2024-11-15T23:11:41-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 880086059 WELLS RURAL ELECTRIC COMPANY WELL 7757523328 PO BOX 365 WELLS NV 89835 THAD BALLARD CEO 7757523328 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z THAD BALLARD PO BOX 365 WELLS NV 89835 50220902 0 X WWW.WREC.COOP X 1958 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 11 63 0 432 0 0 0 45185922 43524711 108859 382103 43970 6314088 45338751 50220902 43362 43847 3019625 2528363 5976030 5784355 0 0 0 36245864 35282209 45284881 43638774 53870 6582128 65706155 74702858 37375849 37585969 28330306 37116889 WELLS RURAL ELECTRIC COMPANY IMPROVES THE QUALITY OF LIFE OF THE COMMUNITIES WE SERVE BY MEETING THE CHANGING NEEDS OF OUR MEMBERS THROUGH THE GUIDING PRINCIPLES OF OUR LOCALLY CONTROLLED COOPERATIVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 6,339 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 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 0 0 1 50 0 63 1 1 1 0 0 0 0 48196870 7462873 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X CYNTHIA GOOD DIRECTOR OF ACCTNGFINHR 7757523328 1451 HUMBOLDT AVENUE WELLS NV 89835 X GERALD ANDERSON DIRECTOR 7.00 X 45269 0 0 KIRK DAHL DIRECTOR 2.00 X 17050 0 0 M JONATHAN DAHL VICE PRESIDENT 7.00 X X 25950 0 0 SCOTT EGBERT PRESIDENT 4.00 X X 48515 0 0 OUIDA MADISON DIRECTOR 3.00 X 22050 0 0 ALFRED MONTES DE OCA DIRECTOR 4.00 X 17550 0 0 LOIS NANNINI DIRECTOR (JAN-AUG) 4.00 X 30883 0 0 JIM WHITED SECRETARY/TREASURER 4.00 X X 15425 0 0 BRUCE WIDMER DIRECTOR 4.00 X 19175 0 0 ROBERT WILCOX DIRECTOR 7.00 X 24052 0 0 TONY MACIAS DIRECTOR 6.00 X 17750 0 0 CAMERON HUFF DIRECTOR (SEP-DEC) 4.00 X 2800 0 0 CLAY R FITCH CHIEF EXECUTIVE OFFICER 40.00 X 316187 0 107205 THAD BALLARD DIRECTOR OF ADMIN & POWER SUPPLY 40.00 X 140809 0 134692 JEFFERY R CROMIE DIRECTOR OF STRATEGY & DEVELOPMENT 40.00 X 161671 0 86943 CYNTHIA GOOD DIRECTOR OF ACCT, FINANCE, & HR 40.00 X 126747 0 83200 RYAN BRODSHO DIRECTOR OF PLANNING 40.00 X 162375 0 81859 MIKE GIROLAMO DIRECTOR OF OPERATIONS 40.00 X 129724 0 34014 ZANE PETERS TROUBLEMAN 47.00 X 165471 0 57537 JAMES WINES FOREMAN 45.00 X 157137 0 46465 COLTON RASMUSSEN LINEMAN 45.00 X 148624 0 32167 JACOB MANNING FOREMAN 44.00 X 149586 0 65954 KYLE MURPHY FOREMAN 42.00 X 146582 0 58600 2091382 0 788636 21 0 1 0 GNR ENTERPRISES INC 948 N 650 E MORGAN UT 84050 WEATHERIZATION CONTRACTOR 269866 EFFICIENCY SERVICES PO BOX 1306 NORTH PLAINS OR 97133 CONSERVATION CONSULTING 228660 WESTERN LINE BUILDERS PO BOX 614 WELLS NV 89835 LINE CONSTRUCTION 198219 MAPPING SOLUTIONS 628 PALACE PARKWAY SPRING CREEK NV 89815 ENGINEERING SERVICES 126400 POWER ENGINEERS PO BOX 855321 MINNEAPOLIS MN 55485 ENGINEERING SERVICES 116796 7 X SALES OF ELECTRICITY 221000 42557288 42557288 TRANSMISSION LEASE 221000 301500 301500 ELECTRIC WIRING 221000 213357 213357 SERVICE & OTHER FEES 221000 177347 177347 PATRONAGE DIVIDENDS 221000 155028 155028 120191 120191 43524711 382103 382103 POWER SUPPLIER DISTRIBUTION 221000 6263040 6263040 POLE ATTACHMENT INCOME 221000 50616 50616 SECURITY & MONITORING 561700 432 432 6314088 50220902 43524711 432 6695759 X 43847 2528363 1851895 2334874 291457 1047638 258491 596099 2700750 PURCHASED POWER 27338504 ADMIN & GENERAL EXPENSE 1890877 DISTRIBUTION EXPENSE 1693761 CONSUMER EXPENSE 642224 419994 43638774 4157770 3683517 7589099 14817883 3617226 3590370 1280753 1497691 1054312 787116 99900650 52602297 44988852 47298353 2467563 2546298 550580 481630 65706155 74702858 4302582 3551600 17335999 16597921 15737268 17436448 37375849 37585969 X 0 0 0 0 28330306 37116889 28330306 37116889 65706155 74702858 X 6582128 2204455 X X 0 1 X 0 0 632296 632296 16729350 4173872 12555478 79782005 48428425 31353580 2756999 2756999 47298353 CONSUMER DEPOSITS 108757 POST-RETIREMENT BENEFITS 8236243 ACCRUED OPERATING TAXES 103933 DEFERRED CREDITS - CONSERVATION RATE CREDIT PROGRAM 1994709 DEFERRED CREDITS - AID TO CONSTRUCTION 6903470 DEFERRED CREDITS - OTHER 89336 17436448 X 49944098 0 49944098 276804 276804 50220902 40833607 0 40833607 2805167 2805167 43638774 PART X, LINE 2: THE COMPANY HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COMPANY IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COMPANY 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 276,804. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 276,804. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,528,363. 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. 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". 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 ELKO COUNTY 4H SALE BOARD PO BOX 456 WELLS NV 89835 300506241 10073 0 LIVESTOCK SALE ELKO COUNTY SCHOOL DISTRICT 208 BOYD KENNEDY RD SPRING CREEK NV 89815 470906695 GOVERNMENT 9298 0 2023 SPONSOR DONATIONS 1 1 PART II: 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. X X 0 0 0 CLAY R FITCH CHIEF EXECUTIVE OFFICER 284729 0 0 0 31458 0 76150 0 31055 0 423392 0 0 0 THAD BALLARD DIRECTOR OF ADMIN & POWER SUPPLY 131411 0 0 0 9398 0 95980 0 38712 0 275501 0 0 0 JEFFERY R CROMIE DIRECTOR OF STRATEGY & DEVELOPMENT 147341 0 5970 0 8360 0 84470 0 2473 0 248614 0 0 0 RYAN BRODSHO DIRECTOR OF PLANNING 158703 0 2550 0 1122 0 47347 0 34512 0 244234 0 0 0 ZANE PETERS TROUBLEMAN 163846 0 0 0 1625 0 20625 0 36912 0 223008 0 0 0 JACOB MANNING FOREMAN 149438 0 0 0 148 0 29042 0 36912 0 215540 0 0 0 CYNTHIA GOOD DIRECTOR OF ACCT, FINANCE, & HR 116622 0 0 0 10125 0 54304 0 28896 0 209947 0 0 0 KYLE MURPHY FOREMAN 144653 0 0 0 1929 0 23568 0 35032 0 205182 0 0 0 JAMES WINES FOREMAN 155494 0 0 0 1643 0 18401 0 28064 0 203602 0 0 0 COLTON RASMUSSEN LINEMAN 147277 0 0 0 1347 0 3819 0 28348 0 180791 0 0 0 MIKE GIROLAMO DIRECTOR OF OPERATIONS 127359 0 0 0 2365 0 20265 0 13749 0 163738 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. CLAY R. FITCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 73,286 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,864 TOTAL REPORTED IN COLUMN C $ 76,150 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (73,286) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 89,095 EXPENSE TO COOPERATIVE $ 91,959 THAD BALLARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 94,605 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,375 TOTAL REPORTED IN COLUMN C $ 95,980 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (94,605) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 115,012 EXPENSE TO COOPERATIVE $116,387 JEFFERY CROMIE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 82,972 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,498 TOTAL REPORTED IN COLUMN C $ 84,470 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (82,972) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 100,870 EXPENSE TO COOPERATIVE $102,368 RYAN BRODSHO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,742 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,605 TOTAL REPORTED IN COLUMN C $ 47,347 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,742) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 55,609 EXPENSE TO COOPERATIVE $ 57,214 ZANE PETERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,387 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,238 TOTAL REPORTED IN COLUMN C $ 20,625 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,387) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,569 EXPENSE TO COOPERATIVE $ 24,807 JACOB MANNING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 27,760 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,282 TOTAL REPORTED IN COLUMN C $ 29,042 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (27,760) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,748 EXPENSE TO COOPERATIVE $ 35,030 CYNTHIA GOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 53,057 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,247 TOTAL REPORTED IN COLUMN C $ 54,304 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (53,057) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 64,502 EXPENSE TO COOPERATIVE $ 65,749 KYLE MURPHY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,385 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,183 TOTAL REPORTED IN COLUMN C $ 23,568 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,385) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,214 EXPENSE TO COOPERATIVE $ 28,397 JAMES WINES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,586 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,815 TOTAL REPORTED IN COLUMN C $ 18,401 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,586) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 6,791 