2025-11-17T12:38:53-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 860059728 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC SULP 5203842221 350 N HASKELL WILLCOX AZ 85643 RON LEE CFO 5203842221 2025-11-12 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-12 X 2024 2025-03-06 01:10:19Z JASON BOWLING 350 N HASKELL WILLCOX AZ 85643 118547658 0 X WWW.SSVEC.ORG X 1938 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 209 0 206936 76798 0 0 149764038 116844216 569483 524675 1065186 1177752 151398707 118546643 278843 221838 6010147 155293 18562590 21864486 0 0 0 124435492 95007756 149287072 117249373 2111635 1297270 348532667 370403299 180405886 201865320 168126781 168537979 PROVIDE SAFE, RELIABLE, AND AFFORDABLE SERVICE TO OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 54,702 ACTIVE SERVICES AT YEAR END. ELECTRIC DISTRIBUTION SERVICES (THE DELIVERY, BUT NOT THE SALE OF ELECTRICITY, TO A CUSTOMER OVER LINES OWNED, OPERATED AND MAINTAINED BY THE COOPERATIVE) WERE PROVIDED TO THE CLASS B MEMBERSHIP ON A COOPERATIVE BASIS. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 132 0 209 1 1 1 0 0 0 0 118735089 2606942 0 0 0 X 10 10 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 AZ X X RON LEE CFO 5203842221 350 N HASKELL AVE WILLCOX AZ 85643 X CURTIS NOLAN DIRECTOR 7.70 1.00 X 32100 0 0 DAVID KELSO DIRECTOR 7.30 1.00 X 35313 0 0 RUSSELL MCNEIL DIRECTOR 7.10 1.00 X 31140 0 0 CLIFFORD LEX HERRON SECRETARY 6.50 1.00 X X 28110 0 0 DANIEL BARRERA VICE PRESIDENT 9.10 1.00 X X 33338 0 0 KATHRYN THATCHER DIRECTOR (JAN-JUNE) 8.50 1.00 X 16500 0 0 THOMAS GOODMAN DIRECTOR 5.70 1.00 X 27600 0 0 RANDY REDMOND PRESIDENT 8.90 1.00 X X 27891 0 0 JOHN SHAVER DIRECTOR 7.00 1.00 X 34713 0 0 JANICE BEAM TREASURER 9.00 1.00 X X 34263 0 0 DAVID COLLINS DIRECTOR (JUNE-DEC) 5.90 1.00 X 16416 0 0 JASON BOWLING CHIEF EXECUTIVE OFFICER 51.00 X 530207 0 152086 MANUEL GONZALES VICE PRESIDENT TECH SERVIC 45.00 X 314418 0 105780 DANIEL WILSON SENIOR VICE PRESIDENT OPER 48.00 X 293092 0 93898 MARCUS HARSTON VICE PRESIDENT MEMBER SERV 45.00 X 240996 0 185341 SARA RANSOM GENERAL COUNSEL 46.00 X 234684 0 34049 NATHAN HODGES VICE PRESIDENT OPERATIONS 45.00 X 228101 0 92812 JESUS MORENO VICE PRESIDENT ENGINEERING 46.00 X 221467 0 74216 RON LEE CFO/VICE PRESIDENT FINANCE 50.00 X 219173 0 85326 REBECCA BUKSH VICE PRESIDENT HUMAN RESOU 50.00 X 188667 0 69843 ANDREA TYNDALL VICE PRESIDENT STRATEGY & 50.00 X 161817 0 72337 CURTISS PETERSON CONTROLLER 45.00 X 172250 0 107860 SEAN RUDDY IT MANAGER 49.00 X 163593 0 76204 MARK ROLL OPERATIONS MANAGER 50.00 X 165420 0 67741 JORGE GARCIA OPERATIONS MANAGER 50.00 X 153267 0 62306 RICHIE ELLIS JOURNEYMAN LINEMAN 50.00 X 188944 0 73513 LUIS MONTANO FOREMAN 46.00 X 180720 0 41465 OWEN MORTENSON JOURNEYMAN LINEMAN 50.00 X 174227 0 42849 JESUS HERNANDEZ FOREMAN 47.00 X 170339 0 53164 ADOLFO MARMOLEJO JOURNEYMAN LINEMAN 47.00 X 167966 0 19209 4486732 0 1509999 87 0 1 0 NATIONAL POWERLINE LLC 19820 N 7TH AVE SUITE 120 PHOENIX AZ 85027 INFRASTRUCTURE CONSTRUCTION 3354731 BLUE CROSS BLUE SHIELD OF ARIZONA PO BOX 81049 PHOENIX AZ 85069 INSURANCE 1533417 D FENN ENTERPRISES INC PO BOX 1980 BENSON AZ 85602 UTILITY ENGINEERING 1489384 RUTHERFORD DIVERSIFIED INDUSTRIES INC 1813 S PASEO SAN LUIS SIERRA VISTA AZ 85635 ENGINEERING CONTRACTOR 824793 SWITCHGEAR SOLUTIONS INC 2540 N JACKRABBIT DR TUCSON AZ 85745 ELECTRICAL SUPPLIES 545954 10 X SALES OF ELECTRICITY 221000 112397483 112397483 DISTRIBUTION