Energizing our communities... Member Owned, Not for Profit

Chairman & President Message to Members

Chairman Gordon Bone and President Chris Jones deliver their annual update on the status of the cooperative and a perspective on the future for MTEMC members.

Chris Jones, President

Chris Jones

Our most important objective is to keep your lights on in a reliable, affordable, safe manner, but we also want to support the communities with exceptional service and value for our members. This is our commitment to you. Please take the time to enjoy the video above to find out about your electric cooperative and what your membership means.

Gordon Bone, Chairman

Gordon Bone

I feel better about the cooperative today than I ever have. We’re very pleased to present our very first digital interactive annual report for our members. As you watch the videos and scroll through our site, we hope you’ll learn a little about where we’ve been this past year, but we also hope you see the bigger picture and where Middle Tennessee Electric is headed.

County Area: Cannon, Rutherford, Williamson, and Wilson Williamson County Rutherford County Cannon County Wilson County
Select a county to see your member-elected Board of Directors from each district.

Cannon County

Charlie Bowman Charlie Bowman
District 3

Rutherford County

Will Jordan Will Jordan
Vice Chairman
District 2C
David Lee David Lee
District 2B
Mike Woods Mike Woods
Secretary-Treasurer
District 2A

Williamson County

Ann Little Ann Little
District 1B
Gloria O'Steen Gloria O'Steen
District 1C
Steve Seger Steve Seger
District 1A

Wilson County

Gordon Bone Gordon Bone
Chairman
District 4C
Jim Mills Jim Mills
District 4D
Tom Purkey Tom Purkey
District 4A
Dan Smith Dan Smith
District 4B

Energizing our communities... through Involvement

MTEMC is a member-owned, not-for-profit electric cooperative. Our employees and board of directors live and work right here in the communities we serve. One of the seven cooperative principles is concern for community, and MTEMC focuses on making significant sustainable positive impacts in the communities we serve. Learn more below...

Concern for Community

While the primary mission of the electric cooperative is to deliver reliable, affordable, safe electricity, a secondary mission has always been to make a difference in the communities we serve.

In the 1930s, it was going from community to community teaching farmers and homeowners how to use electrical appliances. In the 1950s, we began working with local high schools in the Washington Youth Tour program. In the 1970s, it was developing energy conservation programs.

Recently the cooperative has focused attention on the largest community-impact effort it has ever undertaken with the formation of the Middle Tennessee Electric Customers Care, Inc. Customers Care is an avenue through which the cooperative assists worthy community causes and families in emergency situations.

Concern for community - another way the electric cooperative distinguishes itself as something more than just a power company.

Community Donations

$6.5 Million Operation Round Up

MTEMC’s Operation Round Up has awarded $6.5 million to local charities and community organizations over the last ten years. From volunteer fire departments and rescue squads to food banks, hospices and youth programs, MTEMC members have made a difference through the Customers Care Foundation. By rounding members’ bills to the next highest dollar, the foundation has turned individual resources into a community-wide benefit, essentially turning excess change into change for the better.

Project Help

Members may donate $1 or more on their monthly bills to assist others - elderly, disabled or economically challenged members - in paying their electric bills.

Energizing our communities... through Education

Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public, particularly young people and opinion leaders, about the nature and benefits of cooperation.

Educational Programs

4-H Electric Camp/4-H Electric Project

In a four-day camp on the University of Tennessee-Knoxville campus, more than 200 students participate in hands-on learning, computer training, building projects and other camp activities. The camp is a joint effort between Tennessee’s 23 rural electric cooperatives and the UT Agricultural Extension Service. In addition to the camp sponsorship, each year counties within the cooperative service area name winners who participate in the district, state and national 4-H Electric Project competition.

6th Grade Energy Projects

MTEMC encourages students to bring inexpensive, energy-related projects to school to compete in informal three-week “science fairs.”

MTEMC Group Presentations

Throughout the year, the cooperative offers programs on electrical safety and how electricity is used to audiences of all ages. For more information about MTEMC presentations, please call 615-494-1065.

Customers Care Scholarship

Customers CareEach July, 10 students from the MTEMC service area are awarded $2,000 scholarships to attend two- or four-year accredited colleges or trade schools. The scholarships, established through MTEMC’s Operation Round Up program, are based on financial need, GPA, a written essay, and community service and leadership.

Tree Wise

TreewiseEach spring, MTEMC brings an educational initiative to area students that is entirely focused on trees. Students participate in classroom activities and discussions on how to transport, plant and care for trees (as well as their importance to the environment).

