2026 Annual Report

Our mission, Our vision, and Our values

At Cass County Electric Cooperative, success is built the cooperative way. It reflects the shared commitment of our employees, directors, and members working together to serve our communities.

As our region grows, your cooperative grows with it. New homes and businesses help strengthen the system and spread the cost of maintaining reliable infrastructure across more members, helping keep rates stable for those we serve.

Guided by our values of safety, accountability, innovation, integrity, and community, we remain focused on delivering dependable, affordable energy today while preparing for tomorrow.

Highline Notes Volume 84, Number 4

Communications: Jocelyn Hovland, Morgan Bachelor, and Sara Hand

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Forum Communications Printing

Highline Notes (USPS 244-740) is published monthly by Cass County Electric Cooperative Inc., 3312 42nd St. S., Suite 200, Fargo, ND 58104. Periodicals postage paid at Fargo, North Dakota 58104, and at additional mailing offices.

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3312 42nd St. S., Suite 200, Fargo, ND 58104

© Copyright Cass County Electric Cooperative 2026. All rights reserved.

Questions: 701-356-4400 | 800-248-3292 | info@kwh.com

Cass County Electric Cooperative is an equal opportunity provider and employer.

Information about the cooperative, articles of incorporation, bylaws and more can be found at CassCountyElectric.com.

Cass County Electric

ABOUT US 1937

Power Mix NamePlate Capacity

Coal 58% - Wind 33% - Hydro 7% - Other 2%

Most of the electricity delivered to Cass County Electric Cooperative members is supplied by our wholesale power provider, Minnkota Power Cooperative, headquartered in North Dakota. The energy portfolio supporting our system is largely produced within the state and includes a balanced mix of coal, wind, and hydroelectric generation. A small share of electricity is also obtained through regional energy markets when needed to support system reliability and demand.

Over the past 10 years, Cass County Electric Cooperative has expanded its ability to serve members while maintaining a highly efficient workforce. Investments in advanced technology and operational tools have allowed the cooperative to support thousands of additional services while adding only a small number of employees. These advancements have improved system reliability, helped control operating costs, and encouraged a culture of ongoing improvement across the organization.

2015: 45,353 active services, 94 full-time employees

2025: 60,646 Active Services, 98 full-time employees

5,881 miles of line

CCEC’s system could run from Fargo to Miami, Florida, and back, then continue hundreds of miles farther.

Overhead: 2,748

Underground: 3,133

Service Types

Residential Urban: 27,809

Apartments: 19,201

Residential Rural: 6,102

Lighting: 559

Irrigation: 212

Commercial: 6,763

Word from Leadership

The Cooperative Way

At Cass County Electric Cooperative (CCEC), success is built the cooperative way. It reflects the shared commitment of our employees, board of directors, and members working together to provide reliable, affordable electricity while strengthening the communities we serve.

The cooperative had another strong financial year. In 2025, CCEC added 959 new accounts, representing a 1.61% increase. While this was below our five-year average growth rate of 2.77%, it remains above the national average of 1.33% for similar-sized electric cooperatives. Over the past 20 years, CCEC has averaged 1,565 new accounts annually.

Account growth is important, but energy sales are an even stronger indicator of system demand. In 2025, the cooperative sold 1,389,334,687 kilowatthours of electricity, a 2.1% increase from 2024. Continued load growth helps maintain rate stability and system reliability by spreading the fixed costs of maintaining the electric system across more energy use.

In 2025, Mother Nature reminded us of the

importance of a resilient system. On June 20, powerful storms and tornadoes, including a derecho wind event, caused more than $1 million in damage across much of our rural service territory. Through FEMA assistance, responsible financial planning, and the hard work of our employees, the cooperative responded quickly and recovered from these challenges.

CCEC continues to maintain a strong financial position. In 2025, our equity increased to 49.6%, growing by $5.4 million, while total debt decreased by $7.4 million. Annual electric revenue increased by $6.7 million, or 4.3%, compared to 2024. Our cost to operate the cooperative, known as the distribution adder, was $0.02399 per kilowatt-hour, 45% lower than similar-sized cooperatives nationwide.