EXPENSE TO COOPERATIVE $ 19,606 COLTON RASMUSSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 1,489 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,330 TOTAL REPORTED IN COLUMN C $ 3,819 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (1,489) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 1,810 EXPENSE TO COOPERATIVE $ 4,140 MIKE GIROLAMO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,529 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,736 TOTAL REPORTED IN COLUMN C $ 20,265 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,529) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 9,153 EXPENSE TO COOPERATIVE $ 21,889 SPENCER EGBERT FAMILY RELATIONSHIP - DIRECTOR (S. EGBERT) 82701 EMPLOYMENT 0 KARLEY FITCH FAMILY RELATIONSHIP - OFFICER (C. FITCH) 51770 EMPLOYMENT 0 COLLIN SHELLEY FAMILY RELATIONSHIP - OFFICER (C. GOOD) 77828 EMPLOYMENT 0 FORM 990, PART I: 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 $6,540,618, WHICH IS THE EFFECT OF TRANSFERRING NON-OPERATING MARGINS TO OTHER EQUITIES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 6,582,128 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 2,528,363 TOTAL 2023 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 9,110,491 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 5. AMENDMENT TO THE BYLAWS 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. 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 AND A PERFORMANCE EVALUATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEO/GENERAL MANAGERS FROM COOPERATIVES LOCATED IN NEVADA AND THE NORTHWEST. THE CEO USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEVADA AND THE NORTHWEST. FORM 990, PART VI, SECTION C, LINE 19 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. AUDITED FINANCIAL STATEMENTS ARE ALSO PUBLISHED IN THE RURALITE MAGAZINE ANNUALLY. ADDITIONALLY, POLICIES AND BY-LAWS OF THE COOPERATIVE ARE ALSO AVAILABLE 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 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 THE 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. 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: ALTHOUGH THE COMPANY IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS 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 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 4,186,769 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (286,469) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (527,913) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASED POWER 172,466 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 74,420 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 893,097 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 278,447 TOTAL WAGES ACCRUED AND/OR PAID $ 4,790,817 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 849,399 OFFICE SUPPLIES 153,804 OUTSIDE SERVICES EMPLOYED 261,622 INJURIES & DAMAGES 9,920 PENSION & BENEFITS 31,045 REGULATORY COMMISSION 47,586 MISCELLANEOUS GENERAL 338,306 DIRECTORS 531,009 ANNUAL & OTHER MEETINGS 136,115 DUES & MEMBERSHIPS 230,245 MAINTENANCE OF GENERAL PLANT 1,133,822 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,722,873 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (286,469) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (948,022) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (597,505) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,890,877 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: ELECTRICAL WIRING & INSTALLATION EXPENSE $ 276,804 TAXES 3,959 TRANSMISSION 112,214 OTHER DEDUCTIONS 27,017 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 419,994 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 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,528,363. PATRONAGE CAPITAL RETIRED - TOTAL -705,676. UNCLAIMED CAPITAL CREDITS RETAINED UNDER STATE LAW-NET 244,346. OCI - PENSIONS AND BENEFITS 137,422. 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. NEXT DOLLAR CHARITABLE FOUNDATION PO BOX 365 WELLS NV 89835 880336170 TO PROVIDE CHARITABLE GRANTS IN THE COOPERATIVE'S AREA. NV 501(C)(3) LINE 7 WELLS RURAL ELECTRIC COMPANY 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 NEXT DOLLAR CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 NEXT DOLLAR CHARITABLE FOUNDATION O N/A - LESS THAN $50,000