The Energy Cooperative's 2025 Annual Report

ANNUAL 2025

PRODUCERS

OUR STORY

Cooperatives have deep roots in the communities they serve. In 1936, a group of farmers in Licking and Knox counties took advantage of a federal program offered by the Rural Electrification Administration (REA) and formed an electric cooperative known as Licking Rural Electrification (LRE). At inception, five people were employed to serve 410 members and 143 miles of electric line. The George Conrad Farm on Smoketown Road was the first member. For 40 years, the office was located one mile south of Utica on State Route 13 and was built in 1959. In 1998, LRE moved the headquarters to Newark.

In October of 1998, Licking Rural Electrification, Inc. acquired National Gas & Oil Company and its subsidiaries. Today, the Cooperative family includes National Gas & Oil Cooperative (NGO), Producers Gas Sales, Inc., NGO Development Inc., NGO Transmission, Inc., and NGO Propane Cooperative. The Energy Cooperative is the trade name used by LRE and its subsidiaries which operate as separate corporations.

Today, The Energy Cooperative brings safe and reliable energy to members with more than 73,000 meters, primarly in Licking, Knox and Muskingum counties. While the times may have changed, our mission and outlook have not. We view our role as a catalyst for good. Working together, we can accomplish great things for our community now and in the future.

LICKING RURAL ELECTRIFICATION, INC. (LRE)

Licking Rural Electrification, Inc. (LRE) is an electric cooperative dedicated to providing safe and reliable electricity to members throughout central Ohio. As one of Ohio’s electric cooperatives, LRE partners with Buckeye Power for electric generation. Their base load generation assets serve the day-to-day needs of Ohio Electric Cooperative members.

NATIONAL GAS & OIL COOPERATIVE (NGO)

National Gas and Oil Cooperative (NGO) is dedicated to delivering safe and reliable natural gas services throughout central Ohio. Our service is facilitated through a comprehensive network of distribution pipelines, designed to effectively meet the unique needs of our members and local communities.

NGO PROPANE COOPERATIVE (NGOP)

NGO Propane Cooperative (NGOP) is a propane distribution cooperative that provides safe and reliable propane services across central Ohio. As one of Ohio’s first metered propane services, NGOP allows members to pay exclusively for the propane they consume each month, ensuring a fair and efficient billing process.

NGO TRANSMISSION, INC. (NGOT)

NGO Transmission, Inc. provides firm gas delivery services for members of the National Gas and Oil Cooperative and Producers Gas Sales. With a robust network of pipelines and gas storage fields, NGO Transmission ensures reliable natural gas service for both affiliated and non-affiliated customers. The gas storage fields play a crucial role in balancing the pipeline system and can supply up to half of the daily energy requirements, reinforcing the reliability of our services.

NGO DEVELOPMENT CORPORATION (NGOD)

NGO Development Corporation owns wells that provide natural gas supply to the cooperative’s pipeline system. With over 40,000 acres of land leased for future oil and natural gas development, NGO Development is positioned in the wet gas and oil-producing region of the Utica shale. This acreage supports our commitment to ensuring a sustainable and reliable energy supply for the cooperative and its members.

PRODUCERS GAS SALES, INC.

Producers Gas Sales, Inc. specializes in arranging the acquisition and transportation of natural gas through the pipeline system specifically for our large consumers. This substantial volume of gas accounts for more than half of the natural gas sold or transported through NGO’s transmission and distribution systems, highlighting our commitment to meeting our member’s energy needs.

PRESIDENT’S MESSAGE

By Todd Ware, President & Chief Executive Officer

Reflecting on our mission and vision, I am reminded why we exist as a member-owned cooperative. Nearly ninety years ago, rural residents realized they needed to bring electricity to their communities themselves, leading to the formation of Licking Rural Electric (LRE) based on cooperative principles. The goal was for rural members to benefit directly from LRE. At the same time, local businessmen started a small business to sell natural gas, helping rural Ohio grow—this would later become National Gas & Oil (NGO). Today, these businesses operate as The Energy Cooperative, serving over 73,000 meters with electric, natural gas, and propane. Though our mission and vision statements have evolved, they remain rooted in the principles established decades ago.

2025 - A YEAR OF GROWTH

This year brought steady growth and strong financial results. Residential growth was slower, but commercial expansion remained robust. We continued building natural gas and electric systems and launched major long-term projects in 2025. For the fourth year, your board paid capital credits to electric members. The board and management look forward to 2026.

