COOPERATIVEStrength

2019 ANNUAL REPORTBARTHOLOMEW COUNTY REMC

®

Bartholomew County REMC

Your Touchstone Energy Cooperative

®

FOLLOW USfacebook.com/bcremc

JAMES D. TURNERCEO/General Manager

“We are committed to bettering the lives of those we serve. We believe in the strength of a thriving community, and we care about our members; they are our neighbors and our friends. Because of our personal involvement, we strive to provide the best service possible to our members.”

1

Bartholomew County Rural Electric Membership Corporation (BCREMC), headquartered in Columbus, Indiana, is a member-owned electric cooperative that has supplied electric power to its member-owners in Bartholomew County since the incorporation on May 19, 1937. Bartholomew County REMC also serves portions of Jennings, Jackson and Decatur counties.

The cooperative is wholly-owned by the members it serves and is governed by a board of directors elected by member-owners in each of the seven voting districts. There is a staff of 36 employees to serve the many residential and industrial accounts.

Bartholomew County REMC has 1,228 miles of line, serving its member-owners and 11,710 active metered services as of Dec. 31, 2019.

Bartholomew County REMC remains committed to the cooperative spirit and continually strives to go beyond the members’ expectations to provide the best electric service possible.

COOPERATIVE

Profile

ContentsCOOPERATIVE PROFILE ..........................................................1

EXECUTIVE REPORT ..............................................................2-3

STATEMENT OF OPERATIONS .............................................4-5

BALANCE SHEET ....................................................................6-7

YEARS IN COMPARISON ........................................................8-9

COMMITMENT TO COMMUNITY .......................................10-11

YOUTH PROGRAMS ............................................................12-13

PAYMENT OPTIONS ................................................................ 14

PRODUCTS & SERVICES ........................................................ 15

BCREMC EMPLOYEES ............................................................. 16

TABLE OF

22

DEAR COOPERATIVE MEMBERS:Membership in your local cooperative is a powerful thing. It means you have an electric provider you can trust to look out for your community’s best interests, not its own bottom line. That’s because Bartholomew County REMC is owned by the very members it serves. We deliver safe, reliable, aff ordable electricity for the benefi t of our members – that is cooperative strength.

Bartholomew County REMC ended 2019 strong, with $45.8 million in revenue and $2.5 million in margins for the year. We also stayed under budget on both capital and controllable expenses, and increased our equity to 60.3%.

For the past fi ve years, we have utilized a Balanced Performance Scorecard tool to monitor overall execution in member satisfaction, safety, reliability and cost control. Through collected survey information, available technology and data analysis, we can measure the results in these strategic areas. This metric-driven management technique signifi cantly improves our success to help achieve our vision – to be the best cooperative in the country!

Our average outage duration per customer was 76 minutes (excluding major events) in 2019, our best ever. Some of our members did not experience an outage within the year, as our number of outages per member decreased to .7. Our outage duration, if an outage is experienced, or average restoration time, was 103 minutes. We are certainly seeing the benefi ts of our investments over the past fi ve years in tree trimming and system grid upgrades.

Members of electric cooperatives express higher than average levels of customer satisfaction. Here’s why: Co-ops put members fi rst because you are the owners. In addition, co-ops are locally owned and operated. When members call their co-op, they are talking with their neighbors. Both of these aspects combine to make co-ops more accessible, responsive and accountable to their neighbors and community.

This was evident in our 2019 ACSI (American Customer Satisfaction Index) score, which is an industry-recognized standard. Our ACSI score came in at an 87, the highest ever! The cooperative national average is 77.

EXECUTIVE

Report

3

On the safety front, there were three OSHA recordable accidents in 2019, with no days away. A vehicle accident and a freon leak in the off ice accounted for these medical incidents. To keep our employees safe at work and equipped with the skills and knowledge necessary to perform their jobs, BCREMC provides an ongoing, comprehensive curriculum of safety and training programs year-round.

Your board of directors once again approved a refund of capital credits in 2019. BCREMC retired $409,581 from the years 1993 and 1994. Other checks sent included $323,939 of capital credits retired from Hoosier Energy. These capital credits are a return of your patronage (investment) in BCREMC and in Hoosier Energy. Your capital credits remain on the books in your name and member number until they are retired. So, you should ensure that BCREMC always has your current mailing address if you move off our lines.

With our SmartHub App, members have more information available than ever before. Download our app for account information at your fi ngertips. See your electric use, report an outage or pay your bill through the app. Search SmartHub in your app store. Members can also see a full map of current outages, available on our website.

