2018-11-14T12:51:29-06:00 2017-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2017-01-01 710056715 FIRST ELECTRIC COOPERATIVE CORPORATION FIRS 5019824545 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 MELISSA WOOD CFO 5019824545 2018-11-13 1 WILLIAM M MILLER P00439459 8067473806 2018-11-13 X 65.182.80.152 2018-11-13 15:12:02 CS P B203D40F61B6B7195294B4E759D44885CEF08510 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2017 2019-02-21 02:37:17Z DON CRABBE 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 188132832 0 X WWW.FIRSTELECTRIC.COOP X 1937 AR TO PROVIDE QUALITY, RELIABLE AND AFFORDABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 8 8 250 0 776 0 0 0 182341147 183439240 3353846 3283561 1069361 1219911 186764354 187942712 16277 20203 16187624 12866137 20937236 21329854 0 0 0 149623217 153726518 186764354 187942712 0 0 490010838 489619222 247196440 241929980 242814398 247689242 FIRST ELECTRIC, IMPROVING QUALITY OF LIFE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 93,335 ACTIVE SERVICES AT YEAR END. ALL SERVICES THAT WERE ACTIVE DURING THE YEAR WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 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 1 290 0 250 1 0 0 0 0 0 179852373 7994948 0 X 8 8 1 0 0 0 1 1 1 1 0 1 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 ROBERT HILL CHAIRMAN 6.70 X X 43385 0 0 LARRY WOOD VICE CHAIRMAN 6.70 X X 47592 0 0 ROBERT MAERTENS SECRETARY/TREASURER 6.00 X X 27100 0 12000 JIMMIE CROCKETT DIRECTOR (JAN-JULY) 1.10 X 53789 0 4800 TOM HASTY JR DIRECTOR 5.70 X 42456 0 0 TRACY HUDSPETH DIRECTOR 5.70 X 43075 0 0 RICK LOVE DIRECTOR 6.80 X 37330 0 0 DAVID LUEBKE DIRECTOR 6.70 X 46379 0 0 KARISSA RUSHING DIRECTOR 6.10 X 35807 0 2400 DON CRABBE PRESIDENT/CEO 49.00 X 602482 0 199341 BRUCE ANDREWS CFO 40.00 X 242874 0 155664 BRAD FORD COO 40.00 X 218111 0 74302 JERRY DRISKILL VP - OPERATIONS 45.00 X 163190 0 86111 DANIEL RIEDEL VP - ENGINEERING 40.00 X 155252 0 72998 KAREN SOUTHERLAND DISTRICT MANAGER 45.00 X 145866 0 162984 TONYA SEXTON VP - MARKETING 45.00 X 143186 0 20636 THEODORE DEWEESE JR SERVICEMAN 45.00 X 138251 0 41123 JOHN HAWKINS CREW CHIEF 45.00 X 130825 0 28687 JAMES BRANSCUM DISTRICT MANAGER 45.00 X 123649 0 70278 2440599 0 931324 24 0 1 0 THE FISHEL COMPANY INC DEPARTMENT L-2478 COLUMBUS OH 43260 POWERLINE CONSTRUCTION 2322087 ASPLUNDH TREE EXPERT CO PO BOX 827464 PHILADELPHIA PA 19182 RIGHT OF WAY CLEARING 2280057 APPLE TREE SERVICE INC 316 N CEDAR STREET NORTH LITTLE ROCK AR 72114 RIGHT OF WAY CLEARING 2032034 UTILITY LINES CONSTRUCTION INC PO BOX 827464 PHILADELPHIA PA 19182 POWERLINE CONSTRUCTION 2005574 CLARK CONTRACTORS LLC 15825 CANTRELL ROAD LITTLE ROCK AR 72223 GENERAL CONTRACTOR 459532 13 X SALES OF ELECTRICITY 221000 177695144 177695144 PATRONAGE DIVIDENDS 221000 3904471 3904471 SERVICE FEES 221000 1636452 1636452 SURGE PROTECTOR REVENUE 221000 155577 155577 OTHER PROGRAM REVENUE 221000 47596 47596 183439240 3171486 3171486 3923 3923 27000 776 0 0 27000 776 27776 776 27000 235575 123500 112075 112075 112075 65357 66620 -1263 -1263 POLE ATTACHMENT INCOME 221000 1189475 1189475 1189475 187942712 183437977 776 4503959 X 20203 12866137 2366438 11935148 2497024 3565636 965608 9275671 15261026 PURCHASED POWER 110212611 DISTRIBUTION EXPENSE 13878355 CONSUMER EXPENSE 2402055 ADMIN & GENERAL EXPENSE 2257756 439044 187942712 3597692 5793769 8588989 5328471 12731864 13060995 171862 267391 17645225 15836060 512986467 163550569 348647239 349435898 89385441 89015062 9242526 10881576 490010838 489619222 7095458 6958121 206079442 198256177 34021540 36715682 247196440 241929980 X 736455 745665 0 0 242077943 246943577 242814398 247689242 490010838 489619222 X 0 4874844 X X 0 1 X 1 0 4617209 4617209 22696197 6672268 16023929 480387056 156878301 323508755 5286005 5286005 349435898 PATRONAGE