2025 Inland Power Annual Report

PRESIDENT AND

CEO LETTER

Dear Valued Member,

At Inland Power and Light, our members are the foundation of our mission. This commitment goes beyond words; it drives us to go the extra mile in every aspect of your cooperative While our foremost responsibility is delivering the reliable electricity you depend on each day, we also recognize the rapid evolution of the energy industry That is why we continually push ourselves to innovate, plan ahead and enhance the member experience in meaningful ways

In 2025, our team has been hard at work on your behalf, always striving to exceed expectations. We achieved key milestones in strengthening our system and improving reliability, including securing more than $15.5 million in federal grant funds to expand vegetation management over the next six years and help prepare our system for weather related disasters. We are also working to secure approximately $228 million in federal grant funds for renewable energy power resources over the next twenty years, another example of our commitment to building a reliable and sustainable energy future for our members

Operationally, we are taking a proactive, forward thinking approach to meet Inland’s record growth (see page 12) Our comprehensive ten year engineering work plan ensures we’re not only responding to today’s needs but anticipating tomorrow’s. You will see our crews out in the field on major infrastructure projects, upgrading substations and distribution lines to increase system capacity and maintain the reliability you’ve always counted on.

We are also going the extra mile in addressing aging infrastructure. As noted on page 11, seven of Inland Power’s 40 substation transformers are more than 70 years old With a three year lead time to customize and manufacture transformer replacements, we have already begun a phased plan to integrate newer, more resilient equipment into Inland’s system This level of foresight and preparation demonstrates our commitment to being one step ahead, never waiting for problems to arise before taking action

Alongside our accomplishments, we have adapted to significant challenges. Power supply costs have risen at unprecedented levels, while infrastructure and material costs continue to climb. Because power supply makes up 54% of Inland Power’s expenses, these conditions have resulted in a 11.5% rate adjustment for 2025. This adjustment was driven primarily by increased power supply costs and requirements to meet federal and state clean energy standards Even in the face of these challenges, we are working tirelessly to reduce impact where possible and ensure every dollar delivers value back to our members

Resiliency and reliability remain central to our mission As we navigate the opportunities and challenges ahead, we are committed to going the extra mile in maintaining transparency, communicating openly and making thoughtful, member focused decisions. We deeply value your membership and look forward to continuing our role as your trusted, dependable energy partner.

COOPERATIVELY,

OUR MISSION

IS OUR MEMBERS

The Inland Way are six values that are the core to our co-op and how we successfully serve our members and each other.

THE INLAND TRUST CHARTER FOR MEMBERS

For over 85 years, Inland Power has been founded on the trust of the communities we serve. This trust represents a commitment –to be honest in our communication, fair in our actions, and reliable in our service

We prioritize open listening, clear communication, and decision-making that reflects your best interests Your time, voice, and investment in us are deeply respected

As stewards of your co-op, we are actively present in our communities, accountable to our members and always ready to assist

BOTTOM LINE: You can count on us, because we live here too.

GIVING BACK TO THE COMMUNITIES WE SERVE

At Inland Power, our mission is clear – it revolves around our members! We understand the importance of people supporting each other and are dedicated to serving our members. Through the Inland Power Community Foundation, we are able to assist both our members and the organizations that enhance the communities we serve.

In 2025, the Inland Power Community Foundation supported over 30 diverse organizations, including: West Plains Safety Alliance, Spokane County Search & Rescue, Second Harvest of the Inland Northwest, Whitman County Hospital Foundation, and many, many more across the 13 counties we serve

In addition to various donations and sponsorships, the Foundation awarded 15 scholarships of $1,000 each to Inland Power members and their children It also granted nearly 100 requests for livestock support to local 4-H and Future Farmers of America (FFA) participants involved in livestock shows This incredible generosity is made possible by your contributions!

