2025 Annual Report

Powering Possibility: 2025 Annual Report & Meeting Notice

Notice of the Annual Meeting to the Members of Yellowstone Valley Electric Cooperative (YVEC)

The Annual Meeting of the Members of the Yellowstone Valley Electric Cooperative, Inc. will be held in the Pavilion at MetraPark in the City of Billings, in Yellowstone County, Montana, beginning at 10 a.m. on Tuesday, the 17th of March, 2026, to consider and take action upon the following matters:

Report on the number of members present in person in order to determine the existence of a quorum;
Reading the notice of the meeting and proof of the due publication or mailing thereof;
Reading of unapproved minutes of the previous meeting of the members and the taking of necessary action thereon;
Presentation and consideration of reports of officers, trustees, and committees;
Election of 2 board members – 1 from each district below:
1. District 2 – North and South of Ballantine and the towns of Ballantine and Worden.
2. District 5 – West of Billings and Lockwood
Unfinished business;
New business;

Dated at Huntley, Montana, This 2nd Day of March 2026 • Yellowstone Valley Electric Cooperative, Inc.

Notice to Businesses, Organizations & Corporations

Dear Member:

Please be advised that we cordially solicit your organization’s representative attendance at the Annual Meeting of the Yellowstone Valley Electric Cooperative, Inc. on the 17th day of March 2026. It is necessary that a delegate be designated by your organization as a voting representative. This written authorization must be received in our Cooperative’s office by March 16th, 2026, or be delivered to our receptionist during registration at the Annual Meeting, and must be signed by the proper officer of your organization, designating that person as your delegate.

Scott Hofferber, Secretary/Treasurer

President's Report 2025

I am pleased to announce that our Annual Membership Meeting will once again be held at MetraPark. This important gathering provides our members with the opportunity to engage directly with the Board of Trustees and management, participate in cooperative business, and vote in the election of Trustees. Active member involvement is a defining principle of the cooperative model and continues to distinguish cooperatives within our industry.

YVEC experienced steady growth throughout 2025, adding nearly 400 new residential services along with continued increases in small commercial loads. This growth requires constant attention and adaptability from both management and staff as we work to stay ahead of change. Purchasing more than $20 million in power annually while managing rising costs presents ongoing challenges. Despite these pressures, the cooperative remains focused on planning for future growth while maintaining competitive rates. This is a true testament to the operational efficiency and fiscal responsibility of YVEC.

Several significant storm events in 2025 created unique challenges for the cooperative. Storms in June, August, and December caused extensive damage to equipment and resulted in downed transmission and distribution lines across multiple areas of our service territory. YVEC employees worked collaboratively and tirelessly to restore power as quickly and safely as possible. We extend our sincere appreciation to all employees for their extraordinary effort and dedication during these events.

Looking ahead, several major construction projects are scheduled for completion in 2026, including the Pope Road Substation and the 7 Mile Flat Substation. These investments are critical to supporting system reliability and accommodating continued growth. In addition, multiple small commercial projects are expected to come online during the year.

The passage of House Bill 490 has helped mitigate some cooperative concerns related to wildfire liability. YVEC has fulfilled the requirement to develop a wildfire mitigation plan and remains proactive in addressing issues that help prevent fires and minimize impacts should they occur. Electric cooperatives provide approximately 40% of the power in our state, and our state association and congressional delegation remain actively engaged in advocating for policies that support reliable, affordable electricity. Current efforts are focused on reducing regulatory burdens, lowering energy costs, and increasing electric generation.

On behalf of the Board of Trustees, thank you for the opportunity to serve the membership of YVEC. I encourage you to attend our Annual Membership Meeting on March 17 at 10 a.m. at the MetraPark Pavilion. We look forward to seeing you there and to sharing lunch together following the meeting.

