DIXIE ELECTRIC COOPERATIVE ANNUAL REPORT 2025 1
TABLE OF CONTENTS BOARD OF TRUSTEES 1 MANAGEMENT TEAM 2 THE COOPERATIVE DIFFERENCE
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CONNECTION 3 MEMBER SERVICES 3 EDUCATION 3 COMMUNITY 4 2025 FACTS AND FIGURES 5 VALUE 6 RELIABILITY 6 2025 BALANCE SHEET 7 DISTRIBUTION OF EXPENSE DOLLAR
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2025 STATEMENT OF OPERATIONS
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SECRETARY-TREASURER’S REPORT
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FINANCIAL REPORT 8 2
EXECUTIVE REPORT
R. GARY HARRISON PRESIDENT/CEO
As I reflect on our accomplishments over
The cooperative difference means our
the past year, I am continually reminded
values extend far beyond basic business
of the unique foundation that sets our
operations. True to the seventh cooperative
organization apart. We do not answer to
principle—Concern
distant shareholders looking for a short-
actively invest where it matters most. Over
term return on investment. We answer to
the last 12 months, our team dedicated
you—our members. This is the core meaning
volunteer hours and financial support to
behind the cooperative difference: a values-
local
driven business model that places people,
scholarships,
reliability, and community impact above
strengthen our communities.
corporate profit.
youth
for
Community—we
development, and
civic
educational
programs
that
Our accomplishments this year prove
The cooperative difference is demonstrated
that the cooperative model is not just a
in how we handle our financial obligations.
relic from the past; it is the most resilient,
Because we operate as a not-for-profit
equitable business structure for the future.
entity, any revenues collected beyond
It is a model that allows us to focus on the
our operating expenses belong directly to
best interests of our members.
you. I am proud to report that through our commitment to fiscal responsibility, we have remained fiscally sound over this past year while continuing to return value directly to our membership. In 2025, your board of trustees approved the return of over $2.5 million in capital credits to our members.
Thank you for your continued engagement, your democratic participation, and your trust in your cooperative. We remain steadfastly committed to serving you with safety, accountability, and care. At Dixie, we are always looking out for you.
In addition, we were able to maintain stable and affordable rates.
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DIXIE ELECTRIC COOPERATIVE
BOARD OF TRUSTEES
THOMAS ELLIS
DISTRICT 1, SEAT 1
HELENA DUNCAN
TOM JAMES
CHAIRMAN DISTRICT 1, SEAT 2
PHILLIP JOHNS
J. BRETT SIKES
DISTRICT 1, SEAT 3
JOHN LIVINGS
SECRETARY/TREASURER DISTRICT 2, SEAT 4
DISTRICT 2, SEAT 5
DISTRICT 2, SEAT 6
ANDREW CALLAWAY
ALBERT PERRY
JIMMY ELLIS
DISTRICT 3, SEAT 7
4 1 | Board of Trustees
DISTRICT 3, SEAT 8
VICE CHAIRMAN DISTRICT 3, SEAT 9
MANAGEMENT TEAM GARY HARRISON President/CEO
MIKE BARLOW
Chief Financial Officer
OUR MISSION Dixie Electric Cooperative is committed to safely providing its member-owners with economical and reliable electric power and related services. OUR VISION Dixie Electric Cooperative’s vision is to improve the quality of life in and around the communities we serve. OUR VALUES
ERNIE FAULKNER
Vice President, Member Services, Marketing & Economic Development BRANDON JOHNSON
Vice President, Engineering & Operations BRENT MOFFETT
Vice President, External Affairs
& Special Projects KAMIKA REEVES
Vice President, Human Resources & Administrative Services
Dixie Electric Cooperative is committed to maintaining the following values: Safety Integrity Member-Owner Oriented Efficiency Accountability Community Commitment
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THE COOPERATIVE DIFFERENCE
At Dixie Electric Cooperative our commitment to our members is at the center of everything we do. We work hard to provide reliable and affordable power, always looking for ways to improve our services to better meet your needs. Safety, integrity and community are our top priorities. We are dedicated not only to keeping the lights on, but also to supporting the growth and well-being of our entire community. Your trust motivates us to serve you better every single day.
