2022-11-09T14:44:04-05:00 2021-12-31 731293012 BRISCOE BURKE & GRIGSBY LLP 4120 E 51ST STREET TULSA OK 741353639 990 2021-01-01 750619960 TRI-COUNTY ELECTRIC COOPERATIVEINC TRI- 8174443201 200 BAILEY RANCH ROAD ALEDO TX 76008 DARRYL SCHRIVER PRESIDENT/CEO 8177528130 2022-11-09 true DARRYL SCHRIVER 999009999 MICHAEL K BURKE CPA P00054433 9187498337 2022-11-09 2021 2022-09-23 18:48:47Z DARRYL SCHRIVER 200 BAILEY RANCH ROAD ALEDO TX 76008 308552141 false X WWW.TCECTEXAS.COM X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 288 36350 35350 3482800 261829537 303036583 1135123 928250 937046 1082138 263901706 308529771 71298 96564 7949482 24515446 18470258 19685054 0 0 230528652 269182016 257019690 313479080 6882016 -4949309 659063840 737055460 269076645 323039505 389987195 414015955 X THE COOPERATIVE'S RESPONSIBILITY AND AIM IS TO PROVIDE EXCELLENT AND INNOVATIVE CUSTOMER SERVICE AS REFLECTED IN TOP QUALITY ELECTRIC SERVICE RELIABILITY, AFFORDABLE RATES, EMPLOYEE TEAMWORK AND THE HIGHEST DEGREE OF INTEGRITY IN ALL COOPERATIVE ENDEAVORS. false false TO PROVIDE ELECTRICITY TO OUR MEMBERS - 126,258 ACTIVE SERVICES AT YEAR-END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS AND WERE ALLOCATED PATRONAGE CAPITAL. false false false false false false false false false true false true false true true false false false false false false false false false false false false false true false false false false false false false false false false false true true true false true 96 0 288 true true true false false false false 284015997 3350146 false false false X 9 9 false false true false true true true true true false false true true true true true true true true false X TRI-COUNTY ELECTRIC COOPERATIVE 8174443201 200 BAILEY RANCH ROAD ALEDO TX 76008 JARRETT ARMSTRONG DIRECTOR 3.02 3.02 X 30000 0 0 STEVE HARRIS DIRECTOR 5.51 5.51 X 40800 0 0 KEVIN INGLE DIRECTOR 2.47 2.47 X 34800 0 0 JOHN KILLOUGH VICE CHAIRMA 5.15 5.15 X 40800 0 0 MARGARET KOPREK SEC/TREASURE 3.49 3.49 X 34800 0 0 LARRY MILLER DIRECTOR 4.68 4.68 X 40800 0 0 MICHAEL SIVERTSEN DIRECTOR 2.67 2.67 X 10800 0 0 JERRY WALDEN DIRECTOR 8.62 8.62 X 48600 0 0 MAX WADDELL CHAIRMAN 3.63 3.63 X 40200 0 0 JORDEN WOOD DIRECTOR 5.63 5.63 X 48900 0 0 DARRYL SCHRIVER PRESIDENT/CE 60.00 X 884848 0 652785 MELISSA WATTS CFO 55.00 X 330573 0 149085 NICHOLE ESHBAUGH CTO 55.00 X 305439 0 41939 WESLEY SCHEETS COO 55.00 X 237908 0 278977 JANET REHBERG VP OF ENGINE 55.00 X 236534 0 38272 RICHARD LATHAM LINE SUPERIN 40.00 X 147850 0 183294 STANLEY DECKER ASSIST LINE 45.00 X 131066 0 163579 EDDIE STEVENS ASSIST LINE 45.00 X 142373 0 169671 HERSHEL BLEVINS PROJECT COOR 45.00 X 152800 0 116233 JIMMY VILLA PROJECT COOR 45.00 X 178099 0 108224 3117990 1902059 67 false true false PARISH UTILITIES LLC 3001 COX RD MILLSAP TX 76066 CONSTRUCTION 6029785 WARD ELECTRIC COMPANY INC 9586 E I-25 FRONTAGE ROAD LONGMONT CO 80504 CONSTRUCTION 5642950 HARDIN TREE INC PO BOX 310 OOLOGAH OK 74053 TREE TRIMMING 5407279 VOLT POWER LLC 2910 HWY 31 NW HARTSELLE AL 356404271 CONSTRUCTION 4868920 TURN KEY UTILITY CONSTRUCTION INC 9716 LIMESTONE CT JOSHUA TX 76058 CONSTRUCTION 4482789 28 3482800 3482800 ELECTRICITY SALES 221000 282665469 282665469 PATRONAGE DIVIDENDS 221000 19020586 19020586 SERVICE FEES 221000 1350528 1350528 303036583 812809 812809 706875 22370 684505 684505 