1. CFC’s Key Ratio Trend Analysis (KRTA)
The KRTA report was first developed in 1975 by CFC and only included 37 ratios. Since then, it has grown to 145 ratios.
CFC obtains the 15 page Annual Form 7 report that we complete each March - from over 800 Coops, and they compile the data into a consistent way for us to evaluate our Coop’s performance and trends.

2. Structure of Ratios PEER GROUPS CATEGORIES U.S. Total Base Group
Fixed Expenses
State
Financial Ratios
Total Expenses
Consumer Size
Revenue & Margins
Employee
Major Current Power Supplier
Sales
Growth
Plant Growth
Controllable Expenses
Plant
145 RATIOS TOTAL
5 peer groups – shown in red
US Total – largest group – shows the median value for all 800+ distribution coop nationally and where each coop ranks within group
REFRESH MEMORY - MEDIAN IS MIDDLE VALUE, NOT AVERAGE
- MEDIAN reduces volatility caused by extreme high and low values
State – shows the median value of distribution coops within a state or state grouping.
By that, I mean that there are Coops in 47 states, but there are only 38 groupings because some states are aggregated for reporting purposes.
NC is reported as state all on it’s own.
US Consumer Size – median value for all distribution coops of a certain size no matter where in the US. I have tried to get geographical locations from CFC, but they have not been able to provide this data.
In 2018, there were 14 groupings.
Grouping #1 included Distribution Coops <1000 consumers,
Grouping 14 included Distribution Coops >100,000 consumers
Our group ,#6, included Distribution Coops with between ,999,
so we are one of the largest within that group with 11,345 consumers.
Major current power supplier – provides the median value for all distribution cooperatives served by the same power supplier and its rank in that group
Plant Growth - Shows median value for all distribution cooperatives in nation with similar five year rate of growth in TUP and it’s ranking in that group.
The state peer group and the power supplier group provide greater perspective on how we compare because of similar weather, pricing, tax, and regulations., but these values and appear skewed in some ratios – for example the median value of number of employees in state and power supply group is 70 and we have 36.

3. 2018 KRTA - Layout Year US Total State Grouping Consumer Size
US Total
State Grouping
Consumer Size
Current Power Supplier
Plant Growth (13-18)
System Value
Median NBR
Rank
Median
NBR
RATIO 1 - AVERAGE TOTAL CONSUMERS SERVED
2014
11,612
13,775
813
453
31,238 26 24
10,251 88 8
29,010 22
18,476
258
169
2015
11,628
14,007
811
452
31,423
10,380 6
29,114
17,013
253
161
2016
11,482
14,310
809
463
31,563
10,425 83 12
29,215
14,581
151
2017
11,221
14,362
475
31,767
10,348 86 21
29,371
15,864
239
148
2018
11,345
14,457
814
473
32,031
10,443 20
29,581
12,730
164 90
RATIO 2 - TOTAL KWH SOLD (1,000)
235,446
302,457
484
508,547
200,053 28
494,593
351,829
168
232,225
298,933
485
499,216
196,376 30
489,799
325,988
162
223,857
304,803
489
507,476
190,682
496,928
302,178
155
224,159
308,821
495
497,749
190,896 29
479,679
312,477
150
238,684
329,946
492
532,565
209,171
517,181
276,026
RATIO 3 - TOTAL UTILITY PLANT (1,000)
71,876.08
78,452.15
444
167,818.06
55,184.04 25
145,692,21
92,572.75
154
74,021.03
81,534.62
172,775.33
58,353.53
150,491.15
89,300.29
76,402.47
85,508.06
455
178,215.13
62,101.24
153,273.89
80,552.67
135
78,403.38
88,619.70
461
183,907.02
61,528.29
156,981.92
86,622.00
137
79,662.02
91,752.01
468
188,394.54 23
63,278.07
164,960.31
79,013.41 80
The KRTA provides 5 years of our historical data. Each ratio has a ranking of 1 to the total in that peer group. The results are subject to interpretation – Sometimes #1 is a favorable ranking and sometimes it’s an unfavorable ranking. It depends on the type of ratio and each Coop’s strategic goals which varies and impacts the interpretation of the results.
Year – Always in ascending order,.
System Value - your cooperatives actual values
Peer groups – each peer group has 3 values:
Median – median (middle) value for that peer group
NBR – number of cooperatives reporting in that peer group.
Rank – your cooperatives rank within that peer group.
The highest in each group is always first regardless of ratio definition, but keep in mind that interpretation can be favorable or unfavorable – depending on ratio and each coop’s individual strategic goals.
In addition to the KRTA having long history of helping Coops to evaluate their performance, the ratios are presented to show a low volatility because they use median values instead of averages – this gets rid of the extreme highs and lows within the 5 peer groups.

