A Message From Our Chairman and President

In 2016, MEAG Power saw bright lights turned on repeatedly, as our communities and the State of Georgia focused on what matters most.

The relationship between MEAG Power and our 49 Participant communities is a fundamentally positive energy partnership. MEAG Power provides asset strength and economies of scale, while our Participants provide professional,responsive local utility service. The result is public power at its best — low-cost, reliable electricity to power hometown growth. This partnership has existed for over 40 years, and during that tenure we have experienced a multitude of successes and addressed important challenges.

Record-Setting Nuclear Plant Performance One of the notable successes in 2016 was the performance of our nuclear facilities at Plants Hatch and Vogtle, which each produced utilization, energy production and refueling outage records. MEAG Power shares ownership of these plants with Georgia Power Company (GPC), Oglethorpe Power Corporation and the City of Dalton. The capacity factor at Plant Hatch was 93.2% in 2016, surpassing a record set in 2014. It further set another record, successfully completing a refueling outage in just 25 days and 19.75 hours, the shortest in the history of the facility.

Plant Vogtle Units 1&2 posted similar performance. The facility achieved a record capacity factor at 96.4% for the year, surpassing its record set in 2010, and notably Unit 1, itself, had a 100% capacity factor for the year. As with Plant Hatch, Vogtle attained a refueling outage record of just 22 days, a record not just for the plant, but for the entire Southern Nuclear fleet.

Advantage: Diversified Fuel Portfolio MEAG Power has a track record of being successful in managing our diverse fuel portfolio. As the price for natural gas reached all-time lows in 2016, we were able to use our combined cycle facility to significant advantage in providing economical power, while also creating opportunities for the sale of excess power into the wholesale market, helping drive down costs to our Participants. When advantageous, we made economical off-system energy purchases that allowed us to augment the diversified energy we provided to our Participants.

For much of 2016, our combined cycle, natural gas facility dispatched at a lower cost than our coal resources. Having the flexibility to switch to the most economical fuel depending on the current market pricing dynamics is a benefit enjoyed by MEAG Power and its Participants.

A further advantage provided by MEAG Power to its Participants is its non-emitting generation portfolio. MEAG Power delivered energy in 2016 that was 69% emissions-free. Despite the drought experienced in 2016 in Georgia, the output of hydro energy that MEAG Power delivered to its Participants from the Southeastern Power Administration (SEPA) dams increased 2.5%. MEAG Power achieved a strong position yet again, making it some of the cleanest energy in the region. We ended the year with 7% delivered energy from the SEPA hydro resources along with 62% from our nuclear facilities. Not only does this high percentage of non-emitting resources position our Participants well when it comes to the potential impact of future environmental regulations, but it also strongly positions our Participants to attract the new wave of corporate prospects, who increasingly have sustainability goals that this portfolio helps achieve.

Controlling Cost Increased efficiency and productivity are always priorities at MEAG Power as we have successfully worked to keep our average wholesale cost per kWh very competitive. In fact, over the years, we have consistently delivered wholesale energy below regional cost averages. This focus was reflected in 2016, with operating costs falling well under budget. Additionally, we presented our Participants with one of the largest year-end settlements ($47.4 million).

Helping to reduce and offset the cost of electricity to our Participants in 2016 were MEAG Power’s efforts to identify wholesale power opportunities in other parts of the country. By taking advantage of new wholesale opportunities up the Eastern seaboard, significant value was achieved versus the Southeast market. Moreover, in March 2016 we proactively restructured a financing arrangement on our coal facilities to further capture value and lower cost to our member communities.

MEAG Power continues to look for cost savings opportunities as reflected in our 2017 Annual System Budget, which reflects a 4.2% decrease in the overall system as compared to the 2016 budget.

We also added financial strength with the arrival in January 2017 of MEAG Power’s new Senior Vice President and Chief Financial Officer, Edward Easterlin. Edward was most recently Vice President and Chief Financial Officer at Omaha Public Power District. His expertise and experience in a wide range of disciplines are solid additions to our finance and accounting departments as well as our executive team.

