Building reliability
In the unpredictability of life, reliability matters. Reliability requires consistent actions of excellence. Reliability takes hard work and a dedication to dependability. Reliability calls for the sincere respect of others and steadfast commitment to be there — no matter the obstacles.
Associated Electric Cooperative is committed to reliability for its six G&T member-owners, 51 distribution cooperatives and the 2.1 million member-consumers they serve in the Midwest. For more than 60 years, our three-tiered system of rural electric cooperatives has been counted on to reliably keep the lights on and improve lives, forging a strong foundation of member trust. Looking ahead, the future of America’s reliable power supply is facing unprecedented challenges. Energy demand is outpacing supply, all while reliable baseload generation is forced to retire and transmission infrastructure ages. Industry costs continue to rise and supply chains are jammed. Lawmakers hope policy can create new technologies for solutions tomorrow, rather than depend on proven technologies for answers today.
If you aren’t reliable when it matters most, you aren’t reliable at all. Associated is well-positioned to weather the storm and take action for member-owners. Building reliability isn’t easy, but it’s worth the effort. Grab a shovel. It’s time to get to work.
Front cover: New Madrid Power Plant’s Terry Kilgore (left), assistant control room operator, and Randall Briggs, auxiliary operator, are among the many Associated employees dedicated to generating reliable power supply.
Associated’s 2024 annual report was written, compiled and produced by the staff of Associated Electric Cooperative. Editors: Mark Viguet, Robin Harrison and Schuyler Easterling • Designer: Kristen Kelley
A watershed year for our member-led mission
To our member-owners and strategic partners,
2024 was a watershed year for the electric utility industry. Many extraordinary developments occurred with the potential to significantly change the future of the energy industry and cascade to Associated Electric Cooperative’s business during the next decade.
As a board, we are keenly aware of the opportunities and challenges we face and continue to have confidence in our generating asset portfolio, our safety culture and environmental stewardship, our management and staff, and the ability to provide reliable and affordable power to our member-owners.
Support for reliability priority increases
After Winter Storm Uri in 2021, Associated began a focused, public initiative directed by the board to emphasize reliability first. The concept of technology, transmission and time as necessary predecessors for an effective energy transition to a lower carbon future was created to simplify the message and brand it memorably for key stakeholders.
As a result, we have witnessed new and significant support by the North American Electric Reliability Corporation (NERC), regional transmission organizations (RTOs), the Electric Power Research Institute (EPRI), many other utilities and all the generation and transmission cooperatives in the nation. The National Rural Electric Cooperative Association (NRECA) provided critical leadership in educating regulators and legislators that shutting down always-available generating units without viable, reliable and affordable replacements is ill-advised policy that will hurt the country and consumers.
A letter from Emery “Buster” Geisendorfer president, Associated Electric Cooperative board of directors
On behalf of the Associated board, I want to thank longtime advocates for rural reliability — Tom Howard, general manager and CEO of Callaway Electric Cooperative, and Daryl Sorrell, general manager of M&A Electric Power Cooperative — who were central to these efforts as directors on our board the last 15 and 12 years, respectively.
New plant construction approved, underway
The board also responded by approving construction of two natural gas-fired peaking generating units to add critical incremental power supply to meet our winter and summer member load peaking requirements. The peaking units are Associated’s first new generation construction projects since Chouteau Power Plant Unit 2 in 2011 and will add 840 megawatts (MW) to our asset portfolio in 2026-27. The Siemens Energy turbines and other plant components are being fabricated internationally, and site preparation started this fall with construction partner Black & Veatch.
After receiving environmental approvals from the Rural Utilities Service (RUS), the 420-MW Ripley Energy Center in Oklahoma began construction in October.
For the second project, the 420-MW Turney Energy Center in Missouri, Associated began submitting environmental data to the RUS and hopes to receive approvals early in 2025. The target completion date for Ripley is fall 2026 with Turney to follow in summer 2027.
Load growth continues
During 2024, the RTOs substantially increased their generation reserve requirements, a signal of their concern about supply shortages. Industry announcements of natural gas-fired generation projects became commonplace and the queue for equipment delivery now stretches into 2028. We anticipate a strong natural gas generation build out like the early 2000s.