SERVICES 221000 2645817 2645817 PATRONAGE DIVIDENDS 221000 1209667 1209667 SERVICE FEES 221000 591249 591249 116844216 524675 524675 1290 0 1290 1290 1290 2698 1015 1683 1683 POLE ATTACHMENT INCOME 221000 969526 969526 INTERNET COMMISSIONS 517000 196779 196779 OUTSIDE SERVICES 811000 8474 8474 1174779 118546643 116844216 206936 1495491 X 221838 155293 4884335 11486946 2733098 1517952 1242155 6013172 12179379 PURCHASED POWER 60868007 DISTRIBUTION EXPENSE 8630898 ADMIN & GENERAL EXPENSE 3686685 UNRELATED BUS. INC. TAX 21800 3607815 117249373 4784263 6069285 11463814 11926694 3208483 7010584 39084 24684 6688798 6792144 1011701 1127701 460563169 196365720 249420340 264197449 69132231 70186050 2783953 3068708 348532667 370403299 14495345 12131464 137197611 155627709 28712930 34106147 180405886 201865320 X 208690 210640 0 0 167918091 168327339 168126781 168537979 348532667 370403299 X 1297270 -886072 X X 0 1 X 0 0 2554443 2554443 14673787 7098777 7575010 410262557 189266943 220995614 33072382 33072382 264197449 PATRONAGE CAPITAL - AEPCO 58472602 C PATRONAGE CAPITAL - CFC 2902933 C PATRONAGE CAPITAL - NISC 157718 C PATRONAGE CAPITAL - NRTC 45652 C PATRONAGE CAPITAL - FEDERATED 841505 C PATRONAGE CAPITAL - CRC 25198 C COBANK EQUITY INVESTMENT 3529080 C ASSOCIATED ORGANIZATIONS - GENERAL FUNDS 1010 C CAPITAL TERM CERTIFICATES-CFC 2113473 C DEFERRED COMPENSATION FUNDS 2067300 F PATRONAGE CAPITAL -WESTERN UNITED ELECT 29579 C 70186050 CONSUMER DEPOSITS 2241242 ACCUMULATED PROVISION - PENSIONS & BENEFITS 3238636 ACCRUED OPERATING TAXES 2054265 DEFERRED CREDITS - ENERGY CONSERVATION & OTHER 10275916 DEFERRED CREDITS - FT. HUACHUCA REIMBURSEMENTS 9353064 UNCLAIMED CAPITAL CREDITS 588428 POWER COST ADJUSTMENT 5839511 DEFERRED CREDITS - OTHER 515085 34106147 X 118407736 0 118407736 138907 138907 118546643 116955174 0 116955174 294200 294200 117249374 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 XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFICATION OF NON-OPERATING EXPENSE 138,907. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 155,293. RECLASSIFICATION OF NON-OPERATING EXPENSE 138,907. 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 BOYS AND GIRLS CLUB OF SIERRA VISTA INC 1746 PASEO SAN LUIS SIERRA VISTA AZ 85636 860801728 501(C)(3) 11500 0 ANNUAL DONATION, BASKETBALL CAMP, GOLF FORE KIDS WILLCOX THEATER AND ARTS INC PO BOX 217 WILLCOX AZ 85644 455329399 501(C)(3) 7000 0 CENTER OF ART & HERITAGE CAMPAIGN MCNEAL ELEMENTARY SCHOOL DISTRICT 3979 MCNEAL STREET PO BOX 8 MCNEAL AZ 85617 860717230 20000 0 MCNEAL ELEMENTARY SPORT COURT PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 1 1 X X 0 0 0 JASON BOWLING CHIEF EXECUTIVE OFFICER 458408 0 12210 0 59589 0 125621 0 26465 0 682293 0 0 0 MARCUS HARSTON VICE PRESIDENT MEMBER SERV 201066 0 3430 0 36500 0 183869 0 1472 0 426337 0 0 0 MANUEL GONZALES VICE PRESIDENT TECH SERVIC 198612 0 2460 0 113346 0 105202 0 578 0 420198 0 0 0 DANIEL WILSON SENIOR VICE PRESIDENT OPER 257872 0 2205 0 33015 0 62433 0 31465 0 386990 0 0 0 NATHAN HODGES VICE PRESIDENT OPERATIONS 195732 0 460 0 31909 0 68927 0 23885 0 320913 0 0 0 RON LEE CFO/VICE PRESIDENT FINANCE 207093 0 4705 0 7375 0 72127 0 13199 0 304499 0 0 0 JESUS MORENO VICE PRESIDENT ENGINEERING 193152 0 1210 0 27105 0 43101 0 31115 0 295683 0 0 0 CURTISS PETERSON CONTROLLER 154851 0 4660 0 12739 0 83116 0 24744 0 280110 0 0 0 SARA RANSOM GENERAL COUNSEL 225942 0 2210 0 6532 0 23110 0 10939 0 268733 0 0 0 RICHIE