Page 4 - AECI 2022 BALANCE AR copyright 2023

From the president of the board and CEO and general manager

Associated Electric Cooperative continued to provide reliable and affordable power to members environmental, gas pipeline and transmission perspectives.
throughout 2022, maintaining rate discounts despite facing new and unique challenges in the energy Also in 2022, Associated and its six G&T owners began work on significant enhancements to our
industry and economy. transmission system to strengthen reliability as utilities continue to retire generating plants adjacent to
A combination of post-pandemic supply-chain shortages, economic fallout from the Russia-Ukraine our system. One key project underway is an expansion of the capacity of the Associated – Tennessee
conflict, volatile fuel prices, railroad system congestion, workforce shortages and competition, inflation Valley Authority interconnection by 795 MW, which will enable additional import and exports during
and interest rate increases tested all areas of Associated’s business. future weather events.
Adding to these challenges, nature buffeted our system and members with two significant weather Overall, Associated continued to perform well financially with margins of $25 million during a difficult
events resulting in a new all-time summer peak energy load, and later in the year an all-time peak year on many fronts. Most importantly, Associated set several new safety records at its plants, which
energy load for any season. Ahead of the summer peak of 4,538 megawatts in July, an unplanned outage meant fewer employee injuries and better overall reliability.
forced Thomas Hill Energy Center Unit 3 offline and the Dell Power Plant endured delays during its major Finally, Associated spearheaded an important communications campaign in 2022 to remind the indus-
planned maintenance outage. try that reliability of electricity is as important to people’s lives as addressing climate change. The primary
Associated reliably served the all-time summer peak but just as waters seemed to calm, winter storm message: A successful transition to a low-carbon future will require time for transmission improvements
Elliott arrived in late December bringing high winds, ice, snow and temperatures plunging to 25 degrees and technology developments that result in dispatchable capacity – not only intermittent energy. We are
below zero, resulting in a new all-time peak load for any thankful for strong business relationships with organizations
season of 5,899 MW. With weather and operational challenges, who also support an orderly energy transition: ACES Power,
as well as tight energy supplies surrounding our transmission Association of Missouri Electric Cooperatives, Oklahoma
system, Associated again successfully kept the electricity Association of Electric Cooperatives, Iowa Association of
flowing for the three-tiered system. Electric Cooperatives, America’s Power, BNSF Railway, Electric
Starting with a 2018 polar vortex, a series of hourly peak Power Research Institute, G&T Managers Association, National
energy load increases provided motivation to recommission the Renewables Cooperative Organization, National Rural Electric
44-megawatt liquid fuel Unionville Power Station and to opti- Cooperative Association, North American Electric Reliability
mize capacity at existing gas-fired plants. Efforts to optimize the Corporation and Peabody Energy.
existing gas fleet capacity added 42 MW in 2022 alone. Union- As we reflect on 2022 and look to the future, we encourage
ville will be ready to generate power in 2023. By 2025 a total of legislators, regulators and the energy industry at large to
188 MW from these projects will further support reliability. always remember reliability and how it impacts the daily lives
In early 2022, the board of directors authorized Associated of those they serve, both during mild, clear blue-sky days and
to add up to 900 MW of new gas peaking capacity at two on cold, stormy days when energy use reaches all-time highs.
locations projected to be online starting in 2026. Associated Livelihoods and lives, then as now, will depend on reliable
has secured five potential sites in Missouri and Oklahoma power supply.
and prior to construction will identify the two best sites from

We value the support of our cooperative system and will continue to
work every day to maintain the trust in Associated built through
Emery O. Geisendorfer, president decades of member-focused leadership.
Associated Electric Cooperative David J. Tudor
board of directors CEO and general manager
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