2025-11-16T20:53:23-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750569260 SOUTH PLAINS ELECTRIC COOPERATIVE INC SOUT 8067757732 PO BOX 1830 LUBBOCK TX 79408 DALE ANCELL EXECUTIVE VP/GENERAL MANAGER 8067757732 2025-11-14 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-14 X 2024 2025-03-06 01:10:19Z DALE ANCELL PO BOX 1830 LUBBOCK TX 79408 170530705 0 X WWW.SPEC.COOP X 1943 TX TO PROVIDE ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS. 12 11 205 0 95473 99195 0 0 192461578 168855331 -1693988 -1732837 438705 445026 191206295 167567520 233463 296818 24228491 3463753 16449373 20421063 0 0 0 151831468 144969324 192742795 169150958 -1536500 -1583438 528128446 563842361 299574211 333380160 228554235 230462201 NONE 0 0 SALES OF ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 75,399 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 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 1 0 1 58 0 205 1 1 1 0 0 0 0 167946151 6829872 0 0 0 X 12 11 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X SHANE ADAMS CFO 8067757732 4727 SOUTH LOOP 289 LUBBOCK TX 79424 X BRENT WHITAKER DIRECTOR 13.70 X 32892 0 0 LLOYD ARTHUR DIRECTOR 14.80 X 33692 0 0 SCOTT MARTIN SECRETARY/TREASURER 14.70 X X 29692 0 0 DANNY STANTON VICE PRESIDENT 19.90 X X 33000 0 0 LARRY BROWNING DIRECTOR 13.70 X 30600 0 0 RYNN TRUETT ASSISTANT SECRETARY/TREASU 15.50 X X 29540 0 0 JOE MCFERRIN DIRECTOR 15.80 X 29800 0 0 RD MCCALLISTER DIRECTOR (JAN-AUG) 12.90 X 17000 0 0 BOBBY RICHEY PRESIDENT 21.40 X X 27000 0 0 BENNY NIXON DIRECTOR 12.70 X 26800 0 0 DAVID GOSSETT DIRECTOR 14.40 X 27400 0 0 DEWAYNE MCCALLISTER DIRECTOR (AUG-DEC) 19.80 X 14800 0 0 JAMIE MCNEILL DIRECTOR 13.50 X 29000 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAG 42.00 X 440456 0 116835 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 42.00 X 372088 0 273683 SHANE ADAMS CHIEF FINANCIAL OFFICER 45.00 X 264336 0 82934 RANDY MCGEE MANAGER OF MEMBER SERVICES 40.00 X 249586 0 47697 JAMEY PHILLIPS GENERAL COUNSEL/DIRECTOR CORP AFFAIRS 40.00 X 244644 0 30345 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCE 40.00 X 231585 0 56746 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 40.00 X 228228 0 63783 JON HENSON LUBBOCK DIVISION MANAGER 40.00 X 212641 0 72084 2604780 0 744107 77 0 1 0 PRIMARY UTILITY SERVICES LLC PO BOX 1393 SNYDER TX 79550 CONSTRUCTION CONTRACTOR 7650111 SIEGEL CONSTRUCTION INC PO BOX 1026 SHALLOWATER TX 79363 CONSTRUCTION CONTRACTOR 3866883 TEINERT CONSTRUCTION 1402 CRICKETS AVE LUBBOCK TX 79401 CONSTRUCTION CONTRACTOR 3115125 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER N SUITE 500 ATLANTA GA 30338 SOFTWARE & TECHNOLOGY 1776506 ECHO POWERLINE LLC 313 WALNUT ST BUNKIE LA 71322 CONSTRUCTION CONTRACTOR 887093 13 X SALES OF ELECTRICITY 221000 159864022 159864022 PATRONAGE DIVIDENDS 221000 8991309 8991309 168855331 803905 803905 142200 178070 91925 118915 50275 59155 109430 9235 100195 2536742 -2536742 -2536742 -2536742 425047 215603 209444 214166 -4722 POLE ATTACHMENT INCOME 221000 126152 126152 126152 167567520 166541990 95473 930057 X 296818 3463753 1911548 12076356 1988196 3529923 915040 13883141 12722714 PURCHASED POWER 106253967 DISTRIBUTION EXPENSE 6184356 CUSTOMER ACCOUNTS 3044461 UNRELATED BUS. INC. TAX 18225 2862460 169150958 14209385 15187883 18133931 12291169 4196026 4099233 21372 50124 2395119 2549662 473688477 109661503 332250701 364026974 146938433 155098849 9983479 10538467 528128446 563842361 15144622 18618486 302809 757123 259329693 283180629 24797087 30823922 299574211 333380160 X 0 0 0 