2024-11-15T23:10:19-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 720170797 DIXIE ELECTRIC MEMBERSHIP CORPORATION DIXI 8446933626 PO BOX 15659 BATON ROUGE LA 70895 RANDALL PIERCE CEO & GENERAL MANAGER 8446933626 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z RANDALL PIERCE PO BOX 15659 BATON ROUGE LA 70895 255138584 0 X WWW.DEMCO.ORG X 1938 LA TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 13 13 286 0 126201 70943 0 0 314891056 253473042 144640 220605 1940851 1444937 316976547 255138584 10000 20588 0 0 29701852 32966070 0 0 0 279219281 222043153 308931133 255029811 8045414 108773 737870324 712484022 618576049 592808886 119294275 119675136 DEMCO IS COMMITTED TO SAFELY PROVIDING ITS MEMBER-OWNERS WITH ECONOMICAL AND RELIABLE ELECTRIC POWER AND RELATED SERVCES. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 117,458 ACTIVE SERVICES AT YEAR END. 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 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 115 0 286 1 1 1 0 0 0 0 255353090 2172867 0 0 0 X 13 13 0 0 1 0 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 0 LA X NICHOLAS SMITH 8446933626 PO BOX 15659 BATON ROUGE LA 70895 X DANIEL BERTHELOT PRESIDENT 5.00 X X 38603 0 0 RANDY LORIO VICE PRESIDENT 2.40 X X 36265 0 0 DENNIS LOTT SECRETARY/TREASURER 3.80 X X 17988 0 0 LESLIE FALKS DIRECTOR 4.10 X 39978 0 0 STEVE IRVING DIRECTOR 5.10 X 34278 0 0 RICHARD SITMAN DIRECTOR 2.80 X 38628 0 0 JILL MCGRAW DIRECTOR 3.00 X 22534 0 0 MELISSA DUFRECHE DIRECTOR 4.40 X 11175 0 0 EDWARD DELEE DIRECTOR 3.90 X 33865 0 0 KEVIN BEACHAMP DIRECTOR 3.70 X 16388 0 0 TRESA BYRD DIRECTOR 2.30 X 20267 0 0 MIKE ANDERSON DIRECTOR 4.80 X 9975 0 0 ELINDA TAILLON DIRECTOR 3.80 X 21467 0 0 RANDALL PIERCE GENERAL MANAGER/CHIEF EXECUTIVE OFFICER 50.00 X 457241 0 187291 PEGGY MARANAN CHIEF FINANCIAL OFFICER 50.00 X 208177 0 62873 PEARL OVERHULTZ CHIEF CORPORATE SERVICES OFFICER 40.00 X 162603 0 157236 MARK PHILLIPS CHIEF ENGINEERING & OPERATIONS OFFICER 45.00 X 178525 0 113598 MELVIN PARKER SUBSTATION TECHNICIAN CREW LEADER 52.00 X 183851 0 64689 KEVIN COMMANDER CONTROLLER 40.00 X 170376 0 9774 MATT GIBSON DIRECTOR OF ENGINEERING 40.00 X 166353 0 52798 PATRICK MANSFIELD INFORMATION TECHNOLOGY MANAGER 40.00 X 157751 0 82439 SCOTT DELEE CREW LEADER 50.00 X 148540 0 32045 2174828 0 762743 116 0 1 0 STUART IRBY CO PO BOX 843959 DALLAS TX 75284 ELECTRICAL/MATERIALS CONTRACTOR 5545449 V-TECH INC 200 CS FLOYD RD LOGANVILLE GA 30052 ELECTRICAL/MATERIALS CONTRACTOR 5224787 SOLPOWERLINES LLC 1613 JB HUNT DR BLDG 1708 ALEXANDRIA LA 71303 SYSTEM IMPROVEMENTS CONTRACT LABOR 3928176 SHELTON ENERGY SOLUTIONS LLC 1439 CNETRE COURT STE 600 ALEXANDRIA LA 71301 SYSTEM IMPROVEMENTS CONTRACT LABOR 2904433 ZIELIES TREE SERVICE INC 28190 STATE HIGHWAY 137 ASHLAND WI 54806 ROW CUTTING, TREE REMOVALS, AND STORM CR 2298605 69 X SALES OF ELECTRICITY 221000 248553434 248553434 SERVICE FEES 221000 3616222 3616222 PATRONAGE DIVIDENDS 221000 1303386 1303386 253473042 213061 213061 125655 0 125655 125655 125655 7544 0 7544 7544 7544 546 0 546 546 POLE ATTACHMENT INCOME 221000 1367304 1367304 MUTUAL AID ASSISTANCE 221000 -48568 -48568 1318736 255138584 253432018 126201 1580365 X 20588 1868955 16631524 3059224 10284869 1121498 16324941 24915109 PURCHASED POWER 147941102 DISTRIBUTION EXPENSE 15840836 TAXES 7002077 UNRELATED BUS. INC. TAX 15800 10003288 255029811 7114366 6488986 27241899 37154013 270304 323447 8383208 8890429 14355785 10151001 820352436 213102176 