2026-07-30T08:14:17-05:00 2025-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2025-01-01 910330490 TANNER ELECTRIC COOPERATIVE INC TANN 4258880623 45715 SE 140TH ST NORTH BEND WA 98045 STEVE WALTER CEO 4258880623 2026-07-29 1 PATRICK COOPER P00856177 8067473806 2026-07-29 X 2025 2025-03-06 01:10:19Z STEVE WALTER 45715 SE 140TH ST NORTH BEND WA 98045 14652873 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 17295 0 0 0 13592214 14300411 31136 62405 406393 290057 14029743 14652873 0 0 1945629 529263 2773425 3249977 0 0 0 9235442 10738090 13954496 14517330 75247 135543 42599254 46217068 24490351 27861644 18108903 18355424 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 5,535 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 33 0 20 1 1 1 0 0 0 0 15511469 202316 0 0 0 X 9 9 0 0 0 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 MALCOLM LYBECK PRESIDENT 3.80 X X 13300 0 0 ROGER GUAY VICE PRESIDENT 2.20 X X 6500 0 0 JOHN SAATELA TREASURER 3.90 X X 10100 0 0 DUTCH SIEDENTOPF SECRETARY 4.00 X X 8400 0 0 CAROL PASCHAL DIRECTOR 2.70 X 9000 0 0 STEVE NICHOLES DIRECTOR 2.00 X 6650 0 0 DAVID MCGOLDRICK DIRECTOR 3.00 X 6575 0 0 KRISTINA MICHAEL DIRECTOR 1.80 X 4975 0 0 STEVE DUPPENTHALER DIRECTOR (JULY-DEC) 0.60 X 1775 0 0 MARC MCELNEY DIRECTOR (JAN-MAR) 0.00 X 0 0 0 STEVE WALTER CEO 45.00 X 315873 0 254455 KEVIN BURNS DIRECTOR OF FINANCE 45.00 X 195936 0 59077 NICK HIMEBAUCH MGR OF OPERATIONS 40.00 X 200256 0 86816 KYE REFVEM LINE FOREMAN 53.50 X 297472 0 50355 CHAD LOHREY LEAD LINEMAN 50.60 X 260431 0 37306 RORY WALTER LINEMAN 45.00 X 255795 0 40367 BLAINE BARNARD LINEMAN 48.00 X 272619 0 26513 JUSTIN ISACKSON FOREMAN 48.30 X 219084 0 66564 2084741 0 621453 14 0 1 0 ALTEC INDUSTRIES 833 1ST AVE S KENT WA 98032 TRUCKS 1536938 FURY SITE WORKS PO BOX 2118 NORTH BEND WA 98045 CONSTRUCTION 1071325 DJ'S ELECTRICAL PO BOX 289 BRUSH PRAIRIE WA 98606 ELELCTRICAL SERVICES 509095 TERRAPHASE ENGINEERING 2105 S C STREET TACOMA WA 98402 ENGINEERING SERVICES 471207 JOAQUIN'S TREE EXPERT 13121 112TH AVENUE E PUYALLUP WA 98374 TREE TRIMMING 188134 7 X SALES OF ELECTRICITY 221000 14161782 14161782 SERVICE FEES 221000 75058 75058 PATRONAGE DIVIDENDS 221000 55782 55782 OTHER PROGRAM REVENUE 221000 7789 7789 14300411 23686 17295 6391 38719 0 38719 38719 38719 POLE ATTACHMENT INCOME 221000 187723 187723 MISC. NON-OPERATING REVENUE 221000 102334 102334 290057 14652873 14441464 17295 194114 X 529263 1179688 1701569 78393 127997 162330 1055746 1827796 PURCHASED POWER 5050740 ADMIN & GENERAL EXPENSE 1139833 DISTRIBUTION EXPENSE 795014 TAXES 657024 211937 14517330 585498 288749 3057136 2928335 1258065 1191246 76374 69177 69957300 29109818 36689717 40847482 666803 673539 265661 218540 42599254 46217068 1266293 1745146 22622469 25432789 601589 683709 24490351 27861644 X 24555 25255 0 0 18084348 18330169 18108903 18355424 42599254 46217068 X 135543 110978 X X 0 1 X 1 0 0 1 X 2162033 2162033 7012955 1133263 5879692 54671689 27307753 27363936 6110623 668802 5441821 40847482 CUSTOMER DEPOSITS 39750 ACCRUED DEFERRED COMPENSATION 589857 DEFERRED CREDIT - EDUCATION FUND 54102 683709 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 AND SUBSIDIARY 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 AND SUBSIDIARY DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS). THE COOPERATIVE AND SUBSIDIARY FILES INCOME TAX RETURNS IN THE U.S. FEDERAL AND STATE JURISDICTIONS. THE COOPERATIVE IS NO LONGER SUBJECT TO U.S. FEDERAL EXAMINATIONS BY TAXING AUTHORITIES FOR YEARS BEFORE 2022. 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 289776 0 0 0 26097 0 198364 0 56091 0 570328 0 0 0 KYE REFVEM LINE FOREMAN 296374 0 925 0 173 0 15967 0 34388 0 347827 0 0 0 BLAINE BARNARD LINEMAN 271531 0 925 0 163 0 14477 0 12036 0 299132 0 0 0 CHAD LOHREY LEAD LINEMAN 256664 0 925 0 2842 0 18736 0 18570 0 297737 0 0 0 RORY WALTER LINEMAN 254707 0 925 0 163 0 14930 0 25437 0 296162 0 0 0 NICK HIMEBAUCH MGR OF OPERATIONS 198065 0 1568 0 623 0 52307 0 34509 0 287072 0 0 0 JUSTIN ISACKSON FOREMAN 216094 0 925 0 2065 0 28351 0 38213 0 285648 0 0 0 KEVIN BURNS DIRECTOR OF FINANCE 187412 0 1568 0 6956 0 31435 0 27642 0 255013 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 THREE TRIPS 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 $ 168,606 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 15,125 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,633 TOTAL REPORTED IN COLUMN C $ 198,364 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (168,606) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,283 EXPENSE TO THE COOPERATIVE $ 87,041 