82nd Annual Meeting Report

2020 Annual Report

Board of Trustees

Gary Jones President District 1

Scott Christian Vice President District 1

Brent Bacon Secretary-Treasurer District 1

Larry Anderson District 2

Charles Crawford District 3

Mark Finch District 3

Randy Griswold District 3

Johnny Harrel District 2

Terri Hays District 2

Dan Williams Attorney

President’s Report What a year! Since our last Annual Meeting, we have had a late October, early November ice storm. In February we had a “Polar Vortex” with 13 days below freezing, 10 to 15 inches of snow and a record low temperature of -18 degrees Fahrenheit. When we thought COVID-19 was over, a new strain appeared and the number of positive cases rapidly increased. While it has been a difficult time with positive cases, quarantines and a death, our great employees have continued to make sure power was delivered.

Gary Jones

The Polar Vortex presented problems we have never faced. Our power supplier Western Farmers Electric Co-op and the Southwest Power Pool could not get enough natural gas to run all generators, therefore, for the first time in history, we experienced rolling blackouts. During this period, REC was paying about 25 to 30 cents per kHw and selling it to our members for about 11 cents per kHw. These costs have not been recovered, but the Board of Trustees and Management are working on a plan to help spread the cost over a period of time to minimize the effect on rates to our consumer-members.

Our employees continue to stay busy connecting new services including marijuana grow houses and new oilfield loads. In addition to new services, our employees have been upgrading lines to provide better service and keep outage time low. REC has great employees who are all interested in providing the consumer-member the best possible service.

In spite of the ice storm, the COVID-19 pandemic, a Polor Vortex and other problems, REC is financially strong. Our equity remains strong, we have maintained competitive rates and our system is reliable with few, long-term outages.

REC’s Board of Trustees, management and staff continue to provide our member-consumers with reliable power at an affordable rate.

2020 Financial Data CONSOLIDATED BALANCE SHEET

2020

2019

Net Utility Plant

65,244,772

63,106,865

Other Property & Investments

17,222,638

16,431,236

Current Assets & Other Debits

7,709,728

8,263,904

90,177,138

87,802,005

Total Margins & Equities

43,349,021

42,958,253

Total Long Term Debt

36,276,094

31,642,772

Noncurrent Liabilities

3,052,927

2,716,072

Current & Other Liabilities

7,499,096

10,484,908

90,177,138

87,802,005

2020

2019

Operating Revenue and Patronage Capital

37,645,631

37,537,795

Total Operation and Maintenance Expense

32,538,631

31,841,250

Total Cost of Electric Service

37,254,153

36,489,484

Patronage Capital & Operating Margins

391,478

1,048,311

Non Operating Margins

942,266

862,565

1,333,744

1,910,876

Total Assets and Other Debits

Total Members’ Equity & Liabilities CONSOLIDATED OPERATING STATEMENT

Net Patronage Capital & Margins

2020 Financial Data WHERE THE MONEY COMES FROM

36% RESIDENTIAL SALES 40% SMALL COMMERCIAL/INDUSTRIAL 24% LARGE COMMERCIAL/INDUSTRIAL

TOTAL COST OF PROVIDING POWER $37.3 MILLION

64% PURCHASED POWER 27% OTHER COSTS 9% FIXED COSTS

2020 Highlights WFEC GENERATION FUELS TOTAL ASSETS IN MILLIONS $90

$87

$84 $83 $82

2016

2017

2018

2019

2020

2 % COAL 5% NATURAL GAS 8% HYDROPOWER 21% WIND ENERGY 1% SOLAR POWER 63% PURCHASED POWER (BLEND OF RESOURCES)

2020 Highlights

CAPITAL CREDITS RETIRED OVER THE LAST FIVE YEARS 2020

$888,261

2019

$874,547

2018

$860,204

2017

$846,983

2016

$906,554

11,989 Meters 437,242,095 kWh sold 3,019 Miles of Line Served

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