ML25134A055

LACBWR, Financial Statement and Auditors Report

ML25134A055
Person / Time
Site:	La Crosse File:Dairyland Power Cooperative icon.png
Issue date:	04/21/2025
From:	Jeremy G. Browning Dairyland Power Cooperative
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
LAC-14578
Download: ML25134A055 (1)

Text

Jeremy Browning Chief Nuclear Officer DAIRYIAND POWER C 0 0 p E

R AT I V E

April 21, 2025 In reply, please refer to LAC-14578 DOCKET NO. 50-409 AUN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555-0001

SUBJECT:

Dairyland Power Cooperative La Crosse Boiling Water Reactor (LACBWR)

Possession-Only License DPR-45 Financial Statement and Auditors Report

REFERENCE:

1) 10 CFR 50.71(b)

In accordance with the requirements of Reference 1, we are submitting the Consolidated Financial Statements for Dairyland Power Cooperative as of December 31, 2024 and 2023, and Independent Auditors Report.

Sincerely, Jeremy Browning Chief Nuclear Officer JRB:MGM:tco Enclosure(s):

Consolidated Financial Statements for Dairyland Power Cooperative as of and for the Years Ended December 31, 2024 and 2023, and Independent Auditors Report A Touchstone Energy Cooperative 3200 East Ave. S.

• P0 Box 817

• La Crosse, WI 54602-0817

• 608-787-1449

• 608-787-1321 fax

• www.dairynet.com Dairyland Power Cooperative is an equal opportunity provider and employer.

Document Control Desk LAC-14578 Page 2 April 21, 2025 cc w/o enclosures:

John B. Geissner, NRC Regional Administrator john.giessner@nrc.gov Tilda Lui, NRC Project Manager tilda.liu@ nrc.gov Ryan Verhulp, DPC Associate General Counsel ryan.verhulp@dairylandpower.com Marty Moe, DPC ISFSI Manager marty. moe@dairylandpower Brent Ridge, DPC President and CEO brent.ridge@dairylandpower.com Jessica Peters, DPC Controller jessica.peters@dairylandpower.com

Document Control Desk LAC-14578 Page 3 April 21, 2025 STATE OF W4I(ON-)

COUNTY OF CDE

, ec Personally came before me this

,2, day of 47/YL

, 2025, the above named, Jeremy Browning, to me known to be the person who executed the foregoing instrument and acknowledged the same.

Notary Public State of Florida Jean H. V1e1 C.mmlsslon HH 5S353 My commission expires La Crosse County Wisconsin

/

Dairyland Power Cooperative and Subsidiary Consolidated Financial Statements as of and for the Years Ended December 31, 2024 and 2023, and Independent Auditors Report

De o I

5ubZ8

Mhmu,i 114024538 USA 1W4.1 612 39? 4000 x: +1 112 387 4450 www.Mom INDEPENDEN1AUDITORS REPO Board of Directors Dairyland Power Cooperative La Crosse, Wisconsin Opinbn We have audited the consolidated financial statements of Dairyland Power Cooperative and subsidiary (the Cooperative), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of revenue, expenses arid vomprehensTve income, member and patron equities, and cash flows fortheyearsthen ended, and the related notes tothe consolidated financial statements (collectively referred to as the financial statements).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Cooperative as of December 31, 2024 and 2023, and the results ofits operations arid Its cash flows for the yearsthen ended in accordance with accounting principles generally accepted in the United Statesof America.

Basis for Opinion We conducted our audits In accordance with audIting standards generally accepted In the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors Responsibilities forthe Audit of the Financial Statements section of our report. We are required to be Independent of the Cooperative and to meet our other ethical responsibilitIes, In accordance with the relevant ethical requirements relating to our audits. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities ofManagementforthe Financial Statements Management is responsible forthe preparation and fair presentation ofthe financial statements in accordance with accounting principles generally accepted In the United States of America, and for the design, implementation. and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement. whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whetherthere are conditions or events, considered in the aggregate, that raise substantial doubt about the Cooperatives ability to continue as a going concern for one year after the date that the financial statements are available to be issued.

Auditors ResponsibIlitIes for the Auditofthe Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that indudes our opinion. Reasonable assurance is a high level of assurance but is notabsolute assurance and

therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud Is higherthan for one resulting from error, as fraud may Involve collusion, forgery. Intentional omissions, misrepresentations, or the override of internal controL Misstatements are considered material ifthere is a substantial likelihood that, Individually or In the aggregate, they would Influence thejudgment made by a reasonable user based on the financial stements.

In performing an audit in accordance with GMS, we:

Exercise professlonaljudgment and maintain professional skepticism throughoutthe audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, and design and perform audit procedures responsive to those risks Such procedures include examining, on a test basis, evidence regarding the amounts and disdosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the cfrcumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Cooperatives internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation ofthe financial statements.

Condude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Cooperatives ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain Internal control-related matters that we identified during the audit.

.4U March 27, 2025 DAIRYLAND POWER COOPERATIVE AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2023 (In thousands) 2024 2023 ASSETS ELECTRIC PLANT:

Plantand equipmentat original cost

$ 2,237,104

$ 2,134,866 Less accumulated deprIation (994A76)

(957,471)

Net plant arid equipmt 1,242,628 1,177,895 Construction work in process 77,398 126,813 Total electric plant 1,320,026 1,304,208 OThER ASSETS:

Nuclear decommissioning funds 2,209 2,108 Intangible assetnet(Note 2) 16,623 22,607 Other investments (Note 8) 7,894 8,606 Investments In capital term certificates of National Rural Utilities Cooperative Finance Corporation (Note 8) 9,176 9,176 Regulatory assets (Note 2) 18,143 19,093 Investmentfor deferred compensation 2,357 1,988 Deferred charges (Note 2) 26,740 20,185 Other assets 1,S0 2,460 Total other assets 84,692 86,223 CURRENT ASSETS:

Cash and cash equIvalents 4,379 38,285 Designated funds (Note 2) 11,800 15,965 Accounts receivable:

Energy sales 43,161 39,510 Other 6,839 1,964 Inventories:

Fossil fuels 45,449 52,342 Materials and supplies 31,628 22,917 Prepaid expenses and other 19,450 23,890 Total current assets 162,706 194,873 TOTAL

$ 1567,424

$ 1,585,304 (Continued)

DAIRYLAND POWER COOPERATIVE AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31., 2024 AND 2023 (In thousands) 2024 2013 CAPFFALIZAI1ON AND UABLIflES CAPITAUZA11ON:

Member and patron equIU; Membershlpfees I

S 1

Patronage capital (Note 9) 394,095 373,733 Accumulated other comprehensive income 3,353 3,171 Total member and patron equities 397,449 377,006 Long-term obligations (Note 6) 885,257 939,827 Total capftaNzatlon 1,282,706 1,316,833 OThER UABIU11ES:

Deferred credit (Note 2) 10,600 6,830 Obligation5 under financeleases (Note 7) 9,102 8,312 Postretirement health insurance obligation (Note 11) 3,688 3,677 Decommissioning and asset retirementobligadons (Note 14) 5,927 2,351 Other noncurrent IiabiIiti 14,141 14,7a5 Total other liabilities 43,458

..... 35,955 COMMITMENTS AND COPfl1 NGENCIES (Note 10)

CURRENT UABI LIliES:

Current maturities of long-term obligations and obligations under finance leases 57,856 68,865 LIne of credit (NoteS) 115,000 95,000 Nuclear decommissioning obligations (Note 14) 60 Advances from member cooperatives and other prepayrnents 1,463 1,821 Regulatory liabilities (Note 2) 1,800 5,965 Accounts payable 43,680 33,596 Accrued expenses:

Payroll, vacation, and benefits 7,828 7,169 Interest 8,500 Property and other taxes 4,002 3,374 Other 9,631 8,166 Total current liabilities 241,260 232,516 TOTAL 1,567424

$ 1,585,304 See notes to consolidated financial statements.

(Concluded)

DAIRYLAND POWER COOPERATIVE AND SUBSIDIARY CONSOLiDATED STATEMENTS OF REVENUES, EXPENSES AND tOMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In thousands) 2024 2023 LUTY OPERATIONS:

Operating revenues Sales of electric energy

$466,178 Other 3Z689 25,131 Total operating revenues 483,192 491,309 Operating expenses:

Fuel 67,672 85,590 Purchased and interchanged power 118,318 122,939 Otheroperatingexpenses 129,367 107542 Depreciation and amortization 68,01.9 65,602 Maintenance 28,975 42,301 Propertyandothertaxes 9,533 10,045 Total operating expenses 421884 434,019 Operating margin before interest and other 61,3 57,290 Interest and other:

Interest expense 40,359 38,433 Allowance for funds used In constructionequIty (982)

(1,468)

Othernet (279)

Total interest and other 39,377 36,686 OPERATiNG MARGIN 21,931 20,604 NONOPERATINGMARGIN 3,820 3,683 NETMARGINANDEARNINGS 25,751 24,287 OThER COMPREHENSIVE INCOME Postretirement health Insurance obligation adjustments 81 395 COMPREHENSIVE INCOME 25,832

$ 24,682 See notes to consolidated finandal statements.

DAIRYLAND POWER COOPERATIVE AND SUBSIDIARY CONSOLIDATED STATEMENTS OF MEMBER AND PATRON EQUITIES FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In thousands)

See notes to consolidated finandal statements.

Acamu1ated Total Other Member Membership Patronage Comprehensive and Patron Fees Capital Income Equities BALANCEJanuary 1, 2023

$ 1

$354,555

$2,877

$357,433 Net margin and earnings 24,287 24,287 Postretirement health insurance obligation adjustments 395 395 Retirement of capital credits (Note 9)

(1c)

(,1o9J BALANCEDecember 31, 2023 1

373,733 3,272 377,006 Net margin and earnings 25,751 25,751 Postretirement health insurance obligation adjustments 81 81.

Retirement of capital credits (Note 9)

(5,389)

BALANCEDecember 31, 2024

$394,095

$3,353

$397,449 DAIRYLAND POWER COOPERATIVE AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DEcEMBER 31, 2024 AND 2023 (In thousands) 2024 2023 C.SH FLOWS FROMOPERATNG ACTIVITIES:

Netmarginandedmins 25751

$ 24,287 MjuStrnts to rconciI ntmargin and earnings to net cash proulded byoperatlng activities:

Lossondisposalofassets 221 1,015 Depredation nd amortizatIcn:

Qarged to operating expenses 68,019 65,602 charged through otheroperatlng elements such as fuel expense 341 968 Allowance forfunds used In constructionequity (982)

(1,468)

Changes In operating elements:

Accounts receivable (8,525) 3,493 lnntorIes

(,739)

(23,957)

Prepald eenses and otherassets 12,396 (5,099)

Accountspayable 6,654 9,978 Accrued expenses arid otherilablilties (16,461)

(6,276)

Deferred charges and other (14,150j (11,625)

Total adjustments 45,774 27,531 Netcash provided byoperating activities 71,525 51,918 CASH FLOWS FROM INVESTING ACflViii ES:

Elethic plant additions (73,279)

(71,757)

Assatacquisitlon (229)

(412)

Proceedsfromsaleofassets 374 987 Purchase of investments (100)

(106)

Proceeds from sale of lnvestnents and economic development loans 101.

223 Netcash used In Investing activities (73,133)

(71,065)

CASH FLOWS FROM FINANCING ACflVIflES:

Borrowings under line of credit 20,000 94,000 Repaymentsunderllneofcredlt (5,000)

Borrowings under Iong4erm obligations 5,140 5177 Repayments of Iongterm obligations (69,770)

(54,310)

Retirement of capital credits (5,389)

(5,109)

Borrowings of advances from member cooperatives 400,641 400,441 Repayments of advances from member cooperatives (401,151)

(405,729)

Netcashprovldedby(usedln)flnancingactlvitles

ç5OS29) 29,470 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (52,137) 10,323 CASH, CASH EQUIVALENTS AND RESTRICTED CASHBegInnIng of year 56,516 46,193 CASH CASH EQUIVALENTS AND RESTRICTED CASHEnd of year 4,379 56,516 See notes to consolidated tinandal statements.

