2023-11-06T16:46:04-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 880086059 WELLS RURAL ELECTRIC COMPANY WELL 7757523328 PO BOX 365 WELLS NV 89835 CLAY R FITCH CEO 7757523328 2023-10-25 1 CLAY FITCH 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-10-25 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z CLAY R FITCH PO BOX 365 WELLS NV 89835 45338751 0 X WWW.WREC.COOP X 1958 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 11 63 0 432 0 0 0 45122468 45185922 42833 108859 928432 43970 46093733 45338751 42188 43362 3057721 3019625 5602965 5976030 0 0 0 36494623 36245864 45197497 45284881 896236 53870 65645854 65706155 41204442 37375849 24441412 28330306 WELLS RURAL ELECTRIC COMPANY IMPROVES THE QUALITY OF LIFE OF THE COMMUNITIES WE SERVE BY MEETING THE CHANGING NEEDS OF OUR MEMBERS THROUGH THE GUIDING PRINCIPLES OF OUR LOCALLY CONTROLLED COOPERATIVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 6,312 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 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 0 0 1 48 0 63 1 1 1 0 0 0 0 45648905 801025 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X JANNETTE RITCHIE 7757523328 1451 HUMBOLDT AVENUE WELLS NV 89835 X GERALD ANDERSON DIRECTOR 5.50 X 38215 0 0 KIRK DAHL DIRECTOR 5.50 X 18600 0 0 M JONATHAN DAHL VICE PRESIDENT 5.50 X X 23800 0 0 SCOTT EGBERT PRESIDENT 5.50 X X 44828 0 0 OUIDA MADISON DIRECTOR 5.50 X 21250 0 0 ALFRED MONTES DE OCA DIRECTOR 5.50 X 18600 0 0 LOIS NANNINI DIRECTOR 5.50 X 34423 0 0 JIM WHITED SECRETARY/TREASURER 5.50 X X 18600 0 0 BRUCE WIDMER DIRECTOR 5.50 X 20025 0 0 ROBERT WILCOX DIRECTOR 5.50 X 23231 0 0 TONY MACIAS DIRECTOR 5.50 X 20750 0 0 CLAY R FITCH CHIEF EXECUTIVE OFFICER 40.00 X 306687 0 123729 THAD BALLARD DIRECTOR OF ADMIN & POWER SUPPLY 40.00 X 131179 0 158529 JEFFERY R CROMIE DIRECTOR OF STRATEGY & DEVELOPMENT 40.00 X 138682 0 110938 CYNTHIA GOOD DIRECTOR OF ACCT, FINANCE, HR 40.00 X 105163 0 105114 RYAN BRODSHO DIRECTOR OF OPERATIONS 40.00 X 138540 0 100072 KYLE MURPHY LINE FOREMAN 40.00 X 152792 0 73416 ZANE PETERS JOURNEYMAN LINEMAN 40.00 X 151367 0 71401 JACOB MANNING LINE FOREMAN 40.00 X 152872 0 82519 JAMES WINES LINE FOREMAN 40.00 X 142808 0 47614 COLTON RASMUSSEN JOURNEYMAN LINEMAN 40.00 X 144768 0 32594 1847180 0 905926 20 0 1 0 WESTERN LINE BUILDERS PO BOX 614 WELLS NV 89835 LINE CONSTRUCTION 365055 EFFICIENCY SERVICES PO BOX 1306 NORTH PLAINS OR 97133 ENERGY EFFICIENCY SERVICES 224373 POWER ENGINEERS PO BOX 855321 MINNEAPOLIS MN 55485 ENGINEERING/ENVIRONMENTAL CONSULTING 201701 MAPPING SOLUTIONS ETC 628 PALACE PARKWAY SPRING CREEK NV 89815 CONSULTING 127107 CHAVIRA TREE TRIMMING 670 26TH STREET BATTLE MOUNTAIN NV 89820 TREE TRIMMING 114150 6 X SALES OF ELECTRICITY 221000 44217442 44217442 TRANSMISSION LEASE 221000 301500 301500 PATRONAGE DIVIDENDS 221000 254354 254354 SERVICE & OTHER FEES 221000 176050 176050 ELECTRIC WIRING 221000 124602 124602 111974 111974 45185922 108859 108859 POLE ATTACHMENT INCOME 221000 43538 43538 SECURITY & MONITORING 561700 432 432 43970 45338751 45185922 432 152397 X 43362 3019625 1700955 2443364 253441 1332424 245846 623069 2645111 PURCHASED POWER 28885470 ADMIN & GENERAL EXPENSE 1665439 DISTRIBUTION EXPENSE 1481518 CONSUMER EXPENSE 492230 453027 45284881 5476900 4157770 7504540 7589099 3434359 3617226 1096117 1280753 1336285 1054312 95314909 50326057 44314419 44988852 1917376 2467563 565858 550580 65645854 65706155 4976396 4302582 18101917 17335999 18126129 15737268 41204442 37375849 X 0 0 0 0 24441412 28330306 24441412 28330306 65645854 65706155 X 53870 3835024 X X 0 1 X 0 0 632296 632296 16374640 16374640 76609468 50326057 26283411 1698505 1698505 44988852 CONSUMER DEPOSITS 103327 POSTRETIREMENT BENEFITS 8981952 ACCRUED OPERATING TAXES 106384 DEFERRED CREDITS - CONSERVATION RATE CREDIT PROGRAM 1623280 DEFERRED CREDITS - AID TO CONSTRUCTION 3870781 DEFERRED CREDITS - OTHER 1051544 15737268 X 45028283 0 45028283 310468 310468 45338751 41954788 0 41954788 3330093 3330093 45284881 PART X, LINE 2: THE COMPANY HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COMPANY IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COMPANY 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 310,468. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 310,468. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,019,625. PART VIII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 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 VIII 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% 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". 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 ELKO COUNTY 4H SALE BOARD PO BOX 456 WELLS NV 89835 300506241 6913 0 LIVESTOCK SALE WELLS FAMILY RESOURCE CENTER 261 1ST ST WELLS NV 89835 880376097 501(C)(3) 6133 0 CAMPS 1 1 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 0 CLAY R FITCH CHIEF EXECUTIVE OFFICER 272783 0 0 0 33904 0 91473 0 32256 0 430416 0 0 0 THAD BALLARD DIRECTOR OF ADMIN & POWER SUPPLY 129414 0 0 0 1765 0 119690 0 38839 0 289708 0 0 0 JEFFERY R CROMIE DIRECTOR OF STRATEGY & DEVELOPMENT 136907 0 0 0 1775 0 106838 0 4100 0 249620 0 0 0 RYAN BRODSHO DIRECTOR OF OPERATIONS 137669 0 0 0 871 0 64283 0 35789 0 238612 0 0 0 JACOB MANNING LINE FOREMAN 152089 0 100 0 683 0 45131 0 37388 0 235391 0 0 0 KYLE MURPHY LINE FOREMAN 151331 0 100 0 1361 0 36208 0 37208 0 226208 0 0 0 ZANE PETERS JOURNEYMAN LINEMAN 149539 0 100 0 1728 0 34013 0 37388 0 222768 0 0 0 CYNTHIA GOOD DIRECTOR OF ACCT, FINANCE, HR 103755 0 0 0 1408 0 73597 0 31517 0 210277 0 0 0 JAMES WINES LINE FOREMAN 141138 0 100 0 1570 0 21011 0 26603 0 190422 0 0 0 COLTON RASMUSSEN JOURNEYMAN LINEMAN 143593 0 100 0 1075 0 11062 0 21532 0 177362 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. CLAY R. FITCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 88,787 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,686 TOTAL REPORTED IN COLUMN C $ 91,473 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (88,787) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 107,537 EXPENSE TO COOPERATIVE $110,223 THAD BALLARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $118,387 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,303 TOTAL REPORTED IN COLUMN C $119,690 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (118,387) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 143,387 EXPENSE TO COOPERATIVE $144,690 JEFFERY CROMIE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $105,441 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,397 TOTAL REPORTED IN COLUMN C $106,838 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (105,441) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 127,707 EXPENSE TO COOPERATIVE $129,104 RYAN BRODSHO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,905 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,378 TOTAL REPORTED IN COLUMN C $ 64,283 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (62,905) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 76,189 EXPENSE TO COOPERATIVE $ 77,567 JACOB MANNING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 43,915 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,216 TOTAL REPORTED IN COLUMN C $ 45,131 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (43,915) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 53,189 EXPENSE TO COOPERATIVE $ 54,405 KYLE MURPHY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,992 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,216 TOTAL REPORTED IN COLUMN C $ 36,208 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,992) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,381 EXPENSE TO COOPERATIVE $ 43,597 ZANE PETERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,877 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,136 TOTAL REPORTED IN COLUMN C $ 34,013 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,877) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,820 EXPENSE TO COOPERATIVE $ 40,956 CYNTHIA GOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 72,504 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,093 TOTAL REPORTED IN COLUMN C $ 73,597 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (72,504) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 87,815 EXPENSE TO COOPERATIVE $ 88,908 JAMES WINES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,851 