OTHER INLAND POWER PROGRAMS

Our partnership with Spokane Neighborhood Action Partners (SNAP), provided a total of $194,476 to Inland Power members involved in their various programs in 2025.

Through the Inland Power Energy Assistance Program, we were able to support 790 members totaling $346,794 in IPL energy assistance in 2025.

WILDFIRE MITIGATION AND FIRE SAFETY MODE

In recent years, wildfires have significantly affected many communities in the Pacific Northwest, presenting a persistent challenge for our region Like many utility providers, Inland Power has adopted comprehensive strategies to combat the wildfire threat, which includes the development of our wildfire mit

Vegetation Management for Wildfire Risk Reduction

A vital element of our proactive vegetation management program concentrate wildfire risks Our team consistently assesses areas of concern within our service territory By strategically pruning and removing trees to maintain clear lines, we greatly enhance public safety and safeguard the integrity of the power grid

Defensible Space and Firewise USA Program

We encourage our members to play an active role in wildfire prevention as well If you have any dead or dying trees, or trees that raise concerns on your property, please reach out to our Member Experience Team at (509) 747-7151 In the coming year, we will also be providing additional information regarding opportunities to partner with community organizations to create a defensible space around your home To find out if your community is recognized as a Firewise USA community, please visit nfpa.org/en/education-and-research/wildfire/firewise-usa.

Secondary inspections

In 2025, we started inspecting our secondary lines near homes to verify that all safety hazards are removed, including equipment, trees, etc. on your property.

Strengthen Fire Safety Protocol

During the warm, dry months, Inland Power diligently monitors our region for areas at high risk of wildfires If necessary, we will designate these areas as non-reclose or “fire safety mode ” In this mode, the automatic power restoration functionality is disabled (non-reclose) in zones with increased wildfire risk, leading to more outages

We are investing heavily in our system with automated devices to move into and out of four safety levels This will allow for a targeted approach to fire safety mode and will reduce system-wide heightened fire safety mode and will significantly reduce outages during the warm summer months We are also investing in technology to better alert us of weather, precipitation and wind to move smaller portions of our territory into and out of these settings.

We are dedicated to ensuring safety and remain vigilant in our efforts to prevent wildfires while protecting our members and the communities we serve

FIRE SAFETY MODE LEVELS

Visit our website at inlandpowercom to find out if your location is in a fire safety mode setting

NORMALOPERATINGMODEL

Systemcoordinatingtomaximize efficiencyandreliabilitythroughout InlandPowerserviceterritory

Forexample,whenanexternalobjectlikea treebranchimpactstheline,thesystem willattempttoautomaticallyrestore powerwithouttheneedforaphysical inspectionoftheline,resultingina momentaryoutagesuchas oneormoreblinks.

FIRESAFETYMODE

Reliabilityfunctionalityisremovedso thatwhenanexternalobject likeatreebranchimpactstheline,the systemwillnotautomaticallyrestore power.Thiscreatesasustainedoutage thatmustbeinspectedbyqualifiedline workersinordertorestorepower

REDFLAGMODE

Thisisthemostsensitivelineprotective operatingmode(instantaneoustrip) whereInlandPowermaximizes sensitivitytoabnormalevents (wind,animal,etc)andwillresultin longerandlargeroutages

PUBLICSAFETY

POWERSHUT-OFF(PSPS)

InlandPowerdoesnotanticipate utilizingPSPSduringthe 2026fireseason,butmay infutureseasons.

WHAT YOU SHOULD KNOW ABOUT OUR FUEL MIX

The Energy Source Breakdown For Inland Power

INLAND POWER’S FUEL MIX

Providing clean renewable energy has always been business as usual at Inland Power. In 2024, Inland purchased the majority of its power from BPA for resale and distribution to our members The bulk of that power is generated from the hydroelectric dams along the Columbia and Snake Rivers We are very fortunate to live in the Pacific Northwest and have access to this clean and efficient source of power.

