2023-11-13T14:10:35-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 740811772 NUECES ELECTRIC COOPERATIVE INC NUEC 3613872581 14353 COOPERATIVE AVE ROBSTOWN TX 78380 VARZAVAND IRANI CEO 3613872581 2023-09-28 1 VARZAVAND IRANI 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-09-28 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z VARZAVAND IRANI 14353 COOPERATIVE AVE ROBSTOWN TX 78380 110240780 0 X WWW.NUECESELECTRIC.ORG X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 8 8 98 0 0 0 0 0 87521103 109057063 1132855 930542 53807 28874 88707765 110016479 74584 56618 6438361 9157834 6625432 7075592 0 0 0 75446437 93708785 88584814 109998829 122951 17650 212095793 219076817 94907125 95790881 117188668 123285936 THE MISSION OF NUECES ELECTRIC COOPERATIVE, INC, A MEMBER-OWNED COOPERATIVE, IS TO HELP OUR MEMBERS CONTINUALLY IMPROVE THEIR QUALITY OF LIFE BY PROVIDING RELIABLE AND COST EFFECTIVE ELECTRIC SERVICE IN A CULTURE WHERE SAFETY IS A PRIORITY. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 51,082 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 1 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 87 0 98 1 0 0 0 0 0 109490286 1947731 0 0 0 X 8 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X X ADRIANA PENA CFO 3613872581 14353 COOPERATIVE AVE ROBSTOWN TX 78380 X BRIAN MENKING PRESIDENT 3.47 X X 19800 0 0 DAVID ROSSE SECRETARY/TREASURER 4.40 1.00 X X 17400 0 0 RUMALDO JUAREZ DIRECTOR 3.60 X 17100 0 0 GREGG TRUESDALE DIRECTOR 3.10 X 17100 0 0 GLADYS LIPPINCOTT DIRECTOR 1.00 X 16800 0 0 JUAN ALVARADO DIRECTOR 3.63 X 16500 0 0 DONALD WAYNE HERRMANN DIRECTOR 4.40 1.00 X 15600 0 0 LOUIS W HARTMAN JAN-SEP DIRECTOR 1.00 X 12900 0 0 SUSAN STEWART OCT-DEC DIRECTOR 3.25 X 3900 0 0 VARZAVAND IRANI CEO 50.00 X 312720 0 125710 SARAH FISHER COO/ASSISTANT GM 52.00 X 192579 0 137029 ADRIANA PENA CFO 46.00 X 157662 0 124191 FRANK WILSON CRO 47.00 X 150148 0 94187 ROBERT HOLLOWAY JOURNEY LINE WORKER 58.00 X 166158 0 60006 JUAN RIVERA JOURNEY LINE WORKER 63.00 X 169355 0 55610 ALBERT PENA JOURNEY LINE WORKER 50.00 X 133967 0 69316 RAYMUNDO PINA JOURNEY LINE WORKER 54.00 X 144351 0 56651 JUAN GUZMAN JOURNEY LINE WORKER 50.00 X 135349 0 47225 1699389 0 769925 10 0 1 0 SOUTH TEXAS ELECTRIC CO-OP INC PO BOX 119 NURSERY TX 77976 RETAIL BILLING 1403271 URBAN ELECTRICAL SERVICES INC PO BOX 219 CARRIZO SPRINGS TX 78834 LINE CONSTRUCTION 1073766 MOREHEAD DOTTS & ASSOCIATES 545 N UPPER BROADWAY CORPUS CHRISTI TX 78401 ADVERTISING 1034675 JD UNDERGROUND INC PO BOX 955 SINTON TX 78387 TRENCHING AND BORING 307692 ASPLUNDH TREE EXPERT CO 1700 SOLUTION CENTER CHICAGO IL 60677 TREE TRIMMING 303442 15 X SALES OF ELECTRICITY 221000 102951753 102951753 PATRONAGE DIVIDENDS 221000 3256967 3256967 DISTRIBUTION SERVICES 221000 1751825 1751825 SERVICE FEES 221000 1075777 1075777 OTHER PROGRAM REVENUE 221000 20741 20741 109057063 933618 933618 185 3261 -3076 -3076 -3076 198329 221040 -22711 -22711 POLE ATTACHMENT INCOME 221000 51585 51585 51585 110016479 109031276 0 985203 X 56618 9157834 1431326 3959417 405601 925376 353872 3252177 4482531 PURCHASED POWER 72626777 ADMIN & GENERAL EXPENSE 4240198 CONSUMER EXPENSE 4153975 DISTRIBUTION EXPENSE 2428223 2524904 109998829 6300946 10227895 500000 178962 2836669 2926300 1888101 1939614 997180 656481 154862572 35401303 118909190 119461269 30064010 30359099 47962137 50672702 2637560 2654495 212095793 219076817 6837504 10171703 8239627 7195498 263749 258556 73618435 71841553 5947810 6323571 94907125 95790881 X 514135 575015 0 0 116674533 122710921 117188668 123285936 212095793 219076817 X 17650 6079618 X X 0 1 X 1 0 0 1 X 1234601 1234601 26926254 6183096 20743158 125082533 29218207 95864326 1619184 1619184 119461269 TREASURY STRIPS 30359099 C 30359099 CAPITAL TERM CERTIFICATES 738569 C PATRONAGE CAPITAL - STEC 44350468 C PATRONAGE CAPITAL - CFC 280180 C PATRONAGE CAPITAL - TEC 1147556 C PATRONAGE CAPITAL - NISC 173132 C PATRONAGE CAPITAL - COBANK 2511422 C PATRONAGE CAPITAL - FEDERATED 587362 C PATRONAGE CAPITAL - CRC 18875 C PATRONAGE CAPITAL - NRTC 108710 C PATRONAGE CAPITAL - VALLEY TELEPHONE 2727 C OTHER INVESTMENTS - RESTRICTED ENERGY DEPOSIT & SCHOLARSHIP FUND 751566 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 2135 C 50672702 CONSUMER DEPOSITS 2231968 ADVANCES FOR CONSTRUCTION 2698331 UNCLAIMED PATRONAGE CAPITAL PAYABLE 746345 ACCRUED OPERATING TAXES 529235 ACCRUED EMPLOYEE INCENTIVE 117692 6323571 X 109154715 0 109154715 861764 861764 110016479 99979231 0 99979231 10019598 10019598 109998829 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. PART X, LINE 2: THE COOPERATIVE 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(IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: NON-OPERATING EXPENSE RECLASSIFIED AS FORM 990 EXPENSE 861,764. PART XII, LINE 4B - OTHER ADJUSTMENTS: NON-OPERATING EXPENSE RECLASSIFIED AS FORM 990 EXPENSE 861,764. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,157,834. 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. THEREFORE, 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 CAPITAL THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". 0 NUECES CHARITIES INC 14353 COOPERATIVE AVE CORPUS CHRISTI TX 78380 742756238 501(C)(3) 0 10000 CHARITIES DONATIONS 2022 BUCCANEER COMMISSION INC PO BOX 30404 CORPUS CHRISTI TX 78463 741144093 501(C)(3) 0 7500 2022 BUC DAY MILITARY APPRECIATION AND 2022 BUC DAY SPONSORSHIP. MORALE WELFARE & RECREATION 601 NIMITZ AVE BLDG 3766 NAVAL AIR STATION KINGSVILLE TX 78363 741871775 501(C)(3) 0 13800 WINGS OVER SOUTH TEXAS EVENT 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 X 0 0 0 VARZAVAND IRANI CEO 267962 0 27497 0 17261 0 96492 0 29218 0 438430 0 0 0 SARAH FISHER COO/ASSISTANT GM 156986 0 13325 0 22268 0 104658 0 32371 0 329608 0 0 0 ADRIANA PENA CFO 140603 0 10646 0 6413 0 93006 0 31185 0 281853 0 0 0 FRANK WILSON CRO 124684 0 9976 0 15488 0 64551 0 29636 0 244335 0 0 0 ROBERT HOLLOWAY JOURNEY LINE WORKER 154168 0 3694 0 8296 0 32228 0 27778 0 226164 0 0 0 JUAN RIVERA JOURNEY LINE WORKER 160430 0 4127 0 4798 0 43809 0 11801 0 224965 0 0 0 ALBERT PENA JOURNEY LINE WORKER 126901 0 2972 0 4094 0 41517 0 27799 0 203283 0 0 0 RAYMUNDO PINA JOURNEY LINE WORKER 126266 0 3299 0 14786 0 27419 0 29232 0 201002 0 0 0 JUAN GUZMAN JOURNEY LINE WORKER 128136 0 2864 0 4349 0 19413 0 27812 0 182574 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 ENVIORNMENT. 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. VARZAVAND IRANI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 86,381 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,111 TOTAL REPORTED IN COLUMN C $ 96,492 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (86,381) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 49,584 EXPENSE TO THE COOPERATIVE $ 59,695 SARAH FISHER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 98,353 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,305 TOTAL REPORTED IN COLUMN C $104,658 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (98,353) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,242 EXPENSE TO THE COOPERATIVE $ 41,547 ADRIANA PENA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 87,782 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,224 TOTAL REPORTED IN COLUMN C $ 93,006 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (87,782) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,465 EXPENSE TO THE COOPERATIVE $ 34,689 FRANK WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 59,634 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,917 TOTAL REPORTED IN COLUMN C $ 64,551 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (59,634) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,741 EXPENSE TO THE COOPERATIVE $ 32,658 ROBERT HOLLOWAY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,835 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,393 TOTAL REPORTED IN COLUMN C $ 32,228 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,835) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,067 EXPENSE TO THE COOPERATIVE $ 24,460 JUAN RIVERA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,377 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,432 TOTAL REPORTED IN COLUMN C $ 43,809 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,377) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,067 EXPENSE TO THE COOPERATIVE $ 24,499 ALBERT PENA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,169 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,348 TOTAL REPORTED IN COLUMN C $ 41,517 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,169) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,067 EXPENSE TO THE COOPERATIVE $ 23,415 RAYMUNDO PINA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,655 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,764 TOTAL REPORTED IN COLUMN C $ 27,419 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,655) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,067 EXPENSE TO THE COOPERATIVE $ 23,831 JUAN GUZMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,983 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,430 TOTAL REPORTED IN COLUMN C $ 19,413 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,983) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,333 EXPENSE TO THE COOPERATIVE $ 21,763 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 A NET INCOME OF $17,650, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE. 