2022 NREA Annual Report

NREA NEBRASKA RURAL ELECTRIC ASSOCIATION

Stronger Together 2022 ANNUAL REPORT A LOOK BACK AT THE ACCOMPLISHMENTS ACHIEVED IN THE LAST YEAR

NREA Nebraska Rural Electric Association

CONTACT 1244 K Street Lincoln, NE 68508 402.475.4988 WWW.NREA.ORG

2022 YEAR IN REVIEW

LEADING THE WAY Board President A.C. “Pat” Hecox

JOB TRAINING & SAFETY

LEGISLATIVE AFFAIRS & GOVERNMENT RELATIONS EDUCATION&TRAINING

BY THE NUMBERS Association Statistics

CONTENTS

Rick Nelson

TABLE OF

4 6 10 12 16 22

FROM THE MANAGER

FROM THE MANAGER I want to thank the NREA membership for allowing me the opportunity to lead your association. It truly is an honor for me to take on this responsibility. Hiring a general manager was just one aspect of 2022 for NREA. There has been so much more and some of you might be saying whoa, wait a minute, can one thing please remain the same.

I have felt that perspective and understand the feeling behind it. On the other hand, the more things change the more they stay the same. I would like to think that the strategic plan we embarked upon in March was not a change, but a refocus. The many miles of traveling in January and February by the Executive Committee and myself, was a refocus. Both of which were needed as an organization.

Cleaning up the policies that govern this organization provides a refocus on the way we operate. Not that there were many changes, but maybe a different look.

Meeting operational challenges within the organization was another area of focus in 2022. Taking a step back and evaluating NREA functions and services that are provided to the membership is crucial to moving NREA forward into the future. It is not always about cutting costs, but about providing service the best way possible and at the level that is expected.

Another aspect of the strategic plan was setting in motion a review of the way NREA is governed in the form of committee structure and board meeting structure.

That is one of the reasons why we are taking a hard look at what we do to communicate our position as a statewide organization to all our customers in Nebraska. Although, grassroots is not a new term, the way we can provide it could be a new way, but as an Association we can analyze what this may look like moving forward.

It is also important to highlight the relationships that were built in 2022 at Rural Electric Statewide Managers Association (RESMA) and National Rural Electric Cooperative Association (NRECA) meetings. These will be beneficial to the NREA for years to come.

I am excited about 2023 and all the great things to come, including the first year of this annual report. I sincerely hope you enjoy this report and look towards what 2023 might have to offer.

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EXECUTIVE COMMITTEE

A.C. Hecox DAWSON PPD

Greg Strehle CUMING COUNTY PPD

Kevin Thomas HIGHT WEST ENERGY

STATE DIRECTORS BURT COUNTY PPD • BUTLER PPD • CEDAR-KNOX PPD • CHERRY-TODD ECI • CHIMNEY ROCK PPD • CORNHUSKER PPD • CUMING COUNTY PPD • CUSTER PPD • DAWSON PPD • ELKHORN RPPD • HIGH WEST ENERGY • HIGHLINE ELECTRIC ASSN • HOWARD GREELEY RPPD • KBR RPPD • LACREEK ELECTRIC ASSN • LOUP VALLEYS RPPD • MCCOOK PPD •

Mike Williams Mark Blazek Randy Papenhausen Justin Brickner Richard Kildow Robert Gray, Jr. Greg Strehle Lloyd Ramsey A.C. Hecox Dennis Kuchar Kevin Thomas Merlin Prior Dan Scheer Jim Lee Clifford Lafferty Harry Walahoski Jim Ruggles

MIDWEST ECC • NIOBRARA ELECTRIC • NIOBRARA VALLEY EMC • NORRIS PPD • NORTH CENTRAL PPD • NORTHEAST POWER • NORTHWEST RPPD • PANHANDLE REMA • PERENNIAL PPD • POLK COUNTY RPPD • ROOSEVELT PPD • SOUTH CENTRAL PPD • SOUTHWEST PPD • STANTON COUNTY PPD • TWIN VALLEYS PPD • WHEAT BELT PPD • WYRULEC COMPANY •

Vance McCoy David Keener Jerry Childers Stewart Huneke Terry Strope Ron Stech Chance Briscoe Bryan Monahan Mark Becker Vernon Kuhnel Ken Strey David Woods Brent Evans Douglas Oertwich Bud White Marcus Milanuk Mark Knaub

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LEADING A.C. “Pat” Hecox begins his NREA Board of Directors

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THE WAY second year leading the

A.C. “Pat” Hecox, a director for Dawson Public Power District, in Lexington, Neb., is the association’s board president.

