2022-08-30T09:25:23-07:00 2021-12-31 990 2021-01-01 741937134 SAN MIGUEL ELECTRIC COOPERATIVE INC SANM 8307843411 PO Box 280 Jourdanton TX 78026 Nathan Brown General Manager - CEO 8307843411 2022-05-13 1 11 0 AAL2 2021 2022-09-23 18:48:47Z Nathan Brown PO Box 280 Jourdanton TX 78026 162000533 0 X http://www.smeci.net/ X 1977 TX San Miguel was created for the sole purpose of owning and operating a 400 MW mine-mouth lignite-fired generating plant and associated mining facilities to furnish power and energy to its member cooperatives. 19 19 180 0 0 0 0 0 157323791 153196068 6935754 4930873 3733950 3873592 167993495 162000533 0 0 1429332 460000 18715929 19502940 0 0 0 147848234 142037593 167993495 162000533 0 0 486647369 529155212 372324256 415421009 114323113 113734203 Provide safe, reliable and affordable power to our members through diligent resource management, environmental stewardship, and employee growth, while helping to meet needs within the communities we serve. 0 0 San Miguel Electric Cooperative, Inc. was created for the sole purpose of owning and operating a 400 Megawatt mine-mouth lignite-fired generating plant and associated mining facility to furnish power and energy to its members on a cooperative basis. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 122 0 1 180 1 0 0 0 0 0 151981254 10019279 0 0 0 X 19 19 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Derrick Brummett 8307843411 P O Box 280 Jourdanton TX 78026 X Nathan Brown General Manager 50 0 X 265615 0 73009 Derrick Brummett Chief Financial Officer 50 0 X 199694 0 79333 David Burris Fuels Manager 50 X 181379 0 38963 Eric Halfmann Engineering Manager 40 0 X 156289 0 48566 Mark Gawlik Maintenance Supervisor 40 0 X 161245 0 28830 Steven Holland Mechanical Supervisor 40 0 X 160122 0 28799 Oscar Pena Control Room Operator A 40 0 X 156753 0 30057 Kevin Vyvlecka Mechanical Leadman 40 0 X 142471 0 27507 Rolando Alaniz Director 2 0 X 16625 0 0 John Roach Director (June-December) 12 0 X 15763 0 0 Clyde Stewart Assistant Secretary/Treasurer 6 0 X 15645 0 0 Kenneth White President 7 0 X 15625 0 0 David Rosse Director 5 0 X 14922 0 0 Brad Bierstedt Secretary/Treasurer 4 0 X 14675 0 0 Michael Jacobs Director 4 0 X 14656 0 0 Ron Hughes Director 2.5 0 X 14544 0 0 Blaine Warzecha Vice President 5 0 X 14520 0 0 Mark Rollans Director 4 0 X 13072 0 0 Larry Schendel Director 3.5 0 X 12607 0 0 John Herrera Director 5 0 X 12241 0 0 Michael Kezar Director (June-December) 15 0 X 7651 0 0 Colt Haack Director 7 0 X 7344 0 0 Don Wehmeyer Director 8 0 X 6800 0 0 Billy Marricle Director 4 0 X 4380 0 0 Bode Hausmann Director 4 0 X 3800 0 0 Brian Acosta Director 4 0 X 2520 0 0 Jim Coleman Director 6 0.00 X 1278 0 0 Gary Raybon Director 6 0 X 0 0 0 Avan Irani Director 6 0 X 0 0 0 1632236 0 355064 70 0 1 0 North American Construction Group 27287 100th Avenue Acheson Alberta CA T7X6H8 Mining Contractor 69552951 TEI Construction Services Inc 170 Tucapau Duncan SC 29334 Contract Labor 4078230 Bridges Earth Works LLC 4233 FM 624 Robstown TX 78380 Contract Labor 2683166 Vinson & Elkins LLP PO Box 301019 Dallas TX 75303 Legal Services 2459421 Siemens Energy Inc DEPT CH 10169 Palatine IL 60055 Electric Contractor 1777725 34 X 0 Generation of Electricity 221000 153196068 153196068 0 0 0 0 0 0 153196068 4930873 0 0 4930873 0 0 0 0 2500 0 0 2500 0 0 0 0 Sales of SO2 Emission Allowance 221000 5 5 0 0 Transmission 221000 1450763 1450763 0 0 Deferred Revenues 221000 -1214814 -1214814 0 0 3635138 3635138 0 0 3871092 162000533 157067160 0 4933373 X 0 0 0 460000 582089 0 15254323 2503424 0 1163104 1887717 5780539 23360951 Fuels 69161224 Administration 3761612 Operationa/Transmission 12356246 Maintenance 21985501 3743803 162000533 0 0 0 391103 4503916 4522329 22338 0 0 23842255 26293536 0 0 0 0 0 0 50138329 53323229 7809136 21114137 819331187 498033821 298146064 321297366 0 0 0 0 99623408 100394496 0 0 2174745 2206194 486647369 529155212 13504513 14420804 0 0 40991068 39619699 74331705 70955722 0 0 0 0 74954425 73646133 134464608 182035909 34077937 34742742 372324256 415421009 X 0 0 0 0 114323113 113734203 114323113 113734203 486647369 529155212 X 0 0 0 0 0 -588910 X X 0 1 X 1 0 7013778 0 7013778 516751973 0 374481535 142270438 0 0 0 0 144954862 0 113414429 31540433 150610574 0 10137857 140472717 321297366 Mine Closure & Plant Decommissioning 85663000 F Ash Pond Cleanout Funds 1621056 F Patronage Capital from Associated Cooperatives 2833989 F Restricted Investments in Associated Organizations 10127043 F Funds for Mine Activities 149408 F 100394496 Special Funds - Homestead Funds 546223 Interest Receivable 1659971 2206194 Accumulated Provisions for Mine Closure 29828190 Asset Retirement Obligation 4914552 34742742 X 157067160 0 0 0 0 0 157067160 0 4933373 4933373 