Balance Sheet as of June 30, 2008
ASSETS AND OTHER DEBITS
UTILITY PLANT
Electric Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER PROPERTY AND INVESTMENTS
Investment in National Rural Utilities Cooperative Finance Corporation . . . . . . . . . . . .
Investment in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in Nonutility Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Long-term Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CURRENT AND ACCRUED ASSETS
General Cash and Temporary Cash Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Materials and Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepayments and Other Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFERRED DEBITS
Weatherization Loans Receivable and Other Debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL ASSETS AND OTHER DEBITS . . . . . . . . . . . . . . . . . . . . . . . .
$88,202,614
26,347,892
$61,854,722
$910,087
2,154,989
338,320
57,068
3,460,464
4,985,687
5,131,651
606,836
295,210
11,019,384
1,160,092
$80,873,381
LIABILITIES AAD OTHER CREDITS
$498,962
$45,773,074
4,703,400
50,476,474
$2,881,378
2,738,712
12,358,449
407,600
18,386,139
645,008
$8,520,703
1,539,599
669,571
STATEMENT OF REVENUE AND EXPENSES
FOR THE YEAR ENDING JUNE 30, 2008
OPERATING REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OPERATING EXPENSES
Cost of Power Purchased from the Tennessee Valley Authority . . . . . . . . . . . . . . . . . . . .
Distribution Expense (Cost of Operating Distribution System) . . . . . . . . . . . . . . . . . . . .
Customer Accounts Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer Service and Information Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales Expense (Area Development Program) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative and General Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution Maintenance Expense (Cost of Maintaining Distribution System) . . . . . . .
Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Operating Expense and Purchased Power . . . . . . . . . . . . . . . . . . . . . . . .
ELECTRIC SYSTEM OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-operating Income Less Miscellaneous Income Deductions . . . . . . . . . . . . . . . . . . . .
NET INCOME BEFORE INTEREST EXPENSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MARGIN FOR PAYMENT OF LONG-TERM DEBT, SYSTEM ADDITIONS AND RESERVES . . . . . . . .
DON’T FORGET TO SIGN AND MAIL YOUR PROXY TO REACH OUR OFFICE BEFORE OCT. 3
Issues facing our industry
The 2008 Annual Report to Our Member-Owners
CAPITAL
Memberships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EARNINGS REINVESTED IN SYSTEM ASSETS
Beginning of Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LONG-TERM DEBT
Rural Utilities Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Rural Utilities Cooperative Finance Corporation . . . . . . . . . . . . . . . . . . . . . . . .
Tennessee Valley Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonds and Other Long-term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADVANCE FROM OTHERS
TVA Weatherization Loan Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CURRENT AND ACCRUED LIABILITIES
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Current and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFERRED CREDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL LIABILITIES AND OTHER CREDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ANNUAL REPORT
TALLAHATCHIE VALLEY ELECTRIC POWER ASSOCIATION
Tallahatchie Valley Electric Power Association
10,729,873
136,925
$80,873,381
$58,869,283
$42,699,335
1,580,189
1,823,941
272,602
31,179
1,565,862
2,421,625
2,633,918
348,390
$53,377,041
$5,492,242
331,209
$5,823,451
1,120,051
$4,703,400
The Tallahatchie Valley Electric Power Association
(TVEPA) Board of Directors and employees continue our
dedication to fulfill the growing expectations regarding the
reliability of your electric service. To accomplish this goal,
we must continue to concentrate on preventive maintenance and proper planning
for increased electrical demand and use
the latest technologies that are financially
feasible. This year, many system
improvements have taken place and much
maintenance work has been accomplished. Improved maintenance of the
rights of way has proven to be one of the
most effective means of preventing outBrad Robison
General Manager ages. We must continue this aggressive
management of the rights of way to
accomplish our responsibility to provide reliable service.
For those areas where right-of-way management is still
insufficient, we ask for your continued patience. For those
of you in areas currently being addressed, we ask that you
allow the necessary right-of-way treatments and tree trimming be performed to keep both your and your neighbors’
lights burning. This trimming must be done to provide reliable electric service to your community.
The Association has been able to complete the referenced
improvements and maintain a very healthy financial position. The success of this balancing act is due to the excellent
performance of the employees of the Association. Expenses
have been managed yet production has been maintained.
Intensive planning has ensured money is spent where it is
most needed and where it can have the greatest impact.
