THE ENERGY COOPERATIVE TIMES

DIGITAL EDITION, JUNE 2026

PRESIDENT'S MESSAGE

By Todd Ware, President & Chief Executive Officer

Ninety years ago, a group of rural residents decided that if they were going to get electricity, they would need to do it themselves. They set out to form Licking Rural Electric (LRE). Their idea was to provide electricity to rural residents based on cooperative principles. The hope was that rural members would truly benefit from being part of LRE.

Around the same time, a group of local businessmen started a small business to sell natural gas to local businesses so that the rural areas of Ohio could develop and prosper. This small business would later become National Gas & Oil (NGO). Today, these businesses are part of The Energy Cooperative family. Currently, we serve electric, natural gas and propane to members with more than 73,000 meters. While our mission and vision statements have been rewritten many times over the last 90 years, they still focus on core principles from decades ago.

Each year, safety is our number one focus for our employees and members. Our employees are exposed to a variety of hazards each day, and we work hard to ensure they have the tools and knowledge to do their jobs safely. We participate annually in national peer review programs to benchmark our safety program against other companies in our industry. I am incredibly happy that, each year, we are recognized as an industry leader in safety programs.

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. The investments included new transmission lines, upgrades to aging infrastructure, new line builds, and the start of the Groves Corner substation. We added approximately 300 new electric members last year. Outage times and system line loss remained constant from 2024. We have also continued toward a four-year rotation for our right-of-way clearing, which will reduce outages and line losses. The natural gas cooperative grew by adding just over 500 new residential members and several new large members. We completed just over 30 miles of pipeline construction, with the majority of the work being new pipe installation. We spent just over $15 million on capital improvements during the year. The continued focus on replacing aging infrastructure helps us keep outstanding leaks and line loss at historic lows. A major project for the natural gas division was the start of the Clover Valley Pipeline in Western Licking County. This pipeline connects TC Energy to our natural gas system and will serve as a major supply line to a large user, who will pay 100% of the line's cost.

We continue to add new members of all sizes. A couple of large projects on tap for 2026 include two new substations coming online to support new growth and improve deliverability on our current electric system. In addition, we are in the planning stages for a new 24” pipeline, which will ultimately run from Hebron to New Albany. This line will provide additional capacity in western Licking County and supply power facilities in the New Albany area. This new line will be paid for by the end user.

Each year brings new challenges, but I remain incredibly 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. They show a high level of dedication to the cooperative and its principles in everything they do. The future of the cooperative remains strong. We look forward to serving you for many years to come.

20 YEARS OF KIDS DAY

By Heather Juzenas, Vice President of Marketing & Member Services

This year marks the 20th anniversary of The Energy Cooperative's Kids Day event. This event started as a fun way to engage the cooperative's young families. It quickly became a signature event that our employees look forward to every year. This year, Kids Day will be held on July 19 at The Works and Canal Market District in Downtown Newark. With expanded parking options, shops, and restaurants downtown, we encourage our members to join us and spend an afternoon in the heart of Licking County. Over the years, Kids Day has hosted thousands of cooperative members. We have watched our members enjoy The Works Museum, bounce houses, pony rides, electrical safety demos, face painting, carriage rides, games, and so much more! This event outgrew The Works parking lot and, in recent years, expanded into the Canal Market District.

One of my favorite parts of the event is watching cooperative employees, along with their families, volunteer to host the event for members. Not all of our employees have regular interactions with members. For this reason, we look forward to this event every year as a chance to connect with members. This event is a great way to see the people behind your cooperative.

We have hundreds of photos of employees (past and present) working this event with their children and families. It is great to see those kids grow up and become volunteers themselves. We now have members who attended this event as children, bringing their own young children. If you remember coming to Kids Day as a child, we would love to hear from you! It is wonderful to see how many people have been part of this event over the past 20 years. Why do co-ops give back to their communities? Cooperatives are formed and owned by their members to meet shared needs. Our purpose has always been to provide safe, reliable energy. But we also believe in supporting our communities so they can grow and succeed. Our members started this cooperative because they saw a chance to bring electricity to their area when no one else would. By working together, they made it happen. Today, we continue this tradition by helping our neighbors and investing in our communities. Kid's Day 2026 Join us on July 19, from 12 to 3 p.m., to celebrate 20 years of Kids Day. This tradition brings together members, employees, families and community partners. Mark your calendar, invite your family, and make new memories with us at this year's Kids Day!

