2025-11-13T10:03:29-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 740501156 BARTLETT ELECTRIC COOPERATIVE INC BART 2545273551 27492 HWY 95 BARTLETT TX 76511 BRYAN LIGHTFOOT CEO 2545273551 2025-11-07 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-07 X 2024 2025-03-06 01:10:19Z BRYAN LIGHTFOOT 27492 HWY 95 BARTLETT TX 76511 47051484 0 X WWW.BARTLETTEC.COOP X 1935 TX TO PROVIDE QUALITY AND RELIABLE SERVICES TO MEMBERS OF THE COOPERATIVE AT REASONABLE RATES. 9 9 73 0 2250754 0 0 0 44229961 44380278 1275788 -4136 2072444 2641699 47578193 47017841 3525 3450 2639142 1679047 4866629 5438953 0 0 0 40219820 40660607 47729116 47782057 -150923 -764216 137805801 145371091 108335862 115451014 29469939 29920077 PROVIDE OUR MEMBERS WITH SAFE AND DEPENDABLE SERVICES AT REASONABLE RATES, WITH A COMMITMENT TO ENHANCING OUR MEMBERS' QUALITY OF LIFE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 15,680 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 110 0 73 1 1 1 0 0 0 0 44776802 4411810 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X GLENDA HILL CFO 2545273551 27492 HWY 95 BARTLETT TX 76511 X EUGENE URBANOVSKY PRESIDENT 3.50 X X 17944 0 0 SAMUEL J JACKSON VICE PRESIDENT 5.30 X X 22681 0 0 KLAASJE MOFFATT SECRETARY/TREASURER (JAN-MAR) 0.50 X X 3630 0 0 JAMIESUE FERGUSON SECRETARY/TREASURER 1.60 X X 9006 0 0 MIKE ADAMSON DIRECTOR 2.10 X 11796 0 0 JEFF ATCHISON DIRECTOR (JUL-DEC) 2.00 X 9798 0 0 HENRY BRADFORD DIRECTOR 2.80 X 14501 0 0 ELDON LANGE DIRECTOR (JAN-FEB) 0.00 X 420 0 0 EDD MELTON III DIRECTOR 2.90 X 21186 0 0 PETER YONG DIRECTOR 1.80 X 11006 0 0 BRYAN LIGHTFOOT GM/CHIEF EXECUTIVE OFFICER 41.60 X 268830 0 185006 AARON ADKINS CHIEF BROADBAND OFFICER 42.80 X 150226 0 18671 GLENDA HILL CHIEF FINANCIAL OFFICER 42.30 X 146799 0 64019 RANDALL LEWIS CHIEF ENGINEERING OFFICER 40.40 X 172427 0 47250 DANIEL SANDERS CHIEF OPERATIONS OFFICER 41.30 X 149236 0 43631 CARRIE WENZEL CHIEF HUMAN RESOURCES OFFICER 41.80 X 153549 0 57711 KIRBY DAWSON OPERATIONS SUPERVISOR 41.00 X 131482 0 70034 RODOLFO GONZALEZ OPERATIONS FOREMAN 43.70 X 121335 0 98338 KOBY ADCOCK BROADBAND SUPERVISOR 41.80 X 124933 0 37173 PATRICK KLEPAC OPERATIONS SUPERVISOR 42.40 X 122173 0 54030 CHARLES MCNEA BROADBAND PLANT FOREMAN 46.00 X 127318 0 34196 1790276 0 710059 17 0 1 0 S&H POWERLINE CONSTRUCTION INC 725 BELLVIEW ROAD CRAWFORD TX 76638 OVERHEAD ELECTRIC CONSTRUCTION 1341616 PEDRO SS SERVICES INC PO BOX 5219 AUSTIN TX 78763 UNDERGROUND ELECTRIC CONSTRUCTION 1138259 ELECTRICOM LLC 1660 WEST HOSPITAL ROAD PAOLI IN 47454 FIBER PLANT CONSTRUCTION 1093465 PANNELL CONTRACTING LLC PO BOX 2107 LEAKEY TX 78873 RIGHT OF WAY & TREE TRIMMING 924415 EMPACT ENGINEERING LLC PO BOX 723 MILLICAN TX 77866 ENGINEERING SERVICES 695383 10 X SALES OF ELECTRICITY 221000 40406458 40406458 OTHER PROGRAM REVENUE 221000 2858259 2858259 PATRONAGE DIVIDENDS 221000 960936 960936 SERVICE FEES 221000 154625 154625 44380278 14607 14607 14900 33643 -18743 -18743 -18743 10350 0 10350 10350 BEC COMMUNICATIONS INTERNET SALES 517000 2240404 2240404 BOND SECURITIZATION P'SHIP INCOME 221000 287085 287085 POLE ATTACHMENT INCOME 221000 103860 103860 2631349 47017841 44648620 2250754 118467 X 3450 1679047 1579323 2707983 327630 549841 274176 5362449 4314129 PURCHASED POWER 25944553 DISTRIBUTION EXPENSE 3098632 ADMIN & GENERAL EXPENSE 1319779 CUSTOMER ACCOUNTS 599896 21169 47782057 589238 1263274 3355428 3855248 339653 377674 673085 856130 141726824 18116937 114266594 123609887 14559208 15213963 4022595 