2023-09-13T15:47:22-05:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 611345109 KENERGY CORP KENE 8008444832 PO BOX 18 HENDERSON KY 42419 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 8008444832 2023-09-13 1 TRAVIS SIEWERT 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-09-06 X 0 AAL1 IAL1 2022 2023-04-26 12:10:37Z TRAVIS SIEWERT PO BOX 18 HENDERSON KY 42419 624237435 0 X WWW.KENERGYCORP.COM X 1999 KY TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 136 0 240069 85377 0 0 468832341 622472876 849787 395342 3909499 1179533 473591627 624047751 0 49422 5134690 1568806 12538196 12816051 0 0 0 455755854 609585527 473428740 624019806 162887 27945 260651880 278992513 176399305 193237199 84252575 85755314 SAFELY PROVIDE RELIABLE ELECTRIC SERVICES THAT ENHANCE THE QUALITY OF THE LIVES OF OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 59,214 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 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 1 0 1 42 0 136 1 1 1 0 0 0 0 0 0 622750667 1219350 0 0 0 X 11 11 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X TRAVIS SIEWERT VP FINANCE 8008444832 PO BOX 18 HENDERSON KY 42419 X WILLIAM REID CHAIRMAN 2.40 X X 13250 0 0 JOHNATHAN AYER VICE CHAIRMAN 4.00 X X 11700 0 0 CRAIG ROBERTS SECRETARY/TREASURER 4.00 X X 12900 0 0 RICHARD BASHAM DIRECTOR 8.80 X 15600 0 0 SUSAN BLANFORD DIRECTOR 4.50 X 15300 0 0 LARRY ELDER DIRECTOR 4.00 X 14400 0 0 RYAN HAMMACK JULY-DEC DIRECTOR 6.50 X 6000 0 0 MICHAEL HAZELWOOD JULY-DEC DIRECTOR 4.50 X 6900 0 0 EDDIE LEACH DIRECTOR 12.00 X 13200 0 0 ROBERT WHITE DIRECTOR 4.50 X 13200 0 0 BRENT WIGGINTON DIRECTOR 2.00 X 13800 0 0 CHRISTOPHER MITCHELL JAN-JUNE DIRECTOR 12.00 X 7500 0 0 WILLIAM DENTON JAN DIRECTOR 12.00 X 650 0 0 JEFF HOHN PRESIDENT & CEO 50.00 X 404637 0 239967 DEBRA HAYDEN ASSISTANT SECRETARY 40.00 X 100129 0 49145 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 45.00 X 155381 0 63781 ROB STUMPH VP - ENGINEERING & OPERATIONS 45.00 X 215565 0 173533 STEVE THOMPSON VP - REGULATORY/EXTERNAL AFFAIRS 40.00 X 194511 0 80466 KEITH ELLIS VP - ADMINISTRATIVE SERVICES 50.00 X 191141 0 100672 MICHAEL CHURCH OPERATIONS MANAGER 50.00 X 138987 0 109048 CASEY BAKER OPERATIONS MANAGER 50.00 X 136907 0 77180 DUSTIN LANHAM SERVICE TECHNICIAN 54.00 X 132290 0 47840 JACOB COURTNEY LINE TECHNICIAN 54.00 X 130381 0 42748 RANDY CRABTREE CONSTRUCTION MANAGER 50.00 X 128258 0 60880 2072587 0 1045260 48 0 1 0 HALTER TREE SERVICE INC 325 MAIN ST VINCENNES IN 47591 TREE TRIMMING 5196400 PENSKE TRUCK LEASING CO PO BOX 827380 PHILADELPHIA PA 19182 VEHICLE MAINTENANCE 1170578 WILLIAM E GROVES CONSTRUCTION INC PO BOX 1205 MADISONVILLE KY 42431 POWER LINE CONSTRUCTION/TESTING 975771 5 STAR ELECTRIC LLC 170 BEAN CEMETERY ROAD MADISONVILLE KY 42331 POWER LINE CONSTRUCTION 881534 CONEXON LLC 2001 GRAND BLVD SUITE 700 KANSAS CITY MO 64108 FIBER MANAGEMENT/DESIGN 782751 10 X SALES OF ELECTRICITY 221000 621395635 621395635 SERVICE FEES 221000 723524 723524 PATRONAGE DIVIDENDS 221000 353717 353717 622472876 284650 284650 238892 0 238892 238892 238892 300376 189684 110692 110692 110692 POLE ATTACHMENT INCOME 221000 938798 938798 TELECOM REVENUE 517000 1177 1177 MISCELLANEOUS NON-OPERATING INCOM 221000 666 666 940641 624047751 622584234 240069 1223448 X 49422 1568806 2113328 7370935 1096183 1658043 577562 3510928 14456228 PURCHASED POWER 578498247 DISTRIBUTION EXPENSE 10351305 ADMINISTRATIVE & GENERA 1284611 UNRELATED BUS. INC. TAX 40053 1444155 624019806 X 9355443 9477202 37179902 32625169 2726135 9428758 798220 684209 374205048 169414176 202322912 204790872 