2026-07-30T12:41:11-05:00 2025-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2025-01-01 740695563 SAM HOUSTON ELECTRIC COOPERATIVE INC SAMH 9363275711 PO BOX 1121 LIVINGSTON TX 773511121 SONYA REECE CFO 9363275711 2026-07-29 1 PATRICK COOPER P00856177 8067473806 2026-07-29 2025 2025-03-06 01:10:19Z DOUGLAS TURK PO BOX 1121 LIVINGSTON TX 773511121 277830706 0 X WWW.SAMHOUSTON.NET X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 199 0 0 0 0 0 230966925 276473906 439410 112176 792624 1244624 232198959 277830706 0 48164 0 13990380 25615085 24274126 0 0 0 206489997 234160534 232105082 272473204 93877 5357502 671014042 736042212 454373965 500712394 216640077 235329818 POWER COMMUNITIES. IMPROVE LIVES. SERVE WITH EXCELLENCE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 95,874 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS. 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 98 0 199 1 0 0 0 0 0 279890811 9131434 0 0 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X SONYA REECE 9363275711 1157 EAST CHURCH STREET LIVINGSTON TX 77351 X ROBERT C BOYD DIRECTOR 12.25 X 32468 0 0 DON BOYETT PRESIDENT 8.25 X X 34768 0 0 CASEY EVANS DAVIS SECRETARY/TREASURER 3.73 X X 32269 0 0 JAMES ELMORE DIRECTOR 2.09 X 30068 0 0 GARY JENKE DIRECTOR 5.27 X 29268 0 0 ERNIE MILES DIRECTOR 3.54 X 26768 0 0 MICHEAL OLDNER SR DIRECTOR 3.10 X 29769 0 0 MILTON PURVIS DIRECTOR 4.30 X 69 0 0 JAMES SEALE DIRECTOR 4.70 X 29269 0 0 SAM SMITH DIRECTOR (APR-DEC) 4.00 X 30629 0 0 CHUCK TURNER VICE PRESIDENT 4.10 X X 30968 0 0 DOUGLAS TURK GM/CEO 66.80 X 502872 0 138720 RYAN BROWN AGM 44.50 X 322332 0 96616 KEITH STAPLES CIO 40.90 X 297204 0 139803 JOSEPH CONNER CRO 42.00 X 270590 0 80052 RICKY HARRELL CMSO 42.60 X 250557 0 142183 RACHEL HAWKINS CCO 41.70 X 236223 0 49892 JOEL COLSTON CE 45.30 X 235060 0 68740 DANA MASSEY CHRO 43.50 X 209243 0 113269 SONYA REECE CFO 45.90 X 207166 0 70752 GARY WHITE DIRECTOR OF SAFETY & TRAINING 44.90 X 194244 0 190177 JOHN WILLIAMS DIRECTOR OF OPERATIONS 44.20 X 168358 0 101751 KABE MURPHY GRID MANAGER 40.70 X 187660 0 61765 CALVIN WALKER OPERATIONS SUPERVISOR 48.30 X 169989 0 54984 CHAD FARRAR OPERATIONS SUPERVISOR 48.90 X 160829 0 55856 JUSTIN STEWART OPERATIONS SUPERVISOR 51.50 X 157506 0 32798 KELTON COWART OPERATIONS SUPERVISOR 60.50 X 192712 0 49836 MIKE GARESS SYSTEM RELIABILITY SUPERVISOR 48.40 X 162513 0 105659 ROBERT LANTRIP LINEMAN 59.70 X 209382 0 52117 JOHN HARRIS LINEMAN 57.40 X 190743 0 52511 MARKALIN MERCHANT LINEMAN 55.90 X 186840 0 43496 DARREN MARCEAUX LINEMAN 53.80 X 179250 0 50801 KIRBY SHEPHERD LINEMAN 53.50 X 177820 0 75136 KATHERINE HARDIN FORMER DIRECTOR 0.00 X 14468 0 0 LYNN HENDRIX FORMER DIRECTOR 0.00 X 21090 0 0 ROBERT LEISNER FORMER DIRECTOR 0.00 X 21090 0 0 5232054 0 1826914 109 1 1 0 COTTON UTILITY CONSTRUCTORS INC 1845 GALLOWAY LANE LIVINGSTON TX 77351 LINE CONTRACTOR 10806070 CHAIN ELECTRIC COMPANY PO BOX 2058 HATTIESBURG MS 39403 LINE CONTRACTOR 6899501 SHELTON ENERGY SOLUTIONS LLC 1439 CENTRE CT SUITE 600 ALEXANDRIA LA 71315 LINE CONTRACTOR 6746090 GRIFFIN ELECTRIC LLC 2730 OLD WOODVILLE RD LIVINGSTON TX 77351 ELECTRIC CONTRACTOR 5417427 EASTEX LINE CLEARING LLC PO BOX 1656 LIVINGSTON TX 77351 ROW CONTRACTOR 4659915 52 X SALES OF ELECTRICITY 221000 260927805 260927805 TRANSMISSION REVENUE 221000 7703138 7703138 PATRONAGE DIVIDENDS 221000 4956686 4956686 SERVICE FEES 221000 2886277 2886277 