2019 ANNUAL REPORT(PRELIMINARY)

1

It is my responsibility and honor to once again write you on behalf of the Southeast Colorado Power Association Board of Directors. This annual report is an important obligation to keep you informed of the past year’s highlights. We are a member-owned electric cooperative and being up to date is essential to positive engagement.

A year ago, we were hosted by the City of Lamar for our annual meeting where we enjoyed spending time with members throughout our service territory. A new Director joined our Board as Truman Wright was elected to represent District 1 spanning the eastern side of Baca County. Interestingly and proudly, he succeeded his father and grandfather in this role. Brad Buck was re-elected to Dis-trict 3 primarily rooted in Kiowa County but also parts of Cheyenne and Lincoln. Since that meeting, though, 10-year veteran Shad Sullivan resigned from District 7 and Clint Anderson accepted an ap-pointment to represent members in Crowley, Lincoln, El Paso and Pueblo counties.

Although officer roles remained status quo, there were some changes in additional Director assign-ments. Lawrence Brase was appointed to represent us on the board of Tri-State Generation & Trans-mission (our primary power supplier), and I began serving at the Colorado Rural Electric Association (our statewide industry group). Our CEO served on the Western United Electric Supply (our principal materials supplier) board. Most notably, he also served the entire year as President – Manager’s As-sociation, representing all of his Colorado peers on statewide electric cooperative issues.

We were pleased to have sustained a 4th consecutive year without a rate increase! The year, though, did have some challenges. First and foremost, Mother Nature provided our agricultural communities a welcomed wet year. Inversely, it meant less irrigation pumping, which is a notable portion of total revenues, was down significantly. She also hit us with some storms that increased our distribution system repair costs. There is no insurance for such occurrences, so it is a direct expense whenever it happens. Due to how wholesale power supply costs are calculated during our normal peak months, that expense was greater than expected. Our industrial load did grow, however, and helped us es-sentially maintain topline revenue.

We continued our goal of retiring capital credits, which meant committing all of 1963. We did adjust our cycle to a winter approval followed by a spring payout. In fact, by the time you read this you will have likely received or soon be receiving any applicable funds. We even have 1964 waiting in the event we could potentially accelerate payments in 2020 or simply keep our current pace. Our broadband subsidiary continued with another solid growth year. However, the depreciation costs of a technology-driven business are burdensome. Depreciation, a non-cash expense, builds upon it-self as our customer count rises and we have a continuous 3-5-year cycle of equipment replacement at all levels. This makes it harder to attain positive net income which, although still a goal in order to retain equity, is not as important as positive cash flow. In that respect, we had a much stronger year and built a more solid foundation. The Board often struggles with balancing for-profit motives with a core strategy of offering high-speed internet service to less dense, more costly rural areas. Both are important in addition to the many great and sustainable jobs we have proudly created. Despite any obstacles, we were able to maintain a positive margin overall albeit it slight. This should not be a significant concern as we are a nonprofit cooperative so maximizing margins is not a primary goal. We do, though, have a fiduciary responsibility to keep our businesses financially stable, which I’m happy to say they both are right now. As always, we are proud to have contributed almost $884K in property taxes supporting communities, $8.6M in payroll for our employee-residents and $28K in charitable contributions to local organizations.

We will continue to push both companies forward in the ever-changing and unprecedented land-scapes we face. Safe, reliable and affordable power will always be the core mission along with getting broadband to places no other provider(s) will to ensure our communities have the core infrastruc-ture to thrive. Lastly, I do wish to extend our sincerest gratitude to the employees who work hard and smart each and every day – they truly are a great team who will continue to make us proud as member-owners.

Kevin KarneyBoard President

FROM THE BOARD PRESIDENT

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It is my pleasure to highlight another year in the history of our cooperative and subsidiary. It is certainly a different feeling to be reflecting on a previous year in the context of normal terms when the current year, our annual meeting and this report are happening under a very atypical backdrop. Although the international pandemic did not affect last year’s results, I imagine the aftermath will continue to have some lingering impacts on our annual report for several years to come.

