2024-11-15T13:10:28-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 752701263 TRINITY VALLEY ELECTRIC COOPERATIVE INC TRIN 9729322214 PO BOX 888 KAUFMAN TX 75142 ROBERT WHITE CFO 9729322214 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z JEFFREY L LANE PO BOX 888 KAUFMAN TX 75142 201383696 0 X WWW.TVEC.NET X 1997 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 215 0 0 0 0 0 234206423 199721070 450504 210596 1520948 1438127 236177875 201369793 7448 5242 12818976 7632537 17523234 17729249 0 0 0 204309692 175185226 234659350 200552254 1518525 817539 421037619 429806254 232631218 240157589 188406401 189648665 TRINITY VALLEY ELECTRIC COOPERATIVE, INC. IS COMMITTED TO DELIVER SAFE AND RELIABLE ELECTRIC POWER AT A COMPETITIVE PRICE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 84,867 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 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 97 0 215 1 0 0 0 0 0 195953196 30052794 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ROBERT WHITE CFO 9729322214 1800 HWY 243 EAST KAUFMAN TX 75142 X HOWARD TILLISON CHAIRMAN 14.90 X X 13500 0 0 CAROLYN MINOR VICE CHAIRMAN 10.00 X X 11850 0 0 JO ANN HANSTROM SECRETARY 10.50 X X 10950 0 0 JEFF PRIEST DIRECTOR 10.10 X 10950 0 0 EDWARD REEVE DIRECTOR 9.30 X 10950 0 0 PAUL WEATHERFORD DIRECTOR 8.30 X 29282 0 0 JACK ENDRES DIRECTOR 9.00 X 10650 0 0 JEFFREY LANE CEO/GENERAL MANAGER 50.00 2.00 X 347402 0 177112 THOMAS WATSON COO/ASST. GENERAL MANAGER 45.00 X 257582 0 158748 ROBERT WHITE CFO 45.00 X 177656 0 46421 RODNEY WESLEY DIRECTOR OF ENGINEERING/OPERATIONS 47.00 X 198972 0 128616 GARY SHERRARD MANAGER OF SUB/TRANS 40.00 X 166716 0 113645 DONNA HINDMAN DIRECTOR OF CORP SERVICES 50.00 X 168420 0 66674 THOMAS DURDEN MANAGER OF OPERATIONS 50.00 X 166329 0 93124 TIMOTHY CRAIG MANAGER OF ENGINEERING 50.00 X 165036 0 54544 PHILLIP HARRISON MANAGER OF OPERATIONS 40.00 X 164122 0 74686 BOBBI BYFORD DIRECTOR OF CORP RELATIONS 50.00 X 169106 0 65785 RAYMOND CHOYCE JOURNEYMAN 60.00 X 178743 0 50772 JOHN JACKSON OPERATIONS SUPERVISOR 55.00 X 163786 0 56767 BRYAN HICKS JOURNEYMAN 60.00 X 162687 0 40574 RODNEY MILLS CREW FOREMAN 60.00 X 161522 0 82190 PAUL CAMACHO CREW FOREMAN 60.00 X 160900 0 57590 2907111 0 1267248 77 0 1 0 TEXAS STATE UTILITIES 3112 WICHITA CT FORT WORTH TX 75140 OVERHEAD/UNDERGROUND CONTRACTOR 4252062 SPARKS ENERGY 1370 KIRBY BRIDGE RD DANVILLE AL 35619 OVERHEAD CONTRACTOR 2713353 RAMIREZ TREE SERVICE INC PO BOX 1975 ATHENS TX 75751 RIGHT OF WAY CONTRACTOR 2698518 CS TREE SERVICES 6402 RAYMOND RD KAUFMAN TX 75142 RIGHT OF WAY CLEARING 2072937 REI UTILITY SERVICES INC PO BOX 1070 ATHENS TX 75751 LOWER UTILITY ASSISTANCE & STAKING SERVI 1782183 20 X SALES OF ELECTRICITY 221000 189875606 189875606 PATRONAGE DIVIDENDS 221000 7679179 7679179 SERVICE FEES 221000 1323116 1323116 TRANSMISSION WHEELING 211100 843169 843169 199721070 68293 68293 155203 12900 142303 142303 142303 2410 1003 1407 1407 POLE ATTACHMENT INCOME 221000 831184 831184 BOND SECURITIZATION P'SHIP INCOME 221000 605536 605536 1436720 201369793 199864780 0 1505013 X 5242 7632537 3058828 9554090 1109637 3183956 822738 8119959 15683862 PURCHASED POWER 132742247 DISTRIBUTION EXPENSE 11372004 ADMIN & GENERAL EXPENSE 4322304 CUSTOMER ACCOUNTS 2202573 742277 200552254 4388364 1359111 750031 750031 8040366 9319503 1410496 1154641 854295 4679150 483780394 147034365 336700079 336746029 64554907 71469855 4339081 4327934 421037619 429806254 32085880 19839289 786818 791228 158329976 171692027 41428544 47835045 232631218 240157589 X 682620 695850 0 0 187723781 188952815 188406401 189648665 421037619 429806254 X 817539 424725 X X 0 1 X 1 0 0 1 X 2684386 2684386 19695028 4568058 15126970 454600130 142466307 312133823 6800850 6800850 336746029 PATRONAGE CAPITAL - TEC 4284090 C PATRONAGE CAPITAL - CFC 6308694 C PATRONAGE CAPITAL - RAYBURN 53799968 C PATRONAGE CAPITAL - SEDC 477158 C PATRONAGE CAPITAL - NRTC 83413 C PATRONAGE CAPITAL - NISC 100 C INVESTMENTS IN CTC - CFC 3034802 C OTHER INVEST ASSOC. ORGANIZATIONS 1100 C INVESTMENTS IN BOND SECURITIZATION PARTNERSHIP 3480530 C 71469855 ACCUMULATED PROVISION FOR PENSION & BENEFITS 21248516 CONSUMER DEPOSITS 2895950 ACCRUED OPERATING TAXES 93825 OTHER ACCRUED LIABILITIES 78980 DEFERRED CREDIT - NTMWD FUND 504499 DEFERRED CREDIT - WEST TX ICS FUND 250031 DEFERRED CREDIT - ADVANCE AID TO CONSTRUCTION 2148374 ACCRUED POWER COST - OVERCOLLECTED 20614870 47835045 X 201369793 0 201369793 0 201369793 192919717 0 192919717 7632537 7632537 200552254 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 REPORTED TO 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 REPORTED TO 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 REPORTED TO 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 XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 7,632,537. 