Our commitment to community continued in 2019 through ongoing support of youth programs, community causes and promoting our safety message. BCREMC also remains a big supporter of the United Way. The total contribution to the organization in 2019 was $18,300, the highest ever! The Operation Round Up program granted $38,707 that aided 17 organizations. See pages 10-13 for full details of our community involvement and youth programs.

Bartholomew County REMC continues to make energy eff iciency a priority for our members. We have several incentive programs in place to help members better manage their energy use and lower their electric bills. In 2019, we gave over $60,000 to our residential members and $17,000 to our industrial customers through our incentive program, provided by Hoosier Energy.

At Bartholomew County REMC, we’re here for you, reinforcing our commitment to provide safe, reliable, competitively priced electricity. We embrace the cooperative strength and appreciate your support in allowing us to serve you now and into the future.

Curt BurbrinkPresident, Board of Directors

James D. TurnerCEO/General Manager

4

YEARS ENDED DECEMBER 31OPERATING REVENUES

OPERATING EXPENSESPurchased PowerOperation & MaintenanceCustomer, Administrative & GeneralDepreciationTaxesInterest & Other DeductionsTOTAL OPERATING EXPENSES

TOTAL OPERATING MARGINS

NON-OPERATING INCOME

Interest Income & Other MarginsPatronage Capital from Associated Organizations

TOTAL NET MARGINS

Residential $21,890,422Lighting $342,979Commercial $5,404,995Industrial $17,116,804EDR (Economic Development Rate)$655,005

2019 INCOMEBY RATE CLASS

STATEMENT OF OPERATIONS

5

2019 EXPENSESBY CATEGORY

2019 2018$45,876,378 $45,880,212

$31,637,837 $32,360,479$3,339,836 $3,841,581$4,002,683 $3,821,453$2,672,519 $2,636,647

$644,322 $646,456$1,076,797 $1,221,475

$43,373,994 $44,528,091

$2,502,384 $1,352,121

$291,536 $326,205$1,057,329 $1,318,168

$3,851,249 $2,996,494

Purchased Power $31,637,837Operations/Maintenance $3,339,836Taxes $644,322Interest $1,076,797Customer Service $1,004,282Depreciation $2,672,519Administrative & General $2,998,401

6

DECEMBER 31ASSETSUtility Plant

Construction Work in Progress

Accumulated Depreciation

NET PL ANT

OTHER ASSETSCapital Credit Certifi cates From Other Associations

Current & Accrued Assets

TOTAL ASSETS

EQUITIES & LIABILITIESMembership

Patronage Capital

Other Equities

Total Equities

Long Term Debt

Total Current Liabilities

Deferred Credits

TOTAL LIABILITIES & MEMBER EQUIT Y

BAL ANCE SHEET

7

2019 2018

$69,663,290 $67,269,802

$59,005 $108,787

$(22,621,054) $(21,124,683)

$47,101,241 $46,253,906

$19,319,376 $18,793,133

$6,284,230 $7,119,224

$72,704,847 $72,166,263

$474,918 $473,463

$43,168,308 $40,342,147

$384,776 $124,610

$44,028,002 $40,940,220

$20,801,671 $22,863,543

$7,594,419 $8,147,705

$280,755 $214,795

$72,704,847 $72,166,263

46.345.944.9

42.338.9

36.235.635.1

34.0

19181716151413121110

40.9

38.638.0

36.8

35.633.5

31.028.6

1,352

1,195

-648272

1,022442

1,278

1,197

NET ASSETS shown in millions of dollars

EQUITY shown in millions of dollars

OPERATING MARGINS shown in thousands of dollars

29.4

763

8

YEARS IN

Com parison47.1

19181716151413121110

19181716151413121110

44.0

2,502

OPERATING REVENUES shown in millions of dollars

45.940.7

41.8

41.742.0

39.6

38.536.2

34.8

45.9

PURCHASED POWER shown in millions of dollars

32.4

30.131.4

31.532.1

29.8

26.5

28.8

26.1

31.6

KWH SALES shown in millions of kWh

430404

410406416

398

392

380

375

412

9

19181716151413121110

19181716151413121110

19181716151413121110

1010

OPERATION ROUND UPOperation Round Up® grants awarded — from Bartholomew County REMC members rounding up electric bills to the next highest dollar — reached a grand total of $841,000 since the program started in 1997.

Round Up donations are awarded through a grant process to worthy community causes. From January through December 2019, Trustees awarded $38,707 that aided 17 organizations.

