2025 Built by Gen, Powered for the Future Annual Report

2025 BUILT BY GENERATIONS POWERED FOR THE FUTURE

ANNUAL

REPORT Annual Membership Meeting Thursday, October 9th, 2025 Doors Open at 5:30 pm Meeting Begins at 7:00 pm Richard M Borchard Regional Fairgrounds 1213 Terry Shamsie Blvd, Robstown, TX

ANNUAL MEETING PROGRAM REGISTRATION

DOORS OPEN AT 5:30 PM

DINNER & ENTERTAINMENT

BBQ DINNER CATERED BY HOWARDS BBQ. CHILDREN’S ENTERTAINMENT BY CUDDLES & CRITTERS. BOOTHS FOR: OPERATION ROUND UP, SAFETY, MEMBER SERVICES, SCHOLARSHIPS & YOUTH TOUR, HALO FLIGHT, MEET A LINEWORKER & MORE!

BUSINESS MEETING

AT 7:00 PM THE BUSINESS MEETING WILL BE CALLED TO ORDER BY NEC BOARD PRESIDENT, BRIAN MENKING

NEC CO-OP ENERGY WINNERS

1ST PRIZE $500 ELECTRIC BILL CREDIT 2ND PRIZE $250 ELECTRIC BILL CREDIT REFERRAL PROGRAM WINNER PRIZE DRAWINGS

CALL TO ORDER

BRIAN MENKING, BOARD PRESIDENT

INVOCATION PRESENTATION OF COLORS

BOY SCOUTS OF AMERICA TROOP 65, CORPUS CHRISTI

NATIONAL ANTHEM CALL FOR PLEDGE OF ALLEGIANCE BRIAN MENKING, BOARD PRESIDENT

PRESENTATION OF BOARD MEMBERS AND COMMITTEE MEMBERS

ANNUAL MEETING SURVEY Please fill out the survey in your gift bag and drop it in the box by the exit on your way out.

BRIAN MENKING, BOARD PRESIDENT

PRESENTATION OF SPECIAL GUESTS BRIAN MENKING, BOARD PRESIDENT

READING OF MINUTES AND TREASURER’S REPORT BRIAN MENKING, BOARD PRESIDENT DAVID ROSSE, SECRETARY/TREASURER

“BUILT BY GENERATIONS POWERED FOR THE FUTURE” VIDEO

BRIAN MENKING, BOARD PRESIDENT VARZAVAND “AVAN” IRANI, CHIEF EXECUTIVE OFFICER

ELECTION OF CANDIDATES BY ACCLAMATION BRIAN MENKING, BOARD PRESIDENT

2

MEETING ADJOURNMENT

BRIAN MENKING, BOARD PRESIDENT

TRANSPORTATION ASSISTANCE Shuttle service is available for guests with disabilities. Thank you for your patience as we make every effort to assist you.

7 COOPERATIVE PRINCIPLES THESE PRINCIPLES ARE VALUES THAT COOPERATIVES UPHOLD WHICH SET US APART FROM OTHERS Cooperatives, like Nueces Electric Cooperative, operate according to the same set of core principles and values. These principles are a key reason that electric cooperatives operate differently from other electric utilities, putting the needs of our member-owners and communities first.

RY A T N U N HIP ntary L VO OPEBERS re voluto apllt ship. & EM ives a, openaccember M perat tions ng to f me , D N IO , ANN T CA ING TIO U s, ED AINRMA tionemberall TR FO educoar m, andribute IN ide ng f ives ont p c -o ov ini at P r t r a s e n t e s t oo c o & pre oye ly t t. re pl tive en emfec opm ef vel de

D N Y A CE OMDEN N TO PEN are fU A DE tives , sel ns r IN era ous atio thei z op om ni by Co ton orga d au lp olle . he ntr bers co em m

23

o za illi s o Co gani ns w ilitie or rso nsib pe spo re

IC M NO O EC ON tive its ’ S I l ER PAT operaontro B M ICI he coand cly.

