2020-11-09T09:31:13-06:00 2019-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2019-01-01 710056715 FIRST ELECTRIC COOPERATIVE CORPORATION FIRS 5019824545 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 MELISSA WOOD CFO 5019824545 2020-11-07 1 WILLIAM M MILLER P00439459 8067473806 2020-11-07 X 65.182.80.152 2020-11-07 14:28:55 CS P 954CA8D01CFBC3DD23DC63FC91DC923EB9CBFAF9 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2019 2021-04-22 16:20:28Z DON CRABBE 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 194657800 0 X WWW.FIRSTELECTRIC.COOP X 1937 AR TO PROVIDE QUALITY, RELIABLE AND AFFORDABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 247 0 776 0 0 0 197593670 189268380 3577100 4107064 1171838 1108788 202342608 194484232 15244 36338 21622494 16907494 22230819 22305142 0 0 0 158474051 155235258 202342608 194484232 0 0 494344521 498593823 231939574 226765510 262404947 271828313 FIRST ELECTRIC, IMPROVING QUALITY OF LIFE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 95,444 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 0 1 1 0 0 1 212 0 247 1 0 0 0 0 0 186588055 8986952 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 DON CRABBE PRESIDENT/CEO 49.00 X 930637 0 93916 JERRY DRISKILL VP - OPERATIONS 45.00 X 181849 0 111636 DANIEL RIEDEL VP - ENGINEERING 45.00 X 186020 0 97465 KAREN SOUTHERLAND DISTRICT MANAGER 45.00 X 152052 0 127892 RANDY EVERETT VP - OPERATIONS 45.00 X 153141 0 99153 ASHLEY GARRINGER VP - ADMINISTRATION 45.00 X 167474 0 63010 MELISSA WOOD CFO 45.00 X 182964 0 37607 JAMES BRANSCUM DISTRICT MANAGER 45.00 X 139327 0 76341 THEODORE DEWEESE JR SERVICEMAN 45.00 X 154686 0 48584 RANDAL EVANS LINE TECH 40.00 X 137684 0 62966 TONYA SEXTON VP - MARKETING 45.00 X 159520 0 24289 LLOYD SCIFRES LINE TECH 40.00 X 128935 0 43285 RICK LOVE CHAIRMAN 12.10 X X 41319 0 0 TRACY HUDSPETH VICE CHAIRMAN 9.30 X X 38919 0 0 KARISSA RUSHING SECRETARY/TREASURER 10.60 X X 36519 0 2400 DAVID LUEBKE DIRECTOR 12.80 X 38919 0 0 TODD PROTHRO DIRECTOR 13.00 X 38919 0 0 ROBERT HILL DIRECTOR 8.40 X 38773 0 0 TOM HASTY JR DIRECTOR 8.70 X 38747 0 0 ROBERT MAERTENS DIRECTOR 11.50 X 19649 0 19000 LARRY WOOD DIRECTOR 7.60 X 38633 0 0 3004686 0 907544 33 0 1 0 UTILITY LINES CONSTRUCTION INC PO BOX 827464 PHILADELPHIA PA 19182 POWERLINE CONSTRUCTION 3047257 APPLE TREE SERVICE INC 316 N CEDAR STREET NORTH LITTLE ROCK AR 72114 RIGHT OF WAY CLEARING 2032084 ASPLUNDH TREE EXPERT CO PO BOX 827464 PHILADELPHIA PA 19182 RIGHT OF WAY CLEARING 1866793 PENSKE TRUCK LEASING CO LP PO BOX 827380 PHILADELPHIA PA 19182 FLEET MANAGEMENT SERVICE 1243874 WEST TREE SERVICE INC 6300 FORBING ROAD LITTLE ROCK AR 72209 RIGHT OF WAY CLEARING 873005 14 X SALES OF ELECTRICITY 221000 184692705 184692705 PATRONAGE DIVIDENDS 221000 2896533 2896533 SERVICE FEES 221000 1539727 1539727 SURGE PROTECTOR REVENUE 221000 86252 86252 OTHER PROGRAM REVENUE 221000 53163 53163 189268380 3984784 3984784 2096 2096 776 0 776 776 776 273318 151038 122280 122280 122280 20734 22530 -1796 -1796 POLE ATTACHMENT INCOME 221000 1107712 1107712 1107712 194484232 189266584 776 5216872 X 36338 16907494 2840478 12281849 2647932 3532872 1002011 8776003 15348472 PURCHASED POWER 111441218 DISTRIBUTION EXPENSE 14313195 CONSUMER EXPENSE 2576593 ADMIN & GENERAL EXPENSE 2479242 300535 194484232 4188380 4272274 12268098 18358685 13539029 12837396 256739 216574 14782985 13415666 535386408 182131799 350456106 353254609 88415788 86636627 10437396 9601992 494344521 498593823 5408551 6116450 189698304 181749193 36832719 38899867 231939574 226765510 X 754070 763920 0 0 261650877 271064393 262404947 271828313 494344521 498593823 X 0 9423366 X X 0 1 X 1 0 4554065 4554065 22593334 7790145 14803189 503411031 174341654 329069377 4827978 4827978 353254609 PATRONAGE CAPITAL - CFC 7957245 C PATRONAGE CAPITAL - AECC 59852388 C