More New Business and Company Expansions One area in 2016 where our communities found widespread success was in economic development. The Georgia Department of Economic Development reported that MEAG Power Participants garnered a large share of the new business and expansion announcements that were made during the year. Enterprises involved in manufacturing, food processing, healthcare, agribusiness and more made decisions to obtain or expand the electric power they receive from our member community-owned utilities. The resulting commercial investments that occurred as new facilities were built and current sites expanded meant more jobs and more local revenue as our Participants welcomed and applauded these hometown businesses.

Power of Partnership Back-to-back storms brought an estimated $100 million in property damage to South and South Central Georgia in early 2017. MEAG Power communities Albany, Adel, Camilla, Crisp County, Doerun, Sylvester, Thomasville and Quitman are in the counties the state declared as a national disaster area. The response to this challenge, however, was admirable. With Electric Cities of Georgia coordinating, more than 20 of our Participant communities — some more than 100 miles away — packed up crews and equipment to lend a helping hand, restoring power and clearing roadways. And while total recovery is still a challenge within these communities, the lights were brought back on, and the strength of a collective group of communities shone brightly.

Vogtle Expansion Update Despite significant construction milestones having been achieved with respect to the Vogtle Units 3&4 Project during 2016, there has been a significant legal development which may have a material impact upon the Project.

On March 29, 2017, the Contractor filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code. GPC, for itself and as agent for the other Vogtle Co-Owners, has entered into a short-term temporary agreement (the “Interim Assessment Agreement”) with the Contractor, dated as of March 29, 2017, to provide for a continuation of work with respect to Vogtle Units 3&4. On March 30, 2017, the bankruptcy court approved the temporary agreement, which will expire, unless extended, on April 28, 2017.

The specific details of the Interim Assessment Agreement are discussed in the Notes to Consolidated Financial Statements section of this report. While GPC, on behalf of the Vogtle Co-Owners, is working to provide for a transition that will allow work to continue on Vogtle Units 3&4, GPC, along with the other Vogtle Co-Owners, also is undertaking a full-scale schedule and cost-to-complete assessment to determine the impact the Contractor’s bankruptcy filing will have on the construction of Vogtle Units 3&4. MEAG Power does not believe that the current scheduled in-service dates of June 30, 2019 for Vogtle Unit 3 and June 30, 2020 for Vogtle Unit 4 appear to be achievable. MEAG Power intends to work with GPC and the other Vogtle Co-Owners to determine future actions related to Vogtle Units 3&4. GPC has stated that it also will be working with the Georgia Public Service Commission in regard to this same determination.

MEAG Power will continue to monitor and evaluate developments related to Vogtle Units 3&4 and will endeavor to undertake a course of action that MEAG Power believes will advance the long-term interest of MEAG Power, JEA, PowerSouth and the Vogtle Units 3&4 Participants. GPC has stated that it will continue to take every action available to it to hold Westinghouse and Toshiba accountable for their financial responsibilities under the EPC Contract and the Toshiba Guarantee.

Looking Ahead U.S. Environmental Protection Agency (EPA) regulations have been ongoing challenges for our industry, especially the Clean Power Plan. In February 2016, the U.S. Supreme Court stayed the Clean Power Plan to let the lower court consider arguments. On November 11, 2016, Donald Trump was elected President, and as he formed his governing team, including Scott Pruitt as Administrator of the EPA, the Trump Administration’s desire to reduce government intervention and rein in regulations has brought us to a crossroads lined with optimism.

As we face the challenges that lie ahead, we strive to find opportunities to further our cause of providing reliable and affordable wholesale power. Efforts are being made in Washington, D.C. to affect legislation that would reduce the cost of operating Vogtle Units 3&4 once commercially available, and to protect the financing mechanisms afforded public power to build essential infrastructure.

2016 was a year of accomplishments for MEAG Power and its Participants. We saw downtowns revitalized, education improved, prospects won, businesses expand, jobs created and much more. The results were gratifying and as we look ahead, we are certain there will be more determined efforts by our Participants, our State and MEAG Power to brighten the future.

Steve A. Rentfrow

James E. Fuller
President and Chief Executive Officer

April 27, 2017

Bright Lights In Our Communities

MEAG Power Participant communities shine.

