2025-11-17T23:28:29-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750665517 WISE ELECTRIC COOPERATIVE INC WISE 9406263029 PO BOX 269 DECATUR TX 76234 RAYCE CANTWELL GENERAL MANAGER 9406263029 2025-11-09 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-09 X 2024 2025-03-06 01:10:19Z RAYCE CANTWELL PO BOX 269 DECATUR TX 76234 98532824 0 X WWW.WISEEC.COM X 1938 TX TO PROVIDE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 75 0 0 0 0 0 103549811 97984530 118149 172723 756455 200627 104424415 98357880 27975 29864 5449317 4762237 5907956 6041379 0 0 0 92289755 87273480 103675003 98106960 749412 250920 189572009 193302486 102110244 102563835 87461765 90738651 AT WISE ELECTRIC, OUR MISSION IS TO PROVIDE SAFE, RELIABLE, COMPETITIVELY PRICED ELECTRIC AND RELATED SERVICES TO YOU, OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 26,941 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 29 0 75 1 0 0 0 0 0 98668976 1549200 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X RAYCE CANTWELL GENERAL MANAGER 9406272167 1900 N TRINITY ST DECATUR TX 76234 X BRYSON GENTRY DIRECTOR 5.00 X 49678 0 0 ALLEN HEUGATTER SECRETARY/TREASURER 3.60 X X 36063 0 0 GLENN HUGHES DIRECTOR 4.50 X 47843 0 0 RUSSELL MORGAN DIRECTOR 3.10 X 42385 0 0 AUDIE MORRIS PRESIDENT 8.10 X X 43406 0 0 BRUCE NIVENS DIRECTOR 3.90 X 43045 0 0 TOM ROBINSON VICE PRESIDENT 4.00 X X 41739 0 0 RAYCE CANTWELL GENERAL MANAGER 50.00 X 264853 0 119104 KELLY MYERS ASSISTANT GENERAL MANAGER 45.00 X 228434 0 71996 RUSSELL KING LINE SUPERINTENDENT 60.00 X 176847 0 76904 BRYAN SHRIVER MEMBER SERVICES MANAGER 40.00 X 151814 0 50208 CHRISTOPHER MARTINEZ RISK & COMPLIANCE MANAGER 45.00 X 127352 0 58816 ANNA WALLACE MANAGER OF IT 60.00 X 178529 0 58171 CHRIS WALSH OPERATIONS ENG/WHS MANAGER 40.00 X 171016 0 108771 CHUCK PEACE LINE FOREMAN 40.00 X 115655 0 53042 DOUG LONG LINE FOREMAN 40.00 X 114796 0 63344 1833455 0 660356 23 0 1 0 FX5 CONSTRUCTION & EXCAVATION INC PO BOX 1297 DECATUR TX 76234 CONSTRUCTION 3392734 NORTHEAST SERVICES DBA HORTON TREE SERVI PO BOX 1185 KENNEDALE TX 76060 TREE TRIMMING 2124598 HIGGS ELECTRIC LTD PO BOX 999 DECATUR TX 76234 CONSTRUCTION 745898 PRINCE COMPUTING CORPORATION 708 OLDE TOWNE IRVING TX 75015 IT & SERVER MAINTENANCE 401420 INTERCONNECT UTILITY SERVICES PO BOX 682466 FRANKLIN TN 37068 CONSTRUCTION 379703 9 X SALES OF ELECTRICITY 221000 96716462 96716462 PATRONAGE DIVIDENDS 221000 1268068 1268068 97984530 104516 104516 217880 139684 78196 78196 78196 103467 35260 68207 68207 68207 POLE ATTACHMENT INCOME 221000 122231 122231 SALE OF SCRAP 221000 200 200 122431 98357880 98185157 0 172723 X 29864 4762237 1444319 2907464 660086 700302 329208 4110701 5576879 PURCHASED POWER 70299550 DISTRIBUTION EXPENSE 3540212 ADMIN & GENERAL EXPENSE 2647433 CUSTOMER ACCOUNTS 995533 103172 98106960 1485573 554287 1250000 1250000 9052950 5512351 100145 89143 804850 531566 175306843 37997875 129606992 137308968 40844327 41519516 6427172 6536655 189572009 193302486 7382245 7269341 230107 449213 87030077 86987085 7467815 7858196 102110244 102563835 X 389898 400370 0 0 87071867 90338281 87461765 90738651 189572009 193302486 X 250920 3025966 X X 0 1 X 1 0 0 1 X 271088 271088 1218193 5068399 1387651 4898941 167094270 36610224 130484046 1654893 1654893 137308968 CAPITAL TERM CERTIFICATES - CFC 478905 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 3065 C PATRONAGE CAPITAL - CFC 196398 C PATRONAGE CAPITAL - TEC 2027606 C PATRONAGE CAPITAL - BEC 33529886 C PATRONAGE CAPITAL - COBANK 4023970 C PATRONAGE CAPITAL - FEDERATED 85982 C PATRONAGE CAPITAL - NRTC 123161 C INVESTMENT - OTHER 2350 C BRAZOS SECURITIZATION HOLDCO 1048193 C 41519516 RETIRED CAPITAL CREDITS 860998 DEFERRED CREDITS 550260 CONSUMER DEPOSITS 2143789 ACCRUED OPERATING TAXES 175560 ACCUMULATED PROVISION FOR PENSIONS AND BENEFITS 4032414 OTHER CURRENT AND ACCRUED LIABILITES 95175 7858196 X 98357880 0 98357880 0 98357880 93344723 0 93344723 4762237 4762237 98106960 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 APPROVED BY 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 APPROVED BY 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 APPROVED BY 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 FOLLOWS 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 THEIR 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 4,762,237. 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 PAID OR 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. X X X 0 0 0 RAYCE CANTWELL GENERAL MANAGER 209695 0 22624 0 32534 0 92567 0 26537 0 383957 0 0 0 KELLY MYERS ASSISTANT GENERAL MANAGER 176967 0 22394 0 29073 0 44360 0 27636 0 300430 0 0 0 CHRIS WALSH OPERATIONS ENG/WHS MANAGER 135904 0 16722 0 18390 0 76226 0 32545 0 279787 0 0 0 RUSSELL KING LINE SUPERINTENDENT 136288 0 17364 0 23195 0 61526 0 15378 0 253751 0 0 0 ANNA WALLACE MANAGER OF IT 129905 0 16859 0 31765 0 53785 0 4386 0 236700 0 0 0 BRYAN SHRIVER MEMBER SERVICES MANAGER 116136 0 14515 0 21163 0 35889 0 14319 0 202022 0 0 0 CHRISTOPHER MARTINEZ RISK & COMPLIANCE MANAGER 99360 0 9028 0 18964 0 23708 0 35108 0 186168 0 0 0 DOUG LONG LINE FOREMAN 88410 0 9963 0 16423 0 40018 0 23326 0 178140 0 0 0 CHUCK PEACE LINE FOREMAN 93440 0 12997 0 9218 0 38890 0 14152 0 168697 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, 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. RAYCE CANTWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 85,551 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,016 TOTAL REPORTED IN COLUMN C $ 92,567 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (85,551) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,549 EXPENSE TO THE COOPERATIVE $ 57,565 KELLY MYERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,440 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,920 TOTAL REPORTED IN COLUMN C $ 44,360 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,440) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,865 EXPENSE TO THE COOPERATIVE $ 48,785 CHRIS WALSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 71,770 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,456 TOTAL REPORTED IN COLUMN C $ 76,226 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (71,770) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,648 EXPENSE TO THE COOPERATIVE $ 36,104 RUSSELL KING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,173 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,353 TOTAL REPORTED IN COLUMN C $ 61,526 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (57,173) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,081 EXPENSE TO THE COOPERATIVE $ 36,434 ANNA WALLACE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,318 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,467 TOTAL REPORTED IN COLUMN C $ 53,785 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,318) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,673 EXPENSE TO THE COOPERATIVE $ 36,140 BRYAN SHRIVER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,079 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,810 TOTAL REPORTED IN COLUMN C $ 35,889 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,079) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,847 EXPENSE TO THE COOPERATIVE $ 30,657 CHRISTOPHER MARTINEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,122 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,586 TOTAL REPORTED IN COLUMN C $ 23,708 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,122) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,622 EXPENSE TO THE COOPERATIVE $ 29,208 DOUG LONG: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,887 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,131 TOTAL REPORTED IN COLUMN C $ 40,018 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,887) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,149 EXPENSE TO THE COOPERATIVE $ 25,280 CHUCK PEACE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,792 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,098 TOTAL REPORTED IN COLUMN C $ 38,890 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,792) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,813 EXPENSE TO THE COOPERATIVE $ 25,911 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 $250,920. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $250,920, WHICH IS THE EFFECT OF NON-OPERATING MARGINS RETAINED. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: NON-OPERATING MARGINS RETAINED $ 250,920 (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 250,920 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 4,762,237 TOTAL 2024 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 5,013,157 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 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 BOARD OF DIRECTORS DISCUSSED AND REVIEWED THE FORM 990 AT THE REGULAR SCHEDULED BOARD MEETING PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS AND OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. 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 GENERAL MANAGER. THE MANAGEMENT COMPENSATION PLAN IS APPROVED BY THE BOARD OF DIRECTORS. THE BOARD AND GENERAL MANAGER UTILIZE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AS WELL AS 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 INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. 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. 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, KEY EMPLOYEES, 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. 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 2B: 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) 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 TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 4,351,783 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (304,159) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (318,212) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASE POWER 55,641 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 195,107 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,178,805 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 143,743 TOTAL WAGES ACCRUED AND/OR PAID $ 5,302,708 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,324,828 OFFICE SUPPLIES 731,218 OUTSIDE SERVICES 173,847 INSURANCES 106,357 SAFETY AND TRAINING 20,385 REGULATORY COMMISSION 166,879 ADVERTISING 128,505 DIRECTORS 423,226 DUES & SUBSCRIPTIONS 77,037 CAPITAL CREDITS 131,688 MISCELLANEOUS GENERAL 350,529 MAINTENANCE OF GENERAL PLANT 586,052 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,220,551 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (29,864) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (304,159) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (805,458) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (433,637) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,647,433 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 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, 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: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,762,237. PATRONAGE CAPITAL RETIRED - TOTAL -1,631,149. PATRONAGE CAPITAL RETIRED - DISCOUNT 57,302. NET CHANGE IN MEMBERSHIPS 10,472. POST-RETIREMENT BENEFIT VALUATION -172,896. 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. 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