Because of another successful year, your board approved the return of $2.75 million in capital credits to members who used electricity in 2005, including estates and early retirements. Capital credit payments are a unique benefit of the cooperative business model and represent the return of margins to our member-owners.

Glenn Mitzel, Board Chair, and Paul Matthys, President/CEO

The board of directors continues to provide strong leadership and governance. Director Glenn Mitzel was reelected as chair of the board, Terry Kraft as vice chair, Paul White as secretary, and Kalvin Hoff as treasurer. Directors Paul White, Glenn Mitzel, and Kalvin Hoff were also reelected by the membership in 2025.

Strategic planning with the executive staff and board remains an annual priority as we prepare for the cooperative’s future, with a focus on safety, reliability, technology investments, and planning for large electrical loads.

Our engineering and operations teams continued system maintenance and rebuilding efforts following the 2025 storm damage while investing in technology to improve reliability. One example is FLISR (fault location, isolation, and service restoration) software, which helps detect outages and restore service more quickly. Excluding the June 20 storm, 2025 was an excellent year for reliability, with a system average interruption duration index (SAIDI) of 299.86 minutes and an average service availability index of 99.9429%.

Member service remains a priority. During the year, the cooperative launched a new website platform for load control notifications and enhanced communication tools to keep members informed about projects and system updates.

Cybersecurity continues to be a critical focus. Our

internal IT team provides ongoing cybersecurity training, maintains up-to-date security tools, and works with external experts to conduct independent security audits.

Beginning April 1, 2026, CCEC experienced a 4.1% increase in its wholesale power rate from Minnkota Power Cooperative, along with a temporary 1.4 mill surcharge through December 2026. Because of the cooperative’s continued growth and strong financial position, your board approved a plan to absorb the surcharge and more than half of the wholesale rate increase. Through prudent financial management and strong board policies, the cooperative was able to shield members from the full impact of the increase, helping keep electric rates stable and affordable.

Looking ahead, CCEC remains financially strong and well-positioned for future opportunities. We will continue working with Minnkota Power Cooperative to explore carbon capture and storage technologies while preparing for increasing electricity demand from data centers, manufacturing, agriculture, and residential growth. Employee and member safety will remain the cooperative’s top priority.

Providing reliable, affordable electricity while strengthening the communities we serve is the cooperative way. Thank you for your continued support and engagement with your cooperative. We look forward to seeing you at the 2026 Annual Meeting on Tuesday, April 14.

Directors

Names highlighted in green are candidates running for reelection.

Members of the board of directors are local residents elected by cooperative members. Each director serves a three-year term, with elections held during the annual meeting.

Notice of Annual Meeting

The annual meeting of the members of Cass County Electric Cooperative Inc. will be held at the Delta by Marriott, located at 1635 42nd Street South, Fargo, North Dakota, at 6 p.m. on Tuesday, April 14, 2026, to act upon the following matters:

• Reports of officers and directors

• Election of four directors

• Any other business that may properly come before the meeting or any adjournment thereof

Pursuant to the Cooperative’s bylaws, the following members have filed petitions for the office of director. No other petitions were received.

District 4: Stacey Ackerman (Incumbent)

District 5: Tom Seymour (Incumbent)

District 6: Terry Kraft (Incumbent)

District At Large: Glenn Mitzel (Incumbent)

Dated this 3rd day of February, 2026.

Paul White, Secretary

Program:

5:00 p.m.

Registration begins

6:00 p.m.

Call to order and welcome

Meal served

Establish quorum

Approval of minutes of the previous meeting

Election of directors (Voice vote)

Only registered members will be allowed to vote. Any person representing a corporation that is a member of the Cooperative must present evidence of his or her authority to cast one vote on behalf of the corporate member.

Board chair’s report

President’s report

Financial report

Old and new business

Open discussion

Adjournment

Director Expenses: 2025 director expenses totaled $244,987.85. Directors’ expenses include fees paid for attendance at regular CCEC board meetings and a monthly retainer ($144,563.64); industry-related conferences, meetings, and education ($92,271.03); and miscellaneous expenses ($8,191.17).

