindividual circuit information. Compatibility with the TWACS system is importantto us because of the new information we will be able to gather from each circuit inour system as we seek to pinpoint high-loss circuits, analyze power quality andimprove service to members. The new electronic breakers require minimalmaintenance and negate the exposure of an oil spill. The 5 Year Capital Plan includes5 NOVA’s in 2019which will complete all substations. $100,000

2019 2020 2021 2022 2023

$100,000

New Voltage Regulators- HDR identified in their system model runs that BEC mayneed up to 18 new regulators installed to alleviate low voltage problems in specificareas. BEC operations staff will validate system model results during extreme coldperiods this winter. Capital budgets will be adjusted accordingly following fieldverifications.

2019 2020 2021 2022 2023

$40,000 $42,000 $52,500 $52,500

C. TWACS Boxes- Nine boxes required to communicate between OCR’s (NOVA’s) and TWACS transformer in substations. $22,000

2019 2020 2021 2022 2023

$22,000

D. Pole Replacements – 100 poles will be changed out due to age and condition. Reduced availability of man-hours because of the TWACS deployment necessitates the reduction in pole replacements in 2018 and 2019. 2020 and thereafter 200 poles per year. $150,000

2019 2020 2021 2022 2023

$150,000 $300,000 $315,000 $315,000 $330,750 DRAFT For Disc

ussio

n Purp

oses

Only


E. Construction Work Plan- East Columbus Substation $70,000 Land purchase in 2019. Engineering/ Grading/ Fencing/ foundation in 2020. Substation construction and distribution getaways in 2021.

2019 2020 2021 2022 2023

$70,000 $130,000 $485,000 $0 $0

F. General Plant Total: $21,050

Facility Upgrade 2019 Shares du Soleil Fencing $7,500 2019 Mini-Split Heat-Pump for Board Room $9,550 2019 Front Desk Security $1,500 2019 Front Driveway Signage $2,500 2020 Office Furniture (3 work stations) $8,500 2020 Parking Lot Paving- Phase I $35,000 2021 Parking Lot Paving- Phase II $20,000 2020 Well/ Irrigation $8,500 2022 Main Office Remodel $100,000

2019 2020 2021 2022 2023

$21,050 $52,000 $0 $100,000 $0

G. TWACS- Meter Upgrade Total: $808,200 The TWACS system will replace our existing outdated AMR system. The new TWACS technology offers significant operating efficiencies, system information and improved customer service to members. Replacement meters are no longer available and need to be acquired from other utilities going through a similar upgrade to digital meters. Meter replacements were delayed in 2018 as previously planned. Meter replacements will continue in 2019 with project completion still planned for the end of the year. $805,000 Five more substations will be equipped with TWACS equipment completing this work in 2019.

TWACS transformer pads. Four each for 2019. $3200

2019 2020 2021 2022 2023

$808,200 $0 $0 $0 $0

H. Transportation General Plant- Total: $0 Nothing planned for 2019. The bucket on #7 will be transferred to a new chassis in 2020. The bucket on #9 will be transferred to a new chassis in 2022.

2019 2020 2021 2022 2023

$70,000 $70,000

DRAFT For Disc

ussio

n Purp

oses

Only


I. Equipment Total: $7,500

2019 Computer hardware (laptops and iPads). $2,500 2019 TWACS desktop meter test station. $5,000 2020 Portable primary cable fault detector (Thumper). $15,000

2019 2020 2021 2022 2023

$7,500 $15,000 $0 $0 $0

J. Vegetation Management (O&M) $220,000 2019 will be the second year of the 5 Year Plan- $220,000. In 2020 the Plan will drop to $200,000 going forward.

2019 2020 2021 2022 2023

$220,000 $200,000 $200,000 $200,000 $200,000

DRAFT For Disc

ussio

n Purp

oses

Only


2019 Communication & Member Services

2019 will be a most exciting year for member communication and services. There are a number of major initiatives taking place in 2019 that will require an increased level of communication with members. Communication channels will need to be optimized. Again the challenge will be to communicate “where our members are” in contrast to what is convenient or less costly for BEC.

The communication strategy is to lead monthly with the Rural Montana newsletter content, tie storylines and new content across all media including billing statement memos, billing statement inserts, website, Facebook, articles and press releases. We will continue to focus on growing member-owner engagement throughout 2019.

2019 Initiatives

1. A monthly theme across all media.2. Direct mail marketing initiatives (a top contender in the member annual meeting survey results).3. Town Hall meetings scheduled at strategic service area locations. Topics: Irrigators

and General Member-Owner Rate Design.4. Shares du Soleil-Ownership certificates, outdoor signage.5. New member package (welcome letter, BEC bylaws, construction follow-up survey to ensure we

are meeting expectations).6. Internal communications; i.e. employees and Board Members are our top

ambassadors will always receive a pre-release of all communication.7. Local tie-ins with coupons, special offers, find an icon to win, etc.8. Adherence to the 7 C’s of communication (clear, concise, concrete, correct, coherent, complete and

courteous).

Rural Montana Magazine 12 issues $24,500 Billing statement notice 12 statements $0 Billing statement inserts 12 statements $12,500 Website (Go Daddy) Annual Hosting $22 Website Template (Touchstone) Annual Hosting $0 Facebook Annual Hosting $0 Facebook Annual Ad Boosting $1,080 Articles/Press releases As required $0 Marketing initiatives Print $33,000 Town Hall meetings Strategic Service Area locations $2,000 Annual Member Meeting May 4-Anipro Event Center $20,000

(includes labor) All new members $1,000 Monthly subscriptions $1,800 Outdoor Signage $10,000 Ownership Certificates $250

New Member Welcome Package Adobe systems and graphic images Shares du Soleil Shares du Soleil Lobby DisplayPortable/Collapsible Tent with BEClogo for Community Events

Real-time Shares du Soleil reporting $11,000 $1,200

DRAFT For Disc

ussio

n Purp

oses

Only


Operating Budget With Comparison to Prior Year

DRAFT For Disc

ussio

n Purp

oses

Only


Operating Statement Compared to Prior Year

Line Description 2018 Budget 2018

Audited 2019 Budget 2020 Forecast 2021 Forecast 2022 Forecast 1 Operating Revenue and Patronage Capital 8,393,700$ 8,577,258$ 8,631,900$ 8,685,824$ 8,740,085$ 8,794,684$

2 Power Production Expense - - - - - - 3 Cost of Purchased Power 3,134,994 3,175,631 3,248,628 3,268,922 3,289,343 3,309,892 4 Transmission Expense 7,458 11,551 8,853 8,942 9,031 9,121 5 Regional Market Expense - - - - - - 6 Distribution Expense - Operation 915,491 966,566 1,035,393 1,054,237 1,073,424 1,092,960 7 Distribution Expense - Maintenance 629,649 614,084 696,264 688,936 701,475 714,242 8 Customer Accounts Expense 349,788 331,930 392,952 400,576 408,347 416,269 9 Customer Service and Informational Expense 149,042 115,535 142,978 145,809 148,696 151,640

10 Sales Expense 5,145 6,966 5,488 5,598 5,710 5,824 11 Administrative and General Expense 1,083,103 1,205,931 1,151,308 1,208,644 1,232,091 1,255,994 12 Total Operation & Maintenance Expense (2 thru 11) 6,274,670 6,428,194 6,681,865 6,781,663 6,868,117 6,955,942 13 Depreciation & Amortization Expense 1,014,390 1,016,306 1,092,359 1,102,560 1,112,856 1,123,248 14 Tax Expense - Property & Gross Receipts - - - - - - 15 Tax Expense - Other 2,811 2,011 2,811 2,839 2,868 2,896 16 Interest on Long-Term Debt 591,144 605,310 600,739 606,746 612,813 618,942 17 Interest Charged to Construction - Credit - - - - - - 18 Interest Expense - Other 1,200 1,192 1,200 1,200 1,200 1,200 19 Other Deductions 1,800 1,800 1,800 1,800 1,800 1,800 20 Total Cost of Electric Service (12 thru 19) 7,886,015 8,054,813 8,380,773 8,496,808 8,599,654 8,704,028 21 Patronage Capital & Operating Margins (1 minus 20) 507,685 522,445 251,127 189,016 140,431 90,656 22 Non Operating Margins - Interest 118,065 132,513 98,218 75,070 38,287 16,607 23 Allowance for Funds Used During Construction - - - - - - 24 Income (Loss) from Equity Investments - - - - - - 25 Non Operating Margins - Other 1,967 (3,219) (548) (554) (559) (565) 26 Generation and Transmission Capital Credits - - - - - - 27 Other Capital Credits and Patronage Dividends 46,200 50,232 50,600 51,106 51,617 52,133 28 Extraordinary Items - - - - - - 29 Patronage Capital or Margins (21 thru 28) 673,916$ 701,970$ 399,397$ 314,639$ 229,776$ 158,831$ 30 Operating - Margin 507,685$ 522,445$ 251,127$ 189,016$ 140,431$ 90,656$ 31 Non Operating - Margin 166,231$ 179,525$ 148,270$ 125,623$ 89,345$ 68,175$ 32 Times Interest Earned Ratio - Operating 1.86 1.86 1.42 1.31 1.23 1.15 33 Times Interest Earned Ratio - Net 2.14 2.16 1.66 1.52 1.37 1.26

Beartooth Electric Cooperative, Inc.2019 Budget

DRAFT For Disc

ussio

n Purp

oses

Only


Account Description 2018 Budget 2018

Audited 2019 Budget 440.1 REVENUE - RESIDENTIAL 6,771,800$ 6,933,663$ 7,021,900$

440.11 REVENUE-RES. NET METERED 46,000 59,137 46,000 440.2 REVENUE - SEASONAL - - -

441 REVENUE - IRRIGATION 406,200 351,945 361,200 442.1 REVENUE - SM.COMM - 50 KVA OR LESS 734,600 771,221 774,300

442.105 REVENUE - SM.COMM NET METERED 3,600 5,268 3,600 442.11 REVENUE - LG. COMM - >50 & < 1,000 KVA 237,500 236,920 231,500 442.15 REVENUE - LRG.COMM NET METERED 21,600 24,567 21,600

442.2 REVENUE - INDUSTRIAL 1,000 KVA OR MORE 134,500 146,174 133,900 447 REVENUE - SALES FOR RESALE - - - 450 FORFEITED DISCOUNTS 21,500 16,993 21,500 454 REVENUE - POLE RENTAL 12,000 12,031 12,000 456 REVENUE - OTHER 4,400 19,340 4,400

1 Operating Revenue and Patronage Capital 8,393,700 8,577,258 8,631,900

555 PURCHASED POWER 3,134,994 3,175,631 3,248,628 555.1 PURCHASED POWER-ACCRUED - - - 555.2 SOUTHERN A&G - - - 555.3 SOUTHERN EXIT AMORTIZATION - - -

3 Cost of Purchased Power 3,134,994 3,175,631 3,248,628

570.3 TRANS - PROPERTY TAXES 4,308 3,803 4,010 570.4 TRANS - INSURANCE ALLOCATION 835 827 838 571.1 TRANS - MAINT - LABOR 2,314 6,922 4,006

4 Transmission Expense 7,458 11,551 8,853

580.1 DISTR-OPERATIONS-SUPERVISION 116,285 126,302 105,752 580.11 DIST OPERATIONS SUPERVISION - WY 177 - -

582.1 STATION EXPENSE-LABOR 69,147 62,490 68,686 582.11 STATION EXPENSE-WY 432 - 320

583.1 DIST - OPERATIONS - LABOR 169,162 228,491 215,643 583.11 DIST - OPERATIONS -WY 7,964 2,924 4,147

583.9 DIST. OPERATIONS-POLE INSPECTIONS - - - 583.91 DIST. OPERATIONS-POLE INSPECTIONS-WY - - -

584.1 URD LINE EXPENSE-LABOR 11,886 8,494 12,387 584.11 URD LINE EXPENSE - WY 4,235 199 146

584.5 OPERATIONS-UG LINE LOCATES 48,782 39,935 48,782 584.51 OPERATIONS-UG LINE LOCATES-WY 5,556 6,236 5,556

586.1 METER EXPENSE - LABOR 62,517 29,877 96,555 586.11 METER EXPENSE - WY 4,696 8,597 5,487

587.1 CUSTOMER PREMISES - MT 5,097 1,996 1,346 587.11 CONSUMER PREMISES - WY 158 1,681 1,031

588.1 DIST - OPERATIONS - PROPERTY TAXES 263,679 243,367 245,402 588.2 DIST - OPERATIONS - INSURANCE ALLOCATION 53,399 52,800 53,542 588.3 DIST - OPERATIONS - MAPPING 38,321 53,212 52,135 588.4 DIST. OPERATIONS-POLE GPS 52,617 91,427 110,695

588.41 DIST. OPERATIONS-POLE GPS-WY - 6,978 6,401 589 DIST - OPERATIONS - RENT 1,380 1,560 1,380

6 Distribution Expense - Operation 915,491 966,566 1,035,393

590.1 DISTR-MAINTENANCE-SUPERVISION - - 977 590.11 DIST-MAINT- SUPERVISION-WY - - -

592.1 DIST - MAINT - SUBSTATIONS - LABOR 10,130 9,862 11,789 592.2 DIST. MAINT - PORTABLE SUBSTATION 72 - - 593.1 DIST - O/H MAINT- LABOR 226,535 240,360 272,439

593.11 DIST - O/H MAINT- WY 31,549 22,067 26,089 593.2 DIST - O/H MAINT - TREE TRIMMING 254,253 246,882 269,059

593.21 DIST - O/H MAINT - WY TREE TRIMMING 232 5,178 4,487 594.1 DIST - MAINT - U/G - LABOR 65,864 58,688 73,934

594.11 DIST - URD MAINT - WY 2,719 6,904 4,195 595.1 DIST - MAINT - TRANSFORMERS - LABOR 37,959 23,867 32,768

595.11 DIST - TRANSFORMERS - WY 337 275 528 597.1 DIST - MAINT - METERS - LABOR - - -

597.11 DIST-METER MAINT-WY - - - 598.1 MAINTENANCE-CONSUMER PREMISE - - -

598.11 MAINTENANCE-CONSUMER PREMISE/WY - - -

7 Distribution Expense - Maintenance 629,649 614,084 696,264

DRAFT For Disc

ussio

n Purp

oses

Only



Audited 2019 Budget

901 CUSTOMER ACCTS OPERATIONS-SUPERVISION - - - 902.1 METER READING EXP - LABOR 32,988 44,791 8,608

902.11 METER READING EXPENSE - WY 3,505 5,678 617 903.1 CONSUMERS RECORD & COLLECTION EXP 261,895 252,209 329,294

903.11 CONSUMER RECORD & COLLECTION EXP-WY 38,200 29,252 41,234 903.2 CONSMR RCRD EXP-NET METER MT - - -

903.21 CONSMR RCRD EXP-NET METER WY - - - 904 UNCOLLECTIBLE ACCOUNTS 13,200 - 13,200

8 Customer Accounts Expense 349,788 331,930 392,952

907 CUSTOMER SERVICE & INFO.-SUPERVISION - - - 908.1 CONSUMER ASSISTANCE - LABOR 3,747 8,833 5,098

908.11 CUSTOMER ASSISTANCE - WY 247 150 73 908.2 CUSTOMER ASSIST-RENEWABLES - - -

908.21 CUSTOMER ASSIST-RENEWABLES-WY - - - 909.1 INFORMATIONAL ADVERTISING 145,049 106,552 137,807 909.2 MERGER INFORMATIONAL ADVERTISING - - -

9 Customer Service and Informational Expense 149,042 115,535 142,978

912 ECONOMIC DEVELOPMENT - KEY ACCOUNTS - - - 912.1 DEMO & SELLING EXPENSE - LABOR 5,145 6,966 5,488

912.11 DEMO & SELLING EXPENSE-LABOR-WY - - -

10 Sales Expense 5,145 6,966 5,488

920.1 ADMIN & GENERAL LABOR 102,830 109,815 117,971 920.11 ADMIN & GENERAL LABOR - WY - - - 920.12 ADMIN & GENERAL ADMIN LEAVE OF ABSENCE - - -

