RURAL ELECTRIC COOPERATIVE, INC.
MINUTES OF THE 86th ANNUAL MEETING OF THE MEMBERS
October 2, 2025
and
October 4, 2025
The 86th Annual Meeting of the Members of Rural Electric Cooperative, Inc. was a hybrid meeting again. It started off with a drive-thru registration on Thursday, October 2, 2025, from 3:00 p.m. to 6:30 p.m. An in-person meeting was held in the REC Multi-Purpose Center, Lindsay, Oklahoma, Garvin County with registration from 8:00 to 10:00 a.m. and the business portion starting at 10:00 a.m. on Saturday, the 4th day of October 2025.
A video presentation titled “Today’s Electric Cooperative for Tomorrow” opened the meeting.
Welcome
Mr. Gary Jones, President of the Cooperative, welcomed the REC membership and guests to the 86th Annual Meeting and mentioned it was good to see the members in person.
Call to Order
President Jones, who presided over the meeting called the 86th Annual Meeting of the Membership to order.
Invocation
Vice-President Scott Christian gave the invocation.
Parade of Colors, National Anthem and Pledge of Allegiance
Mr. Christian introduced the Ball Smith Post 23 of the Lindsay American Legion, who presented the Parade of Colors.
Mr. Christian then led the membership in the Pledge of Allegiance with Zach Ray leading the singing of the National Anthem.
Introductions
Mr. Dusty Ricks, CEO of Rural Electric Cooperative, welcomed the group and expressed his appreciation to them for attending the meeting.
Mr. Ricks introduced REC’s Board of Trustees, Co-op Attorney and their spouses. He noted that their combined years of service to the co-op was over 172 years. He also thanked WFEC employees, Howie Jackson and Michael Meason for being in attendance and setting up a booth. Mr. Ricks also thanked our Youth Tour Ambassador, Juliana Chesnut for talking to our members about our Youth Tour Program and Ms. Nicki Fuller, OAEC’s General Manager.
Mr. Ricks introduced retired Trustee Charles Crawford, retired employees, Ed Bevers, Barbara Russell and Delmar Payne and current employees and thanked them for their dedication to the co-op and its members.
He introduced the Annual Meeting Committee members, including Nominating, Planning and Credential & Elections. He thanked them for their service to the co-operative.
Determination of Quorum
President Jones reported that based upon a report given by REC’s Secretary-Treasurer, Mr. Brent Bacon, certifying registration of 712 members was the official count and that a quorum was present for the conducting of business at the 2025 Annual Meeting of the Membership of Rural Electric Cooperative, Inc. A total of 5% (329.05 of REC’s 6,581 members) was required to be registered to constitute a quorum.
Notice of Proof of Publication and 2025 Minutes
It was acknowledged that the Annual Meeting Notice was published in five different area newspapers, as well as in REC’s monthly publication “Co-op Comments”, Facebook and REC’s website and mailed to each member. The Official Notice mailed to each member also included an acknowledgment that the 2025 Annual Meeting minutes are posted on the REC website and the Official Ballot to vote for candidates to be seated on the Board of Trustees for each district.
Motion to Dispense with the Reading of the Notice of Proof of Publications
President Jones presented the Reading of Notice and Proof of Publication to the members. Mr. Learnard Vile from Purcell made the motion that the membership dispense with the reading of the Notice and Proof of Publication. Mr. Mike Ethridge from Lindsay seconded the motion. With no further discussion, the motion was unanimously adopted.
Motion to Dispense with the Reading of the 2024 Minutes of the Annual Meeting of the Membership
Mr. Jones called for the reading of the minutes of the 2024 Annual Meeting of the Membership. Mr. Joe Terrell from Elmore City made the motion that the membership dispense with the reading of the minutes of the 2024 Annual Meeting. Mr. James Byrd from Rush Springs seconded the motion. With no further discussion, the motion was unanimously adopted.
President’s Report
President Gary Jones made his remarks to the membership.
Mr. Jones presented a report on miles of line and number of KWH sold in 2005 compared to 2024. He stated that our KWH sales, have more than doubled. All while only gaining 1 new employee in 4 years.