4. Structure of Ratios PEER GROUPS CATEGORIES 145 RATIOS TOTAL U.S. Total
Base Group
Fixed Expenses
State
Financial Ratios
Total Expenses
Consumer Size
Revenue & Margins
Employee
Major Current Power Supplier
Sales
Growth
Plant Growth
Controllable Expenses
Plant
145 RATIOS TOTAL
10 categories – shown in red
Base – basically key characteristics used in 55% of ratios. Includes # consumers served, kwh sold, Total Utility Plant, # employees, miles of line
1-5
Financial – commonly used financial ratios such as TIER, Equity as % Assets, return on equity and current ratio.
6-32
Revenue/Margins – helps user analyze both revenue and margins in greater detail – kwh sold, # consumers, rate groups
33-59
Sales – provides greater detail of kwh usage among rate classes. Presented as either kwh usage per month or % of kwh sold.
60-76
Controllable Exp – closer look at operating expenses from form 7. Management has some degree of control over these expenses. (O&M, A&G, Billing/CSR)
storrn not covered by FEMA - still in O&M
Fixed Expenses – closer look at the operating expenses from form 7 – these costs are fixed because they HAVE to be incurred for operations. (Power, Int, Tax)
88-102
Total Expenses – Explores total cost of services by including all expenses – controllable and fixed. All from Form 7
Employees – Labor is 2nd largest expense after power costs. Smaller coops still must have enough employees to operate.
ratio 4 mediam emp in state 70 ours 36
Growth – analyzes coop’s growth in terms of consumers, utility plant, kwh sold and total capitalization.
Plant – useful for monitoring the cooperatives investments and how it compares to other peer groups.
I haven’t included ratios from each group, rather, I included ratios to illustrate the types of comparisons and analysis that can be made from various random ratios.

5. Equity as % of Assets
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO EQUITY AS A % OF ASSETS
2014
34.03
43.92
813
660
37.97 26 19
46.63 88 78
39.09 24 18
43.74
258
216
2015
34.39
44.23
811
659
37.86
46.83 76
38.21 17
45.45
253
217
2016
34.30
44.83
809
682
39.05
47.40 83
39.80 16
45.12
222
2017
37.01
45.27
628
37.54 15
47.73 86 73
38.40
46.05
239
189
2018
41.86
45.62
814
523
39.81 9
47.05 61
40.27
48.05
164
116
This is the Equity percentage that you see each month in your Board Report.
- Equity represents the percent of total assets the member actually owns
- This Financial ratio measures the extent to which the cooperative’s consumers have financed plant and other assets with their own funds, as distinguished from assets that were financed with borrowed capital. (RUS, FFB, CFC, Cobank)
Over the past 5 years, it has been our goal to increase the Equity, as seen here and on the next slide.
We have not borrowed from FFB/RUS since 7/2016
Refinanced remaining RUS thru CoBank at end of 2016
Compare our value to state and power supplier group
Extra:
Notice that the power supply group has 24 members as opposed to the state group with 26:
There are 4 coops in the state that either purchase some or no power from statewide…these are:
1) Energy United
2) Blue Ridge
3) Rutherford 4)

6. Equity as a % of Assets 60.00 50.00 40.00 30.00 20.00 10.00 RATIO 16
10.00
20.00
30.00
40.00
50.00
60.00
RATIO 16
---
EQUITY AS A % OF ASSETS
NC016
State
Size
Supplier
Ver
2018 KRTA Data
- large blue vertical bars depict EMEMC’s values.
- green line depicts NC power supplier values.
- yellow line depicts State grouping values
- orange line depicts national consumer size values
For this ratio, it is favorable to be ranked higher, depending on the Cooperative’s goals and strategies.
We’re trying to build equity, so we interpret the results to be favorable.