Again in 2024, following major winter storms Uri in 2021 and Elliott in 2022, another significant storm named Gerri threatened our system. Through each weather event, Associated’s generation portfolio and its member-owners’ transmission system met the challenge with no blackouts.
Regulations continue to challenge reliability
Numerous new rules were issued by the U.S. Environmental Protection Agency (EPA) during the year, representing an aggressive attack on fossil fuel generating units, particularly coal. The EPA’s overreach comes while the country struggles to keep up with growing demand for electricity, develops renewable generation projects that are unreliable and slowed by import restrictions, and battles cost increases and backlogged generation queues.
Debut of large load data centers
Perhaps the most significant new challenge in 2024 was the seemingly overnight development of new large loads, driven by data centers enabling the emergence of artificial intelligence (AI). These extremely large energy loads range from 300 MW to 2,000 MW at a single location and require firm power supply 24/7/365. Data center energy requirements dwarf traditional industrial sites, and developers typically request immediate access to the bulk electric system as a retail customer.
Most utilities are cautious because they do not have the supply to serve such loads, which would create even more risk to reliability during peak weather events. In response, Associated and its members developed a program for our three-tiered system and began discussions with possible data centers as potential long-term strategic partners. During such discussions, we are ever mindful of the obligation to serve our member-owners first, who have funded the development of the three-tiered system’s assets since 1961.
Right: Construction of the new simple-cycle Ripley Energy Center near Ripley, Oklahoma, began in late 2024. Project completion and unit commissioning is anticipated in 2026.
Focus for the future
Annually, the board participates in setting the assumptions for the Integrated Resource Plan, Cost of Service and Long-range Financial Forecast. These assumptions feed the business plan for Associated and enable complex modeling to establish the following year’s capital and expense budgets. From that work, member rates are set for base demand, peak demand and energy to recover costs and maintain financial strength.
In December’s annual strategic meeting, the board approved a third natural-gas peaking plant to be constructed in 2028 and completed by 2030. Work is underway to determine an original equipment manufacturer (OEM) and a construction contract mirroring the first two projects.
The board continues to believe maintaining Associated’s strong financial position is important today and in the future as innovative technologies develop that are more environmentally sustainable. However, generation technology does not exist today that is clean, reliable, financeable or affordable. Protecting Associated’s ability for future investments remains critical; thus, a strategy to maintain equity levels during the current capital expansion will continue.
Financial performance results in member benefits Associated’s financial performance continues to bring benefits for members in a volatile economic climate.
Associated budgeted $78.3 million in margins for 2024 and, before member discounts and deferred revenue, margins were $113.3 million. The strong performance was due primarily to lower than projected fuel costs and significant nonmember marketing activity.
In response, the board approved a $13 million rate discount for members in 2024 and deferred $20 million in revenue, closing the books at $80.3 million in net margin for the year.
Changes on the horizon
In November, President Donald Trump was elected to a second term in the White House, winning the popular vote and Republican control of both houses of Congress. The voters’ mandate renews hope our country can return to energy independence and a stronger economy in the future. The administration will attempt to reverse many of the EPA rules issued by the prior administration. However, environmental litigation will continue to force difficult business decisions to ensure a reliable power supply. We hope some semblance of balance between reliability and a cleaner global energy future can be accomplished.
In these challenging times for the energy industry, we thank you for your ongoing trust and support. You can be assured the Associated board will continue to maintain a sharp focus on its mission of providing reliable, affordable and responsible electricity for our member-owners.
Emery O. “Buster” Geisendorfer president, Associated Electric Cooperative board of directors
Upper left: Member trust begins with dedicated employees like Stacy Lineberry, yard equipment operator, who celebrated 20 years of service at Thomas Hill Energy Center in 2024. Upper right: Chris Marquez, managing director, plant operations at Thomas Hill Energy Center, is a U.S. Navy veteran proud of his role in supplying member-owners with reliable power. Bottom: Collaboration on display at St. Francis Power Plant between Associated and Siemens Energy employees during the successful black start test conducted spring 2024.
