2024-11-15T23:11:41-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 750569260 SOUTH PLAINS ELECTRIC COOPERATIVE INC SOUT 8067757732 PO BOX 1830 LUBBOCK TX 79408 DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 8067757732 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z DALE ANCELL PO BOX 1830 LUBBOCK TX 79408 194059844 0 X WWW.SPEC.COOP X 1943 TX TO PROVIDE ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS. 12 11 203 0 68572 85477 0 0 209185784 192461578 -1517952 -1693988 567482 438705 208235314 191206295 209819 233463 6618295 24228491 14623153 16449373 0 0 0 188010782 151831468 209462049 192742795 -1226735 -1536500 486202083 528128446 277664945 299574211 208537138 228554235 NONE 0 0 SALES OF ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 73,120 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 65 0 203 1 1 1 0 0 0 0 181322323 6238540 0 0 0 X 12 11 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X SHANE ADAMS CFO 8067757732 4727 SOUTH LOOP 289 LUBBOCK TX 79424 X LLOYD ARTHUR DIRECTOR 12.20 X 33500 0 0 DAVID GOSSETT DIRECTOR 11.00 X 27600 0 0 RD MCCALLISTER DIRECTOR 10.60 X 27000 0 0 JOE MCFERRIN DIRECTOR 12.10 X 30104 0 0 BENNY NIXON DIRECTOR 11.40 X 28600 0 0 BOBBY RICHEY PRESIDENT 19.20 X X 29400 0 0 DANNY STANTON VICE PRESIDENT 16.50 X X 31200 0 0 RYNN TRUETT ASSISTANT SECRETARY/TREASU 13.30 X X 30400 0 0 GLEN JONES DIRECTOR (JAN-AUG) 12.80 X 18350 0 0 SCOTT MARTIN SECRETARY/TREASURER 14.60 X X 32100 0 0 JAMIE MCNEILL DIRECTOR (AUG-DEC) 14.90 X 12200 0 0 LARRY BROWNING DIRECTOR 11.50 X 30800 0 0 BRENT WHITAKER DIRECTOR 11.60 X 34100 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 41.00 X 381186 0 89437 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 42.00 X 315781 0 254752 SHANE ADAMS CHIEF FINANCIAL OFFICER 45.00 X 224212 0 72407 STEVEN LATHAM MANAGER OF INFORMATION TECHNOLOGY 40.00 X 194480 0 59893 JOE SALINAS OPERATIONS SUPERINTENDENT 40.00 X 197439 0 45663 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 40.00 X 210429 0 55979 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCES 40.00 X 216674 0 49838 JON HENSON LUBBOCK DIVISION MANAGER 40.00 X 195983 0 63466 2301538 0 691435 61 0 1 0 PRIMARY UTILITY SERVICES LLC PO BOX 1393 SNYDER TX 79550 CONSTRUCTION CONTRACTOR 5730690 SIEGEL CONSTRUCTION INC PO BOX 1026 SHALLOWATER TX 79363 CONSTRUCTION CONTRACTOR 5169235 TEINERT CONSTRUCTION 1402 CRICKETS AVE LUBBOCK TX 79401 CONSTRUCTION CONTRACTOR 3749584 COOKE POWER SERVICES 1000 N FOREST ST AMARILLO TX 79106 ELECTRICAL CONTRACTOR 1486185 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER N SUITE 500 ATLANTA GA 30338 SOFTWARE & TECHNOLOGY 1349641 15 X SALES OF ELECTRICITY 221000 171836524 171836524 PATRONAGE DIVIDENDS 221000 20625054 20625054 192461578 763755 763755 142200 191259 95050 124461 47150 66798 113948 27471 86477 2457743 -2457743 -2457743 -2457743 372262 176295 195967 213872 -17905 POLE ATTACHMENT INCOME 221000 128790 128790 128790 191206295 190245178 68572 892545 X 233463 24228491 1703129 10295784 1668930 1991490 790040 11494834 11339210 PURCHASED POWER 117231288 DISTRIBUTION EXPENSE 5909074 CUSTOMER ACCOUNTS 2628550 UNRELATED BUS. INC. TAX 18225 3210287 192742795 12308286 14209385 21498463 18133931 4289236 4196026 12449 21372 2684345 2395119 440717896 108467195 300264538 332250701 133156096 146938433 11988670 9983479 486202083 528128446 18677038 15144622 255533 302809 241591727 259329693 17140647 24797087 277664945 299574211 X 0 0 0 0 208537138 228554235 208537138 228554235 486202083 528128446 X -1536500 21553597 X X 0 1 X 1 0 0 1 X 1711208 1711208 11854931 5265801 6589130 85675 85675 392106860 103201394 288905466 34959222 34959222 332250701 CAPITAL TERM CERTIFICATES - CFC 3369030 C PATRONAGE CAPITAL - CFC 5327029 C PATRONAGE CAPITAL - TEC 4566184 C PATRONAGE CAPITAL - GSEC 101100715 C PATRONAGE CAPITAL - BRAZOS 25269258 C OTHER INVESTMENTS IN ASSOCIATED ORGS 1072640 C INVESTMENT IN AFFILIATED COMPANY 2802415 C MEMBER CAPITAL TERM CERTIFICATES - CFC 2000000 C MEDIUM TERM NOTES - CFC 1431162 C 146938433 CONSUMER DEPOSITS 696263 ACCRUED OPERATING TAXES 2319212 ACCUMULATED PROVISION FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 5543246 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL 2421144 DEFERRED CREDITS - OTHER 408496 POWER COST - OVER COLLECTED 13408726 24797087 X PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DETERMINED 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 DETERMINED 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 HAS ADOPTED 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 POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. 