276473906 112176 112176 165245 0 165245 165245 POLE ATTACHMENT INCOME 221000 1079379 1079379 1079379 277830706 276639151 0 1191555 X 48164 13990380 5784224 13331676 1536585 2489955 1131686 17809762 25201835 PURCHASED POWER 160165499 DISTRIBUTION EXPENSE 16052857 ADMIN & GENERAL 6996952 CONSUMER EXPENSE 3946662 3986967 272473204 X 3598959 2629672 3886537 3374855 12491386 16967623 322518 523127 34738005 33840862 869098705 290585760 521068089 578512945 87294725 90761555 7613823 9431573 671014042 736042212 27329966 35014557 1036098 1011802 408481351 449750257 17526550 14935778 454373965 500712394 X 156290 156290 0 0 216483787 235173528 216640077 235329818 671014042 736042212 X 5357502 13332239 X X 0 1 X 1 0 0 1 X 11408639 11408639 21892901 12543966 9348935 835797165 278041794 557755371 578512945 PATRONAGE CAPITAL - EAST TEXAS EC 75156559 C PATRONAGE CAPITAL - TEXAS EC 503928 C PATRONAGE CAPITAL - COBANK 9173213 C PATRONAGE CAPITAL - CFC 3445999 C CAPITAL TERM CERTIFICATES 1952998 C OTHER INVESTMENTS 528858 C 90761555 POST RETIREMENT BENEFIT OBLIGATION 8550083 ACCRUED TAXES 2004766 ACCRUED INTEREST 1595417 CONSUMER DEPOSITS 2736320 OTHER LIABILITIES 49192 14935778 X 277830706 0 277830706 0 277830706 258482824 0 258482824 13990380 13990380 272473204 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 ACCOUNT AND USED TO SUPPORT EDUCATION PROJECTS, YOUTH PROJECTS, COMMUNITY PROJECTS, AND EMERGENCY ASSISTANCE WITHIN THE COMMUNITIES AND AREAS SERVED BY THE COOPERATIVE. 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 VERIFIED 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 VERIFIED 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 CURRENTLY ACCOUNTS FOR UNCERTAIN TAX POSITIONS BASED ON THE ESTIMATED LIKELIHOOD OF ASSESSMENT AND HAS NOT DETERMINED THAT ANY TAX POSITIONS REQUIRE AN ACCRUAL BASED ON CURRENT STANDARDS OF ACCOUNTING. FOR FEDERAL INCOME TAX PURPOSES, THE TAX RETURNS REMAIN OPEN FOR POSSIBLE EXAMINATION FOR A PERIOD OF THREE YEARS AFTER THE DATE ON WHICH THOSE RETURNS ARE FILED. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ASSIGNED OR TO BE ASSIGNED 13,990,380. X X X X X X 0 0 0 DOUGLAS TURK GM/CEO 421033 0 71609 0 10230 0 104353 0 34367 0 641592 0 0 0 KEITH STAPLES CIO 266401 0 13487 0 17316 0 125560 0 14243 0 437007 0 0 0 RYAN BROWN AGM 296538 0 15600 0 10194 0 64247 0 32369 0 418948 0 0 0 RICKY HARRELL CMSO 218658 0 10876 0 21023 0 141574 0 609 0 392740 0 0 0 GARY WHITE DIRECTOR OF SAFETY & TRAINING 166417 0 9004 0 18823 0 155515 0 34662 0 384421 0 0 0 JOSEPH CONNER CRO 247417 0 12958 0 10215 0 46372 0 33680 0 350642 0 0 0 DANA MASSEY CHRO 182237 0 9367 0 17639 0 81042 0 32227 0 322512 0 0 0 JOEL COLSTON CE 213134 0 11903 0 10023 0 36578 0 32162 0 303800 0 0 0 RACHEL HAWKINS CCO 215330 0 10876 0 10017 0 35047 0 14845 0 286115 0 0 0 SONYA REECE CFO 179135 0 10160 0 17871 0 54447 0 16305 0 277918 0 0 0 JOHN WILLIAMS DIRECTOR OF OPERATIONS 149194 0 8885 0 10279 0 67669 0 34082 0 270109 0 0 0 MIKE GARESS SYSTEM RELIABILITY SUPERVISOR 138279 0 8971 0 15263 0 72820 0 32839 0 268172 0 0 0 ROBERT LANTRIP LINEMAN 198693 0 5638 0 5051 0 38064 0 14053 0 261499 0 0 0 KIRBY SHEPHERD LINEMAN 170836 0 5638 0 1346 0 43090 0 32046 0 252956 0 0 0 KABE MURPHY GRID MANAGER 169080 0 8625 0 9955 0 29677 0 32088 0 249425 0 0 0 JOHN HARRIS LINEMAN 190425 0 0 0 318 0 19759 0 32752 0 243254 0 0 0 KELTON COWART OPERATIONS SUPERVISOR 149494 0 5950 0 37268 