2020-11-16T10:20:06-06:00 2019-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2019-01-01 860082366 TRICO ELECTRIC COOPERATIVE INC TRIC 5207442944 PO BOX 930 MARANA AZ 85653 VINCENT NITIDO CEO/GENERAL MANAGER 5207442944 2020-11-06 1 WILLIAM M MILLER P00439459 8067473806 2020-11-06 X 65.182.80.152 2020-11-06 10:56:58 CS P 954CA8D01CFBC3DD23DC63FC91DC923EB9CBFAF9 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2019 2021-04-22 16:20:28Z VINCENT NITIDO PO BOX 930 MARANA AZ 85653 97454989 0 X WWW.TRICO.COOP X 1945 AZ TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 149 0 0 0 0 0 101023711 96280653 466791 762073 501462 412263 101991964 97454989 65057 65572 8760828 8708984 10981653 11188912 0 0 0 82196535 77579495 102004073 97542963 -12109 -87974 254474873 251955624 140601343 131547747 113873530 120407877 DEDIATED TO ENHANCING THE LIVES OF OUR MEMBERS, EMPLOYEES AND COMMUNITIES BY PROVIDING SAFE RELIABLE ENERGY, SERVICE AND SUPPORT IN AN ENVIRONMENTALLY RESPONSIBLE AND COST-EFFECTIVE MANNER. 0 0 SALE OF ELECTRIC POWER TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 48,298 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 57 0 149 1 1 1 0 0 0 0 94996589 1417037 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 AZ X BRIAN FICKETT MANAGER OF FINANCE & ACCOUNTING 5207442944 8600 W TANGERINE RD MARANA AZ 85658 X VINCENT NITIDO CEO/GENERAL MANAGER 50.00 X 443881 0 139675 KAREN CATHERS CHIEF OPERATING OFFICER 50.00 X 194071 0 82896 JANICE RAST CHIEF INFORMATION OFFICER 50.00 X 166163 0 94450 GARY KELLY MANAGER OF ENGINEERING 50.00 X 140378 0 60842 JEREMY KONSKI JOURNEYMAN LINEMAN 58.20 X 146549 0 34841 CARTER JOHNSON CREW LEADER 51.90 X 132881 0 46883 BRIAN FICKETT MANAGER OF FINANCE & ACCOU 50.00 X 114429 0 51574 BRIAN JACKSON CREW LEADER 49.00 X 120945 0 42155 CRISTINA CASTRO-HARRINGTON MANAGER OF HUMAN RESOURCES 50.00 X 127729 0 32042 BARBARA STOCKWELL DIRECTOR 5.70 1.00 X 16704 0 0 MARSHA THOMPSON VICE PRESIDENT 5.50 1.00 X X 15921 0 0 L NICK BUCKELEW TREASURER 5.10 1.00 X X 15399 0 0 LARRY HINCHLIFFE PRESIDENT 4.90 1.00 X X 14877 0 0 BRAD DESPAIN DIRECTOR 4.70 1.00 X 14094 0 0 JAMES R PYERS ASSISTANT SECRETARY/TREASURER 3.60 1.00 X X 10962 0 0 DON BLACK DIRECTOR 4.10 1.00 X 10701 0 0 1685684 0 585358 36 0 1 0 LANDIS GYR TECHNOLOGIES PO BOX 78000 DETROIT MI 48278 LABOR TO INTSTALL METERS 1216468 CH GUERNSY 5555 N GRAND BLVD OKLAHOMA CITY OK 73112 RATES/COST OF SERVICE 254066 ELECTRICAL CONSULTANTS 3521 GABEL ROAD BILLINGS MT 59102 ENGINEERING 246677 MARCH COUNSEL LLC 1201 CONNECTICUT AVE NW 6TH FLOOR WASHINGTON DC 20036 LEGAL 232755 ASPLUNDH PO BOX 31001 PASADENA CA 91110 TREE TRIMMING 182394 5 X SALES OF ELECTRICITY 221000 92882632 92882632 PATRONAGE DIVIDENDS 221000 2352814 2352814 SERVICE FEES 221000 690216 690216 ELECTRICITY WHEELING 221000 354991 354991 96280653 762073 762073 POLE ATTACHMENT INCOME 221000 412263 412263 412263 97454989 96280653 0 1174336 X 65572 8708984 1385797 6792855 1500986 954614 554660 4748638 11223786 PURCHASED POWER 52405345 DISTRIBUTION EXPENSE 4115157 ADMIN & GENERAL EXPENSE 3244109 CONSUMER EXPENSE 1499787 342673 97542963 X 3964974 4733109 2000000 5000000 20260732 3874931 3645361 4354183 3844814 2999534 276993365 97096766 173133479 179896599 46263902 49301623 1361611 1795645 254474873 251955624 7944907 7484257 126280343 118570379 6376093 5493111 140601343 131547747 X 0 0 7036536 7065199 106836994 113342678 113873530 120407877 254474873 251955624 X -87974 1280180 5342141 X X 0 1 X 1 0 1400728 1400728 11155992 3931880 7224112 258788536 93164886 165623650 5648109 5648109 179896599 PATRONAGE CAPITAL - CFC 843413 C PATRONAGE CAPITAL - AEPCO 44861759 C PATRONAGE CAPITAL - NISC 281375 C PATRONAGE CAPITAL - COBANK 376898 C PATRONAGE CAPITAL - NRTC 16351 C PATRONAGE CAPITAL - FEDERATED 369306 C MEMBERSHIPS IN ASSOC. ORGS. 3235 C GRAND CANYON STATE ELECTRIC BUILDING FUND 133833 C INVESTMENT IN SUBSIDIARY COMPANIES 1216323 C CAPITAL TERM CERTIFICATES 1081933 C OTHER INVESTMENTS 117197 C 49301623 CONSUMER DEPOSITS 1953386 ACCRUED OPERATING TAXES 1797795 PENSION RESERVES - DEFERRED COMPENSATION 83091 DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION 327637 DEFERRED CREDITS - ENERGY CONSERVATION PROGRAMS 72836 DEFERRED CREDITS - UNCLAIMED ACCOUNTS 1258366 5493111 X PART X, LINE 2: THE COOPERATIVE ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALL 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 IS IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE CAPITAL 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 CAPITAL THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE CAPITAL IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE CAPITAL 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 TRICO CHARITABLE TRUST PO BOX 930 MARANA AZ 85653 860794164 501(C)(3) 50000 POWER GRANT CONTRIBUTION. 