Washington Youth Tour Writing Contest

Washington Youth Tour Writing Contest

Each year, high school juniors from MTEMC’s service area write an original essay about rural cooperatives to compete for school, county, area and statewide prizes. In June, winning students from MTEMC’s service area receive an all-expenses-paid trip to Washington, D.C., to participate with other finalists from around the nation.

Youth Leadership Summit

Two students from each of the 23 rural electric cooperatives in Tennessee receive an all-expenses-paid trip to the three-day summit in Nashville. Participation in the summit includes visits to the Legislative Plaza, the state Senate and House of Representatives, and a tour of the Capitol, in addition to leadership development and cooperative learning sessions.

Energizing our communities... through Energy Efficiency

Using electricity efficiently is just good business - and good for our environment. MTEMC offers numerous programs for residential, commercial and industrial members. A few of the programs are outlined below and many more can be found on our website at www.mtemc.com. We have even started sharing energy tips on our Facebook page and Twitter feed.

EPA recognizes MTEMC with award

The Environmental Protection Agency has recognized MTEMC with the 2013 Energy Star Leadership in Housing Award.

The award recognizes builders and utilities that achieve specific levels of accomplishment in promoting energy efficient construction and helping to protect the environment through a partnership with Energy Star.

“Our Green Homes Plus homes are proven to save members money on their electric bills and are better for the environment,” MTEMC Residential Marketing Supervisor Tom Moreland said. “We’re honored to be recognized with this award.”

In-Home Energy Evaluations

MTEMC offers an easy way for members to learn how to increase energy efficiency and save money - energy evaluations. Members can get started by going to mtemc.com for a quick online energy evaluation that reveals how each home uses - and loses - energy.

An in-home evaluation, available through MTEMC’s partnership with TVA, is a professional energy check-up performed by a certified evaluator. The $150 evaluation fee is reimbursed after members complete some of the recommended energy-saving steps. Evaluations can be scheduled by calling 1-877-490-9325.

Green Power Switch

Green Power SwitchThis program brings green power to the MTEMC service area, making a difference in the amount and type of energy used. Residential, commercial and industrial members can purchase 150 kilowatt-hour blocks for $4 a block, with no limit on the amount of blocks purchased. It’s an investment in power generated by cleaner sources - and just two blocks of energy purchased each month is the equivalent of planting an acre of trees in the Tennessee Valley.

Energy Right® Certified Platinum

EnergystarMTEMC’s energy efficiency plan for new homes - Energy Right Certified Platinum - gives members cash-back incentives for building more efficient homes. Homes must include proper insulation, an energy- efficient heating and cooling system, high- performance windows and Energy Star® rated appliances. Homeowners must work with a trained inspector who will do a final review of the home before certification is met. Members can contact their district Energy Services Coordinator for more information on the program.

Green Homes Plus

Green Homes PlusMembers can reap extra money-saving benefits by committing to energy efficiency with MTEMC’s Green Homes Plus initiative, which rewards members who build their homes to be environmentally friendly.

EnergyRight® Solutions for Business

Electricity is essential to the success of your business and using electricity efficiently saves you money while conserving natural resources and preserving our environment. Our EnergyRight® Solutions for Business program offers cash incentives for installing energy-saving equipment.

If your business has an electrical demand of 5,000 kW and less, you may qualify for this program. Find out more information regarding the program and access its applications at EnergyRight® Solutions, How To Get Started.

Energizing our communities... through New Technology

Touchstone Energy co-ops provide high standards of service according to their four core values: integrity, accountability, innovation and commitment to community. MTEMC works hard to provide innovative technology solutions that improve the level of service we deliver to our members.

Improving Service with Technology

Middle Tennessee Electric has invested considerable monies and energies into building and maintaining our distribution electrical grid. From the lines, poles and substations, to every computer and server, these technologies enable our employees to better serve our members and enable MTEMC to respond efficiently during an outage or disaster.

Advanced Metering Infrastructure

Energizing our communities... by the Numbers

Average Annual Price Increase over the Last Decade
Electricity 3.2%
Gas 11.1%
Eggs 7.8%
Apples 4.8%
Orange Juice 3.6%
Bread 3.4%
Source: U.S. Bureau of Labor Statistics Consumer Price Index 12-month percent change averaged from 2002 through 2012
Electricity continues to be a bargain, especially when compared to other consumer goods. Although demand and fuel prices have increased, MTEMC is always committed to providing reliable electricity while keeping members' bills affordable.
MTEMC's member growth since 1936