That said, 2019 did have some other challenges as almost every year does. However, our Directors, management team and staff were very engaged in effectively addressing them. Both our CFO and CLO completed their first calendar year and, much to our delight, our CAO departed to become the CEO of another electric cooperative in Montana. Overall staffing levels at SECPA remained constant while SECOM did trim its workforce due to improvements in workflow and technology. There were a number of promotions or job changes along with the celebration of many employees increasing their longevity – a notable number in terms of decades.

Southeast Colorado PowerWhen some rate classes are down, you hope others are up, which was the case allowing our year-over-year revenue to essentially remain flat. However, you may recall the previous year represented notable growth, so we ultimately maintained that level over years prior. Our operating margins were down due to several factors. Power costs did rise due to a lower load factor during irrigation season, storms required distribution system replacement and overall maintenance was up as we continu-ously try to keep the most extended, least dense physical plant in Colorado operational.

Infrastructure investment was up almost 4% totaling $115 million in utility plant. Yet another year saw the construction of a new substation along with 26 miles of new transmission line. Both average line loss and average outage time per member were down again.

Subsidiary cash inputs remained constant while it continued to remain focused on both growth and net income. Net margins were impacted by aspects described in the next section but were still positive even if just slightly. We did cash flow positively and, even better, did not initiate any new long-term debt as had been previously planned and a normal historical occurrence. Overall and a noteworthy reminder, we are not-for-profit and having large, if any, net margins is not an objective that supersedes the core mission of safe, reliable and affordable service.

Most importantly, we ended the year budgeted to offer a 5th consecutive year without a rate in-crease! From the records we’ve researched, this is one of, if not, the longest stretches in our history. Although I believe this can’t be sustained indefinitely, it will always be our goal to sensibly stretch it as far as possible.

SECOMOur broadband subsidiary had mixed results although anchored by some positive undertones. The first half of the year was hit hard due to a necessary and costly system upgrade that kept downward pressure on net income. Sales continued to be solid with a 6% growth realized and peak bandwidth demand continued to rise. It is clear that consumers continue to seek us out as their preferred broadband service provider, which bodes well of our team top-to-bottom, and demonstrates that increasingly high-speed access is an ever-important part of our communities. Total assets grew slightly at 1% for a total of $25M.

However, growth in our total customer base couples with the type of technology we deploy has resulted in a stacking of depreciation which, although is a non-cash expense, still creates a notable pressure on net income. We have been implementing numerous steps to address this issue and have others pending. The second half of the year started a positive cash flow trend that has been sus-tained since. This is primarily due to leveraging new operational efficiencies. Although net margins were down year-over-year, the work completed last year has set an extremely solid foundation for the upcoming year with even more positive results expected to follow.

Lastly, it continues to be such a pleasure to not only be a member of such a great organization, but also to work on its behalf daily with such a great group of dedicated employees. None of us know what the current year will ultimately look like but, hopefully, the way we faced the past year demon-strates our resolve to always counter any challenges with positive results.

Jack JohnstonChief Executive Officer

FROM THE CEO

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2019 MOMENTS

4

MANAGEMENT STAFF

Jack JohnstonChief Executive Officer

HallSECPA Chief Operations

Officer

Kevin BrandonSECPA Chief Members

Service Officer

Angela BamberChief Human Resources

Officer

Joe MichalewiczChief Financial Officer

Corlin PrattChief Legal Officer

Jon SaundersSECOM Chief Business Development Officer

Rob ThayerSECOM Chief Marketing

Officer

Scott MonarcoSECOM Chief Operations

Officer

Debbie HowardExecutive Assistant

5

Truman WrightDistrict 1

Lawrence BraseDistrict 2

Secretary/Treasurer

Brad BuckDistrict 3

Randy PhillipsDistrict 4

Kevin KarneyDistrict 5President

Bill GrasmickDistrict 6

Vice President

Clint AndersonDistrict 7

BOARD OF DIRECTORS

6

5-10 YEARSRaymond AguilarJerid BrunaJustin BrunaRenee GrigatPhil HindsKyle MaierJace NoeGarrett Wertz

10-20 YEARSClint ArbuthnotBruce BarnhartKevin BrandonCasey BriscoeTroy EberhardtMark HallKimberly HarrisPaige Horn Debbie HowardPegi Koehn