7. Blended Interest Rate
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO BLENDED INTEREST RATE (%)
2014
4.42
4.28
806
333
4.47 26 15
4.35 87 39
4.43 24 13
4.40
258
124
2015
4.26
4.13
804
340
4.25
4.18 41
4.21 11
252
126
2016
3.57
4.06
801
605
4.15 22
4.09 81 66
4.12 20
4.08
253
199
2017
3.96
807
348
4.02 12
4.01 84 38
4.00 10
4.03
238
117
2018
3.82
3.98
808
483 16 48
3.91 14
163
109
This financial ratio measures the cost of long term borrowed funds, both RUS and other/supplemental funds.
This ratio shows the blended cost of LTD, and is weighted to reflect the respective amounts of LTD at each interest rate. Cobank is now our largest lender…CFC has
highest interest rates and we have least amount funded with them – mostly old debt … they were a portion of concurrent loans with
RUS and cannot be refinanced or paid off early without penalty.

8. Blended Interest Rate
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
RATIO 23
---
BLENDED INTEREST RATE (%)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
For this ratio, we believe that it is favorable to be ranked lower, because a lower interest rate on LTD is more favorable than a high interest rate.
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

9. Long Term Debt as % of Assets
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO LONG TERM DEBT AS A % OF TOTAL ASSETS
2014
58.45
43.08
806 67
47.23 26 2
40.65 88 4
46.96 24
44.27
257 15
2015
57.11
43.71
805
47.65
42.04 7
47.35
42.51
252 21
2016
55.42
43.16
803
106
46.71
41.15 82 5
45.78
42.22
253 29
2017
53.27
42.12
808
134
45.61
41.16 84 8
45.47
41.74
238 38
2018
49.53
41.37
807
221
43.92 6
41.42 17
43.31
38.62
163 33
10.00
20.00
30.00
40.00
50.00
60.00
70.00
RATIO 19
---
LONG TERM DEBT AS A % OF TOTAL ASSETS
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Another Financial Ratio…
This is an example of the type of “comparison” ratios that encouraged CFC to increase their number of ratios, so they could provide information for further analysis in different ways……by % assets, kwh sold, per consumer.
Compared to our previous years, 2018 is a favorable year,
but this ratio is not as favorable when compared to other Coops in our state, because we have higher amount of debt.
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

10. Long Term Debt Per KWH Sold
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO LONG TERM DEBT PER KWH SOLD (MILLS)
2014
158.16
110.81
806
191
122.70 26 5
116.75 88 18 24
108.54
257 56
2015
161.17
116.60
805
221
128.25 8
119.26
126.18 7
111.09
252 57
2016
168.35
121.14
803
207
125.14 6
120.59 82 22
123.92
116.96
253 61
2017
160.85
120.95
808
259
124.54 9
123.49 84 29
121.59
238 68
2018
138.93
115.12
807
309
121.23 11
118.69 34 10
103.74
163 50
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
RATIO 20
---
LONG TERM DEBT PER KWH SOLD (MILLS)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Ratio 20: LTD per KWH Sold measures the portion of each kwh sold funded by LTD
We appear among the top 1/3 to ½ in our state and power supply grouping – we had similar weather to these groupings
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

11. Long Term Debt per # Consumers
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO LONG TERM DEBT PER CONSUMER ($)
2014
3,206.91
2,293.78
806
197
2,272.39 26 2
2,194.99 88 16 24
2,191.68
257 45
2015
3,218.74
2,361.73
805
213
2,247.59
2,321.96 20
2,227.00
252 41
2016
3,282.24
2,420.17
803
212
2,252.39
2,411.67 82 19
2,299.75
253 50
2017
3,213.27
2,439.14
808
229
2,270.44
2,424.59 84 18
2,304.71
238 47
2018
2,923.00
2,436.25
807
288
2,375.68 5
2,348.01 25
2,140.21
163 40
500
1,000
1,500
2,000
2,500
3,000
3,500
RATIO 21
---
LONG TERM DEBT PER CONSUMER ($)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Ratio 21: Long Term Debt per Consumer – Measures each member’s share of the cooperative’s LTD
Notice here, that even though our 2018 is more favorable than 2014, but that we still have a high debt ratio
Ours LTD looks so high for two reasons:
1) In earlier years, we borrowed as much as we could per the work plan. (cheap $) and invest it in Cushion of credit where we’d make 5% interest.
2) We have fewer members to spread the debt over
We haven’t borrowed since 2016 in order to build equity .
RATIO AVERAGE TOTAL CONSUMERS SERVED ,
, , , ,
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