2019 OPERATION ROUND UP GRANTS AWARDED

Gary Dismore, ChairJill ForsterTammy Hege, Vice-ChairRachel Nienaber

Sheena Seger, Secretary/Treasurer Kim SpeakerLeighton Turner

Bartholomew County Humane Society Security system $3,000

BC Historical Society Windows for farmhouse $2,500BC School Supply Assistance Program School supply program $2,000Bright Start Child Care Ministry Age appropriate furnishings $2,302

Centerstone Materials for therapeutic library $1,500

Columbus Indiana Philharmonic Sheet music, folders, and instrument repair $1,100

DSI Tables and chairs for new gym $2,500East H.S. & North H.S. Food Banks Food pantry donations $1,000

Family Service, Inc. Mental health therapeutic tools $805

FOP 89 Youth Program Shop with a Cop program $1,000Hope Food Bank Food bank donations $2,000Jennings County Coordinating Council Christmas food baskets $2,500

Love Chapel Food bank and shelter supplies $5,000

Reins to Recovery Items to refurbish arena area $1,000Salvation Army Food Bank donation $4,000Southwest Fire Dept. 7 SCBA masks $3,500Sycamore Land Trust (SLT) Nature path improvements $3,000TOTAL $38,707

COMMITMENT TO

Com munity

2019 OPERATION ROUND UP BOARD OF TRUSTEES

1111

ABOVE: Whittney Loyd (left), Director of Resource Development, United Way, accepts a check from BCREMC employees Marty Lasure and Matt Hackman.

On Aug. 9, BCREMC held its annual fi sh fry and bake sale to benefi t the United Way campaign. BCREMC sold 190 pounds of fi sh in two hours and raised $3,400 for the United Way. Our cooperative bank, CoBank, generously matched the funds raised.

Bartholomew County REMC employees and directors have been United Way supporters for many years. In 2019, the total contribution to the United Way of Bartholomew County fund drive, including the fi sh fry, payroll deductions and other contributions, was $18,300.

Local Giving

Bartholomew County REMC proudly supports “Wreaths Across Bartholomew County”, organized by the Sons of the American Legion, Post 24. This initiative strives to cover all veterans’ grave markers with a Christmas wreath. The “Wreaths Across America” mission is to remember our fallen heroes, honor those who serve, and teach our children about the sacrifi ces made by veterans and their families.

WREATHS ACROSS BARTHOLOMEW COUNT Y

UNITED WAY FUND DRIVE

12

YPr

Twins Emily and Sara Law represented Bartholomew County REMC on the 2019 Indiana Youth Tour to Washington, D.C., in June 2019. The Indiana delegation of 104 students representing 34 Indiana electric cooperatives joined more than 1,800 other students from 42 other states on the Youth Tour.

Students visited the Flight 93 and Pentagon 9/11 memorials, Gettysburg National Military Park, Arlington National Cemetery,

SCHOL ARSHIPS In 2019, Bartholomew County REMC awarded two $1,500 scholarships that are administered through the Heritage Fund. The traditional recipient for the 2018-2019 school year was Amanda Wissmann, a 2019 graduate of Columbus North High School. Her intended major is neuroscience with a goal of becoming a neurosurgeon and researcher.

The second recipient, Marilu Alamo, will continue to pursue a major in biology at IUPUC.

LEFT: BCREMC Youth Tour participants were, from left, Emily Law, Coley Smith (chaperone/BCREMC GIS Technician) and Sara Law.

BELOW: Sara and Emily explore the 9/11 Tribute Museum.

YOUTH TOUR TO WASHINGTON, D.C.

the Smithsonian museums, the National Mall memorials, the National Museum of the Marine Corps and more.

Delegates also spent a day on Capitol Hill where they met with members of Indiana’s congressional delegation.

13

YOUTHPrograms

Bartholomew County REMC sent Hannah Dean to the 2019 Touchstone® Energy Camp at YMCA Camp Tecumseh in Brookston, Indiana. The campers forged new friendships, deepened their understanding of electric co-ops and electric safety, and had a lot of fun.

The information students learn about electricity could one day save their lives or the lives of others. Activities are structured to teach valuable leadership skills that students could someday use to lead our community and give students a better understanding of the cooperative world so they will see BCREMC as a future employer.

The Touchstone Energy Camp program is developed and planned by a committee of electric cooperative employees from around the state of Indiana.

TOUCHSTONE ENERGY CAMP

ABOVE: BCREMC’s Touchstone Energy Camp representative was Hannah Dean.

BELOW: Hannah does a camp activity with friends.

RECURRING MONTHLY PAYMENTSUpon establishing a login with SmartHub, we can deduct your monthly bill from your credit card, checking or savings account. Login with your account information or register at bcremc.smarthub.coop.

