2022-11-15T07:35:08-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 850092965 CENTRAL NEW MEXICO ELECTRIC COOPERATIVE INC CENT 5058324483 PO BOX 157 MOUNTAINAIR NM 87036 ALENA BRANDENBERGER CEO 5058324483 2022-11-04 1 ALENA BRANDENBERGER 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-04 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z ALENA BRANDENBERGER PO BOX 157 MOUNTAINAIR NM 87036 38249374 0 X WWW.CNMEC.ORG X 1945 NM TO PROVIDE HIGH QUALITY ELECTRIC SERVICES TO ITS MEMBERS ON A COOPERATIVE BASIS. 8 8 73 0 74995 0 0 0 36531988 36380369 286602 425659 179993 1163115 36998583 37969143 30822 22694 2758105 4068275 5010180 5009799 0 0 0 29145185 28949291 36944292 38050059 54291 -80916 105115924 106523991 56837325 54529841 48278599 51994150 CENTRAL NEW MEXICO ELECTRIC IS A NOT FOR PROFIT, MEMBER OWNED UTILITY, DELIVERING SAFE AND RELIABLE ENERGY TO THE COMMUNITIES WE SERVE. THROUGH THE SEVEN COOPERATIVE PRINCIPLES, WE PROVIDE HIGH QUALITY SERVICES TO OUR MEMBERS THROUGH EDUCATION AND COMMUNITY INVOLVEMENT. 0 0 SALE OF ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 18,464 METERS/SERVICES AT YEAR END. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 49 0 73 1 1 1 0 0 0 0 36600584 754157 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 JOSH GORMAN CFO 5058324483 301 N SUMMIT MOUNTAINAIR NM 87036 X PHILLIP WALLIN ASSISTANT SECRETARY 2.10 1.00 X X 13715 0 0 WAYNE CONNELL VICE PRESIDENT 3.30 1.00 X X 13430 0 0 DUANE FROST PRESIDENT 3.90 1.00 X X 12615 0 0 SANTOS TAPIA TRUSTEE 3.30 1.00 X 12424 0 0 JOSEPH VICENTE TREASURER 2.60 1.00 X X 12222 0 0 MIKE VALDEZ TRUSTEE 2.40 1.00 X 11715 0 0 LISA GARDNER TRUSTEE 3.90 1.00 X 11555 0 0 BILL KING SECRETARY 3.70 1.00 X X 11362 0 0 ALENA BRANDENBERGER CEO 50.00 X 151448 0 64388 JOSHUA GORMAN CFO 40.00 X 88957 0 7699 TERRY BULTRAM INTERIM CEO 50.00 X 8757 0 0 CRAIG SIZEMORE LINE FOREMAN 40.00 X 125591 0 54430 PATRICK SANCHEZ LINE FOREMAN 40.00 X 116399 0 46124 JEREMIAH KECK LINE FOREMAN 40.00 X 117880 0 36939 FRED MARTIN LINE FOREMAN 40.00 X 112317 0 28886 ERNESTO ACOSTA JOURNEYMAN LINEMAN 40.00 X 111430 0 15118 931817 0 253584 9 0 1 0 R&R LINE SERVICES INC 6022 QUAY ROAD U SAN JON NM 88434 CONTRACTOR - DISTRIBUTION LINES 563697 NISC PO BOX 1147 MANDAN ND 58554 SOFTWARE SERVICES 314682 RODEY DICKASON SLOAN AKIN & ROBB PA 201 3RD STREET NW ALBUQUERQUE NM 87102 LEGAL SERVICES 113222 3 X SALES OF ELECTRICITY 221000 35695307 35695307 PATRONAGE DIVIDENDS 221000 669169 669169 TRANSMISSION LEASE 221000 15893 15893 36380369 147633 147633 37258 7529 29729 29729 29729 520480 242454 278026 278026 278026 21488 30248 -8760 -8760 PPP LOAN FORGIVENESS INCOME 221000 972582 972582 POLE ATTACHMENT INCOME 221000 87257 87257 DISPATCHING INCOME 561499 74995 74995 7312 7312 1142146 37969143 36686676 74995 1207472 X 22694 4068275 420287 3384753 418893 531941 253925 2162287 3647064 PURCHASED POWER 19219839 DISTRIBUTION EXPENSE 1657793 ADMIN & GENERAL EXPENSE 1324252 CONSUMER EXPENSE 654929 283127 38050059 5184676 9953276 50 2500066 2429230 2039803 95000 191000 2357903 2423883 2636770 2245044 116021598 47443875 74169797 68577723 16326517 16952976 1915981 1640220 105115924 106523991 2834122 2838648 52893634 50018415 1109569 1672778 56837325 54529841 X 0 0 0 0 48278599 51994150 48278599 51994150 105115924 106523991 X -80916 3796467 X X 0 1 X 0 0 382566 