DAIRYLAND POWER COOPERATIVE AND SUBSIDIARY NOTES TO CONSOLIDATED FINANcIAL STATEMENTS AS OF AND FOR ThE YEARS ENDED DECEMBER 31, 2024 AND 2023 (All dollar amounts In thousands) 11 NATURE OF BUSINESS AND ORGANIZATION BusinessDairyland Power Cooperative and subsidiary (Dairyland or the CooperatIveM) Is an electric generation and transmission cooperative organized underthe laws ofthe states ofWlsconsln and Minnesota, The Cooperative, whose principal offices are located in Wisconsin, provides wholesale electric service to class A members engaged In the retail sale of electricity to member consumers located in Wisconsin, Minnesota, Iowa and Illinois1 and provides electric and other servicesto class C, 0 and E members.

Basis of AccountingThe consolidated financial statements are prepared on the accrual basis of accounting In conformity with accounting principles generally accepted in the United States of America (GAAP).

Prlndples of ConsolidationThe consolidated financial statements include the accounts of Dairyland and Dairylands wholly owned subsidiary, Genoa FuelTech, Inc All intercompany balances and transactions have been eliminated in consolidation.

2.

SIGNIFICANT ACCOUNTING POUES Regulatory AccountingThe accounting records of the Cooperative are maintained in accordance with the uniform system of accounts prescribed by the Federal Energy Regulatory Commission as adopted by the Rural Utilities Service (RUS), the Cooperatives principal regulatory agency.

ElectrIc PlantThe cost of renewals and betterments of units of property (as distinguished from minor items of property) includes contract work, direct labor and materials, allocable overhead, and allowance for funds used during construction, and is charged to electric plant accounts. Included in accumulated depreciation are nonlegal or noncontractual costs of removal components. As a result, the cost of units of property retired, sold or otherwise disposed of, plus removal costs, less salvage, is charged to accumulated depreciation and no profit or loss is recognized in connection with ordinary retirements of property units. A provision for these nonlegal or noncontractual costs of removal components is recognized based on depreciation rates determined by a third-party depreciation study completed in September 2021 and approved by RUS in 2021 for rates effective in 2022 through 2026.

The Cooperative is unable to obtain the information to separate the cumulative removal costs as of December 31, 2024 and 2023. Maintenance, repair costs and replacement or renewal of minor items of property are charged to operations.

Significant components of electric plant were as follows as of December 31:

Depreciable Lives 2024 2023 Production 1160 years

$ 1231,332

$1,212,929 Transmission 235oyears 740,123 664,125 Distribution 38 years 87,87 86,139 General plant 5-47 years 176,030 169,911 Other 32years 1,762 1,762 Construction work In process 77,398 126,813 2,314,502 2,261,679 Iess accumulated depreciation iM)

Electrlcplant

$1,320,026

$1,304,208 DepreclatlonDepreclatlon, which Is based on the straight-line method at rates that are designed to amortize the original cost of properties over their estimated useful lives, includes a provision for the cost of removing and decommissioningthe properties. The provision for depreciation averaged 2.7%

and 28% of depreciable plant balances for 2024 and 2023, respectIvely.

Allowance for Funds Used During ConstructionAllowance for funds used during construction (AFUDC) represents the cost of external and Internal funds used for construction purposes and is capitalized as a component of electric plant by applying a rate (5.170% in 2024 and 4.137% in 2023) to certain construction work in progress. The amount of such allowance was $2,565 in 2024 and $3,794 in 2023. The borrowed funds component of AFUDC for 2024 and 2023, was $1,583 and $2,326, respectively (representing 3.646% and 2.799% in 2024 and 2023, respectively). The equity component of AFUDC for 2024 and 2023 was $982 and $1,468, respectively, (representing 1.524% and 1.338% in 2024 and 2023, respectIvely). The borrowed funds components were included as a reduction of interest expense in the consolidated statements of revenues, expenses and comprehensive income.

Designated FundsDesignated funds represent the amounts collected from customers through rates and deferred for future use Designated funds are held in cash.

Intangible AssetIn December 2021, the Cooperative ecorded an intangible asset as part of the purchase ofthe RockGen Energy Center. The intangible asset consists of the assignable capacity agreements that were defined in the asset purchase agreement.

The carrying basis and accumulated amortization of the intangible asset as of December 31, 2024 and 2023 were as follows:

2024 2023 Gross intangible asset

$ 30,221

$30,221 Less accumulated amortization (13,598)

(7,614)

Intangible assetnet

$16,623

$22,607 Amortization expense for the years ended December 31, 2024 and 2023 was $5,984 and $4,964, respectively.

Estimated amortization expense for each of the folIowng five years and thereafter Years Ending December31 2025

$ 3,993 2026 2,076 2027 1,731 2028 1,731 2029 1,731 Thereafter 5,361 Total

$16,623 Regulatory AssetsThe Cooperatives accounting policies and the consolidated financial statements conform to accounting principles generalty accepted In the United States of America applicable to electric cooperatives.

The noncurrent portion of regulatory assets as of December 31, 2024 and 2023, Include the following:

2024 2023 Genoa #3 unrecovered plant balances S 9,634

$15,024 RodcGen regulatory asset 8,509 4,069 Total regulatory assets

$18,143

$19,093 Genoa #3 Unrecovered Plane BalancesDuring 2020, the Cooperative established a regulatory asset related to the unrecovered plant balances upon closure ofthe Genoa #3 generating station that occurred in 2021. Amounts are being recovered In rates through 2029.

The current portion of the Genoa #3 regulatory asset as of both December 31, 2024 and 2023 is $5,390.

These amounts are recorded in prepayments and other assets.

RockGen RegulatoryAssetDuring 2022, the Cooperative established a regulatory asset related to the difference in the amount being recovered in rates on a straightline basis over the 20-year life on a GAAP basis which is amortized based on the underlying capacIty contracts which have an estimated useful life of seven years. The difference between the GMP amortization and the amounts recovered in rates are deferred as the regulatory asset.