ENERGY LAWS & REGULATIONS

ENERGY INDEPENDENCE ACT

In 2006, Washington voters passed the Energy Independence Act (EIA), which requires electric utilities that serve 25,000 customers or more to obtain a certain percentage of the electricity used from eligible renewable resources, including solar, wind and hydropower The percentage of required renewable generation started at 3 percent in 2012 and climbed to 15 percent in 2020

CLEAN ENERGY TRANSFORMATION ACT (CETA)

In 2020, Washington legislators passed the Clean Energy Transformation Act (CETA) This act requires utilities to provide power that is carbon-neutral by 2030 and 100% carbon-free by 2045 Utilities that provide power generated from resources like coal and natural gas have a long way to go to reach this clean energy goal.

In 2024, Inland was 100% carbon neutral Although we have not achieved carbon neutrality every year, IPL is on target to meet the Clean Energy Transformation Act requirement to be 100% carbon neutral by 2030.

YOUR INVOLVEMENT KEEPS US

IN MOTION

At Inland Power, we take pride in delivering dependable electricity at competitive rates while supporting our community's achievements over the past 85 years Collaboration is vital for cooperatives, and as a member-owner, you can safeguard our interests by joining our Grassroots Action Team This team allows you to connect with legislators on important decisions that affect Inland Power and electric cooperatives We've teamed up with EveryAction to improve member outreach and advocate for energy issues, with the goal of influencing policymakers on energy decisions that impact our cooperative and the communities we serve

BY SIGNING UP FOR GRASSROOTS, YOU CAN:

Help utilities ensure that rates remain affordable

Play a role in safeguarding our power supply in the Northwest

For more information and to sign up, please visit inlandpower.com/grassroots.

Allow us to keep you updated on various issues affecting your utility, including potential threats to hydropower

GRANTS THAT STRENGTHEN OUR INFRASTRUCTURE

Inland Power Announces Successful Grant Acquisitions

Inland Power is excited to announce that we have successfully applied for and secured multiple grants aimed to enhance our system and increase wildfire mitigation efforts across our service area

MAJOR GRANTS SECURED

Federal Grant for Vegetation Clearing

We received a significant federal grant from the Depart of Natural Resources for vegetation clearing in Spokan County, Washington.

Total amount: $9,846,359 to be allocated over the next six years

Already earmarked: $1 million for 2025, with another $2 million planned for 2026.

Funding for Bonner County Projects

We obtained $345,633 64 in combined federal and Idah state funding for vegetation clearing and the installatio new weather stations in Bonner County, Idaho. Work on project is set to commence this year. Additionally, we are advancing with another award of $596,591 in federal and Idaho state funds to modernize Inland Power’s protective recloser devices, also in Bonner County, with project initiation scheduled for this year

ADVANCED TECHNOLOGY INVESTMENTS

Inland Power has been awarded a $2 million federal grant dedicated to advanced technology investments. This funding will facilitate: The use of drone technology for inspections Satellite imagery for vegetation management. Enhanced situational awareness tools.

We are in the final stages of securing this award and eagerly anticipate implementing these technologies soon

FEMA REIMBURSEMENTS

Inland Power is actively pursuing FEMA reimbursements for wildfire and weather-related disasters in our region Following the completion of recovery work, we aim to obtain reimbursements through the FEMA system, projecting over $5 million in total reimbursements over time

SIGNIFICANT FEDERAL FUNDING AWARD

Most notably, Inland Power is thrilled to share that we have been awarded $227,882,711 in federal funding from the U S Department of Agriculture via the Rural Utilities Service These funds will be utilized for the purchase of renewable energy resources over the next twenty years, with federal funds covering up to 25% of the costs. We anticipate grant disbursements to commence between late 2028 and late 2031 Currently, we are navigating contract negotiations and program details, and we will provide further updates as information becomes available This news is incredibly exciting for Inland Power and our members

Our Inland Power team worked diligently throughout 2024 and 2025 and continue to do so to secure over $15 million in grant and FEMA funding These efforts are critical in rebuilding and enhancing our system, improving wildfire mitigation, and positioning Inland Power for future success They have also helped secure over $200 million to support renewable energy purchases, which directly benefits our cooperative and every member we serve

INLAND POWER BY THE NUMBERS

We continued to see growth in numbers in 2025. The following is a breakdown and comparison to the previous year totals. MEMBERS

A quick breakdown of notable numbers.