Mr. Jones updated the members on our mapping system and REC’S most recent updated hardcopy mapping book. President Jones stated, “We know members are out of power before most ever do”. Our mapping system shows every foot of line, every account and pole. All REC poles have a yellow tag attached to the pole. That tag number verifies what size of pole it is, what cross arm, bolts and braces and equipment they may need to bring to the jobsite. Being able to identify these is saving our employees a tremendous amount of time.
In 2010, the ice storm left REC with over 1,300 poles down, which meant the whole town was without power for numerous days. No power meant no supplies for our trucks and crews. Mr. Jones stated that in 2015 when REC’s new headquarters was built, we made sure to add a fueling station. Having this available at all hours of the day for our crews is allowing REC to be more efficient with our time and travel to get to the outage.
REC has a fully operational garage and mechanic shop with multiple bays to maintain REC’S trucks and equipment. Mr. Jones stated the 2010 storm cost REC one to two million dollars to get the materials needed. We now have a fully stocked warehouse at REC’s headquarters that we are able to pay a monthly invoice for the materials that have been used.
Mr. Jones stated that REC has not had a rate increase since 2018. Our Board is constantly studying ways to save our cooperative money. Although we have been able to maintain the same rate, Mr. Jones informed the members that there is a possibility that there could be an increase on the meter charge. While this has not been brought before the Board and approved, Mr. Jones wanted our members to be aware.
Mr. Jones concluded his remarks by thanking the crowd for attending the 86th Annual Meeting.
CEO’S Report
Mr. Jones presented CEO, Dusty Ricks, who presented his report to the members. He thanked everyone for attending the 86th Annual Meeting of the Membership. He stated that it is important that we fulfill the requirements of our bylaws and conduct a meeting annually.
Mr. Ricks stated that 2024 was a year marked by financial strength, operational excellence, and unwavering commitment to our members. The co-op is steadily growing in a sustainable way, extending service to more members while improving the system that serves you.
REC currently serves 6,581 member-owners and over 12,600 meters. Over the last five years our membership has grown by an average of 1.3%. Electricity sales are at a record high. In 2024 we delivered 623.5 million KWH of electricity. An average residential member uses 1,162 KWH per month for an average cost of $132.26.
Mr. Ricks stated the financial condition of REC remains strong. In 2024 our financial performance reflects the cooperative’s dedication to sound management and strategic planning. We maintained a strong revenue base while controlling costs and investing in infrastructure that supports reliable service.
REC’s financial ratios are reviewed by our lenders and auditors and remain two to four times higher than the minimum requirement. Mr. Ricks stated, “Equity is defined by what we own, versus what you owe”. REC’s equity as a percentage of assets is 58.23%, which is 3rd best in the state of Oklahoma.
In 2024 REC retired $1,105,203 in Capital Credits to members for 1993-1994. These allocations are based on each member’s energy usage and revenue class, ensuring fairness and transparency. This process is a cornerstone of our cooperative’s values, Mr. Ricks stated, “Returning value to those who serve”.
Mrs. Ricks stated in response to long-term financial obligations, including those stemming from extraordinary events, we took proactive steps to recognize and manage expenses. This approach strengthens our financial foundation and prepares us for future challenges, while maintaining rate stability. It is our responsibility to pass this co-op down to the next generation.
REC continues to manage our expenses by managing the cost of the purchase of goods and management of contact services that are provided to better serve you, our members. REC manages its controllable expenses at a rate of 20% less than other Oklahoma Cooperatives.
Our crews continued their diligent work in maintaining and upgrading our electric system. Hundreds of poles were replaced, and extensive miles of right-of-way were cleared. These efforts are essential to ensuring safe, reliable electricity for homes, farms and businesses throughout our service area. REC’s total utility plant is $109,632,045; 2024 utility plant growth was $4,844,081. Plant growth from 2020-2024 was $16,324,775
In 2024 REC crews changed out a total of 500 poles, constructed 37 miles of new construction and 29 miles of line conversion, converting single phase to three phase. ROW clearing totals in 2024 was 71 total miles cleared both in-house and contract labor.
Mr. Ricks stated in 2024 REC crews drove 538,014 miles and worked 117,121 hours. Since 2020-2024, REC employees have driven nearly 3 million miles and worked over 583,306 hours with only one OSHA reportable accident. That young man was back to work the following week.