So how does all this impact your monthly electric bill? As
with other electric utilities, the cost of providing electric service continues to increase. TVEPA continues to abide by a
very strict budgeting process to manage expenses. However,
the purchase of wholesale power from the Tennessee Valley
Authority (TVA) is our greatest expense.
The last thing I want to do is to tell you that the price of
yet another item you desperately need is going up, but there
seems to be no way around it. The electric industry is not
immune to the increased costs that affect everyone. There
are many variables and complicated issues that take place
to allow you to light a room by flipping a light switch.
Most customers take that for granted, and as your electric
service provider, we want you to expect that convenience.
However, each of the variables involved in providing this
expectation impacts your monthly electric bill.
It all starts with the purchase and delivery of electric
power to our system through the Tennessee Valley
Authority’s transmission lines. TVA is the nation’s largest
public power provider and is the sole source of electric
power supply for Tallahatchie Valley Electric Power
Association. Therefore, cost increases that affect TVA’s
cost to provide power to TVEPA affect you, our members.
The next step is delivering electric service from TVEPA
substations to the more than 27,000 members’ homes and
businesses. This power is distributed over infrastructure
that our dedicated work force builds and maintains. The
Board of Directors and each employee are committed to
ensuring that each member is provided high-quality electric
service at the lowest possible cost.
Eighty percent of our operating expenses is used to pay
for the power we purchase from TVA. TVA’s generation
system consists of a diverse mix of fuel sources including
fossil (coal, oil and natural gas), nuclear, hydro and renewables. The cost of fuels used to generate the electricity
required to meet energy needs is skyrocketing. Let’s quickly examine what has happened to some of these fuel
sources. The Tennessee Valley area has been in a drought
condition for three years, therefore hydro generation is
down 50 percent from normal. This power had to be
replaced by purchased power from other sources at market
prices. These market prices are much higher than
hydropower costs and were even higher this summer, averaging 63 percent more than last summer. In our part of the
country, available renewable sources such as solar and
wind power are only minor contributors to TVA’s genera-
continued on page 2
Issues facing our industry
Continued from page 1
tion. Hopefully, new technologies will emerge that will
increase this portion of TVA’s generation mix. Currently,
nuclear fuel costs seem to be the most stable fuel source.
TVA expects approximately 28 percent of its generation to
come from nuclear plants in 2008 and is working toward
expanding nuclear generation capacity for the future. The
remaining generation comes from fossil fuels: coal, oil
and natural gas. Most of us are most familiar with oil
prices due to the direct effect on gasoline and diesel prices
we see at the pump. According to TVA sources, oil has
risen 50 percent from January 2008 to July 2008. We
know what a huge impact this has had. Stop for a
moment and consider what impact increases in coal prices
have on your electric bill. Coal prices have risen 128 percent in the same time frame. Also, consider that 55 percent of TVA generation is produced by coal-fired plants.
You can easily see how this greatly affects TVA and your
monthly electric bill.
In October 2006, TVA introduced a plan to allow it to
recover costs associated with the increasingly volatile
costs of generation fuel. The Fuel Cost Adjustment (FCA)
is a variable energy rate that can fluctuate each quarter and affects energy
charges for all customers. The FCA
rate can increase or decrease depending on the cost of fuels used to generate. The methods used to calculate
the FCA are complicated. In this
report, we have included an article explaining this
methodology.
One thing to remember, TVEPA does not control the
FCA charges, nor does TVEPA benefit or keep any of the
money collected for the FCA. That is why it is shown on
your bill as a separate line item identified as “Tennessee
Valley Authority Fuel Cost Adjustment.” TVA has
announced a total average increase of 20 percent in
wholesale power rates effective October 1, 2008.
Approximately 17 percent is due to the quarterly adjustment to the FCA, and the remaining 3 percent is attributed
to a base rate increase needed to fund operating expenses
and capital investments. The Board of Directors and management of Tallahatchie Valley Electric Power
Association have decided to manage our operating
expenses within our existing revenue. Therefore, TVEPA
will not benefit from either of these increases. In other
words, you will have approximately a 20 percent increase
in your bill, but all of these proceeds will be passed on to
the Tennessee Valley Authority.
While contemplating this report, I wanted to discuss
with you all the good and positive things that are under
way with your Association, because there are many.
However, this rate increase is sure to be what is most
important to many of our members. Many of you are
wondering, “What does the future hold?” There are several issues critical to our industry that could result in even
higher monthly electric bills.
