2019-11-12T15:16:37-06:00 2018-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2018-01-01 860082366 TRICO ELECTRIC COOPERATIVE INC TRIC 5207442944 PO BOX 930 MARANA AZ 85653 VINCENT NITIDO CEO/GENERAL MANAGER 5207442944 2019-11-07 1 WILLIAM M MILLER P00439459 8067473806 2019-11-07 X 65.182.80.152 2019-11-07 10:44:10 CS P 2EBFA2265763A01132BE48D36E167D9476E1DDEB 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2018 2020-01-14 16:20:31Z VINCENT NITIDO PO BOX 930 MARANA AZ 85653 101991964 0 X WWW.TRICO.COOP X 1945 AZ TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 140 0 101747 99660 0 0 92396060 101023711 420028 466791 497129 501462 93313217 101991964 64301 65057 5438495 8760828 11099283 10981653 0 0 0 76711138 82196535 93313217 102004073 0 -12109 255264265 254474873 146893239 140601343 108371026 113873530 DEDIATED TO ENHANCING THE LIVES OF OUR MEMBERS, EMPLOYEES AND COMMUNITIES BY PROVIDING SAFE RELIABLE ENERGY, SERVICE AND SUPPORT IN AN ENVIRONMENTALLY RESPONSIBLE AND COST-EFFECTIVE MANNER. 0 0 SALE OF ELECTRIC POWER TO MEMBERS - 47,614 ACTIVE SERVICES WERE PROVIDED POWER AT YEAR END AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 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 69 0 140 1 1 1 0 0 0 0 100046137 1411914 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 AZ X BRIAN FICKETT MANAGER OF FINANCE & ACCOUNTING 5207442944 8600 W TANGERINE RD MARANA AZ 85658 X L NICK BUCKELEW PRESIDENT 3.80 1.00 X X 14918 0 0 LARRY HINCHLIFFE VICE PRESIDENT 5.20 1.00 X X 14790 0 0 MARSHA THOMPSON SECRETARY 4.70 1.00 X X 13260 0 0 JAMES R PYERS TREASURER 3.40 1.00 X X 12210 0 0 DON BLACK DIRECTOR 3.90 1.00 X 10710 0 0 BRAD DESPAIN DIRECTOR 4.20 1.00 X 10710 0 0 BARBARA STOCKWELL DIRECTOR 5.00 1.00 X 14535 0 0 VINCENT NITIDO CEO/GENERAL MANAGER 50.00 X 405738 0 140095 KAREN CATHERS CHIEF OPERATING OFFICER 50.00 X 180341 0 84629 JANICE RAST CHIEF INFORMATION OFFICER 50.00 X 155893 0 94692 BRIAN FICKETT MANAGER OF FINANCE & ACCOU 50.00 X 107193 0 50981 RONALD BROWN MANAGER OF OPERATIONS 50.00 X 150709 0 120402 ROBERT ANSELL SUPERVISOR OF DISPATCH 40.00 X 145680 0 18984 GARY KELLY MANAGER OF ENGINEERING 40.00 X 135556 0 57484 JEREMY KONSKI JOURNEYMAN LINEMAN 51.00 X 120380 0 32059 CARTER JOHNSON CREW LEADER 46.00 X 121178 0 45363 1613801 0 644689 28 0 1 0 LINDGREN BUILDING SUPPLY 999 CANAL BLVD STE A RICHMOND CA 94804 SOLAR CONTRACTORS 9506205 SWINERTON BUILDERS 16798 W BERNARDO DRIVE SAN DIEGO CA 92127 SOLAR CONTRACTORS 4331678 TORCH CLEAN ENERGY LLC 939 PEARL STREET STE 210 BOULDER CO 80302 SOLAR CONTRACTORS 2306116 ELLETT AND GAYNOR LLC 5706 SW 4TH AVE AMARILLO TX 79109 RUS ENGINEERS 187763 ONE CALL LOCATORS PO BOX 220 BETTENDORF IA 52722 UTILITY LOCATORS 154143 7 X SALES OF ELECTRICITY 221000 97452116 97452116 PATRONAGE DIVIDENDS 221000 2440049 2440049 SERVICE FEES 221000 781090 781090 ELECTRICITY WHEELING 221000 350456 350456 101023711 466791 466791 POLE ATTACHMENT INCOME 221000 399715 399715 INTERNET COMMISSIONS 517000 101747 101747 501462 101991964 101023711 101747 866506 X 65057 8760828 1310695 6721611 1477696 923359 548292 4857239 11151797 PURCHASED POWER 57601776 DISTRIBUTION EXPENSE 3495386 ADMIN & GENERAL EXPENSE 2878665 UNRELATED BUS. INC. TAX 19290 2192382 102004073 5597165 3964974 17500000 2000000 4703520 20260732 4402816 3645361 4396575 3844814 273539449 100405970 174133347 173133479 44298264 46263902 232578 1361611 255264265 254474873 7324751 7944907 133271423 126280343 6297065 6376093 146893239 140601343 X 0 0 6985671 7036536 101385355 106836994 108371026 113873530 255264265 254474873 X -12109 5514613 X X 0 1 X 1 0 1400728 1400728 11155992 3643976 7512016 255673592 96761994 158911598 5309137 5309137 173133479 PATRONAGE CAPITAL - CFC 807515 C PATRONAGE CAPITAL - AEPCO 43173104 C OTHER PATRONAGE CAPITAL 329258 C CAPITAL TERM CERTIFICATES 1358415 C MEMBERSHIPS 3235 C OTHER RESERVE FUNDS & DEPOSITS 91685 C PREFERRED E STOCK - FEDERATED 361368 C GRAND CANYON STATE ELECTRIC BUILDING FUND 139322 C 46263902 CONSUMER DEPOSITS 1846207 ACCRUED OPERATING TAXES 1787958 DEFERRED CREDITS 2688075 PENSION RESERVES - DEFERRED COMP 53853 6376093 X PART X, LINE 2: THE COOPERATIVE ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALL 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 IS 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 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 CAPITAL 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 CAPITAL IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE CAPITAL 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 TRICO CHARITABLE TRUST PO BOX 930 MARANA AZ 85653 860794164 501(C)(3) 50000 POWER GRANT CONTRIBUTION. TUCSON CONQUISTADORES 6450 E BROADWAY BLVD TUCSON AZ 85710 202132844 501(C)(6) 5008 TO PROVIDE CONTRIBUTIONS TO THEIR MISSION. 2 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 1 0 0 VINCENT NITIDO CEO/GENERAL MANAGER 388782 0 2000 0 14956 0 112708 0 27387 0 545833 0 0 0 KAREN CATHERS CHIEF OPERATING OFFICER 177191 0 2300 0 850 0 72031 0 12598 0 264970 0 0 0 JANICE RAST CHIEF INFORMATION OFFICER 152231 0 2300 0 1362 0 82395 0 12297 0 250585 0 0 0 BRIAN FICKETT MANAGER OF FINANCE & ACCOU 105396 0 1300 0 497 0 27790 0 23191 0 158174 0 0 0 RONALD BROWN MANAGER OF OPERATIONS 141696 0 2150 0 6863 0 105926 0 14476 0 271111 0 0 0 ROBERT ANSELL SUPERVISOR OF DISPATCH 62769 0 2100 0 80811 0 2116 0 16868 0 164664 0 0 0 GARY KELLY MANAGER OF ENGINEERING 129073 0 1300 0 5183 0 36347 0 21137 0 193040 0 0 0 JEREMY KONSKI JOURNEYMAN LINEMAN 119940 0 300 0 140 0 12114 0 19945 0 152439 0 0 0 CARTER JOHNSON CREW LEADER 120475 0 300 0 403 0 37092 0 8271 0 166541 0 0 0 PART I, LINE 4A DURING THE YEAR ROBERT ANSELL RECEIVED SEVERANCE OF $30,916. 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. VINCENT NITIDO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 101,708 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,000 TOTAL REPORTED IN COLUMN C $ 112,708 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (101,708) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 70,817 EXPENSE TO THE COOPERATIVE $ 81,817 KAREN CATHERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 64,791 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,240 TOTAL REPORTED IN COLUMN C $ 72,031 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (64,791) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 44,705 EXPENSE TO COOPERATIVE $ 51,945 JANICE RAST: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 76,044 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,351 TOTAL REPORTED IN COLUMN C $ 82,395 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (76,044) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,143 EXPENSE TO COOPERATIVE $ 45,494 BRIAN FICKEET: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,150 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,640 TOTAL REPORTED IN COLUMN C $ 27,790 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,150) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,827 EXPENSE TO COOPERATIVE $ 33,467 RONALD BROWN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 100,075 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,851 TOTAL REPORTED IN COLUMN C $ 105,926 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (100,075) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,052 EXPENSE TO COOPERATIVE $ 41,903 ROBERT ANSELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,116 TOTAL REPORTED IN COLUMN C $ 2,116 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN -0- ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,089 EXPENSE TO COOPERATIVE $ 25,205 GARY KELLY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,935 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,412 TOTAL REPORTED IN COLUMN C $ 36,347 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,935) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,893 EXPENSE TO COOPERATIVE $ 38,305 JEREMY KNOSKI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,327 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,787 TOTAL REPORTED IN COLUMN C $ 12,114 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,327) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,817 EXPENSE TO COOPERATIVE $ 22,604 CARTER JOHNSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,968 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,124 TOTAL REPORTED IN COLUMN C $ 37,092 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,968) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,464 EXPENSE TO COOPERATIVE $ 24,588 SCOTT RAST FAMILY RELATIONSHIP 112813 SCOTT RAST RECEIVED COMPENSATION AS AN EMPLOYEE OF THE COOPERATIVE. HE AND JANICE RAST, EMPLOYEE OFFICER OF THE COOPERATIVE, ARE FAMILY MEMBERS PER THE 990 DEFINITION OF FAMILY MEMBERS. 