Tim McCarthy

The Board of Directors reviewed and approved the agenda for the special meeting. The primary focus was the review and consideration of the 2026 Work Plan and Budget. Manager McCarthy presented the budget, noting that existing rates were insufficient to cover budgeted expenses, requiring a previously approved $10.5 million rate increase to meet 2026 loan requirements. Key financial highlights reviewed included projections for wholesale power purchases (1,006,452 MWh), total revenue ($126.2 million), budgeted total power costs ($78.5 million), budgeted total margins ($9.175 million), and the proposed capital budget for distribution plant additions and replacements ($25.452 million). Specific capital expenditures detailed included improvements, conductor replacements, transformers/metering, new extensions, and sectionalizing equipment. Operational plans involved testing/treating approximately 5,000 poles, line clearance on 28 townships, and various IT/infrastructure upgrades, including SAN replacements and software support fees. The Board also approved the 2026 Work Plan and Budget and subsequently adjourned the meeting.

The Board of Directors reviewed and approved the agenda. Key discussions included the review and consideration of nominees for the Member Advisory Council for various districts, setting the date for the 2026 Work Plan and Budget meeting and the December board meeting, and nominating General Manager/CEO Tim McCarthy to represent the cooperative on the SMEC Board of Directors. Manager McCarthy provided a cost comparison for Sioux Valley Energy against other electric cooperatives and updated the board on strategic planning efforts, including organizational structure and succession planning. Reports were given on financial summaries ending November 2025, East River financials, Basin updates, cyber-attack concerns, and increased RUS funding. The board also received reports on various power supply and educational meetings attended by directors. Authorizations were made for directors to attend several upcoming industry meetings and forums in 2026. The session concluded with an executive session to discuss internal cooperative business.

The board meeting commenced with introductions of a District Member Advisory Council member and two new employees. The agenda was amended to reschedule a review item. Key discussions included the review and acceptance of the General Manager's quarterly expense statement for January through March 2025, with payment approved. The board reviewed and approved the 2024 Financial Audit Report, which resulted in a "clean audit" opinion. A REED loan application for $150,000 was approved. The board also reviewed the work order process, received an overview of the 2025 district meetings and survey results, and approved a one-year labor only construction contract with Builders Electric. The Attorney's quarterly expense statement was presented and approved. Future strategic planning was scheduled, and financial performance for the first quarter was reviewed. Updates were given on various power supply meetings and projects, including the SMEC conversion scheduled for August 1, 2025. A contribution of $2,000 annually for five years, starting in January 2026, was approved for the Mitchell Technical College energy training expansion. Attendance authorizations were approved for several upcoming training sessions and meetings. An executive session was held to discuss internal cooperative business.

Key discussions during the regular meeting included the introduction of new Member Advisory Council members for District 6 and a new employee, Warehouse Coordinator Brett Denman. The Board approved the agenda, which included adding a future discussion item regarding EV programs. Business items focused on the proposed sale of overhead line to L&O Power Cooperative, which the Board authorized the President and Secretary to execute an Asset Purchase Agreement for. The Board also discussed potential funding options for the future work plan due to uncertainty with RUS funds. Updates were provided by the Safety Steering Committee regarding their recent focus areas and the LeRoy Vanderpool Excellence in Safety Award received by SVE. Policy review involved approving Board Policy 10 and related operating guides. The Board reviewed the Strategic Planning Scorecard, discussed strategic planning topics such as long range planning and rate picture, and reviewed the General Manager's Report, including wholesale power purchase details and reports from L&O Power and East River Electric meetings. Authorization was granted for a director to attend the CFC Annual Meeting and Forum in New York City.

The meeting included an overview of the 2026 budget, rate design considerations, and a review of the REVIVE 2030 Strategic Planning sessions. The board discussed and approved a rate increase for 2026. They also reviewed and considered a labor-only contract for underground construction, network security testing results, and a date for the 2026 Strategic Planning Session. Additionally, there were discussions on strategic planning, the General Manager's report, power supply meetings, classes attended by directors, and notices of upcoming meetings. The board also moved into an executive session to discuss internal cooperative business.