10-20 YEARSHeath PiperJoe Self Mike TrumbleKara HinkhouseNicole Hasty

20-30 YEARSDave MalottKaren MengesDebbie RomeroConnie Suto 30 YEARS & OVERVicki Meis

0-5 YearsScottie MonarcoStephanie MullettMaria NavaRichard NeidermyerMike Nelson Zach ParrishZane PattersonElijah Quinn-RidgwellAaron RamirezJoseph RoybalJohnathon ShafferBen Schulz David SetliffTaylor SpencerDebbie StoreyRob ThayerFrankie ValenciaPreston VanCampenBecca VigilBradley VowlesZach WhitehillPam Walters-Winston Teri WisemanCody Zimmerman

5-10 YEARSWayne AbbottWade HackleyEddie JaramilloMichelle JonesRJ MaldonadoTJ OliverMatt RouleauJohn Santistevan

10-20 YEARSErin CollinsScott HermanJulie GeistScott MonarcoJon SaundersTerry West

0-5 YearsMichael AndrewsAlexis AragonMichael BackesJason BaylorJennifer BleaKelly Block Bruce ButlerMichael ClaramuntCandace DavisMichael DavisCynthia FazioConnie FernandezAaron GarrisonDavid GoldsberryRay GonzalesJay HardyCharlie Hayden JrSandie HeadrickHeather MartinezJake MayoMatt MessecMatt MillerRich Modica

SECPA YEARS OF SERVICE 2019

SECOM YEARS OF SERVICE 2019

0-5 YEARS Camron BaileyAngela BamberJacob BarnesJames ClineKeenan DavisRoman HornJohn JacksonJack JohnstonAnthony LobatoJason LuciusGerman MedinaJoseph MichalewiczJennifer PhillipsTommy PinerCorlin PrattJay SmithMarcus StegmanTaylor WallaceJennifer YantAlex Vasquez

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FACT SUMMARY

Southeast Colorado Power Association is a rural electric distribution cooperative providing electricity to approximately 10,496 meters in rural southeast Colorado. Additionally, SECOM, a wholly owned subsidiary of SECPA, provides high-speed telecommunication circuits, wireless internet and voice services.

YEAR ORGANIZED:

POWER SUPPLIER:

TERRITORY:

WORK FORCE:

2019 ASSETS:

DISTRIBUTION:

TRANSMISSION:

FIBER OPTIC:

2019 PROPERTYTAXES:

2019 ELECTRICREVENUE:

2019 TELECOMREVENUE

2019 kWh SOLD:

2019 NET MARGIN & PATRONAGE

TYPES OF SERVICE:

1937

Tri-State Generation & Transmission, Inc. Denver, Colorado.

Southeast Colorado Power's 13,000 square-mile service territory includes all or portions of Baca, Bent, Cheyenne, Crowley, Kiowa, Las Animas, Lincoln, Otero, El Paso, Prowers and Pueblo counties.

49 full-time and 2 part-time employees.

Southeast Colorado Power Association's total assets as of December 31, 2018 are $95,675,208

5,438 miles of distribution line.

304 miles of transmission line.

1,723 miles of fiber optic cable.

$613,025

$30,087,928

$12,059,700

203,299,505 kWh

$(51,757)

Farms, ranches, irrigation, residential, oil and gas pumping.

8

Cord ProctorSwink High School

Parents: Dwight & Julie Proctor

Molly TateFowler High School

Parents: Kurt & Kelli Tate

Emmalie ByrneK-12 Astravo Online Academy

Parent: Lisa Byrne

Kaysa KurtzRocky Ford High School

Parents: Ryan Kurtz & Hillary Merwin

2019 WASHINGTON D.C. YOUTH TOUR WINNERS

2019 YOUTH LEADERSHIP CAMP WINNER

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BASIN ELECTRIC $1,000 ScholarshipBenisa Ellis