“A friend once told me that we can’t live in a vacuum. We should leave the world better than how we found it,” Hecox said. “I’ve volunteered and served on many boards because it is what I feel I should do – be a part of making it better for others.”

Hecox said he enjoys continuing to learn about the electric industry and the public power model in Nebraska.

“Every meeting I go to – whether it’s Dawson PPD’s monthly board meeting or a regional or a national one – I always learn something new,” he said. “Now that I have a more in-depth understanding of electric utilities and public power, I realize that Nebraska is a special place. Public power is not for profit. It is locally controlled by people who live within their power provider’s service territory. You see and hear that a lot, but the more involved I am the more I understand the value and importance of public power.”

“We strive to provide value to our customers beyond electrifying their home,” he said.

Hecox and his wife, Deb, have three children and six grandchildren. He enjoys playing golf, shooting sports, and welding art.

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The Nebraska Rural Electric Association (NREA) is the private non-profit trade association for 34 rural electric systems that provide electric service to consumers in most of the rural areas and many of the small towns in the great State of Nebraska. Together, the more than 1,040 dedicated employees of our member-systems serve over 251,000 meters across more than 85,000 miles of line.

In the 1930s, rural leaders took on the enormous task of building the electric utility infrastructure in Nebraska that would provide themselves and their neighbors with reliable and affordable electricity. The Rural Electrification Administration (REA) was created by executive order of President Franklin D. Roosevelt on May 11, 1935, and NREA was formed in October of that year to help these early leaders deal with problems of standardizing line construction and obtaining wholesale power supplies. That legacy continues today.

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MEMBERS

SERVING OVER

251,000 MILES OF LINE

8

Over the years, NREA's mission has evolved to include a broad range of activities to assist our member-systems as they face the many challenges of providing low-cost, reliable electric service to the rural regions of Nebraska.

VISITING THE MEMBER-SYSTEMS In 2022, NREA General Manager Rick Nelson and members of the Executive Committee spent nearly two months crisscrossing the state making visits to 30 NREA member-system offices. The meetings provided an opportunity for NREA to learn how the statewide association can continue to improve its services to the member-systems in preparation for the strategic planning session discussions..

BY THE NUMBERS

2

MONTHS DRIVING ACROSS THE STATE

30

MEMBER-SYSTEMS VISITED

“It was very helpful to get ideas from directors all across the state, looking to move NREA forward.”

Greg Strehle, NREA Board Vice President 9

JOB TRAINING & SAFETY NREA offers a Job Training and Safety (JT&S) Program structured for the employees of our member-systems which emphasizes safe and productive work environments. The program is designed to communicate and instruct the latest JT&S techniques and methodologies that save lives, reduce lost work time, and preserve member-system financial resources.

Experienced JT&S instructors provide on-site training and safety techniques to all member-system employees in numerous areas and disciplines. This program saves member-systems financial resources in the area of workers compensation premiums and other group retention cost-saving measures.

Job Training & Safety staff activities include: • Maintain and upgrade JT&S training facilities.

• Prepare curriculum and instructional materials.

• Maintain the Member-System Mutual Aid Program.

• Maintain NREA Safety Standards Manual.

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9

TRAINING COURSES

457

ATTENDEES AT TRAININGS

• Meter

School • Safety Directors Update • OSHA 10-Hour Class • Two Rubber Gloving Schools • Underground School • Line Design and Staking Course • JT&S Annual Conference • Engineering Seminar

Larry Oetken, JT&S Coordinator, assists member-systems with safety achievement applications and observations (RESAP). NREA JT&S staff maintains a relationship with Federated Rural Electric Insurance Exchange to stay up-to-date on safety issues related to the insurance industry.

The staff conducts bi-monthly (6 times/year) Job Training & Safety meetings (approximately 3.5 hours each) instructed by Northeast Community College instructors, with two additional safety meetings scheduled per year. Staff will assist member-systems with developing their own safety training in the off-months, if requested.

275 SYSTEM VISITS

10

Job Training & Safety instructors assist member-systems with the Registered Apprenticeship Program in conjunction with the U.S. Department of Labor. They assist member-systems with accident investigation and participate in curriculum consulting with Northeast Community College Utility Line Program to improve the quality of individuals hired by members following graduation.