920.2 ADMIN & GENERAL - GENERAL MANAGER 181,571 210,160 207,455 920.3 PAYROLL SALARIED EMPLOYEE HOURLY ADJUSTM - - -

920.31 MANAGER SUPERVISION - - - 920.4 ADMIN & GENERAL - BOARD MEETINGS & PREP 29,079 49,020 44,022 920.5 ADMIN & GENERAL - FORECASTING&REPORTING - - - 920.6 ADMIN & GENERAL - BUDGETING 1,014 3,901 1,959 920.7 ADMIN & GEN - ADMIN MEETINGS GM OUT 6,000 4,701 6,000 920.8 INSIDE EMPLOYEE BONUSES 7,000 7,500 9,500 920.9 EMPLOYEE GOAL BONUSES 34,000 12,882 -

921 OFFICE SUPPLIES & EXPENSE 47,591 54,044 50,591 921.11 OFFICE SUPPLIES & EXPENSE-WYOMING - 19 - 921.31 RATE & COST OF SERVICE STUDY 13,500 7,376 31,500 921.32 RATE & COST OF SERVICE STUDY-WY 1,500 820 3,500

921.4 DEPT HEADS - STAFF MEETINGS 24 - 80 921.5 EMPLOYEE MEETINGS 22,850 8,286 11,463 923.1 OUTSIDE SERVICES - ATTORNEY 38,800 62,459 46,800

923.11 OUTSIDE SERVICES-WY ATTORNEY 1,200 - 1,200 923.2 OUTSIDE SERVICES - ENGINEERING 7,500 20,120 7,500

923.21 OUTSIDE SERVICES - PLANT APPRAISAL - - - 923.3 OUTSIDE SERVICES - AUDITOR 6,500 7,140 11,000 923.4 OUTSIDE SERVICES - OTHER 15,000 25,296 15,000

924 PROPERTY INSURANCE 15,386 15,555 15,427 925 INJURIES & DAMAGES INSURANCE 9,180 7,344 9,180 926 EMPLOYEES PENSIONS & BENEFITS 10,620 18,645 16,620

926.2 EMPLOYEE BENEFITS-EDUCATION 44,991 73,134 61,918 926.7 SERVICE ORGANIZATIONS - - - 926.8 COMMUNITY SUPPORT - - - 930.1 MISC GENERAL EXPENSE - LABOR - - - 930.2 MISC GENERAL EXPENSE - DUES & ADVERT 72,143 73,167 72,981 930.3 MISC GENERAL EXPENSE - DIRECTORS 100,000 80,140 80,000 930.4 MISC GENERAL EXPENSE - OTHER 5,250 11,581 5,250

930.41 MISC. GENERAL EXP-DONATIONS 11,000 1,510 3,000 930.42 MISC. GENERAL EXP - DONATED LABOR 6,255 5,576 2,910 930.43 MISC GENERAL EXPENSE - LVE MGMT - - -

930.5 ADMIN - PROPERTY TAXES 19,245 17,506 17,911 930.6 MONTHLY NEWSLETTER 10,290 9,198 9,031 930.7 ANNUAL MEETING 27,410 28,214 20,291 930.8 A & G - SOUTHERN EXIT AMORTIZATION 141,051 141,051 141,051 935.1 MAINT OF GENERAL PLANT 94,323 139,771 130,198

11 Administrative and General Expense 1,083,103 1,205,931 1,151,308

DRAFT For Disc

ussio

n Purp

oses

Only



Audited 2019 Budget

403.5 DEPRECIATION - TRANSMISSION - - - 403.6 DEPRECIATION - DISTRIBUTION 864,960 865,848 909,710

403.61 DEPRECIATION-DISTRIBUTION-WY 84,660 83,616 83,696 403.7 DEPRECIATION - GENERAL 64,770 66,842 98,953

13 Depreciation & Amortization Expense 1,014,390 1,016,306 1,092,359

408.1 PROPERTY TAX EXPENSE - - -

14 Tax Expense - Property & Gross Receipts - - -

408.2 TAX - FEDERAL UNEMPLOYMENT - - - 408.3 TAX - FICA - - - 408.4 TAX - STATE UNEMPLOYMENT - - - 408.7 TAX - OTHER 2,811 2,011 2,811

15 Tax Expense - Other 2,811 2,011 2,811

427.1 INTEREST EXPENSE - REA 23,756 23,756 22,780 427.2 INTEREST EXPENSE - CFC 215,690 212,119 193,624 427.4 INTEREST EXPENSE - FFB 276,061 274,551 268,030 427.5 INTEREST EXPENSE - CoBank 75,636 94,884 116,304

16 Interest on Long-Term Debt 591,144 605,310 600,739

427.3 INTEREST EXPENSE - PAST SERVICE - - - 431 INTEREST EXPENSE - OTHER 1,200 1,192 1,200

18 Interest Expense - Other 1,200 1,192 1,200

428 AMORTIZATION OF DEBT DISCOUNT 1,800 1,800 1,800

19 Other Deductions 1,800 1,800 1,800

419 INTEREST & DIVIDEND INCOME 118,065 132,513 98,218

22 Non Operating Margins - Interest 118,065 132,513 98,218

415 REVENUE FROM MERCHANDISING 13,000 48,999 13,000 415.11 REVENUE FROM MERCHANDISING-WY - 3,439 -

416 COSTS FROM MERCHANDISING (10,523) (54,167) (12,013) 416.11 COST FROM MERCHANDISING - WY (511) (1,664) (1,536)

421.1 GAIN ON DISPOSITION OF PROPERTY - 175 - 421.2 LOSS ON DISPOSITION OF PROPERTY - - -

25 Non Operating Margins - Other 1,967 (3,219) (548)

423 G & T COOP CAPITAL CREDITS - - -

26 Generation and Transmission Capital Credits - - -

424 OTHER CAPITAL PATRONAGE 46,200 50,232 50,600

27 Other Capital Credits and Patronage Dividends 46,200$ 50,232$ 50,600$

DRAFT For Disc

ussio

n Purp

oses

Only


Cash Budget

DRAFT For Disc

ussio

n Purp

oses

Only


Cas

h B

udge

t by

Qua

rter

Des

crip

tion

Q1

Q2

Q3

Q4

Tot

al

Cas

h fr

om O

pera

tions

Mar

gins

406,

834

(91,

088)

(22,

917)

106,

568

399,

397

Dep

reci

atio

n26

6,69

7

27

3,43

0

27

5,82

7

27

6,40

5

1,

092,

359

N

on-c

ash

patro

nage

allo

catio

ns(1

9,00

0)

-

(2

4,60

0)

(7

,000

)

(50,

600)

Sout

hern

exi

t am

ortiz

atio

n35

,263

35

,263

35

,263

35

,263

14

1,05

1

Tota

l cha

nge

in c

ash

from

ope

ratio

ns68

9,79

3

21

7,60

5

26

3,57

3

41

1,23

5

1,

582,

206

Cas

h fr

on In

vest

ing

Act

iviti

esC

apita

l out

lay

(231

,507

)

(1

40,1

78)

(502

,278

)

(5

18,2

78)

(1,3

92,2

39)

Lo

ss fr

om re

tirem

ent o

f ass

ets

(52,

071)

(35,

967)

(34,

403)

(32,

002)

(154

,443

)

To

tal c

hang

e in

cas

h fro

m in

vesti

ng a

ctiv

ities

(283

,577

)

(1

76,1

44)

(536

,681

)

(5

50,2

80)

(1,5

46,6

82)

Cas

h fr

om F

inan

cing

Act

iviti

esD

ebt p

rinci

pal r

epay

men

t(3

08,3

46)

(310

,425

)

(3

11,2

46)

(311

,582

)

(1

,241

,599

)

Deb

t pay

men

t fro

m C

OC

Acc

ount

(inc

lude

d in

abo

ve)

56,0

20

55,8

90

55,7

70

56,3

63

224,

044

CO

C In

tere

st In

com

e in

to C

OC

Acc

ount

(24,

035)

(22,

670)

(21,

304)

(14,

171)

(82,

180)

CO

C In

tere

st Ex

pens

e fr

om C

OC

Acc

ount

72,6

88

70,9

22

72,9

53

72,3

44

288,

907

Gen

eral

Ret

irem

ent (

5% o

f Equ

ity)

-

-

-

(412

,273

)

(4

12,2

73)

Cap

ital c

redi

t ret

irem

ent (

esta

tes)

(7,5

00)

(7

,500

)

(7,5

00)

(7

,500

)

(30,

000)

New

LD

T - N

ew C

olum

bus S

ubsta

tion

Land

-

-

-

-

-

Tota

l cha

nge

in c

ash

from

fina

ncin

g ac

tiviti

es(2

11,1

72)

(213

,783

)

(2

11,3

28)

(616

,819

)

(1

,253

,102

)

Tota

l cha

nge

in c

ash

195,

044

(172

,322

)

(4

84,4

36)

(755

,863

)

(1

,217

,577

)

Beg

inni

ng c

ash

1,71

9,87

1

1,91

4,91

4

1,74

2,59

2

1,25

8,15

6

1,71

9,87

1

Endi

ng c

ash

1,91

4,91

4

1,74

2,59

2

1,25

8,15

6

502,

293

502,

293

Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

2019

Bud

get

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 56

Projected Balance Sheet

DRAFT For Disc

ussio

n Purp

oses

Only


Projected Summary Balance Sheet

Assets and Other Debits 2019 2018 Liabilities and Other Credits 2019 2018Utility Plant Patronage Capital and Other Equities

Utility Plant 34,652,105 33,066,182 Patronage Capital 7,974,035 7,762,289 Accum. Depreciation (17,083,111) (16,213,691) Deferred Credit from NW Energy Settlement - -

Net Utility Plant 17,568,993 16,852,491 Current Year margins 661,576 704,619 Other Property & Investments Other Margins and Equities 459,641 459,641

Investments in Assoc. Org. - Patronage Capital 431,728 431,728 Total Patronage Capital and Other Equities 9,095,252 8,926,549 Investments in Assoc. Org. - Non-General Funds 287,267 287,267 Long-Term Debt

Total Other Property & Investments 718,995 718,995 Long-Term Debt 12,090,177 13,331,776 Current Assets Advance Payments Unapplied/COC (1,528,475) (1,959,245)

Cash 502,293 1,719,871 Total Long-Term Debt 10,561,702 11,372,531 Temporary Investments - - Curent LiabilitiesAccounts Receivable 933,359 933,359 Notes Payable - - Material & Supplies 423,987 423,987 Accounts Payable 436,623 436,623 Prepayments 120,021 120,021 Consumer Deposits 96,905 96,905 Other Current Assets 12,215 12,215 Other Current & Accrued Liabilities 552,497 552,497

Total Current Assets 1,991,876 3,209,453 Total Current Liabilities 1,086,025 1,086,025 Other Debits Other Credits

Regulatory Assets 423,153 564,204 Other Deferred Credits 81,329 81,329 Other Deferred Debits 121,291 121,291 Deferred Credit from NW Energy Settlement - -

Total Other Debits 544,444 685,495

Total Assets & Other Debits 20,824,308 21,466,434 Total Liabilities and Other Credits 20,824,308 21,466,434

Equity as a % of Assets 44% 42%

Beartooth Electric Cooperative, Inc.2019 Budget

DRAFT For Disc

ussio

n Purp

oses

Only


Revenue

DRAFT For Disc

ussio

n Purp

oses

Only


2019 Budget

2015 Normalized 2016 Normalized 2017 Actual2018 Pro Forma Low Projection

Median Projection High Projection

ResidentialNumber of customers 5,476 5,546 5,556 5,574 5,591 5,648 5,704 Average kWh per customer 751 750 792 804 790 798 805 Annual kWh sold 49,337,838 49,885,215 52,798,797 53,785,705 52,972,700 54,048,200 55,134,600

IrrigationNumber of customers 110 110 113 117 117 118 119 Average kWh per customer 4,277 5,276 5,425 3,656 3,790 3,829 3,867 Annual kWh sold 2,831,416 3,487,554 3,667,430 2,558,958 2,656,700 2,710,600 2,765,100

Small CommercialNumber of customers 353 355 413 457 456 461 466 Average kWh per customer 1,295 1,277 1,252 1,285 1,271 1,284 1,297 Annual kWh sold 5,479,904 5,444,169 6,199,881 7,051,093 6,963,100 7,104,500 7,247,300

Large CommercialNumber of customers 18 20 20 20 20 20 20 Average kWh per customer 11,022 10,343 10,849 10,488 10,402 10,507 10,612 Annual kWh sold 2,336,706 2,420,222 2,603,738 2,517,096 2,471,500 2,521,700 2,572,400

IndustrialNumber of customers 1 1 1 1 1 1 1 Average kWh per customer 112,475 113,925 120,775 136,700 122,562 123,800 125,038 Annual kWh sold 1,349,700 1,367,100 1,449,300 1,640,400 1,470,700 1,485,600 1,500,500

Total Average Customers 5,957 6,031 6,102 6,168 6,184 6,247 6,309

Annual Power RequirementsTotal kWh sold 61,335,564 62,604,260 66,719,146 67,553,252 66,534,700 67,870,600 69,219,900BEC system use 294,169 309,134 320,561 297,234 292,753 298,631 304,568 NW Transmission loss charge 2,723,299 2,779,629 2,962,330 2,904,790 2,860,992 2,918,436 2,976,456 System losses 6,001,258 6,813,741 7,003,651 6,079,793 5,988,123 6,108,354 6,229,791Total kWh requirements 70,354,290 72,506,764 77,005,688 76,835,069 75,676,568 77,196,020 78,730,714

Percent change -3.92% 3.06% 9.45% 5.97% -1.51% 0.47% 2.47%

kW demand 17,500 17,500 17,572 16,996 17,900 18,200 18,600Load factor 45.9% 47.3% 50.0% 51.6% 48.3% 48.3% 48.3%


Projections of Electric Sales by Customer Class

2019 Projection

DRAFT For Disc

ussio

n Purp

oses

Only


Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

2019

Bud

get

Ele

ctri

c R

even

ue b

y M

onth

Mon

th R

esid

entia

l Ir

riga

tion

Sm

all

Com

mer

cial

L

arge

C

omm

erci

al

Indu

stri

al

Tot

al B

illed

R

even

ue

Oth

er

Ele

ctri

c R

even

ue

Tot

al R

even

ue

Janu

ary

721,

000

-

73,9

00

22,1

00

8,20

0

825,

200

2,

200

827,

400

Fe

brua

ry73

6,10

0

- 75

,600

24

,300

7,

800

84

3,80

0

2,20

0

84

6,00

0

Mar

ch62

9,50

0

- 67

,400

21

,400

5,

100

72

3,40

0

14,2

00

737,

600

A

pril

571,

600

21

,000

64,2

00

27,6

00

6,40

0

690,

800

2,

400

693,

200

M

ay48

6,90

0

28,8

00

56

,500

16

,800

13

,100

60

2,10

0

2,30

0

60

4,40

0

June

468,

400

52

,900

56,2

00

18,6

00

13,5

00

609,

600

2,

300

611,

900

Ju

ly54

7,30

0

108,

200

61

,500

18

,400

16

,400

75

1,80

0

2,30

0

75

4,10

0

Aug

ust

518,

600

93

,400

60,4

00

19,9

00

16,5

00

708,

800

2,

300

711,

100

Se

ptem

ber

487,

100

56

,900

57,1

00

18,9

00

17,0

00

637,

000

1,

900

638,

900

O

ctob

er54

0,30

0

- 62

,200

20

,500

11

,900

63

4,90

0

1,90

0

63

6,80

0

Nov

embe

r62

5,70

0

- 70

,700

20

,800

10

,400

72

7,60

0

1,90

0

72

9,50

0

Dec

embe

r73

5,40

0

- 72

,200

23

,800

7,

600

83

9,00

0

2,00

0

84

1,00

0

Tota

l7,

068,

100

$

36

1,20

0$

778,

100

$

25

3,10

0$

134,

100

$

8,

594,

000

$

37

,900

$

8,

631,

900

$

GL

Acc

t 4

40.1

00/4

40.2

00

441

.000

44

2.10

0 44

2.11

0 44

2.20

0

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 61

2019

Bud

get

Mon

th R

esid

entia

l Ir

riga

tion

Sm

all

Com

mer

cial

L

arge

C

omm

erci

al

Indu

stri

al

Tot

al B

illed

Pe

rcen

tJa

nuar

y5,

987,

600

-

702,

200

25

4,30

0

91,0

00

7,03

5,10

0

10

.37%

Febr

uary

6,15

6,60

0

- 72

2,00

0

257,

400

86

,100

7,

222,

100

10.6

4%M

arch

4,96

1,50

0

- 62

0,30

0

227,

200

56

,800

5,

865,

800

8.64

%A

pril

4,31

0,50

0

58,7

00

585,

000

33

5,10

0

70,9

00

5,36

0,20

0

7.

