2023-11-15T19:22:43-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 752701263 TRINITY VALLEY ELECTRIC COOPERATIVE INC TRIN 9729322214 PO BOX 888 KAUFMAN TX 75142 ROBERT WHITE CFO 9729322214 2023-10-26 1 ROBERT WHITE 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-10-26 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z JEFFREY L LANE PO BOX 888 KAUFMAN TX 75142 236190035 0 X WWW.TVEC.NET X 1997 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 204 0 0 0 0 0 162307096 234206423 194910 450504 451397 1520948 162953403 236177875 2291 7448 9126613 12818976 16016078 17523234 0 0 0 137615226 204309692 162760208 234659350 193195 1518525 385021756 421037619 217276255 232631218 167745501 188406401 TRINITY VALLEY ELECTRIC COOPERATIVE, INC. IS COMMITTED TO DELIVER SAFE AND RELIABLE ELECTRIC POWER AT A COMPETITIVE PRICE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 83,220 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 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 82 0 204 1 0 0 0 0 0 230072207 6260100 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ROBERT WHITECFO 9729322214 1800 HWY 243 EAST KAUFMAN TX 75142 X HOWARD TILLISON CHAIRMAN 13.80 X X 12900 0 0 CAROLYN MINOR VICE CHAIRMAN 11.00 X X 12750 0 0 JO ANN HANSTROM SECRETARY 9.80 X X 11250 0 0 JERRY PRIEST DIRECTOR (JAN-JUNE) 8.10 X 13895 0 0 JEFF PRIEST DIRECTOR (JULY-DEC) 10.50 X 6900 0 0 EDWARD REEVE DIRECTOR 8.50 X 10650 0 0 PAUL WEATHERFORD DIRECTOR 8.50 X 28840 0 0 JACK ENDRES DIRECTOR 9.50 X 10450 0 0 JEFFREY LANE CEO/GENERAL MANAGER 50.00 2.00 X 315385 0 231236 THOMAS WATSON COO/ASST. GENERAL MANAGER 45.00 X 234902 0 189335 ROBERT WHITE CFO 45.00 X 165924 0 58864 RODNEY WESLEY DIRECTOR OF ENGINEERING/OPERATIONS 50.00 X 183890 0 153668 GARY SHERRARD MANAGER OF SUB/TRANS 40.00 X 158572 0 134451 DONNA HINDMAN DIRECTOR OF CORP SERVICES 45.00 X 156611 0 78345 THOMAS DURDEN MANAGER OF OPERATIONS 45.00 X 156601 0 121457 TIMOTHY CRAIG MANAGER OF ENGINEERING 50.00 X 152907 0 76378 PHILLIP HARRISON MANAGER OF OPERATIONS 55.00 X 152676 0 97711 BOBBI BYFORD DIRECTOR OF CORP RELATIONS 55.00 X 152202 0 70083 RAYMOND CHOYCE JOURNEYMAN 60.00 X 173590 0 57717 HECTOR ZARATE 1ST CLASS LINEMAN 63.00 X 162464 0 45779 ANDREW SMITH CREW FOREMAN 50.00 X 154651 0 71899 SCOTT STEWART CREW FOREMAN 50.00 X 154511 0 81279 JOHN JACKSON OPERATIONS SUPERVISOR 40.00 X 152853 0 62354 2735374 0 1530556 65 0 1 0 TEXAS STATE UTILITIES 3112 WICHITA CT FORT WORTH TX 75140 OVERHEAD/UNDERGROUND CONTRACTOR 6140204 RAMIREZ TREE SERVICE INC PO BOX 1975 ATHENS TX 75751 RIGHT OF WAY CONTRACTOR 2219042 CS TREE SERVICES 6402 RAYMOND RD KAUFMAN TX 75142 RIGHT OF WAY CLEARING 2131401 J&L UTILITY SERVICES PO BOX 817 EDGEWOOD TX 75117 OVERHEAD CONTRACTOR 1871030 MISSION SITE SERVICE 416 INTERCHANGE ST SUITE 200 MCKINNEY TX 75701 UNDERGROUND CONTRACTOR 1574089 18 X SALES OF ELECTRICITY 221000 224459363 224459363 PATRONAGE DIVIDENDS 221000 7605850 7605850 SERVICE FEES 221000 1349098 1349098 TRANSMISSION WHEELING 211100 792112 792112 234206423 332383 332383 127086 8965 118121 118121 118121 2534 3195 -661 -661 BOND SECURITIZATION P'SHIP INCOME 221000 1068682 1068682 POLE ATTACHMENT INCOME 221000 452927 452927 1521609 236177875 235392565 0 785310 X 7448 12818976 3148833 8749995 1019932 3819818 784656 7078897 14921457 PURCHASED POWER 166947951 DISTRIBUTION EXPENSE 8899328 ADMIN & GENERAL EXPENSE 3687830 CUSTOMER ACCOUNTS 2031776 742453 234659350 3647850 4388364 750031 750031 6260592 8040366 1240815 1410496 1097712 854295 474448432 137748353 313680407 336700079 54870858 64554907 3473491 4339081 385021756 421037619 20856082 32085880 779317 786818 157272369 158329976 38368487 41428544 217276255 232631218 X 657290 682620 0 0 167088211 187723781 167745501 188406401 385021756 421037619 X 1518525 19142375 X X 0 1 X 1 0 0 1 X 2684386 2684386 19650246 4336446 15313800 431987301 133411907 298575394 20126499 20126499 336700079 PATRONAGE CAPITAL - TEC 2717263 C PATRONAGE CAPITAL - CFC 6064237 C PATRONAGE CAPITAL - RAYBURN 49079730 C PATRONAGE CAPITAL - SEDC 448267 C PATRONAGE CAPITAL - NRTC 109802 C INVESTMENTS IN CTC - CFC 3259514 C OTHER INVEST ASSOC. ORGANIZATIONS 1100 C INVESTMENTS IN BOND SECURITIZATION PARTNERSHIP 2874994 C 64554907 ACCUMULATED PROVISION FOR PENSION & BENEFITS 18325472 CONSUMER DEPOSITS 2861342 ACCRUED OPERATING TAXES 122718 OTHER ACCRUED LIABILITIES 101719 DEFERRED CREDIT - NTMWD FUND 500963 DEFERRED CREDIT - WEST TX ICS FUND 250031 DEFERRED CREDIT - ADVANCE AID TO CONSTRUCTION 719349 ACCRUED POWER COST - OVERCOLLECTED 18546950 41428544 X 236177875 0 236177875 0 236177875 221840374 0 221840374 12818976 12818976 234659350 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 XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 12,818,976. 