MILES DRIVEN

MORE THAN 80,000

ON-SITE RESAP VISITS

NREA offered a Line Design and Staking Course for the first time in 2022.

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LEGISLATIVE AFFAIRS & GOVERNMENT RELATIONS The Nebraska Rural Electric Association maintains a highly engaged government relations program to ensure that elected policy makers and state and federal agencies have a comprehensive understanding of the unique needs of rural public power districts and electric cooperatives. NREA government relations staff establish and maintain working relationships with state and federal elected officials and their staff as well as state and federal agencies whose policies and programs impact the rural electric industry and electric consumers in Nebraska and the nation.

NREA Government Relations staff serve as registered state lobbyists acting on behalf of NREA’s member-systems at the Unicameral. NREA’s Legislative Committee and the NREA Board of Directors provide guidance on the positions of the Association.

Key components of legislative affairs efforts include researching and reviewing introduced legislation and studies, and researching and drafting legislative bills, amendments and studies on behalf of NREA members. NREA staff identify and monitor legislation impacting the Association’s member-systems, appear before legislative committees, and represent the rural electric industry point of view to elected officials. Ongoing education of elected officials is an important aspect of the legislative and government relations program. Staff provide regular reports to member-systems on all state and federal activities. Weekly updates are provided during the Unicameral’s legislative session.

NREA maintains strong working relationships with the Nebraska Congressional Delegation and works cooperatively with

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98

BILLS TRACKED

the National Rural Electric Cooperative Association’s (NRECA) legislative staff to coordinate federal legislative activities.

NREA sponsors two legislative trips for our member-systems to engage with our Congressional members in Washington, D.C. The spring trip is in conjunction with the NRECA’s Legislative Confernce and a fall trip is organized independently.

While NREA maintains a daily presence at the Unicameral and maintains regular engagement with our Congressional members, it is the grassroots support from our individual member-system’s directors, employees, and customers that supports our ultimate success.

The Grassroots Program is an important aspect of the legislative affairs and government relations programing.

1,277

BILLS INTRODUCED

60

DAY SESSION

NREA is the sponsor for the Nebraska Action Committee for Rural Electrification (ACRE) which is a state political action committee (PAC) to provide support to state and local elected officials that support the efforts of rural electrification in Nebraska.

Nebraska ACRE is associated with the NRECA national ACRE PAC, which supports Congressional candidates. The NE ACRE Governing Committee directs how contributions are made within the state.

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351

BILLS BECAME LAW

BILLS NREA TOOK POSITION ON 13

NEBRASKA MAGAZINE

Nebraska Magazine has been published since January 1947. The role of the publication is to chronicle the benefits and challenges of rural community life, inform consumers of the status of the rural electrification programs, inform consumers about the challenges faced by rural electric service providers, and to provide electrical safety and energy conservation information.

Nebraska Magazine offers a diverse amount of information as a means of increasing the readability of the magazine so that electricity items get noticed and read. Compared with other methods of delivering information, Nebraska Magazine shows much higher readership and effectiveness rates for electricity information.

Nebraska Magazine is published monthly and is distributed by mail to approximately 51,000 rural households in 70 Nebraska counties.

51,000 HOUSEHOLDS

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70

COUNTIES

Another goal of Nebraska Magazine is to educate and improve the quality of life of its readers. Providing articles on staying healthy, saving money, and focusing attention on Nebraska’s interests like economic development, gardening and even cooking, is aimed at promoting state culture, awareness, and common purposes.

Nebraska Magazine launched a website in 2022.

Visit it at www.nebraskamagazine.org.

NREA staff also spent several months updating the Association website at www.nrea.org.

WORKING FOR NEBRASKA Rural electric systems truly are “Working for Nebraska,” and this public relations campaign serves NREA members by engaging the public and enhancing their view of and support for public power.

responsible electric supply. Forty percent of Nebraska’s electricity comes from non-carbon emitting resources.

With coal supplying the fuel for the majority of our state’s electric demand, few individuals understand what the utilities are already doing to maintain an eco-friendly electric supply. Third, the campaign aims to educate the public about the importance of a reliable electric supply.

Most Nebraskans do not understand the need for continuous electric generation, and many believe that all generation resources are equally reliable.

The Working for Nebraska campaign shares our message with the public through the use of customizable videos and a strong NREA presence on social media sites. The campaign message focuses on Nebraska’s rural electric systems. Our goal is to enhance the public’s perception of rural electric systems and to encourage the public to engage as owners of the public The American Public Power Association recognized the power model.

