2025-11-17T20:23:53-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 314311730 SOUTH CENTRAL POWER COMPANY SOUT 8002825064 720 MILL PARK DRIVE LANCASTER OH 43130 RICHARD LEMONDS PRESIDENT/CEO 8002825064 2025-11-17 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-17 X 2024 2025-03-06 01:10:19Z RICHARD LEMONDS 720 MILL PARK DRIVE LANCASTER OH 43130 391870355 0 X WWW.SOUTHCENTRALPOWER.COM X 1936 OH TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 304 0 582502 0 0 0 365809814 387345601 554980 745411 2518363 3718686 368883157 391809698 17350 21200 15852835 17328722 26573651 29437460 0 0 0 326439321 345022316 368883157 391809698 0 0 794658708 903673712 446838831 548509467 347819877 355164245 SOUTH CENTRAL POWER COMPANY EXISTS TO ADD VALUE TO THE LIVES OF OUR MEMBERS BY DELIVERING SAFE AND DEPENDABLE SERVICE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 127,851 ACTIVE SERVICES AT YEAR END. SECURITY DIVISION:PROVIDING SECURITY SERVICES TO OUR MEMBERS ON A COOPERATIVE BASIS. WHEN CUMULATIVE MARGINS DERIVED FROM MEMBER SUBSCRIBER SALES OF SECURITY SERVICES EXCEED CUMULATIVE NET LOSSES FROM SUCH SALES, THE COOPERATIVE WILL ALLOCATE PATRONAGE CAPITAL TO THE MEMBER SUBSCRIBERS. THERE WERE 1,676 ACTIVE SUBSCRIBERS AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 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 1 1 1 0 0 1 120 0 304 1 1 1 0 0 0 0 0 0 369600492 31850446 0 1 0 X 11 11 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ALLISON SAFFLE CFO 8002825064 720 MILL PARK DRIVE LANCASTER OH 43130 X REED BAILEY ASST TREASURER 10.00 X X 37100 0 0 HAROLD COOPER VICE CHAIRMAN 4.00 X X 28900 0 0 KENNETH DAVIS CHAIRMAN 10.00 X X 31817 0 0 JAMES EVANS TRUSTEE 4.00 X 33138 0 0 DON FRANK TREASURER 10.00 X X 38650 0 0 ALAN GABRIEL ASST SECRETARY 12.00 X X 36400 0 0 MIKE HUMMEL ASST VICE CHAIRMAN 5.00 X X 26900 0 0 STEPHEN JOHNSON TRUSTEE 5.00 X 32638 0 0 THOMAS LAMB SECRETARY 5.00 X X 29400 0 0 FRANKLIN LUCAS TRUSTEE 10.00 X 27900 0 0 MICHAEL VINKA TRUSTEE 5.00 X 26900 0 0 RICHARD LEMONDS PRESIDENT/CEO 45.00 X 1713214 0 209168 ALLISON SAFFLE CHIEF FINANCIAL OFFICER 45.00 X 309606 0 99320 THOMAS MUSICK VP ENGINEERING/BROADBAND 40.00 X 352805 0 122037 KYLE HEAVRIN VP MEMBER SERVICES 40.00 X 186651 0 57338 CHRISTOPHER HALL VP OPERATIONS 40.00 X 231170 0 100125 AMY PALMER VP HUMAN RESOURCES 40.00 X 158342 0 62040 KYLE VERRETT VP LEGAL & RISK MANAGEMENT 50.00 X 203899 0 56285 BRYAN BARKER SAFETY & ENVIRONMENTAL CONTROL MGR 40.00 X 212337 0 46804 THOMAS SESTITO LINE SERVICER 40.00 X 188112 0 60278 ANTHONY FOWLER LINE SERVICER 40.00 X 184000 0 27969 CURTIS BLASE LINE SERVICER 40.00 X 175846 0 44535 BENJAMIN JONES LINE SERVICER 40.00 X 176927 0 22634 4442652 0 908533 139 0 1 0 WOLF LINE CONSTRUCTION 5845 OH-124 HILLSBORO OH 45133 CONSTRUCTION 21732987 NEW RIVER ELECTRICAL CORPORATION 4009 COLUMBUS RD SUITE 333 GRANVILLE OH 43023 CONSTRUCTION 7946721 DAVIS H ELLIOT COMPANY INC 673 BLUE SKY PARKWAY LEXINGTON KY 40509 ROW CLEARING 7914201 PENN LINE SERVICE INC 300 SCOTTDALE AVE SCOTTDALE PA 15683 ROW CLEARING 6071036 THAYER POWER AND COMMUNICATION 3003 ETNA PARKWAY PATASKALA OH 43062 CONSTRUCTION 5898657 48 X SALES OF ELECTRICITY 