623096772 607250260 12154020 12790543 45253970 29435343 737870324 712484022 51275081 29340473 521408355 528342503 45892613 35125910 618576049 592808886 X 374625 356040 0 0 118919650 119319096 119294275 119675136 737870324 712484022 X 108773 272088 X X 0 1 X 1 0 9895295 9895295 21043629 7290154 13753475 644977 7440 637537 757491916 205804582 551687334 31276619 31276619 607250260 ACCRUED OPERATING TAXES 580277 CONSUMER DEPOSITS 9282409 DEFERRED POST RETIREMENT BENEFITS 20312334 OVER-COLLECTED PURCHASE POWER COST ADJUSTMENT 809192 DEFERRED CREDITS - OTHER 446146 CONTINGENT LIABILITY - FEMA 3695552 35125910 X PART X, LINE 2: THE COOPERATIVE FOLLOWS THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITIONS ARE TIMING DIFFERENCES IMPACTING TAXABLE INCOME. THE ENTITIES HAVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE OR THE APPLICABLE 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. X X X 0 0 0 RANDALL PIERCE GENERAL MANAGER/CHIEF EXECUTIVE OFFI 376085 0 76008 0 5148 0 156091 0 31200 0 644532 0 0 0 PEARL OVERHULTZ CHIEF CORPORATE SERVICES OFFICER 160265 0 1221 0 1117 0 132016 0 25220 0 319839 0 0 0 MARK PHILLIPS CHIEF ENGINEERING & OPERATIONS OFFIC 166786 0 601 0 11138 0 87598 0 26000 0 292123 0 0 0 PEGGY MARANAN CHIEF FINANCIAL OFFICER 197925 0 529 0 9723 0 52865 0 10008 0 271050 0 0 0 MELVIN PARKER SUBSTATION TECHNICIAN CREW LEADER 137584 0 1051 0 45216 0 33419 0 31270 0 248540 0 0 0 PATRICK MANSFIELD INFORMATION TECHNOLOGY MANAGER 146327 0 565 0 10859 0 52019 0 30420 0 240190 0 0 0 MATT GIBSON DIRECTOR OF ENGINEERING 165101 0 541 0 711 0 27802 0 24996 0 219151 0 0 0 SCOTT DELEE CREW LEADER 146273 0 1304 0 963 0 4317 0 27728 0 180585 0 0 0 KEVIN COMMANDER CONTROLLER 93163 0 265 0 76948 0 975 0 8799 0 180150 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. 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. RANDALL PIERCE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 146,191 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 156,091 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (146,191) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 101,032 EXPENSE TO THE COOPERATIVE $ 110,932 PEARL OVERHULTZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 127,036 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,980 TOTAL REPORTED IN COLUMN C $ 132,016 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (127,036) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,521 EXPENSE TO THE COOPERATIVE $ 52,501 MARK PHILLIPS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 82,412 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,186 TOTAL REPORTED IN COLUMN C $ 87,598 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (82,412) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,960 EXPENSE TO THE COOPERATIVE $ 53,146 PEGGY MARANAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 46,978 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,887 TOTAL REPORTED IN COLUMN C $ 52,865 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (46,978) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,257 EXPENSE TO THE COOPERATIVE $ 62,144 MELVIN PARKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,379 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,040 TOTAL REPORTED IN COLUMN C $ 33,419 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,379) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,122 EXPENSE TO THE COOPERATIVE $ 25,162 PATRICK