2004 Annual Report

Highlights

		2004		2003	% Change
CONDENSED FINANCIAL DATA (1)
Operating Revenues before Discretionary Rate Credits	$	328,608,787	$	259,277,617	26.7
Discretionary Rate Credits	$	13,584,545	$	14,348,248	-5.3
Operating Revenues, net of Discretionary Rate Credits	$	315,024,242	$	244,929,369	28.6
Operating Expenses	$	294,816,735	$	231,086,651	27.6
Operating Margins, before Fixed Charges	$	20,207,507	$	13,842,718	46.0
Fixed Charges	$	7,959,378	$	7,285,688	9.2
Nonoperating Margins	$	1,336,416	$	617,095	116.6
Net Margins	$	13,584,545	$	7,174,125	89.4
Total Assets	$	246,653,099	$	191,555,428	28.8
Long-term Debt	$	102,699,723	$	92,008,931	11.6
Patronage Capital and Contributed Capital	$	61,769,436	$	42,537,164	45.2
FINANCIAL RATIOS
Total Equity (%) (2)		20.17		15.73	28.2
Current Ratio		1.47		1.72	-14.5
Debt Service Coverage Ratio		2.53		2.17	16.6
Debt/Funds Available for Debt Service		4.45		5.20	-14.4
Equity/Total Capitalization (%) (2)		30.15		24.44	23.4
Net Plant/Net Debt		2.75		2.85	-3.5
OPERATING STATISTICS (1)
Energy Sales (MWh)		5,924,320		5,166,745	14.7
Energy Sales to Members (MWh)		3,056,724		2,854,000	7.1
Energy Sales to Nonmembers (MWh)		2,867,596		2,312,745	24.0
Member Peak Demand (MW)		872		711	22.6
Member System Load Factor (%)		39.91		45.97	-13.2
Energy Generated (MWh)		1,429,765		1,186,177	20.5
Energy Purchased (MWh)		4,510,679		4,061,379	11.1
Gas Purchased – GSEGC (MMBtu)		10,775,951		8,805,400	22.4

(1) Power sales to the ERCOT loads of the five new members began on July 1, 2004.

(2) Total Equity includes accumulated comprehensive losses of $12,015,000 and $12,400,000 for 2004 and 2003, respectively, related to cash flow hedges.