2025-11-13T08:05:02-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 910330490 TANNER ELECTRIC COOPERATIVE INC TANN 4258880623 45715 SE 140TH ST NORTH BEND WA 98045 STEVE WALTER CEO 4258880623 2025-11-12 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-09 X 2024 2025-03-06 01:10:19Z STEVE WALTER 45715 SE 140TH ST NORTH BEND WA 98045 14029743 0 X WWW.TANNERELECTRIC.COOP X 1936 WA TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 9 9 20 0 24737 0 0 0 13100359 13592214 91763 31136 646454 406393 13838576 14029743 0 0 224435 1945629 2660785 2773425 0 0 0 8874935 9235442 11760155 13954496 2078421 75247 39734098 42599254 23271855 24490351 16462243 18108903 THE MISSION OF TANNER ELECTRIC COOPERATIVE IS TO PROVIDE RELIABLE, SAFE, SUSTAINABLE ELECTRIC POWER AND RELATED SERVICES TO THE COMMUNITIES WE ARE PROUD TO SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 5,436 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 32 0 20 1 1 1 0 0 0 0 14413136 307537 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X KEVIN BURNS DIRECTOR OF FINANCE 4258880623 45715 SE 140TH STREET NORTH BEND WA 98045 X MICHAEL HODGE PRESIDENT 1.00 X X 4000 0 0 CAROL PASCHAL TREASURER 3.40 X X 8800 0 0 JOHN SAATELA DIRECTOR 2.90 X 7275 0 0 STEVE NICHOLES DIRECTOR 2.10 X 6650 0 0 ROGER GUAY VICE PRESIDENT 1.50 X X 4400 0 0 DAVID MCGOLDRICK DIRECTOR 1.90 X 4500 0 0 DUTCH SIEDENTOPF SECRETARY 2.50 X X 5550 0 0 KRISTINA MICHAEL DIRECTOR 1.30 X 3550 0 0 MALCOLM LYBECK PRESIDENT 2.30 X X 8400 0 0 MARC MCELNEY DIRECTOR (MAY-DEC) 1.10 X 1400 0 0 STEVE WALTER CEO 45.00 X 290607 0 197195 KEVIN BURNS DIRECTOR OF FINANCE 45.00 X 182476 0 53435 NICK HIMEBAUCH MGR OF OPERATIONS 40.00 X 192091 0 75533 KYE REFVEM LINEMAN 53.50 X 240415 0 23420 CHAD LOHREY LEAD LINEMAN 50.60 X 232602 0 25021 RORY WALTER LINEMAN 45.00 X 226308 0 29687 BLAINE BARNARD LINEMAN 48.00 X 196320 0 23381 JUSTIN ISACKSON FOREMAN 48.30 X 207603 0 56096 1822947 0 483768 8 0 1 0 FURY SITE WORKS PO BOX 2118 NORTH BEND WA 98045 CONSTRUCTION 744466 DJ'S ELECTRICAL PO BOX 289 BRUSH PRAIRIE WA 98606 ELELCTRICAL SERVICES 727157 PACIFIC LANDSCAPE MANAGEMENT 7345 164TH AVENUE NE REDMOND WA 98052 LANDSCAPING SERVICES 444822 JOAQUIN'S TREE EXPERT 13121 112TH AVENUE E PUYALLUP WA 98374 TREE TRIMMING 230771 SECOMA FENCE 8021 PORTLAND AVENUE E TACOMA WA 98404 FENCING 192277 13 X SALES OF ELECTRICITY 221000 13458601 13458601 SERVICE FEES 221000 76892 76892 PATRONAGE DIVIDENDS 221000 53131 53131 OTHER PROGRAM REVENUE 221000 3590 3590 13592214 31136 24737 6399 MISC. NON-OPERATING REVENUE 221000 241759 241759 POLE ATTACHMENT INCOME 221000 164634 164634 406393 14029743 13833973 24737 171033 X 1945629 1045862 1380782 110560 94735 141486 925953 1719870 PURCHASED POWER 3938760 ADMIN & GENERAL EXPENSE 1127469 DISTRIBUTION EXPENSE 698402 TAXES 617737 207251 13954496 1367693 585498 3046131 3057136 1092632 1258065 82886 76374 64293680 27603963 33342902 36689717 589503 666803 212351 265661 39734098 42599254 1358318 1266293 21452745 22622469 460792 601589 23271855 24490351 X 24050 24555 0 0 16438193 18084348 16462243 18108903 39734098 42599254 X 75247 1571413 X X 0 1 X 1 0 0 1 X 621772 621772 6994920 996137 5998783 52198098 25939024 26259074 4478890 668802 3810088 36689717 CUSTOMER DEPOSITS 36200 ACCRUED DEFERRED COMPENSATION 440532 DEFERRED CREDIT - EDUCATION FUND 64101 OTHER DEFERRED CREDITS 60756 601589 X PART IV, LINE 2B: THE COOPERATIVE HAS PUT INTO PLACE AN "OPERATION