MANSFIELD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,295 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,724 TOTAL REPORTED IN COLUMN C $ 52,019 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,295) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,286 EXPENSE TO THE COOPERATIVE $ 51,010 MATT GIBSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,031 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,771 TOTAL REPORTED IN COLUMN C $ 27,802 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,031) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,591 EXPENSE TO THE COOPERATIVE $ 50,362 SCOTT DELEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,317 TOTAL REPORTED IN COLUMN C $ 4,317 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,044 EXPENSE TO THE COOPERATIVE $ 26,361 KEVIN COMMANDER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 975 TOTAL REPORTED IN COLUMN C $ 975 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,323 EXPENSE TO THE COOPERATIVE $ 13,298 JACOB OVERHULTZ FAMILY RELATIONSHIP - KEY EMPLOYEE (P. OVERHULTZ) 117971 EMPLOYMENT 0 FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE I - MEMBERSHIP SECTION 1.04. JOINT MEMBERSHIP, WAS AMENDED TO STATE "THE TERM "MEMBER" AS USED IN THESE BYLAWS SHALL BE DEEMED TO INCLUDE EACH SPOUSE IN THE MARRIAGE AND ANY PROVISIONS RELATING TO THE RIGHTS AND LIABILITIES OF MEMBERSHIP SHALL APPLY EQUALLY WITH RESPECT TO THE SPOUSES." ARTICLE IV - DIRECTORS SECTION 4.08. COMPENSATION, WAS AMENDED TO STATE "DIRECTORS SHALL NOT RECEIVE ANY SALARY FOR THEIR SERVICES AS DIRECTORS, BUT MAY RECEIVE A FIXED SUM AND EXPENSES FOR ATTENDANCE AT ANY OF THE FOLLOWING: 1) BOARD MEETINGS, 2) COMMITTEE MEETINGS, AND 3) OTHER MEETINGS OR FUNCTIONS WHICH THE BOARD OR THE CEO/GENERAL MANAGER HAS REQUESTED THEY ATTEND; AND SHALL RECEIVE HEALTH INSURANCE BENEFITS FOR THEMSELVES AND THEIR DEPENDENTS THROUGH DEMCO'S HEALTH INSURANCE PROGRAM. DEPENDENTS ARE DEFINED IN DEMCO'S HEALTH BENEFIT PROGRAM SUMMARY PLAN DESCRIPTIONS." SECTION 4.09. "CLOSE RELATIVE" DEFINED, WAS AMENDED TO CHANGE "HUSBAND OR WIFE" TO "SPOUSE". ARTICLE XI - GENERAL MISCELLANEOUS SECTION 11.01. MEMBERSHIP IN OTHER ORGANIZATIONS, WAS AMENDED TO STATE "DEMCO SHALL HAVE THE RIGHT UPON THE APPROVAL OF THE CEO/GENERAL MANAGER, TO BECOME A MEMBER OF VARIOUS COOPERATIVES, CHAMBERS OR COMMERCE AND OTHER ASSOCIATED TRADE ORGANIZATIONS THAT WILL CONTRIBUTE TO THE OBJECTIVES AND SUCCESS OF DEMCO BOTH LOCALLY AND NATIONALLY." THE DEFINITION OF JOINT MEMBERSHIP WAS ALSO AMENDED TO STATE "AS USED IN THESE BYLAWS SHALL BE DEEMED TO INCLUDE EACH SPOUSE IN THE MARRIAGE AND ANY PROVISIONS RELATING TO THE RIGHTS AND LIABILITIES OF MEMBERSHIP SHALL APPLY EQUALLY WITH RESPECT TO THE SPOUSES, WITHOUT REGARD TO ANY SEPARATE PROPERTY AGREEMENTS OR ANY OTHER LIKE OR SIMILAR AGREEMENTS BETWEEN MARRIED PERSONS." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.DEMCO.ORG. 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 SUBSEQUENT TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN LOUISIANA AND THE NATION. THE CEO UTILIZES 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 SHOWS COMPARATIVE SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN LOUISIANA AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE 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 OF ANY SUCH DOCUMENT. THE BYLAWS AND THE ANNUAL REPORT ARE ALSO POSTED ON THE COOPERATIVE'S WEBSITE. 