Financials

Years Ended December 31, 2025 and 2024

	2025	2024
Miles of Line in Service	10,853	10,757
Number of Meters in Place	181,660	178,285
Average Number of Meters per Mile	16.7	16.6
Average Number of New Connections per Month (net of retired service)	279	228
Total Megawatt-Hour Sales
Residential	2,294,433	2,204,120
Commercial	1,215,626	1,194,808
Street lights	6,100	7,131
Transmission	34,437	35,195
Total sold to members	3,550,596	3,441,254
Property Taxes ($000 omitted)
Calvert County	1,839	1,898
Charles County	5,834	5,949
Prince George’s County	833	841
St. Mary’s County	2,838	2,692
Total property tax expense	11,344	11,380
Loans to Date ($000 omitted)
Total amount drawn on loans	1,313,326	1,313,326
Less total amount repaid on loans	(662,300)	(632,487)
Total due to lenders	651,026	680,839
Payments Made
Principal	29,812	29,877
Interest and other fees	25,070	26,194

December 31, 2025 and 2024 ($000 omitted)

	2025	2024	Increase (Decrease)
Operating Revenue
Sales of electricity	561,809	477,941	83,868
Other	60,037	52,613	7,424
Total operating revenue	621,846	530,554	91,292
Operating and Interest Expenses
Purchased power and power production	348,262	290,116	58,146
Transmission	4,624	4,715	(91)
Distribution – operation and maintenance	40,829	39,523	1,306
Customer accounts, service and information	51,796	45,046	6,750
Administrative and general	50,830	49,920	910
Depreciation and amortization	52,650	50,714	1,936
Taxes (property, sales, payroll, etc.) and other	21,530	20,406	1,124
Interest on long-term debt and other interest	33,137	30,787	2,350
Total operating and interest expenses	603,658	531,227	72,431
Net operating margins (loss)	18,188	(673)	18,861
Other patronage allocations and nonoperating margins	6,237	5,381	856
Net margins	24,425	4,708	19,717

December 31, 2025 and 2024 ($000 omitted)

	2025	2024	Increase (Decrease)
Assets (What we own)
Cash and temporary investments	11,105	7,348	3,757
Accounts receivable, net	86,385	68,140	18,245
Materials and supplies inventory	33,670	28,507	5,163
Prepaid, deferred, regulatory and other assets	152,986	149,735	3,251
Investments in associated organizations and other	26,255	26,083	172
Net utility plant	1,009,727	967,338	42,389
Nonutility property	3,062	3,176	(114)
Total assets	1,323,190	1,250,327	72,863
Liabilities (What we owe)
Accounts payable and other accrued liabilities	101,823	87,493	14,330
Notes payable	174,500	138,500	36,000
Customer deposits	8,114	6,836	1,278
Deferred credits	51,467	15,032	36,435
Long-term debt
CFC	181,304	189,993	(8,689)
CoBank	348,210	365,489	(17,279)
Private Placement	114,144	117,219	(3,075)
FFB	6,975	7,733	(758)
Total liabilities	986,537	928,295	58,242
Members’ Equity (Net worth)
Capital and accumulated margins	377,069	353,653	23,416
Accumulated other comprehensive loss	(40,416)	(31,621)	(8,795)
Total liabilities and members’ equity	1,323,190	1,250,327	72,863

The full financial report is available at smeco.coop/annualreport.

Letter from the President
and Chairman of the Board