2023-11-15T23:50:59-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 710056715 FIRST ELECTRIC COOPERATIVE CORPORATION FIRS 5019824545 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 MELISSA WOOD CFO 5019824545 2023-11-09 1 MELISSA WOOD 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-01 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z DON CRABBE 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 273862918 0 X WWW.FIRSTELECTRIC.COOP X 1937 AR TO PROVIDE QUALITY, RELIABLE AND AFFORDABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 259 0 7008337 0 0 0 228470168 257131614 3750361 7627059 2136186 8473857 234356715 273232530 25213 27595 18248867 18817879 22866221 24725377 0 0 0 193709884 233208529 234850185 276779380 -493470 -3546850 572577962 665270338 280952297 357980934 291625665 307289404 FIRST ELECTRIC, IMPROVING QUALITY OF LIFE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 100,788 ACTIVE SERVICES AT YEAR END. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 246 0 259 1 1 1 0 0 0 0 253464796 20316890 0 0 0 X 9 9 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X MELISSA WOOD CFO 5019854531 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 720765264 X THOMAS HASTY JR DIRECTOR 7.60 1.00 X 39375 0 0 ROBERT HILL DIRECTOR (JAN-JUNE) 3.90 1.00 X 21701 0 0 TRACY HUDSPETH VICE CHAIRMAN 9.00 1.00 X X 39160 0 0 DAVID LUEBKE DIRECTOR 9.00 1.00 X 39560 0 0 RICK LOVE CHAIRMAN 12.40 1.00 X X 41961 0 0 ROBERT MAERTENS DIRECTOR 10.40 1.00 X 18769 0 0 KARISSA RUSHING SECRETARY/TREASURER 9.90 1.00 X X 36660 0 0 LARRY WOOD DIRECTOR 7.70 1.00 X 39252 0 0 TODD PROTHRO DIRECTOR 10.50 1.00 X 39160 0 0 JOHN ROLAND DIRECTOR (JUNE-DEC) 5.30 1.00 X 19780 0 0 DON CRABBE PRESIDENT/CEO 49.00 1.00 X 702861 0 185686 MELISSA WOOD CFO 45.00 X 230412 0 31519 RANDY EVERETT CIO 45.00 1.00 X 205731 0 217788 JERRY DRISKILL VP - OPERATIONS 45.00 X 215210 0 137316 DANIEL RIEDEL VP - ENGINEERING 45.00 X 226202 0 157967 ASHLEY GARRINGER VP - ADMINISTRATION 45.00 X 197219 0 125081 TONYA SEXTON VP - MARKETING 45.00 X 190499 0 31834 THEODORE DEWEESE JR SERVICEMAN 50.00 X 171084 0 72125 KAREN SOUTHERLAND DISTRICT MANAGER 50.00 X 167928 0 22188 JAMES BRANSCUM DISTRICT MANAGER 50.00 X 154774 0 118016 DAVID JONES FIELD ENGINEER SUPERVISOR 45.00 X 147804 0 58680 CAROL MESHELL DISTRICT MANAGER 50.00 X 147522 0 24235 3092624 0 1182435 68 0 1 0 STUART C IRBY INC PO BOX 843959 DALLAS TX 75284 FTTH MATERIALS AND SUPPORT 37017659 KLASSMEYER CONSTRUCTION INC PO BOX 847 CONWAY AR 72033 FIBER CONSTRUCTION LABOR 16423389 QUANTA TELECOMMUNICATION SERVICES 5051 WESTHEIMER RD STE 900 HOUSTON TX 77056 FIBER CONSTRUCTION LABOR 11670136 ITG COMMUNICATIONS LLC 152 MOLLY WALTON DR HENDERSONVILLE TN 37075 FIBER CONSTRUCTION LABOR 6274855 UTILITY LINES CONSTRUCTION INC PO BOX 827464 PHILADELPHIA PA 19182 POWERLINE CONSTRUCTION 6027661 24 X SALES OF ELECTRICITY 221000 251119967 251119967 PATRONAGE DIVIDENDS 221000 4080714 4080714 SERVICE FEES 221000 1855594 1855594 OTHER PROGRAM REVENUE 221000 67401 67401 SURGE PROTECTOR REVENUE 221000 7938 7938 257131614 3337397 3337397 5073 5073 776 0 776 776 776 4860475 570813 4289662 4289662 4289662 252445 59575 192870 192870 INTERNET SERVICES 221000 7098613 7098613 POLE ATTACHMENT INCOME 221000 1267577 1267577 BROADBAND P'SHIP LOSS 517000 -91052 -91052 8275138 273232530 261614146 7008337 4610047 X 27595 18817879 3190703 13739039 2608426 4011621 1175588 11181727 18572759 PURCHASED POWER 170908067 DISTRIBUTION EXPENSE 18621967 CONSUMER EXPENSE 9477064 ADMIN & GENERAL EXPENSE 4360542 86403 276779380 5569854 9680014 433211 6550668 18010478 15433375 843585 934379 11570268 11050339 729058652 212006287 441894948 517052365 83513488 82595193 49152 101876 10692978 21872129 572577962 665270338 20814115 26778251 218792384 293614186 41345798 37588497 280952297 357980934 X 794005 805070 0 0 290831660 306484334 291625665 307289404 572577962 665270338 X -3546850 19210589 X X 0 1 X 1 0 4255803 4255803 22253029 8569853 13683176 614851172 203436434 411414738 87698648 