194915 137805801 145371091 6007585 5339877 193123 240378 98430951 106300642 3704203 3570117 108335862 115451014 X 283366 306176 0 0 29186573 29613901 29469939 29920077 137805801 145371091 X -764216 1214354 X X 0 1 X 0 0 0 1 X 296182 296182 16691458 2348255 14343203 115935831 15768682 100167149 8803353 8803353 123609887 CAPITAL TERM CERTIFICATES - CFC 278890 C PATRONAGE CAPITAL - CFC 604063 C MEMBER CAPITAL SECURITIES - CFC 150000 C PATRONAGE CAPITAL - TEC 1783207 C PATRONAGE CAPITAL & MEMBERSHIPS - BEC 11618523 C PATRONAGE CAPITAL - NISC 91656 C PATRONAGE CAPITAL - CRC 6615 C PATRONAGE CAPITAL - NRTC 145015 C MEMBERSHIPS 3105 C PATRONAGE CAPITAL - COBANK 702 C OTHER INVESTMENTS 1065 C INVESTMENT IN BOND SECURITIZATION PARTNERSHIP 531122 C 15213963 CONSUMER DEPOSITS 1298668 ACCRUED OPERATING TAXES 241437 DEFERRED CREDITS - RETURNED CHECKS ESCHEATABLE 118048 DEFERRED CREDITS - CONSUMER ADVANCES FOR CONSTRUCTION 1877155 OTHER LIABILITIES 1563 DEFERRED CREDITS - OTHER 33246 3570117 X 47012550 0 47012550 5291 5291 47017841 46103010 0 46103010 1679047 1679047 47782057 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. PART X, LINE 2: THE COOPERATIVE APPLIES 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: BEC COMM. - BOOK TO TAX ADJUSTMENTS 5,291. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,679,047. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". X 0 0 X X X X 0 0 0 BRYAN LIGHTFOOT GM/CHIEF EXECUTIVE OFFICER 265374 0 563 0 2893 0 156751 0 28255 0 453836 0 0 0 RANDALL LEWIS CHIEF ENGINEERING OFFICER 169409 0 1750 0 1268 0 22864 0 24386 0 219677 0 0 0 RODOLFO GONZALEZ OPERATIONS FOREMAN 113588 0 5068 0 2679 0 72689 0 25649 0 219673 0 0 0 CARRIE WENZEL CHIEF HUMAN RESOURCES OFFICER 147427 0 4998 0 1124 0 32014 0 25697 0 211260 0 0 0 GLENDA HILL CHIEF FINANCIAL OFFICER 138378 0 4618 0 3803 0 38400 0 25619 0 210818 0 0 0 KIRBY DAWSON OPERATIONS SUPERVISOR 124990 0 4250 0 2242 0 44415 0 25619 0 201516 0 0 0 DANIEL SANDERS CHIEF OPERATIONS OFFICER 143458 0 4615 0 1163 0 18413 0 25218 0 192867 0 0 0 PATRICK KLEPAC OPERATIONS SUPERVISOR 118462 0 3364 0 347 0 28411 0 25619 0 176203 0 0 0 AARON ADKINS CHIEF BROADBAND OFFICER 145162 0 4609 0 455 0 18611 0 60 0 168897 0 0 0 KOBY ADCOCK BROADBAND SUPERVISOR 120646 0 3954 0 333 0 35297 0 1876 0 162106 0 0 0 CHARLES MCNEA BROADBAND PLANT FOREMAN 124083 0 2996 0 239 0 10819 0 23377 0 161514 0 0 0 PART I, LINE 1A PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE DIRECTORS FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. FOUR INDIVIDUALS REPORTED ON FORM 990 PART VII, ADAMSON, BRADFORD, JACKSON, AND URBANOVSKY, RECEIVED THIS BENEFIT DURING THE YEAR. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. BRYAN LIGHTFOOT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $148,484 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,267 TOTAL REPORTED IN COLUMN C $156,751 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (148,484) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 65,921 EXPENSE TO THE COOPERATIVE $ 74,188 RANDALL LEWIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 22,864 TOTAL REPORTED IN COLUMN C $ 22,864 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN (0) EXPENSE TO THE COOPERATIVE $ 22,864 RODOLFO GONZALEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 69,728 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,921 TOTAL REPORTED IN COLUMN C $ 72,689 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (69,728) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,621 