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 INSIDE OUT FOUNDATION 4630 50TH STREET SUITE 101 LUBBOCK TX 79414 455597137 501(C)(3) 11100 0 COMMUNITY AGENCIES LUBBOCK CHAMBER OF COMMERCE 1500 BROADWAY ST SUITE 101 LUBBOCK TX 79401 750403180 501(C)(6) 8825 0 CHAMBER SUPPORT 1 1 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 X 0 0 X X 0 0 0 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 276090 0 3950 0 35741 0 229383 0 25369 0 570533 0 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 309346 0 5750 0 66090 0 74803 0 14634 0 470623 0 0 0 SHANE ADAMS CHIEF FINANCIAL OFFICER 183286 0 5178 0 35748 0 39153 0 33254 0 296619 0 0 0 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCES 191064 0 5250 0 20360 0 36343 0 13495 0 266512 0 0 0 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 184978 0 5214 0 20237 0 42939 0 13040 0 266408 0 0 0 JON HENSON LUBBOCK DIVISION MANAGER 172441 0 3450 0 20092 0 38236 0 25230 0 259449 0 0 0 STEVEN LATHAM MANAGER OF INFORMATION TECHNOLOGY 165306 0 5187 0 23987 0 27210 0 32683 0 254373 0 0 0 JOE SALINAS OPERATIONS SUPERINTENDENT 151513 0 2650 0 43276 0 32080 0 13583 0 243102 0 0 0 PART I, LINE 1A DURING 2023, THE COOPERATIVE PAID $7,469 FOR COUNTRY CLUB DUES FOR GENERAL MANAGER, LARRY DALE ANCELL. 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. JOHN RANDAL BAILEY: TOTAL REPORTED IN COLUMN C $ 229,383 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (229,383) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 121,639 EXPENSE TO THE COOPERATIVE $ 121,639 LARRY DALE ANCELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,404 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,399 TOTAL REPORTED IN COLUMN C $ 74,803 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,404) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 52,735 EXPENSE TO THE COOPERATIVE $ 62,134 SHANE ADAMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,335 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,818 TOTAL REPORTED IN COLUMN C $ 39,153 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,335) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,878 EXPENSE TO THE COOPERATIVE $ 38,696 TAHNEE TRUITT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,510 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,833 TOTAL REPORTED IN COLUMN C $ 36,343 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,510) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,170 EXPENSE TO THE COOPERATIVE $ 39,003 LYNN SIMMONS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,269 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,670 TOTAL REPORTED IN COLUMN C $ 42,939 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,269) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,087 EXPENSE TO THE COOPERATIVE $ 37,757 JON HENSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,815 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,421 TOTAL REPORTED IN COLUMN C $ 38,236 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,815) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,907 EXPENSE TO THE COOPERATIVE $ 36,328 STEVEN LATHAM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,957 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,253 TOTAL REPORTED IN COLUMN C $ 27,210 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,957) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,217 EXPENSE TO THE COOPERATIVE $ 34,470 JOE SALINAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 27,615 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,465 TOTAL REPORTED IN COLUMN C $ 32,080 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (27,615) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,526 EXPENSE TO THE COOPERATIVE $ 29,991 TUCKER OIL COMPANY INC FAMILY RELATIONSHIP - DIRECTOR (GOSSETT) 412929 GAS & DIESEL SALES TO THE COOPERATIVE. TUCKER OIL IS OWNED BY DIRECTOR GOSSETT'S DAUGHTER & SON-IN-LAW. 0 FORM 990, PART VI, SECTION A, LINE 1B: PER 990 INSTRUCTIONS, DIRECTOR GOSSETT IS NOT INDEPENDENT DUE TO A FAMILY MEMBER ENGAGING IN A TRANSACTION WITH THE COOPERATIVE. THE TRANSACTION IS KNOWN TO ALL MEMBERS OF THE BOARD. FORM 990, PART I, LINE 19: REVENUE LESS EXPENSES AS REPORTED ON PAGE 1, PART I, LINE 19 DIFFERS FROM THE TOTAL NET MARGINS REPORTED ON THE COOPERATIVE'S AUDITED FINANCIAL STATEMENTS DUE TO BOOK TO TAX ADJUSTMENTS REQUIRED TO CONFORM TO THE FORM 990 INSTRUCTIONS. THE FIRST ADJUSTMENT IS FOR THE EQUITY METHOD