2023-10-27T10:48:30-05:00 2022-12-31 431273431 SCHULTZ WOOD & RAPP PC PO BOX 377 WEST PLAINS MO 65775 990 2022-01-01 440290777 HOWELL OREGON ELECTRIC COOPERATIVE INC HOWE 4172562131 PO BOX 649 WEST PLAINS MO 65775 DENNIS WALTON DIRECTOR 4172562131 2023-10-27 1 DENNIS WALTON 999009999 0 NICHOLAS W SCHULTZ CPA P01632698 4172566191 2023-10-27 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z DENNIS WALTON PO BOX 649 WEST PLAINS MO 65775 46520495 0 X N/A X 1939 MO PROVIDE THE LOWEST POSSIBLE ELECTRIC RATES FOR MEMBERS 12 12 94 0 0 0 0 0 854675 625984 187345 612582 21310372 22145494 22352392 23384060 0 0 4511738 4725005 7346635 7585507 0 0 0 12794019 13073548 24652392 25384060 -2300000 -2000000 137805164 152806681 93021058 105298955 44784106 47507726 HOEC WILL BE A LEADER IN DELIVERING COST EFFECTIVE, RELIABLE ENERGY WITH VALUE ADDED SERVICE TO ITS MEMBER-OWNERS. 0 0 25384060 THE COOPERATIVE'S PURPOSE IS TO PROVIDE THE LOWEST POSSIBLE ELECTRIC RATES FOR MEMBERS AND THE END OF THE YEAR MARGINS ARE ASSIGNED TO THE MEMBERSHIP AS PATRONAGE CAPITAL. 25384060 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 1 1 1 0 1 32 0 94 1 0 0 0 0 0 45275469 1014513 0 0 0 X 12 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X THE ORGANIZATION 4172562131 6327 US HWY 63 WEST PLAINS MO 65775 LARRY PENDERGRASS DIRECTOR 4.54 0.87 X 7200 0 0 DENNIS WALTON SECRETARY-TREASURER 4.42 0.83 X X 7600 0 0 BRANDON HUFFMAN DIRECTOR 5.02 0.21 X 14000 0 0 SCOTT MAHAN DIRECTOR 3.52 0.40 X 5600 0 0 JOHN PLUMMER DIRECTOR 4.10 0.46 X 6400 0 0 GAREL MONTGOMERY DIRECTOR 3.60 0.37 X 5200 0 0 DON JOHNSON ASSISTANT SECRETARY-TREASU 3.39 0.19 X X 4800 0 0 KEITH THARP VICE PRESIDENT 4.58 1.06 X X 7600 0 0 JIM LAWRENCE PRESIDENT 4.92 1.25 X X 9000 0 0 CLINTON REEVES DIRECTOR 4.81 1.25 X 8000 0 0 JOSH ROBERTS DIRECTOR 3.79 0.21 X 7200 0 0 GLEN JOHNSON DIRECTOR 4.77 0.25 X 8000 0 0 DAN SINGLETARY CHIEF EXECUTIVE OFFICER 47.00 0.72 X 317274 46400 235964 TRACY BROWER CHIEF FINANCIAL OFFICER 38.00 0.37 X 130298 0 117708 TROY HOGSETT MANAGER OF ENGINEERING 40.00 0.00 X 136681 0 104845 BENNIE PERKINS MANAGER OF OPERATIONS 41.00 0.00 X 129036 0 130903 MYLES SMITH MANAGER OF MEMBER SERVICES 45.00 0.49 X 104734 0 62792 BILL TEMPLE MANAGER OF ACCOUNTS RECEIV 42.00 0.00 X 103899 0 78820 CHAD WICKINS FOREMAN 1.00 0.00 X 103757 0 98102 1116279 46400 829134 7 0 1 0 PIKE PO BOX 1000 MEMPHIS TN 38148 POLE CHANGES 1428900 ARKANSAS ELECTRIC COOPERATIVE PO B0X 190257 LITTLE ROCK AR 72219 RIGHT OF WAY CLEARING 1177019 TOM'S TREE SERVICE 1313 S MAIN STREET ALVIA IA 52531 RIGHT OF WAY CLEARING 988311 KIOWA LINE BUILDERS INC PO BOX 721 TIPTON MO 65081 POLE CHANGES 819637 DON KELLY CONTRACTOR INC PO BOX 10 NORWOOD MO 65717 BORING 394496 6 OTHER CAPITAL CREDIT 221000 378953 378953 POLE RENTAL 221000 224053 224053 GAIN FROM EQUITY INVESTMENTS 221000 22978 22978 625984 581642 581642 37400 6460 30940 30940 30940 45275469 23129975 22145494 22145494 23384060 23384060 0 0 X 4725005 4725005 90600 