382566 5777427 2635092 3142335 109678865 44808783 64870082 182740 182740 68577723 CAPITAL TERM CERTIFICATES 171019 C MEMBERSHIPS FEES 2115 C PATRONAGE CAPITAL - TSG&T 14593344 C PATRONAGE CAPITAL - CFC 610286 C PATRONAGE CAPITAL - FEDERATED 318931 C PATRONAGE CAPITAL - ENMR 83159 C PATRONAGE CAPITAL - NISC 138485 C PATRONAGE CAPITAL - WUESC 282456 C PATRONAGE CAPITAL - TOUCHSTONE ENERGY 195 C OTHER PATRONAGE CAPITAL - COBANK 150 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 752836 C 16952976 CONSUMER DEPOSITS 258830 DEFERRED CREDITS - UNCLAIMED PROPERTY 469797 ACCRUED OPERATING TAXES 238699 DEFERRED CREDITS - DEBT SERVICE 3420 DEFERRED CREDITS - POWER COST ADJUSTMENT 666088 DEFERRED POLE ATTACHMENT REVENUE 35944 1672778 X 37837960 0 37837960 131183 131183 37969143 33850601 0 33850601 4199458 4199458 38050059 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 THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, OR OTHER STATE TAXING AUTHORITIES AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: NONOPERATING EXPENSE RECLASSIFIED TO FORM 990 PART IX 131,183. PART XII, LINE 4B - OTHER ADJUSTMENTS: NONOPERATING EXPENSE RECLASSIFIED TO FORM 990 PART IX 131,183. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,068,275. 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: PATRONAGE CAPITAL ASSIGNABLE - 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 DIVIDENDS 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 SANTA FE COUNTY FAIR 3229 RODEO ROAD SANTA FE NM 87507 856000401 6491 0 LIVESTOCK SHOW AWARDS CONTRIBUTION LINCOLN COUNTY FAIR PO BOX 651 CARRIZOZO NM 88301 850446839 7041 0 LIVESTOCK SHOW AWARDS CONTRIBUTION 2 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 ALENA BRANDENBERGER CEO 145083 0 1000 0 5365 0 39738 0 24650 0 215836 0 0 0 CRAIG SIZEMORE LINE FOREMAN 123991 0 575 0 1025 0 33393 0 21037 0 180021 0 0 0 PATRICK SANCHEZ LINE FOREMAN 114658 0 581 0 1160 0 25440 0 20684 0 162523 0 0 0 JEREMIAH KECK LINE FOREMAN 116213 0 537 0 1130 0 14545 0 22394 0 154819 0 0 0 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 LOSS OF $80,916, 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 12/31/21 $ 1,639,152 LESS: UNBILLED REVENUE 12/31/20 (1,720,068) (A) - DECREASE EQUALS AMOUNT ON PART I, LINE 19 $ (80,916) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 4,068,275 TOTAL 2021 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 3,987,359 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 TRUSTEES. 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. 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 THE FILING OF THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE COOPERATIVE REQUIRES EACH BOARD MEMBER TO REVIEW THE CONFLICT OF INTEREST POLICY EVERY TWO YEARS AND SIGN OFF THAT THEY HAVE REVIEWED AND UNDERSTAND THE RESPECTIVE POLICY. ADDITIONALLY, EVERY TWO YEARS THE BOARD CONDUCTS A POLICY REVIEW TO DETERMINE IF CHANGES TO THE POLICY SHOULD BE MADE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN NEW MEXICO AND THE NATION. THE BOARD ALSO TAKES INTO CONSIDERATION PREVIOUSLY ESTABLISHED FINANCIAL GOALS ESTABLISHED FOR THE PRIOR YEAR. THE CEO USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEW MEXICO 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. THE COOPERATIVE PROVIDES ANNUALLY A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S 