Pioneer Electric Cooperative 2023 Annual Report

Pioneer Electric Cooperative is committed to exceeding the energy needs and expectations of our consumermembers by providing safe, high quality and responsive service at fair prices.

American Consumer Satisfaction Index

Score:

86

Guided by 7 cooperative principles

Pioneer Electric serves residential, commercial, and large industrial members throughout rural Miami, Champaign, and Shelby counties, as well as portions of the eight surrounding counties — Mercer, Auglaize, Logan, Union, Madison, Clark, Montgomery, and Darke.

15,000+ miles of line

2,790 member-consumers

9 board trustees, members of the cooperative, are elected to represent the entire membership.

34 co-op members served as liaisons to the membership and as county board nominating committee members.

88 YEARS OF SERVICE

REFLECTING ON 2023: SUCCESSES AND THE FUTURE

As we reflect on 2023, Pioneer Electric Cooperative celebrates its commitment to safety, reliability, and you, our valued member. Throughout the year, the cooperative prioritized initiatives aimed at enhancing service quality and ensuring the safety of our members and the communities we are dedicated to serving.

A key component of Pioneer’s proactive approach has been comprehensive maintenance efforts, encompassing the replacement of electric meters and upgrades to the electric lines and distribution poles. Notably, 323 poles were replaced as part of Rural Digital Opportunity Fund projects, supporting local broadband initiatives, specifically in those areas that are underserved.

In coordination with contract crews, Pioneer conducted extensive tree trimming along electric lines, underscoring its dedication to preventive maintenance for reliable service delivery.

Safety remained paramount, with zero lost-time accidents in 2023, a true testament to our safety culture. Pioneer also provided educational programs for first responders and the community.

The Powering Possibilities initiative, an employee fundraising effort, exemplified Pioneer’s dedication to giving back. In 2023, donations totaling $3,000 were contributed to five local fire departments in 2023. Additionally, Pioneer extended support through mutual aid efforts to neighboring cooperatives and electric utilities. The cooperative also demonstrated its commitment to education by awarding scholarships and organizing summer energy camps for local youth, highlighting its commitment to education and concern for community.

Renewable sources, including solar, make up approximately 5% of Pioneer’s overall power supply. Pioneer saw 25 residential solar installations occur in 2023.

Looking forward, Pioneer acknowledges potential challenges, such as reliability concerns stemming from power plant closures and costs driven by inflation. Nonetheless, the cooperative remains focused on our commitment to prioritizing member interests and delivering dependable service.

POWERING COMMUNITIES TOGETHER

For 88 years, our cooperative has stood as a pillar in the community, dedicated to serving our members with unwavering pride and integrity. Throughout the years, we have evolved and grown alongside the communities we serve.

At the heart of our cooperative lies a simple yet powerful principle: You, our members, are the driving force behind everything we do. While we provide essential services like power, our cooperative is fueled by the collective strength and support of each and every member.

Through both good times and challenges, we have remained dedicated to empowering our members and meeting their diverse needs. Whether it’s ensuring reliable electricity, providing innovative solutions and efficiency advice, or supporting community initiatives, Pioneer Electric is here to serve you.

As we celebrate 88 years of dedicated service, we take a moment to reflect on our history and look ahead with optimism and determination — with you, our member, at the center of our focus. Together, we will not only power homes and businesses but also demonstrate our commitment to the values of cooperation and community.

Thank you for entrusting us with your energy needs and for being an integral part of our cooperative family. Here’s to many more years of strengthened partnership and shared progress as we work together toward a bright future.

IN

2023,

TOGETHER WE PROVIDED...

SCHOLARSHIPS

$5,500 in scholarships was awarded to eight children of members.

ECONOMIC DEVELOPMENT

$11,400+ was contributed to economic development projects in Champaign, Miami, and Shelby counties.

$3 Million+ was returned to current and former members in 2023. CAPITAL CREDITS

40+ YOUTH ENERGY CAMP

fourth- through sixth-grade students attended the second Pioneer summer energy camps.

REBATES & INCENTIVES

199 residential rebates were provided to members for a total of $67,800 in rebates.*

*Cost is shared with Buckeye Power

102 CREW OBSERVATIONS

Supervisors

ZERO

3 SAFETY DEMONSTRATIONS

4 INSTANCES OF MUTUAL AID

MARCH 5: AES, DAYTON, OHIO

MARCH 5-6: SOUTH CENTRAL POWER, LANCASTER, OHIO

APRIL 2: MIDWEST ELECTRIC CO-OP, ST. MARYS, OHIO

JULY 2: AES, DAYTON, OHIO

“Our daily priority centers on ensuring the safety of our crews, first responders, and the public. We’re committed to continuous improvement, recognizing that our ability to meet the needs of our members depends on the work ethic and dedication of our employees.”

