The nonprofit electric membership cooperative this week released its second-ever installment of quarterly earnings. The cooperative’s fiscal year begins May 1, and its second quarter is the period from Aug. 1 through Oct. 31.
In that time, the company recorded revenue of $134 million and expenses of nearly $116 million. Until this year, the company has apparently not kept quarterly reports, and thus cannot provide comparative data.
“We do not have comparative (second-quarter figures) from FY 2011,” Steele said. “This is the first year that we have reported fiscal quarterly financial statements.”
Year-to-date, the company has posted net income of $16 million on total revenue of nearly $257 million and expenses of $240 million.
In the full fiscal 2011, the company posted total net income of nearly $22 million, on revenues of about $684 million and expenses of $662 million.
In this current year, Gas South, a wholly owned subsidiary of Cobb EMC, posted another $6 million loss in the second quarter, on top of a $6 million loss in the first quarter. But natural gas is used more in the colder, winter months.
The 3,200 customers of Cobb EMC in the south Georgia Pataula district saw their rates increase on Dec. 1, and their rates are expected to rise in each of the next several years to bring them up to match rates paid by the rest of Cobb EMC’s customers. Pataula customers are the only ones within Cobb EMC who are seeing rate increases this year, a company spokesman has said.
Steele said the additional revenue is unlikely to have much impact on its bottom line. Pataula makes up a tiny portion of all of Cobb EMC’s 173,000 meters, though the area does have one seat on the EMC’s 10-member board.
Cobb EMC spent $14.7 million in March 2005 to sign a long-term lease of Pataula EMC’s facilities, according to previous company reports. Pataula is based in Cuthbert, which is south of Columbus and about 90 miles from the Florida state line.
Don Barnett, a former Cobb EMC board member, told the Journal this fall that when Cobb took over Pataula, “we signed a contract with them that we wouldn’t raise their rates for five years. That was up in 2010. … They asked for help. They were in trouble and they knew it. We said, ‘we’ll do this for you.’ They had to have the approval of their membership. I think we paid their capital credits or $600, whichever was higher. We took over their operation and their system and paid off the capital credits.”