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, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN, THE ACTUARIAL INCREASE FOR FUTURE RETIREE BENEFITS EARNED AS A PARTICIPANT IN THE DEFINED BENEFIT PLAN, AND THE INSURANCE PREMIUMS PAID 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. 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 MEMBERS. FORM 990, PART IX: THE COOPERATIVE MAINTAINS ITS RECORDS IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR BORROWERS OF THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX. 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 LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY 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 $18,500,479 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (341,411) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (520,998) PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 7,046,661 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 2,427,222 TOTAL WAGES ACCRUED AND/OR PAID $27,111,953 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. IN GENERAL, 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 IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS & SERVICE $ 1,888,720 SALES 885,958 TRANSMISSION 511,169 ADMINSTRATIVE AND GENERAL 6,352,091 OTHER DEDUCTIONS 365,350 TOTAL OTHER EXPENSES PER FROM 990 LINE 24E $10,003,288 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 7,225,822 OFFICE SUPPLIES 1,214,575 OUTSIDE SERVICES 1,839,925 INJURIES & DAMAGES 547,805 PENSION & BENEFITS 1,182,859 REGULATORY COMMISSION 399,599 RENT 202,942 MISCELLANEOUS GENERAL 178,108 DISTRICT & ANNUAL MEETINGS 393,554 DIRECTORS 700,830 INSURANCE 333,864 MAINTENANCE OF GENERAL PLANT 1,775,770 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $15,995,653 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (341,411) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (5,029,079) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (4,273,072) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 6,352,091 FORM 990, PART XI, LINE 9: EQUITY METHOD INCOME FROM SUBSIDIARY 290,675. NET CHANGE IN MEMBERSHIPS -18,587. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO A FINANCE COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. DIXIE BUSINESS DEVELOPMENT CENTER 1810 S RANGE AVE DENHAM SPRINGS LA 70726 721216797 INCUBATOR PROGRAM TO HELP NEW BUSINESS DEVELOP, GROW, AND SUCCEED LA 501(C)(4) DIXIE ELECTRIC MEMBERSHIP CORPORATION 1 DEMCO FOUNDATION INC PO BOX 15659 BATON ROUGE LA 70895 721417423 PROVIDES CHARITABLE ASSISTANCE TO INDIVIDUALS IN THE DEMCO SERVICE AREA LA 501(C)(3) LINE 7 DIXIE ELECTRIC MEMBERSHIP CORPORATION 1 DEMCO ENERGY SERVICES LLC 16262 WAX RD GREENWELL SPRINGS LA 70739 721351783 PROVIDES SURGE PROTECTION SERVICES IN SOUTHEASTERN LA LA DIXIE ELECTRIC MEMEBERSHIP CORPORATION C 453991 778826 1.00000 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 1 1 1 1 0 DEMCO ENERGY SERVICES LLC F 250000 DIVIDEND DECLARATION DEMCO FOUNDATION INC L 95626 PERFORMANCE OF SERVICES DEMCO FOUNDATION INC Q N/A - LESS THAN $50,000 DEMCO ENERGY SERVICES LLC Q 422698 REIMBURSEMENTS FOR EXPENSES DIXIE BUSINESS DEVELOPMENT CENTER Q N/A - LESS THAN $50,000 DEMCO FOUNDATION INC O 75157 LABOR DISTRIBUTION DEMCO ENERGY SERVICES LLC O 75039 LABOR DISTRIBUTION DEMCO ENERGY SERVICES LLC P 207140 REIMBURSEMENTS FOR EXPENSES DIXIE BUSINESS DEVELOPMENT CENTER R N/A - LESS THAN $50,000 DEMCO FOUNDATION INC R N/A - LESS THAN $50,000 DEMCO ENERGY SERVICES LLC R N/A - LESS THAN $50,000