Board Briefs

•    Federated Insurance completed a loss-analysis report in March 2022.  The positive report may allow for a reduction in our insurance premium.
•    Supply chain challenges continue to cause minor issues for the cooperative.
•    Inventory was completed, with an adjustment of less than half a percent.
•    Kilowatt-hour sales for March 2022 were 1.69% under budget, while purchases were 3.23% over budget.
•    Resolutions of Appreciation honoring former directors, Kenneth Arrington and Roger Trent were approved.
•    Construction crews built one hundred twenty-nine (129) new work orders (including twenty (20) services added and fourteen (14) services retired) for April 2022.

•    President Cherry presented information concerning the current status of Grayson RECC’s long-term debt and current blended interest rates.  Grayson has not added to its long term debt portfolio since May 2020.
•    Information was presented regarding new legislation concerning sales tax exemption.   Additional information and guidance is expected from the state later this year.
•    Grayson RECC employees have worked 489,418.5 hours without a lost-time accident.
•    Kilowatt-hour sales for February 2022 were 3.2% over budget while purchases were 1.99% over budget.  TIER for February 2022 was 4.23%.  Compared to February 2021, kWh sales and purchases have increased by 22.86% and 23.02%, respectively (largely due to addition of Horizon Industrial load).

•    Director Jimmy Whitt (Elliott County) was presented with a certificate for completion of the NRECA Director’s Gold Certificate.
•    Kilowatt-hour sales for the month of January were 6.64% over budget and purchases were 9.91% over budget.  The monthly TIER for January was 14.25.  
•    Grayson RECC employees have worked 483,073.5 hours without a lost time accident.
•    A nominating committee met to fill the obligations of cooperative Bylaws to fill the vacated seat in Rowan County.  The committee nominated member, Danny Mabry.  
•    Off ROW Trees continues to be the top cause of outages on our system.

•    Kilowatt-hour sales for the month of December were 11.12% under budget and purchases were 2.16% under budget.  The monthly TIER for December was -.84.
•    2021 Financial Review:  Revenue was 1.28 million above budget, Purchase Power was 1.62M over budget and Operating Expenses were 1.42M under budget.   End of the year TIER was 5.94, and improvement from 2.59 in 2020.
•    Sitting Rowan county director, Roger Trent, is not seeking re-election.  Director Trent has served on the cooperative’s board of directors for the past 28 years.  Mr. Danny Mabry was nominated to serve for Rowan County by the appointed Nominating Committee.  
•    Grayson RECC employees have worked 476,636.5 hours without a lost time accident.
•    Fifty-six (56) new memberships were approved and sixty-seven (67) memberships were retired.

•    Kayla Webb was seated as a board of director representing Greenup and Lewis counties.
•    President Cherry gave a report on the new cryptocurrency mining facility located in Elliott County that went on service in December of 2021.  
•    President Cherry reported that the fuel adjustment charge (a pass-through charge from power supplier, East Kentucky Power Cooperative) will be substantially higher on members’ future electric bills which members will begin receiving in March.
•    The 2022 Annual Meeting of Grayson RECC will be held on Thursday, May 12 from noon until 5 p.m.  We will continue to utilize the drive-thru format.
•    Grayson RECC employees have worked 471,051.5 hours without a lost time accident.
•    YTD, Sales have decreased by 1.16% while purchases have decreased by 3.83% compared to 2020

•    The FAC (Fuel Adjustment Charge) significantly increased from EKPC (East Kentucky Power Cooperative) resulting in a substantial increase in our purchased power bill.  This will essentially effect our members’ bills with the increase likely occurring on the February bill.
•    The 2022 Capital Budget was approved.  The Work Plan Projects totaled $4,953,274 with vehicles totaling $435,134 and capital projects totaling $409,326.
•    The 2022 Annual Meeting timeline was approved with Annual Meeting being scheduled for May 12th.
•    Bylaw changes were approved restructuring the number of board seats representing the six counties of the Cooperative.
•    Kilowatt hour sales for the month of October were 3.92% under budgets while purchases were /21% under budget.  YTD sales continue to run less than 2020, while purchases have increased by .22%.  
•    Grayson RECC employees have worked 464,504.4 hours without a lost time accident as of November 30, 2021.