ELLIS JOURNEYMAN LINEMAN 185293 0 2250 0 1401 0 48628 0 24885 0 262457 0 0 0 REBECCA BUKSH VICE PRESIDENT HUMAN RESOU 177314 0 1210 0 10143 0 38578 0 31265 0 258510 0 0 0 SEAN RUDDY IT MANAGER 150545 0 210 0 12838 0 57434 0 18770 0 239797 0 0 0 ANDREA TYNDALL VICE PRESIDENT STRATEGY & 149274 0 1705 0 10838 0 49593 0 22744 0 234154 0 0 0 MARK ROLL OPERATIONS MANAGER 150619 0 2045 0 12756 0 55756 0 11985 0 233161 0 0 0 JESUS HERNANDEZ FOREMAN 167791 0 2225 0 323 0 23797 0 29367 0 223503 0 0 0 LUIS MONTANO FOREMAN 178054 0 2365 0 301 0 14698 0 26767 0 222185 0 0 0 OWEN MORTENSON JOURNEYMAN LINEMAN 172690 0 1245 0 292 0 11632 0 31217 0 217076 0 0 0 JORGE GARCIA OPERATIONS MANAGER 129527 0 2525 0 21215 0 38821 0 23485 0 215573 0 0 0 ADOLFO MARMOLEJO JOURNEYMAN LINEMAN 166940 0 755 0 271 0 9305 0 9904 0 187175 0 0 0 PART I, LINE 1A PURSUANT TO THE COOPERATIVE'S WELLNESS PROGRAM, EMPLOYEES ARE REIMBURSED FOR 50% OF THEIR OUT OF POCKET COSTS FOR PARTICIPATION IN QUALIFIED WELLNESS ACTIVITIES. THE TOTAL ANNUAL REIMBURSEMENT IS LIMITED TO $360 PER EMPLOYEE AND $360 FOR AN EMPLOYEE'S SPOUSE, PROVIDED THE SPOUSE IS COVERED UNDER THE COOPERATIVE'S HEALTH INSURANCE PROGRAM. EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN THE WELLNESS PROGRAM AFTER 60 DAYS OF EMPLOYEMENT. PART II, COLUMN F: MR. CREDEN HUBER RECEIVED A DISTRIBUTION DURING THE YEAR FROM A SECTION 457(B) DEFERRED COMPENSATION PLAN. SUCH AMOUNT REPRESENTS BOX 1 W-2 WAGES OF COMPENSATION THAT WAS PREVIOUSLY DEFERRED WITH RESPECT TO BOX 1 BUT OTHERWISE INCLUDED IN BOX 5 W-2 WAGES IN THE YEAR OF DEFERRAL. SUCH AMOUNTS HAVE, THEREFORE, BEEN REPORTED TWICE ON FORM 990 AS REPORTABLE WAGES - ONCE IN THE YEAR OF DEFERRAL AND ONCE IN THE YEAR PAID PURSUANT TO THE DEFERRED COMPENSATION PLANS PAYOUT SCHEDULE. 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. JASON BOWLING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 115,271 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,350 TOTAL REPORTED IN COLUMN C $ 125,621 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (115,271) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 126,477 EXPENSE TO THE COOPERATIVE $ 136,827 MARCUS HARSTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 177,817 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,052 TOTAL REPORTED IN COLUMN C $ 183,869 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (177,817) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 71,245 EXPENSE TO THE COOPERATIVE $ 77,297 MANUEL GONZALES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 102,709 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,493 TOTAL REPORTED IN COLUMN C $ 105,202 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (102,709) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,542 EXPENSE TO THE COOPERATIVE $ 76,035 DANIEL WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,404 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,029 TOTAL REPORTED IN COLUMN C $ 62,433 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,404) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 96,606 EXPENSE TO THE COOPERATIVE $ 104,635 NATHAN HODGES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,788 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,139 TOTAL REPORTED IN COLUMN C $ 68,927 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (62,788) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,542 EXPENSE TO THE COOPERATIVE $ 79,681 RON LEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,786 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,341 TOTAL REPORTED IN COLUMN C $ 72,127 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,786) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 76,607 EXPENSE TO THE COOPERATIVE $ 82,948 JESUS MORENO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,013 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,088 TOTAL REPORTED IN COLUMN C $ 43,101 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,013) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,542 EXPENSE TO THE COOPERATIVE $ 79,630 CURTISS PETERSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 78,184 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,932 TOTAL REPORTED IN COLUMN C $ 83,116 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (78,184) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,231 EXPENSE TO THE COOPERATIVE $ 62,163 SARA RANSOM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,074 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,036 TOTAL REPORTED IN COLUMN C $ 23,110 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,074) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 62,158 EXPENSE TO THE COOPERATIVE $ 67,194 RICHIE ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,382 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,246 TOTAL REPORTED IN COLUMN C $ 48,628 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,382) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,645 EXPENSE TO THE COOPERATIVE $ 41,891 REBECCA BUKSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,965 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,613 TOTAL REPORTED IN COLUMN C $ 38,578 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,965) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 67,814 EXPENSE TO THE COOPERATIVE $ 73,427 SEAN RUDDY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,744 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,690 TOTAL REPORTED IN COLUMN C $ 57,434 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,744) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 55,443 EXPENSE TO THE COOPERATIVE $ 60,133 ANDREA TYNDALL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,015 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,578 TOTAL REPORTED IN COLUMN C $ 49,593 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,015) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,231 EXPENSE TO THE COOPERATIVE $ 58,809 MARK ROLL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,439 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,317 TOTAL REPORTED IN COLUMN C $ 55,756 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,439) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 51,797 EXPENSE TO THE COOPERATIVE $ 56,114 JESUS HERNANDEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,446 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,351 TOTAL REPORTED IN COLUMN C $ 23,797 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,446) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,122 EXPENSE TO THE COOPERATIVE $ 45,473 LUIS MONTANO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,144 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,554 TOTAL REPORTED IN COLUMN C $ 14,698 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,144) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,122 EXPENSE TO THE COOPERATIVE $ 