SAFETY

Each year, safety is our top priority for our employees and members. Our employees are exposed to many hazards each day, and we work hard to ensure they have the tools and knowledge to do their jobs safely. Every year, we participate in national peer review programs to benchmark our safety program against other companies in our industry. I am very happy that each year we are viewed as an industry leader for our safety programs. Our core safety metrics once again came in better than state and local industry averages.

FINANCIALS

We reported a consolidated net margin of just over $9 million for the year. This margin was $3 million above the year’s budgeted net margin. The increase in margin was driven by several factors, including higher member sales, higher sales margins, decreased interest expense, higher farmout income, and continued land sales around our natural gas storage wells. The increases were offset by higher-than-budgeted operations and maintenance expenses. Our capital expenses were over budget by $2 million as we caught up on remaining 2024 expenses and began 2026 projects earlier than anticipated. Consolidated comprehensive income was just over $10 million for the year, which was above budget.

ELECTRIC

The electric side of the business continues to focus on improving reliability, reducing outage times, and preparing for growth in western Licking County. During 2025, we spent over $26 million on capital improvements, including new transmission lines, upgrades to aging infrastructure, new line build, and the beginning of the Groves Corner substation. During the year, we added about 300 new electric members. Outage times and system line loss remained constant from 2024. We have continued toward a four-year rotation on our right-ofway clearing, which will improve outages and line loss.

NATURAL GAS

Our natural gas cooperative expanded with 500 new residential members and several large accounts. More than 30 miles of new pipeline were installed, and $15 million was invested in capital improvements. The major Clover Valley Pipeline project began, connecting TC Energy and supporting a large user who funds the expansion.

ADMINISTRATIVE

During 2025, we focused on continuing to improve our service to you, the members. Our customer survey scores during the year showed we made small improvements in all areas of our service. We continued to gain more sign-ups for text notifications. We focused our communication strategy on keeping you informed about all aspects of power supply and grid reliability. We have devoted significant resources to cybersecurity and to protecting our data and operational systems.

Looking ahead, The Energy Cooperative’s future is strong as we attract new members and prepare for large projects in 2026, including two substations for growth and reliability. We are also planning a new 24” pipeline from Hebron to New Albany, increasing capacity and reliability for western Licking County. The end user will fully fund this project.

Each year brings new challenges, and I feel very honored to lead this cooperative. I am blessed with an outstanding team of employees who work hard in all conditions to bring you safe and reliable energy every day. They demonstrate a strong dedication to the cooperative and its principles in everything they do. I am also grateful for the strong board of directors who consistently provide excellent leadership and support to The Energy Cooperative.

LICKING RURAL ELECTRIFICATION

By Josh Filler, Vice President & Chief Operating Officer - Electric Operations

Licking Rural Electrification (LRE) brings safe and reliable electricity to members with over 27,800 meters across nine counties in central Ohio. LRE owns, operates and maintains 3,080 miles of distribution lines, 40 miles of transmission lines, 20 substations and 3 switching stations.

In 2025, LRE added 297 new services to its system. LRE tries to be proactive in its maintenance programs to mitigate outages and improve reliability.

2025 PROJECTS

• Completed the 11-mile re-build of the North Liberty –Jelloway 69 kV Transmission line in northern Knox Co.

• Performed full sectionalizing review in the Jelloway substation area for improved outage mitigation.

• Broke ground on two new substations in the New Albany and Johnstown areas. Those being our Grove’s Corner Station and Nichols Station.

• Began the FLISR/Distributed Automation project which will provide automated isolation and outage restoration to improve reliability.

• Upgraded and converted our SCADA (Supervisory Control and Data Acquisition) software.

• Continued work with fiber companies to bring high speed internet to our service territory replacing over 350 poles in 2025 to support that effort.

• Rebuilt approximately 10 miles of 12kV overhead distribution lines as part of our aging infrastructure program.

27,800 meters

297 new services added

9 counties

5,890 poles inspected

3 , 080miles ofdistributionlines 40miles oftransmissionlines 20 substations&3switchingstations

484 miles of trees were cut/trimmed 668 hazardous trees removed

66 potentially dangerous poles replaced

1,193 underground facilities inspected 179miles miles mowed

2025 INSPECTIONS/MAINTENANCE

• 5,890 poles inspected; 66 were identified as deteriorated and potentially dangerous poles that could cause outages or unsafe conditions and were replaced.

• 1,193 underground facilities inspected for possible hazards, repairs or replacements.

• Regulators, capacitors and reclosers inspected to ensure proper operation.

• Inspections of each of our substations and switch stations completed monthly, as well as, oil testing each station transformer and infrared scanning for potential hot connections.

• 484 miles of right-of-way along our lines cut and trimmed, 179 miles mowed and 668 trees (identified as dangerous or hazardous) were removed from under or near power lines.

