2026-09-24T08:55:14-05:00 2025-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2025-01-01 750208872 COOKE COUNTY ELECTRIC COOPERATIVE ASSOCIATION COOK 9407592211 PO DRAWER 530 MUENSTER TX 76252 NEIL HESSE GENERAL MANAGER 9407592211 2026-09-22 1 PATRICK COOPER P00856177 8067473806 2026-09-22 X 2025 PENTEX ENERGY NEIL HESSE PO DRAWER 530 MUENSTER TX 76252 54665308 0 X WWW.PENTEX.COM X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 5 5 75 0 0 0 0 0 56500996 54554877 335718 49002 76290 61429 56913004 54665308 54328 60212 2693317 2922690 5985500 6188405 0 0 0 48055157 45712261 56788302 54883568 124702 -218260 102927908 107726688 15405531 19227753 87522377 88498935 PROVIDING RELIABLE ENERGY AND PROVEN SERVICE. 0 0 SALE OF ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 18,583 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 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 49 0 75 1 0 0 0 0 0 58365323 262981 0 0 0 X 5 5 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X RYAN FUHRMANN DIRECTOR OF FINANCEOFFICE OPS 9407592211 11799 WEST US HIGHWAY 82 MUENSTER TX 76252 X KENNETH ALEXANDER PRESIDENT 1.70 X X 33891 0 0 WAYNE KYLE VICE PRESIDENT 1.40 X X 33891 0 0 GARY DALE LEWIS JR SECRETARY / TREASURER 2.30 X X 32063 0 0 DON MILLER DIRECTOR 1.60 X 28937 0 0 RONNIE FELDERHOFF DIRECTOR 5.70 X 60897 0 0 NEIL HESSE GENERAL MANAGER 60.00 X 233655 0 149340 DANIEL BLACK DIRECTOR OF INFORMATION TECHNOLOGY 40.00 X 145633 0 43419 RYAN FUHRMANN DIRECTOR OF FINANCE/OFFICE 50.00 X 150028 0 28832 CHRIS KUBIS DIRECTOR OF SYSTEM OPERATIONS 50.00 X 146321 0 73244 GARY GREWING CREW FOREMAN 52.40 X 140044 0 55579 RONNIE BAYER LINE SUPERINTENDENT 50.00 X 124516 0 84504 CHARLES SCHILLING CREW FOREMAN 46.20 X 116315 0 36821 KAMRON MCMAHAN LINEMAN FIRST CLASS/BUCKET OPERATOR 50.60 X 118462 0 31590 RUSSELL MCCASLAND SAFETY COORDINATOR 45.00 X 114924 0 54215 1479577 0 557544 18 0 1 0 FORCE ELECTRICAL SERVICE LLC PO BOX 1288 WOODWARD OK 73802 ELECTRIC UTILITY CONSTRUCTION 1230790 XYLEM TREE EXPERTS 208 E PLUME ST STE 250 NORFOLK VA 23510 R-O-W TREE TRIMMING 1132238 L4 POWERLINE SERVICES LLC 410 CR 3000 DODD CITY TX 75438 ELECTRIC UTILITY CONSTRUCTION 641595 OSMOSE UTILITIES SERVICES PO BOX 122000 LITHIA SPRINGS GA 30122 POLE INSPECTION & TREATMENT 454481 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER N STE 500 ATLANTA GA 30338 CYBERSECURITY & PAYMENT PROCESSING 454450 9 X SALES OF ELECTRICITY 221000 54135476 54135476 PATRONAGE DIVIDENDS 221000 388497 388497 SERVICE FEES 221000 30850 30850 SALES OF WATER 221000 54 54 54554877 33870 33870 15132 0 15132 15132 15132 98 0 98 98 POLE ATTACHMENT INCOME 221000 61331 61331 61331 54665308 54570009 0 95299 X 60212 2922690 1160151 3417257 611735 693303 305959 478168 3789351 PURCHASED POWER 35911737 DISTRIBUTION EXPENSE 3524079 ADMIN & GENERAL EXPENSE 1534888 CONSUMER EXPENSE 413595 60443 54883568 3872999 5213882 2434604 2675173 1450182 2093270 2708243 367070 111575902 47156356 59570814 64419546 30055513 30304991 2835553 2652756 102927908 107726688 3595528 3870447 526875 464112 5104497 7355532 6178631 7537662 15405531 19227753 X 0 0 0 0 87522377 88498935 87522377 88498935 102927908 107726688 X -218260 1194818 X X 0 1 X 0 0 0 1 X 2016121 2016121 6249496 2472618 3776878 99049381 44683738 54365643 4260904 4260904 64419546 CAPITAL TERM CERTIFICATES - CFC 607534 C MEMBERSHIPS 2165 C PATRONAGE CAPITAL - BEPCI 27422869 C PATRONAGE CAPITAL - TEC 1049596 C PATRONAGE CAPITAL - CFC 5147 C PATRONAGE CAPITAL - SEDC 158819 C PATRONAGE CAPITAL - NRTC 298831 C PATRONAGE CAPITAL - COBANK 73458 C PATRONAGE CAPITAL - CRC 10817 C INVESTMENT IN BOND SECURITIZATION PARTNERSHIP 675755 C 30304991 CONSUMER DEPOSITS 1414431 ACCUMULATED PROVISION FOR POST RETIREMENT BENEFITS OTHER THAN PENSIONS 2437665 ACCRUED POWER COST - OVER COLLECTED 2168155 DEFERRED CREDITS - AID TO CONSTRUCTION 968149 ACCRUED OPERATING TAXES 549262 7537662 X 54665308 0 54665308 0 54665308 51960878 0 51960878 2922690 2922690 54883568 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. PART X, LINE 2: THE COOPERATIVE UTILIZES 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 XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,922,690. 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, AND 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. BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, HOWEVER, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS EXPENSED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". 