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,160 TOTAL REPORTED IN COLUMN C $ 21,011 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,851) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 10,720 EXPENSE TO COOPERATIVE $ 22,880 COLTON RASMUSSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 2,702 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,360 TOTAL REPORTED IN COLUMN C $ 11,062 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (2,702) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 3,273 EXPENSE TO COOPERATIVE $ 11,633 SPENCER EGBERT FAMILY RELATIONSHIP - DIRECTOR (S. EGBERT) 74790 EMPLOYMENT 0 KARLEY FITCH FAMILY RELATIONSHIP - OFFICER (C. FITCH) 38698 EMPLOYMENT 0 COLLIN SHELLEY FAMILY RELATIONSHIP - OFFICER (C. GOOD) 13715 EMPLOYMENT 0 FORM 990, PART I: 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 $53,870, WHICH IS THE EFFECT OF TRANSFERRING NON-OPERATING MARGINS TO OTHER EQUITIES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 53,870 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 3,019,625 TOTAL 2022 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 3,073,495 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 5. AMENDMENT TO THE BYLAWS 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. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION AND A PERFORMANCE EVALUATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEO/GENERAL MANAGERS FROM COOPERATIVES LOCATED IN NEVADA AND THE NORTHWEST. THE CEO USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEVADA AND THE NORTHWEST. FORM 990, PART VI, SECTION C, LINE 19 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. AUDITED FINANCIAL STATEMENTS ARE ALSO PUBLISHED IN THE RURALITE MAGAZINE ANNUALLY. ADDITIONALLY, POLICIES AND BY-LAWS OF THE COOPERATIVE ARE ALSO AVAILABLE ON THE COOPERATIVE'S WEBSITE. 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 THE 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 2: PATRONAGE DIVIDENDS 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 COMPANY IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS 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 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 4,144,319 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (282,322) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (598,382) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASED POWER 166,728 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 63,536 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 667,183 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 145,567 TOTAL WAGES ACCRUED AND/OR PAID $ 4,306,629 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 746,351 OFFICE SUPPLIES 148,624 OUTSIDE SERVICES EMPLOYED 354,189 INJURIES & DAMAGES 19,921 PENSION & BENEFITS 49,947 REGULATORY COMMISSION 43,547 MISCELLANEOUS GENERAL 306,009 DIRECTORS 493,662 ANNUAL & OTHER MEETINGS 127,955 DUES & MEMBERSHIPS 220,604 MAINTENANCE OF GENERAL PLANT 999,467 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,510,276 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (282,322) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (895,628) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (666,887) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,665,439 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: ELECTRICAL WIRING & INSTALLATION EXPENSE $ 310,468 TAXES 5,820 TRANSMISSION 113,483 OTHER DEDUCTIONS 23,256 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 453,027 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 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,019,625. PATRONAGE CAPITAL RETIRED - TOTAL -611,846. UNCLAIMED CAPITAL CREDITS RETAINED UNDER STATE LAW-NET 160,094. OCI - PENSIONS AND BENEFITS 1,267,151. 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. NEXT DOLLAR CHARITABLE FOUNDATION PO BOX 365 WELLS NV 89835 880336170 TO PROVIDE CHARITABLE GRANTS IN THE COOPERATIVE'S AREA. NV 501(C)(3) LINE 7 WELLS RURAL ELECTRIC COMPANY 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 NEXT DOLLAR CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 NEXT DOLLAR CHARITABLE FOUNDATION O N/A - LESS THAN $50,000