NewsCenter
Arc
2007 Report to Members
Randall Pugh,
President/CEO

We Don't Just Say We're Here to Serve, We Do It

At Jackson EMC, we don't just talk about customer service as a priority, we put it into action. Many businesses say customer service is their first priority, but rarely back up their words with actions. Customer service is more than lip service for Jackson EMC, and it's been that way since our founding in 1939.

For many people, good customer service may vary, depending on the individual and the situation. For some people, it's shorter lines in the grocery and for others it could be user-friendly Web sites. We understand there's no "one size fits all" way of service, that's why we specialize in making every aspect of our business one where service comes first. Whether you're calling a customer service representative or depending on our line crews for outages, we've undergone the necessary training to be sure your needs are met.

On the Line

In 2006, we answered 470,070 customer service calls, with 66 percent answered in less than 10 seconds. Our customer service representatives undergo professional customer service training, focusing on efficiency, quality control and accountability. Our representatives have to know everything that goes on in the company. By keeping up with these details, they're able to answer a variety of members' questions, and training ensures that the answers are accurate.

Like our customer service representatives, our line crews and field service representatives are also on call. Outage repairs, meter maintenance, power line maintenance and much more are all services members expect to be done quickly. Our crews undergo operation and safety training to ensure we're serving our members while also working safely.

No matter how you define service, know that we're working internally and externally to deliver reliable, personal service that we established nearly 70 years ago. Our service territory has expanded from our rural beginnings to include booming metropolitan areas; however, our commitment to service has remained unchanged. At Jackson EMC, we put customers first, so no matter how many members we have, our service is continuously held to a higher standard.

Growth

Your community has probably changed in just a few years' time. People and industries are discovering the beauty and convenience that our northeast Georgia communities have to offer. In March, we reached the milestone of serving 200,000 meters. It took us over 50 years to reach 100,000 meters from our beginning in 1939, and today that membership has doubled in size. To meet these growth needs, Jackson EMC responds by providing the resources to ensure our members receive reliable, affordable electricity.In 2006, we upgraded 42 miles of existing wire. We rely on 71 substations for delivering power into local neighborhoods.To accommodate our growth and ensure reliable service, we increased capacity at two existing stations. Jackson EMC added 365 miles of line and now has 13,009 miles of energized wire throughout our 10-county service territory.

Technology

We believe in exploring new technology to benefit our membership, especially if it allows us to significantly improve efficiency and customer service. This year, Jackson EMC began a project to study the benefits of Automated Meter Reading (AMR). AMR allows us to retrieve meter information remotely, rather than manually. In addition to improving service and meter reading efficiency, other benefits are associated with AMR such as better reporting during an outage caused by a storm and transformer loading data. Our study will run through 2007, and we'll keep you posted on our findings.

Communication

We believe communication is a vital part of our relationship with our members, and we're committed to making improvements to be sure our members have access to information that's user-friendly and easy to understand. In 2006, we conducted a Communications Audit to get members' feedback on our communication efforts including our Web site, Jemco News, brochures and advertising. Members provided valuable feedback to help us make decisions about two redesigns – our Web site and Jemco News.

This Web site was redesigned this spring. Jemco News' redesigned issue hit mailboxes in June and encompassed members' requests for shorter articles, brighter colors and easier-to-read type, among other valuable suggestions.

Living Green
We're Charging It!

We're excited about our latest project, which supports our commitment to the environment and studying new technology. Jackson EMC is the first electric cooperative to convert a Toyota Prius into a plug-in hybrid electric vehicle, thanks to our participation in a national research project with the Cooperative Research Network® (CRN). Plug-in Hybrid Electric Vehicles (PHEVs) use a combination of electricity and gasoline and can get over 100 mpg around town.

The car works like a normal hybrid on long trips. A PHEV can be plugged in at home and charged in approximately four hours at a minimal cost of about 50 cents a day. We have a small fleet of hybrid vehicles and plan to use our experience with this conversion to determine how the car's performance will fare if used in more of our vehicle fleet. We're happy to be among the first utilities to take part in this two-year study on how PHEVs can help us use less fuel – saving money and the environment.

Quality Control, Efficiency and Accountability: Customer Service in Action

Brent Cochran, Contact Center supervisor, understands the value and importance of delivering dynamic service to our membership. "We're focused on delivery of customer service through efficiency, quality control, and accountability," says Cochran. Cochran attributes Jackson EMC's continuous improvement in customer service to listening to the customer and creating a strong network of internal customer service support. "Every employee at Jackson EMC contributes to customer service, and it's important to maintain the sense that we all represent something bigger than just our job title."