ONLINE OR THROUGH SMARTHUB APPSimply go to bcremc.smarthub.coop/PayNow.html to pay your bill without registering. You can pay online directly using your credit/debit card, or checking or savings account. Payments can also be made through our SmartHub app. Download our app by searching SmartHub in your app store.

OFFICE: STOP BY OUR OFFICE TO PAY.You may stop by our off ice anytime Monday through Friday during the hours of 7:30 a.m. and 4:30 p.m. to make your payment at 1697 W. Deaver Road. There is also a drop box at this location to drop off payments at any time.

OVER THE PHONE: CALL 1-844-344-4369Call our automated payment number anytime 24/7 to pay over the phone. We accept MasterCard, Visa, Discover and bank account information over the phone. Automatic payments can also be set up with the given information.

DOWNTOWN LOCATION. DROP OFF AT SALIN BANKYou may drop your payment off at Salin Bank located at 655 Third St. A drop box is located on the far right lane of the drive through, specifi cally for BCREMC payments.

USPS. MAIL YOUR PAYMENT VIA U.S. POSTAL SERVICEMail your payment with your remittance to our lock-box service located on your bill remittance or mail to P.O. Box 467, Columbus, IN 47202. Please allow time for payment to be received before the due date to avoid a late fee.

PAYMENT ARRANGEMENTSIf you are not able to pay your bill, a short term arrangement may be set up. This must be done online or in the off ice prior to the disconnect date on your bill. $50 or 10% of your total bill (whatever is more) is due when signing an arrangement. If an arrangement is broken, you will not be allowed to setup another for 12 months.

PAYMENT Options

14

MOBILE APPS FOR PHONES/TABLETSGet on-the-go access to your account information, pay your bill, see your usage, or report an outage through our mobile app for iPhone®, iPad® and also Android™ phones and tablets. Search SmartHub in your app store.

RATE OPTIONSBCREMC off ers a number of options to help members manage electric bills. Consider the time-of-use rate, levelized billing or pre-pay option.

INCENTIVE PROGRAMWe off er cash incentives for discount LED lighting, heat pumps, geothermal systems and heat pump water heaters. See our website or incentive program brochure for complete details.

SURGE PROTECTIONMeter base surge protection is available to protect surges from entering your home through power lines.

GENERLINK™Connect your generator at the meter base with this connector and control your backup power through your breaker box. No need for a transfer switch or additional wiring.

NOTIFICATIONS AND REMINDERSRegister or login with SmartHub to receive a variety of notifi cations that provide information about your account and payment activity.

LIFE SUPPORTLet us know if you have specifi c life-support equipment powered by electricity at your residence. Written and signed documentation from the doctor is required stating that loss of power would be a serious and immediate threat to the health or safety of the designated person.

CO-OP CONNECTIONSCARDShow your card at any of the participating business or pharmacy and receive the discount. It’s that easy! And it’s FREE! Cards are available at the BCREMC off ice.

MY SOLARBartholomew County REMC is excited to off er My Solar, a cooperative solar program. Invest in solar energy by buying a panel for $500 and receive the credit for what the panel produces or pay an extra 1 cent per kWh for a green energy option.

15

PRODUCTS AND Services

16

BCREMC

EmployeesEMPLOYEE POSITION YEARSTina Blankman Plant Accountant 10

Max Bode Material Control/Storekeeper 38

Jonah Brewer Apprentice Lineman 1

Randy Brumfi eld Vegetation Program Manager 5

Colton Carden Engineering Manager 6

Zach Derringer Meter Technician 2

Lisa Dyer Administrative Services Manager 9

Tim George Journeyman Lineman 1

Joby Gossett Property Maintenance/Services Tech 7

Matt Hackman VP of Corporate Services and Operations 18

Zach Haywood Network Administrator 2

Andrew Hudson Journeyman Lineman 4

Josh Jackson Mechanic 3

Kathryn Joyner Energy Solutions Specialist 6

Jordan Kelly Apprentice Lineman

TO ENRICH THE WELL-BEING OF OUR MEMBERSHIP AND COMMUNITY.

OUR Misson

BOARD OF DIRECTORSDISTRICT 1Larry Hoeltke

DISTRICT 2Dr. John D. Harker, Vice President

DISTRICT 3Dan Fleming, Treasurer

DISTRICT 4Brett Glick

1697 W. Deaver Road

Columbus, IN 47201

(812) 372-2546 - Office

(800) 927-5672 - Outage

www.bcremc.com

®

Bartholomew County REMC

Your Touchstone Energy Cooperative

®

DISTRICT 5Ron Arnholt

DISTRICT 6Curt Burbrink, President

DISTRICT 7Janet Anthony, Secretary