2024-11-15T23:11:41-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 910330490 TANNER ELECTRIC COOPERATIVE INC TANN 4258880623 45715 SE 140TH ST NORTH BEND WA 98045 STEVE WALTER CEO 4258880623 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z STEVE WALTER 45715 SE 140TH ST NORTH BEND WA 98045 13838576 0 X WWW.TANNERELECTRIC.COOP X 1936 WA TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 9 9 20 0 31764 0 0 0 12938861 13100359 61972 91763 148062 646454 13148895 13838576 0 0 300000 224435 2368429 2660785 0 0 0 9519665 8874935 12188094 11760155 960801 2078421 39195305 39734098 24749542 23271855 14445763 16462243 THE MISSION OF TANNER ELECTRIC COOPERATIVE IS TO PROVIDE RELIABLE, SAFE, SUSTAINABLE ELECTRIC POWER AND RELATED SERVICES TO THE COMMUNITIES WE ARE PROUD TO SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 5,317 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 33 0 20 1 1 1 0 0 0 0 13672888 525553 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X KEVIN BURNS DIRECTOR OF FINANCE 4258880623 45715 SE 140TH STREET NORTH BEND WA 98045 X MICHAEL HODGE PRESIDENT 3.30 X X 12000 0 0 CAROL PASCHAL TREASURER 3.60 X X 11200 0 0 JOHN SAATELA DIRECTOR 2.80 X 6300 0 0 STEVE NICHOLES DIRECTOR 2.30 X 5500 0 0 ROGER GUAY VICE PRESIDENT 2.50 X X 6250 0 0 SUSAN SERRETTE-EGAN SECRETARY (JAN-FEB) 0.40 X X 600 0 0 DAVID MCGOLDRICK DIRECTOR 1.80 X 5700 0 0 DUTCH SIEDENTOPF SECRETARY 1.10 X X 7000 0 0 KRISTINA MICHAEL DIRECTOR 1.00 X 3800 0 0 MALCOLM LYBECK DIRECTOR (JUNE-DEC) 3.60 X 3200 0 0 STEVE WALTER CEO 45.00 X 276496 0 171295 KEVIN BURNS DIRECTOR OF FINANCE 45.00 X 165879 0 49157 NICK HIMEBAUCH MGR OF OPERATIONS 40.00 X 181575 0 73322 KYE REFVEM LINEMAN 54.00 X 223889 0 24553 CHAD LOHREY LEAD LINEMAN 50.00 X 212178 0 25411 RORY WALTER LINEMAN 51.00 X 204532 0 22714 BLAINE BARNARD LINEMAN 51.00 X 204102 0 23432 JUSTIN ISACKSON FOREMAN 49.00 X 202915 0 52241 1733116 0 442125 12 0 1 0 JOAQUIN'S TREE EXPERT 13121 112TH AVENUE E PUYALLUP WA 98374 TREE TRIMMING 285829 PUGET SOUND ENERGY PO BOX 91269 BELIEVUE WA 98009 LINE CONVERSION 227736 FURY SITE WORKS PO BOX 2118 NORTH BEND WA 98045 CONSTRUCTION 165403 SPECIALTY ENGINEERING 3305 ARTIC BLVD SUITE 201 ANCHORAGE AK 99503 TRANSFORMER REPAIR & MAINTENANCE 131159 GATES UNDERGROUND LLC PO BOX 465 MCKENNA WA 98558 UNDERGROUND BORING CONTRACTOR 105568 5 X SALES OF ELECTRICITY 221000 12937538 12937538 PATRONAGE DIVIDENDS 221000 93789 93789 SERVICE FEES 221000 69032 69032 13100359 51476 31764 19712 40287 0 40287 40287 40287 EMPLOYEE RETENTION CREDIT 221000 362509 362509 POLE ATTACHMENT INCOME 221000 265862 265862 MISC. NON-OPERATING REVENUE 221000 18083 18083 646454 13838576 13521238 31764 285574 X 224435 979274 1299798 98684 142653 140376 937485 1728614 PURCHASED POWER 3683652 ADMIN & GENERAL EXPENSE 981992 DISTRIBUTION EXPENSE 750196 TAXES 612693 180303 11760155 567699 1367693 3582559 3046131 1034327 1092632 90174 82886 59344518 26001616 32542141 33342902 1173592 589503 204813 212351 39195305 39734098 1299308 1358318 2726 22752747 21452745 694761 460792 24749542 23271855 X 23290 24050 0 0 14422473 16438193 14445763 16462243 39195305 39734098 X 2078421 -61940 X X 0 1 X 1 0 0 1 X 393530 393530 6894727 720125 6174602 50842797 24612689 26230108 1213464 668802 544662 33342902 CUSTOMER DEPOSITS 33710 ACCRUED DEFERRED COMPENSATION 303692 DEFERRED CREDIT - EDUCATION FUND 62634 OTHER DEFERRED CREDITS 