2025-11-17T09:21:08-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 611345109 KENERGY CORP KENE 8008444832 PO BOX 18 HENDERSON KY 42419 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 8008444832 2025-11-12 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-12 X 2024 2025-03-06 01:10:19Z TIMOTHY LINDAHL PO BOX 18 HENDERSON KY 42419 376583125 0 X WWW.KENERGYCORP.COM X 1999 KY TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 134 0 8829618 0 0 0 344126401 366363704 541305 188872 2619140 9869239 347286846 376421815 38317 56028 0 5002833 12846770 13388730 0 0 0 334721554 356129848 347606641 374577439 -319795 1844376 321555799 393530110 236288653 303495724 85267146 90034386 SAFELY PROVIDING RELIABLE ELECTRIC AND TECHNOLOGY SERVICES FOR OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 59,887 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 42 0 134 1 1 1 0 0 0 0 0 0 367146338 8222004 0 0 0 X 11 11 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X TRAVIS SIEWERT VP FINANCE 8008444832 PO BOX 18 HENDERSON KY 42419 X JONATHAN AYER DIRECTOR (JAN-JUNE) 10.00 X 6100 0 0 RICHARD BASHAM DIRECTOR 10.00 X 13050 0 0 SUSAN BLANFORD SECRETARY/TREASURER 3.00 X X 12450 0 0 LARRY ELDER DIRECTOR 8.00 X 13950 0 0 RYAN HAMMACK DIRECTOR 9.00 X 12000 0 0 MICHAEL HAZELWOOD DIRECTOR 4.30 X 11100 0 0 GARRETT OWEN DIRECTOR (JUNE-DEC) 6.00 X 7800 0 0 EDDIE LEACH DIRECTOR (JAN-JUNE) 12.00 X 5700 0 0 WILLIAM REID CHAIRMAN 8.00 X X 13500 0 0 CRAIG ROBERTS VICE CHAIRMAN 6.00 X X 11850 0 0 WILLIAM WATHEN DIRECTOR (JUNE-DEC) 6.00 X 7500 0 0 ROBERT WHITE DIRECTOR 6.00 X 11100 0 0 BRENT WIGGINTON DIRECTOR 8.00 X 11700 0 0 TIMOTHY LINDAHL PRESIDENT & CEO 59.00 X 330010 0 77600 DEBRA HAYDEN EXECUTIVE ASST./ASSISTANT SECRETARY 40.00 X 108747 0 36649 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 45.00 X 205598 0 54294 ROB STUMPH VP - ENGINEERING 45.00 X 232221 0 228050 KEITH ELLIS VP - ADMINISTRATIVE SERVICES 50.00 X 217466 0 97503 STEVE THOMPSON VP - REGULATORY/EXTERNAL AFFAIRS 40.00 X 219160 0 64377 MATTHEW MOFFITT VP - OPERATIONS 56.00 X 207063 0 55894 MICHAEL CHURCH OPERATIONS MANAGER 50.00 X 151952 0 98926 SCOTT ATHERTON FIELD ENGINEERING MANAGER 45.00 X 147096 0 61935 ANDY WOLFORD TECHNICAL SERVICES MANAGER 50.00 X 144915 0 63526 CASEY BAKER OPERATIONS MANAGER 50.00 X 144648 0 65240 KEVIN HOLLAND CONTRACTOR & SYSTEM CONTROL MANAGER 50.00 X 142944 0 44822 2389620 0 948816 63 0 1 0 DYCOM INDUSTRIES INC PO BOX 932157 ATLANTA GA 31193 FIBER INSTALLATIONS 24795026 MDR CONSTRUCTION INC 621 E BAYLIS CHAPEL ROAD COLUMBIA MS 39429 FIBER MAKE READY 19540398 CONEXON LLC 2001 GRAND BLVD STE 700 KANSAS CITY MO 64108 FIBER CONSTRUCTION MANAGEMENT 8284837 VONALAS INC 1906 SAPPHIRE PINES LN RICHMOND TX 77469 FIBER INSTALL 3174644 HALTER TREE SERVICE INC 325 MAIN ST VINCENNES IN 47591 TREE TRIMMING 2654903 19 X SALES OF ELECTRICITY 221000 365069022 365069022 SERVICE FEES 221000 704039 704039 PATRONAGE DIVIDENDS 221000 590643 590643 366363704 281951 281951 195758 0 195758 195758 195758 68231 161310 -93079 -93079 -93079 FIBER LEASE REVENUE 517000 6651715 6651715 FIBER GRANT REVENUE 517000 1982145 1982145 POLE ATTACHMENT INCOME 221000 1038770 1038770 851 851 9673481 376421815 366271476 8829618 1320721 X 40028 16000 5002833 2272432 7640361 1270853 1645007 560077 4735246 15286730 PURCHASED POWER 316299237 DISTRIBUTION EXPENSE 9357696 FIBER EXPENSE 7471807 ADMIN & GENERAL 1681065 1298067 374577439 1413796 1763154 21843209 22693958 25609043 21610225 684767 581149 507311708 181150442 252035024 326161266 6189841 6514696 13780119 14205662 321555799 393530110 45642402 38020108 183258572 258419999 7387679 7055617 236288653 303495724 X 233190 234810 0 0 85033956 89799576 85267146 90034386 321555799 393530110 X 1844376 2922864 X X 0 1 X 1 1 1 1392871 1392871 10610194 5938328 4671866 91310119 385458780 175212114 301556785 18539744 18539744 326161266 CONSUMER ADVANCES FOR CONSTRUCTION 2024438 OTHER DEFERRED CREDITS 572059 CONSUMER DEPOSITS 4459120 7055617 X PART X, LINE 2: KENERGY IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND, ACCORDINGLY, THE ACCOMPANYING FINANCIAL STATEMENTS INCLUDE NO PROVISION FOR SUCH TAXES. WHEN APPLYING THE 85 PERCENT TEST OF IRC 501(C)(12), KENERGY EXCLUDES THE BIG RIVERS NON-CASH ALLOCATIONS FROM GROSS INCOME. ASC 740-10, INCOME TAXES, PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES. KENERGY HAS PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023, AND DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART VII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 12 