6102669 6160185 2166599 15826118 260651880 278992513 46705017 45860031 126521096 140754335 3173192 6622833 176399305 193237199 X 230340 231750 0 0 84022235 85523564 84252575 85755314 260651880 278992513 X 27945 1474794 X X 0 1 X 1 0 1392871 1392871 10598684 5515714 5082970 358899305 163898462 195000843 3314188 3314188 204790872 INTEREST AND DIVIDENDS RECEIVABLE 20520 ACCRUED UTILITY REVENUE 13869886 REGULATORY ASSET 1935712 15826118 CONSUMER ADVANCES FOR CONSTRUCTION 2210834 OTHER DEFERRED CREDITS 506574 OTHER LIABILTIES 109595 CONSUMER DEPOSITS 3795830 6622833 X PART X, LINE 2: KENERGY IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND, ACCORDINGLY, THE ACCOMPANYING FINANCIAL STATEMENTS INCLUDE NO PROVISION FOR SUCH TAXES. WHEN APPLYING THE 85 PERCENT TEST OF IRC 501(C)(12), KENERGY EXCLUDES THE BIG RIVERS NON-CASH ALLOCATIONS FROM GROSS INCOME. ASC 740-10, INCOME TAXES, PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES. KENERGY HAS PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021, AND DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART VII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 12 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 VII HAS BEEN LEFT BLANK. 0 OHIO COUNTY FOOD PANTRY 1220 S MAIN STREET HARTFORD KY 42347 610549873 501(C)(3) 5617 0 COMPANY MATCH WENDELL FOSTERS 815 TRIPLETT STREET OWENSBORO KY 42303 610490868 501(C)(3) 11772 0 CONTRIBUTION & COMPANY MATCH KENERGY OPERATION ROUNDUP INC PO BOX 18 HENDERSON KY 42419 475198197 501(C)(3) 6300 0 CONTRIBUTION & COMPANY MATCH 3 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 JEFF HOHN PRESIDENT & CEO 328773 0 35716 0 40148 0 215607 0 24360 0 644604 0 0 0 ROB STUMPH VP - ENGINEERING & OPERATIONS 191211 0 3690 0 20664 0 149923 0 23610 0 389098 0 0 0 KEITH ELLIS VP - ADMINISTRATIVE SERVICES 165633 0 3690 0 21818 0 68181 0 32491 0 291813 0 0 0 STEVE THOMPSON VP - REGULATORY/EXTERNAL AFFAIRS 168663 0 3690 0 22158 0 56006 0 24460 0 274977 0 0 0 MICHAEL CHURCH OPERATIONS MANAGER 128961 0 3690 0 6336 0 78136 0 30912 0 248035 0 0 0 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 142822 0 3690 0 8869 0 32817 0 30964 0 219162 0 0 0 CASEY BAKER OPERATIONS MANAGER 129435 0 3690 0 3782 0 57212 0 19968 0 214087 0 0 0 RANDY CRABTREE CONSTRUCTION MANAGER 118411 0 3690 0 6157 0 30199 0 30681 0 189138 0 0 0 DUSTIN LANHAM SERVICE TECHNICIAN 126787 0 3690 0 1813 0 17696 0 30144 0 180130 0 0 0 JACOB COURTNEY LINE TECHNICIAN 125326 0 3690 0 1365 0 13835 0 28913 0 173129 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. JEFF HOHN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 215,607 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 215,607 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (215,607) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 71,454 EXPENSE TO THE COOPERATIVE $ 71,454 ROB STUMPH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 149,923 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 149,923 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (149,923) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,266 EXPENSE TO THE COOPERATIVE $ 43,266 KEITH ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 68,181 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 68,181 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (68,181) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,460 EXPENSE TO THE COOPERATIVE $ 39,460 STEVE THOMPSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 56,006 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 56,006 