2025-11-16T20:52:53-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 741393760 SOUTH TEXAS ELECTRIC COOPERATIVE INC SOUT 3615756491 PO BOX 119 NURSERY TX 77976 CLIFTON ERIC LANGE GENERAL MANAGER 3615756491 2025-11-14 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-14 X 2024 2025-03-06 01:10:19Z CLIFTON ERIC LANGE PO BOX 119 NURSERY TX 77976 686721309 0 X WWW.STEC.ORG X 1944 TX WE ARE A CUTTING-EDGE GENERATION AND TRANSMISSION COOPERATIVE PROVIDING ELECTRIC POWER AND A LEADER IN PROVIDING A DIVERSE PORTFOLIO OF AFFORDABLE ENERGY, A RELIABLE POWER DELIVERY SYSTEM AND SERVICES CUSTOMIZED TO THE NEEDS OF THE MEMBERS. 18 18 287 0 0 0 0 0 685749742 682753103 2042029 1429225 995117 2517554 688786888 686699882 97350 141950 55217062 49702731 38160702 38907689 0 0 0 602051031 597946401 695526145 686698771 -6739257 1111 1617028197 1680130079 1100530609 1113929760 516497588 566200319 OUR MISSION IS TO PROVIDE THE INFRASTRUCTURE AND SERVICES TO DELIVER RELIABLE AND ECONOMICAL ELECTRIC POWER TO A DIVERSIFIED MEMBERSHIP. 0 0 PROVIDING WHOLESALE ELECTRIC ENERGY TO 9 DISTRIBUTION COOPERATIVE MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 1 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 192 0 287 1 0 0 0 0 0 675742384 5474413 0 0 0 X 18 18 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 0 1 1 0 X TABATHA TEMPLE CFO 3615756491 PO BOX 119 NURSERY TX 77976 X BARBARA MILLER PRESIDENT 6.85 X X 21800 0 0 BLAINE WARZECHA DIRECTOR 5.00 X 20000 0 0 BRIAN ACOSTA DIRECTOR 5.00 X 20000 0 0 BRUCE ELLIOTT DIRECTOR 3.00 X 20000 0 0 CLYDE STEWART DIRECTOR 5.00 X 20000 0 0 ERIC HALFMANN DIRECTOR 5.00 X 20000 0 0 HERBERT GREBE III DIRECTOR 5.00 X 18400 0 0 JIM HARTON DIRECTOR 6.00 X 20000 0 0 LARRY HUESSER ASSISTANT SEC-TREAS 4.80 X X 19600 0 0 MICHAEL ABLES DIRECTOR 5.00 X 19200 0 0 PAUL BRYSCH JR SECRETARY-TREASURER 4.40 X X 20000 0 0 RONALD HUGHES VICE PRESIDENT 4.00 X X 18400 0 0 RUMALDO JUAREZ DIRECTOR (FEB-DEC) 4.00 X 17600 0 0 SAMMY CONDRA DIRECTOR 5.00 X 20000 0 0 S F RUSCHHAUPT III DIRECTOR 4.00 X 16800 0 0 JAMES COLEMAN DIRECTOR (PD TO EMPLOYER) 5.00 X 0 0 0 VARZAVAND IRANI DIRECTOR (PD TO EMPLOYER) 4.00 X 0 0 0 GARY RAYBON DIRECTOR (PD TO EMPLOYER) 5.00 X 0 0 0 CLIFTON LANGE GENERAL MANAGER 55.00 X 739390 0 339072 TABATHA TEMPLE CHIEF FINANCIAL OFFICER 40.00 X 200942 0 65394 CORY ALLEN ASSISTANT GM/MGR OF POWER DELIVERY 40.00 X 382527 0 211184 JOHN PACKARD MGR OF POWER SUPPLY 40.00 X 342823 0 126231 STEVEN TAYLOR TRANSMISSION LINE SUPERINTENDENT 45.00 X 262478 0 151671 PAUL PERSON MGR OF ENGINEERING 45.00 X 244586 0 102536 LUCAS TURNER MGR OF WHOLESALE MARKETING/QSE 45.00 X 237955 0 76884 WENDY OHRT MGR OF CORPORATE & MEMBER SERVICES 50.00 X 237690 0 103428 LESANDER MARTINEZ SUBSTATION SUPERINTENDENT 45.00 X 231213 0 154843 3171404 0 1331243 130 0 1 0 LAMBDA CONSTRUCTION 211 JESSES CIRCLE NEW BRAUNFELS TX 78132 STATION CONSTRUCTION 7682694 WARTSILA NORTH AMERICA INC PO BOX 122450 DALLAS TX 75312 ELECTRIC CONTRACTOR 6431463 GRAYS POWER SUPPLY LLC 7 VORTEX DRIVE OAKLAND MS 38948 POWER LINE CONTRACTOR 4308089 GE VERNOVA OPERATIONS LLC PO BOX 100371 ATLANTA GA 30384 ELECTRIC CONTRACTOR 3923852 POWER ENGINEERS INC PO BOX 855321 MINNEAPOLIS MN 55485 ENGINEERING SERVICES 3622047 52 X SALES OF ELECTRICITY 221000 675742384 675742384 PATRONAGE DIVIDENDS 221000 6168524 6168524 OTHER PROGRAM REVENUE 221000 570057 570057 TRANSMISSION 221000 272138 272138 682753103 1432203 1432203 1640700 1640700 77009 0 77009 77009 67459 9550 18449 21427 -2978 -2978 -2978 POLE ATTACHMENT REVENUE 221000 766963 766963 OTHER NON OPERATING REVENUE 221000 32882 32882 799845 686699882 682850466 0 3849416 X 91950 50000 49702731 2699363 22628253 6235910 5685686 1658477 41443454 50139700 PURCHASED POWER 414697019 PRODUCTION EXPENSE 66820084 ADMINISTRATIVE & GENERA 10414013 OPERATING TAXES 7578587 6853544 686698771 30239839 28517482 16128015 8128341 51282768 59058371 30432586 31106770 32819639 31865048 2050795316 612974901 1375995419 1437820415 76229259 80337896 9544 9544 3891128 3286212 1617028197 1680130079 52240822 66749422 842650485 940192950 180000000 85000000 25639302 21987388 1100530609 1113929760 X 500 500 488 488 516496600 566199331 516497588 566200319 1617028197 1680130079 X 1111 49701620 X X 0 1 X 1 0 61136340 61136340 49484263 9895349 39588914 1748573466 603079552 1145493914 191601247 191601247 1437820415 ACCRUED OPERATING TAXES 4852407 CONSUMER DEPOSITS 1392276 REGULATORY LIABILITY - OVERCOLLECTION OF POWER COST 5803199 ADVANCES FOR CONSTRUCTION 9479777 ACCUMULATED ACCRUED DEFERRED COMPENSATION 459729 21987388 X PART X, LINE 2: THE COOPERATIVE FOLLOWS THE PROVISIONS OF UNCERTAIN TAX POSITIONS AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION 740-10-65-1. 