2023-09-22T12:03:29-07:00 2022-12-31 990 2022-01-01 741937134 SAN MIGUEL ELECTRIC COOPERATIVE INC SANM 8307843411 PO Box 280 Jourdanton TX 78026 Craig Courter General Manager 8307843411 2023-05-13 1 1 11 0 AAL2 X 2022 2023-04-26 12:10:37Z Craig Courter PO Box 280 Jourdanton TX 78026 188325013 0 X http://www.smeci.net/ X 1977 TX San Miguel was created for the sole purpose of owning and operating a 400 MW mine-mouth lignite-fired generating plant and associated mining facilities to furnish power and energy to its member cooperatives. 19 19 196 0 0 0 0 0 153196068 179295050 4930873 5014499 3873592 4015464 162000533 188325013 0 0 460000 2338144 19502940 20913387 0 0 0 142037593 165073482 162000533 188325013 0 0 529155212 558755810 415421009 443777203 113734203 114978607 Provide safe, reliable and affordable power to our members through diligent resource management, environmental stewardship, and employee growth, while helping to meet needs within the communities we serve. Maintain a dependable power supply at the lowest possible and competitive cost to our customers through integrity, hard work, and safety. 0 0 San Miguel Electric Cooperative, Inc. was created for the sole purpose of owning and operating a 400 Megawatt mine-mouth lignite-fired generating plant and associated mining facility to furnish power and energy to its members on a cooperative basis. 0 0 0 0 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 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 134 0 1 196 1 0 0 0 0 0 178080237 10244745 0 0 0 X 19 19 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Vanessa pawelek 8307843411 PO Box 280 Jourdanton TX 78026 X Nathan Brown General Manager (Jan-Oct) 50 X 379619 0 42232 Derrick Brummett Chief Financial Officer 50 X 214913 0 83168 Craig Courter Plant Manager(Jan-Oct) General Manager (Nov-Dec) 50 X 210924 0 40406 David Burris Fuels Manager 40 X 194033 0 45641 Eric Halfmann Engineering Manager 40 X 171061 0 59798 Joe Badillo Shift Supervisor 40 X 193355 0 35297 Aureliano Perez Mechanical Supervisor 40 X 159252 0 34228 David Loeffler Class A Mechanic 40 X 139076 0 34438 Raul Osuna Crew A CRO_A 40 X 139053 0 31440 Curtis Adams Lead Electrician 40 X 137331 0 32713 Brian Acosta Director 6 X 15252 0 0 Rolando Alaniz Director 4 X 14816 0 0 Michael Jacobs Director 4 X 14200 0 0 John Roach Director 12 X 14160 0 0 Colt Haack Director 7 X 14046 0 0 Clyde Stewart Assistant Secretary/Treasurer 6 X 14040 0 0 Kenneth White President 7 X 14000 0 0 David Rosse Director 5 X 13770 0 0 Brad Bierstedt Secretary/Treasurer 4 X 13490 0 0 Trey Grebe Director 4 X 13416 0 0 Ron Hughes Director 4 X 13374 0 0 Michael Kezar Director 15 X 13287 0 0 Mike Ables Director 4 X 12976 0 0 Larry Schendel Director 3 X 12935 0 0 Bode Hausmann Director 4.5 X 12760 0 0 Blaine Warzecha Vice President 5 X 12728 0 0 Jim Coleman Director 6 X 2145 0 0 Avan Irani Director 6 X 0 0 0 Gary Raybon Director 6 X 0 0 0 2160012 0 439361 64 0 1 0 North American Construction Group 27287 100th Avenue Acheson Alberta CA T7X6H8 Mining Contractor 90060372 Holt Cat po box 650345 dallas TX 75265 Contract Labor 7533242 TEI Construction Services Inc 170 Tucapau Duncan SC 29334 Contract Labor 5550470 Waukesha Pearce Industries LLC po box 204116 dallas TX 75320 Contract Labor 3692450 GIS Construction 1821 N Port Avenue Corpus Christi TX 78401 Contract Labor 3670546 53 X 0 Generation of Electircity 221000 179295050 179295050 0 0 0 0 0 0 179295050 5014499 0 0 5014499 0 0 0 0 0 0 0 0 0 0 0 0 Sales of SO2 - Emmissions Allowance 221000 12 12 0 0 Transmission 221000 1486124 1486124 0 0 Deferred Revenues 221000 -1214814 -1214814 0 0 3744142 3744142 0 0 4015464 188325013 183310514 0 5014499 X 2338144 1391945 0 15875071 2486446 0 1159925 1704852 10058857 21685709 Fuels 77139535 Maintenance 28871511 Operations 19490917 Admin 1913834 4208267 188325013 0 0 0 X 4503916 97606 22338 33132 0 0 26293536 21325409 0 0 0 0 0 0 53323229 75661489 21114137 31362728 837513092 511880714 321297366 325632378 0 0 0 0 100394496 102531414 0 0 2206194 2111654 529155212 558755810 14420804 17920284 0 0 39619699 38184067 70955722 67449740 0 0 0 0 73646133 91169069 182035909 192164840 34742742 36889203 415421009 443777203 X 0 0 0 0 113734203 114978607 113734203 114978607 529155212 558755810 X 0 0 0 0 0 1244404 X X 0 1 X 1 0 7013777 0 7013777 523867654 0 381709978 142157676 0 0 0 0 146865170 0 116251674 30613496 159766491 0 13919062 145847429 325632378 Mine Closure & Plant Decommissioning 87329000 F Ash Pond Cleanout Funds 1938849 F Patronage Capital from Associated Cooperatives 3136522 F Restricted Investments in Associated Organizations 10127043 F 102531414 Special Funds - Homestead Funds 419244 Interest Receivable 1692410 2111654 Accumulated Provisions for Mine Closure 31728923 Asset Retirement Obligation 5160280 36889203 X 183310516 0 0 0 0 0 183310516 0 5014497 5014497 188325013 185986865 0 0 0 0 0 185986865 0 2338148 2338148 188325013 Schedule D, Part VIII See general explanations on Schedule O for form 990 part 1 line 19 Schedule D, Part X, Line 2 ASC topic # 740, "Income Taxes" requires that an enterprise cannot recognize a tax benefit in its financial statements unless it concludes that it is "more likely than not: that the benefit will be sustained on audit by the taxing authority". Tax-exempt and not-for-profit enterprises are also within the scope of the ASC, since the decision that some or all of an enterprise's activities are not subject to income taxes is itself a tax position for which the interpretation requires evaluation. At adoption, and annually thereafter, San Miguel applies the requirements to all tax positions for which the statute of limitations remained open. San Miguel recognizes the financial benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. San Miguel Electric Cooperative, Inc. was determined by the Internal Revenue Service to be an exempt cooperative for purposes of federal income taxes, under Section 501(c)(12) of the Internal Revenue code, in years when receipts from members, for the purpose of meeting losses and expenses, are at least 85 percent of the total income. The amount of unrecognized tax benefits as of December 31, 2022, was zero. Schedule D, Part XI, Line 4b See general explanations on Schedule O for form 990 part 1 line 19. Schedule D, Part XII, Line 4b See general explanation on Schedule O Form 990 part 1 line 19. X X X X 0 0 0 Nathan Brown General Manager 332680 0 0 0 46939 0 0 0 42232 0 421851 0 0 0 Derrick Brummett Chief Financial Officer 198296 0 12308 0 4310 0 43007 0 40162 0 298083 0 0 0 Craig Courter Plant Manager 201737 0 7838 0 1350 0 0 0 40406 0 251331 0 0 0 David Burris Fuels Manager 180211 0 9836 0 3986 0 36092 0 9550 0 239675 0 0 0 Joe Badillo Shift Supervisor 144456 0 498 0 48402 0 0 0 35297 0 228653 0 0 0 Eric Halfmann Engineering Manager 165360 0 4924 0 777 0 22337 0 37462 0 230860 0 0 0 Aureliano Perez Mechanical Supervisor 114885 0 397 0 43970 0 0 0 34228 0 193480 0 0 0 David Loeffler Class A Mechanic 138756 0 319 0 0 0 0 0 34438 0 173513 0 0 0 Raul Osuna Crew A CRO_A 113988 0 397 0 24668 0 0 0 31440 0 170493 0 0 0 Curtis Adams Lead Electrician 114508 0 347 0 22476 0 0 0 32713 0 170044 0 0 0 A Atascosa County Industrial Development Corp 870810599 046578AC4 2020-06-18 62540000 To redeem 2008 Series Pollution Control Bonds 0 0 0 A 2540000 57580000 0 0 0 0 0 0 0 0 0 0 1982 1 0 1 1 A 0 0 0 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 0 A 1 Schedule K, Part IV, Line 2c-06/18/2020 62,540,000 Atascosa County Industrial Development Corp Atascosa County Industrial Development - Rebate calculation was updated June 18, 2020. Form 990, Part I, Line 19 For the 2011 tax reporting year, the IRS made a significant change to the 990 instructions, whereby entitles exempt under 501 (c)(12) of the Internal Revenue Code are to report patronage dividend paid to their members on Part IX, Line 4. San Miguel being duly organized in the State of Texas and exempt under 501(c)(12) of the Internal Revenue Code operates on a cooperative, non-profit basis for the mutual benefit of its patrons. As such, all revenues or margins received in excess of operating costs are retained as equity and allocated a credit to each patron's capital account. Should the Board of Directors determine that the financial condition of the Cooperative will not impaired, and there are not requirements which restrict such distribution, the Board of Directors may choose to retire credits reflected in member accounts in part or in full. Retirements of capital credits are restricted under San Miguel's current mortgage indenture until certain thresholds are met. San Miguel interprets the definition of "paid" to mean paid in money, property, or qualified written allocations: therefore, San Miguel is reporting as allocated, for the 2011 and all subsequent tax reporting years, all excess margins as paid to its patrons on an annual basis in accordance with the above referenced interpretations of the IRS instructions. Form 990, Part VI, Section A, Line 1b The decisions of the San Miguel Board of Directors are reported directly to the governing boards of the 10 member cooperatives. Certain contracts, i.e. wholesale power contracts are subject to the approval by the members of the 10 cooperatives. Form 990, Part VI, Section A, Line 6 San Miguel Electric