2024-07-30T08:04:00-07:00 2023-12-31 990 2023-01-01 741937134 SAN MIGUEL ELECTRIC COOPERATIVE INC SANM 8307843411 PO Box 280 Jourdanton TX 78026 Craig Courter General Manager 8307843411 2024-05-20 1 2023 2024-08-08 14:25:15Z Craig Courter PO Box 280 Jourdanton TX 78026 184952276 0 X http://www.smeci.net/ X 1977 TX San Miguel was created for the sole purpose of owning and operating a 400 MW mine-mouth lignite-fired generating plant and associated mining facilities to furnish power and energy to its member cooperatives. 19 19 180 0 0 0 0 0 179295050 175872850 5014499 6072762 4015464 3006664 188325013 184952276 0 0 2338144 4434619 20913387 19435192 0 0 0 165073482 161082465 188325013 184952276 0 0 558755810 539268827 443777203 420990619 114978607 118278208 Provide safe, reliable and affordable power to our members through diligent resource management, environmental stewardship, and employee growth, while helping to meet needs within the communities we serve. Maintain a dependable power supply at the lowest possible and competitive cost to our customers through integrity, hard work, and safety. 0 0 San Miguel Electric Cooperative, Inc. was created for the sole purpose of owning and operating a 400 Megawatt mine-mouth lignite-fired generating plant and associated mining facility to furnish power and energy to its members on a cooperative basis. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 97 0 1 180 1 0 0 0 0 0 174658036 10294240 0 0 0 X 19 19 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Tiffany Mora 8307843411 PO Box 280 Jourdanton TX 78026 X Craig Courter General Manager 50 X 402366 0 75863 Eric Halfmann Engineering & Maintenance Manager 50 X 257256 0 49963 Derrick Brummett Chief Financial Officer (Jan - April) 40 X 263480 0 34083 David Burris Fuels Manager 50 X 211812 0 29851 David Loeffler Class A Mechanic 40 X 147309 0 51528 Derek Burns Operations Manager 40 X 149831 0 39289 Benino Ramirez Mechanic Crew A 40 X 142124 0 43932 Patrick Rakowitz Mechanic Leadman 40 X 142367 0 40299 Santiago Carrasco Electric Leadman 40 X 135472 0 37230 Vanessa Pawelek Administrative Services Manager (May - Dec.) 40 X 137613 0 32847 Brian Acosta Director 6 X 15252 0 0 Rolando Alaniz Director 5 X 15072 0 0 Michael Jacobs Director 4 X 14400 0 0 John Roach Director 12 X 14160 0 0 Mike Ables Director 4 X 13826 0 0 David Rosse Director 4.5 X 13800 0 0 Clyde Stewart Assistant Secretary/Treasurer 7 X 13725 0 0 Kenneth White President 7 X 13700 0 0 Clif Lange Director 10 X 13650 0 0 Colt Haack Director 7 X 13488 0 0 Bode Hausmann Director 4.5 X 13440 0 0 Larry Schendel Director 2 X 13020 0 0 Ron Hughes Director 4 X 12925 0 0 Trey Grebe Director 4 X 12820 0 0 Brad Bierstedt Director 4 X 12801 0 0 Blaine Warzecha Vice President 5 X 11996 0 0 Jim Coleman Director 6 X 2145 0 0 Avan Irani Director 6 X 0 0 0 Gary Raybon Director 6 X 0 0 0 2209850 0 434885 71 0 1 0 North American Construction Group 27287 100th Avenue Acheson Alberta CA T7X6H8 Mining Contractor 69357366 Siemens Energy DEPT CH 10169 PALATINE IL 60055 Turbine rebuild contractor 3948042 GIS Construction 1821 N Port Avenue Corpus Christi TX 78401 Contract Labor 3246716 Holt Cat po box 650345 dallas TX 75265 Equipment contractor labor & materials 2505963 The Atlantic Group PO Box 654068 Dallas TX 75265 Contract Labor 5173114 132 0 0 0 0 0 0 0 0 Generation of Electricity 221000 175872850 175872850 0 0 0 0 0 0 175872850 6072762 0 0 6072762 0 0 0 0 135784 0 0 135784 0 0 0 0 0 Sales of SO2 - Emmissions Allowance 221000 10 10 0 0 Transmission 221000 1573684 1573684 0 0 Deferred Revenues 221000 -1214814 -1214814 0 0 2512000 2512000 0 0 2870880 184952276 178743730 0 6208546 X 4434619 1492748 0 14357779 2420448 0 1164217 1497857 16982672 22641490 FUELS 60201727 ADMINISTRATION 3007513 OPERATIONS 14361775 MAINTENANCE 31588321 10801110 184952276 0 0 0 X 97606 95664 33132 6441485 0 0 21325409 9749408 0 0 0 0 0 0 75661489 77153123 31362728 32564163 830877005 526703698 325632378 304173307 0 0 102531414 106948852 0 2111654 2142825 558755810 539268827 17920284 10327055 0 0 38184067 38021900 67449740 63813757 0 0 0 0 91169069 276638417 192164840 3490800 36889203 28698690 443777203 420990619 X 0 0 0 0 114978607 118278208 114978607 118278208 558755810 539268827 X 0 0 0 0 0 3299601 X X 0 1 X 1 0 25256065 0 25256065 529056740 0 389350379 139706361 0 0 0 0 164554555 0 119859792 44694763 112009645 0 17493527 94516118 304173307 Mine Closure & Plant Decommissioning 90912000 F Ash Pond Cleanout Funds 2283993 F Patronage