2023 ELECTRIC DIVISION FINANCIAL NOTES

1) Operating results:

• • In 2023, overall accrued electric margins of $10,782,376 included $1,490,145 of non-cash capital credits from Hoosier Energy, Inc., and other Cooperative business associates.

• • 2023 kWh sales of 445,642,593 was 6.82% percent lower than 2022 kWh sales of 478,275,626.

2) Financing of capital expenditures:

• • The 2023 $8.2 million investment in electric utility plant was financed from operating cash on hand. No loan funds were required for electric plant.

3) Rates:

• • Jackson County REMC’s base electric rates were changed on April 1, 2023. While the residential base rate per kWh decreased $12.25 per 1,000 kWh, the Basic Service Charge increased $10 per month.

• • The total retail electric rates charged by Jackson County REMC increased in 2023 due in large part to increases from our power supplier Hoosier Energy, Inc. When including Hoosier Energy’s power cost tracker and the addition of the Merom fixed charge, designed to collect stranded asset costs associated with Hoosier Energy’s Merom Station coal generation plant, retail rates on average increased 13.38% per kWh in 2023.

4) Capital credits:

• • The Board of Directors authorized the retirement of Capital Credits allocated for 1992. In November 2023 we retired $2,705,050. $905,785 of this retirement has yet to be claimed, while the balance has been distributed.

5) Audit:

• The records of the corporation have been audited through June 30, 2023, by Monroe Shine & Co., Inc., Certified Public Accountants. The annual audit for the 12 months ending June 30, 2024, will soon be underway.

2023 FIBER DIVISION FINANCIAL NOTES

1) Operating results:

• • 2023 was the sixth year of billing customers for fiber-optic broadband service. Revenue from fiber-optic broadband and VoIP telephone sales continued to grow throughout the year as more customers were connected. Total operating revenue equaled $9,960,778 for 2023 compared to $8,173,367 in 2022.

• • In 2023 we added 1,489 fiber-optic broadband accounts and ended the year with a total of 12,302 accounts. We also added 155 VoIP telephone accounts and ended 2023 with a total of 423 accounts.

• • Net operating margins (revenues less expenses) equaled
    –($384,824) for 2023 compared to -($822,223) in 2022.

2) Financing of capital expenditures:

• • The 2023 $4 million investment in fiber-optic utility plant was financed through loans from RUS (Rural Utilities Service, USDA Rural Development) and grant funds from Indiana’s Next Level Connections grant program.

3) Rates:

• • The retail fiber-optic broadband and VoIP telephone service rates charged by Jackson County REMC remained the same throughout 2023.

4) Audit:

• • The records of the Fiber Division of the Corporation have been audited through June 30, 2023, by Monroe Shine & Co., Inc., Certified Public Accountants. The annual audit for the 12 months ending June 30, 2024, will soon be underway.