2023-11-15T15:27:51-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 860082366 TRICO ELECTRIC COOPERATIVE INC TRIC 5207442944 PO BOX 930 MARANA AZ 85653 BRIAN HEITHOFF GM/CEO 5207442944 2023-11-15 1 BRIAN HEITHOFF 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-15 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z BRIAN HEITHOFF PO BOX 930 MARANA AZ 85653 106490129 0 X WWW.TRICO.COOP X 1945 AZ TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 144 0 0 0 0 0 107332062 105418347 46912 579625 482234 492157 107861208 106490129 136845 76851 12451159 12085983 12421420 11722022 0 0 0 82869115 81942319 107878539 105827175 -17331 662954 268045549 306199494 130705978 160746504 137339571 145452990 DEDICATED TO MAKING A DIFFERENCE IN THE COMMUNITIES WE SERVE BY PROVIDING OUR MEMBERS COST-EFFECTIVE AND SUSTAINABLE ENERGY SOLUTIONS. 0 0 SALE OF ELECTRIC POWER TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 52,455 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 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 0 0 0 0 0 0 0 1 1 1 0 1 66 0 144 1 0 0 0 0 0 107577883 1835969 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 AZ X JAMES FREEMAN CFO 5207442944 8600 W TANGERINE RD MARANA AZ 85658 X DON BLACK DIRECTOR (JAN-AUG) 1.00 1.00 X 3047 0 0 JAMES R PYERS DIRECTOR (JAN-MARCH) 2.30 1.00 X 1590 0 0 JOE KING TREASURER 3.60 1.00 X X 12230 0 0 L NICK BUCKELEW DIRECTOR 1.90 1.00 X 7227 0 0 LARRY HINCHLIFFE PRESIDENT 4.30 1.00 X X 15434 0 0 MARSHA THOMPSON VICE PRESIDENT 3.90 1.00 X X 11909 0 0 ARNOLDO BURRUEL SECRETARY 2.60 1.00 X X 9238 0 0 DARREL BIRKHIMER DIRECTOR (JUNE-DEC) 3.40 1.00 X 14045 0 0 KEVIN MCCARTHY ASST. SECRETARY/TREASURER (APR-DEC) 6.00 1.00 X X 9647 0 0 ERIC HAWKINS CHIEF OPERATING OFFICER/GC 53.00 1.00 X 199136 0 55808 BRIAN FICKETT CHIEF FINANCIAL OFFICER (JAN-APRIL) 47.80 1.00 X 79258 0 38099 BRIAN HEITHOFF CHIEF EXECUTIVE OFFICER/GM 57.00 1.00 X 335296 0 115024 JAMES FREEMAN CHIEF FINANCIAL OFFICER (NOV-DEC) 43.50 1.00 X 33460 0 61833 GARY KELLY MANAGER OF ENGINEERING 48.00 X 170453 0 74315 JEREMY KONSKI JOURNEYMAN LINEMAN 47.70 X 151330 0 43292 BLAKE REIS JOURNEYMAN LINEMAN 49.50 X 149023 0 46362 LESLIE HUNT JOURNEYMAN LINEMAN 47.60 X 135647 0 48600 TOREY BELL MANAGER OF ENGINEERING 45.30 X 134896 0 85451 BRIAN JACKSON OUTPOST CREWLEADER 44.00 X 133424 0 59593 1606290 0 628377 42 0 1 0 WESTERN UTILITY TELECOM INC 5032 SALEM DALLAS HWY NW SALEM OR 97304 ENGINEERING SERVICES 2126641 WILSON CONSTRUCTION CO 1190 NW THIRD AVENUE CANBY OR 97013 POWERLINE CONSTRUCTION CONTRACTOR 1908175 NATIONAL INFORMATION SOLUTIONS COOP ONE INNOVATION CIRCLE LAKE SAINT LOUIS MO 63367 SOFTWARE AND OTHER SERVICES 843517 ELECTRICAL CONSULTANTS INC 3521 GABEL RD BILLINGS MT 59102 ENGINEERING & DESIGN SERVICES 522726 ONE CALL LOCATORS LTD 20809 N 19TH AVENUE STE 1 PHOENIX AZ 85027 OUTAGE LOCATION SERVICES 314327 13 X SALES OF ELECTRICITY 221000 102242272 102242272 PATRONAGE DIVIDENDS 221000 1999258 1999258 SERVICE FEES 221000 792348 792348 ELECTRICITY WHEELING 221000 384469 384469 105418347 579625 579625 POLE ATTACHMENT INCOME 221000 492157 492157 492157 106490129 105418347 0 1071782 X 76851 12085983 1247049 7272327 1632785 977398 592463 4359540 9973125 PURCHASED POWER 57598997 DISTRIBUTION EXPENSE 4617836 ADMIN & GENERAL EXPENSE 3590125 CONSUMER EXPENSE 1369978 432718 105827175 3009639 4306872 9000000 23500000 3936376 8032564 6040578 6877025 2504222 1760077 313115503 117285062 188594796 195830441 52186484 63846636 2773454 2045879 268045549 306199494 8240915 16521746 116945236 138169402 5519827 6055356 130705978 160746504 X 0 0 7127856 7184124 130211715 138268866 137339571 145452990 268045549 306199494 X 662954 7450465 X X 0 1 X 1 0 1400728 1400728 11163802 4650684 6513118 285201967 112634378 172567589 15349006 15349006 195830441 PATRONAGE CAPITAL - CFC 936520 C PATRONAGE CAPITAL - AEPCO 48616335 C PATRONAGE CAPITAL - NISC 300106 C PATRONAGE CAPITAL - COBANK 567841 C PATRONAGE CAPITAL - NRTC 10276 C PATRONAGE CAPITAL - FEDERATED 455657 C MEMBERSHIPS IN ASSOC. ORGS. 3235 C INVESTMENT IN SUBSIDIARY COMPANIES 11858189 C CAPITAL TERM CERTIFICATES 992971 C OTHER INVESTMENTS 105506 C 63846636 CONSUMER DEPOSITS 1773748 ACCRUED OPERATING TAXES 2022767 PENSION RESERVES - DEFERRED COMPENSATION 78569 DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION 216634 DEFERRED CREDITS - UNCLAIMED ACCOUNTS 1963638 6055356 X PART X, LINE 2: THE COOPERATIVE ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALL 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 IS 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 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE CAPITAL ALLOCATED OR TO BE 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 CAPITAL IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE CAPITAL EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". 