Inland Power & Light Co., the Spokane-based electric cooperative, says its net marginsequivalent to net incomeleaped 42 percent to $4.5 million last year, due partly to better-than-expected power sales and lower-than-expected operating costs.


Its revenue increased 13 percent to a record $50.1 million in 2007.


All in all, we had a really good year, says CEO Kris Mikkelsen. She says she expects slower power-sales growth this year, in light of the weaker housing-construction market within the 13-county area the co-op serves, but still predicts the co-ops revenue will climb modestly.


Inland Powers net margins had reached $4.2 million in 2004, but slipped to $3 million in 2005, which Mikkelsen described as still healthy, then rebounded slightly to $3.2 million in 2006 before rising another $1.3 million last year.


Its revenue, meanwhile, grew by nearly $6 million last year. A big part of that gain, though, was due to a 6.5 percent rate increase it put in place on April 1. That stemmed from a sharp jump in the wholesale price the co-op pays for electricity to the Bonneville Power Administration, which markets the power from the Northwests federal dams. Inland Power also had raised its rates 12 percent the prior year, spreading the impact of the BPA rate hike over two years to minimize its impact on customers. Mikkelsen says the co-op doesnt expect to raise its rates this year, and hopes to avoid an increase next year as well, at least for residential customers.


Its long-term debt rose about $1.3 million last year, to $32.7 million, but its equity climbed more than $4 million, to $73 million, boosting its debt-to-equity ratio.


Inland Power added 900 customers last year, boosting its customer base to 37,200. That growth rate was down from about 1,200 new customers in each of the two previous years, but still strong compared with prior gains.


The co-op sold 807.7 million kilowatt-hours of electricity last year, up from 777.2 million in 2006, and it reported revenue of 6.1 cents per kilowatt-hour, which was up from 5.6 cents the prior year.


Inland Power says it refunded $1.25 million in what are called capital credits to its members in 2007, which was the same amount it refunded in the four previous years. Capital credits are sums returned to members in the form of checks out of any revenue surplus above what the cooperative needs to cover operating expenses and capital expenditures.


Meanwhile, Mikkelsen says Inland Power expects to break ground next month on a new headquarters building and facilities expansion on the West Plains.


Its administrative offices currently are located in a 20,000-square-foot building at 320 E. Second, which it has occupied since 1951. It plans to sell that building and also a smaller, adjacent building at 355 E. Third, most of which Inland Power leases to Horizon Credit Union.


It listed the properties for sale last year at a combined asking price of $2.75 million. Since then, though, Mikkelsen says, it has taken the properties off the market, due to lack of interest, but will relist them when its closer to moving out, which likely will make them more attractive to a prospective buyer.


On the West Plains, Inland Power plans to construct a 24,000-square-foot administrative building that will adjoin its 14,000-square-foot main warehouse and maintenance facility. Inland built the latter facility in the early 1970s at 10110 W. Hallett Road. Two years ago, the co-op bought 17 acres of adjoining land.


In addition to new offices, the planned project there will include construction of an 8,000-square-foot vehicle-maintenance facility and expansion of the current warehouse building, which will boost the entire complex to about 55,000 square feet of space.


Contact Kim Crompton at (509) 344-1263 or via e-mail at [email protected].