12. Average Consumers Per Mile
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO AVERAGE CONSUMERS PER MILE
2014
7.93
6.02
812
250
8.94 26 20
5.39 88 17 24 18
6.10
258 84
2015
7.91
6.00
810
255
9.02
5.37
6.25
253 92
2016
7.79
6.03
808
263
9.03
5.38 83
5.98 85
2017
7.58
6.08
289
9.08 86 19
6.12
239
2018
7.65
6.14
814
287
9.10
6.71
164 59
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
RATIO 125
---
AVERAGE CONSUMERS PER MILE
NC016
State
Size
Supplier
Ver
2018 KRTA Data
To illustrate our One of the growth ratios:
Density information (Ratio 125) Average Consumers Per Mile
We have a low density rate, or a low number of consumers per mile of distribution line..
- We have 7.65 compared to the median rate in the power supply group of 9.10
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

13. Total Operating Revenue per KWH Sold
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO TOTAL OPERATING REVENUE PER KWH SOLD (MILLS)
2014
119.01
112.78
813
304
118.28 26 13
118.76 88 43 24 12
112.08
258 99
2015
117.28
112.29
811
334
117.83 15
116.96 44
117.40
111.40
253
105
2016
118.31
112.77
809
320
118.25
119.44 83
118.05
113.03
2017
123.29
115.16
294
120.62 11
120.99 86 42
115.61
239 89
2018
126.80
113.82
814
228
123.41
118.19 36
123.11
115.35
164 53
112.00
114.00
116.00
118.00
120.00
122.00
124.00
126.00
128.00
RATIO 33
---
TOTAL OPERATING REVENUE PER KWH SOLD (MILLS)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Revenues & Margins Ratios
33 – Total Operating Revenue per kWh sold - Measures all revenue generated from the total operations of he system on a kWh basis.
Our revenues appear higher, but not far off in comparison with the state and power supplier groups in 2017 and 2018 in this graph, probably due to our recent rate adjustment in 2017, plus the surge in kwh sales, (weather) and regaining consumers. (This should become more even in future years as costs catch up and exceed projections from the load forecast.)
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

14. Total Operating Revenue per Consumer $
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO TOTAL OPERATING REVENUE PER CONSUMER ($)
2014
2,413.07
2,320.93
813
360
2,095.06 26 5
2,267.08 88 36 24
2,246.88
258 93
2015
2,342.15
2,272.11
811
2,109.06
2,239.75 38
2,179.85
253 95
2016
2,306.61
2,260.18
809
380
2,093.04
2,262.44 83 41
2,189.33
102
2017
2,462.87
2,275.95
309
2,023.16 3
2,357.81 86 33
2,172.81
239 75
2018
2,667.69
2,386.87
814
277
2,190.19
2,416.10 30
2,192.85
2,271.98
164 47
500
1,000
1,500
2,000
2,500
3,000
RATIO 35
---
TOTAL OPERATING REVENUE PER CONSUMER ($)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Revenue & Margins Ratios
#35 Total Operating Revenue per Consumer $
Measures each member’s contribution to revenues generated from all consumer classes and other electric and non-electric revenue sources of the Coop.
We’re small Coop based on comparison of others in state and power supply group (reference ratio #1 & #125 have less consumers/$ to spread over)
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

15. Total Controllable Expenses Per KWH Sold
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO TOTAL CONTROLLABLE EXPENSES PER TOTAL KWH SOLD (MILLS) (SAME AS RATIO #103)
2014
28.76
22.20
813
196
24.14 26 9
24.88 88 30 24 8
22.72
258 55
2015
28.05
23.16
811
259
24.98
25.49 37
23.68
253 84
2016
32.05
23.56
809
173
26.93 6
25.54 83 28 5 52
2017
31.81
24.38
204
26.69
27.18 86 29 7
25.07
239 60
2018
29.85
23.80
814
241
26.74 11
26.85 34 10
24.95
164 58
5.00
10.00
15.00
20.00
25.00
30.00
35.00
RATIO 86
---
TOTAL CONTROLLABLE EXPENSES PER TOTAL KWH SOLD
(MILLS) (SAME AS RATIO #103)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Controllable Expenses Category -
Ratio 86: Total Controllable Expenses per Total KWh sold – measure of the total controllable expenses on a kWh sold basis.
Controllable Expenses include O&M, A&G, Consumer accounts and service and information expenses and sales expense. (O&M, A&G, Billing/CSR)
- Even though we are small, we appear more consistent here because we have good amount of kwh sold w industries, farms etc. for our size
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