BRING YOUR OWN POWER

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

Groves Corner Substation

Data centers and artificial intelligence (AI) seem to dominate every headline and conversation these days. Regardless of how you feel about either, AI and the data centers that support it are continuing to expand — and the demand is only growing. It seems as though artificial intelligence, in some capacity, is used daily in our lives. It is also imperative that the United States leads the race in AI for national security reasons. The challenge these companies face is gaining access to electric capacity on the transmission grid. The transmission system, generation capacity, and interconnection processes were simply not designed to handle loads of this size and speed. Over the last few years, hyperscale data center developers have begun to realize that if they want access to the transmission grid, they could be waiting 7–10 years or more. So, some have decided to take matters into their own hands. In 2025, Ohio passed HB 15, which allows large energy users to install their own generation behind the meter — either on their own premises or on land they own or control elsewhere. You may have heard President Trump's State of the Union address, in which he announced the “Bring Your Own Power” (BYOP) initiative. This has since evolved into the Ratepayer Protection Pledge, signed by major data center owners including Amazon, Google, Meta, Microsoft, OpenAI, xAI, and Oracle. These companies have pledged to build, buy, or develop their own power sources to supply their data centers. This minimizes or eliminates upward rate pressure on other customers from the infrastructure their loads would otherwise require. There also continues to be ongoing legislation and rulemaking that is focused on requiring data centers to pay all costs associated with their service and that those costs are not shifted to residential or other retail consumers.

Bring your own power is now coming to our area. Data center developers are moving forward with plans to build their own generating facilities to power their operations. Most, if not all, are combustion turbine power plants. The Energy Cooperative is playing a role in this effort by supplying natural gas to some of these developers. Ultimately, this is about ensuring that data center growth does not drive up generation and transmission costs for everyone else and that data centers pay for the cost of the infrastructure that is necessary to power their facilities.

HEAT-RELATED ILLNESSES

By Connie Hogue, Vice President of Safety and Human Resources

With extreme temperature changes come important health risks, making it essential to protect yourself and those around you from the dangers of excessive heat. When temperatures soar into the 90s and humidity rises, your body works overtime to maintain its normal temperature of about 98.6°F. Even a short-term increase in body temperature can turn serious and develop into heat exhaustion or heat stroke—and in severe cases, can be life-threatening, especially if left untreated. One of the most effective ways to stay safe during hot summer days is to understand the warning signs of heat-related illnesses, take preventive measures, and know when and where to seek help.

Warning Signs of Heat-Related Illness The good news is that many symptoms of heat-related illness are easy to recognize—but they should never be ignored. Common warning signs include:

Body temperature over 102°F
Flushed or red skin
Excessive sweating
Rapid heartbeat
Heavy breathing
Dizziness or lightheadedness

It is important to distinguish between heat exhaustion and heat stroke. Heat Exhaustion This occurs when your body cannot cool itself effectively through sweating. Symptoms may include heavy sweating, weakness, nausea and dizziness. Heat exhaustion can progressively turn to heat stroke. If someone shows warning signs of heat exhaustion, encourage them to move to a cool place and drink water to cool down. If the symptoms do not resolve within an hour, seek medical attention, as it could progress to heat stroke. Heat Stroke Heat stroke is serious, and it should never be taken lightly. It occurs when the body temperature increases rapidly to a level that the body can no longer regulate. Then sweating stops, and confusion sets in. If you presume someone is experiencing heat stroke, call 911 immediately. While waiting for emergency services to arrive:

Move the person to a cool area.
Remove unnecessary clothing.
Cool the body with damp cloths or water.
Apply ice to the neck, head and armpits.

Preventative Steps You can take preventative and effective steps to stay safe and keep your home cooler during extreme heat:

Use weatherstripping on doors and windows to keep hot air out and cool air in.
Close curtains or blinds to reduce unnecessary heat from sunlight entering your home.
Fans provide temporary comfort by circulating air, but they do not lower body temperature.
Visit air-conditioned locations such as community centers, libraries, movie theaters or indoor pools.
Increase your water intake to replenish fluids lost through sweating.

Stay informed and prepare for the warmer days ahead. That way, you will be able to stay cool and calm when extreme heat strikes and ensure a safe, healthy summer.

