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Vital signs: NRECA's annual summary of distribution cooperative data.

Article Excerpt
Vital Signs, first produced in 1985, is an annual analysis of the data reported by rural electric systems from the end of the previous calendar year. This year's report is based upon 2004 data from 821 distribution systems, representing 97% of all distribution cooperatives. All data is treated confidentially and no individual system data is released or published.

The 2004 operating data demonstrate that electric distribution cooperatives continue to have strong financial performance. The financial ratios are favorable and positive. Growth in sales and consumers is higher than for other utilities, while rates have been stable at a time when fuel costs are rising. Efficiency and productivity have continued to improve.

Cooperative Sales Growth

Distribution cooperatives sold 347 billion kWh in 2004, an increase of 3.6% over the prior year. Co-op sales growth was double the electric utility industry as a whole, which saw 1.8% sales growth in 2004 according to EIA Electric Power Monthly. Factors affecting the year to year change in retail electric sales include weather--which strongly impacts residential heating and cooling--and economic growth, which drives commercial and industrial sales. Most cooperative loads are highly residential and are therefore more sensitive to weather conditions.

During 2004, 330 cooperatives reported kWh sales growth of more than three percent; 294 cooperatives experienced sales growth of between zero and three percent; and 197 cooperatives reported a decline in kWh sales for the year.

Strongest Sales Growth

The map below shows the co-ops that had sales growth of 3% or more. The Southeast had strong sales growth due to a colder than average winter following on...

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