PATRONAGE CAPITAL - AECI 5799191 C PATRONAGE CAPITAL - NISC 516770 C PATRONAGE CAPITAL - NRTC 62038 C PATRONAGE CAPITAL - CRC 41843 C CAPITAL TERM CERTIFICATES - CFC 10870414 C ACCUMULATED DIVIDENDS - ARESIT 206817 C MEMBERSHIPS 3200 C ENERGY EFFICIENCY LOANS 19320 C EXECUTIVE COMPENSATION OFFSET 934808 C IRRIGATION LINE EXTENSION 372593 C 86636627 CONSUMER DEPOSITS AND PREPAYMENTS 5445882 ACCUMULATED PROVISION FOR PENSIONS AND OTHER POST-RETIREMENT BENEFITS 27606045 DEFERRED CREDITS 1900940 ACCRUED PROPERTY TAXES 3391000 ACCRUED OPERATING TAXES - OTHER 556000 38899867 X 194486566 2334 2334 194484232 0 194484232 177579072 2334 2334 177576738 16907494 16907494 194484232 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 2D - OTHER ADJUSTMENTS: GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS 2,334. PART XII, LINE 2D - OTHER ADJUSTMENTS: GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS 2,334. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 16,907,494. 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". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. 0 FIRST ELECTRIC TRUST 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 311586917 501(C)(3) 16328 TO PAY FOR DIRECT OPERATING EXPENSES FOR THE TRUST. NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP 20701 COOPERATIVE WAY DULLES VA 20166 520891669 501(C)(4) 19909 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 487748 0 745 0 442144 0 69255 0 24661 0 1024553 0 250000 0 JERRY DRISKILL VP - OPERATIONS 173404 0 3607 0 4838 0 87422 0 24214 0 293485 0 0 0 DANIEL RIEDEL VP - ENGINEERING 175173 0 3314 0 7533 0 89822 0 7643 0 283485 0 0 0 KAREN SOUTHERLAND DISTRICT MANAGER 146222 0 2992 0 2838 0 110728 0 17164 0 279944 0 0 0 RANDY EVERETT VP - OPERATIONS 149136 0 2993 0 1012 0 77237 0 21916 0 252294 0 0 0 ASHLEY GARRINGER VP - ADMINISTRATION 163680 0 3135 0 659 0 42103 0 20907 0 230484 0 0 0 MELISSA WOOD CFO 174766 0 3204 0 4994 0 18132 0 19475 0 220571 0 0 0 JAMES BRANSCUM DISTRICT MANAGER 126575 0 3830 0 8922 0 54937 0 21404 0 215668 0 0 0 THEODORE DEWEESE JR SERVICEMAN 148899 0 3303 0 2484 0 24314 0 24270 0 203270 0 0 0 RANDAL EVANS LINE TECH 133161 0 3667 0 856 0 39352 0 23614 0 200650 0 0 0 TONYA SEXTON VP - MARKETING 155644 0 2857 0 1019 0 15680 0 8609 0 183809 0 0 0 LLOYD SCIFRES LINE TECH 125551 0 2883 0 501 0 20772 0 22513 0 172220 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 $338,825. OF THIS AMOUNT, $250,000 WAS ACCRUED IN PRIOR YEARS. 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 DEFINED BENEFIT PLAN $ 63,655 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,600 TOTAL REPORTED IN COLUMN C $ 69,255 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (63,655) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 186,009 EXPENSE TO THE COOPERATIVE $ 191,609 JERRY DRISKILL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,797 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,625 TOTAL REPORTED IN COLUMN C $ 87,422 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,797) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 65,831 EXPENSE TO THE COOPERATIVE $ 69,456 DANIEL RIEDEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 86,300 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,522 TOTAL REPORTED IN COLUMN C $ 89,822 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (86,300) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 64,310 EXPENSE TO THE COOPERATIVE $ 67,832 KAREN SOUTHERLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 107,722 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,006 TOTAL REPORTED IN COLUMN C $ 110,728 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (107,722) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 54,481 EXPENSE TO THE COOPERATIVE $ 57,487 RANDY EVERETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,143 