CFC’s 2023 KRTA Results Continue To Show Co-ops’ Resiliency

CFC released the 2023 Key Ratio Trend Analysis (KRTA) report today, providing an in-depth look at the financial and operational performance of 812 electric distribution cooperatives for the year ending Dec. 31, 2023. The results show that, despite a high interest rate environment, electric cooperatives continued their consumer and utility plant growth and have maintained strong financial metrics, including improved margins. This underscores their sustained financial health and operational efficiency.

“Rural electric cooperatives’ disciplined management has enabled the network to be resilient in the face of elevated interest rates, moderating supply chain disruptions, inflation and power costs while maintaining their focus on providing affordable, reliable and sustainable power in their local communities,” CFC Senior Vice President and Chief Corporate Affairs Officer Brad Captain said. 

After peaking at 1% in 2022, consumer growth tapered to 0.89% last year, with approximately 88% of cooperatives showing increases, including notable pockets of greater than 2% consumer growth in Florida, Idaho and Utah.

Utility plant growth continued its blistering pace, which exceeded 5% for the first time since 2008. 

“Despite increasing costs, electric cooperatives continue to make investments in plant and utility infrastructure to maintain their focus on improving the quality of life in the communities they serve,” CFC Senior Vice President and Chief Banking Officer Joel Allen said.

2023 KRTA ratios also showed that inflationary pressures have been abating, especially with power costs. Although costs increased over 2022 levels, cooperatives were able to manage them, as demonstrated by a decrease in power costs as a percent of revenue. This is significant because, unlike in 2022, cooperatives were able to generate higher margins in 2023, which produced healthy coverage ratios. 

In another positive sign, both accounts receivable over 60 days and write-offs continued at their pre-pandemic lows. Accounts receivable remained at 0.08% of operating revenue, and write-offs remained at 0.06% of operating revenue.

Since 1975, CFC has published KRTA—an annual report that tracks the median value of 145 financial and operational ratios for participating distribution cooperatives. 

KRTA Pro Enhancements Live Now

In coordination with the release of the 2023 KRTA report, CFC is proud to announce the third release of KRTA Pro. This latest version enhances the analysis by including both upper and lower quartiles for all peer groups and adds new ratios to the Stacked Column Report.  

KRTA Pro provides distribution cooperatives a view of 145 ratios with more than 20 years of data online, without the need to download any files. CFC members can export chart images directly into PowerPoint and data into Excel and compare values against standard or independent peer groups, including U.S. median, state, consumer size, power supplier and plant growth. You can also create your own peer group. The Stacked Column Report allows you to examine the components of various ratios, while the State Median Report provides a U.S. heat map and rankings from highest to lowest for all ratios, year by year.

CFC members with “Account Portfolio” permission can access KRTA Pro by logging in to the CFC Member Website, opening the Financial Analysis tab and then selecting KRTA Pro.  

Traditional KRTA reports continue to be available in the CFC Member Website Document Center and under the Financial Analysis tab.

Register for a CFC 2023 KRTA Webinar 

CFC is hosting two upcoming webinars that will provide an overview of the 2023 KRTA results and KRTA Pro enhancements:

• Financial Webinar Series for electric cooperative staff at 1 p.m. ET, Wednesday, July 10. Register today!
• Director Webinar Series for electric cooperative directors at 1 p.m. ET, Thursday, July 18. Register today!