2025
Annual Report
2025 ANNUAL REPORT
Table of Contents
Your board of directors elected by you, our member-consumers. 1
Kankakee Valley REMC Board of Directors
2
Message from the Board President & CEO 2025-2026 Junior Board of Directors
3-4
Secretary-Treasury Report and Financials
5
2025 Meeting Minutes
6
Operation Round Up Year in Review
Each Kankakee Valley REMC director is elected by the membership and they are member-consumers of the cooperative, too.
YOUR DIRECTORS FROM LEFT TO RIGHT
Katrina Harper | District 5
Exhibit A
Bill Bohling | District 3 Secretary-Treasurer Dean Moretton | District 2 David Janney | At-Large Board President Russell Guse | At-Large Chris Birky | District 1 Mike Yankauskas | District 4 Vice President
Scott Sears Chief Executive Officer
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About Your Cooperative Kankakee Valley Rural Electric Membership Corporation (REMC) headquartered in Wanatah, Indiana, is a member-consumer owned cooperative that provides electric power to portions of Starke, LaPorte, Porter, Lake, St. Joseph, Pulaski and Marshall counties in Northwest Indiana. Over 22,000 households and businesses receive power from Kankakee Valley REMC in 2025. The cooperative employs 56 people to serve its residential, commercial and industrial accounts.
2025 ANNUAL REPORT
LETTER TO THE MEMBERSHIP
THE COOPERATIVE DIFFERENCE:
Powered by members This past year demonstrated what we can accomplish when we work cooperatively. In March of 2025, we launched the time-of-use rate across the entire membership. Many of you embraced the change by shifting your energy use away from periods of highest demand. Those small changes made a big difference. Lower wholesale power costs allowed us to reduce electric rates by 6%, and we returned more than $3 million to our membership through bill credits. That’s the cooperative difference at work. Looking ahead, we’re continuing to invest in the strength of our electric system. Ongoing line rebuilds, equipment upgrades, and the continued construction of a new substation will help ensure strong grid reliability and prepare us to meet your growing needs today and in the future. These investments are more than just maintaining our system; they’re about preparing for the future while keeping reliability at the center of our focus.
communities, your cooperative’s responsibility remains clear: serving our members with safe, reliable, and affordable power. Growth will only move forward when it can be supported without jeopardizing the expected reliability that we are committed to providing. We continuously evaluate growth responsibly, balancing longterm opportunities with the needs of our membership and the communities we serve. Thank you for your trust and support. By working together, we are building a stronger cooperative that is investing wisely, planning responsibly, and remains focused on serving you now and for years to come.
Our region is experiencing growing interest from large energy users, including data centers. While these opportunities may bring economic benefits to our
Dave Janney Board President
Scott Sears Chief Executive Officer
Junior Board of Directors Juliana Cook
Hope Sanderson
Local high school juniors selected to serve on the Junior Board of Directors
Luke Drozd
Madison Scarborough
get the opportunity to gain valuable experience in leadership, teamwork
Lillian Earle
Grace Shukitis
and decision-making while learning about the community. The 8-month
Harper Hazelton
Luke Snow
program allows the students to work together to complete their own
Ava Jensen
Taylor Stacy
Clint Lemmons
Cailyn Tunis
Mallory Rinker
Elizabeth White
community service project, meet for monthly sessions and even visit the Statehouse and meet with area legislators. Successful completion of the program earns them a college scholarship.
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2025 ANNUAL REPORT
Secretary-Treasurer Report The cooperative continues to maintain a strong financial position. In the current year, over $10 million was invested in utility plant improvements required for reliable distribution. Members owned over $121 million in assets at year-end, with over 90% directly
for years to come, while collecting only what is needed to cover your cooperative’s operational expenses.
related to the distribution plant. Total assets increased
In total, the cooperative collected $46 million in
by approximately $7 million during the year.
revenue in the current year. Operating expenses
The cash held by the cooperative decreased slightly by $300,000. The largest cash uses are the purchase of power to distribute, investment in utility plant, and the return of patronage capital to members. Of the increase in assets, $4 million was through borrowing, while total
remained relatively unchanged compared to the prior year at $38 million. The increased investment in the utility plant drove the increased revenues. Total margins earned by the cooperative members totaled $4.3 million, consistent with prior years.
member-owned equity increased by around $3 million.
The cooperative continues its commitment to collect
This continues the balanced approach of using debt to
only what is needed from members to deliver the service
defer rate pressure on assets that will serve members
you require and deserve, safely and cost-efficiently.
Sources and Uses of Cash Margins F O R THE YE AR E N D I N G D E C. 31 , 2 025 Sources of Cash Sales to Members Borrowings from RUS/CFC (lenders) New Membership Fees & Consumer Deposits Total Sources of Cash
$45,937,055 6,000,000 (15,225)
$51,921,830
Kankakee Valley REMC has included in this report the financial statements from the year ended Dec. 31, 2025. These financial statements are reported to the REMC’s lenders, as well as our members. Kankakee Valley REMC also has an annual audit
Uses of Cash Payments to Power Supplier & Vendor
Group, LLC, Certified Public
New Construction & Replacement of Utility Plant
7,280,636
Accountants, for the fiscal year
Repayment of Long-Term Debt
1,641,376
reports are on file at the REMC
Deferred Charges
767,578
office and available for inspection
Total Uses of Cash
52,196,517
New (Decrease) or Increase in Cash
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performed by London Witte
$42,506,927
($274,687)
ended March 31, 2025. The audit
within 120 days after the audit period ends.