16. Total Controllable Expenses per Consumer
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO TOTAL CONTROLLABLE EXPENSES PER CONSUMER ($) (SAME AS RATIO #104)
2014
583.19
471.98
813
190
445.95 26 3
495.19 88 18 24
451.30
258 38
2015
560.15
482.46
811
245
453.70
504.25
457.32
253 57
2016
624.85
494.06
809
166
462.32
511.07 83 16
468.33
475.27 36
2017
635.45
496.01
173
453.90 2
514.07 86
454.80
484.66
239 33
2018
627.91
514.50
814
217
478.81
529.80 23
483.75
525.55
164 46
100
200
300
400
500
600
700
RATIO 87
---
TOTAL CONTROLLABLE EXPENSES PER CONSUMER ($) (SAME AS
RATIO #104)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Ratio 87: Total Controllable Expenses per Consumer – Measure of the total controllable expenses on a per-consumer basis.
Controllable Expenses include O&M, A&G, Consumer accounts and service and information expenses and sales expense.
Notice that the per kwh ratios are closer in reference to other peer groups shown than the per consumer --- because of our low density… reference growth ratio 125 density ours 7.65 state 9.10
Green – NC Power Supplier
Yellow – State Peer group
Orange – National Consumer Size

17. Annual Growth in KWH Sold
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO ANNUAL GROWTH IN KWH SOLD (%)
2014
2.16
2.49
811
432
3.95 26 22
2.35 88 46 24 20
2.62
258
138
2015
-1.37
-1.91
354
-0.97 16
-1.88 37 15
-2.01
253
103
2016
-3.60
0.48
806
697
-0.28
0.41 83 67
-0.33
0.30
221
2017
0.13
-1.02
808
319
-1.50 3
-0.45 86 35
-1.79 2
-1.49
239
2018
6.48
6.49
810
406
7.62 21
5.86 38
7.66
6.44
164 81
(6.00)
(4.00)
(2.00)
2.00
4.00
6.00
8.00
10.00
RATIO 114
---
ANNUAL GROWTH IN KWH SOLD (%)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Ratio 114: Annual Growth in kWh sold (%) – Compares current year total kWh sales to prior years’ total kWh sales
-This ratio is greatly affected by weather and storms, acquiring or losing load, etc. Last year was a good year in kwh sales for us, but also for all Cooperatives per a recent CFC Article.
-Understanding growth in kWh sales is important for budgeting and long-term financial forecasting….2018 is more of an abnormality.
It was a great KWH year for all Coops nationwide plus we were getting back some of the members we lost during storms.
Ask Eddie when our new loads came on?

18. Percentage Annual Growth in Number of Consumers
Year System Value US Group State Group Consumer Size Group Power Supplier Plant Growth
RATIO ANNUAL GROWTH IN NUMBER OF CONSUMERS (%)
2014
-0.24
0.52
811
741
0.42 26 24
0.41 88 72 22
258
234
2015
0.14
0.56
651
0.61 23
0.36 60
0.57 21
0.54
253
200
2016
-1.26
0.62
806
790
0.63 25
0.44 83
0.55
248
2017
-2.27
0.64
808
801
0.91
0.47 86 85
0.67
239
237
2018
1.11
0.60
810
225
0.86 6
0.51 18 5
164 35
(6.00)
(4.00)
(2.00)
2.00
4.00
6.00
8.00
10.00
RATIO 114
---
ANNUAL GROWTH IN KWH SOLD (%)
NC016
State
Size
Supplier
Ver
2018 KRTA Data
Ratio 115: Percentage Annual Grown in Number of Consumers – Measures the annual growth in the total average of consumers served vs the prior year.
It is called total average because we take total consumers in Jan plus the total consumers in Dec and divide by 2…explains that previous years show effects from storms like Hurricane Matthew shows some recovery from that.

19. Please feel free to ask questions!!
Thank You!
Please feel free to ask questions!!
I appreciate the opportunity to share this data with you. This is just a glimpse of the entire KRTA which includes 145 ratios!
Please note that parts of this presentation was taken from the following sources:
1) CFC KRTA Report and Definitions Guide.
2) CFC KRTA Assessment Level 1 and 2 Class Guides.