2023-11-15T16:36:05-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 860059728 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC SULP 5203842221 350 N HASKELL WILLCOX AZ 85643 RON LEE CFO 5203842221 2023-11-15 1 RON LEE 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-15 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z JASON BOWLING 350 N HASKELL WILLCOX AZ 85643 139126767 0 X WWW.SSVEC.ORG X 1938 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 192 0 273961 120587 0 0 123858931 137761938 109142 294791 1026973 1066892 124995046 139123621 196713 277828 12095183 3990960 16309116 17073548 0 0 0 94732794 117326071 123333806 138668407 1661240 455214 321892538 332643442 157774854 169176919 164117684 163466523 SSVEC IS A COOPERATIVE DELIVERING SAFE AND RELIABLE ELECTRIC SERVICE, THROUGH PEOPLE WHO PROVIDE EXCEPTIONAL SUPPORT TO OUR MEMBER-OWNERS AND THE COMMUNITIES WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 53,283 ACTIVE SERVICES AT YEAR END. ELECTRIC DISTRIBUTION SERVICES (THE DELIVERY, BUT NOT THE SALE OF ELECTRICITY, TO A CUSTOMER OVER LINES OWNED, OPERATED AND MAINTAINED BY THE COOPERATIVE) WERE PROVIDED TO THE CLASS B MEMBERSHIP ON A COOPERATIVE BASIS. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 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 1 186 0 192 1 1 1 0 0 0 0 137321854 2834414 0 0 0 X 10 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 AZ X X RON LEE CFO 5203842221 350 N HASKELL AVE WILLCOX AZ 85643 X KATHRYN THATCHER DIRECTOR 2.60 1.00 X 29112 0 0 CURTIS NOLAN PRESIDENT 2.80 1.00 X X 40603 0 0 PAT ENGLISH DIRECTOR 1.00 1.00 X 18425 0 0 THOMAS GOODMAN DIRECTOR 1.40 1.00 X 28750 0 0 DAN BARRERA SECRETARY 3.30 1.00 X X 31875 0 0 RANDY REDMOND VICE PRESIDENT 3.10 1.00 X X 30578 0 0 JOSEPH BEAM TREASURER 2.60 1.00 X X 33112 0 0 DAVID KELSO DIRECTOR 2.10 1.00 X 36287 0 0 CLIFFORD LEX HERRON DIRECTOR 2.10 1.00 X 32238 0 0 RUSSELL MCNEIL DIRECTOR (APR-DEC) 1.10 1.00 X 22875 0 0 CREDEN HUBER CHIEF EXECUTIVE OFFICER (JAN-MAY) 40.00 X 484420 0 207865 JASON BOWLING CHIEF EXECUTIVE OFFICER (MAY-DEC) 51.00 X 302449 0 130003 JACK BLAIR VICE PRESIDENT MEMBER SERVICES 48.00 X 251686 0 99607 REBECCA BUKSH VICE PRESIDENT HUMAN RESOURCES 49.00 X 101416 0 60691 ORSON GARNSEY VICE PRESIDENT INFORMATION TECHNOLOGY 42.00 X 196209 0 86981 RON LEE VICE PRESIDENT FINANCE 47.00 X 185342 0 94671 ANDREA TYNDALL VICE PRESIDENT STRATEGY & COMPLIANCE 41.00 X 131861 0 70590 DANIEL WILSON SENIOR VICE PRESIDENT OPERATIONS 47.00 X 226773 0 86630 NATHAN HODGES VICE PRESIDENT OPERATIONS 45.00 X 202794 0 117779 JESUS MORENO VICE PRESIDENT ENGINEERING 47.00 X 159499 0 63311 JAMES FREEMAN CONTROLLER (JAN-NOV) 50.00 X 162794 0 78021 MANUEL GONZALES VICE PRESIDENT TECH SERVICES 47.00 X 157763 0 63008 RICHARD ELLIS JOURNEYMAN LINEMAN 60.00 X 168162 0 89620 LUIS MONTANO FOREMAN II 45.00 X 155981 0 50145 JORGE GARCIA FOREMAN II 45.00 X 155276 0 71289 OWEN MORTENSON JOURNEYMAN LINEMAN 60.00 X 143163 0 47553 JESUS HERNANDEZ FOREMAN II 45.00 X 142071 0 65238 3631514 0 1483002 68 0 1 0 HMW CONSTRUCTION LLC PO BOX 3544 OMAHA NE 68103 CONSTRUCTION CONTRACTOR 665292 ASPLUNDUH TREE EXPERT LLC PO BOX 31001 PASADENA CA 91110 ROW TREE TRIMMING 390488 DESERT SPRINGS CONSTRUCTION & REMODELING 9828 E CANA STREET HEREFORD AZ 85615 CONSTRUCTION CONTRACTOR 170464 THE FISHEL COMPANY 1819 S 27TH AVE PHOENIX AZ 85009 UTILITY ENGINEERING & CONSTRUCTION 167057 COPELAND LAW OFFICES PLLC 9017 N 57TH DRIVE GLENDALE AZ 85302 LEGAL SERVICES 166357 9 X SALES OF ELECTRICITY 221000 131980215 131980215 PATRONAGE DIVIDENDS 221000 2595767 2595767 DISTRIBUTION SERVICES 221000 2413862 2413862 SERVICE FEES 221000 772094 