It is my distinct honor to present this year’s Annual Report on behalf of America’s first rural electric cooperative. Over the past year, ACE Power has experienced meaningful growth, embraced positive change, and celebrated numerous accomplishments. Yet through it all, our unwavering commitment to providing reliable and affordable electric service remains at the core of everything we do.
We are especially proud when our efforts are recognized by the communities we serve. This year, we were honored to receive two prestigious awards that reflect the dedication of our entire team. In January, ACE Power received the GEM Award—Going the Extra Mile—from The Alliance, Alcorn County’s chamber of commerce and economic development organization, in recognition of our continued investment in the region’s economic progress. Additionally, ACE Fiber was named Business of the Year by the Union County Development Council, highlighting the growing impact of our broadband services in New Albany and beyond. These honors are a testament to the collective efforts of our employees and the values that define ACE Power and ACE Fiber.
Community engagement remains a cornerstone of our mission. Over the past year, we have made significant investments in public parks and recreational programs in both Corinth and New Albany—supporting youth sports, improving facilities, and enhancing public spaces. We proudly served again as the premier sponsor of the Slugburger Festival and supported every Main Street Corinth event, from the summer concert series to the beloved Christmas Parade. In New Albany, we sponsored several high school athletic programs, contributed to the Spring Gala, and provided uniforms for all sports teams playing at BNA Park. We also proudly sponsored both the Corinth Lighthouse Classic and, for the first time, the New Albany Hotbed Classic basketball tournament. These investments underscore our commitment to improving the quality of life in the communities we serve.
This year also saw us expand our impact through strong partnerships. Working with the Tennessee Valley Authority (TVA) and CoBank, we secured multiple matching grants that benefited key community organizations including the United Way of Corinth and Alcorn County, the Corinth School District Foundation, and the Alcorn School District Foundation. One notable grant funded the Home Uplift Program, improving residential energy efficiency for qualifying members. In total, these initiatives generated over $124,000 in direct community support.
In June, we proudly launched the inaugural class of our newly established A.C.E. Leadership Academy. A.C.E. stands for Action, Collaboration, and Empowerment—the core principles that guide this program.
The academy is designed to help employees discover the many ways they can lead within our organization, regardless of their position. Participants gain a behind-the-scenes perspective of ACE Power and ACE Fiber, with direct access to key decision-makers to better understand our operations and long-term vision. They also visit local industries to gain valuable insight into the economic drivers of our community.
A highlight of the program is an exclusive tour of two TVA generation facilities: Wilson Dam in Florence, Alabama, and Browns Ferry Nuclear Plant near Athens, Alabama.
We are proud to introduce the members of Cohort 1: Julie Cottrell, Drew Dickerson, Bud Scott, Nikki Walker, Blake Briggs, Eddie Joe Davis, Logan Johnson, Cameron Aultman, Lori McIntyre, and Marci Gurley.
We extend our sincere appreciation to these emerging leaders for their dedication and commitment to excellence within our cooperative.
ACE Power continued to answer the call for mutual aid across the region. In late September and early October 2024, we deployed crews to Florida and Georgia to assist Talquin Electric, Central Florida Electric, and Satilla Electric following Hurricane Helene. In December, our crews aided Central EPA in Carthage, MS after a damaging winter storm, and again responded in February to assist East Mississippi EPA in Meridian. Most recently, in June, we supported Tombigbee EPA’s recovery efforts in Tupelo. I am incredibly proud of the employees who volunteered their time and skills to help these communities and grateful to their families for their sacrifices. Our prayers remain with all who are still rebuilding.
Operationally, ACE Power continues to outperform industry benchmarks. Our system-wide line loss remains below 3.5%, significantly better than the TVA cooperative average of 5.32%. Line loss—the difference between the power we purchase and what is delivered to members—is a direct measure of system efficiency and reflects the outstanding work of every department, from right-of-way maintenance and line crews to engineering, metering and billing. ACE Power is proud to maintain one of the lowest line losses in the Tennessee Valley.
