Ozark Electric's Board of Directors Announce 2025 Rate Increase

Each year, Ozark Electric Cooperative's Board of Directors and executive team evaluate finances and industry forecasts to determine the rate structure necessary to continue to deliver reliable power to the homes and businesses of our members. Ozark Electric implemented a rate increase in April 2024 - unfortunately, we were notified by both our power supplier (KAMO) and our generation co-op (Associated Electric) that due to increasing demand for energy and the higher costs associated with generating it, their costs for power would be increasing. Key drivers for their increase were increased peak load growth with higher reserve margin requirements to support the capital spending related to new generation and transmission projects, which is driving larger investments for reliability and increased capital costs. Investment in infrastructure improvements and upgrades to power generation facilities, and capital expenditures for new generation facilities, is passed through our power supplier (KAMO) onto us (our new KAMO rate increase takes effect in April). These investments are crucial to keep up with record demand for reliable electricity.

The cost of purchasing power is Ozark Electric's highest expenditure. Paired with rising material costs, a rate adjustment will be necessary again in 2025.

Several factors are driving cost increases that are out of Ozark Electric's control:

• The price for wholesale power is increasing again in 2025, in turn increasing the cost of power that we distribute to our members.
• Our cost for materials continues to increase year over year.
• Your cooperative continues to grow - our system has increased by 400 meters in the last year. OEC has 5,000 miles of line, 38,000 meters, and continues to see growth in membership.

We must continue to prioritize maintaining our system and investing in necessary infrastructure upgrades and planning for future electricity needs. Three necessary projects and upgrades are slated for Ozark Electric:

1. New substation to accommodate growth in the Springfield, Republic, and Battlefield areas.
2. Upgrades to two feeders at our Clever substation to accommodate growth in that area.
3. Table Rock Lake crossing to continue to provide reliable power to our Cape Fair members.

The stable cost of electricity that we have grown accustomed to over the last two decades is changing, and we must adapt and take the necessary steps to provide what our members expect and deserve from their co-op. Our Board of Directors carefully evaluated all factors outlined above and unanimously agreed on the following rate increase beginning with the April 2025 billing cycle: The kWh rate for residential service will increase from 8.9 cents to 10.6 cents. The residential rate for demand (kW) will remain the same at $3.75/kW. The facilities charge will remain the same.

RATE INCREASE COMMUNICATIONS

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