Larry Kaufman, President

YVEC at a Glance

Year Organized: 1937
Territory: 10,000 square miles service territory, including 6 counties
Total Utility Plant: $128,619,926
Electricity Purchased 2025: 329,328,677 kilowatt hours
Wholesale Power Costs: $23,523,430 or .071428/kwh
2025 Average Monthly Bill: Residential: 1,097 kWh; Average Bill: $155.19
2025 Maximum System Demand: 80.22 Megawatts - Aug 2025
Transmission System: 142.717 miles of high voltage transmission lines and 2 substations
Distribution System: 2,690.402 miles of distribution lines
Poles Replaced in 2025: 271
New Services Added: 389
2025 Property Taxes: $1,652,753
Total Taxes: $1,690,186
2025 Revenue: $44,040,633
Total Long-Term Debt: $56,510,591

Comparative Statement of Revenue & Expenses

Operating Revenue and Patronage Revenue	2025 Amount	2025 Percentage	2024 Amount	2024 Percentage
Electric Energy Sales	$43,583,785	98.96%	$41,291,559	99.39%
Other Electric Revenue	456,848	1.04%	$421,014	0.61%
Total Operating Revenue	$44,040,633	100%	$41,712,573	100%

Operating Expenses	2025 Amount	2025 Percentage	2024 Amount	2024 Percentage
Cost of Power	$23,523,430	53.41%	$22,103,657	52.99%
Transmission & Distribution Expense	$2,368,415	5.38%	$2,646,922	6.35%
Operations Expense	$5,504,579	12.50%	$5,317,759	12.75%
Consumer Accounts	$692,262	1.57%	$818,432	1.96%
Sales Expense	$897,651	2.04%	$944,499	2.26%
Administrative and General Expense	$3,410,033	7.74%	$3,315,161	7.95%
Depreciation	$3,855,442	8.75%	$3,692,097	8.85%
*Taxes	$778	0.00%	$2,041	0.00%
Interest	$2,741,358	6.22%	$1,905,198	6.30%
Total Operating Expense and Interest	$42,993,949	97.62%	$2,629,090	99.42%

Margins	2025 Amount	2025 Percentage	2024 Amount	2024 Percentage
Net Operating Margins	$1,046,684	2.38%	$242,914	0.58%
Net Non-Operating Margins	$235,544	0.53%	$156,781	0.38%
Total Patronage Capital	$1,282,227	2.91%	$399,695	0.96%
Generation and Transmission Capital Credits	$2,251,075	5.11%	$2,639,873	6.33%
Net Margins for Period	$3,533,302	8.02%	$3,039,568	7.29%

*Due to accounting changes recommended by RUS, $ of payroll and $1,465,023 of property taxes are no longer a line item, but are spread into operations, maintenance, and general administrative expense accounts.

Utility Plant Growth

Comparative Statistics

Year	Connected Meters	Miles of Line	Gross Revenue
1937	17	-	-
1950	2,087	841	216,467
1960	2,909	1,170	446,454
1970	3,861	1,419	694,217
1980	7,795	1,821	2,910,005
1985	9,698	1,967	6,188,409
1990	9,848	2,010	7,549,105
1995	11,316	2,086	9,219,327
2000	13,027	2,228	12,207,521
2005	15,319	2,378	15,720,947
2010	16,992	2,499	27,391,608
2011	17,148	2,508	30,027,621
2012	17,494	2,523	30,600,731
2013	18,045	2,537	31,820,618
2014	18,467	2,557	32,928,754
2015	18,857	2,576	32,620,972
2016	19,274	2,594	33,138,830
2017	19,703	2,608	34,816,717
2018	20,158	2,625	33,348,934
2019	20,588	2,647	35,578,959
2020	21,778	2,603	36,062,960
2021	21,859	2,633	37,274,462
2022	22,409	2,656	39,175,617
2023	22,712	2,678	39,549,604
2024	23,296	2,689	41,712,573
2025	23,683	2,705	44,040,633