AI GUARDRAILS

By Scott Stitts, Vice President & Chief Information Officer

AI assistants, like Amazon's Alexa, Apple's Siri and Google's Assistant, are built to process and analyze the data users provide. While this technology is widely used, it is still relatively new. Here are some tips to keep in mind when you use AI assistants in your daily life. Don’t overshare. Assume that any information you share with AI will be stored, processed and reviewed as part of the service's operation. Do not share sensitive personal information like passwords, social security numbers, banking details, credit card information, tax records, medical information, or other confidential data. The rule of thumb is to avoid including sensitive details in your prompts. Don't assume everything is true. AI assistants are programmed to present information like experts, but it’s important to remember they are not always accurate. The information may be incomplete, outdated or wrong. AI can be a helpful tool, but you should always verify that the information is correct. Click with caution. Cybercriminals use AI to create convincing phishing emails, fake websites, and fraudulent messages. Do not provide personal information, install software, transfer money, or change your account settings. Take the extra time to be skeptical. Those extra seconds of verification can prevent significant problems. Read the fine print. You should review the privacy policy and privacy settings for any AI assistant you decide to use. Each platform handles user data differently. Some services keep conversations, use your data to improve future responses, and retain information for extended periods. It’s important that you know how your data is collected, stored and used to protect your personal privacy. Human in the loop. AI should not replace your own judgment. AI can provide suggestions, but it lacks the important context needed to make sound decisions. Consider AI-generated content as one source of information, not as the final answer.

AI can be a useful tool, but we need to use it responsibly. Just as mapping software changes how we navigate the world, AI will change how we consume information. It is important to use AI thoughtfully. By following these simple tips, you can leverage the technology while keeping your personal information safe.

CLOVER VALLEY PIPELINE

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

Western Licking County continues to experience unprecedented growth as private investment and public infrastructure work together to support the region’s expanding data center and industrial economy. A component of that growth is the Clover Valley Pipeline Project, a significant natural gas infrastructure investment designed to serve both a hyperscale data center and the members of The Energy Cooperative. Upon its safe and successful completion in June, the project will strengthen energy reliability, support economic development, and help meet the region’s growing energy demands for years to come. A Pipeline Designed for Growth and Reliability The 12-inch-diameter Clover Valley Pipeline extends approximately 4.9 miles through western Licking County, terminating near the southern end of Clover Valley Road and strategically positioned to serve a new data center development. The pipeline provides a direct connection to regional natural gas supplies and supports on-site power generation facilities. Throughout the project, safety remained the highest priority. Detailed planning, rigorous construction standards, and strict regulatory oversight helped ensure the pipeline was built and can be operated safely while minimizing impacts to surrounding communities. The associated behind-the-meter power generation facility will provide electricity directly to the data center, helping reduce strain on the regional electric grid while delivering dependable power to support one of the area's largest economic investments.

While the project supports a major industrial customer, its benefits extend well beyond a single facility. The Clover Valley Pipeline Project will create lasting value for cooperative members and the broader community.

Enhanced Natural Gas Reliability The new infrastructure strengthens the cooperative's natural gas delivery system by adding capacity and flexibility. These improvements will help ensure reliable service during periods of peak demand, particularly during extreme winter weather when dependable natural gas service is most critical. Support for Economic Development Reliable energy infrastructure is essential for attracting and retaining businesses. The Clover Valley project helps position Licking County for continued industrial growth, bringing new investment, expanding the tax base, and creating opportunities for future job creation throughout the region. Construction and Skilled Trade Opportunities The project generated work for contractors, construction crews, engineers, equipment operators, and other skilled professionals. These activities create economic benefits that extend to local businesses, suppliers and service providers. Long-Term System Benefits Strategic infrastructure investments help ensure the cooperative can continue meeting the needs of existing and future members. By expanding delivery capabilities today, the cooperative is preparing for tomorrow's growth while maintaining a focus on reliable, affordable service.

Meeting the Needs of a Growing Region Now known as The Silicon Heartland, Central Ohio has become one of the nation’s fastest-growing destinations for AI centers and advanced industry. As energy demand continues to increase, infrastructure investments such as the Clover Valley Pipeline Project play a vital role in supporting sustainable growth.

The project represents more than a pipeline—it is an investment in reliability, economic opportunity, and the future of Licking County. Through careful planning, responsible construction practices and a commitment to safety, the Clover Valley Pipeline Project will help ensure that both industry and cooperative members have access to the dependable energy resources needed to thrive.

With safe and successful project completion, the Clover Valley Pipeline Project stands as an example of how modern energy infrastructure can support economic growth while enhancing natural gas reliability for the communities The Energy Cooperative proudly serves.

