2023-11-06T11:17:47-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 750597925 TAYLOR ELECTRIC COOPERATIVE INC TAYL 3257938500 PO BOX 250 MERKEL TX 79536 NANCY BRISCO CFO 3257938500 2023-10-26 1 NANCY BRISCO 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-10-26 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z RYAN BARTLETT PO BOX 250 MERKEL TX 79536 72441693 0 X WWW.TAYLORELECTRIC.COM X 1939 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 103 0 30138 0 0 0 55039847 71300202 193234 189730 2096460 779605 57329541 72269537 22006 28516 4302029 5688893 8182777 8623622 0 0 0 45830231 59298596 58337043 73639627 -1007502 -1370090 188078410 207962708 115188173 131049911 72890237 76912797 NONE 0 0 ELECTRIC DIVISION:PROVIDING ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 20,129 ACTIVE SERVICES AT YEAR END. FIBER INTERNET DIVISION:A SEPARATE DIVISION OF THE COOPERATIVE WAS CREATED TO PROVIDE FIBER INTERNET SERVICE TO ITS MEMBERS THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. FIBER INTERNET SERVICES ARE PROVIDED TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO THE EXTENT OF MARGINS FOR SUCH DIVISION. THERE WERE 3,649 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 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 1 112 0 103 1 1 1 0 0 0 0 69822978 1733282 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X NANCY BRISCO CFO 3257938500 226 CR 287 MERKEL TX 79536 X CECIL DAVIS CHAIRMAN 2.00 X X 23000 0 0 DAVID MCFALL SECRETARY/TREASURER 6.00 X X 21500 0 0 GARLAND CARTER DIRECTOR 4.00 X 21500 0 0 GAYLA SIMMONS DIRECTOR 3.00 X 21500 0 0 KATHRYN RAINEY DIRECTOR 4.00 X 21500 0 0 LELAND ROBINSON VICE CHAIRMAN 2.00 X X 21500 0 0 RICHARD PETREE DIRECTOR 4.00 X 31500 0 0 RYAN BARTLETT PRESIDENT/CHIEF EXECUTIVE OFFICER 53.00 X 320532 0 124069 NANCY BRISCO CHIEF FINANCIAL OFFICER 60.00 X 211806 0 99860 WADE HATCH VP OF ENGINEERING 50.00 X 157050 0 200343 DAVID THOMAS DIRECTOR OF ELECTRIC OPERATIONS 42.00 X 152975 0 128699 JOSHUA FOSS WORKING FOREMAN 51.40 X 119561 0 93042 TYLER NEWBERRY WORKING FOREMAN 48.20 X 119219 0 58277 BILLY NEW SERVICE OPERATIONS MANAGER 40.10 X 114995 0 86321 CHADLEY SIPE CONSTRUCTION & MAINT OPS MANAGER 40.30 X 114522 0 103810 JOHN HASPEL BUSINESS DEVELOPMENT MANAGER 40.00 X 114336 0 67145 1586996 0 961566 21 0 1 0 PRIMARY UTILITY SERVICES LLC PO BOX 64207 LUBBOCK TX 79464 CONSTRUCTION CONTRACTOR 5509247 LONESTATE FIBER CONSTRUCTION LLC 4432 IBERIS RD ABILENE TX 79606 FIBER CONSTRUCTION CONTRACTOR 1747487 WAMPOLE-MILLER INC 301 ALAN WOOD RD CONSHOHOCKEN PA 19428 CONSTRUCTION CONTRACTORS 941580 RE-CON COMPANY OF TEXAS 12 NE 52ND STREET OKLAHOMA CITY OK 73105 CONSTRUCTION CONTRACTOR 843297 RETURN MOUNTAIN LLC 128 E 2ND STREET BAIRD TX 79504 CONSTRUCTION CONTRACTORS 293307 9 X SALES OF ELECTRICITY 221000 66318660 66318660 FIBER INTERNET SERVICE REVENUE 221000 2412438 2397370 15068 PATRONAGE DIVIDENDS 221000 2135690 2135690 SERVICE FEES 221000 421003 421003 TRANSMISSION ACCESS 221000 6738 6738 5673 5673 71300202 191562 191562 220193 12650 207543 207543 48200 159343 1832 -1832 -1832 -1832 23257 157674 -134417 -134417 POLE ATTACHMENT INCOME 221000 365655 365655 MISC NON-OPERATING REVENUE 221000 325754 325754 AIR EVAC REVENUE 524298 15070 15070 706479 72269537 71522839 30138 716560 X 28516 5688893 1557334 4466020 1288797 946888 364583 4617497 7277277 PURCHASED POWER 40590480 ADMIN & GENERAL EXPENSE 2889885 DISTRIBUTION EXPENSE 2047687 CONSUMER EXPENSE 628585 1247185 73639627 1713707 2417974 4519044 5806438 3170 1064 4380946 2897991 224384086 64282741 142545819 160101345 34300738 35477463 614986 1260433 188078410 207962708 3749475 5013248 118235 132291 104577670 115017133 6742793 10887239 115188173 131049911 X 126385 134385 167066 172395 72596786 76606017 72890237 76912797 188078410 207962708 X -1370090 5392650 X X 0 1 X 0 0 0 1 X 2106511 2106511 10217608 3583587 6634021 200502351 60699154 139803197 344796 11212820 11557616 160101345 PATRONAGE CAPITAL - GSEC 27560591 C PATRONAGE CAPITAL - TEC 1347917 C PATRONAGE CAPITAL - NISC 51161 C PATRONAGE CAPITAL - CFC 2719725 C PATRONAGE CAPITAL - NRTC 2237 C PATRONAGE CAPITAL - MERIDIAN COOPERATIVE 142955 C PATRONAGE CAPITAL - CRC 5096 C PATRONAGE CAPITAL - FEDERATED 133282 C CASH