E M RT of t irly tical PA bers te faocra m bu m Me ntri l de co pita ca

OL d C R I AT ONTntrolle R OC ER C are c,owho M s in DE EMBativesmbeirpate M oper ir meartic y c Co the ly p poli s. e y n v b ti ing sio ac ak eci m d

R FO Y RN NIT rk E C U s wo ble ir N M e a e CO OM eratiuvstainof thoughy C oop e s ent thr d b C r th pm ties pte rs. fo elo uni cce be v a de mm ies mem o c c oli eir p th

N IO T RA ES E V P I O G T COMON ERAs oA OP ative the c y CO oper then ent bther Co reng vem oge st mo ng t l to op rki loca nal wo om atio s. fr tern ure in ruct st

As we reflect on 2024, we do so with deep pride and gratitude. For the generations who built this cooperative from the ground up, and for those who continue to power it forward. Nueces Electric Cooperative (NEC) was founded on strong roots: faith, grit, and community. That same spirit continues to guide every decision we make and every mile we serve.

This past year reminded us of what it means to be part of something greater. In 2024, NEC crews drove more than 767,849 miles with zero safety incidents or accidents. That number isn’t just impressive, it represents a culture of care, responsibility, and a commitment to our members and to one another.

Just as those before us invested in NEC’s future, we continue that legacy by investing in our people.

Through ongoing training and leadership development, our employees gain the tools they need to grow and lead. When our team is empowered, the cooperative becomes stronger from the inside out. Each department, Accounting, Engineering, IT, Compliance, and many more contributed to this progress.

Together, we honor tradition while building momentum for the future.

financial stewardship that builds on our legacy Through strategic investments and strong financial performance, NEC allocated more than $7 million to members’ capital credit accounts. In 2024, $2.1 million in patronage capital was returned to members.

Additionally, NEC Co-op Energy refunded $3.75 million in Power Perks to those who remained loyal throughout the year.

NEC maintains a healthy balance between a sound capital structure, debt, and equity to ensure long-term viability and strong financial standing. Over $4 million was invested in utility plant assets, reflecting a continued commitment to financial strength and operational efficiency. Since June 2022, the organization has upheld its long-standing policy of operating without incurring additional long-term debt.

NEC Co-op Energy ensured reasonable and competitive rates, which helped attract new members while sustaining the loyalty of those we already serve. This continued focus on affordability and value has resulted in a strong and resilient membership base.

operational excellence grounded in tradition Our Operations team upheld NEC’s legacy of dependable service, achieving a 2% overall increase in meters across its service territory, while NEC Co-op Energy recorded a 6.7% increase in ESID growth.

Though outages increased slightly due to weather, the average outage duration decreased thanks to efficient crew dispatching and the speed and skill of our line crews. Our teams participated in ongoing emergency training, reinforcing readiness and continuous improvement for potential weather events.

The IT Department made meaningful upgrades as well, restructuring roles for efficiency, enhancing cybersecruity, and managing vendor relationships to protect member data and support our mission.

Our strength has always come from those who came before us and those who pave the way forward. Every safe mile, every member served, and every decision made in 2024 reflects both the legacy we honor and the future we are building.

Thank you for trusting us to serve. Together, we carry this mission forward.

BRIAN MENKING, NEC PRESIDENT

A LEADERSHIP MESSAGE FROM OUR NEC PRESIDENT AND NEC CHIEF EXECUTIVE OFFICER 4

serving members. strengthening communities.

While operations and technology move us forward, our members remain the reason we do this work. In 2024, NEC achieved a member satisfaction score of 97, significantly above the national average of 75.

That level of trust doesn’t happen by chance—it’s the result of consistent, attentive service built on relationships, not transactions.

Beyond electricity, our greatest service is showing up for you. With dedication and heart, our employees volunteered more than 505 hours to support causes that uplift and strengthen our communities. That’s more than double from the previous year. Whether it was mentoring students at local career days, rolling up their sleeves at Agape Bed Builds to provide beds for children in foster care, or simply lending a hand where help was needed most, our team showed what it truly means to live the cooperative spirit.

These moments remind us that at the heart of our mission is something greater than electricity: a deep, shared commitment to being neighbors serving neighbors.

empowering the next generation That same spirit of giving extends into our scholarship program and charitable efforts. In 2024, we awarded approximately 14 scholarships totaling $34,000 to local students pursuing everything from college degrees to careers in the trades. Whether it is in memory of past leaders or through year-round opportunities like our lineman college scholarships, we are proud to support the next generation of professionals in our communities.