Attracting New Business

Whether claiming hometown commercial expansions or newcomer enterprises, MEAG Power communities were highly successful in 2016, according to new business announcements made by the Georgia Department of Economic Development. These businesses will not only generate revenue for local utilities, but they also will provide over 5,000 new jobs and local investment of $1.5 billion. This success was based on numerous factors – from excellent logistics to development incentives, attractive sites, skilled labor and a welcoming, pro-business attitude that continues to be our communities’ hallmark.

Training the 21st Century Workforce

Georgia College and Career Academies are being established in more MEAG Power communities to ensure that educational resources, as well as local industries, are focused on providing the skills and knowledge for our local youth to succeed in today’s jobs. Plus, three-year, German-style apprentice programs – the first in this country – are underway to advance high school students into the industrial workforce. Local colleges and universities also provide resources and play key roles in this endeavor.

Creating Industrial Zone Options

New office complexes, manufacturing facilities, distribution centers and warehouses are putting down roots in our communities’ growing number of industrial parks, many with Georgia Ready for Accelerated Development (GRAD) state-certification and favorable tax incentives. Recent local commercial zone innovation includes an “eco” mixed-use development that incorporates environmental sustainability in the park design and construction requirements. MEAG Power communities are great homes for growing enterprises, as they can take full advantage of prime locations – ones that offer enviable domestic logistics, quick access to worldwide transportation via air or sea, as well as economical and reliable electric service.

Expanding Our International Reach

In 2016, MEAG Power Participants welcomed a growing presence of international firms, adding businesses from China and Sweden as well as others. At the same time, international companies from Finland, France, India, Japan, Korea, Thailand and the United Kingdom expanded their current operations in our communities. In fact, one company relocated its U.S. headquarters to a MEAG Power community.

Coming Together to Help

Several MEAG Power communities were victims of the punishing weather that ripped through south Georgia in January 2017. Houses were lost. Businesses ruined. Hearts broken. But these hometowns were not alone as their sister public power communities, MEAG Power and Electric Cities of Georgia, along with many others, supported their recovery with restoration resources, equipment, hands and compassion. Electric power was restored and bright lights could be seen again.

Winning with the Right Focus

Reliability and safety are foremost in the minds of community-owned electric utilities, and MEAG Power Participants continue to demonstrate outstanding performance in these and other critical areas. This focus has helped our communities receive accolades such as “one of the best places to live, work and play,” a “Platinum Green City,” or a “city with some of the lowest electric rates in the state.”

Focusing on Collaboration

Community with community, city with county, public with private or township with regional commission, many Participant locales are joining together to strengthen economic development initiatives. By leveraging resources, sharing ideas and targeting key projects, these teams are creating environments in which business prospects, as well as established enterprises and current residents, can grow and prosper.

Making Ourselves Heard

During the year, our 49 Participants spoke with one voice to federal and state legislators and regulators about issues that could impact our business and their communities. Plus, through MEAG Power their interests were communicated to national organizations that are intent on advancing and protecting public power positions when it comes to matters that include distributed generation, nuclear incentives, tax-exempt financing, grid security and more.

Revitalizing Neighborhoods and Building Communities

Community rejuvenation and infrastructure modernization continue to move ahead as our Participants invest local funds, SPLOST or government grants to enhance civic environs while improving citizens’ quality of life. Upgraded utility systems, more greenspace, fiber-to-the-home, community improvement districts and roadway enhancements are just some of the “make-it-better” projects that were underway in 2016.

Bright Lights In MEAG Power

Switching on some new ideas and emphasizing some old is how MEAG Power is helping each of our communities as they find ways to become a glowing success.

Providing Emissions-Free Generation

More Fortune 100 companies than ever before are setting sustainability targets*, and, for many, using more non-emitting energy plays a big part in reaching these goals. Good news for our community-owned utilities because, for the eighth straight year, over 50% of MEAG Power’s delivered energy has been free of carbon and other air emissions. That emissions-free wholesale generation, along with its low cost and reliability, can be a key resource for companies committed to reaching sustainability goals.

*Advanced Energy Economy 2016 Corporate Advanced Energy Commitments report.

