Annual Report
2021
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member driven
member driven
Dear members, Since our inception in 1938, which began with powering 141 farms and homes, Central Rural Electric Cooperative has been on a mission to serve members with safe, reliable and affordable electricity. Today, our goal remains the same as we provide electricity to more than 17,000 members. In 2021, Central experienced substantial growth in membership, the electric distribution system and our smart grid fiber backbone. Central saw a 3% increase in membership, 34 miles of new electrical line and 933 miles of new smart grid fiber. As Central grows, so does our desire to find new and innovative ways to engage with our membership. For the second year, we hosted the Annual Meeting in multiple locations across our service territory using a drive-thru format. We saw an increase in participation using this format with 1,817 members attending the 2021 Annual Meeting as opposed to the 1,200 average from previous years. We are always excited to see more members participate in the business of our cooperative. Our member engagement efforts were not limited to the Annual Meeting. We also made an effort to continue evolving in ways that bring value to the member and create more opportunities for direct conversations. Our Kilowatts and Brats meetings held in Chandler and Stillwater allowed our board and staff to answer questions and receive valuable input directly from members. This year we continued the Central Ambassador program designed to provide interested members with targeted education courses about the cooperative. Topics include electric
cooperative basics, an overview of the electric industry focused on future trends, and a deeper dive into Central operations and fiber. Efficient communication with our membership was a big goal for 2021, one that was realized through our newly launched two-way outage texting. Now more than ever, it is easier for members to report an outage and receive updates. More than 50,000 text messages were sent to the 16,505 phone numbers enrolled, reminding members about planned outages, member meetings and so much more. With so many positive interactions, it’s easy to overlook the challenges that 2021 brought. A key component to Central’s ability to adapt and overcome obstacles is our dedicated team of staff and board of trustees. In early 2021 we saw an arctic blast that had the potential to affect our entire membership. This extreme cold weather led to region-wide electricity usage that exceeded available generation across large portions of the country. While many electric utilities faced rolling blackouts, we were fortunate and did not. This is in part due to the dedication of our cooperative staff and our power supplier who worked tirelessly to prepare for the worst and keep our members’ lights on. Delivering affordable and reliable electricity requires financial strength and stability to meet our members’ needs. Our goal is always to keep rates affordable, and our rates are consistently below the state and national average. The challenges and successes that 2021 brought are a powerful reminder that while we cannot predict the future, we can adapt and overcome any challenge, together.
Hunter Robinson, CEO Employed at Central since 1998
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Operations
Energy mix Operations
Energy Breakdown
Have you ever wondered how Central gets the electricity you use daily?
61% from coalpowered plants
Associated Electric Cooperative Inc. provides Central with a diverse energy portfolio and allows Central to provide clean, affordable and reliable power to our members.
19% from wind farms
Associated uses the lowest-cost resources first, typically hydropower when it’s available, then coal, natural gas and wind energy.
10% from Natural Gas
It takes countless hours and thousands of dollars to bring electricity to your home, with the largest expense coming from the cost it takes to purchase power.
7% from hydropowered dams
The energy mix is designed to provide the lowest price possible for members. Oklahoma has the second-lowest average electricity prices in the nation.
3% Purchased electricity
18.00
How does Oklahoma Compare?
14.87
Average retail price (cents/kWh)
7.51 Louisiana
7.63
8.32
Oklahoma Arkansas
8.36
Texas
9.64
Missouri
10.38
Kansas
New York California
Source: https://www.eia.gov/electricity/state/
Operations
Central Operations 1.01
Average outages per member
87
23,212
ACSI customer experience Score
Central meters
MEASURES THE UPTIME A Member EXPERIENCES
2
hours
Average Outage Duration
5
6
Financial stability
$193.4
million in assets
$58.8 Million in revenue
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165,060 KW Peak usage
556,539
MWH SOLD
21 subStations
43% Equity financed plant and assets with cooperative funds
Financial Summary
Financial stability
Operating Revenue Purchased Power Distribution Expense - Operations Distribution Expense - Maintenance Consumer Accounts, Sales & Info. Expense Administrative & General Expense Depreciation & Amortization Taxes Interest On Long-Term Debt Other Interest & Deductions Total Cost of Electric Service Patronage Capital & Operating Margins G&T & Other Capital Credits Other Non-Operating Margins Net Margin
Assets Net Utility Plant Other Property & Investments Current Assets Other Accrued Assets Total Assets
Liabilities and Equity Capital Equity Long-Term Debt Current Liabilities Other Long-Term Liabilities Total Liabilities & Equity
2021 $58,969,559 $34,060,795 $5,818,062 $5,331,565 $1,370,453 $4,180,916 $5,468,921 $71,492 $1,722,193 $73,587 $58,097,984 $871,575 $2,589,986 ($1,080,896) $2,380,665
2020 $55,579,385 $32,906,535 $4,324,907 $4,567,737 $1,755,863 $3,261,732 $5,311,298 $68,912 $1,589,299 $2,369 $53,788,652 $1,790,733 $2,493,535 $401,965 $4,686,233
2021 $132,280,935 $38,091,602 $22,360,531 $751,109 $193,484,177
2020 $103,236,597 $36,288,492 $29,133,397 $866,132 $169,524,618
2021 $83,677,092 $69,052,547 $27,669,378 $13,085,160 $193,484,177
2020 $83,073,224 $64,979,961 $8,285,187 $13,186,246 $169,524,618
FOR YEARS ENDING DECEMBER 31, 2021 AND 2020
Revenue Industrial 3% Commercial 36% Residential 61%
Expenses Fixed costs 19 % Operations & Maintenance 22% Cost of power 59%
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how we serve
74,551 Phone Calls from Members
$1.9 Million Capital Credits to members
442
New Members
4,450 miles of line
717
New services Connected
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how we serve
Empowering Members
noble co. garfield co. pawnee co.