45,676 OWEN MORTENSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,386 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,246 TOTAL REPORTED IN COLUMN C $ 11,632 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,386) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,645 EXPENSE TO THE COOPERATIVE $ 41,891 PART II, COLUMN C (CONTINUED): JORGE GARCIA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,914 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,907 TOTAL REPORTED IN COLUMN C $ 38,821 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,914) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 44,824 EXPENSE TO THE COOPERATIVE $ 48,731 ADOLFO MARMOLEJO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,056 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,249 TOTAL REPORTED IN COLUMN C $ 9,305 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,056) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,645 EXPENSE TO THE COOPERATIVE $ 41,894 FORM 990, 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 $1,297,270, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE PLUS THE RETENTION OF NON-OPERATING MARGINS. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN ACCRUED. THIS TIMING DIFFERENCE IS FAIR AND EQUITABLE BECAUSE IT MATCHES THE PATRONAGE DIVIDEND ALLOCATED WITH THE BILLING RECORDS USED TO ALLOCATE THE MARGINS. DUE TO THE TIMING OF WHEN THE COOPERATIVE ALLOCATES ACCRUED UNBILLED REVENUE, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME/(LOSS) AS FOLLOWS: 1) NET INCREASE/(DECREASE) IN ACCRUED UNBILLED REVENUE PLUS 2) NON-OPERATING MARGINS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/24 $ 2,351,688 LESS: UNBILLED REVENUE 12/31/23 (2,389,028) NET DECREASE IN UNBILLED REVENUE $ (37,340) ADD: NON-OPERATING MARGINS RETAINED 592,704 ADD: FT. HUACHUCA SETTLEMENT 743,019 (A) - NET INCOME ON PAGE 1, PART I, LINE 1 $ 1,297,270 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 155,293 TOTAL 2024 NET MARGIN (A + B) $ 1,452,563 FORM 990, PART VI, SECTION A, LINE 4 DURING 2024, THE COOPERATIVE MADE AMENDMENTS TO ITS BYLAWS. THESE INCLUDED: ARTICLE I, MEMBERSHIP, SECTION 1.01, ELIGIBILITY, HAS BEEN REVISED TO SAY, "MEMBERSHIP SHALL BE DEEMED TO BE HELD JOINTLY BY THOSE RECOGNIZED AS MARRIED BY LAW UNLESS THE COOPERATIVE IS ADVISED IN WRITING TO THE CONTRARY BY EITHER OF THE PARTIES." ARTICLE II, MEMBERSHIP EXPULSION AND TERMINATION, SECTION 2.03, TRANSFER AND TERMINATION OF MEMBERSHIP, HAS BEEN REVISED TO SAY, "UPON THE LEGAL SEPARATION OR DIVORCE OF THE HOLDERS OF A JOINT MEMBERSHIP, SUCH MEMBERSHIP SHALL CEASE AND NEW, SEPARATE MEMBERSHIPS WILL BE OPENED FOR EACH MEMBER WHO CONTINUES TO RESIDE WITHIN THE COOPERATIVE'S SERVICE TERRITORY. BOTH INDIVIDUALS SHALL CONTINUE TO BE JOINTLY AND SEVERALLY LIABLE FOR THE JOINT MEMBERSHIP DEBTS DUE THE COOPERATIVE." ARTICLE III, MEETINGS OF MEMBERS, SECTION 3.05, VOTING, HAS BEEN REVISED TO SAY, "IF MEMBERS HOLD A JOINT MEMBERSHIP THEY SHALL JOINTLY BE ENTITLED TO ONE (1) VOTE AND NO MORE UPON EACH MATTER SUBMITTED TO A VOTE BY MAIL OR AT A MEETING OF THE MEMBERS." ARTICLE IV, DIRECTORS, SECTION 4.02, QUALIFICATIONS AND TENURE, HAS BEEN REVISED TO SAY, "(1) ONLY NATURAL PERSONS THAT HAVE THE CAPACITY TO ENTER INTO LEGALLY BINDING CONTRACTS SHALL BE ELIGIBLE TO BECOME OR REMAIN ON THE BOARD OF DIRECTORS. AN INDIVIDUAL SHALL BE CONSIDERED "INCAPACITATED AND DISQUALIFIED FROM SERVICE ON THE BOARD DUE TO AN INABILITY TO ENTER