2022-11-15T14:43:23-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 750569260 SOUTH PLAINS ELECTRIC COOPERATIVE INC SOUT 8067757732 PO BOX 1830 LUBBOCK TX 79408 DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 8067757732 2022-11-15 1 DALE ANCELL 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-15 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z DALE ANCELL PO BOX 1830 LUBBOCK TX 79408 162665802 0 X WWW.SPEC.COOP X 1943 TX TO PROVIDE ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS. 12 11 196 0 79144 81347 0 0 149122263 161312126 -621640 -2077064 505709 487749 149006332 159722811 151551 175107 19391007 4714250 12461354 13500387 0 0 0 117121968 143222429 149125880 161612173 -119548 -1889362 427369484 469943205 226660499 269171807 200708985 200771398 TO BE THE PREFERRED ELECTRIC UTILITY PROVIDER IN THE SERVICE AREA, OFFERING APPROPRIATE, VALUE-BASED SERVICES DESIRED BY THE MEMBERSHIP. 0 0 SALES OF ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 66,578 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 70 0 196 1 1 1 0 0 0 0 170435245 2146145 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 SCOTT MARTIN SECRETARY/TREASURER 9.70 X X 34267 0 0 BENNY NIXON DIRECTOR 7.20 X 22400 0 0 RYNN TRUETT ASSISTANT SECRETARY/TREASURER 9.30 X X 22826 0 0 DAVID GOSSETT DIRECTOR 8.10 X 21880 0 0 BOBBY RICHEY PRESIDENT 15.40 X X 26018 0 0 RD MCCALLISTER DIRECTOR 8.30 X 25281 0 0 DANNY STANTON VICE PRESIDENT 11.10 X X 23286 0 0 GLEN JONES DIRECTOR 10.40 X 31015 0 0 LARRY BROWNING DIRECTOR 8.80 X 24512 0 0 LLOYD ARTHUR DIRECTOR 8.80 X 35368 0 0 JOE MCFERRIN DIRECTOR 9.10 X 23295 0 0 BRENT WHITAKER DIRECTOR 8.40 X 29681 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 42.00 X 312995 0 143173 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 43.00 X 272991 0 263473 SHANE ADAMS CHIEF FINANCIAL OFFICER 44.00 X 189309 0 100952 STEVEN LATHAM DIRECTOR OF INFORMATION TECHNOLOGY 42.00 X 167544 0 85876 JEREMY HERRING MANAGER OF OPERATION SYSTEMS 40.00 X 164332 0 87961 RANDY MCGEE MANAGER OF MEMBER SERVICES 40.00 X 166638 0 78934 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 40.00 X 177732 0 103993 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCES 40.00 X 188615 0 94313 ROBERT FORBIS FORMER DIRECTOR 0.00 X 13001 0 0 1972986 0 958675 42 1 1 0 SIEGEL CONSTRUCTION INC PO BOX 1026 SHALLOWATER TX 79363 CONSTRUCTION CONTRACTOR 4885011 PRIMARY UTILITY SERVICES LLC PO BOX 1393 SNYDER TX 79550 CONSTRUCTION CONTRACTOR 4549610 ECHO POWERLINE INC 313 WALNUT ST BUNKIE LA 71322 CONSTRUCTION CONTRACTOR 889482 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER N SUITE 500 ATLANTA GA 30338 SOFTWARE & TECHNOLOGY 606299 SEDC 100 ASHFORD CENTER N SUITE 500 ATLANTA GA 30338 SOFTWARE & TECHNOLOGY 552175 14 X SALES OF ELECTRICITY 221000 159617788 159617788 PATRONAGE DIVIDENDS 221000 1694338 1694338 161312126 387268 387268 161301 170691 90731 134999 70570 35692 106262 16101 71060 19101 2464332 -2464332 -2464332 -2464332 505642 252929 252713 244629 8084 POLE ATTACHMENT INCOME 221000 128774 128774 128774 159722811 159108524 79144 535143 X 175107 4714250 1602722 8344895 1103694 1805043 644033 6942940 9728273 PURCHASED POWER 115861554 DISTRIBUTION EXPENSE 5361410 ADMIN & GENERAL EXPENSE 2378871 UNRELATED BUS. INC. TAX 17600 2931781 161612173 10408556 13366409 16629564 19508899 4465431 4378995 14976 22145 1189596 2916779 387144167 102824330 261903877 284319837 125503001 126168439 7254483 19261702 427369484 469943205 14019810 13493038 171577 229860 189315060 240867142 23154052 14581767 226660499 269171807 X 0 0 0 0 200708985 200771398 200708985 200771398 427369484 469943205 X -1889362 1951775 X X 0 1 X 1 0 0 1 X 1827188 1827188 11767570 4559215 7208355 349113960 98265115 250848845 24435449 24435449 284319837 CAPITAL TERM CERTIFICATES - CFC 3395171 C PATRONAGE CAPITAL - CFC 4853089 C PATRONAGE CAPITAL - TEC 2573315 C PATRONAGE CAPITAL - GSEC 84994248 C PATRONAGE CAPITAL - BRAZOS 25123997 C OTHER INVESTMENTS IN ASSOCIATED ORGS 807738 C INVESTMENT IN AFFILIATED COMPANY 2420881 C MEMBER CAPITAL TERM CERTIFICATES - CFC 2000000 C 126168439 CONSUMER DEPOSITS 641863 ACCRUED OPERATING TAXES 1882645 ACCUMULATED PROVISION FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 8338395 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL 3165964 DEFERRED CREDITS - OTHER 552900 14581767 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) 6642 0 ANNUAL SUPPORT LUBBOCK AREA UNITED WAY 1655 MAIN STREET NO 101 LUBBOCK TX 79401 750961812 501(C)(3) 13725 0 ANNUAL SUPPORT 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 0 0 X X 0 0 0 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 233796 0 3000 0 36195 0 239014 0 24459 0 536464 0 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 262419 0 4800 0 45776 0 129148 0 14025 0 456168 0 0 0 SHANE ADAMS CHIEF FINANCIAL OFFICER 163725 0 3912 0 21672 0 68991 0 31961 0 290261 0 0 0 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCES 169487 0 4200 0 14928 0 73690 0 20623 0 282928 0 0 0 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 157560 0 3948 0 16224 0 78533 0 25460 0 281725 0 0 0 STEVEN LATHAM DIRECTOR OF INFORMATION TECHNOLOGY 144720 0 3921 0 18903 0 53993 0 31883 0 253420 0 0 0 JEREMY HERRING MANAGER OF OPERATION SYSTEMS 150462 0 0 0 13870 0 56078 0 31883 0 252293 0 0 0 RANDY MCGEE MANAGER OF MEMBER SERVICES 134670 0 1800 0 30168 0 64405 0 14529 0 245572 0 0 0 ROBERT FORBIS FORMER DIRECTOR 13001 0 0 0 0 0 0 0 0 0 13001 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, 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. RANDAL BAILEY: TOTAL REPORTED IN COLUMN C $ 239,014 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (239,014) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 99,293 EXPENSE TO THE COOPERATIVE $ 99,293 DALE ANCELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 121,162 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,986 TOTAL REPORTED IN COLUMN C $ 129,148 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (121,162) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,239 EXPENSE TO THE COOPERATIVE $ 50,225 SHANE ADAMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 63,790 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,201 TOTAL REPORTED IN COLUMN C $ 68,991 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (63,790) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,279 EXPENSE TO THE COOPERATIVE $ 32,480 TAHNEE TRUITT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 68,412 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,278 TOTAL REPORTED IN COLUMN C $ 73,690 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (68,412) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,306 EXPENSE TO THE COOPERATIVE $ 33,584 LYNN SIMMONS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 73,568 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,965 TOTAL REPORTED IN COLUMN C $ 78,533 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (73,568) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,625 EXPENSE TO THE COOPERATIVE $ 31,590 STEVEN LATHAM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,371 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,622 TOTAL REPORTED IN COLUMN C $ 53,993 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,371) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,243 EXPENSE TO THE COOPERATIVE $ 28,865 JEREMY HERRING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,320 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,758 TOTAL REPORTED IN COLUMN C $ 56,078 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,320) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,452 EXPENSE TO THE COOPERATIVE $ 30,210 RANDY MCGEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,236 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,169 TOTAL REPORTED IN COLUMN C $ 64,405 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,236) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,360 EXPENSE TO THE COOPERATIVE $ 26,529 JUSTIN ADAMS FAMILY RELATIONSHIP - OFFICER (S. ADAMS) 14326 PART TIME EMPLOYMENT 0 TUCKER OIL COMPANY INC FAMILY RELATIONSHIP - DIRECTOR (GOSSETT) 286146 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 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 $ 9,947,617 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (319,829) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (507,598) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 94,695 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,958,520 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 650,040 TOTAL WAGES ACCRUED AND/OR PAID $14,823,445 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 2,364,252 CUSTOMER SERVICE & INFORMATION 90,097 OTHER DEDUCTIONS 104,743 SALES EXPENSE 369,118 OTHER TAXES 3,571 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 2,931,781 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 IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 4,244,566 OFFICE SUPPLIES 457,429 RENT 450,120 OUTSIDE SERVICES 562,154 DUPLICATE CHARGES (CREDIT) (1,686) DUES TO ASSOCIATED ORGANIZATIONS 89,257 ANNUAL MEETING 103,235 DIRECTORS 409,811 MISCELLANEOUS GENERAL 29,601 MAINTENANCE OF GENERAL PLANT 1,574,915 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 7,919,402 LESS: RECLASS OF EXPENSES TO PART VIII (107,956) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (319,829) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,537,726) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,575,020) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,378,871 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED 4,714,250. PATRONAGE CAPITAL RETIRED -3,096,774. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEFITS 125,433. EQUITY METHOD LOSS FROM SUBSIDIARY 208,866. 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 968524 6944382 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 CASH SOUTH PLAINS DEVELOPMENT CORPORATION S 86436 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 145618 INTEREST PAID ON NOTE