2022-11-14T13:01:01-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 860059728 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC SULP 5203842221 350 N HASKELL WILLCOX AZ 85643 JASON BOWLING CEO 5203842221 2022-11-07 1 JASON BOWLING 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-05 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z JASON BOWLING 350 N HASKELL WILLCOX AZ 85643 125015822 0 X WWW.SSVEC.ORG X 1938 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 184 0 272035 143357 0 0 111461101 123858931 239790 109142 1167862 1026973 112868753 124995046 221559 196713 12836324 12095183 14163520 16309116 0 0 0 85309882 94732794 112531285 123333806 337468 1661240 319488701 321892538 165002687 157774854 154486014 164117684 SSVEC IS A COOPERATIVE DELIVERING SAFE AND RELIABLE ELECTRIC SERVICE, THROUGH PEOPLE WHO PROVIDE EXCEPTIONAL SUPPORT TO OUR MEMBER-OWNERS AND THE COMMUNITIES WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 53,283 ACTIVE SERVICES AT YEAR END. ELECTRIC DISTRIBUTION SERVICES (THE DELIVERY, BUT NOT THE SALE OF ELECTRICITY, TO A CUSTOMER OVER LINES OWNED, OPERATED AND MAINTAINED BY THE COOPERATIVE) WERE PROVIDED TO THE CLASS B MEMBERSHIP ON A COOPERATIVE BASIS. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 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 1 201 0 184 1 1 1 0 0 0 0 122371134 4251680 0 1 0 X 10 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 AZ X X RON LEE CFO 5203842221 350 N HASKELL AVE WILLCOX AZ 85643 X KATHRYN THATCHER DIRECTOR 5.90 1.00 X 17775 0 0 CURTIS NOLAN PRESIDENT 8.50 1.00 X X 30863 0 0 PAT ENGLISH DIRECTOR 3.00 1.00 X 13050 0 0 THOMAS GOODMAN DIRECTOR 5.60 1.00 X 24175 0 0 DAN BARRERA SECRETARY 7.30 1.00 X X 20675 0 0 PETE GILLESPIE DIRECTOR 2.60 1.00 X 7975 0 0 JAMES JOHNSON DIRECTOR (JAN-APR) 4.40 1.00 X 4350 0 0 DONALD GENE MANRING DIRECTOR (JAN-APR) 3.30 1.00 X 3625 0 0 RANDY REDMOND VICE PRESIDENT 8.10 1.00 X X 22600 0 0 JOSEPH BEAM TREASURER 7.90 1.00 X X 23225 0 0 DAVE KELSO DIRECTOR (APR-DEC) 7.30 1.00 X 15825 0 0 CLIFFORD LEX HERRON DIRECTOR (APR-DEC) 5.10 1.00 X 11900 0 0 JACK BLAIR CHIEF MEMBER SERVICES OFFICER 48.00 X 243580 0 98977 JASON BOWLING CHIEF ADMINISTRATION OFFICER 45.00 X 197833 0 114854 ORSON GARNSEY CHIEF INFORMATION TECHNOLOGY OFFICER 50.00 X 187139 0 88239 NATHAN HODGES CHIEF OPERATIONS OFFICER 45.00 X 196661 0 107039 CREDEN HUBER CHIEF EXECUTIVE OFFICER 48.00 X 1151555 0 34273 RON LEE CHIEF FINANCIAL OFFICER 50.00 X 184891 0 77150 DANIEL WILSON DIRECTOR OF ENGINEERING 46.00 X 201874 0 98039 RICHARD ELLIS JOURNEYMAN LINEMAN 50.00 X 160257 0 96936 JAMES FREEMAN CONTROLLER 40.00 X 141648 0 75446 MANUEL GONZALES TECH SERVICES/FLEET MANAGER 46.00 X 138202 0 94920 JESUS MORENO SUBSTATION AND AUTOMATION ENGINEER 40.00 X 132483 0 62320 MARK ROLL MAINENANCE/OPERATIONS MANAGER 48.00 X 133688 0 68698 3265849 0 1016891 42 0 1 0 ASPLUNDUH TREE EXPERT LLC PO BOX 31001 PASADENA CA 91110 ROW TREE TRIMMING 392777 HMW CONSTRUCTION LLC PO BOX 3544 OMAHA NE 68103 CONSTRUCTION CONTRACTOR 365701 FENNEMORE CRAIG PC 2394 EAST CAMELBACK RD SUITE 600 PHOENIX AZ 85016 LEGAL SERVICES 352184 SCHNEIDER ELECTRIC SMART GRID 26742 NETWORK PLACE CHICAGO IL 60673 SOFTWARE SERVICES 207630 EVERSHEDS SUTHERLAND LLP 999 PEACHTREE ST NE SUITE 2300 ATLANTA GA 30309 LEGAL SERVICES 164163 8 X SALES OF ELECTRICITY 221000 118191045 118191045 PATRONAGE DIVIDENDS 221000 2545963 2545963 DISTRIBUTION SERVICES 221000 2392041 2392041 SERVICE FEES 221000 729882 729882 123858931 109142 109142 8043 0 8043 8043 8043 14693 20776 -6083 -6083 POLE ATTACHMENT INCOME 221000 746895 