Annual Financial Report

  2009 2010 2011 2012 2013
Income Statement
Total Revenue 500,657,063 460,425,902 526,444,173 511,459,466 525,686,132
Power bought from TVA 400,834,024 362,338,265 419,650,460 413,906,130 414,206,693
Operations and maintenance 52,363,891 55,920,724 52,901,230 55,544,519 58,976,804
Depreciation and acquisition adjustment 15,752,482 19,501,770 18,001,530 20,669,966 21,805,900
Interest on borrowed money 3,928,893 3,628,731 3,372,864 3,089,681 2,899,218
Total Operating Expense, Purchase Power, and Debt Expense 472,879,290 441,389,490 493,926,084 493,210,296 497,888,615
Net margins 27,777,773 19,036,412 32,518,089 18,249,170 27,797,517
Principal payments on loans 4,351,303 4,975,602 4,784,522 4,145,448 3,228,690
Balance after Principal Payments 23,426,470 14,060,810 27,733,567 14,103,722 24,568,827
Balance Sheet
Assets
General funds and working capital 4,446,698 5,613,618 32,934,315 57,820,281 58,942,116
CFC certificates and other investments 4,731,888 4,731,888 5,445,238 5,615,958 5,757,590
Renewal and replacement funds 1,281,800 1,281,800 788,920 590,925 590,925
Bills due us 44,000,571 43,425,031 70,150,954 68,184,616 83,301,848
Materials on hand 6,102,929 3,635,254 3,988,214 4,050,648 3,510,796
Payments in advance 1,370,202 1,611,776 1,686,106 1,955,664 1,766,493
Electric lines and property less depreciation 332,701,237 347,144,758 350,777,397 351,141,498 359,410,368
Total Assets 394,635,325 407,444,125 465,771,144 489,359,590 513,280,136
Liabilities
Bills we owe 35,891,559 28,442,385 46,847,505 53,983,804 50,028,696
Consumer deposits 7,423,645 8,654,394 9,541,637 10,541,402 11,663,143
Accrued taxes 2,248,100 2,341,828 2,413,726 2,531,862 2,529,723
Long-term debt to RUS, CFC, and others 91,344,360 90,911,087 89,567,677 93,782,752 95,434,787
Total Liabilities 136,907,664 130,349,694 148,370,545 160,839,820 159,656,349
Net Worth
Earnings reinvested in system - prior year 229,949,888 258,058,019 284,882,510 310,270,600 325,826,270
Earnings reinvested in system - current year 27,777,773 19,036,412 32,518,089 18,249,170 27,797,517
Total Net Worth 257,727,661 277,094,431 317,400,599 328,519,770 353,623,787
Total Liabilities and Net Worth 394,635,325 407,444,125 465,771,144 489,359,590 513,280,136

Statistical Report

  2009 2010 2011 2012 2013
Statistical Information
Number of Members Served 181,778 184,097 185,905 190,750 194,770
Total Miles of Line Energized 10,253 10,324 10,393 10,470 10,562
Number of Distribution Substations 31 32 32 34 34
System Electrical Demand in Kilowatts 1,230,234 1,203,400 1,313,747 1,325,623 1,277,948
Total Kilowatt Hours Purchased by MTEMC 5,365,100,484 5,465,816,004 5,945,951,826 5,411,752,350 5,523,081,659
Cost of Power $400,834,024 $362,338,266 $419,650,460 $413,906,130 $414,206,693
Total Kilowatt Hours Used by All Members 5,190,462,678 5,243,029,507 5,581,441,597 5,211,835,138 5,386,766,372
Total Electric Revenue $489,373,973 $449,812,377 $514,741,064 $500,267,614 $514,430,391
Uncollectible Accounts 0.28% 0.23% 0.27% 0.18% 0.16%
*Times Interest Earning Ratio (TIER) 7.98 6.25 10.64 8.17 10.59
Percent of Line Losses 3.25% 4.08% 6.13% 4.59% 2.47%
Average Cost per Kilowatt Hour Purchased Power 7.47 cents 6.63 cents 7.06 cents 7.58 cents 7.50 cents
Average Cost per Kilowatt Hour to Member 9.42 cents 8.58 cents 9.22 cents 9.58 cents 9.57 cents
Average Monthly Residential Electric Bill $143.98 $132.50 $151.94 $139.65 $143.21
Plant Investment per Service $2,629 $2,718 $2,782 $2,780 $2,839
Number of Employees 371 371 377 370 370
Member to Employee Ratio 490 496 493 516 526
* TIER - Times Interest Earning Ratio - The ability of MTEMC to pay interest on its debt is determined by this ratio.
MTEMC presently is able to pay interest on its long-term debt 10.59 times.

Energizing our communities... Member Owned, Not for Profit