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 ALLOCATED OR TO BE 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". X X X X 0 0 0 JEFFREY LANE CEO/GENERAL MANAGER 324729 0 2747 0 19926 0 140559 0 36553 0 524514 0 0 0 THOMAS WATSON COO/ASST. GENERAL MANAGER 241241 0 2397 0 13944 0 124328 0 34420 0 416330 0 0 0 RODNEY WESLEY DIRECTOR OF ENGINEERING/OPERATIONS 187699 0 372 0 10901 0 115025 0 13591 0 327588 0 0 0 GARY SHERRARD MANAGER OF SUB/TRANS 153965 0 2372 0 10379 0 89782 0 23863 0 280361 0 0 0 THOMAS DURDEN MANAGER OF OPERATIONS 152951 0 2426 0 10952 0 68571 0 24553 0 259453 0 0 0 RODNEY MILLS CREW FOREMAN 150120 0 3426 0 7976 0 69677 0 12513 0 243712 0 0 0 PHILLIP HARRISON MANAGER OF OPERATIONS 152255 0 2426 0 9441 0 39466 0 35220 0 238808 0 0 0 DONNA HINDMAN DIRECTOR OF CORP SERVICES 163372 0 2576 0 2472 0 53430 0 13244 0 235094 0 0 0 BOBBI BYFORD DIRECTOR OF CORP RELATIONS 158756 0 2372 0 7978 0 38761 0 27024 0 234891 0 0 0 RAYMOND CHOYCE JOURNEYMAN 175407 0 1472 0 1864 0 30387 0 20385 0 229515 0 0 0 ROBERT WHITE CFO 174587 0 2372 0 697 0 13152 0 33269 0 224077 0 0 0 JOHN JACKSON OPERATIONS SUPERVISOR 148069 0 2426 0 13291 0 33529 0 23238 0 220553 0 0 0 TIMOTHY CRAIG MANAGER OF ENGINEERING 161446 0 1426 0 2164 0 40770 0 13774 0 219580 0 0 0 PAUL CAMACHO CREW FOREMAN 158370 0 1426 0 1104 0 34537 0 23053 0 218490 0 0 0 BRYAN HICKS JOURNEYMAN 159433 0 2476 0 778 0 8299 0 32275 0 203261 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. JEFFREY L. LANE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 134,202 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,357 TOTAL REPORTED IN COLUMN C $ 140,559 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (134,202) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 65,329 EXPENSE TO THE COOPERATIVE $ 71,686 THOMAS A. WATSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 119,574 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,754 TOTAL REPORTED IN COLUMN C $ 124,328 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (119,574) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,908 EXPENSE TO THE COOPERATIVE $ 53,662 RODNEY WESLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 111,408 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,617 TOTAL REPORTED IN COLUMN C $ 115,025 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (111,408) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,336 EXPENSE TO THE COOPERATIVE $ 40,953 GARY SHERRARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 86,787 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,995 TOTAL REPORTED IN COLUMN C $ 89,782 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (86,787) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,708 EXPENSE TO THE COOPERATIVE $ 33,703 THOMAS DURDEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,578 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,993 TOTAL REPORTED IN COLUMN C $ 68,571 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,578) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,672 EXPENSE TO THE COOPERATIVE $ 33,665 RODNEY MILLS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 66,772 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,905 TOTAL REPORTED IN COLUMN C $ 69,677 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (66,772) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,313 EXPENSE TO THE COOPERATIVE $ 29,218 PHILLIP HARRISON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,498 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,968 TOTAL REPORTED IN COLUMN C $ 39,466 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,498) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,461 EXPENSE TO THE COOPERATIVE $ 30,429 DONNA HINDMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 50,184 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,246 TOTAL REPORTED IN COLUMN C $ 53,430 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (50,184) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,487 EXPENSE TO THE COOPERATIVE $ 36,733 BOBBI BYFORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,530 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,231 TOTAL REPORTED IN COLUMN C $ 38,761 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,530) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,163 EXPENSE TO THE COOPERATIVE $ 35,394 RAYMOND CHOYCE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,332 EMPLOYER CONTRIBUTION TO 401(K) PLAN 55 TOTAL REPORTED IN COLUMN C $ 30,387 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,332) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,513 EXPENSE TO THE COOPERATIVE $ 21,568 ROBERT WHITE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,313 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,839 TOTAL REPORTED IN COLUMN C $ 13,152 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,313) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,921 EXPENSE TO THE COOPERATIVE $ 37,760 