While we celebrate these successes, we are also focused on the future. Construction is underway on our new Industrial Substation, and plans are in motion to replace our District Substation on Cox Street. Though inflation has driven labor and material costs roughly 33% higher than our 2024 estimates, these substations are long-term investments, and their costs will be amortized over time, minimizing short-term rate impacts for our members.
Our financial position remains strong, with more than $147 million in assets and less than $20 million in long-term debt. As we move forward with capital improvements, we will continue to leverage our equity position to access low-interest, long-term financing to support these essential upgrades.
The remaining $20 million in current debt stems from our successful $37 million broadband deployment in Alcorn County. That investment has yielded substantial returns—ACE Fiber now holds a 60% market share in Alcorn County and serves more than 600 business locations. We also expanded service into New Albany through a partnership with New Albany Light, Gas & Water. While still growing, we’re nearing a 20% market share in that market and gaining ground daily. Our broadband division generates more than $11 million in annual revenue, with over $2.5 million in recurring lease and pole attachment income supporting ACE Power operations and helping offset shared fixed costs.
ACE Fiber was created with two clear objectives: deliver broadband access to underserved areas and provide a diversified revenue stream to help offset electric rate increases. We have succeeded on both fronts. Since 2015, ACE Power has raised rates only one time—a 3.1% increase in October 2023. Over the past 20 years, inflation-adjusted rate increases have totaled just 16%, compared to national inflation of 66%. Nationwide residential electric rates range between $0.13 and $0.17 per kilowatt hour. At ACE Power, our average effective rate remains just $0.12 per kilowatt hour, delivering exceptional value to our members.
This performance would not be possible without our generation and transmission partner, TVA. Together, we demonstrate the enduring strength of the public power model—a model now under threat by those seeking political gain without understanding its legacy or importance. TVA and ACE Power were both born out of necessity, serving the areas that private utilities overlooked. This model has enabled rural communities to thrive, and we must work to preserve it for generations to come.
TVA is aligning with President Trump’s vision of unleashing American energy, taking steps toward next-generation nuclear power. TVA was the first utility in the nation to apply for a construction permit for a Small Modular Reactor (SMR) at the Clinch River site in Tennessee. While this is a promising advancement, it carries significant uncertainty and a steep estimated cost of $4–$6 billion for just 300 MW—substantially more expensive than traditional natural gas generation.
It is the position of ACE Power that our members should not bear the entire financial burden of pioneering this new nuclear technology. However, with TVA holding the permit and site, the path forward is clear—what’s needed is federal support. We call on Congress and the current administration to provide dedicated funding for TVA to build the country’s first SMR. Doing so would allow TVA to lead the way and help lower the cost for future deployments nationwide.
AI and data center development have expanded dramatically across our region. With Xai, Amazon Web Services, and Compass Datacenters announcing investments totaling billions of dollars in Mississippi and the Tennessee Valley, we are facing both unprecedented opportunities and serious challenges. Chief among these challenges is the demand for electric power—demand that far exceeds our current generation capacity.
The critical question is: who will pay for the new generation resources required to meet this demand? These facilities are being built in parallel with a growing population in the Tennessee Valley, but it is my firm belief that ACE Power members should not shoulder the cost of constructing new generation. The financial burden on our ratepayers would be significant and unsustainable.
One potential solution is to allow large data centers to develop their own generation assets and sell any excess power back to TVA or to local power companies such as ACE Power. This approach is already being implemented in Memphis by Elon Musk and could serve as a model for the rest of our industry. If structured correctly, this solution would allow us to move forward while protecting the public power model and ensuring that ACE Power’s certificated service territory remains secure.
Looking ahead, we know the only constant is change. But I can assure our members that ACE Power will meet every challenge with a steady hand and a clear focus: delivering safe, reliable, and affordable electric service.
With sincere appreciation,
Sean McGrath