2023-11-15T15:27:42-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 750569260 SOUTH PLAINS ELECTRIC COOPERATIVE INC SOUT 8067757732 PO BOX 1830 LUBBOCK TX 79408 DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 8067757732 2023-11-15 1 DALE ANCELL 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-09 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z DALE ANCELL PO BOX 1830 LUBBOCK TX 79408 210617727 0 X WWW.SPEC.COOP X 1943 TX TO PROVIDE ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS. 12 11 210 0 71343 75588 0 0 161312126 209185784 -2077064 -1517952 487749 567482 159722811 208235314 175107 209819 4714250 6618295 13500387 14623153 0 0 0 143222429 188010782 161612173 209462049 -1889362 -1226735 469943205 486202083 269171807 277664945 200771398 208537138 NONE 0 0 SALES OF ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 69,941 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 64 0 210 1 1 1 0 0 0 0 213789188 4317988 0 0 0 X 12 11 0 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 10.50 X 34605 0 0 DAVID GOSSETT DIRECTOR 11.00 X 29902 0 0 RD MCCALLISTER DIRECTOR 9.60 X 30260 0 0 JOE MCFERRIN DIRECTOR 10.00 X 26418 0 0 BENNY NIXON DIRECTOR 9.40 X 27758 0 0 BOBBY RICHEY PRESIDENT 16.90 X X 30194 0 0 DANNY STANTON VICE PRESIDENT 14.40 X X 32666 0 0 RYNN TRUETT ASSISTANT SECRETARY/TREASURER 12.40 X X 28122 0 0 GLEN JONES DIRECTOR 12.80 X 37168 0 0 SCOTT MARTIN SECRETARY/TREASURER 11.00 X X 28405 0 0 LARRY BROWNING DIRECTOR 10.20 X 29470 0 0 BRENT WHITAKER DIRECTOR 10.10 X 33358 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 42.00 X 341446 0 93508 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 42.00 X 296237 0 261267 SHANE ADAMS CHIEF FINANCIAL OFFICER 44.00 X 201111 0 83268 STEVEN LATHAM MANAGER OF INFORMATION TECHNOLOGY 41.00 X 180769 0 68374 RANDY MCGEE MANAGER OF MEMBER SERVICES 41.00 X 183581 0 51873 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 40.00 X 194687 0 62132 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCES 40.00 X 202157 0 58555 JON HENSON LUBBOCK DIVISION MANAGER 40.00 X 182142 0 65321 2150456 0 744298 49 0 1 0 PRIMARY UTILITY SERVICES LLC PO BOX 1393 SNYDER TX 79550 CONSTRUCTION CONTRACTOR 5244068 SIEGEL CONSTRUCTION INC PO BOX 1026 SHALLOWATER TX 79363 CONSTRUCTION CONTRACTOR 4759389 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER N SUITE 500 ATLANTA GA 30338 SOFTWARE & TECHNOLOGY 1425731 ECHO POWERLINE INC 313 WALNUT ST BUNKIE LA 71322 CONSTRUCTION CONTRACTOR 1037474 COMDATA CORPORATION 5301 MARYLAND WAY BRENTWOOD TN 37027 SOFTWARE & IT SERVICES 342448 14 X SALES OF ELECTRICITY 221000 204304036 204304036 PATRONAGE DIVIDENDS 221000 4881748 4881748 209185784 503591 503591 153934 170493 101605 143824 52329 26669 78998 4893 62371 11734 2021543 -2021543 -2021543 -2021543 473605 115441 358164 349192 8972 POLE ATTACHMENT INCOME 221000 130320 130320 130320 208235314 207518326 71343 645645 X 209819 6618295 1645163 9063951 1430418 1786397 697224 8574578 10467251 PURCHASED POWER 157475033 DISTRIBUTION EXPENSE 6108462 CUSTOMER ACCOUNTS 2668897 UNRELATED BUS. INC. TAX 16500 2700061 209462049 13366409 12308286 19508899 21498463 4378995 4289236 22145 12449 2916779 2684345 407096596 106832058 284319837 300264538 126168439 133156096 19261702 11988670 469943205 486202083 13493038 18677038 229860 255533 240867142 241591727 14581767 17140647 269171807 277664945 X 0 0 0 0 200771398 208537138 200771398 208537138 469943205 486202083 X -1226735 8992475 X X 0 1 X 1 0 0 1 X 1827188 1827188 11912909 4929505 6983404 361690144 101902553 259787591 31666355 31666355 300264538 CAPITAL TERM CERTIFICATES - CFC 3377323 C PATRONAGE CAPITAL - CFC 5067817 C PATRONAGE CAPITAL - TEC 2995891 C PATRONAGE CAPITAL - GSEC 86119463 C PATRONAGE CAPITAL - BRAZOS 25123997 C OTHER INVESTMENTS IN ASSOCIATED ORGS 854605 C INVESTMENT IN AFFILIATED COMPANY 2617000 C MEMBER CAPITAL TERM CERTIFICATES - CFC 2000000 C SELECT NOTES - CFC 5000000 C 133156096 CONSUMER DEPOSITS 697357 ACCRUED OPERATING TAXES 2523047 ACCUMULATED PROVISION FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 6247085 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL 2540384 DEFERRED CREDITS - OTHER 411097 POWER COST - OVER COLLECTED 4721677 17140647 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 AREA UNITED WAY 1655 MAIN STREET NO 101 LUBBOCK TX 79401 750961812 501(C)(3) 9500 0 ANNUAL SUPPORT LUBBOCK CHAMBER OF COMMERCE 1500 BROADWAY ST SUITE 101 LUBBOCK TX 79401 750403180 501(C)(6) 7175 0 CHAMBER SUPPORT 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 257801 0 3100 0 35336 0 236487 0 24780 0 557504 0 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 288975 0 4900 0 47571 0 79212 0 14296 0 434954 0 0 0 SHANE ADAMS CHIEF FINANCIAL OFFICER 172878 0 4029 0 24204 0 50642 0 32626 0 284379 0 0 0 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCES 180819 0 4200 0 17138 0 45379 0 13176 0 260712 0 0 0 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 172121 0 4056 0 18510 0 48214 0 13918 0 256819 0 0 0 STEVEN LATHAM MANAGER OF INFORMATION TECHNOLOGY 154007 0 4029 0 22733 0 36140 0 32234 0 249143 0 0 0 JON HENSON LUBBOCK DIVISION MANAGER 155045 0 2400 0 24697 0 39906 0 25415 0 247463 0 0 0 RANDY MCGEE MANAGER OF MEMBER SERVICES 143056 0 1800 0 38725 0 37074 0 14799 0 235454 0 0 0 PART I, LINE 1A DURING 2022, 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 $ 236,487 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (236,487) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 107,326 EXPENSE TO THE COOPERATIVE $ 107,326 LARRY DALE ANCELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 70,428 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,784 TOTAL REPORTED IN COLUMN C $ 79,212 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (70,428) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,679 EXPENSE TO THE COOPERATIVE $ 54,463 SHANE ADAMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,153 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,489 TOTAL REPORTED IN COLUMN C $ 50,642 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,153) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,412 EXPENSE TO THE COOPERATIVE $ 35,901 TAHNEE TRUITT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,858 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,521 TOTAL REPORTED IN COLUMN C $ 45,379 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,858) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,639 EXPENSE TO THE COOPERATIVE $ 36,160 LYNN SIMMONS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,934 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,280 TOTAL REPORTED IN COLUMN C $ 48,214 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,934) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,819 EXPENSE TO THE COOPERATIVE $ 34,099 STEVEN LATHAM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,243 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,897 TOTAL REPORTED IN COLUMN C $ 36,140 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,243) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,238 EXPENSE TO THE COOPERATIVE $ 31,135 JON HENSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,997 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,909 TOTAL REPORTED IN COLUMN C $ 39,906 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,997) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,233 EXPENSE TO THE COOPERATIVE $ 30,142 RANDY MCGEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,656 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,418 TOTAL REPORTED IN COLUMN C $ 37,074 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,656) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,200 EXPENSE TO THE COOPERATIVE $ 28,618 TUCKER OIL COMPANY INC FAMILY RELATIONSHIP - DIRECTOR (GOSSETT) 485963 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 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 $10,709,114 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (368,326) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (438,043) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 112,113 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,056,403 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 710,782 TOTAL WAGES ACCRUED AND/OR PAID $15,782,043 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL EXPENSE $ 2,008,820 CUSTOMER SERVICE & INFORMATION 198,374 OTHER DEDUCTIONS 170,959 SALES EXPENSE 314,104 OTHER TAXES 7,804 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 2,700,061 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: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 5,039,353 OFFICE SUPPLIES 360,104 RENT 450,000 OUTSIDE SERVICES 441,132 DUPLICATE CHARGES (CREDIT) (660) DUES TO ASSOCIATED ORGANIZATIONS 90,702 ANNUAL MEETING 109,573 DIRECTORS 464,355 MISCELLANEOUS GENERAL 33,958 MAINTENANCE OF GENERAL PLANT 1,669,011 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 8,657,528 LESS: RECLASS OF EXPENSES TO PART VIII (120,731) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (368,326) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,279,074) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,880,577) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,008,820 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED 6,618,295. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEFITS 2,178,103. EQUITY METHOD LOSS FROM SUBSIDIARY 196,119. OTHER CHANGES IN EQUITIES -42. 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 981191 7074468 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 86759 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 142970 INTEREST PAID ON NOTE