Deferred ChargesDeferred charges represent future revenue to the Cooperative associated with costs that will be recovered from customers through the rate-making process. As of December 31, 2024 and 2023, the Cooperatives deferred charges are being reflected in rates charged to customers. If all or a separable portion of the Cooperatives operations become no longer subject to the provisions of regulatory accounting, a write-off of deferred charges would be required, unless some form of transition recovery (refund) continues through rates established and collected for the Cooperatives remaining regulated operations. In addition, the Cooperative would be required to determine any Impairment to the carrying costs of deregulated plant and inventory assets.

The noncurrent portion of deferred charges as of December 31, 2024 and 2023, include the following:

2024 2023 Nemadji Trail EnergyCenter

$25,220

$19,812 Other 1,520 373 Total deferred charges

$26,740

$20,185 Cash and Cash EquivalentsCash equivalents include all highly liquid investments with original maturities ofthree months or less. Cash equivalents consIst primarily of commercial paper, stated at cost, which approximates market FossIl Fuels and Materials and SuppliesCoal invenries, as well as materials and supplies inventories, are stated at the lower of average cost or net realizable value.

Regulatory UabllitiesAs of December 31, 2024 and 2023, the Cooperative had various revenue deferrals reflected as regulatory liabilities. The revenue deferrals pertained to favorable results from market credits through transactions with the Mid-Continent Independent System Operator (MISO) In addition to favorable results due to market conditions. The summary of regulatory liabilities as of December 31, 2024 and 2023 is as follows:

2024 2023 Planned 2024J.P. Madgett maintenance S 2,290 System enhancements 1,875 Planned 2026-2027 Rockgen outage costs 10,000 10,000 Battery storage Innovation 1,800 1,800

$11,800

$15,965 Planned 2026 - 2027 Rockqen Energy Center Outage Costsln January 2024, the Board of Directors approved the creation of a regulatory liability revenue deferral plan in the amount of $10,000 as of December 31, 2023. The Cooperative deferred $10,000 of 2023 revenue and plans to recognIze this amount in 2026 and 2027 as part of the planned outage. The deferral plan was approved by RUS in February of 2024.

BatteryStorage InnovationIn January 2024, the Board of Directors approved the creation of a regulatory liability revenue deferral plan in the amount of $1,800 as of December 31, 2023. The deferral plan was approved by RUS In February of 2024.

The long-term portIon of regulatory liabilities as of December 31, 2024 and 2023 Is $10,000 and

$10,000, respectively. These amounts are recorded in other noncurrent liabilities.

Deferred CredltsDeferred credits represent both future revenue to the Cooperative associated with customer prepayments and noncurrent obligations and reserves related to operations. As of December 31, 2024, the Cooperatives deferred credits are being considered when determIning rates charged to customers.

Deferred credits as of December 31 2024 and 2023 were comprised of the following:

2024 2023 RockGen startup revenue deferral

$ 8,091

$5455 Elk Mound startup revenue deferral 1,485 1,675 Other-Cardinal Hickory Creek Revenue Accrual 1,024

$10,6

$6,830 The current portion of deferred credits as of December 31, 2024 and 2023 is $7,808 and $7,263, respectively. These amounts are recorded In Accrued expensesOther.

Sales of Electric EnergyRevenues from sates of electric energy are recognized when energy Is delivered. The class A wholesale rates approved by the Board of Directors have a power cost adjustment (PCA) and revenue volatility adjustment (RVA) that allows for increases or decreases in class A member power billings based upon actual power costs compared to plan. In 2024, the power cost adjustment and revenue volatility adjustment for Class A members led to a charge of $142 to sales billed, while in 2023, it resufted in credits of $11,864 to sales billed. These amounts are recorded in sales of electric energy In operating revenues on the consolidated statements of revenues, expenses and comprehensive income.

Other Operating RevenueOther operating reienue primarily Includes revenue received from transmission service and is recorded as services are provided.

Accounting for Energy ContractsThe Cooperative does not have any energy contracts that are requIred to be accounted for at fair value as of December 31, 2024 and 2023.

LeasesThe Cooperative determines if an arrangement is a lease at inception ofthe contract. The right-of-use assets represent the right to use the underlying assets for the lease term and lease liabilities represent the obligation to make lease payments arising from the lea5es. Right-of-use assets and tease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The Cooperative uses the Implicit rate noted within the contract, when available. Otherwise, the Cooperative uses its incremental borrowing rate estimated using recent debt issuances that correspond to various lease terms. The Cooperative does not recognize leases, for operating or finance type, with an initial term of 12 months or less (short-terrns leases) on the consolidated balance sheets, and the lease expense for these short-term leases is recognized on a straight-line basis over the lease term within.

Use of EstimatesThe preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Significant estimates in the consolidated financial statements relate to postretirement benefit obligations, asset retirement obligation liabilities, fixed-asset depreciable lives, and litigation and contingencies. Actual results could differ from those estimates.

Concentration of RlskApproxlmately 33% of the labor force for the Cooperative Is under collective bargaining agreements that expire January 31, 2025.

Subsequent EventsThe Cooperative considered events for recognition or disclosure in the consolidated financial statements that occurred subsequent to December 31 2024, through March 27, 2025, the date the consolidated financial statements were available to be issued.

3.

ACOUNT1NG STANDARDS During the current fiscal year, the Company has not adopted any new accounting standards that have a material Impact on Its financial statements. Additionally. there are no new accounting standards Issued but not yet effective that are expected to have a significant impact on the Companys financial position or resufts of operations upon adoption.

4.

INCOME TAXES The Internal Revenue Service has determined that Dairyland is exempt from federal income taxes under Section 5O1(c)(12) of the Internal Revenue Code. Accordingly, the Cooperatives utility operations are generally exempt from federal and state income taxes and no provision for such taxes Is recorded In the consolidated financial statements.

5.

UNES OF CREDIT To provide interim financing capabilities, the Cooperative has arranged committed lines of credit with CoBank. The original line was executed on November 30, 2015, and amended and extended on September 22, 2023. wIth avallablilty aggregating approximately $350,000. This facility has a five-year term1 maturing September 22 2028, and provides funds both for short-term working capital requirements and for capital projects until permanent financing can be obtained, Some capital pwjects will last longer than one year, but the Intent Is to pay down the line of credit as permanent funding Is received.

