2022-11-15T16:19:27-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 710056715 FIRST ELECTRIC COOPERATIVE CORPORATION FIRS 5019824545 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 MELISSA WOOD CFO 5019824545 2022-11-15 1 MELISSA WOOD 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-03 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z DON CRABBE 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 234695517 0 X WWW.FIRSTELECTRIC.COOP X 1937 AR TO PROVIDE QUALITY, RELIABLE AND AFFORDABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 251 0 908132 0 0 0 179526938 228470168 7307943 3750361 1166410 2136186 188001291 234356715 14306 25213 13429080 18248867 23893139 22866221 0 0 0 150664766 193709884 188001291 234850185 0 -493470 519016940 572577962 240752150 280952297 278264790 291625665 X FIRST ELECTRIC, IMPROVING QUALITY OF LIFE. 1 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 99,113 ACTIVE 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 1 1 1 0 0 1 220 0 251 1 1 1 0 0 0 0 223807543 9730900 0 0 0 X 9 9 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X MELISSA WOOD CFO 5019824545 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 X RICK LOVE CHAIRMAN 9.80 1.00 X X 41351 0 0 TRACY HUDSPETH VICE CHAIRMAN 5.10 1.00 X X 38951 0 0 KARISSA RUSHING SECRETARY/TREASURER 5.80 1.00 X X 36551 0 2400 DAVID LUEBKE DIRECTOR 6.80 1.00 X 38951 0 0 TODD PROTHRO DIRECTOR 7.90 1.00 X 38951 0 0 ROBERT HILL DIRECTOR 3.90 1.00 X 38796 0 0 THOMAS HASTY JR DIRECTOR 4.10 1.00 X 38769 0 0 LARRY WOOD DIRECTOR 3.90 1.00 X 38648 0 0 ROBERT MAERTENS DIRECTOR 6.90 1.00 X 19164 0 19500 DON CRABBE PRESIDENT/CEO 49.00 1.00 X 823091 0 20698 MELISSA WOOD CFO 45.00 X 219945 0 34036 RANDY EVERETT CIO 45.00 1.00 X 197303 0 204185 DANIEL RIEDEL VP - ENGINEERING 50.00 X 217421 0 193124 JERRY DRISKILL VP - OPERATIONS 45.00 X 203194 0 128383 ASHLEY GARRINGER VP - ADMINISTRATION 45.00 X 190298 0 114095 TONYA SEXTON VP - MARKETING AND DEVELOP 45.00 X 185643 0 30959 KAREN SOUTHERLAND DISTRICT MANAGER 45.00 X 157897 0 171775 JAMES BRANSCUM DISTRICT MANAGER 45.00 X 150353 0 109818 THEODORE DEWEESE JR SERVICEMAN 50.00 X 173695 0 66243 DAVID JONES FIELD ENGINEER SUPERVISOR 40.00 X 144466 0 58191 JOHN HAWKINS CREW CHIEF 50.00 X 150718 0 46192 3144156 0 1199599 48 0 1 0 STUART C IRBY INC PO BOX 843959 DALLAS TX 75284 FTTH MATERIALS AND SUPPORT 35130465 KLASSMEYER CONSTRUCTION INC PO BOX 847 CONWAY AR 72033 FIBER BACKBONE CONSTRUCTION LABOR 17476518 QUANTA TELECOMMUNICATION SERVICES 5051 WESTHEIMER RD STE 900 HOUSTON TX 77056 FIBER BACKBONE CONSTRUCTION LABOR 5611248 UTILITY LINES CONSTRUCTION INC PO BOX 827464 PHILADELPHIA PA 19182 POWERLINE CONSTRUCTION 3755820 ASPLUNDH TREE EXPERT CO PO BOX 825124 PHILADELPHIA PA 19182 ROW 2225420 19 X SALES OF ELECTRICITY 221000 222072303 222072303 PATRONAGE DIVIDENDS 221000 4921644 4921644 SERVICE FEES 221000 1387935 1387935 OTHER PROGRAM REVENUE 221000 60045 60045 SURGE PROTECTOR REVENUE 221000 28241 28241 228470168 3130323 -20947 3151270 2364 2364 776 0 776 776 776 917855 297817 620038 620038 620038 42119 40985 1134 1134 POLE ATTACHMENT INCOME 221000 1203609 1203609 INTERNET SERVICES 221000 928303 928303 2131912 234356715 229091340 908132 4357243 X 25213 18248867 3114407 12994657 2600729 3760581 395847 8799816 16261830 PURCHASED POWER 146466732 DISTRIBUTION EXPENSE 14316230 CONSUMER EXPENSE 4051031 ADMIN & GENERAL EXPENSE 3427403 386842 234850185 4882001 5569854 16180150 433211 18549105 18010478 353819 843585 13144930 11570268 643250469 201355521 373156548 441894948 82671281 83513488 49152 10079106 10692978 519016940 572577962 7359880 20814115 191979961 218792384 41412309 41345798 240752150 280952297 X 783015 794005 0 0 277481775 290831660 278264790 291625665 519016940 572577962 X -493470 13854345 X X 0 1 X 1 1 1 4496376 4496376 23226845 8986617 14240228 530322627 192368904 337953723 85204621 85204621 441894948 PATRONAGE CAPITAL - CFC 8519916 C PATRONAGE