2024-11-12T13:08:44-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 750597925 TAYLOR ELECTRIC COOPERATIVE INC TAYL 3257938500 PO BOX 250 MERKEL TX 79536 NANCY BRISCO CFO 3257938500 2024-11-04 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-04 X 2023 2024-10-15 13:58:12Z RYAN BARTLETT PO BOX 250 MERKEL TX 79536 73294096 0 X WWW.TAYLORELECTRIC.COM X 1939 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 98 0 24292 0 0 0 71300202 71599515 189730 64569 779605 1278414 72269537 72942498 28516 28129 5688893 11934770 8623622 8762952 0 0 0 59298596 53890506 73639627 74616357 -1370090 -1673859 207962708 224088122 131049911 137646093 76912797 86442029 NONE 0 0 ELECTRIC DIVISION:PROVIDING ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 20,702 ACTIVE SERVICES AT YEAR END. FIBER INTERNET DIVISION:A SEPARATE DIVISION OF THE COOPERATIVE WAS CREATED TO PROVIDE FIBER INTERNET SERVICE TO ITS MEMBERS THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. FIBER INTERNET SERVICES ARE PROVIDED TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO THE EXTENT OF MARGINS FOR SUCH DIVISION. THERE WERE 4,099 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 120 0 98 1 1 1 0 0 0 0 65155472 2679210 0 0 0 X 7 7 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X NANCY BRISCO CFO 3257938500 226 CR 287 MERKEL TX 79536 X CECIL DAVIS CHAIRMAN 2.50 X X 21500 0 0 DAVID MCFALL SECRETARY/TREASURER 5.00 X X 21500 0 0 GARLAND CARTER DIRECTOR 3.00 X 21000 0 0 GAYLA SIMMONS DIRECTOR 4.00 X 22000 0 0 KATHRYN RAINEY DIRECTOR 5.00 X 21500 0 0 LELAND ROBINSON VICE CHAIRMAN 2.00 X X 21500 0 0 RICHARD PETREE DIRECTOR 4.00 X 28500 0 0 RYAN BARTLETT PRESIDENT/CHIEF EXECUTIVE OFFICER 53.00 X 331942 0 102019 NANCY BRISCO CHIEF FINANCIAL OFFICER 50.00 X 202060 0 85974 WADE HATCH VP OF ENGINEERING 47.00 X 160372 0 72771 DAVID THOMAS DIRECTOR OF ELECTRIC OPERATIONS 43.00 X 152301 0 109208 JOSHUA FOSS WORKING FOREMAN 49.80 X 127772 0 86167 JOHN HASPEL CONST & ENERGY SERVICES MANAGER 40.00 X 121526 0 57647 TYLER NEWBERRY WORKING FOREMAN 47.50 X 120261 0 50995 JASON CANTU WORKING FOREMAN 50.60 X 119882 0 53278 JOSEPH WILSON DIRECTOR OF FIBER OPERATIONS 40.00 X 118586 0 103221 1612202 0 721280 25 0 1 0 PRIMARY UTILITY SERVICES LLC PO BOX 64207 LUBBOCK TX 79464 CONSTRUCTION CONTRACTOR 4204826 LONESTATE FIBER CONSTRUCTION LLC 4432 IBERIS RD ABILENE TX 79606 FIBER CONSTRUCTION CONTRACTOR 2051862 RE-CON COMPANY OF TEXAS 12 NE 52ND STREET OKLAHOMA CITY OK 73105 CONSTRUCTION CONTRACTOR 538576 RHINO ROOFING SYSTEMS LLC 118 TRAINRIDER WAY ABILENE TX 79602 REMODEL CONTRACTORS 524800 M&W POWER GROUP LLC PO BOX 368 TUSCOLA TX 79562 TREE TRIMMING CONTRACTORS 297375 11 X SALES OF ELECTRICITY 221000 61086659 61086659 PATRONAGE DIVIDENDS 221000 7038863 7038863 FIBER INTERNET SERVICE REVENUE 221000 2905268 2895430 9838 SERVICE FEES 221000 439725 439725 OTHER PROGRAM REVENUE 221000 122262 122262 6738 6738 71599515 174638 174638 48000 320540 12961 36759 35039 283781 318820 35039 283781 98000 208069 -110069 -110069 -110069 14966 93809 -78843 -78843 MISC NON-OPERATING REVENUE 221000 645512 645512 POLE ATTACHMENT INCOME 221000 378471 378471 AIR EVAC REVENUE 524298 14454 14454 1038437 72942498 72081316 24292 836890 X 28129 11934770 1374147 4848932 1167047 981967 390859 5391018 8137616 PURCHASED POWER 33398330 ADMIN & GENERAL EXPENSE 3198361 DISTRIBUTION EXPENSE 2316073 FIBER/NTERNET EXPENSE 324527 1124581 74616357 2417974 3131487 5806438 5177780 1064 524 2897991 1992156 241814892 71075097 160101345 170739795 35477463 41496580 1260433 1549800 207962708 224088122 5013248 4585926 132291 140083 115017133 121579141 10887239 11340943 131049911 137646093 