Senior Springfield High SchoolParents – Ben & Lisa Ellis

TRI-STATE $1,000 ScholarshipKaycee Ellenberger

Senior Eads High SchoolParents – Eric & Shannon Ellenberger

2020 SCHOLARSHIP WINNERS

SECPA $1,000 ScholarshipLauren Brown

Senior Eads High SchoolParents – Jimmy & Amanda Brown

SECPA $1,000 ScholarshipCameron Frantz

Senior Roccky Ford High SchoolParents – Alan & Peggy Frantz

SECPA $1,000 ScholarshipAlex Higbee

Senior Lamar High SchoolParents – Donald & Angela Higbee

SECPA $1,000 ScholarshipKaitlyn Roesch

Senior McClave High SchoolParents – Kerry & Becky Roesch

SECPA $1,000 ScholarshipAlison Wilson

Senior Pritchett High SchoolParents – Max & Vanessa Wilson

BASIN ELECTRIC $1,000 ScholarshipHayden Mayo

Senior La Junta High SchoolParents – Jason & Kristine Mayo

1011

SECO

M &

SECP

A EM

PLO

YEES

12

Com

parative Statistics2019

2018C

hangeA

ctive Mem

ber Accounts Served

10,496

10,458

38

Miles of Line

5,742

5,729

13

Mem

ber Accounts per M

ile of Line1.83

1.83

(0.00)

Total kW

h Sold203,299,505

208,909,602

(5,610,097)

R

evenues27,328,349

$ 29,532,916

$ (2,204,567.00)

$ A

verage Selling Price per kWh Sold

0.1480$

0.1438$

0.0042$

Power C

ost Per kWh Sold

0.0842$

0.0839$

0.0003$

Operating C

ost Per kWh Sold

0.0634$

0.0575$

0.0059$

165,000,000

170,000,000

175,000,000

180,000,000

185,000,000

190,000,000

195,000,000

200,000,000

205,000,000

210,000,000

215,000,000

2015

2016

2017

2018

2019

kWh Sales

10,100

10,150

10,200

10,250

10,300

10,350

10,400

10,450

10,500

10,550

2015

2016

2017

2018

2019

Customers

Served

$-

$0.0200

$0.0400

$0.0600

$0.0800

$0.1000

$0.1200

$0.1400

$0.1600

2015

2016

2017

2018

2019

Power / Oper Costs Per

kWh Sold

Total Operating Costs Per kW

h

Power Cost Per kW

h Sold

13

Balance Sheet --------------------------------------------------------------------------------- (unaudited)

2019 2018 2017 2016 2015ASSETSElectric Plant in Service 112,408,825.00$ 106,980,388.00$ 105,811,203.00$ 98,989,511.00$ 94,367,998.00$ Less Depreciation 52,974,780.00$ 50,598,135.00$ 48,210,768.00$ 46,098,316.00$ 44,298,646.00$ Net Utility Plant 62,058,212.00$ 60,406,901.00$ 57,600,435.00$ 52,891,195.00$ 50,069,352.00$

Investment in Subsidiary Companies 9,227,511.00$ 10,580,146.00$ 9,511,703.00$ 13,300,995.00$ 11,300,995.00$ Invest. in Assoc. Organizations - Pat. Capital 18,150,376.00$ 17,926,747.00$ 17,858,406.00$ 17,446,575.00$ 17,273,998.00$ Invest. in Assoc. Organizations - Other 444,946.00$ 474,946.00$ 511,536.00$ 1,234,844.00$ 959,852.00$ Other Investments 6,971.00$ 6,787.00$ 6,747.00$ 6,377.00$ 6,461.00$ Special Funds 1,433.00$ 1,017.00$ 1,417.00$ 1,416.00$ 9,177.00$ Cash - General Funds 662,787.00$ 1,787,708.00$ 730,581.00$ 935,016.00$ 535,172.00$ Cash - Construction Funds 100.00$ 100.00$ 100.00$ 100.00$ 100.00$ Special Deposit 241.00$ 241.00$ 241.00$ 241.00$ 241.00$ Temporary Investments 58,395.00$ 191,296.00$ 570,909.00$ 2,034,666.00$ 1,906,667.00$ Notes Receivable - Net -$ -$ -$ -$ Accounts Receivable - Net 3,051,919.00$ 2,311,775.00$ 2,318,730.00$ 2,301,471.00$ 2,073,935.00$ Materials & Supplies - Electric 1,386,564.00$ 1,248,029.00$ 1,018,052.00$ 1,115,541.00$ 1,042,599.00$ Prepayments 70,017.00$ 70,220.00$ 32,198.00$ 44,609.00$ 39,908.00$ Other Current & Accrued Assets 69.00$ 1,928.00$ 668.00$ 750.00$ 371.00$ Deferred Debits 555,667.00$ 744,665.00$ 656,164.00$ 973,372.00$ 1,126,495.00$