I’m sure you have heard about global warming and
other climate issues. We must take care of the environment, but we must be prudent in how we accomplish
these goals. How much
more would you be willing,
or able, to pay on your
monthly electric bill to
address new, stricter provisions to the Clean Air Act that Congress will be considering? This will impact existing coal-fired plants and
impose more stringent regulations that may slow down or
stop the expansion of generation capacity with fossil
fuels, including coal. Many politicians are opposed to the
expansion of nuclear plants to generate electricity, and if
coal plants are more aggressively criticized, what shall we
Fuel Cost Adjustment...
how it w ork s
The Fuel Cost Adjustment (FCA) works by capturing the per-kilowatt-hour difference between the
amounts Tennessee Valley Authority (TVA) actually
pays for fuel and purchased power in a given quarter
and the amount that TVA expected to pay when the
baseline was set. The baseline represents the amount
of fuel and purchased power costs that TVA expects
to recover through base rates.
Before the start of each quarter, TVA compares
the forecast of fuel and purchased power costs for
the upcoming quarter to the baseline. The difference
between the forecast and the baseline is applied as
part of the FCA for the upcoming quarter, allowing
TVA to recover any difference in fuel and purchased
power costs as they are incurred.
Following the close of the quarter, the amount
that the FCA collected throughout the quarter is reconciled with the amount that should have been collected based on actual costs. Any resulting difference is carried forward in future FCA amounts.
The FCA is determined by Tennessee Valley
Authority. Tallahatchie Valley Electric Power
Association collects the FCA charges from our
members on each power bill. We then remit the
FCA collections to TVA. This is very similar to a
sales tax collection process.
do? The government estimates that demand for electricity
in the United States will increase by 40 percent in the next
20 years. This is a hot topic for politicians at the national
and state level. TVEPA and our national and state affiliate
organizations are very active in the political struggle, but
it is the responsibility of every American citizen to stay
informed and let your elected officials know where you
stand. Energy legislation is not a tool to be used for political gains but is a serious issue that affects all of us in all
aspects of our lives. The future of our great country
depends heavily on how we address these crucial issues.
On behalf of the Board of Directors and the employees
at Tallahatchie Valley Electric Power Association, we will
continue to do all we can to mitigate cost increases while
continuing to strive toward providing every member with
reliable and affordable electric service.
NOTICE OF ANNUAL MEETING OF MEMBERS
Pursuant to Article II, Section 3, of the Association bylaws,
you are hereby notified that the annual meeting of the members
of the Tallahatchie Valley Electric Power Association will be held
in the auditorium of the association’s headquarters office building
at 250 Power Drive, Batesville, MS at 2 p.m. Friday, October 3,
2008.
Action will be taken on the following matters:
1. The reports of officers, directors and committees;
2. The election of three directors of the association;
3. All other business which may come before the meeting or any
adjournment or adjournments thereof.
In connection with the election of directors scheduled for this
meeting, the following members have been nominated for directors by the committee on nominations pursuant to the bylaws:
Nominations for District l
Post No. 1
Harry B. House
Nominations for District II
Post No. 1
Robert L. Chapman
Nominations for District III
Post No. 1
Danny R. Ingram
Additional nominations for directors may be made at the meeting.
DON’T FORGET
Gene T. Standridge, Secretary
TO SIGN AND MAIL YOUR PROXY TO
REACH OUR OFFICE BEFORE OCT. 3.
TVEPA
ENERGY
FAIR
Need Help
with energy conservation for
your new or existing home
?
Come and join your friends in TVEPAʼS auditorium at
250 Power Drive,
Batesville, MS
on Saturday, Nov. 8
from 9:00 a.m. to noon
and hear valuable money-saving
tips from Energy Experts.
There will be a special
presentation at 10 a.m.
with a question and answer
session.
Door prizes,
expert advice,
informative
handouts and
energy saving
kits, while supplies last.
Donʼt miss this opportunity
to find ways to SAVE on
your electric bill.
Issues facing our industry
Continued from page 1
tion. Hopefully, new technologies will emerge that will
increase this portion of TVA’s generation mix. Currently,
nuclear fuel costs seem to be the most stable fuel source.