221000 366862854 366862854 TRANSMISSION ACCESS 221000 8435811 8435811 PATRONAGE DIVIDENDS 221000 8192519 8192519 SERVICE FEES 221000 3778307 3778307 OTHER PROGRAM REVENUE 221000 76110 76110 387345601 679039 679039 2561 0 2561 2561 2561 127029 60657 66372 66372 66372 POLE ATTACHMENT INCOME 221000 2014117 2014117 SECURITY REVENUE 561000 941698 941698 BROADBAND SALES & GRANTS 517000 582502 582502 177808 177808 3716125 391809698 388531479 582502 2695717 X 21200 17328722 3078033 17194500 3418249 4328757 1417921 15814089 22997418 PURCHASED POWER 260848840 DISTRIBUTION EXPENSE 29873186 ADMIN & GENERAL EXPENSE 8303211 CONSUMER EXPENSE 5572049 1613523 391809698 1869769 7925199 13241391 13541363 18201284 22142199 36183853 1909240 2868805 818854072 177285342 558623784 641568730 166580866 164148796 23936057 25591084 794658708 903673712 32878147 50291719 361290712 422105377 10000000 53000000 42669972 23112371 446838831 548509467 X 0 0 0 0 347819877 355164245 347819877 355164245 794658708 903673712 X 0 7344368 X X 0 1 X 0 0 4628420 4628420 45242778 4270370 40972408 691964845 173014972 518949873 77018029 77018029 641568730 PATRONAGE CAPITAL - FEDERATED 895734 C PATRONAGE CAPITAL - BUCKEYE POWER 150549221 C PATRONAGE CAPITAL - CFC 1271777 C PATRONAGE CAPITAL - RESCO 1607820 C PATRONAGE CAPITAL - NISC 172478 C PATRONAGE CAPITAL - NRTC 430159 C PATRONAGE CAPITAL - COBANK 8147106 C PATRONAGE CAPITAL - ERMCO 847304 C OTHER INVESTMENTS IN ASSOCIATED 227197 C 164148796 ACCRUED OPERATING TAXES 12481218 CONSUMER DEPOSITS 1810518 REGULATORY LIABILITY 8820635 23112371 X 390796569 0 390796569 1013129 1013129 391809698 373467847 0 373467847 18341851 18341851 391809698 PART X, LINE 2: THE COMPANY ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES IN ITS CONSOLIDATED FINANCIAL STATEMENTS AS REQUIRED BY U.S GAAP. THE COMPANY ANNUALLY EVALUATES ITS TAX POSITIONS AS PART OF THE PREPARATION OF ITS TAX ACCRUAL. THIS PROCESS INCLUDES AN ANALYSIS OF WHETHER TAX POSITIONS THE COMPANY TAKES WITH REGARD TO A PARTICULAR ITEM OF INCOME OR DEDUCTION BE SUSTAINED UPON EXAMINATION BY A TAXING AUTHORITY. NO ACCRUAL HAS BEEN RECORDED AS MANAGEMENT BELIEVES THERE ARE NO UNCERTAIN TAX POSITIONS OF THE COMPANY. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXP. RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXP. 1,013,129. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ASSIGNED OR TO BE ASSIGNED 17,328,722. EXP. RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXP. 1,013,129. PART IX OTHER ASSETS THE AMOUNT OF INVESTMENTS - PROGRAM RELATED 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. 0 UNITED WAY OF FAIRFIELD COUNTY 115 S BROAD ST LANCASTER OH 43130 310644804 501(C)(3) 12000 0 2024 DONATION HARCUM HOUSE CHILD ADVOCACY CENTER 1147 E MAIN ST SUITE B LANCASTER OH 43130 432113958 501(C)(3) 5600 0 2024 DONATION 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 X 1 1 0 RICHARD LEMONDS PRESIDENT/CEO 555458 0 185 0 1157571 0 177103 0 32065 0 1922382 0 1133710 0 THOMAS MUSICK VP ENGINEERING/BROADBAND 225228 0 150 0 127427 0 97105 0 24932 0 474842 0 0 0 ALLISON SAFFLE CHIEF FINANCIAL OFFICER 309421 0 185 0 0 0 85593 0 13727 0 408926 0 0 0 CHRISTOPHER HALL VP