2025 ANNUAL REPORT
Statement of Operations OPERATING REVENUE
2024
2025
$44,479,957
$45,937,055
Comparative Balance Sheet 2024
2025
Total Utility Plant
$124,432,107
$131,712,743
OPERATING EXPENSES Purchased Power
Assets & Other Debits
$27,169,606
26,931,347
Operations
3,330,605
3,419,136
Maintenance
3,079,723
3,116,113
Customer Accounts & Collections
661,205
681,174
Less Reserve for Depreciation
33,925,896
33,965,153
Customer Service & Informational Expense
389,192
425,702
Net Utility Plant
90,506,211
97,747,590
3,601,373
3,887,858
$38,231,704
$38,461,330
Other Property & Investments
15,420,199
16,477,227
Cash & Temporary Investments
$3,079,626
$2,804,939
Accounts Receivable
3,285,506
2,096,499
Materials & Supplies
1,630,614
1,585,395
98,571
94,337
Administrative & General TOTAL COST OF OPERATING EXPENSES
General Funds
OTHER DEDUCTIONS Depreciation
$3,253,384
$3,583,490
—
—
1,970,088
2,257,977
Total Cost of Other Deductions
$5,223,472
5,841,467
Total Cost of Electric Service
$43,455,176
44,302,797
Operating Margins
$1,024,781
1,634,258
Non-Operating Margins
$1,082,142
1,001,297
Other Current & Accrued Assets
—
—
Other Capital Credits & Patronage Dividends
$1,564,044
1,691,931
Deferred Debits
861,332
767,578
Patronage Capital or Margins
$3,670,967
$4,327,486
$114,882,059
$121,573,565
Tax Interest and Other
2025 Operating Expenses Purchased Power $26,931,347 Operations $3,419,136 Maintenance $3,116,113 Customer Accounts & Collections $681,174 Customer Service & Informational Expenses $425,702 Administrative & General $3,887,858
Pre-Payments
Total Assets & Other Debits
Liabilities & Other Credits Membership Fees
$667,105
$669,275
Patronage Capital
51,726,228
52,545,579
Other Margins & Equities
5,864,498
7,710,879
Long-Term Debt — RUS
34,613,856
33,657,324
Long-Term Debt — Other
16,364,537
21,679,692
Notes & Accounts Payable
2,551,095
2,213,216
Consumer Deposits
1,136,436
1,119,041
Other Current & Accrued Liabilities
1,918,527
1,965,716
Deferred Credits
39,777
12,843
$114,882,059
$121,573,565
Total Liabilities & Other Credits
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2025 ANNUAL REPORT
MINUTES OF THE ANNUAL MEETING OF MEMBERS OF THE KANKAKEE VALLEY RURAL ELECTRIC MEMBERSHIP CORPORATION, INC. September 25, 2025 The 2025 Annual Meeting of the membership of the Kankakee Valley Rural Electric Membership Corporation was held at the Porter County Fairgrounds in Valparaiso, Porter County, Indiana, on Sept. 25, 2025. A catered meal with pork chops prepared by the LaCrosse Lions Club and sides by John Andy’s was served to the members beginning at 3:30 p.m. CST by REMC employees and board members. Live music by Ashlyn and Nate Venturelli was presented on the indoor stage. The business meeting was scheduled to begin at 7 p.m. CST, pursuant to notice provided to each member of the cooperative. The business meeting included the announcement of board members for a new three-year term, industry updates by the cooperative leadership team, recognition and a scholarship presentation to the Junior Board of Directors, and the awarding of prizes. A copy of the proof of mailing of the Notices and Secretary’s Affidavit is appended as EXHIBIT A, at the end of these minutes, and was included in the member program available to the membership at the Annual Meeting event for those who appeared and registered at the meeting, and also was available on the cooperative website. The business meeting opened, and the first matter of business was the consideration of the notice of the meeting. The reading of the Notice of the Meeting to Members as provided in Bylaw Art. III Sec. 3 was waived and dispensed after a motion duly made and seconded was carried on a unanimous vote. The next item on the agenda was the reading of the minutes of the 2024 Annual Meeting. On motion duly made and seconded, the membership resolved to waive the reading of the minutes. Then, on motion duly made and seconded, the minutes of the 2024 5
Annual Meeting were approved as printed in the program, on a vote. A count of the members present for the meeting showed that a quorum was reached pursuant to Bylaw Art. IV Sec. 4(d). A total of 628 members attended the Annual Meeting in person. The membership had been advised at the Annual Meeting that there were two director seats up for election at this Annual Meeting for terms of three years each or until their successors shall be duly elected and qualified. The candidates were selected by obtaining nominations by petition pursuant to the bylaws of the cooperative. Instructions were provided to all members on how to complete the membership vote online prior to the Annual Meeting or in person at the event. In accordance with Bylaw Art. IV, the following candidates were nominated for election by petition in Districts 1 and 2: • District 1: Chris Birky (unopposed) • District 2 : Dean Moretton Amy Swift Robert Wichlinski Attorney Krsak called the members appointed to serve as election inspectors to gather and begin counting the votes and to certify the election. The members appointed to serve as election inspectors were Dennis Leek and Tim Miller. The election inspectors, with assistance from KV REMC employees, counted the votes cast for the election for the District 1 position, where Chris Birky was running unopposed on the ballot. Ballots were counted and added to the pre-meeting voting, and the total results showed that Chris Birky had at least 1 vote. Thus, Birky