CAPITAL - CFC 7272068 C PATRONAGE CAPITAL - AECC 62180672 C PATRONAGE CAPITAL - AECI 5896859 C PATRONAGE CAPITAL - NISC 474525 C PATRONAGE CAPITAL - FEDERATED 88854 C PATRONAGE CAPITAL - NRTC 62039 C PATRONAGE CAPITAL - CRC 37565 C CAPITAL TERM CERTIFICATES - CFC 11308155 C ACCUMULATED DIVIDENDS - ARESIT 274133 C MEMBERSHIPS 3200 C ENERGY EFFICIENCY LOANS 32238 C EXECUTIVE COMPENSATION OFFSET 812891 C IRRIGATION LINE EXTENSION 571863 C 89015062 CONSUMER DEPOSITS AND PREPAYMENTS 5303449 ACCUMULATED PROVISION FOR PENSIONS AND OTHER POST-RETIREMENT BENEFITS 26231642 DEFERRED CREDITS 1494528 ACCRUED PROPERTY TAXES 3115000 ACCRUED OPERATING TAXES - OTHER 571063 36715682 X 187946164 3452 3452 187942712 0 187942712 175080027 3452 3452 175076575 12866137 12866137 187942712 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 3,452. PART XII, LINE 2D - OTHER ADJUSTMENTS: GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS 3,452. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ASSIGNABLE 12,866,137. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT 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 PAID OR 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) 15826 TO PAY FOR DIRECT OPERATING EXPENSES FOR THE TRUST. 1 SCHEDULE I, PART II: ALL GRANTS, SPONSORSHIPS AND 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 0 1 0 DON CRABBE PRESIDENT/CEO 442749 0 754 0 158979 0 177280 0 22061 0 801823 0 0 0 BRUCE ANDREWS CFO 219669 0 769 0 22436 0 137920 0 17744 0 398538 0 0 0 BRAD FORD COO 202653 0 762 0 14696 0 56554 0 17748 0 292413 0 0 0 JERRY DRISKILL VP - OPERATIONS 156058 0 912 0 6220 0 65493 0 20618 0 249301 0 0 0 DANIEL RIEDEL VP - ENGINEERING 153575 0 694 0 983 0 66785 0 6213 0 228250 0 0 0 KAREN SOUTHERLAND DISTRICT MANAGER 138049 0 762 0 7055 0 148967 0 14017 0 308850 0 0 0 TONYA SEXTON VP - MARKETING 141799 0 491 0 896 0 14220 0 6416 0 163822 0 0 0 THEODORE DEWEESE JR SERVICEMAN 134786 0 1074 0 2391 0 22058 0 19065 0 179374 0 0 0 JOHN HAWKINS CREW CHIEF 125084 0 1756 0 3985 0 15947 0 12740 0 159512 0 0 0 JAMES BRANSCUM DISTRICT MANAGER 119806 0 803 0 3040 0 51535 0 18743 0 193927 0 0 0 PART I, LINE 4B MR. DON CRABBE PARTICIPATED IN A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN. BENEFITS UNDER THE PLAN ARE CURRENTLY ACCRUED AND FULLY VESTED IN THE SAME YEAR. TOTAL BENEFITS PAID DURING THE YEAR WERE $75,635. 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 $ 86,880 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,400 DEFERRED RETENTION BONUS 85,000 TOTAL REPORTED IN COLUMN C $ 177,280 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (86,880) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 146,195 EXPENSE TO THE COOPERATIVE $ 151,595 BRUCE ANDREWS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 133,376 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,544 TOTAL REPORTED IN COLUMN C $ 137,920 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (133,376) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 72,798 EXPENSE TO THE COOPERATIVE $ 77,432 BRAD FORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,350 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,204 TOTAL REPORTED IN COLUMN C $ 56,554 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,350) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 67,409 EXPENSE TO THE COOPERATIVE $ 71,613 JERRY DRISKILL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,238 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,255 TOTAL REPORTED IN COLUMN C $ 65,493 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (62,238) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,344 EXPENSE TO THE COOPERATIVE $ 53,599 DANIEL RIEDEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 63,695 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,090 TOTAL