2022-11-15T15:29:19-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 751941060 GOLDEN SPREAD ELECTRIC COOPERATIVE INC GOLD 8063797766 905 S FILLMORE ST SUITE 300 AMARILLO TX 79101 ROBERT M LOWE CFO & ASSISTANT TREASURER 8063797766 2022-11-15 1 ROBERT LOWE 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-15 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z KARI HOLLANDSWORTH 905 S FILLMORE ST SUITE 300 AMARILLO TX 79101 704310095 0 X WWW.GSEC.COOP X 1984 TX THE ORGANIZATION IS A CONSUMER-OWNED WHOLESALE ELECTRIC POWER SUPPLIER COOPERATIVE. 32 32 101 0 0 0 0 0 440611460 700899667 5047606 2565923 -94092 -221485 445564974 703244105 104975 259346 42898664 0 22095471 22422216 0 0 0 382191926 697413764 447291036 720095326 -1726062 -16851221 1169444657 1251228427 722425247 788523072 447019410 462705355 TO DELIVER COST EFFECTIVE, COMPETITIVE AND RELIABLE POWER TO PROVIDE A SECURE ENERGY FUTURE FOR GENERATIONS TO COME BY CREATING OPPORTUNITIES, CULTIVATING COOPERATION AND NAVIGATING INDUSTRY RISK 0 0 THE ORGANIZATION PROVIDES WHOLESALE ELECTRIC ENERGY UNDER LONG-TERM POWER PURCHASE AGREEMENTS WITH ITS 16 ELECTRIC DISTRIBUTION COOPERATIVE MEMBERS. WHOLESALE POWER IS PROVIDED ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 1 159 0 101 0 0 0 0 0 0 108952339 13135207 0 0 0 X 32 32 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ROBERT M LOWE CFO ASSISTANT TRE 8063797766 905 S FILLMORE ST SUITE 300 AMARILLO TX 79101 X BEN FRANKLIN DIRECTOR 3.70 0.50 X 34100 0 0 BOBBY FUCHS DIRECTOR 5.60 0.50 X 30100 0 0 BOYD MCCAMISH DIRECTOR (JAN - JULY) 5.00 0.50 X 13100 0 0 BRENT WHEELER DIRECTOR 8.90 0.50 X 38100 0 0 CECIL DAVIS DIRECTOR 3.70 0.50 X 25100 0 0 DALE ANCELL DIRECTOR 8.50 0.50 X 47100 0 0 DAVID MARRICLE DIRECTOR 5.20 0.50 X 38200 0 0 DAVID MCCLAIN SECRETARY/ TREASURER 9.30 0.50 X X 34100 0 0 DAVID SELL DIRECTOR 7.50 0.50 X 38150 0 0 DAVID TIPTON DIRECTOR 5.70 0.50 X 24900 0 10200 GREG HENLEY VICE CHAIRMAN 7.00 0.50 X X 30100 0 0 JAMES BATTON DIRECTOR 7.50 0.50 X 38100 0 0 JEFF COPELAND DIRECTOR 4.80 0.50 X 30100 0 0 KELLY LANKFORD CHAIRMAN 6.90 0.50 X X 31100 0 0 KEVIN HUMPHREYS DIRECTOR 3.70 0.50 X 24100 0 0 RICHARD BLAKE MOORE DIRECTOR (BEGINNING AUG) 6.30 0.50 X 15000 0 0 RANDY MAHANNAH DIRECTOR 4.90 0.50 X 28100 0 0 PAT JACKSON DIRECTOR (BEGINNING OCT) 6.30 0.50 X 8000 0 0 RYAN BARTLETT DIRECTOR 7.90 0.50 X 33100 0 0 SHAD MCDANIEL DIRECTOR 8.50 0.50 X 24395 0 14755 SHAWN MARTINEZ DIRECTOR 13.80 0.50 X 32100 0 0 STAN MCCLENDON DIRECTOR 6.30 0.50 X 39100 0 0 STEVE WILLIAMS DIRECTOR (JAN - SEPT) 1.90 0.50 X 21100 0 0 VICK CHRISTIAN DIRECTOR 4.60 0.50 X 25100 0 0 WILLIAM WHITTEN DIRECTOR 3.90 0.50 X 29100 0 0 ZAC PERKINS DIRECTOR 6.40 0.50 X 30100 0 0 ALBERT DANIEL DIRECTOR 4.20 0.50 X 33200 0 0 MARK APPLING DIRECTOR 3.80 0.50 X 35150 0 0 ANDREW KEITH HICKS DIRECTOR 4.30 0.50 X 35200 0 0 BENNY DEAN NIXON DIRECTOR 2.20 0.50 X 30100 0 0 DWAIN STRANGE DIRECTOR 2.30 0.50 X 24100 0 0 TIMOTHY J BURKHALTER DIRECTOR 6.50 0.50 X 32100 0 0 DANNY HELMS DIRECTOR 5.20 0.50 X 18600 0 19500 SYNDA SMITH DIRECTOR 5.50 0.50 X 24000 0 0 KARI HOLLANDSWORTH PRESIDENT & CEO 45.00 0.25 X 646231 0 318414 WILLIAM HARRELSON GENERAL COUNSEL 46.00 X 436739 0 161299 ROBERT M LOWE