2024-11-14T13:18:51-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 860059728 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC SULP 5203842221 350 N HASKELL WILLCOX AZ 85643 RON LEE CFO 5203842221 2024-11-12 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-12 X 2023 2024-10-15 13:58:12Z JASON BOWLING 350 N HASKELL WILLCOX AZ 85643 151410561 0 X WWW.SSVEC.ORG X 1938 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 205 0 238964 121941 0 0 137761938 149764038 294791 569483 1066892 1065186 139123621 151398707 277828 278843 3990960 6010147 17073548 18562590 0 0 0 117326071 124435492 138668407 149287072 455214 2111635 332643442 348532667 169176919 180405886 163466523 168126781 PROVIDE SAFE, RELIABLE, AND AFFORDABLE SERVICE TO OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 54,137 ACTIVE SERVICES AT YEAR END. ELECTRIC DISTRIBUTION SERVICES (THE DELIVERY, BUT NOT THE SALE OF ELECTRICITY, TO A CUSTOMER OVER LINES OWNED, OPERATED AND MAINTAINED BY THE COOPERATIVE) WERE PROVIDED TO THE CLASS B MEMBERSHIP ON A COOPERATIVE BASIS. 0 0 0 0 0 0 0 0 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 0 1 1 0 0 1 168 0 205 1 1 1 0 0 0 0 151868901 1885835 0 0 0 X 10 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 AZ X X RON LEE CFO 5203842221 350 N HASKELL AVE WILLCOX AZ 85643 X KATHRYN THATCHER DIRECTOR 7.30 1.00 X 29449 0 0 CURTIS NOLAN PRESIDENT 10.90 1.00 X X 46494 0 0 PAT ENGLISH DIRECTOR (JAN-APRIL) 3.90 1.00 X 5050 0 0 THOMAS GOODMAN DIRECTOR 5.80 1.00 X 26650 0 0 DANIEL BARRERA SECRETARY 7.80 1.00 X X 31186 0 0 RANDY REDMOND VICE PRESIDENT 7.30 1.00 X X 22103 0 0 JOSEPH BEAM TREASURER (JAN-SEP) 7.80 1.00 X X 21813 0 0 DAVID KELSO DIRECTOR 7.90 1.00 X 35678 0 0 CLIFFORD LEX HERRON TREASURER 7.30 1.00 X X 31362 0 0 RUSSELL MCNEIL DIRECTOR 7.40 1.00 X 32990 0 0 JOHN SHAVER DIRECTOR (APRIL-DEC) 6.10 1.00 X 21787 0 0 JANICE BEAM DIRECTOR (DEC) 2.50 1.00 X 825 0 0 JASON BOWLING CHIEF EXECUTIVE OFFICER 52.00 X 431164 0 192797 MARCUS HARSTON VICE PRESIDENT MEMBER SERVICES 46.00 X 166863 0 120571 REBECCA BUKSH VICE PRESIDENT HUMAN RESOURCES 52.00 X 144023 0 81224 MANUEL GONZALES VICE PRESIDENT TECH SERVICES 46.00 X 214824 0 85067 RON LEE CFO/VICE PRESIDENT FINANCE 46.00 X 176801 0 108450 ANDREA TYNDALL VICE PRESIDENT STRATEGY & COMPLIANCE 45.00 X 146328 0 63600 DANIEL WILSON SENIOR VICE PRESIDENT OPERATIONS 49.00 X 237578 0 102091 SARA RANSOM GENERAL COUNSEL 47.00 X 151464 0 27679 JESUS MORENO VICE PRESIDENT ENGINEERING 47.00 X 180822 0 85096 NATHAN HODGES VICE PRESIDENT OPERATIONS 47.00 X 188151 0 109485 MIKE COOK MNT/OP MANAGER 50.00 X 180647 0 44120 ORSON GARNSEY VICE PRESIDENT INFO & TECH 50.00 X 180786 0 17796 LUIS MONTANO FOREMAN 55.00 X 155632 0 40243 SHANNON SHADRICK FOREMAN 55.00 X 156129 0 76676 JESUS HERNANDEZ FOREMAN 50.00 X 149080 0 58290 PABLO FELIX JOURNEYMAN LINEMAN 55.00 X 138790 0 37380 OWEN MORTENSON JOURNEYMAN LINEMAN 50.00 X 135001 0 50698 CREDEN HUBER FORMER CEO 0.00 X 114576 0 0 3554046 0 1301263 71 1 1 0 MADDOX INDUSTRIAL TRANSFORMER LLC 865 VICTOR HILL RD GREER SC 29651 CONSTRUCTION CONTRACTOR 771527 HMW CONSTRUCTION LLC PO BOX 3544 OMAHA NE 68103 CONSTRUCTION CONTRACTOR 595043 ASPLUNDH TREE EXPERT LLC PO BOX 31001-2292 PASADENA CA 91110 ROW TREE TRIMMING 586837 SGS ENGINEERING LLC 401 50TH STREET LUBBOCK TX 79404 UTILITY ENGINEERING & CONSTRUCTION 123741 ELLETT & GAYNOR LLC 5706 SW 45TH AVE AMARILLO TX 79109 ENGINEERING SUBSTATION DESIGN 110786 7 X SALES OF ELECTRICITY 221000 145402007 145402007 DISTRIBUTION SERVICES 221000 2514196 2514196 PATRONAGE DIVIDENDS 221000 1157763 1157763 SERVICE FEES 221000 690072 690072 149764038 569483 569483 4279 0 4279 4279 4279 8175 11854 -3679 -3679 POLE ATTACHMENT INCOME 221000 821943 821943 INTERNET COMMISSIONS 517000 242038 242038 OUTSIDE SERVICES 811000 605 