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (56,006) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,104 EXPENSE TO THE COOPERATIVE $ 46,104 MICHAEL CHURCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 78,136 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 78,136 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (78,136) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,073 EXPENSE TO THE COOPERATIVE $ 36,073 TRAVIS SIEWERT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,817 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 32,817 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,817) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,436 EXPENSE TO THE COOPERATIVE $ 34,436 CASEY BAKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,212 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 57,212 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (57,212) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,426 EXPENSE TO THE COOPERATIVE $ 35,426 RANDY CRABTREE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,199 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 30,199 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,199) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,835 EXPENSE TO THE COOPERATIVE $ 21,835 DUSTIN LANHAM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,696 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 17,696 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,696) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,762 EXPENSE TO THE COOPERATIVE $ 19,762 JACOB COURTNEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,835 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 13,835 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,835) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,306 EXPENSE TO THE COOPERATIVE $ 19,306 FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN DIRECTOR BRENT WIGGINTON ADN DIRECTOR ROBERT WHITE. BOTH SERVE ON THE BOARD OF BIG RIVERS ELECTRIC COOPERATIVE AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. 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 6. REMOVAL OF A DIRECTOR FROM THE BOARD 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 ANNUALLY, THE CHAIRMAN OF THE BOARD OF DIRECTORS REQUIRES EACH BOARD MEMEBER AND THE CEO TO COMPLETE AND SIGN A FORM LISTING THE NAMES OF THEIR BUSINESS INTEREST, POSITIONS HELD, AND THE OWNERSHIP PERCENTAGE. ANNUALLY, THE CEO REQUIRES ALL VICE-PRESIDENTS AND MANAGERS TO COMPLETE A SURVEY PROVIDING THE SAME INFORMATION. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS APPROVES CEO COMPENSATION BASED ON A REVIEW OF PERFORMANCE AND OF EXTERNAL MARKET PRICING. TO ASSIST WITH EXTERNAL MARKET PRICING, AN INDEPENDENT COMPENSATION CONSULTANT IS PERIODICALLY USED. FOR ALL OTHER EMPLOYEE OFFICERS AND KEY EMPLOYEES, COMPENSATION IS DETERMINED BY EXTENAL MARKET SOURCES, INCLUDING THE PERIODIC USE OF AN INDEPENDENT COMPENSATION CONSULTANT. INTERNAL MARKET PRICING IS ESTABLISHED BY UTILIZING A POINT-FACTOR METHOD OF ASSIGNING WEIGHTED FACTORS BASED ON A VARIETY OF COMPENTENCIES. THE BOARD OF DIRECTORS APPROVES THE BUDGET, INCLUDING COMPENSATION OF EMPLOYEE OFFICERS AND KEY EMPLOYEES, BASED ON THIS PROCESS. FORM 990, PART VI, SECTION C, LINE 19 KENERGY PROVIDES EACH MEMBER, THROUGH A BILLING INSERT, A CONDENSED BALANCE SHEET AND INCOME STATEMENT COMPARING THE MOST RECENT CALENDAR YEAR TO THE PREVIOUS CALENDAR YEAR. THE COMPARATIVE STATEMENT OF OPERATIONS, AS WELL AS THE BYLAWS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE AT WWW.KENERGYCORP.COM/ABOUT. ADDITIONALLY, POLICIES ARE MADE AVAILABLE TO MEMBERS UPON A WRITTEN REQUEST. 