2024 by the numbers
1.12
recordable incident rate in 2024, tied with the all-time record
2024 resources for member load
Associated’s diversified resources ensure reliable service for member-owners
Gas fleet annual net generation (million megawatt-hours)
Associated’s natural gas fleet achieved second highest net generation record in 2024
$71.3M
generated from nonmember activity in 2024 $281M in member rate discounts from 2019-2024
G&T cooperative member-owners include Central Electric Power Cooperative, KAMO Power, M&A Electric Power Cooperative, Northeast Missouri Electric Power Cooperative, NW Electric Power Cooperative Inc. and Sho-Me Power Electric Cooperative
12
elected members sit on Associated’s board and are informed and involved in setting the direction of the co-op. This grassroots, bottom-up governance ensures member-consumers are represented in all co-op decisions
$115M
invested to meet EPA’s Coal Combustion Residuals and Effluent Limitation Guidelines since 2015
51
distribution cooperatives served in Missouri, southeast Iowa and northeast Oklahoma, making daily life possible for 2.1 million member-consumers across a three-state region
36.4% decrease in Associated’s carbon emissions since 2005
Common sense strategies drive performance
Dear member-owners and valued partners,
Associated Electric Cooperative delivered another strong year of operational and financial performance in 2024. Common sense strategies focusing on reliability and affordability position our cooperative to remain one of the best electric power generation cooperatives in America.
Diverse resources remain key Associated’s diverse generation portfolio featuring coal, natural gas, hydropower, liquid fuel and wind, and continued independence from regional transmission organizations (RTOs), enables significant net margins to be generated from nonmember transactions, rather than member-owners. In 2024, margins from nonmembers comprised nearly 90% of the total net margin of $80.3 million. For many years, the Associated commercial team has delivered margins from marketing opportunities that exceed expectations by utilizing our strategic geographic transmission interconnects and data-driven hedging programs to manage commodity risk exposure.
In January, Winter Storm Gerri tested our generation and transmission operations, and resulted in strong margins with no system blackouts. Excellent coordination between Associated and its transmission cooperative memberowners continues to deliver reliability during extreme weather events. However, our concerns persist about the reliability of the RTOs that surround Associated’s footprint and related negative impacts we cannot control.
Left: Daily teamwork, safety focus and a commitment to operational excellence is critical to Associated’s performance on behalf of member-owners.
$13M in rate discounts extended to member-owners in 2024
Zero rolling blackouts interrupted member service
A letter from David Tudor CEO and general manager, Associated Electric Cooperative
Generation portfolio performance
Associated continues to invest in coal and natural gas generation assets, spending nearly $300 million in capital and $145 million in maintenance during 2024. Navigating the delicate line between managing costs and ensuring reliability continues to be critical to controlling rates in an inflationary environment.
With fuel prices making up about 40% of Associated’s annual budget, the significant decrease in natural gas prices for most of the year resulted in lower fuel costs. The budget included an average natural gas price of $3.38/MMBtu for the year, while the actual average was $2.18/MMBtu. As a result, our natural gas plants operated more than predicted and performed exceptionally well, owing to systematic maintenance practices and dedicated employees.
A challenge to our generating fleet operations was the generator and turbine failures experienced during a planned outage at Thomas Hill Energy Center Unit 2. Despite planned maintenance, these large and complex machines can fail, which was the case with Unit 2. The unit, constructed in 1969, was repaired and will return to service in 2025.
Safety is priority No. 1
Associated’s hard working employees completed many maintenance projects during the year while tying all-time records for safety. The year started with an unprecedented coal stockpile of more than 100 days at both New Madrid Power Plant and Thomas Hill Energy Center, well above the target 50-65 days. Extraordinary safety measures, the norm at Associated generating facilities, were employed to manage the voluminous amounts of coal.
Importantly, Associated agreed to a contract extension with our union-represented employees for a three-year
term that started July 1. Credit and thanks are due to our International Brotherhood of Electrical Workers (IBEW) employees for voting for a fair and reasonable contract extension, allowing Associated to maintain reliability and affordability for member-owners.
Industry outlook
While environmental groups and the U.S. Environmental Protection Agency (EPA) try to force the premature closing of fossil fuel plants, other countries like China and India are adding carbon-producing coal plants. Associated prioritizes a reliability-first strategy, and we have no plans to retire any generating assets. While this has not been popular among some special interests, it is prudent and the best path forward for our member-owners.