DIRECTOR ELECTION

At Cass County Electric Cooperative, member participation in electing the board of directors has always been an important part of our annual meeting.

The application period for board director positions has closed, and no additional members submitted applications to seek elected positions. As a result, the current board of directors will be reelected by voice vote at this year’s annual meeting and will continue serving in their existing roles.

Because there is no contested election, an absentee ballot is not required as part of this year’s annual meeting process.

We appreciate your continued involvement and support of Cass County Electric Cooperative.

Your voice matters!

DISTRICT 4

DISTRICT 5

DISTRICT 6

DISTRICT A-L

Stats

Why paperless?

Paperless billing continues to grow among members. In 2025, 28,776 members were enrolled in paperless billing, an increase of 1,048 accounts compared to the previous year. Beyond reducing paper use, this change helps the cooperative avoid nearly $340,000 in annual printing and mailing expenses that would otherwise be reflected in member costs.

Member Accounts

The Member Accounts team remained busy assisting members throughout the year. In 2025, staff responded to 41,670 phone calls, 7,319 emails and 431 live chat conversations.

In addition to answering questions and resolving concerns, the team processed 17,106 service transfers and welcomed 5,555 new members to the cooperative.

Operation Round Up

Through the Operation Round Up program, the Cass County Electric Cooperative Foundation awarded more than $242,960 in grants to 65 nonprofit organizations in 2025. These funds help support programs and initiatives that strengthen communities across the cooperative’s service area.

Prairie sun shines on

Since launching in 2017, Prairie Sun Community Solar has allowed members to participate in renewable energy generation close to home. The solar array has produced more than 1.3 gigawatthours of electricity, enough energy to power a television for more than 370,000 days.

System Maintenance

Maintaining a strong and dependable electric system requires ongoing inspection and maintenance. As part of its proactive pole inspection program, the cooperative evaluated more than 4,500 poles in 2025. Only 74 required replacement. With more than 57,500 poles across the system, the cooperative follows an 12-year inspection cycle to monitor pole condition and ensure longterm reliability. Any poles that fail inspection are scheduled for replacement as soon as possible to maintain system safety.

Underground Locates

Excavation activity remained strong across the cooperative’s service territory in 2025. The cooperative received 25,534 underground locate requests across its system. In Cass County alone, requests accounted for nearly 20% of all North Dakota One Call tickets submitted statewide.

The cooperative’s expanded five-person in-house locating team completed the bulk of these requests across a 10-county service area, helping ensure safe digging and protecting critical underground electric infrastructure.

Membership survey

Member feedback continues to highlight strong satisfaction with cooperative service. In the 2025 American Customer Satisfaction Index (ACSI®), the cooperative earned a score of 88.

This rating places the cooperative 13 points above the average municipal utility, 14 points above investor-owned utilities, and 12 points above the electric cooperative average.

ACSI® is one of the nation’s most recognized customer satisfaction studies, evaluating more than 400 companies across 40 industries and based on roughly 500,000 customer interviews each year.

Executive Staff

After nearly 32 years of dedicated service, Jodi Bullinger retired from Cass County Electric Cooperative. Over the course of her career, Jodi made a lasting impact through her commitment to the cooperative and the members we serve. Her knowledge, professionalism, and dedication will be greatly missed by coworkers and members alike. We thank Jodi for her years of service and wish her a well-deserved retirement filled with joy, relaxation, and time with loved ones.

Paul Matthys Executive Assistant/Human Resources Specialist

Chad Brousseau VP of Member & Energy Services President & CEO

Sarah Rhea

Mitchel Lyter VP of Information Technology & CIO

Troy Knutson

VP of Engineering & Operations

Andy Weiss VP of Corporate Services & CFO

Mission: To serve our members’ energy needs with affordable & reliable electricity.

Delivering reliable power to the cooperative’s growing member community remains a top priority for the Engineering and Operations team. Despite several severe weather events in 2025, the system performed well overall.