Working for Nebraska campaign for Excellence in Public Power Communication in 2017.

Nebraska has a great story to tell when it comes to our electric service, rates, and environmental record. This campaign tells that story by educating the public about the electric industry and bringing greater understanding to issues which are often mischaracterized or misunderstood by the public.

Nebraska consistently ranks in the top 15 most affordable states for electricity. We rank in the top 10 for lowest residential rates. The campaign spotlights this fact to customers, letting them know that Nebraska is a great place to live or start a business. Second, Nebraska has a good story to tell when it comes to our environmentally

The Working for Nebraska campaign has made a point to highlight the positive and negative attributes of each generation resource. Finally, although Nebraska is the only all public power state in the nation, research identified that our customers were not fully aware of the benefits of public power and the differences between public utilities and private investor-owned utilities. The campaign makes a point to highlight the value public power brings to each consumer whether it be through our locally controlled boards or by our not-for-profit model.

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EDUCATION & TRAINING

316

The goal of NREA’s education and training program is to ensure that the changing director and employee training and education needs are met through contracted and internally developed curriculum and events.

Throughout the year, NREA sponsors education and training events for NREA member-system directors and employees. The NREA annually offers employee and director training through the National Rural Electric Cooperative Association’s certificate programs.

EVENTS OFFERED IN 2022 Directors Update Courses – February • 58 participants Editor’s Workshop & Grassroots Coordinator Meeting • 30 participants Energy and Information Technology Conference • 31 participants

PARTICIPANTS

NREA partners with New Horizons Computer and Learning Center to offer NREA member-system employees the opportunity to enroll in unlimited, online, instructor-led training on Microsoft Office and professional development classes.

Employment Law Training Workshop • 42 participants Retirement Seminar • 39 participants Supervisor and Manager Development Courses • 45 participants Directors Update Course - December • 28 participants Legal Seminar • 43 participants

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82

ONLINE COURSES COMPLETED

MANAGERS ASSOCIATION The NREA Managers Association consists of the 34 member-system managers from across the state. The Managers Association meets quarterly throughout the year to network and hear educational presentations from industry experts and other state organization representatives. This Association serves as a resource to all membersystem managers across the state. Managers collaborate on similar issues and have in-depth conversations regarding matters that impact day-to-day operations.

The 2022 officers were President Dirk Dietz, Howard Greeley RPPD; Vice President Clint Bethell, McCook PPD; and Secretary-Treasurer Mark Kirby, Butler PPD. The Managers Association met five times in 2022 – twice in Lincoln, twice in Kearney, and St. Paul.

The Managers Association communicates regularly throughout the year on issues relevant to the rural electric industry through an email listserv as well.

Managers Association Meetings in 2022

5 17

NREA CREDIT UNION The Nebraska Rural Electric Association Credit Union is a member owned non-profit financial institution created by the Nebraska Rural Electric Association as a benefit to its membersystem’s employees, directors, and their families. The credit union provide outstanding service with minimal overhead, keeping costs low to better serve our members.

History: The NREA Credit Union was chartered in 1973, and is located in Lincoln, Nebraska, in the offices of the statewide Nebraska Rural Electric Association.

Board of Directors President John Hoke, Retired General Manager Niobrara Valley EMC Vice President Rick Nelson, General Manager Nebraska Rural Electric Association Secretary Chet McWhorter, General Manager Cuming County PPD Treasurer Bob Beatty, General Manager KBR RPPD Membership Chair Colyn Suda, General Manager Southwest PPD

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Services: The NREA Credit Union offers competitive rates on share savings deposits, one-year term share certificates, credit cards, vehicle, personal and student loans. Dividends on shares and term share accounts are declared and paid quarterly.

Membership: Membership is open to all employees and directors of public power districts and electric cooperatives that are members of NREA, as well as to all members of the immediate families of those employees and directors.

184 LOANS 761

MEMBERS

Management: The operation of the NREA Credit Union is under the direct control of a five-member board of directors elected by the membership at the Credit Union’s annual meeting.

NREA ANNUAL EVENTS Standing Committee Meetings Legislative Event Participants Strategic Planning Session Participants

305

PARTICIPANTS AT ANNUAL MEETING

5

BOARD MEETINGS

17

245

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Throughout 2022, the NREA membership met at locations across the state to conduct the business of the Association. The standing committees of the Association met quarterly in conjunction with the board of director’s meetings, and a special board meeting was also held. The NREA conducted a strategic planning session that was facilitated by the National Rural Utilities Cooperative Finance Corporation.