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 EQUAL TO THE NET INCREASE IN ACCRUED UNBILLED REVENUE OR A NET LOSS EQUAL TO THE NET DECREASE IN UNBILLED REVENUE. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/22 $ 2,646,207 LESS: UNBILLED REVENUE 12/31/21 (2,628,557) (A) - INCREASE EQUALS NET INCOME ON PAGE 1 $ 17,650 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 9,157,834 TOTAL 2022 NET MARGIN (A + B) $ 9,175,484 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. AMENDMENT TO THE ARTICLES OF INCORPORATION 2. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 3. DISSOLUTION AND LIQUIDATION OF THE COOPERATIVE 4. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 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 DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE IMMEDIATELY ANY RELATIONSHIPS CONSIDERED TO BE A POSSIBLE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS/GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND 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 THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COPY OF ITS CONFLICT OF INTEREST POLICY TO ANY MEMBER REQUESTING A COPY. THE COOPERATIVE ALSO PROVIDES A COPY OF THE SUMMARIZED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE IN THE ANNUAL REPORT. ADDITIONALLY, THE BYLAWS, ARTICLES OF INCORPORATION, AND A FULL COPY OF AUDITED FINANCIAL STATEMENTS ARE ALSO POSTED TO THE COOPERATIVE'S WEBSITE FOR THE MOST RECENTLY COMPLETED CALENDAR YEARS. 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. MR. HARTMAN IS NO LONGER A DIRECTOR OF THE BOARD; THEREFORE, HIS PRIOR YEAR QUESITONNAIRE WAS RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES FROM 2021 TO 2022. 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 BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. 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 NO LONGER AN 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, 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 $ 5,390,743 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (137,100) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (481,117) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 9,132 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,750,901 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 358,289 TOTAL WAGES ACCRUED AND/OR PAID $ 6,890,848 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,527,472 OFFICE SUPPLIES 773,794 OUTSIDE SERVICES 367,021 INSURANCES 376,987 REGULATORY COMMISSION 378,431 DIRECTORS 167,119 DUES AND SUBSCRIPTIONS 128,999 ANNUAL MEETING 236,871 ADVERTISING 1,579,488 MISCELLANEOUS GENERAL 582,113 MAINTENANCE OF GENERAL PLANT 432,449 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,550,744 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (137,100) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,494,967) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (678,479) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,240,198 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 2021 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 ARE COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 102,780 MILITARY PRIVATIZATION EXPENSES 861,764 PROPERTY AND GROSS RECEIPTS TAXES 1,560,360 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 2,524,904 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,157,834. PATRONAGE CAPITAL RETIRED - TOTAL -3,214,829. PATRONAGE CAPITAL RETIRED - DISCOUNT 75,727. NET CHANGE IN MEMBERSHIPS 60,880. UNBILLED REVENUE 6. 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. NUECES ELECTRIC CHARITIES INC 14353 COOPERATIVE AVE ROBSTOWN TX 78380 742756238 BETTERING THE QUALITY OF LIFE OF CITIZENS WITHIN THE SERVICE AREA. TX 501(C)(3) LINE 7 NUECES ELECTRIC COOPERATIVE INC 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 NUECES ELECTRIC CHARITIES INC N N/A - UNDER $50,000 NUECES ELECTRIC CHARITIES INC B N/A - UNDER $50,000 NUECES ELECTRIC CHARITIES INC O N/A - UNDER $50,000