TOTAL ASSETS 95,675,208.00$ 95,752,506.00$ 90,817,887.00$ 92,287,168.00$ 86,345,323.00$

LIABILITIES AND OTHER CREDITSMemberships -$ -$ -$ -$ -$ Patronage Capital 54,123,249.00$ 53,293,433.00$ 53,161,450.00$ 50,458,769.00$ 47,156,182.00$ Operating Margins 731,965.00$ 1,110,076.00$ 1,062,311.00$ 2,418,011.00$ 2,620,387.00$ Non-Operating Margins (783,722.00)$ (227,431.00)$ (877,032.00)$ 411,929.00$ 682,200.00$ Other Margins & Equities 4,823.00$ 4,823.00$ 4,823.00$ 4,823.00$ 4,823.00$ Total Long-Term Debt 34,581,167.00$ 36,529,035.00$ 33,616,276.00$ 35,699,266.00$ 32,508,275.00$ Accumulated Operating Provisions -$ -$ -$ -$ -$ Notes Payable 2,902,087.00$ -$ -$ -$ -$ Accounts Payable 2,148,882.00$ 2,188,934.00$ 2,388,381.00$ 1,877,836.00$ 1,664,847.00$ Consumer Deposits 433,412.00$ 477,272.00$ 471,923.00$ 369,015.00$ 224,796.00$ Current Maturities Long-Term Debt 591,649.00$ 1,226,748.00$ Other Current & Accrued Liab. 814,196.00$ 756,831.00$ 729,040.00$ 716,375.00$ 702,625.00$ Deferred Credits 127,500.00$ 392,785.00$ 260,715.00$ 331,144.00$ 781,188.00$

TOTAL LIABILITIES AND OTHER CREDITS 95,675,208.00$ 95,752,506.00$ 90,817,887.00$ 92,287,168.00$ 86,345,323.00$

BALANCE SHEET

14

INCOME STATEMENTIncome Statement ---------------------------------------------------------------------------- (unaudited)

OPERATING REVENUES 2019 2018 2017 2016 2015Residential 11,524,129.00$ 11,482,535.00$ 11,013,712.00$ 10,848,614.00$ 10,570,973.00$ Irrigation 7,946,175.00$ 8,840,156.00$ 7,280,594.00$ 8,299,249.00$ 8,658,907.00$ Small Commercial 6,099,803.00$ 6,192,682.00$ 5,964,764.00$ 5,600,570.00$ 5,628,726.00$ Large Commercial 3,570,990.00$ 2,658,172.00$ 2,231,191.00$ 2,129,942.00$ 1,711,158.00$ Street Lighting 73,785.00$ 73,659.00$ 73,404.00$ 73,308.00$ 73,306.00$ Sale for Resale 289,640.00$ 285,712.00$ 273,846.00$ 232,438.00$ 286,530.00$ TOTAL ELECTRIC SALES 29,504,522.00$ 29,532,916.00$ 26,837,511.00$ 27,184,121.00$ 26,929,600.00$

Other Electric Revenue 583,406.00$ 506,198.00$ 490,838.00$ 336,988.00$ 320,454.00$ TOTAL REVENUES 30,087,928.00$ 30,039,114.00$ 27,328,349.00$ 27,521,109.00$ 27,250,054.00$