CAPITAL - AECC 56260913 C PATRONAGE CAPITAL - AECI 5727613 C PATRONAGE CAPITAL - NISC 536515 C PATRONAGE CAPITAL - NRTC 551126 C PATRONAGE CAPITAL - CRC 43770 C CAPITAL TERM CERTIFICATES - CFC 10203770 C ACCUMULATED DIVIDENDS - ARESIT 74190 C MEMBERSHIPS 3200 C ENERGY EFFICIENCY LOANS 9647 C EXECUTIVE COMPENSATION OFFSET 1052596 C IRRIGATION LINE EXTENSION 391179 C DIAMOND STATE NETWORKS LLC 139053 C 83513488 CONSUMER DEPOSITS AND PREPAYMENTS 5561175 ACCUMULATED PROVISION FOR PENSIONS AND OTHER POST-RETIREMENT BENEFITS 28849718 DEFERRED CREDITS 706131 ACCRUED PROPERTY TAXES 4220000 ACCRUED OPERATING TAXES - OTHER 647446 OTHER LIABILITIES 1361328 41345798 X 234355568 0 234355568 1147 1147 234356715 216600171 0 216600171 18250014 18250014 234850185 PART X, LINE 2: THE COOPERATIVE FOLLOWS 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 (IRS) AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS 1,147. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 18,248,867. GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS 1,147. 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: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE 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 FIRST ELECTRIC TRUST 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 311586917 501(C)(3) 14013 0 TO PAY FOR DIRECT OPERATING EXPENSES FOR THE TRUST. NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP COOPERATIVE WAY DULLES VA 20166 520891669 501 (C)(4) 10000 0 INTEGRITY FUND DONATION FOR COOPERATIVE SUPPORT 1 1 SCHEDULE I, PART II: GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE PRIMARILY MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X X 0 1 0 DON CRABBE PRESIDENT/CEO 491953 0 10553 0 320585 0 0 0 20698 0 843789 0 0 0 DANIEL RIEDEL VP - ENGINEERING 200510 0 4944 0 11967 0 186565 0 6559 0 410545 0 0 0 RANDY EVERETT CIO 182098 0 5611 0 9594 0 181910 0 22275 0 401488 0 0 0 JERRY DRISKILL VP - OPERATIONS 191272 0 5089 0 6833 0 105929 0 22454 0 331577 0 0 0 KAREN SOUTHERLAND DISTRICT MANAGER 150820 0 4104 0 2973 0 155787 0 15988 0 329672 0 0 0 ASHLEY GARRINGER VP - ADMINISTRATION 184803 0 4615 0 880 0 92499 0 21596 0 304393 0 0 0 JAMES BRANSCUM DISTRICT MANAGER 133868 0 3790 0 12695 0 89146 0 20672 0 260171 0 0 0 MELISSA WOOD CFO 203611 0 4807 0 11527 0 20824 0 13212 0 253981 0 0 0 THEODORE DEWEESE JR SERVICEMAN 169204 0 2552 0 1939 0 42803 0 23440 0 239938 0 0 0 TONYA SEXTON VP - MARKETING AND DEVELOP 177852 0 4684 0 3107 0 18136 0 12823 0 216602 0 0 0 DAVID JONES FIELD ENGINEER SUPERVISOR 133523 0 3843 0 7100 0 50343 0 7848 0 202657 0 0 0 JOHN HAWKINS CREW CHIEF 142636 0 3229 0 4853 0 32946 0 13246 0 196910 0 0 0 PART I, LINE 4B DON CRABBE PARTICIPATES IN SEPARATE SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLANS. TOTAL BENEFITS VESTED, PAID, AND INCLUDED AS W-2 WAGES DURING THE YEAR FOR ALL PLANS WERE $209,154. 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 ENVIORNMENT. 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. DON CRABBE: ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) 0 TOTAL REPORTED IN COLUMN C $ 0 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 182,690 EXPENSE TO THE COOPERATIVE $ 182,690 DANIEL REIDEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 182,536 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,029 TOTAL REPORTED IN COLUMN C $ 186,565 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (182,536) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 72,733 EXPENSE TO THE COOPERATIVE $ 76,762 RANDY EVERETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 178,107 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,803 TOTAL REPORTED IN COLUMN C $ 181,910 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (178,107) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 69,395 EXPENSE TO THE COOPERATIVE $ 73,198 JERRY DRISKEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 101,935 