0 15696 0 34140 0 242548 0 0 0 MARKALIN MERCHANT LINEMAN 181080 0 5638 0 122 0 10195 0 33301 0 230336 0 0 0 DARREN MARCEAUX LINEMAN 172995 0 6071 0 184 0 15306 0 35495 0 230051 0 0 0 CALVIN WALKER OPERATIONS SUPERVISOR 143825 0 7347 0 18817 0 39617 0 15367 0 224973 0 0 0 CHAD FARRAR OPERATIONS SUPERVISOR 138486 0 7168 0 15175 0 41185 0 14671 0 216685 0 0 0 JUSTIN STEWART OPERATIONS SUPERVISOR 131761 0 5813 0 19932 0 18670 0 14128 0 190304 0 0 0 LYNN HENDRIX FORMER DIRECTOR 21090 0 0 0 0 0 0 0 0 0 21090 0 0 0 ROBERT LEISNER FORMER DIRECTOR 21090 0 0 0 0 0 0 0 0 0 21090 0 0 0 KATHERINE HARDIN FORMER DIRECTOR 14468 0 0 0 0 0 0 0 0 0 14468 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. DOUGLAS TURK: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,353 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 21,000 TOTAL REPORTED IN COLUMN C (A + B) $ 104,353 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 66,582 EXPENSE TO THE COOPERATIVE (B + C) $ 87,582 KEITH STAPLES: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 109,351 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 16,209 TOTAL REPORTED IN COLUMN C (A + B) $ 125,560 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,510 EXPENSE TO THE COOPERATIVE (B + C) $ 63,719 RYAN BROWN: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,942 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,305 TOTAL REPORTED IN COLUMN C (A + B) $ 64,247 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,070 EXPENSE TO THE COOPERATIVE (B + C) $ 75,375 RICKY HARRELL: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 128,482 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,092 TOTAL REPORTED IN COLUMN C (A + B) $ 141,574 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,314 EXPENSE TO THE COOPERATIVE (B + C) $ 51,406 GARY WHITE: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 145,110 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,405 TOTAL REPORTED IN COLUMN C (A + B) $ 155,515 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,319 EXPENSE TO THE COOPERATIVE (B + C) $ 42,724 JOSEPH CONNER: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,822 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 15,550 TOTAL REPORTED IN COLUMN C (A + B) $ 46,372 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,513 EXPENSE TO THE COOPERATIVE (B + C) $ 62,063 DANA MASSEY: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 69,828 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,214 TOTAL REPORTED IN COLUMN C (A + B) $ 81,042 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,400 EXPENSE TO THE COOPERATIVE (B + C) $ 44,614 JOEL COLSTON: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,190 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,388 TOTAL REPORTED IN COLUMN C (A + B) $ 36,578 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,931 EXPENSE TO THE COOPERATIVE (B + C) $ 55,319 RACHEL HAWKINS: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,955 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,092 TOTAL REPORTED IN COLUMN C (A + B) $ 35,047 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,314 EXPENSE TO THE COOPERATIVE (B + C) $ 51,406 SONYA REECE: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 43,397 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,050 TOTAL REPORTED IN COLUMN C (A + B) $ 54,447 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,293 