Branding The Organization

In 2016, MEAG Power pursued several initiatives to increase awareness of the MEAG Power brand and our advantages as a wholesale power provider. We collaborated with Electric Cities of Georgia by sponsoring multiple events and contributing to the enhancement of their facilities used for business prospect meetings. Advertising in several key publications was undertaken, and, in both our printed and digital 2015 annual report, we focused on key attributes about our organization, communities and state that would be meaningful to new and expanding businesses. The online report also included a video message from a commercial customer who values the electric service the MEAG Power community provides.

Expanding Partnerships

MEAG Power helps our communities by identifying wholesale opportunities for buying and selling power to minimize their total purchased power costs, today and tomorrow. The 20-year power purchase agreements with JEA and PowerSouth pertaining to Vogtle Units 3&4, entered into in 2008, are prime examples. In 2016, we continued this practice and contracted with the City of Robertsdale, Alabama to supply the city’s full wholesale generation requirements for eight years, beginning in 2018. This supply will be provided from nine Participants that partnered with MEAG Power by committing resources to this sale.

Bright Lights In Georgia

Georgia continues to increase its wattage and make certain the benefits of the Peach State can be seen far and wide.

Earning “The Best State for Business” Award Yet Again

For the fourth straight year, Georgia has been named the number one place in the nation for business by Site Selection magazine. The state’s fiscal soundness, predictable economic climate and sound regulatory practices, along with superb road, sea, air and rail transportation options and a skilled labor force, are just some of the reasons businesses invest their capital in Georgia.

Planning a World-Class Cyber Innovation and Training Center

The state is investing $50 million to establish an education and research facility to help keep Georgia on the cutting edge of cybersecurity. Built near the U.S. Army Cyber Command headquarters at Fort Gordon, the center will bring together academia, private industry and government to establish cybersecurity standards, as well as working to develop the workforce and infrastructure to protect citizens, businesses and institutions from cyber threats. Companies have already shown interest in becoming part of this initiative.

Continuing as the #1 Job Training Program

Once more, location consultants responding to the annual Area Development magazine survey gave Quick Start, provided through the Technical College System of Georgia, first place ranking for employee training in the nation. Since its inception 49 years ago, Quick Start has trained 1.3 million Georgians for nearly 7,000 projects. The program’s graduates are job-ready workers with customized skills in electronics, automotive, plastics and much more. In 2016, Quick Start’s BioScience Training Center moved ahead full force, and plans for its new Georgia Advanced Manufacturing Training Center with state-of-the-art technology were underway.


Board of Directors

MEAG Power is governed by a nine-member Board that meets monthly. Members are elected for three-year terms by an election committee that consists of one representative from each Participant community. All Board members volunteer their time.

Hover overTap on individual for information From left to right:

Patrick C. Bowie, Jr.(3)
Utility Director, LaGrange

Gregory P. Thompson(5)
Vice Chairman
Mayor, Monroe

R. Steve Tumlin, Jr.(1)
Mayor, Marietta

Steve A. Rentfrow
General Manager,
Crisp County Power

Larry L. Guest
Mayor, Elberton

Larry M. Vickery
General Manager,
Calhoun Utilities

Terrell D. Jacobs(4)
City Manager, Douglas

William J. Yearta
Mayor, Sylvester

L. Keith Brady(2)
Mayor, Newnan

Committee Chairman:
(1) Asset/Liability;
(2) Governmental Affairs;
(3) Personnel Policy;
(4) Power Supply Planning;
(5) Risk Management/Audit

Senior Management

Hover overTap on individual for information From left to right:

Edward E. Easterlin
Senior Vice President
Chief Financial Officer

Peter M. Degnan, Esq.
Senior Vice President
General Counsel

James E. Fuller
President and
Chief Executive Officer

Douglas K. Lego
Vice President
Chief Administrative Officer

Steven M. Jackson
Senior Vice President
Chief Operating Officer

Our Company

The Municipal Electric Authority of Georgia (MEAG Power) is a non-profit public corporation that was chartered by the Georgia General Assembly in 1975. We generate and transmit reliable, competitively priced wholesale electric power to 49 communities across the state.

