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Community Caring for our Growing

WAKE ELECTRIC 2021 ANNUAL REPORT wemc.com | information@wemc.com

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Caring for Our

Growing Community Last year, Wake Electric celebrated the installation of the co-op’s 50,000th electric meter, a major milestone for your local electric cooperative founded in 1940. While much of our service territory is still rural, we now also serve some of the fastest-growing communities in North Carolina.

“This achievement highlights a period of sustained growth for our co-op that began in the early 2000s and continued even through a historic pandemic. It is truly an accomplishment to reach this meter milestone,” said Jim Mangum, general manager and CEO of Wake Electric.

Wake Electric remains the fastest growing of the 26 electric cooperatives in North Carolina. In 2020,

JIM MANGUM General Manager and CEO

during the co-op’s largest growth year, the cooperative gained approximately 2,145 new meters. Much of this growth is because of the expansion of Raleigh and its suburbs and is focused near previously small towns like Wake Forest, Rolesville and Knightdale. As the cities and towns have expanded geographically, now more than 17,000 (more than 34 percent) of Wake Electric’s members live inside city or town limits.

“If the past is an indicator of the future, we will have the opportunity to keep growing. The test for Wake Electric will be our ability to continue to control costs and harness new technologies like energy storage, renewable energy and electric vehicles to meet the challenges associated with rapid growth,” Mangum said.

The cooperative experienced record growth again in 2021, the co-op now provides electrical service to more than 51,000 meters. Wake Electric is proud of this milestone and is excited to power a growing number of homes in our communities while continuing to work hard to provide members with affordable, sustainable and reliable power.

SUZY MORGAN Board President

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WAKE ELECTRIC

Building a

Brighter

Future

Along with the rest of North Carolina’s electric cooperative network, our vision centers on achieving two voluntary sustainability goals: a 50 percent reduction in carbon emissions from 2005 levels by 2030 and net-zero carbon emissions by 2050.

To reach these goals, we will continue to rely on emissions-free nuclear, an extremely reliable, safe and affordable source of electricity that currently fuels more than half our power, along with natural gas, which can be dispatched quickly when needed.

We are bringing more renew-

Wake Electric is committed to pursuing a brighter future for our members and the community we all share—a brighter future that continues our commitment to delivering reliable electricity at the lowest possible cost while also advancing responsible sustainability goals.

able energy resources online while investing in new technology, such as battery storage, to make renewables like solar power more versatile and reliable.

As a locally based cooperative, Wake Electric remains committed to not only powering, but also empowering our community.

That’s why our vision extends far beyond delivering reliable, affordable, sustainable electricity to include community support efforts like education initiatives and economic development activities that truly demonstrate the cooperative difference.

Our structure affords us unique opportunities to make local investments and engage with local people, businesses and community leaders to work together to meet changing needs.

The brightest part of our future will always be you, our members.

We look forward to continuing to serve you and to building a brighter future, now and in the years to come.

WAKE ELECTRIC ANNUAL REPORT | 2021 3

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Commitment to our

Community

Give us an “A” program granted gift cards to students with “A” grades

Member assistance

$28,715

$4,030 Classroom technology grants to public schools and community colleges

Operation RoundUp grants to nonprofits

$16,198

$21,265 College scholarships

$20,734

$50,184

$91,146

Total amount dedicated to educational grants

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Wake Electric to Add Utility-Scale Battery Energy Storage to Local Grid

Wake Electric is in the process of installing cuttingedge battery energy storage technology in Wake Forest. The battery project will be integrated at an existing electric substation, adding local energy resources that will enhance system resilience and reliability for co-op members.

“Wake Electric believes that this energy storage project will allow the cooperative to store power during off-peak times and use that electricity when capacity is constrained, resulting in reliable and affordable power supply for years to come,” said Don Bowman, vice president of engineering and operations.

The battery in Wake Forest is one of 10 substation batteries being deployed in rural locations this year by North Carolina’s Electric Cooperatives, including Wake Electric. Collectively, the batteries will provide 40 MWs of power.

Wake Electric to Add Solar Farm

Wake Electric continues its support of renewable energy by building a 638-kW solar farm with a 1,115 kWh Tesla battery located near the New Life Church on Zebulon Road east of Wake Forest.

This project demonstrates Wake Electric’s commitment to balance renewable energy with controlling costs for its members. While the solar panels will soak up the sun’s rays, the batteries will allow Wake Electric to use that power during times when purchasing other types of power would be more expensive.

“Wake Electric believes that pairing solar power with batteries will allow the cooperative to store power during off-peak times and use that electricity when energy use is at its highest, resulting in reliable and affordable power supply for years to come,” said Don Bowman, vice president of engineering and operations.

The solar panels are enough to power approximately 100 average-sized homes during daylight hours while the batteries are the equivalent of about 15 Tesla electric vehicles.

For both of these initiatives, the batteries will be charged when demand for electricity is low and discharged during moments of peak demand for power. This not only enhances electric reliability but is expected to provide cost savings over the lifetime of the batteries. Co-op members will benefit from those savings because cooperatives are not-for-profit, at-cost energy providers.

