PETITION FOR SPECIAL MEETING OF THE MEMBERS

SUWANNEE VALLEY ELECTRIC COOPERATIVE, INC.

Pursuant to Article III, Section 2 of the Cooperative Bylaws and Florida Statute §425.18

REQUEST FOR MEMBER MEETING REGARDING SVEC DEBT, FINANCING, RAPID FIBER LLC, AND MEMBER FINANCIAL IMPACT

To the Secretary, Board of Trustees, and Management of Suwannee Valley Electric Cooperative, Inc.:

We, the undersigned members of Suwannee Valley Electric Cooperative, Inc. (“SVEC”), hereby petition for a Special Meeting of the Members pursuant to Article III, Section 2 of the SVEC Bylaws and applicable Florida law.

The members request that the Special Meeting be held for the purpose of receiving a documented presentation from SVEC concerning:

1. SVEC’s current debt and financing obligations;
2. SVEC’s Notes Receivable;
3. SVEC’s financial relationship with Rapid Fiber LLC;
4. funds advanced, loaned, invested, or otherwise provided by SVEC to Rapid Fiber LLC;
5. the source of those funds;
6. Rapid Fiber LLC’s repayment obligations and payments to SVEC;
7. the allocation of debt and interest expense between storm recovery, electric operations, Rapid Fiber, and other activities;
8. the effect, if any, of Rapid Fiber-related financing and expenses on SVEC’s electric members and electric rates; and
9. the “60/40” allocation referenced by SVEC management during discussions concerning these financial matters.

PURPOSE

This petition does not presume or allege that SVEC has improperly financed Rapid Fiber LLC or improperly charged electric members for Rapid Fiber’s costs.

The purpose of the requested meeting is to allow SVEC members to obtain and examine the underlying financial information necessary to determine:

Where the money came from → where the money went → who owes the money → who is paying the principal and interest → how the transactions are accounted for → and whether any portion of those costs is ultimately borne by SVEC’s electric members.

Members are requesting transparency and supporting documentation so that they can make an informed determination based upon SVEC’s actual financial records.

ATTACHMENT A

FINANCIAL DOCUMENTS AND QUESTIONS REQUESTED BY THE MEMBERS

1. SVEC’s approximately $297 million debt

Members request a complete breakdown of SVEC’s reported debt and financing obligations, including approximately:

• $189,144,982 — Line of Credit
• $103,406,508 — Long-Term Notes Payable
• $3,259,985 — Current Portion of Long-Term Debt
• Any additional obligations included in the approximately $297 million total.

For each debt instrument, members request:

• lender;
• original principal;
• current principal;
• origination date;
• interest rate;
• maturity;
• collateral/security;
• stated purpose;
• whether secured by electric-system assets;
• and whether proceeds were available for or used for Rapid Fiber or other non-electric activities.

Members request the underlying loan agreements, notes, amendments, debt schedules and Board approvals.

2. Approximately $92,179,307 Notes Receivable

Members request identification of every borrower included in this balance, including:

• borrower;
• original amount;
• dates and amounts advanced;
• current balance;
• interest rate;
• maturity;
• repayment schedule;
• principal received;
• interest received;
• remaining balance.

If Rapid Fiber LLC is included, members request the exact amount owed by Rapid Fiber LLC.

3. Source of funds provided to Rapid Fiber

Members request documentation showing whether SVEC funds provided to Rapid Fiber originated from:

• SVEC cash;
• electric-system revenues;
• reserves;
• line-of-credit proceeds;
• long-term debt;
• grants;
• or another source.

Members request the applicable intercompany agreements, promissory notes, Board resolutions, transfer records and accounting entries.

4. Rapid Fiber payments to SVEC

Members request the total Rapid Fiber payments to SVEC categorized by:

• principal;
• interest;
• lease payments;
• fiber capacity;
• management;
• construction;
• expense reimbursement;
• and other intercompany payments.

Members request documentation showing whether those payments have been sufficient to cover SVEC’s corresponding principal and interest obligations.

5. Allocation of SVEC debt and interest

Members request a dollar-for-dollar allocation of debt and interest attributable to:

• storm recovery;
• electric infrastructure;
• transmission;
• distribution;
• substations;
• Rapid Fiber;
• other subsidiaries;
• non-electric activities;
• capital projects;
• refinancing;
• working capital;
• and other purposes.

6. Approximately $94.9 million storm balance

Members request documentation showing:

• total storm costs;
• borrowed amount;
• FEMA reimbursement;
• other reimbursement;
• Idalia Cost Recovery amounts;
• amounts paid;
• unrecovered amount;
• storm-related interest;
• and remaining storm-related debt.

7. 2024 Notes Receivable discrepancy

Members request an explanation and supporting accounting documentation concerning the apparent difference between approximately $7.08 million reported in the 2024 presentation and $54,323,482 reported for 2024 in the subsequent comparative presentation.

8. Rapid Fiber and member costs

SVEC has represented to members that Rapid Fiber would not increase electric costs.

Members request documentation showing how SVEC ensures electric members are not bearing Rapid Fiber’s:

• principal;
• interest;
• operating losses;
• construction costs;
• debt service;
• guarantees;
• financing costs;
• or other obligations.

9. The “60/40” allocation

SVEC management referenced a “60/40” allocation during discussions concerning the members’ financial-record request.

Because the original written request did not raise a 60/40 issue, members request identification and production of the documentation establishing that allocation, including any:

• rate study;
• accounting methodology;
• cost-allocation policy;
• Board approval;
• agreement;
• or other supporting document.

Members further request clarification as to whether the 60/40 allocation has any relationship to Rapid Fiber, SVEC debt, financing, intercompany transactions, or interest expense.

MEMBER REQUEST FOR DOCUMENTED PRESENTATION

Members are specifically requesting more than a verbal explanation.

The requested presentation should allow members to reconcile:

SVEC total debt
↓
Storm-related debt
↓
Electric-system debt
↓
Rapid Fiber-related financing
↓
Source of funds
↓
Rapid Fiber’s obligations to SVEC
↓
Rapid Fiber repayments
↓
Interest expense
↓
Effect, if any, on electric members

Members request that the supporting records be made available for inspection and that questions and responses be reflected in the meeting record to the extent required by law and the bylaws.

SIGNATURE CERTIFICATION

I am a current member of Suwannee Valley Electric Cooperative, Inc., and I support the request for the Special Meeting of Members described in this petition.