•    The vacant Board of Director’s seat representing Greenup Co., due to the passing of Billy E. (Eddie) Martin, was filled for the remainder of the term by the appointment of Kayla Webb.  
•    President Cherry discussed plans to utilize financial resources from CFC (Cooperative Finance Corporation) to facilitate a comprehensive financial plan for the cooperative.
•    The September financial report showed both kilowatt-hour sales and purchases were below budget at 5.41% and 4.98% respectively.  Margins were $469,649.28 and the TIER was 9.20.  YTD, sales are 1.19% less and purchases .26% more than 2020.
•    Number of hours without a lost time accident is currently at 458,439 hours

•    Grayson RECC Annual Financial Audit Report was presented by Joe Legal of Jones, Nale & Mattingly, PLC for the June 1, 2020 through May 31, 2021 time period.  The audit of financial records of the cooperative were found to be in good order with no deficiencies.  The report was approved unanimously by the board of directors.
•    East Kentucky Power Cooperative received approval on the current rate increase.  It becomes effective on October 1, 2021.  This increase will raise our average members’ bill by approximately 3%.  The increase will begin with the November billing statement.
•    Kilowatt-hour sale for the month of August were 1.27% over budget and purchases were 3.37% over budget.  Compared to August 2020, sales increased 3.43% and purchases increased 3.24%.
•    An update was presented on the recent network outage effecting the main office.  The Grayson RECC billing and payment system was unavailable as well as the phone system into the main office.  Restoration was completed upon locating the cause of the outage and mitigation plans are underway to prepare for any future network outages.
•    Cooperative employees have worked 450,988 hours as of September 30, 2021 since the last lost-time accident.

•    Approved the Mutual Aid Agreement with Kentucky Electric Cooperatives.
•    Received the right-of-way portion of the FEMA disaster plan agreement.  Our 75% of the federal share is $1.544 million.  The state portion is 13% or $255,000.  Other storm expense agreements should be forth-coming.
•     President Cherry provided copies of the Cooperative Finance Corporation’s Key Ratio Trent Analysis report to each director and discussed the information from the report.
•    The Engineering Department released one hundred thirty-one (131) prints consisting of five thousand, six hundred eighteen (5,618) feet of primary line and three thousand, three hundred twenty-four (3,324) feet of service wire.
•    Grayson RECC employees have worked 444,983 hours since the last lost-time accident.
•    Kilowatt-hour sales for the month of July were 10.17% under budget.  Purchases for the month of July were 8.06% under budget.  Line loss for July was 4.55%.  July margins were $7,162,571.98. Our TIER for the month of July was 128.33.  Compared to July 2020, our sales are down 10.34% and our purchases decreased 9.72%.  YTD, Sales are 2.22% greater and purchases 1.65% greater than 2020.

•    Just under $7.6 million in damages was recently submitted to FEMA from the February ice storm.  Grayson RECC is eligible to receive 7% in reimbursement or approximately $6.6 million.
•    Supply chain issues and cost increases due to COVID-19 were discussed.  Across the board, a 20% increase on materials has been seen.
•    Sherry Buckler was appointed as the alternate contact to all regulatory agencies in President Cherry’s absence.
•    Our power supplier, EKPC is awaiting final approval by the Kentucky PSC concerning their rate case application.  
•    Federated Insurance completed their annual safety and loss assessment with no major findings.   A preventive maintenance program with Grayson’s OCRs and voltage regulators were recommended.
•    Kilowatt-hour sales for the month of June were 2.04% over budget while purchases were 3.43% over budget.  Year-to-Date, sales have increased 4.81% and purchases 3.95% compared to 2020.
•    There were no lost time accidents to report in the month of July, 2021.  Grayson RECC employees have worked 438, 610 hours without a lost-time accident.
•    Board of Directors Chairman, Harold L. Dupuy was nominated to serve out the one-year term as director on the EKPC board of directors vacated due to the death of former director, Billy E. (Eddie) Martin.

• Announced the retirement of long-time employee, Roger Kitchen, Warehouseman.  
• Approved the Financial & Statistical Report for May 2021.  Kilowatt-hour sales for the month of May were 6.09% under budget and purchases were also under budget at 3.19%.  TIER for May was 1.84.  A -3.00 TIER is projected based on budget as of May 2021.
• Construction built 102 new work orders for the month of June.
• There were no lost time accidents reported for the month of June and as of June 30, 2021, Grayson RECC employees have worked 430,816 hours without a lost time accident.
• Approved 111 new memberships and retirement of 121 existing memberships
• Wrote off $6,912.49 in bad debts and turned them over for collection.

• Financial Report for April 2021 shows:  Sales were 4.12% over budget and purchases were 5.21% over budget for the month.  April margins were $65,192.61 and TIER was 2.11.  Compared to April 2020, sales increased 4.83% and purchases increased 4.28%.  YTD, sales for 2021 are 1.94% greater than 2020 and purchases have increased 2.63%
• Jones, Nale & Mattingly were named as auditors for 2021.
• A report was given on the RF AMI metering system and the valuable information it provides to the cooperative and our members.  In May, 27 meters were found as “lost” on the daily report with most of these outages restored before the member realized there was an outage.  The new system also discovered loose connections at the transformer, bad transformers and theft of service that were able to be addressed before problems occured
• There were no lost time accidents in the month of May and Grayson RECC employees have worked 424,201 hours as of May 31, 2021, without a lost time accident.
• Grayson RECC Board of Directors approved 119 new memberships and retired 102 existing memberships for May 2021.
• Board reviewed Policy #523 – Employee, Director and Legal Counsel Loan Program.