2024-11-15T11:22:08-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 741393760 SOUTH TEXAS ELECTRIC COOPERATIVE INC SOUT 3615756491 PO BOX 119 NURSERY TX 77976 CLIFTON ERIC LANGE GENERAL MANAGER 3615756491 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-14 X 2023 2024-10-15 13:58:12Z X CLIFTON ERIC LANGE PO BOX 119 NURSERY TX 77976 688815925 0 X WWW.STEC.ORG X 1944 TX WE ARE A CUTTING-EDGE GENERATION AND TRANSMISSION COOPERATIVE PROVIDING ELECTRIC POWER AND A LEADER IN PROVIDING A DIVERSE PORTFOLIO OF AFFORDABLE ENERGY, A RELIABLE POWER DELIVERY SYSTEM AND SERVICES CUSTOMIZED TO THE NEEDS OF THE MEMBERS. 18 18 280 0 0 0 0 738981148 685749742 1616758 2042029 1846330 995117 742444236 688786888 97350 31385071 55217062 40639890 38160702 0 0 683271637 602051031 755296598 695526145 -12852362 -6739257 1574035330 1617028197 1130901964 1100530609 443133366 516497588 OUR MISSION IS TO PROVIDE THE INFRASTRUCTURE AND SERVICES TO DELIVER RELIABLE AND ECONOMICAL ELECTRIC POWER TO A DIVERSIFIED MEMBERSHIP. 0 0 PROVIDING WHOLESALE ELECTRIC ENERGY TO 9 DISTRIBUTION COOPERATIVE MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 110 0 280 1 0 0 0 0 0 673986701 5602334 0 0 0 X 18 18 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 0 1 1 0 X TABATHA TEMPLE CFO 3615756491 PO BOX 119 NURSERY TX 77976 X BRADLEY E BIERSTEDT DIRECTOR 5.00 X 16000 0 0 BRUCE T ELLIOTT DIRECTOR 3.00 X 16000 0 0 DONALD WAYNE HERRMANN DIRECTOR 6.25 X 16000 0 0 HERBERT O GREBE III DIRECTOR 5.00 X 16000 0 0 JIM W HARTON DIRECTOR 4.10 X 16000 0 0 LARRY E HUESSER ASSISTANT SEC-TREAS 4.50 X X 16000 0 0 PAUL T BRYSCH JR SECRETARY-TREASURER 4.25 X X 16000 0 0 SAMMY L CONDRA DIRECTOR 6.00 X 16000 0 0 BRIAN RENE ACOSTA DIRECTOR 5.00 X 15400 0 0 MICHAEL V ABLES DIRECTOR 5.00 X 15200 0 0 BARBARA S MILLER PRESIDENT 5.62 X X 15000 0 0 BLAINE WARZECHA DIRECTOR 2.00 X 14800 0 0 S F RUSCHHAUPT III DIRECTOR 4.00 X 14800 0 0 RONALD D HUGHES VICE-PRESIDENT 4.00 X X 13000 0 0 BOBBY GENE BAUCH DIRECTOR 4.00 X 6600 0 0 CLYDE STEWART DIRECTOR 4.00 X 6400 0 0 JAMES COLEMAN DIRECTOR (PD TO EMPLOYER) 4.00 X 0 0 0 VARZAVAND IRANI DIRECTOR (PD TO EMPLOYER) 3.50 X 0 0 0 GARY RABON DIRECTOR (PD TO EMPLOYER) 5.00 X 0 0 0 CLIFTON ERIC LANGE GENERAL MANAGER 55.00 X 656995 0 112668 TABATHA TEMPLE CFO (JULY-DEC) 40.00 X 176296 0 59501 JANE KRAUSE CFO (JAN-MAY) 50.00 X 124791 0 12271 CORY JAMES ALLEN ASSISTANT GM/MGR OF POWER DELIVERY 40.00 X 361643 0 197244 JOHN ALEX PACKARD MGR OF POWER SUPPLY 40.00 X 323701 0 122475 STEVEN WAYNE TAYLOR TRANSMISSION LINE SUPER 45.00 X 249761 0 146776 PAUL GEORGE PERSON MGR OF ENGINEERING 40.00 X 231558 0 99478 WENDY JO OHRT MGR OF CORPORATE & MEMBER SVCS 45.00 X 226808 0 98095 LUCAS RYAN TURNER MGR OF WHOLESALE MARKETING/QSE 50.00 X 217809 0 72140 ROGER FREDERICK BISHOP PLANT MANAGER 40.00 X 246978 0 22049 MICHAEL DALE KEZAR FORMER GENERAL MANAGER 40.00 X 327765 0 40254 3373305 0 982951 115 1 1 0 MYR ENERGY SERVICES INC 2452 EAST 6700 SOUTH STE A UINTAH UT 84405 TRANSMISSION LINE CONSTRUCTION 14914242 MASLONKA POWERLINE SERVICES PO BOX 28840 SPOKANE WA 99228 TRANSMISSION LINE CONSTRUCTION 8563746 KBS ELECTRICAL DISTRIBUTORS INC PO BOX 4591 BRYAN TX 77805 TRANSMISSION LINE CONSTRUCTION 6297027 POWER ENGINEERS INC PO BOX 855321 MINNEAPOLIS MN 55485 ENGINEERING SERVICES 4938625 LAMBDA CONSTRUCTION 211 JESSES CIRCLE NEW BRAUNFELS TX 78132 STATION CONSTRUCTION 3747312 36 X SALES OF ELECTRICITY 221000 673986701 673986701 PATRONAGE DIVIDENDS 221000 6575134 6575134 TRANSMISSION 221000 3954624 3954624 POLE ATTACHMENT REVENUE 221000 808610 808610 OTHER