Cooperative, Inc (San Miguel) is a not-for-profit cooperative corporation organized for the purpose of generating electric power. San Miguel sells power pursuant to a wholesale power contract with South Texas Electric Cooperative, Inc (South Texas), which is a generation of transmission cooperative. South Texas in turn, sells power at wholesale to their 9 member cooperatives, all of which are distribution cooperatives providing retail service to their member-customers. Form 990, Part VI, Section A, Line 7a San Miguel is governed by a board of 19 directors, each of whom is selected by and represents on of the 10 member cooperatives. The directors are elected annually at the San Miguel Annual Meeting. Form 990, Part VI, Section A, Line 7b The decisions of the San Miguel Board of Directors are reported directly to the governing boards for the member cooperatives. Certain contracts, i.e., wholesale power contracts ar subject to the approval by the members of the cooperatives. Form 990, Part VI, Section B, Line 11b A copy of the draft IRS Form 990 was provided to each of the current board members for the July 2023 meeting. Company personnel reviewed the form 990 at the Finance and Audit Commitee meeting on July 20, 2023, with the full board present. Board members were given an opportunity to ask any questions prior to the filing of the return. Form 990, Part VI, Section B, Line 12c The San Miguel Board of Directors approved a Conflict of Interest Policy on December 10,2008. Since then the policy has been amended on 07/21/2017 and 8/19/2022. The policy requires each "member of the Board of Directors, the General Manager, General Counsel, and all Department Managers to file with the President of the Board of Directors, a Disclosure Report within (30) days after attaining such a position or status and then annually thereafter". The policy further specifies that "The President of the Board of Directors shall report no later than the regular March monthly Board meeting each year that he or she has received disclosure reports from all reporting persons signed and dated by February 15th of the current year". The disclosure report includes questions regarding each person's personal and business relationships and any potential claims against San Miguel. In accordance with policy requirements, the above mentioned parties are asked to complete and sign both the disclosure report and/or the conflict of interest report on an annual basis. Form 990, Part VI, Section B, Line 15 The salaries of all officers are based on a national survey for similar positions in the utility industry and recommended by an independent management consulting agency. Form 990, Part VI, Section C, Line 19 As San Miguel has outstanding loan funds guaranteed by the Rural Utilities Service, the financial statements are a matter of public record, and are provided to individuals upon request. We do not typically make San Miguel's governing documents or conflict of interest policy available to the public. Form 990, Part VII, Section A, Line 1a See general explanation on Schedule O for Foorm 990, Part VI, Section B, Line15. Form 990, Part VIII, Line 11a 11b 11c The San Miguel Board of Directors approved deferred revenue plans in accordance with GAAP for Ash Pond Cleanout and Plant Decommissioning obligations. For 2022, the amount deferred and set aside for future Ash Pond Cleaning Activities was $310,342. An Additional $904,472 was deferred for Plant Decommissioning. Amounts recognized in 2022 for Ash Pond Cleanout activities were $0. The net balance of deferred revenue for Ash Pond Cleanout available for future cleaning activities is $1,749,297. The total amount of deferred revenue for Plant Decommissioning is $6,336,260. Overall the total of deferred revenue is $8,085,556. Form 990, Part IX, Line 4 See general explanation on Schedule O for core Form 990, Part I, Line 19. Form 990, Part X, Line 2 See general explanations on schedule O for form 990 Form 990, Part XI, Line 9 As part of the Brazos Transaction, funds were received in advance for Brazos' portion or debt obligations. During 2022, $1,093,739 of the original debt obligations was amortized. As referenced on Schedule O, Part 1, Line 19, San Miguel's margins received in excess of operating costs are retained as equity and allocated as a credit to each patron's capital account. The amount of margins retained in 2022 was $2,338,144. The net margins and prepaid debt netted to $1,244,405. Form 990, Part XII, Line 2c Yes, the organization does have a committee that assumes responsibility for oversight of the audit, but no changes in its oversight process or selection has occurred during 2022.