OPERATIONS 229359 0 185 0 1626 0 65846 0 34279 0 331295 0 0 0 KYLE VERRETT VP LEGAL & RISK MANAGEMENT 203714 0 185 0 0 0 22977 0 33308 0 260184 0 0 0 BRYAN BARKER SAFETY & ENVIRONMENTAL CONTROL MGR 111389 0 0 0 100948 0 16853 0 29951 0 259141 0 0 0 THOMAS SESTITO LINE SERVICER 187627 0 485 0 0 0 26220 0 34058 0 248390 0 0 0 KYLE HEAVRIN VP MEMBER SERVICES 186166 0 185 0 300 0 24601 0 32737 0 243989 0 0 0 AMY PALMER VP HUMAN RESOURCES 157932 0 410 0 0 0 23105 0 38935 0 220382 0 0 0 CURTIS BLASE LINE SERVICER 175661 0 185 0 0 0 8527 0 36008 0 220381 0 0 0 ANTHONY FOWLER LINE SERVICER 183815 0 185 0 0 0 8585 0 19384 0 211969 0 0 0 BENJAMIN JONES LINE SERVICER 176742 0 185 0 0 0 10907 0 11727 0 199561 0 0 0 PART I, LINES 4A-B DURING THE YEAR, BRYAN BAKER RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $62,000. DURING THE YEAR, MR. RICHARD LEMONDS PARTICIPATED IN A SECTION 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN AND THE TOTAL BENEFITS PAID AND INCLUDED AS W-2 WAGES DURING THE YEAR WERE $1,133,710. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE COOPERATIVE'S CODE OF REGULATIONS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE III - TRUSTEES SECTION 2 QUALIFICATIONS AND TENURE, WAS AMENDED TO STATE "NO PERSON SHALL BE ELIGIBLE TO BECOME OR REMAIN A TRUSTEE OR TO HOLD ANY POSITION OF TRUST IN THE COOPERATIVE WHO: (A) IS NOT A MEMBER OF THE COOPERATIVE AT THE TIME SUCH PERSON'S NAME IS SUBMITTED (I) TO THE NOMINATING COMMITTEE FOR CONSIDERATION OR TO THE COOPERATIVE BY PETITION BY FIFTY (50) OR MORE MEMBERS AS DESCRIBED IN ARTICLE III, SECTION 3 (NOMINATIONS), AND AS OF THE TIME SUCH PERSON IS ELECTED TO THE BOARD, OR (II) AT THE TIME SUCH PERSON IS APPOINTED TO THE BOARD IN ACCORDANCE WITH ARTICLE III, SECTION 4 (VACANCIES), OR WHO SHALL NOT THEREAFTER CONTINUE TO BE A MEMBER; (B) HAS NOT BEEN DOMINCILED FOR AT LEAST ONE (1) YEAR... (C) DOES NOT TAKE ELECTRIC ENERGY FROM THE COOPERATIVE. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND IN THE COMPANY DOCUMENTS SECTION ON THE COOPERATIVE'S WEBSITE: WWW.SOUTHCENTRALPOWER.COM. 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. PURSUANT TO THE CODE OF REGULATIONS, ANY PERSON, FIRM, PARTNERSHIP, POLITICAL SUBDIVISION, GOVERNMENTAL AGENCY OR INSTRUMENTALITY, LIMITED LIABILITY COMPANY, ASSOCIATION, CORPORTION OR BODY POLITIC SHALL BECOME A MEMBER OF THE COOPERATIVE BY ACCEPTING ELECTRIC OR MONTHLY RECURRING SERVICE FROM THE COOPERATIVE AS EVIDENCED BY PAYMENT OF AN INVOICE FOR SUCH SERVICE UNLESS THEY SPECIFICALLY DECLINE MEMBERSHIP. EACH MEMBER AGREES TO (A) COMPLY AND BE BOUND BY THE ARTICLES OF INCORPORATION AND THE CODE OF REGULATIONS, AND (B) PROVIDE THE COOPERATIVE WITHOUT CHARGE SUCH EASEMENTS AND RIGHTS OF WAY THAT ALLOW FOR THE DISTRIBUTION OF ELECTRIC ENERGY TO SERVICE SUCH MEMBER OR OTHER MEMBERS OR PATRONS OF THE COOPERATIVE. 