746895 INTERNET COMMISSIONS 517000 270869 270869 OUTSIDE SERVICES 811000 7249 7249 1025013 124995046 123858931 272035 864080 X 196713 12095183 2495475 9349934 2371417 1430968 661322 4659252 12708203 PURCHASED POWER 65661412 DISTRIBUTION EXPENSE 6554657 ADMIN & GENERAL EXPENSE 2136340 UNRELATED BUS. INC. TAX 39653 2973277 123333806 3391932 3116650 11482293 14644420 3641106 4162929 48665 57784 2632633 3036082 4231504 1467218 392170663 166349859 226229026 225820804 63215070 65563505 4616472 4023146 319488701 321892538 10398773 11212618 132308951 125679890 22294963 20882346 165002687 157774854 X 203830 205970 0 0 154282184 163911714 154486014 164117684 319488701 321892538 X 1661240 7970430 X X 0 0 0 2413207 2413207 14152851 4266995 9885856 363428839 162082864 201345975 12175766 12175766 225820804 PATRONAGE CAPITAL - AEPCO 55031371 C PATRONAGE CAPITAL - CFC 2862199 C PATRONAGE CAPITAL - NISC 136343 C PATRONAGE CAPITAL - NRTC 23124 C PATRONAGE CAPITAL - FEDERATED 735335 C PATRONAGE CAPITAL - CRC 26197 C COBANK EQUITY INVESTMENT 2696373 C ASSOCIATED ORGANIZATIONS - GENERAL FUNDS 1010 C CAPITAL TERM CERTIFICATES-CFC 2328602 C DEFERRED COMPENSATION FUNDS 1722951 F 65563505 CONSUMER DEPOSITS 2759850 ACCUMULATED PROVISION - PENSIONS & BENEFITS 3187012 ACCRUED OPERATING TAXES 2146847 DEFERRED CREDITS - ENERGY CONSERVATION & OTHER 6942145 DEFERRED CREDITS - FT. HUACHUCA REIMBURSEMENTS 5846492 20882346 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 COCHISE EDUCATION FOUNDATION PO BOX DRAWER 493 BISBEE AZ 85603 263735497 501(C)(3) 5350 0 TEACHER OF THE YEAR DONATION BOYS AND GIRLS CLUB OF SIERRA VISTA INC 1746 PASEO SAN LUIS SIERRA VISTA AZ 85636 860801728 501(C)(3) 10000 0 ANNUAL DONATION SIERRA VISTA AREA CHAMBER OF COMMERCE 21 E WILCOX DR SIERRA VISTA AZ 85635 742586694 501(C)(6) 10400 0 ANNUAL DONATION TUCSON CONQUISTADORES CLASSIC 6450 E BROADWAY BLVD TUCSON AZ 85710 202132844 501(C)(6) 8000 0 THE FIRST TEE OF TUCSON WHERE THEY BUCK 3500 N MALLARD CIRCLE SIERRA VISTA AZ 85635 823574433 10000 0 ANNUAL DONATION 2 3 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 1 1 X X 0 1 0 CREDEN HUBER CHIEF EXECUTIVE OFFICER 455041 0 4900 0 691614 0 8700 0 25573 0 1185828 0 0 0 JACK BLAIR CHIEF MEMBER SERVICES OFFICER 202246 0 4850 0 36484 0 84729 0 14248 0 342557 0 0 0 JASON BOWLING CHIEF ADMINISTRATION OFFICER 171529 0 9853 0 16451 0 90281 0 24573 0 312687 0 0 0 NATHAN HODGES CHIEF OPERATIONS OFFICER 169037 0 4200 0 23424 0 88118 0 18921 0 303700 0 0 0 DANIEL WILSON DIRECTOR OF ENGINEERING 176874 0 4700 0 20300 0 73466 0 24573 0 299913 0 0 0 ORSON GARNSEY CHIEF INFORMATION TECHNOLOGY OFFICER 181211 0 4200 0 1728 0 80687 0 7552 0 275378 0 0 0 RON LEE CHIEF FINANCIAL OFFICER 177267 0 5700 0 1924 0 65691 0 11459 0 262041 0 0 0 RICHARD ELLIS JOURNEYMAN LINEMAN 148427 0 2200 0 9630 0 77015 0 19921 0 257193 0 0 0 MANUEL GONZALES TECH SERVICES/FLEET MANAGER 120005 0 7200 0 10997 0 88469 0 6451 0 233122 0 0 0 JAMES FREEMAN CONTROLLER 140112 0 80 0 1456 0 58414 0 17032 0 217094 0 0 0 MARK ROLL MAINENANCE/OPERATIONS MANAGER 116333 0 6983 0 10372 0 52146 0 16552 0 202386 0 0 0 JESUS MORENO SUBSTATION AND AUTOMATION ENGINEER 122331 0 2000 0 8152 0 37747 0 24573 0 194803 0 0 0 PART I, LINE 1A PURSUANT TO THE COOPERATIVE'S WELLNESS PROGRAM, EMPLOYEES ARE REIMBURSED FOR 50% OF THEIR OUT OF POCKET COSTS FOR PARTICIPATION IN QUALIFIED WELLNESS ACTIVITIES. THE TOTAL ANNUAL REIMBURSEMENT IS LIMITED TO $360 PER EMPLOYEE AND $360 FOR AN EMPLOYEE'S SPOUSE, PROVIDED THE SPOUSE IS COVERED UNDER THE COOPERATIVE'S HEALTH INSURANCE PROGRAM. EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN THE WELLNESS PROGRAM AFTER 60 DAYS OF EMPLOYEMENT. PART I, LINE 4B MR. CREDEN HUBER PARTICIPATES IN A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN. THE PURPOSE OF THE PLAN IS TO COMPENSATE THE PLAN PARTICIPANT FOR PENSION BENEFITS THAT ARE SUBJECT TO ANNUAL COMPENSATION LIMITS AND ALSO SUBJECT TO CAPS ON THE LEVEL OF ACCRUED BENEFITS UNDER THE PLAN THAT MAY BE EARNED AS PROVIDED FOR BY SECTIONS 401(A)(17) AND 415(B) OF THE INTERNAL REVENUE CODE, RESPECTIVELY. AT AGE 62, MR.HUBER'S BENEFITS ACCRUED UNDER THE PLAN BECAME FULLY VESTED, PAYABLE AND REPORTABLE COMPENSATION TO THE PLAN PARTICIPANT IN 2020. IN 2021, THE BENEFITS INCLUDED IN PART II, COLUMN B(III) WERE ACCRUED AND VESTED IN THE SAME YEAR. TOTAL VESTED BENEFITS PAID IN 2021 WERE $682,667. 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 CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. CREDEN HUBER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 ACTUARIAL INCREASE IN NQDC PLAN 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,700 TOTAL REPORTED IN COLUMN C $ 8,700 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 159,753 EXPENSE TO THE COOPERATIVE $ 168,453 JACK BLAIR: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 78,585 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,144 TOTAL REPORTED IN COLUMN C $ 84,729 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (78,585) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 71,281 EXPENSE TO THE COOPERATIVE $ 77,425 JASON BOWLING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 84,910 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,371 TOTAL REPORTED IN COLUMN C $ 90,281 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (84,910) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 62,344 EXPENSE TO THE COOPERATIVE $ 67,715 NATHAN HODGES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 82,827 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,291 TOTAL REPORTED IN COLUMN C $ 88,118 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (82,827) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 61,173 EXPENSE TO THE COOPERATIVE $ 66,464 DANIEL WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 67,934 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,532 TOTAL REPORTED IN COLUMN C $ 73,466 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (67,934) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 64,021 EXPENSE TO THE COOPERATIVE $ 69,553 ORSON GARNSEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 75,236 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,451 TOTAL REPORTED IN COLUMN C $ 80,687 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (75,236) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 62,846 EXPENSE TO THE COOPERATIVE $ 68,297 RON LEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,266 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,425 TOTAL REPORTED IN COLUMN C $ 65,691 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,266) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 63,124 EXPENSE TO THE COOPERATIVE $ 68,549 RICHARD ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,004 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,011 TOTAL REPORTED IN COLUMN C $ 77,015 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,004) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,119 EXPENSE TO THE COOPERATIVE $ 38,130 MANUEL GONZALES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 84,862 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,607 TOTAL REPORTED IN COLUMN C $ 88,469 