TVA expects approximately 28 percent of its generation to
come from nuclear plants in 2008 and is working toward
expanding nuclear generation capacity for the future. The
remaining generation comes from fossil fuels: coal, oil
and natural gas. Most of us are most familiar with oil
prices due to the direct effect on gasoline and diesel prices
we see at the pump. According to TVA sources, oil has
risen 50 percent from January 2008 to July 2008. We
know what a huge impact this has had. Stop for a
moment and consider what impact increases in coal prices
have on your electric bill. Coal prices have risen 128 percent in the same time frame. Also, consider that 55 percent of TVA generation is produced by coal-fired plants.
You can easily see how this greatly affects TVA and your
monthly electric bill.
In October 2006, TVA introduced a plan to allow it to
recover costs associated with the increasingly volatile
costs of generation fuel. The Fuel Cost Adjustment (FCA)
is a variable energy rate that can fluctuate each quarter and affects energy
charges for all customers. The FCA
rate can increase or decrease depending on the cost of fuels used to generate. The methods used to calculate
the FCA are complicated. In this
report, we have included an article explaining this
methodology.
One thing to remember, TVEPA does not control the
FCA charges, nor does TVEPA benefit or keep any of the
money collected for the FCA. That is why it is shown on
your bill as a separate line item identified as “Tennessee
Valley Authority Fuel Cost Adjustment.” TVA has
announced a total average increase of 20 percent in
wholesale power rates effective October 1, 2008.
Approximately 17 percent is due to the quarterly adjustment to the FCA, and the remaining 3 percent is attributed
to a base rate increase needed to fund operating expenses
and capital investments. The Board of Directors and management of Tallahatchie Valley Electric Power
Association have decided to manage our operating
expenses within our existing revenue. Therefore, TVEPA
will not benefit from either of these increases. In other
words, you will have approximately a 20 percent increase
in your bill, but all of these proceeds will be passed on to
the Tennessee Valley Authority.
While contemplating this report, I wanted to discuss
with you all the good and positive things that are under
way with your Association, because there are many.
However, this rate increase is sure to be what is most
important to many of our members. Many of you are
wondering, “What does the future hold?” There are several issues critical to our industry that could result in even
higher monthly electric bills.
I’m sure you have heard about global warming and
other climate issues. We must take care of the environment, but we must be prudent in how we accomplish
these goals. How much
more would you be willing,
or able, to pay on your
monthly electric bill to
address new, stricter provisions to the Clean Air Act that Congress will be considering? This will impact existing coal-fired plants and
impose more stringent regulations that may slow down or
stop the expansion of generation capacity with fossil
fuels, including coal. Many politicians are opposed to the
expansion of nuclear plants to generate electricity, and if
coal plants are more aggressively criticized, what shall we
Fuel Cost Adjustment...
how it w ork s
The Fuel Cost Adjustment (FCA) works by capturing the per-kilowatt-hour difference between the
amounts Tennessee Valley Authority (TVA) actually
pays for fuel and purchased power in a given quarter
and the amount that TVA expected to pay when the
baseline was set. The baseline represents the amount
of fuel and purchased power costs that TVA expects
to recover through base rates.
Before the start of each quarter, TVA compares
the forecast of fuel and purchased power costs for
the upcoming quarter to the baseline. The difference
between the forecast and the baseline is applied as
part of the FCA for the upcoming quarter, allowing
TVA to recover any difference in fuel and purchased
power costs as they are incurred.
Following the close of the quarter, the amount
that the FCA collected throughout the quarter is reconciled with the amount that should have been collected based on actual costs. Any resulting difference is carried forward in future FCA amounts.
The FCA is determined by Tennessee Valley
Authority. Tallahatchie Valley Electric Power
Association collects the FCA charges from our
members on each power bill. We then remit the
FCA collections to TVA. This is very similar to a
sales tax collection process.
do? The government estimates that demand for electricity
in the United States will increase by 40 percent in the next
20 years. This is a hot topic for politicians at the national
and state level. TVEPA and our national and state affiliate
organizations are very active in the political struggle, but
it is the responsibility of every American citizen to stay
informed and let your elected officials know where you
stand. Energy legislation is not a tool to be used for political gains but is a serious issue that affects all of us in all
aspects of our lives. The future of our great country
depends heavily on how we address these crucial issues.
On behalf of the Board of Directors and the employees
at Tallahatchie Valley Electric Power Association, we will
continue to do all we can to mitigate cost increases while
continuing to strive toward providing every member with
reliable and affordable electric service.