Through the generosity of members participating in Operation Round Up, Nueces Electric Charities contributed $152,700 to local nonprofits last year, including organizations like Mission of Mercy and FOCUS Foundation. Every cent rounded up goes right back into the community, multiplying impact through small, steady acts of kindness.

At NEC, giving is not a seasonal campaign. It’s our culture. It’s part of who we are and it’s how we ensure that what was built by generations before us continues to make a difference today.

rooted in legacy. ready for what’s next.

As we close out 2024, we carry forward a deep and enduring sense of gratitude—for our dedicated employees, our loyal members, and the communities that continue to place their trust in us. Together, we kept the lights on in times of need, opened doors to educational opportunities, safeguarded our systems with stronger cybersecurity, and reinvested in the people who make our mission possible.

Each achievement of 2024 stands on the shoulders of those who came before us—visionaries who laid the groundwork for a cooperative built to last. Their commitment lives on through every mile we travel, every member we serve, and every challenge we rise to meet.

Looking ahead, we know the future is not something we wait for, it is something we build together—one decision, one innovation, and one act of service at a time.

NEC is more than just a utility provider, we are a community, rooted in legacy, powered by purpose, and ready for what comes next.

BUILT BY GENERATIONS POWERED FOR THE FUTURE VARZAVAND “AVAN” IRANI, NEC CHIEF EXECUTIVE OFFICER

5

Sue Stewart District 5

Dr. Rumaldo Z. Juarez District 1

Donald Wayne Herrmann District 4

Gregg Truesdale District 2

Brian Menking District 6

David Rosse District 3

CURRENT DIRECTORS 6

Gladys Lippincott District 7 Retail

BRIAN MENKING DISTRICT 6

GLADYS LIPPINCOTT DISTRICT 7 (RETAIL)

SUE STEWART DISTRICT 5

Mr. Menking has been an NEC member since February 1977 and joined the Board of Directors in April 2007. He holds the NRECA Credentialed Cooperative Director, Board Leadership, and Director Gold certifications. As current Board President, he serves on the Budget and Finance, Building Study, District Boundary, Education, and Governance Committees. An engineer and business owner, Mr. Menking is also active in Immanuel Lutheran Church. He believes a director’s key role is to provide strong leadership in a rapidly evolving market and brings over 40 years of leadership and business experience to the board. He lives in Alice with his wife, Ann, and has two children, Heidi and Christopher.

Gladys Allen-Lippincott has been an NEC member since 1955 and has served on the Board since 1986, continuing a family legacy of leadership. She holds the NRECA Credentialed Cooperative Director, Board Leadership, and Director Gold certifications. Over the years, she has served on numerous committees and played a key role in NEC’s transition into retail competition. A retired manager of Texas Legal Support Services, Gladys is active in several community organizations and is a proud grandmother of twenty. She remains committed to upholding the trust of NEC members and working toward continued growth and affordable service.

Susan Stewart was born in Alice and raised on her family’s ranch in McMullen County. A licensed vocational nurse, she spent 26 years with San Miguel Electric Cooperative, gaining valuable insight into cooperative operations and member service. Her connection to NEC runs deep—her late mother, Maxine Stewart, served on the Board until 2019. Susan followed in her footsteps, first serving on NEC’s Community Involvement Committee, then being elected to the Board in 2022. She currently serves on several committees, including Strategic Planning, Governance, Annual Meeting, and Education, and chairs the Retail Market Committee. With decades of cooperative experience and a strong sense of service, Susan is proud to represent NEC members.

CANDIDATES FOR ELECTION 7

TREASURER’S REPORT BALANCE SHEET

ASSETS

UTILITY PLANT AT COST Electric Plant in Service Right of Use Lease Assets Construction Work in Progress

Less: Accumulated Provision for Depreciation

other property and investments Investments in Associated Organizations Investments in Treasury Strips Other Investments - Special Funds

current assets Cash - General Temporary Cash Investments Accounts Receivable (Less allowance for uncollectibles of $543,182) Accrued Unbilled Revenue Materials and Supplies Other Current and Accrued Assets Total Current Assets

