2024 Annual Report

Annual report 2024-2025

Lighting the past, powering the future

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a message to central members I can confidently say the energy at Central Rural Electric Cooperative is electric, and I’m not just talking about the power lines. The cooperative is built on community and service, and I’m proud to be part of a team that is consistently looking forward while honoring a long and strong history.

Central is more than a power provider, it’s a network of neighbors, built by hardworking hands and powered by a shared commitment to something bigger than any one individual.

What began in 1938 with 10 local farmers has developed into more than a power provider, it’s become a legacy.

Through years of hard work and dedication, Central has become more than 18,000 members strong. The spirit of neighbors helping neighbors still fuels everything we do today.

Since stepping into this role three months ago, I’ve been energized by the purpose that lives in this cooperative.

Connecting with members, working alongside our talented team and advocating on your behalf, both locally and nationally, has been a rewarding experience.

The past year brought its fair share of milestones and challenges. Wildfires swept across the service area, burning 160 poles and testing our infrastructure and the resilience of the communities we serve. I want to recognize not only the first responders but also our line workers and operations team for their quick response in the face of those threats. Their dedication and expertise

ensured that power was restored as quickly and safely as possible.

This year also marks one year since completing the monumental task of giving every member access to high-speed fiber internet through our subsidiary, Centranet. What started as a bold idea has transformed how many of our rural members live. By bridging that digital divide, I can already see how it has brought opportunity to rural homes and businesses on Central’s lines.

Member engagement was at an all-time high, with record attendance at Kilowatts and Brats and Annual Meeting. It’s clear that our members care deeply about the cooperative and its future, and I’m excited to meet all of you at these events this year.

Looking ahead, we’re focused on the future. We’re planning on capital improvements across our system to keep reliability high. We’re excited to continue to expand our fiber broadband subsidiary beyond our service area, helping bridge the digital divide for neighboring communities that deserve the same opportunities to connect.

I am excited to continue Central’s legacy. Thank you for your support and trust in Central. I am honored to be part of a cooperative that has been powering generations of families, farms and futures.

Shane Burgess, CEO

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powering financial stability As a member-owned utility, financial responsibility is one of the most important commitments Central can make to its members.

Unlike investor-owned utilities that prioritize profit for shareholders, electric cooperatives are guided by providing safe, reliable and affordable electricity, while operating in the best interest of their members.

Every decision we make, from maintaining power lines to upgrading technology, is evaluated with a long-term perspective.

Central doesn’t just look at what’s affordable today but considers what’s sustainable tomorrow.

Central works hard to return value to our members. When the cooperative earns more than it needs to operate, those margins are allocated back to you as capital credits. During 2024, Central returned $431,130 in capital credits to members.

Central also receives capital credits from KAMO Power, our power provider. This year, Central saw a rise in margins largely due to these capital credits. While this boosts our financials on paper, these are not immediate funds we receive.

Rather, they represent our share of margins from KAMO and will be returned to Central over time.

It’s worth noting that Central remains committed to providing affordable power to our members.

We currently have the secondlowest residential electric rates among all electric cooperatives in the state. That reflects careful planning, efficient operations and a continued focus on keeping costs down while maintaining reliable service.

Your cooperative remains on a solid financial foundation. Through prudent management, strategic investment and commitment to serving our members, we continue to build a financially-resilient future.

Member meetings are a cornerstone of electric cooperatives, reflecting their commitment to democratic control, transparency and community engagement. These meetings are vital opportunities to strengthen the cooperative’s relationship with members, who are also owners.