LEGALLY BINDING CONTRACTS IF, WHILE SEEKING ELECTION, APPOINTMENT OR SEATED ON THE BOARD, THE INDIVIDUAL BECOMES A WARD OF THE COURT (I.E. SUBJECTED TO AN ORDER APPOINTING A GUARDIAN OR CONSERVATOR), OR IS UNDER THE CARE OR SUPERVISION OF A THIRD PARTY FOR MORE THAN 30 DAYS DUE TO A MENTAL AILMENT THAT A MEDICAL DOCTOR HAS DETERMINED IS LIKELY TO PERSIST FOR ANOTHER 30 DAYS OR MORE. SHOULD THE INDIVIDUAL DEMONSTRATE AT A SUBSEQUENT DATE THAT THE INCAPACITY HAS BEEN RESOLVED, THAT PERSON WILL NO LONGER BE CONSIDERED INCAPACITATED. (2) NO MEMBER SHALL BE ELIGIBLE TO BECOME OR REMAIN A DIRECTOR: (A) WHO IS NOT A BONA-FIDE RESIDENT OF THE PARTICULAR DISTRICT FROM WHICH THE DIRECTOR IS ELECTED. A BONA FIDE RESIDENT OF A DISTRICT SHALL MEAN: (I) A MEMBER OF THE COOPERATIVE; AND (II) THE MEMBER ESTABLISHES RESIDENCE AND PHYSICALLY RESIDES WITHIN THE DISTRICT FOR AT LEAST ONE (1) CONTINUOUS YEAR BEFORE THE DATE OF ASSUMING THE SEAT ON THE BOARD; AND (III) THE DIRECTOR MAINTAINS A RESIDENCE AND PHYSICALLY RESIDES WITHIN THE DISTRICT DURING THE ENTIRE TERM OF SERVICE ON THE BOARD, (B) WHO IS IN ANY WAY EMPLOYED BY THE COOPERATIVE OR HAS BEEN EMPLOYED BY THE COOPERATIVE IN THE FIVE-YEAR PERIOD PRIOR TO THEIR BEING ELECTED; (C) WHO IS EMPLOYED BY OR HAS A SUBSTANTIAL FINANCIAL INTEREST IN A COMPETING ENTERPRISE OR BUSINESS SELLING ELECTRIC ENERGY, OR ELECTRICAL SUPPLIES TO THE COOPERATIVE, OR A BUSINESS PRIMARILY ENGAGED IN SELLING ELECTRICAL APPLIANCES, FIXTURES OR SUPPLIES TO MEMBERS OF THE COOPERATIVE. A SUBSTANTIAL FINANCIAL INTEREST SHALL MEAN MORE THAN A 10% FINANCIAL STAKE IN THE ENTERPRISE OR BUSINESS (D) WHO IS THE INCUMBENT OF, OR CANDIDATE FOR, AN ELECTIVE PUBLIC OFFICE IN CONNECTION WITH WHICH A SALARY IS PAID; (E) WHO IS A CLOSE RELATIVE OF AN EMPLOYEE OR EXISTING DIRECTOR OF THE COOPERATIVE. "CLOSE RELATIVE" IS DEFINED BY THE COOPERATIVE BOARD NEPOTISM POLICY; (F) WHO HAS BEEN CONVICTED OF ANY FELONY OR CONVICTED OF A MISDEMEANOR INVOLVING A CRIME OF MORAL TURPITUDE, AS DEFINED BY LAW; (G) WHO HAS HAD A CRIMINAL JUDGMENT ENTERED AGAINST HIM/HER BASED ON FRAUD, THEFT, DECEIT, MISREPRESENTATION, CONSPIRACY, BREACH OF TRUST, BREACH OF FIDUCIARY DUTY, OR INSIDER TRADING; (H) WHO IS NOT A MEMBER IN GOOD STANDING OF THE COOPERATIVE. "GOOD STANDING" MEANS THE DIRECTOR HAS NO MORE THAN TWO (2) DELINQUENCIES IN THE SIXTY (60)-MONTH PERIOD PRECEDING THE DATE OF THE ELECTION OR, IF A MEMBER FOR LESS THAN SIXTY (60) MONTHS, NO MORE THAN TWO DELINQUENCIES DURING THE PERIOD OF MEMBERSHIP; (I) WHO HAS MADE A MATERIAL MISREPRESENTATION OF FACT TO THE MEMBERS OR OTHER DIRECTORS IN THE PROCESS OF THE DIRECTOR'S ELECTION OR APPOINTMENT TO THE BOARD OF DIRECTORS. A "MISREPRESENTATION" IS A STATEMENT THAT IS KNOWN BY THE DISSEMINATOR TO BE FALSE OR MISLEADING AT THE TIME IT IS MADE, ACTUALLY PROVIDED TO ONE OR MORE THIRD PARTIES, AND MADE WITH THE INTENT OF MODIFYING THE THIRD PARTY OR PARTIES' BELIEFS OR CONDUCT. "MATERIALITY" ENCOMPASSES A SUBSTANTIVE BASIS OF AN AGREEMENT, EVENT, ORGANIZATION OR CIRCUMSTANCE SUCH THAT IT IS FUNDAMENTAL, CRUCIAL, NECESSARY OR HAS A SIGNIFICANT INFLUENCE ON THE AGREEMENT, EVENT, ORGANIZATION OR CIRCUMSTANCE; (J) WHO HAS INTEREST OR CONTROLLING INTEREST IN ANOTHER ORGANIZATION THAT IS NOT IN GOOD STANDING OF THE COOPERATIVE; (K) WHO IS EMPLOYED BY, MATERIALLY AFFILIATED WITH, OR SHARES A MATERIAL FINANCIAL INTEREST WITH, ANY OTHER DIRECTOR; (L) WHO IS NOT A LEGAL RESIDENT OF AND AUTHORIZED TO