MEL COLEMAN CEO
Reflecting on Progress Advocacy, innovation and reliability drive growth
As we close another year, we want to pause and express gratitude for your continued trust and support. Our cooperative was built on the promise of people coming together to improve the quality of life in their communities, and that promise still guides everything we do today.
Each decision, whether it’s about delivering reliable electricity, innovating for the future or advocating for affordable, responsible energy policies comes back to one simple question: How will this benefit the members we serve?
Policy advocacy
This past year has been marked by meaningful progress, both in strengthening our local system and in working at the national level to influence energy policies that directly affect reliability, affordability and resilience.
Over the past year, electric cooperatives across the country came together for advocacy efforts on the Environmental Protection Agency’s Power Plant Rule. As originally written, the rule would have forced a rapid shift away from always-available power generation resources, threatening the accessibility of a diverse fuel supply that keeps electricity reliable. Intermittent energy sources are a growing part of our energy future, but we know that the demand for electricity is rising rapidly, and natural gas, coal, nuclear and hydro remain essential for ensuring dispatchable power is available around the clock.
Electric Cooperatives of Arkansas helped move the needle on permitting reform, advocating for policies that make the process faster, more predictable and more efficient. Investments we make in infrastructure will reach communities sooner, improving reliability and preparing us for the future.
Disaster readiness
We’re also seeing progress with bipartisan support of the Federal Emergency Management Agency (FEMA) Act of 2025, which would speed up the disaster recovery process for electric cooperatives.
FEMA is a crucial partner for electric cooperatives in efforts to restore power after disaster strikes, but currently, the federal reimbursement process after a major storm is slow and mired with red tape. If passed,
As we collaborated and engaged with policymakers, we pressed for a more balance-of-power approach to generating power — one that supports intermittent energy innovation while still recognizing the role of readily dispatchable generation resources. Our efforts are helping to shape a more workable path forward that better protects reliability and keeps costs in check.
Another area of ongoing progress came through advocacy work on federal permitting reform. For too long, outdated rules and lengthy delays have stood in the way of building critical infrastructure, including transmission lines and generation projects. Modernizing this process is essential to strengthen the electric grid and keep pace with growing demand. This year, the
the bill would make FEMA a stronger, more responsive agency to help strengthen resilience, protect taxpayer dollars and ensure essential services are restored as quickly as possible after a natural disaster.
Future promise
As we look ahead to a new year, we see both challenges and opportunities on the horizon. The energy industry is undergoing significant change driven by the rising need for more electricity, new tools and technologies and federal energy policies.
The path forward requires innovative thinking and member-focused solutions. Through it all, our promise to you remains steadfast: reliable, affordable and responsible power for today –– and tomorrow.
Sole Power Project deliveries
Scholarship applications due April 1
The North Arkansas Electric Cooperative (NAEC) member-funded Operation Round Up® program awards thousands of dollars in scholarships to local graduating high school seniors each year. In 2024, 15 students were awarded $1,000 scholarships, and three students were awarded $4,000 scholarships to be disbursed in $1,000 installments for up to four years.
NAEC is accepting applications for the 2025-2026 scholarship program. The application is available at naeci.com or through high school counselors’ offices.
Applicants must mail or deliver the typed application to NAEC by April 1. They must include a transcript and two letters of recommendation — with at least one from a nonschool employee who is not a relative.
To be eligible for the scholarship, high school seniors must graduate at the end of the 2025 school year, and their parents or legal guardians must be NAEC members. Applicants also must have a grade-point average of 3.0 or higher on a 4.0 scale through the first semester of senior year. The scholarship must be used to attend an accredited institute of higher learning on a full-time basis. For more information, please contact Tori Moss, NAEC marketing and communications director, at (870) 895-6210 or tmoss@naeci.com.
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CONTACT NAEC (870) 895-3221
Members can help fund future scholarships by enrolling their accounts in Operation Round Up. Volunteers allow their electric bills to be "rounded up" to the next dollar each month. Call (870) 895-3221 to join today!
Viola Elementary School third grade receives athletic shoes through North Arkansas Electric Cooperative’s Sole Power Project. For 12 years, the co-op has given new shoes to third graders in the 12 public school districts in our service area. This is one way NAEC shows concern for community, one of the seven co-op principles we follow.