EXPENSE TO THE COOPERATIVE $ 26,582 CARRIE WENZEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 27,434 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,580 TOTAL REPORTED IN COLUMN C $ 32,014 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (27,434) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,508 EXPENSE TO THE COOPERATIVE $ 41,088 GLENDA HILL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,092 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,308 TOTAL REPORTED IN COLUMN C $ 38,400 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,092) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,357 EXPENSE TO THE COOPERATIVE $ 37,665 KIRBY DAWSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 40,509 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,906 TOTAL REPORTED IN COLUMN C $ 44,415 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (40,509) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,303 EXPENSE TO THE COOPERATIVE $ 34,209 DANIEL SANDERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,413 TOTAL REPORTED IN COLUMN C $ 18,413 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN (0) EXPENSE TO THE COOPERATIVE $ 18,413 PATRICK KLEPAC: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,049 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,362 TOTAL REPORTED IN COLUMN C $ 28,411 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,049) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,961 EXPENSE TO THE COOPERATIVE $ 26,323 AARON ADKINS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,611 TOTAL REPORTED IN COLUMN C $ 18,611 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN (0) EXPENSE TO THE COOPERATIVE $ 18,611 KOBY ADCOCK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,705 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,592 TOTAL REPORTED IN COLUMN C $ 35,297 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,705) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,850 EXPENSE TO THE COOPERATIVE $ 31,442 CHARLES MCNEA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,819 TOTAL REPORTED IN COLUMN C $ 10,819 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN (0) EXPENSE TO THE COOPERATIVE $ 10,819 FORM 990, PART I: THE NET LOSS REPORTED ON PART I, LINE 19 INCLUDES AN EXPENSE FOR PATRONAGE DIVIDENDS ALLOCATED TO THE PATRONS BASED ON NET OPERATING INCOME(LOSS). IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET OPERATING INCOME(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL REFLECT THE AMOUNT OF NON-OPERATING INCOME(LOSS) NOT ALLOCATED. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19, HOWEVER, REPORTS NET LOSS OF $765,536, WHICH INCLUDES THE INCOME STATEMENT EFFECT OF RETAINED NON-OPERATING MARGINS AND ADJUSTMENTS REQUIRED FOR CALCULATING UNRELATED BUSINESS INCOME. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: LESS: NON-OPERATING MARGINS (769,507) ADD: BEC COMMUNICATIONS UBI AID TO CONSTRUCTION 4,971 (A) - NET LOSS ON PAGE 1, PART I, LINE 19 $ (764,536) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $1,679,047 (C) - BEC COMMUNICATIONS UBI ADJUSTMENTS (4,971) TOTAL 2024 NET MARGIN PER FINANCIAL STATEMENTS (A + B + C) $ 909,540 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENTS TO THE ARTICLES OF INCORPORATION 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 COOPERATIVE'S CONFLICT OF INTEREST POLICY IS MONITORED AND ENFORCED THROUGH ANNUAL REVIEWS OF THE POLICY BY LEGAL COUNSEL