WORK WITHIN THE USA; (M) WHO DID NOT GRADUATE FROM HIGH SCHOOL OR EARNED AN EQUIVALENT DEGREE OR CERTIFICATION. ALL INDIVIDUALS SEEKING ELECTION OR APPOINTMENT TO SERVE AS A DIRECTOR, INCLUDING INCUMBENTS, SHALL SUBMIT TO A BASIC CREDIT CHECK AND CRIMINAL BACKGROUND SCREENING TO CONFIRM THE QUALIFICATIONS DETAILED IN THIS SECTION. WHILE A DIRECTOR, HE/SHE MUST: (1) COMPLETE FIDUCIARY DUTY TRAINING ANNUALLY, AND AT ALL TIMES COMPREHEND AND ABIDE BY FIDUCIARY DUTIES OF LOYALTY, OBEDIENCE AND CARE TO THE COOPERATIVE AS FURTHER DEFINED IN THESE BYLAWS OR COOPERATIVE POLICIES, INCLUDING (BUT NOT LIMITED TO): (I) EXERCISING OVERSIGHT OF COOPERATIVE BUSINESS, (II) SUPPORTING THE OBJECTIVES OF THE COOPERATIVE, (III) REFRAINING FROM EXPLOITING THE POSITION, (IV) COMPLIANCE WITH ALL CONFIDENTIALITY OBLIGATIONS OF THE BOARD, AND (IV) AVOIDING AND, WHERE AVOIDANCE IS NOT POSSIBLE, DISCLOSING CONFLICTS OF INTEREST; (2) EXERCISE AND INSIST UPON SOUND BUSINESS PRINCIPLES IN THE CONDUCT AND AFFAIRS OF THE COOPERATIVE; (3) UPHOLD THE LAWS AND REGULATIONS PERTAINING TO COOPERATIVE BUSINESS ACTIVITIES; (4) SERVE ALL MEMBERS OF THE COOPERATIVE WITHOUT GIVING SPECIAL CONSIDERATION TO ANY INDIVIDUAL OR GROUP; (5) NOT INTENTIONALLY COMMUNICATE FALSE OR MISLEADING INFORMATION TO MEMBERS OF THE COOPERATIVE OR THE PUBLIC; (6) ABIDE BY AND SUPPORT DECISIONS AND POLICIES MADE BY THE MAJORITY OF THE BOARD; (7) TREAT OTHER BOARD MEMBERS WITH DIGNITY AND RESPECT; (8) SEEK EDUCATION AND TRAINING TO IMPROVE PERFORMANCE AS A DIRECTOR; (9) ACT IN "GOOD FAITH," MEANING TO ACT WITH THE INTENT OF ADVANCING MATTERS LAWFULLY AND RESPONSIBLY FOR THE BENEFIT OF THE COOPERATIVE AND ITS MEMBERS. WHEN MEMBERSHIP IS HELD JOINTLY, EITHER MEMBER, BUT NOT BOTH, MAY BE ELECTED A DIRECTOR, PROVIDED THE INDIVIDUAL ELECTED MEETS THE ABOVE QUALIFICATIONS. UPON ESTABLISHMENT OF THE FACT THAT A BOARD MEMBER IS HOLDING THE OFFICE IN VIOLATION OF ANY OF THE FOREGOING PROVISIONS, THE BOARD OF DIRECTORS SHALL REMOVE SUCH BOARD MEMBER FROM THE BOARD IN THE MANNER PROVIDED BY THE BYLAWS AND BOARD POLICY. NOTHING IN THIS SECTION CONTAINED SHALL, OR SHALL BE CONSTRUED TO, AFFECT IN ANY MANNER WHATSOEVER, THE VALIDITY OF ANY ACTION TAKEN AT ANY MEETING OF THE BOARD OF DIRECTORS." ARTICLE VIII, NON-PROFIT OPERATION, SECTION 8.02, PATRONAGE CAPITAL IN CONNECTION WITH FURNISHING ELECTRIC ENERGY, HAS BEEN REVISED TO SAY, "AT THE TIME THE BOARD OF DIRECTORS DETERMINES THAT A RETIREMENT OF CAPITAL CREDITS IS APPROPRIATE AND PROPER, THE COOPERATIVE SHALL HAVE THE RIGHT TO SET OFF, RECOUP OR OFFSET ANY SUCH CAPITAL CREDITED TO ANY MEMBER'S OR FORMER MEMBER'S ACCOUNT IF THERE IS ANY AMOUNT OWING BY SUCH MEMBER OR FORMER MEMBER TO THE COOPERATIVE, FOR ANY REASON WHATSOEVER, INCLUDING BANKRUPTCY, TOGETHER WITH INTEREST THEREON AT THE ARIZONA LEGAL RATE ON JUDGMENTS IN EFFECT WHEN SUCH AMOUNT BECAME DUE, AND THE DIFFERENCE REMAINING, IF ANY, SHALL BE REFUNDED TO THE MEMBER." ARTICLE VIII, NON-PROFIT OPERATION, SECTION 8.03 RIGHT TO ASSIGN PATRONAGE CAPITAL, HAS BEEN REVISED TO SAY, "BY WRITTEN INSTRUCTION A MEMBER MAY ASSIGN ALL OR ANY PART OF SUCH MEMBER'S CAPITAL CREDITS EARNED OR CREDITED, OR EXPECTED TO BE EARNED OR CREDITED IN THE FUTURE." ARTICLE XIV, AMENDMENTS, HAS BEEN REVISED TO SAY, "A VOTE OF A SIMPLE MAJORITY OF THE MEMBERS SUBMITTING A BALLOT SHALL SUFFICE TO AMEND THE BYLAWS, AND THE RESULTS OF THE ELECTION TO AMEND THE BYLAWS SHALL BE ANNOUNCED AT THE ANNUAL MEETING FOR WHICH THE PROPOSED AMENDMENT WAS NOTICED." 