2023 Annual Report

2022 Annual REport

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A MESSAGE TO CENTRAL MEMBERS

One of Central Rural Electric Cooperative’s core values is dedicated to serve, meaning we are only as strong as our members and the communities in which they live. We make every decision and measure every outcome based on how well it serves our members. One of the questions our employees ask themselves related to this core value is, “Do you understand how your work productivity affects the membership?”

As a not-for-pro t organization, designed to provide a service rather than seek a pro t, we understand the impact every decision we make has on each member. While change is inevitable, one thing that will remain the same is our dedication to serving you, our members.

During 2022, our rural areas experienced tremendous growth increasing our peak system demand by eight megawatts. To put that in perspective, 1 MW of electric load equals that of three Walmarts. Traditionally, our system has consisted primarily of oil and gas load, however, as oil and gas have declined and residential has increased, our system has shifted. What was once more than half commercial load is now residential.

Despite this shift, Central continues to maintain some of the lowest rates in the state among municipalities, investor-owned utilities and other cooperatives. Our commitment to providing you with affordable, safe and reliable power will not waiver. Nor will our desire to be accessible and transparent with you about your cooperative. We continue to design member engagement events with you in mind, meeting you where you are and adapting to your busy lifestyle.

With record-breaking attendance at our second-annual Kilowatts and Brats events and more than doubling quorum at the 2022 Annual Meeting, Central employees had the opportunity to meet and visit with more than 2,500 members. We love hearing your stories, answering your questions and spending time with you. Plus, we hosted our rst Co-op Kids Day, sharing the cooperative difference and electrical safety with more than 60 Co-op Kids! Through events like this, we keep communication a twoway street and take your feedback seriously.

And of course, we are continuing to build ber to our entire system for smart grid. This ultimately bene ts you by way of ber to the home services from Centranet. While we are not nished building, our progress continues to gain steam and the expected time frame for completion shrinks.

As we roll through 2023, know your cooperative remains nancially strong and dedicated to serving you, making every decision with you on our minds. Thank you for allowing us to serve you.

Hunter Robinson, CEO

AND MEMBERSHIP

GET TO KNOW YOUR COOPERATIVE

CENTRAL’S HISTORY

SEVEN COOPERATIVE PRINCIPLES

In 1938, 10 local farmers and rural residents took advantage of a federal program offered by the Rural Electri cation Administration. They formed a stock corporation and what is now your electric co-op, Central Rural Electric Cooperative.

VOLUNTARY AND OPEN MEMBERSHIP

DEMOCRATIC MEMBER CONTROL

TIC MEMBERS’ ECONOMIC PARTICIPATION

DEMOCRATIC MEMBER CONTROL

AUTONOMY AND INDEPENDENCE

DEMOCRATIC MEMBER CONTROL

VOLUNTARY AND OPEN MEMBERSHIP

DEMOCRATIC MEMBER CONTROL

MEMBERS’ ECONOMIC PARTICIPATION

EDUCATION, TRAINING AND INFORMATION

AUTONOMY AND INDEPENDENCE

At the time, when one out of 10 rural residents had electricity, the newly formed co-op borrowed $85,000 from the REA to construct a rural distribution system to provide electricity to 141 local farms and homes.

MEMBERS’ ECONOMIC PARTICIPATION

AND INDEPENDENCE

AUTONOMY AND INDEPENDENCE

EDUCATION, TRAINING AND INFORMATION

TION, AND TION COOPERATION AMONG COOPERATIVES

EDUCATION, TRAINING AND INFORMATION

COOPERATION AMONG COOPERATIVES

EDUCATION, TRAINING AND INFORMATION COOPERATION AMONG COOPERATIVES

CONCERN FOR COMMUNIT Y

Central and other electric cooperatives operate by a set of seven core principles that ensure the needs of members come rst.

DEMOCRATIC MEMBER CONTROL

MEMBERS’ ECONOMIC PARTICIPATION

Today, 85 years later, Central is still member-owned and is dedicated to providing the best service at the most reasonable price. Central now serves more than 23,000 meters on 4,499 miles of electrical lines in seven counties and includes the ber subsidiary, Centranet. One thing that has not changed in all that time is Central’s desire to improve the quality of life in rural communities.

MEMBERS’ ECONOMIC PARTICIPATION

COOPERATION

EDUCATION, TRAINING AND INFORMATION

AMONG COOPERATIVES

CENTRAL’S MISSION

COOPERATION

AMONG COOPERATIVES

CONCERN FOR COMMUNIT Y

CENTRAL’S VISION

CONCERN FOR COMMUNIT Y

COOPERATION AMONG COOPERATIVES

CONCERN FOR COMMUNIT Y

BRING THE COOPERATIVE to LIFE by investing TIME and resources in our

members, communities and employees.