X 134385 137625 172395 181694 76606017 86122710 76912797 86442029 207962708 224088122 X -1673859 11203091 X X 0 1 X 0 0 0 1 X 2124627 2124627 11816639 3877885 7938754 215924155 67197212 148726943 344796 11604675 11949471 170739795 PATRONAGE CAPITAL - GSEC 31714869 C PATRONAGE CAPITAL - TEC 1594576 C PATRONAGE CAPITAL - NISC 43455 C PATRONAGE CAPITAL - CFC 2930434 C PATRONAGE CAPITAL - NRTC 2124 C PATRONAGE CAPITAL - MERIDIAN COOPERATIVE 157125 C PATRONAGE CAPITAL - CRC 4696 C PATRONAGE CAPITAL - FEDERATED 140866 C CONTRIBUTED CAPITAL - GSEC 1411966 C MEMBER CAPITAL SECURITIES 2200000 C CAPITAL TERM CERTIFICATES 1282355 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 14114 C 41496580 ACCRUED OPERATING TAXES 119799 CUSTOMER DEPOSITS 1482573 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 482100 DEFERRED CREDITS - CONSUMER ENERGY PREPAYMENTS 141233 DEFERRED CREDITS - DATA CENTERS 172562 DEFERRED CREDITS - TCOS REVENUE 4590518 CUSTOMER ADVANCES FOR CONSTRUCTION 2979462 UNDERBILLED FUEL POWER 1372696 11340943 X 72755976 0 72755976 186522 186522 72942498 62495065 0 62495065 12121292 12121292 74616357 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. PART X, LINE 2: THE COOPERATIVE HAS ADOPTED THE UNCERTAIN TAX POSITIONS 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 DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 186,522. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 186,522. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 11,934,770. 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID OR ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. 0 WYLIE INDEPENDENT SCHOOL DISTRICT 6251 BUFFALO GAP ROAD ABILENE TX 79606 751451409 GOVERNMENT 0 8508 PROVIDED FOOD TO TEACHERS, ADMINISTRATORS, AND STAFF DURING IN-SERVICE. 1 X 0 0 0 RYAN BARTLETT PRESIDENT/CHIEF EXECUTIVE OFFICER 272150 0 56406 0 3386 0 68644 0 33375 0 433961 0 0 0 NANCY BRISCO CHIEF FINANCIAL OFFICER 182448 0 13714 0 5898 0 72476 0 13498 0 288034 0 0 0 DAVID THOMAS DIRECTOR OF ELECTRIC OPERATIONS 140251 0 10476 0 1574 0 85993 0 23215 0 261509 0 0 0 WADE HATCH VP OF ENGINEERING 150406 0 6782 0 3184 0 48248 0 24523 0 233143 0 0 0 JOSEPH WILSON DIRECTOR OF FIBER OPERATIONS 103256 0 14817 0 513 0 71592 0 31629 0 221807 0 0 0 JOSHUA FOSS WORKING FOREMAN 86711 0 40617 0 444 0 55775 0 30392 0 213939 0 0 0 JOHN HASPEL CONST & ENERGY SERVICES MANAGER 109655 0 9563 0 2308 0 36037 0 21610 0 179173 0 0 0 JASON CANTU WORKING FOREMAN 81444 0 38027 0 411 0 21153 0 32125 0 173160 0 0 0 TYLER NEWBERRY WORKING FOREMAN 90087 0 29819 0 355 0 20702 0 30293 0 171256 0 0 0 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. RYAN BARTLETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,844 EMPLOYER CONTRIBUTION TO 401(K) PLAN 19,800 TOTAL REPORTED IN COLUMN C $ 68,644 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,844) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 92,263 EXPENSE TO THE COOPERATIVE $112,063 NANCY BRISCO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,346 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,130 TOTAL REPORTED IN COLUMN C $ 72,476 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,346) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 62,090 EXPENSE TO THE COOPERATIVE $ 74,220 DAVID THOMAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 76,666 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,327 TOTAL REPORTED IN COLUMN C $ 85,993 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (76,666) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,947 EXPENSE TO THE COOPERATIVE $ 58,274 WADE HATCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,476 