EXPENDITURESPurchased Power 17,116,755.00$ 17,524,782.00$ 15,650,528.00$ 15,441,257.00$ 15,476,094.00$ Transmission Expense 159,852.00$ 221,932.00$ 197,453.00$ 226,679.00$ 145,771.00$ Distribution-Operations 2,253,755.00$ 1,665,086.00$ 1,857,992.00$ 947,350.00$ 995,044.00$ Distribution-Maintenance 2,807,763.00$ 2,464,097.00$ 2,614,533.00$ 2,208,508.00$ 2,298,959.00$ Consumer Accounts Expense 813,885.00$ 859,784.00$ 717,800.00$ 686,419.00$ 690,506.00$ Consumer Serv. & Info. Expense 58,247.00$ 87,297.00$ 90,566.00$ 68,611.00$ 42,937.00$ Sales Expense 16,404.00$ 30,948.00$ 21,956.00$ 24,018.00$ 41,904.00$ Administrative & General Expense 1,730,627.00$ 1,728,260.00$ 1,233,395.00$ 1,317,856.00$ 1,275,640.00$ Depreciation & Amortization 3,453,952.00$ 3,325,173.00$ 3,135,794.00$ 3,015,307.00$ 2,913,661.00$ TOTAL OPERATING EXPENSE 28,411,240.00$ 27,907,359.00$ 25,520,017.00$ 23,936,005.00$ 23,880,516.00$

Interest on Long Term Debt 1,562,101.00$ 1,631,167.00$ 1,605,526.00$ 1,661,727.00$ 1,584,364.00$ Interest Expense - Other 49,634.00$ 14,780.00$ 1,806.00$ 1,759.00$ 1,253.00$ Other Deductions (10,070.00)$ (17,061.00)$ (32,883.00)$ (44,330.00)$ (41,471.00)$ TOTAL COST OF ELECTRIC SERVICE 30,012,905.00$ 29,536,245.00$ 27,094,466.00$ 25,555,161.00$ 25,424,662.00$

Operating Margins 75,023.00$ 502,869.00$ 233,883.00$ 1,965,948.00$ 1,825,392.00$ Non-Operating Margins - Interest 127,965.00$ 219,789.00$ 264,881.00$ 236,349.00$ 207,268.00$ Income (Loss) from Equity Investments (1,168,691.00)$ (611,552.00)$ (1,652,892.00)$ (136,400.00)$ 139,191.00$ Non-Operating Margins - Other (24,237.00)$ (1,662.00)$ 340,938.00$ 44,917.00$ 111,047.00$ G & T Capital Credits 608,875.00$ 591,569.00$ 807,478.00$ 441,969.00$ 794,995.00$ Other Capital Credits & Patronage Div. 330,308.00$ 166,994.00$ 190,991.00$ 149,897.00$ 224,694.00$ Extraordinary Items (1,000.00)$ (1,000.00)$ -$ -$ -$ NET MARGINS & PATRONAGE (51,757.00)$ 867,007.00$ 185,279.00$ 2,702,680.00$ 3,302,587.00$

