2022-11-15T23:13:09-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 880089964 VALLEY ELECTRIC ASSOCIATION INC VALL 7757275312 PO BOX 237 PAHRUMP NV 89041 STEVE MORRISON CFO 7757275312 2022-11-15 1 STEVE MORRISON 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-15 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z PO BOX 237 PAHRUMP NV 89041 92100865 0 X WWW.VEA.COOP X 1965 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC AND INTERNET SERVICE TO MEMBERS OF THE COOPERATIVE. 6 6 152 0 966446 0 0 0 87508132 91739173 50249 21027 232786 314498 87791167 92074698 31757 43425 4895941 0 23330362 18440651 0 0 0 62047777 86807616 90305837 105291692 -2514670 -13216994 336046613 316968401 254408854 248432848 81637759 68535553 IMPROVING THE LIVES OF THE PEOPLE AND COMMUNITIES WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 24,124 ACTIVE SERVICES AT YEAR END. PRIOR TO THE MEMBERSHIP APPROVED BYLAW AMENDMENTS IN 2018, THE COOPERATIVE PROVIDED INTERNET/BROADBAND SERVICES TO ALL SUBSCRIBERS ON A NON-PATRONAGE AND UNRELATED BUSINESS INCOME BASIS. ONE OF THE MEMBERSHIP APPROVED BYLAW AMENDMENTS IS TO PROVIDE INTERNET/BROADBAND SERVICES TO MEMBERS ON A PATRONAGE, NONPROFIT BASIS. THEREFORE, THE COOPERATIVE HAS EXPANDED ITS EXEMPT PURPOSES TO INCLUDE THE PROVISION OF INTERNET/BROADBAND SERVICES TO MEMBERS ON A PATRONAGE BASIS. SUCH SERVICES CONTINUE TO BE PROVIDED TO NON-MEMBERS ON A NON-PATRONAGE BASIS. THERE WERE 11,274 ACTIVE SERVICES AT YEAR END. SOLPOWER AND SOLPOWER CAPITAL (SOLPOWER) ARE WHOLLY SUBSIDIARIES OF VEA; SOLPOWER WAS FORMED IN 2020 TO PROVIDE SOLAR POWER SERVICES TO MEMBERS OF VEA. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 35 0 152 1 1 1 0 0 0 0 84934614 5934718 0 0 0 X 6 6 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 0 1 1 1 0 X STEVE MORRISON CFO 7757275312 800 E HWY 372 PAHRUMP NV 89048 X MICHELLE CAIRD SECRETARY 10.80 1.00 X X 20100 0 0 BONNIE GROENERT DIRECTOR 12.00 1.00 X 21100 0 0 KATHY KEYES PRESIDENT 14.70 1.00 X X 20200 0 0 TERRIE D'ANTONIO DIRECTOR 12.10 1.00 X 20700 0 0 PAUL HEALEY TREASURER 8.10 X X 19600 0 0 FRANK JARVIS DIRECTOR (SEP-DEC) 6.60 X 7450 0 0 ROB SHIRLEY DIRECTOR (JAN-MAY) 10.60 1.00 X 6600 0 0 MARK STALLONS CEO 40.00 X 350708 0 136528 STEVE MORRISON CFO 40.00 1.00 X 283717 0 144240 BART THURGOOD EVP HUMAN RESOURCES 40.00 X 385611 0 9661 NATHAN JOHNSON EVP BROADBAND 40.00 X 339832 0 19601 JAMES ANDRESEN DIRECTOR OF ENGINEERING & OPERATIONS 40.00 X 206179 0 18679 CHRISTOPHER TOMCHUK DIRECTOR OF TRANS ENERGY SERVICES 40.00 X 236865 0 122591 MINDY MORROW DIRECTOR OF ADMIN & ACCOUNTING 40.00 X 250069 0 18679 JOE FIELDSTED MGR OF SAFETY/HEALTH/ENVIR/EFFIC 40.00 X 178480 0 95688 JAMES CAPLE DIRECTOR OF SUPPORT SERVIC 40.00 X 214399 0 13043 CLIFFORD BROOKS MANAGER OF SOLPOWER 40.00 X 161906 0 47321 LOGAN GERNET VP OF ENGINEERING 40.00 X 209776 0 60682 KATHLEEN MATTOCKS ORG DEVELOP/SPECIAL PROJECTS COORD. 30.00 X 185828 0 1841 ERIK STUHAAN AREA FOREMAN 40.00 X 178951 0 72621 CAROLE CUSIMANO PROCUREMENT/INV CONTROL SUPERINT. 40.00 X 176397 0 18679 BENJAMIN VELOZ JOURNEYMAN LINEMAN 40.00 X 170614 0 116685 DANIEL ROGERS AREA FOREMAN 40.00 X 174718 0 24724 3819800 0 921263 85 0 1 0 NATIONAL INFORMATION SOLUTIONS COOPERATI PO BOX 1147 MANDAN ND 58554 SOFTWARE PROVIDER 435991 HDR PO BOX 74008203 CHICAGO IL 60674 ENGINEERING CONSULTANT 324063 DAVISON VAN CLEVE PC 1750 SW HARBOR WAY 450 PORTLAND OR 97201 LEGAL SERVICES 322987 ST MORITZ SECURITY PO BOX 5017 GREENSBURG PA 15601 SECURITY SERVICES 306172 LAYTON TREE SERVICE LLC 2601 GOLDEN STAR PAHRUMP NV 89060 TREE TRIMMERS 299385 10 X SALES OF ELECTRICITY 221000 72106587 72106587 BROADBAND REVENUE 517000 9955097 8989191 965906 WHEELING & TRANSMISSION REVENUE 221000 8457040 8457040 PATRONAGE DIVIDENDS 221000 1104392 1104392 SERVICE FEES 221000 116057 116057 91739173 21874 21874 96614 0 96614 96614 