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difference

ON THE LINE

23,790 METERS

4,499 MILES OF LINE

2022 IN NUMBERS

22 SUBSTATIONS

MEMBER EXPERIENCE OPERATIONS

AVERAGE OUTAGE DURATION PER MEMBER

1.17 AVERAGE OUTAGES PER MEMBER

87 ACSI CUSTOMER EXPERIENCE SCORE

99.9% SYSTEM RELIABILITY UPTIME MEMBERS EXPERIENCE

EMPLOYEES 95 PEAK

2.09 HOURS 173 MW 4

DEMAND

MEET YOUR TRUSTEES

James Wells, President District 6 - 2,607 Members Greg Tytenicz District 2 - 2,650 Members Gary McCune, Vice President District 1 - 2,483 Members Carol Dvorak, Secretary/Treasurer District 3 - 2,465 Members Sid Sperry District 4 - 2,807 Members Mark Pittman District 5 - 2,539 Members Resigned February 2023 Ken Starks District 5 Elected April 2023

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Bill Davis District 7 - 2,522 Members

SERVICE AREA

Central connects members with more than just power lines. We are 28 communities strong within seven counties full of members, neighbors and friends working to create a better quality of life for our rural areas.

At Central, your voice is crucial for our cooperative’s success. Members have the opportunity to vote on board representation and bylaws, and to serve on the board of trustees that govern Central.

Central’s service area is divided into seven districts where trustees are elected from the membership within each district to serve the cooperative and its members.

Trustees set policies and procedures to guide the cooperative and have three-year terms with a fourterm limit. The seven-member team oversees nancial, system, strategic and major project plans, and long-term vision and commitment to our communities.

TRUSTEES

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CONSOLIDATED ASSETS

CONSOLIDATED LIABILITIES AND EQUITY

REVENUE

38%

2022 2021 Operating Revenues $66,136,214 $58,969,559 Purchased Power $36,798,584 $34,060,795 Distribution - Operations $6,657,737 $5,818,062 Distribution - Maintenance $3,638,629 $5,331,565 Consumer Accounts, Customer Service, Sales $1,863,639 $1,370,453 Administrative and General $4,439,925 $4,180,916 Depreciation and Amortization $6,927,249 $5,468,921 Taxes $47,601 $71,492 Interest On Long-Term Debt $2,276,721 $1,722,193 Other Interest and Other Deductions $1,167,296 $73,587 Total Cost of Electric Service $63,817,381 $58,097,984 Patronage Capital and Operating Margins $2,318,833 $871,575 G&T and Other Capital Credits $2,219,250 $2,589,986 Other Non-Operating Margins ($2,475,575) ($1,080,896) Net Margins $2,062,508 $2,380,665 2022 2021 Net Utility Plant $185,738,426 $132,280,935 Other Property and Investments $39,574,127 $38,091,602 Current Assets $28,939,912 $22,360,531 Other Accrued Assets $541,271 $751,109 Total Assets $254,793,736 $193,484,177 2022 2021 Capital Equity $84,382,075 $83,677,092 Long-Term Debt $116,200,527 $69,052,547 Current Liabilities $42,336,564 $27,669,378 Other Long-Term Liabilities $11,874,570 $13,085,160 Total Liabilities and Equity $254,793,736 $193,484,177 FOR YEARS ENDING DECEMBER 31, 2022 AND 2021

RESIDENTIAL

COMMERCIAL

INDUSTRIAL

FINANCIAL SUMMARY 8

59%

3%

Meters per mile of line make a difference in the amount of revenue generated. More meters means more revenue. Cooperatives maintain more miles of infrastructure with signi cantly less revenue per mile compared to municipalities and other utilities in Oklahoma. While municipalities can generate $80,000-120,000 of revenue per mile of line, Oklahoma cooperatives average $13,850 per mile of line.

RESIDENTIALAVERAGEU.S.RATE: 15.64 ¢

CENTRAL COMPARE? OKLAHOMA 12.57 ¢ TEXAS 13.55 ¢ KANSAS 14.13 ¢ COLORADO 14.29 ¢ NEW MEXICO 14.11 ¢ LOUISIANA 12.69 ¢ ARKANSAS 11.86 ¢ MISSOURI 12.29 ¢ AVERAGE RESIDENTIAL RATES Residential rate by cent per kilowatt hour in 2022 AVERAGE OKLAHOMA CO-OP RATE IN 2021: 11.73 ¢ BY THE LINE MUNICIPALITIES CENTRAL INVESTOR-OWNED UTILITIES 50 METERS PER MILE OF LINE 15-25 METERS PER MILE OF LINE METERS PER MILE OF LINE 5

HOW DOES

Source: eia.gov Electricity Data Browser Average Retail Price of Electricity and oaec.coop Powering and Empowering Key Facts Source: oaec.coop Co-op Impact Archive Quick Facts Booklet CENTRAL’S RATE: 9.92 ¢ 9

CENTRAL’S ENERGY MIX

OTHER CO-OP’S ENERGY MIX

Co-op

&

2021 61% 19% 13% 5% 2% COAL WIND ENERGY NATURAL GAS HYDRO PURCHASED 32% 29% 22% 15% 2% COAL NATURAL GAS NUCLEAR OIL, OTHER RENEWABLES 10

Central purchases power through Associated Electric Cooperative, Inc. Source: electric.coop Electric

Facts

Figures

COMMUNITY FOUNDATION

Since 2006, Central members have rounded up their electric bills to the nearest dollar to provide grants for local organizations and individuals in need of assistance.