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, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. THE COOPERATIVE DID NOT RECEIVE A QUESTIONNAIRE FROM TWO DIRECTORS - , MR. MITCHELL AND MR. DENTON. THERE WERE NO KNOWN CHANGES FOR THE TWO INDIVIDUALS FROM 2021 TO 2022. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE ACTIVELY 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. A DEFINED CONTRIBUTION PLAN IS ALSO OFFERED TO EMPLOYEES. SINCE JANUARY 1, 2019, THE DEFINED CONTRIBUTION PLAN IS FOR ELECTIVE SALARY DEFERRALS ONLY AND NOT MATCHED BY THE COOPERATIVE. 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 OFFICER AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2B: 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: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE THE RURAL UTILITIES SERVICE (RUS). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARETLY STATES 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 $ 9,484,263 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (144,400) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (707,564) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 12,321 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,334,034 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 273,611 TOTAL WAGES ACCRUED AND/OR PAID $12,252,265 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: BROADBAND EXPENSE $ 140,494 CONSUMER EXPENSE 709,448 TAXES 586,312 OTHER DEDUCTIONS 7,801 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,444,055 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 ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2022 CALENDAR YEAR. WHEN ALLOCATED, THE COOPERATIVE NOTIFIES THE PATRONS OF THE STATED DOLLAR AMOUNT OF THE PATRONAGE DIVIDEND IN WRITING. ADDITIONALLY, 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: AMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,329,620 OFFICE SUPPLIES 8,852 OUTSIDE SERVICES 163,912 REG. COMMISSION EXPENSE 773 MISCELLANEOUS GENERAL 518,744 DIRECTORS EXPENSE 219,951 MAINTENANCE OF GENERAL PLANT 960,748 ADVERTISING EXPENSE 5,395 MANAGEMENT EXPENSE 8,718 FRANCHISES EXPENSE 5,000 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,221,713 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (144,400) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,914,797) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (877,905) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,284,611 FORM 990, PART X, LINES 29 & 31: THE COOPERATIVE PREVIOUSLY INCLUDED MEMBERSHIPS AS A COMPONENT OF RETAINED EARNINGS ON LINE 31 OF PART X. HOWEVER, FOR THE 2022 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 29. TO INCREASE CONSISTENCY, MEMBERSHIPS IN THE AMOUNT OF $230,340 FOR THE 2021 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 31 TO LINE 29. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED 1,568,806. PATRONAGE CAPITAL RETIRED - TOTAL -238,119. PATRONAGE CAPITAL RETIRED - DISCOUNT 142,697. NET CHANGE IN MEMBERSHIPS 1,410. 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. KENERGY OPERATION ROUND-UP INC PO BOX 18 HENDERSON KY 42419 475198197 UTILITY BILL ASSISTANCE KY 501(C)(3) LINE 7 KENERGY CORP 1 KENECT INC PO BOX 18 HENDERSON KY 42419 851820461 FIBER AND BROADBAND ACCESS SUBLEASE KY KENERGY CORP C 32734 57 1.00000 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 KENECT INC A 32676 CASH RECEIVED KENECT INC N 0 N/A - LESS THAN $50,000 KENECT INC O 0 N/A - LESS THAN $50,000 KENERGY OPERATION ROUND-UP INC B 0 N/A - LESS THAN $50,000