605 1064586 151398707 149764038 238964 1395705 X 278843 6010147 3742814 10688348 2536806 814502 780120 5212472 12138611 PURCHASED POWER 93304444 DISTRIBUTION EXPENSE 7329883 ADMIN & GENERAL EXPENSE 2865053 UNRELATED BUS. INC. TAX 32509 3552520 149287072 5782233 4784263 10000000 11463814 5633361 3208483 41493 39084 4263423 6688798 1417116 1011701 435977870 186557530 230428311 249420340 67788535 69132231 7288970 2783953 332643442 348532667 14495542 14495345 129096740 137197611 25584637 28712930 169176919 180405886 X 207630 208690 0 0 163258893 167918091 163466523 168126781 332643442 348532667 X 2111635 2548623 X X 0 1 X 0 0 2442494 2442494 14496833 6756279 7740554 388452011 179801251 208650760 30586532 30586532 249420340 PATRONAGE CAPITAL - AEPCO 57810915 C PATRONAGE CAPITAL - CFC 2908065 C PATRONAGE CAPITAL - NISC 146174 C PATRONAGE CAPITAL - NRTC 39445 C PATRONAGE CAPITAL - FEDERATED 836801 C PATRONAGE CAPITAL - CRC 23426 C COBANK EQUITY INVESTMENT 3202179 C ASSOCIATED ORGANIZATIONS - GENERAL FUNDS 1010 C CAPITAL TERM CERTIFICATES-CFC 2277412 C DEFERRED COMPENSATION FUNDS 1886804 F 69132231 CONSUMER DEPOSITS 2284178 ACCUMULATED PROVISION - PENSIONS & BENEFITS 3076869 ACCRUED OPERATING TAXES 2214290 DEFERRED CREDITS - ENERGY CONSERVATION & OTHER 8921558 DEFERRED CREDITS - FT. HUACHUCA REIMBURSEMENTS 8016206 UNCLAIMED CAPITAL CREDITS 1562150 POWER COST ADJUSTMENT 2261584 CUSTOMER ADVANCES FOR AID TO CONSTRUCTION 14641 DEFERRED CREDITS - OTHER 361454 28712930 151256014 0 151256014 142693 142693 151398707 143134232 0 143134232 6152840 6152840 149287072 PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFICATION OF NON-OPERATING EXPENSE 142,693. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,010,147. RECLASSIFICATION OF NON-OPERATING EXPENSE 142,693. 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. 0 COCHISE EDUCATION FOUNDATION PO BOX DRAWER 493 BISBEE AZ 85603 263735497 501(C)(3) 5350 0 TEACHER OF THE YEAR DONATION BOYS AND GIRLS CLUB OF SIERRA VISTA INC 1746 PASEO SAN LUIS SIERRA VISTA AZ 85636 860801728 501(C)(3) 11500 0 ANNUAL DONATION, BASKETBALL CAMP, GOLF FORE KIDS SIERRA VISTA AREA CHAMBER OF COMMERCE 21 E WILCOX DR SIERRA VISTA AZ 85635 742586694 501(C)(6) 13333 0 ANNUAL DONATION WHERE THEY BUCK 3500 N MALLARD CIRCLE SIERRA VISTA AZ 85635 823574433 10000 0 ANNUAL DONATION WILLCOX THEATER AND ARTS INC PO BOX 217 WILLCOX AZ 85644 455329399 501(C)(3) 7000 0 CENTER OF ART & HERITAGE CAMPAIGN WARRIOR HEALING CENTER 1838 PASEO SAN LUIS SIERRA VISTA AZ 85635 461453081 501(C)(3) 10000 0 ANNUAL DONATION 4 2 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 1 1 X X 1 0 0 JASON BOWLING CHIEF EXECUTIVE OFFICER 375607 0 16716 0 38841 0 118744 0 74053 0 623961 0 0 0 DANIEL WILSON SENIOR VICE PRESIDENT OPERATIONS 208005 0 4251 0 25322 0 51610 0 50481 0 339669 0 0 0 MANUEL GONZALES VICE PRESIDENT TECH SERVICES 185030 0 4341 0 25453 0 83678 0 1389 0 299891 0 0 0 NATHAN HODGES VICE PRESIDENT OPERATIONS 161901 0 3550 0 22700 0 64731 0 44754 0 297636 0 0 0 MARCUS HARSTON VICE PRESIDENT MEMBER SERVICES 138700 0 2509 0 25654 0 89141 0 31430 0 287434 0 0 0 RON LEE CFO/VICE PRESIDENT FINANCE 160352 0 13500 0 2949 0 66301 0 42149 0 285251 0 0 0 JESUS MORENO VICE PRESIDENT ENGINEERING 158570 0 3561 0 18691 0 37636 0 47460 0 265918 0 0 0 SHANNON SHADRICK FOREMAN 153965 0 1270 0 894 0 50902 0 25774 0 232805 0 0 0 REBECCA BUKSH VICE PRESIDENT HUMAN RESOURCES 138393 0 3236 0 2394 0 31308 0 49916 0 225247 0 0 0 MIKE COOK MNT/OP MANAGER 114202 0 3857 0 62588 0 23206 0 20914 0 224767 0 0 0 ANDREA TYNDALL VICE PRESIDENT STRATEGY & COMPLIANCE 137120 0 2880 0 6328 0 39576 0 24024 0 209928 0 0 0 JESUS HERNANDEZ FOREMAN 146204 0 2570 0 306 0 22943 0 35347 0 207370 0 0 0 ORSON GARNSEY VICE PRESIDENT INFO & TECH 77491 0 0 0 103295 0 15362 0 2434 0 198582 0 