0 228554235 230462201 228554235 230462201 528128446 563842361 X -1583438 3491404 X X 0 1 X 1 0 0 1 X 1846223 1846223 12177959 5590186 6587773 84007 84007 412679746 104071317 308608429 46900542 46900542 364026974 CAPITAL TERM CERTIFICATES - CFC 3360274 C PATRONAGE CAPITAL - CFC 5413730 C PATRONAGE CAPITAL - TEC 6101051 C PATRONAGE CAPITAL - GSEC 104138046 C PATRONAGE CAPITAL - BRAZOS 25370859 C OTHER INVESTMENTS IN ASSOCIATED ORGS 1206683 C INVESTMENT IN AFFILIATED COMPANY 2937320 C MEMBER CAPITAL TERM CERTIFICATES - CFC 2000000 C MEDIUM TERM NOTES - CFC 3947556 C SELECT NOTES - CFC 472508 C OTHER SPECIAL FUNDS - PARETO 150822 C 155098849 CONSUMER DEPOSITS 673681 ACCRUED OPERATING TAXES 2361755 ACCUMULATED PROVISION FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 5583351 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL 1474627 DEFERRED CREDITS - OTHER 408495 POWER COST - OVER COLLECTED 20322013 30823922 X PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DETERMINED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DETERMINED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. PART X, LINE 2: THE COOPERATIVE HAS ADOPTED 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, 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. 0 INSIDE OUT FOUNDATION 4630 50TH STREET SUITE 101 LUBBOCK TX 79414 455597137 501(C)(3) 11160 0 COMMUNITY AGENCIES LUBBOCK CHAMBER OF COMMERCE 1500 BROADWAY ST SUITE 101 LUBBOCK TX 79401 750403180 501(C)(6) 7725 0 CHAMBER SUPPORT LUBBOCK AREA UNITED WAY INC 1655 MAIN ST 101 LUBBOCK TX 79401 750961812 501(C)(3) 10300 0 SPONSOR DONATIONS TEXAS ELECTRIC COOPERATIVES 1122 COLORADO STREET 24TH FLOOR AUSTIN TX 78701 741007829 CORPORATION 11555 0 CONTRACT MATERIAL - TEC UTILITY AMERICAN CANCER SOCIETY 3513 10TH STREET LUBBOCK TX 79415 131788491 501(C)(3) 28337 0 CATTLE BARON'S BALL 3 2 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 0 0 X X 0 0 0 JOHN RANDAL BAILEY ASSISTANT GENERAL MANAGER 328626 0 5100 0 38362 0 246269 0 27414 0 645771 0 0 0 LARRY DALE ANCELL EXECUTIVE VP/GENERAL MANAG 359942 0 6900 0 73614 0 88421 0 28414 0 557291 0 0 0 SHANE ADAMS CHIEF FINANCIAL OFFICER 218026 0 6400 0 39910 0 45995 0 36939 0 347270 0 0 0 RANDY MCGEE MANAGER OF MEMBER SERVICES 168254 0 2800 0 78532 0 36361 0 11336 0 297283 0 0 0 LYNN SIMMONS DIRECTOR OF COMMUNICATIONS 199373 0 6400 0 22455 0 49730 0 14053 0 292011 0 0 0 TAHNEE TRUITT DIRECTOR OF HUMAN RESOURCE 204556 0 6400 0 20629 0 41238 0 15508 0 288331 0 0 0 JON HENSON LUBBOCK DIVISION MANAGER 185277 0 4600 0 22764 0 44808 0 27276 0 284725 0 0 0 JAMEY PHILLIPS GENERAL COUNSEL/DIRECTOR CORP AFFAIR 209394 0 4600 0 30650 0 27723 0 2622 0 274989 0 0 0 PART I, LINE 1A DURING 2024, THE COOPERATIVE PAID $7,469 FOR COUNTRY CLUB DUES FOR GENERAL MANAGER, LARRY DALE ANCELL. 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. JOHN RANDAL BAILEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 246,269 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 246,269 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (246,269) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 131,461 EXPENSE TO THE COOPERATIVE $ 131,461 LARRY DALE ANCELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 77,332 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,089 TOTAL REPORTED IN COLUMN C $ 88,421 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (77,332) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 55,894 EXPENSE TO THE COOPERATIVE $ 66,983 SHANE ADAMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,060 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,935 TOTAL REPORTED IN COLUMN C $ 45,995 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,060) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,197 EXPENSE TO THE COOPERATIVE $ 42,132 RANDY MCGEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,261 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,100 TOTAL REPORTED IN COLUMN C $ 36,361 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,261) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,593 EXPENSE TO THE COOPERATIVE $ 33,693 LYNN SIMMONS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 43,617 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,113 TOTAL REPORTED IN COLUMN C $ 49,730 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (43,617) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,047 EXPENSE TO THE COOPERATIVE $ 40,160 TAHNEE TRUITT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,980 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,258 TOTAL REPORTED IN COLUMN C $ 41,238 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,980) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,197 EXPENSE TO THE COOPERATIVE $ 41,455 JON HENSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,976 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,832 TOTAL REPORTED IN COLUMN C $ 44,808 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,976) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,797 EXPENSE TO THE COOPERATIVE $ 38,629 JAMEY PHILLIPS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,441 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,282 TOTAL REPORTED IN COLUMN C $ 27,723 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,441) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,436 EXPENSE TO THE COOPERATIVE $ 35,718 TUCKER OIL COMPANY INC FAMILY RELATIONSHIP - DIRECTOR (GOSSETT) 277841 GAS & DIESEL SALES TO THE COOPERATIVE. TUCKER OIL IS OWNED BY DIRECTOR GOSSETT'S DAUGHTER & SON-IN-LAW. 0 FORM 990, PART VI, SECTION A, LINE 1B: PER 990 INSTRUCTIONS, DIRECTOR GOSSETT IS NOT INDEPENDENT DUE TO A FAMILY MEMBER ENGAGING IN A TRANSACTION WITH THE COOPERATIVE. THE TRANSACTION IS KNOWN TO ALL MEMBERS OF THE BOARD. FORM 990, PART I, LINE 19: REVENUE LESS EXPENSES AS REPORTED ON PAGE 1, PART I, LINE 19 DIFFERS FROM THE TOTAL NET MARGINS REPORTED ON THE COOPERATIVE'S AUDITED FINANCIAL STATEMENTS DUE TO BOOK TO TAX ADJUSTMENTS REQUIRED TO CONFORM TO THE FORM 990 INSTRUCTIONS. THE FIRST ADJUSTMENT IS FOR THE EQUITY METHOD INCOME RECORDED ON THE COOPERATIVE'S BOOKS AND INCLUDED IN TOTAL NET MARGINS. U.S. GAAP REQUIRES THE COOPERATIVE TO RECORD ON ITS BOOKS THE 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 SECOND ADJUSTMENT IS FOR THE TRANSFER OF NONOPERATING LOSSES TO OTHER EQUITIES, AND THE THIRD ADJUSTMENT IS FOR THE PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED BY THE COOPERATIVE TO MEMBERS. WHEREAS THE FORM 990 REQUIRES SUCH AMOUNTS TO BE REPORTED AS AN EXPENSE, PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED ARE AN INCREASE IN CAPITAL AND EQUITY, SPECIFICALLY PATRONAGE CAPITAL, ON U.S. GAAP BASIS FINANCIAL STATEMENTS. FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN LARRY DALE ANCELL (EXECUTIVE VP/GM) AND BENNY NIXON (DIRECTOR). ALL SERVE ON THE BOARD OF GOLDEN SPREAD ELECTRIC COOPERATIVE 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 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 PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C A LIST OF POTENTIAL CONFLICTS OF INTEREST IS ANNUALLY DISTRIBUTED TO ALL OFFICERS AND MEMBERS OF THE BOARD OF DIRECTORS. EACH OFFICER AND DIRECTOR IS REQUIRED TO REVIEW THE LIST AND DISCLOSE ANY CONFLICTS. 