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Board selects York to fill Fulton position
Auto bank draft: Members' easiest payment option
The North Arkansas Electric Cooperative Board of Directors selected Ted York of Salem to fill the remaining term of Jim Short, who resigned from the board in September. York’s term will run through mid-2027.
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To fill the position, the board accepted résumés from interested Fulton County members. After reviewing the four submissions, the board interviewed two candidates before making a decision Oct. 23.
“On behalf of NAEC, we thank Jim for his years of service and wish him the best,” CEO Mel Coleman said. “We also welcome Ted to the board and know he will represent our Fulton County members well.”
Automatic bank draft is the most convenient payment method NAEC offers. Enrolling in this free service ensures the bill is paid on time each month. It also eliminates the cost of a stamp or time spent in the drivethrough lane.
Automatic bank draft is an electronic transfer from your checking or savings account to NAEC’s each month. On or about the 14th of every month, the amount of the bill is deducted from your account.
To enroll your account(s) in auto bank draft, call (870) 895-3221 or visit an NAEC office during regular business hours.
NAEC’s offices will be closed Dec. 24-25.
Sending an automated call when your home is going to be part of a planned outage or mailing a capital credits check are only two of the many reasons why NAEC might need to contact you. It's important to keep a current mailing address and at least one phone number and email on file. To update or check your contact information, call (870) 895-3221, visit an NAEC office or submit a form available at naeci.com/contact-naec.
Happy New Year! NAEC’s offices will be closed for the holiday Jan. 1. A dispatcher will be on duty, and personnel will be on call in the event of an outage. Report an outage by using the NAEC app or by calling (870) 895-3221.
NAEC App naeci.com ▶ Outage Viewer FOLLOW NAEC Twitter.com/NorthARElectric Facebook.com/NorthARElectric High school juniors have until March 5 to submit an application for Youth Tour, an all-expenses-paid trip to Washington, D.C., and Philadelphia June 14-20. Download the application at naeci.com.
NAEC returning $5.9 million in capital credits
North Arkansas Electric Cooperative (NAEC) will return $5,957,140 in capital credits to members in December. This marks the 38th consecutive year NAEC has refunded margins and brings the total returned to nearly $59 million since the co-op’s founding in 1939.
What are capital credits?
Unlike investor-owned utilities, NAEC operates as a not-for-profit cooperative and is owned by the members we serve. At the end of each year, the co-op subtracts, on a taxable basis, operating expenses from the amount of money earned through rates. The remaining balance is called taxable margins.
Taxable margins left over at the end of the year are allocated, or assigned, to each member’s account based on the amount of electricity for which each was billed.
The capital is retained by NAEC to use as operating capital for a period of time. This decreases the need to raise rates or borrow money to build, maintain and expand a reliable electric distribution system.
Every fall, the NAEC Board of Directors evaluates the overall financial condition of the co-op and decides the amount of capital, if any, to refund.
Will I receive a refund?
This year’s retirement represents approximately 57% of the margins assigned for 2000, approximately 78% of the margins assigned for 2001 and approximately 17% of the margins assigned for 2022. Only members who were billed for electricity during these years will receive a refund in 2025.
How are refunds given?
Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. Members with a refund of $50 or more will receive a check in the mail.
Nonactive members with a refund of more than $2 will receive a check in the mail as well. That is why it's important to maintain a current mailing address on file with NAEC if you ever move off of co-op lines.
Please call NAEC at (870) 895-3221 or visit an NAEC office during regular business hours with any questions about capital credits.
Members' small change leads to scholarships, grants
If you would like to help fund scholarships for local high school graduates and grants to nonprofits, then please consider joining NAEC’s Operation Round Up® program.
Members who join Operation Round Up agree to have their electric bill “rounded up” to the next dollar amount each month.
Enroll by calling (870) 895-3221, visiting an NAEC office or completing the form at naeci.com/operation-round-up.
Some members support Operation Round Up by donating their capital credits refund. If you would like to donate your refund, then please endorse your check and mail it to NAEC at P.O. Box 1000; Salem, AR 72576. You also can drop it off at an NAEC office. Donations are appreciated and tax-deductible.