Central is more than just a utility, we are a community made up of members. We are grounded on values and principles that allow us to focus on what matters most, you.
Perry Glencoe
District 3 District 1 2,320 Meters
Stillwater
Cushing
Perkins
kingfisher co.
District 4
Providing electricity to seven counties and averaging five meters per mile of line, Central’s 89 employees and seven trustees are constantly finding new ways to serve our 17,442 members.
payne co.
District 5 District 6
creek co. Guthrie
Central offers a variety of programs to members such as free home energy audits, rebates, community solar and generator programs, of which nearly 100 members took advantage.
logan co. Stroud Wellston
Luther
District 2
Chandler
District 7
Jones lincoln co. oklahoma co.
okfuskee co.
Member engagement is key to Central’s success. Through events such as the first-ever Kilowatts and Brats and a record-breaking Annual Meeting, your voices were heard like never before. By being a Central member, you’re buying so much more than electricity, you’re investing in your community.
Trustees Your board District 3
District 1
District 6
Carol Dvorak
Gary McCune SECRETARY/TREASURER
James Wells
PRESIDENT
2,355 Members
VICE PRESIDENT
2,492 MEMBERS
2,313 MEMBERS
District 2
District 4
District 5
District 7
2,755 MEMBERS
2,750 MEMBERS
2,347 MEMBERS
2,430 MEMBERS
Greg Tytenicz
Sid Sperry
Mark Pittman
Bill Davis
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Dedicated to serve
Safety Presentations
Operation Round Up Grant Recipient
Participa Communi ting in ty events
Meeting Members
Kilowatts and Brats
Youth Tour Scholarship Recipient
Dedicated to serve
$96,000
Donated Through 97 Operation Round Up Grants
Community Events Attended
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Empowering Communities
When you think of Central, do you picture bucket trucks and linemen? Your monthly electricity bill? What about Central’s investment in your community? Concern for community is one of the seven cooperative principles that guide Central. We are here to serve not only our members but also our communities. Each year Central invests in programs and individuals throughout our territory. Operation Round Up grants, school supply distributions, angel tree donations, Youth Tour and Energy Camp scholarships are just a few ways Central makes an impact. These programs are a collective effort powered by our members and employees. We truly believe that when we empower our communities, we make a better life for everyone.
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FIBER UPDATE
FIBER UPDATE
Dear subscribers, At the height of the pandemic, with most of America sheltering in place, many rural Oklahomans faced an unexpected challenge of rural connectivity.
We are on track with our feasibility study with the ultimate goal of being able to provide fast-speed, reliable internet to ALL of Central’s members.
Couples competing for bandwidth at the same time children tried to connect to their virtual schooling led to frustrations that frankly, many Americans did not have to face experience.
With so many fiber projects happening across the United States, labor and materials have been tough to purchase. Thankfully, Centranet’s partnership with Conexon has allowed us to continue moving forward without facing these issues plaguing the fiber industry.
We understood the challenges Central members were facing and the fact that they shouldn’t have to settle for second-rate services from old copper wires or shoddy satellites. With life bustling in Central’s territory, we knew the internet needed to keep up. Centranet, which began placing fiber huts in 2020, brought on its first subscribers in July 2021. Currently, 2,256 rural breakers are enjoying highspeed internet. We are extremely proud of our team and the hard work they have put into making this possible.
As a Centranet subscriber, you are getting more than high-speed fiber internet, you’re getting reliability. When we identify areas of our system that are not performing up to Centranet’s standards, we prefer to tackle them head-on. Though this project has not come without its challenges as we build a business from the ground up, we are adapting and learning every day. Centranet’s goal is to build the most reliable system possible to provide high-speed internet to those who matter most, you.
Mark Prather, President
President of Fiber & Technology since 2020
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Fiber update
Fiber update
The Fiber Difference
“Switching to Centranet was an easy decision for our family. Our internet speed increased 10x, which is a tremendous benefit when using multiple devices while working from home.”
THE KEVIN & MELINDA BELL FAMILY Rural Breakers since 2021
1,189
Miles of line built
Open to
45%
of Members
42 Business
Subscribers
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mycentral.coop
Phone 405-372-2884 | 3305 S. Boomer Rd. P.O. Box 1809 | Stillwater, OK 74076