Balance Sheet

Assets
Utility Plant
Electric Plant in Service	125,459,302
Construction Work in Progress	3,160,623
Total Utility Plant	128,619,926
Less Accumulated Provisions for Depreciation	(50,250,260)
Net Utility Plant	78,369,666
Other Property and Investment
Non-Utility Property	126,772
Investments in Associated Organizations	14,329,511
Total Other Property & Investments	14,456,283
Current and Accrued Assets
Cash - General	339,799
Cash - RUS Loan Fund	0
Cash - Operation Roundup	7,465
Temporary Investments	2,403,960
Accounts Receivable - Sales of Energy	2,985,669
Accounts Receivable - Other	122,686
Materials and Supplies	1,518,466
Prepaid Benefits	128,496
Total Current and Accrued Assets	7,536,541
Deferred Debits
Regulatory Assets	0
Other Special Funds	276,041
Total Deferred Debits	276,041
Total Assets and Other Debits	100,638,531

Liabilities and Credits
Equities and Margins
Memberships	0
Patronage Capital	28,287,008
G&T Capital Credits	6,059,799
Other Margins & Equities	22,242,743
Total Equities and Margins	34,369,050
Long-Term Debt
RUS-FFB Notes Payable	21,474,024
NRUCFC Notes Payable	6,938,849
CoBank Notes Payable	28,102,718
Total Long-Term Debt	56,510,591
Current and Accrued Liabilities
Accounts Payable	5,973,311
Consumers' Deposits	167,835
Taxes and Interest Accrued	1,930,122
Leases	0
Accrued Vacations, Sick Pay, Insurance	1,057,136
Short Term CoBank, CFC	422,853
Total Current & Accrued Liabilities	9,551,255
Deferred Credits
Consumer Energy Prepayments	0
Other Deferred Credits	207,635
Total Deferred Credits	207,635
Total Liabilities and Other Credits	100,638,531

Capital Credits

Yellowstone Valley Electric Cooperative is a non-profit organization. The electric rates are priced to cover operating expenses and loan repayments. If there is any revenue left over after expenses are paid, it is classified as margins. Margins are divided among the members of the cooperative and allocated as patronage capital (capital credits) based upon how much power each member is billed during the year.

If the capital credit retirement for inactive accounts is greater than $50, a check will be issued and mailed out after the annual meeting. Active members’ capital credits will be applied to their electric account. Some capital credit funds have been set aside for payment of estates to be processed during the year 2026.

2025 Margins & Expenses

Residential & Farm: 75%
Small Commercial: 9%
Large Commercial: 14%
Irrigation: 2%
Wholesale Power: 55%
Depreciation: 8%
Interest: 5%
Operating Margins: 5%
Administrative and General: 7%
Operations and Maintenance: 16%
Consumer Accounts: 4%

Operation Round Up

$86,080 to 34 Non-Profit Organizations in 2025
$615,087 Total Allocation To Date

1st Quarter
Organization	Description of Non-Profit Organization	What the Funds Were Allocated Towards
American Foundation for Suicide Prevention	Voluntary health organization that gives those affected by suicide a nationwide community empowered by research, education, and advocacy	Funding for their Yellowstone Valley Out of the Darkness Walk
Big Sky Senior Services	Promotes independence, enhances quality of life, and prevents elder abuse.	Funding for program supplies
Billings Heights Kiwanis	Helps and supports kids in the Billings Heights.	Funding for their BUG Program
Fellowship Baptist Church	Provides the opportunity for students who are unable to pay to go to a sports camp, and the ability to attend camps free of charge.	Funding for food and paper goods for their Youth Sports Camp
Fellowship of Christian Athletes	Serves the Yellowstone Valley by leveraging the universal language of sports to bring together athletes and coaches, including those with disabilities.	Funding for FCA all-abilities Camp t-shirts
Huntley Project Lions Club Luther's Lodge	Organizes local events supporting education and youth programs.	Funding for a new water pump
MSUB Foundation	Advances the goals of MSUB by promoting philanthropy, building community partnerships, and enhancing education opportunities through fundraising.	Funding towards the construction of guest rooms for patients and families
Safe Kids Yellowstone County	Provides injury prevention education to families in Yellowstone County.	Funding for scholarships for students enrolled in the Electrical Tech Program
Support Techniques for Empowering People	Collaborative barrier removal, skill building, fostering growth, and creating inclusive environments that value individual choice.	Funding for safe and other basic needs
Blankets and Bears	Provides warm blankets, new pillows, and cuddly stuffed animals to children when the weather gets cold.	Funding for replacement flooring
Fuego Volunteer Fire Company	VFPC is a non-profit volunteer fire company in the area of State Highway 3 southwest of Billings.	Funding for fleece blankets and forever little bear books
Love and SonShine Ministries	Addresses the needs of pregnant and parenting homeless and at-risk teens in need of safe, secure housing and supportive services.	Funding for a gas-powered high-pressure washer

