SECO Energy 2023 Annual Report

2023 Annual Report

Annual Report | 1

Contents

Message from CEO 02 About SECO Energy 03 ACSI 04 Board of Trustees 05 District Map 06 Executive Leadership 07 Financial Statements 09

Message From Annual Report | 3

CEO Curtis Wynn

DEAR SECO ENERGY MEMBERS, As we commemorate the 85th anniversary of SECO Energy, we celebrate not only a significant milestone but also a year filled with progress toward our Mission of providing reliable and innovative energy services to our members and communities.

Our journey has been remarkable, from our beginnings in 1938, electrifying 400 rural farms near Webster, to becoming the third-largest cooperative in Florida and the seventh largest in the nation.

Light Emitting Diode (LED) technology, focusing on efficiency, reliability, and durability.

In January 2023, we introduced a new Strategy Map to set a clear, focused, and deliberate path forward amidst rapid growth. A fundamental component within this plan is the transition to Advanced Metering Infrastructure (AMI) meters.

By the end of 2023, we had installed over 70,000 AMI meters, keeping us on track to meet our three-year completion goal.

Regarding satisfaction, I would like to thank our loyal members, who scored SECO so highly in the most recent American Customer Satisfaction Index (ACSI) survey. SECO Energy scored an 89 in customer satisfaction for 2023.

AMI technology is transforming how members interact with their energy usage. It provides detailed data every 15 minutes, analyzing consumption patterns to offer insights for more energy-efficient use and cost reduction.

The adoption of AMI paves the way for expanded demand response programs, which aim to lower wholesale power costs and your bills. These programs are designed to minimize energy consumption while giving you greater control over your energy use. We are exploring several bring-your-own-device programs for smart thermostats, smart water heaters, electric vehicles and chargers, and whole-home generators.

This year, we also saw the construction and activation of two new substations, “Sawgrass” and “Landstone,” to support the growing demand in Clermont and The Villages and began transitioning older high-pressure sodium (HPS) lighting to

Our focus remains on our core business and meeting the increasing demand for reliable, affordable, and safe energy in our area. These proposed innovative energy services will enable SECO to maintain competitive rates and member satisfaction.

As we reflect on 2023, we are optimistic and ready to face the opportunities and whatever challenges the coming year delivers. Rest assured, your not-for-profit electric cooperative is continually evolving and adapting, striving to be the futureready cooperative you deserve.

Thank you for your trust, support, and membership. Together, we are prepared to meet today’s needs and future demands, building a brighter future for all we serve.

CURTIS WYNN

CHI EF EXECU TI VE OFFI CER

OUR YEAR BY THE NUMBERS

240,288 METERS

2023 ACSI SCORE

89 400+

3.891

BILLION KWH SOLD

EMPLOYEES

3rd

LARGEST CO-OP IN

FLORIDA

30%

MEMBER EQUITY

7th

TIER 2.44

LARGEST IN THE

NATION

Total Plant Investment Over

4 | Annual Report

$1.1 BILLION

ACSI 2023

®

In 2023, SECO Energy received an American Customer Satisfaction Score Index (ACSI) score of “89” on a 100-point scale[1], reflecting the cooperative’s unwavering commitment to excellence in service.

SECO’s ACSI® score of “89” not only surpasses the average investor-owned utility score of 72 but also exceeds the average municipal utilities score of 71, according to the 2023 ACSI Utility Sector Report.

Additionally, SECO Energy outperforms the average

71 72 Investor-owned 74 Other CO-OPs Municipals

89

SECO Energy

[1] Compared to publicly measured energy utilities in the ACSI® survey of customers rating their own energy utility. Results based on data provided by SECO Energy, collected between December 4 and 8, 2023. ACSI did not regulate the survey administration or sample size. ACSI and its logo are registered trademarks of the American Customer Satisfaction Index LLC. For more about the ACSI, visit www.theacsi.org

Annual Report | 5

SECO ENERGY- Territory Key.pdf

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12/6/23

2:39 PM

District 1

Boyatt

District 2

J Anderson C

M

Y

CM

MY

CY

CMY

K

Joseph Kusiak

District 3

G Anderson

DISTRICT 7

District 4

Dennison District 5

Wright

District 6

Muffett

District 7

Kusiak

District 8

James

District 9

Richard Dennison

Hatfield

DISTRICT 4

Gerald Anderson C

PRESIDENT - DISTRICT 3

M

Y

Board of Trustees

CM

MY

CY

CMY

Shannon Wright DISTRICT 5

SECO Energy’s Board of Trustees are members who live in SECO’s service territory. They are elected to oversee the governance of the cooperative. Each Trustee on the Board is elected by the members who reside in his/her District. Collectively, the Trustees are responsible for establishing, reviewing and revising corporate policies to ensure that SECO continues to preserve reliable, affordable service for all members.