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,772 TOTAL REPORTED IN COLUMN C $ 48,248 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,476) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,904 EXPENSE TO THE COOPERATIVE $ 42,676 JOSEPH WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 64,141 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,451 TOTAL REPORTED IN COLUMN C $ 71,592 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (64,141) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,776 EXPENSE TO THE COOPERATIVE $ 44,227 JOSHUA FOSS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,649 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,126 TOTAL REPORTED IN COLUMN C $ 55,775 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,649) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,274 EXPENSE TO THE COOPERATIVE $ 39,400 JOHN HASPEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,617 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,420 TOTAL REPORTED IN COLUMN C $ 36,037 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,617) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,877 EXPENSE TO THE COOPERATIVE $ 45,297 JASON CANTU: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,589 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,564 TOTAL REPORTED IN COLUMN C $ 21,153 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,589) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,720 EXPENSE TO THE COOPERATIVE $ 35,284 TYLER NEWBERRY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,222 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,480 TOTAL REPORTED IN COLUMN C $ 20,702 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,222) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,274 EXPENSE TO THE COOPERATIVE $ 38,754 FORM 990, PART I, LINE 19: AS PROVIDED IN FORM 990, PART III, LINES 4A AND 4B, THE COOPERATIVE HAS TWO PRIMARY TAX-EXEMPT PURPOSES AND PROGRAM SERVICE ACCOMPLISHMENTS, WHICH ARE TO PROVIDE ELECTRIC ENERGY AND FIBER BASED INTERNET SERVICES TO OUR MEMBER-CONSUMERS (HEREINAFTER REFERRED TO AS "PATRONS"). BOTH SERVICES ARE PROVIDED ON A COOPERATIVE BASIS THROUGH SEPARATE DIVISIONS. THE ANNUAL DETERMINATION AND ALLOCATION OF PATRONAGE CAPITAL ON THE BASIS OF PATRONAGE, WHICH IS REPORTED ON FORM 990 AS THE "BENEFITS PAID TO MEMBERS" EXPENSE, IS DETERMINED SEPARATELY FOR EACH DIVISION. THE COOPERATIVE DOES NOT NET THE NET MARGINS OF ONE DIVISION WITH THE LOSSES OF ANOTHER FOR A NET ALLOCATION OF PATRONAGE CAPITAL. INSTEAD OF NETTING, ANY DIVISIONAL LOSS REMAINS UNALLOCATED AND IS RECOVERED FROM THE RESPECTIVE PATRONS AS A REDUCTION IN FUTURE ALLOCATIONS OF PATRONAGE CAPITAL FOR THAT DIVISION. FOR THE 2023 CALENDAR YEAR, THE COOPERATIVE ALLOCATED PATRONAGE CAPITAL FOR THE ELECTRIC DIVISION TO THE PATRONS OF SUCH DIVISION IN THE AMOUNT OF $11,934,770. AFTER TAKING INTO CONSIDERATION PATRONAGE CAPITAL ALLOCATED WITH RESPECT TO THE ELECTRIC DIVISION, PART I, LINE 19 REPORTS A LOSS IN THE AMOUNT OF $1,673,859, WHICH IS PRIMARILY DERIVED FROM THE INTERNET SERVICES DIVISION. DUE TO THE FACT THE FIBER INTERNET SERVICE DIVISION IS IN A BUILDOUT AND START UP PHASE, THIS LOSS IS REPRESENTATIVE OF THE FIBER INTERNET SERVICE DIVISION LOSS AND INDICATIVE OF THE FACT THAT THE LOSS IS UNALLOCATED AND AVAILABLE TO REDUCE FUTURE ALLOCATIONS OF PATRONAGE CAPITAL OF THE FIBER INTERNET SERVICE DIVISION. TO THE EXTENT THESE LOSSES ARE UTILIZED IN THE FUTURE AS AN OFFSET TO THE AMOUNT OF PATRONAGE CAPITAL TO BE ALLOCATED TO THE PATRONS OF THE FIBER INTERNET SERVICE DIVISION, PART I, LINE 19 WILL REPORT NET INCOME EQUAL TO THE AMOUNT OF THE LOSS OFFSET. FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN RYAN BARTLETT (EMPLOYEE OFFICER) AND CECIL DAVIS (DIRECTOR). BOTH SERVE ON THE BOARD OF GOLDEN SPREAD ELECTRIC COOPERATIVE AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. 