John Shafto

The Board of Trustees held a special meeting, during which a moment of silence and prayer were observed in memory of Trustee Chris Duran. Following the approval of the agenda, the Board entered into an executive session to discuss key contractual matters related to the Pathway Project (Hydrogen). Upon reconvening, the Board unanimously approved the Engineering Contract for the Pathway Project, awarding it to Entrust Solution Group. Additionally, the Board unanimously approved the Construction Management, Commissioning, Automation Hardware & Software Pricing Contract for the Pathway Project, also awarded to Entrust Solution Group. Authorization was granted to the CEO to negotiate and execute the Questa Solar Contract for the Pathway Project after review by the Executive Committee, including real estate acquisition for the project. The date for the next regular board meeting was set for January 26, 2026.

The meeting included the approval of the amended agenda, which incorporated birthday wishes for the CEO. The Board approved the minutes from the November 25, 2025, regular meeting. Key discussions in the CEO report focused on the 2026 budget, significant increases in transmission expenses ($960,535 over the last year) and depreciation/amortization ($406,069), and challenges in recovering transmission expenses due to billing lags and customer reliance on the grid. Other topics included KCEC's resource development (Amalia II Solar Array, Hydrogen and Battery projects), increased operations and maintenance expenses for wildfire mitigation, legal fees related to the NMPRC inquiry concerning solar facility LLC status, and the goal of becoming non-regulated. Committee reports covered safety issues (including vehicle accidents and a lost-time incident), approval of November 2025 payables, updates on Kit Carson Internet growth and expansion projects, the successful Amalia II Solar Array ribbon-cutting, and preparations for the legislative dinner. The Board unanimously approved the 2026 Budget, which necessitates rate restructuring due to rising costs, and appointed voting delegates for the NRECA and NRTC 2026 meetings. Capital credits to estates totaling $22,822.36 were also approved for payment.

The Board meeting agenda was approved as amended to place the appointment of the Kit Carson Propane (KCP) District 5 Director before the presentation of the Rural Electric Safety Achievement Program (RESAP) Certification. Mr. Dale Fuller was unanimously appointed as Kit Carson Propane District 5 Director for a three-year term. KCEC received a Certificate of Safety Achievement from the National Rural Electric Cooperative Association (NRECA), which may assist with wildfire mitigation liability legislation, although insurance rates are determined by proprietary models. The CEO Report detailed the September 2025 composite rate (8.81 cents per kwh) and the necessity for a rate increase, estimated at $3 - $3.5 million (10-14%), due to rising transmission and other operational expenses. The Board approved capital credits to estates, employee bonuses, and food donations to qualifying organizations. The Payables for October 2025 were approved. Committee reports indicated plans for tours related to the Plug Power Inc. electrolyzer project and meetings concerning the Hydrogen project. The Broadband Committee reported 15,300 customers and increased margins for Kit Carson Internet. The Solar Committee confirmed the Amalia II Solar Array ribbon-cutting for December 18, 2025, which will add 8.75 MW of solar generation and 8.75 MW of battery storage. The Bylaw & Policy Committee recommended creating a Public Relations and Community Development Committee and a Hydrogen Committee. The Bid Committee unanimously approved the renewal of insurance coverage with Federated Rural Electric Insurance. The Board entered and exited Executive Session.

The board meeting included a presentation from Kit Carson Energy, Inc., regarding a payment towards their intercompany loan. A member billing concern was discussed regarding the classification of a non-profit business account. The CEO's report for January 2017 was presented, covering financials, operating margins, and new services. The board approved payments to estates for the retirement of capital credits and set the date for the 2017 Annual Meeting. Updates were given on NMRECA meetings and Kit Carson Telecom's activities, including customer numbers, cell site developments, and partnerships. The Solar Committee provided an update on solar deployment projects. An executive session was held, but no action was taken.

The meeting was called to order by the President, who noted that one member would listen but could not vote due to not being present in person. The agenda was approved, and the President thanked the Board for attending on short notice. A waiver of the five-day written notice for the special meeting was approved. The board discussed and approved Resolution No. 7-11-25, petitioning the Governor of New Mexico to reinstate funding for the Jemez Mountains Electric Cooperative (JMEC) Broadband Project. The CEO reported on JMEC's cancelled award for the Alcalde Broadband Project and the partnership with KCEC to appeal the termination. The potential construction timeline was discussed, with a target to begin by the end of November to meet the December 2026 deadline.