EDUCATION
CONNECTION MEMBER SERVICES
Dixie Electric Cooperative provides electricity to over 22,000 members, serving more than 27,000 businesses and homes across parts of eight Alabama counties. With so many members, we handle a high volume of interactions throughout the year. With more than 227 years of combined experience, our member service representatives are dedicated to serving you. In 2025, they processed 481,813 payments and answered nearly 38,000 phone calls, averaging more than 3,100 calls each month. We continually look for ways to make payments easier and more convenient for our members, while also prioritizing personal service and strong community connections.
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Sponsored 8 high school juniors on Montgomery Youth Tour
3 | Connection
At your cooperative, we believe today’s youth will be tomorrow’s leaders. The students we connect with now may one day be board members, employees or valued members. That is why we invest time and resources into programs that help them grow. Through educational programs, scholarship opportunities and training for teachers, we aim to give them the tools they need to succeed. In 2025, we awarded $51,000 in scholarships to 16 local students to help them pursue their goals, whether at a trade school, a two-year college or a university. We also sponsored 28 teachers from our service area to attend the EMPOWER Energy Education Workshop, providing them with training and resources to bring STEAM subjects to life for their students.
Sponsored 4 high school juniors on Washington D.C. Youth Tour
Awarded 16 high school seniors with scholarships totaling $51,000
The Rural Electric Cooperative Youth Tour program provides high school juniors with a unique opportunity to explore the cooperative business model, gain insight into the political process and tour significant sites in both our state’s capital and Washington, D.C. In 2025, we sent eight students to the Montgomery Youth Tour, and four of those advanced to the Washington Youth Tour for a week in our nation’s capital. There, they visited historic sites, learned about government and met with congressional leaders. Through career fairs and safety demonstrations, our linemen inspired and educated over 3,770 students in 2025. By sharing their knowledge and experience, they helped students learn about electrical safety, introduced them to careers in the utility industry and taught them about electric cooperatives. We are proud to support the growth and success of students in our community and remain committed to investing in their futures.
COMMUNITY
Giving back to our community is a priority for us, and we are proud to be involved in a variety of local programs and service projects throughout the year.
Inspired and educated over 3,770 students through career fairs and safety demonstrations
We participated in WSFA’s Summer Fund and Food Drive, supporting the Heart of Alabama Food Bank, as well as 12’s Day of Giving, which also benefits the Heart of Alabama Food Bank as well as the Christmas Clearinghouse and Toys for Tots. Through these efforts, we helped to raise over $121,759, collect 22,371 pounds of food and gather 5,000 toys for those in need. In the office, we assembled and delivered 287 fruit baskets to local seniors and nursing homes, sponsored nine families in a local Montgomery Angel Tree program, and contributed $375 to the DHR Angel Project in Bullock County. We work hard to connect with our members through a variety of communication channels, including social media. We use Facebook and X to share updates about community events, provide important outage information and share helpful energy tips and safety messages to keep everyone informed. Staying involved and connected with our members matters to us. Your cooperative is powered by people who care about members and community. Every day, we work to reflect our mission, vision and values in all that we do.