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 ALLOCATED OR TO BE 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". X X X X 0 0 0 JEFFREY LANE CEO/GENERAL MANAGER 293799 0 2397 0 19189 0 195497 0 35739 0 546621 0 0 0 THOMAS WATSON COO/ASST. GENERAL MANAGER 220905 0 1395 0 12602 0 153266 0 36069 0 424237 0 0 0 RODNEY WESLEY DIRECTOR OF ENGINEERING/OPERATIONS 173062 0 392 0 10436 0 140486 0 13182 0 337558 0 0 0 GARY SHERRARD MANAGER OF SUB/TRANS 144838 0 4426 0 9308 0 111087 0 23364 0 293023 0 0 0 THOMAS DURDEN MANAGER OF OPERATIONS 143435 0 3926 0 9240 0 87928 0 33529 0 278058 0 0 0 PHILLIP HARRISON MANAGER OF OPERATIONS 142295 0 2426 0 7955 0 63674 0 34037 0 250387 0 0 0 SCOTT STEWART CREW FOREMAN 151494 0 2426 0 591 0 47280 0 33999 0 235790 0 0 0 DONNA HINDMAN DIRECTOR OF CORP SERVICES 152811 0 1426 0 2374 0 65454 0 12891 0 234956 0 0 0 RAYMOND CHOYCE JOURNEYMAN 171461 0 392 0 1737 0 37886 0 19831 0 231307 0 0 0 TIMOTHY CRAIG MANAGER OF ENGINEERING 150137 0 1426 0 1344 0 63553 0 12825 0 229285 0 0 0 ANDREW SMITH CREW FOREMAN 146540 0 2426 0 5685 0 39047 0 32852 0 226550 0 0 0 ROBERT WHITE CFO 162878 0 2392 0 654 0 25613 0 33251 0 224788 0 0 0 BOBBI BYFORD DIRECTOR OF CORP RELATIONS 141885 0 2426 0 7891 0 43605 0 26478 0 222285 0 0 0 JOHN JACKSON OPERATIONS SUPERVISOR 138118 0 2426 0 12309 0 39623 0 22731 0 215207 0 0 0 HECTOR ZARATE 1ST CLASS LINEMAN 159688 0 2392 0 384 0 13678 0 32101 0 208243 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. 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. JEFFREY L. LANE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 189,700 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,797 TOTAL REPORTED IN COLUMN C $ 195,497 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (189,700) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 66,691 EXPENSE TO THE COOPERATIVE $ 72,488 THOMAS A. WATSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 148,706 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,560 TOTAL REPORTED IN COLUMN C $ 153,266 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (148,706) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,649 EXPENSE TO THE COOPERATIVE $ 55,209 RODNEY WESLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 137,027 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,459 TOTAL REPORTED IN COLUMN C $ 140,486 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (137,027) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,479 EXPENSE TO THE COOPERATIVE $ 41,938 GARY SHERRARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 108,196 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,891 TOTAL REPORTED IN COLUMN C $ 111,087 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (108,196) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,109 EXPENSE TO THE COOPERATIVE $ 35,000 THOMAS DURDEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 85,046 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,882 TOTAL REPORTED IN COLUMN C $ 87,928 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (85,046) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,072 EXPENSE TO THE COOPERATIVE $ 34,954 PHILLIP HARRISON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,818 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,856 TOTAL REPORTED IN COLUMN C $ 63,674 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,818) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,072 EXPENSE TO THE COOPERATIVE $ 34,928 SCOTT STEWART: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,331 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,949 TOTAL REPORTED IN COLUMN C $ 47,280 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,331) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,078 EXPENSE TO THE COOPERATIVE $ 28,027 DONNA HINDMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,340 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,114 TOTAL REPORTED IN COLUMN C $ 65,454 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (62,340) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,679 EXPENSE TO THE COOPERATIVE $ 37,793 RAYMOND CHOYCE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,886 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 37,886 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,886) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,494 EXPENSE TO THE COOPERATIVE $ 22,494 TIMOTHY W. CRAIG: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,557 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,996 TOTAL REPORTED IN COLUMN C $ 63,553 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,557) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,600 EXPENSE TO THE COOPERATIVE $ 36,596 BOBBI BYFORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 40,537 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,068 TOTAL REPORTED IN COLUMN C $ 43,605 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (40,537) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,834 EXPENSE TO THE COOPERATIVE $ 35,902 ANDREW SMITH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,083 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,964 TOTAL REPORTED IN COLUMN C $ 39,047 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,083) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,078 