PROGRAM REVENUE 221000 424673 424673 685749742 1977343 1977343 884191 884191 75413 0 75413 75413 65863 9550 93723 29037 64686 64686 64686 OTHER NON OPERATING REVENUE 221000 35513 35513 35513 688786888 685107194 0 3679694 X 97350 55217062 2376785 21584395 6716914 5795995 1686613 37734043 53304786 PURCHASED POWER 416089699 PRODUCTION EXPENSE 74060636 ADMINISTRATIVE & GENERA 7237637 OPERATING TAXES 6321779 7302451 695526145 X 41738043 30239839 50025500 16128015 74467288 51282768 25423244 30432586 36219682 32819639 1946675920 570680501 1254497454 1375995419 91654575 76229259 9544 9544 0 3891128 1574035330 1617028197 90915944 52240822 858235147 842650485 170000000 180000000 11750873 25639302 1130901964 1100530609 X 500 500 488 488 443132378 516496600 443133366 516497588 1574035330 1617028197 X -6739257 80103479 X X 0 1 X 1 0 60149250 60149250 47853977 9117350 38736627 1583029837 561563151 1021466686 255642856 255642856 1375995419 ACCRUED OPERATING TAXES 3893496 CONSUMER DEPOSITS 1330417 REGULATORY LIABILITY - OVERCOLLECTION OF POWER COST 10438926 ADVANCES FOR CONSTRUCTION 9479777 ACCUMULATED ACCRUED DEFERRED COMPENSATION 496686 25639302 X PART X, LINE 2: THE COOPERATIVE FOLLOWS THE PROVISIONS OF UNCERTAIN TAX POSITIONS AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION 740-10-65-1. 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 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. 0 NRECA INTERNATIONAL FOUNDATION 4301 WILSON BLVD ARLINGTON VA 22203 521387851 501(C)(3) 10000 0 RURAL ELECTRIFICATION IN OTHER COUNTRIES 1 X X X 0 1 0 CLIFTON ERIC LANGE GENERAL MANAGER 649294 0 0 0 7701 0 75819 0 36849 0 769663 0 0 0 CORY JAMES ALLEN ASSISTANT GM/MGR OF POWER DELIVERY 339552 0 12602 0 9489 0 163948 0 33296 0 558887 0 0 0 JOHN ALEX PACKARD MGR OF POWER SUPPLY 310911 0 11547 0 1243 0 88864 0 33611 0 446176 0 0 0 STEVEN WAYNE TAYLOR TRANSMISSION LINE SUPER 238082 0 8880 0 2799 0 112187 0 34589 0 396537 0 0 0 MICHAEL DALE KEZAR FORMER GENERAL MANAGER 39273 0 0 0 288492 0 31499 0 8755 0 368019 0 0 0 PAUL GEORGE PERSON MGR OF ENGINEERING 221491 0 8248 0 1819 0 67266 0 32212 0 331036 0 0 0 WENDY JO OHRT MGR OF CORPORATE & MEMBER SVCS 217232 0 8165 0 1411 0 62977 0 35118 0 324903 0 0 0 LUCAS RYAN TURNER MGR OF WHOLESALE MARKETING/QSE 209585 0 7779 0 445 0 37802 0 34338 0 289949 0 0 0 ROGER FREDERICK BISHOP PLANT MANAGER 208359 0 9385 0 29234 0 7046 0 15003 0 269027 0 0 0 TABATHA TEMPLE CFO (JULY-DEC) 169683 0 6289 0 324 0 26207 0 33294 0 235797 0 0 0 PART I, LINE 4B DURING THE TAX YEAR, MIKE KEZAR PARTICIPATED IN AND RECEIVED A DISTRIBUTION FROM A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN OF VESTED BENEFITS. TOTAL VESTED BENEFITS RECEIVED AND INCLUDED AS REPORTABLE COMPENSATION ON FORM W-2 WERE $200,797. 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. 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. CLIFTON LANGE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,919 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 75,819 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,919) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 96,023 EXPENSE TO THE COOPERATIVE $ 105,923 CORY ALLEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 154,048 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 163,948 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (154,048) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 117,212 EXPENSE TO THE COOPERATIVE $ 127,112 JOHN PACKARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 79,465 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,399 