Compensating balance requirements and fees relating to the lines of credit were not significant In 2024 and 2023. Information regarding line of credit balances and activity for the years ended December 31, 2024 and 2023, Is as follows:

2024 2C23 interest rate at year-end 5.45 %

6.46 %

Total borrowings outstanding atyear-end

$11S,0

$95,000 Average borrowings outstanding during year

$101,667

$61,500 The Cooperative also allows member cooperatives to prepay their power bills and pays interest on these prepayments based on current short4erm borrowing rates, Advances from member cooperatives totaled $1,463 and $1,821 at December 31,2024 and 2023, respectively. Interest expense on member cooperative advances was $152 and $262 for the years ended December 31,, 2024 and 2023, respectively These amounts have been included in interest expense on the consolidated statements of revenues, expenses, and comprehensive Income.

6.

LONG-TERM OBLIGA11ONS Long-term obligations as of December 31, 2024 and 2023, consIst ofthe following:

2024 2023 Federal Financing Bank obligat1ons--L24%4A9%

534,420 568,941 Federal Financing Bank obligations4.5O%-52O%

164,268 179,221 Total Federal Financing Bank 698,688 748,162 RUS obligations4.125% and grant funds 969 1,491 CoBank notes4.32%

179,375 192,188 Private bonds placement obllgations3.42%

,834 64,167 Long-term debt 939,866 1,006,008 Less current maturities (54,609)

(66,181)

Net longterm obligations 88S,257 S

939,827 Quarterly principal and interest payments on the long-term obligations to the Federal Financing Bank (FFB) extend through 2053.

Long-term obligations to the RUS are payable in equal monthly principal and interest Installments through 2024. The CoBank note Is an amortizing 20-year term loan at an Interest rate of4.32%.

Quarterly principal and interest payments extend through 2042, The private bond placement is an amortizing 30-year term loan at an interest rate of 3.42%. Quarterly principal and interest payments on this obligation extend through 2043.

The Cooperative executed, filed and recorded an indenture of mortgage, security agreement and financing statement, dated as of September 13, 2011 and as supplemented (the indenture), between the Cooperative, as grantor and U.S. Bank National Association, as trustee. The perfected lien ofthe Indenture on substantially all of the Cooperatives assets secured equally and ratably all of the Cooperatives long-term debt The Cooperative is required to maintain and has maintained certain financial ratios related to earnings in accordance with the covenants of its loan agreements as of December 31,2024.

Scheduled maturities of the Cooperatives long-term obligations as of December 31, 2024, were as follows:

Years Ending December31 2025

$ 54,648 2026 56,082 2027 57,461 2028 58,391 2029 60,038 Thereafter 653,246 Total

$939,866 7.

LEASES The Cooperative has entered Into several finance lease agreements for large vehicles and heavy equipment, The transactions are covered in the master lease agreement with lease terms not exceeding seven years. At the end of the lease, the Cooperative can purchase the equipment for a bargain purchase price. The assets are amortized over the lesser of their related lease terms or their estimated productive lives.

The following table presents the components of the Cooperatives rightofuse assets and liabilities related to leases and theirclassification In the consolidated balance sheets as of December 31:

Ccenponent of Lease Balances aasstffcatlon In Consolidated Balance Sheets 1024 2023 Assetsfinance lease right-of-use assets UabIIitIes Current portion of finance lease liability Long-term portion of finance lease liability Plant and equipmentat cost Current maturities of long-term obligations and obligations under finance Obligations under finance leases

$22,096

$18,199 3,248 2684 9,102 8,312 The components of lease and their dassificatlon In the consolIdated statements of revenues, expense, and comprehensive income for the years ended December 31, 2024 and 2023, were as follows:

classIfication In Statements of Component of Lease Expenses Revenues, Expenses, and Comprehensive Income Operating lease expense Finance lease amortization Finance lease interest Short term lease expense Total lease expense Otheroperadrig expenses Depreciation and amortization Interest expense Otheroperating and maintenance expenses The weighted average remaining lease term and weighted average discount rate as of and for the years ended December 31, 2024 and 2023, were as follows:

Weighted Average Remaining Lease Term (Years)

Weighted Average Discount Rate Finance leases 5.58 4.13 %

2024 2023 S

59 2661 542 655 S97 2,11.5 387 596

$3,9

$M Finance leases 2024 Weighted Average Remaining Weighted Average Lease Term (Years)

Discount Rate 5.56 4.83 %

2023 Supplemental cash flow information related to leases for the years ended December 31, 2024 and 2023, was as follows; 2024 2023 Cash paid for amounts included in the measurement of lease liabilitiesoperating cash outflows from finance leases

$3,235

$3,069 Right-to*use assets obtained in exchange for lease obligationsfinance leases 4,417 4,773 The reconciliation of the future undiscounted cash flows to the lease liabilities presented on the Consolidated Balance Sheet as of December 31, 2024, were as follows:

Leases 2025 S

3,938 2026 3,407 2027 Z7 2028 1,976 2029 1,162 Thereafter 442 Total lease payments 13,625 Less discount (1,275)

Total lease liabilities S 12,350 8

FINAN1AL INSTRUMENTS The fair value of the Cooperatives financial instruments other than marketable securities and short term borrowings, based on the rates for similar securities and present value models using current rates available as of December 31, 2024 and 2023, Is estimated to be as follows:

2024 2023 Recorded Fair Recorded Fair Value Value Value Value Assets:

Other investments 7,894 7,894 8,606 8606 Investments in capital term certificates of NRUCFC 9,176 9,176 9,176 9,176 Uabilltleslong-term debt 939,866 768,300 1,006,008 847,071 Assets and Liabilities Measured at Fair ValueGAAP establishes a framework for measuring fair value by creating a hierarchy for observable independent market Inputs and unobservable market assumptions and provides for required disclosures about fair value measurements. Considerable judgment may be required in interpreting market data used to develop the estimates of fair vaIue

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The changes in Level 3 recurring fair value measurements using significant unobservable inputs for the years ended December 31, 2024 and 2O23 are as follows; 2024 2023 Other investments:

Balancebeginningofyear

$ 4,872

$ 5,554 Patronage capital allocations 1,831 629 Patronage capital retirements (1,778)

(1,311)

Balanceendofyear

$ 4,925 5 4,872 The valuation of these assets Involved managementsjudgment after consideration of market factors and the absence of market transparency, market liquidity and observable inputs 9.