Joyce Anderson DISTRICT 2

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K

SECO Energy - Territory.pdf

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12/6/23

2:39 PM

Mike Muffett DISTRICT 6

Morgan Hatfield S E C R E TA R Y/ T R E A S U R E R - D I S T R I C T 9

Bill James

HERNANDO

DISTRICT 8

PASCO

Scott Boyatt VICE PRESIDENT | DISTRICT 1

Annual Report | 7

Executive Leadership CURTIS WYNN

JOHN LASELVA

GREGG MORRELL

CHIEF EXECUTIVE OFFICER

CHIEF OPERATING OFFICER

CHIEF CORPORATE SERVICES OFFICER

ANH REYNOLDS

BEN DAWSON

TRACY DELEMOS

GERI HELMS

VP, FINANCIAL & ADMINISTRATIVE SERVICES

VP OF GROWTH, SMART GRID & OPERATIONAL TECHNOLOGY

VP, CORPORATE GENERAL COUNSEL

EXECUTIVE ADMINISTRATOR

8 | Annual Report 7

Mission

As a not-for-profit cooperative, SECO Energy provides reliable and innovative energy services to our members and communities.

Values

Safety | Member Commitment | Honesty & Integrity | Strong Work Ethic | Inclusive Culture | Accountability | Teamwork

Vision

SECO Energ y will lead the industr y in member satisfaction and engagement and be the preferred employer in our region.

Annual Report | 9

Financial Statements Condensed Balance Sheets December 31, 2023 & 2022

2023

2022

$ 971,974,142

$ 864,995,959

133,097,604

119,751,729

2,062,037

2,311,450

23,516,984

23,807,058

74,949,474

65,544,818

15,577,035

48,612,864

581,284

419,210

$1,221,758,560

$1,125,443,088

$ 366,937,585

$ 343,123,144

$ 606,854,039

$ 623,123,955

3,546,244

3,528,598

147,983,042

30,566,139

42,334,689

83,346,406

22,756,711

21,070,497

31,346,250

20,684,349

Total Liabilities

$ 854,820,975

$782,319,944

Total Equities and Liabilities

$1,221,758,560

$1,125,443,088

Assets Total Utility Plant (net of $238 million and $243 million in accumulated depreciation, respectively)

Investments in Associated Organizations and Other Special Funds Cash and Cash Equivalents Accounts Receivable Inventories Other Current and Accrued Assets Deferred Debits Total Assets Equities Liabilities Long-Term Debt Deferred Compensation Liability Current and Accrued Liabilities Accounts Payable Consumer Deposits Deferred Credits

10 | Annual Report

Condensed Statements of Revenues & Patronage Capital For the years ended December 31, 2023 & 2022 Revenues Operating Revenues

2023

2022

$ 480,031,640

$ 535,723,188

301,718,422

362,879,347

110,730,116

109,694,117

32,692,466

30,716,920

22,327,184

17,430,729

828,003

410,723

$468,296,191

$521,131,836

$11,735,449

$14,591,352

13,555,722

10,034,948

634,321

418,294

$25,925,492

$25,044,594

334,972,077

314,375,193

874,245

597,828

(4,189,629)

(5,045,538)

$357,582,185

$334,972,077

Expenses Cost of Power Operating Depreciation Interest on Debt Taxes & Other Total Expenses Operating Margins Other Margins Non-Operating Margins

Net Margins Patronage Capital, Beginning of Year Reallocation of Unclaimed Patronage Capital (Retirement of Capital Credits) Patronage Capital, End of Year

Total Expenses

Depreciation 7%

Interest, Taxes & Other 5%

Administrative & General 20.8%

Sales 0.7% Customer Service & Informational 2.2%

Consumer Accounts 14.2%

Operating 23.6%

Operation & Maintenance 62.1%

Power Cost 64.4%

Operating Expenses Annual AnnualReport Report || 10 11

CENTER

CHECK STATUS

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