DEFERRED CHARGES TOTAL ASSETS EQUITIES

EQUITIES AND LIABILITIES

Memberships Patronage Capital Other Equities Other Comprehensive Loss

LONG-TERM DEBT CoBank Mortgage Notes CFC Mortgage Notes Right of Use Lease Liability Less: Current Maturities

other long-term liabilities Post-Retirement Benefits Less: Current Maturities

current liabilities Current Maturities of Long-Term Debt Current Maturities of Post-Retirement Benefits Accounts Payable - Purchased Power Accounts Payable - Other Consumer Deposits Accrued Taxes Accrued Interest Patronage Capital Payable Accrued Employee Compensated Absences Other Current and Accrued Liabilities Total Current Liabilities

8

deferred credits total equities and liabilities

2024 $ 163,031,331 562,113 3,473,008 $ 167,066,452 42,291,858 $ 124,774,594 $ 57,612,645 31,481,423 769,462 $ 89,863,530 $

3,069,595 2,858,084

3,581,234 2,503,854 2,270,750 594,376 $ 14,877,893 7,650 $ $ 229,523,667 $

642,120 129,478,452 11,761,698 (229,413) $ 141,652,857 $ 52,472,954 11,818,356 396,288 (3,656,191) $ 61,031,407 $ 223,503 $

3,656,191 29,743 4,903,885 1,576,749 2,604,262 380,941 321,991 797,144 1,177,978 445,017 $ 15,893,901 $ 10,721,999 $ 229,523,667

TREASURER’S REPORT STATEMENTS OF INCOME AND PATRONAGE CAPITAL

operating revenues Residential Small Commercial and Industrial Large Commercial and Industrial Public Street and Highway Unbilled Revenue Late Payment Penalties Rent from Electric Properties Other Operating Revenues Naval Base Net Margin (Loss) Total Operating Revenues

2024 $ 72,612,340 13,138,530 6,991,858 968,301 173,977 794,270 299,785 2,143,167 (100,817) $ 97,021,411

operating expenses Purchased Power Distribution - Operation Distribution - Maintenance Consumer Accounts Customer Service and Information Administrative and General Depreciation Taxes Other Interest Other Deductions Total Operating Expenses

$ 62,072,347 1,852,535 4,111,880 5,675,059 472,873 7,148,227 4,714,225 1,564,474 114,533 314,774 $ 88,040,927

OPERATING MARGINS - BEFORE FIXED CHARGES FIXED CHARGES

$

8,980,484

Interest on Long-Term Debt

$

2,888,659

operating margins - after fixed charges

$

6,091,825

$

2,964,548 1,103,111 4,067,659

G&T Captial Credits Other Captial Credits

net operating margins nonoperating margins

Interest Income Other Nonoperating Income Gain on Disposition of Property

net margins comprehensive income (loss)

$

$ 10,159,484 $ $ $

Current Year APBO Valuation

1,488,470 34,695 52,410 1,575,575 11,735,059

Patronage Captial Retired

23,365 11,758,424 (23,365) 121,128,048 (2,125,410)

Unbilled Revenue Transferred to Other Equitites Nonoperating Margins Transferred to Other Equities

316,330 (1,575,575)

comprehensive income Less: Post-Retirment Benefit Adjustments

patronage capital - beginning of year

patronage capital - end of year

$

$ 129,478,452

9

Member Services & Information 6.7

HOW YOUR DOLLAR WAS SPENT

Cost of Purchased Power 68.8

767,849 Miles Driven

Admin & General 7.8

Taxes 1.7

Operations 7.8

Net Interest 3.3

54,854 Accounts

Total Wages of $7,483,712.61

577 New Services Built

171,800 Hours Worked

6 Facilities

12,121 Hours of Overtime

MEMBER GROWTH 38,327

38,630

2022

2023

42,138

*863,940,862 Total Power Sold

Hydro 0.9% Solar Nuclear 1.6% 2.4% Wind 14.2%

3,287 Miles of Line

Coal/Lignite 25.94%

2024

HOW WE PERFORMED IN 2024 Natural Gas 54.93%

*Measured in kWh

10

Depreciation 5.2

8 VOLUNTEER EVENTS 80 VOLUNTEER EMPLOYEES

505 VOLUNTEER HOURS

ROOTED IN SERVICE, DRIVEN BY PURPOSE. At NEC, volunteering isn’t just something we do—it’s part of who we are. Our employees proudly carry forward a tradition of service that has been built by generations before them. By giving their time and talents, they’re creating stronger communities today and helping power a better tomorrow.