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 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. THE DISCUSSION AND REVIEW WERE PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ALL NEW EMPLOYEES AND DIRECTORS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST CERTIFICATION WHEN THEY BEGIN EMPLOYMENT WITH THE COOPERATIVE. ALL EMPLOYEES, DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE PRESIDENT/CEO REGULARLY MONITORS AND ENFORCES THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION FOR THE PRESIDENT/CEO. THE PRESIDENT/CEO UTILIZES INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY ANY SUCH DOCUMENT. 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, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS, KEY EMPLOYEES, 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. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. PART VII AND PART IX, LINE 5: TAYLOR ELECTRIC COOPERATIVE COMPENSATED DIRECTOR RICHARD PETREE $7,000 FOR CONSULTING FEES. THIS COMPENSATION, AS WELL AS HIS DIRECTOR FEES, IS REPORTED ON DIRECTOR PETREE'S FORM 1099-NEC AND IS SHOWN ON PART VII OF THE RETURN. THE AMOUNT IS ALSO INCLUDED IN PART IX, LINE 5. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO 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: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). THE USOA 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 THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. 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 $ 6,223,079 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (157,500) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (369,972) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 111,096 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,953,867 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 711,883 TOTAL WAGES ACCRUED AND/OR PAID $ 8,472,453 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: AIR EVAC EXPENSE $ 14,475 CONSUMER EXPENSE 170,458 ELECTRICIAN EXPENSE 155,954 SALES EXPENSE 639,975 TAXES 138,228 OTHER DEDUCTIONS 5,491 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 1,124,581 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 COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS 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, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 3,499,357 OFFICE SUPPLIES 720,417 OUTSIDE SERVICES 299,790 INJURIES AND DAMAGES 265,814 REGULATORY COMMISSION 108,489 DIRECTORS 182,832 ANNUAL MEETING 157,477 MISCELLANEOUS GENERAL 526,857 MISCELLANEOUS FIBER 13,408 MAINTENANCE OF GENERAL PLANT 1,058,391 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,832,832 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (157,500) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,301,269) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,175,702) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,198,361 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 11,934,770. PATRONAGE CAPITAL RETIRED - TOTAL -744,219. NET CHANGE IN MEMBERSHIPS 3,240. DONATED CAPITAL 9,300. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. TAYLOR ELECTRIC TRUST PO BOX 250 MERKEL TX 79536 262612715 CHARITY TX 501(C)(3) LINE 10 TAYLOR ELECTRIC COOPERATIVE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 TAYLOR ELECTRIC TRUST N N/A - LESS THAN $50,000 TAYLOR ELECTRIC TRUST O N/A - LESS THAN $50,000