EXPENSE TO THE COOPERATIVE (B + C) $ 44,343 JOHN WILLIAMS: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 58,328 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,341 TOTAL REPORTED IN COLUMN C (A + B) $ 67,669 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,062 EXPENSE TO THE COOPERATIVE (B + C) $ 37,403 MIKE GARESS: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 64,187 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,633 TOTAL REPORTED IN COLUMN C (A + B) $ 72,820 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,875 EXPENSE TO THE COOPERATIVE (B + C) $ 35,508 ROBERT LANTRIP: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,498 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,566 TOTAL REPORTED IN COLUMN C (A + B) $ 38,064 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,355 EXPENSE TO THE COOPERATIVE (B + C) $ 23,921 KIRBY SHEPHERD: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,500 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,590 TOTAL REPORTED IN COLUMN C (A + B) $ 43,090 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,355 EXPENSE TO THE COOPERATIVE (B + C) $ 23,945 KABE MURPHY: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,264 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,413 TOTAL REPORTED IN COLUMN C (A + B) $ 29,677 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,385 EXPENSE TO THE COOPERATIVE (B + C) $ 40,798 JOHN HARRIS: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,148 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,611 TOTAL REPORTED IN COLUMN C (A + B) $ 19,759 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,355 EXPENSE TO THE COOPERATIVE (B + C) $ 23,966 KELTON COWART: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,743 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,953 TOTAL REPORTED IN COLUMN C (A + B) $ 15,696 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,542 EXPENSE TO THE COOPERATIVE (B + C) $ 25,495 MARKALIN MERCHANT: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 3,604 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,591 TOTAL REPORTED IN COLUMN C (A + B) $ 10,195 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,490 EXPENSE TO THE COOPERATIVE (B + C) $ 21,081 DARREN MARCEAUX: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,775 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,531 TOTAL REPORTED IN COLUMN C (A + B) $ 15,306 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,355 EXPENSE TO THE COOPERATIVE (B + C) $ 23,886 CALVIN WALKER: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,984 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,633 TOTAL REPORTED IN COLUMN C (A + B) $ 39,617 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,875 EXPENSE TO THE COOPERATIVE (B + C) $ 35,508 CHAD FARRAR: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,696 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,489 TOTAL REPORTED IN COLUMN C (A + B) $ 41,185 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,728 EXPENSE TO THE COOPERATIVE (B + C) $ 34,217 JUSTIN STEWART: (A) ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,027 (B) EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,643 TOTAL REPORTED IN COLUMN C (A + B) $ 18,670 (C) CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,355 EXPENSE TO THE COOPERATIVE (B + C) $ 23,998 FORM 