In the past year, the Contact Center received nearly half a million calls and answered 96 percent of the calls received, with 70 percent of the calls answered in less than 30 seconds. The rating, as compared in the American Customer Satisfaction Index (ACSI), is higher than that of such industry leaders as Coca-Cola, Publix, FedEx and Wal-Mart.

While the quality of customer service at Jackson EMC is exceptional, Cochran always sees room for improvement. Jackson EMC recently implemented automated outage management software to help manage the high call volumes during an outage. The system takes the caller's information and logs an outage report automatically. Next year, the cooperative will be focusing on implementing a quality control program which will regularly monitor calls at random. The program will help ensure consistency in the way we handle our customers' requests.

Being a member of a cooperative certainly has its benefits, but the perks include more than a margin refund check at the end of the year. The cooperative's not-for-profit business plan cultivates a relationship between members and the cooperative. As a not-for-profit electric cooperative, Jackson EMC is member-driven and focuses on providing the highest quality of customer service.

A cooperative relationship is unique, and we pride ourselves on living up to our members' expectations each day. A typical corporate business model is driven by profit and usually places priority in meeting the needs of the stockholders. At Jackson EMC, our members are our owners and we answer to them.

Knowing we're owned by the members we serve drives us to continue improving. We're never satisfied, and each day we come to work with a sense of pride knowing we're putting our members' needs first.

Randall Pugh
President/CEO

 

Jackson Electric Membership Corp. Balance Sheets

Assets

2006

2005

Utility Plant

Electric Plant in Service - At Cost

$647,834,514

$601,785,922

Construction Work in Progress

16,957,560

22,472,503


 


Gross Utility Plant

664,792,074

624,258,425

Accumulated Provision for Depreciation

(146,545,637)

(131,879,187)





518,246,437

492,379,238

Other Property and Investments

Investments in Associated Organizations

79,861,018

76,345,065

Restricted Funds

63,881,952

39,670,910


143,742,970

116,015,975

Current Assets

Cash and Cash Equivalents

9,260,881

24,758,440

Accounts Receivable (Net of Accumulated Provision for Uncollectibles of $1,306,500 in 2006 and $1,522,300 in 2005)

19,631,762

19,993,957

Materials and Supplies

12,806,948

12,205,475

Other

3,602,689

2,641,936


45,302,280

59,599,808

Deferred Debits

2,173,778

4,856,723

Total Assets

$709,465,465

$672,851,744


 
 

Equities and Liabilities

2007

2006

Equities

Membership Fees

$2,390,615

$2,261,720

Patronage Capital

224,609,827

214,947,645

Other

528,718

492,499


227,529,160

217,701,864

Long-Term Debt

360,051,748

324,463,411

Other Long-Term Liabilities

Accumulated Provision for Postretirement Benefits

3,244,057

5,493,903

Current Liabilities

Mortgage Notes - Current Portion

8,673,000

7,301,000

Accounts Payable

28,757,331

28,255,294

Consumers' Deposits

6,913,775

6,598,607

Other

11,558,316

9,514,690


55,902,422

51,669,591

Deferred Credits

62,738,078

73,522,975

Total Equities and Liabilities

$709,465,465

$672,851,744

   

Statements of Revenue and Patronage Capital

2007

2006

Operating Revenues

$393,117,352

$404,454,712




Operating Expenses

Cost of Power

299,158,952

299,027,325

Distribution Operations

10,165,344

10,424,287

Distribution Maintenance

11,781,461

12,580,721

Consumer Accounts

11,638,100

11,629,102

Customer Information and Sales

7,490,519

6,591,377

Administrative and General

8,670,056

8,036,731

Depreciation

20,945,097

 19,310,877


369,849,529

367,600,420

Operating Margins Before Interest Expense

23,267,823

36,854,292

Interest Expense

19,944,063

18,270,179

Operating Margins After Interest Expense

3,323,760

18,584,113

Nonoperating Margins

6,602,467

5,680,320

Generation and Transmission Cooperative Capital Credits

3,497,906

3,368,173

Other Capital Credits and Patronage Capital Allocations

427,866

465,468

Net Margins

13,851,999

28,098,074

Patronage Capital - Beginning

214,947,645

190,879,045

Retirement of Patronage Capital

(4,189,817)

(4,029,474)

Patronage Capital - Ending

$224,609,827

$214,947,645

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