2011-10-24T10:56:45-05:00 2010-12-31 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 750569260 SOUTH PLAINS ELECTRIC COOPERATIVE INC SOUT 8067757732 PO BOX 1830 LUBBOCK TX 79408 JAMES DRIVER 8067757732 2011-10-17 1 Matt R Willis 8067473806 2011-10-17 2010 2016-03-07 17:11:31Z JAMES DRIVER PO BOX 1830 LUBBOCK TX 79408 125083598 0 X WWW.SPEC.COOP X 1943 TX TO PROVIDE ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS. 12 12 160 0 70410 69410 0 0 116701771 123824303 329600 278529 464450 492172 117495821 124595004 0 73356 0 0 8174211 8430654 0 0 0 100330314 105781329 108504525 114285339 8991296 10309665 222057805 238179056 140375152 149938282 81682653 88240774 TO BE THE PREFERRED ELECTRIC UTILITY PROVIDER IN THE SERVICE AREA, OFFERING APPROPRIATE, VALUE-BASED SERVICES DESIRED BY THE MEMBERSHIP. 0 0 SALES OF ELECTRIC ENERGY TO OUR MEMBERS - 47,665 ACTIVE SERVICES WERE PROVIDED ELECTRIC POWER AT YEAR END AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 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 0 0 0 0 0 0 0 1 1 0 0 1 71 0 160 1 1 1 0 0 0 0 117331253 1936566 0 X 12 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 0 1 1 0 X RONNIE RUCKER 8067757732 4727 SOUTH LOOP 289 LUBBOCK TX 79424 TOMMY JOINES 4.00 X X 17353 0 0 RD MCCALLISTER 6.10 X X 21713 0 0 PAUL ZUBER 2.70 X X 4476 0 0 BOBBY RICHEY 2.70 X 17162 0 0 BENNY NIXON 3.10 X 21641 0 0 GLENN JONES 8.60 X 21756 0 0 MARVIN SCHOEPF 3.20 X 18156 0 0 DANNY STANTON 3.70 X 20529 0 0 KEN HARRIS 5.30 X 11990 0 0 ROBERT FORBIS 4.60 X 18599 0 0 BILL BEDNARZ JR 4.30 X 20277 0 0 LARRY BROWNING 4.30 X 24952 0 0 JAMES DRIVER 50.00 X 194943 0 96268 RONNIE RUCKER 45.00 X 129761 0 19127 DALE ANCELL 42.00 X 115301 0 22594 SHERYL WILLIAMS 40.00 X 110930 0 26812 RANDAL BAILEY 41.00 X 110974 0 62933 ALLAN BROWN 40.00 X 110018 0 25344 MIKE QUERNER 43.00 X 111152 0 24091 1101683 0 277169 8 0 1 0 SIEGEL CONSTRUCTION INC PO BOX 1026 SHALLOWATER TX 79363 CONTRACT LINE CONSTRUCTION 814425 BIRD ELECTRIC 6625 W 19TH STREET LUBBOCK TX 79407 CONTRACT LINE CONSTRUCTION 773632 SOUTHEASTERN DATA 100 ASHFORD CENTER NORTH SUITE 500 ATLANTA GA 30338 MAINFRAME SOFTWARE SYSTEM 549418 ASPLUNDH PO BOX 532729 ATLANTA GA 30353 TREE TRIMING AND METER READING 447546 SGS ENGINEERING 401 50TH LUBBOCK TX 79404 SYSTEM ENGINEERING 378410 7 ELECTRIC SALES 221000 113816189 113816189 PATRONAGE DIVIDENDS 221000 10008114 10008114 123824303 278529 278529 105300 337395 38627 128996 66673 208399 275072 65173 69541 140358 538071 320971 217100 216231 869 124595004 124105707 70410 418887 73356 658704 4676128 950121 1732083 413618 5290706 5954649 PURCHASED POWER 89011454 DISTRIBUTION EXPENSE 2533824 CUSTOMER ACCOUNTS 1768539 ADMIN & GEN EXPENSE 1004171 U.B.I.T. 9145 208841 114285339 1604 2979523 1488283 8038718 6994033 16938 27307 153122 230868 230635731 69046404 151649451 161589327 2751 1215 54595845 63189851 4619853 4658172 222057805 238179056 8536692 7525897 204748 174486 111281209 124971803 20352503 17266096 140375152 149938282 X 0 0 0 0 81682653 88240774 81682653 88240774 222057805 238179056 X 10309665 -3751544 X X 0 1 1 X 0 0 1 716823 716823 5691520 3100980 2590540 212152019 65945424 146206595 12075369 12075369 161589327 CAPITAL TERM CERTIFICATES - CFC 3651544 C PATRONAGE CAPITAL - CFC 2139891 C PATRONAGE CAPITAL - TEC 910567 C PATRONAGE CAPITAL - GOLDEN SPREAD ELECTRIC COOPERATIVE, INC. 41461209 C PATRONAGE CAPITAL - BRAZOS ELECTRIC COOPERATIVE 9963920 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 385024 C NRECA DEFERRED COMPENSATION FUNDS 249789 C INVESTMENT IN AFFILIATED COMPANY 2427907 C MEMBER CAPITAL TERM CERTIFICATES - CFC 2000000 C 63189851 POWER COST OVERCOLLECTED 4350725 CONSUMER DEPOSITS 655824 DEFERRED CREDITS 1833139 ACCUMULATED PROVISION FOR DEFERRED COMPENSATION 249789 ACCUMULATED PROVISION FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 6763697 ACCRUED TAXES 169610 ACCRUED EMPLOYEE COMPENSATED ABSCENCES 2221941 ACCRUED INTEREST 513948 INTERCOMPANY NOTES PAYABLE 507423 17266096 Part IV, Line 2b: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. 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 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 RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. 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 PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. Description of Uncertain Tax Positions Under FIN 48: Part X: ON JANUARY 1, 2009, THE COOPERATIVE 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, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. Part VII: THE AMOUNT OF INVESTMENTS - OTHER SECURITIES ON FORM 990, PAGE 11, PART X, LINE 12 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 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 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. 