SURRENDER VALUE OF EMPLOYEE INS 13812 C MEMBER CAPITAL SECURITIES 2200000 C CAPITAL TERM CERTIFICATES 1286514 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 14173 C 35477463 ACCRUED OPERATING TAXES 127185 CUSTOMER DEPOSITS 1466746 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 510341 DEFERRED CREDITS - CONSUMER ENERGY PREPAYMENTS 149055 DEFERRED CREDITS - DATA CENTERS 176841 CUSTOMER ADVANCES FOR CONSTRUCTION 3690148 UNDERBILLED FUEL POWER 4766923 10887239 X 71974221 0 71974221 295316 295316 72269537 67655418 0 67655418 5984209 5984209 73639627 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED 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 DESIGNATED 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE 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 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 XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 295,316. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 295,316. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,688,893. 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID OR ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. 0 WYLIE INDEPENDENT SCHOOL DISTRICT 6251 BUFFALO GAP ROAD ABILENE TX 79606 751451409 GOVERNMENT 0 7468 PROVIDED FOOD TO TEACHERS, ADMINISTRATORS, AND STAFF DURING IN-SERVICE. 1 X 0 0 0 RYAN BARTLETT PRESIDENT/CHIEF EXECUTIVE OFFICER 262830 0 54239 0 3463 0 92468 0 31601 0 444601 0 0 0 WADE HATCH VP OF ENGINEERING 143743 0 10280 0 3027 0 177208 0 23135 0 357393 0 0 0 NANCY BRISCO CHIEF FINANCIAL OFFICER 175407 0 30750 0 5649 0 87216 0 12644 0 311666 0 0 0 DAVID THOMAS DIRECTOR OF ELECTRIC OPERATIONS 138703 0 12723 0 1549 0 106861 0 21838 0 281674 0 0 0 CHADLEY SIPE CONSTRUCTION & MAINT OPS MANAGER 103226 0 10786 0 510 0 73930 0 29880 0 218332 0 0 0 JOSHUA FOSS WORKING FOREMAN 78489 0 40665 0 407 0 64486 0 28556 0 212603 0 0 0 BILLY NEW SERVICE OPERATIONS MANAGER 104569 0 8234 0 2192 0 64386 0 21935 0 201316 0 0 0 JOHN HASPEL BUSINESS DEVELOPMENT MANAGER 106570 0 5540 0 2226 0 46772 0 20373 0 181481 0 0 0 TYLER NEWBERRY WORKING FOREMAN 80731 0 28754 0 9734 0 29808 0 28469 0 177496 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. RYAN BARTLETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,168 EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,300 TOTAL REPORTED IN COLUMN C $ 92,468 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,168) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 68,707 EXPENSE TO THE COOPERATIVE $ 87,007 WADE HATCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $167,649 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,559 TOTAL REPORTED IN COLUMN C $177,208 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (167,649) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,127 EXPENSE TO THE COOPERATIVE $ 33,686 NANCY BRISCO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,530 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,686 TOTAL REPORTED IN COLUMN C $ 87,216 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,530) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,616 EXPENSE TO THE COOPERATIVE $ 59,302 DAVID THOMAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 97,535 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,326 TOTAL REPORTED IN COLUMN C $106,861 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (97,535) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,111 EXPENSE TO THE COOPERATIVE $ 46,437 CHADLEY SIPE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 66,762 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,168 TOTAL REPORTED IN COLUMN C $ 73,930 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (66,762) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,261 EXPENSE TO THE COOPERATIVE $ 35,429 JOSHUA FOSS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 56,901 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,585 TOTAL REPORTED IN COLUMN C $ 64,486 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (56,901) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,041 EXPENSE TO THE COOPERATIVE $ 29,626 BILLY NEW: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,372 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,014 TOTAL