60756 460792 X PART IV, LINE 2B: THE COOPERATIVE HAS PUT INTO PLACE AN "OPERATION ROUND-UP" PLAN. MEMBERS WHO WISH TO PARTICIPATE IN THE PLAN VOLUNTARILY ROUND THEIR ELECTRIC BILLS UP TO THE NEAREST WHOLE DOLLAR. THE DIFFERENCE IS USED TO FUND THE PLAN. THE "OPERATION ROUND-UP" FUNDS ARE MAINTAINED IN A SEPARATE LIABILITY ACCOUNT, AND ALL DONATIONS ARE PLACED IN A TRUST ADMINISTERED BY THE SALVATION ARMY. THE FUNDS ARE AVAILABLE TO HELP INDIVIDUALS AND FAMILIES IN THE COOPERATIVE'S SERVICE AREA. PART X, LINE 2: THE COOPERATIVE FOLLOWS THE "UNCERTAIN TAX POSITIONS AND PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX-EXEMPT ENTITY. THE COOPERATIVE HAS DETERMINED THAT IS IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE. THE COOPERATIVE FILES TAX RETURNS IN THE U.S. FEDERAL JURISDICTION AND IS NO LONGER SUBJECT TO EXAMINATION BY TAXING AUTHORITIES BEFORE 2017. PART VIII: THE AMOUNT OF INVESTMENTS-PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART VIII HAS BEEN LEFT BLANK. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART IX HAS BEEN LEFT BLANK. X 1 0 X X 0 0 0 STEVE WALTER CEO 250643 0 0 0 25853 0 132100 0 39195 0 447791 0 0 0 JUSTIN ISACKSON FOREMAN 199708 0 653 0 2554 0 20215 0 32026 0 255156 0 0 0 NICK HIMEBAUCH MGR OF OPERATIONS 179711 0 1306 0 558 0 41296 0 32026 0 254897 0 0 0 KYE REFVEM LINEMAN 219552 0 660 0 3677 0 13045 0 11508 0 248442 0 0 0 CHAD LOHREY LEAD LINEMAN 211278 0 660 0 240 0 13903 0 11508 0 237589 0 0 0 BLAINE BARNARD LINEMAN 203299 0 653 0 150 0 11924 0 11508 0 227534 0 0 0 RORY WALTER LINEMAN 203729 0 653 0 150 0 11206 0 11508 0 227246 0 0 0 KEVIN BURNS DIRECTOR OF FINANCE 163704 0 1421 0 754 0 25426 0 23731 0 215036 0 0 0 PART I, LINE 1A PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE THE CEO FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. STEVE WALTER'S SPOUSE ACCOMANIED HIM ON ONE TRIP DURING THE YEAR. PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. STEVE WALTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 107,015 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 12,862 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,223 TOTAL REPORTED IN COLUMN C $ 132,100 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (107,015) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,589 EXPENSE TO THE COOPERATIVE $ 72,674 JUSTIN ISACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,742 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,473 TOTAL REPORTED IN COLUMN C $ 20,215 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,742) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,720 EXPENSE TO THE COOPERATIVE $ 32,193 NICK HIMEBAUCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,168 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 8,779 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,349 TOTAL REPORTED IN COLUMN C $ 41,296 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,168) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,264 EXPENSE TO THE COOPERATIVE $ 51,392 KYE REFVEM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,151 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,894 TOTAL REPORTED IN COLUMN C $ 13,045 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,151) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,496 EXPENSE TO THE COOPERATIVE $ 30,390 CHAD LOHREY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,867 