162000533 161540533 0 0 0 0 0 161540533 0 460000 460000 162000533 Schedule D, Part X, Line 2 ASC Topic #740, "Income Taxes" requires that an enterprise cannot recognize a tax benefit in its financial statements unless it concludes that it is "more likely than not: that the benefit will be sustained on audit by the taxing authority". Tax-exempt and not-for-profit enterprises are also within the scope of the ASC, since the decision that some or all of an enterprise's activities are not subject to income taxes is itself a tax position for which the interpretation requires evaluation. At adoption, and annually thereafter, San Miguel applies the requirements to all tax positions for which the statute of limitations remained open. San Miguel recognizes the financial benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following and audit. San Miguel Electric Cooperative , Inc. was determined by the Internal Revenue Service to be an exempt cooperative for purposes of federal income taxes, under Section 501(c)(12) of the Internal Revenue code, in years when receipts from members, for the purpose of meeting losses and expenses, are at least 85 percent of the total income. Schedule D, Part XI, Line 4b See general explanations on Schedule O for Form 990 Part 1 line 19. Schedule D, Part XII, Line 4b See general explanations on Schedule O Form 990 Part 1 line 19. X X X X 0 0 0 Nathan Brown General Manager 261680 0 0 0 3935 0 48380 0 24629 0 338624 0 0 0 Derrick Brummett Chief Financial Officer 180190 0 14686 0 4818 0 40372 0 38961 0 279027 0 0 0 David Burris Fuels Manager 166166 0 14504 0 710 0 29838 0 9125 0 220343 0 0 0 Mark Gawlik Maintenance Supervisor 114617 0 2141 0 44487 0 0 0 28830 0 190075 0 0 0 Steven Holland Mechanical Supervisor 119133 0 2123 0 38866 0 0 0 28799 0 188921 0 0 0 Oscar Pena Control Room Operator A 123016 0 2250 0 31486 0 0 0 30057 0 186809 0 0 0 Eric Halfmann Engineering Manager 153410 0 2522 0 357 0 16464 0 32101 0 204854 0 0 0 Kevin Vyvlecka Mechanical Leadman 108625 0 2044 0 31801 0 0 0 27507 0 169977 0 0 0 A Atascosa County Industrial Development Corp 870810599 046578AC4 2020-06-18 62540000 To redeem 2008 Series Pollution Control Bonds 0 0 0 A 2420000 60120000 0 0 0 0 0 0 0 0 0 0 1982 1 0 1 1 A 0 0 0 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 1 A 1 Schedule K, Part II, Line 1-06/18/2020 62,540,000 Atascosa County Industrial Development Corp Atascosa County Industrial Development - San Miguel Electric Cooperative, Inc. reported proceed amounts based on activity during the 12 month period. Schedule K, Part IV, Line 2c-06/18/2020 62,540,000 Atascosa County Industrial Development Corp Atascosa County Industrial Development - Rebate calculation was updated June 18, 2020. Form 990, Part I, Line 19 For the 2011 tax reporting year, the IRS made a significant change to the 990 instructions, whereby entities exempt under 501(c)(12) of the Internal Revenue Code are to report patronage dividend paid to their members on Part IX, Line 4. San Miguel being duly organized in the State of Texas and exempt under 501(c)(12) of the Internal Revenue Code operates on a cooperative, non-profit basis for the mutual benefit of its patrons. As such, all revenues or margins received in excess of operating costs are retained as equity and allocated as a credit to each patron's capital account. Should the Board of Directors determine that the financial condition of the Cooperative will not be impaired, and there are not requirements which restrict such distribution, the Board of Directors may choose to retire credits reflected in member accounts in part or in full. Retirements of capital credits are restricted under San Miguel's current mortgage indenture until certain thresholds are met. San Miguel interprets the definition of "paid" to mean paid in money, property, or qualified written allocations; therefore, San Miguel is reporting as allocated, for the 2011 and all subsequent tax reporting years, all excess margins as paid to its patrons on an annual basis in accordance with the above referenced interpretations of the IRS instructions. Form 990, Part VI, Section A, Line 1b The decisions of the San Miguel Board of Directors are reported directly to the governing boards of the 10 member cooperatives. Certain contracts, i.e. wholesale power contracts are subject to the approval by the members of the 10 cooperatives. Form 990, Part VI, Section A, Line 6 San Miguel Electric Cooperative, Inc (San Miguel) is a not-for-profit cooperative corporation organized for the purpose of generating electric power. San Miguel sells power pursuant to a wholesale power contract with South Texas Electric Cooperative, Inc (South Texas), which is a generation of transmission cooperative. South Texas in turn, sells power at wholesale to their 9 member cooperatives, all of which are distribution cooperatives providing retail service to their member-customers. Form 990, Part VI, Section A, Line 7a San Miguel is governed by a board of 19 directors, each of whom is selected by and represents one of the 10 member cooperatives. The directors are elected annually at the San Miguel Annual Meeting. Form 990, Part VI, Section A, Line 7b The decisions of the San Miguel Board of Directors are reported directly to the governing boards for the member cooperatives. Certain contracts, i.e. wholesale power contracts are subject to the approval by the members of the cooperatives. Form 990, Part VI, Section B, Line 11b A copy of the draft IRS Form 990 was provided to each of the current board members for the July 2022 meeting. Company personnel reviewed the form 990 at the Finance and Audit Committee meeting on July 21, 2022 with the full board present. Board members were given an opportunity to ask any questions prior to the filing of the return. Form 990, Part VI, Section B, Line 12c The San Miguel Board of Directors approved a Conflict of Interest Policy on December 10,2008. The policy requires each "member of the Board of Directors, the General Manager, General Counsel, and all Department Managers to file with the President of the Board of Directors, a Disclosure Report within (30) days after attaining such a position or status and then annually thereafter". The policy further specifies that "The President of the Board of Directors shall report no later than the regular March monthly Board meeting each year that he or she has received disclosure reports from all reporting persons signed and dated by February 15th of the current year". The disclosure report includes questions regarding each person's personal and business relationships and any potential claims against San Miguel. In accordance with policy requirements, the above mentioned parties are asked to complete and sign both the disclosure report and/or the conflict of interest report on an annual basis. The Conflict of Interest Policy is reviewed by the Board of Directors annually. Form 990, Part VI, Section B, Line 15 On April 22, 2016, San Miguel entered into a Management Service Agreement with South Texas Electric Cooperative (STEC). This agreement provides for Michael Kezar (a STEC employee) to serve as General Manager for San Miguel. This agreement, which became effective June 1, 2016 was in effect through May of 2021. The agreement was not renewed due to the addition of a new General Manager beginning June 2021. The agreement was amended subsequently September 1, 2020 to provide for a fee of $23,558.74 per month. The salaries of all officers are based on a national survey for similar positions in the utility industry and recommended by an independent management consulting agency. Form 990, Part VI, Section C, Line 19 As San Miguel has outstanding loan funds guaranteed by the Rural Utilities Service, the financial statements are a matter of public record, and are provided to individuals upon request. We do not typically make San Miguel's governing documents or conflict of interest policy available to the public. Form 990, Part VII, Section A, Line 1a See general explanation on Schedule O for Form 990, Part VI, Section B, Line 15. Form 990, Part VIII, Line 11a 11b 11c The San Miguel Board of Directors approved deferred revenue plans in accordance with GAAP for Ash Pond Cleanout and Plant Decommissioning obligations. For 2021, the amount deferred and set aside for future Ash Pod Cleaning Activities was $310,342. An additional $904,472 was deferred for Plant Decommissioning. Amounts recognized in 2021 for Ash Pond Cleanout activities were $0. The net balance of deferred revenue for Ash Pond Cleanout available for future cleaning activities is $1,438,955. The total amount of deferred revenue for Plant Decommissioning is $5,431,788. Overall the total of deferred revenue is $6,870,743. Form 990, Part IX, Line 4 See general explanation on Schedule O of Form 990, Part I, Line 19. Form 990, Part XI, Line 9 As part of the Brazos Transaction, funds were received in advance for Brazos' portion of debt obligations. During 2021, $1,048,955 of the original debt obligations was amortized. As referenced on Schedule O, Part 1, Line 19, San Miguel's margins received in excess of operating costs are retained as equity and allocated as a credit to each patron's capital account. The amount of margins retained for 2021 was $460,000. The net margins and prepaid debt netted to ($588,910). Form 990, Part XII, Line 2c Yes, the organization does have a committee that assumes responsibility for oversight of the audit, but no changes in its oversight process or selection has occurred during 2021.