990, PART I: IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $5,357,502, WHICH IS THE EFFECT OF OFFSETTING PRIOR YEAR LOSSES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: NON-OPERATING MARGINS RETAINED TO OFFSET PRIOR YEAR LOSSES $ 5,357,502 (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 5,357,502 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $13,990,380 TOTAL 2025 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $19.347.882 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAD 10 BOARD MEMBERS AT YEAR END; ALL 10 ARE ALLOWED TO VOTE, HOWEVER, THE BOARD CHAIRMAN VOTES ONLY IN THE CASE OF A TIE. 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 HAVE THE ABILITY TO ELECT THE GOVERNING BODY. DIRECTORS ARE ELECTED FOR 5 YEAR TERMS AND MUST MEET CERTAIN QUALIFICATIONS AS DEFINED BY THE COOPERATIVE BYLAWS. ELECTIONS ARE CONDUCTED BY MAIL OR ELECTRONIC BALLOT. THE BOARD OF DIRECTORS APPOINTS AN ELECTION COMMITTEE WHOSE TERMS AND QUALIFICATIONS ARE DEFINED IN THE BYLAWS. NOMINEES ARE CHOSEN BY THE ELECTION COMMITTEE AND A BALLOT IS PREPARED AND POSTED AS WELL AS MAILED. NOMINATIONS BY PETITION ARE ALSO ACCEPTED. A DEADLINE FOR RECEIPT OF BALLOTS IS DEFINED IN THE COOPERATIVE BYLAWS. A NOMINEE RECEIVING THE MOST VOTES FOR A PARTICULAR PLACE SHALL BE DEEMED ELECTED. 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 B, LINE 11B ONE OF THE DUTIES ASSIGNED TO THE AUDIT COMMITTEE BY THE BOARD IS PRELIMINARY REVIEW OF THE 990. EACH MEMBER OF THE AUDIT COMMITTEE IS ALLOWED TIME TO REVIEW THE 990 AND INQUIRE OF THE PARTIES RESPONSIBLE FOR THE 990 COMPLETION AND FILING. ONCE THE AUDIT COMMITTEE HAS REVIEWED AND APPROVED THE 990, IT IS MADE AVAILABLE TO THE FULL BOARD FOR REVIEW AND QUESTIONS. THE AUDIT COMMITTEE MAKES RECOMMENDATIONS TO THE ENTIRE BOARD THAT THE 990 BE APPROVED AND FILED. AFTER BOARD APPROVAL, THE 990 IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE COOPERATIVE HAS INCLUDED A CONFLICT OF INTEREST POLICY IN ITS BOARD POLICY MANUAL. BOARD MEMBERS AND OFFICERS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST INQUIRY ANNUALLY AND SIGN AN AFFIDAVIT IDENTIFYING WHETHER ANY SUCH CONFLICTS EXIST. THE BOARD OF DIRECTORS IS RESPONSIBLE FOR INTERPRETING AND ENFORCING THE POLICY. FORM 990, PART VI, SECTION B, LINE 15 A WAGE AND SALARY SURVEY IS OBTAINED ANNUALLY FROM AN INDEPENDENT SOURCE. A COMMITTEE OF THE BOARD REVIEWS THE SURVEY AND OTHER RELEVENT INFORMATION AND MAKES A RECOMMENDATION TO THE FULL BOARD. THE BOARD REVIEWS THE INFORMATION AND SETS THE COMPENSATION FOR THE CEO. A WAGE AND SALARY SURVEY IS OBTAINED ANNUALLY FROM AN INDEPENDENT SOURCE. THE CEO REVIEWS THE SURVEY AND MAKES A RECOMMENDATION TO A COMMITTEE OF THE BOARD FOR SALARY RANGES FOR OFFICERS AND KEY EMPLOYEES. THAT COMMITTEE REVIEWS THE RECOMMENDED RANGES, MAKES ANY NECESSARY CHANGES AND RECOMMENDS THE RANGES TO THE FULL BOARD FOR APPROVAL. THE CEO EVALUATES THE OFFICERS AND KEY EMPLOYEES AND SETS THEIR SALARIES WITHIN THE RANGES APPROVED BY THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. FINANCIAL STATEMENTS ARE ALSO INCLUDED IN AN ANNUAL REPORT AND MAILED TO ALL MEMBERS. 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, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, VISION, DENTAL 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 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 AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). 