Engineering & Operations Member & Energy Services

The cooperative’s System Average Interruption Duration Index (SAIDI) was 299 minutes for the year. Much of that outage time resulted from significant summer storms, including a June derecho that affected large portions of the service territory. Crews replaced 228 poles during storm restoration while working safely and efficiently to restore service.

System reliability continues to benefit from longterm infrastructure investment. The cooperative recorded a record low number of underground cable faults in 2025, with 38 primary and 35 secondary faults. Since 2002, more than $40 million has been invested in underground cable replacement projects to strengthen system performance.

Safety and system accuracy were also enhanced by bringing underground utility locating fully back in-house. Crews completed more than 25,500 locates during the year, helping protect the public and support safe operations.

Employee development also remains a priority as new team members step into key roles supporting the cooperative’s future.

The Member and Energy Services team continues to focus on serving the cooperative’s member community through clear communication, innovative programs, and responsible cost management.

New digital tools were launched this year to improve member access to information. A redesigned demand response website provides more detailed information about load control programs, along with a new text and email notification system to keep members informed during control events.

The cooperative also introduced a new “Storm Mode” feature on its website. During widespread outages, this feature allows the cooperative to quickly share updates directly on the homepage so members can easily find the latest information.

Wholesale power costs increased 8.3% in April 2025 from the cooperative’s power supplier, Minnkota Power Cooperative. Through careful financial planning and the purchase power adjustment, the overall retail rate impact was about 4%, or less than $6 per month for an average home.

The cooperative also continued exploring innovative solutions, including a battery storage pilot project and expanded participation in timeof-day rates. These programs help members manage energy use while supporting overall system reliability.

Information Technology

Your cooperative’s Information Technology team plays an important role in supporting reliable and affordable electric service for the member community. While much of this work happens behind the scenes, strong technology systems help keep operations running smoothly and protect member information.

Cybersecurity remains a priority as threats across the electric industry continue to grow. This year, the cooperative completed independent security reviews, system scans, and testing to strengthen system protections. Cooperative computers were upgraded to current supported software, improving reliability and reducing cyber risk. Employees also continue regular cybersecurity training to help safeguard cooperative systems and member data.

Technology improvements also support field operations. Upgrades to radio communications enhanced coordination between crews and power control during outages and emergencies. Backup systems and monitoring tools were strengthened to ensure reliable operation of critical infrastructure, including equipment supporting substations.

New mapping and data tools also helped crews respond more efficiently during storm restoration. These tools allow faster outage identification and improved documentation, which helps reduce recovery costs for members.

Corporate Services

In 2025, the cooperative experienced a historic year of hiring, welcoming 20 new employees to the team. This growth was driven by several initiatives, including establishing a fully in-house cable locating department, adding seasonal apprentice lineworkers, expanding the meter and apparatus department, and planning for upcoming retirements by overlapping new hires with experienced employees.

It was an especially busy year for the Human Resources department, but their efforts ensured a smooth transition and helped position the cooperative with the skilled workforce needed to continue providing reliable service to members.

The cooperative also completed a new loan application with the Rural Utilities Service and received approval for $50,707,000 to help finance projects outlined in the construction work plan for 2026 through 2030. Accessing financing through the Rural Utilities Service allows the cooperative to borrow at below-market interest rates, which helps reduce overall interest costs.

This financing supports the cooperative’s ongoing investment in the electric system while continuing its mission of providing reliable service at affordable rates for members.

With margins exceeding budget in 2025 and anticipated power cost increases in 2026, the cooperative identified an opportunity to defer $4 million in revenue from 2025 for use in 2026. This board-approved revenue deferral plan will help absorb a portion of the 2026 power cost increases, shielding members from the full impact and helping keep electric rates stable and affordable.

Comparative Statistics

Statements of Operations

Balance Sheets

The financial statements for Cass County Electric Cooperative Inc., as of and for the years ended Dec. 31, 2025 and 2024, have been audited by an independent accounting firm, Eide Bailly. An unmodified opinion was issued for each year. Copies of the complete audited financial statements are on file at the cooperative’s office.