96614 847 -847 -847 -847 6091 25320 -19229 -19769 540 POLE ATTACHMENT INCOME 221000 237113 237113 237113 92074698 90752651 966446 355601 X 30925 12500 3620005 7412038 3206914 3429586 772108 8308272 12788063 PURCHASED POWER 32496935 DISTRIBUTION EXPENSE 11952047 ADMINISTRATIVE & GENERA 10069694 TRANSMISSION EXPENSE 9860825 1331780 105291692 11231035 6842076 5031270 3228876 913869 1373873 4443488 5359891 60651345 53710562 353946122 118788179 242461618 235157943 7811147 8278722 3502841 3016458 336046613 316968401 17136357 13388746 232142250 225652767 5130247 9391335 254408854 248432848 X 184440 168290 0 0 81453319 68367263 81637759 68535553 336046613 316968401 X -13216994 114788 X X 0 1 X 0 0 7384262 7384262 25686612 7607381 18079231 316166469 111180798 204985671 4708779 4708779 235157943 CONSUMER DEPOSITS 833737 ACCUMULATED PROVISION FOR POST-RETIREMENT HEALTH BENEFITS 4797864 DEFERRED CREDITS 3710113 OTHER LIABILITIES 49621 9391335 X 92074698 0 92074698 0 92074698 105291692 0 105291692 0 105291692 PART X, LINE 2: THE ASSOCIATION FOLLOWS THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE ASSOCIATION IS ITS FILING STATUS AS A TAX EXEMPT COOPERATIVE IN THE YEARS IT QUALIFIES FOR EXEMPTION. IN THE YEARS IT DOES NOT QUALIFY FOR EXEMPTION, THE PRIMARY TAX POSITION OF THE ASSOCIATION IS THE EXCLUSION FROM TAXABLE INCOME FOR THE AMOUNT OF PATRONAGE CAPITAL ALLOCATED TO THE PATRONS. THE ASSOCIATION HAS DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH FEDERAL TAXING AUTHORITIES. PART VIII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART VIII HAS BEEN LEFT BLANK. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT 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. 1 SECONDARY EDUCATION SCHOLARSHIPS FOR COOPERATIVE MEMBERS AND/OR THEIR DEPENDENTS 11 12500 PART I, LINE 2: CONTINUING EDUCATION SCHOLARSHIPS WILL BE AWARDED ANNUALLY TO ASSIST QUALIFIED INDIVIDUALS IN FURTHERING THEIR EDUCATION. TO BE ELIGIBLE A CANDIDATE OR CANDIDATE'S PARENTS OR LEGAL GUARDIAN MUST BE AN ACTIVE MEMBER OF VALLEY ELECTRIC ASSOCIATION. APPLICANT MUST ENROLL OR BE ENROLLED AT AN ACCREDITED EDUCATIONAL OR TRAINING INSTITUTION. SCHOLARSHIPS WILL BE AWARDED BY THE VOLUNTEER SCHOLARSHIP COMMITTEE AND WILL BE BASED ON GRADE POINT AVERAGE, SCHOOL/COMMUNITY INVOLVEMENT, SUBMITTED 500 WORD ESSAY AND OTHER MISCELLANEOUS CRITERIA. FOR MORE INFORMATION REGARDING THE SCHOLARSHIPS VISIT WWW.VEA.COOP. PART III: 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. 1 X X X 0 0 0 MARK STALLONS CEO 318738 0 25000 0 6970 0 113576 0 22952 0 487236 0 0 0 STEVE MORRISON CFO 256471 0 0 0 27246 0 115406 0 28834 0 427957 0 0 0 BART THURGOOD EVP HUMAN RESOURCES 263645 0 0 0 121966 0 2500 0 7161 0 395272 0 0 0 CHRISTOPHER TOMCHUK DIRECTOR OF TRANS ENERGY SERVICES 185385 0 45360 0 6120 0 88605 0 33986 0 359456 0 0 0 NATHAN JOHNSON EVP BROADBAND 240929 0 0 0 98903 0 2500 0 17101 0 359433 0 0 0 BENJAMIN VELOZ JOURNEYMAN LINEMAN 164505 0 0 0 6109 0 89916 0 26769 0 287299 0 0 0 JOE FIELDSTED MGR OF SAFETY/HEALTH/ENVIR/EFFIC 156936 0 4708 0 16836 0 62352 0 33336 0 274168 0 0 0 LOGAN GERNET VP OF ENGINEERING 199124 0 10000 0 652 0 33391 0 27291 0 270458 0 0 0 MINDY MORROW DIRECTOR OF ADMIN & ACCOUNTING 175861 0 0 0 74208 0 2500 0 16179 0 268748 0 0 0 ERIK STUHAAN AREA FOREMAN 174360 0 0 0 4591 0 39285 0 33336 0 251572 0 0 0 JAMES CAPLE DIRECTOR OF SUPPORT SERVIC 151739 0 0 0 62660 0 2500 0 10543 0 227442 0 0 0 JAMES ANDRESEN DIRECTOR OF ENGINEERING & OPERATIONS 183013 0 0 0 23166 0 2500 0 16179 0 224858 0 0 0 CLIFFORD BROOKS MANAGER OF SOLPOWER 161108 0 0 0 798 0 24981 0 22340 0 209227 0 0 0 DANIEL ROGERS AREA FOREMAN 126775 0 0 0 47943 0 2500 0 22224 0 199442 0 0 0 CAROLE CUSIMANO PROCUREMENT/INV CONTROL SUPERINT. 127322 0 0 0 49075 0 2500 0 16179 0 195076 0 0 0 KATHLEEN MATTOCKS ORG DEVELOP/SPECIAL PROJECTS COORD. 110342 0 0 0 75486 0 1300 0 541 0 187669 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. MARK STALLONS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 111,076 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 113,576 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (111,076) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 125,396 EXPENSE TO THE COOPERATIVE $ 127,896 STEVE MORRISON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 112,906 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 115,406 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (112,906) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 110,908 EXPENSE TO THE COOPERATIVE $ 113,408 BART THURGOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 76,664 EXPENSE TO THE COOPERATIVE $ 79,164 CHRISTOPHER TOMCHUK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 86,105 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 88,605 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (86,105) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 79,889 EXPENSE TO THE COOPERATIVE $ 82,389 NATHAN JOHNSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 69,505 EXPENSE TO THE COOPERATIVE $ 72,005 BENJAMIN VELOZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 87,416 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 89,916 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (87,416) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,787 EXPENSE TO THE COOPERATIVE $ 49,287 JOE FIELDSTED: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 59,852 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 62,352 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (59,852) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 67,859 EXPENSE TO THE COOPERATIVE $ 70,359 LOGAN GERNET: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,891 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 33,391 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,891) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 92,966 EXPENSE TO THE COOPERATIVE $ 95,466 MINDY MURROW: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,458 EXPENSE TO THE COOPERATIVE $ 50,958 ERIK STUHAAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,785 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 39,285 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,785) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 53,343 EXPENSE TO THE COOPERATIVE $ 55,843 JAMES CAPLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,798 EXPENSE TO THE COOPERATIVE $ 48,298 JAMES ANDRESEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,302 EXPENSE TO THE COOPERATIVE $ 58,802 CLIFFORD BROOKS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,981 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 24,981 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,123 EXPENSE TO THE COOPERATIVE $ 46,123 DANIEL ROGERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,562 EXPENSE TO THE COOPERATIVE $ 38,062 CAROL CUSIMANO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,500 TOTAL REPORTED IN COLUMN C $ 2,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,457 EXPENSE TO THE COOPERATIVE $ 37,957 KATHY MATTOCKS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,300 TOTAL REPORTED IN COLUMN C $ 1,300 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,521 EXPENSE TO THE COOPERATIVE $ 37,821 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. THE 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 PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW SUBSEQUENT TO FILING. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE CONFLICT OF INTEREST POLICY IS EXPLAINED TO ALL NEW DIRECTORS COMING ON THE BOARD. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. BOARD MINUTES ARE NOTED WHEN A DIRECTOR HAS A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND AN INDEPENDENT CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEO'S FROM COOPERATIVES LOCATED IN NEVADA AND THE NATION. THE BOARD AND CEO USE A COMPENSATION SURVEY AND AN INDEPENDENT CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEVADA AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE'S BYLAWS, ARTICLES OF INCORPORATION, ANNUAL REPORT, AND AUDITED FINANCIAL STATEMENTS FOR MOST RECENT YEAR ARE ALSO AVAILABLE ON THE COOPERATIVE'S WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE CONFLICT OF INTEREST POLICY OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. 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 PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, MEETING 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, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE 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 2: PATRONAGE DIVIDENDS 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 ASSOCIATION 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 SEPARATELY 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 $ 11,032,043 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (115,750) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (280,768) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (405,945) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 64 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,440,200 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 2,934,509 TOTAL WAGES ACCRUED AND/OR PAID $16,604,353 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $14,497,230 OFFICE SUPPLIES 48,598 OUTSIDE SERVICES 436,586 INJURIES & DAMAGES 98,558 EMPLOYEE PENSION & BENEFITS 78,474 MEETINGS 281,987 MISCELLANEOUS GENERAL EXP 738,917 DIRECTORS 140,057 DUES 36,617 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $16,357,024 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (115,750) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,445,184) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (2,726,396) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $10,069,694 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 774,882 CUSTOMER SERVICE & SALES 302,967 OTHER DEDUCTIONS 253,931 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,331,780 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL RETIRED - TOTAL -363,927. PATRONAGE CAPITAL RETIRED - DISCOUNT 171,876. DONATED CAPITAL 143,248. NET CHANGE IN MEMBERSHIPS -16,150. OTHER EQUITY ADJUSTMENTS 16,180. OTHER COMPREHENSIVE INCOME ADJUSTMENT FOR POST-RETIREMENT BENEFITS 163,561. 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. VALLEY ELECTRIC TRANSMISSION ASSOCIATION LLC 800 E HIGHWAY 372 PAHRUMP NV 89041 274844226 TRANSMISSION OF ELECTRICITY. NV 8457040 49919091 VALLEY ELECTRIC ASSOCIATION INC VALLEY ELECTRIC ENERGY SERVICES LLC 800 E HIGHWAY 372 PAHRUMP NV 89041 471001205 INACTIVE NV 0 0 VALLEY ELECTRIC ASSOCIATION INC VALLEY ELECTRIC UTILITY SERVICES LLC 800 E HIGHWAY 372 PAHRUMP NV 89041 471012241 INACTIVE NV 0 0 VALLEY ELECTRIC ASSOCIATION INC VALLEY COMMUNICATIONS ASSOCIATION LLC 800 E HIGHWAY 372 PAHRUMP NV 89041 474018997 TO PROVIDE BROADBAND SERVICES NV 9955097 28590878 VALLEY ELECTRIC ASSOCIATION INC SOLPOWER 800 E HIGHWAY 372 PAHRUMP NV 89041 SOLAR POWER SERVICES NV 1617180 1676532 VALLEY ELECTRIC ASSOCIATION INC VALLEY ELECTRIC CHARITABLE FOUNDATION 800 E HIGHWAY 372 PAHRUMP NV 89041 263157116 TO PROVIDE SCHOLARSHIPS AND GRANTS TO MEMBERS OF THE COOPERATIVE'S AREA. NV 501(C)(3) LINE 7 VALLEY ELECTRIC ASSOCIATION INC 1 VEA PAC PO BOX 237 PAHRUMP NV 89041 274721243 LOBBYING AT STATE AND FEDERAL LEVELS FOR RURAL ELECTRIC COOPERATIVES. NV 527 VALLEY ELECTRIC ASSOCIATION INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 VALLEY ELECTRIC CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 VALLEY ELECTRIC CHARITABLE FOUNDATION O N/A - LESS THAN $50,000