RETIREMENT OF AP1TAL CREDITS The Cooperatives Board of Directors has adopted a policy of retiring capital credits allocated to members on a first-in, firstout basis. As part of an equity development strategy adopted in 2003, patronage capital retired will be limited to no greater than 2% of the total assigned patronage capital balance as of December 31 of the prior year. This policy is subject to annual review and approval by the Board of Directors and the RUS, and no cash retirements are to be made which would impair the financial condition of the Cooperative or violate any terms OfIts agreements. Since 2003, the amount of nonoperating margIns assIgned to members each year Is at the discretIon of the Board of Directors. Any unassigned nonoperating margins will become unallocated reserves and part of permanent equity.

Patronage capital amounts for the years ended December 31, 2024 and 2023, are as follows:

Assigned Unassigned Total BalanceDecember3l. 2022

$255,430

$ 99,12S

$354,555 Retirement of capital credits (5,109)

(5,109)

Currentyearmargins 19,137 5,150 24,287 BalanceDecember 31, 2023 269,458 104,275 373,733 Retirement of capital credits (5,389)

(5,389)

Currentyearmarglns 20,948 4,803 25,751 Balance December 31, 2024

$285,017

$109,078

$394,095

10. COMMITMENTS AND CONTiNGENCIES The Cooperative Is a party to a number of generation, transmission and distribution agreements, under which costs and/or revenues are recognized currently based upon the Cooperatives interpretations of the provisions of the related agreements. Differences between the estimates used In the consolidated financial statements and the final settlements are recorded In the year of settlement.

The Cooperative has entered into various coal purchase contracts with one to two.year terrns The estimated commitments underthese contracts as of December 31, 2024, is as follows:

Years Ending December31 2025

$36,268 2026 16,565 Total

$52,833 The Cooperative has been named as a defendant In various lawsuits and claims arising In the normal course of business. Although the outcome of these matters cannot be determined at the present time, management and legal counsel believe these actions can be successfully defended or resolved without a material effect on the consolidated financial position, results of operations or cash flows of the Cooperative 11.

EMPLOYEE BENEFITS Multlemployer Defined-Benefit Pension PlanPenslon benefits for substantially all employees are provided through participation in the National Rural Electric Cooperative Association (NRECA)

Retirement Security Plan (URS Plan). This is a defined benefit pension plan qualified under Section 401 and tax-exempt under Section 501(a) ofthe internal Revenue Code. Pension benefits are funded in accordance with the provisions of the RS Plan and are based on salaries, as defined, of each participant.

The Employee Retirement Income Security Act of 1974, as amended by the Multlemployer Pension Plan Amendment Act of 1980, imposes certaIn liabilities on employers who are contributors to multiemployer plans in the event of a plan termination or an employers withdrawal. These plans have not been terminated, nor has the Cooperative undertaken any plans to withdraw from participation.

Since the RS Plan is a multiemployer plan for accounting purposes, all plan assets are available to pay benefits of any plan participant. Separate asset accounts are not maintained for participating employers. This means that assets contributed by one employer may be used to provide benefits to employees of other participating employers. The Cooperative may be contingently liable for its share of the RS Plans unfunded vested liabilities.

The Cooperatives contributions to the RS Plan in 2024 and 2023 represented less than 5% of the total contributions made to the plan by all participating employers. Expense for the RS Plan was $9,422 in 2024 and $8,789 in 2023.

In the RS Plan, a zone status determination Is not required, and therefore not determined, under the Pension Protection Act (PPA) of 2006. In addition, the accumulated benefit obligations and plan assets are not determined or allocated separately by indMdual employer. In total, the RS Plan was over 80%

funded on both January 1, 2023 and 2022, based on the PPA funding target and PPA actuarial value of assets on those dates.

Because the provisions of the PPA do not apply to the RS Plan, funding improvement plans and surcharges are not applicable. Future contribution requirements are determined each year as part of the actuarial valuation of the plan and may change as a resuft of plan experience.

Postretirement Health Insurance ObligationCertain employees of the Cooperative retiring at or after age 55 are eligible to participate in a postretirement health care plan through age 65. Eligible dependents of the retired Cooperative employees are also eligible to participate in this plan through age 65. Retirees pay 100% of the premium amount for this coverage. The premium is based upon the combined medical claims experiences of all active employees and retirees. If premiums were determined based upon the medical claims experience of retirees only, the resulting premium for retirees would be higher. The difference between the premium paid by retirees and the potential actual premium amount is the basis for the postretirement benefit obligation. The Cooperative uses a December 31 measurement date for its plan. The postretirement health care plan is unfunded.

The accumulated postretirement benefit obligation (ARBO) and the amounts recognized in the consolidated financial statements as of and for the years ended December 31, 2024 and 2023, are as follows:

2024 2023 Amount recognized in the consolidated balance sheets:

Total accrued qualified and nonqualified benefit obligation

$ 3,875 S

Less current portion induded in accrued expensesother

_II87)

_i8)

Long-term portion S 3,688

$ 3,677 change in benefit obligation:

APBObeglnningofyear S 3,861 S 4,392 Servicecost 295 205 lnterestcost 179 207 Actuailal loss (276)

(557)

Benefltspald (183)

(386)

APBOend of year S 3,876 5 3,861 Funded status of planDecember3l

$(3,876)

$(3,861)

Accrued postretirement health insurance obligations recorded atyearend

$ 3,876

$ 3,861 Change In plan assets:

Employercontributlon (183)

(386)

Benefitspaid 183 386 5-Change In accumulated other wmprehenslve income:

Net Income at prior measurement date

$ 3,272

$ 2877 Actuarial assumption changes 277 557 Recognition in expense:

Amortization of prior service cost Amortization of unrecognized actuarial gain (196)

(162)

Accumulated other comprehensive Income

$ 3,53

$ 3,272 Components of net periodic postretirement benefit cost; Service cost-benefits attributed to service during the year 296 205 Interest cost on accrued postretirement health insurance obligation 179 207 Amortization of prior service cost Amortization of unrecognized actuarial gain (196)

(162)

Net periodic postretlrement benefit expense 279 250 Employer cash contributIons expected to be made to the plan during the fiscal year ending December 31, 2025, is $183. The amount of accumulated other comprehensive income expected to be recognized during the fiscal year ending December 31. 2025, Is an actuarial gain of $201 and amortization of prior service cost of $0. All prior service costs have been fully amortized.

