A Message From the
Chairman & President
A Challenging Year of Accomplishment
In a year that challenged our country, our state, our operations and our Participant communities in ways we never could have imagined, MEAG Power and our employees remained resilient and adapted to the countless changes and requirements of the new paradigm.
We continued to provide our Participant communities the reliable, competitively priced wholesale power they need to ensure their long-term success, while working with them to lessen the financial impact of the pandemic. And despite the myriad challenges, we made significant accomplishments across a number of important areas of our business, from moving closer to Plant Vogtle Unit 3 entering commercial service to highly successful bond sales and credit ratings upgrades to approving a new Integrated Resource Plan, among many others.
The Pandemic Wreaks Havoc
The COVID-19 pandemic approached early in the year with alarming speed and uncertainty. As it became clear that it was no longer safe to continue normal operations in our headquarters, senior management made the decision to close the office starting on March 16 to all but essential system operations employees.
From March through the end of the year, 76% of employees worked remotely, 18% split their time working remotely or reporting to the office, and 6% of employees who are field staff continued to conduct business on construction sites or at other MEAG Power facilities.
Thanks to remote-work infrastructure already in place – although used in a limited capacity by employees before the pandemic – Information Services (IS) was able to quickly ramp up to a more robust, secure system to enable the vast majority of our employees to conduct their daily work remotely. This included the ability to securely connect to our network for file access and sharing, conduct virtual meetings over numerous different platforms, and work as efficiently as possible despite the circumstances. MEAG Power has continued to prioritize support for our remote workers, increase awareness of pandemic-related cybersecurity threats, and improve the reliability of our network.
Monthly board meetings were shifted to teleconferences, as was our annual meeting and the concomitant election for three board members. Instead of conference-table group meetings or impromptu office gatherings, many employees became well-versed users of Zoom, WebEx, Skype and other virtual platforms. Despite these challenges, we completed both small and large projects, and our focus on our Participants never wavered.
Because just as it was a trying time for MEAG Power’s daily operations and employees – in both their work and family lives – so too was it a difficult year for our Participant communities. The pandemic took a deadly toll on many communities, and the economic and social impacts wracked populations, local governments and utilities across the state. Record levels of unemployment and increased residential power usage strained communities financially, while temporarily idled factories and decreased commercial and industrial usage led to an overall reduction in system demand, which is slowly increasing toward pre-pandemic levels.
MEAG Power quickly worked to reduce our 2020 budget by $40.6 million to help lessen the monthly cost burdens on Participants. We also worked with one of our financial institutions to develop a gap funding agreement to provide a ready source of liquidity for Participants to fund any COVID-19 related utility revenue shortfalls when paying their MEAG Power bills.
The pandemic likewise challenged progress toward completion of Vogtle Units 3&4, as COVID-19 infections among the workforce necessitated new workplace protocols and a reduced workforce on-site. Still, work was never halted, and numerous milestones were reached throughout the year.
Approved IRP Sets Roadmap for the Future
Despite the historical challenges 2020 brought, the U.S. economy and energy sector continued moving with increasing speed toward a clean-energy future, with a growing list of utilities, municipalities and states announcing their zero-carbon goals. But most utilities are starting from a position not nearly as favorable as ours is today.
At MEAG Power, our delivered energy is already exceptionally clean. We ended 2020 with a delivered energy portfolio that is 69% emissions-free. And we have in place upcoming nuclear and planned solar portfolio additions that, when they enter service, will help us align even closer with business and municipal clean energy priorities as our emissions-free delivered energy percentage continues to grow.
Our Integrated Resource Plan (IRP) approved in 2020 provides a roadmap to meet the future capacity and energy requirements of our 49 Participant communities. Developed with the support of The Energy Authority (TEA), the IRP identified resource needs over the study period (2020–2045), focusing on the first 10 years of actionable alternatives.
TEA recommended the resource plan that best met MEAG Power’s business objectives, and we used an internally developed cost assignment methodology to examine the recommended plan at the Participant level. MEAG Power staff members met with each Participant to review the results in late July and early August, and the MEAG Power Board approved the Integrated Resource Plan in August.
The newly adopted IRP calls for a number of strategic steps, most already underway: