2021-11-15T22:24:45-06:00 2020-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2020-01-01 840185658 DELTA MONTROSE ELECTRIC ASSOCIATION DELT 9702494572 PO BOX 910 MONTROSE CO 81402 ALYSSA CLEMSEN ROBERTS CEO 9702494572 2021-11-15 1 ALYSSA CLEMSEN ROBERTS 999009999 WILLIAM M MILLER P00439459 8067473806 2021-11-15 X 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z ALYSSA CLEMSEN ROBERTS PO BOX 910 MONTROSE CO 81402 73096925 0 X WWW.DMEA.COM X 1938 CO WE ENERGIZE AND SERVE OUR COMMUNITIES. 9 9 109 0 5501485 0 0 0 68403302 66928966 902630 878195 2555363 5291889 71861295 73099050 26286 16670 472321 4748166 9512837 9822027 0 0 0 61753675 112574937 71765119 127161800 96176 -54062750 241037884 218270006 140776942 170834706 100260942 47435300 WE ENERGIZE AND SERVE OUR COMMUNITIES BY ENSURING THE SAFETY OF MEMBERS/EMPLOYEES; PROVIDING COMPETITIVE RATES WITH QUALITY SERVICE AND RELIABILITY; MAXIMIZING EFFICIENCIES; PROMOTING LOCAL ECONOMIC DEVELOPMENT; BEING NIMBLE AS WE INVESTIGATE AND PURSUE ENERGY OPTIONS. 0 0 SALE OF ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 35,007 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 78 0 109 1 1 1 0 0 0 0 71974804 5542798 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X X ANDY PENFIELD CONTROLLER 9702494572 PO BOX 910 MONTROSE CO 81402 X STACIA CANNON DIRECTOR 7.10 1.00 X 15650 0 0 WILLIAM PATTERSON PRESIDENT 6.50 1.00 X X 15525 0 0 DAMON LLOCKHART DIRECTOR 5.40 1.00 X 14250 0 0 JOHN FLEMING DIRECTOR 2.90 1.00 X 13275 0 0 KYLE MARTINEZ DIRECTOR 6.90 1.00 X 12825 0 0 LESLIE CHRISTIAN HAUCK DIRECTOR 7.80 1.00 X 12250 0 0 KENNETH WATSON DIRECTOR 2.70 1.00 X 11925 0 0 BRADLEY R HARDING SECRETARY/TREASURER 4.10 1.00 X X 11575 0 0 ENNO HEUSCHER MAY-DEC DIRECTOR 3.80 1.00 X 8100 0 0 MARK ECKHART JAN DIRECTOR 5.30 1.00 X 900 0 0 JASEN BRONEC CEO 50.00 20.00 X 323185 0 204923 VIRGINIA HARMAN COO 45.00 10.00 X 210917 0 77125 B KENT BLACKWELL CTO 48.00 10.00 X 204116 0 49968 WADE PYNES CFO 46.00 10.00 X 194790 0 53649 JAMES HENEGHAN CHIEF POWER SUPPLY OFFICER 40.00 X 175980 0 72303 ROBERT T HALL OPERATIONS MANAGER 41.00 X 147722 0 71062 CHAD STICKLER SAFETY 40.00 X 136137 0 53327 NATHAN PUDERBAUGH LINEMAN/SERVICE TRUCK 43.00 X 139609 0 36832 KATHY MCKIE HR DIRECTOR 45.00 X 148982 0 22518 MATEUSZ PENA ENGINEERING MANAGER 40.00 X 153821 0 2047 1951534 0 643754 42 0 1 0 LIGHTWORKS FIBER & CONSULTING LLC PO BOX 193 HOTCHKISS CO 81419 FIBER CONSTRUCTION 4708308 IRELAND STAPLETON PRYOR & PASCOE PC 717 17TH ST STE 2800 DENVER CO 80202 LEGAL SERVICES 893153 ASPLUNDH TREE EXPERT CO 1700 SOLUTIONS CENTER CHICAGO IL 60677 TREE TRIMMING 472848 HOLLAND & HART ATTORNEYS PO BOX 17283 DENVER CO 80217 LEGAL SERVICES 452573 COHICK EXCAVATION LLC 20891 IRIS RD AUSTIN CO 81410 FIBER CONSTRUCTION 293013 12 X SALES OF ELECTRICITY 221000 64233451 64233451 SERVICE FEES 221000 1343003 1343003 PATRONAGE DIVIDENDS 221000 703808 703808 RENEWABLE ENERGY CREDITS 221000 550089 550089 ELECTRIC WHEELING 221000 48348 48348 50267 50267 66928966 728840 456045 272795 147230 -2125 149355 149355 149355 ELEVATE FIBER LEASE 517000 2695922 2695922 ELEVATE FIBER LEASE - GRANT 517000 2032418 2032418 DISPATCHING REVENUE 517000 317100 317100 246449 246449 5291889 73099050 66928966 5501485 668599 X 16670 4748166 1683231 5769200 563071 1276332 530193 4763454 7545959 ABANDONMENT LOSS 52685608 PURCHASED POWER 40878132 ADMIN & GENERAL EXPENSE 3061337 DISTRIBUTION EXPENSE 2046793 1593654 127161800 20484999 11047284 7750000 22155708 6425144 132907 17519708 3721097 3674129 8383654 3595156 256370045 93803972 131440143 162566073 -3684915 -5072809 52215607 4412075 6188684 6353246 241037884 218270006 8253433 8046589 98482 1299092 117684648 138875737 2447500 14740379 20165788 140776942 170834706 X 0 0 0 0 100260942 47435300 100260942 47435300 241037884 218270006 X -54062750 1237108 X X 0 1 X 1 0 0 1 X 4093882 4093882 12068357 2025619 10042738 229546959 91778353 137768606 10660847 10660847 162566073 CUSTOMER ENERGY PREPAYMENTS 239750 ACCUMULATED PROVISION FOR RETIREMENT SICK LEAVE 164067 ACCRUED OPERATING TAXES 849701 ACCUMULATED PROVISION FOR PENSION AND BENEFITS 158260 DEFERRED CREDITS - REGULATORY LIABILITY 12750000 DEFERRED CREDITS 6004010 20165788 X PART IV, LINE 2B: PURSUANT TO THE BYLAWS OF THE COOPERATIVE, A PATRON IS DEEMED TO HAVE CONTRIBUTED HIS/HER/ITS PATRONAGE CAPITAL RETIREMENT IF THE RESPECTIVE CHECK OR OTHER FORM OF PAYMENT HAS BEEN UNCLAIMED FOR A PERIOD OF THREE YEARS, AND FOR WHICH PROPER NOTIFICATION TO THE PATRON HAS BEEN MADE. SUCH UNCLAIMED PATRONAGE CAPITAL RETIREMENTS ARE USED TO ESTABLISH A FUND FOR EDUCATIONAL, CHARITABLE, ALTERNATIVE OR ENERGY PURPOSES AND FOR OTHER ACTIVITIES APPROVED BY THE BOARD OF DIRECTORS THAT WILL BENEFIT THE COOPERATIVE'S SERVICE TERRITORY. THE APPLICABLE BOARD POLICY PROVIDES SPECIFIC GUIDANCE REGARDING THE ELIGIBLE GRANTS AND SCHOLARSHIPS. PART X, LINE 2: THE ASSOCIATION HAS ADOPTED 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 ENTITY. THE ASSOCIATION DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE OR APPLICABLE STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART IX HAS BEEN LEFT BLANK. X X 0 0 0 JASEN BRONEC CEO 288332 0 0 0 34853 0 169679 0 35244 0 528108 0 0 0 VIRGINIA HARMAN COO 192127 0 9500 0 9290 0 44897 0 32228 0 288042 0 0 0 B KENT BLACKWELL CTO 186815 0 9000 0 8301 0 23344 0 26624 0 254084 0 0 0 WADE PYNES CFO 176945 0 8800 0 9045 0 22707 0 30942 0 248439 0 0 0 JAMES HENEGHAN CHIEF POWER SUPPLY OFFICER 166135 0 0 0 9845 0 54320 0 17983 0 248283 0 0 0 ROBERT T HALL OPERATIONS MANAGER 140446 0 0 0 7276 0 65341 0 5721 0 218784 0 0 0 CHAD STICKLER SAFETY 125762 0 0 0 10375 0 53327 0 0 0 189464 0 0 0 NATHAN PUDERBAUGH LINEMAN/SERVICE TRUCK 137115 0 0 0 2494 0 36827 0 5 0 176441 0 0 0 KATHY MCKIE HR DIRECTOR 143090 0 4000 0 1892 0 16875 0 5643 0 171500 0 0 0 MATEUSZ PENA ENGINEERING MANAGER 145570 0 7972 0 279 0 0 0 2047 0 155868 0 0 0 PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. JASEN BRONEC: TOTAL REPORTED IN COLUMN C $ 169,679 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (169,679) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 52,013 EXPENSE TO THE COOPERATIVE $ 52,013 VIRGINIA HARMAN: TOTAL REPORTED IN COLUMN C $ 44,897 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,897) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 34,627 EXPENSE TO THE COOPERATIVE $ 34,627 JAMES HENEGHAN: TOTAL REPORTED IN COLUMN C $ 54,320 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,320) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 26,463 EXPENSE TO THE COOPERATIVE $ 26,463 ROBERT T. HALL: TOTAL REPORTED IN COLUMN C $ 65,341 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,341) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 25,687 EXPENSE TO THE COOPERATIVE $ 25,687 CHAD STICKLER: TOTAL REPORTED IN COLUMN C $ 53,327 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (53,327) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 22,102 EXPENSE TO THE COOPERATIVE $ 22,102 NATHAN PUDERBAUGH: TOTAL REPORTED IN COLUMN C $ 36,827 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,827) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 17,158 EXPENSE TO THE COOPERATIVE $ 17,158 FORM 990, PART I, LINE 5: THE NUMBER OF EMPLOYEES REPORTED ON LINE 5 REPRESENTS THE NUMBER OF W-2'S ISSUED BY THE COOPERATIVE AND NOT NECESSARILY THE NUMBER OF EMPLOYEES NORMALLY EMPLOYED BY THE COOPERATIVE AND REPORTED TO RUS. 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 TO ELECT THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT AND PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS CONDUCT AN ANNUAL REVIEW OF THE CONFLICT OF INTEREST POLICY, AND OBTAINS THE SIGNATURE OF EACH BOARD MEMBER ACKNOWLEDGING THE REVIEW OF THE POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM COOPERATIVES LOCATED IN COLORADO AND THE NATION. THE MANAGEMENT COMPENSATION PLAN IS APPROVED BY THE BOARD OF DIRECTORS. THE BOARD AND THE CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT COLORADO 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. THIS IS DONE IN COMPLIANCE WITH BOARD POLICY 10, SECTIONS 1-4. ANNUALLY THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FINALLY, THE COOPERATIVE'S BYLAWS AND FINANCIAL STATEMENTS CAN BE FOUND ON THEIR WEBSITE, WWW.DMEA.COM. 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 AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES. FORM 990, PART VIII, LINE 2B: 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 ASSOCIATION ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (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 THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES 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 $ 7,452,431 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (116,275) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (457,968) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 83,443 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 1,843,805 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,095,979 TOTAL WAGES ACCRUED AND/OR PAID $ 9,901,415 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,584,923 OFFICE SUPPLIES 1,589,458 OUTSIDE SERVICES 561,603 INSURANCES & DAMAGES 85,887 DIRECTORS 147,003 ADVERTISING 29,558 PENSION & BENEFITS 155,758 MAINTENANCE OF GENERAL PLANT 590,655 INFORMATION TECHNOLOGY 486,108 DUPLICATE CHARGES (CREDIT) (112,069) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,118,911 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (116,275) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,084,415) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (856,884) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,061,337 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: DISPATCHING & CONSUMER EXPENSES $ 137,507 ECONOMIC DEVELOPMENT 5,000 GEOTHERMAL & HYDRO 528,507 SALES 44,437 TAXES 684,830 TRANSMISSION 113,036 OTHER DEDUCTIONS 80,337 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,593,654 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 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 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. FORM 990, PART IX, LINE 1: 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. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,748,166. PATRONAGE CAPITAL RETIRED - TOTAL -151,091. PATRONAGE CAPITAL RETIRED - DISCOUNT 60,345. EQUITY METHOD INCOME (LOSS) -1,387,894. FIBER LEASE BROADBAND GRANT - UBI -2,032,418. DMEA UTILITIES SERVICES LLC PO BOX 910 MONTROSE CO 81402 841556992 ALTERNATIVE ENERGY AND BROADBAND INVESTMENTS CO DELTA MONTROSE ELECTRIC ASSOCIATION C 8189158 16233150 1.00000 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 1 DMEA UTILITIES SERVICES LLC A 3151967 LINE OF CREDIT & FIBER LEASE DMEA UTILITIES SERVICES LLC O 326523 LABOR DISTRIBUTION DMEA UTILITIES SERVICES LLC S 619903 LOAN PRINCIPAL PAYMENTS DMEA UTILITIES SERVICES LLC R 1032560 INVOICES AND WORKORDERS