for a brighter future RELIABLE POWER executive message
You’ve come to expect and rely on continuous electric service. We get it. From refrigerating food to getting work and homework done, all of us depend on reliable power now more than ever before. That’s why we’re continually adding devices and procedures to protect the power delivery system against outages.
When interruptions occur, these same improvements help isolate and restore
service as quickly as possible. Our dedicated employees also stand ready to respond and repair, even in the worst weather conditions.
We’re proud to maintain a 99.9% reliability rating, despite the challenges we constantly face.
Board President Rebecca G. Cogan and CEO Eddie Oldham lead your cooperative in powering innovative solutions for a bright future.
In addition to upgrading and adding new technology and equipment, crews work throughout the year to keep our power lines clear of overgrown vegetation. That helps prevent problems before they occur. But it’s an ongoing challenge.
Another important aspect of the service we provide is the cost of the electricity. It matters to us as well, especially as a not-forprofit cooperative.
In an ideal world, rates would never need to increase. However, the reality is that rates must sometimes be adjusted to ensure the ongoing health of the cooperative.
That’s why a 5% adjustment to the kilowatthour rate — as well as an adjustment of $2.00 to the monthly facilities charge — went into effect Sept. 1, 2023. It was required to keep up with rising costs.
Despite the sometimes dramatic increases we faced, we were able to adjust and absorb a majority of expenses without any type of price adjustment passed along to our members. However, over time, the cost pressures caught up with our rates.
You’ll find more information about those expenses in the financial section of this report. The bulk of these costs — 60% — were for the wholesale power produced outside the cooperative.
While a rate adjustment was necessary last fall, your cooperative continues to seek ways to provide safe, affordable and reliable power at the most competitive cost, now and for years to come.
That brighter future also includes finding new energy solutions, empowering our local communities and driving economic development, which bring jobs to the area.
Just as our founders intended, we work to enrich the lives of those we serve. This focus
on service has always been the heartbeat of who we are. You’ll read more about that in this report.
That’s the cooperative difference that will energize the local community. That’s what will power us into a brighter future.
Powering the Local Community
Operation Round Up® (ORU), funded by members who have their monthly power bills rounded up, supported 35 local nonprofit organizations, groups and charities.
Fourteen local educators used $15,000 in Bright Ideas grants to inspire and inform nearly 4,000 students through innovative teaching projects.
Five high schoolers received college scholarships.
The “Give Us an A” program rewarded 20 students for excellent grades.
Two middle schoolers developed basketball and leadership skills at the Touchstone Energy Sports Camp last summer.
Two high schoolers attended Cooperative Leadership Camp, which emphasized both leadership and the co-op business model.
Two students gained insight into how co-ops work, explored historical landmarks, cultivated leadership qualities and met with state legislators during the Electric Cooperative Youth Tour in Washington, D.C.
RELIABLE POWER
Your cooperative continues to strengthen the power delivery system to serve members for years to come.
Security and Reliability
Protecting the grid, as well as member information, stands out as a priority for your cooperative. Electric utilities across the nation are blocking cyberthreats to the power delivery and communication systems. Locally, we enhanced our security, backup systems and monitoring in 2023, and we continue today.
Upgraded weather monitoring systems will help determine if working conditions are safe for our crews. And the National Rural Electric Cooperative Association recognized Central Electric for excellence in cybersecurity.
Power Supply and the Environment
Current issues also include the impact our industry has on the environment. That’s why we have joined electric cooperatives across North Carolina to reduce carbon emissions.
We continue to push for common-sense legislation with lawmakers in both Raleigh and Washington, D.C. At the same time, we continue to incorporate renewable energy resources and accommodate electric vehicles.
The message is simple: Government, legislators, consumers and utilities must work all together to protect safe, reliable and affordable electric service.
Our direction is always to ensure the long-term reliability and affordability of the service we provide to members. Whether integrating solar energy, expanded battery storage or charging stations for electric vehicles, we must carefully pace this transition.