NATIONAL GAS & OIL COOPERATIVE

By Dan McVey, Vice President & Chief Operating Officer — Gas Operations

National Gas & Oil Cooperative (NGO) brings safe and reliable energy to nearly 40,000 residential and commercial meters within a seven-county area. Members of the cooperative consumed over three billion cubic feet of natural gas last year. This gas service is provided through a network of nearly 1,200 miles of distribution pipelines.

We

are committed to providing our members with safe and reliable natural gas service.

In 2025, we connected 504 new members and installed 32 miles of distribution mains to replace legacy pipelines and foster new growth. Most of the new mains were installed in western Licking County in conjunction with development in that area.

2025 PROJECTS

• Installed 32 miles of new pipelines

• Began construction of the 12-inch high-pressure Clover Valley Pipeline to transport gas for a behind-the-meter power generating project

• Modernized a low-pressure system in East Newark to ensure safe, reliable gas supply

2025 INSPECTIONS/MAINTENANCE

• Performed over 25,000 OHIO811 requests for location of pipeline facilities

• Inspected over 300 regulator stations and nearly 1,000 valves

• Maintained 150 miles of pipeline right-of-way

• Responded to over 11,000 service calls for members

• Patrolled and surveyed over 400 miles of pipelines for leak detection

39,000+ meters

10 miles distribution mains replaced

7 counties

1,200 miles distribution pipelines

32 miles distribution mains added

3.7 billion cf+ of natural gas consumed last year

504 new services added

NGO PROPANE COOPERATIVE

By Dan McVey, Vice President & Chief Operating Officer — Gas Operations

NGO Propane Cooperative (NGOP) provides propane service to 5,227 consumers within a fourteen-county area. Members of the cooperative consumed over 4 million gallons of propane last year. The propane delivery trucks traveled more than 80,000 miles and drivers made more than 11,000 deliveries in all kinds of weather conditions, proving our commitment to providing our members with safe and reliable propane service.

We continue to focus on providing affordable fixed-price propane with metered service. Our metering option helps members budget for their energy needs and avoid price increases that sometimes occur during the winter season.

This also allows members to pay for only the propane they use each month and avoid a costly bulk tank refill. As part of our commitment to the community, we have seven themed delivery trucks with special colors and decals. We recognize local veterans and first responders with our red, white and blue trucks. The cooperative is proud to recognize and support these organizations. The cooperative supports charitable organizations based on propane deliveries from our themed trucks.

5,227 consumers

14 counties

80K miles traveled by delivery trucks 11k+ propane deliveries

NGO TRANSMISSION

The primary role of NGO Transmission is to provide firm gas delivery service to the consumers of National Gas & Oil Cooperative and Producers Gas Sales. Transportation opportunities are also available for any qualifying gas shippers within Ohio. NGO Transmission provides natural gas service to both affiliates and non-affiliates through a network of over 150 miles of pipeline and three underground gas storage fields. These gas storage fields help balance the pipeline system and can provide up to half the daily supply needs of the pipeline system.

NGO Development Corporation owns interest in more than 100 oil and natural gas wells in Central Ohio. Many of these wells provide natural gas supply to the cooperative’s pipeline system. Oil and natural gas reserves total 52,000 barrels and 1.4 billion cubic feet. Monthly production averages 250 barrels of oil and 7,000 Mcf of natural gas. Currently we have more than 40,000 acres of land under lease for future oil and natural gas development. Most of the acreage is in the wet gas and oil producing region of the Utica shale.

Producers Gas Sales operates as an affiliated on-system marketing company for large commercial and industrial members. Producers Gas Sales arranges for acquisition and transportation of natural gas through the pipeline system for our large consumers. The volume of gas transported to large commercial and industrial members totaled nearly four billion cubic feet and represents more than half of the total gas sold or transported through the transmission and distribution systems.

SAFETY & ADMINISTRATION

By Connie Hogue, Vice President of Human Resources & Safety

Safety continues to be a core value of the cooperative. We are committed to continuously strengthening our safety culture for the well-being of our employees, members and the public. Each year, we establish clear safety goals and expectations, while empowering every employee to take personal responsibility for safe work practices, ensuring that everyone goes home safely at the end of each day.

SAFETY RECORD

One of the key metrics we use to evaluate our safety performance is the incident rate, which measures the number of incidents per 100 employees. In 2025, we recorded one OSHA-recordable incident, resulting in an overall company incident rate of 0.56. By comparison, incident rates reported by Ohio electric cooperatives and natural gas companies across the United States were 2.28 and 2.30, respectively.