KYE REFVEM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,036 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,931 TOTAL REPORTED IN COLUMN C $ 15,967 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (9,036) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,856 EXPENSE TO THE COOPERATIVE $ 32,787 BLAINE BARNARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,146 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,331 TOTAL REPORTED IN COLUMN C $ 14,477 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,146) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,622 EXPENSE TO THE COOPERATIVE $ 30,953 CHAD LOHREY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,764 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,972 TOTAL REPORTED IN COLUMN C $ 18,736 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,764) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,856 EXPENSE TO THE COOPERATIVE $ 32,828 RORY WALTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,378 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,552 TOTAL REPORTED IN COLUMN C $ 14,930 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,378) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,622 EXPENSE TO THE COOPERATIVE $ 30,953 NICK HIMEBAUCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,366 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 9,747 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,194 TOTAL REPORTED IN COLUMN C $ 52,307 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,366) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,363 EXPENSE TO THE COOPERATIVE $ 54,304 JUSTIN ISACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,793 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,558 TOTAL REPORTED IN COLUMN C $ 28,351 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,793) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,085 EXPENSE TO THE COOPERATIVE $ 34,643 KEVIN BURNS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,412 EMPLOYER CONTRIBUTION TO 457(B) DEFERRED COMP. PLAN 9,277 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,746 TOTAL REPORTED IN COLUMN C $ 30,435 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,412) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,595 EXPENSE TO THE COOPERATIVE $ 51,618 RORY WALTER FAMILY - OFFICER (S. WALTER) 255795 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 $135,543 WHICH IS THE AMOUNT OF THE EQUITY METHOD LOSS FROM A SUBSIDIARY. THE FOLLOWING IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: 2025 NET MARGIN PER FINANCIAL STATEMENTS $ 529,263 BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), (529,263) PART 1, LINE 14 EQUITY METHOD LOSS FROM SUBSIDIARY $ 135,543 TOTAL ON PART I, LINE 19 $ 135,543 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 $135,543 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 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 2025 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 $ 2,881,257 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (67,275) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (313,532) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (86,816) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 811,080 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 231,237 TOTAL WAGES ACCRUED AND/OR PAID $ 3,455,951 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,631,684 OFFICE SUPPLIES 346,215 OUTSIDE SERVICES 83,892 INSURANCES AND DAMAGES 112,277 ADVERTISING 26,783 MISCELLANEOUS GENERAL 86,520 DIRECTORS 123,347 TRAININGS AND MEETINGS 293,227 DUES AND SUBSCRIPTIONS 0 MAINTENANCE OF GENERAL PLANT 123,266 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,797,211 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (67,275) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,205,869) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (384,234) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,139,833 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS $ 98,868 CUSTOMER SERVICE AND INFORMATION 113,069 TOTAL EXPENSES PER LINE 24E $ 211,937 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 700. PATRONAGE CAPITAL ALLOCATED 529,263. PATRONAGE CAPITAL RETIRED - TOTAL -409,565. PATRONAGE CAPITAL RETIRED - UNCLAIMED & RETAINED 126,123. EQUITY METHOD LOSS FROM SUBSIDIARY CORPORATION -135,543. 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 287957 262984 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 17295 PURSUANT TO PROMISSORY NOTE TANNER WIND ENERGYINC S 100000 PROMISSORY NOTE PRINCIPAL PAYMENT