It’s vital that reliable power generation, such as natural-gas and nuclear, be built and brought online to supply electricity. This is a modern, combined approach that helps us
achieve reduced carbon emission goals. It also helps protect the reliability and affordability of electric service to you, our members.
We’re transitioning to a more resilient energy grid, as members’ energy needs evolve. These innovations in technology reach across our co-op.
One example is the innovative battery storage technology found at our Doc's Road substation near Spout Springs. The added batteries work with our existing substation to provide considerable savings during times of peak demand. Power costs more to purchase during these times. By storing electricity and then using it during peak times, the co-op is able to pass power cost savings along to members.
The batteries also serve as a reliable backup power supply. The project is part of a statewide initiative by the North Carolina Association of Electric Cooperatives.
Renewable energy resources for your home, as well as electric vehicles (EVs) and plug-in hybrid options, continue to change. Members thinking about adding solar to their home or buying an EV will find helpful tools on CEMCPower.com, under the Solar/ EV tab.
Renewable energy and the transition to it is one part of the overall path to a brighter, sustainable future. As your trusted energy advisor, we can help you make the wise choices, including ways to save on energy bills.
For example, the Energy Advisor page under the energy efficiency section can analyze your energy use and suggest ways to better manage it.
Committed to the Community
Another way your cooperative is different from other utilities is we’re owned by the people we serve. That brings a special and deep commitment to the local community.
Central Electric leaders, employees and board members are right here in our community, serving you. We are continually finding ways to provide the best possible service.
Powering a brighter future for the people we serve depends on reliable electricity. Those connections extend further, though, into empowering the community.
New technology and equipment allow employees to monitor systems 24/7.
(Right) New energy options provide members with innovative choices.
THE COST OF WHOLESALE POWER
The Balance Sheet shows total assets increased by more than $5.42 million during 2023. This raised the value of assets to more than $133 million. Central Electric’s membership fees, patronage capital and other equities totaled $64,931,627.
This member-furnished capital represents 48.72% of Central Electric’s assets. These funds are invested in Central Electric’s utility plant (lines, transformers, poles, trucks, etc.) to help ensure a reliable power delivery system.
The Statement of Operations shows operating revenue increased 1.55% from 2022. The total cost of supplying electric service increased 0.8% from 2022. Wholesale power, the largest expense, represented 61.63% of all expenses.
As a cooperative, operating margins (difference between revenue and cost of service) are posted to each member’s capital credits account. In 2023, operating margins were 2.12% compared with 1.39% in 2022.
The average number of consumers served increased from Jan. 1, 2023 to Dec. 31, 2023 by 1.32% as compared with 1.59% in 2022. The 2023 monthly average residential kilowatt-hours (kWh) sold per account was 1,264 kWh.
KEY STATISTICS
HOW YOUR DOLLAR WAS SPENT IN 2023
Margins (2%)
The simplified Balance Sheet and Statement of Operations in this report for the 2023 and 2022 calendar years should assist members’ review of the cooperative’s financial condition. The accounting firm of Adams, Jenkins and Cheatham completed its audit of the cooperative in April 2024. Copies of the report are available online at CEMCPower.com and at the Central Electric business office. The report shows Central Electric is financially sound.
$56,620,861 $56,170,329
$1,226,369 $794,459
2,321,692 1,364,531
$3,548,061 $2,158,990
MONEY BACK
As a member and an owner of Central Electric, you receive a unique benefit that you can “take to the bank.” Since we are a not-for-profit electric utility, a percentage of revenue left after paying expenses is returned to members in the form of capital credits. That means members get a share of what’s left over after expenses are paid and some funds are set aside for emergencies and the future. In 2023, the cooperative returned $1.1 million to members who received service during 2003 through 2006, bringing the total returned to nearly $17 million over 15 consecutive years.
Henry OutzTimothy Priest
Henry Randolph