Our hope is the second Trump administration will balance the desire for zero carbon generation with the reality that, for the near future, no proven technology exists to replicate the reliable, affordable and alwaysavailable characteristics of fossil fuel generation. A more balanced national energy policy will require presidential executive orders, reconsideration of environmental rules, and elimination of construction barriers to pipelines, transmission infrastructure and power plants. Streamlined nuclear permits and construction, while promising, do not synchronize with current environmental regulation timelines and will be much more costly for consumers.
In the face of an uncertain future for the energy industry with shifting policies and regulations, we strongly believe in the wisdom of the 2024 actions that retain our diverse portfolio, monitor relevant industry developments and prepare for a wide range of future scenarios. We are accustomed to these challenges and are up to the task before us. The bottom line: member-owners can continue to trust in Associated’s ability to generate a reliable, affordable and responsible power supply.
David J. Tudor CEO and general manager, Associated Electric Cooperative
Board of directors
Executive leadership team
$80.3 million net margin in 2024
$3.7 billion
total assets in 2024
BUILDING RELIABILITY FINANCIAL HIGHLIGHTS
Financial strength and flexibility are central to Associated Electric Cooperative’s ability to serve member-owners with reliable, affordable wholesale power supply. As cost pressures climb, Associated remains committed to the responsible stewardship of member assets for a brighter tomorrow.
Associated’s financial performance was strong in 2024, due to a lower than forecasted cost of energy for members, as well as higher margins on non-member sales that directly offset member costs.
Margins provided the Associated board with the flexibility to lower member costs in 2024 through a $13 million discount, while also deferring $20 million of revenue to help stabilize rates in the years ahead. Additionally, patronage capital retirements of $26.5 million were paid to members.
This strong financial result ensures Associated is well-prepared for significant capital investments in coming years and can continue to provide reliable, affordable power supply for members.
Scan the below QR codes to access the following documents:
2024 Independent Auditor’s Report and Consolidated Financial Statements
Associated Electric Cooperative System Facts as of April 2025
Top left: Overseeing Associated’s financial strength and flexibility on behalf of memberowners is Meredith Roberts (center), senior vice president and chief financial officer, supported by dedicated colleagues including Randy Murdaugh (left), managing director, risk management, and Barb Economon (right), vice president, finance.
Operating revenue
Member revenue was $1.1 billion for the year ended Dec. 31, 2024, an increase of $50.4 million from the prior year.
The increase was due to a rate increase effective April 1, 2024, along with higher member energy and demand sales volumes, and reduced member discounts compared to 2023. These increases were partially offset by a $13 million member rate discount and $20 million deferral of member revenue.
Nonmember revenue decreased $41.4 million compared to 2023, primarily due to lower sales volume and prices in the markets.
Operating expenses
Total operating expenses were $1.3 billion for the year ended Dec. 31, 2024. The two largest expense categories — generation operation and generation maintenance — were driven by increased operating fees for the gas plants and planned maintenance projects for the generating fleet.
2024 financial and operational highlights
Five-year statistical summary
Sales (MWh)
Total member sales
Central Electric Power Cooperative
KAMO Power
M&A Electric Power Cooperative
Northeast Missouri Electric Power Cooperative
NW Electric Power Cooperative Inc.