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2024 financial report 2024 INCOME 59%

RESIDENTIAL

39%

COMMERCIAL

2%

INDUSTRIAL

$431,130 IN CAPITAL CREDITS RETURNED TO 14,047 MEMBERS

WATTS THE RATE? 10.68¢ CENTRAL’S RATE OKLA. CO-OP 12.26¢ AVERAGE

13.83¢

INVESTOR OWNED UTILITY

Data from EIA.gov. 2023 Utility Bundled Retail Sales- Residential

Operating Revenues Purchased Power Distribution - Operations Distribution - Maintenance Consumer Accounts, Customer Service, Sales Administrative and General Depreciation and Amortization Taxes Interest On Long-Term Debt Other Interest and Other Deductions Total Cost of Electric Service Patronage Capital and Operating Margins G&T and Other Capital Credits Other Non-Operating Margins Provisions for Federal and State Income Taxes Net Margins

CONSOLIDATED ASSETS

2024 2023 $255,928,512 $240,492,192 $46,318,093 $42,256,940 $17,278,595 $21,024,446 $3,144,938 $0 $322,670,138 $303,773,578

Net Utility Plant Other Property and Investments Current Assets Deferred Charges Total Assets

CONSOLIDATED LIABILITIES AND EQUITY Equities Long-Term Debt Current Liabilities Other Long-Term Liabilities Total Liabilities and Equity

2024 2023 $80,577,764 $71,990,797 $41,784,409 $39,081,496 $7,236,210 $7,310,103 $3,428,674 $2,827,387 $1,930,390 $1,768,959 $4,555,916 $4,439,131 $10,623,985 $8,772,654 $48,922 $36,458 $7,602,193 $4,657,733 $274,634 $1,463,699 $77,485,333 $70,357,620 $3,092,431 $1,633,177 $4,985,029 $3,364,967 $196,518 ($3,273,622) $183,445 $0 $8,457,423 $1,724,522

2024 2023 $94,771,680 $86,469,436 $196,460,560 $181,160,961 $22,274,480 $25,715,544 $9,163,418 $10,427,637 $322,670,138 $303,773,578

FOR YEARS ENDING DECEMBER 31, 2024 AND 2023

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rooted in community Since its inception, cooperatives have always been about more than providing a service, it’s about members and the community.

One of the most impactful ways members continue to help their neighbors is through Central’s Operation Round Up program. In the program, members choose to round up their monthly electric bill to the nearest dollar, which is then invested into our local communities through the Central Community Foundation.

While the max donation from participating members is $11.88 per year, when combined across thousands of households, it creates a powerful impact that provides grants to local nonprofits, community projects and helps individuals and families during times of need.

Since its inception in 2006, more than $1.3 million in Operation Round Up funds have been distributed locally through the Central Community Foundation.

average member donation amount 5

Guided by members, for members, the Foundation’s board is made up of members from each district who volunteer their time by reviewing applications and ensuring accountability.

In a world that often feels divided, programs like Operation Round Up and the Central Community Foundation are a reminder of what is possible when people come together and neighbors help neighbors.

The Foundation reflects not only the values of the cooperative but also the heart of Central’s members.

Every rounded-up bill is more than spare change, it creates a spark of compassion and connection. When joined with others, that spark becomes a current powerful enough to change lives.

Thank you for participating and making a big difference within our seven-county service area.

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COMMUNITY FOUNDATION

2024 Stats 16,091 members participated in Operation Round Up

$89,153

granted through the central community foundation

71 given

grants

connections beyond the lines At Central, making connections goes beyond delivering electricity; it’s about empowering the next generation through youth programs that inspire leadership, learning and electrical safety. Below are Central’s youth programs.

Co-op Kids More than 400 children and grandchildren of Central members participate in the Co-op Kids program. The free program is designed to introduce children to the world of electric cooperatives and electrical safety.

The third Co-op Kids Day was held in April 2024, where the 107 participants visited with Central linemen; met Willie Wiredhand, the electric cooperative mascot; and learned about electrical safety.

Energy Camp

Youth Tour

Central offers two scholarships to attend Energy Camp, a summer camp near Hinton, Okla., hosted by the Oklahoma Association of Electric Cooperatives.

The 2024 Youth Tour winners, Annelise Ochsner from Stillwater and Hadleigh Stierwalt from Pawnee, won the all-expense paid, weeklong trip to Washington, D.C., where they visited national monuments, historical sights, Smithsonian museums and visited with members of Congress.