METERS PER MILE OF LINE

NUMBER OF POLES 102,679

NUMBER OF TRANSFORMERS 35,506

MEMBERS ENROLLED IN AUTOPAY 18,324

MEMBERS ENROLLED IN SMARTHUB 26,903

NUMBER OF SOCIAL MEDIA FOLLOWERS 6,286

MEMBERS GIVING TO THE IPL COMMUNITY FOUNDATION 2,694

STATEMENT OF REVENUE AND MARGINS

2,804,249 8,944,595 8,402,927 5,372,922 4,090,857 ($706,822) $1,092,373 $105,430,529 $92,539,340

$759,815 $930,412

$951,244 ($120,556)

Margins $1,004,237 $1,902,229

2025 OPERATIONAL ACCOMPLISHMENTS

COMMITMENT TO RELIABLE SERVICE

Inland Power is committed to providing safe and reliable service. With the increasing demand for electricity and aging infrastructure, we recognize the necessity of upgrading our system to effectively support our members We have made substantial investments to enhance our systems in the last year

RECENT UPGRADES AND PROJECTS

Strengthening the system and installing fault indicators for easier detection of faults and faster outage restoration times

Current Transformer (CT) Meter Inspection and AMI Conversion Project: We are focused on transitioning all CT locations to self-contained 2S meter bases owned by Inland Power Additionally, we are upgrading other meter bases and both single-phase and three-phase CT services to the latest technology This preparation is crucial for our upcoming transition to a new AMI system, scheduled for 2026.

Installation of New Viper Reclosers: Our teams were committed to continuing our aggressive installation of new G&W Viper reclosers throughout 2025 and continue their work before the 2026 fire season. These reclosers enhance system operations and reliability, enabling accurate fault isolation during Red Flag weather conditions (i e smaller outages) This upgraded system will reduce the need for line crew deployment, protect essential resources, improve outage response efficiency and minimize outages during wildfire season

Inland Power Substation Upgrades: Significant progress was made across various areas in 2025, with several key projects moving from design to construction and engineering Improvements made at the Springhill substation in Stevens County and the Clayton substation in North Spokane County focus was on enhancing reliability and enabling remote monitoring The Wayside Substation, located in our northern service, will begin upgrades in 2026 Inland Power will be adding a new substation at Craig Road and is upgrading our Jerita Substation for larger capacity in 2026

While we have made significant progress in 2025, you can see from the graph to your right the age of our substation transformers is a large priority for our engineering department We are aggressively looking to replace and/or upgrade these older transformers to enhance the reliability of our system Throughout the coming years, we will continue to work on these and other ongoing infrastructure projects. We will keep you informed to ensure that you are updated on our progress

AGE OF LARGE SUBSTATION

SYSTEM GROWTH OBSERVATIONS

FACTORS PLAYING A ROLE IN OUR SYSTEM GROWTH

Updates to the building codes in the state of Washington

Monthly peaks are rising at a slower rate compared to annual peaks, although maximum system peaks are higher. Growth rates following the pandemic have not aligned with historical trends from before COVID-19 They continue to rise National electric usage is on the rise

Adoption of electric vehicles (EVs) is gaining momentum

There are less opportunities for energy efficiency improvements in homes. Increasing climate variability, with hotter summer days and cooler winter nights leads to increased usage

The last significant growth cycle occurred during the 1960s and 1970s.