Capital from Associated Cooperatives 3625816 F Restricted Investments in Associated Organizations 10127043 F 106948852 Accumulated Provisions for Mine Closure 23280396 Asset Retirement Obligation 5418294 28698690 X 178743731 0 0 0 0 0 178743731 0 6208545 6208545 184952276 180517657 0 0 0 0 0 180517657 0 4434619 4434619 184952276 Schedule D, Part X, Line 2 ASC topic #740, "Income Taxes" requires that an enterprise cannot recognize a tax benefit in its financial statements unless it concludes that it is "more likely than not: that the benefit will be sustained on audit by the taxing authority". Tax-exempt and not-for-profit enterprises are also within the scope of the ASC, since the decision that some or all of an enterprise's activities are not subject to income taxes is itself a tax position for which the interpretation requires evaluation. At adoption, and annually thereafter, San Miguel applies the requirements to all tax positions for which the statute of limitations remained open. San Miguel recognizes the financial benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. San Miguel Electric Cooperative, Inc. was determined by the Internal Revenue Service to be an exempt cooperative for purposes of federal income taxes, under Section 501(c)(12) of the Internal Revenue code, in years when receipts from members, for the purpose of meeting losses and expenses, are at lease 85 percent of the total income. The amount of unrecognized tax benefits as of December 31, 2023, was zero. Schedule D, Part XI, Line 4b See general explanations on Schedule O for form 990-part 1 line 19. Schedule D, Part XII, Line 4b See general explanations on Schedule O for form 990-part 1 line 19. X X X X 1 0 0 Craig Courter General Manager 400235 0 0 0 2131 0 30225 0 45638 0 478229 0 0 Eric Halfmann Engineering & Maintenance Manager 183614 0 16256 0 57386 0 12026 0 37936 0 307218 0 0 0 David Burris Fuels Manager 186705 0 15877 0 9230 0 19828 0 10023 0 241663 0 0 0 Derrick Brummett Chief Financial Officer (Jan - April) 71225 0 18707 0 173548 0 17824 0 16259 0 297563 0 0 0 David Loeffler Class A Mechanic 144971 0 1938 0 400 0 15616 0 35912 0 198837 0 0 0 Derek Burns Plant Manager 146558 0 1707 0 1567 0 5736 0 33553 0 189121 0 0 0 Benino Ramirez Mechanic Crew A 139917 0 1807 0 400 0 9779 0 34152 0 186055 0 0 0 Patrick Rakowitz Mechanic Leadman 136155 0 1612 0 4600 0 8270 0 32028 0 182665 0 0 0 Vanessa Pawelek Administrative Services Manager (May - Dec.) 137090 0 522 0 0 0 7156 0 32847 0 177615 0 0 0 Santiago Carrasco Electric Leadman 133522 0 1550 0 400 0 6138 0 31092 0 172702 0 0 0 Schedule J, Part I, Line 4 During 2023, a severance payment was issued to an officer. Such payment was not material to the financial position, nor to the overall mission of the Cooperative. A Atascosa County Industrial Development Corp 870810599 046578AC4 2020-06-18 62540000 To redeem 2008 Series Pollution Control Bonds 0 0 0 A 2670000 54910000 0 0 0 0 0 0 0 0 0 0 1982 1 0 1 1 A 0 0 0 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 0 A 1 Schedule K, Part IV, Line 2c-06/18/2020 62,540,000 Atascosa County Industrial Development Corp Atascosa County Industiral Development - Rebate calculation was updated June 18, 2020. Form 990, Part I, Line 19 For the 2011 tax reporting year, the IRS made a significant change to the 990 instructions, whereby entitles exempt under 501 (c)(12) of the Internal Revenue Code are to report patronage dividend paid to their members on Part IX, Line 4. San Miguel being duly organized in the State of Texas and exempt under 501(c)(12) of the Internal Revenue Code operates on a cooperative, non-profit basis for the mutual benefit of its patrons. As such, all revenues or margins received in excess of operating costs are retained as equity and allocated a credit to each patron's capital account. Should the Board of Directors determine that the financial conditions of the Cooperative will not be impaired, and there are not requirements which restrict such distribution, the Board of Directors may choose to retire credits reflected in member accounts in part or in in full. Retirements of capital credits are restricted under San Miguel's current mortgage indenture until certain thresholds are met. San Miguel interprets the definition of "paid" to mean paid in money, property, or qualified written allocations: therefore, San Miguel is reporting as allocated, for the 2011 and all subsequent tax reporting years, all excess margins as paid to its patrons on an