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, WITH YEARS OF SERVICE TAKEN INTO CONSIDERATION. EMPLOYER CONTRIBUTIONS TO THE PLAN 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 THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PREMIUMS 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 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 ORGANIZATION TO ITS MEMBERS. FORM 990, PAGE 9, PART VIII, LINE 11A: THE CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES ACT) ESTABLISHED THE PAYCHECK PROTECTION PROGRAM (PPP) TO PROVIDE LOANS TO SMALL BUSINESSES AS A DIRECT INCENTIVE TO KEEP THEIR WORKERS ON THE PAYROLL. THE LOANS ARE FORGIVEN IF ALL EMPLOYEE RETENTION CRITERIA ARE MET AND THE FUNDS ARE USED FOR ELIGIBLE EXPENSES. DURING THE YEAR, THE COOPERATIVE APPLIED FOR AND RECEIVED A LOAN OF $972,582. AFTER FULFILLING THE REQUIREMENTS OF THE PROGRAM, THE COOPERATIVE RECORDED THE ANTICIPATED LOAN FORGIVENESS AS INCOME, BECAUSE THE NATURE OF THE PROGRAM IS COMPRISED OF A BONA FIDE LOAN FOLLOWED BY LOAN FORGIVENESS. ALTHOUGH THE INSTRUCTIONS TO FORM 990 STATE THAT THE AMOUNT OF PPP LOANS THAT ARE FORGIVEN MAY BE REPORTED ON LINE 1E AS CONTRIBUTIONS FROM A GOVERNMENTAL UNIT, THE COOPERATIVE HAS CHOSEN TO REPORT THE PPP LOAN FORGIVENESS AS OTHER INCOME ON LINE 11A. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE 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 THE 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 $ 3,805,040 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (99,038) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (72,087) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 90,712 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 811,113 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSES INDIRECTLY THROUGH CLEARING OR OTHER ACCOUNTS 355,540 TOTAL WAGES ACCRUED AND/OR PAID $ 4,891,280 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,112,907 OFFICE SUPPLIES 423,497 OUTSIDE SERVICES 191,685 INJURIES AND DAMAGES 203,632 EMPLOYEE AWARDS AND OTHER 12,555 REGULATORY COMMISSION 180,999 DIRECTORS 163,747 MISCELLANEOUS GENERAL 62,050 MAINTENANCE OF GENERAL PLANT 115,734 DUES AND SUBSCRIPTIONS 156,971 ANNUAL MEETING 16,915 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,640,692 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (99,038) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (904,690) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (312,711) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,324,253 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: AMORTIZATION $ 126,311 DISPATCH CENTER 131,183 TRANSMISSION 25,633 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 283,127 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,068,275. PATRONAGE CAPITAL RETIRED -240,749. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS -31,059. FORM 990, PART XII LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. CENTRAL NEW MEXICO ELECTRIC EDUCATION FOUNDATION PO BOX 669 MOUNTAINAIR NM 87035 850366030 TO PROVIDE COLLEGE SCHOLARSHIPS TO MEMBERS OF THE COOPERATIVE NM 501(C)(3) PF CENTRAL NEW MEXICO ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 CENTRAL NEW MEXICO ELECTRIC EDUCATION FOUNDATION N N/A - LESS THAN $50,000 CENTRAL NEW MEXICO ELECTRIC EDUCATION FOUNDATION O N/A - LESS THAN $50,000