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,036 TOTAL REPORTED IN COLUMN C $ 13,903 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,867) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,720 EXPENSE TO THE COOPERATIVE $ 31,756 BLAINE BARNARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,186 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,738 TOTAL REPORTED IN COLUMN C $ 11,924 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,186) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,496 EXPENSE TO THE COOPERATIVE $ 30,234 RORY WALTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,451 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,755 TOTAL REPORTED IN COLUMN C $ 11,206 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,451) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,496 EXPENSE TO THE COOPERATIVE $ 30,251 KEVIN BURNS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,787 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 8,024 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,615 TOTAL REPORTED IN COLUMN C $ 25,426 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (9,787) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,457 EXPENSE TO THE COOPERATIVE $ 46,096 RORY WALTER FAMILY - OFFICER (S. WALTER) 204532 EMPLOYMENT 0 FORM 990, PART I, LINE 19 - REVENUE LESS EXPENSES IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, LINE 19 REPORTS NET INCOME OF $2,078,421 WHICH IS THE AMOUNT BY WHICH THE PATRONAGE DIVIDEND CALCUALTION WAS REDUCED TO COVER THE CURRENT AND PRIOR YEAR LOSSES. THE FOLLOWING IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: 2023 NET MARGIN PER FINANCIAL STATEMENTS $ 2,301,144 BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), (224,435) PART 1, LINE 14 EQUITY METHOD LOSS FROM SUBSIDIARY $ 1,711 TOTAL ON PART I, LINE 19 $ 2,078,420 U.S. GAAP REQUIRES THE COOPERATIVE TO RECORD ON ITS BOOKS THE EQUITY METHOD INCOME (LOSS) FROM ITS WHOLLY OWNED SUBSIDIARY. EQUITY METHOD INCOME (LOSS) IS NOT INCOME FOR FORM 990 REPORTING PURPOSES AND HAS BEEN REPORTED AS AN OTHER CHANGE IN NET ASSETS. HOWEVER, THIS LOSS OF $1,711 IS A COMPONENT OF NET BOOK INCOME, ON WHICH THE PATROANGE DIVIDEND IS BASED. INCLUDING THIS LOSS IN THE PATRONAGE DIVIDEND CALCUALTION IS BASED ON THE FACT THAT IT IS ASSOCIATED WITH THE PROVISION OF ELECTRIC ENERGY; THE NET MARGINS OF WHICH ARE SUBJECT TO A PRE-EXISTING OBLIGATION IN THE BYLAWS TO ALLOCATE EQUITABLY TO THE MEMBERS ON A PATROANGE BASIS (I.E. PATRONAGE DIVIDEND). THIS CONNECTION IS MADE DUE TO THE INVESTMENT INTENT OF THE SUBSIDIARY - TO HELP SECURE A SOURCE OF ELECTRIC POWER TO MEET ANTICIPATED DEMANDS THAT, AT THE TIME OF THE INVESTMENT, THE CURRENT WHOLESALE POWER SUPPLIER WAS UNABLE TO MEET. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION ADDITIONALLY, THE MEMBERS OF THE COOPERATIVE MAY AMEND THE BYLAWS BY PETITION OF AT LEAST 5% AND AFFIRMATIVE VOTE OF A MAJORITY OF THE MEMBERSHIP ATTENDING THE ANNUAL MEETING. BYLAW AMENDMENTS INITIATED BY MEMBER PETITION SHALL NOT BE AMENDED BY THE BOARD OF DIRECTORS EXCEPT BY APPROVAL OF A MAJORITY OF MEMBERS IN ATTENDANCE AT THE SUBSEQUENT ANNUAL MEETING. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS, EMPLOYEE OFFICERS, AND KEY EMPLOYEES, IF ANY, ARE REQUIRED TO REVIEW VENDORS, ORGANIZATIONS AND RELATIONSHIPS ANNUALLY AND DECLARE CONFLICTS OF INTEREST THAT ARE PROHIBITED BY COOPERATIVE POLICY. FORM 990, PART VI, SECTION B, LINE 15 MULTIPLE EXTERNAL INDUSTRY SOURCES ARE USED FOR WAGE COMPARISONS AND BENCHMARKING. CEO COMPENSATION IS BASED ON INDUSTRY COMPARISON AND INDEPENDENT SURVEYS, AND ARE REVIEWED AND APPROVED BY THE PERSONNEL COMMITTEE. UPON APPROVAL, THE COMMITTEE RECOMMENDS TO THE FULL BOARD IN EXECUTIVE SESSION THE CEO COMPENSATION PACKAGE. A COMPENSATION SURVEY IS UTILIZED WHEN DETERMINING AND APPROVING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE, IF ANY. ALL SALARIES, WAGES, AND ADJUSTMENTS ARE APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 AUDITED FINANCIAL STATEMENTS, BOARD POLICIES (INCLUDING CONFLICT OF INTEREST), AND CERTAIN OTHER ORGANIZATIONAL DOCUMENTS ARE AVAILABLE UPON REQUEST. THE COOPERATIVE ALSO HOLDS AN ANNUAL MEETING OF THE MEMBERSHIP AND PROVIDES FINANCIAL AND OTHER INFORMATION AT THE MEETING. ADDITIONALLY, THE COOPERATIVE'S BYLAWS CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE AT WWW.TANNERELECTRIC.COOP/TEC-BYLAWS. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DIRECTOR SUSAN SERRETTE-EGAN'S PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON WHILE PREPARING THIS RETURN. THERE WERE NO KNOWN CHANGES FROM 2022 TO 2023. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA GENERALLY DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON THE APPLICABLE LINE BASED ON THE FUNCTIONAL EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART IX, LINE 4: PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2023 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990, PART IX, LINES 5-7: SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 2,279,072 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (61,550) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (220,452) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (73,322) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 515,697 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 200,892 TOTAL WAGES ACCRUED AND/OR PAID $ 2,640,337 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,430,192 OFFICE SUPPLIES 337,689 OUTSIDE SERVICES 67,354 INSURANCES AND DAMAGES 91,844 ADVERTISING 12,127 MISCELLANEOUS GENERAL 81,603 DIRECTORS 103,709 TRAININGS AND MEETINGS 255,146 DUES AND SUBSCRIPTIONS 6,348 MAINTENANCE OF GENERAL PLANT 100,615 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,486,627 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (61,550) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,068,057) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (375,028) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 981,992 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS $ 97,297 CUSTOMER SERVICE AND INFORMATION 83,009 TOTAL EXPENSES PER LINE 24E $ 180,303 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 760. PATRONAGE CAPITAL ALLOCATED 224,435. PATRONAGE CAPITAL RETIRED - TOTAL -356,580. PATRONAGE CAPITAL RETIRED - UNCLAIMED & RETAINED 71,156. EQUITY METHOD LOSS FROM SUBSIDIARY CORPORATION -1,711. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. TANNER WIND ENERGY INC 45715 SE 140TH ST NORTH BEND WA 98045 208423637 WIND ENERGY PRODUCTION WA TANNER ELECTRIC COOPERATIVE INC C 401034 731741 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 TANNER WIND ENERGYINC A 31764 PURSUANT TO PROMISSORY NOTE TANNER WIND ENERGYINC S 100000 PROMISSORY NOTE PRINCIPAL PAYMENT