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (84,862) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,920 EXPENSE TO THE COOPERATIVE $ 45,527 JAMES FREEMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,057 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,357 TOTAL REPORTED IN COLUMN C $ 58,414 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,057) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,160 EXPENSE TO THE COOPERATIVE $ 54,517 MARK ROLL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,152 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,994 TOTAL REPORTED IN COLUMN C $ 52,146 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,152) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,920 EXPENSE TO THE COOPERATIVE $ 44,914 JESUS MORENO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,852 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,895 TOTAL REPORTED IN COLUMN C $ 37,747 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,852) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,273 EXPENSE TO THE COOPERATIVE $ 49,168 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 INCOME OF $1,661,240, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE PLUS THE RETENTION OF NON-OPERATING MARGINS. 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/(LOSS) AS FOLLOWS: 1) NET INCREASE/(DECREASE) IN ACCRUED UNBILLED REVENUE PLUS 2) NON-OPERATING MARGINS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/21 $ 2,384,333 LESS: UNBILLED REVENUE 12/31/20 (2,326,352) NET INCREASE IN UNBILLED REVENUE $ 57,981 ADD: NON-OPERATING MARGINS RETAINED 221,543 ADD: NON-OPERATING INCOME - SETTLEMENTS 1,381,716 (A) - NET INCOME ON PAGE 1, PART I, LINE 1 $ 1,661,240 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $12,095,183 TOTAL 2021 NET MARGIN (A + B) $13,756,423 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 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 AND THE PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. THE BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY ANNUALLY, AND IMMEDIATELY ADDRESS ANY QUESTIONS OR CONCERNS IF THEY ARISE. THE BOARD OF DIRECTORS AND OFFICERS ARE ALSO REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEE OFFICERS. FORM 990, PART VI, SECTION C, LINE 19 ANNUALY, THE COOPERATIVE MAILS ITS ANNUAL REPORT TO MEMBERS OF THE COOPERATIVE WHICH CONTAINS A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS. THE COOPERATIVE ALSO PROVIDES COPIES OF THEIR CURRENT AND PAST ANNUAL REPORTS AND GOVERNING DOCUMENTS ON THEIR WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, 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 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 ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION 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 VII, SECTION A: W-2 WAGES RESULTING FROM SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION PLAN: MR. CREDEN HUBER PARTICIPATES IN A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN. THE PURPOSE OF THE PLAN IS TO COMPENSATE THE PLAN PARTICIPANT FOR PENSION BENEFITS THAT ARE SUBJECT TO ANNUAL COMPENSATION LIMITS AND ALSO SUBJECT TO CAPS ON THE LEVEL OF ACCRUED BENEFITS UNDER THE PLAN THAT MAY BE EARNED AS PROVIDED FOR BY SECTIONS 401(A)(17) AND 415(B) OF THE INTERNAL REVENUE CODE, RESPECTIVELY. BENEFITS ACCRUE FROM THE INITIAL DATE OF THE PLAN AND DO NOT VEST UNTIL NORMAL RETIREMENT AGE OF 62. AT AGE 62 ALL BENEFITS ACCRUED UNDER THE PLAN BECOME FULLY VESTED, PAYABLE AND REPORTABLE COMPENSATION TO THE PLAN PARTICIPANT. THIS OCCURRED DURING 