90%

May

3,35

9,90

0

105,

200

49

3,00

0

97,4

00

145,

100

4,

200,

600

6.19

%Ju

ne3,

144,

200

29

0,60

0

490,

000

15

8,60

0

149,

700

4,

233,

100

6.24

%Ju

ly4,

037,

200

1,

090,

300

55

2,20

0

176,

100

18

2,00

0

6,03

7,80

0

8.

90%

Aug

ust

3,73

4,70

0

794,

800

53

7,50

0

178,

300

18

2,30

0

5,42

7,60

0

8.

00%

Sept

embe

r3,

352,

000

37

1,00

0

499,

000

17

4,40

0

188,

600

4,

585,

000

6.76

%O

ctob

er3,

941,

600

-

558,

300

20

0,50

0

132,

000

4,

832,

400

7.12

%N

ovem

ber

4,89

8,70

0

- 66

0,30

0

209,

500

11

5,50

0

5,88

4,00

0

8.

67%

Dec

embe

r6,

163,

700

-

684,

700

25

2,90

0

85,6

00

7,18

6,90

0

10

.59%

Tota

l54

,048

,200

2,71

0,60

0

7,10

4,50

0

2,

521,

700

1,48

5,60

0

67,8

70,6

00

100.

00%

Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

Ele

ctri

c kW

h Sa

les b

y M

onth

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 62

Beartooth Electric Cooperative, Inc.2019 BudgetProjections of Customer by Customer Class

New Customer AllocationResidential 75

Irrigation - Small commercial - Large commercial -

Industrial - Total 75

2013 2014 2015 2016 20172018

ProForma2017-18 Change

2019 Changes Projected

ResidentialJanuary 5,331 5,391 5,440 5,516 5,572 5,543 2 - February 5,335 5,394 5,446 5,512 5,570 5,542 (28) 1 March 5,340 5,400 5,447 5,521 5,574 5,538 (36) 2 April 5,349 5,410 5,454 5,519 5,591 5,557 (34) 10 May 5,354 5,412 5,474 5,534 5,585 5,561 (24) 10 June 5,369 5,411 5,472 5,539 5,522 5,572 50 12 July 5,393 5,415 5,476 5,556 5,524 5,578 54 12 August 5,396 5,431 5,491 5,568 5,529 5,586 57 12 September 5,391 5,441 5,499 5,567 5,567 5,588 21 10 October 5,395 5,441 5,504 5,566 5,551 5,608 57 6 November 5,391 5,441 5,499 5,576 5,543 5,608 65 - December 5,391 5,441 5,511 5,578 5,541 5,608 67 -

Average/total 5,370 5,419 5,476 5,546 5,556 5,574 251 75

IrrigationJanuary - - - - - - - - February - - - - - - - - March - - - - - - - - April 102 105 107 111 111 114 3 - May 103 105 110 107 111 115 4 - June 102 105 112 109 115 117 2 - July 103 107 111 110 113 118 5 - August 103 107 111 112 113 118 5 - September 103 107 111 112 113 118 5 - October - - - - - - - - November - - - - - - - - December - - - - - - - -

Average/total 103 106 110 110 113 117 24 -

Small CommercialJanuary 339 343 350 354 359 453 94 - February 340 343 351 355 360 454 94 - March 339 346 352 355 362 454 92 - April 339 347 352 356 361 454 93 - May 340 344 352 359 361 454 93 - June 338 345 352 354 448 454 6 - July 339 347 352 354 448 458 10 - August 339 349 353 354 448 459 11 - September 339 347 353 354 448 459 11 - October 339 347 354 354 453 465 12 - November 340 347 355 355 450 461 11 - December 340 347 354 359 453 461 8 -

Average/total 339 346 353 355 413 457 535 -

DRAFT For Disc

ussio

n Purp

oses

Only


Beartooth Electric Cooperative, Inc.2019 BudgetProjections of Customer by Customer Class

New Customer AllocationResidential 75

Irrigation - Small commercial - Large commercial -

Industrial - Total 75

2013 2014 2015 2016 20172018

ProForma2017-18 Change

2019 Changes Projected

Large CommericalJanuary 18 18 17 19 20 20 - - February 18 18 17 19 20 20 - - March 18 18 17 19 20 20 - - April 18 18 17 19 20 20 - - May 18 18 17 19 20 20 - - June 18 18 18 19 20 20 - - July 18 18 18 20 20 20 - - August 18 17 18 20 20 20 - - September 18 17 18 20 20 20 - - October 18 17 18 20 20 20 - - November 18 17 18 20 20 20 - - December 18 17 19 20 20 20 - -

Average/total 18 18 18 20 20 20 - -

IndustrialJanuary 1 1 1 1 1 1 - - February 1 1 1 1 1 1 - - March 1 1 1 1 1 1 - - April 1 1 1 1 1 1 - - May 1 1 1 1 1 1 - - June 1 1 1 1 1 1 - - July 1 1 1 1 1 1 - - August 1 1 1 1 1 1 - - September 1 1 1 1 1 1 - - October 1 1 1 1 1 1 - - November 1 1 1 1 1 1 - - December 1 1 1 1 1 1 - -

Average/total 1 1 1 1 1 1 - -

Total 5,831 5,890 5,958 6,032 6,102 6,169 786 75

DRAFT For Disc

ussio

n Purp

oses

Only


Beartooth Electric Cooperative, Inc.2019 BudgetProjections of Electric Revenue by Customer Class

2018 Pro Forma Low Projection Median Projection High ProjectionResidential

kWh sold 53,785,705 52,972,700 54,048,200 55,134,600Average revenue per kWh 0.13021 0.13077 0.13077 0.13077Total revenue $7,003,346 $6,927,500 $7,068,100 $7,210,200

IrrigationkWh sold 2,558,958 2,656,700 2,710,600 2,765,100Average revenue per kWh 0.13753 0.13325 0.13325 0.13325Total revenue $351,945 $354,000 $361,200 $368,500

Small CommercialkWh sold 7,051,093 6,963,100 7,104,500 7,247,300Average revenue per kWh 0.10938 0.10952 0.10952 0.10952Total revenue $771,220 $762,600 $778,100 $793,700

Large CommercialkWh sold 2,517,096 2,471,500 2,521,700 2,572,400Average revenue per kWh 0.10441 0.10037 0.10037 0.10037Total revenue $262,808 $248,100 $253,100 $258,200

IndustrialkWh sold 1,640,400 1,470,700 1,485,600 1,500,500Average revenue per kWh 0.08813 0.09027 0.09027 0.09027Total revenue $144,560 $132,800 $134,100 $135,400

Total Electric RevenueTotal revenue from sales $8,533,879 $8,425,000 $8,594,600 $8,766,000Other operating revenue 35,000 37,900 37,900 37,900Total operating revenue $8,568,879 $8,462,900 $8,632,500 $8,803,900

Revenue growth -1.24% 0.74% 2.74%

2019 Projection

DRAFT For Disc

ussio

n Purp

oses

Only


Beartooth Electric Cooperative, Inc.2019 BudgetOther Electric Revenues by Month

MonthForfeited

Discounts 450Pole

Rental 454 Other 456 TotalJanuary 2,000 - 200 2,200 February 2,000 - 200 2,200 March 2,000 12,000 200 14,200 April 1,800 - 600 2,400 May 1,700 - 600 2,300 June 1,700 - 600 2,300 July 1,700 - 600 2,300 August 1,700 - 600 2,300 September 1,700 - 200 1,900 October 1,700 - 200 1,900 November 1,700 - 200 1,900 December 1,800 - 200 2,000 Total 21,500 12,000 4,400 37,900

DRAFT For Disc

ussio

n Purp

oses

Only


Cost of Power

DRAFT For Disc

ussio

n Purp

oses

Only


2019

Bud

get

Tota

lJa

nFe

bM

arA

pr

May

Jun

Jul

Au

gSe

pO

ctN

ov

Dec

Sum

mar

y

Ener

gy L

oad

(M

Wh

)77

,196

7,

400

7,

566

6,

596

6,

199

5,

405

5,

472

6,

744

6,

359

5,

714

5,

695

6,

524

7,

521

Po

wer

Co

sts

WA

PA

131,

623

$

12

,338

$

12,9

51$

10

,420

$

11,1

80$

9,

041

$

10

,309

$

11,2

88$

11

,681

$

9,88

5$

8,97

3$

10,9

77$

12

,579

$

Mo

rgan

Sta

nle

y2,

447,

985

$

234,

631

$

239,

232

$

210,

515

$

195,

100

$

172,

216

$

172,

835

$

214,

302

$

200,

035

$

181,

174

$

181,

627

$

207,

212

$

239,

105

$

Tota

l Po

wer

Co

sts

2,57

9,60

9$

24

6,96

9$

25

2,18

3$

22

0,93

5$

20

6,28

1$

18

1,25

7$

18

3,14

4$

22

5,59

1$

21

1,71

6$

19

1,05

9$

19

0,60

0$

21

8,18

9$

25

1,68

4$

A

vg. C

ost

($

/MW

h)

33.4

2$

33

.38

$

33

.33

$

33

.49

$

33

.27

$

33

.53

$

33

.47

$

33

.45

$

33

.29

$

33

.44

$

33

.47

$

33

.44

$

33

.46

$

Tran

smis

sio

n C

ost

s

NW

C T

ran

smis

sio

n47

0,81

5$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

NW

C S

ched

ule

125

,329

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

N

WC

Sch

edu

le 3

41,7

18$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

NW

C S

ched

ule

5&

638

,298

$

3,

511

$

3,

511

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

To

tal T

ran

smis

sio

n C

ost

s57

6,16

0$

48,3

33$

48

,333

$

47,9

49$

47

,949

$

47,9

49$

47

,949

$

47,9

49$

47

,949

$

47,9

49$

47

,949

$

47,9

49$

47

,949

$

Avg

. Co

st (

$/M

Wh

)7.

46$

6.53

$

6.39

$

7.27

$

7.73

$

8.87

$

8.76

$

7.11

$

7.54

$

8.39

$

8.42

$

7.35

$

6.38

$

Tota

l Su

pp

ly C

ost

s3,

155,

769

$

295,

302

$

300,

516

$

268,

885

$

254,

230

$

229,

207

$

231,

094

$

273,

540

$

259,

666

$

239,

009

$

238,

549

$

266,

139

$

299,

633

$

Avg

. Su

pp

ly C

ost

($

/MW

h)

40.8

8$

39

.91

$

39

.72

$

40

.76

$

41

.01

$

42

.40

$

42

.23

$

40

.56

$

40

.83

$

41

.83

$

41

.89

$

40

.79

$

39

.84

$

WA

PA

Po

we

r

Pea

k (k

w)

11,6

981

,06

71

,10

99

33

95

48

41

96

81

,01

21

,01

28

92

79

39

83

1,1

34

Ener

gy (

MW

h)

5,72

25

49

58

14

50

50

33

77

42

64

87

51

94

24

39

24

74

54

0

Pea

k R

ate

($/k

w-m

o)

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

5.25

$

Ener

gy R

ate

($/M

wh

) 13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

13

.27

$

Pea

k C

ost

($

)6

1,4

15

$

5

,60

2$

5

,82

2$

4

,89

8$

5

,00

9$

4

,41

5$

5

,08

2$

5

,31

3$

5

,31

3$

4

,68

3$

4

,16

3$

5

,16

1$

5

,95

4$

Ener

gy C

ost

($

)7

5,9

31

$

7

,28

5$

7

,71

0$

5

,97

2$

6

,67

5$

5

,00

3$

5

,65

3$

6

,46

2$

6

,88

7$

5

,62

6$

5

,20

2$

6

,29

0$

7

,16

6$

Tran

smis

sio

n d

isco

un

t-

$

(5

49

)$

(58

1)

$

(4

50

)$

(50

3)

$

(3

77

)$

(42

6)

$

(4

87

)$

(51

9)

$

(4

24

)$

(39

2)

$

(4

74

)$

(54

0)

$

Tota

l Co

st (

$)

13

1,6

23

$

12

,33

8$

1

2,9

51

$

10

,42

0$

1

1,1

80

$

9,0

41

$

10

,30

9$

1

1,2

88

$

11

,68

1$

9

,88

5$

8

,97

3$

1

0,9

77

$

12

,57

9$

Mo

rgan

Sta

nle

y P

ow

er

Tota

l En

ergy

(M

Wh

)7

1,4

74

6,85

1

6,98

5

6,14

6

5,69

6

5,02

8

5,04

6

6,25

7

5,84

0

5,29

0

5,30

3

6,05

0

6,98

1

Pri

ce (

$/M

Wh

)34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

34

.25

$

Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

Pow

er C

ost b

y M

onth DRAFT For

Discus

sion P

urpos

es O

nly

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 68

Tota

l Co

st (

$)

2,4

47

,98

5$

234,

631

$

239,

232

$

210,

515

$

195,

100

$

172,

216

$

172,

835

$

214,

302

$

200,

035

$

181,

174

$

181,

627

$

207,

212

$

239,

105

$

NW

C T

ran

smis

sio

n

No

v13

-Oct

14

CP

(kw

)14

2,25

1

15,3

59

17

,437

16,7

58

10

,418

7,79

7

7,19

2

11,0

36

10

,639

7,85

2

8,98

7

12,2

23

16

,553

No

v13

-Oct

14

En

ergy

(M

Wh

)73

,189

7

,37

47

,72

36

,90

35

,27

34

,88

24

,87

26

,48

35

,90

34

,70

44

,73

45

,97

28

,36

6

20

18

Est

. Co

inci

den

t P

eak

(kw

)14

8,99

2

15,4

12

17

,082

16,0

14

12

,248

8,63

3

8,07

8

11,4

80

11

,462

9,53

7

10,8

11

13

,353

14,8

81

Tran

smis

sio

n R

ate

($/k

w-m

o)

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

3.16

$

Sch

edu

le 1

Rat

e ($

/kw

-mo

)0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

0.

17$

Sc

hed

ule

3 R

ate

($/k

w-m

o)

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28

$

Tran

smis

sio

n C

ost

($

) /3

47

0,8

15

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

39,2

35$

39

,235

$

Sch

edu

le 1

Co

st (

$)

/32

5,3

29

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

2,

111

$

Sc

hed

ule

3 C

ost

($

) /3

41

,71

8$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

3,47

6$

Sch

edu

le 5

&6

Cap

acit

y (k

w)

/456

0

56

0

56

0

56

0

56

0

56

0

56

0

56

0

56

0

56

0

56

0

56

0

Sc

hed

ule

5&

6 R

ate

($/k

w-m

o)

/56.

27$

6.

27$

5.

59$

5.

59$

5.

59$

5.

59$

5.

59$

5.

59$

5.

59$

5.

59$

5.

59$

5.