87698648 517052365 PATRONAGE CAPITAL - CFC 8822528 C PATRONAGE CAPITAL - AECC 55279779 C PATRONAGE CAPITAL - AECI 5692143 C PATRONAGE CAPITAL - NISC 519487 C PATRONAGE CAPITAL - NRTC 608194 C PATRONAGE CAPITAL - CRC 36780 C CAPITAL TERM CERTIFICATES - CFC 9899812 C ACCUMULATED DIVIDENDS - ARESIT 74190 C MEMBERSHIPS 3200 C ENERGY EFFICIENCY LOANS 5251 C EXECUTIVE COMPENSATION OFFSET 883119 C IRRIGATION LINE EXTENSION 572517 C DIAMOND STATE NETWORKS LLC 198193 C 82595193 CONSUMER DEPOSITS AND PREPAYMENTS 5935921 ACCUMULATED PROVISION FOR PENSIONS AND OTHER POST-RETIREMENT BENEFITS 22922020 DEFERRED CREDITS 2630431 ACCRUED PROPERTY TAXES 4225140 ACCRUED OPERATING TAXES - OTHER 512183 OTHER LIABILITIES 1362802 37588497 X 273240704 0 273240704 -8174 -8174 273232530 257969675 0 257969675 18809705 18809705 276779380 PART X, LINE 2: THE COOPERATIVE FOLLOWS 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 (IRS) AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS -8,174. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 18,817,879. GENERAL EXPENSES RECLASSIFIED TO NON-OPERATING MARGINS -8,174. 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". 0 FIRST ELECTRIC TRUST 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 311586917 501(C)(3) 16524 0 TO PAY FOR DIRECT OPERATING EXPENSES FOR THE TRUST. NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP COOPERATIVE WAY DULLES VA 20166 520891669 501 (C)(4) 10000 0 INTEGRITY FUND DONATION FOR COOPERATIVE SUPPORT 1 1 SCHEDULE I, PART II: GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE PRIMARILY MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X X 0 1 0 DON CRABBE PRESIDENT/CEO 495100 0 932 0 206829 0 163304 0 22382 0 888547 0 0 0 RANDY EVERETT CIO 191992 0 923 0 12816 0 193373 0 24415 0 423519 0 0 0 DANIEL RIEDEL VP - ENGINEERING 209970 0 923 0 15309 0 149735 0 8232 0 384169 0 0 0 JERRY DRISKILL VP - OPERATIONS 200201 0 2145 0 12864 0 110938 0 26378 0 352526 0 0 0 ASHLEY GARRINGER VP - ADMINISTRATION 194219 0 783 0 2217 0 104318 0 20763 0 322300 0 0 0 JAMES BRANSCUM DISTRICT MANAGER 138627 0 989 0 15158 0 92803 0 25213 0 272790 0 0 0 MELISSA WOOD CFO 213928 0 1041 0 15443 0 21651 0 9868 0 261931 0 0 0 THEODORE DEWEESE JR SERVICEMAN 168967 0 1398 0 719 0 44761 0 27364 0 243209 0 0 0 TONYA SEXTON VP - MARKETING 186191 0 711 0 3597 0 18892 0 12942 0 222333 0 0 0 DAVID JONES FIELD ENGINEER SUPERVISOR 139226 0 1164 0 7414 0 50958 0 7722 0 206484 0 0 0 KAREN SOUTHERLAND DISTRICT MANAGER 134754 0 0 0 33174 0 2820 0 19368 0 190116 0 0 0 CAROL MESHELL DISTRICT MANAGER 139182 0 798 0 7542 0 14152 0 10083 0 171757 0 0 0 PART I, LINE 4B DON CRABBE PARTICIPATES IN SEPARATE SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLANS. TOTAL BENEFITS VESTED, PAID, AND INCLUDED AS W-2 WAGES DURING THE YEAR FOR ALL PLANS WERE $7,306. 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 ENVIORNMENT. 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. DON CRABBE: ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 163,304 EMPLOYER CONTRIBUTION TO 401(K) 0 TOTAL REPORTED IN COLUMN C $ 163,304 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (163,304) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 186,665 EXPENSE TO THE COOPERATIVE $ 186,665 RANDY EVERETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 189,399 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,974 TOTAL REPORTED IN COLUMN C $ 193,373 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (189,399) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,143 EXPENSE TO THE COOPERATIVE $ 77,117 DANIEL RIEDEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 145,517 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,218 TOTAL REPORTED IN COLUMN C $ 149,735 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (145,517) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 76,662 EXPENSE TO THE COOPERATIVE $ 80,880 JERRY DRISKEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 106,757 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,181 