0 ARIVACA HELPING HEARTS 17191 W ARIVACA RD 201 ARIVACA AZ 85601 800534677 170(B)(1)(A) 8500 0 POWER GRANTS 2022 ARIVACA COORDINATING COUNCIL 17252 W 5TH STREET ARIVACA AZ 85601 860609733 501(C)(3) 5200 0 POWER GRANTS 2022 ARIZONA BURN FOUNDATION INC 1432 N 7TH STREET PHOENIX AZ 85006 860207519 501(C)(3) 7400 0 POWER GRANTS 2022 2 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 0 BRIAN HEITHOFF CHIEF EXECUTIVE OFFICER/GM 320994 0 1500 0 12802 0 96044 0 18980 0 450320 0 0 0 ERIC HAWKINS CHIEF OPERATING OFFICER/GC 197211 0 1500 0 425 0 41042 0 14766 0 254944 0 0 0 GARY KELLY MANAGER OF ENGINEERING 107298 0 1000 0 62155 0 60786 0 13529 0 244768 0 0 0 TOREY BELL MANAGER OF ENGINEERING 128702 0 1500 0 4694 0 58852 0 26599 0 220347 0 0 0 BLAKE REIS JOURNEYMAN LINEMAN 147373 0 1500 0 150 0 20649 0 25713 0 195385 0 0 0 JEREMY KONSKI JOURNEYMAN LINEMAN 149627 0 1500 0 203 0 20959 0 22333 0 194622 0 0 0 BRIAN JACKSON OUTPOST CREWLEADER 131579 0 1500 0 345 0 39058 0 20535 0 193017 0 0 0 LESLIE HUNT JOURNEYMAN LINEMAN 133866 0 1500 0 281 0 22209 0 26391 0 184247 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. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. BRIAN HEITHOFF: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,844 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,200 TOTAL REPORTED IN COLUMN C $ 96,044 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,844) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 87,047 EXPENSE TO COOPERATIVE $ 99,247 ERIC HAWKINS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,967 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,075 TOTAL REPORTED IN COLUMN C $ 41,042 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,967) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 52,799 EXPENSE TO COOPERATIVE $ 60,874 GARY KELLY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,119 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,667 TOTAL REPORTED IN COLUMN C $ 60,786 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,119) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,916 EXPENSE TO COOPERATIVE $ 37,583 TOREY BELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 53,247 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,605 TOTAL REPORTED IN COLUMN C $ 58,852 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (53,247) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,102 EXPENSE TO COOPERATIVE $ 42,707 BLAKE REIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,383 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,266 TOTAL REPORTED IN COLUMN C $ 20,649 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,383) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,821 EXPENSE TO COOPERATIVE $ 29,087 JEREMY KONSKI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,363 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,596 TOTAL REPORTED IN COLUMN C $ 20,959 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,363) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,821 EXPENSE TO COOPERATIVE $ 29,417 BRIAN JACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,275 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,783 TOTAL REPORTED IN COLUMN C $ 39,058 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,275) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,589 EXPENSE TO COOPERATIVE $ 32,372 LESLIE HUNT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,875 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,334 TOTAL REPORTED IN COLUMN C $ 22,209 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,875) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,821 EXPENSE TO COOPERATIVE $ 29,155 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 $662,954, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE AND EQUITY METHOD INCOME. 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. EQUITY METHOD INCOME IS RECORDED ON THE COOPERATIVE'S BOOKS AND INCLUDED IN NET MARGINS. U.S. GAAP REQUIRES THE COOPERATIVE TO RECORD ON ITS BOOKS 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 FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/22 $ 1,494,000 LESS: UNBILLED REVENUE 12/31/21 (1,159,000) (A) - NET INCREASE IN UNBILLED REVENUE $ 335,000 (B) - ADD: EQUITY METHOD LOSS FROM SUBSIDIARY $ 327,954 NET INCOME ON PAGE 1, PART I, LINE 19 (A + B) $ 662,954 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 PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS REVIEWED AND UPDATED, AS NEEDED, BASED ON A SCHEDULE OF POLICY REVIEW OF UP TO 3 PER MONTH AT THE MONTHLY REGULAR BOARD MEETING, AND ANY TIME THAT A POTENTIAL OR ACTUAL CONFLICT OF INTEREST COMES TO THE ATTENTION OF ANY BOARD MEMBER OR THE CEO/GENERAL MANAGER. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE CEO/GENERAL MANAGER. THE CEO/GENERAL MANAGER UTILIZES INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. 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 BY APPOINTMENT AT THE COOPERATIVE'S OFFICE. ANNUALLY THE COOPERATIVE PROVIDES A CONDENSED SUMMARY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. ADDITIONALLY THE BYLAWS OF THE COOPERATIVE ARE MADE AVAILABLE VIA ITS WEBSITE. 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 ALL PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH INSURANCE TO ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR EMPLOYEE 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: 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 MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE. 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 TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 8,519,376 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (84,367) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (345,079) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,232,218 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,308,104 TOTAL WAGES ACCRUED AND OR PAID $11,630,252 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,404,756 OFFICE SUPPLIES 1,111,641 OUTSIDE SERVICES 473,411 INJURIES & DAMAGES 399,368 EMPLOYEE PENSIONS & BENEFITS 85,507 ANNUAL MEETING 73,743 MISCELLANEOUS GENERAL 1,008,358 REGULATORY COMMISSION 211,987 MAINTENANCE OF GENERAL PLANT 1,341,956 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 7,110,727 ADD: RECLASS OF DONATIONS FROM PART IX, LINE 1 7,157 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (84,367) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,393,679) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,049,713) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,590,125 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 2022 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: ALL OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TRANSMISSION $ 217,780 OTHER DEDUCTIONS 212,284 INTERNET EXPENSES 2,654 TOTAL ALL OTHER EXPENSES PER FORM 990, LINE 24E $ 432,718 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 12,085,983. PATRONAGE CAPITAL RETIRED - TOTAL -4,363,832. GAIN ON RETIRED CAPITAL CREDITS 56,268. EQUITY METHOD INCOME(LOSS) FROM SUBSIDIARY -327,954. 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. TRICO FOUNDATION PO BOX 930 MARANA AZ 85653 942941045 TO PROVIDE COLLEGE SCHOLARSHIPS TO MEMEBERS OF THE COOPERATIVE. AZ 501(C)3 PF TRICO ELECTRIC COOPERATIVE 1 TRICO ELECTRIC CHARITABLE TRUST PO BOX 930 MARANA AZ 85653 860794164 TO PROVIDE CHARITABLE GRANTS TO RESIDENTS OF THE COOPERATIVE'S SERVICE AREA. AZ 501(C)3 LINE 7 TRICO ELECTRIC COOPERATIVE 1 AVION SOLAR LLC PO BOX 930 MARANA AZ 85653 832453793 SOLAR ENERGY AZ TRICO ELECTRIC COOPERATIVE INC C 1325460 24737788 1.00000 1 CHIRREON ENERGY LLC PO BOX 930 MARANA AZ 85653 843857627 SOLAR ENERGY AZ TRICO ELECTRIC COOPERATIVE INC C 548750 29845490 1.00000 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 AVION SOLAR LLC B 6134844 CAPITAL CONTRIBUTION CHIRREON ENERGY LLC B 4284734 CAPITAL CONTRIBUTION AVION SOLAR LLC N N/A - LESS THAN $50,000 CHIRREON ENERGY LLC N N/A - LESS THAN $50,000 AVION SOLAR LLC O N/A - LESS THAN $50,000 CHIRREON ENERGY LLC O N/A - LESS THAN $50,000 TRICO FOUNDATION O N/A - LESS THAN $50,000 TRICO ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000 TRICO FOUNDATION Q N/A - LESS THAN $50,000 TRICO ELECTRIC CHARITABLE TRUST Q N/A - LESS THAN $50,000 AVION SOLAR LLC Q N/A - LESS THAN $50,000 AVION SOLAR LLC R 1325460 PURCHASED POWER CHIRREON ENERGY LLC R 548750 PURCHASED POWER