2024-11-14T10:00:35-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 740811772 NUECES ELECTRIC COOPERATIVE INC NUEC 3613872581 14353 COOPERATIVE AVE ROBSTOWN TX 78380 VARZAVAND IRANI CEO 3613872581 2024-11-08 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-08 X 2023 2024-10-15 13:58:12Z VARZAVAND IRANI 14353 COOPERATIVE AVE ROBSTOWN TX 78380 102938001 0 X WWW.NUECESELECTRIC.ORG X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 96 0 0 0 0 0 109057063 101067196 930542 1527435 28874 98246 110016479 102692877 56618 64274 9157834 9536465 7075592 7338425 0 0 0 93708785 84483164 109998829 101422328 17650 1270549 219076817 223330069 95790881 91451739 123285936 131878330 THE MISSION OF NUECES ELECTRIC COOPERATIVE, INC, A MEMBER-OWNED COOPERATIVE, IS TO HELP OUR MEMBERS CONTINUALLY IMPROVE THEIR QUALITY OF LIFE BY PROVIDING RELIABLE AND COST EFFECTIVE ELECTRIC SERVICE IN A CULTURE WHERE SAFETY IS A PRIORITY. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 52,365 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 1 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 0 1 1 0 0 1 94 0 96 1 0 0 0 0 0 99873677 4003398 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X X ADRIANA PENA CFO 3613872581 14353 COOPERATIVE AVE ROBSTOWN TX 78380 X JUAN ALVARADO DIRECTOR (JAN-OCT) 3.30 X 9400 0 0 DONALD WAYNE HERRMANN DIRECTOR 4.80 X 16500 0 0 RUMALDO JUAREZ VICE PRESIDENT 4.90 1.00 X 18200 0 0 GLADYS LIPPINCOTT DIRECTOR 2.10 1.00 X 17100 0 0 BRIAN MENKING PRESIDENT 4.20 X X 21300 0 0 DAVID ROSSE SECRETARY/TREASURER 5.30 X X 20100 0 0 SUSAN STEWART DIRECTOR 4.80 X 19800 0 0 GREGG TRUESDALE DIRECTOR 3.00 1.00 X 17700 0 0 VARZAVAND IRANI CHIEF EXECUTIVE OFFICER 50.00 X 350096 0 102554 SARAH FISHER COO/ASSISTANT GM 50.00 X 201469 0 123661 ADRIANA PENA CHIEF FINANCIAL OFFICER 47.00 X 165441 0 81583 FRANK WILSON CHIEF RETAIL OFFICER 47.00 X 161905 0 83671 ROBERT HOLLOWAY JOURNEYMAN LEAD 61.00 X 200120 0 56215 RAYMUNDO PINA JOURNEYMAN LEAD 52.00 X 162885 0 49821 JUAN RIVERA JOURNEYMAN LEAD 59.00 X 193120 0 51350 ROLAND TREVINO JOURNEYMAN 54.00 X 150489 0 50685 MANUEL PINA JOURNEYMAN 53.00 X 145093 0 47297 1870718 0 646837 21 0 1 0 SOUTH TEXAS ELECTRIC CO-OP INC PO BOX 119 NURSERY TX 77976 RETAIL BILLING 1116456 MOREHEAD DOTTS & ASSOCIATES 545 N UPPER BROADWAY CORPUS CHRISTI TX 78401 ADVERTISING 1113491 URBAN ELECTRICAL SERVICES INC PO BOX 219 CARRIZO SPRINGS TX 78834 LINE CONSTRUCTION 666670 ABC PROFESSIONAL TREE SERVICES INC 201 FLINT RIDGE ROAD STE 201 WEBSTER TX 77598 TREE TRIMMING 453820 ARMADILLO DRILLING & UTILITIES INC PO BOX 955 SINTON TX 78387 TRENCHING AND BORING 357970 18 X SALES OF ELECTRICITY 221000 94459741 94459741 PATRONAGE DIVIDENDS 221000 4850607 4850607 DISTRIBUTION SERVICES 221000 873749 873749 SERVICE FEES 221000 870313 870313 OTHER PROGRAM REVENUE 221000 12786 12786 101067196 1523351 1523351 4084 0 4084 4084 4084 291785 245124 46661 46661 POLE ATTACHMENT INCOME 221000 51585 51585 51585 102692877 101117941 0 1574936 X 64274 9536465 1410480 4221450 435741 891469 379285 3124102 4623993 PURCHASED POWER 63655271 ADMIN & GENERAL EXPENSE 4172055 CONSUMER EXPENSE 3980242 DISTRIBUTION EXPENSE 2389612 2537889 101422328 10227895 1204896 178962 5023543 2926300 3757519 1939614 1729790 656481 612435 162026957 39191055 119461269 122835902 30359099 30880575 50672702 54884105 2654495 2401304 219076817 223330069 10171703 8333045 7195498 7707425 258556 241212 71841553 67771386 6323571 7398671 95790881 91451739 X 575015 593015 0 0 122710921 131285315 123285936 131878330 219076817 223330069 X 1270549 7321845 X X 0 1 X 1 0 0 1 X 1234601 1234601 27070169 6882661 20187508 131291052 32308394 98982658 2431135 2431135 122835902 TREASURY STRIPS 30880575 C 30880575 CAPITAL TERM CERTIFICATES 738569 C PATRONAGE CAPITAL - STEC 47766301 C PATRONAGE CAPITAL - CFC 296326 C PATRONAGE CAPITAL - TEC 1679840 C PATRONAGE CAPITAL - NISC 185355 C PATRONAGE CAPITAL - COBANK 2700784 C PATRONAGE CAPITAL - FEDERATED 609952 C PATRONAGE CAPITAL - CRC 18875 C PATRONAGE CAPITAL - NRTC 110372 C PATRONAGE CAPITAL - VALLEY TELEPHONE 2779 C OTHER INVESTMENTS - RESTRICTED ENERGY DEPOSIT & SCHOLARSHIP FUND 772817 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 2135 C 54884105 CONSUMER DEPOSITS 2316715 ADVANCES FOR CONSTRUCTION 2788727 ACCUMULATED POST RETIREMENT HEALTH BENEFITS 253048 UNCLAIMED PATRONAGE CAPITAL PAYABLE 870377 ACCRUED OPERATING TAXES 490881 RIGHT OF USE LEASE LIABILITY 562113 ACCRUED EMPLOYEE INCENTIVE 116810 7398671 X 101780924 0 101780924 911953 911953 102692877 90973910 0 90973910 10448418 10448418 101422328 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 REPORTED TO 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 ADOPTED 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), 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: NON-OPERATING EXPENSE RECLASSIFIED AS FORM 990 EXPENSE 911,953. PART XII, LINE 4B - OTHER ADJUSTMENTS: NON-OPERATING EXPENSE RECLASSIFIED AS FORM 990 EXPENSE 911,953. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,536,465. 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. THEREFORE, 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 PAID OR 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 CAPITAL 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 NUECES CHARITIES INC 14353 COOPERATIVE AVE CORPUS CHRISTI TX 78380 742756238 501(C)(3) 10000 0 CHARITIES DONATIONS 2023 BUCCANEER COMMISSION INC PO BOX 30404 CORPUS CHRISTI TX 78463 741144093 501(C)(3) 8500 0 2023 RODEO MILITARY NIGHT SPONSORSHIP CORPUS CHRISTI DOWNTOWN MANAGEMENT DISTRICT 223 N CHAPARRAL ST SUITE A CORPUS CHRISTI TX 78401 GOVERNMENT 10000 0 DOWNTOWN REVITALIZATION EVENT SPONSORSHIPS 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 X 0 0 0 VARZAVAND IRANI CHIEF EXECUTIVE OFFICER 314823 0 34278 0 995 0 72334 0 30220 0 452650 0 0 0 SARAH FISHER COO/ASSISTANT GM 184448 0 14002 0 3019 0 90223 0 33438 0 325130 0 0 0 ROBERT HOLLOWAY JOURNEYMAN LEAD 194970 0 4194 0 956 0 27611 0 28604 0 256335 0 0 0 ADRIANA PENA CHIEF FINANCIAL OFFICER 151979 0 12592 0 870 0 48427 0 33156 0 247024 0 0 0 FRANK WILSON CHIEF RETAIL OFFICER 147802 0 12717 0 1386 0 53233 0 30438 0 245576 0 0 0 JUAN RIVERA JOURNEYMAN LEAD 188677 0 3533 0 910 0 39108 0 12242 0 244470 0 0 0 RAYMUNDO PINA JOURNEYMAN LEAD 158225 0 4429 0 231 0 19787 0 30034 0 212706 0 0 0 ROLAND TREVINO JOURNEYMAN 146875 0 2841 0 773 0 22068 0 28617 0 201174 0 0 0 MANUEL PINA JOURNEYMAN 142044 0 2756 0 293 0 18691 0 28606 0 192390 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 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 CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. VARZAVAND IRANI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 61,774 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,560 TOTAL REPORTED IN COLUMN C $ 72,334 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (61,774) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 49,822 EXPENSE TO THE COOPERATIVE $ 60,382 SARAH FISHER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,623 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,600 TOTAL REPORTED IN COLUMN C $ 90,223 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,623) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,075 EXPENSE TO THE COOPERATIVE $ 38,675 ROBERT HOLLOWAY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,127 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,484 TOTAL REPORTED IN COLUMN C $ 27,611 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,127) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,159 EXPENSE TO THE COOPERATIVE $ 24,643 ADRIANA PENA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,913 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,514 TOTAL REPORTED IN COLUMN C $ 48,427 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,913) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,914 EXPENSE TO THE COOPERATIVE $ 32,428 FRANK WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,936 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,297 TOTAL REPORTED IN COLUMN C $ 53,233 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,936) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,340 EXPENSE TO THE COOPERATIVE $ 30,637 JUAN RIVERA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,913 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,195 TOTAL REPORTED IN COLUMN C $ 39,108 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,913) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,159 EXPENSE TO THE COOPERATIVE $ 24,354 RAYMUNDO PINA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,426 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,361 TOTAL REPORTED IN COLUMN C $ 19,787 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,426) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,159 EXPENSE TO THE COOPERATIVE $ 23,520 ROLAND TREVINO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,165 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,903 TOTAL REPORTED IN COLUMN C $ 22,068 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,165) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 9,157 EXPENSE TO THE COOPERATIVE $ 14,060 MANUEL PINA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,945 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,746 TOTAL REPORTED IN COLUMN C $ 18,691 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,945) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,240 EXPENSE TO THE COOPERATIVE $ 20,986 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 A NET INCOME OF $1,270,549, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE AND 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 EQUAL TO THE AMOUNT OF NON-OPERATING MARGINS RETAINED PLUS THE NET INCREASE IN ACCRUED UNBILLED REVENUE AND LESS THE NET DECREASE IN UNBILLED REVENUE. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/23 $ 2,329,877 LESS: UNBILLED REVENUE 12/31/22 (2,646,207) ADD: NON-OPERATING MARGINS RETAINED 1,586,879 (A) - DECREASE EQUALS NET INCOME ON PAGE 1 $ 1,270,549 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 9,536,465 TOTAL 2023 NET MARGIN (A + B) $10,807,014 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. AMENDMENT TO THE ARTICLES OF INCORPORATION 2. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 3. DISSOLUTION AND LIQUIDATION OF THE COOPERATIVE 4. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 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 DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE IMMEDIATELY ANY RELATIONSHIPS CONSIDERED TO BE A POSSIBLE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS/GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY 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 THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COPY OF ITS CONFLICT OF INTEREST POLICY TO ANY MEMBER REQUESTING A COPY. THE COOPERATIVE ALSO PROVIDES A COPY OF THE SUMMARIZED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE IN THE ANNUAL REPORT. ADDITIONALLY, THE BYLAWS, ARTICLES OF INCORPORATION, AND A FULL COPY OF AUDITED FINANCIAL STATEMENTS ARE ALSO POSTED TO THE COOPERATIVE'S WEBSITE FOR THE MOST RECENTLY COMPLETED CALENDAR YEARS. 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. MR. ALVARADO IS NO LONGER A DIRECTOR OF THE BOARD; THEREFORE, HIS PRIOR YEAR QUESITONNAIRE WAS RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES FROM 2022 TO 2023. 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 BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2B: 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: ALTHOUGH 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 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 $ 5,631,930 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (140,100) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (391,469) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 18,032 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,663,584 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 451,210 TOTAL WAGES ACCRUED AND/OR PAID $ 7,233,187 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,604,834 OFFICE SUPPLIES 835,677 OUTSIDE SERVICES 309,738 INSURANCES 362,003 REGULATORY COMMISSION 394,541 DIRECTORS 168,538 DUES AND SUBSCRIPTIONS 76,300 ANNUAL MEETING 172,265 ADVERTISING 1,574,176 MISCELLANEOUS GENERAL 511,389 MAINTENANCE OF GENERAL PLANT 387,331 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,396,792 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (140,100) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,477,068) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (607,569) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,172,055 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 EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2023 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 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 107,627 MILITARY PRIVATIZATION EXPENSES 911,953 PROPERTY AND GROSS RECEIPTS TAXES 1,518,309 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 2,537,889 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,536,465. PATRONAGE CAPITAL RETIRED - TOTAL -2,046,861. PATRONAGE CAPITAL RETIRED - DISCOUNT 67,606. NET CHANGE IN MEMBERSHIPS 18,000. UNBILLED REVENUE -317. OTHER COMPREHENSE INCOME/(LOSS) -253,048. 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. NUECES ELECTRIC CHARITIES INC 14353 COOPERATIVE AVE ROBSTOWN TX 78380 742756238 BETTERING THE QUALITY OF LIFE OF CITIZENS WITHIN THE SERVICE AREA. TX 501(C)(3) LINE 7 NUECES ELECTRIC COOPERATIVE INC 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 NUECES ELECTRIC CHARITIES INC N N/A - UNDER $50,000 NUECES ELECTRIC CHARITIES INC B N/A - UNDER $50,000 NUECES ELECTRIC CHARITIES INC O N/A - UNDER $50,000