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YOUTH ENERGY LEADERSHIP CAMP The popular five-day camp gives young people a better understanding of the legislative process, electric power generation, and the rural electric program. The goal is to offer a program that challenges participants educationally, recreationally, and socially.

The Youth Energy Leadership Camp involves highly motivated high school-aged men and women from Nebraska, Wyoming, South Dakota, and Colorado whose rural homes are served by one of the NREA's member-systems. The camp offers educational and recreational experiences, leadership training, environmental awareness, character building, and social interaction.

Burt County PPD Butler PPD Cedar-Knox PPD Cornhusker PPD Cuming County PPD Custer PPD Dawson PPD Elkhorn RPPD KBR RPPD Loup Valleys RPPD Niobrara Valley EMC

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Midwest ECC Norris PPD North Central PPD Northeast Power Northwest RPPD Polk County RPPD South Central PPD Southwest PPD Stanton County PPD Twin Valleys PPD Wheat Belt PPD

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CAMPERS

COUNSELORS

SPONSORING SYSTEMS - 22

46

“This camp was by far one of the most fun camps I’ve been a part of. The speakers were funny and very informative. One of the coolest things was visiting Gerald Gentleman Station.”

NREA YOUTH TOUR The Nebraska Rural Electric Youth Tour is an annual, weeklong, allexpenses-paid trip to Washington, D.C. open to high school students who have participated in the Youth Energy Leadership Camp.

Nationwide, rural electric providers from 41 states participate. In all, more than 1,700 young people from across the nation gather in Washington, D.C., each year for this event. Member-systems of NREA send students on Youth Tour for a variety of reasons including: • Educating students about the role of rural electric systems in the national economy; • Exposing students to the sights and sounds of our nation's heritage; • Building students' leadership skills so that they may make a difference in their rural communities.

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STUDENTS

TUCKER STAGEMEYER, whose parents are customers of North Central PPD, was selected as Nebraska's representative to the National Rural Electric Cooperative Association (NRECA) Youth Leadership Council (YLC).

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BY THE NUMBERS

4

STATES

MEMBER-SYSTEMS

ACROSS

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1,040 TOTAL EMPLOYEES

TOTAL METERS SERVED

TOTAL MILES OF ENERGIZED LINE

251,356 85,056

FACEBOOK FOLLOWERS

6,728

78

NEBRASKA COUNTIES SERVED

OUR MEMBERS BURT COUNTY PPD BUTLER PPD CEDAR-KNOX PPD CHERRY-TODD ECI CHIMNEY ROCK PPD CORNHUSKER PPD CUMING COUNTY PPD CUSTER PPD DAWSON PPD ELKHORN RPPD HIGH WEST ENERGY, INC HIGHLINE ELECTRIC ASSN HOWARD GREELEY RPPD KBR RPPD LACREEK ELECTRIC ASSN LOUP VALLEYS RPPD MCCOOK PPD MIDWEST ECC NIOBRARA ELECTRIC ASSN NIOBRARA VALLEY EMC NORRIS PPD NORTH CENTRAL PPD NORTHEAST POWER NORTHWEST RPPD PANHANDLE REMA PERENNIAL PPD POLK COUNTY RPPD ROOSEVELT PPD SOUTH CENTRAL PPD SOUTHWEST PPD STANTON COUNTY PPD TWIN VALLEYS PPD WHEAT BELT PPD WYRULEC COMPANY

Tekamah, Neb. David City, Neb. Hartington, Neb. Mission, South Dakota Bayard, Neb. Columbus, Neb. West Point, Neb. Broken Bow, Neb. Lexington, Neb. Battle Creek, Neb. Pine Bluffs, Wyo. Holyoke, Colo.

St. Paul, Neb. Ainsworth, Neb. Martin, South Dakota Ord, Neb. McCook, Neb. Grant, Neb. Lusk, Wyo. O’Neill, Neb. Beatrice, Neb. Creighton, Neb. Wayne, Neb. Hay Springs, Neb. Alliance, Neb. York, Neb. Stromsburg, Neb. Mitchell, Neb. Nelson, Neb. Palisade, Neb. Stanton, Neb. Cambridge, Neb. Sidney, Neb. Lingle, Wyo.

Providing Value and Support Through Essential Services

NREA Nebraska Rural Electric Association