0 CHELSEA MORRISON FAMILY RELATIONSHIP 41241 CHELSEA MORRISON RECEIVED COMPENSATION AS AN EMPLOYEE OF THE COOPERATIVE. SHE AND JANICE RAST, EMPLOYEE OFFICER OF THE COOPERATIVE, ARE FAMILY MEMBERS PER THE 990 DEFINITION OF FAMILY MEMBERS. 0 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS REVIEWED AND UPDATED, AS NEEDED, BASED ON A SCHEDULE OF POLICY REVIEW OF UP TO 3 PER MONTH AT THE MONTHLY REGULAR BOARD MEETING, AND ANY TIME THAT A POTENTIAL OR ACTUAL CONFLICT OF INTEREST COMES TO THE ATTENTION OF ANY BOARD MEMBER OR THE CEO/GENERAL MANAGER. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE CEO/GENERAL MANAGER. THE CEO/GENERAL MANAGER UTILIZES INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER BY APPOINTMENT AT THE COOPERATIVE'S OFFICE. ANNUALLY THE COOPERATIVE PROVIDES A CONDENSED SUMMARY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. ADDITIONALLY THE BYLAWS OF THE COOPERATIVE ARE MADE AVAILABLE VIA 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 ALL PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH INSURANCE TO ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR EMPLOYEE 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: 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 MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE. 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 TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 8,032,306 LESS: DIRECTOR FEES REPORTED ON FORM 1099-MISC (91,133) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (370,397) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,580,936 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,046,955 TOTAL WAGES ACCRUED AND OR PAID $11,198,667 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 2,830,160 OFFICE SUPPLIES 768,890 OUTSIDE SERVICES 395,199 INJURIES & DAMAGES 373,764 EMPLOYEE PENSIONS & BENEFITS 66,161 ANNUAL MEETING 30,534 MISCELLANEOUS GENERAL 963,565 REGULATORY COMMISSION 176,754 MAINTENANCE OF GENERAL PLANT 1,031,671 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,636,698 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (91,133) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,549,122) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,117,778) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,878,665 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 2018 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: ALL OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 1,257,605 CUSTOMER SERVICE & INFORMATION 303,192 OTHER DEDUCTIONS 534,134 TRANSMISSION 95,533 TAXES 1,918 TOTAL ALL OTHER EXPENSES PER FORM 990, LINE 24E $ 2,192,382 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 8,760,828. PATRONAGE CAPITAL RETIRED - TOTAL -3,309,189. GAIN ON RETIRED CAPITAL CREDITS 50,865. EQUITY METHOD INCOME FROM SUBSIDIARY 12,109. 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. TRICO FOUNDATION PO BOX 930 MARANA AZ 85653 942941045 TO PROVIDE COLLEGE SCHOLARSHIPS TO MEMEBERS OF THE COOPERATIVE. AZ 501(C)3 PF TRICO ELECTRIC COOPERATIVE 1 TRICO ELECTRIC CHARITABLE TRUST PO BOX 930 MARANA AZ 85653 860794164 TO PROVIDE CHARITABLE GRANTS TO RESIDENTS OF THE COOPERATIVE'S SERVICE AREA. AZ 501(C)3 LINE 7 TRICO ELECTRIC COOPERATIVE 1 AVION SOLAR LLC PO BOX 930 MARANA AZ 85653 832453793 SOLAR ENERGY AZ TRICO ELECTRIC COOPERATIVE INC 13030 27979087 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 TRICO FOUNDATION O N/A - LESS THAN $50,000 TRICO ELECTRIC CHARITABLE TRUST O N/A - LESS THAN $50,000