2025-11-17T15:56:33-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 880086059 WELLS RURAL ELECTRIC COMPANY WELL 7757523328 PO BOX 365 WELLS NV 89835 THAD BALLARD CEO 7757523328 2025-11-16 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-14 X 2024 2025-03-06 01:10:19Z THAD BALLARD PO BOX 365 WELLS NV 89835 44088529 0 X WWW.WREC.COOP X 1958 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 10 61 0 432 0 0 0 43524711 40833653 382103 635842 6314088 2619034 50220902 44088529 43847 42681 2528363 1194001 5784355 6346431 0 0 0 35282209 33275307 43638774 40858420 6582128 3230109 74702858 74823928 37585969 34077227 37116889 40746701 WELLS RURAL ELECTRIC COMPANY IMPROVES THE QUALITY OF LIFE OF THE COMMUNITIES WE SERVE BY MEETING THE CHANGING NEEDS OF OUR MEMBERS THROUGH THE GUIDING PRINCIPLES OF OUR LOCALLY CONTROLLED COOPERATIVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 6,335 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 55 0 61 1 1 1 0 0 0 0 41081998 4193251 0 0 0 X 11 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X CYNTHIA GOOD DIRECTOR OF ACCTNGFINHR 7757523328 1451 HUMBOLDT AVENUE WELLS NV 89835 X GERALD ANDERSON DIRECTOR 7.70 X 44012 0 0 M JONATHAN DAHL VICE PRESIDENT 7.70 X X 24625 0 0 KIRK DAHL DIRECTOR 3.00 X 16800 0 0 SCOTT EGBERT PRESIDENT 4.90 X X 46192 0 0 CAMERON HUFF DIRECTOR 10.00 X 21925 0 0 TONY MACIAS DIRECTOR 7.40 X 18850 0 0 OUIDA MADISON DIRECTOR 3.40 X 22350 0 0 ALFRED MONTES DE OCA DIRECTOR 2.60 X 16800 0 0 JIM WHITED SECRETARY/TREASURER 5.50 X X 16800 0 0 ROBERT WILCOX DIRECTOR 8.60 X 25908 0 0 BRUCE WIDMER DIRECTOR 4.50 X 17250 0 0 CLAY R FITCH EMERITUS CEO 40.00 X 257318 0 111189 THAD BALLARD CEO 40.00 X 212214 0 140799 JEFFERY CROMIE DIRECTOR OF STRATEGY/BUS. DEV 40.00 X 168986 0 77688 CYNTHIA GOOD DIRECTOR OF ACCT, FINANCE,HR 40.00 X 155267 0 100958 RYAN BRODSHO DIRECTOR OF PLANNING 40.00 X 167545 0 102005 MIKE GIROLAMO DIRECTOR OF OPERATIONS 40.00 X 140639 0 38774 KYLE MURPHY FOREMAN 48.00 X 183997 0 62184 ZANE PETERS TROUBLEMAN 46.00 X 176363 0 70695 JAMES WINES FOREMAN 45.00 X 165158 0 57680 JACOB MANNING FOREMAN 44.00 X 157131 0 69729 TODD BRETHAUER SUBSTATION FOREMAN 43.00 X 158877 0 80786 2215007 0 912487 18 0 1 0 WESTERN LINE BUILDERS PO BOX 614 WELLS NV 89835 LINE CONSTRUCTION 582738 DYNAMIC ELECTRICAL SOLUTIONS 150 ELM STREET ELKO NV 89801 ENGINEERING SERVICES 192660 POWER ENGINEERS PO BOX 1066 HAILEY ID 83333 ENGINEERING SERVICES 177720 DAVID ANGELL 17803 E CLOUDBERRY DRIVE PARKER CO 80134 ENGINEERING SERVICES 161350 NNE CONSTRUCTION 4990 VICTORY BLVD ELKO NV 89801 CONSTRUCTION CONTRACTOR 131509 9 X SALES OF ELECTRICITY 221000 39670616 39670616 PATRONAGE DIVIDENDS 221000 318241 318241 TRANSMISSION LEASE 221000 301500 301500 ELECTRIC WIRING 221000 247711 247711 SERVICE & OTHER FEES 221000 177417 177417 118168 118168 40833653 635842 635842 POWER SUPPLIER DISTRIBUTION 221000 2563782 2563782 POLE ATTACHMENT INCOME 221000 54820 54820 SECURITY & MONITORING 561700 432 432 2619034 44088529 40833653 432 3254444 X 42681 1194001 1944894 2611558 382283 1121503 286193 563339 3684074 PURCHASED POWER 25277314 ADMIN & GENERAL EXPENSE 1799098 DISTRIBUTION EXPENSE 972951 CONSUMER EXPENSE 626726 351805 40858420 3683517 608929 14817883 15982180 3590370 3873648 1497691 1604642 787116 586775 104711840 55644813 47298353 49067027 2546298 2761867 481630 338860 74702858 74823928 3551600 3159392 16597921 15874290 17436448 15043545 37585969 34077227 X 0 0 0 0 37116889 40746701 37116889 40746701 74702858 74823928 X 3230109 399703 X X 0 1 X 0 0 632296 632296 16772605 4604480 12168125 83690422 51040333 32650089 3616517 3616517 49067027 CONSUMER DEPOSITS 123002 POST-RETIREMENT BENEFITS 8234490 ACCRUED OPERATING TAXES 103000 DEFERRED CREDITS - CONSERVATION RATE CREDIT PROGRAM 1729395 DEFERRED CREDITS - AID TO CONSTRUCTION 4020761 DEFERRED CREDITS - OTHER 832897 15043545 X 43870871 0 43870871 217658 217658 44088529 39446761 0 39446761 1411659 1411659 40858420 PART X, LINE 2: THE COMPANY HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COMPANY IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COMPANY DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 217,658. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 217,658. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,194,001. PART VIII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART VIII HAS BEEN LEFT BLANK. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. 0 ELKO COUNTY 4H SALE BOARD PO BOX 456 WELLS NV 89835 300506241 501(C)3 9094 0 LIVESTOCK SALE ELKO COUNTY SCHOOL DISTRICT 208 BOYD KENNEDY RD SPRING CREEK NV 89815 470906695 GOVERNMENT 9707 0 2024 SPONSOR DONATIONS WELLS FAMILY RESOURCE CENTER 261 1ST ST WELLS NV 89835 880376097 501(C)3 5855 0 2024 DONATIONS CITY OF WELLS 525 SIXTH ST WELLS NV 89835 886000204 GOVERNMENT 6236 0 CAR SHOW AND GOLF SPONSORSHIP 4 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X 0 0 0 CLAY R FITCH EMERITUS CEO 215136 0 0 0 42182 0 79691 0 31498 0 368507 0 0 0 THAD BALLARD CEO 180168 0 1800 0 30246 0 100091 0 40708 0 353013 0 0 0 RYAN BRODSHO DIRECTOR OF PLANNING 164784 0 1500 0 1261 0 65461 0 36544 0 269550 0 0 0 CYNTHIA GOOD DIRECTOR OF ACCT, FINANCE,HR 143923 0 2000 0 9344 0 82285 0 18673 0 256225 0 0 0 ZANE PETERS TROUBLEMAN 173243 0 100 0 3020 0 32788 0 37907 0 247058 0 0 0 JEFFERY CROMIE DIRECTOR OF STRATEGY/BUS. DEV 153136 0 2200 0 13650 0 73764 0 3924 0 246674 0 0 0 KYLE MURPHY FOREMAN 182212 0 100 0 1685 0 25157 0 37027 0 246181 0 0 0 TODD BRETHAUER SUBSTATION FOREMAN 154472 0 0 0 4405 0 50633 0 30153 0 239663 0 0 0 JACOB MANNING FOREMAN 156000 0 100 0 1031 0 30822 0 38907 0 226860 0 0 0 JAMES WINES FOREMAN 163207 0 100 0 1851 0 18754 0 38926 0 222838 0 0 0 MIKE GIROLAMO DIRECTOR OF OPERATIONS 137846 0 0 0 2793 0 21675 0 17099 0 179413 0 0 0 PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. CLAY R. FITCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 77,518 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,173 TOTAL REPORTED IN COLUMN C $ 79,691 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (77,518) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 91,675 EXPENSE TO COOPERATIVE $ 93,848 THAD BALLARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 98,229 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,862 TOTAL REPORTED IN COLUMN C $100,091 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (98,229) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 116,169 EXPENSE TO COOPERATIVE $118,031 RYAN BRODSHO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 63,796 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,665 TOTAL REPORTED IN COLUMN C $ 65,461 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (63,796) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 75,447 EXPENSE TO COOPERATIVE $ 77,112 CYNTHIA GOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 80,807 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,478 TOTAL REPORTED IN COLUMN C $ 82,285 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (80,807) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 95,565 EXPENSE TO COOPERATIVE $ 97,043 ZANE PETERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,462 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,326 TOTAL REPORTED IN COLUMN C $ 32,788 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,462) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,208 EXPENSE TO COOPERATIVE $ 38,534 JEFFERY CROMIE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 72,193 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,571 TOTAL REPORTED IN COLUMN C $ 73,764 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (72,193) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 85,378 EXPENSE TO COOPERATIVE $ 86,949 KYLE MURPHY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,805 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,352 TOTAL REPORTED IN COLUMN C $ 25,157 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,805) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,153 EXPENSE TO COOPERATIVE $ 29,505 TODD BRETHAUER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,281 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,352 TOTAL REPORTED IN COLUMN C $ 50,633 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,281) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 58,281 EXPENSE TO COOPERATIVE $ 59,633 JACOB MANNING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 29,470 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,352 TOTAL REPORTED