36350 648155 115441 115441 115441 115441 3 3 3 MISCELLANEOUS REVENUE 397630 397630 397630 308529771 303549657 36350 1460964 X 96564 24515446 3526861 6311065 9847128 7241961 19689332 PURCHASED POWER 213618219 DISTRIBUTION EXPENSE 19714060 ADMIN & GENERAL 7267495 MISCELLANEOUS 1648869 2080 313479080 0 0 0 3563023 915061 2500 2600 9932290 9382139 1559186 888812 737353258 197748161 480116208 539605097 147586712 169619482 16303921 16642269 659063840 737055460 32725812 37066701 172995220 235976517 63355613 49996287 269076645 323039505 X 2332832 2458911 387654363 411557044 389987195 414015955 659063840 737055460 X -4949309 28978069 X false true X true false 37135743 37135743 5786002 4547797 1238205 606145609 193200364 412945245 88285904 88285904 539605097 PATRONAGE CAPITAL - BRAZOS 137987729 C MEMBER CAPITAL SECURITIES - CFC 10000000 C CAPITAL TERM CERTIFICATES - CFC 7512965 C PATRONAGE CAPITAL - CFC 6183545 C INVESTMENT IN SUBSIDIARY 4949308 C PATRONAGE CAPITAL - TEC 2827365 C PATRONAGE CAPITAL - FEDERATED RURAL 86737 C PATRONAGE CAPITAL - SEDC 51833 C PATRONAGE CAPITAL - NRTC 10296 C PATRONAGE CAPITAL - CRC 8354 C MEMBERSHIPS - NRUCFC 1000 C MEMBERSHIPS - OTHER 300 C MEMBERSHIPS - TEC 50 C 169619482 ACC PROVISION FOR PEN & BEN 22120467 ACC UNBILLED POWER COST REC FAC 15713757 DEFERRED CREDITS - CONSTRUCTION 6880874 CONSUMER DEPOSITS 5281189 49996287 X 308529771 308529771 308529771 284014326 284014326 29464754 29464754 313479080 SCHEDULE D, PAGE 3, PART X DURING THE 2021 CALENDAR YEAR, THE COOPERATIVE WAS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE WITH AT LEAST 85% OF ITS REVENUE COMING FROM MEMBERS FOR THE SOLE PURPOSE OF MEETING LOSSES AND EXPENSES. ADDITIONALLY, THE COOPERATIVE PAYS INCOME TAX ON NET UNRELATED BUSINESS INCOME. THE COOPERATIVE'S UNRELATED BUSINESS ACTIVITIES ARE PRIMARILY DUE TO RENTAL ACTIVITIES. VALUE CHOICE IS A FOR-PROFIT TAXABLE CORPORATION AND IS REQUIRED TO FILE FORM 1120 - "U.S. CORPORATION INCOME TAX RETURN". IN GENERAL, EACH CORPORATION, LIMITED LIABILITY COMPANY AND LIMITED PARTNERSHIP REGISTERED TO DO BUSINESS IN THE STATE OF TEXAS IS SUBJECT TO THE STATE FRANCHISE TAX ON GROSS INCOME, LESS APPLICABLE DEDUCTIONS, APPORTIONED TO THE STATE. THE COOPERATIVE IS EXEMPT FROM THE STATE FRANCHISE TAX; HOWEVER, VALUE CHOICE IS RECOGNIZED AS A TAXABLE COMPANY BY THE STATE OF TEXAS. THEREFORE, CURRENT TAXES ARE ALLOCATED ON THE BASIS OF TAXABLE GROSS REVENUE AND DEFERRED TAXES ARE CALCULATED ON A STAND-ALONE BASIS. THE COOPERATIVE AND THE SUBSIDIARY FOLLOW THE ASSET AND LIABILITY METHOD FOR RECORDING INCOME TAXES. THE OBJECTIVE OF THE ASSET AND LIABILITY METHOD IS TO ESTABLISH DEFERRED TAX ASSETS AND LIABILITIES FOR TEMPORARY DIFFERENCES BETWEEN THE FINANCIAL REPORTING BASIS AND THE TAX BASIS OF THE COOPERATIVE AND THE SUBSIDIARY ASSETS AND LIABILITIES AT ENACTED TAX RATES EXPECTED TO BE IN EFFECT WHEN SUCH AMOUNTS ARE REALIZED OR SETTLED. AS CHANGES IN TAX LAWS OR RATES ARE ENACTED, DEFERRED TAX ASSETS AND LIABILITIES ARE ADJUSTED THROUGH THE PROVISION FOR INCOME TAXES. DEFERRED INCOME TAXES RESULT FROM TRANSACTIONS WHICH ENTER INTO THE DETERMINATION OF TAXABLE INCOME IN DIFFERENT PERIODS THAN RECORDED FOR FINANCIAL REPORTING PURPOSES. DEFERRED TAX ASSETS REPRESENT THE FUTURE TAX BENEFIT THAT WILL RESULT WHEN THE ASSET IS REALIZED. DEFERRED TAX LIABILITIES REPRESENT THE FUTURE TAX RETURN CONSEQUENCES OF THOSE DIFFERENCES, WHICH WILL RESULT IN A TAX EXPENSE WHEN THE LIABILITY IS RECOGNIZED. THE PRINCIPAL SOURCES OF DEFERRED FEDERAL INCOME TAXES ARE DUE TO NET OPERATING LOSS CARRYOVERS. NET OPERATING LOSSES (NOLS) MAY BE CARRIED FORWARD INDEFINITELY TO OFFSET UP TO 80% OF THE FUTURE TAXABLE INCOME OF A CORPORATION. AS OF MARCH 31, 2022, THE TOTAL NOL CARRYOVER AVAILABLE TO VALUE CHOICE WAS 62,168,404. NOLS OF 57,438,011 ATTRIBUTED TO THE 2001 THROUGH 2017 TAX YEARS EXPIRE IN VARYING AMOUNTS FROM MARCH 31, 2023 THROUGH MARCH 31, 2038. THE REMAINING NOLS OF 4,730,393 DO NOT EXPIRE AND WILL CARRY OVER INTO FUTURE YEARS INDEFINITELY UNTIL FULLY UTILIZED. MANAGEMENT BELIEVES IT IS MORE LIKELY THAN NOT THAT A PORTION OF THE EXPIRING NOL CARRYOVER WILL NOT BE FULLY UTILIZED BEFORE EXPIRING. THEREFORE, A VALUATION ALLOWANCE OF THE RELATED DEFERRED TAX ASSET HAS BEEN RECORDED AS OF MARCH 31, 2022 AND 2021. THIS VALUATION ALLOWANCE WAS BASED ON MANAGEMENT'S ESTIMATE OF FUTURE TAXABLE INCOME WHEN COMPARED TO NOL CARRYOVER EXPIRATION DATES. AS OF THE DATE OF THE AUDIT REPORT, MANAGEMENT AND THE BOARD OF DIRECTORS ARE STILL CONSIDERING OTHER TAXABLE VENTURES FOR VALUE CHOICE. MANAGEMENT BELIEVES INCREASING THE VALUATION ALLOWANCE RELATED TO THE DEFERRED TAX ASSET WOULD BE IMMATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE, SO THEREFORE, HAS ELECTED NOT TO RECORD AN ADJUSTMENT OR INCREASE TO THE VALUATION ALLOWANCE UNTIL ALL VENTURES THAT COULD UTILIZE THE VALUE CHOICE NOL'S CAN BE FULLY INVESTIGATED. THE ONLY SOURCE OF DEFERRED STATE INCOME TAXES IS A TEMPORARY TAX CREDIT, WHICH APPROXIMATES 4.5% OF UNUSED BUSINESS LOSS CARRYOVERS RECOGNIZED BY VALUE CHOICE PRIOR TO THE EFFECTIVE DATE OF THE REVISED TEXAS FRANCHISE TAX. THE COOPERATIVE AND THE SUBSIDIARY HAVE 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 THAT ITS FILING STATUS IS AS A TAX-EXEMPT ENTITY. THE COOPERATIVE AND THE SUBSIDIARY DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. THE COOPERATIVE FILES ITS INCOME TAX RETURN IN THE U.S. FEDERAL JURISDICTION. THE SUBSIDIARY FILE INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION AND IN THE STATE OF TEXAS. THE COOPERATIVE AND THE SUBSIDIARY RECOGNIZE INTEREST ACCRUED RELATED TO UNRECOGNIZED TAX BENEFITS IN INTEREST EXPENSE AND PENALTIES IN OPERATING EXPENSES. THERE WERE NO MATERIAL AMOUNTS OF PENALTIES OR INTEREST RECOGNIZED DURING THE YEARS ENDED MARCH 31, 2022 AND 2021. SCHEDULE D, PAGE 4, PART XII, LINE 4B PATRONAGE DIVIDEND ALLOCATION 24,515,446 LOSS ON SUBSIDIARY 4,949,308 X X X false true false DARRYL SCHRIVER PRESIDENT/CEO 879946 4902 631381 21404 1537633 MELISSA WATTS CFO 328450 2123 127681 21404 479658 NICHOLE ESHBAUGH CTO 303501 1938 34321 7618 347378 WESLEY SCHEETS COO 232738 5170 263998 14979 516885 JANET REHBERG VP OF ENGINEERING 235302 1232 30932 7340 274806 RICHARD LATHAM LINE SUPERINTENDENT 143113 4737 168315 14979 331144 STANLEY DECKER ASSIST LINE SUPER 128136 2930 140785 22794 294645 EDDIE STEVENS ASSIST LINE SUPER 133721 8652 153720 15951 312044 HERSHEL BLEVINS PROJECT COORDINATOR 150225 2575 93439 22794 269033 JIMMY VILLA PROJECT COORDINATOR 174166 3933 85430 22794 286323 SCHEDULE J, PART III PART I, 4B DARRYL SCHRIVER, MELISSA WATTS, NICHOLE ESHBAUGH, WESLEY SCHEETS, AND JANET REHBERG ARE PARTICIPANTS IN A 457(F) PLAN. THE COOPERATIVE WILL DEPOSIT 25,000 FOR EACH MEMBER INTO THE PLAN EACH YEAR BEGINNING IN 2021. THIS AMOUNT WILL BE DEPOSITED EACH YEAR THROUGH 2026. AS LONG AS THE INDIVIDUAL REMAINS EMPLOYED AS A SENIOR STAFF MEMBER THROUGH MAY 31, 2026, THEY WILL BE PAID A LUMP SUM PAYMENT FOR THE FULL AMOUNT. IF THE EMPLOYEE IS NO LONGER A SENIOR STAFF MEMBER THROUGH MAY 31, 2026, THE ENTIRE AMOUNT WILL BE FORFEITED BACK TO THE COOPERATIVE. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. FORM 990 - ORGANIZATION'S MISSION THE COOPERATIVE'S RESPONSIBILITY AND AIM IS TO PROVIDE EXCELLENT AND INNOVATIVE CUSTOMER SERVICE AS REFLECTED IN TOP QUALITY ELECTRIC SERVICE RELIABILITY, AFFORDABLE RATES, EMPLOYEE TEAMWORK AND THE HIGHEST DEGREE OF INTEGRITY IN ALL COOPERATIVE ENDEAVORS. FORM 990, PAGE 6, PART VI, LINE 4 IN OCTOBER 2022,TRI-COUNTY ELECTRIC COOPERATIVE APPROVED AN OVERALL TARIFF RATE INCREASE. THIS RATE INCREASE WENT INTO EFFECT ON OCTOBER 1, 2022. FORM 990, PAGE 6, PART VI, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. FORM 990, PAGE 6, PART VI, LINE 7A THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS BY DISTRICT. FORM 990, PAGE 6, PART VI, 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. FORM 990, PAGE 6, PART VI, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PAGE 6, PART VI, LINE 12C THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICTS 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 CONFLICTS OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. IF ANY DISCLOSURE ARISES, THE PRESIDENT/CEO REVIEWS THE CONTRACT AND/OR PURCHASE PROCEDURES. ADDITIONALLY, THE PRESIDENT/CEO AND STAFF EVALUATE EMPLOYEE RELATIONSHIPS WITH VENDORS AND OTHER OUTSIDE ENTITIES FOR POSSIBLE CONFLICTS OF INTERESTS. FORM 990, PAGE 6, PART VI, LINE 15A THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE PRESIDENT/CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR PRESIDENTS/CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. FORM 990, PAGE 6, PART VI, LINE 15B THE PRESIDENT/CEO AND SENIOR STAFF USE AN INDEPENDENT CONSULTANT TO EVALUATE THE PAY STRUCTURE FOR THE COOPERATIVE. THE INDEPENDENT CONSULTANT USES A COMPENSATION SURVEY AND COMPARES COMPENSATION REPORTED ON OTHER COOPERATIVE IRS FORMS 990 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, PAGE 6, PART VI, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. 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. ALL REQUESTS MUST BE MADE IN WRITING. FORM 990, PART VIII FORM 990, PART IX THE COOPERATIVE'S ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS REQUIRED BY ITS REGULATORY AGENCY. THE UNIFORM SYSTEM OF ACCOUNTS DOES NOT RECORD EXPENSES IN THE EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THEREFORE, OTHER EXPENSES LINE 24 INCLUDES EXPENSES THAT ARE DESCRIBED IN LINES 1-23, BUT REPORTED USING THE UNIFORM SYSTEM OF ACCOUNTS. FORM 990, PART XI, LINE 9 NET CHANGE IN MEMBERSHIPS 126,079 PATRONAGE CAPITAL DIVIDEND 24,515,446 OTHER EQUITY CHANGES 9,285,852 EQUITY METHOD SUBSIDIARY -4,949,308 TOTAL 28,978,069 VALUE CHOICE INC 200 BAILEY RANCH ROAD ALEDO TX 76008 752803811 TELECOMMUN TX TRICOUNTY C CORP 5015651 1.00000 false false false false false false false false false false false false false false false false true false false false VALUE CHOICE INC P 12078 CASH