PRESIDENT’ S MESSAGE 2023

BARBARA S. MILLER Board President Magic Valley Electric Cooperative

We are living in a period of changes, adjustments, and transitions, and economic predictions and forecasts expect that the trend of changes will continue in the short-term. We have all found ourselves adjusting to transitions in our lives during the last several years.

We have adjusted to social transitions brought on by the COVID-19 pandemic. The pandemic brought changes to our social interactions and our workplaces and schools, as well as changes in the delivery methods for the goods and services we use every day. And we have adjusted to economic transitions with supply chain shortages as well as with recent months of inflation and higher interest rates. And we continue to adjust to technology changes throughout our society.

In Texas, the electric utility industry is serving a rapidly growing population. Consumer adoption of new products like electric vehicles is growing. In addition, industrial and commercial operations are expanding and require large amounts of electricity. There is a strong demand for new generation resources, both traditional and innovative. The sum of these changes presents potential challenges to the reliability of the Texas grid and has a signifcant impact on planning for management of the electric system. Advances in technology continue to provide new tools and opportunities to better control, manage, and operate the Texas grid.

The Magic Valley Electric Cooperative leadership team of Directors, General Manager, and Senior Staff, together with our dedicated team of employees, brings experience, specialized knowledge, and training to serve you as we work through a rapidly changing environment.

We adopt and adapt to transitions by looking for positive ways to make our work better. We identify transition problems and work to eliminate them. We monitor economic and industry forecasts and strategize to be effectively prepared for the future, no matter what changes and transitions come our way. Together, we work to keep Magic Valley Electric Cooperative fnancially and operationally robust and healthy, so that we will always be ready to serve you, now and in the future.

During the past year, transitions have brought changes to your Board of Directors at Magic Valley. Dr. Martin Garcia, who represented District 1 for 50 years and served as Board President for 21 years, passed away in November of 2022. We appreciate Dr. Garcia’s lifelong commitment to the cooperative. His leadership and experience will be deeply missed.

In another Board of Directors’ transition, Mr. Reynaldo Lopez, who represented District 2 for 30 years and served as Board Vice-President for 14 years, resigned from the Board on December 31, 2022. We will also miss Mr. Lopez’ leadership and experience.

Your Board of Directors is charged with governance responsibilities of Magic Valley Electric Cooperative. We regularly receive and discuss a variety of operating and fnancial reports about the Cooperative’s activities. We represent your interests on the boards of South Texas Electric Cooperative and San Miguel Electric Cooperative, two generation and transmission electric cooperatives. Through these generation and transmission, or G&T, level cooperatives, Magic Valley and you participate in ownership and operation of electric generating plants. These plants generate or create electric power. Through the G&T level cooperatives, Magic Valley and you also participate in ownership and operation of transmission infrastructure that transmits electric power in wholesale, or bulk, form to distribution level systems like Magic Valley. Distribution level systems deliver electric power at a retail level to homes and businesses.

Magic Valley Directors and Management function as a leadership team for studying and discussing electric industry information about trends and developments, new technologies and transitions, and legislation and regulation that impact the electric industry. And the leadership team discusses plans for the short-term and long-term future of the Cooperative as well as strategies for how we can take steps today that will position Magic Valley for a strong and bright future of service.

Your directors, as individuals, share many of the life experiences and goals that you have. Like you, we wear many hats in our lives. We are parents, who want a good future for our children and grandchildren. We are daughters and sons who care for the parents who cared for us in our youth. We are co-workers, business owners, and professionals.

As we represent you in governing Magic Valley Electric Cooperative, we wear our Magic Valley hats and work to guide our Cooperative with informed and thoughtful decisions that are in the best interest of our Magic Valley members.

Magic Valley’s mission is to enhance your life by providing safe, reliable, and affordable electric service.

Thank you for allowing the Magic Valley team to be of service to you.