1 PART II: 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. X X 1 0 0 VINCENT NITIDO CEO/GENERAL MANAGER 407600 0 1692 0 34589 0 110701 0 28974 0 583556 0 0 0 KAREN CATHERS CHIEF OPERATING OFFICER 192083 0 1050 0 938 0 68574 0 14322 0 276967 0 0 0 JANICE RAST CHIEF INFORMATION OFFICER 162963 0 1704 0 1496 0 80938 0 13512 0 260613 0 0 0 GARY KELLY MANAGER OF ENGINEERING 132417 0 829 0 7132 0 38623 0 22219 0 201220 0 0 0 JEREMY KONSKI JOURNEYMAN LINEMAN 145663 0 741 0 145 0 12454 0 22387 0 181390 0 0 0 CARTER JOHNSON CREW LEADER 131228 0 779 0 874 0 36523 0 10360 0 179764 0 0 0 BRIAN FICKETT MANAGER OF FINANCE & ACCOU 113102 0 781 0 546 0 26054 0 25520 0 166003 0 0 0 BRIAN JACKSON CREW LEADER 119978 0 780 0 187 0 21421 0 20734 0 163100 0 0 0 CRISTINA CASTRO-HARRINGTON MANAGER OF HUMAN RESOURCES 74401 0 424 0 52904 0 21346 0 10696 0 159771 0 0 0 PART I, LINE 4A DURING THE YEAR, CRISTINA CASTRO-HARRINGTON RECEIVED SEVERANCE OF $43,877. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. VINCENT NITIDO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 99,501 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,200 TOTAL REPORTED IN COLUMN C $ 110,701 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (99,501) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,020 EXPENSE TO THE COOPERATIVE $ 84,220 KAREN CATHERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,777 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,797 TOTAL REPORTED IN COLUMN C $ 68,574 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,777) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,631 EXPENSE TO COOPERATIVE $ 54,428 JANICE RAST: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,108 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,830 TOTAL REPORTED IN COLUMN C $ 80,938 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,108) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,829 EXPENSE TO COOPERATIVE $ 47,659 GARY KELLY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,115 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,508 TOTAL REPORTED IN COLUMN C $ 38,623 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,115) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,976 EXPENSE TO COOPERATIVE $ 40,484 JEREMY KNOSKI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,570 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,884 TOTAL REPORTED IN COLUMN C $ 12,454 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,570) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,175 EXPENSE TO COOPERATIVE $ 24,059 CARTER JOHNSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,300 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,223 TOTAL REPORTED IN COLUMN C $ 36,523 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,300) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,944 EXPENSE TO COOPERATIVE $ 26,167 BRIAN FICKEET: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,101 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,953 TOTAL REPORTED IN COLUMN C $ 26,054 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,101) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,923 EXPENSE TO COOPERATIVE $ 34,876 BRIAN JACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,076 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,345 TOTAL REPORTED IN COLUMN C $ 21.421 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,076) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,530 EXPENSE TO COOPERATIVE $ 26,875 CRISTINA CASTRO-HARRINGTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,580 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,766 TOTAL REPORTED IN COLUMN C $ 21,346 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,580) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,728 EXPENSE TO COOPERATIVE $ 32,494 SCOTT RAST FAMILY RELATIONSHIP 123855 SCOTT RAST RECEIVED COMPENSATION AS AN EMPLOYEE OF THE COOPERATIVE. HE AND JANICE RAST, EMPLOYEE OFFICER OF THE COOPERATIVE, ARE FAMILY MEMBERS PER THE 990 DEFINITION OF FAMILY MEMBERS. 0 CHELSEA MORRISON FAMILY RELATIONSHIP 52697 CHELSEA MORRISON RECEIVED COMPENSATION AS AN EMPLOYEE OF THE COOPERATIVE. SHE AND JANICE RAST, EMPLOYEE OFFICER OF THE COOPERATIVE, ARE FAMILY MEMBERS PER THE 990 DEFINITION OF FAMILY MEMBERS. 