CEO’s Message – April 2023

Theresa Quiroz headshot There's never what you would consider a "typical" year at Rio Grande Electric
Co-op. We've come to expect the unexpected, and 2022 was no exception. That's not to say that it was a bad year - quite the contrary. It was actually a great year for the Cooperative, and one that will go down in the annals of RGEC history as a very significant year for building and strengthening Rio Grande to prepare it for the future. It is from this foundational building that the title Of the 2022 Annual Report was derived. "Cultivating Success" was selected for several reasons - first, it is an homage to the growing done by our agricultural members, and, because we strive to grow stronger and more capable based on the foundation laid in 2022.

As you may recall, the year had barely begun w n it, another ice storm. Granted, it was not of the same intensity s he previous year, but still enough to cause damage. Thankfully, safety is a core value at Rio Grande Electric. It is an ethic that guides the way we view safety and safety-related behavior at the Co-op, on and off the job, even when no one is watching. If 2021-2022 taught us anything, it was that we needed to make several significant changes to the existing rules based on issues identified during t e pandemic and after extreme winter weather events. Rio Grande Electric updated its Emergency Operations Plan or ("EOP") and trained staff in compliance with the Electric Service Emergency Operations Plan Rule or (16 Tex. Admin. Code §25.53), that was approved by the Texas Public Utility Commission on February 25, 2022. The EOP provides us with a clear set of guidelines, policies, and procedures intended to guide us in the preparation for system emergencies; and provides a framework for important tasks and actions required during a system emergency (e.g., pandemic/epidemic, wildfire, hurricane, cyber security, or physical security). During the year, the electric industry experienced a fair share of emergencies, putting us all on high alert.

A change in CEOs occurred in February, when the board asked me to become Interim CEO, before passing a resolution to confer the official title of CEO a few short months later. It was a highlight of my year, and I am truly honored to be the positive energy force that brings us together in changing the Cooperative for good into the future.

As you will read in the pages of this report, all departments were ‘cultivating success’ and growing during the year. The Specialized Project Development and Engineering Services Department was no exception. This team handles the growing volume of distributed generation (solar and wind) projects requested by members, and is also highly involved with the installation and arrangements for RGEC’s own 11 solar arrays. In addition, Project Managers and Coordinators, guide the progress of every project the Cooperative undertakes – both in the Native System, and at military bases, Ft. Bliss and Laughlin AFB. Trust me when I say that there is always a lot going on. The Engineering Services portion of this department handles the staking of new lines, and may be a member’s first contact with the Cooperative when you secure an easement or need new construction. They are committed to cultivating success from the first interaction with you.

The Human Resources and Diversified Services Department not only dealt with employment and hiring, as you would expect, but also assisted in the acquisition of the new Ft. Stockton Campus, and the coordination of the Member Advisory Committees. It truly is a diversified department,
which is committed to cultivating success in employees, member relations, facilities, . . .and the list goes on.

The Accounting & Finance Department underwent major restructuring during the year. The hiring of a new Manager of Accounting and Finance and the tireless efforts of a dedicated department saw the Co-op through one of the most financially successful years in recent history. It was not without its trials, but success is cultivated constantly at Rio Grande, and it was never more apparent than in meeting the challenges faced during this unique year.

Cultivating success involves evaluating and sometimes changing our plan of action or beginning to make different decisions that are in alignment with our goals. Changing the course of action entails how we trust, how we listen, and how we act in strategic planning. It can be finding the right people and keeping the right people, listening closer, and setting a standard for right action.

It is my distinct privilege to report to the membership that your cooperative is healthier than ever. With a devoted focus on safety, operational excellence, enhancing and driving customer service, innovation, employee culture and sustainability. I am proud of our team and all we are cultivating together, to better serve you.