The Marietta-based electric membership cooperative reported a loss of $2,832,561 on revenues of $115,982,756 and expenses of $118,815,317 for the quarter.
Year-to-date, the company reports a total profit of $13,509,729. In all of fiscal year 2011, the company saw almost $22 million in profits, but executives anticipate less this year.
As for the third-quarter revenue, income from natural gas marketer Gas South, a wholly owned subsidiary of the cooperative, accounted for 45 percent of the $115.9 million in revenue and 34 percent of the quarter’s expenses.
“Gas South had a good quarter in spite of very mild winter temperatures,” said Robert Steele, the company’s chief financial officer.
The corporation also wrote off half of its non-land investment in the Power4Georgians consortium, which aims to build the coal-fired Plant Washington. On Jan. 24, the Cobb EMC directors voted 7-2 to stop funding P4G. The company has already spent $13.5 million with P4G, and wrote off $4,306,045 of that this quarter.
Cobb EMC also paid the IRS $1.5 million for additional tax and $220,060 in interest for tax year 2008 this quarter. The IRS audited the corporation’s 2008 and 2009 consolidated tax returns and settled the audits on Dec. 9. No additional taxes were owed for 2009.
For tax year 2012, the corporation will begin filing separate tax returns for Cobb EMC and Gas South. The change is expected to allow Cobb EMC to meet the 85/15 test — meaning 85 percent of EMC’s revenue must be member-generated — to regain its exemption from federal and state income taxes. Still, Steele said it won’t affect the company’s bottom line.
“There will be virtually no dollar savings for Cobb EMC returning to tax-exempt status,” Steele said. “The taxes owed were related to Gas South activity.”
As for the company’s overall bottom line when fiscal 2012 ends on April 30, Steele predicted it will be $4 million to $5 million lower than the nearly $22 million made in FY 2011 because of warm temperatures throughout much of the year.
Cobb EMC has more than 170,000 meters and serves residential and commercial customers in Cobb, Paulding, Bartow and Cherokee counties in metro Atlanta and Randolph, Quitman, Calhoun and Clay counties in south Georgia.
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SB 469 is anit first admentemnt bill.
Pay cut for employees is absurd. I want my linemen and service teams to be rewarded for their skill and knowledge for handling power systems safely.
Did Dwight Brown tell them how to prepare the returns? I hope the 2010 and 2011 returns do not have the same mistake.
Will the Dwight Brown/Previous EMC Board Sheep show ever end?!
Dwight's civil lawsuit for the $1.8 million starts April 3rd in Judge Schusters courtroom. The man has no shame or ethics.
If it had been me, I would have went to work every day wearing a wire and made many visits to the DA and the GBI.
They have a whistleblower protection act, so fear of losing their job is not the answer. They made it easy for the management and board to steal. What was/is the payoff for those employees?
http://kingemc.com/Home_Page.html
Any thought of capital credits will be dissipated and our rates will be rising.
A pay cut for all employees of at least 15% and 25% for the executives and management should be the first consideration. Owners/rate payers should not be the first to pony up.
I don't know about everyone, but for some employees I do know that the last time they saw pay at the cut you are suggesting was anywhere from 3-5 years ago. Have you seen the nosedive the economy has taken in that time?
Go after Dwight Brown - I don't care. But don't go headhunting the employees. They have enough problems without people like you suggesting they take a heavy hit for something they had nothing to do with.
I don't know what executives and management make, but 25% is a hefty percentage as well. Without knowing their pay and their lives, I couldn't possibly know how badly that would hurt.
As for the employees - in better economic times 15% would either be doable or cause for seeking new employment. Or both.
Now...only someone entirely out of touch with the current economy would suggest employees take AT LEAST 15% pay cuts to make up for a loss that doesn't involve their job performance. Especially when some of them are also the members you think should not be the first to "pony up".
Out of touch with the economy, or too busy attacking Cobb EMC for the sake of attacking Cobb EMC. Not sure which.
http://www.broadwellforcobbemc.com