KRTA: Huge Boost in kWh Sales Underpins Cooperative Financials

Final results for the 2018 CFC Key Ratio Trend Analysis (KRTA) are in, and they show electric cooperatives providing reliable electric service to their members while keeping themselves financially strong in a turbulent growth environment.

Based on information submitted by 814 electric distribution cooperatives for the year ending Dec. 31, 2018, median equity as a percentage of assets increased to 45.62 percent in 2018 from 45.27 percent in 2017; median modified debt service coverage (MDSC) ticked higher to 1.92 from 1.82; while the median times interest earned ratio (TIER) climbed to 2.80 in 2018 from 2.57 the year before. 

Co-ops See Record-Breaking Surge in kWh Sales

In keeping with electric utilities across the nation, the typical electric cooperative posted a whopping 6.49 percent (largely weather-generated) surge in kWh sales, following a 1.02 percent drop in 2017, a 0.48 percent advance in 2016 and 1.91 percent tumble in 2015. According to the U.S. Energy Information Administration, retail electricity sales across the United States shot up by almost 87 billion kWh to 1.464 trillion kWh, or 4 percent, last year. 

During 2018, electric cooperatives also saw growth in net consumers served jump 0.60 percent versus 0.64 percent in 2017. In addition, cooperatives experienced a 0.1 cent per kWh slide in wholesale power cost sold, from 7.24 cents per kWh in 2017 to 7.13 cents per kWh, the third decline in four years.

Timely payment of electric bills stood as a priority for cooperative members in 2018. Overdue bills (more than 60 days) as a percentage of operating revenue remained at an already-low 0.10 percent. The median amount written off as a percentage of operating revenue held at 0.09 percent, exactly where it has been the past two years. 

KRTA: Keeping Members Informed for Nearly 45 Years

CFC has published KRTA—an annual report that tracks the median value of 145 financial and operational ratios for distribution cooperatives over the previous five years—since 1975.