15

- 5

10

15

20

25

30

20152016

20172018

2019

Dollars in Millions

Historical Performance

Total RevenuesTotal Cost of Electric Service

Net Margins &

Patronage

16

0 20 40 60 80

100

120

20152016

20172018

2019

Dollars in Millions

Growth in Plant

Electric Plant in ServiceDepreciation

Net Utility Plant

17

Purchased Power Costs57%

Transmission/Distribution17%

Customer Service/Sales3%

Administrative & General6%

Depreciation Expense12%

Interest5%

2019 Cost of Power Breakout

Residential38%

Irrigation27%

Small Commercial20%

Large Commercial12%

Street Lighting0%

Sale for Resale1%

Other Electric Revenue2%

2019 Revenue Sources

18

MINUTES OF ANNUAL MEETING of SOUTHEAST COLORADO POWER ASSOCIATION (SECPA) SHAREHOLDERS

April 11, 2019

The Annual Meeting of SECPA was held on Thursday, April 11, 2019, at Lamar Community College, Wellness Center, Lamar, Colorado, with registration beginning at 5:00 p.m. Bill Bunting, a cowboy poet, entertained the group with a variety of country poems. Board President Kevin Karney called the meeting to order at 6:00 p.m. Director Lawrence Brase gave the invocation. Following the invocation, the Pledge of Allegiance was recited by attendees. Tom Grasmick, Prowers County Commissioner, welcomed everyone to Lamar and Prowers County. He thanked SECPA for their contributions to Prowers County. Grasmick recognized SECPA employees for their dedication to providing power to area communities. Karney, introduced Board Directors and their spouses. Karney appointed Credentials & Tellers Committee: Bill Woelk, Wanda Lessenden, and Dave Harmon. Karney called for the collection of ballots. Following collection of ballots, he excused the Credentials Committee. Chief Executive Officer (CEO) Jack Johnston thanked several colleagues and industry peers in attendance: Kent Singer, CREA Executive Director; Alan Michalewicz, CEO White River Electric; and Joel Bladow, Senior VP Tri-State G & T. Johnston then introduced the SECPA Leadership Team. CEO Johnston invited everyone to enjoy the meal prepared & served by Ark Valley District 7 FFA. Secretary-Treasurer Brase read the Official Notice of SECPA Annual Meeting. Brase made a determination of quorum. (Quorum was certified according to Article III, Section 4 of the SECPA by-laws.) Motion was made, seconded and carried that there was a quorum present to transact business. Brase then asked for a motion to dispense with the reading of the minutes and to approve the 2018 Annual Meeting Minutes. He explained to members where the minutes were located in the Annual Meeting booklets. A motion was made, seconded, and carried to dispense with reading of minutes and approve the minutes. CEO Johnston presented the Year-In-Review via a Power Point. Another year with no rate increase (four years in a row)!!! Johnston showed a video of the Guatemala electrification project, featuring SECPA Line Superintendent Kris Barbee; a video entitled, “Renewable Randy” focusing on SECPA’s service territory and area industries; and a video of the Tri-State Twin Buttes Renewable energy project in Prowers County, providing power to farms, communities, and cities in the SECPA service territory. Net margins continue to be strong. Legal disclosure: one civil litigation case pending - Bennett vs. SECPA in Crowley County District Court. Director Bill Grasmick introduced Dylan Renquist and Alex Higbee, winners of the 2018 Youth Leadership Camp. Renquist and Higbee shared a power point describing their experiences at camp. -1806-

19

Grasmick then introduced Jeffrey Henderson and Caitlyn Lancaster, the 2018 Washington D.C. Youth Tour winners. Both presented highlights of their trip via power point. They both remarked that the trip had changed their lives. Chief Member Services Officer, Kevin Brandon, announced the 2019 Scholarship recipients. Brandon noted that as a member of the selection committee, there were many qualified applicants. Karney and Johnston presented scholarship certificates to the following: *Tri-State $1,000 Scholarships: Kaitlyn Smith (Fowler High School.) *SECPA $1,000 Scholarships: Chelsea Alton (Walsh High School), Jacob Wright (Walsh High School) and Jeffrey Henderson (Lamar High School.) *Basin $1,000 Scholarship: Levi Collins (Swink High School.) Karney introduced Bill Wright expressing appreciation for Wright’s general wisdom and first-hand knowledge as a Board Director. Wright is known for his brief, insightful comments and wit. Wright was honored with a plaque recognizing his 27 years of service on the SECPA Board. He thanked members for having faith to elect him over the years. Wright commented, “One of the reasons he believes SECPA has done so well is that even though Directors may not understand electricity, they are businessmen.” Credentials & Tellers Committee report: 85 members present; 579 mail-in ballots; and 9 in-person ballots for a grand total of 588 ballots cast. Total membership as of April 11, 2019, was 5,256. Motion was made and seconded to approve the Certificate of Credentials Committee. Motion carried. Committee Chair, Wanda Lessenden, congratulated Truman Wright as the new Board Director District 1 and Brad Buck, incumbent District 3. President Karney asked if there was any old or new business anyone wanted to bring forth. Brandon announced that all prize drawings had been consolidated into the final agenda item: 2 - $50 gift cards donated by Western United Electric 4 - $50 cash prizes 3 - $100 cash prizes 1 - $500 cash prize Grand prize - TV donated by Tri-State Motion was made, seconded, and carried, to adjourn the meeting at 8:40 p.m.

___________________________________ _____________________________________ President Secretary

-1807-