2024-11-15T23:10:19-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 850098061 JEMEZ MOUNTAINS ELECTRIC COOPERATIVE INC JEME 5057532105 PO BOX 128 ESPANOLA NM 87532 JOSEPH HERRERA GENERAL MANAGER 5057532105 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z JOSEPH HERRERA PO BOX 128 ESPANOLA NM 87532 56373073 0 X WWW.JEMEZCOOP.ORG X 1943 NM TO PROVIDE RELIABLE AND AFFORDABLE POWER THROUGHOUT SERVICE AREAS ON A COOPERATIVE BASIS. 11 11 138 0 0 0 0 0 50259992 56083904 92068 75881 176133 195949 50528193 56355734 17377 0 0 0 9318652 10001084 0 0 0 44584740 45333760 53920769 55334844 -3392576 1020890 130408510 146446207 70184897 85204014 60223613 61242193 RECOGNIZING OUR ROOTS AS A MEMBER OWNED COOPERATIVE AND PROVIDING RELIABLE AND AFFORDABLE POWER. 0 0 SALE OF ELECTRIC ENERGY TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 31,617 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 1 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 1 217 0 138 1 0 0 0 0 0 56509013 571919 0 0 0 X 11 11 0 0 1 0 1 1 1 1 0 0 0 0 1 1 1 1 0 1 1 0 X GERALDINE ROMERO CFO 5057532105 19365 SR 84/285 HERNANDEZ NM 87537 X DENNIS TRUJILLO PRESIDENT 11.90 1.00 X X 13322 0 0 MANUEL BUSTOS VICE PRESIDENT 9.90 1.00 X X 10989 0 0 MARCELINA MARTINEZ SECRETARY 5.30 1.00 X X 8626 0 0 DOLORES MCCOY TREASURER 8.90 1.00 X X 9588 0 0 JOHN RAMON VIGIL TRUSTEE 5.80 1.00 X 7943 0 0 ELIAS CORIZ TRUSTEE 7.20 1.00 X 11507 0 0 HENRY ROYBAL ASST SECRETARY/TREASURER (AUG-DEC) 5.40 1.00 X X 3046 0 0 DENNIS GALLEGOS TRUSTEE 5.20 1.00 X 5570 0 0 LUCAS CORDOVA JR TRUSTEE 4.00 1.00 X 6252 0 0 DANNY VELARDE TRUSTEE (AUG-DEC) 3.20 1.00 X 1443 0 0 MARISSA MAESTAS-MULLER TRUSTEE 4.40 1.00 X 6573 0 0 MICHAEL HASTINGS GENERAL MANAGER/CEO 55.00 X 186684 0 18927 DENNIS G ASTLEY ASSISTANT GENERAL MANAGER 55.00 X 174025 0 18981 GERALDINE ROMERO CFO 55.00 X 115158 0 9960 RANDY VIGIL OPERATIONS MANAGER 55.00 X 136794 0 12224 LEE QUINTANA JOURNEYMAN LINEMAN 55.00 X 134274 0 7640 JONATHAN ROMERO JOURNEYMAN LINEMAN 55.00 X 138677 0 20246 ISAAC TRUJILLO JOURNEYMAN LINEMAN 55.00 X 144092 0 11963 CARLOS SALAZER JOURNEYMAN LINEMAN 55.00 X 133646 0 11100 1248209 0 111041 20 0 1 0 4G POWERLINE INC 1112 CR 17 CLOVIS NM 88101 ELECTRIC POWERLINE CONTRACTOR 4574006 FAMILY TREE SERVICE 1720 EDISON AVENUE ALAMOSA CO 81101 TREE TRIMMING 583840 BRADBURY STAMM CONSTRUCTION INC 7110 2ND STREET NW ALBUQUERQUE NM 87107 CONSTRUCTION CONTRACTOR 392949 INNOVATION TREE SPECIALIST 5043 WHILE OWL CT NE RIO RANCHO NM 87144 TREE TRIMMING 143340 ASPLUNDH TREE EXPERT PO BOX 827464 PHILADELPHIA PA 19182 TREE TRIMMING 140687 8 X SALES OF ELECTRICITY 221000 54501957 54501957 PATRONAGE DIVIDENDS 221000 748921 748921 SERVICE FEES 221000 381917 381917 OTHER PROGRAM REVENUE 221000 235933 235933 WHEELING 221000 215176 215176 56083904 57959 57959 4100 11604 -7504 -7504 -7504 23657 5735 17922 17922 17922 POLE ATTACHMENT INCOME 221000 203453 203453 203453 56355734 56101826 0 253908 X 608594 7244570 460256 1083751 603913 2562197 4134473 PURCHASED POWER 29739116 ADMIN & GENERAL EXPENSE 5277153 DISTRIBUTION EXPENSE 1965387 CONSUMER EXPENSE 