CFO & ASSISTANT TREASURER 37.00 3.00 X 325104 0 119314 DARLA BLACKMORE VP - HUMAN RESOURCES 44.50 0.50 X 361082 0 76495 MATTHEW MOORE VP - COMMERICAL & ASSETS O 45.00 0.50 X 320227 0 142977 JOHN EICHELMANN VP - MEMBER SVCS & POWER D 45.00 X 353076 0 137680 STEPHEN CROSS DIR - POWER SUPPLY 40.00 X 338176 0 143780 NATASHA HENDERSON DIR - COMPLIANCE MKT/REG A 46.00 1.00 X 268118 0 98513 MICHAEL WISE SENIOR VP - REG/MKT STRATE 46.00 1.00 X 355796 0 155210 ROBERT MCMINN DIR - POWER DELIVERY 42.00 X 240246 0 142497 BRET YEARY MGR - PLANT PERFORMANCE & 42.00 X 240814 0 126529 4879704 0 1667163 64 0 1 0 GENERAL ELECTRIC INTERNATIONAL 4200 WILDWOOD PARKWAY ATLANTA GA 30339 CONSTRUCTION & MATERIAL 33173911 NRG ENERGY SERVICES LLC 804 CARNEGIE CENTER PRINCETON NJ 085406213 CONSTRUCTION & MATERIAL 11371772 SIEMENS ENERGY INC DEPT CH 10075 PALATINE IL 600550075 MAINTENANCE & MATERAIL 7468551 ACES POWER MARKETING LLC 4140 WEST 99TH STREET CARMEL IN 460327731 PURCHASE POWER SERVICES 3979438 WARTSILA NORTH AMERICA INC 11710 N GESSNER ROAD SUITE A HOUSTON TX 77064 MAINTENANCE & MATERAIL 3368589 77 X WHOLESALE POWER 221000 685249968 685249968 TRANSMISSION ACCESS & OTHER REV. 221000 14640575 14640575 PATRONAGE DIVIDENDS 221000 970201 970201 OTHER PROGRAM REVENUE 221000 38923 38923 700899667 2512118 2169255 342863 844505 1065990 -221485 -221485 -221485 53805 0 53805 53805 53805 703244105 703122727 0 121378 X 259346 4437188 12842086 2815184 1457900 869858 27424909 43713060 PURCHASED POWER 281373705 FUEL EXPENSE 181484026 TRANSMISSION EXPENSE 81980114 PLANT OPERATIONS & MAIN 36802828 44635122 720095326 2343445 4014488 198192546 169913885 29310288 29160647 52283121 48484888 97569505 183970015 1125327998 346265273 755263410 779062725 34482342 36621779 1169444657 1251228427 77681978 79422402 549416280 643826555 4204904 4204904 91122085 61069211 722425247 788523072 X 0 0 9773525 9773525 437245885 452931830 447019410 462705355 1169444657 1251228427 X -16851221 32537166 X X 0 1 X 1 0 2826034 2826034 18511811 5164083 13347728 1676593 1062869586 335931187 728614992 39443974 5170003 34273971 779062725 DEFERRED CREDITS - SFA EXPENSE 3676494 REGULATORY LIABILITY - FERC APPROVED REVENUE DEFERRAL PLAN 57387277 OTHER LIABILITIES 5440 61069211 X PART X, LINE 2: GOLDEN SPREAD IS A COOPERATIVE CORPORATION THAT IS TAX-EXEMPT UNDER INTERNAL REVENUE CODE SECTION 501(C)(12) IN YEARS WHERE 85% OF ITS GROSS INCOME IS DERIVED FROM SALES TO MEMBERS ("THE 85% TEST"). FOR THE YEAR ENDED DECEMBER 31, 2020, GOLDEN SPREAD MET THE 85% TEST AND QUIALIFIES FOR EXEMPTION. GOLDEN SPREAD DID NOT MEET THE 85% TEST FOR THE YEAR ENDED DECEMBER 31, 2019 AND WAS REQUIRED TO FILE AS A TAXABLE COOPERATIVE. GOLDEN SPREAD'S WHOLLY-OWNED SUBSIDIARY, GSPWR, IS TAXABLE AS A C CORPORATION UNDER THE INTERNAL REVENUE CODE. GSEC PROPERTIES IS A SINGLE-MEMBER LLC AND IS A DISREGARDED ENTITY OF GOLDEN SPREAD FOR INCOME TAX PURPOSES. GOLDEN SPREAD HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF GAAP. THE PRIMARY TAX POSITION OF GOLDEN SPREAD IS ITS FILING STATUS AS A TAX-EXEMPT ENTITY BASED ON THE ANNUAL 85% TEST DISCUSSED ABOVE. GOLDEN SPREAD HAS DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT THIS TAX POSITION WILL BE SUSTAINED, IN YEARS WHERE THE MEMBER INCOME REQUIREMENTS ARE MET, UPON EXEMPATION 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. FOR THE YEAR ENDED DECEMBER 31, 2020 GOLDEN SPREAD WAS TAX-EXEMPT. GOLDEN SPREAD DID NOT OWE INCOME TAXES FOR THE YEAR ENDED DECEMBER 31, 2019 AS THE TAXABLE COOPERATIVE REPORTED UTILITY REVENUES AS PATRONAGE SOURCED INCOME. IF OFF-SYSTEM SALES WERE TREATED AS NONPATRONAGE, A TAXABLE LOSS WOULD BE REPORTED ALSO RESULTING IN NO TAX DUE. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 13 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 VIII HAS BEEN LEFT BLANK. 1 OPPORTUNITY PLAN INC PO BOX 1035 CANYON TX 79015 756020405 501(C)(3) 18250 0 SCHOLARSHIPS MASSACHUSETTS INSTITUTE OF TECHNOLOGY 77 MASSACHUSETTS AVE ROOM E19-411 CAMBRIDGE MA 02139 042103594 501(C)(3) 165000 0 RESEARCH SCHOLARSHIPS AMARILLO AREA FOUNDATION 801 S FILLMORE SUITE 700 AMARILLO TX 79101 750978220 501(C)(3) 8392 0 TO ASSIST IN FUNDING CHARITABLE ORGANIZATIONS AND PROGRAMS SUPPORTED BY THE FOUNDATION 3 X X X 1 0 X X X X X 0 1 0 KARI HOLLANDSWORTH PRESIDENT & CEO 573329 0 59586 0 13316 0 283204 0 35210 0 964645 0 0 0 WILLIAM HARRELSON GENERAL COUNSEL 374127 0 54614 0 7998 0 129467 0 31832 0 598038 0 0 0 MICHAEL WISE SENIOR VP - REG/MKT STRATE 307510 0 46618 0 1668 0 123996 0 31214 0 511006 0 0 0 JOHN EICHELMANN VP - MEMBER SVCS & POWER D 295140 0 44045 0 13891 0 135644 0 2036 0 490756 0 0 0 STEPHEN CROSS DIR - POWER SUPPLY 285673 0 42121 0 10382 0 113317 0 30463 0 481956 0 0 0 MATTHEW MOORE VP - COMMERICAL & ASSETS O 272930 0 36764 0 10533 0 111848 0 31129 0 463204 0 0 0 ROBERT M LOWE CFO & ASSISTANT TREASURER 285673 0 38931 0 500 0 90790 0 28524 0 444418 0 0 0 DARLA BLACKMORE VP - HUMAN RESOURCES 184539 0 38403 0 138140 0 59942 0 16553 0 437577 0 0 0 ROBERT MCMINN DIR - POWER DELIVERY 213492 0 26754 0 0 0 111290 0 31207 0 382743 0 0 0 BRET YEARY MGR - PLANT PERFORMANCE & 205258 0 25286 0 10270 0 94478 0 32051 0 367343 0 0 0 NATASHA HENDERSON DIR - COMPLIANCE MKT/REG A 241863 0 26055 0 200 0 70169 0 28344 0 366631 0 0 0 PART I, LINE 1A AIR TRAVEL IS OCCASIONALLY CHARTED IN ORDER FOR DIRECTORS TO ATTEND BOARD MEETINGS. SUCH CHARTERED FLIGHTS ARE BOOKED WHEN SIMILAR TO OR ADVANTAGEOUS COMPARED TO COMMERCIAL FLIGHTS OR MILEAGE DUE TO THE SIGNIFICANT TRAVEL REQUIREMENTS OF VARIOUS MEMBER COOPERATIVES IN REMOTE PARTS OF TEXAS. MULTIPLE DIRECTORS PARTICIPATE IN A SINGLE CHARTERED FLIGHT. ANNUAL DUES ARE PAID FOR OFFICERS TO A 501(C)(7) RESTAURANT CLUB LOCATED IN DOWNTOWN AMARILLO (THE AMARILLO CLUB). MEMBERSHIP PROVIDES A CONVENIENT BUSINESS ENVIRONMENT TO CONDUCT MEETINGS. PURSUANT TO POLICY, GYM MEMBERSHIP DUES ARE ALSO PAID AS PART OF A WELLNESS PLAN. DURING 2021, 4 INDIVIDUALS REPORTED ON FORM 990,PART VII, SECTION A (EICHELMANN, HENDERSON AND WISE) RECEIVED THIS BENEFIT FOR A TOTAL COST OF $2,370. TAX GROSS UP PAYMENTS ARE INCLUDED IN COMPENSATION. SUCH GROSS-UP PAYMENTS ARE FOR CLUB MEMBERSHIP DUES AND THE OCCASIONAL GIFT CARD. 5 EMPLOYEES REPORTED ON FORM 990, PART VII, SECTION (CROSS, EICHELMANN, HOLLANDSWORTH, MOORE, YEARY) A RECEIVED THIS BENEFIT DURING 2021 FOR A TOTAL COST OF $583. PART I, LINE 4B KARI HOLLANDSWORTH PARTICIPATES IN A SEPARATE SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN, KNOWN AS THE EXECUTIVE BENEFIT RESTORATION PLAN. TOTAL BENEFITS ACCRUED UNDER THE PLAN WERE $146,308. NO AMOUNTS WERE VESTED AND PAID DURING THE YEAR. WILLIAM HARRELSON PARTICIPATES IN THE EXECUTIVE BENEFIT RESTORATION PLAN NQDC. TOTAL BENEFITS VESTED, PAID AND INCLUDED AS W-2 WAGES DURING THE YEAR WAS $7,999; ALL OF WHICH WAS ACCRUED AND VESTED IN THE CURRENT YEAR. MICHAEL WISE ALSO PARTICIPATED IN THE EXECUTIVE BENEFIT RESTORATION NQDC PLAN. TOTAL BENEFITS VESTED, PAID, AND INCLUDED AS W-2 WAGES DURING THE YEAR WAS $1,118; ALL OF WHICH WAS ACCRUED AND VESTED IN THE CURRENT YEAR. PART II, COLUMN C: AMOUNTS REPORTED IN PART II, COLUMN C INCLUDE THE EMPLOYER CONTRIBUTION TO A 401(K) DEFINED CONTRIBUTION PLAN. THIS IS AN ACTUAL EXPENSE TO THE COOPERATIVE. ALSO INCLUDED IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. FOR A MULI-EMPLOYER PLAN, THIS REPORTS CHANGES IN THE BENEFITS EARNED BUT IS NOT REPRESENTATIVE OF THE ACTUAL EXPENSE TO THE COOPERATIVE. CONTRIBUTIONS TO A MULTI-EMPLOYER PLAN, RATHER THAN THE ACTUARIAL INCREASE, ARE EXPENSED BY THE COOPERATIVE. WITH RESPECT TO THE ACTUARIAL INCREASE, 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. GAIL EICHELMANN FAMILY RELATIONSHIP - KEY EMPLOYEE (J. EICHELMANN) 141242 EMPLOYMENT 0 FORM 990, PART I, LINE 19 - REVENUE LESS EXPENSES THE LOSS OF $16,851,221 IS THE RESULT OF REVENUE DEFERRED IN A PRIOR YEAR AND RECOGNIZED IN THE FINANCIAL STATEMENT FOR THE CURRENT YEAR PURSUANT TO A DEFERRED REVENUE PLAN APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION ("FERC"). ALTHOUGH THE FERC APPROVED PLAN ALLOWS FOR THE COOPERATIVE TO DEFER REVENUE FOR RATEMAKING PURPOSES, AMOUNTS DEFERRED ARE ALLOCABLE TO THE MEMBERS AS PATRONAGE CAPITAL IN THE YEAR THE REVENUE IS EARNED, WHICH IS CONSISTENT WITH TAX ACCOUNTING AND RESOLUTIONS ADOPTED BY THE BOARD OF DIRECTORS. ACCORDINGLY, THE LOSS WILL BE RECOVERED AS AN OFFSET OF AMOUNTS IN THE FUTURE THAT ARE OTHERWISE ALLOCABLE TO THE MEMBERS. SUCH OFFSET IS CONSISTENT WITH THE BYLAWS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE WHOLESALE ELECTRIC POWER AT COST ON A COOPERATIVE BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION WAS FORMED BY ITS MEMBERS TO PROVIDE WHOLESALE POWER AND TRANSMISSION SERVICES AT COST ON A COOPERATIVES BASIS. EACH MEMBER IS ENTITLED TO APPOINT TWO INDIVIDUALS TO SERVE AS ITS VOTING REPRESENTATIVE ON THE BOARD OF DIRECTORS. 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. EXPULSION OF ANOTHER MEMBER FOR CONDUCT DETRIMENTAL TO THE COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN EXTERNAL ACCOUNTING FIRM. PRIOR TO FILING, MANAGEMENT PROVIDES A DRAFT OF THE FORM 990 TO THE AUDIT COMMITTE OF THE BOARD FOR DISCUSSION AND REVIEW. ANY COMMENTS RECEIVED FROM THE BOARD ARE ADDRESSED PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, OFFICERS AND EMPLOYEES ARE REQUIRED TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. IF POLICIES NEED TO BE UPDATED, THEY ARE DRAFTED AND THEN REVIEWED WITH LEGAL COUNSEL BEFORE PRESENTATION TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND APPROVAL. OFFICERS AND DIRECTORS SUBMIT FEDERAL ENERGY REGULATORY COMMISSION FORM 561 "ANNUAL REPORT OF INTERLOCKING POSITIONS". FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S PRESIDENT/CEO. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. THE FORM 990 OF SIMILARLY SITUATED WHOLESALE POWER SUPPLY COOPERATIVES IS ALSO USED BY THE BOARD OF DIRECTORS TO ASSIST IN ESTABLISHING COMPENSATION FOR THE PRESIDENT & CEO. THE BOARD AND THE PRESIDENT/CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED 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 FINANCIAL STATEMENTS AND ACCOMPANYING FOOTNOTES TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT ARE ALSO LOCATED 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. 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 THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION, LONGTERM DISABILITY, AND ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED IN PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND EMPLOYER PAID INSURANCE PREMIUMS. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PAYMENT OF INTEREST TO 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, 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 WHOLESALE POWER 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 ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF WHOLESALE POWER FROM THE COOPERATIVE FOR THE 2020 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. PART IX, LINE 24(E) - OTHER EXPNESE OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: AMORTIZATION OF DEFERRED CHARGES $ 3,945,005 OPERATING TAXES 6,426,729 OTHER OPERATING EXPENSES & REGULATORY ASSESSMENTS 14,754,880 GENERAL & ADMINISTRATIVE EXPENSES 19,508,508 TOTAL OTHER EXPENSES PER FORM 990, PART IX $44,635,122 FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND THE ACCOUNTING SYSTEM PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISION (FERC) FOR ELECTRIC UTILITIES. UNDER THE FERC APPROVED ACCOUNTING SYSTEM,THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH A UNIFORM SYSTEM OF ACCOUNTS (USOA) THAT IS DESIGNED FOR ELECTRIC UTILITIES AND REGULATORY REPORTING. THE USOA DOES NOT RECORD EXPENSES IN THE FUNCTIONAL 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 ITS ACCOUNTING SYSTEM. ALL OTHER EXPENSES OF THE COOPERATIVE ARE ON THE APPLICABLE LINE BASED ON THE FUNCTIONAL EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART XI, LINE 9: EQUITY METHOD INCOME(LOSS) OF WHOLLY-OWNED SUBSIDIARY 1,710,895. BOOK-TAX ADJUSTMENT: DEFERRED REVENUE PER FERC APPROVED PLAN 30,826,271. 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. GSEC PROPERTIES LLC 905 S FILLMORE ST SUITE 300 AMARILLO TX 79101 OFFICE BUILDING RENTAL TX 844505 14262135 GOLDEN SPREAD ELECTRIC COOPERATIVE INC GOLDEN SPREAD PANHANDLE WIND RANCH LLC 905 S FILLMORE ST SUITE 300 AMARILLO TX 79101 263144595 WIND ENERGY PRODUCTION TX GOLDEN SPREAD ELECTRIC COOPERATIVE INC C 14011355 83915058 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 1 GOLDEN SPREAD PANHANDLE WIND RANCH LLC A 2169255 DEBT AMORTIZATION SCHEDULE GOLDEN SPREAD PANHANDLE WIND RANCH LLC R 13981667 PURCHASE POWER AGREEMENT GOLDEN SPREAD PANHANDLE WIND RANCH LLC O 325168 DIRECT LABOR & OVERHEAD GOLDEN SPREAD PANHANDLE WIND RANCH LLC S 3798233 PRINCIPAL PAYMENTS