59$

Sc

hed

ule

5&

6 C

ost

($

)3

8,2

98

$

3,

511

$

3,

511

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

3,

128

$

/3 -

Bill

ed o

n 1

2 C

P b

asis

/4 -

20

17

req

uir

emen

t fr

om

NW

C (

3%

of

esti

mat

ed a

nn

ual

tra

nsm

issi

on

pea

k)

/5 -

Avg

of

curr

ent

Sch

5 (

$6

.90

) an

d S

ch 6

($

5.6

4)

rate

s fo

r Ja

n &

Feb

20

19

/5 -

Avg

of

curr

ent

Sch

5 (

$6

.10

) an

d S

ch 6

($

5.0

7)

rate

s fo

r M

ar -

Dec

20

19

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 69

Payroll

Full-time employees are as follows:

Name Position Kevin Owens Eric Elton Jim Avent Travis Barker Guy Behrent Hunter Boos Bill Colgrove Linda Dukart Mike Ferguson Stephanie Fletcher James Pihl Brad Prophet Kaaren Robbins Connie Teachout Marty Tomlin Markus Urbanik Sam Walkowiak Jake Wright

General Manager Line Superintendent Meter Tech/Journeyman Lineman Journeyman Lineman Line Sub-Foreman Apprentice Line Foreman Member Service Representative (retiring January 2019) Journeyman Lineman Member Service Representative Line Sub-Foreman Accountant Member Services/Communications and Marketing Member Service Representative Staking Technician Warehousing and Purchasing Line Foreman Journeyman Lineman

Part-time employee is as follows:

Name Position Teresa Newcomer Plant Accountant

DRAFT For Disc

ussio

n Purp

oses

Only


BEA

RTO

OTH

ELE

CTR

IC C

OO

PER

ATI

VE,

INC

.R

evis

ion:

781

51

BU

DG

ETC

FC B

UD

GET

PR

O -

PAY

RO

LL/L

AB

OR

12/2

1/20

18 1

0:44

:40

amPa

ge:

1

Dra

ft: 2

019

Sum

mar

y

Febr

uary

Janu

ary

Mar

chA

pril

May

June

July

Aug

ust

Sept

embe

rO

ctob

erN

ovem

ber

Dec

embe

rD

escr

iptio

nT

otal

Hou

rsB

ase

Hou

rs3,

496.

002,

880.

003,

024.

003,

168.

003,

312.

002,

880.

003,

312.

003,

168.

003,

024.

003,

312.

003,

024.

003,

168.

0037

,768

.00

Ove

rtim

e H

ours

88.5

088

.50

88.5

088

.50

88.5

088

.50

88.5

088

.50

88.5

088

.50

88.5

088

.50

1,06

2.00

3,58

4.50

2,96

8.50

3,11

2.50

3,25

6.50

3,40

0.50

2,96

8.50

3,40

0.50

3,25

6.50

3,11

2.50

3,40

0.50

3,11

2.50

3,25

6.50

Tot

al H

ours

:38

,830

.00

Bas

e Pa

y Pe

r B

ase

Hou

r:36

.71

37.5

037

.55

37.5

537

.55

37.5

938

.99

39.0

439

.16

39.1

939

.19

39.1

938

.26

Pays

Bas

e Pa

y12

8,33

9.81

108,

008.

0011

3,54

3.29

118,

950.

1412

4,35

6.94

108,

264.

4812

9,13

0.65

123,

685.

4111

8,40

9.10

129,

787.

1611

8,50

1.33

124,

144.

241,

445,

120.

55O

verti

me

Pay

5,13

1.19

5,13

1.57

5,13

1.57

5,13

1.57

5,13

1.57

5,13

1.57

5,47

0.52

5,47

0.52

5,47

1.13

5,47

1.54

5,47

1.54

5,47

1.54

63,6

15.8

3B

onus

Pay

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

133,

471.

0011

3,13

9.57

118,

674.

8612

4,08

1.71

129,

488.

5111

3,39

6.05

134,

601.

1712

9,15

5.93

123,

880.

2313

5,25

8.70

123,

972.

8712

9,61

5.78

Tot

al P

ays:

1,50

8,73

6.38

Ded

uctio

nsN

REC

A M

EDIC

AL

PREM

IUM

1,88

8.48

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,78

0.15

1,77

9.88

21,4

69.8

640

1K E

MPL

OY

EEC

ON

TRIB

UTI

ON

5,93

4.44

5,30

6.20

5,44

3.38

5,58

0.57

5,71

7.77

5,31

2.60

5,77

4.42

5,65

1.68

5,52

5.55

5,80

7.75

5,52

5.55

5,66

6.64

67,2

46.5

5

AFL

AC

PR

E TA

X33

8.97

338.

9733

8.97

338.

9733

8.97

338.

9733

8.97

338.

9733

8.97

338.

9733

8.97

338.

774,

067.

44A

FLA

C P

OST

TA

X49

.97

49.9

749

.97

49.9

749

.97

49.9

749

.97

49.9

749

.97

49.9

749

.97

49.8

959

9.56

401K

LO

AN

PA

YM

ENT

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.42

2,69

6.38

32,3

57.0

0M

EDIC

AL

125

340.

1634

0.16

340.

1634

0.16

340.

1634

0.16

340.

1634

0.16

340.

1634

0.16

340.

1634

0.24

4,08

2.00

MET

LIF

E25

.00

25.0

025

.00

25.0

025

.00

25.0

025

.00

25.0

025

.00

25.0

025

.00

25.0

030

0.00

EMPL

OY

EE &

DEP

END

ENT

LIFE

926.

2092

6.20

926.

2092

6.20

926.

2092

6.20

926.

2092

6.20

926.

2092

6.20

926.

2092

6.12

11,1

14.3

2

SHO

RT

TER

M D

ISA

BIL

ITY

504.

4841

6.17

436.

9845

7.81

478.

6241

6.97

494.

9647

4.50

455.

0749

8.44

455.

0747

6.77

5,56

5.84

UN

ION

DU

ES1,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

481,

085.

4813

,025

.76

RO

TH 4

01(k

) ELE

CTI

ON

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.76

1,11

3.68

13,3

65.0

414

,903

.36

14,0

78.4

814

,236

.47

14,3

94.4

914

,552

.50

14,0

85.6

814

,625

.49

14,4

82.2

914

,336

.73

14,6

62.3

014

,336

.73

14,4

98.8

5T

otal

Ded

uctio

ns:

173,

193.

37

Tot

al P

ay L

ess D

educ

tions

:11

8,56

7.64

99,0

61.0

910

4,43

8.39

109,

687.

2211

4,93

6.01

99,3

10.3

711

9,97

5.68

114,

673.

6410

9,54

3.50

120,

596.

4010

9,63

6.14

115,

116.

931,

335,

543.

01

Tax

able

Ben

efits

GR

OU

P TE

RM

LIF

E IN

S O

VER

50K

87.0

087

.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

1,04

4.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

87.0

087

.00

Tot

al T

axab

le B

enef

its:

1,04

4.00

Tax

esFE

DER

AL

UN

EMPL

OY

MEN

T69

2.45

88.9

00.

000.

000.

000.

000.

000.

000.

000.

000.

000.

0078

1.35

STA

TE U

NEM

PLO

YEM

ENT

800.

8267

8.84

652.

9764

3.65

345.

2318

9.99

86.4

458

.61

24.8

00.

000.

000.

003,

481.

35W

OR

KER

S C

OM

P IN

SID

EEM

PLO

YEE

S14

7.70

116.

6212

2.88

128.

7313

4.58

117.

4613

5.06

129.

7612

4.31

136.

4612

4.62

130.

551,

548.

73

/pro

/rptte

mpl

ate/

acct

/2.4

3.1/

bu/B

U_C

FC_P

AY

RO

LL_D

TL.x

ml.r

ptbp

roph

et28

019

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 71

BEA

RTO

OTH

ELE

CTR

IC C

OO

PER

ATI

VE,

INC

.R

evis

ion:

781

51

BU

DG

ETC

FC B

UD

GET

PR

O -

PAY

RO

LL/L

AB

OR

12/2

1/20

18 1

0:44

:40

amPa

ge:

2

Dra

ft: 2

019

Sum

mar

y

Febr

uary

Janu

ary

Mar

chA

pril

May

June

July

Aug

ust

Sept

embe

rO

ctob

erN

ovem

ber

Dec

embe

rD

escr

iptio

nT

otal

WO

RK

ERS

CO

MP

OU

TSID

EEM

PLO

YEE

S2,

570.

042,

254.

012,

359.

372,

464.

702,

570.

042,

254.

012,

714.

032,

602.

872,

497.

772,

720.

712,

497.

772,

609.

2630

,114

.58

FIC

A8,

121.

426,

867.

587,

210.

767,

545.

997,

881.

226,

883.

488,

198.

197,

860.

587,

533.

507,

487.

696,

693.

617,

002.

4789

,286

.49

MED

ICA

RE

1,89

9.37

1,60

6.14

1,68

6.40

1,76

4.79

1,84

3.19

1,60

9.86

1,91

7.32

1,83

8.36

1,76

1.88

1,92

6.85

1,76

3.23

1,84

5.04

21,4

62.4

314

,231

.80

11,6

12.0

912

,032

.38

12,5

47.8

612

,774

.26

11,0

54.8

013

,051

.04

12,4

90.1

811

,942

.26

12,2

71.7

111

,079

.23

11,5

87.3

2T

otal

Tax

es:

146,

674.

93

Ben

efits

401K

EM

PLO

YER

CO

NTR

IBU

TIO

N9,

530.

378,

035.

848,

449.

768,

852.

169,

254.

538,

058.

939,

611.

379,

208.

688,

814.

279,

653.

788,

814.

279,

234.

0310

7,51

7.99

MED

ICA

L IN

SUR

AN

CE

24,0

09.2

723

,226

.55

23,2

26.5

523

,226

.55

23,2

26.5

523

,226

.55

23,2

26.5

523

,226

.55

23,2

26.5

523

,226

.55

23,2

26.5

523

,226

.32

279,

501.

09B

ASI

C L

IFE

272.

3022

8.52

239.

9325

1.39

262.

8022

8.81

273.

7826

2.27

251.

1127

5.05

251.

1126

3.10

3,06

0.17

LTD

910.

4376

4.07

802.

2884

0.50

878.

6676

5.05

915.

3987

6.89

839.

7191

9.67

839.

7187

9.68

10,2

32.0

4R

ETIR

EMEN

T19

,203

.81

17,8

94.2

417

,894

.24

17,8

94.2

417

,894

.24

17,8

94.2

417

,894

.24

17,8

94.2

417

,894

.24

17,8

94.2

417

,894

.24

17,8

94.1

521

6,04

0.36

MED

ICA

L H

SA D

EPO

SIT

1,80

0.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

1,57

5.00

19,1

25.0

040

1K E

MPL

OY

ER M

ATC

H2,

259.

121,

964.

432,

062.

642,

160.

862,

259.

121,

970.

832,

348.

222,

254.

572,

152.

092,

357.

062,

152.

092,

254.

5726

,195

.60

VA

CA

TIO

N9,

182.

347,

715.

298,

101.

058,

486.

848,

872.

547,

724.

899,

230.

608,

841.

968,

465.

979,

279.

868,

472.

898,

876.

3610

3,25

0.59

67,1

67.6

461

,403

.94

62,3

51.4

563

,287

.54

64,2

23.4

461

,444

.30

65,0

75.1

564

,140

.16

63,2

18.9

465

,181

.21

63,2

25.8

664

,203

.21

Tot

al B

enef

its:

764,

922.

84

Bas

e Pa

y12

8,33

9.81

108,

008.

0011

3,54

3.29

118,

950.

1412

4,35

6.94

108,

264.

4812

9,13

0.65

123,

685.

4111

8,40

9.10

129,

787.

1611

8,50

1.33

124,

144.

241,

445,

120.

55To

tal P

ay13

3,47

1.00

113,

139.

5711

8,67

4.86

124,

081.

7112

9,48

8.51

113,

396.

0513

4,60

1.17

129,

155.

9312

3,88

0.23

135,

258.

7012

3,97

2.87

129,

615.

781,

508,

736.

38To

tal O

verh

ead

81,3

99.4

473

,016

.03

74,3

83.8

375

,835

.40

76,9

97.7

072

,499

.10

78,1

26.1

976

,630

.34

75,1

61.2

077

,452

.92

74,3

05.0

975

,790

.53

911,

597.

77To

tal P

ay a

nd O

verh

ead

214,

870.

4418

6,15

5.60

193,

058.

6919

9,91

7.11

206,

486.

2118

5,89

5.15

212,

727.

3620

5,78

6.27

199,

041.

4321

2,71

1.62

198,

277.

9620

5,40

6.31

2,42

0,33

4.15

Tot

al P

ay P

er H

our:

37.2

438

.11

38.1

338

.10

38.0

838

.20

39.5

839

.66

39.8

039

.78

39.8

339

.80

38.8

5T

otal

Pay

and

Ovh

d Pe

r H

our:

59.9

462

.71

62.0

361

.39

60.7

262

.62

62.5

663

.19

63.9

562

.55

63.7

063

.08

62.3

3

Ove

rhea

d %

of B

ase

Pay

63.4

267

.60

65.5

163

.75

61.9

266

.96

60.5

061

.96

63.4

859

.68

62.7

061

.05

%%

%%

%%

%%

%%

%%

%63

.08

Ove

rhea

d %

of T

otal

Pay

60.9

964

.54

62.6

861

.12

59.4

663

.93

58.0

459

.33

60.6

757

.26

59.9

458

.47

%%

%%

%%

%%

%%

%%

%60

.42

Ove

rhea

d %

of T

otal

Pay

& O

vhd

37.8

839

.22

38.5

337

.93

37.2

939

.00

36.7

337

.24

37.7

636

.41

37.4

836

.90

%%

%%

%%

%%

%%

%%

%37

.66

/pro

/rptte

mpl

ate/

acct

/2.4

3.1/

bu/B

U_C

FC_P

AY

RO

LL_D

TL.x

ml.r

ptbp

roph

et28

019

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 72

Capital Budget

DRAFT For Disc

ussio

n Purp

oses

Only


Beartooth Electric 2019 CAPITAL BUDGET

I. DISTRIBUTION FACILITIES:A. ELECTRIC DISTRIBUTION EXTENSIONS

Budget100-16 LINE EXTENSION FOR 75 NEW ELECTRIC CUSTOMERS -$ 115-16 SUBDIVISION LINE EXTENSIONS 0660-18 ELECTRIC METERS NEW CONSTRUCTION (75) 1,710

Subtotal - Electric Distribution 1,710$

B. ELECTRIC CONVERSIONS AND LINE UPGRADESBudget

301-16 None -$ 302-16 0303-16 0

Subtotal - Electric Conversions and Line Upgrades -$

C. MISCELLANEOUS ELECTRIC DISTRIBUTIONBudget

601-18 REPLACEMENT TRANSFORMERS 20,000$ 602-18 INCREASE SERVICE CAPACITY 0603-18 CONDUCTORS 20,000603-18 SECTIONALIZING EQUIPMENT 15,000603-18a NOVA OCR's 100,000603-18a TWACS Boxes 22,000604-18 VOLTAGE REGULATORS 0605-18 CAPACITORS 0606-18 POLE REPLACEMENTS (100) 150,000608-18 ORDINARY REPLACEMENTS 45,000

Subtotal - Miscellaneous Electric Distribution 372,000$

D. CONSTRUCTION WORK PLANBudget

2019-2023 Multi Year Construction Work Plan 15,000$ Columbus New Substation (2019 - Land) (2020 & 2021 - Prep & Build) 70,000

Subtotal - Construction Work Plan 85,000$

E. GENERAL PLANTBudget

Mini-Split Heat-Pump for Board Room 9,550$ Parking Lot Paving 0Well / Irrigation 0Front Desk Security 1,500Front Driveway Signage 2,500Computer Hardware (laptops & iPads) 2,500Shares du Soleil Fencing 7,500Shares du Soleil Outdoor Signage 10,000Lobby Display Realtime Shares du Soleil reporting 11,000TWACS desktop meter test station 5,000

Subtotal - General Plant 49,550$

TWACSBudget

TWACS 808,200$ `=`` Five (5) Substation Poly Pads (included 0

0Subtotal - General Plant 808,200$

NISC UPGRADESBudget

AMI 4,000$ DocuVault 1,306Prepaid 1,536CallCapture 750Mapwise-Mapping 37,837Mapwis-Staking 11,850OMS 0MDMS 6,500Billing Statement Programming 12,000


F. TRANSPORTATION GENERAL PLANTBudget

None 00

Subtotal - Transportation General Plant -$

TOTAL CAPITAL BUDGET 1,392,239$

IV. CASH FLOW ANALYSISTOTAL CAPITAL BUDGET 1,392,239$

NET MARGINS 661,576$ PLUS DEPRECIATION 1,023,863LESS PATRONAGE CAPITAL (412,273)LESS PRINCIPLE PAYMENTS (1,099,736)CASH AVAILABLE FOR CAPITAL BUDGET ITEMS 173,430 PLUS WORKING CAPITAL AND OTHER ITEMS 0NEW LONG-TERM DEBT 0FUNDS AVAILABLE FOR CAPITAL BUDGET ITEMS 173,430$