2nd Quarter
Organization	Description of Non-Profit Organization	What the Funds Were Allocated Towards
Montana Veterans Meat Locker	Provides frozen, professionally processed meat free of charge to veterans.	Funding for a projector
Shepherd School Track and Field	Gives students from grades 6-12 the opportunity to learn, practice, and compete in running, jumping, and throwing events.	Funding for a vacuum sealer
SOW Ministries	Feeds children one meal a day during the summer months while the students are out of school.	Funding for a shipping container to store equipment
St. Vincent de Paul	Giving priority to the poorest of the poor and those most rejected by society.	Funding for food supplies for children
The Spectrum Hope Fund	Helping families in Billings, MT, and surrounding areas access crucial autism therapies and resources.	Funding for a new roof
Girl Scouts of MT and WY	Building girls of courage, confidence, and character to make the world a better place.	Funding for scholarships to clinics for children receiving ABA Therapy
Huntley Community Club	Organizes, promotes, and assists with projects for the benefit of the local communities and the park.	Funding for a new AED at their office headquarters
Huntley Project Museum	The Huntley Project Museum is committed to preserving, interpreting, and sharing the history of the Huntley Project.	Funding for signage for the pavilion at Barenmeyer Park

3rd Quarter
Organization	Description of Non-Profit Organization	What the Funds Were Allocated Towards
Molt Volunteer Fire Department	Volunteer fire department in the Molt area.	Funding for cabinet replacement at the Museum
P.E.A.K.S.	Provides non-medical related financial support to cancer patients of the Billings Clinic and St. Vincent Hospital.	Funding for a base station radio and antenna
Warrior Wishes Montana	Provides assistance in all areas of life to current and future Montana veterans.	Funding towards their yearly fundraiser
Worden Fire Department	Provides fire protection services in Yellowstone County.	Funding for meals for their Vetsgiving event
Yellowstone Boys and Girls Ranch Foundation	Supports charitable, religious, and educational organizations and programs whose service primarily benefits youth and adults with special needs.	Funding for handheld radios
Yellowstone County Christian Athletic League	Provides homeschool students with a Christian approach to athletics.	Funding for Christmas stocking gifts, meals, and decorations
Child Bridge, Inc.	Exists to find and equip families to care for Montana children who have experienced abuse and neglect.	Funding towards scholarships

4th Quarter
Organization	Description of Non-Profit Organization	What the Funds Were Allocated Towards
Compass Allstars 4-H Club	4-H club that completes community service projects in the community.	Funding for their Foster Connect-Parent classes
Head Start, Inc.	Provides comprehensive services for young children and their families to achieve school readiness and lifelong success.	Funding for showmanship shirts
Project Wrestling Club	Supports youth development, athletic training, and community engagement.	Funding for electrical upgrades at their North Park location
Off The Streets	Provides a warm, safe, and welcoming refuge for individuals experiencing chronic homelessness.	Funding for wrestling mats at the new Annex Facility
Safe Kids Yellowstone County	Provides injury prevention education to families in Yellowstone County.	Funding for shelter, meals, and intensive case management
Special Olympics Montana	Provides year-round sports training, athletic competition, and health-related programming for individuals with intellectual disabilities.	Funding for children's multi-sport helmets