90600 3885042 3885042 1285113 1285113 1964861 1964861 359891 359891 53152 53152 18000 18000 521005 521005 28536 28536 14892 14892 2156347 2156347 4054787 4054787 OPERATIONS & MAINTENANC 4077640 4077640 TAXES AND LICENSES 971996 971996 ADMINISTRATIVE & GENERA 577851 577851 CUSTOMER SALES & SERVIC 349790 349790 249552 249552 25384060 25384060 0 0 942919 979858 8696409 13977304 5198160 6295885 17852 27001 1175026 2549949 259473 164916 144537744 36579232 101606500 107958512 19908825 20853256 137805164 152806681 6821017 8314210 8950000 10950000 77079743 85885532 170298 149213 93021058 105298955 X 0 0 0 0 44784106 47507726 44784106 47507726 137805164 152806681 X -2000000 4723620 X X 0 1 X 1 0 94449 94449 2823758 2191131 632627 10760848 6573794 4187054 130858689 27814307 103044382 107958512 INVESTMENTS IN ASSOCIATED ORGANIZATIONS 9754043 DEFERRED COMPENSATION 149213 SPECIAL FUNDS - REVENUE DEFERRAL 10950000 20853256 DEFERRED COMPENSATION 149213 149213 X 46514035 23129975 23129975 23384060 0 23384060 43789030 23129975 23129975 20659055 4725005 4725005 25384060 PART X, LINE 2: THE COOPERATIVE FILES FEDERAL FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX. THE COOPERATIVE IS NO LONGER SUBJECT TO INTERNAL REVENUE SERVICE EXAMINATIONS FOR YEARS PRIOR TO 2018. THE COOPERATIVE FOLLOWS THE PROVISIONS OF UNCERTAIN TAX POSITIONS, IF ANY, AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION 740-10-65-1. THE COOPERATIVE RECOGNIZES INTEREST ACCRUED RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES, IF ANY ARISE. NO SUCH INTEREST OR PENALTIES WERE RECOGNIZED DURING 2022 AND 2021. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF POWER $23,129,975 PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF POWER $23,129,975 PART XII, LINE 4B - OTHER ADJUSTMENTS: BENEFITS PAID TO OR FOR MEMBERS $4,725,005 X X X X 0 1 0 DAN SINGLETARY CHIEF EXECUTIVE OFFICER 317274 46400 0 0 0 0 198780 15259 21925 0 537979 61659 0 0 BENNIE PERKINS MANAGER OF OPERATIONS 129036 0 0 0 0 0 103782 0 27121 0 259939 0 0 0 TRACY BROWER CHIEF FINANCIAL OFFICER 130298 0 0 0 0 0 88261 0 29447 0 248006 0 0 0 TROY HOGSETT MANAGER OF ENGINEERING 136681 0 0 0 0 0 87193 0 17652 0 241526 0 0 0 CHAD WICKINS FOREMAN 103757 0 0 0 0 0 72507 0 25595 0 201859 0 0 0 BILL TEMPLE MANAGER OF ACCOUNTS RECEIV 103899 0 0 0 0 0 49300 0 29520 0 182719 0 0 0 MYLES SMITH MANAGER OF MEMBER SERVICES 104734 0 0 0 0 0 49227 0 13565 0 167526 0 0 0 SCH J. PAGE 2,PART II COL. C COLUMN C INCLUDES ACTUARIAL INCREASES IN DEFINED BENEFIT PLAN AND HOEC 401K MATCH CONTRIBUTION OVERVIEW OF PLAN: PART II, COLUMN C: INCLUDED IS THE INCREASE (DECREASE) IN ACTUARIAL VALUE OF BENEFITS PAYABLE IN THE FUTURE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA RS 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 AND ALL OTHER THINGS BEING EQUAL, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE (DECREASE) ARE EXPENSED IN THE FINANCIAL STATEMENTS. BENEFITS REPORTED FOR PARTICIPATION IN NON-QUALIFIED