Reed Christensen

The annual meeting included updates on the cooperative's financial performance, growth, and future plans. The cooperative experienced exceptional growth and strong financial performance, with record revenues and margins. The cooperative is constructing a new headquarters in Rathdrum, which represents a significant investment in the cooperative's future. The cost of purchasing power has increased, and there are shortages of materials, which could place upward pressure on rates.

The 87th Annual Membership Meeting included opening remarks, the presentation of door prizes, and an annual presentation from the General Manager covering the cooperative's 2024 financial performance, operational expenses, and future energy supply needs for the Pacific Northwest. The Audit Committee Chair presented the treasurer's report, confirming the 2024 audit presented fairly the financial position of KEC. The Board Chair addressed proposed bylaw changes related to definitions of close relatives, board candidacy qualifications, and the director code of conduct. Election results were reported for contested seats, and several bylaw proposals were voted upon and passed by the membership. The meeting concluded with the adjournment after declaring election winners and amended bylaws.

The workshop reviews proposed changes to how the cooperative bills its members for electricity use. It covers the cooperative's operation on a not-for-profit basis, the role of the board of directors, and the cooperative's mission to provide exceptional service and reliable power at competitive rates. The discussion includes the utility's revenue requirements, cost classifications (fixed, energy, and demand), and the results of the most recent cost of service analysis (KOSA). The proposed rate design aims to preserve revenue neutrality while addressing rate equity among different rate classes and customers.

The General Manager welcomed attendees to the unusual annual meeting venue, attributing the format to lingering COVID-19 risks from the previous year. Discussion included operational changes adopted during 2020, such as segregated work for line crews and increased remote work for administrative staff, leading to permanent changes in office hours. Financially, the cooperative reported exceptionally strong performance for 2020, with total revenues exceeding $50 million and margins of nearly $3.5 million, excluding $2.5 million in margins from the sale of its headquarters. Detailed cost structure breakdowns were provided for every $100 in member rates. The main focus was the rationale and evaluation process for constructing a new headquarters, necessitated by insufficient capacity at the current 15-acre site to meet forecasted growth (requiring 40-45 acres). Five alternatives were evaluated, leading to the selection of building a new facility on a purchased 45-acre parcel in the Rathdrum Industrial Park for $1.8 million, which meets all long-term goals. The sale of the old headquarters to Kootenai County for $4.72 million provided immediate cash and the capital for reinvestment. The meeting also highlighted historic growth in new service connections, driven by the hot housing market in North Idaho, requiring significant investment in distribution system upgrades.

The meeting included a treasurer's report summarizing the cooperative's audit, a presentation on the cooperative's financial performance in 2019 and its response to the coronavirus pandemic, and a discussion about potential changes in how annual meetings could be held in the future. The election of directors for district 3 and district 4 was held, and the proposed bylaw changes were reviewed and declared amended.