During 2024, Mr. Ricks reported that REC paid $1,058,730.35 to the local schools located in the six counties located in our service area. Since 1947, REC has returned $21.7 million dollars to our schools. An additional $1,211,231.68 was paid through WFEC to schools in REC’s service area.
Mr. Ricks noted that REC shares a concern for our communities by participating in several civic, community, youth and school events to support our members. We also support our local volunteer fire departments with financial grants annually and many of you enjoy the trees we give away.
Mr. Ricks reminded the members that Operation Round-Up is a very worthwhile program that we would encourage everyone to participate in if you are not already involved. This program will round up your monthly bill to the next dollar and place that additional money into this fund. The Operation Round-Up Foundation money is used to help families with financial hardships. The most you could donate in a year is $11.88 and the least amount is 12 cents.
Mr. Ricks also told the members about the opportunity to participate on the state or national level through OEC (Oklahoma Electric Cooperatives PAC), or America’s Electric Cooperatives PAC. He encouraged the members to join and to contact the co-op to do so.
In closing, Mr. Ricks made mention that we at REC strive to live up to the Seven Cooperative Principles while providing affordable, dependable and reliable electric service to our members and you can be confident that your Board of Directors and the employees of YOUR co-op have your best interests and well-being in mind every day! The strength of Rural Electric Cooperative lies in its members. Mr. Ricks stated, “your trust, participation, and support empower us to deliver on our mission ever day, enhancing the quality of life. As we look ahead, we remain committed to innovation, reliability and community”. Thank you for being part of this journey.
Election Report
Mr. Ricks called on Ms. Lisa Whitman, Co-op Attorney, for presentation of the 2024 Credentials and Elections Committee report.
Ms. Whitman explained the voting procedures and introduced the Credentials and Elections Committee. She reported that Mr. James Byrd had been elected Chairperson and Ms. Markie Scruggs had been elected Recording Secretary for the committee.
Ms. Whitman then called on the Chairperson of the Credentials and Elections Committee to give his report on the Election of Trustees. Mr. Byrd stated that a total of 620 votes were cast. He then reported to the membership the result of the election as follows:
For Office 1, District 1 – Gary Jones 575 yes votes 33 no votes
For Office 1, District 2 – Terri Hays 578 yes votes 26 no votes
For Office 1, District 3 – Randy Griswold 578 yes votes 30 no votes
From these results, Chairperson James Byrd declared the following people were elected to the Board of Trustees of Rural Electric Cooperative, Inc. for a three-year term:
Office 1– District 1 – GARY JONES
Office 1– District 2 – TERRI HAYS
Office 1– District 3 – RANDY GRISWOLD
The Minutes of the Meeting of the 2025 Credentials and Elections Committee reflecting the results of the Trustee election are attached to these minutes.
Ms. Whitman expressed her appreciation to Mr. Byrd and the Credentials and Elections Committee for the time they committed to serving on this committee.
Unfinished Business
President Jones asked the membership if there was any unfinished business. It was determined there was none.
New Business
President Jones then asked the membership for any items of new business to be discussed.
Trustee, Johnny Harrell was recognized for comments. He informed the members about the value of FEMA and that FEMA has provided millions of dollars of assistance to REC following severe storms over the past several years. Johnny expressed concern that FEMA might be cut out of the Federal Government budget. The lack of FEMA assistance could be a significant financial burden placed on the back of rate payers if we lose this form of assistance to help us in times of need. He encouraged everyone to communicate with Congressional leaders the importance of keeping FEMA intact.
Adjournment of REC’s 86th Annual Meeting of the Membership
With there being no further business to come before the membership, President Jones declared REC’s 86th Annual Meeting of the Membership adjourned. The business meeting adjourned at 11:02 a.m.
Prize Drawings
Immediately following the adjournment of the meeting, prize drawings were held. Each registered member received $25 credit on their bill. The REC employees drew for three (3) grand prizes of $500 gift certificates for electricity. Seventy-five (75), $75 gift certificates for electricity, an electric cordless leave blower was donated by WFEC, and two (2) children’s bikes were given away.