OUTAGE CAUSE BREAKDOWN

The following is a percentage breakdown of the primary reasons for power outages we encountered in 2025 across our service area.

A YEAR OF REACHING HIGHER 2026:

AND GOING FURTHER

Inland Power is committed to serving its members by enhancing infrastructure, improving resilience, and expanding communication tools as it prepares for 2026. The goal is to build a stronger, safer, and more reliable energy future.

Wildfire Mitigation

Inland Power is dedicated to protecting members from rising wildfire risks

WEATHER MONITORING

Inland Power is collaborating with EnXchange to create a specialized weather-alerting dashboard that integrates directly with our lines and infrastructure This technology will enable real-time data usage for fire-safety modes, reducing outages and improving safety Additionally, weather cameras will be installed to enhance visibility of wind, temperature, and precipitation, facilitating quicker and more informed decision-making.

SECTIONALIZING

Our engineering and operations teams are improving system sectionalization by adding reclosers and equipment that divide circuits into smaller sections This isolates outages to limited areas, minimizing service disruptions like when a tree falls, only the affected segment loses power.

SECONDARY INSPECTIONS

After improving primary distribution lines with larger poles and wires, we are now focusing on secondary lines serving individual homes. This includes maintaining equipment and removing debris to ensure safety and reliability, further enhancing the overall reliability of the system.

DEFENSIBLE SPACE

Inland Power is partnering with conservation districts, the Department of Natural Resources (DNR), and local fire departments to educate members on creating defensible space around homes. They provide resources for removing dead trees and reducing burnable debris to enhance community safety as wildfire risks increase

Reliability and Infrastructure

We continue to go the extra mile for our members by investing in smarter meters, stronger substations, upgraded lines, and ongoing system maintenance to keep your power safe and reliable.

AMI METER SYSTEM UPGRADE

Inland Power is upgrading its 12-year-old AMI system to a new Landis & Gyr platform over the next three to four years. In 2026, the focus will be on replacing failed meters and installing new technology to enhance accuracy, efficiency and reliability

SUBSTATION IMPROVEMENTS AND EXPANSION

In 2026, 24% of the work plan budget is allocated for building and upgrading substations to meet growth demands. Inland Power is upgrading seven substations and designing four new ones expected to be operational in two to four years, ensuring reliable power delivery.

RECONDUCTOR, ADD PHASE, AND NEW LINE CONSTRUCTION

Over 30% of our budget goes to capacity-building projects, such as upgrading lines and constructing new ones, to enhance operational efficiency These proactive infrastructure improvements help maintain a strong, flexible system ready for future growth.

ANNUAL SYSTEM MAINTENANCE

An additional 32% of our work plan is dedicated to annual maintenance activities such as replacing failed poles, upgrading regulators and capacitors, and inspecting distribution lines This ongoing work is critical to system health and reflects our commitment to preventing issues before they arise

Outage Communication

We recognize how important timely, accurate information is during an outage, and we are going the extra mile to enhance communication before, during and after these events.

Our redesigned online outage map features user friendly, color coded outage icons, improved zoom capability, and detailed comment sections In 2026, we are evaluating options to add a search by address function to further improve transparency and ease of use We will also be looking to find ways to proactively call, text and email members to provide real-time updates during outage events.

AFTER HOURS OPERATIONS TEAM

We are pleased to introduce a dedicated after hours and weekend operations team Although our line crews have always been on call 24/7, we previously relied on a third‑party vendor for dispatching and outage communication. As our cooperative has grown, bringing this service in house allows us to provide a more personalized member experience and offer real time outage updates directly from our own team.

With significant enhancements planned, 2026 promises to be productive, positively impacting service quality, system resiliency and member experience.

AND HOW WE STACK UP

Rate based on April 1, 2026 adjustment

Average State of Idaho monthly residential bill

Rate based on January 1, 2026 pricing

Average State of Washington monthly residential bill