For measurement purposes, a 5.42% and 475% discount rate were assumed for 2024 and 2023, respectively, to determine net periodic benefit cost, The 2024 and 2023 annual heafth care cost Increase assumed is 625% and 6.50%, respectIvely, decreasing gradually to 4A6% for 2043 and thereafter.

Estimated future benefit payments from the plan as of December 31, 2024, are as foliows December31 2025

$187 2026 257 2027 258 2028 269 2029 242 2030-2034 1,647 Defined-Contribution PlanDairyland has a qualified taxdeferred savings plan for eligible employees.

Eligible participants hired prior to January 1, 2020 may make pretax contributions, as defined, with the Cooperative matching up to 2.5% ofthe participants annual compensation. Eligible participants hired after December 31, 2019 may make pretax contributions, as defined, with the Cooperative matching up to 13% of the participants annual compensation. Contributions to this plan by the Cooperative were

$2,625 and $2,087 for 2024 and 2023, respectively.

Other PlansThe Cooperative offers key employees deferred compensation plans available through NRECA. The plans permit qualifying employees to defer a portion of their salary until future years. The accumulated deferred compensation balance Is not available to employees until termination, retirement or death.

All amounts of compensation deferred under the plans and all income attributable to those amounts (until paid or made available to the employee or other beneficiary) are solely the property and rights of the Cooperative (not restricted to the payment of benefits under the plan), subject only to the claim of general creditors. Participants rights under the plans are equal to those of general creditors of the Cooperative in an amount equal to the fair market value of the deferred account for each participant.

The related assets and liabilities, totaling $2,565 and $2,150 as of December 31, 2024 and 2023, respectively, are reported at contract value. which approximates fair value.

The Cooperative also provides employees with medical insurance coverage, vision and dental insurance coverage, shortterm and longterm disability, and life insurance, which are funded by employer and/or employee contributions. The Cooperatives costs related to these benefits were $10,618 and $9,197 for 2024 and 2023, respectively. The liability for these plans of $674 and $38 as of December 31, 2024 and 2023, respectively, are recorded in other accrued expenses on the consolidated balance sheets.

12.

RELATED-PARTY TRANSACTIONS The Cooperative provides electric and other services to Its class A members. The Cooperative received revenue of $404,498 and $403,930 in 2024 and 2023, respectively, for these service5. The Cooperative has accounts receivable from Its class A members of $38,202 and $34,250 as of December 31, 2024 and 2023, respectIvely.

The Cooperative has advances from class A members of $1,461 and $1421 as of December 31, 2024 and 2023, respectively, related to the prepayment program. Class A members have the option of paying their electric bill in advance, and In turn, the Cooperative pays the members Interest income. The Cooperatives interest expense related to the prepayment program was $153 and $262 for the years ended December 31, 2024 and 2023, respectively

13. ASSET RETIREMENT OBUGA1ONS An asset retirement obligation (ARO) is the result of legal or contractual obligations associated with the retirement of a tangible long-lived asset that results from the acquisition, construction, or development and/or the normal operation of a long-lived asset. The Cooperative determines these obligations based on an estimated asset retirement cost adjusted for inflation and projected to the estimated settlement dates and discounted using a credit-adjusted risk-free interest rate. Upon initial recognition of a liability for MO, the Cooperative capitalizes the asset retirement cost by increasing the carrying amount ofthe related long-lived asset by the same amount as the liability. The Cooperative allocates that asset retirement cost to expense using the straightline method over the remaining useful life ofthe related long-lived asset. The accretion of the obligation is recognized over time up to the settlement date. Any future change in estimate will be recognized as an increase or a decrease in the carrying amount of the liability for an ARO and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset.

The Cooperative determined that ft has AROs related to future removal and disposal of asbestos at Its power plants. There are no assets legally restricted for purpose of settling the ARO related to future removal and disposal of asbestos. The ARO balance related to the future removal and disposal of asbestos was $244 as of both December 31, 2024 and 2023.

In 2024, AROs were added for four landfill sites due to new environmental compliance requirements, including costs for additional wells and monitors to ensure groundwater safety. The inactive sites, JPM/Alma $265 and Genoa $321 recognized future expenses immediately, while the active Alma Off Site $466 will be amortized over Its useful life until March 2037. AdditIonally, $2,423 In expense for closing the inactive Stoneman landfill were recorded.

In total the balance as of December 31, 2024, is $3,718. The prior balance ending In 2023 was $244. The balance is recorded within Other Liabilities on the consolidated balance sheets.

The Cooperative has established a decommissioning trust to accumulate the estimated amounts necessary to decommisSion a nuclear power plant that the Cooperative formerly operated and the related Independent Spent Fuel Storage installation (ISFSI). The assets of this trust In the amount of

$2,209 and $2,168 as of December 31, 2024 and 2023, respectively, are outside the CooperativWs administrative control and are available solely to satisfy the future costs of decommissioning.

The Cooperative did not record a conditional ARO related to the dismantlement of the dam and drainage reservoir for the hydro generation plant at Flambeau, the removal of transmission lines In various corridors, and RockGen Energy Center because the Cooperative does not have sufficient information to estimate the fair value of the ARO.

14.

NUCLEAR REACTOR LicenseThe La Crosse Boiling Water Nuclear Reactor (IACBWR) was voluntarily removed from service by the Cooperative effective April 30, 1987. The Intent was to terminate operation ofthe reactor, and a possession-only license was obtained from the Nuclear Regulatory Commission (NRC) in August 1987.