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 POSITIONS 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 VIII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 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 VIII HAS BEEN LEFT BLANK. 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. 0 0 0 0 0 0 0 0 0 0 GUATEMALA INTERNATIONAL PROJECT. 50000 0 1 0 0 0 0 0 0 PART II: THE DONATION MADE TO NRECA INTERNATIONAL IS USED TOWARD THEIR MISSION TO HELP BRING ELECTRICITY TO PEOPLE LIVING IN RURAL AREAS IN DEVELOPING COUNTRIES BY PARTNERING WITH ELECTRIC COOPERATIVES IN THE UNITED STATES, SUCH AS SOUTH TEXAS ELECTRIC COOPERATIVE. X X X 0 1 0 CLIFTON LANGE GENERAL MANAGER 731890 0 0 0 7500 0 299323 0 39749 0 1078462 0 0 0 CORY ALLEN ASSISTANT GM/MGR OF POWER DELIVERY 359681 0 15331 0 7515 0 176910 0 34274 0 593711 0 0 0 JOHN PACKARD MGR OF POWER SUPPLY 327175 0 14044 0 1604 0 92143 0 34088 0 469054 0 0 0 STEVEN TAYLOR TRANSMISSION LINE SUPERINTENDENT 247766 0 10684 0 4028 0 116111 0 35560 0 414149 0 0 0 LESANDER MARTINEZ SUBSTATION SUPERINTENDENT 219146 0 9483 0 2584 0 119181 0 35662 0 386056 0 0 0 PAUL PERSON MGR OF ENGINEERING 232723 0 10024 0 1839 0 68595 0 33941 0 347122 0 0 0 WENDY OHRT MGR OF CORPORATE & MEMBER SERVICES 226499 0 9872 0 1319 0 66236 0 37192 0 341118 0 0 0 LUCAS TURNER MGR OF WHOLESALE MARKETING/QSE 227653 0 9836 0 466 0 40850 0 36034 0 314839 0 0 0 TABATHA TEMPLE CHIEF FINANCIAL OFFICER 192166 0 8382 0 394 0 30287 0 35107 0 266336 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. 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. CLIFTON LANGE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 288,973 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,350 TOTAL REPORTED IN COLUMN C $ 299,323 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (288,973) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 122,648 EXPENSE TO THE COOPERATIVE $ 132,998 CORY ALLEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 166,560 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,350 TOTAL REPORTED IN COLUMN C $ 176,910 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (166,560) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 121,564 EXPENSE TO THE COOPERATIVE $ 131,914 JOHN PACKARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 82,256 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,887 TOTAL REPORTED IN COLUMN C $ 92,143 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (82,256) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 110,531 EXPENSE TO THE COOPERATIVE $ 120,418 STEVEN TAYLOR: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 108,603 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,508 TOTAL REPORTED IN COLUMN C $ 116,111 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (108,603) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 85,538 EXPENSE TO THE COOPERATIVE $ 93,046 LESANDER MARTINEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 112,463 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,718 TOTAL REPORTED IN COLUMN C $ 119,181 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (112,463) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,293 EXPENSE TO THE COOPERATIVE $ 80,011 PAUL PERSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 61,542 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,054 TOTAL REPORTED IN COLUMN C $ 68,596 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (61,542) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 79,593 EXPENSE TO THE COOPERATIVE $ 86,647 WENDY OHRT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 59,295 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,941 TOTAL REPORTED IN COLUMN C $ 66,236 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (59,295) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 78,765 EXPENSE TO THE COOPERATIVE $ 85,706 LUCAS TURNER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,918 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,932 TOTAL REPORTED IN COLUMN C $ 40,850 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,918) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 76,695 EXPENSE TO THE COOPERATIVE $ 83,627 TABATHA TEMPLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,379 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,908 TOTAL REPORTED IN COLUMN C $ 30,287 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,379) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 