COMMUNITY SERVICE 11

MINUTES OF THE ANNUAL MEETING CALL TO ORDER The 86th Annual Meeting was held October 10, 2024, at the Richard M. Borchard Regional Fairgrounds. President Brian Menking called the meeting to order at 7:00pm. Director David Rosse, Secretary/Treasurer certified that a quorum was present. Alicia Carlisle from Immanuel Lutheran Church of Alice delivered the invocation.

RECOGNITION OF YOUTH TOUR DELEGATES Vice President, Dr. Rumaldo Juarez introduced the 2024 Washington D.C. Youth Tour Delegates who also received a $1000 college scholarship.

RECOGNITION OF HALO-FLIGHT PROGRAM President, Brian Menking recognized HALO-Flight, and their Guardian Program made available to NEC members for emergency air ambulance service. HALO-Flight also received grant support from Nueces Electric Charities Community Grants.

RECOGNITION OF EMPLOYEES President, Brian Menking recognized all NEC employees for their dedicated service.

READING OF PROOF OF MAILING OF MEETING NOTICE President Menking stated that the meeting notice was published in the October 2024 Texas Co-op Power and mailed to members on September 30, 2024.

MINUTES OF 2023 ANNUAL MEETING President, Brian Menking stated that the minutes of the 2023 annual meeting had been provided in the October 2024 issue of the Texas Co-op Power Magazine and the Annual Report Booklet. A motion was made, seconded, to dispense with the reading of the minutes and accept as printed. Motion carried.

TREASURER’S REPORT President, Brian Menking stated that the Treasurer’s Report had been provided in the October 2024 issue of the Texas Co-op Power Magazine and the Annual Report booklet. A motion was made, seconded, to dispense with the reading of the Treasurer’s Report and accept as printed. Motion carried.

PRESIDENT AND CEO REPORTS A video of staff and Board President Brian Menking was shown to our membership in attendance highlighting key events from 2024.

ELECTION OF DIRECTORS With David Rosse being the only nomination for the position of Director for District 3, President Brian Menking, serving as chair, declared David Rosse elected by acclamation to a three-year term to District 3, in accordance with Article III, Section 6 of the Bylaws.

ADJOURNMENT There being no further business, a motion was made and seconded to adjourn the meeting at 7:32 p.m. Motion carried.

CLOSING ANNOUNCEMENTS SURVEY COMPLETION A reminder was made to fill out the survey inside the registration gift bag or if a digital survey is preferred a QR code was made available at tables and around the building.

NEC RETAIL MEMBER REFERRAL PROGRAM WINNERS Chief Retail Officer Frank Wilson announced the NEC Co-op Energy Referral Program winners. NEC Co-op Energy member Kang Wang received a $500 electric bill credit for first place and Derek Williams received a $250 electric bill credit for runner up.

PRIZE DRAWINGS Prize drawings were held after referral program winners were announced.

David Rosse, Secretary - Treasurer Approved: Brian Menking, President

12

NUECES ELECTRIC CHARITIES

2024

GRANT RECIPIENTS AGAPE RANCH AMERICAN RED CROSS BEN BOLT VOLUNTEER FIRE DEPARTMENT BIG BROTHERS BIG SISTERS OF TEXAS COASTAL BEND BILLIE TRIMBLE CHANDLER ARTS FOUNDATION CALALLEN EDUCATION FOUNDATION CAMP ARANZAZU CASA OF KLEBERG COUNTY CASA OF THE COASTAL BEND CORPUS CHRISTI SYMPHONY SOCIETY CHILDRENS ADVOCACY CENTER OF THE COASTAL BEND CHILDRENS COALITION OF ARANSAS COUNTY COASTAL BEND COMMUNITY FOUNDATION CORPUS CHRISTI EDUCATION FOUNDATION CORPUS CHRISTI METRO MINISTRIES CORPUS CHRISTI PREGNANCY CENTER EDUCATING CHILDREN’S FUTURE COMMUNITY CENTER FAMILY COUNSELING SERVICE FANNIE BLUNTZER NASON RENEWAL CENTER FOCUS FOUNDATION FOSTER ANGELS OF SOUTH TEXAS FOUNDATION GULF COAST HUMANE SOCIETY HALO FLIGHT

Giving back to the communities we serve is a core part of who we are at NEC. Through NEC’s Operation Round-Up program, the co-op and our members are able to make a big impact with small change. By rounding up your electric bill to the nearest dollar, you can contribute no more than 99 cents each month to support local organizations and families in need.