968794 686640 55334844 3105298 4962275 988548 415945 3890484 5508618 178793 182385 3580586 4299052 647827 708203 168461388 71185955 84753068 97275433 23466333 24040228 9797573 9054068 130408510 146446207 6338005 21589945 61590054 61580411 2256838 2033658 70184897 85204014 X 115690 113380 0 0 60107923 61128813 60223613 61242193 130408510 146446207 X 1020890 -2310 X X 0 1 X 1 0 29076 390709 419785 77530 17171206 3627101 13621635 137354020 67558854 69795166 13438847 13438847 97275433 PATRONAGE CAPITAL-TSG&T 22506404 C PATRONAGE CAPITAL-COBANK 138978 C PATRONAGE CAPITAL-CFC 302961 C PATRONAGE CAPITAL-SEDC 261426 C PATRONAGE CAPITAL-WUESC 769124 C MEMBER CAPITAL SECURITIES-CFC 36374 C OTHER INVESTMENTS 24961 C 24040228 REGULATORY ASSETS - PREPAID EASEMENTS 1680069 REGULATORY ASSETS - POWER SUPPLIER 2943216 ACCRUED UNBILLED REVENUE 3276377 FUEL COST ADJUSTMENT AND OTHER ASSETS 413099 UNDISTRIBUTED MINOR MATERIAL 741307 9054068 CONSUMER DEPOSITS 134155 ACCRUED OPERATING TAXES 649792 OTHER ACCRUED LIABILITIES 30315 DEFERRED CREDITS - EASEMENTS 1214286 DEFERRED CREDITS - OTHER 5110 2033658 X 56354100 0 56354100 1634 1634 56355734 55333210 0 55333210 1634 1634 55334844 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE IRS. THE COOPERATIVE IS SUBJECT TO INCOME TAX ON ANY UNRELATED BUINESS INCOME. THIS CODE SECTION PROVIDES THAT THE EXEMPT STATUS EXISTS ONLY IF 85% OF THE REVENUE CONSISTS OF AMOUNTS COLLECTED FROM MEMBERS FOR THE SOLE PURPOSE OF MEETING LOSSES AND EXPENSES. THE COOPERATIVE ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION (ASC) 740-10. WHILE THE COOPERATIVE BELIEVES IT HAS ADEQUATELY PROVIDED FOR ALL TAX POSITIONS, AMOUNTS ASSERTED BY TAXING AUTHORITIES COULD BE DIFFERENT THAN THE POSITIONS TAKEN BY THE COOPERATIVE. THE COOPERATIVE RECOGNIZES ANY INTEREST AND PENALTIES ASSESSED BY TAXING AUTHORITIES IN INCOME TAX EXPENSE AND, WITH FEW EXCEPTIONS, IS NO LONGER SUBJECT TO FEDERAL,STATE AND LOCAL INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2020. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFY BROADBAND EXPENSES TO PART IX, LINE 24 1,634. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFY BROADBAND EXPENSES TO PART IX, LINE 24 1,634. X 0 0 X X 0 0 0 MICHAEL HASTINGS GENERAL MANAGER/CEO 168993 0 0 0 17691 0 15349 0 3578 0 205611 0 0 0 DENNIS G ASTLEY ASSISTANT GENERAL MANAGER 160931 0 0 0 13094 0 14573 0 4408 0 193006 0 0 0 JONATHAN ROMERO JOURNEYMAN LINEMAN 126400 0 0 0 12277 0 11338 0 8908 0 158923 0 0 0 ISAAC TRUJILLO JOURNEYMAN LINEMAN 135073 0 0 0 9019 0 11564 0 399 0 156055 0 0 0 PART I, LINE 1A GYM/FITNESS REIMBURSEMENT - THREE INDIVIDUALS REPORTED ON FORM 990 PART VII, JOHNNY OLIBAS, THILO JANSSEN, AND JESSE SALAZAR, RECEIVED THIS BENEFIT DURING THE YEAR. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE I - MEMBERSHIP SECTION 2. MEMBERSHIP CERTIFICATES, WAS AMENDED TO ELIMINATE THE $5.00 MEMBERSHIP FEE, PROVIDING THAT TAKING ELECTRICITY OR OTHER SERVICES FROM THE COOPERATIVE MAKES THE INDIVIDUAL, JOINT USERS OR OTHER ENTITIES, MEMBERS OF THE COOPERATIVE. SECTION 3. JOINT MEMBERSHIP, WAS AMENDED TO EXPAND THE DEFINITION OF JOINT MEMBERSHIP TO TWO MEMBER/OWNERS RATHER THAN JUST A HUSBAND AND WIFE. ARTICLE III - MEETINGS OF MEMBERS SECTION 1. ANNUAL MEETING, WAS AMENDED TO ALLOW THE COOPERATIVE ANNUAL MEETING OF MEMBERS TO BE HELD ON SATURDAYS OR SUNDAYS, NOT JUST SUNDAYS. ARTICLE IV - TRUSTEES SECTION 1. GENERAL POWERS, ADDED A NEW SECTION THAT REQUIRES THE COOPERATIVE'S BOARD OF TRUSTEES TO ADOPT THE CODE OF CONDUCT WITH THE MINIMUM REQUIREMENTS SET OUT IN THE AMENDMENT. SECTION 2. ADDS TERM LIMITS TO THOSE ELECTED OR APPOINTED TO THE COOPERATIVE'S BOARD OF TRUSTEES ON OR AFTER JULY 1, 2023. SECTION 4. NOMINATION AND ELECTION OF TRUSTEES, WAS AMENDED TO EXPAND THE NOTICE PERIOD OF THE COOPERATIVE BOARD OF TRUSTEES ELECTIONS SO THAT MEMBERS ARE NOTIFIED SOONER REGARDING COOPERATIVE BOARD OF TRUSTEES ELECTIONS. FURTHER, THIS BYLAW PROVISION MAKES IT CLEARER REGARDING WHAT MUST BE INCLUDED IN THE NOTICE. SECTION 11. ELECTION OF TRUSTEE AT LARGE, WAS AMENDED TO REDEFINE THE TRUSTEE-AT-LARGE POSITION, ELIMINATING THE CURRENT POSITION IN 2025 THAT IS CURRENTLY ELECTED BY THE MEMBERS OF THE COOPERATIVE'S BOARD OF TRUSTEES EVERY TWO YEARS. BEGINNING IN 2025, THE POSITION BECOMES AN AT-LARGE TRUSTEE POSITION ELECTED BY AND FROM THE COOPERATIVE'S MEMBERS IN DISTRICT 6. ARTICLE VI - OFFICERS SECTION 1. NUMBER, WAS AMENDED TO ADD THE SECRETARY/TREASURER BOARD OFFICER POSITION TO THE COOPERATIVE'S BYLAWS. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.JEMEZCOOP.ORG. 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 TRUSTEES ON A DISTRICT BASIS AT THE RESPECTIVE DISTRICT MEETINGS. THE TRUSTEES ALSO VOTE ON THE ONE "AT LARGE" TRUSTEE AS PART OF THE ANNUAL MEETING. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS, EXCEPT THE TRUSTEE AT LARGE PER ABOVE. 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 REVIEWS THE FORM 990, THEN PROVIDES A COPY TO THE BOARD OF TRUSTEES FOR DISCUSSION AND REVIEW. FORM 990, PART VI, SECTION B, LINE 12C OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF TRUSTEES AS SOON AS POSSIBLE. ADDITIONALLY, THE BYLAWS DISQUALIFY A TRUSTEE FROM SERVING ON THE BOARD IF HE/SHE IS, IN ANY WAY, FINANCIALLY INTERESED IN A COMPETING ENTERPRISE OR A BUSINESS SELLING ELECTRIC ENERGY OR MAJOR SUPPLIES TO THE COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 15 WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER, THE BOARD OF TRUSTEES UTILIZE A COMPENSATION SURVEY TO OBTAIN COMPENSATION DATA FOR GENERAL MANAGERS OF OTHER ELECTRIC COOPERATIVES LOCATED IN THE COOPERATIVE'S GEOGRAPHIC REGION. ADJUSTMENTS TO COMPENSATION ARE DELIBERATED AND APPROVED BY THE BOARD OF TRUSTEES. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN THE COOPERATIVE'S GEOGRAPHIC REGION. ADJUSTMENTS TO COMPENSATION ARE DELIBERATED AND APPROVED BY THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. ADDDITIONALLY, THE ARTICLES OF INCORPORATION, BYLAWS, BOARD POLICIES (INCLUDING THE CONFLICT OF INTEREST POLICY), AND THE MOST RECENT COMPLETED SET OF AUDITED FINANCIAL STATEMENTS ARE LOCATED ON THE COOPERATIVE'S WEBSITE AT WWW.JEMEZCOOP.ORG. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH TRUSTEE WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES AND TIME LOGS 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 AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. 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. THE COOPERATIVE CONTRIBUTES BASED ON A PERCENTAGE OF THE PARTICIPATING EMPLOYEE'S SALARY AS DETERMINED UNDER THE PLAN DOCUMENT. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, AND LIFE INSURANCE TO ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE CONTRIBUTIONS TO THE 401(K) DEFERRED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID FOR THEIR BENEFIT. 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 ON THE ACCRUAL BASIS USING THE RURAL UTILITIES SERVICE'S (RUS) PRESCRIBED UNIFORM SYSTEM OF ACCOUNTS (USOA). 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 ITS ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART IX, LINES 5-7: SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 7,853,164 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (84,859) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (47,868) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 133,240 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,384,762 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 518,836 TOTAL WAGES ACCRUED AND/OR PAID $ 9,757,275 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 3,076,881 OFFICE SUPPLIES 27,861 OUTSIDE SERVICES 430,462 INJURIES & DAMAGES 383,057 INFORMATION TECHNOLOGY 448,799 DUPLICATE CHARGES (CREDIT) (89,171) MISCELLANEOUS GENERAL 1,513,362 TRUSTEES 165,552 TRAININGS & MEETINGS 201,046 RATE RIDER 1,472,724 MAINTENANCE OF GENERAL PLANT 346,764 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 7,977,337 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (84,859) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,036,203) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (579,122) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 5,277,153 FORM 990, PART IX, LINE 4: PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS 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, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TAXES $ 684,801 BROADBAND EXPENSES 1,634 OTHER DEDUCTIONS 205 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 686,640 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS -2,310. FORM 990, PART XII, LINE 2C: APPOINTED MEMBERS OF THE BOARD OF TRUSTEES SERVE ON THE AUDIT COMMITTEE. THIS COMMITTEE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND FOR RECOMMENDING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR TO THE FULL BOARD OF TRUSTEES. PROCEDURES REMAINED UNCHANGED DURING THE YEAR. JEMEZ MOUNTAINS ELECTRIC FOUNDATION PO BOX 128 ESPANOLA NM 87532 237022094 PROVIDE SCHOLARSHIPS TO STUDENTS NM 501(C)(3) PF JEMEZ MOUNTAINS ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 JEMEZ MOUNTAINS ELECTRIC FOUNDATION N N/A - LESS THAN $50,000 JEMEZ MOUNTAINS ELECTRIC FOUNDATION O N/A - LESS THAN $50,000 JEMEZ MOUNTAINS ELECTRIC FOUNDATION Q N/A - LESS THAN $50,000