0 X Other Information: Part IV: ALL GRANTS, SPONSORSHIPS AND DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X 0 0 0 JAMES DRIVER 181369 0 0 0 13574 0 77201 0 19067 0 291211 0 0 0 RANDAL BAILEY 101318 0 1875 0 7781 0 45737 0 17196 0 173907 0 0 0 Supplemental Information Part III 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. JAMES DRIVER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,701 DEFERRED COMPENSATION - COOPERATIVE CONTRIBUTION 16,500 TOTAL COLUMN C: 77,201 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (60,701) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 61,104 TOTAL COOPERATIVE CASH CONTRIBUTION $ 77,604 RANDAL BAILEY ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,737 TOTAL COLUMN C: 45,737 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (45,737) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 34,351 TOTAL COOPERATIVE CASH CONTRIBUTION $ 34,351 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 2. THE DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; AND 3. THE MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. Form 990, Part VI, Section B, line 11 MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL 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 A LIST OF POTENTIAL CONFILCTS 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, CONFLIT 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. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: EQUITY METHOD INCOME FROM SUBSIDIARY 60,627. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEFITS -312,400. PATRONAGE CAPITAL RETIRED -3,499,771. Total to Form 990, Part XI, Line 5: -3,751,544. AUDIT COMMITTEE Form 990, Part XII, Line 2C THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE ANNUAL AUDIT AND HELP SELECT THE CPA FIRM WHO WILL PERFORM THE AUDIT. ACCOUNTING SYSTEM Form 990, Part IX THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE(RUS). THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE WILL BREAK OUT 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 WILL BE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. PATRONAGE DIVIDENDS 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. RECONCILIATION OF WAGES PER RETURN TO W-3 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. IN AN EFFORT TO EXPLAIN WHY THE AMOUNTS REPORTED ON LINES 5-7 DO NOT AGREE TO THE W-3 THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $ 5,334,832 LESS DIRECTORS FEES REPORTED ON 1099-MISC (218,604) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 3,847,770 LESS EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (115,395) RECONCILIATION TO W-3 $ 8,848,603 BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL Form 990, Part IX, Line 24 THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS ADMINISTRATIVE AND GENERAL EXPENSE ON FORM 990, PART IX, LINE 24 OUTSIDE SERVICES $ 175,224 DUES TO ASSOCIATED ORGANIZATIONS 75,263 ANNUAL MEETING EXPENSES 98,093 MAINTENANCE OF GENERAL PLANT 630,164 MISCELLANEOUS 25,427 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $1,004,171 TO PROVIDE DETAIL REGARDING OFFICER & HIGHLY COMPENSATED EMPLOYEE BENEFITS 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, THIS PLAN COVERS SUBSTANTIALLY ALL EMPLOYEES OF THE LUBBOCK DIVISION. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 9% OF A PARTICIPATING EMPLOYEE'S SALARY. 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 EMPLOYEES, INCLUDING EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE EMPLOYEE OFFICER OR HIGHLY COMPENSATED EMPLOYEE, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER OR HIGHLY COMPENSATED EMPLOYEE. TO PROVIDE DETAIL REGARDING OTHER EXPENSES Form 990, Part IX, Line 24f THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24F: MISCELANEOUS OTHER DEDUCTIONS $ 12,397 TAXES 9,513 SALES EXPENSE 186,931 TOTAL OTHER EXPENSES PER FORM 990, LINE 24F $ 208,841 WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY Form 990, Part VI, Line 14 THE COOPERATIVE DOES NOT HAVE A WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY IN PLACE, BUT FOLLOWS THE RUS RECOMMENDATIONS REGARDING DOCUMENT RETENTION AND DESTRUCTION. SOUTH PLAINS DEVELOPMENT CORP PO BOX 1830 LUBBOCK TX 79408 752329983 REAL ESTATE RENTAL AND DEVELOPMENT TX N/A C 374495 2919795 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 SOUTH PLAINS DEVELOPMENT CORPORATION N 18000 CASH