RETIREMENT AND DEFERRED COMPENSATION PLANS ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE UNTIL VESTING UNDER THE PLAN OCCURS. RECONCILIATION OF PART II, COLUMN C TO ACTUAL EXPENSE OF THE COOPERATIVE: DAN SINGLETARY ACTUARIAL INCREASE IN DB PLAN $187,385 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 11,396 TOTAL REPORTED IN COLUMN C $198,781 LESS: ACTUARIAL INCREASE IN DB PLAN <$187,385> ADD: CASH CONTRIBUTIONS TO DB PLAN 73,136 EXPENSE TO THE COOPERATIVE $84,532 COMPENSATION FROM ASSOCIATED ORGANIZATIONS $ 15,259 LESS AMOUNT PAID BY SHO-ME < 15,259> EXPENSE TO THE COOPERATIVE $ 0 TRACY BROWER ACTUARIAL INCREASE IN DB PLAN $ 83,269 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 4,992 TOTAL REPORTED IN COLUMN C $ 88,261 LESS: ACTUARIAL INCREASE IN DB PLAN <$ 83,269> ADD: CASH CONTRIBUTIONS TO DB PLA 31,880 EXPENSE TO THE COOPERATIVE $ 36,872 TROY HOGSETT ACTUARIAL INCREASE IN DB PLAN $ 82,019 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 5,174 TOTAL REPORTED IN COLUMN C $ 87,193 LESS: ACTUARIAL INCREASE IN DB PLAN <$ 82,019> ADD: CASH CONTRIBUTIONS TO DB PLA 33,190 EXPENSE TO THE COOPERATIVE $ 38,364 BENNIE PERKINS ACTUARIAL INCREASE IN DB PLAN $ 98,777 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 5,005 TOTAL REPORTED IN COLUMN C $103,782 LESS: ACTUARIAL INCREASE IN DB PLAN <$ 98,777> ADD: CASH CONTRIBUTIONS TO DB PLA 32,107 EXPENSE TO THE COOPERATIVE $ 37,112 CHAD WICKINS ACTUARIAL INCREASE IN DB PLAN $ 68,941 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 3,566 TOTAL REPORTED IN COLUMN C $ 72,507 LESS: ACTUARIAL INCREASE IN DB PLAN <$ 68,941> ADD: CASH CONTRIBUTIONS TO DB PLA 22,903 EXPENSE TO THE COOPERATIVE $ 26,469 BILL TEMPLE ACTUARIAL INCREASE IN DB PLAN $ 45,351 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 3,949 TOTAL REPORTED IN COLUMN C $ 49,300 LESS: ACTUARIAL INCREASE IN DB PLAN <$ 45,351> ADD: CASH CONTRIBUTIONS TO DB PLA 25,222 EXPENSE TO THE COOPERATIVE $ 29,171 MYLES SMITH ACTUARIAL INCREASE IN DB PLAN $ 49,227 EMPLOYER CONTRIBUTIONS TO 401(K) PLAN 0 TOTAL REPORTED IN COLUMN C $ 49,227 LESS: ACTUARIAL INCREASE IN DB PLAN <$ 49,227> ADD: CASH CONTRIBUTIONS TO DB PLA 25,222 EXPENSE TO THE COOPERATIVE $ 25,222 *DB - DEFINED BENEFIT PENSION PLAN SCH J. PAGE 2, PART II COL. B RECONCILIATION OF PART II, B TO ACTUAL EXPENSE OF THE COOPERATIVE: BASE COMPENSATION FROM RELATED ORGANIZATIONS $ 46,400 LESS AMOUNT PAID BY ASSOC. ELECTRIC COOP. < 30,800> LESS AMOUNT PAID BY SHO-ME < 15,600> EXPENSE TO THE COOPERATIVE $ 0 SHO-ME POWER CEO DAN SINGLETARY, BOARD MEMBER AT SHO-ME POWER, AT REQUEST/BENEFIT OF HOE 23129975 HOWELL OREGON ELECTRIC PURCHASED ALL POWER FROM SHO-ME POWER. 0 ASSOCIATED ELECTRIC COOPERATIVE INC CEO DAN SINGLETARY BOARD MEMBER AT AT AECI, AT REQUEST/BENEFIT OF HOE. 2365 AECI PRODUCES THE POWER SOLD TO SHO-ME POWER AND SHO-ME POWER SELLS POWER TO HOWELL OREGON ELECTRIC. PAYMENTS ARE FOR SERVICES RENDERED. 