– Steve McClay, Director of Operations and Safety

UTILITY POLES

Tested:

Total

Balance Sheet as of December 31, 2023

ASSETS

UTILITY PLANT AND OTHER PROPERTY

Electric plant in service

Construction work in progress

Less: Accumulated provision for depreciation and amortization

NET UTILITY PLANT AND OTHER PROPERTY

OTHER ASSETS AND INVESTMENTS

Right of use assets, net of accumulated amortization

Investments in associated organizations

TOTAL OTHER ASSETS AND INVESTMENTS

CURRENT ASSETS

Cash and cash equivalents

Accounts receivable, net of allowance for uncollectible accounts of $58,770 for 2023

Deferred charges

Materials and supplies

Prepaid power costs

Prepaid expenses and other receivables

TOTAL CURRENT ASSETS

TOTAL ASSETS

TOTAL ASSETS

ELECTRIC PLANT $148,000,000

$140,000,000

$133,107,634 2,913,051 136,020,685 (46,302,494) 89,718,191 324,495 37,990,885 38,315,380 9,715,020 6,418,407 171,541 1,199,804 159,132 1,643,500 19,307,404 $147,340,975

Balance Sheet as of December 31, 2022

Balance Sheet as of December 31, 2023

LIABILITIES AND EQUITIES

EQUITIES

Patronage capital

Donated capital

TOTAL EQUITIES

LONG-TERM LIABILITIES

Notes payable, less current maturities

Accrued postretirement benefits

Right of use liabilities

TOTAL LONG-TERM LIABILITIES

CURRENT LIABILITIES

Current maturities of notes payable

Current maturities of right of use liabilities

Accounts payable - purchased power

Accounts payable - other

Consumer deposits

Accrued taxes

Deferred credits

Other current liabilities

TOTAL CURRENT LIABILITIES

TOTAL LIABILITIES AND EQUITIES

$85,009,991 3,440,489 88,450,480 47,154,029 724,563 222,080 48,100,672 2,091,355 102,415 4,296,114 1,036,998 232,434 2,167,295 127,746 735,466 10,789,823

$147,340,975

Statement of Revenue and Expenses

for the year ended December 31, 2023

OPERATING REVENUES

OPERATING EXPENSES

Cost of power

Distribution expense - operations

Distribution expense - maintenance

Consumer accounts and sales expense

Administrative and general

Depreciation

Taxes

TOTAL OPERATING EXPENSES

OPERATING MARGINS BEFORE FIXED CHARGES

Interest on long-term debt

OPERATING MARGINS AFTER FIXED CHARGES

Capital credits from associated organizations

OPERATING MARGINS

NON-OPERATING MARGINS

Interest and dividend income

Loss on disposition of assets

Other expense, net

TOTAL NON-OPERATING MARGINS

NET MARGINS FOR YEAR

Statement of Cash Flow for

the year ended December 31, 2023

CASH FLOW FROM OPERATING ACTIVITIES

Net margins

Adjustments to reconcile net margins to net cash provided by operating activities:

Depreciation of utility plant

Amortization in postretirement net periodic benefit cost

Patronage allocation from associated organizations

Loss on disposition of property

Changes in assets and liabilities:

Accounts receivable (net)

Materials and supplies

Prepayments

Deferred charges

Accounts payable

Deferred credits

Accrued postretirement

Accrued liabilities

Consumer deposits

Net cash provided by operating activities

CASH FLOW FROM INVESTING ACTIVITIES

Extension and replacement of plant and non-utility property, net of salvage and removal costs

Patronage redemption and cash patronage proceeds

Net cash used by investing activities

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from notes payable

Payments on notes payable

Reassignment of patronage capital

Patronage capital credits retired

Net cash used by financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of year

17,336 (18,579) 618,291 (993,967) 104,523 (66,023) 129,709 1,818

6,886,554 (7,740,625) 2,197,918 (5,542,707) 4,000,000 (1,994,845) 181,194 (2,891,740) (705,391) 638,456 9,076,564 $9,715,020

Cash and cash equivalents at end of year $6,357,137 4,367,899 (39,200) (2,850,387) 88,005 (830,008)

BOARD OF TRUSTEES

Your board of trustees, elected by the membership, oversees the president/CEO, sets company policy, and monitors finances of the cooperative. They receive education and training to help best serve the members of Pioneer Electric Cooperative.

PIONEER

CONTACT

800-762-0997

www.PioneerEC.com

MAIN OFFICE

344 West U.S. Route 36 Piqua, Ohio 45356

DISTRICT OFFICE

767 Three Mile Road Urbana, Ohio 43078

OFFICE HOURS

8:00 a.m.– 4:00 p.m.

BOARD OF TRUSTEES

Terrence A. Householder

Chair

Colleen R. Eidemiller

First Vice Chair

Roger J. Bertke

Second Vice Chair

John I. Goettemoeller

Secretary

Mark A. Bailey

Treasurer

Robert Billings

Ted R. Black

John H. Vulgamore

Wade H. Wilhelm

Trustees

Ron L. Bair

Orville J. Bensman

Ronald P. Clark

Harold T. Covault

Donald D. DeWeese

Duane L. Engel

Dwain E. Hollingsworth

Douglas A. Hurst

Edward P. Sanders

Paul R. Workman

Trustees Emeritus

Ronald P. Salyer

President/CEO

Front row (L-R): John Vulgamore, Ted Black, Colleen Eidemiller, Robert Billings, and Wade Wilhelm; Back row (L-R): Roger Bertke, John Goettemoeller, Terrence Householder, and Mark Bailey