TREASURER’S REPORT

By Pat McGonagle, Vice President & Chief Financial Officer

For the year ended 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 total assets of $420 million, 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 1-740-344-2102.

MOHICAN ADVENTURES & TRAILS END RESTAURANT

The Energy Cooperative proudly brings electricity to Mohican State Park and the surrounding areas. This month, we are excited to spotlight two member businesses that rely on our electric service every day: Mohican Adventures and Trails End Restaurant. Mohican Adventures and Trails End Restaurant are family-owned businesses in Loudonville. Their partnership with The Energy Cooperative means they get dependable service, people who respond to their needs, and local support from a team who understands the needs of local businesses, families and the larger community. From powering RV sites and outdoor attractions to keeping a restaurant running smoothly, Mohican Adventures and Trails End Restaurant depend on reliable electricity, which is essential to the experience they offer their guests.

MOHICAN ADVENTURES

What does being a cooperative member mean to your business?

To us, being a member of The Energy Cooperative means having a reliable, community-minded partner keeping our lights on. Because it is a member-owned, not-for-profit utility, we know their primary focus isn't satisfying distant corporate shareholders, it’s serving local families and businesses like ours. Running a massive campground means we consume a lot of power, especially during hot summer weekends when hundreds of RV air conditioners and cabin systems are running at once. We are a major commercial member and consumer. The Energy Cooperative provides the essential electrical infrastructure that powers our entire resort: our indoor swimming pool and hot tub, our high-volume shower houses, go-kart tracks, and the 30- and 50-amp pedestals at our RV sites. Our relationship is built on communication. We count on them to deliver steady power so we can offer our guests a seamless, comfortable outdoor vacation.

What is your experience as a cooperative member?

Our experience has been highly positive and reliable. In the outdoor hospitality industry, weather is our biggest unpredictable factor. When severe summer storms hit the Mohican Valley and bring down trees, power outages can quickly impact hundreds of vacationing families. The Energy Cooperative’s local outage response team has consistently been incredibly fast and communicative, helping us get our operations back online safely and minimizing disruptions for our campers and lodge guests. We sold our first canoe trip in 1961 and have been expanding our family-owned business ever since! Our campground offers full RV hookups, log cabin rentals, and 40+ acres of primitive and electric tent camping. Just across the street, enjoy river trips down the Mohican River in canoes, kayaks, rafts, or tubes. Our Fun Center offers an Aerial Adventure Park, Mini-Golf, and Go-Karts.

TRAILS END RESTAURANT

What does The Energy Cooperative mean for this business?

It means peace of mind for our operations. Running a restaurant is incredibly energy-intensive. We consume a massive amount of power just from powering our walk-in coolers and kitchen equipment. Being part of a member-owned cooperative means we have a utility partner focused on local reliability rather than corporate profits. We are a heavy commercial consumer. We rely on the cooperative to deliver consistent, uninterrupted power to our facility on State Route 3. A fluctuation in power doesn't just turn off the lights; it can ruin thousands of dollars of fresh ingredients in our refrigeration systems.

How does the cooperative support Trails End Restaurant?

Our experience has been highly reliable, especially when it matters most. Summer storms in the heavily wooded Mohican area frequently knock down trees and power lines. The Energy Cooperative has a fantastic track record of quick communication and rapid local response times, ensuring a kitchen outage doesn't force us to turn away hungry families on a busy weekend night. Trails End is a family-owned and operated restaurant. We opened in June of 2011 and have been enjoying the fun and excitement of working in a food service operation ever since! We offer a variety of pizzas, which are made from our secret in-house dough recipe. We also offer juicy burgers, healthy wraps, appetizers, salads, and more! Many enjoy taking advantage of our full bar. Come visit us for your next family dinner, night out with friends, or to watch the big game on one of our flat screen TVs!

The Energy Cooperative is proud to play a small part in the area's tourism and hospitality scene. Over the years, both these businesses have grown and changed. Through it all, they have depended on reliable energy services to meet their needs. Their shared experience underscores the importance of reliable power, especially during busy seasons and severe weather. Our cooperative prioritizes being responsive. We want to be easy to work with and are committed to helping members operate efficiently now and in the future.

ABOUT US

The Energy Cooperative is an electric, natural gas and propane cooperative serving members with more than 73,000 accounts in east central Ohio. The Energy Cooperative TIMES magazine is the cooperative's official publication. This magazine is a communication link between The Energy Cooperative and its members.