2O19

PMPA is a joint-action agency providing wholesale electric services to

ten municipal utilities in the upstate of South Carolina.

ANNUAL REPORT

SCHEDULE OF REVENUE & EXPENSEPer The Bond Resolution and Other Agreements

(Dollars in Thousands)

DEBT OUTSTANDING STATISTICS(Dollars in Thousands)

* Includes $60 million variable rate bonds synthetically swapped to fixed in 2004.

REVENUE

Sales to Participants 184,701 87%

Sales to Other Utilities 20,757 10%

Interest Income 5,801 3%

TOTAL 211,259 100%

EXPENSE

Debt Service 43,722 21%

Operations & Maintenance 49,773 23%

Purchased Power 48,016 23%

General & Administrative 19,504 9%

Transmission & Power Delivery 8,303 4%

Payment in Lieu of Taxes 8,078 4%

Other Deposits 33,863 16%

TOTAL 211,259 100%

DEBT OUTSTANDING (as of 12/31/19)

BondsOutstanding

WeightedAverage

Interest Cost

Fixed Rate Bonds* 2019 529,190 5.12%

Fixed Rate Bonds* 2018 613,455 5.10%

Variable Rate Bonds 2019 107,900 2.57%

Variable Rate Bonds 2018 107,900 2.32%

Capital Appreciation Bonds 2019 102,670 5.71%

Capital Appreciation Bonds 2018 102,670 5.71%

DEBT OUTSTANDING

Bonds Outstanding12/31/2018 824,025

Matured 1/1/2019 (35,750)

Refunded bonds (48,515)

New bonds -

Bonds Outstanding12/31/2019 739,760

HIGHLIGHTSP M PA 2 0 1 9 A N N U A L R E P O R T

211,259RevenueTotal

211,259ExpenseTotal

211,259RevenueTotal

211,259ExpenseTotal

In 2019, Piedmont Municipal Power Agency (PMPA) continued its mission

of providing reliable, competitive, wholesale electric and other value-added

services to our Public Power Communities. PMPA undertook the fourth year

of its 2016-2020 Strategic Plan working in various strategic areas.

Rates, load management, and financial stability comprise the first of these

areas. PMPA did not adjust wholesale rates in 2019 because of its stable

financial condition. PMPA defeased approximately $48 million in bonds,

during 2019, to decrease the debt service paid by our communities in PMPA’s

rates. In the area of load management, PMPA’s communities persisted in the

installation of load management switches to control electricity demand during

peak usage periods. Moreover, PMPA began a cost-cutting project to decrease

its communications costs.

PMPA also pursued programs to enhance the success of our communities. To

assist with economic development efforts, PMPA once again funded community

representatives’ participation in the South Carolina Economic Development

Institute. Also, PMPA hosted Information Technology and Operations Forums

to facilitate the sharing of experiences of and lessons learned by the operational

staff of our communities’ Public Power utilities.

Legislative and regulatory activities are of great importance to Public Power

in general and to our communities in particular; so, PMPA partnered with the

American Public Power Association and other trade organizations to influence and

monitor proposed legislation and regulation both at the state and national levels.

Finally, PMPA maintained its offering of value-added services including, but not

limited to, assistance and training with information technology and customer

service.

PMPA trusts that the information provided in this annual report demonstrates that

PMPA continues to strive to be a valuable business partner for our Public Power

Communities and an asset for all of our stakeholders.

P M PA 2 O 1 9 A N N U A L R E P O R T

Years Ended December 31, 2019 and 2018 (Dollars in Thousands) 2019 2018

OPERATINGREVENUES

Sales of electricity to participants $183,111 $214,770

Sales of electricity to other utilities 20,757 21,029

Other 1,590 1,619

Total Operating Revenues 205,458 237,418

OPERATING EXPENSES

Operation and maintenance 27,973 29,219

Nuclear fuel amortization 14,532 14,089

Purchased power 48,016 53,458

Transmission 7,676 7,599

Power delivery 627 661

Administrative and general 19,504 16,309

Depreciation 8,946 8,310

Decommissioning 5,998 4,909

Payments in lieu of property taxes 8,078 7,551

Total Operating Expenses 141,350 142,105

NET OPERATING INCOME 64,108 95,313

OTHER INCOME(EXPENSE)

Interest income 5,801 5,460

Net change in fair market value of investments and derivative instruments (170) 1,489

Interest expense (45,570) (48,855)

Amortization expense (3,978) (3,833)

Other (7,352) (5,515)

Total Other Expense (51,269) (51,254)

Revenues over expenses before change in net expensesrecoverable from future Participant billings 12,839 44,059

Net increase (decrease) in net expenses recoverable from future Participant billings 8,758 (13,045)

Postemployment benefits 522 -

REVENUE OVER EXPENSES 22,119 31,014

NET POSITION AT BEGINNING OF YEAR 137,461 106,447

NET POSITION AT END OF YEAR $159,580 $137,461

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

C o m p l e t e f i n a n c i a l r e p o r t a v a i l a b l e a t w w w . p m p a . c o m

FINANCIALS

STATEMENT OF NET POSITION

Years Ended December 31, 2019 and 2018 (Dollars in Thousands) 2019 2018

CAPITAL ASSETS

Utility plant assets being depreciated $743,591 $760,077 Accumulated depreciation and amortization (380,516) (389,443)Total utility plant assets being depreciated, net 363,075 370,634 Utility plant assets not being depreciated 19,471 11,009 Total Capital Assets, net 382,546 381,643

UNRESTRICTED ASSETS

Cash 146 318 Marketable debt securities 118,939 133,727 Accrued interest receivable 2 2 Participant accounts receivable 12,720 16,335 Other accounts receivable 334 474 Materials and supplies 20,048 19,646 Total Current Unrestricted Assets 152,189 170,502

CURRENT ASSETSRestricted for debt service 90,447 117,714 Restricted for decommissioning 88,570 79,439 Restricted for other 12,501 20,675 Total Current Restricted Assets 191,518 217,828 Total Current Assets 343,707 388,330

NONCURRENT ASSETS

Net costs recoverable from future Participant billings 488,825 480,066

Other 143 172 Total Other Assets 488,968 480,238

TOTAL ASSETS $1,215,221 $1,250,211

DEFERRED OUTFLOWS

Redemption loss $11,780 $13,934

Losses on advance refunding of debt, net 24,229 30,069

Postemployent benefits 521 -

Total Deferred Outflows $36,530 $44,003

LONG-TERM LIABILITIES

Bonds payable, net $737,257 $802,764

Reserve for decommissioning 124,106 116,435

Accrued expense OPEB 1,484 785 Total Long-term Liabilities 862,847 919,984

CURRENT LIABILITIES Account payable and accrued liabilities 10,666 10,682

CURRENT LIABILITIES PAYABLE FROM

RESTRICTED ASSETS

Accrued interest payable 153,431 142,385

Current installments of bonds payable 13,825 35,750

Total Current Liabilities Payable from Restricted Assets 167,256 178,135

Total Current Liabilities 177,922 188,817

TOTAL LIABILITIES $1,040,769 $1,108,801

DEFERRED INFLOWS Derivative financial instrument $51,402 $47,952

NET POSITIONNet investment in capital assets $(344,307) $(426,802)

Restricted for other 12,501 20,675

Unrestricted 491,386 543,588

TOTAL NET POSITION $159,580 $137,461

C o m p l e t e f i n a n c i a l r e p o r t a v a i l a b l e a t w w w . p m p a . c o m

PMPA is a joint-action agency providing wholesale electric services to

ten municipal utilities in the upstate of South Carolina.121 Village Drive | Greer, SC 29651