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,094 TOTAL REPORTED IN COLUMN C $ 77,237 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,143) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,006 EXPENSE TO THE COOPERATIVE $ 60,100 ASHLEY GARRINGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,733 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,370 TOTAL REPORTED IN COLUMN C $ 42,103 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,733) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 61,824 EXPENSE TO THE COOPERATIVE $ 65,194 MELISSA WOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,132 TOTAL REPORTED IN COLUMN C $ 18,132 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 18,132 JAMES BRANSCUM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,304 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,633 TOTAL REPORTED IN COLUMN C $ 54,937 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,304) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,697 EXPENSE TO THE COOPERATIVE $ 51,330 THEODORE DEWEESE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,582 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,732 TOTAL REPORTED IN COLUMN C $ 24,314 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,582) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,007 EXPENSE TO THE COOPERATIVE $ 33,739 RANDAL EVANS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,537 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,815 TOTAL REPORTED IN COLUMN C $ 39,352 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,537) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,464 EXPENSE TO THE COOPERATIVE $ 35,279 TONYA SEXTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 15,860 TOTAL REPORTED IN COLUMN C $ 15,860 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 15,860 LLOYD SCIFRES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,102 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,670 TOTAL REPORTED IN COLUMN C $ 20,772 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,102) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,573 EXPENSE TO THE COOPERATIVE $ 32,243 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 $15,122,327 LESS: DIRECTOR FEES & BENEFITS REPORTED ON FORMS 1099-MISC (351,797) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (527,076) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,462,503 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 385,654 TOTAL WAGES ACCRUED AND/OR PAID $18,091,611 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TAXES $ 7,985 OTHER DEDUCTIONS 952 TRANSMISSION 291,598 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 300,535 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 2019 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 $ 3,128,197 OFFICE SUPPLIES 899,517 OUTSIDE SERVICES 121,955 INSURANCES 190,545 EMPLOYEE BENEFITS 674,949 DIRECTORS 516,213 ANNUAL MEETING 65,539 CAPITAL CREDITS 55,587 MISCELLANEOUS GENERAL 392,465 REGULATORY COMMISSION 375,268 MAINTENANCE OF GENERAL PLANT 577,948 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,998,183 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (351,797) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,703,667) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,463,477) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,479,242 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 16,907,494. PATRONAGE CAPITAL RETIRED -9,746,425. PATRONAGE CAPITAL RETIRED - DISCOUNT 35,010. UNCLAIMED PATRONAGE RETIREMENTS RETAINED UNDER STATE LAW 1,748,551. NET CHANGE IN MEMBERSHIPS 9,850. OTHER COMPREHENSIVE INCOME PROVISION FOR POST-RETIREMENT BENEFIT OBLIGATION 468,881. OTHER CHANGE IN EQUITIES 5. 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