DRAFT For Disc

ussio

n Purp

oses

Only







301-16 None -$ 302-16 0303-16 0



601-18 REPLACEMENT TRANSFORMERS 20,600$ 602-18 INCREASE SERVICE CAPACITY 0603-18 CONDUCTORS 80,000603-18 SECTIONALIZING EQUIPMENT 27,000604-18 VOLTAGE REGULATORS 40,000605-18 CAPACITORS 0606-18 POLE REPLACEMENTS (200) 300,000608-18 ORDINARY REPLACEMENTS 46,350



2019-2023 Multi Year Construction Work Plan -$ Columbus New Substation (2019 - Land) (2020 & 2021 - Prep & Build) 130,000



Office Furniture 8,500$ Parking Lot Paving 35,000Well / Irrigation 8,500Front Desk Security 0Front Driveway Signage 0Portable Fault Detector (Thumper) 15,000TWACS desktop meter test station 0


TWACSBudget

TWACS -$ `=`` Five (5) Substation Poly Pads (included 0

0Subtotal - General Plant -$

NISC UPGRADESBudget

AMI -$ DocuVault 0Prepaid 0CallCapture 0Mapwise-Mapping 0Mapwis-Staking 0OMS 0MDMS 0Billing Statement Programming 0

Subtotal - General Plant -$


TBD 00


TOTAL CAPITAL BUDGET 712,660$

IV. CASH FLOW ANALYSISTOTAL CAPITAL BUDGET 712,660$

NET MARGINS 589,706$ PLUS DEPRECIATION 1,033,424LESS PATRONAGE CAPITAL TBD - 5% of EquityLESS PRINCIPLE PAYMENTS TBDCASH AVAILABLE FOR CAPITAL BUDGET ITEMS TBDPLUS WORKING CAPITAL AND OTHER ITEMS 0NEW LONG-TERM DEBT 0FUNDS AVAILABLE FOR CAPITAL BUDGET ITEMS -$

DRAFT For Disc

ussio

n Purp

oses

Only




Budget100-16 LINE EXTENSION FOR 75 NEW ELECTRIC CUSTOMERS -$ 115-16 NEW TIE LINES NEW COLUMBUS EAST SUBSTATION 22,000660-18 ELECTRIC METERS NEW CONSTRUCTION (75) 1,710



301-16 None -$ 302-16 0303-16 0






2019-2023 Multi Year Construction Work Plan -$ Columbus New Substation (2019 - Land) (2020 & 2021 - Prep & Build) 485,000



Office Furniture -$ Parking Lot Paving 0Well / Irrigation 0Front Desk Security 0Front Driveway Signage 0Portable Fault Detector (Thumper) 0TWACS desktop meter test station 0


TWACSBudget



NISC UPGRADESBudget




TBD 00


TOTAL CAPITAL BUDGET 1,045,669$

IV. CASH FLOW ANALYSISTOTAL CAPITAL BUDGET 1,045,669$


DRAFT For Disc

ussio

n Purp

oses

Only







301-16 MDOT Red Lodge to Beartooth Hospital 77,000$ 302-16 0303-16 0

Subtotal - Electric Conversions and Line Upgrades 77,000$





2019-2023 Multi Year Construction Work Plan -$ Columbus New Substation (2019 - Land) (2020 & 2021 - Prep & Build) 0

Subtotal - Construction Work Plan -$


Main Office Remodel 100,000$ Portable Fault Detector (Thumper) 0TWACS desktop meter test station 0


TWACSBudget



NISC UPGRADESBudget




TBD 00





DRAFT For Disc

ussio

n Purp

oses

Only







301-16 MDOT Red Lodge to Beartooth Hospital -$ 302-16 0303-16 0






2024-2028 Multi Year Construction Work Plan 15,000$ Columbus New Substation (2019 - Land) (2020 & 2021 - Prep & Build) 0



Main Office Remodel -$ Portable Fault Detector (Thumper) 0TWACS desktop meter test station 0


TWACSBudget



NISC UPGRADESBudget




TBD 00




NET MARGINS TBDPLUS DEPRECIATION TBDLESS PATRONAGE CAPITAL TBD - 5% of EquityLESS PRINCIPLE PAYMENTS TBDCASH AVAILABLE FOR CAPITAL BUDGET ITEMS TBDPLUS WORKING CAPITAL AND OTHER ITEMS 0NEW LONG-TERM DEBT 0FUNDS AVAILABLE FOR CAPITAL BUDGET ITEMS -$

DRAFT For Disc

ussio

n Purp

oses

Only


Depreciation

DRAFT For Disc

ussio

n Purp

oses

Only


Tot

al

Allo

catio

nA

ccou

nt

Tot

alJa

nuar

yFe

brua

ryM

arch

Apr

ilM

ayJu

neJu

lyA

ugus

tSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

Dep

reci

atio

n1,

023,

863

40

3.50

- -

- -

- -

- -

- -

- -

- 40

3.60

873,

867.

07

71,9

11.9

8

72,0

94.0

3

72,2

76.0

9

72,4

58.1

4

72,6

40.2

0

72,8

22.2

6

72,8

22.2

6

73,0

04.3

1

73,1

86.3

7

73,3

68.4

2

73,5

50.4

8

73,7

32.5

3

403.

6184

,980

.63

6,

993.

20

7,01

0.90

7,

028.

61

7,04

6.31

7,

064.

01

7,08

1.72

7,

081.

72

7,09

9.42

7,

117.

13

7,13

4.83

7,

152.

54

7,17

0.24

40

3.70

65,0

15.3

0

5,35

0.22

5,

363.

76

5,37

7.31

5,

390.

85

5,40

4.40

5,

417.

94

5,41

7.94

5,

431.

49

5,44

5.03

5,

458.

58

5,47

2.12

5,

485.

67

Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

2019

Bud

get

Dep

reci

atio

n A

lloca

tion

Det

ails DRAFT For

Discus

sion P

urpos

es O

nly

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 80

Debt Service/Interest

DRAFT For Disc

ussio

n Purp

oses

Only


Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

2019

Bud

get

Deb

t Ser

vice

Tot

alJa

nuar

yFe

brua

ryM

arch

Apr

ilM

ayJu

neJu

lyA

ugus

tSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

RU

SBe

ginn

ing

Bala

nce

426,

960.

26

42

4,78

7.76

422,

605.

31

42

0,41

2.89

418,

210.

45

41

5,99

7.93

413,

775.

30

41

1,54

2.50

409,

299.

50

40

7,04

6.24

404,

782.

67

40

2,50

8.76

Pr

inci

pal

2,17

2.51

2,18

2.44

2,19

2.42

2,20

2.45

2,21

2.52

2,22

2.63

2,23

2.80

2,24

3.01

2,25

3.26

2,26

3.56

2,27

3.92

2,28

4.31

Inte

rest

1,95

3.81

1,94

3.88

1,93

3.90

1,92

3.87

1,91

3.80

1,90

3.69

1,89

3.52

1,88

3.31

1,87

3.06

1,86

2.76

1,85

2.40

1,84

2.01

Tota

l Pay

men

t49

,515

.84

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

4,

126.

32

En

ding

Bal

ance

424,

787.

76

42

2,60

5.31

420,

412.

89

41

8,21

0.45

415,

997.

93

41

3,77

5.30

411,

542.

50

40

9,29

9.50

407,

046.

24

40

4,78

2.67

402,

508.

76

40

0,22

4.44

FFB

Begi

nnin

g Ba

lanc

e6,

538,

064.

43

6,53

8,06

4.43

6,

538,

064.

43

6,48

8,59

1.42

6,

488,

591.

42

6,48

8,59

1.42

6,

439,

338.

93

6,43

9,33

8.93

6,

439,

338.

93

6,39

0,29

8.27

6,

390,

298.

27

6,39

0,29

8.27

Prin

cipa

l-

-

49

,473

.01

-

-

49

,252

.49

-

-

49

,040

.66

-

-

49

,541

.59

Inte

rest

-

-

66,8

56.8

2

-

-

67,0

84.3

1

-

-

67,3

02.8

4

-

-

66,7

86.4

6

To

tal P

aym

ent

465,

338.

18

-

-

11

6,32

9.83

-

-

116,

336.

80

-

-

11

6,34

3.50

-

-

116,

328.

05

Endi

ng B

alan

ce6,

538,

064.

43

6,53

8,06

4.43

6,

488,

591.

42

6,48

8,59

1.42

6,

488,

591.

42

6,43

9,33

8.93

6,

439,

338.

93

6,43

9,33

8.93

6,

390,

298.

27

6,39

0,29

8.27

6,

390,

298.

27

6,34

0,75

6.68

CFC

Bala

nce

3,42

1,07

2.03

3,

317,

874.

30

3,31

7,87

4.30

3,

317,

874.

31

3,21

3,23

2.80

3,

213,

232.

80

3,21

3,23

2.80

3,

107,

155.

51

3,10

7,15

5.51

3,

107,

155.

51

2,99

9,60

8.05

2,

999,

608.

05

Pr

inci

pal

103,

197.

72

10

4,64

1.50

106,

077.

29

10

7,54

7.47

Inte

rest

51,4

69.8

1

50,0

08.7

8

48,5

90.2

4

47,1

20.0

6

Disc

ount

(906

.75)

(896

.44)

(885

.96)

(875

.33)

Net

Inte

rest

50,5

63.0

6

49,1

12.3

4

47,7

04.2

8

46,2

44.7

4

Tota

l Pay

men

t61

5,08

8.39

153,

760.

78

15

3,75

3.84

153,

781.

57

15

3,79

2.20

Endi

ng B

alan

ce3,

317,

874.

30

3,31

7,87

4.30

3,

317,

874.

30

3,21

3,23

2.80

3,

213,

232.

80

3,21

3,23

2.80

3,

107,

155.

51

3,10

7,15

5.51

3,

107,

155.

51

2,99

9,60

8.05

2,

999,

608.

05

2,99

9,60

8.05

CoB

ank

Bala

nce

$2,9

47,1

44.0

9$2

,897

,796

.83

$2,8

48,3

14.8

5$2

,798

,016

.33

$2,7

48,2

61.0

1$2

,698

,151

.50

$2,6

48,1

23.1

3$2

,597

,748

.63

$2,5

47,4

45.6

0$2

,498

,724

.10

$2,4

49,5

52.1

1$2

,400

,523

.22

Prin

cipa

l49

,347

.26

49

,481

.98

50

,298

.52

49

,755

.32

50

,109

.51

50

,028

.37

50

,374

.50

50

,303

.03

48

,721

.50

49

,171

.99

49

,028

.89

49

,470

.41

Inte

rest

10,5

76.6

8

10,4

43.0

2

9,31

7.43

10,1

69.6

5

9,71

3.04

9,89

5.55

9,44

6.42

9,62

2.58

9,41

8.35

9,19

2.33

9,36

7.27

9,14

1.35

Tota

l Pay

men

t71

2,39

4.95

59,9

23.9

4

59,9

25.0

0

59,6

15.9

5

59,9

24.9

7

59,8

22.5

5

59,9

23.9

2

59,8

20.9

2

59,9

25.6

1

58,1

39.8

5

58,3

64.3

2

58,3

96.1

6

58,6

11.7

6

En

ding

Bal

ance

2,89

7,79

6.83

2,

848,

314.

85

2,79

8,01

6.33

2,

748,

261.

01

2,69

8,15

1.50

2,

648,

123.

13

2,59

7,74

8.63

2,

547,

445.

60

2,49

8,72

4.10

2,

449,

552.

11

2,40

0,52

3.22

2,

351,

052.

81

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 82

Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

2019

Bud

get

Deb

t Ser

vice

Tot

alJa

nuar

yFe

brua

ryM

arch

Apr

ilM

ayJu

neJu

lyA

ugus

tSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

Sum

mar

y of

Deb

t Ser

vice

End

ing

Bala

nce

12/3

1/20

19 R

US

400,

224.

44$

FFB

6,34

0,75

6.68

CFC

2,99

9,60

8.05

CoB

ank

2,35

1,05

2.81

New

Loa

n fo

r New

Col

umbu

s Sub

stat

ion

70,0

00.0

0

C

ushi

on o

f Cre

dit -

2(2

51,3

99.4

9)

Cus

hion

of C

redi

t - 3

(1,0

57,7

87.0

0)

C

ushi

on o

f Cre

dit -

Inte

rest

Inco

me

(82,

181.

04)

End

ing

Bal

ance

12/

31/2

019

10,7

70,2

74.4

5$

Inte

rest

Exp

ense

Tota

l RU

S In

tere

st22

,780

.02

1,

953.

81

1,

943.

88

1,

933.

90

1,

923.

87

1,

913.

80

1,

903.

69

1,

893.

52

1,

883.

31

1,

873.

06

1,

862.

76

1,

852.

40

1,

842.

01

Tota

l FFB

Inte

rest

268,

030.

43

22

,285

.61

22

,285

.61

22

,285

.61

22

,361

.44

22

,361

.44

22

,361

.44

22

,434

.28

22

,434

.28

22

,434

.28

22

,262

.15

22

,262

.15

22

,262

.15

Tota

l CFC

Inte

rest

193,

624.

41

16

,854

.35

16

,854

.35

16

,854

.35

16

,370

.78

16

,370

.78

16

,370

.78

15

,901

.43

15

,901

.43

15

,901

.43

15

,414

.91

15

,414

.91

15

,414

.91

Tota

l CoB

ank

Inte

rest

116,

303.

67

10

,576

.68

10

,443

.02

9,

317.

43

10

,169

.65

9,

713.

04

9,

895.

55

9,

446.

42

9,

622.

58

9,

418.

35

9,

192.

33

9,

367.

27

9,

141.

35

Tot

al in

tere

st e

xpen

se60

0,73

8.53

51,6

70.4

5

51,5

26.8

6

50,3

91.2

9

50,8

25.7

4

50,3

59.0

6

50,5

31.4

5

49,6

75.6

5

49,8

41.6

0

49,6

27.1

1

48,7

32.1

5

48,8

96.7

4

48,6

60.4

2

Tot

al in

tere

st p

aym

ent

484,

434.

86

52

,516

.87

1,

943.

88

68

,790

.72

51

,036

.21

1,

913.

80

68

,988

.00

49

,597

.80

1,

883.

31

69

,175

.90

48

,107

.49

1,

852.

40

68

,628

.47

Tot

al p

rinc

ipal

pay

men

t1,

241,

598.

83

154,

717.

49

51

,664

.42

10

1,96

3.95

156,

599.

27

52

,322

.03

10

1,50

3.49

158,

684.

58

52

,546

.04

10

0,01

5.42

158,

983.

02

51

,302

.81

10

1,29

6.32

Tot

al P

aym

ent

1,84

2,33

7.36

21

7,81

1.04

64,0

51.3

2

180,

072.

10

21

7,80

5.13

63,9

48.8

7

180,

387.

04

21

7,72

8.81

64,0

51.9

3

178,

609.

67

21

6,28

2.84

62,5

22.4

8

179,

066.

13

Tot

al p

rinc

ipal

pay

men

t fr

om C

ash

1,01

7,55

5.26

15

2,54

4.98

49,4

81.9

8

50,2

98.5

2

154,

396.

82

50

,109

.51

50

,028

.37

15

6,45

1.79

50,3

03.0

3

48,7

21.5

0

156,

719.

46

49

,028

.89

49

,470

.41

Tot

al p

rinc

ipal

pay

men

t fr

om C

ushi

on o

f Cre

dit

Acc

ount

22

4,04

3.57

2,17

2.51

2,18

2.44

51,6

65.4

3

2,20

2.45

2,21

2.52

51,4

75.1

2

2,23

2.80

2,24

3.01

51,2

93.9

2

2,26

3.56

2,27

3.92

51,8

25.9

1

Deb

t Ser

vice

Cov

erag

e R

atio

12/

31/2

019

1.24

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 83

419

Tot

alJa

nuar

yFe

brua

ryM

arch

Apr

ilM

ayJu

neJu

lyA

ugus

tSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

FIB

Sav

ings

300.

