For those unable to attend the annual meeting this year, I thought we’d provide the update we shared at our meeting. Looking back to the meeting last year you may recall us talking about the strong start to the year we had in 2018. Although at that time we were only halfway through the year, I am very pleased to say the year continued much as it started and by all accounts 2018 may have been the best performance year we have ever had in our 81 years of existence.
At the beginning of each year senior staff and your board engage in a strategic planning session designed to set goals and provide a means to measure success. The result is a balanced performance scorecard which provides guidance and direction each month that we utilize to drive performance. We are very pleased to announce that in 2018 we were successful in meeting or exceeding 26 of 27 performance metrics. The balanced scorecard also comprises our mission statement which is to provide safe, reliable and affordable electric service to the members we serve. I’d like to provide some details on why we feel we were successful in this stated mission.
The first item in the mission statement is to provide a safe electric system. Safety will always be priority #1 and in 2018 we had no lost time injuries, no serious preventable vehicle incidents, and no third-party contacts. Other than 1 minor work procedure error, 2018 was thankfully another year of safe operation and we are proud to be recognized as one of the safest electric cooperatives in the state. We were also the recipients of our third consecutive award for obtaining the lowest MOD factor possible. While this distinction results in lower insurance premiums, more importantly it means each member of our cooperative family went home safe every day.
Next up is reliability and it was an exceptional year for keeping he lights on as we were successful in exceeding every metric on our scorecard. We take our results and benchmark with all other electric utilities and in 3 of our 4 reliability categories we scored in the upper quartile with the fourth scoring in the upper half. We also look to identify any problematic areas where multiple interruptions occur. Utilizing the CEMI index we identify when any member has accumulated 3 individual outages in a rolling 12-month period. We are pleased to say that at the conclusion of 2018 we had only two members on that dubious list. When members show up on this list crews are dispatched to take corrective action and we did not have any member reach 4 interruptions.
The last item on our list is the one most concerning to members, affordability. Your cooperative knows that revenue for the coop is an expense to our members and we continually seek ways to reduce expense so that our members can have stable and predictable rates. Unfortunately, with some expenses we have little if any control but I’m very pleased to communicate that at present we have no need to adjust rates or seek additional revenue. Your board has made some very sound economic decisions and currently the financial health of your cooperative is excellent.
Looking ahead at 2019 it apparent that the entire region has encountered some serious challenges. While 2019 was projected to be an even stronger year than 2018, devastating flooding severely impacted your system. We currently have approximately 800 services that are disconnected and as you would expect this has had some negative repercussions. Anchored by previous board actions, the cooperative is in a great position to weather this storm and we are confident that no rate adjustments are necessary or forthcoming. We feel confident that recovery is eminent, and as always, your cooperative will continue to serve your energy needs.