Fast Facts

$0.1 Billion Assets
$0.4 Million Total Revenues
0.0% Overall Reliability
2,00 MW Total Generating Capacity

Our Diversified Fuel Portfolio

Plant Hatch
0 MW / 0.0% Ownership in Units 1&2

Plant Vogtle Units 1&2
0 MW / 0.0% Ownership in Units 1&2
Plant Vogtle Units 3&4
0 MW / 0.0% Ownership in Units 3&4
Full Construction is Underway
Plant Scherer
(Coal – Western)
0 MW / 0.0% Ownership in Units 1&2
Plant Wansley
(Coal – Eastern)
0 MW / 0.1% Ownership in Units 1&2
8 MW Additional from Combustion Turbine
Wansley Combined
Cycle Facility
(Natural Gas)
0 MW / 0% Ownership

Participant Communities

MEAG Power communities offer reliable and competitively priced electric service and also provide a wide range of other competitively priced local utility services that could include: natural gas, water, sewer, solid waste, CATV, internet and high-speed data services. These full-service communities also provide access to industrial/commercial sites, skilled workforces and advantageous logistics that make the locations attractive for new and existing business.

To view details of the individual communities, clicktap on the community name below.

  1. Plant Wansley and Wansley
    Combined Cycle Facility
  2. Plant Scherer
  3. Plant Vogtle
  4. Plant Hatch

Financial Highlights

MEAG Power Financial Highlights
Three-Year Summary of Selected Financial and Operating Data
(Dollars in thousands) 2016 2015 2014
Total revenues $661,382 $642,953 $748,571
Total assets and deferred outflows of resources $9,115,995 $9,441,898 $7,975,332
Property, plant and equipment, net $5,255,928 $4,913,961 $4,575,586
Debt outstanding (excluding defeased bonds) $7,146,111 $7,543,321 $6,340,120
Weighted average interest cost(1) 4.09% 4.13% 4.31%
Total delivered energy to MEAG Power Participants (MWh)(2) 10,771,270 10,561,753 10,572,781
Cost to MEAG Power Participants (cents per kWh):      
Total cost(2)(3) 6.63 6.68 6.89
Bulk power cost(3) 6.58 6.63 6.90
SEPA cost(2) 7.34 7.29 6.84
Peak demand (MW) 1,923 1,941 1,926
Total nominal generating capacity in service (MW) 2,069 2,069 2,069

(1) Excludes the impact of other net interest expense components such as receipts and payments pertaining to interest rate swap agreements, amortization of debt discount and expense, investment income, the net change in the fair value of financial instruments and interest capitalized. The rate is net of subsidies on Build America Bonds.

(2) Participants purchase hydro energy directly from the Southeastern Power Administration (SEPA). Such energy is included in these calculations.

(3) Funds from the Municipal Competitive Trust were applied to lower the Participants’ annual generation billings.

Total Assets & Deferred Outflows (in billions of dollars)

TOTAL ASSETS & DEFERRED OUTFLOWS (in billions of dollars)

Total assets and deferred outflows of resources decreased $326 million during 2016 due primarily to a $618 million decrease in special funds mainly related to CWIP payments, bond refundings and the termination of the Lease Financing Trust. PP&E increased $342 million due primarily to construction of Vogtle Units 3&4.

Total Revenues (in millions of dollars)

TOTAL REVENUES (in millions of dollars)

An increase of $18 million in total revenues during 2016 pertained to deferred inflows of resources, a planned reduction in Competitive Trust Funding, and higher debt service billings, including initial principal billings pertaining to certain Vogtle 3&4 bonds. These items were partially offset by lower Participant billings for fuel and certain variable costs and a $2 million decrease in other revenues.

Annual Weighted Average Interest Cost (in percent)


The weighted average interest rate of MEAG Power’s debt for 2016 was 4.09%, compared with 4.13% for 2015, with the decrease primarily attributable to lower interest rates on debt issued in the second half of 2015 and June 2016.

Total Debt Outstanding (in billions of dollars)

TOTAL DEBT OUTSTANDING (in billions of dollars)

During 2016, total debt outstanding decreased $397 million due mainly to the termination of the Lease Financing Trust.

Peak Demand (in megawatts)

PEAK DEMAND (in megawatts)

In 2016, peak demand decreased slightly due to improved appliance energy efficiency.

Cost to Participants (cents/kWh)


Total cents per kWh was 6.63 in 2016 compared with 6.68 in 2015. The decrease was primarily due to a 2.0% increase in energy delivered to the Participants.