This program proves that small change adds up in a big way.

Thanks to your generosity, Nueces Electric Cooperative awarded $152,700 $152,700 to 39 community charities in 2024. NEC continues to invest in the people and organizations that keep our communities strong. Together, we are building a brighter, more connected future that will last for generations to come.

MISSION OF MERCY NUECES COUNTY 4H TRAP & SKEET NUECES COUNTY JUVENILE JUSTICE VOLUNTEERS INC PROSPERA HOUSING & COMMUNITY SERVICES REAL INC. SOUTH TEXAS LIGHTHOUSE FOR THE BLIND

START HERE

SOUTH TEXAS MISSION OF MERCY STCH MINISTRIES TENNIS SUCCESS TEXAS STATE MUSEUM OF ASIAN CULTURES THE JUNIOR LEAGUE OF CORPUS CHRISTI TULOSO MIDWAY EDUCATION FOUNDATION WALK WITH PRIDE FOUNDATION WOMEN'S SHELTER OF SOUTH TEXAS DBA PURPLE DOOR YOUTH ODYSSEY, INC. YWCA CORPUS CHRISTI

13

2026 APPLICATIONS ARE NOW OPEN! DEADLINE TO APPLY IS FRIDAY, JANUARY 3OTH, 2026. SCAN FOR MORE INFORMATION.

EMERY GRIGG SANTA GERTRUDIS ACADEMY

ALEXANDER CADENA

AGUA DULCE HIGH SCHOOL

NEC is proud to invest in the next generation of leaders. Each year, we sponsor two local high school juniors, who are dependents of NEC members, on the Government-in-Action Youth Leadership Tour. This all-expense-paid trip gives students the chance to explore historic sites, meet U.S. congressional leaders, and learn about electric cooperatives. Youth Tour participants also receive a $1,000 scholarship if they attend an accredited Texas college or university.

YOUTH LEADERSHIP TOUR 14

2024

12

HIGH SCHOOL SENIORS

FROM

9

LOCAL HIGH SCHOOLS

AWARDED A TOTAL OF

$32,000

Joshua Garcia

Julianna Garcia

Ian Mayberry

Sarah Dupont

Riley Unterbrink

Wyatt Hagedorn

Sascha Stelker

Kaylee Larson

Isabella Gonzales

Rani Bhakta

Kate Kennedy

Sierra Gonzalez

SCAN SCAN FOR FOR MORE INFO

Nueces Electric Cooperative proudly invests in the next generation through the Ramiro De La Paz and John L. Sims scholarship program. Funded by unclaimed capital credits, these scholarships help local high school seniors who are dependents of NEC members that plan on pursuing higher education at Texas universities, college, or trade schools.

2024 SCHOLARSHIP

AWARD RECIPIENTS

15

EDUC A

RS DO

ON TI

SAVE

VEN

Nueces Electric Cooperative presents

A WATT

AN ENERGY EFFICIENCY & CONSERVATION EVENT

Learn how to save on your monthly electric bill from NEC professionals!

JOIN US!

DO

O R P RIZES

Nueces Electric Cooperative - HQ Office 14353 Cooperative Ave, Robstown, TX November 1, 2025 9 am - 12 pm

SCHOLARSHIPS

YOUTH TOUR

We are proud to support the next generation of local students. Each year, we award scholarships to graduating seniors who are dependents of our members and plan to pursue higher education at accredited Texas universities, two-year colleges, or line work programs

NEC proudly invests in tomorrow’s leaders by sponsoring high school juniors on an all-expense-paid trip to Washington, D.C. This unique experience is open to dependents of NEC members and includes a $1,000 scholarship for those who pursue higher education at a Texas college or university.

Deadline to apply is January 30, 2026!

Deadline to apply is February 10, 2026!

SCAN TO APPLY FOR A SCHOLARSHIP!

SCAN TO APPLY FOR YOUTH TOUR!