ROUND-UP" PLAN. MEMBERS WHO WISH TO PARTICIPATE IN THE PLAN VOLUNTARILY ROUND THEIR ELECTRIC BILLS UP TO THE NEAREST WHOLE DOLLAR. THE DIFFERENCE IS USED TO FUND THE PLAN. THE "OPERATION ROUND-UP" FUNDS ARE MAINTAINED IN A SEPARATE LIABILITY ACCOUNT, AND ALL DONATIONS ARE PLACED IN A TRUST ADMINISTERED BY THE SALVATION ARMY. THE FUNDS ARE AVAILABLE TO HELP INDIVIDUALS AND FAMILIES IN THE COOPERATIVE'S SERVICE AREA. PART X, LINE 2: THE COOPERATIVE FOLLOWS THE "UNCERTAIN TAX POSITIONS AND 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 HAS DETERMINED THAT IS IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE. THE COOPERATIVE FILES TAX RETURNS IN THE U.S. FEDERAL JURISDICTION AND IS NO LONGER SUBJECT TO EXAMINATION BY TAXING AUTHORITIES BEFORE 2017. 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. X 1 0 X X 0 0 0 STEVE WALTER CEO 262047 0 0 0 28560 0 142027 0 55168 0 487802 0 0 0 NICK HIMEBAUCH MGR OF OPERATIONS 188877 0 2613 0 601 0 42875 0 32658 0 267624 0 0 0 KYE REFVEM LINEMAN 236427 0 661 0 3327 0 11937 0 11483 0 263835 0 0 0 JUSTIN ISACKSON FOREMAN 206657 0 653 0 293 0 21644 0 34452 0 263699 0 0 0 CHAD LOHREY LEAD LINEMAN 230180 0 661 0 1761 0 13538 0 11483 0 257623 0 0 0 RORY WALTER LINEMAN 225490 0 661 0 157 0 11378 0 18309 0 255995 0 0 0 KEVIN BURNS DIRECTOR OF FINANCE 177027 0 1306 0 4143 0 27079 0 26356 0 235911 0 0 0 BLAINE BARNARD LINEMAN 195510 0 653 0 157 0 11898 0 11483 0 219701 0 0 0 PART I, LINE 1A PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE THE CEO FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. STEVE WALTER'S SPOUSE ACCOMANIED HIM ON ONE TRIP DURING THE YEAR. 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, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. 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. STEVE WALTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 114,525 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 14,111 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,391 TOTAL REPORTED IN COLUMN C $ 142,027 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (114,525) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 54,430 EXPENSE TO THE COOPERATIVE $ 81,932 NICK HIMEBAUCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,906 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 9,204 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,765 TOTAL REPORTED IN COLUMN C $ 42,875 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,906) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,350 EXPENSE TO THE COOPERATIVE $ 56,319 KYE REFVEM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,731 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,206 TOTAL REPORTED IN COLUMN C $ 11,937 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,731) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,604 EXPENSE TO THE COOPERATIVE $ 32,810 JUSTIN ISACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,035 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,609 TOTAL REPORTED IN COLUMN C $ 21,644 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (15,035) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,264 EXPENSE TO THE COOPERATIVE $ 35,873 CHAD LOHREY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,443 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,095 TOTAL REPORTED IN COLUMN C $ 13,538 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,443) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,935 