IN COLUMN C $ 30,822 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (29,470) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,852 EXPENSE TO COOPERATIVE $ 36,204 JAMES WINES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,234 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,520 TOTAL REPORTED IN COLUMN C $ 18,754 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,234) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN -0- EXPENSE TO COOPERATIVE $ 13,520 MIKE GIROLAMO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,650 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,025 TOTAL REPORTED IN COLUMN C $ 21,675 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,650) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 9,047 EXPENSE TO COOPERATIVE $ 23,072 SPENCER EGBERT FAMILY RELATIONSHIP - DIRECTOR (S. EGBERT) 102386 EMPLOYMENT 0 KARLEY FITCH FAMILY RELATIONSHIP - OFFICER (C. FITCH) 58866 EMPLOYMENT 0 COLLIN SHELLEY FAMILY RELATIONSHIP - OFFICER (C. GOOD) 66969 EMPLOYMENT 0 FORM 990, PART I: IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $3,230,109, WHICH IS THE EFFECT OF TRANSFERRING NON-OPERATING MARGINS TO OTHER EQUITIES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 3,230,109 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 1,194,001 TOTAL 2024 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 4,424,110 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION 5. AMENDMENT TO THE BYLAWS FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION AND A PERFORMANCE EVALUATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEO/GENERAL MANAGERS FROM COOPERATIVES LOCATED IN NEVADA AND THE NORTHWEST. THE CEO USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEVADA AND THE NORTHWEST. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. AUDITED FINANCIAL STATEMENTS ARE ALSO PUBLISHED IN THE RURALITE MAGAZINE ANNUALLY. FORM 990, PART VI, LINE 1B: A FAMILY RELATIONSHIP EXISTS BETWEEN DIRECTOR SCOTT EGBERT AND EMPLOYEE SPENCER EGBERT; THEREFORE, FOR FORM 990 REPORTING PURPOSES, SCOTT EGBERT IS NOT CONSIDERED INDEPENDENT. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: ALTHOUGH THE COMPANY IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART IX, LINES 5-7: SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 4,556,452 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (271,512) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (571,413) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASED POWER 239,665 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 52,088 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 909,408 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 208,010 TOTAL WAGES ACCRUED AND/OR PAID $ 5,122,698 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,047,098 OFFICE SUPPLIES 169,332 OUTSIDE SERVICES EMPLOYED 334,836 INJURIES & DAMAGES 1,911 PENSION & BENEFITS 41,856 REGULATORY COMMISSION 40,504 MISCELLANEOUS GENERAL 266,978 DIRECTORS 520,826 ANNUAL & OTHER MEETINGS 161,480 DUES & MEMBERSHIPS 255,937 MAINTENANCE OF GENERAL PLANT 913,450 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,754,208 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (271,512) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,029,162) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (654,436) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,799,098 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: ELECTRICAL WIRING & INSTALLATION EXPENSE $ 217,658 TAXES 3,262 TRANSMISSION 96,419 OTHER DEDUCTIONS 34,466 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 351,805 FORM 990, PART IX, LINE 4: PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,194,001. PATRONAGE CAPITAL RETIRED - TOTAL -913,479. UNCLAIMED CAPITAL CREDITS RETAINED UNDER STATE LAW-NET 220,019. OCI - PENSIONS AND BENEFITS -100,838. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. NEXT DOLLAR CHARITABLE FOUNDATION PO BOX 365 WELLS NV 89835 880336170 TO PROVIDE CHARITABLE GRANTS IN THE COOPERATIVE'S AREA. NV 501(C)(3) LINE 7 WELLS RURAL ELECTRIC COMPANY 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 NEXT DOLLAR CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 NEXT DOLLAR CHARITABLE FOUNDATION O N/A - LESS THAN $50,000