Eighth-grade students compete in an essay competition to attend the three-day camp.

The 2024 winners, Danielle Turner and Krish Gupta, stepped into a set of lineman hooks, climbed a utility pole, rode in a bucket truck and learned how cooperatives operate.

Live Line Demonstrations Central linemen gave more than 15 live-line safety demonstrations to schools, groups and organizations in 2024.

Central’s skilled linemen use real equipment to show just how dangerous electricity can be.

Scan the qr code to learn more about Central’s youth programs

Available to high school juniors attending school within Central’s service area, five students were chosen through an essay and interview competition. Two were selected to attend the trip, and the remaining three received $1,000 scholarships.

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central at a glance in 2024 During 2024, Central remained focused on delivering safe, reliable and affordable electricity to the communities we serve. Steady growth in meters, new services and miles of line highlight the continued

development across our system. Central’s team worked diligently to ensure infrastructure remained strong and resilient. The numbers on these pages tell the story of how Central is committed to progress.

209 1,161 NEW SERVICES

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MEMBERS HAVE

SOLAR CONNECTIONS

75

MEMBERS CASHED IN ON REBATES

24,850

Meters

98

EMPLOYEES

on

4,555 miles of line

by

23

substations

173 MW 5 PEAK DEMAND

METERS PER MILE OF LINE 8

What are

Rural breakers saying?

“Been a customer for over a year. Very Reliable (never had an outage or unreliability during a storm), and can handle a lot. We’ve got computers, streaming services, online gaming, phones...doesn’t seem to lag even when we have a good group over.”

-Scott, Facebook Review

883 NEW

SUBSCRIBERS

3,300 MILES OF

FIBER LINE

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462 VOIP USERS

“The service has worked flawlessly since the day it was installed. I now enjoy reliable, high-speed fiber at an incredibly reasonable price! I honestly can’t think of a single negative experience.”

-Cameron, Google Review

a ground breaking year It’s hard to believe we’ve already been open to all Central members for more than a year, it’s something truly incredible.

During that time, we’ve expanded service to the rural communities of Agra, Carney, Fallis, Luther and Wellston, bringing high-speed fiber internet – because strong communities deserve strong connections. And we’re not slowing down. Plans are underway to continue expanding so even more rural families can stream, work and connect with the world at the speed of light.

We’re also making strategic investments in our future, such as purchasing a new fiber hut to serve the Cushing area soon. Even with our growth, I’m proud to say we’ve maintained a low churn rate. That means our subscribers stick with us, and we’re grateful.

The first half of 2025 has already brought its challenges.

During the March wildfires, 1,400 of our subscribers were without internet access and our system suffered extensive damage. Thanks to the hard work of our team and crews from OEC Fiber, we were able to rebuild service within a couple of weeks, with a vast majority being back in service within a week. We don’t just talk about reliability, we build it back, fast.

Looking ahead, we’re planning for the long haul. We’ve been working hard to make our network even stronger and more redundant, with three diverse paths out of our network to the broader worldwide internet. Thus, if a backhoe or an aggressive gopher ever decides to take out a line, your service stays online. Each of the three routes can handle all of Centranet’s traffic, even if the other two routes are down.

Serving is what made Centranet a reality, and we want to serve you to our greatest capabilities. If your service isn’t as perfect as a fresh cup of coffee on a Monday morning, please call us! We’re here and ready to make it right. Your feedback helps us build a network so strong that even your teenager’s gaming habits can’t break it. And when you are binge watching “Severance,” you can’t afford to be buffering!

Thank you for trusting us to keep you connected.

MARK PRATHER, PRESIDENT OF FIBER 10

90 years of Powering progress Ninety years ago, life in rural America was dark.

While cities and towns across the nation buzzed with electricity and the promise of new technology, only 10 percent of rural homes had access to electricity. The daily tasks of farm work, pumping water, preserving food and heating homes remained backbreaking work. While the gap between rural and urban life was growing, our nation’s leaders knew something had to change.