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. ADDITIONALLY, THE SECRETARY OF THE BOARD PREPARES A BALLOT FOR ELECTING TRUSTEES, WHICH IS THEN MAILED AT LEAST THIRTY (30) DAYS PRIOR TO THE ANNUAL MEETING OF MEMBERS. THE MEMBER VOTES, SIGNS AND RETURNS THE BALLOT. A BALLOT CERTIFICATION COMMITTEE APPOINTED BY THE BOARD OF TRUSTEES TABULATES THE VOTES AND DETERMINES THE SUCCESSFUL CANDIDATES. THE RESULTS ARE ANNOUNCED AT THE ANNUAL MEETING OF MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B IN ADDITION TO BOARD OF TRUSTEE ELECTIONS, THE FOLLOWING ACTS ALSO REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. AMENDMENT TO THE ARTICLES OF INCORPORATION 2. AMENDMENT TO CODE OF REGULATIONS 3. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 4. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 5. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 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 EACH YEAR A QUESTIONNAIRE IS GIVEN TO EACH OFFICER, TRUSTEE AND KEY EMPLOYEE ASKING THEM TO CONFIRM THAT THEY HAVE ACCESS TO AND HAVE READ THE COOPERATIVE'S POLICY REGARDING CONFLICTS OR INTEREST. IF THERE ARE EXCEPTIONS TO THE POLICY, THEY ARE TO DISCLOSE IT AT THAT TIME. FORM 990, PART VI, SECTION B, LINE 15 THE COOPERATIVE RETAINS AN INDEPENDENT CONSULTANT AND MAKES USE OF THE ANNUAL NATIONAL COMPENSATION SURVEY OF RURAL ELECTRIC DISTRIBUTION SYSTEMS FOR NRECA (NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION) TO DETERMINE PAY GRADES AND PAY RANGES. BASED UPON THE RECOMMENDATION OF THE CONSULTANT AND SURVEY RESULTS, THE COOPERATIVE CREATES AN ANNUAL WAGES AND SALARY PLAN THAT IS SUBMITTED TO THE BOARD OF TRUSTEES FOR REVIEW AND APPROVAL. EACH EMPLOYEE IS EVALUATED ANNUALLY BY THE SUPERVISOR AND COMPENSATED WITHIN THE WAGE AND SALARY PLAN BASED UPON PERFORMANCE. 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 WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY, THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT AND CODE OF REGULATIONS CAN ALSO BE FOUND ON THE COOPERATIVE'S 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, KEY EMPLOYEES 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, KEY EMPLOYEES 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 VII, SECTION A: W-2 WAGES RESULTING FROM SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION PLAN: MR. RICHARD LEMONDS PARTICIPATES IN A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION (NQDC) PLAN. THE PURPOSE OF THE NQDC PLAN IS TO COMPENSATE THE PLAN PARTICIPANT FOR PENSION BENEFITS THAT ARE SUBJECT TO ANNUAL COMPENSATION LIMITS AND ALSO SUBJECT TO CAPS ON THE LEVEL OF ACCRUED BENEFITS UNDER THE PLAN THAT MAY BE EARNED AS PROVIDED FOR BY SECTIONS 401(A)(17) AND 415(B) OF THE INTERNAL REVENUE CODE, RESPECTIVELY. BUT FOR THESE LIMITATIONS, THE BENEFITS AVAILABLE UNDER THE PENSION PLAN ARE THE SAME FOR ALL EMPLOYEES. BENEFITS ACCRUE FROM THE INITIAL DATE OF THE NQDC PLAN AND BECAME FULLY VESTED, PAYABLE AND REPORTABLE COMPENSATION TO THE PLAN PARTICIPANT PURSUANT TO THE TERMS OF THE PLAN DURING 2024. TOTAL VESTED BENEFITS PAID IN 2024 WERE $1,133,710, AND ARE REPORTED IN PART VII, COLUMN (D) AS A COMPONENT OF BOX 5, W-2 WAGES. ALTHOUGH THE VESTED BENEFITS ARE REPORTABLE COMPENSATION TO THE PLAN PARTICIPANT, ANNUAL EXPENSE OF THE PLAN IS EQUAL TO THE ANNUAL CONTRIBUTIONS AND NOT THE VESTED AMOUNT PAID. THE VESTED AMOUNT PAID IS DUE FROM THE PLAN AND IS AN ULTIMATE REDUCTION OF PLAN ASSETS RATHER THAN AN EXPENSE TO THE COOPERATIVE IN THE YEAR OF PAYMENT. TOTAL REPORTABLE COMPENSATION IN PART VII (COLUMNS D, E & F) FOR ALL OFFICERS, KEY EMPLOYEES, AND DIRECTORS IS $4,211,743. HOWEVER, SINCE THE $1,133,710 OF VESTED BENEFITS IS RECORDED AS A RECEIVABLE DUE FROM THE PLAN AND IS NOT A CURRENT EXPENSE TO THE COOPERATIVE, SUCH PAYMENT IS EXCLUDED FROM PART IX, LINE 5 "COMPENSATION OF CURRENT OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES". THE NET RESULT IS A PART IX, LINE 5 EXPENSE OF $3,078,033. 