Over a five-year period, our average incident rate is 0.57, significantly lower than the five-year averages of 2.12 reported by both Ohio electric cooperatives and natural gas companies. These results reflect our ongoing commitment to maintaining a strong safety culture and prioritizing the well-being of our employees, members and the communities we serve.

The Energy Cooperative’s natural gas operations once again earned recognition as a top safety performer in 2025. The cooperative received a Safety Achievement Award from the American Gas Association (AGA) for achieving the lowest employee injury rate among companies of similar size, an accomplishment that reflects our ongoing commitment to safety and operational excellence.

SAFETY COMMITTEE

Our “Caught in the Act” program continues to play a key role in recognizing employees for their commitment to safety. The program empowers employees to acknowledge peers who take extraordinary steps to enhance workplace safety, reduce potential hazards, or go above and beyond expected standards.

In 2025, 13 employees were recognized with a Caught in the Act safety award for their outstanding efforts. At year-end, a committee selects a recipient whose actions stand out above the rest.

.57 five-year incident rate compared to 2.12 .56 incident rate compared to 2.22 & 2.30

This individual(s) is then honored at our annual All Employee Meeting, reinforcing our culture of safety and recognition.

Scott Anders and Zack Hill, Lead Line Inspectors, were recognized in 2025 for going above and beyond to help an elderly man in need. After noticing him stranded on a motorized scooter, they stopped, checked on his wellbeing, and safely pushed him back to his home. Their quick action and willingness to help made a meaningful difference, preventing what could have been a dangerous situation.

MOTOR VEHICLES

In 2025, our employees drove more than 1.5 million miles and recorded just one preventable accident. We track vehicle safety performance using the accident rate, which measures the number of motor vehicle accidents per one million miles driven. For the year, our at-fault accident rate was 0.65.

Over a five-year period, our average at-fault accident rate was 1.13, well below the industry average of 2.04. These results highlight our employees’ commitment to safe driving practices and our continued focus on protecting both our team and the communities we serve.

HEALTHCARE

Health care expenses in 2025 slightly decreased compared to the prior year. While overall medical and pharmacy costs continue to rise across the United States, The Energy Cooperative remains focused on closely managing these expenses to ensure they stay reasonable and affordable. We regularly evaluate and implement cost-control measures, including adjustments to plan design and employee contribution levels, which are reviewed on an annual basis.

SUCCESSION PLANNING

In 2025, The Energy Cooperative proudly recognized three employees on their retirement, honoring their many years of dedication and service. As we look ahead, we anticipate additional retirements as part of our evolving workforce. To support a smooth transition and continued success, succession planning remains a key priority in order to ensure we develop and retain the talent needed to lead The Energy Cooperative into the future.

1.5 miLLION miles driven by employees

1.13 at-fault accident rate compared to 2.04

3 employees retired

MARKETING & MEMBER SERVICES

By Heather Juzenas, Vice President of Marketing & Member Services

Our Marketing and Member Services Department works to simplify the experience for our members and make it as smooth as possible. We manage the cooperative’s communications, public relations, member accounts, and provide front-line support to our members. The team handles digital media, advertising, call handling, billing, payment processing, disconnections, and collections.

One way we measure our performance is through the American Customer Satisfaction Index (ACSI®). This year, our electric cooperative received an ACSI score of “82” on a 100-point scale. Our natural gas cooperative received a score of “84”. While the scores are a useful tool, the biggest value we receive from this survey is the feedback, comments, and questions from our members. If you have a chance to participate in this survey, please do so. It is an easy way for you to provide feedback. For more information on ACSI®, or to compare our scores with other electric or natural gas utilities, visit https://theacsi.org/industries/energy-utilities/.

MEMBER CENTER

Our member service representatives speak with hundreds of members each day. They welcome new cooperative members, help them understand how their energy use relates to their bills, and teach them how to manage all aspects of their account in SmartHub.

Highlights:

• Answered 59,335 member calls

• Achieved 95% satisfaction on call surveys

• Answered 85% of phone calls within 90 seconds

• Created 707 new member accounts

MEMBER ACCOUNTS

This team greets members at our Granville Road drive-thru, generates more than 73,000 energy bills monthly, and processes all member payments. We also oversee disconnects for non-payment and the cooperative’s collections efforts.

• Billed 36,387,496 ccfs to natural gas members

• Billed 440,582,713 kwhs to electric members

• Billed 4,084,023 gallons to propane members

• Increased paperless billing to 25% of total bills

MARKETING & COMMUNICATIONS

Our Marketing and Communications team manages the cooperative’s communication efforts. This includes advertising, social media and myenergycoop.com. We handle sponsorships, events and community relations.