0 0 LUIS MONTANO FOREMAN 154027 0 1320 0 285 0 15097 0 25146 0 195875 0 0 0 OWEN MORTENSON JOURNEYMAN LINEMAN 133484 0 1270 0 247 0 10916 0 39782 0 185699 0 0 0 SARA RANSOM GENERAL COUNSEL 135710 0 10105 0 5649 0 0 0 27679 0 179143 0 0 0 PABLO FELIX JOURNEYMAN LINEMAN 137150 0 1375 0 265 0 12527 0 24853 0 176170 0 0 0 CREDEN HUBER FORMER CEO 0 0 0 0 114576 0 0 0 0 0 114576 0 114576 0 PART I, LINE 1A PURSUANT TO THE COOPERATIVE'S WELLNESS PROGRAM, EMPLOYEES ARE REIMBURSED FOR 50% OF THEIR OUT OF POCKET COSTS FOR PARTICIPATION IN QUALIFIED WELLNESS ACTIVITIES. THE TOTAL ANNUAL REIMBURSEMENT IS LIMITED TO $360 PER EMPLOYEE AND $360 FOR AN EMPLOYEE'S SPOUSE, PROVIDED THE SPOUSE IS COVERED UNDER THE COOPERATIVE'S HEALTH INSURANCE PROGRAM. EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN THE WELLNESS PROGRAM AFTER 60 DAYS OF EMPLOYEMENT. PART I, LINE 4A DURING THE YEAR, TWO INDIVIDUALS REPORTED ON THE FORM 990 RECEIVED SEVERANCE PAYMENTS, FOUND ON SCHEDULE J, PART II, B(III): - MIKE COOK: $ 62,018 - ORSON GAMSEY: $103,120 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. 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. JASON BOWLING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 108,844 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 118,744 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (108,844) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 121,935 EXPENSE TO THE COOPERATIVE $ 131,835 DANIEL WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,460 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,150 TOTAL REPORTED IN COLUMN C $ 51,610 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,460) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 85,847 EXPENSE TO THE COOPERATIVE $ 92,997 MANUEL GONZALES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,265 EMPLOYER CONTRIBUTION TO 401(K) PLAN 413 TOTAL REPORTED IN COLUMN C $ 83,678 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,265) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 66,111 EXPENSE TO THE COOPERATIVE $ 66,524 NATHAN HODGES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 58,949 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,782 TOTAL REPORTED IN COLUMN C $ 64,731 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (58,949) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 70,520 EXPENSE TO THE COOPERATIVE $ 76,302 MARCUS HARSTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 84,061 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,080 TOTAL REPORTED IN COLUMN C $ 89,141 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (84,061) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,362 EXPENSE TO THE COOPERATIVE $ 48,442 RON LEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,471 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,830 TOTAL REPORTED IN COLUMN C $ 66,301 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,471) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 68,834 EXPENSE TO THE COOPERATIVE $ 74,664 JESUS MORENO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,054 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,582 TOTAL REPORTED IN COLUMN C $ 37,636 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,054) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 66,111 EXPENSE TO THE COOPERATIVE $ 71,693 SHANNON SHADRICK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,573 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,329 TOTAL REPORTED IN COLUMN C $ 50,902 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,573) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,805 EXPENSE TO THE COOPERATIVE $ 42,134 REBECCA BUKSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,247 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,061 TOTAL REPORTED