Less than 99 cents a month from one individual may not seem like much, but when 15,000 members participate it makes a large collective impact felt by our entire community.

One hundred percent of members’ contributions are donated locally and managed by the Central Community Foundation board.

Organizations that received grants in 2022 include Agra, Luther, Morrison and Stillwater schools, Chandler Fire Department, Our Daily Bread, 4 Kids and Community and so many more. Read more at mycentral.foundation.

By participating in Operation Round Up, your small change has made a big difference in our community.

90%

SMALL CHANGE MAKES A BIG DIFFERENCE OF GRANTS WENT TO ORGANIZATIONS AND NONPROFITS

10% OF GRANTS WENT TO INDIVIDUALS

TYPES OF GRANTS

DISASTER RELIEF EDUCATION

COMMUNITY PURPOSE

HEALTH CARE PERSONAL NEEDS

15,246 MEMBERS DONATED PROVIDED

$89,216 THROUGH OPERATION ROUND UP

CENTRAL ATTENDED DOZENS OF COMMUNITY EVENTS WITHIN THE SEVEN-COUNTY SERVICE AREA

$1.8 MILLION IN CAPITAL CREDITS RETURNED TO MEMBERS

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GRANTS TO THE COMMUNITY

$34,000 DONATED TO COMMUNITY ORGANIZATIONS

CENTRAL GAVE MORE THAN 20 PRESENTATIONS ABOUT THE COOPERATIVE DIFFERENCE AND ELECTRICAL SAFETY

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POWERED BY CENTRAL

YOUTH TOUR

Each year, Central sponsors two local high school juniors to participate in Youth Tour, an all-expense paid trip to Washington, D.C. through an essay competition. In 2022, Isaac Ochsner and Bailey Ramsey visited members of Congress, national monuments, historic sights and Smithsonian museums with Youth Tour winners from cooperatives across the nation.

During the essay, ve students were chosen for interviews with two selected to attend Youth Tour and the remaining three received $1,000 scholarships.

ENERGY CAMP

Central’s second essay competition is for two eighth-grade students to attend Energy Camp hosted by the Oklahoma Association of Electric Cooperatives at a summer camp near Hinton, Okla.

Central also attends with Pepper the robot to teach students about electrical safety. The camp allows students to step inside a set of linemen’s hooks and climb a utility pole, ride in a bucket truck and learn how electricity is generated.

BE SAFETY SMART

Central linemen gave electrical safety presentations to elementary students through Be Safety Smart. During the presentations, children donned linemen gear and tried to complete a task.

CO-OP KIDS

Three hundred children and grandchildren of members participated in the rst year of Co-op Kids. The program was designed to introduce children to the world of electric cooperatives and electrical safety.

The rst Co-op Kids Day welcomed 63 children to the cooperative where they met linemen and the electric cooperative mascot, Willie Wiredhand!

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2022 IN NUMBERS

1,740 MILES BUILT

NEW SUBSCRIBERS

2,761

11,266 THREATS, VIRUSES AND INTRUSIONS BLOCKED PER MONTH

70 BUSINESS SUBSCRIBERS

1,495.65

1 TB = TERABYTE

TERABYTES OF DATA WERE USED BY SUBSCRIBERS IN DECEMBER

HOW MUCH DATA IS THAT?

250 2 HOUR MOVIES

17,000 HOURS OF MUSIC OR

Source: siarchives.si.edu The Smithsonian Institution Archives: How Much is in that Terabyte?

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Shortly after receiving Centranet, one of our employees noticed her son was nishing his homework much more quickly. When asked about it, he simply told her that it’s harder to procrastinate without all the buffering.

For Centranet, 2022 felt similar to how I think her son felt: lots of work, full speed and no buffering time. Our mission is to connect people with the speed of light, and we are working as fast as we can to do that. In July, Centranet reached the two-year milestone of providing high-speed ber internet to subscribers. A few months later in December, we hit our highly-anticipated goal of serving 5,000 subscribers by the end of the year.

The subscriber experience continues to be our top priority and by listening to you, we continue to cross hurdles in stride to provide fast and reliable service, while expanding our offerings. In June 2022, we added home phone service to our portfolio and now provide home phone service through Voice over Internet Protocol (VoIP) to more than 150 subscribers.

Our growth was obtainable by utilizing Central’s existing infrastructure and allowing Centranet to be available to 66% of Central’s membership by the end of 2022. Reliability and subscriber experience are at the forefront of everything we do. Similar to our speeds, we will continue to work as hard and as fast as we can to create the best experience possible for you. We’re on a journey to the rurals of internet, helping transform the way people live in rural Oklahoma.