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. ON THE 2025 FORM 990, PART I, LINE 15, THE COOPERATIVE SEPARATELY STATED SALARIES AND WAGES, EMPLOYEE BENEFITS, AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM. ON THE 2024 RETURN, THE COOPERATIVE DID NOT SEPARATELY STATE THESE EXPENSES. THE 2024 RETURN IS COMPLETE AND ACCURATE, BUT THE COOPERATIVE BELIEVES BY SEPARATELY STATING THESE EXPENSES ON THE 2025 RETURN A READER OF THE FORM 990 WILL BE MORE INFORMED. FUTURE YEARS RETURNS FILED BY THE COOPERATIVE WILL SEPARATELY STATE SALARIES AND WAGES, EMPLOYEE BENEFITS, AND PAYROLL TAXES, MAKING THE COMPARISON ON PAGE 1 MORE MEANINGFUL. 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 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 CURRENT 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 $ 18,974,634 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (306,313)LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (1,552,853)PLUS: SALARIES AND WAGES ALLOCATED TO POWER 504,516 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 32,980 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,372,791 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 983,420 TOTAL WAGES ACCRUED AND/OR PAID $ 22,009,175 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 9,368,291 TRAINING 1,285,606 INJURIES & DAMAGES 209,684 REGULATORY COMMISSION 428,477 MISCELLANEOUS GENERAL 1,689,782 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $12,981,840 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (306,313) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,088,552) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,590,023) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 6,996,952 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TAXES $ 3,138,242 TRANSMISSION 848,725 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 3,986,967 FORM 990, PART X, LINES 17 & 25: THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED FRANCHISE AND PROPERTY TAXES, AS WELL AS ACCRUED INTEREST AND CUSTOMER DEPOSITS AS COMPONENTS OF ACCOUNTS PAYABLE ON LINE 17 OF PART X. HOWEVER, FOR THE 2025 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 25. TO INCREASE CONSISTENCY, ACCRUED EXPENSES IN THE AMOUNT OF $6,050,287 FOR THE 2024 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 17 TO LINE 25. FORM 990, PART X, LINES 4, 9, & 15: THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED UNBILLED REVENUE AS A COMPONENT OF ACCOUNTS RECEIVABLE ON PART 4 OF PART X. THEY ALSO INCLUDED ACCRUED INTEREST AS A COMPONENT OF PREPAID AND DEFERRED CHARGES ON PART 9 OF PART X. HOWEVER, FOR THE 2025 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 15. TO INCREASE CONSISTENCY, THESE ASSETS IN THE AMOUNT OF $7,559,235 AND $23,593 FOR THE 2024 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINES 4 AND 9 TO LINE 15. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 13,990,380. OCI: POST-RETIREMENT BENEFIT ADJUSTMENT -658,141. SAM HOUSTON ELECTRIC COOPERATIVE CHARITABLE FOUNDATION 1157 EAST CHURCH STREET LIVINGSTON TX 77351 474364992 CHARITABLE CONTRIBUTIONS TX 501(C)(3) LINE 7 SAM HOUSTON ELECTRIC COOPERATIVE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SAM HOUSTON ELECTRIC COOPERATIVE CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 SAM HOUSTON ELECTRIC COOPERATIVE CHARITABLE FOUNDATION O N/A - LESS THAN $50,000