00

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

25.0

0

Ban

k of

RL

Savi

ngs

120.

00

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

10.0

0

CFC

11,3

01.9

1

95

9.89

86

7.00

95

9.89

92

8.92

95

9.89

92

8.92

95

9.89

95

9.89

92

8.92

95

9.89

92

8.92

95

9.89

Se

lect

Not

es4,

303.

60

1,56

9.53

1,

417.

64

1,31

6.42

-

- -

- -

- -

- -

CO

C82

,181

.04

7,69

2.41

7,

702.

26

7,22

7.41

7,

237.

26

7,24

7.11

6,

772.

23

6,78

2.08

6,

791.

93

6,31

5.28

6,

316.

45

6,29

9.26

5,

797.

36

Misc

Rec

eiva

bles

12.0

0

1.00

1.

00

1.00

1.

00

1.00

1.

00

1.00

1.

00

1.00

1.

00

1.00

1.

00

Tot

al In

tere

st98

,218

.55

10,2

57.8

4

10

,022

.91

9,53

9.72

8,

202.

18

8,24

3.00

7,

737.

15

7,77

7.97

7,

787.

82

7,28

0.20

7,

312.

34

7,26

4.18

6,

793.

25

CO

CIn

itial

288,

391.

72

29

0,75

6.18

176,

790.

81

17

9,15

5.27

181,

519.

73

67

,547

.39

69,9

11.8

5

72

,276

.31

- -

- -

5%5,

526.

46

1,20

1.63

1,

211.

48

736.

63

746.

48

756.

33

281.

45

291.

30

301.

15

- -

- -

$500

K50

0,00

0.00

500,

000.

00

50

0,00

0.00

500,

000.

00

50

0,00

0.00

500,

000.

00

50

0,00

0.00

500,

000.

00

45

7,88

0.10

458,

161.

23

45

4,03

4.91

333,

580.

53

5%23

,765

.24

2,08

3.33

2,

083.

33

2,08

3.33

2,

083.

33

2,08

3.33

2,

083.

33

2,08

3.33

2,

083.

33

1,90

7.83

1,

909.

01

1,89

1.81

1,

389.

92

$1,0

57.7

87K

1,05

7,78

7.00

1,

057,

787.

00

1,05

7,78

7.00

1,

057,

787.

00

1,05

7,78

7.00

1,

057,

787.

00

1,05

7,78

7.00

1,

057,

787.

00

1,05

7,78

7.00

1,

057,

787.

00

1,05

7,78

7.00

1,

057,

787.

00

5%

52,8

89.3

5

4,

407.

45

4,40

7.45

4,

407.

45

4,40

7.45

4,

407.

45

4,40

7.45

4,

407.

45

4,40

7.45

4,

407.

45

4,40

7.45

4,

407.

45

4,40

7.45

To

tal

82,1

81.0

4

7,

692.

41

7,70

2.26

7,

227.

41

7,23

7.26

7,

247.

11

6,77

2.23

6,

782.

08

6,79

1.93

6,

315.

28

6,31

6.45

6,

299.

26

5,79

7.36

Bea

rtoo

th E

lect

ric

Coo

pera

tive,

Inc.

2019

Bud

get

Inte

rest

Inco

me

DRAFT For Disc

ussio

n Purp

oses

Only

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 84

September 2019

GM Report

Month/Year Energy WAPA Morgan Stanley Imbalance Transmission Total Cost Cost per mwh

18-Aug 6,237 $11,681 $219,645 ($26,397) $48,375 $253,305 $40.61

18-Sep 5,235 $9,885 $163,612 ($2,615) $48,716 $219,598 $41.95 18-Oct 5,640 $8,973 $196,847 ($2,716) $49,409 $252,514 $44.77 18-Nov 6,780 $10,977 $206,151 $11,179 $46,948 $275,254 $40.60 18-Dec 7,995 $12,579 $217,895 $37,219 $47,164 $314,858 $39.38 19-Jan 7,988 $12,338 $266,089 ($11,216) $44,495 $311,706 $39.02 19-Feb 9,027 $12,951 $254,529 $34,916 $45,658 $348,053 $38.56

19-Mar 8,079 $10,420 $245,420 $16,150 $47,293 $319,282 $39.52 19-Apr 5,714 $11,180 $181,115 ($3,242) $44,548 $233,601 $40.88 19-May 5,554 $9,041 $182,769 ($5,507) $44,436 $230,739 $41.54 19-Jun 5,385 $10,309 $166,776 $6,679 $46,803 $230,566 $42.82 19-Jul 6,053 $11,288 $177,870 ($419) $74,810 $263,549 $43.54

19-Aug 6,650 $11,681 $208,446 $0 $80,000 $300,127 $45.13

12 Month Total 80,100 $131,623 $2,467,518 $80,426 $620,280 $3,299,847 $41.20

Note: Imbalance adjustment for August from Morgan Stanley has not been received. Note: NorthWestern August Transmission invoice has not been received. Estimated as $80,000. • NWE OATT Rate Case- Interveners in the rate case have been submitting questions and

data requests to NWE prior to the first technical meeting between the parties scheduledfor the end of September. Bill Pascoe and I will continue to engage and offer commentsas necessary.

• Shares du Soleil- Project remains on target to be completed by mid October. Participatingmembers have been notified via direct mail of project changes and schedule. Billingadjustments/programming has been completed so members will receive energy credits ontheir November bills. Larry and I are working on a Power Purchase Agreement to besigned by participating members declaring the Terms and Conditions of the their powerpurchases to be credited to their bills.

• Policies- Significant work took place in the last month reviewing and commenting on the200 Series of policies. In addition a new PrePay policy was developed and presented to


the Policy Committee at their September 17 meeting. Bill Pascoe also presented his revision of Policy 302 at the Meeting.

• Work continues on the rate design project.

• WREA- As a normal course of business I monitor and engage Wyoming REA managerson a regular basis. They have had several meetings so far on amending the state’s netmeeting law. My purpose in engaging them on this project is to ensure our 400 Wyomingmembers are not disadvantaged by any legislative changes. Following is a summary oftheir current position with legislators:

Easiest way to address issues with net-metering is to repeal that statute(cooperative business model) short of that the cooperatives support the following:

Statute is intended to promote renewables and to offset part or all of customer-generators requirements for electricity, not to make money or become a generatorat the expense of non-customer-generators.

Support language in working draft that says anything above 25 kw is a privatecontract.

Support language in committee memo stating that energy consumed by customer-generator is paid at the retail rate.

Support language in committee memo amending 37-16-103 CalculationRequirements, stating that energy produced by customer-generator is credited or“bought back” by the utility at the avoided cost rate with a couple of amendments.We’d prefer language that reads

“(v) The electric utility shall at a minimum credit the customer-generator at theelectric utilities avoided cost rate for all energy that is fed back to the utility bythe customer-generator during the billing period.”

“(vi) At the beginning of each calendar year, or on a date mutually agreed to bythe utility and customer-generator, and no more than one (1) time each year, anyremaining credit during the previous year shall be paid out to the customer-generator.”

Support language in committee memo ensuring that fixed costs of energytransmission is shared fairly among all customers of the electric utility with oneamendment.

Strike “of the energy transmission.” So that it reads “May ensure that the fixedcosts is shared fairly among all customers of the electric utility.”

Support having a sunset date of no more than 5 years.

WREA testified on these suggested changes at a recent legislative committee meeting. They feel pretty good about getting support for the key elements;

Anything above 25 kw is a private contract so long as there is no cost shift(not sure who or how we prove this but that is to be considered later)


Energy sold to customer at retail rate, energy purchased by utility fromcustomer at avoided cost rate (our position was to have “at a minimumavoided cost rate” so as to allow for flexibility but ultimately the committeestayed with shall purchase at avoided cost.

Fixed costs shared equally among all customers (like the greater than 25 kwprivate contract language I’m not sure who or how we prove this but will beaddressed later)

Grandfathering of all existing net-metering customers for 10 years. Sunset of law at 10 years. Change the name from net-metering to something else to be determined by

LSO staff and committee On top of all this they also agreed to have a bill drafted to repeal the law all

together.

A bill is now being drafted for presentation in November.


Fit

it t

hro

ugh

Q3

5

30

.0%

32

.0%

34

.0%

36

.0%

38

.0%

40

.0%

42

.0%

44

.0%

Jul-

Dec

20

17

20

18

Bu

dge

t2

01

8 Y

TD2

01

9 B

ud

get

20

19

YTD

Jan

20

19

Feb

20

19

Mar

20

19

Ap

r 2

01

9M

ay 2

01

9Ju

ne

20

19

July

20

19

Au

g 2

01

9

37

.4%

37

.3%

37

.0%

36

.6%

37

.7%

38

.5%

38

.7%

39

.1%

34

.9%

35

.2%

35

.4%

37

.6%

40

.7%

Pow

er C

ost

s as

a P

erce

nta

ge o

f R

even

ue

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 88

September 6, 2019

Dear Shares du Soleil Partner,

It’s been a long, challenging road to move our community solar project from concept to construction. It is not often that a story of delays and unplanned events produces dividends. In this instance, time and technology have provided you with huge dividends. Here is the remarkable Shares du Soleil story—

Last July, the Shares du Soleil project launch offered BEC members partnership in a solar array of 40, 300-watt panels, designed as a parking structure constructed at the BEC Red Lodge office south parking lot. The array’s energy production, estimated at 15,840 kilowatt-hours (kWhs) per year, would deliver an estimated 330 kWhs per panel electricity credit ($29.00) annually to partner accounts. The project provided a miserly projected annual return for your investment portfolio with a simple payback of 25.6 years. However, that wasn’t the reason members stepped up with their checkbooks. More importantly, it was a stand for local renewables and a spirited choice to make a difference with clean energy power supply.

The Shares du Soleil project rapidly hit the Phase One goal with an early fall 2018, Phase Two offering an additional 20, 300-watt panels. Partnerships and purchase photos were streaming our social media. However, the parking structure design didn’t get off the ground when a city main sewer line was discovered running directly under the parking lot construction site. No sewer line could stop this project’s momentum-a new construction site, right across the parking lot in the front lawn area west of the main office building offered new hope for the now larger, ground mount design. Moving construction to the lawn area was not without its unique challenges, including the future road widening design of Hwy 212 cutting deeply into the available space for an 80-panel solar array. To no avail, the 80-panel, ground mount solar project was issued for bid July 1. Thirty days of patience brought the bid closing date (Aug. 1) and a bid price-tag 25% over the project budget. The bid process site test revealed dense cobble, which in turn added extensive excavation, foundation, and hardware costs to the project while adding nothing to the project’s ability to produce kWhs.

What a quandary, the project budget was set—partner contributions of $750 per panel and a grant of $15,764 from the U.S. Department of Agriculture, Renewable Energy for America Program (REAP) was the cap. Now, the great/phenomenal/incredible news! A BEC Headquarters roof-mount solar array system. The extensive excavation, foundation and heavy-duty rack-mounting hardware costs are alleviated, but even more, the roof-top design now incorporates 132, 380-watt, 19.4% efficiency panels. We clearly hit a grand slam—costs are within budget, financial returns dramatically improve, and panels/ kWhs skyrocket. Participants now own 1/80 of the total project output for every panel they initially purchased. This new 50.16 KW system will likely produce over 66,000 kWhs annually. Partner simple payback has dropped to 10.2 years and annual output credits increase 52.1%, to 832 kWhs ($73.85), in contrast to the initial project offering of 330 kWhs ($29.00 per year).

I am now literally shouting from the rooftop—the Shares du Soleil project is on the construction fast track. We took delivery of the 132 solar panels the week of Aug. 26. Preliminary electrical work has begun with rooftop construction to follow shortly. So, when you pass the Red Lodge office near the end of the month, be sure to take a look at the construction progress on the roof. The estimated construction completion date is Oct. 15. Just as soon as the completion date is firm, we’ll plan a Shares du Soleil Power-up event. We are very excited to celebrate this momentous occasion with all our partners. More event information to come as the completion date draws nearer.

In the interim, you will be mailed a Power Purchase Agreement from Beartooth Electric. This Agreement certifies the number of shares in the final project output you are entitled to, defines the term of the Agreement, transferability, etc.

Congratulations Shares du Soleil Partners on building local renewable energy. If you have questions, don’t hesitate to give me a call at 406-446-2310 or email me at [email protected].

Warm regards,

Kevin P. Owens, PE General Manager



SHARES DU SOLEIL PROJECT FINANCIALS

*Balance of funding will support maintenance, repair, and replacement of equipment not covered within warranty.**Based upon current BEC Residential Rates.

Initial Offering-Phase I Plan Sundance Solar-Final Construction Plan

Solar Array Location & Design BEC Headquarters Parking Structure BEC Headquarters Roof-mount Structure

Solar Array Construction 48 panels 132 panels

Panel Rated Power 300-watts 380-watts

Solar Array Total Power 14.4KW 50.16 KW

Efficiency 17% 19.4%

Output Warranty Term 25-year, Linear 25-year, LinearEstimated Annual Energy Production 15,840 kWhs 66,524 kWhs

Estimated Annual Output Per Panel (1/48): 330 kWhs per year (1/80): 832 kWhs per year

Solar Array Budget $48,820 $77,500

Solar Array Funding

Partners: 48 x 750= 36,000 REAP: 25%= $12,205

$48,205

Partners: 80 x $750= $60,000 REAP 25% Phase I (actual): $15,764 REAP 25% Phase II (est): $4,844

$80,608*

Solar Array Cost per watt $3.39 $1.54

Partner Simple Payback 25.6 years 10.2 years Estimated Partner Annual Output Credit

$29.00** Estimated monthly credit $1.31

$73.85** Estimated monthly credit $6.15


DEQ MT PI INTERFACE DEPARTMENT OF ENVIRONMENTAL QUALITY 1520 E 6TH AVE P O BOX 200901 HELENA MT 59620-0901

RETURN SERVICE REQUESTED

BEAR TOOTH ELECTR IC COOPERATIVE INC 1306 N B R OADWAY AVE

DATE: CHECK NUMBER: CHECK AMOUNT:

Surrvnary

9/5/2019 0026244162 $14,751.35

RED L OD GE MT 5 9068-9091 REC.F .. /\..1Ff1 rr· '

-- it/J I O 2019

Agency Contact:406/444-2442 Agency:5301Z Agency N ame:DEQ MT PI INTERFACE

Supplier ID:0000016870 Invoice Date:8/28/2019 Invoice #:51902000082819

DEQ CONTRACT 519020 DESIGN & MARKETING FOR SHARES DU SOLEIL PV ARRAYS ERVICES: 10/19/2018 - 8/28/2019

If you would like to receive

your next payment from the State of Montana electronically,

please call 406 /444-2442.

THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND, SECURITY FEATURES INCLUDE THERMDCHROMIC INK, MICROPRINTING, A VOID PANTOGRAPH, AND AN ARTIFICIAL WATERMARK AND SECURITY SCREEN ON THE BACK.

State o

93-104/920

Check No. Date 0026244162 9/5/2019

AMOUNT Pay Exactly**FOURTEEN THOUSAND SEVEN HUNDRED FIFTY-ONE AND 35/100 DOLLARS** $14,751.35

To the Order of

BEARTOOTH ELECTRIC COOPERATIVE INC 1306 N BROADWAY AVE RED LODGE MT 59068-9091

,:o g 200 .o '1 (;1:

This account is protected by Positive Pay. Void after 180 days from date of check. Payable through U.S. Bank.

• S ti O '1 • 2 0 0 2 2 • 11• .o. BEC Board Book | September 24, 2019 |

CFC

is th

e on

ly le

nder

crea

ted

and

owne

d

by A

mer

ica'

s el

ectr

ic

coop

erat

ive

netw

ork.

At C

FC, o

ur fo

cus

on

elec

tric

coo

pera

tive

succ

ess p

erm

eate

s

ever

ythi

ng w

e do

.