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 VII 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 OHIO COUNTY FOOD PANTRY 1220 S MAIN STREET HARTFORD KY 42347 610549873 501(C)(3) 6080 0 COMPANY MATCH 1 SECONDARY EDUCATION SCHOLARSHIPS 29 16000 SECONDARY EDUCATION SCHOLARSHIPS AWARDED TO 29 INDIVIDUALS: - 3 INDIVIDUALS RECEIVED $1,000 - 26 INDIVIDUALS RECEIVED $500 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 X 0 0 0 ROB STUMPH VP - ENGINEERING 205865 0 150 0 26206 0 203019 0 25031 0 460271 0 0 0 TIMOTHY LINDAHL PRESIDENT & CEO 294507 0 15125 0 20378 0 44256 0 33344 0 407610 0 0 0 KEITH ELLIS VP - ADMINISTRATIVE SERVICES 190278 0 150 0 27038 0 63391 0 34112 0 314969 0 0 0 STEVE THOMPSON VP - REGULATORY/EXTERNAL AFFAIRS 193437 0 150 0 25573 0 39334 0 25043 0 283537 0 0 0 MATTHEW MOFFITT VP - OPERATIONS 194231 0 150 0 12682 0 25761 0 30133 0 262957 0 0 0 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 192768 0 150 0 12680 0 23338 0 30956 0 259892 0 0 0 MICHAEL CHURCH OPERATIONS MANAGER 143174 0 150 0 8628 0 74098 0 24828 0 250878 0 0 0 CASEY BAKER OPERATIONS MANAGER 141994 0 150 0 2504 0 44008 0 21232 0 209888 0 0 0 SCOTT ATHERTON FIELD ENGINEERING MANAGER 129026 0 3150 0 14920 0 36579 0 25356 0 209031 0 0 0 ANDY WOLFORD TECHNICAL SERVICES MANAGER 132965 0 150 0 11800 0 52899 0 10627 0 208441 0 0 0 KEVIN HOLLAND CONTRACTOR & SYSTEM CONTROL MANAGER 130430 0 3150 0 9364 0 24241 0 20581 0 187766 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. ROB STUMPH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 203,019 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (203,019) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 59,144 EXPENSE TO THE COOPERATIVE $ 59,144 TIMOTHY LINDAHL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,256 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,256) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 64,790 EXPENSE TO THE COOPERATIVE $ 64,790 KEITH ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 63,391 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (63,391) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,315 EXPENSE TO THE COOPERATIVE $ 43,315 STEVE THOMPSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,334 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,334) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,674 EXPENSE TO THE COOPERATIVE $ 50,674 MATTHEW MOFFITT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,761 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,761) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,586 EXPENSE TO THE COOPERATIVE $ 43,586 TRAVIS SIEWERT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,338 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,338) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,821 EXPENSE TO THE COOPERATIVE $ 40,821 MICHAEL CHURCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,098 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,098) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,387 EXPENSE TO THE COOPERATIVE $ 39,387 CASEY BAKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,008 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,008) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,657 EXPENSE TO THE COOPERATIVE $ 38,657 SCOTT ATHERTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,579 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,579) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,810 EXPENSE TO THE COOPERATIVE $ 30,810 ANDY WOLFORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,899 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,899) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,525 EXPENSE TO THE COOPERATIVE $ 30,525 KEVIN HOLLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,241 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,241) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,803 EXPENSE TO THE COOPERATIVE $ 29,803 FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN DIRECTOR RICHARD BASHAM AND EMPLOYEE OFFICER TIMOTHY LINDAHL. THEY SERVE ON THE BOARD OF KENTUCKY ELECTRIC COOPERATIVES AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE I - MEMBERS SECTION 8. MEMBER ADVISORY COMMITTEE, COMMERCIAL ADVISORY COMMITTEE AND INDUSTRIAL ADVISORY COMMITTEE, WAS REMOVED FROM THE BYLAWS. THE PREVIOUS SECTION 9. CONTRACTUALLY BOUND, WAS RENUMBERED TO SECTION 8. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: WWW.KENERGYCORP.COM/BYLAWS. 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. REMOVAL OF A DIRECTOR FROM THE BOARD 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. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE CHAIRMAN OF THE BOARD OF DIRECTORS REQUIRES EACH BOARD MEMBER AND THE CEO TO COMPLETE AND SIGN A FORM LISTING THE NAMES OF THEIR BUSINESS INTEREST, POSITIONS HELD, AND THE OWNERSHIP PERCENTAGE. ANNUALLY, THE CEO REQUIRES ALL VICE-PRESIDENTS AND MANAGERS TO COMPLETE A SURVEY PROVIDING THE SAME INFORMATION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE DETERMINES THE CEO COMPENSATION BASED ON A REVIEW OF PERFORMANCE AND OF EXTERNAL MARKET PRICING. TO ASSIST WITH EXTERNAL MARKET PRICING, AN INDEPENDENT COMPENSATION CONSULTANT IS PERIODICALLY USED. FOR ALL OTHER EMPLOYEE OFFICERS AND KEY EMPLOYEES, COMPENSATION IS DETERMINED USING EXTERNAL MARKET SOURCES, INCLUDING A COMPENSATION SURVEY. INTERNAL MARKET PRICING IS ESTABLISHED BY UTILIZING A POINT FACTOR METHOD OF ASSIGNING WEIGHTED FACTORS BASED ON A VARIETY OF COMPETENCIES. THE BOARD OF DIRECTORS APPROVES THE BUDGET, INCLUDING COMPENSATION OF EMPLOYEE OFFICERS AND KEY EMPLOYEES, BASED ON THIS PROCESS. FORM 990, PART VI, SECTION C, LINE 19 KENERGY PROVIDES EACH MEMBER, THROUGH A BILLING INSERT, A CONDENSED BALANCE SHEET AND INCOME STATEMENT COMPARING THE MOST RECENT CALENDAR YEAR TO THE PREVIOUS CALENDAR YEAR. THE COMPARATIVE STATEMENT OF OPERATIONS, AS WELL AS THE BYLAWS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE AT WWW.KENERGYCORP.COM/ABOUT. ADDITIONALLY, POLICIES ARE MADE AVAILABLE TO MEMBERS UPON A WRITTEN REQUEST. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE ACTIVELY 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 THE PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. A DEFINED CONTRIBUTION PLAN IS ALSO OFFERED TO EMPLOYEES. SINCE JANUARY 1, 2019, THE DEFINED CONTRIBUTION PLAN IS FOR ELECTIVE SALARY DEFERRALS ONLY AND NOT MATCHED BY THE COOPERATIVE. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2B: 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 REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE THE RURAL UTILITIES SERVICE (RUS). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY STATES 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 $ 9,912,793 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (137,800) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (614,367) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 450,604 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,044,988 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 406,946 TOTAL WAGES ACCRUED AND/OR PAID $14,063,164 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSE $ 735,657 TAXES 553,173 OTHER DEDUCTIONS 9,237 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,298,067 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 ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2024 CALENDAR YEAR. WHEN ALLOCATED, THE COOPERATIVE CREDITS TO AN INDIVIDUAL CAPITAL ACCOUNT FOR EACH PATRON THE STATED DOLLAR AMOUNT OF THE PATRONAGE DIVIDEND. ADDITIONALLY, 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: AMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,421,695 OFFICE SUPPLIES 10,921 OUTSIDE SERVICES 448,051 REG. COMMISSION EXPENSE 53,598 MISCELLANEOUS GENERAL 611,638 DIRECTORS EXPENSE 175,897 MAINTENANCE OF GENERAL PLANT 1,192,943 ADVERTISING EXPENSE 3,107 MANAGEMENT EXPENSE 12,540 FRANCHISES EXPENSE 12,025 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,942,415 LESS: RECLASS OF SCHOLARSHIPS TO PART IX, LINE 2 (16,000) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (137,800) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,148,493) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (959,057) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,681,065 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 5,002,833. PATRONAGE CAPITAL RETIRED - TOTAL -289,270. PATRONAGE CAPITAL RETIRED - DISCOUNT 171,059. PATRONAGE CAPITAL RETIRED - MEMBER CONTRIBUTIONS 18,767. NET CHANGE IN MEMBERSHIPS 1,620. BOOK-TO-TAX ADJUSTMENT - FIBER GRANT -1,982,145. 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. KENERGY OPERATION ROUND-UP INC PO BOX 18 HENDERSON KY 42419 475198197 UTILITY BILL ASSISTANCE KY 501(C)(3) LINE 7 KENERGY CORP 1 KENECT INC PO BOX 18 HENDERSON KY 42419 851820461 FIBER AND BROADBAND ACCESS SUBLEASE KY KENERGY CORP C 6650834 108 1.00000 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 KENECT INC A 6560698 ACCESS AGREEMENT KENECT INC N N/A - LESS THAN $50,000 KENECT INC O N/A - LESS THAN $50,000 KENERGY OPERATION ROUND-UP INC B N/A - LESS THAN $50,000