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,994 TOTAL REPORTED IN COLUMN C $ 105,929 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (101,935) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 71,585 EXPENSE TO THE COOPERATIVE $ 75,579 KAREN SOUTHERLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $152,668 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,119 TOTAL REPORTED IN COLUMN C $ 155,787 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (152,688) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,778 EXPENSE TO THE COOPERATIVE $ 59,897 ASHLEY GARRINGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 88,656 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,843 TOTAL REPORTED IN COLUMN C $ 92,499 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (88,656) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 69,671 EXPENSE TO THE COOPERATIVE $ 73,514 JAMES BRANSCUM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 86,340 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,806 TOTAL REPORTED IN COLUMN C $ 89,146 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (86,340) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 51,112 EXPENSE TO THE COOPERATIVE $ 53,918 MELISSA WOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 20,824 TOTAL REPORTED IN COLUMN C $ 20,824 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 20,824 THEODORE DEWEESE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 40,966 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,837 TOTAL REPORTED IN COLUMN C $ 42,803 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (40,966) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,351 EXPENSE TO THE COOPERATIVE $ 35,188 TONYA SEXTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,136 TOTAL REPORTED IN COLUMN C $ 18,136 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 18,136 DAVID JONES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,665 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,678 TOTAL REPORTED IN COLUMN C $ 50,343 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,665) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,468 EXPENSE TO THE COOPERATIVE $ 50,146 JOHN HAWKINS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,043 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,903 TOTAL REPORTED IN COLUMN C $ 32,946 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,043) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,308 EXPENSE TO THE COOPERATIVE $ 36,211 FORM 990, PART III, LINE 2 THE COOPERATIVE HAS FORMED A WHOLLY OWNED FOR-PROFIT SUBSIDIARY, CONNECT 2 FIRST INTERNET, LLC, TO PROVIDE BROADBAND INTERNET SERVICES. CONNECT 2 FIRST INTERNET IS CLASSIFIED AS A DISREGARDED ENTITY OF THE COOPERATIVE FOR FEDERAL AND STATE INCOME TAX RETURN PURPOSES. AS SUCH, THE INCOME (LOSS) OF CONNECT 2 FIRST INTERNET, LLC IS SUBJECT TO INCOME TAXES ONLY TO THE EXTENT THAT SUCH INCOME IS DERIVED FROM A TRADE OR BUSINESS UNRELATED TO THE TAX-EXEMPT PURPOSES OF THE COOPERATIVE. ADDITIONALLY, CONNECT 2 FIRST INTERNET, LLC DOES NOT FILE A SEPARATE INCOME TAX RETURN. ALL ITEMS OF INCOME, EXPENSE, GAIN, AND LOSS ARE REPORTED BY THE COOPERATIVE ON ITS FORM 990. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIP: DON CRABBE (PRESIDENT/CEO) AND DAVID LUEBKE (DIRECTOR) BOTH SERVE ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVE CORPORATION (AECC) AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. DON CRABBE (PRESIDENT/CEO) AND RICK LOVE (CHAIRMAN) BOTH SERVE ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVES, INC (AECI) AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. 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. INCREASE IN BONDED INDEBTEDNESS 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 PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS AND ITS OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM AND SUBMIT THEM TO THE PRESIDENT/CEO AND BOARD CHAIRMAN. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT CONSULTANT AS WELL AS A RETENTION AND COMPENSATION PLAN COMMITTEE WHEN DETERMINING THE COMPENSATION OF THE PRESIDENT/CEO. THE CEO USES THE EXPERTISE OF AN INDEPENDENT CONSULTANT AS WELL AS A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT ARKANSAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO ALL MEMBERS OF THE COOPERATIVE PRIOR TO THE ANNUAL MEETING. THE COOPERATIVE'S BYLAWS AND ANNUAL REPORT ARE ALSO AVAILABLE ON THE COOPERATIVE'S WEBSITE. THE COOPERATIVE MAKES A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS AVAILABLE AT THE ANNUAL MEETING AND UPON REQUEST OF ANY MEMBER. 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. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 10% OF A PARTICIPATING EMPLOYEE'S BASE SALARY FOR ALL EMPLOYEES HIRED IN 2006 OR LATER YEARS. FOR ALL EMPLOYEES HIRED PRIOR TO 2006 THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION OF UP TO 2% FOR ALL PARTICIPATING EMPLOYEES. 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. ONLY EMPLOYEES HIRED PRIOR TO 2006 ARE ELIGIBLE TO PARTICIPATE IN THE MULTI-EMPLOYER DEFINED BENEFIT PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) ARE 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 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: ALTHOUGHT THE COOPERATIVE IS NO LONGER AN 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 REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS 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 $16,109,064 LESS: DIRECTOR FEES & BENEFITS REPORTED ON FORMS 1099-NEC (352,032) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (725,480) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,311,063 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 299,306 TOTAL WAGES ACCRUED AND/OR PAID $19,641,921 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TAXES $ 8,170 OTHER DEDUCTIONS 1,165 TRANSMISSION 510,800 SUBSIDIARY PROVISION FOR FEDERAL AND STATE TAXES (133,293) TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 386,842 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 $ 3,460,844 OFFICE SUPPLIES 1,249,798 OUTSIDE SERVICES 166,913 INSURANCES 210,923 EMPLOYEE BENEFITS 819,494 DIRECTORS 443,962 ANNUAL MEETING 73,865 CAPITAL CREDITS 47,025 MISCELLANEOUS GENERAL 1,144,065 FIBER NETWORK STUDY 18,984 REGULATORY COMMISSION 351,655 MAINTENANCE OF GENERAL PLANT 657,060 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 8,644,588 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (352,032) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,248,209) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,616,944) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,427,403 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 18,248,867. PATRONAGE CAPITAL RETIRED -7,509,342. PATRONAGE CAPITAL RETIRED - DISCOUNT 80,307. UNCLAIMED PATRONAGE RETIREMENTS RETAINED UNDER STATE LAW 1,588,152. NET CHANGE IN MEMBERSHIPS 10,990. OTHER COMPREHENSIVE INCOME PROVISION FOR POST-RETIREMENT BENEFIT OBLIGATION 1,435,307. OTHER CHANGE IN EQUITIES 64. CONNECT2FIRST LLC 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 850617500 INTERNET SERVICE PROVIDER AR 907766 3955894 FIRST ELECTRIC COOPERATIVE CORPORATION FIRST ELECTRIC TRUST 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 311586917 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE COOP'S SERVICE AREA AR 501(C)(3) LINE 7 FIRST ELECTRIC COOPERATIVE CORPORATION 1 FIRST ENERGY SERVICES OF ARKANSAS INC PO BOX 5018 JACKSONVILLE AR 72078 621695757 INACTIVE AR FIRST ELECTRIC COOPERATIVE CORPORATION C 1.00000 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 FIRST ELECTRIC TRUST B N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST L N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST N N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST O N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST Q N/A - LESS THAN $50,000