INCOME RECORDED ON THE COOPERATIVE'S BOOKS AND INCLUDED IN TOTAL NET MARGINS. U.S. GAAP REQUIRES THE COOPERATIVE TO RECORD ON ITS BOOKS THE EQUITY METHOD INCOME FROM ITS WHOLLY OWNED SUBSIDIARY. EQUITY METHOD INCOME IS NOT INCOME FOR IRS FORM 990 PURPOSES AND AS SUCH HAS BEEN REPORTED AS AN OTHER CHANGE IN NET ASSETS. THE SECOND ADJUSTMENT IS FOR THE TRANSFER OF NONOPERATING LOSSES TO OTHER EQUITIES, AND THE THIRD ADJUSTMENT IS FOR THE PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED BY THE COOPERATIVE TO MEMBERS. WHEREAS THE FORM 990 REQUIRES SUCH AMOUNTS TO BE REPORTED AS AN EXPENSE, PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED ARE AN INCREASE IN CAPITAL AND EQUITY, SPECIFICALLY PATRONAGE CAPITAL, ON U.S. GAAP BASIS FINANCIAL STATEMENTS. FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN LARRY DALE ANCELL (EXECUTIVE VP/GM), DAVID GOSSETT (DIRECTOR), AND BENNY NIXON (DIRECTOR). ALL SERVE ON THE BOARD OF GOLDEN SPREAD ELECTRIC COOPERATIVE AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. 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 PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C A LIST OF POTENTIAL CONFLICTS OF INTEREST IS ANNUALLY DISTRIBUTED TO ALL OFFICERS AND MEMBERS OF THE BOARD OF DIRECTORS. EACH OFFICER AND DIRECTOR IS REQUIRED TO REVIEW THE LIST AND DISCLOSE ANY CONFLICTS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S GENERAL MANAGER. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. 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, THIS PLAN COVERS SUBSTANTIALLY ALL EMPLOYEES OF THE DICKENS AND GATE CITY DIVISIONS. 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 EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE 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 2B: PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM GENERATION & TRANSMISSION COOPERATIVES. 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 NO LONGER 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 SEPARATLEY 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, 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 $11,998,913 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (365,354) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (416,596) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 123,003 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,678,992 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 808,898 TOTAL WAGES ACCRUED AND/OR PAID $17,827,856 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL EXPENSE $ 2,588,060 CUSTOMER SERVICE & INFORMATION 177,488 OTHER DEDUCTIONS 186,981 SALES EXPENSE 334,520 OTHER TAXES (1,452) TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 3,285,597 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 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, LINE 24E: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 6,036,439 OFFICE SUPPLIES 443,969 RENT 450,000 OUTSIDE SERVICES 446,724 DUPLICATE CHARGES (CREDIT) (1,100) DUES TO ASSOCIATED ORGANIZATIONS 99,084 ANNUAL MEETING 108,628 DIRECTORS 460,046 MISCELLANEOUS GENERAL 34,284 MAINTENANCE OF GENERAL PLANT 1,883,713 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 9,961,787 LESS: RECLASS OF EXPENSES TO PART VIII (39,480) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (365,354) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,860,091) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (2,108,802) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,588,060 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED 24,228,491. PATRONAGE CAPITAL RETIRED - TOTAL -3,451,476. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEFITS 591,167. EQUITY METHOD LOSS FROM SUBSIDIARY 185,415. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. SOUTH PLAINS ELECTRIC TRUST PO BOX 1830 LUBBOCK TX 79408 756440983 SCHOLARSHIPS, GRANTS, AND DONATIONS TX 501(C)(3) 7 SOUTH PLAINS ELECTRIC COOPERATIVE INC 1 SOUTH PLAINS DEVELOPMENT CORPORATION PO BOX 1830 LUBBOCK TX 79408 752329983 REAL ESTATE RENTAL AND DEVELOPMENT TX SOUTH PLAINS ELECTRIC COOPERATIVE INC C 980255 7205932 1.00000 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 1 SOUTH PLAINS DEVELOPMENT CORPORATION K 450000 RENT PAYMENTS SOUTH PLAINS DEVELOPMENT CORPORATION S 93210 LOAN PRINCIPAL PAYMENTS SOUTH PLAINS DEVELOPMENT CORPORATION O N/A - LESS THAN $50,000 SOUTH PLAINS DEVELOPMENT CORPORATION Q N/A - LESS THAN $50,000 SOUTH PLAINS ELECTRIC TRUST O N/A - LESS THAN $50,000 SOUTH PLAINS DEVELOPMENT CORPORATION A 139719 INTEREST PAID ON NOTE