Sho-Me Power Electric Cooperative
Total nonmember sales
Peak hour member demand (MW)
Member load factor (%)
Member load growth (%)
Energy
Demand
Total capacity (MW) (see capacity notes, back cover)
Net generation (MWh)
29,662,252 20,809,048 4,038,322 8,141,438 1,881,714 1,526,355 1,846,763 3,374,456 8,853,204 5,899 40.0
5,626 24,554,809 $48.95 28,025,964 19,454,686 3,819,710 7,432,573 1,787,267 1,487,095 1,755,055 3,172,986 8,571,278 5,549 39.7 3.8 27.0 5,584 22,690,024 $55.97 27,762,367 18,734,107 3,734,710 6,978,652 1,732,893 1,460,073 1,723,436 3,104,343 9,028,260 4,369 48.2 (2.9) (3.7) 5,703 23,325,319 $46.98 Year 2024 2023 2022 2021 2020 27,787,388 19,891,381 3,864,577 7,755,027 1,757,614 1,454,068 1,858,990 3,201,105 7,896,007 5,716
Revenue from members
Associated
serves six
G&Ts that
provide
power to 51 distribution co-ops in three states
Central Electric Power Cooperative – Jefferson City, MO
Founded in 1949 • 34 counties served
• Boone Electric Cooperative – Columbia, Missouri
• Callaway Electric Cooperative – Fulton, Missouri
• Central Missouri Electric Cooperative Inc. – Sedalia, Missouri
• Co-Mo Electric Cooperative Inc. – Tipton, Missouri
• Consolidated Electric Cooperative Inc. – Mexico, Missouri
• Cuivre River Electric Cooperative Inc. – Troy, Missouri
• Howard Electric Cooperative – Fayette, Missouri
• Three Rivers Electric Cooperative – Linn, Missouri
KAMO Power – Vinita, OK
Founded in 1941 • 51 counties served
• Barry Electric Cooperative – Cassville, Missouri
• Barton County Electric Cooperative Inc. – Lamar, Missouri
• Central Electric Cooperative – Stillwater, Oklahoma
• Cookson Hills Electric Cooperative Inc. – Stigler, Oklahoma
• East Central Oklahoma Electric Cooperative Inc. – Okmulgee, Oklahoma
• Indian Electric Cooperative Inc. – Cleveland, Oklahoma
• Kiamichi Electric Cooperative Inc. – Wilburton, Oklahoma
• Lake Region Electric Cooperative Inc. – Hulbert, Oklahoma
• New-Mac Electric Cooperative Inc. – Neosho, Missouri
• Northeast Oklahoma Electric Cooperative Inc. – Vinita, Oklahoma
• Osage Valley Electric Cooperative Association – Butler, Missouri
• Ozark Electric Cooperative – Mt. Vernon, Missouri
• Ozarks Electric Cooperative Corp. – Fayetteville, Arkansas
• Sac Osage Electric Cooperative Inc. – El Dorado Springs, Missouri
• Southwest Electric Cooperative – Bolivar, Missouri
• Verdigris Valley Electric Cooperative Inc. – Collinsville, Oklahoma
• White River Valley Electric Cooperative Inc. – Branson, Missouri
M&A Electric Power Cooperative – Poplar Bluff, MO
Founded in 1948 • 18 counties served
• Black River Electric Cooperative – Fredericktown, Missouri
• Ozark Border Electric Cooperative – Poplar Bluff, Missouri
• Pemiscot-Dunklin Electric Cooperative – Hayti, Missouri
• SEMO Electric Cooperative – Sikeston, Missouri
Northeast Missouri Electric Power Cooperative – Palmyra, MO
Founded in 1948 • 33 counties served
• Access Energy Cooperative – Mt. Pleasant, Iowa
• Chariton Valley Electric Cooperative Inc. – Albia, Iowa
• Lewis County Rural Electric Cooperative – Lewistown, Missouri
• Macon Electric Cooperative – Macon, Missouri
• Missouri Rural Electric Cooperative – Palmyra, Missouri
• Ralls County Electric Cooperative – New London, Missouri
• Southern Iowa Electric Cooperative Inc. – Bloomfield, Iowa
• Tri-County Electric Cooperative Association – Lancaster, Missouri
NW Electric Power Cooperative Inc. – Cameron, MO
Founded in 1949 • 32 counties served
• Atchison-Holt Electric Cooperative – Rock Port, Missouri
• Farmers’ Electric Cooperative Inc. – Chillicothe, Missouri
• Grundy Electric Cooperative Inc. – Trenton, Missouri
• North Central Missouri Electric Cooperative Inc. – Milan, Missouri
• Platte-Clay Electric Cooperative Inc. – Kearney, Missouri
• United Electric Cooperative Inc. – Savannah, Missouri
• West Central Electric Cooperative Inc. – Higginsville, Missouri
Sho-Me Power Electric Cooperative – Marshfield, MO
Founded in 1941 • 26 counties served
• Crawford Electric Cooperative Inc. – Bourbon, Missouri
• Gascosage Electric Cooperative – Dixon, Missouri
• Howell-Oregon Electric Cooperative Inc. – West Plains, Missouri
• Intercounty Electric Cooperative Association – Licking, Missouri
• Laclede Electric Cooperative – Lebanon, Missouri
• Se-Ma-No Electric Cooperative – Mansfield, Missouri
• Southwest Electric Cooperative – Bolivar, Missouri
• Webster Electric Cooperative – Marshfield, Missouri
• White River Valley Electric Cooperative Inc. – Branson, Missouri