WeCare Recap for 2021 BEGINNING BALANCE 1/1/2021

$173,551

Contributions Received Bank Fees/Check Reorder Interest Earned

150,831 — 80

TOTAL FUNDS AVAILABLE

$324,463

Community Grants Assistance League of the Triangle Area Autism Society of North Carolina CORRAL Riding Academy East Wake Education Foundation Granville County Extension and Volunteer Association KidsPeace Lung Transplant Foundation North Carolina Down Syndrome Alliance Optimist International Foundation Prevent Blindness Special Olympics North Carolina St. John’s Episcopal Church Transitions LifeCare Wake Forest Lion Charities Watkins Community Volunteer Fire Department COMMUNITY GRANTS TOTAL

$(21,265)

Educational Bright Ideas Teacher Grants Classroom Technology Grants Wake Electric Scholarships Give Us An “A” EDUCATIONAL GRANTS TOTAL MEMBER ASSISTANCE ENDING BALANCE 12/31/2021

(50,184) (16,198) (20,734) (4,030) $(91,146) (28,715) $183,336

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Commitment in the

Field

Our Consumers

2020

2021

48,089

50,250

TOTAL CONSUMERS

Total miles of line 2020

2021

45,346

47,464

RESIDENTIAL CONSUMERS RESIDENTIAL KWH SOLD (EXCLUDING SEASONAL)

2020 | 622,467,590 2021 | 662,180,291 TOTAL KWH SOLD

Transmission 2020

58

2021

58

Overhead 2020

1,839

2021

1,836

Underground 2020

1,559

2021

1,618

2020 | 793,517,116

Total Miles Energized

2021 | 833,222,740

2020 2021

3,456 3,512

AVERAGE MONTHLY KWH/RESIDENTIAL CONSUMERS

2020 | 1,144 2021 | 1,163

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Consolidated Balance Sheets

Wake Assets Electric AS OF DECEMBER 31

2021

2020

UTILITY PLANT

Property, plant, & equipment Less: accumulated depreciation Net plant Construction work in progress

$307,802,821 (82,276,104) 225,526,717 8,561,809

$279,110,340 (76,805,481) 202,304,859 14,035,048

TOTAL NET UTILITY PLANT

$234,088,526

$216,339,907

Other Assets

Investments in associated organizations Economic development project investments Other investments Nonutility property TOTAL OTHER ASSETS

26,939,437 1,690,827 1,651,880 0

24,529,707 1,617,463 1,661,880 0

$30,282,144

$27,809,050

Current Assets & Deferred Charges Cash & cash receivables Accounts receivable, net Other current assets Deferred charges

373,545 10,606,255 5,007,501 139,443

84,785 11,836,168 4,122,694 231,065

TOTAL CURRENT ASSETS & DEFERRED CHARGES

16,126,744

16,274,712

$280,497,414

$260,423,669

TOTAL ASSETS

continues to be one of the fastest-growing co-ops in North Carolina and in the nation. We continue to balance costs, affordability and reliability as part of our continued commitment to our members.

Equities & Liabilities EQUITIES

Membership fees Patronage capital Other equities

228,280 105,958,899 6,095,641

217,310 99,756,148 5,912,712

TOTAL EQUITIES

112,282,820

105,886,170

$135,314,968

$117,652,238

TOTAL LONG-TERM DEBT

Current Liabilities

Current portion of long-term debt Operating line of credit Accounts payable & deferred credits Other accrued liabilities Consumer deposits

3,884,994 13,486,006 12,267,128 1,922,060 1,339,438

5,221,245 13,890,730 14,529,075 1,977,205 1,267,006

TOTAL CURRENT LIABILITIES

32,899,626

36,885,261

$280,497,414

$260,423,669

TOTAL EQUITIES & LIABILITIES

Consolidated Statement of Operations AS OF DECEMBER 31

2021

2020

$98,722,153

$94,116,245

OPERATING REVENUE

How your co-op dollar was spent in 2021

Cost of purchased power

62.9 ¢

8.4 ¢

Depreciation

OPERATING EXPENSES

Cost of purchased power Operations & maintenance Consumer accounting Consumer service & information Administrative & general Depreciation Taxes TOTAL OPERATING EXPENSES

62,078,802 8,052,450 3,357,018 603,964 4,642,826 8,275,202 1,509,584

61,612,976 6,895,310 3,161,979 582,064 4,266,318 7,899,239 1,434,909

$88,519,846

$85,852,795

OTHER INCOME/EXPENSES

Interest expense on debt Patronage capital from other cooperatives Other income/expenses

(4,880,913) 3,082,296 56,479

(4,751,549) 3,150,447 167,448

TOTAL OTHER INCOME/EXPENSES

(1,742,138)

(1,433,654)

NET MARGINS

$8,460,169

$6,829,796

8.2 ¢

Operations & maintenance

5.4 ¢

Margins

4.9 ¢

Interest expense

4.7 ¢

Administrative expense

4.0 ¢

Customer service

1.5 ¢

Taxes

Wake Electric’s financial records were audited by McNair, McLemore, Middlebrooks & Co., LLP, of Macon, Ga. The reports for the fiscal years ending Dec. 31, 2021 and 2020 are available for review at the cooperative’s facility in Youngsville.

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Commitment to our

Region

1

2

At large

GRANVILLE

VANCE

3 DURHAM

Board of Directors DISTRICT 1

DISTRICT 2

7 FRANKLIN

6 4

5

NASH

DISTRICT 3

8

Allen Nelson

Greg Fuller

Mike Dickerson Vice President

DISTRICT 4

DISTRICT 5

DISTRICT 6

9

WAKE

JOHNSTON

Joe Hilbum

Suzy Morgan President

Bob Hill Treasurer

DISTRICT 7

DISTRICT 8

DISTRICT 9

Rodney Privette

Joe Eddins Secretary

Reuben Matthews

P.O. Box 1229, Wake Forest, NC 27588 919.863.6300 | 800.474.6300 | wemc.com

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Wake Electric is headquartered in Youngsville and serves 51,000 consumers across its service territory.

The co-op’s Customer Service Center is located in downtown Wake Forest.

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