REPORTED IN COLUMN C $ 66,785 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (63,695) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,709 EXPENSE TO THE COOPERATIVE $ 51,799 KAREN SOUTHERLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 146,135 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,832 TOTAL REPORTED IN COLUMN C $ 148,967 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (146,135) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 44,873 EXPENSE TO THE COOPERATIVE $ 47,705 TONYA SEXTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,220 TOTAL REPORTED IN COLUMN C $ 14,220 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 14,220 THEODORE DEWEESE, JR.: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,426 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,632 TOTAL REPORTED IN COLUMN C $ 22,058 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,426) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,364 EXPENSE TO THE COOPERATIVE $ 27,996 JOHN HAWKINS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,257 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,690 TOTAL REPORTED IN COLUMN C $ 15,947 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,257) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,120 EXPENSE TO THE COOPERATIVE $ 28,810 JAMES BRANSCUM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,060 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,475 TOTAL REPORTED IN COLUMN C $ 51,535 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,060) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,111 EXPENSE TO THE COOPERATIVE $ 42,586 FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIP: DON CRABBE (PRESIDENT/CEO) AND ROBERT HILL (CHAIRMAN) 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 (DIRECTOR) 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 A RETENTION AND COMPENSATION PLAN COMMITTEE WHEN DETERMINING THE COMPENSATION OF THE PRESIDENT/CEO. THE CEO USES 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 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 CONTACT ADDRESSES FOR OFFICERS, DIRECTORS, ETC JIMMIE CROCKETT - 210 CROCKETT RD, ROSE BUD, AR 72137. 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 $14,301,586 LESS: DIRECTOR FEES & BENEFITS REPORTED ON FORM 1099-MISC (396,113) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (588,416) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,315,843 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 305,155 TOTAL WAGES ACCRUED AND/OR PAID $16,938,055 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TAXES $ 7,555 OTHER DEDUCTIONS 21,048 TRANSMISSION 410,441 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 439,044 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 2017 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 $ 3,146,737 OFFICE SUPPLIES 603,778 OUTSIDE SERVICES 124,148 INSURANCES 185,488 EMPLOYEE BENEFITS 424,138 DIRECTORS 489,979 ANNUAL MEETING 66,520 CAPITAL CREDITS 50,435 MISCELLANEOUS GENERAL 367,801 FIBER NETWORK STUDY 72,967 REGULATORY COMMISSION 374,371 MAINTENANCE OF GENERAL PLANT 531,812 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,438,174 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (396,113) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,407,396) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,376,909) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,257,756 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 12,866,137. PATRONAGE CAPITAL RETIRED -9,009,418. UNCLAIMED PATRONAGE RETIREMENTS RETAINED UNDER STATE LAW 1,618,702. OTHER COMPREHENSIVE INCOME PROVISION FOR POST-RETIREMENT BENEFIT OBLIGATION -609,730. NET CHANGE IN MEMBERSHIP 9,210. NET DECREASE IN OTHER EQUITIES -57. 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