Highlights:

• Published The Energy Cooperative’s Times magazine, Issues 1, 2, 3, 4

• Hosted Kids Day at the Works in June

• 1,000,000+ impressions on Facebook

• 6,000,000+ reach on Instagram

• 400,000 views on myenergycoop.com

Our department’s top priority is to serve cooperative members and to provide them with the information they need (when they need it). We look forward to continuing our efforts in 2026.

707 new cooperative members

59,335 member calls

95% satisfaction on call surveys

85% calls answered within 90 secs.

INVESTING IN OUR YOUTH

Children of Members Scholarship Recipients

Investing in our future means investing in our youth. Today’s children will become future homeowners, business owners and the leaders of our communities. As a cooperative, it is important to instill in our youth an understanding of what it means to be a cooperative owner and to show them the cooperative difference. That is why we proudly provided $15,000 in scholarships to high school seniors in 2025.

Children of members scholarship recipients

TREASURER’S REP ORT

For the year end December 31, 2025, the Board of Directors engaged bhm cpa group, inc. to perform an audit of the cooperatives’ books and records. The bhm cpa group has extensive experience in auditing both utilities and cooperatives. On March 30, 2025, bhm issued the audit report for the year ended December 31, 2025. The audit report contained an unmodified opinion, which indicates the auditor found no material misstatements, representing the most favorable audit result.

In 2025, total revenues for the cooperatives were $158 million. Total operating expenses for the year were $151 million, of which $79 million was for purchased energy. Patronage capital received from other cooperatives was $2.1 million. The net margin for the consolidated group was $9.4 million.

Consolidated comprehensive income for 2025 was $10.7 million. Comprehensive income is calculated by adding net margin and unrealized gains and or losses on postretirement benefits plans. Comprehensive income for 2025 for each subsidiary are as follows:

• Licking Rural Electric - $3.5 million

• National Gas & Oil - $5.7 million

• NGO Transmission - $974,000

• NGO Development – ($67,000)

• NGO Propane - $635,000

As of December 31, 2025, your cooperative has $420 million total assets, which includes $344 million in net plant assets. The cooperatives invested $42.7 million in new plant assets during 2025. The company has $41 million of patronage capital in other cooperatives, including Buckeye Power and Cooperative Finance Corporation. Included in total assets is $1.4 million in cash and short-term investments. Total liabilities were $288 million. The cooperative has total equity of $106 million. Equity as a percentage of assets for the combined entities is 25 percent as of December 31, 2025.

The Energy Cooperative serves over 73,000 meters. During 2025, the company paid over $9.6 million in taxes. The cooperative retired $432,000 in patronage capital credits to estates and $909,000 in general retirements to electric members throughout 2025. If you have additional questions about this financial report, please contact the office at 740-344-2102.

INCOME STATEMENT

DECEMBER 31, 2025

$150,975,144

$8,300,616

BALANCE SHEET BALANCE

$344,208,510

896,604

8,500,000

8,687,983

2,231,192

$56,441,657

$363,343,049

BOARD OF DIRECTORS

5 1 7 3 6 4 8 9

COOPERATIVE LEADERSHIP

The designations Credentialed Cooperative Director (CCD), Board Leadership Certification (BLC), and Director Gold Certificates (DGC) are earned by Directors upon their completion of a series of certification classes provided by the National Rural Electric Cooperative Association (NRECA).

PRINCIPLES Cooperative

The Energy Cooperative’s mission is to provide safe and reliable energy with highly responsive service consistent with the Cooperative Principles.

VOLUNTARY & OPEN MEMBERSHIP

Membership in a cooperative is open to all persons who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender or economic circumstances.

DEMOCRATIC MEMBER CONTROL

Cooperatives are democratic organizations controlled by their members. Elected representatives (directors/trustees) are elected from among the membership and are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote); cooperatives at other levels are organized in a democratic manner.

MEMBERS’ ECONOMIC PARTICIPATION

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital remains the common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

AUTONOMY & INDEPENDENCE

Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control as well as their unique identity.

EDUCATION, TRAINING & INFORMATION

Education and training for members, elected representatives (directors/trustees), CEOs and employees help them effectively contribute to the development of their cooperatives. Communications about the nature and benefits of cooperatives, particularly with the general public and opinion leaders, helps boost cooperative understanding.

COOPERATION AMONG COOPERATIVES

By working together through local, national, regional, and international structures, cooperatives improve services, bolster local economies and deal more effectively with social and community needs.

CONCERN FOR COMMUNITY

Cooperatives work for the sustainable development of their communities through policies supported by the membership.