772094 137761938 294791 294791 7152 0 7152 7152 7152 6467 3146 3321 3321 POLE ATTACHMENT INCOME 221000 785779 785779 INTERNET COMMISSIONS 517000 263306 263306 OUTSIDE SERVICES 811000 7334 7334 1056419 139123621 137761938 273961 1087722 X 277828 3990960 4026018 9002657 2104869 1106200 833804 4564808 12014926 PURCHASED POWER 87076056 DISTRIBUTION EXPENSE 7142309 ADMIN & GENERAL EXPENSE 3120358 UNRELATED BUS. INC. TAX 46039 3361575 138668407 3116650 5782233 14644420 10000000 4162929 5633361 57784 41493 3036082 4263423 1467218 1417116 407435850 177007539 225820804 230428311 65563505 67788535 4023146 7288970 321892538 332643442 11212618 14495542 125679890 129096740 20882346 25584637 157774854 169176919 X 205970 207630 0 0 163911714 163258893 164117684 163466523 321892538 332643442 X 455214 -1106375 X X 0 0 0 2413207 2413207 14417617 4611769 9805848 369308654 172395770 196912884 21296372 21296372 230428311 PATRONAGE CAPITAL - AEPCO 57089077 C PATRONAGE CAPITAL - CFC 2879992 C PATRONAGE CAPITAL - NISC 134549 C PATRONAGE CAPITAL - NRTC 20538 C PATRONAGE CAPITAL - FEDERATED 806060 C PATRONAGE CAPITAL - CRC 27904 C COBANK EQUITY INVESTMENT 2894065 C ASSOCIATED ORGANIZATIONS - GENERAL FUNDS 1010 C CAPITAL TERM CERTIFICATES-CFC 2285918 C DEFERRED COMPENSATION FUNDS 1649422 F 67788535 CONSUMER DEPOSITS 2505093 ACCUMULATED PROVISION - PENSIONS & BENEFITS 2680047 ACCRUED OPERATING TAXES 2393174 DEFERRED CREDITS - ENERGY CONSERVATION & OTHER 8432371 DEFERRED CREDITS - FT. HUACHUCA REIMBURSEMENTS 6890430 DEFERRED CREDITS - OTHER 2683522 25584637 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. 0 COCHISE EDUCATION FOUNDATION PO BOX DRAWER 493 BISBEE AZ 85603 263735497 501(C)(3) 5600 0 TEACHER OF THE YEAR DONATION BOYS AND GIRLS CLUB OF SIERRA VISTA INC 1746 PASEO SAN LUIS SIERRA VISTA AZ 85636 860801728 501(C)(3) 10000 0 ANNUAL DONATION SIERRA VISTA AREA CHAMBER OF COMMERCE 21 E WILCOX DR SIERRA VISTA AZ 85635 742586694 501(C)(6) 13250 0 ANNUAL DONATION WHERE THEY BUCK 3500 N MALLARD CIRCLE SIERRA VISTA AZ 85635 823574433 10851 0 RODEO SPONSOR CIVIL VISION INTERNATIONAL INC 1838 PASEO SAN LUIS SIERRA VISTA AZ 85635 461453081 501(C)(3) 10000 0 ANNUAL DONATION MESCAL J6 FIRE DISTRICT 448 N WARREN RD BENSON AZ 85602 264265019 15000 0 HELIPAD RUFURBISHMENT PROJECT TUCSON CONQUISTADORES INC 6450 E BROADWAY BLVD TUCSON AZ 85710 202132844 501(C)(6) 25250 0 PRO-AM GOLF TOURNAMENT WILLCOX THEATER AND ARTS INC PO BOX 217 WILLCOX AZ 85644 455329399 501(C)(3) 7160 0 ART & HERITAGE PROJECT/COWBOY HALL OF FAME POSITIVE IMAGE SPORTS MARKETING & PROMOTIONS 6828 WEST CARTER ROAD LAVEEN AZ 85339 514860307 11308 0 SPORTS CAMPS DONATIONS 4 5 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 1 1 X X 0 0 0 CREDEN HUBER CHIEF EXECUTIVE OFFICER (JAN-MAY) 206521 0 0 0 277899 0 187106 0 20759 0 692285 0 0 0 JASON BOWLING CHIEF EXECUTIVE OFFICER (MAY-DEC) 264070 0 150 0 38229 0 105344 0 24659 0 432452 0 0 0 JACK BLAIR VICE PRESIDENT MEMBER SERVICES 211777 0 600 0 39309 0 85231 0 14376 0 351293 0 0 0 NATHAN HODGES VICE PRESIDENT OPERATIONS 185159 0 450 0 17185 0 104171 0 13608 0 320573 0 0 0 DANIEL WILSON SENIOR VICE PRESIDENT OPERATIONS 208446 0 400 0 17927 0 61993 0 24637 0 313403 0 0 0 ORSON GARNSEY VICE PRESIDENT INFORMATION TECHNOLOG 194493 0 350 0 1366 0 79660 0 7321 0 283190 0 0 0 RON LEE VICE PRESIDENT FINANCE 183035 0 450 0 1857 0 83916 0 10755 0 280013 0 0 0 RICHARD ELLIS JOURNEYMAN LINEMAN 158528 0 2200 0 7434 0 69612 0 20008 0 257782 0 0 0 JAMES FREEMAN CONTROLLER (JAN-NOV) 127669 0 160 0 34965 0 58958 0 19063 0 240815 0 0 0 JORGE GARCIA FOREMAN II 152664 0 2200 0 412 0 56300 0 14989 0 226565 0 0 0 JESUS MORENO VICE PRESIDENT