The Anza Electric Cooperative’s financial health remains strong with the final 2015-16 audit showing a $500,000 reduction in costs and debt services, according the financial report delivered to members in the latest AEC “Currents” magazine.
It also showed there was an 8 percent increase in revenues and a 5 percent increase plant value and an 11 percent increase in equity. The report was reviewed July 22 during the annual meeting in the Hamilton High School Gymnasium by AEC General Manager Kevin Short.
The annual report as prepared by Public Accountant Jarrod Bryant, from Bolinger, Segars, Gilbert and Moss, shows AEC with a balanced budget in 2016 with $21,915,616 in overall assets with liabilities set at $21,915,616. The 2016-17 annual budget will not be available until after the first of the year in 2018 when audit reports are finalized. That report will be announced during the 2018 annual meeting.
The value of AEC’s plant, assets, cash, investments, accounts receivable, and deferred charges in 2016 rose $1,825,876 from 2015. Its equities rose $442,202 from 2015 but long-term debt increased $335,645 showing $10,472,702 in 2015 and $10,914,904 in 2016.
AEC’s liabilities rose $1,237,596 in 2016.
In the report’s Statement of Income and Patronage Capital operating revenues rose to $9,771,035 in 2016 from $9,222,324 in 2015. Operating expenses increased from $8,152,013 in 2015 to $8,905,435 in 2016 or an increase of $753,422.
AEC’s Fixed Charges or interest on long-term debt dropped with $419,863 shown in 2015 and $379,513 in 2016.
The members patronage capital/margins also dropped in 2016 coming down from $942,177 in 2015 to $802,785 in 2016.
The overall audit showed that AEC financial health at the close of 2016 was the second only to the best in 2015 according to Short. Last year members received capital credits from the co-op receiving credits on their bills.
Short pointed out 78 percent of AEC members realized a rate reduction of at $2.50 in 2016 while Edison and San Diego Gas and Electric customers saw far less savings. Short showed that a Edison bill for the use of 1,000 kilowatts is $207.19 and the SDGE bill at $337.73 while AEC cooperative member bill for 1,000 kilowatts was only $163.29. Last year’s AEC rate change saw only the higher power users saw cost increases while the majority of members saw capital credit savings on their bills.
Adding to AEC costs last year was the installation of 400 miles of fiber optic cable to provide high speed internet to customers and the planning for the new Sun Anza solar array going into service.
Short the ConnectAnza internet service is almost 90 percent complete and the first phase of the Sun Anza solar project nearly complete.