2020. IN 2021, BENEFITS UNDER THE PLAN WERE ACCRUED AND VESTED DURING THE YEAR. TOTAL VESTED BENEFITS PAID IN 2021 WERE $682,667, AND ARE REPORTED IN PART VII, COLUMN (D) AS A COMPONENT OF BOX 5, W-2 WAGES. ALTHOUGH THE VESTED BENEFITS ARE REPORTABLE COMPENSATION TO THE PLAN PARTICIPANT, ANNUAL EXPENSE OF THE PLAN IS EQUAL TO THE ANNUAL CONTRIBUTIONS AND NOT THE VESTED AMOUNT PAID. THE VESTED AMOUNT PAID IS DUE FROM THE PLAN AND IS AN ULTIMATE REDUCTION OF PLAN ASSETS RATHER THAN AN EXPENSE TO THE COOPERATIVE IN THE YEAR OF PAYMENT. TOTAL REPORTABLE COMPENSATION IN PART VII (COLUMNS D, E & F) FOR ALL OFFICERS, KEY EMPLOYEES, AND DIRECTORS IS $3,178,142. HOWEVER, SINCE THE $682,667 OF VESTED BENEFITS IS RECORDED AS A RECEIVABLE DUE FROM THE PLAN AND IS NOT A CURRENT EXPENSE TO THE COOPERATIVE, SUCH PAYMENT IS EXCLUDED FROM PART IX, LINE 5 "COMPENSATION OF CURRENT OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES". THE NET RESULT IS A PART IX,LINE 5 EXPENSE OF $2,495,475. FORM 990, PART VIII, LINE 2: 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 COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. 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 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, 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 CALENDAR TAX 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, 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $11,845,409 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (196,038) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (618,571) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 5,869 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,823,300 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,156,490 TOTAL WAGES ACCRUED AND/OR PAID $16,016,459 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 5,946,871 OFFICE SUPPLIES 302,581 OUTSIDE SERVICES 1,059,633 DIRECTORS 285,761 DUES TO ASSOCIATED ORGANIZATIONS 246,570 FORT HUACHUCA ADMINISTRATIVE & GENERAL 17,423 MISCELLANEOUS GENERAL 246,379 CAPITAL CREDITS 36,383 MAINTENANCE OF GENERAL PLANT 72,018 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 8,213,619 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (196,038) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,026,240) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,855,001) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,136,340 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TRANSMISSION $ 388,908 SALES 308,254 CONSUMER ACCOUNTS AND SERVICE 1,919,238 OTHER DEDUCTIONS 240,963 INTERNET 115,914 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 2,973,277 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 12,095,183. PATRONAGE CAPITAL RETIRED - TOTAL -4,133,349. PATRONAGE CAPITAL RETIRED - DISCOUNT 68,242. NET CHANGE IN MEMBERSHIPS 2,140. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS -61,786. FORM 990, PART XII, LINE 2: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JUNE 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION 350 N HASKELL WILLCOX AZ 85643 860488826 FUND EDUCATIONAL YOUTH ACTIVIES AND QUALIFIED PROGRAMS AZ 501(C)(3) PF SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE CHARITABLE TRUST 350 N HASKELL WILLCOX AZ 85643 860993649 ASSISTANCE TO NATURAL DISASTER VICTIMS AND FAMILIES AZ 501(C)(3) LINE 7 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION O N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION Q N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION R 77861 MEMBER UNCLAIMED/DONATED PROPERTY SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000