Helped to raise $121,759, 22,371 pounds of food and 5,000 toys
Assembled and distributed 287 fruit baskets to senior members of the community
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2025 Annual Report | 4
2025 FACTS & FIGURES 613,677,542
1,171
27,245
96
Total kWh sold
Average monthly residential kWh usage
Homes & businesses served
Full-time employees
2,090
705
519
901
Miles of overhead lines
Miles of underground lines
Padmount transformers inspected
Meters inspected
8,863
736
611
517
Pole inspections performed
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Pole changes performed
Miles of right of way treated
Miles of right of way cleared
VALUE As a member-owned, not-for-profit electric cooperative, Dixie doesn’t exist to generate profits for shareholders. Instead, we set rates to cover the cost of providing reliable service to our members. When revenues exceed our expenses, those excess margins are allocated back to your capital credit account, based on how much electricity you used throughout the year. Because everyone’s usage is different, the amount allocated to each account varies. If Dixie were a for-profit utility, these funds would go to outside shareholders instead of returning to our members. Each year, your board of trustees reviews our finances to determine how much can be refunded. Our bylaws require these payments to be made by the First In, First Out method. In 2025, the board approved returning over $2.5 million in capital credits from 2004 and 2005, bringing our total refunds to members to more than $24.5 million since 1997. Being part of a cooperative definitely has its privileges. Unlike most businesses, we actively encourage our members to use less of our product, electricity, where possible. Through our customer service portal, mobile app and MyUsage, residential members can monitor daily power use online and set up alerts for high usage. We also have an energy auditor who offers onsite inspections for homes, providing personalized recommendations to improve energy efficiency. She provides members with hourly usage data and guides them through any applicable loan or rebate programs that would offer financial resources for energy efficiency upgrades. In 2025, we completed 145 energy audits and provided 213 electric water heater replacements to our members. Your cooperative offers a variety of rate options to meet the needs of our residential and commercial members. Our residential rate offerings include a traditional monthly billed residential rate, a prepaid electric service rate, an electric vehicle time of use rate, a traditional time of use rate, and a distributed generation rate for those members who have solar panel installations at their residence. We also offer an electric vehicle rebate for those members who register their electric vehicle with the cooperative. Your cooperative processed 56 electric vehicle rebates in 2025.
Our Green Power Choice program was modified in 2025 to expand our renewable energy offerings to include biomass, hydro and solar resources. Green Power Choice is our way of offering you access to green, carbon-free energy. Through this program, members can purchase renewable energy certificates to power their home or business with green energy – the simple way.
RELIABILITY Electricity powers so many parts of our lives, which is why reliability is so important to our memberowners. We understand that even short outages can disrupt daily routines for households, businesses and industries alike. That is why we are committed to delivering the dependable service you expect. In 2025, our system reliability was 99.95 percent.
99.95% SYSTEM RELIABILITY
We spend a great deal of time planning for your future energy needs. This includes regularly evaluating our system, preparing for growth and working closely with PowerSouth Energy Cooperative to ensure we have the necessary generation capacity. To maintain reliability, we conduct thorough inspections of padmount transformers, poles and meters. In 2025, we inspected 519 padmount transformers, 8,863 poles and 901 meters, replacing 736 poles to strengthen our system. Vegetation management is another important part of our reliability efforts. Our crews use both equipment and herbicides to clear and maintain the right of way. In 2025, we cleared and trimmed 517 miles and treated 611 miles of right of way, allowing us to maintain the entire system on a five-year cycle. Although our goal is to provide uninterrupted electricity, occasional outages are sometimes unavoidable. We review outage data every year to identify areas for improvement and to prioritize upgrades. When outages do happen, our crews are committed to restoring power safely and as quickly as possible. We are always looking out for you!