JOHN JACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,597 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,932 TOTAL REPORTED IN COLUMN C $ 33,529 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,597) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,418 EXPENSE TO THE COOPERATIVE $ 32,350 TIMOTHY W. CRAIG: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 40,770 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 40,770 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (40,770) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,290 EXPENSE TO THE COOPERATIVE $ 32,290 PAUL CAMACHO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,462 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,075 TOTAL REPORTED IN COLUMN C $ 34,537 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,462) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,584 EXPENSE TO THE COOPERATIVE $ 28,659 BRYAN HICKS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,206 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,093 TOTAL REPORTED IN COLUMN C $ 8,299 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,206) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,227 EXPENSE TO THE COOPERATIVE $ 22,320 PART I, LINE 19: 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, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $817,539, WHICH IS THE EFFECT OF NON-OPERATING MARGINS BEING RETAINED TO OFFSET A PRIOR YEAR LOSS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: NON-OPERATING MARGINS RETAINED $ 817,539 (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 817,539 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS) PART I, LINE 14 $ 7,632,537 TOTAL 2023 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 8,450,076 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 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 THE BOARD OF DIRECTORS AND EMPLOYEES OF THE COOPERATIVE MUST DISCLOSE ANY SITUATION WHICH VIOLATES, OR MAY APPEAR TO VIOLATE THE INTENT OF THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 A COMPENSATION COMMITTEE COMPRISED OF MEMBERS OF THE BOARD USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION SURVEY, AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. OTHER INTERNAL AND/OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. THE COMPENSATION COMMITTEE RECOMMEND THE CEOS SALARY TO THE BOARD OF DIRECTORS FOR APPROVAL AFTER REVIEWING PERFORMANCE AND ALL RELEVANT DATA. THE CEO AND COMPENSATION COMMITTEE UTILIZES THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND 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 TEXAS AND THE NATION. OTHER INTERNAL AND/OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ADDITIONALLY, THE COOPERATIVE DISTRIBUTES A SUMMARIZED COPY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL MEETING REPORT. 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, DENTAL, VISION, 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 ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, 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. 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: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. 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 ITS 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 $12,612,918 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (98,132) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (979,355) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,127,062 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,284,692 TOTAL WAGES ACCRUED AND/OR PAID $17,947,185 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 4,016,167 OFFICE SUPPLIES 1,891,497 OUTSIDE SERVICES EMPLOYED 488,896 INSURANCE 1,354,617 REGULATORY COMMISSION 700,690 DIRECTORS 267,069 MISCELLANEOUS GENERAL 20,400 MAINTENANCE OF GENERAL PLANT 487,274 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $ 9,226,610 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINES 5 (98,132) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,144,514) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,661,660) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,322,304 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 ON FORM 990. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GAAP, HOWEVER. FORM 990, PART IX, LINE 1: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 13,230. OTHER COMPREHENSIVE INCOME - PENSION & BENEFITS -2,504,326. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 7,632,537. PATRONAGE CAPITAL RETIRED -4,716,716. 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. TVEC CHARITABLE FOUNDATION 1800 HWY 243 E KAUFMAN TX 75142 455548476 CHARITABLE GRANTS TX 501(C)(3) LINE 7 TRINITY VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 TVEC CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 TVEC CHARITABLE FOUNDATION O N/A - LESS THAN $50,000