NOTICE OF ANNUAL MEETING OF MEMBERS
Pursuant to Article II, Section 3, of the Association bylaws,
you are hereby notified that the annual meeting of the members
of the Tallahatchie Valley Electric Power Association will be held
in the auditorium of the association’s headquarters office building
at 250 Power Drive, Batesville, MS at 2 p.m. Friday, October 3,
2008.
Action will be taken on the following matters:
1. The reports of officers, directors and committees;
2. The election of three directors of the association;
3. All other business which may come before the meeting or any
adjournment or adjournments thereof.
In connection with the election of directors scheduled for this
meeting, the following members have been nominated for directors by the committee on nominations pursuant to the bylaws:
Nominations for District l
Post No. 1
Harry B. House
Nominations for District II
Post No. 1
Robert L. Chapman
Nominations for District III
Post No. 1
Danny R. Ingram
Additional nominations for directors may be made at the meeting.
DON’T FORGET
Gene T. Standridge, Secretary
TO SIGN AND MAIL YOUR PROXY TO
REACH OUR OFFICE BEFORE OCT. 3.
TVEPA
ENERGY
FAIR
Need Help
with energy conservation for
your new or existing home
?
Come and join your friends in TVEPAʼS auditorium at
250 Power Drive,
Batesville, MS
on Saturday, Nov. 8
from 9:00 a.m. to noon
and hear valuable money-saving
tips from Energy Experts.
There will be a special
presentation at 10 a.m.
with a question and answer
session.
Door prizes,
expert advice,
informative
handouts and
energy saving
kits, while supplies last.
Donʼt miss this opportunity
to find ways to SAVE on
your electric bill.
TALLAHATCHIE VALLEY ELECTRIC POWER ASSOCIATION
BALANCE SHEET AS OF JUNE 30, 2008
ASSETS AND OTHER DEBITS
UTILITY PLANT
Electric Plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER PROPERTY AND INVESTMENTS
$88,202,614
26,347,892
Investment in National Rural Utilities Cooperative Finance Corporation . . . . . . .
$910,087
Investment in Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment in Nonutility Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,154,989
338,320
Other Long Term Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57,068
$61,854,722
3,460,464
CURRENT AND ACCRUED ASSETS
General Cash and Temporary Cash Investments . . . . . . . . . . . . . . . . . . . . . . . . . .
$7,424,671
Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Materials and Supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,044,375
578,807
Prepayments and Other Current Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
350,250
DEFERRED DEBITS
Weatherization Loans Receivable and Other Debits. . . . . . . . . . . . . . . . . . . . . . .
TOTAL ASSETS AND OTHER DEBITS
14,398,103
1,160,092
$80,873,381
LIABILITIES AND OTHER CREDITS
CAPITAL
Memberships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EARNINGS REINVESTED IN SYSTEM ASSETS
Beginning of Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LONG TERM DEBT
Rural Utilities Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
National Rural Utilities Cooperative Finance Corporation . . . . . . . . . . . . . . . . . . .
Tennessee Valley Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$498,962
$45,773,074
4,703,400
50,476,474
$2,881,378
2,738,712
12,358,449
Bonds and Other Long Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADVANCE FROM OTHERS
407,600
TVA Weatherization Loan Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CURRENT AND ACCRUED LIABILITIES
18,386,139
645,008
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8,520,703
1,539,599
Other Current and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEFERRED CREDITS
TOTAL LIABILITIES AND OTHER CREDITS
669,571
10,729,873
136,925
$80,873,381
STATEMENT OF REVENUE AND EXPENSES
FOR THE YEAR ENDING JUNE 30, 2008
OPERATING REVENUE
$58,869,283
OPERATING EXPENSES
Cost of Power Purchased from the Tennessee Valley Authority
Distribution Expense (Cost of Operating Distribution System)
Customer Accounts Expense
Customer Service and Information Expense
Sales Expense (Area Development Program)
Administrative and General Expense
Distribution Maintenance Expense (Cost of Maintaining Distribution System)
Depreciation Expense
Taxes
Total Operating Expense and Purchased Power
ELECTRIC SYSTEM OPERATING INCOME
$42,699,335
1,580,189
1,823,941
272,602
31,179
1,565,862
2,421,625
2,633,918
348,390
$53,377,041
Non Operating Income Less Miscellaneous Income Deductions
NET INCOME BEFORE INTEREST EXPENSE
Interest Expense
MARGIN FOR PAYMENT OF LONG TERM DEBT, SYSTEM ADDITIONS AND RESERVES
$5,492,242
331,209
$5,823,451
1,120,051
$4,703,400