ENGINEERING 142602 0 625 0 16272 0 41352 0 21959 0 222810 0 0 0 MANUEL GONZALES VICE PRESIDENT TECH SERVICES 139018 0 2200 0 16545 0 56663 0 6345 0 220771 0 0 0 JESUS HERNANDEZ FOREMAN II 139575 0 2200 0 296 0 43166 0 22072 0 207309 0 0 0 LUIS MONTANO FOREMAN II 154524 0 1200 0 257 0 29193 0 20952 0 206126 0 0 0 ANDREA TYNDALL VICE PRESIDENT STRATEGY & COMPLIANCE 126811 0 250 0 4800 0 52719 0 17871 0 202451 0 0 0 OWEN MORTENSON JOURNEYMAN LINEMAN 141726 0 1200 0 237 0 23074 0 24479 0 190716 0 0 0 REBECCA BUKSH VICE PRESIDENT HUMAN RESOURCES 100685 0 450 0 281 0 36230 0 24461 0 162107 0 0 0 PART I, LINE 1A PURSUANT TO THE COOPERATIVE'S WELLNESS PROGRAM, EMPLOYEES ARE REIMBURSED FOR 50% OF THEIR OUT OF POCKET COSTS FOR PARTICIPATION IN QUALIFIED WELLNESS ACTIVITIES. THE TOTAL ANNUAL REIMBURSEMENT IS LIMITED TO $360 PER EMPLOYEE AND $360 FOR AN EMPLOYEE'S SPOUSE, PROVIDED THE SPOUSE IS COVERED UNDER THE COOPERATIVE'S HEALTH INSURANCE PROGRAM. EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN THE WELLNESS PROGRAM AFTER 60 DAYS OF EMPLOYEMENT. 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. CREDEN HUBER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 180,558 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,548 TOTAL REPORTED IN COLUMN C $ 187,106 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT & NQDC PLANS (180,558) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT & NQDC PLANS 73,781 EXPENSE TO THE COOPERATIVE $ 80,329 JASON BOWLING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 97,194 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,150 TOTAL REPORTED IN COLUMN C $ 105,344 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (97,194) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 68,014 EXPENSE TO THE COOPERATIVE $ 76,164 JACK BLAIR: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 79,049 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,182 TOTAL REPORTED IN COLUMN C $ 85,231 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (79,049) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 77,933 EXPENSE TO THE COOPERATIVE $ 84,115 NATHAN HODGES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 98,556 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,615 TOTAL REPORTED IN COLUMN C $ 104,171 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (98,556) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 68,014 EXPENSE TO THE COOPERATIVE $ 73,629 DANIEL WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 55,780 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,213 TOTAL REPORTED IN COLUMN C $ 61,993 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (55,780) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 70,848 EXPENSE TO THE COOPERATIVE $ 77,061 ORSON GARNSEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 73,811 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,849 TOTAL REPORTED IN COLUMN C $ 79,660 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (73,811) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 70,848 EXPENSE TO THE COOPERATIVE $ 76,697 RON LEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 78,312 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,604 TOTAL REPORTED IN COLUMN C $ 83,916 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (78,312) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 68,014 EXPENSE TO THE COOPERATIVE $ 73,618 RICHARD ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 66,539 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,073 TOTAL REPORTED IN COLUMN C $ 69,612 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (66,539) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,401 