Na

tio

na

l R

ura

l U

tili

tie

s C

oo

pe

rati

ve

Fin

an

ce C

orp

ora

tio

n

PA

TRO

NA

GE

CAP

ITA

L C

ER

11FI

CA

TE

Beart

ooth

Ele

ctri

c C

oopera

tive

, In

c.

MT0

19

$18

,759

.94

In a

cco

rdan

ce w

ith a

nd

su

bje

ct t

o C

FC

byl

aws,

we

at

CF

C a

re p

rou

d t

o p

rese

nt

this

cer

tific

ate

to y

ou

. It

is y

ou

r co

nti

nu

ed p

atro

nag

e th

at m

ake

s th

is d

istr

ibu

tio

n p

oss

ible

. Th

an

k yo

u fo

r yo

ur

loya

l su

pp

ort

.

�C.

.\)-,t.

_. -

She

ldo

n C

. Pet

erse

n, C

EO

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 92

BEC Member Communication & Services Board Report

September 24, 2019

1. Communication Committee MeetingThe next Communication Committee meeting is scheduled for October 22, 2019, 2 PM.

2. Work in Progress

• November Rural Montana

• October Billing Insert

• October Billing Memo

• Member eNewsletter- Post-Board meeting email scheduled for October 12- Pre-Board meeting email scheduled for October 26

• NEW Billing Statement Development- The new billing statement data flow from Aclara to NISC is under construction. Once complete,

this data will allow the development of the new usage graphs.- The Shares du Soleil reporting prework is complete. Data flow will be tested once the system is

constructed.- The rollout will occur upon completion of the meter upgrade project — projected rollout early

2020.

• SmartHub Update & Rollout- New SmarHub communication, marketing, and reporting capabilities will be available with the

installation of the digital meters. Prework is being completed.- The rollout will occur upon completion of the meter upgrade project — projected rollout early

2020.

• Shares du Soleil- Solar Power Up ceremony- Monitor system TBD upon system design- Signage TBD upon system design and highway easements- Partner Certificate (Can complete once system specs are defined)

• MECA- Communication Committee

• Printer Options- Members Services

• Coop Day at the Capital (January 2020)• Washington D.C. Youth Tour• MECA Memorial Scholarship


• Electronic Forms Development- Numerous BEC forms are required from member including Aid-to-Construction, Membership, etc. A

move to electronic forms would significantly assist both members and internal operations.- In addition to electronic forms – an electronic signature is also under evaluation.- An analysis of available systems/processes is underway.

- Current Website- NEW Website design is in progress. In addition, industry experts are being interviewed to seehow they may fit into the BEC Website mix.- Continue content updates to the current site- New headers- Post new press releases- Post financials- Update calendar- Continue redesign website sitemap

• BEC App Development- Research new BEC app development to incorporate BEC specific needs and SmartHub

• FacebookContent follows board meeting information, press releases, and RM

• BEC Membership ApplicationA new review is scheduled with the Policy Committee

• BEC New Member Welcome (email & hard copy package)Work in progress-awaiting membership application

• CCC Certificate Portfolio DevelopmentCertificate work continues.

• Operation Round Up

- Operation Round Up received $123.34 billed 09/05/2019. 202 Accounts and 187 Customers.Current Balance for Operation Round Up is $6,182.71.

• LISD/LIDD

- Total LISC/LID Discount Accounts for August 2019 billed 09/05/2019. WY: $33.20 and MT:$190.90 = Total $224.10. Total number of accounts are 38.

The Member Services department suggests a review of our LISD/LIDD programs on two fronts: - Can we open up this program to all Low-Income Members? Why just Seniors and Disabled?- Can we provide a service that truly benefits our members in need (a few dollars a month –10%

of the total kWh used charge). How about the full base rate?


NISC Enterprise System Update June 2019

Process Reviews • Several internal process reviews are taking place (SO/WO/Street light).• New system capabilities are being implemented into processes as available.

Installed Systems (Updates) • ABS• Customer Information System (CIS)• CashRegister• Remitlus• SmartHub

NEW System Installations • E&O App Suite

• Automated Meter Information (AMI)o Installed

• Work Management Solutions (WMS)o Installed

• DocuVaulto Installed

• CallCaptureo Installed

• Mapwise-Mappingo Work in Progress

• Mapwise-Stakingo Work in Progress

• EZRI GISo Installed with MapWise

• Meter Data Management System (MDMS)o Work in Progress

• OMSo Implementation Prework October 2019o Implementation 2020

• Prepayo Implementation 2020

OTHER

Billing Statement Programming • Work in Progress

o Aclara-MDMS data flow


Bea

rto

oth

Ele

ctri

c C

oo

per

ativ

e In

c.O

per

atio

n R

ou

nd

Up

Fin

anci

al R

epo

rt

9/1

7/2

01

9

DEB

ITC

RED

ITB

ALA

NC

E

$6

,43

8.4

4

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

1/7

/20

19

$9

8.7

9$

6,5

37

.23

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

2/6

/20

19

$1

02

.82

$6

,64

0.0

5

PO

M C

on

trib

uti

on

s2

/25

/20

19

$5

2.6

5$

6,6

92

.70

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

3/6

/20

19

$9

9.1

8$

6,7

91

.88

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

4/5

/20

19

$9

6.6

6$

6,8

88

.54

Ap

plie

d t

o A

cco

un

t #3

73

80

24

/12

/20

19

($3

00

.00

)$

6,5

88

.54

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

5/7

/20

19

$1

30

.36

$6

,71

8.9

0A

pp

lied

to

Acc

ou

nt

#30

58

10

5/1

4/2

01

9($

30

0.0

0)

$6

,41

8.9

0A

pp

lied

to

Acc

ou

nt

#50

12

05

5/1

4/2

01

9($

20

0.0

0)

$6

,21

8.9

0A

pp

lied

to

Acc

ou

nt

#66

05

01

5/1

4/2

01

9($

20

0.0

0)

$6

,01

8.9

0

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

6/5

/20

19

$1

19

.21

$6

,13

8.1

1

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

7/8

/20

19

$1

11

.21

$6

,24

9.3

2

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

8/7

/20

19

$1

16

.01

$6

,36

5.3

3A

pp

lied

to

Acc

ou

nt

#79

49

00

8/2

6/2

01

9($

55

.96

)$

6,3

09

.37

Ap

plie

d t

o A

cco

un

t #7

01

10

58

/26

/20

19

($2

50

.00

)$

6,0

59

.37

Bill

ing

Co

ntr

ibu

tio

ns

to O

RU

9/5

/20

19

$1

23

.34

TOTA

LS$

1,0

50

.23

($1

,30

5.9

6)

$6

,18

2.7

1

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 96

BOARD REPORT

By: Eric Elton, Line Superintendent

September, 24 2019

CONSTRUCTION, OPERATIONS & MAINTENANCE

• The Red Lodge crew is still working on new services and they have alsocompleted a re-plow in Eagle Point Estates.

• Columbus crew has also been working on new services and some linemaintenance.

• To date we have changed out about 3900 meters. (We are working on RedLodge and Columbus substations).

• Par Contractors finished the permanent 100 KV tap to the Nye substation andall other work until the power transformer is delivered. We received and e-mail that the substation power transformer was going to ship on the 13th ofSeptember, and it now looks like the delivery is going to be closer to theoriginal date of October 4th.

• I did meet with Red Lodge Surveying and they should have the new ColumbusSubstation surveyed in a week or so.

• We did hire a new journeyman lineman, he will be starting the 1st ofNovember.

• With fall comes more opportunities, the birds are raising havoc with the linesand I receive at least 5 or 6 calls a week about blinking lights.

• We installed 11 new services in the month of August.• There was a total of 26 outages system wide in the month of August.• We had 531 individual consumers out of power at some point in the month

of August having duration of 2885 minutes. (Please see attached breakdownsheet).


EDUCATION, SAFETY & LOSS

• Next MECA safety meeting is October 8th.• No lost time accidents to report for the month of August.

TRUCK, TOOLS & EQUIPMENT

• The digger derrick is finally finished and we plan on sending someone downto Salt Lake the first week in October.


AUGUST 2019 OUTAGE SUMMARY

Da

te

Du

ratio

n (

Min

)

Nu

mb

er

of

Cu

sto

me

rs A

ffe

cte

d

RU

S

Co

de

Ke

y

Cause of Service Interruption (RUS Designation

1730A-119)

Su

bst

atio

n

OH

/ U

RD

Cu

sto

me

r M

inu

tes

of

Inte

rru

ptio

n

08/01/19 75 1 090 Fuse & arrestor blown/lightning Roberts OH 75

08/01/19 120 1 090 Fuse blown/lightning Absarokee OH 120

08/01/19 65 2 690 Fuse blown/birds Roberts OH 130

08/01/19 90 2 490 Fuse blown/trees Edg/From OH 180

08/02/19 150 13 090 Fuse blown/lightning Belfry OH 1950



08/04/19 150 18 090 Phase burned/lightning Absarokee OH 2700

08/06/19 185 23 300 Bad primary wire Edg/From URD 4255

08/07/19 40 50 790 Consumer dig in Columbus URD 2000

08/09/19 120 2 090 Fuse blown/lightning Columbus OH 240



08/12/19 120 1 090 Secondary tripped transformer/hail Columbus OH 120

08/15/19 90 1 090 Fuse blown/lightning Edg/From OH 90

08/17/19 80 3 690 Fuse blown/birds Columbus OH 240

08/19/19 120 1 090 Fuse blown/lightning Belfry OH 120

08/19/19 220 23 300 Faulted URD cable Edg/From URD 5060

08/19/19 40 4 690 Fuse blown/squirrel Roberts OH 160

08/21/19 90 44 unknown OCR open Belfry OH 3960


08/27/19 105 20 300 Faulted URD cable Red Lodge URD 2100

08/28/19 120 1 unknown Fuse blown Red Lodge OH 120

08/28/19 195 300 300 OCR electric panel Nye OH/URD 58500

08/29/19 35 7 690 Fuse blown/birds Luther URD 245

08/30/19 60 4 690 Fuse blown/birds Belfry OH 240

TOTALS 2885 531 83625

08/15/19 150 505 000 NW Energy planned outage Nye OH/URD 75750

FOR CHARTS PLEASE SEE THE NEXT PAGE


AUGUST 2019 OUTAGE SUMMARY

RUS CODE KEY August YTD Substations

000 Transmission 1 4 2 Absarokee

090 Weather 11 44 4 Belfry

110 Planned Outage 0 0 7 Columbus

300 Equipment 4 24 0 E Rosebud

490 Trees 1 12 4 Edgar/Fromberg

500 Transformer 0 3 1 Luther

690 Animals 7 24 2 Nye

790 Public Caused 1 4 2 Red Lodge

Unknown 2 17 5 Roberts

{Member Minutes } NWE Major Event Planned All Other Totals

MONTH - August 75,750 0 0 83,625 159,375

YTD 213,100 94,925 0 264,305 572,330


Del

iver

y Po

int A

naly

sis

Fina

lA

ugus

t 201

9D

ays i

n m

onth

31

Loa

d Fa

ctor

Dem

and

Ener

gyD

eman

dEn

ergy

Purc

hase

dD

eman

dEn

ergy

Ener

gyEn

ergy

Dem

and

Ener

gykW

kWh

kWkW

h%

kWh

kWh

kWkW

hL

ine

Los

sL

ine

Los

sL

ine

Los

sL

ine

Los

sL

ast Y

ear

Las

t Mon

th2

Mon

ths P

ast

2019

2018

Aug

201

9A

ug 2

018

July

201

9Ju

ne 2

019

Abs

arok

ee1,

637

79

1,31

6

1,

854

79

4,50

4

65

.0%

-11.

7%-0

.4%

722,

134

760,

226

8.7%

4.3%

7.5%

7.7%

Bel

fry

2,85

3

1,35

1,39

4

2,92

2

1,13

2,59

8

63.7

%-2

.4%

19.3

%1,

222,

706

99

7,88

5

9.

5%11

.9%

8.1%

7.7%

Col

umbu

s2,

665

1,

048,

771

2,

705

98

3,93

7

52

.9%

-1.5

%6.

6%90

7,28

1

86

4,69

1

12

.00

2,84

0

13.2

%11

.8%

10.2

%12

.3%

E.R

oseb

ud14

1

41,7

71

15

2

46,5

31

39

.9%

-7.5

%-1

0.2%

37,3

39

41

,360

10.6

%11

.1%

11.9

%15

.8%

Edga

r1,

681

72

7,69

0

1,

656

59

0,67

4

58

.2%

1.5%

23.2

%65

9,35

3

53

8,26

8

9.

4%8.

9%8.

7%9.

3%Lu

ther

435

23

1,12

6

50

2

238,

384

71.5

%-1

3.4%

-3.0

%20

6,44

5

21

6,19

9

10

.7%

9.3%

5.5%

7.0%

Nye

1,07

5

565,

157

1,17

2

567,

426

70.7

%-8

.3%

-0.4

%52

7,45

9

51

7,54

3

6.

7%8.

8%8.

4%9.

4%R

ed L

odge

1,43

7

711,

615

1,49

2

725,

502

66.6

%-3

.7%

-1.9

%63

8,07

0

64

9,22

5

23

.40

9,62

5

9.0%

9.3%

9.4%

7.1%

Ree

d Po

int

479

22

9,11

0

54

1

225,

407

64.3

%-1

1.5%

1.6%

207,

524

206,

573

9.4%

8.4%

10.1

%9.

6%R

ober

ts1,

722

71

8,60

3

1,

744

64

2,77

4

56

.1%

-1.2

%11

.8%

670,

001

587,

688

6.8%

8.6%

6.9%

9.2%

Tota

ls14

,124

6,41

6,55

2

14,7

39

5,

947,

737

61

.1%

-4.2

%7.

9%5,

798,

312

5,

379,

658

35

.40

12,4

65

9.44

%9.

35%

8.47

%8.

90%

Not

e: A

bove

repr

esen

ts k

Wh

purc

hase

d in

form

atio

n re

ceiv

ed fr

om N

WE

base

d at

the

new

loss

per

cent

age

rate

. It

is n

ot c

lear

yet

whe

ther

they

cor

rect

ed th

e So

ld to

BEC

kW

h to

refle

ct th

e ne

w lo

ss p

erce

ntag

e nu

mbe

r or t

he o

ld lo

ss p

erce

ntag

e nu

mbe

r.C

hart

refle

cts D

istri

butio

n lo

sses

onl

y. N

WE

char

ges 2

.8%

tran

smis

sion

loss

es fo

r del

iver

y ov

er th

eir s

yste

m p

lus.

Met

erin

g ta

kes p

lace

on

the

low

side

of a

ll su

bsta

tion

trans

form

ers w

ith th

e ex

cept

ion

of C

olum

bus S

ubst

atio

n. 1

%

trans

form

er lo

sses

are

add

ed to

all

low

-sid

e m

eter

ing,

3.8

% c

umul

ativ

e tra

nsm

issi

on lo

sses

at a

ll de

liver

y po

ints

exc

ept C

olum

bus w

hich

is 2

.8%

tran

smis

sion

loss

es.

Load

Fac

tor =

It c

an b

e de

rived

from

the

load

pro

file

of th

e sp

ecifi

c de

vice

or s

yste

m o

f dev

ices

. Its

val

ue is

alw

ays l

ess t

han

one

beca

use

max

imum

dem

and

is a

lway

s mor

e th

an a

vera

ge d

eman

d. A

hig

h lo

ad fa

ctor

m

eans

pow

er u

sage

is re

lativ

ely

cons

tant

. Low

load

fact

or sh

ows t

hat o

ccas

iona

lly a

hig

h de

man

d is

set.

To se

rvic

e th

at p

eak,

cap

acity

is si

tting

idle

for l

ong

perio

ds, t

here

by im

posi

ng h

ighe

r cos

ts o

n th

e sy

stem

. El

ectri

cal r

ates

are

des

igne

d so

that

cus

tom

ers w

ith h

igh

load

fact

or a

re c

harg

ed le

ss o

vera

ll pe

r kW

h. T

his p

roce

ss a

long

with

oth

ers i

s cal

led

load

bal

anci

ng o

r pea

k sh

avin

g.

Purc

hase

dSo

ldO

wn

Use

2019

2018

2019

vs.