was duly elected director on the board of directors for District 1 for the ensuing three years or until their successors have been elected and qualified. Election inspectors, with assistance from KVREMC employees, counted the votes cast for the District 2 position, which included Dean Moretton, Amy Swift, and Robert Wichlinski on the ballot. Ballots were counted and added to the premeeting voting totals, and the results showed: Dean Moretton with 450 votes, Amy Swift with 407 votes, and Robert Wichlinski with 404 votes. Thus, Moretton was duly elected director on the board of directors for District 2 for the ensuing three years or until their successors were elected and qualified. The results of the election to the board for Districts 1 and 2 were duly certified by the Election Inspectors, and the prevailing candidates are as reported above. The Certificate of Election Inspectors is available to the member-consumers upon request at the Kankakee Valley REMC office. CEO Scott Sears announced the prize winners, including anyone whose registration card was selected, regardless of whether the member was present at the time of the drawing. The chairman called for any other business or new business to be brought to the attention of the membership; there being none, the meeting was duly adjourned.
Dave Janney Board President, Chairman of the Meeting
Bill Bohling Secretary of the board, Secretary of the meeting
2025 ANNUAL REPORT
SECRETARY’S AFFIDAVIT OF MAILING OF THE NOTICE OF THE 2025 ANNUAL MEETING
EXHIBIT A S TATE OF IND IA NA , C O U N T Y OF L A P O RTE I, Bill Bohling, being first duly sworn, upon his oath deposes and says: That I am the duly elected and qualified Secretary of the Kankakee Valley Rural Electric Membership Corporation, hereinafter called the Cooperative. That on the 27 day of August 2025, I had mailed to each memberconsumer of the cooperative, to the addresses as they appear on the records of the 2, a notice of the Annual Meeting of the member-consumers to be held on Sept. 25, 2025, by depositing such notice with postage prepaid thereon and addressed as aforesaid in the United States mail. The total number of memberconsumers receiving notice of the Annual Meeting on said date was 19,062.
OPERATION ROUND UP
2025 Year in Review In 2025, Operation Round Up continued its tradition of supporting the community by contributing $88,500 in grants to local non-profit organizations. These vital funds empowered a variety of groups dedicated to helping and supporting people throughout our service area. What makes Operation Round Up truly special is its grassroots approach. The program is entirely funded by the cooperative's generous members, who choose to round up their monthly bills to the next dollar. These small acts of kindness add up, turning spare change into significant support for those in need. Thanks to this collective effort, numerous non-profits received the resources they need to carry out their missions, whether providing food, shelter, education, or other essential services. Together, the co-op and its members are making a real difference, strengthening the foundation of our community one grant at a time.
2025 Operation Round Up Grant Recipients Bikes for Kids, Inc.
Pulaski County Human Services
Community Services of Starke County
San Pierre Parks & Recreation Society, Inc.
Family House Harold W. McMillen Center for Health Education Hebron Country Pantry Hilltop Neighborhood House Holy Spirit Church-St. Vincent DePaul LaPorte Symphony Orchestra LifeWise Academy East Porter County School Corp. LifeWise Academy North Judson-San Pierre North Judson United Methodist Church Food Pantry Making A Kid Smile (MAKS) Meals on Wheels of Northwest Indiana Porter County Ag Society Porter County Aging and Community Services
SC Weekend Food Pantry Servants at Work Starke County Initiative For Lifelong Learning Starke County Soil & Water Conservation District St. Thomas Aquinas Conference of the St. Vincent de Paul Society St. Vincent de Paul Supplemental United Food Pantry South County Love Your Neighbor The Caring Place The Church of Jesus Christ of Valparaiso Food Pantry The Christian Community Food Pantry Union Mills Conservation Club
Subscribed and sworn to Bill Bohling, Secretary, before me this 27th day of August
Alissa Wolf Notary Public County of Resident, LaPorte My commission expires Feb. 13, 2030
LifeWise Academy North Judson-San Pierre
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Our Mission
Exceeding the expectations of our community through service, trust and innovation.
kvremc.com | 219-733-2511 8642 W US Hwy 30, Wanatah, IN 46390