IN COLUMN C $ 31,308 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,247) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,500 EXPENSE TO THE COOPERATIVE $ 62,561 MIKE COOK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,965 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,241 TOTAL REPORTED IN COLUMN C $ 23,206 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,965) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,776 EXPENSE TO THE COOPERATIVE $ 34,017 ANDREA TYNDALL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,097 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,479 TOTAL REPORTED IN COLUMN C $ 39,576 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,097) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 51,384 EXPENSE TO THE COOPERATIVE $ 52,863 JESUS HERNANDEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,605 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,338 TOTAL REPORTED IN COLUMN C $ 22,943 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,605) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,419 EXPENSE TO THE COOPERATIVE $ 42,757 ORSEN GARNSEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,674 EMPLOYER CONTRIBUTION TO 401(K) PLAN 688 TOTAL REPORTED IN COLUMN C $ 15,362 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,674) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,243 EXPENSE TO THE COOPERATIVE $ 12,931 LUIS MONTANO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,773 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,324 TOTAL REPORTED IN COLUMN C $ 15,097 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,773) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,419 EXPENSE TO THE COOPERATIVE $ 42,743 OWEN MORTENSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,860 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,056 TOTAL REPORTED IN COLUMN C $ 10,916 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,860) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,546 EXPENSE TO THE COOPERATIVE $ 38,602 SARA RANSOM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ -0- LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN -0- EXPENSE TO THE COOPERATIVE $ -0- PABLO FELIX: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,459 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,068 TOTAL REPORTED IN COLUMN C $ 12,527 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (9,459) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,007 EXPENSE TO THE COOPERATIVE $ 39,075 PART II, COLUMN F: MR. CREDEN HUBER RECEIVED A DISTRIBUTION DURING THE YEAR FROM A SECTION 457(B) DEFERRED COMPENSATION PLAN. SUCH AMOUNT REPRESENTS BOX 1 W-2 WAGES OF COMPENSATION THAT WAS PREVIOUSLY DEFERRED WITH RESPECT TO BOX 1 BUT OTHERWISE INCLUDED IN BOX 5 W-2 WAGES IN THE YEAR OF DEFERRAL. SUCH AMOUNTS HAVE, THEREFORE, BEEN REPORTED TWICE ON FORM 990 AS REPORTABLE WAGES - ONCE IN THE YEAR OF DEFERRAL AND ONCE IN THE YEAR PAID PURSUANT TO THE DEFERRED COMPENSATION PLANS PAYOUT SCHEDULE. 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 $0. FOR THE CURRENT YEAR, PAGE 1 , PART I, LINE 19 REPORTS NET INCOME OF $2,111,635, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE PLUS THE RETENTION OF NON-OPERATING MARGINS. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN 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, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME/(LOSS) AS FOLLOWS: 1) NET INCREASE/(DECREASE) IN ACCRUED UNBILLED REVENUE PLUS 2) NON-OPERATING MARGINS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/23 $ 2,389,028 LESS: UNBILLED REVENUE 12/31/22 (2,455,398) NET DECREASE IN UNBILLED REVENUE $ (66,370) ADD: NON-OPERATING MARGINS RETAINED 665,754 ADD: FT. HUACHUCA SETTLEMENT 1,512,251 (A) - NET INCOME ON PAGE 1, PART I, LINE 1 $ 2,111,635 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 6,010,147 TOTAL 2023 NET MARGIN (A + B) $ 8,121,782 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 5. AMENDMENT TO THE BYLAWS 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 PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. THE BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY ANNUALLY, AND IMMEDIATELY ADDRESS ANY QUESTIONS OR CONCERNS IF THEY ARISE. THE BOARD OF DIRECTORS AND OFFICERS ARE ALSO REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. 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 CEO. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEE OFFICERS. FORM 990, PART VI, SECTION C, LINE 19 ANNUALY, THE COOPERATIVE MAILS ITS ANNUAL REPORT TO MEMBERS OF THE COOPERATIVE WHICH CONTAINS A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS. THE COOPERATIVE ALSO PROVIDES COPIES OF THEIR CURRENT AND PAST ANNUAL REPORTS AND GOVERNING DOCUMENTS ON THEIR WEBSITE. 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, PARTS VI & VII THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DURING THE YEAR, DIRECTOR JOSEPH BEAM PASSED AWAY, THEREFORE THE COOPERATIVE USED HIS PRIOR YEAR QUESTIONNAIRE WHILE PREPARING THIS RETURN. THERE WERE NO KNOWN CHANGES FROM 2022 TO 2023. 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, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION 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 (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. 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 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 2023 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $14,431,162 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (305,387) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (1,037,976) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 685 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,172,277 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,612,877 TOTAL WAGES ACCRUED AND/OR PAID $18,873,638 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 6,705,504 OFFICE SUPPLIES 437,552 OUTSIDE SERVICES 237,191 INJURIES & DAMAGES 444 DIRECTORS 480,930 DUES TO ASSOCIATED ORGANIZATIONS 281,471 FORT HUACHUCA ADMINISTRATIVE & GENERAL 51,832 MISCELLANEOUS GENERAL 447,914 CAPITAL CREDITS 23,477 MAINTENANCE OF GENERAL PLANT 8,667 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 8,674,982 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (305,387) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,946,001) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,558,541) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,865,053 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS $ 2,083,040 CUSTOMER SERVICE & INFORMATION 403,933 INTERNET 106,116 SALES 494,207 TRANSMISSION 388,881 OTHER DEDUCTIONS 76,343 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 3,552,520 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,010,147. PATRONAGE CAPITAL RETIRED - TOTAL -3,274,418. PATRONAGE CAPITAL RETIRED - DISCOUNT 122,698. NET CHANGE IN MEMBERSHIPS 1,060. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS -309,012. OTHER ADJUSTMENTS -1,852. 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. SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION 350 N HASKELL WILLCOX AZ 85643 860488826 FUND EDUCATIONAL YOUTH ACTIVIES AND QUALIFIED PROGRAMS AZ 501(C)(3) PF SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE CHARITABLE TRUST 350 N HASKELL WILLCOX AZ 85643 860993649 ASSISTANCE TO NATURAL DISASTER VICTIMS AND FAMILIES AZ 501(C)(3) LINE 7 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION O N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION Q N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000