EXPENSE TO THE COOPERATIVE $ 40,474 JAMES FREEMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,763 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,195 TOTAL REPORTED IN COLUMN C $ 58,958 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,763) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,972 EXPENSE TO THE COOPERATIVE $ 61,167 JORGE GARCIA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,909 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,391 TOTAL REPORTED IN COLUMN C $ 56,300 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,909) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,773 EXPENSE TO THE COOPERATIVE $ 44,164 JESUS MORENO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,927 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,425 TOTAL REPORTED IN COLUMN C $ 41,352 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,927) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 49,059 EXPENSE TO THE COOPERATIVE $ 53,484 MANUEL GONZALES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,493 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,170 TOTAL REPORTED IN COLUMN C $ 56,663 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,493) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,425 EXPENSE TO THE COOPERATIVE $ 49,595 JESUS HERNANDEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,956 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,210 TOTAL REPORTED IN COLUMN C $ 43,166 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,956) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,123 EXPENSE TO THE COOPERATIVE $ 38,333 LUIS MONTANO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,959 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,234 TOTAL REPORTED IN COLUMN C $ 29,193 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,959) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,950 EXPENSE TO THE COOPERATIVE $ 42,184 ANDREA TYNDALL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,381 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,338 TOTAL REPORTED IN COLUMN C $ 52,719 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,381) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,242 EXPENSE TO THE COOPERATIVE $ 48,580 OWEN MORTENSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,176 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,898 TOTAL REPORTED IN COLUMN C $ 23,074 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,176) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,950 EXPENSE TO THE COOPERATIVE $ 41,848 REBECCA BUKSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,963 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,267 TOTAL REPORTED IN COLUMN C $ 36,230 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,963) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,965 EXPENSE TO THE COOPERATIVE $ 33,232 FORM 990, 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 $456,140, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE PLUS THE RETENTION OF NON-OPERATING MARGINS. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN ACCRUED. THIS TIMING DIFFERENCE IS FAIR AND EQUITABLE BECAUSE IT MATCHES THE PATRONAGE DIVIDEND ALLOCATED WITH THE BILLING RECORDS USED TO ALLOCATE THE MARGINS. DUE TO THE TIMING OF WHEN THE COOPERATIVE ALLOCATES ACCRUED UNBILLED REVENUE, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME/(LOSS) AS FOLLOWS: 1) NET INCREASE/(DECREASE) IN ACCRUED UNBILLED REVENUE PLUS 2) NON-OPERATING MARGINS. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/22 $ 2,455,398 LESS: UNBILLED REVENUE 12/31/21 (2,384,333) NET INCREASE IN UNBILLED REVENUE $ 71,065 ADD: NON-OPERATING MARGINS RETAINED 385,075 (A) - NET INCOME ON PAGE 1, PART I, LINE 1 $ 456,140 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 3,990,060 TOTAL 2022 NET MARGIN (A + B) $ 4,446,174 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 AND THE PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. THE BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY ANNUALLY, AND IMMEDIATELY ADDRESS ANY QUESTIONS OR CONCERNS IF THEY ARISE. THE BOARD OF DIRECTORS AND OFFICERS ARE ALSO REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEE OFFICERS. FORM 990, PART VI, SECTION C, LINE 19 ANNUALY, THE COOPERATIVE MAILS ITS ANNUAL REPORT TO MEMBERS OF THE COOPERATIVE WHICH CONTAINS A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS. THE COOPERATIVE ALSO PROVIDES COPIES OF THEIR CURRENT AND PAST ANNUAL REPORTS AND GOVERNING DOCUMENTS ON THEIR WEBSITE. 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. 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, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION 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: 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. 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, 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 CALENDAR TAX 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, 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 $13,028,675 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (303,855) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (1,159,157) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 4,719 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,660,766 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,268,383 TOTAL WAGES ACCRUED AND/OR PAID $16,499,531 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 6,076,452 OFFICE SUPPLIES 380,004 OUTSIDE SERVICES 666,270 DIRECTORS 440,546 DUES TO ASSOCIATED ORGANIZATIONS 263,305 FORT HUACHUCA ADMINISTRATIVE & GENERAL 36,034 MISCELLANEOUS GENERAL 439,199 CAPITAL CREDITS 38,820 MAINTENANCE OF GENERAL PLANT 16,530 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 8,357,160 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (303,855) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,402,158) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,530,789) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,120,358 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS AND SERVICE $ 2,102,715 INTERNET 134,420 SALES 382,622 TRANSMISSION 390,093 OTHER DEDUCTIONS 351,725 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 3,361,575 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,990,960. PATRONAGE CAPITAL RETIRED - TOTAL -5,595,073. PATRONAGE CAPITAL RETIRED - DISCOUNT 372,662. NET CHANGE IN MEMBERSHIPS 1,660. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 123,416. FORM 990, PART XII, LINE 2: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JUNE 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION 350 N HASKELL WILLCOX AZ 85643 860488826 FUND EDUCATIONAL YOUTH ACTIVIES AND QUALIFIED PROGRAMS AZ 501(C)(3) PF SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE CHARITABLE TRUST 350 N HASKELL WILLCOX AZ 85643 860993649 ASSISTANCE TO NATURAL DISASTER VICTIMS AND FAMILIES AZ 501(C)(3) LINE 7 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION O N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION Q N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION R MEMBER UNCLAIMED/DONATED PROPERTY SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST N N/A - LESS THAN $50,000 SULPHUR SPRINGS VALLEY ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000