I’m excited to share the highlights of our 2023 Annual Report. Last year, we introduced five strategic initiatives during a strategic planning session with our board of directors, focusing on financial strength, long-term growth, safety, member engagement, and workforce development. These initiatives have guided us throughout the year, and I’m proud to report on our progress and achievements.
Financial Strength
I encourage you to review our 2023 financial report and operating statistics on page 19. It’ll show that Medina Electric Cooperative is financially stable. Some highlights of the report show a 9.98% increase in our total assets, bringing our total utility plant to over $328.3 million. We have over 36,000 active meters and sold more than 1.5 billion kWh which generated $147.7 million in revenue. Our expenses totaled $146.4 million, with 73.8% spent on purchased power. We received $9.5 million from our power supplier, South Texas Electric Cooperative, $3 million from other entities, and $400,000 from other non-operating margins. All of this contributes to our total margins, which reached $14.2 million.
As a not-for-profit cooperative, these margins are allocated as capital credits to our members. Over the past five years, we have retired $10 million in capital credits, including $2.05 million in 2023.
Industry Challenges and Advocacy
We face significant challenges from new Environmental Protection Agency regulations, especially the Clean Power Plan 2.0, which imposes stringent emission limits on coal and natural gas plants. These regulations could lead to plant closures or expensive upgrades, impacting reliability and costs. However, the Texas Legislature’s Texas Energy Fund provides some relief with low-interest loans for new dispatchable power plants. We continue to advocate for our members, working closely with industry associations and stakeholders.
Long-Term Growth
Ensuring long-term growth is crucial for serving our community effectively. With substantial development in our Medina County service area, we identified the need for additional facilities. After careful consideration, we began expanding our Hondo office, which includes our supply yard and member services building. We expect to complete Phase 1 by mid-2025 and Phase 2 by 2026. We also continue to collaborate with economic development groups to attract new businesses, emphasizing the importance of a reliable power supply.
Safety and Reliability
In 2023, our system operations team began to handle outage management and crew dispatching in-house. Earlier this year, our team transitioned to 24/7 coverage, enhancing grid monitoring, improving outage response times, and boosting safety and reliability for our members.
Member Engagement and Community Support
We strive to keep our members at the forefront of all we do. We constantly research programs and services that could enhance member experience. In 2023, we began working on a project to improve the data members have about their energy use. This feature is now available and provides our residential members advanced consumer analytics accessible through SmartHub which offers personalized energy insights, helping members manage their bills more effectively.
We have many programs available for our members. I’m proud of our Youth Tour and scholarship programs which provides educational opportunities for our young members.
Programs like the Community Empowerment Program and Operation Round Up help fund local projects and support families in need. In 2023, we awarded significant funds to various community initiatives.
I’m excited to also announce that we received a Customer Satisfaction Award from the American Customer Satisfaction Index (ACSI®) based on our member survey results. Thanks to our members’ feedback, we achieved one of the top five scores in the nation. This award reflects our dedication to providing the best possible member experience.
Workforce Development
Our success relies on attracting, retaining, and developing a skilled workforce. This year, we will have celebrated 23 employees who reached milestone anniversaries, highlighting our commitment to service. Our team, from interns to long-term employees, is dedicated to maintaining high standards and ensuring seamless knowledge transfer to the next generation.
Looking back on 2023, I am incredibly proud of our cooperative’s achievements. We have strengthened our financial stability, implemented tools and resources for long-term growth, maintained a focus on safety, and cultivated a strong workforce, all while striving to exceed member expectations.
Thank you for your continued support and trust in Medina Electric Cooperative. I hope to see y’all at this year’s Annual Membership Meeting on September 28 at the Herby Ham Activity Center in Uvalde.
Sincerely,
Trey Grebe