EXPENSE TO THE COOPERATIVE $ 34,030 RORY WALTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,615 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,763 TOTAL REPORTED IN COLUMN C $ 11,378 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,615) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,604 EXPENSE TO THE COOPERATIVE $ 32,367 KEVIN BURNS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 10,124 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 8,687 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,268 TOTAL REPORTED IN COLUMN C $ 27,079 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (10,124) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,953 EXPENSE TO THE COOPERATIVE $ 52,908 BLAINE BARNARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,924 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,974 TOTAL REPORTED IN COLUMN C $ 11,898 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,924) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,604 EXPENSE TO THE COOPERATIVE $ 32,578 RORY WALTER FAMILY - OFFICER (S. WALTER) 226308 EMPLOYMENT 0 FORM 990, PART I, LINE 19 - REVENUE LESS EXPENSES 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, LINE 19 REPORTS NET INCOME OF $75,247 WHICH IS THE AMOUNT OF THE EQUITY METHOD LOSS FROM A SUBSIDIARY. THE FOLLOWING IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: 2024 NET MARGIN PER FINANCIAL STATEMENTS $ 1,945,629 BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), (1,945,629) PART 1, LINE 14 EQUITY METHOD LOSS FROM SUBSIDIARY $ 75,247 TOTAL ON PART I, LINE 19 $ 75,247 U.S. GAAP REQUIRES THE COOPERATIVE TO RECORD ON ITS BOOKS THE EQUITY METHOD INCOME (LOSS) FROM ITS WHOLLY OWNED SUBSIDIARY. EQUITY METHOD INCOME (LOSS) IS NOT INCOME FOR FORM 990 REPORTING PURPOSES AND HAS BEEN REPORTED AS AN OTHER CHANGE IN NET ASSETS. HOWEVER, THIS LOSS OF $75,247 IS A COMPONENT OF NET BOOK INCOME, ON WHICH THE PATROANGE DIVIDEND IS BASED. INCLUDING THIS LOSS IN THE PATRONAGE DIVIDEND CALCUALTION IS BASED ON THE FACT THAT IT IS ASSOCIATED WITH THE PROVISION OF ELECTRIC ENERGY; THE NET MARGINS OF WHICH ARE SUBJECT TO A PRE-EXISTING OBLIGATION IN THE BYLAWS TO ALLOCATE EQUITABLY TO THE MEMBERS ON A PATROANGE BASIS (I.E. PATRONAGE DIVIDEND). THIS CONNECTION IS MADE DUE TO THE INVESTMENT INTENT OF THE SUBSIDIARY - TO HELP SECURE A SOURCE OF ELECTRIC POWER TO MEET ANTICIPATED DEMANDS THAT, AT THE TIME OF THE INVESTMENT, THE CURRENT WHOLESALE POWER SUPPLIER WAS UNABLE TO MEET. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE COOPERATIVE DID AN EXTENSIVE REVIEW AND REVISION OF THE BYLAWS. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: WWW.TANNERELECTRIC.COOP/TEC-BYLAWS. 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 ADDITIONALLY, THE MEMBERS OF THE COOPERATIVE MAY AMEND THE BYLAWS BY PETITION OF AT LEAST 5% OF THE MEMBERS IN GOOD STANDING AND AFFIRMATIVE VOTE OF A MAJORITY OF THE MEMBERSHIP ATTENDING THE ANNUAL MEETING. BYLAW AMENDMENTS INITIATED BY MEMBER PETITION SHALL NOT BE AMENDED BY THE BOARD OF DIRECTORS EXCEPT BY APPROVAL OF A MAJORITY OF MEMBERS IN ATTENDANCE AT THE SUBSEQUENT ANNUAL MEETING. 