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2025 Annual Report | 6
BALANCE SHEET As of December 31, 2025 ASSETS Utility Plant Electric plant in service, at cost Construction work in progress Total utility plant Less: Accumulated provision for depreciation Net utility plant
2025 $ 183,106,512 3,415,088 186,521,600 47,937,707 138,583,893
Other Assets and Investments Investments in associated organizations Investments in Cooperative Utility Services Other investments Right-of-use assets Total other assets & investments
30,352,104 1,489,305 384 54,101 31,895,894
Current Assets Cash Accounts receivable Materials and supplies Other current assets Total current assets
3,061,865 5,722,937 2,127,698 297,313 11,209,813
Deferred Charges Total Assets
106,604 $ 181,796,204
LIABILITIES AND OTHER CREDITS Equities Memberships Patronage capital Other equities Total equities
Current Liabilities Current maturities on long-term debt Accounts payable Consumer deposits Accrued liabilities Right-of-use liabilities Line of Credit Total current liabilities
3,249,004 5,090,044 6,180,662 6,255,914 34,884 1,000,000 21,810,508
Other Liabilities
9,456,342
Total Liabilities and Other Credits
The financial information provided is part of the financial statements for the year ended December 31, 2025, which contained an unmodified auditor’s opinion. A copy of the financial statements is retained at the Cooperative’s office
7 | Balance Sheet
$ 111,911 79,946,139 5,596,978 85,655,028
Long-Term Debt Mortgage notes payable 68,104,113 Right-of-use liabilities 54,101 Less: Current maturities right-of-use liabilities 34,884 Less: Current maturities 3,249,004 Total long-term debt (net of current maturities) 64,874,326
NOTICE:
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2025
$ 181,796,204
DISTRIBUTION OF EXPENSE DOLLAR
By Percentage
This graph provides a breakdown of our expenses by category and percentage. As you can see, the greatest expense incurred by your cooperative is purchased power. Power cost accounts for 62 percent of our expenses.
REPORT OF THE SECRETARY-TREASURER The board of trustees of Dixie Electric Cooperative has examined the balance sheet and financial statements for Dixie Electric Cooperative for the fiscal year-ending December 31, 2025. All subsidiary records and accounting procedures of the cooperative are kept in accordance with the Uniform System of Accounts as prescribed by the Rural Utilities Service. Your board of trustees reviews monthly statements. In turn, an independent audit has been performed by Gruenloh, Matz and Associates, P.C., Certified Public Accountants, on all cooperative financial records on a fiscal year basis as of December 31 for the preceding 12 months. Additional reviews are made periodically by the Rural Utilities Service for assuring compliance with required accounting procedures and mortgage requirements. Helena Duncan Secretary-Treasurer
STATEMENT OF OPERATIONS Revenue 2025 Electric Revenue $ 90,185,557 Other Operating Revenue 981,063 Total Revenue 91,166,620 Expenses Cost of Purchased Power Operations & Maintenance Expense Consumer Accounts & Sales Expense Administrative & General Depreciation Tax Expense Interest Expense Total Cost of Electric Service
52,473,853 10,399,124 5,773,843 4,893,392 5,334,517 3,550,981 2,387,738 84,813,448
Operating Margins
6,353,172
Non Operating Margins Generation & Transmission Capital Credits Other Capital Credits Patronage Capital
$
365,974 987,971 508,958 8,216,075
NOTICE: The financial information provided is part of the financial statements for the year ended December 31, 2025, which contained an unmodified auditor’s opinion. A copy of the financial statements is retained at the Cooperative’s office.
FINANCIAL REPORT Monies invested in system improvements and routine construction during the past year resulted in an increase in net utility plant of 5.5 percent. Kilowatt-hour sales increased 2.2 percent from 2024, while annual growth in consumers was slightly higher in 2025, increasing by 1.5 percent. The increase in kilowatt-hour sales can be attributed to changes in weather patterns as well as load growth in commercial/industrial accounts. Purchased power, or wholesale power, is the single largest component of our rate. This expense comprises the cost of generating the electricity we provide to our member-owners (including generating fuel, capital expenses associated with constructing and operating power plants, and transmission costs to deliver energy from the power plants to our lines). Power cost per kilowatt-hour sold increased 2.1 percent in 2025, with wholesale power accounting for 62 percent of our total cost of service – an uncontrollable yet essential expense. Total revenue for 2025 was $91,166,620. Operating margins were $6,353,172, or 7.0 percent of total 11 revenue. 2025 Annual Report | 8
9100 ATLANTA HIGHWAY MONTGOMERY, ALABAMA 36117 WWW.DIXIE.COOP 1.888.349.4332
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