After experiencing one of the strongest years in Cimarron Electric Cooperative’s 84-year history in 2019, we entered 2020 with cautioned optimism.

The growth that we had experienced in the preceding five years had slowed down in the fourth quarter of 2019, but budgets have been historically depleted and growth typically slowed in preceding years during the fourth quarter.

There were signs that oil and gas exploration might be slowing down in our nine-county service territory, but no indications that the sky was falling…just a slowdown.

Two things happened in 2020 that impacted Cimarron Electric.

First, in the early spring, OPEC and Russia couldn’t come to an agreement on oil production.

Demand had slowed around the world and with the abundance of shale oil production in the United States there was an oversupply of oil in the market.

With the overabundance of oil on the market and a disagreement on terms that would limit production, this caused prices to fall dramatically.

Around the globe, oil and gas production and exploration came to a screeching halt.

We had fewer new services being built and less kWh sales. Second, COVID-19 and

Second, COVID-19 and the resulting slowed economy impacted us.

Cimarron, like many other businesses, noticed the effect of a slowed economy due to the pandemic. The initial impact of COVID caused a drop in the number of new services and caused kWh sales to drop. A second punch to the

A second punch to the same area of growth, fewer new services and a drop in kWh sales.

Still this was not a time of worry, just a time for adjustment.

It was just another storm to weather, just not one with ice or wind.

Beginning in the early summer, Cimarron slowed spending on capital projects.

Twenty-five contract crews were sent home.

Adjustments were made to key financial areas. Expenses were examined

Expenses were examined and cost-saving measures were put in place.

Our employees worked together to bring a solution to the table that would continue to keep Cimarron Electric strong into the future.

Along with the adjustments, sales have rebounded to near pre-spring levels and new services have returned to pre-COVID numbers. Even after everything

Even after everything that 2020 has thrown at us we will still end the year financially strong and ready to enter 2021.