0 MUENSTER VOLUNTEER FIRE DEPT PO BOX 112 MUENSTER TX 76252 752764685 501(C)(3) 6473 0 ANNUAL DONATION AND COMMUNITY FUNDRAISING EVENT DONATION ALUMNI CORP & SUPPORTERS INC PO BOX 97 MUENSTER TX 76252 752395212 501(C)(3) 5750 0 ANNUAL DONATION PART II: 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. X 1 1 X X X 0 0 0 NEIL HESSE GENERAL MANAGER 226630 0 860 0 6165 0 128285 0 21055 0 382995 0 0 0 CHRIS KUBIS DIRECTOR OF SYSTEM OPERATIONS 143694 0 910 0 1717 0 52312 0 20932 0 219565 0 0 0 RONNIE BAYER LINE SUPERINTENDENT 121697 0 910 0 1909 0 63969 0 20535 0 209020 0 0 0 GARY GREWING CREW FOREMAN 138275 0 910 0 859 0 35351 0 20228 0 195623 0 0 0 DANIEL BLACK DIRECTOR OF INFORMATION TECHNOLOGY 143693 0 910 0 1030 0 22380 0 21039 0 189052 0 0 0 RYAN FUHRMANN DIRECTOR OF FINANCE/OFFICE 148702 0 910 0 416 0 17694 0 11138 0 178860 0 0 0 RUSSELL MCCASLAND SAFETY COORDINATOR 111552 0 910 0 2462 0 33810 0 20405 0 169139 0 0 0 CHARLES SCHILLING CREW FOREMAN 115155 0 910 0 250 0 15833 0 20988 0 153136 0 0 0 KAMRON MCMAHAN LINEMAN FIRST CLASS/BUCKET OPERATOR 117201 0 910 0 351 0 10360 0 21230 0 150052 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE DIRECTORS AND EMPLOYEES FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. DURING THE YEAR, TWO INDIVIDUALS REPORTED ON FORM 990 PART VII, HESSE AND KUBIS, RECEIVED THIS BEENEFIT. ADDITIONALLY, THE VALUE OF THE BENEFIT WAS INCLUDED IN THEIR RESPECTIVE REPORTABLE COMPENSATIONS. SCHEDULE J, 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. NEIL HESSE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 123,645 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,640 TOTAL REPORTED IN COLUMN C $ 128,285 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (123,645) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,214 EXPENSE TO THE COOPERATIVE $ 54,854 CHRIS KUBIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,339 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,973 TOTAL REPORTED IN COLUMN C $ 52,312 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,339) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,122 EXPENSE TO THE COOPERATIVE $ 35,095 RONNIE BAYER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 61,428 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,541 TOTAL REPORTED IN COLUMN C $ 63,969 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (61,428) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,420 EXPENSE TO THE COOPERATIVE $ 29,961 GARY GREWING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,380 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,971 TOTAL REPORTED IN COLUMN C $ 35,351 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,380) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,207 EXPENSE TO THE COOPERATIVE $ 23,178 DANIEL BLACK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,407 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,973 TOTAL REPORTED IN COLUMN C $ 22,380 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,407) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,122 EXPENSE TO THE COOPERATIVE $ 35,095 RYAN FUHRMANN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,721 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,973 TOTAL REPORTED IN COLUMN C $ 17,694 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,721) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,122 EXPENSE TO THE COOPERATIVE $ 35,095 RUSSELL MCCASLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,472 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,338 TOTAL REPORTED IN COLUMN C $ 33,810 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,472) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,234 EXPENSE TO THE COOPERATIVE $ 27,572 CHARLES SCHILLING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,862 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,971 TOTAL REPORTED IN COLUMN C $ 15,833 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,862) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,207 EXPENSE TO THE COOPERATIVE $ 23,178 KAMRON MCMAHAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,592 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,768 TOTAL REPORTED IN COLUMN C $ 10,360 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,592) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,035 EXPENSE TO THE COOPERATIVE $ 20,803 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 LOSS OF $(218,260), WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE AND THE PORTION OF NON-OPERATING MARGINS RETAINED. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE AND POWER COST BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THE COOPERATIVE ESTIMATES THIS ADDITIONAL REVENUE AND POWER COST WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO MEMBERS IN THE YEAR THESE TWO ITEMS ARE 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 AND POWER COST, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME EQUAL TO THE NET INCREASE IN ACCRUED UNBILLED REVENUE & UNBILLED POWER COST OR A NET LOSS EQUAL TO THE NET DECREASE IN UNBILLED REVENUE AND POWER COST. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/25 $ 2,645,402 LESS: UNBILLED REVENUE 12/31/24 (2,828,221) ADD: NON-OPERATING MARGINS RETAINED (35,441) (A) - NET LOSS ON PAGE 1, PART I, LINE 19 $ (218,260) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 2,922,690 TOTAL 2025 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 2,704,430 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 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 ALL OFFICERS, DIRECTORS, AND EMPLOYEES ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S EMPLOYEE-ETHICS POLICY AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE GENERAL MANAGER AS SOON AS POSSIBLE. THE GENERAL MANAGER REGULARLY MONITORS AND ENFORCES THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 ANNUALLY, THE BOARD OF DIRECTORS EVALUATE AND SET THE COMPENSATION OF THE GENERAL MANAGER. THE BOARD USES RESULTS OF A COMPENSATION STUDY AND THE FORM 990 OF SIMILARLY SITUATED ELECTRIC COOPERATIVES AS A GUIDE IN THE DECISION MAKING PROCESS. THE BOARD OF DIRECTORS AND GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES EACH NEW MEMBER WITH A COPY OF ITS BYLAWS, WHICH ARE ALSO LOCATED ON ITS WEBSITE AT WWW.PENTEX.COM. UPON REVISION, BYLAWS ARE MAILED TO ALL MEMBERS. THE COOPERATIVE WILL ALSO PROVIDE A COMPLETE COPY OF ITS CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ADDITIONALLY, THE COOPERATIVE ANNUALLY PUBLISHES ITS AUDITED BALANCE SHEET AND INCOME STATEMENT IN THE CO-OP POWER MAGAZINE PRIOR TO EACH ANNUAL MEETING. 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, LONG TERM DISABILITY AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND THE HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN, AND THE 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 NOT A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) 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, 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 FOR THE 2025 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS IS 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 $ 4,577,408 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (189,679) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (294,835) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,746,314 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 278,325 TOTAL WAGES ACCRUED AND/OR PAID $ 6,117,533 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,900,674 OFFICE SUPPLIES 507,458 OUTSIDE SERVICES 318,378 REGULATORY COMMISSION 84,284 DIRECTORS 196,932 PUBLIC RELATIONS 319,204 DUES 16,630 ANNUAL MEETING 53,050 MISCELLANEOUS GENERAL 70,419 DONATIONS 37,798 MAINTENANCE OF GENERAL PLANT 373,049 SUBSIDIARY EXPENSES 52,496 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,930,372 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (60,212) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,463,924) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (681,669) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (189,679) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,534,888 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,922,690. PATRONAGE CAPITAL RETIRED - TOTAL -1,616,495. PATRONAGE CAPITAL RETIRED - RECLAIMED (PAID) 2,564. PATRONAGE CAPITAL RETIRED - DISCOUNT 0. OCI - PROVISION FOR PENSIONS AND BENEFITS -113,941. 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. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. PENTEX ENERGY SOLUTIONS LLC PO BOX 530 MUENSTER TX 76252 934651188 SOLAR SALES & INSTALLATIONS TX 283092 513730 COOKE COUNTY ELECTRIC COOPERATIVE ASSOC COOKE COUNTY ELECTRIC CHARITABLE FOUNDATION PO BOX 530 MUENSTER TX 762520530 352477483 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE COOP'S SERVICE AREA TX 501(C)(3) LINE 7 COOKE COUNTY ELECTRIC COOPERATIVE ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 COOKE COUNTY ELECTRIC CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 COOKE COUNTY ELECTRIC CHARITABLE FOUNDATION O N/A - LESS THAN $50,000