0 SHO-ME POWER CEO DAN SINGLETARY, BOARD MEMBER AT SHO-ME POWER, AT REQUEST/BENEFIT OF HOE 30859 COMPENSATION PAID AND BENEFITS ACCRUED TO DAN SINGLETARY FROM SHO-ME POWER. 0 ASSOCIATED ELECTRIC COOPERATIVE INC CEO DAN SINGLETARY BOARD MEMBER AT AT AECI, AT REQUEST/BENEFIT OF HOE. 30800 COMPENSATION PAID TO DAN SINGLETARY FROM AECI. 0 PART 1, LINE 19 THE COOPERATIVE OPERATES AT COST, AND, AS SUCH, ANY END OF YEAR MARGINS ARE ASSIGNED TO THE MEMBERSHIP AS PATRONAGE CAPITAL. THE CURRENT YEAR NET LOSS OF $2,000,000 REPORTED ON PART 1, LINE 19 - REVENUE LESS EXPENSES IS THE RESULT OF THE COOPERATIVE ALLOCATING $4,725,005 TO ITS MEMBERS EVEN THOUGH THE NET BOOK INCOME IS $2,725,005. SINCE THE AMOUNT OF THE PATRONAGE DIVIDEND IS REPORTED AS AN EXPENSE ON THE FORM 990, THE DIFFERENCE BETWEEN THE TWO AMOUNTS RESULTS IN A NET LOSS. THE REASON FOR THE LOSS IS DUE TO THE COOPERATIVE ADOPTING A REVENUE DEFERRAL PLAN IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION 980 "REGULATED OPERATIONS" WHICH WAS APPROVED BY THE RURAL UTILITIES SERVICES AS THE PRIMARY LENDER. THE NET EFFECT FOR 2022 IS A REDUCTION OF NET INCOME FOR THE YEAR OF $2,000,000 AND THE RECOGNITION OF A REGULATORY LIABILITY OF THE SAME AMOUNT. THE APPROVED REVENUE DEFERRAL WILL BE RECOGNIZED INTO INCOME IN FUTURE YEARS AND IS DESIGNED TO CONTROL RATES BY HELPING TO OFFSET THE FUTURE POTENTIAL INCREASE IN POWER COSTS. REGARDLESS OF THE RATE DECISIONS TO DEFER REVENUE, THE AMOUNTS DEFERRED ARE ASSIGNABLE TO 2022 MEMBERS AS PATRONAGE DIVIDENDS. TO ASSIST IN UNDERSTANDING THE NET LOSS AND THE DIFFERENCE BETWEEN NET INCOME OF THE COOPERATIVE AND THE PATRONAGE DIVIDENDS ALLOCATED TO MEMBERS, THE 2022 PATRONAGE DIVIDEND IS CALCULATED AS FOLLOWS: 2022 NET MARGINS PER AUDITED FINANCIAL STATEMENTS: $2,725,005 PLUS: 2022 INCREASE IN DEFERRED REVENUE (TO BE RECOGNIZED INTO MARGINS IN FUTURE YEARS) +2,000,000 2022 PART 1, LINE 14 - BENEFITS PAID TO MEMBERS $4,725,005 THE NET EFFECT OF THE APPROVED REVENUE DEFERRAL PLAN IN 2021 WAS AN DECREASE IN REVENUE OF $2,300,000 AND THE INCREASE OF A REGULATORY LIABILITY FOR THE SAME AMOUNT. THE 2021 RECONCILIATION IS AS FOLLOWS: 2021 NET MARGINS PER AUDITED FINANCIAL STATEMENTS: $2,211,738 PLUS: 2021 INCREASE IN DEFERRED REVENUE (TO BE RECOGNIZED INTO MARGINS IN FUTURE YEARS) +2,300,000 2021 PART 1, LINE 14 - BENEFITS PAID TO MEMBERS $4,511,738 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE HAS MEMBERS. THE COOPERATIVE WAS ORGANIZED BY AND FOR THE MUTUAL BENEFIT OF THE MEMBERS AND PROVIDES ELECTRIC ENERGY ON A COOPERATIVE BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER OF THE COOPERATIVE ELECT THE BOARD OF DIRECTORS AT THE ANNUAL MEETING. ONE MEMBER EQUALS ONE BALLOT. DIRECTOR ELIGIBILITY IS BASED ON VOTING DISTRICT, HOWEVER EACH MEMBER HAS ONE VOTE PER VOTING DISTRICT ON THE BALLOT. FORM 990, PART VI, SECTION A, LINE 7B ANY CHANGES OR AMENDMENT TO THE BYLAWS PROPOSED BY THE BOARD OF DIRECTORS MUST BE APPROVED BY THE MEMBERS. THE BYLAWS SET FORTH ADDITIONAL TRANSACTIONS THAT REQUIRE MEMBER APPROVAL. VOTING FOR ANY BYLAW CHANGES OCCURS AT THE ANNUAL MEETING, WITH EACH MEMBER GETTING ONE VOTE. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS AND REVIEWED BEFORE SIGNING AND FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR AND EMPLOYEE MUST DISCLOSE ANY SITUATION WHICH, IN HIS OR HER OPINION VIOLATES, MAY VIOLATE OR WOULD APPEAR TO VIOLATE THE INTENT OF THE POLICY. IN ADDITION, THE DIRECTORS AND STAFF OF HOEC ANNUALLY FILL OUT A CONFLICT OF INTEREST QUESTIONNAIRE TO FACILITATE DISCLOSURE. THE BOARD PRESIDENT IS RESPONSIBLE FOR THE ENFORCEMENT OF THE CONFLICT OF INTEREST POLICY AND ANY VIOLATIONS ARE BROUGHT BEFORE THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 ANNUALLY A SURVEY OF COMPARABLE WAGES FROM SIMILIAR COOPS IS OBTAINED AND REVIEWED TO ASSIST IN DETERMINING WAGES OF THE CEO AND OTHER OFFICER'S AND EMPLOYEES. ALSO ANNUALLY, BENEFITS UNLIMITED GROUP PERFORMS A WAGE ANALYSIS BY POSITION. THESE RESULTS ARE REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS PRIOR TO ANY WAGE ADJUSTMENTS. FORM 990, PART VI, SECTION C, LINE 19 EVERY NEW MEMBER IS GIVEN A COPY OF THE BYLAWS UPON JOINING THE COOPERATIVE, AND BYLAWS ARE AVAILABLE AT ANY TIME UPON REQUEST. THE FINANCIAL STATEMENTS ARE PRESENTED AT THE ANNUAL MEETING AND UPON REQUEST. THE CONFLICT OF INTEREST POLICY IS PRESENTED UPON REQUEST. PART IX STATEMENT OF FUNCTIONAL EXPENSES EXPENSES ARE RECORDED IN THE AUDITED FINANCIAL STATEMENTS IN ACCORDANCE WITH USDA/RURAL UTILITIES SERVICE BULLETIN 1767B-1, UNIFORM SYSTEM OF ACCOUNTS. EXPENSES FOR DIRECTORS, SALARY & WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES HAVE BEEN RECLASSIFIED OUT OF THEIR ORIGINAL CATEGORIES FOR FORM 990 PRESENTATION. ALL OTHER EXPENSES ARE RECORDED ON THE FORM 990 IN THEIR RESPECTIVE CATEGORIES IN ACCORDANCE WITH THE PRESCRIBED RUS ACCOUNTING REQUIREMENTS. THIS IS A SCHEDULE OF EXPENSES AND, AS SUCH, THESE AMOUNTS DO NOT INCLUDE AMOUNTS CAPITALIZED ON THE BALANCE SHEET. FORM 990, PART XI, LINE 9: 2022 PATRONAGE CAPITAL ASSIGNED TO MEMBERS 4,725,005. 2022 NET PATRONAGE CAPITAL RETIREMENTS -1,385. FORM 990, PART XII, LINE 2C THERE WERE NO CHANGES TO THE SELECTION PROCESS FOR THE AUDITOR OR THE OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT. HOWELL-OREGON TECHNOLOGIES LLC 6327 N US HWY 63 WEST PLAINS MO 65775 431790470 WHOLLY OWNED SUB MO N/A C 22977 93706 1.00000 0 HOWELL-OREGON SERVICE CORP 6327 N US HWY 63 WEST PLAINS MO 65775 431448266 INACTIVE WHOLLY OWNED SUB MO N/A C 500 1.00000 0 SHO-ME POWER ELECTRIC COOPERATIVE PO BOX D MARSHFIELD MO 65706 ELECTRIC POWER TRANSMISSION MO N/A C 25519589 53975269 0.11110 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 HOWELL OREGON TECHNOLOGIES LLC P 120000 PAYMENTS FROM HOE TECHNOLOGIES HOWELL OREGON TECHNOLOGIES LLC D 2949 AMOUNT DUE FROM HOE TECHNOLOGIES SHO-ME POWER ELECTRIC COOPERATIVE H 23129975 COST OF PURCHASED POWER HOWELL OREGON TECHNOLOGIES LLC Q 121030 PAYMENT TO HOE TECHNOLOGIES