0 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 LOSS OF $87,974, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE AND EQUITY METHOD INCOME. 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. EQUITY METHOD INCOME IS RECORDED ON THE COOPERATIVE'S BOOKS AND INCLUDED IN NET MARGINS. U.S. GAAP REQUIRES THE COOPERATIVE TO RECORD ON ITS BOOKS EQUITY METHOD INCOME FROM ITS WHOLLY OWNED SUBSIDIARY. EQUITY METHOD INCOME IS NOT INCOME FOR IRS FORM 990 PURPOSES AND AS SUCH HAS BEEN REPORTED AS AN OTHER CHANGE IN NET ASSETS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/19 $ 1,168,984 LESS: UNBILLED REVENUE 12/31/18 (1,280,179) (A) - NET DECREASE IN UNBILLED REVENUE $ (111,195) (B) - ADD: EQUITY METHOD INCOME(LOSS) FROM SUBSIDIARY $ 23,221 NET LOSS ON PAGE 1, PART I, LINE 19 (A + B) $ (87,974) 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 PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS REVIEWED AND UPDATED, AS NEEDED, BASED ON A SCHEDULE OF POLICY REVIEW OF UP TO 3 PER MONTH AT THE MONTHLY REGULAR BOARD MEETING, AND ANY TIME THAT A POTENTIAL OR ACTUAL CONFLICT OF INTEREST COMES TO THE ATTENTION OF ANY BOARD MEMBER OR THE CEO/GENERAL MANAGER. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE CEO/GENERAL MANAGER. THE CEO/GENERAL MANAGER UTILIZES INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. 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 BY APPOINTMENT AT THE COOPERATIVE'S OFFICE. ANNUALLY THE COOPERATIVE PROVIDES A CONDENSED SUMMARY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. ADDITIONALLY THE BYLAWS OF THE COOPERATIVE ARE MADE AVAILABLE VIA ITS 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 ALL PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH INSURANCE TO ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF 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. 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 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 MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE. 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, 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 $ 8,178,652 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (98,658) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (368,595) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 737 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,876,967 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,030,957 TOTAL WAGES ACCRUED AND OR PAID $11,620,060 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 2,855,857 OFFICE SUPPLIES 727,318 OUTSIDE SERVICES 621,880 INJURIES & DAMAGES 334,382 EMPLOYEE PENSIONS & BENEFITS 40,039 ANNUAL MEETING 45,539 MISCELLANEOUS GENERAL 1,114,942 REGULATORY COMMISSION 173,566 MAINTENANCE OF GENERAL PLANT 1,158,263 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 7,071,786 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (98,658) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,592,904) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,136,115) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,244,109 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 24E: ALL OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 184,306 TRANSMISSION 152,271 TAXES 6,096 TOTAL ALL OTHER EXPENSES PER FORM 990, LINE 24E $ 342,673 FORM 990, PART XI, LINE 8: DURING 2019, THE COOPERATIVE CHANGED ITS METHOD OF REVENUE RECOGNITION TO ACCRUE REVENUE EARNED, BUT NOT YET BILLED AT THE END OF EACH PERIOD. THE COOPERATIVE BELIEVES THAT THE NEW REVENUE RECOGNITION METHOD MORE ACCURATELY REFLECTS PERIODIC RESULTS OF OPERATIONS AND ITS ACCRUED REVENUE POSITION AT YEAR END. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 8,708,984. PATRONAGE CAPITAL RETIRED - TOTAL -3,372,285. GAIN ON RETIRED CAPITAL CREDITS 28,663. EQUITY METHOD INCOME(LOSS) FROM SUBSIDIARY -23,221. 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. TRICO FOUNDATION PO BOX 930 MARANA AZ 85653 942941045 TO PROVIDE COLLEGE SCHOLARSHIPS TO MEMEBERS OF THE COOPERATIVE. AZ 501(C)3 PF TRICO ELECTRIC COOPERATIVE 1 TRICO ELECTRIC CHARITABLE TRUST PO BOX 930 MARANA AZ 85653 860794164 TO PROVIDE CHARITABLE GRANTS TO RESIDENTS OF THE COOPERATIVE'S SERVICE AREA. AZ 501(C)3 LINE 7 TRICO ELECTRIC COOPERATIVE 1 AVION SOLAR LLC PO BOX 930 MARANA AZ 85653 832453793 SOLAR ENERGY AZ TRICO ELECTRIC COOPERATIVE INC 1420757 11873553 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 TRICO FOUNDATION O N/A - LESS THAN $50,000 TRICO ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000