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 DIRECTORS, EMPLOYEE OFFICERS, AND KEY EMPLOYEES, IF ANY, ARE REQUIRED TO REVIEW VENDORS, ORGANIZATIONS AND RELATIONSHIPS ANNUALLY AND DECLARE CONFLICTS OF INTEREST THAT ARE PROHIBITED BY COOPERATIVE POLICY. FORM 990, PART VI, SECTION B, LINE 15 MULTIPLE EXTERNAL INDUSTRY SOURCES ARE USED FOR WAGE COMPARISONS AND BENCHMARKING. CEO COMPENSATION IS BASED ON INDUSTRY COMPARISON AND INDEPENDENT SURVEYS, AND ARE REVIEWED AND APPROVED BY THE PERSONNEL COMMITTEE. UPON APPROVAL, THE COMMITTEE RECOMMENDS TO THE FULL BOARD IN EXECUTIVE SESSION THE CEO COMPENSATION PACKAGE. A COMPENSATION SURVEY IS UTILIZED WHEN DETERMINING AND APPROVING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE, IF ANY. ALL SALARIES, WAGES, AND ADJUSTMENTS ARE APPROVED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 AUDITED FINANCIAL STATEMENTS, BOARD POLICIES (INCLUDING CONFLICT OF INTEREST), AND CERTAIN OTHER ORGANIZATIONAL DOCUMENTS ARE AVAILABLE UPON REQUEST. THE COOPERATIVE ALSO HOLDS AN ANNUAL MEETING OF THE MEMBERSHIP AND PROVIDES FINANCIAL AND OTHER INFORMATION AT THE MEETING. ADDITIONALLY, THE COOPERATIVE'S BYLAWS CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE AT WWW.TANNERELECTRIC.COOP/TEC-BYLAWS. 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 MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES. 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 EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF 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. 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 COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA GENERALLY 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 THE APPLICABLE LINE BASED ON THE FUNCTIONAL 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 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 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 TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 2,426,644 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (54,525) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (250,630) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (75,533) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 713,068 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 241,339 TOTAL WAGES ACCRUED AND/OR PAID $ 3,000,363 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,517,356 OFFICE SUPPLIES 323,944 OUTSIDE SERVICES 75,209 INSURANCES AND DAMAGES 118,543 ADVERTISING 39,250 MISCELLANEOUS GENERAL 70,066 DIRECTORS 106,756 TRAININGS AND MEETINGS 324,684 DUES AND SUBSCRIPTIONS 1,759 MAINTENANCE OF GENERAL PLANT 75,880 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,653,447 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (54,525) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,107,260) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (364,193) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,127,469 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TRANSMISSION $ 46,034 CONSUMER ACCOUNTS 72,537 CUSTOMER SERVICE AND INFORMATION 88,680 TOTAL EXPENSES PER LINE 24E $ 207,251 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 505. PATRONAGE CAPITAL ALLOCATED 1,945,629. PATRONAGE CAPITAL RETIRED - TOTAL -378,608. PATRONAGE CAPITAL RETIRED - UNCLAIMED & RETAINED 79,134. EQUITY METHOD LOSS FROM SUBSIDIARY CORPORATION -75,247. 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. TANNER WIND ENERGY INC 45715 SE 140TH ST NORTH BEND WA 98045 208423637 WIND ENERGY PRODUCTION WA TANNER ELECTRIC COOPERATIVE INC C 364677 481231 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 TANNER WIND ENERGYINC A 24737 PURSUANT TO PROMISSORY NOTE TANNER WIND ENERGYINC S 200000 PROMISSORY NOTE PRINCIPAL PAYMENT