John Shafto

The primary purpose of this Special Board Meeting was to consider the appointment of a Trustee for District 4. The Board interviewed a candidate, Ms. Matilda Duran-Gonzalez, who presented her professional background. Following the introduction and discussion, which did not require an Executive Session, the Board unanimously approved her appointment to serve until the KCEC Annual Meeting in June 2026, after which the Oath of Office was administered. The President also invited the newly appointed Trustee to attend upcoming committee and board meetings.

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 Board meeting included several significant discussions and actions. The Chief Executive Officer (CEO) reported on year-end financials indicating revenue slightly down due to warm weather, while the cooperative remains ahead of budget, noting increased transmission/power costs which will be recovered via the fuel adjustment. The CEO also highlighted the successful management of recent extreme weather with minimal outages, KCEC's status as the second largest Cooperative in New Mexico, and the award of a $2 million Community Energy Efficiency Development (CEED) Grant for energy efficiency programs. Concerns were discussed regarding the pending PNM merger/buyout. Progress on the Kit Carson Propane (KCP) plant completion and the Kit Carson Internet (KCI) Broadband Expansion Project, including a Pre-Apprenticeship Program, were reviewed. The Hydrogen Project and the Questa Solar project, which is moving forward under a new LLC structure to preserve tax credits, were also discussed, with emphasis placed on proactive public relations to address local opposition to the Hydrogen Project. Following the passing of the Vice-President, the Executive Committee was reorganized, appointing a new Vice President, Secretary, and Treasurer until the June 2026 reorganization meeting. Capital Credits to Estates totaling $16,825.78 were approved for payment. Resolution No. 1-1-26 was approved, authorizing an amendment to the NRECA 401(k) Pension Plan for internet-division employees. Resolution No. 2-1-26 was approved, authorizing the creation of Questa Solar 1, LLC, with specific roles assigned for its management. Payables for December 2025 were approved. Committee reports covered legislative advocacy strategies, the upcoming legislative dinner, a recent award presentation, and plans for a blood drive and the 10-year anniversary celebration. The Board discussed merging the Solar and Hydrogen Committees.

This document outlines Kit Carson Electric Cooperative's vision to achieve 100% daytime solar energy by 2022. The plan focuses on developing up to 35 megawatts of small solar arrays and integrating battery technology. Key objectives include providing reliable, renewable energy for all members at a stable price, transitioning from previous power agreements, and demonstrating a pathway for other rural cooperatives to deploy distributed energy resources.

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.