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, 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 CODE OF REGULATIONS. 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, 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 $ 20,230,375 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (349,743) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (296,282) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (367,871) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 547,767 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 7,966,975 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 2,791,305 TOTAL WAGES ACCRUED AND/OR PAID $ 30,522,524 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 14,335,968 OFFICE SUPPLIES 2,765,720 OUTSIDE SERVICES 805,257 INSURANCES AND DAMAGES 133,535 DUES AND SUBSCRIPTIONS 875,051 TRUSTEES 236,069 TRAINING FEES 386,888 LEGAL EXPENSES & OTHER CONSULTANTS 398,969 MAINTENANCE OF GENERAL PLANT 3,114,753 MISCELLANEOUS GENERAL 465,513 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 23,517,723 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (21,200) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (349,743) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (9,806,239) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (5,037,330) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 8,303,211 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: INTERCONNECT EXPENSES $ 108,887 SATELLITE INTERNET EXPENSES 995 SECURITY EXPENSES 813,893 SURGE EXPENSES 89,354 TRANSMISSION 1,476,080 PROVISION FOR DEFERRED UBIT EXPENSE (BENEFIT) (875,686) TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 7,185,572 FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE (RUS). 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 XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 17,328,722. PATRONAGE CAPITAL RETIRED - TOTAL -11,245,115. PATRONAGE CAPITAL RETIRED - UNCLAIMED & RE-ISSUED 1,260,761. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. CONNECT SCP LLC 720 MILL PARK DRIVE LANCASTER OH 43130 933574241 HIGH SPEED INTERNET OH 19259184 4095549 SOUTH CENTRAL POWER COMPANY SOUTH CENTRAL POWER COMPANY FOUNDATION 720 MILL PARK DRIVE LANCASTER OH 43130 465166907 DONATIONS TO CHARITIES OH 501(C)(3) 10 SOUTH CENTRAL POWER COMPANY 0 MILLER DEVELOPMENT 720 MILL PARK DRIVE LANCASTER OH 43130 310675913 REAL ESTATE DEVELOPMENT OH SOUTH CENTRAL POWER COMPANY C 3200 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SOUTH CENTRAL POWER COMPANY FOUNDATION N N/A - LESS THAN $50,000 SOUTH CENTRAL POWER COMPANY FOUNDATION O N/A - LESS THAN $50,000 MILLER DEVELOPMENT N N/A - LESS THAN $50,000 MILLER DEVELOPMENT O N/A - LESS THAN $50,000