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 AND THE PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. THE BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY ANNUALLY, AND IMMEDIATELY ADDRESS ANY QUESTIONS OR CONCERNS IF THEY ARISE. THE BOARD OF DIRECTORS AND OFFICERS ARE ALSO REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEE OFFICERS. FORM 990, PART VI, SECTION C, LINE 19 ANNUALY, THE COOPERATIVE MAILS ITS ANNUAL REPORT TO MEMBERS OF THE COOPERATIVE WHICH CONTAINS A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS. THE COOPERATIVE ALSO PROVIDES COPIES OF THEIR CURRENT AND PAST ANNUAL REPORTS AND GOVERNING DOCUMENTS ON THEIR WEBSITE. 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. 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, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION 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: 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 FOR CLASS A AND B ELECTRIC UTILITIES. 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 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 CALENDAR TAX 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. 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 2024 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, 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 $16,371,281 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (317,384) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (1,279,799) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 1,685 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,508,645 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,887,081 TOTAL WAGES ACCRUED AND/OR PAID $21,171,509 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 7,862,633 OFFICE SUPPLIES 511,166 OUTSIDE SERVICES 485,007 INJURIES & DAMAGES 1,654 DIRECTORS 511,666 DUES TO ASSOCIATED ORGANIZATIONS 330,836 FORT HUACHUCA ADMINISTRATIVE & GENERAL 201,187 MISCELLANEOUS GENERAL 523,251 CAPITAL CREDITS 3,997 MAINTENANCE OF GENERAL PLANT (2,181) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $10,429,216 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (317,384) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,405,533) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (2,019,614) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,686,685 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS $ 1,840,629 CUSTOMER SERVICE & INFORMATION 474,638 INTERNET 113,040 SALES 568,717 TRANSMISSION 380,896 OTHER DEDUCTIONS 229,895 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 3,607,815 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 155,293. PATRONAGE CAPITAL RETIRED - TOTAL -1,226,365. PATRONAGE CAPITAL RETIRED - DISCOUNT 106,778. NET CHANGE IN MEMBERSHIPS 1,950. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 76,272. 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. SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION 350 N HASKELL WILLCOX AZ 85643 860488826 FUND EDUCATIONAL YOUTH ACTIVIES AND QUALIFIED PROGRAMS AZ 501(C)(3) PF SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE CHARITABLE TRUST 350 N HASKELL WILLCOX AZ 85643 860993649 ASSISTANCE TO NATURAL DISASTER VICTIMS AND FAMILIES AZ 501(C)(3) LINE 7 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION O N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION Q N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000