65,899 EXPENSE TO THE COOPERATIVE $ 71,807 RACHEL LANGE FAMILY RELATIONSHIP (OFFICER - C. LANGE) 2000 SCHOLARSHIP VANESSA LANGE FAMILY RELATIONSHIP (OFFICER - C. LANGE) 1500 SCHOLARSHIP FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE WHOLESALE POWER AND TRANSMISSION SERVICES AT COST ON A COOPERATIVE BASIS. THE COOPERATIVE CURRENTLY HAS NINE (9) MEMBERS; ALL OF WHICH PURCHASE POWER FROM THE COOPERATIVE PURSUANT TO WHOLESALE POWER CONTRACTS. FORM 990, PART VI, SECTION A, LINE 7A THE COOPERATIVE IS GOVERNED BY AN EIGHTEEN (18) MEMBER BOARD OF DIRECTORS, WHO ARE ELECTED ANNUALLY AND SERVE A TERM OF ONE YEAR. EACH OF THE NINE (9) MEMBER DISTRIBUTION COOPERATIVES ELECTS TWO REPRESENTATIVES TO SERVE ON THE BOARD AND FILLS THE VACANCY CREATED IF ONE OF THEIR DESIGNATED REPRESENTATIVES RESIGNS OR IS UNABLE TO SERVE. FORM 990, PART VI, SECTION A, LINE 7B IN ADDITION TO BOARD OF DIRECTOR ELECTIONS, THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. AMENDMENT TO THE ARTICLES OF INCORPORATION 2. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 3. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 4. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE FINANCE AND AUDIT COMMITTEE AND THE FULL BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, OFFICERS AND EMPLOYEES ARE REQUIRED TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. IF POLICIES NEED TO BE UPDATED, THEY ARE DRAFTED AND THEN REVIEWED WITH LEGAL COUNSEL BEFORE PRESENTATION TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND APPROVAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S GENERAL MANAGER. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE 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 SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE ANNUAL REPORT IS LISTED ON WEBSITE EACH YEAR THAT ALSO INCLUDED STEC'S ANNUAL FINANCIAL STATEMENTS. GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. 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. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF THE PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR AND EMPLOYEE OFFICER A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS 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. 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, LINE 24C: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMIN & GENERAL SALARIES EXPENSE $ 6,833,296 OFFICE SUPPLIES 389,862 OUTSIDE SERVICES 3,921,890 INSURANCE 2,512,845 INJURIES & DAMAGES 610,405 MANAGERS MEETING & TRAVEL EXPENSE 32,957 ANNUAL MEETING 83,502 DIRECTORS 393,420 DUES & SUBSCRIPTIONS 421,954 MISCELLANEOUS GENERAL EXPENSE 419,580 EVENTS, TRAINING & EDUCATION 442,638 TOTAL ADMIN & GENERAL EXPENSE $16,062,349 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (291,800) LESS: RECLASS OF LABOR TO PART IX, LINES 5&7 (4,750,057) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (606,479) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990 $10,414,013 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 $25,327,616 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (291,800) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (404,466) LESS: KEY EMPLOYEE COMPENSATION REPORTED IN LINE 5 (337,415) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,170,153 PLUS: SALARIES AND WAGES CAPITALIZED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 908,176 TOTAL WAGES ACCRUED AND/OR PAID $30,372,264 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. 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 2024 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: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS & SALES EXPENSE $ 369,773 GENERAL PLANT MAINTENANCE 1,769,131 DISTRIBUTION EXPENSE 6,768,892 TRANSMISSION EXPENSE 17,274,268 TOTAL OTHER EXPENSES PER FINANCIAL STATEMENTS $26,182,064 LESS: RECLASS OF LABOR TO PART IX, LINES 5&7 (10,979,089) LESS: RECLASS OF BENEFITS TO PART IX, LINES 5&7 (8,349,431) TOTAL OTHER EXPENSES PER FORM 990, PART IX, LINE 24E $ 6,853,544 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 ASSIGNABLE 49,702,731. EQUITY METHOD INCOME FROM SUBSIDIARY -1,111. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO A FINANCE AND AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. SOUTH TEXAS SOLAR POWER LLC PO BOX 119 NURSERY TX 77976 833169048 SOLAR POWER GENERATION TX SOUTH TEXAS ELECTRIC COOPERATIVE INC C 832542 295714 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 SOUTH TEXAS SOLAR POWER LLC A 9550 CASH RECEIVED SOUTH TEXAS SOLAR POWER LLC R 832542 PURCHASE POWER AGREEMENT