2018

2019

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 10

1

TO

TA

LS

YT

D

Feb

Apr

May

Jul

Sep

Dec

Lig

ht

& H

eavy D

uty

Tru

cks

25,9

1733

,182

24,3

0527

,248

26,5

3927

,368

23,5

139,

934

15,3

7311

,104

12,9

0111

,008

13,8

5914

,037

2.61

2.16

2.19

2.11

2.41

1.97

1.68

1,15

41,

352

1,52

31,

808

1,86

21,

619

1,45

98.

6111

.37

7.29

7.13

5.91

8.56

9.62

Backh

oe

s,

Tra

ilers

& C

hip

pe

r2,

758

3,69

22,

997

2,65

73,

302

4,51

32,

980

1914

93

84

1019

145.

1524

.78

999.

1133

2.15

825.

4945

1.34

161.

0852

479

1038

412

0.37

3.18

0.35

0.84

0.10

2.46

1.57

2019 F

LE

ET

TO

TA

LS

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

28,6

7536

,873

27,3

0329

,905

29,8

4131

,882

26,4

930

00

0

2018 F

LE

ET

TO

TA

LS

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

42,3

6333

,162

28,2

1427

,305

29,1

5130

,267

26,4

6926

,391

26,3

4126

,808

28,2

65

2017 F

LE

ET

TO

TA

LS

YT

DJa

nFe

bM

arA

prM

ayJu

nJu

lA

ugSe

pO

ctN

ovD

ecT

otal

32,1

7033

,652

30,9

1927

,090

26,6

5824

,831

27,0

5926

,864

28,9

4228

,665

37,6

78

2016 F

LE

ET

TO

TA

LS

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

26,4

9327

,256

24,6

3924

,154

23,8

9627

,516

26,8

7725

,866

23,6

6429

,801

33,9

64T

otal

:24

,995

319,

120

Tot

al:

32,5

4035

7,06

9

YT

DJa

nT

otal

YT

DJa

nT

otal

Tot

al:

37,2

4336

1,97

8

YT

DJa

nT

otal

Tot

al:

26,1

3823

7,10

9

Gal

lons

of G

as0

171

HPG

0.0

1.2

Hou

rs2

214

Cos

t Per

Hou

r1,

237.

211

8.8

MPG

8.0

8.2

Tot

al:

2,47

425

,374

Cos

t Per

Mile

2.52

2.17

Gal

lons

of G

as1,

169

11,9

47

Tot

al

Tot

al:

23,6

6321

1,73

5M

iles

9,39

597

,611

BEA

RTO

OTH

ELE

CTR

IC C

OO

PER

ATI

VE,

INC

.

Flee

t Man

agem

ent

Expe

nse

Tota

lsA

UG

UST

201

9

Jan

Mar

Jun

Aug

Oct

Nov

BEC

Boa

rd B

ook

| S

epte

mbe

r 24,

201

9 |

Pag

e 10

2


TRUSTEE POLICY NO. 207

1. SUBJECT: EVALUATION OF THE GENERAL MANAGER

2. OBJECTIVE:

2.1. To establish a reasonable and consistent procedure for evaluating the performance ofthe Beartooth Electric Cooperative, Inc.’s (BEC) General Manager.

3. POLICY:

3.1. At least annually, at or near the employment anniversary date of the General Manager,the Board will meet in executive session for the purpose of evaluating the performance of the General Manager.

3.1. 3.2 The General Manager shall remind the Board in writing at least 60 days in advance of the date on which the evaluation of the General Manager should occur.

3.2. 3.3 The Board members will use the TP207 evaluation form.

3.3. 3.4 The Board will summarize the results of their individual evaluations and arrive at a consensus as to the overall performance of the General Manager. The results of the evaluation will be communicated to the General Manager.

4. RESPONSIBILITY:

4.1. The Board President shall ensure that the provisions of this policy are followed.

Adopted: 11/25/2014 Attest: /s/ Julie LindgrenDavid Peterson Revised: 01/31/2017 Board President Reference: BEC Policy II-A-5 Review Date: January 2019 Attest: /s/ Arleen BoydJulie Lindgren

Secretary/Treasurer

Formatted: Level 2, Indent: Left: 0.25", Hanging: 0.25",Tab stops: -1", Left + 0.63", Left

Formatted: Indent: Left: 0.25", Hanging: 0.25", No bulletsor numbering

Formatted: Font: Times New Roman, 12 pt

Formatted: Indent: Left: 0.25", No bullets or numbering

Formatted: Indent: Left: 0.25", No bullets or numbering



TRUSTEE POLICY NO. 207

GENERAL MANAGER PERFORMANCE EVALUATION

EMPLOYEE NAME: _____________ TITLE: General Manager

EVALUATION PERIOD: _________ to _______________ DATE: ______________

Check the level that best describes the employee’s performance.

PERFORMANCE LEVELS 1 – Grounds For Dismissal 2 – Less Than Acceptable 3 – Satisfactory 4 – More Than Acceptable 5 – Excellent

OBJECTIVE 1: Board Planning, Board Controls and Policy Implementation and Administration

CHECK ONE

1. Present information and reports for Board consideration from a variety of sourcesthat includes trends, viewpoints, long-range outlooks, pertinent research data, andoptions for the Board to consider in reaching a decision.

2. Assist the Board in establishing and maintaining their role in setting policy byproviding pertinent information, comparisons with other utilities, options, anddata for the Board to review before making policy decisions.

3. Manage the affairs of the utility in accordance with Board Policy and prudentutility practices.

4. Provide staff support for BEC Board’s Committees.5. Assist Board in support, development and implementation of strategic plan.

Performance Achieved/ Comments:

□1 □2 □3 X□4

□5

Objective 2: Finance, Accounting, Information Technology and Facilities 1. Develop & implement an annual budget consistent with the BEC Business

model encompassing annual budget, multi-year capital plan, and annualoperational plan.

2. Assess and initiate potential cost-saving measures, operating efficiencies andeconomies of scale.

3. Maintain sufficient, unencumbered cash reserves to finance capital projectsand storm related and other unforeseen contingencies.

4. Deliver a clean audit.5. Support the development and implementation of multi-year financial model.6. Ensure that BEC is deploying industry best practices for its IT software,

hardware and network.7. Maintain BEC facilities to ensure a safe and productive work environment.

□1 □2 □3 X□4

□5


8. Maintain financial records and access for members consistent with By Lawsand policy provisions.


OBJECTIVE 3: Member Communication and Services □1 □2 □3 X□4

□51. Leverage multiple digital and print communication channels to deliver BEC

information to members.2. Ensure that members can access all non-confidential BEC information through

other means.3. Encourage readership through innovation and message content.4. Support and implement BEC’s Annual Meeting in accordance with By Laws.5. Engage in the business community and members throughout our service territory

to insure BEC’s presence is known and recognized.6. Ensure that member issues are responded to and resolved in a timely manner.7. Encourage member involvement in BEC committees and activities.


OBJECTIVE 4: Cooperative Budgets, Strategic Goals and Direction □1 □2 □3 □4 □5

1. Develop an annual budget to meet the needs and expectations of BEC’s membersto provide safe, reliable and affordable electricity at a fair price.

2. Ensure annual budget and revenues are tracked monthly and reported quarterly.3. Ensure annual work plan is consistent with Strategic Goals and Direction4. Ensure capital work plan is completed on time and on budget.5. Provide (for members and board) goals and rational for above items


OBJECTIVE 5: Organizational Management & Safety □1 □2 □3 □4 □5

1. No Lost Time Accidents2. Maintain a productive work environment3. Manage a workplace free from harassment or intimidation consistent with BEC

Policies.


4. Insure all employees receive adequate training to perform their jobresponsibilities and stimulate career growth.

5. Manage employee wages and benefits to insure they are competitive withinBEC’s regional marketplace.

6. Work with board to assist in develop strategy for succession planning. Identifyand address succession issues.


OBJECTIVE 6: Transmission, Distribution & Power Supply □1 □2 □3 □4 □51. Manage the operational affairs of BEC to insure a safe and reliable electric

system consistent with prudent utility practices.2. Ensure that annual capital work is accomplished.3. Ensure annual preventive maintenance work plan is completed on the system.4. Manage power supply contracts5. Manage NWE transmission contract.6. Work with board to inform members of power supply strategy and distribution

plans.


SECTION III – DEVELOPMENT PLAN

1. Provide examples of what employee is doing very well.

2. Provide examples of where the employee should improve or give a higher priority.

3. Provide examples of where improvement is needed over the next year.


SIGNATURES

Employee’s Signature __________________________________ Date:________________ (Employee’s signature only indicates a performance discussion took place on date noted)

Board President Signature:_______________________________ Date:________________

I have reviewed the job description and essential functions for this Yes□position with the employee.

Use Form ER501 for changes to wage/salary.



FINANCIAL POLICY NO. 309

1. SUBJECT: POWER SUPPLY AND TRANSMISSION AND GENERATION

2. OBJECTIVE:

2.1. To establish responsibility for the Board in developing policies and providing direction for Beartooth Electric Cooperative (BEC) to minimizemanage the costs and risk of obtaining an adequate supply of energypower and providing transportation for that energytransmission of that power to BEC’s substations.

2.2. To provide procedures and direction to the General Manager and staff for working with state, regional and national organizations on power supply and transmission issues.

3. tGENERATIONPOWER SUPPLY POLICY:

3.1. BEC will comply with requirements applicable directions for utilitiesto BEC set byforth in the National Energy Policy Act of 1992 (EPACT92).

3.2. BEC will comply with requirements applicable to BEC set forth in Montana or Wyoming law, established by the Montana or Wyoming Public Service Commissions or set forth in BEC’s power contract with the Western Area Power Administration. review and update, if necessary, an Integrated Resource Plan (IRP) following guidelines set by EPACT92 and the Wyoming Public Service Commission (PSC).

3.2.1. The IRP will be evaluated annually to determine its continued applicability and whether or not it requires revision.

3.2.2. This plan will be used to determine the least cost mix of energy resources to meet the needs of customers. Both supply side and demand side resources will be evaluated. It is designed to consider resource needs for the long term.

3.2.3. Membership involvement is considered a critical part of the development and approval of the IRP.

3.2.4. Implementation of the IRP will be carried out by the General Manager with direction from the Board. Approvals will be obtained from the PSC, as needed.

3.3. A Power Requirements Study (PRS)A 10-year load forecast will be prepared and approved by the Board each year as part of the annual budget and financial forecast process.as the official forecast of customers, energy sales and system demand.

Formatted: No bullets or numbering


3.4 During the strategic planning process the Board will review planning strategies for power supply and transmission issues. These strategies will be used by the Board and management in preparation of the annual plans and budget.

3.5 The Board and General Manager will identify specific power supply and transmission tasks and objectives for the year being planned, as appropriate.

3.3.

3.3.1.The PRS will be evaluated annually to determine its continued applicability and whether or not it requires revision.

3.4.DEach year during the strategic planning process [is this process described in another policy?] the Board will review include planning strategies for power supply and transmission issues. These strategies will be used by the Board and management in preparation of the aAnnual plans and budget. Work Plan and Financial Budget. [are these terms defined in other policies?]

3.4.1. The Strategic Plan will consider short and intermediate term energy needs and the process required to obtain them. It will also coordinate with steps necessary for obtaining long-term energy requirements.

3.4.2. The Strategic Plan and planning strategies will comply with recommendations of the IRP.

3.5. The Annual Work Plan will The Board and General Manager will ooutline specific power supply and transmission tasks and objectives for the year being planned, as appropriate.

3.6.Power supply relationships are not limited to traditional or conventional methods. Future wholesale electricity may come from a mixture of suppliers including independent power producers, other utilities or member-generation. Future relationships will be defined in an approved IRP.

4. TRANSMISSION POLICY:

Coordination will be maintained with other utilities interconnected to BEC’s transmission system.BEC will proactively manage its relationship(s) with its transmission provider(s) to advocate [is there a better word?] secure or ensure for affordable, equitable and reliable transmissions service.

5. PROCEDURE:

5.1.BEC will maintain membership in those organizations which can influence the broadergoals of public power and the specific objectives and interests of cooperatives in

Formatted: Indent: Left: 0.5", No bullets ornumbering, Tab stops: Not at 0.75"

Formatted: Indent: Left: 0.5", Hanging: 0.38", Nobullets or numbering, Tab stops: Not at 0.75"

Formatted: Tab stops: 3.76", Left

Formatted: Indent: Left: 0.25", Hanging: 0.25",Outline numbered + Level: 2 + Numbering Style: 1, 2,3, … + Start at: 1 + Alignment: Left + Aligned at: 0.19"+ Indent at: 0.49", Tab stops: -1", Left + 0.75", Left

Formatted: No bullets or numbering, Tab stops: 3.76", Left + Not at -1" + 1.13"

Formatted: Indent: Left: 0.5", First line: 0", Outlinenumbered + Level: 3 + Numbering Style: 1, 2, 3, … +Start at: 1 + Alignment: Left + Aligned at: 0.5" + Indentat: 0.85", Tab stops: -1", Left + 1.13", Left

Formatted: No bullets or numbering


Montana and the Pacific Northwest in a manner consistent with BEC objectives. BEC will actively be involvedparticipate in the leadershipthe power supply and transmission activities of those organizations.

5.2.BEC will continually investigate opportunities to form new strategic alliances which will enhance BEC’s power supply and transmission situation. its competitive position. These alliances will be developed for the purpose of obtaining mutual benefit in either generation or transmission services or supply.

5.3.The Board will maintain a Rrisk Mmanagement Ccommittee. At a minimum this committee will consist of Board members. These Board members serving on the committee will be designated as representatives to regional or state power supply organizations, as appropriate.. The Board President may appoint additional members to this committee as appropriate. The General Manager is an ex officio member of the committee. The Rrisk Mmanagement Ccommittee established under Policy No. 211 shall have at least the following responsibilities for power supply and transmission: responsibilities will be at least as follows:

5.3.1. Board members serving on the Committee Risk Management Committee will be designated ned as BEC’s representatives for regional or state power supply and transmission organizations and activities.The committee will meet at least monthly, as neededquarterly in conjunction with regular Board meetings and, more often as needed.

5.3.2. The Ccommittee will review current regional activities and regional power supply policies which may impact BEC, give directionmake recommendations to the Board for BEC’s involvement in regional organizations and evaluate potential opportunities for new strategic alliances for power supply and transmission. Board approval will be obtained as appropriate.

5.3.3. At least once a year, Tthe Ccommittee will review developments in regional power supply markets and BEC’s current and future power supply situation give the entire Board an update report on power supply activities and request action from the Board as needed.and provide an update to the Board with any recommendations for Board action.

5.3.4. As new or revised contracts relating to power supply or transmission are developed, the committee will review them in detail and recommend action on them to by the Board.

5.4. The General Manager will monitor regional power supply and transmission developments and BEC’s power supply and transmission contracts and provide relevant information and recommendations, as appropriate, to the Board and the Risk Management Committee.

6. RESPONSIBILITY:

Formatted: Indent: Left: 0.2", Tab stops: Not at 1.13"+ 1.38"


The Board shall ensure that the provisions of this policy are followed.

Adopted: 11/25/2014 Attest: /s/ Julie LindgrenDavid Peterson Revised: 02/28/2017 Board President Reference: LV BP311, BEC Bylaws Articles I, II and IV, BEC III.5.A Review Date: February 2019

Attest: /s/ Arleen BoydJulie Lindgren Secretary/Treasurer


r:,11 Verizon � �:�

( lnbox

1:15 PM

2 Messages nice job!

From: [email protected]

<[email protected]>

A V

Sent: Wednesday, September 11, 2019 10:00 AM

To: Kevin Owens <[email protected]>

Subject: nice job!

Kevin, I just rec'd my new meter a couple weeks ago and was pleasantly surprised to see the article in this month's Rural Electric explaining how to read it. Perfect timing and the info is both interesting and information. Just wanted to pass this along. Thanks, Linda

Linda Halstead-Acharya

Columbus, MT

bacha [email protected]

Home: 406.322.5262

Cell: 406.321.0693

See More


beartooth electric cooperative board of trustees …...three example rate designs: • base, demand,...

Documents