WITH THE BOARD OF DIRECTORS AND MANAGEMENT, THE RECORDINGS IN THE MINUTES OF ALL DISCLOSURES, VOTES, AUTHORIZATIONS, AND OTHER ACTIONS TAKEN UNDER THE POLICY, AND THROUGH EACH OFFICER'S ANNUAL COMPLETION OF THE CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. IF IT IS RECEIVED OR DISCOVERED THAT A DIRECTOR IS NOT IN COMPLIANCE WITH THE POLICY, THE BOARD MUST GIVE THE DIRECTOR AN OPPORTUNITY TO COMMENT ON THE INFORMATION. IF IT IS DETERMINED THAT THE DIRECTOR IS STILL NOT IN COMPLIANCE, THE BOARD MUST GIVE THE DIRECTOR 30 DAYS TO COMPLY BEFORE SANCTIONS, DISQUALIFICATIONS, AND/OR REMOVAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD OF DIRECTORS AND THE CEO USE A COMPENSATION SURVEY AND INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 PURSUANT TO THE BYLAWS, A FULL AND ACCURATE SUMMARY OF THE INDEPENDENT AUDITOR'S REPORT SHALL BE SUBMITTED TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING, AND IS ALSO AVAILABLE IN THE OFFICE LOBBY UPON REQUEST. WHEN NEW MEMBERS JOIN THE COOPERATIVE THEY ARE PROVIDED A MEMBERSHIP PACKET THAT INCLUDES A COPY OF THE COOPERATIVE'S BYLAWS. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ADDITIONALLY, THE COOPERATIVE'S BYLAWS ARE POSTED ON ITS 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 TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID ON BEHALF OF AND FOR THEIR BENEFIT. 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 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 WILL BE 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 $ 4,286,886 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (121,548) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (416,288) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASED POWER 14,852 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,465,315 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY 336,152 TOTAL WAGES ACCRUED AND/OR PAID $ 5,565,369 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,751,360 OFFICE SUPPLIES 407,160 OUTSIDE SERVICES 115,689 REGULATORY COMMISSION 67,615 INJURIES AND DAMAGES 15,543 DUES TO ASSOCIATED ORGANIZATIONS 2,000 MISCELLANEOUS GENERAL 404,872 MAINTENANCE OF GENERAL PLANT 304,452 GENERAL ADVERTISING 87,979 COMMUNICATIONS ADMINISTRATIVE EXPENSES 596,947 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,753,617 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (121,968) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,630,117) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (681,753) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,319,779 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 2024 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 1: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 17,710 PURCHASED INTERNET SERVICES 167,808 PROVISION FOR DEFERRED INCOME TAXES (164,349) TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 21,169 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,679,047. PATRONAGE CAPITAL RETIRED - TOTAL -1,116,141. NET CHANGE IN MEMBERSHIPS 22,810. PATRONAGE CAPITAL RETIRED - DISCOUNT 633,929. BEC COMM. - BOOK TO TAX ADJUSTMENTS -5,291. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE ASSUMES RESPONSIBILITY FOR THE SELECTION OF AN INDEPENDENT AUDITOR AND OVERSEES AND APPROVES THE ANNUAL AUDIT AS PROVIDED FOR IN THE "DIRECTOR" ARTICLE OF THE COOPERATIVE'S BYLAWS. BEC COMMUNICATIONS LLC 27492 HWY 95 BARTLETT TX 76511 364968497 BROADBAND INTERNET SERVICE TX 2250753 3592094 BARTLETT ELECTRIC COOPERATIVE INC