TOTAL REPORTED IN COLUMN C $ 110,938 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (106,757) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 75,372 EXPENSE TO THE COOPERATIVE $ 79,553 ASHLEY GARRINGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $100,308 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,010 TOTAL REPORTED IN COLUMN C $104,318 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (100,308) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 73,533 EXPENSE TO THE COOPERATIVE $ 77,543 JAMES BRANSCUM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 89,881 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,922 TOTAL REPORTED IN COLUMN C $ 92,803 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (89,881) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 53,789 EXPENSE TO THE COOPERATIVE $ 56,711 MELISSA WOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 21,651 TOTAL REPORTED IN COLUMN C $ 21,651 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 21,651 THEODORE DEWEESE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,845 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,916 TOTAL REPORTED IN COLUMN C $ 44,761 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,845) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,101 EXPENSE TO THE COOPERATIVE $ 37,017 TONYA SEXTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,892 TOTAL REPORTED IN COLUMN C $ 18,892 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 18,892 DAVID JONES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,163 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,795 TOTAL REPORTED IN COLUMN C $ 50,958 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,163) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,440 EXPENSE TO THE COOPERATIVE $ 53,235 KAREN SOUTHERLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,820 TOTAL REPORTED IN COLUMN C $ 2,820 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 53,645 EXPENSE TO THE COOPERATIVE $ 56,465 CAROL MESHELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,152 TOTAL REPORTED IN COLUMN C $ 14,152 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 0 EXPENSE TO THE COOPERATIVE $ 14,152 FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIP: DON CRABBE (PRESIDENT/CEO) AND DAVID LUEBKE (DIRECTOR) BOTH SERVE ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVE CORPORATION (AECC) AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. DON CRABBE (PRESIDENT/CEO) AND RICK LOVE (CHAIRMAN) BOTH SERVE ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVES, INC (AECI) AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. MELISSA WOOD (CFO) AND RICK LOVE (CHAIRMAN) BOTH SERVE ON THE BOARD OF MID ARK UTILITIES AT THE REQUEST OF AND BENEFIT OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES MADE: ARTICLE V, BOARD OF DIRECTORS, SECTION 4, NOMINATIONS, HAS BEEN REVISED TO SAY, "NOMINATIONS OF ELIGIBLE CANDIDATES MADE BY PETITION, IF ANY, RECEIVED AT LEAST FORTY-FIVE (45) DAYS, BUT NOT MORE THAN SIXTY (60) DAYS, BEFORE SAID MEETING SHALL BE INCLUDED ON THE OFFICIAL BALLOT." THIS WAS AMENDED FROM PREVIOUSLY STATING AT LEAST THIRTY (30) DAYS AND NOT MORE THAN FORTY (40) DAYS. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.FIRSTELECTRIC.COOP, IN THE "ABOUT FIRST ELECTRIC" SECTION. 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. INCREASE IN BONDED INDEBTEDNESS 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, REVIEW AND APPROVAL PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS AND ITS OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM AND SUBMIT THEM TO THE PRESIDENT/CEO AND BOARD CHAIRMAN. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT CONSULTANT AS WELL AS A RETENTION AND COMPENSATION PLAN COMMITTEE WHEN DETERMINING THE COMPENSATION OF THE PRESIDENT/CEO. THE CEO USES THE EXPERTISE OF AN INDEPENDENT CONSULTANT AS WELL AS A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT ARKANSAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO ALL MEMBERS OF THE COOPERATIVE PRIOR TO THE ANNUAL MEETING. THE COOPERATIVE'S BYLAWS AND ANNUAL REPORT ARE ALSO AVAILABLE ON THE COOPERATIVE'S WEBSITE. THE COOPERATIVE MAKES A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS AVAILABLE AT THE ANNUAL MEETING AND UPON REQUEST OF ANY MEMBER. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR 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 AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DIRECTOR, ROBERT HILL, RETIRED IN JUNE OF 2022; THEREFORE THE PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON DURING THE PREPARATION OF THE 2022 FORM 990. THERE WERE NO KNOWN CHANGES FROM 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. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 10% OF A PARTICIPATING EMPLOYEE'S BASE SALARY FOR ALL EMPLOYEES HIRED IN 2006 OR LATER YEARS. FOR ALL EMPLOYEES HIRED PRIOR TO 2006 THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION OF UP TO 2% FOR ALL PARTICIPATING EMPLOYEES. 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, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. ONLY EMPLOYEES HIRED PRIOR TO 2006 ARE ELIGIBLE TO PARTICIPATE IN THE MULTI-EMPLOYER DEFINED BENEFIT PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) ARE 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 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: ALTHOUGHT THE COOPERATIVE IS NO LONGER AN 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 $16,929,742 LESS: DIRECTOR FEES & BENEFITS REPORTED ON FORMS 1099-NEC (335,378) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (887,191) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,263,824 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 64,085 TOTAL WAGES ACCRUED AND/OR PAID $20,035,082 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: SALES $ 3,471 SUBSIDIARY PROVISION FOR FEDERAL AND STATE TAXES (330,902)TAXES 8,280 TRANSMISSION 404,764 OTHER DEDUCTIONS 790 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 86,403 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 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 IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 3,745,369 OFFICE SUPPLIES 1,393,417 OUTSIDE SERVICES 129,844 INSURANCES 259,019 EMPLOYEE BENEFITS 485,825 DIRECTORS 559,776 ANNUAL MEETING 74,974 CAPITAL CREDITS 55,074 MISCELLANEOUS GENERAL 1,019,437 FIBER NETWORK STUDY 10,920 REGULATORY COMMISSION 454,247 MAINTENANCE OF GENERAL PLANT 730,314 CONNECT 2 FIRST ADMIN & GENERAL EXPENSE 311,022 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 9,229,238 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (335,378) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,919,457) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,613,858) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,360,542 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 18,817,879. PATRONAGE CAPITAL RETIRED -7,812,787. PATRONAGE CAPITAL RETIRED - DISCOUNT 96,524. UNCLAIMED PATRONAGE RETIREMENTS RETAINED UNDER STATE LAW 1,180,240. NET CHANGE IN MEMBERSHIPS 11,065. OTHER COMPREHENSIVE INCOME PROVISION FOR POST-RETIREMENT BENEFIT OBLIGATION 6,917,668. CONNECT2FIRST LLC 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 850617500 INTERNET SERVICE PROVIDER AR 7007753 17049595 FIRST ELECTRIC COOPERATIVE CORPORATION FIRST ELECTRIC TRUST 1000 S JP WRIGHT LOOP ROAD JACKSONVILLE AR 72076 311586917 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE COOP'S SERVICE AREA AR 501(C)(3) LINE 7 FIRST ELECTRIC COOPERATIVE CORPORATION 1 FIRST ENERGY SERVICES OF ARKANSAS INC PO BOX 5018 JACKSONVILLE AR 72078 621695757 INACTIVE AR FIRST ELECTRIC COOPERATIVE CORPORATION C 1.00000 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 FIRST ELECTRIC TRUST B N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST L N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST N N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST O N/A - LESS THAN $50,000 FIRST ELECTRIC TRUST Q N/A - LESS THAN $50,000