annual basis in accordance with the above referenced interpretations of the IRS instructions. Form 990, Part VI, Section A, Line 1b The decisions of the San Miguel Board of Directors are reported directly to the governing boards of the 10 member cooperatives. Certain contracts, i.e. wholesale power contracts are subject to the approval by the members of the 10 cooperatives. Form 990, Part VI, Section A, Line 6 San Miguel Electric Cooperative, Inc (San Miguel) is a not-for-profit cooperative corporation organized for the purpose of generating electric power. San Miguel sells power pursuant to a wholesale power contract with South Texas Electric Cooperative, Inc (South Texas), which is a generation of transmission cooperative. South Texas in turn, sells power at wholesale to their 10 member cooperatives, all of which are distribution cooperatives providing retail service to their member-customers. Form 990, Part VI, Section A, Line 7a San Miguel is governed by a board of 19 directors, each of whom is selected by and represents one of the 10 member cooperatives. The directors are elected annually at the San Miguel Annual Meeting. Form 990, Part VI, Section A, Line 7b The decisions of the San Miguel Board of Directors are reported directly to the governing boards for the member cooperatives. Certain contracts, i.e., wholesale power contracts are subject to the approval by the members of the cooperatives. Form 990, Part VI, Section B, Line 11b A copy of the draft IRS Form 990 was provided to each of the current board members for the July 2024 meeting. Company personnel reviewed the form 990 at the Finance and Audit Commitee meeting on July 18, 2024, with the full board present. Board members were given an opportunity to ask any questions prior to the filing of the return. Form 990, Part VI, Section B, Line 12c The San Miguel Board of Directors approved a Conflict-of-Interest Policy on December 10,2008. Since then, the policy has been amended on 07/21/2017 and 8/19/2022. The policy requires each "member of the Board of Directors, the General Manager, General Counsel and all Department Managers to file with the President of the Board of Directors, a Disclosure Report within (30) days after attaining such a position or status and then annually thereafter". The policy further specifies that "The President of the Board of Directors shall report no later than the regular March monthly Board meeting each year that he or she has received disclosure reports from all reporting persons signed and dated by February 15th of the current year". The disclosure report includes questions regarding each person's personal and business relationships and any potential claims against San Miguel. In accordance with policy requirements, the above-mentioned parties are asked to complete and sign both the disclosure report and/or the conflict-of-interest report on an annual basis. Form 990, Part VI, Section B, Line 15 The Salaries of all officers are based on a national survey for similar positions in the utility industry and recommended by an independent management consulting agency. Form 990, Part VI, Section C, Line 19 As San Miguel has outstanding loan funds guaranteed by the Rural Utilities Service, the financial statements are a matter of public record and are provided to individuals upon request. We do not typically make San Miguel's governing documents or conflict of interest policy available to the public. Form 990, Part VII, Section A, Line 1a See general explanation on Schedule O for Form 990, Part VI, Section B, Line 15. Form 990, Part IX, Line 4 See general explanation on Schedule O for core Form 990, Part I, Line 19. Form 990, Part X, Line 2 See general explanations on schedule O for form 990 Form 990, Part XI, Line 9 As part of the Brazos Transaction, funds were received in advance for Brazos' portion or debt obligations. During 2023, $1,135,019 of original debt obligations was amortized. As referenced on Schedule O, Part 1, Line 19, San Miguel's margins received in excess of operating costs are retained as equity and allocated as a credit to each patron's capital account. The amount of margins retained in 2023 was $4,434,619. The net margins and prepaid debt netted to $3,299,601. Form 990, Part XII, Line 2c Yes, the organization does have a committee that assumes responsibility for oversight of the audit, but no changes in its oversight process or selection has occurred during 2023. Filing was not late extension was filed and approved before due date.