Recognizing this urgent need, President Franklin D. Roosevelt officially launched the Rural Electrification Administration (REA) in 1935 as part of his New Deal programs. Roosevelt understood that access to electricity was not just about convenience, but about economic opportunity and quality of life.

At the time, most utility companies saw rural America as unprofitable and would not take the venture on.

Extending power lines to sparsely populated farms was costly and there was little financial incentive. Roosevelt’s REA changed that by providing low-interest loans that allowed rural communities to take matters into their own hands.

In 1938, two years after the REA was approved

by Congress, a group of 10 local farmers banded together to create what is now Central Rural Electric Cooperative. With an $85,000 loan, local farmers and rural residents built 172 miles of line that initially served 141 farms.

Electricity brought immediate and profound changes to rural life. Families could pump water, refrigerate food and light their homes, and farmers could operate more efficient equipment.

That $85,000 investment, which would be $1.9 million today, represented more than just poles and wires. It represented hope, opportunity and a belief in a better future. The farmers and families who founded Central weren’t just installing electricity, they were building a stronger, more connected community.

Thanks to Roosevelt’s leadership and the hard work of local farmers and families, the landscape of the nation changed forever.

Today, electric cooperatives serve more than 42 million Americans and cover more than half the landmass of the United States.

The same spirit that built those first 172 miles of line still drives our cooperative today. Local neighbors working together, ensuring that every home, no matter how rural, has access to safe, affordable and reliable electricity.

Because of national and local leaders, the cooperative spirit and lights came on, and they’ve never gone out.

Central’s First Headquarters 1935 Roosevelt establishes the Rural Electrification Act as part of the New Deal

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1938 Central State Rural Electric Cooperative is organized

1939 An $85,000 loan is secured to build 172 miles of line and serve 141 farms and homes

1939 The first annual meeting is held, and State is dropped from the name

delivering power with purpose Our reliability

1.78 HOURS

Our Energy Mix

AVERAGE OUTAGE DURATION PER MEMBER

PURCHASED

NATURAL GAS 4%

1%

HYDRO 6%

.77 AVERAGE OUTAGES PER MEMBER

99.9%

SYSTEM RELIABILITY UPTIME MEMBERS EXPERIENCE

24%

WIND ENERGY

65% COAL Central’s power is generated by Associated Electric Cooperative, Inc.

Central’s Current Headquarters

Central’s Remodeled and Expanded Headquarters

1949 Central celebrates its 10 year anniversary and serves 2,124 members

1980 Central serves 9,680 members and maintains 3,166 miles of line

2020 Central’s board of trustees approves system-wide fiber build out and establishes Centranet

2025 Central serves 24,850 meters on 4,555 miles of line Centranet serves 11,966 subscribers

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28 COMMUNITIES 13

7

COUNTIES

24,850 METERS

guiding central’s legacy The strength of any electric cooperative lies in the dedication of a group of members who not only understand the needs of their community but also are committed to ensuring reliable, affordable and safe electricity for generations to come. Central’s trustees volunteer their time to represent the voices of our membership, guide the cooperative and uphold the values that have defined us from the beginning.

James Wells, President District 6

Randy Wedel District 1

That beginning dates back to when 10 determined farmers came together with a shared vision of rural electrification. Their pioneering spirit laid the foundation for what our cooperative would become. Today’s trustees carry that same spirit. As stewards of Central’s legacy, our board honors the past while planning for the future, always keeping the needs of our members at the heart of every decision.

Sid Sperry, Vice President District 4

Melanie McGuire District 3

Greg Tytenicz, Secretary/Treasurer District 2

Ken Starks District 5

Randy Ethridge District 7

Central’s trustees, employees and volunteers break ground on what would become Central’s first headquarters.

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Phone 405-372-2884 | 3305 S. Boomer Rd. P.O. Box 1809 | Stillwater, OK 74076