TOTAL REPORTED IN COLUMN C $ 88,864 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (79,465) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 106,573 EXPENSE TO THE COOPERATIVE $ 115,972 STEVEN TAYLOR: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 104,969 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,218 TOTAL REPORTED IN COLUMN C $ 112,187 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (104,969) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 83,268 EXPENSE TO THE COOPERATIVE $ 90,486 PAUL PERSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,549 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,717 TOTAL REPORTED IN COLUMN C $ 67,266 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,549) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 76,562 EXPENSE TO THE COOPERATIVE $ 83,279 WENDY OHRT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 56,330 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,647 TOTAL REPORTED IN COLUMN C $ 62,977 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (56,330) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 75,936 EXPENSE TO THE COOPERATIVE $ 82,583 LUCAS TURNER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,417 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,385 TOTAL REPORTED IN COLUMN C $ 37,802 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,417) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 70,244 EXPENSE TO THE COOPERATIVE $ 76,629 ROGER BISHOP: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,046 TOTAL REPORTED IN COLUMN C $ 7,046 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (-0-) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 80,399 EXPENSE TO THE COOPERATIVE $ 87,445 TABATHA TEMPLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,990 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,217 TOTAL REPORTED IN COLUMN C $ 26,207 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,990) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,207 EXPENSE TO THE COOPERATIVE $ 61,424 RACHEL LANGE FAMILY RELATIONSHIP (CLIFTON LANGE - GENERAL MANAGER) 2000 SCHOLARSHIP 0 VANESSA LANGE FAMILY RELATIONSHIP (CLIFTON LANGE - GENERAL MANAGER) 1500 SCHOLARSHIP 0 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE WHOLESALE POWER AND TRANSMISSION SERVICES AT COST ON A COOPERATIVE BASIS. THE COOPERATIVE CURRENTLY HAS NINE (9) MEMBERS; ALL OF WHICH PURCHASE POWER FROM THE COOPERATIVE PURSUANT TO WHOLESALE POWER CONTRACTS. FORM 990, PART VI, SECTION A, LINE 7A THE COOPERATIVE IS GOVERNED BY AN EIGHTEEN (18) MEMBER BOARD OF DIRECTORS, WHO ARE ELECTED ANNUALLY AND SERVE A TERM OF ONE YEAR. EACH OF THE NINE (9) MEMBER DISTRIBUTION COOPERATIVES ELECTS TWO REPRESENTATIVES TO SERVE ON THE BOARD AND FILLS THE VACANCY CREATED IF ONE OF THEIR DESIGNATED REPRESENTATIVES RESIGNS OR IS UNABLE TO SERVE. FORM 990, PART VI, SECTION A, LINE 7B IN ADDITION TO BOARD OF DIRECTOR ELECTIONS, THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. AMENDMENT TO THE ARTICLES OF INCORPORATION 2. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 3. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 4. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE FINANCE AND AUDIT COMMITTEE AND THE FULL BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, OFFICERS AND EMPLOYEES ARE REQUIRED TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. IF POLICIES NEED TO BE UPDATED, THEY ARE DRAFTED AND THEN REVIEWED WITH LEGAL COUNSEL BEFORE PRESENTATION TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S GENERAL MANAGER. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE ANNUAL REPORT IS LISTED ON WEBSITE EACH YEAR THAT ALSO INCLUDED STEC'S ANNUAL FINANCIAL STATEMENTS. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. 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. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF THE PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR AND EMPLOYEE OFFICER A QUESTIONNAIRE AND TIME LOG. 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 AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. 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: 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. 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, LINE 24C: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMIN & GENERAL SALARIES EXPENSE $ 6,025,238 OFFICE SUPPLIES 198,846 OUTSIDE SERVICES 4,525,468 INSURANCE 2,229,931 INJURIES & DAMAGES 514,766 MANAGERS MEETING & TRAVEL EXPENSE 29,662 ANNUAL MEETING 21,771 DIRECTORS 314,642 DUES & SUBSCRIPTIONS 361,352 MISCELLANEOUS GENERAL EXPENSE 424,233 EVENTS, TRAINING & EDUCATION 513,990 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $15,159,899 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (229,200) LESS: RECLASS OF LABOR TO PART IX, LINES 5&7 (4,742,792) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (2,950,270) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990 $ 7,237,637 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 $23,961,180 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (229,200) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (184,440) LESS: KEY EMPLOYEE COMPENSATION REPORTED IN LINE 5 (319,719) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,336,824 PLUS: SALARIES AND WAGES CAPITALIZED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,087,618 TOTAL WAGES ACCRUED AND/OR PAID $28,652,263 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. 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, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS & SALES EXPENSE $ 262,269 GENERAL PLANT MAINTENANCE 1,634,951 DISTRIBUTION EXPENSE 6,575,616 TRANSMISSION EXPENSE 14,602,544 TOTAL OTHER EXPENSES PER FINANCIAL STATEMENTS $23,075,380 LESS: RECLASS OF LABOR TO PART IX, LINES 5&7 (9,647,731) LESS: RECLASS OF BENEFITS TO PART IX, LINES 5&7 (6,125,198) TOTAL OTHER EXPENSES PER FORM 990, PART IX, LINE 24E $ 7,302,451 FORM 990, PART X, LINES 24 & 25 THE COOPERATIVE PREVIOUSLY INCLUDED AMOUNTS OWED ON THE SYNDICATED LINE OF CREDIT AS A COMPONENT OF "OTHER LIABILITIES" ON LINE 25 OF PART X. HOWEVER, FOR THE 2023 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS AS "UNSECURED NOTES AND LOANS PAYABLE TO UNRELATED THIRD PARTIES" ON LINE 24 DUE TO THE NATURE OF SUCH AGREEMENTS. TO INCREASE CONSISTENCY, AMOUNTS OWED ON THE SYNDICATED LINE OF CREDIT IN THE AMOUNT OF $170,000,000 FOR THE 2022 CALENDAR YEAR HAS BEEN RECLASSED FROM LINE 25 TO LINE 24. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 55,217,062. CONTRIBUTED CAPITAL RECEIVED WITH PLANT ACQUISITION 18,021,860. EQUITY METHOD INCOME FROM SUBSIDIARY 84,854. BOOK OVER TAX DEPRECIATION 6,779,703. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO A FINANCE AND AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. SOUTH TEXAS SOLAR POWER LLC PO BOX 119 NURSERY TX 77976 833169048 SOLAR POWER GENERATION TX SOUTH TEXAS ELECTRIC COOPERATIVE INC C 853801 299957 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 SOUTH TEXAS SOLAR POWER LLC A 9550 SOUTH TEXAS SOLAR POWER LLC R 853801 PURCHASE POWER AGREEMENT