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 SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. 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 WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. 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, THIS PLAN COVERS SUBSTANTIALLY ALL EMPLOYEES OF THE DICKENS AND GATE CITY DIVISIONS. 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 EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. 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 EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE 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. 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 2B: PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM GENERATION & TRANSMISSION COOPERATIVES. 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: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (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 SEPARATLEY 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 $13,987,904 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (361,216) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (473,452) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 125,244 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,947,701 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,048,473 TOTAL WAGES ACCRUED AND/OR PAID $19,274,654 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL EXPENSE $ 2,086,000 CUSTOMER SERVICE & INFORMATION 184,429 OTHER DEDUCTIONS 170,282 SALES EXPENSE 312,002 OTHER TAXES 109,747 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 2,862,460 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 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: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 7,575,731 OFFICE SUPPLIES 401,192 RENT 450,000 OUTSIDE SERVICES 464,819 DUPLICATE CHARGES (CREDIT) 198 DUES TO ASSOCIATED ORGANIZATIONS 93,642 ANNUAL MEETING 107,549 DIRECTORS 465,252 MISCELLANEOUS GENERAL 48,216 MAINTENANCE OF GENERAL PLANT 1,954,729 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $11,561,328 LESS: RECLASS OF EXPENSES TO PART VIII (110,250) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (361,216) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (5,903,829) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (3,100,033) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,086,000 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED 3,463,753. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEFITS -107,254. EQUITY METHOD INCOME FROM SUBSIDIARY 134,905. 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. SOUTH PLAINS ELECTRIC TRUST PO BOX 1830 LUBBOCK TX 79408 756440983 SCHOLARSHIPS, GRANTS, AND DONATIONS TX 501(C)(3) 7 SOUTH PLAINS ELECTRIC COOPERATIVE INC 1 SOUTH PLAINS DEVELOPMENT CORPORATION PO BOX 1830 LUBBOCK TX 79408 752329983 REAL ESTATE RENTAL AND DEVELOPMENT TX SOUTH PLAINS ELECTRIC COOPERATIVE INC C 956752 7279739 1.00000 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 1 SOUTH PLAINS DEVELOPMENT CORPORATION A 136599 INTEREST PAID ON NOTE SOUTH PLAINS DEVELOPMENT CORPORATION K 450000 RENT PAYMENTS SOUTH PLAINS DEVELOPMENT CORPORATION O N/A - LESS THAN $50,000 SOUTH PLAINS DEVELOPMENT CORPORATION Q 88070 INSURANCE PAID SOUTH PLAINS DEVELOPMENT CORPORATION S 96793 LOAN PRINCIPAL PAYMENTS SOUTH PLAINS ELECTRIC TRUST O N/A - LESS THAN $50,000