LACBWR will remain in safe storage status {SAFSTOR) until the final stage of decommissioning of LACBWR, Involving dismantlement and decontamination, n be completed. In May 2016, the NRC approved transfer of the license to La CrosseSolutions LLC (Solutions) a subsidiary of EnergySolutions LIC. The license reverted back to the Cooperative in 2023 following completion of decommissioning activities. The Cooperative retains a license for its continued ownership of the spent fuel.

Nudear Waste Policy Act of 1982 (NWPA)Underthe NWPA, the United States pvemment is responsible for the storage and disposal of spent nuclear fuel removed from nuclear reactors. By statute and under contract, the United States government was to have begun accepting spent fuel in January 1998, but has not yet licensed and established a repository.

Due to the Governments breach of contract to store and dispose of IACBWR spent nuclear fuel0 prior to 2023 the Cooperative recovered LACBWR expenses from the Government through filing of legal actions in the United States Court of Federal Claims. In alternative to legal action through the court, In 2023, the Cooperative engaged the Governmenton entry into a settlement agreement whereby the Cooperative could submit and recover, and the Government could approve or deny, certain LABWR expenses. The settlement agreement remains under negotiation, but in the Interim the Government permitted the Cooperative to submit LACBWR expenses for 2019 through 2022 for potential reimbursement. The Cooperative submitted these LACBWR expenses to the Government on September 27, 2023, totaling $14,658. The Government has communicated to the Cooperative the submitted LACBWR expenses continue to be under review.

ISFSIThe Cooperative completed the temporary dry storage facility project located on the LACBWR site and completed the move of the LACBWR spent nuclear fuel to this ISFSI facility In September 2012.

The spent nuclear fuel will remain at the ISFS1 until it is able to be transferred to the government.

Annual ISFSI costs are recorded on an as incurred basis and incorporated into the annual budget and rate making process.

15. SUPPLEMENTAL DISCLOSURES OF CASH FLOW iNFORMATiON The statement of cash flows includes the following supplemental Information as of December 31,2024 and 2023:

2024 2023 Cash paid for Interest

$41,789

$40,497 Electric plant additions funded through accounts payable and accrued expenses 3,477 729 Electric plant additions under capital leases 4,951 5,177 16.

REVENUE FROM CONTRACTS WFFH CUSTOMERS Sales of electric energy consists of sales to members pursuant to long-term wholesale electric contracts Dairyland recognizes revenue based on the amount of energy delivered to each customer at agreed upon rates. The measurement of energy sales to customers is generally based on meter data, which Is collected through the last day of the month. At the end of each month. amounts of energy delivered to customers is recognized.

The Cooperative is an active participant in the MISC) Energy Markets, where generation is bid into the Day Ahead and Real Time markets and procure electricity for our wholesale customers and sell energy at prices determIned by the M1SO Energy Markets. Purchase and sale transactions are recorded using settlement information provided by MISO. Purchase transactions are accounted for on a net hourly positiOn. Net purchases in a single hour are recorded as purchased and interchanged power. Sales of excess energy transacted through MISO are recorded on a gross basis In other sales. For sales to the MISO Energy Markets, the Cooperative has no performance obligation until the energy is sold.

The Cooperatives members consist of Class A, D, and E members. Class A members purchase wholesale electric service and rates are set annually with approval by the Board of Directors. Contract term is determined by the Wholesale Power contract that Is In effect until December 31, 2062. The contract automatically extends an additional (2) years in each odd-numbered year beginning January 1, 2021 unless either the Cooperative or member give notice no later than the preceding September 1 of its election not to extend further. class D member revenues are based on various contracts with wholesale municipal members. class E member revenues primarily reflect sales to MISO.

The following table disaggregates revenue by major source for the years ended December 31,2024 and 2023:

2024 2023 Class A

$404,498

$403,930 Class D 37,842 29,057 Class F, including MISO 8,163 33,191 Other sales 32,689 25,131 Total

$483,192

$491,309

17. GRANTS As of December 31, 2024, the Cooperative has been awarded two government grants to help support strategic initiatives. Below is an overview of the financial activity and key details related to these grants:

Toti knount Anount Fnwing Aed

• i Relntursed aice Mddle IMe Boadband Infrastructure Gant 14M90 3385 14.

Th&gyInno.etion GantRogam Gent 188 Middle Mile Broadband Infrastructure Grant Administering Agency: National Telecommunications and Information Administration

Purpose:

The Cooperative will Implement its Tn-State Fiber Deployment Project (TSFDP). which involves retrofitting 247 miles of fiber optic communication networks using primarily optical ground wire (OPGW) on the Cooperatives existing WI, MN, and IA transmission lines over three years Through the TSFDP, last-mile providers In these regions will gain enhanced capadt to reath underserved and unserved residents at affordable rates, helping to bridge the nations digital divide, Enerv [nnovation Grant Proaram (EIGPI Administering Agency: Public Service Commission of Wisconsin, Office of Energy Innovation

Purpose:

The Cooperative will integrate microgrid management with its Demand Response Management System by interconnecting two existing microgrids owned by the Bad River Tribe, enabling these resources to benefit the grid and provide economic advantages to the Tribe. This pilot project will help the Cooperative and its Members gain insights and plan for future microgrid integration.

AccQunting Treatment for Grants The Cooperative accounts for reimbursement grants using the Contribution in Aid of Construction (CIAC) approach. Grant expenditures are recorded as reductions in the carrying amount ofthe constructed assets upon fulfillment of grant conditions. This accounting treatment does not fall under ASC 606, Revenue from Contracts with Customers, as reimbursement grants are considered non-exchange transaction. As of December 31,2024, a receivable In the amount of $188 was established for the EIGP grant upon meeting the grant conditions, reflecting the expected future reimbursement. Conversely, no receivable has been recorded for the Middle Mile Grant Program, as the Cooperative has not yet met the conditions required for reimbursement. The Cooperative is actively working towards fulfilling the remaining conditions of the grant to secure the associated reimbursement. The form of reimbursement for both projects will be in cash.