REPORTED IN COLUMN C $ 64,386 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (57,372) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,259 EXPENSE TO THE COOPERATIVE $ 35,273 JOHN HASPEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,822 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,950 TOTAL REPORTED IN COLUMN C $ 46,772 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,822) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,535 EXPENSE TO THE COOPERATIVE $ 35,485 TYLER NEWBERRY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,997 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,811 TOTAL REPORTED IN COLUMN C $ 29,808 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,997) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,860 EXPENSE TO THE COOPERATIVE $ 27,671 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 PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. THE DISCUSSION AND REVIEW WERE PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ALL NEW EMPLOYEES AND DIRECTORS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST CERTIFICATION WHEN THEY BEGIN EMPLOYMENT WITH THE COOPERATIVE. ALL EMPLOYEES, DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE PRESIDENT/CEO REGULARLY MONITORS AND ENFORCES THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION FOR THE PRESIDENT/CEO. THE PRESIDENT/CEO UTILIZES INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY ANY SUCH DOCUMENT. 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. 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 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 OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES IS 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. PART VII AND PART IX, LINE 5: TAYLOR ELECTRIC COOPERATIVE COMPENSATED DIRECTOR RICHARD PETREE $10,000 FOR CONSULTING FEES. THIS COMPENSATION, AS WELL AS HIS DIRECTOR FEES, IS REPORTED ON DIRECTOR PETREE'S FORM 1099-NEC AND IS SHOWN ON PART VII OF THE RETURN. THE AMOUNT IS ALSO INCLUDED IN PART IX, LINE 5. FORM 990, PART VIII, LINE 2: 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. 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 FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). 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, 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 $ 6,023,354 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (162,000) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (552,971) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 169,521 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,796,353 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 718,085 TOTAL WAGES ACCRUED AND/OR PAID $ 7,992,342 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: AIR EVAC EXPENSE $ 15,110 ELECTRICIAN EXPENSE 261,727 FIBER & INTERNET EXPENSE 282,169 SALES EXPENSE 548,990 TAXES 134,592 OTHER DEDUCTIONS 4,597 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 1,247,185 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 PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2022 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 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 3,622,541 OFFICE SUPPLIES 550,564 OUTSIDE SERVICES 199,006 INJURIES AND DAMAGES 253,738 REGULATORY COMMISSION 116,303 DIRECTORS 179,022 ANNUAL MEETING 123,900 MISCELLANEOUS GENERAL 542,262 MISCELLANEOUS FIBER 15,940 MAINTENANCE OF GENERAL PLANT 986,621 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,589,897 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (162,000) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,219,566) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,318,446) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,889,885 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,688,893. PATRONAGE CAPITAL RETIRED - TOTAL -309,575. NET CHANGE IN MEMBERSHIPS 8,000. DONATED CAPITAL 5,332. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. TAYLOR ELECTRIC TRUST PO BOX 250 MERKEL TX 79536 262612715 CHARITY TX 501(C)(3) LINE 10 TAYLOR ELECTRIC COOPERATIVE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 TAYLOR ELECTRIC TRUST N N/A - LESS THAN $50,000 TAYLOR ELECTRIC TRUST O N/A - LESS THAN $50,000