EXPENSE TO THE COOPERATIVE $ 28,042 ROBERT WHITE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,336 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,277 TOTAL REPORTED IN COLUMN C $ 25,613 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,336) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,845 EXPENSE TO THE COOPERATIVE $ 40,122 JOHN JACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,797 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,826 TOTAL REPORTED IN COLUMN C $ 39,623 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,797) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,612 EXPENSE TO THE COOPERATIVE $ 33,438 HECTOR ZARATE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 10,469 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,209 TOTAL REPORTED IN COLUMN C $ 13,678 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (10,469) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,908 EXPENSE TO THE COOPERATIVE $ 23,117 PART I, LINE 19: IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $1,518,525, WHICH IS THE EFFECT OF NON-OPERATING MARGINS BEING RETAINED TO OFFSET A PRIOR YEAR LOSS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD:NON-OPERATING MARGINS RETAINED $ 1,518,525 (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 1,518,525 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $12,818,976 TOTAL 2022 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $14,337,501 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 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 THE BOARD OF DIRECTORS AND EMPLOYEES OF THE COOPERATIVE MUST DISCLOSE ANY SITUATION WHICH VIOLATES, OR MAY APPEAR TO VIOLATE THE INTENT OF THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 A COMPENSATION COMMITTEE COMPRISED OF MEMBERS OF THE BOARD USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION SURVEY, AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. OTHER INTERNAL AND/OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. THE COMPENSATION COMMITTEE RECOMMEND THE CEOS SALARY TO THE BOARD OF DIRECTORS FOR APPROVAL AFTER REVIEWING PERFORMANCE AND ALL RELEVANT DATA. THE CEO AND COMPENSATION COMMITTEE UTILIZES THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY SHOWS COMPARATIVE SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. OTHER INTERNAL AND/OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. 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. ADDITIONALLY, THE COOPERATIVE DISTRIBUTES A SUMMARIZED COPY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL MEETING REPORT. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY ANNUALLY PROVIDES EACH DIRECTOR/TRUSTEE WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DIRECTOR JERRY PRIEST PASSED AWAY DURING 2022; THEREFORE, THE PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES FORM 2021 TO 2022. 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, DENTAL, VISION, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, 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 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: 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 SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS 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 $11,898,828 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (107,635) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (1,211,528) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,087,433 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 768,967 TOTAL WAGES ACCRUED AND/OR PAID $16,436,065 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 4,038,475 OFFICE SUPPLIES 1,554,783 OUTSIDE SERVICES EMPLOYED 424,925 INSURANCE 1,258,898 REGULATORY COMMISSION 370,701 DIRECTORS 287,175 MISCELLANEOUS GENERAL 20,400 MAINTENANCE OF GENERAL PLANT 612,149 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $ 8,567,506 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINES 5 (107,635) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,898,929) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,873,112) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,687,830 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 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 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 ON FORM 990. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GAAP, HOWEVER. FORM 990, PART IX, LINE 1: 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. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 25,330. OTHER COMPREHENSIVE INCOME - PENSION & BENEFITS 10,496,965. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 12,818,976. PATRONAGE CAPITAL RETIRED -4,198,896. 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. TVEC CHARITABLE FOUNDATION 1800 HWY 243 E KAUFMAN TX 75142 455548476 CHARITABLE GRANTS TX 501(C)(3) LINE 7 TRINITY VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 TVEC CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 TVEC CHARITABLE FOUNDATION O N/A - LESS THAN $50,000