2015-11-13T16:13:42-06:00 2014-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2014-01-01 740754103 BLUEBONNET ELECTRIC COOPERATIVE INC BLUE 8886222583 PO BOX 729 BASTROP TX 786020729 ELIZABETH KANA CFO 8886222583 2015-11-04 1 William M Miller P00439459 8067473806 2015-11-04 X 2014 2016-04-25 22:37:26Z MARK ROSE PO BOX 729 BASTROP TX 786020729 230803354 0 X WWW.BLUEBONNETELECTRIC.COOP X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 11 328 0 57336 0 0 0 202267448 223746757 270907 87912 860230 6164742 203398585 229999411 278413 2703815 6114686 8770343 22353855 24200226 0 0 0 174142939 194099174 202889893 229773558 508692 225853 447848834 465787777 295988324 309634659 151860510 156153118 X COMMITMENT TO OUR MEMBERS TO BE THE BEST WE CAN BE AT DELIVERING RELIABLE ELECTRIC POWER AND RELATED SERVICES AT A COMPETITIVE PRICE. TO FACILIATE THIS COMMITMENT, WE WILL CONTINUE TO INVEST IN THE LATEST PROVEN TECHNOLOGIES, GOOD STEWARDSHIP OF OUR ENVIRONMENT AND THE COMMUNITIES WE SERVE, AS WELL AS IN THE HEALTH AND SAFETY OF THE PUBLIC, OUR MEMBERS AND EMPLOYEES - THE TRUE SOURCE OF ENERGY OF BLUEBONNET. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 86,888 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 1 0 1 0 0 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 1 0 1 109 0 328 1 1 1 0 0 0 0 226938250 13628696 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ELIZABETH KANA 8886222583 155 ELECTRIC AVENUE BASTROP TX 78602 X BENNIE FLENCHER CHAIRMAN 4.70 1.00 X X 39589 0 0 KENNETH MUTSCHER VICE-CHAIRMAN 7.70 1.00 X X 29816 0 0 RODERICK EMANUEL SECRETARY/TREASURER 5.00 1.00 X X 24061 0 0 BYRON BALKE ASST. SECRETARY-TREASURER 7.30 1.00 X X 28682 0 0 JAMES KERSHAW DIRECTOR 5.50 1.00 X 29205 0 0 SUANNA TUMLINSON DIRECTOR 9.00 1.00 X 29293 0 0 ROBERT MIKESKA DIRECTOR 4.30 1.00 X 37713 0 0 MILTON SHAW DIRECTOR 8.50 1.00 X 25137 0 0 RICHARD SCHMIDT DIRECTOR 4.00 1.00 X 38696 0 0 RUSSELL JURK DIRECTOR 5.20 1.00 X 23611 0 0 KATHLEEN HANDY DIRECTOR 3.80 1.00 X 39012 0 0 MARK ROSE GENERAL MANAGER & CEO 50.00 X 528236 0 107085 ELIZABETH KANA CFO 50.00 X 261942 0 92860 MATT BENTKE COO 55.00 X 333183 0 85571 GRANT GUTIERREZ CIO/CONTROLLER 50.00 X 197547 0 64892 RACHEL ELLIS CHIEF ADMINISTATION OFFICER 50.00 X 202822 0 96288 ERIC KOCIAN CHIEF ENGINEER/SYSTEMS OPERATIONS OFFICER 50.00 X 200048 0 51697 SARAH NEWMAN-ALTAMIRANO GENERAL COUNSEL 50.00 X 209183 0 43873 JOHN SANDERS MGR OF COMMUNITY & ECONOMIC DEVELOPEMENT 50.00 X 164763 0 90934 DAVID TOBOLA MGR OF OPERATIONS 50.00 X 161904 0 47180 LESLIE BARRIOS MGR OF FUNCTIONAL/APP SUPPORT 50.00 X 145212 0 19499 THOMAS ELLIS MGR OF ENGINEERING 50.00 X 135288 0 33339 PATRICIA ALLEN COMPLIANCE OFFICER 50.00 X 111647 0 17461 WESLEY BRINKMEYER MGR OF ENERGY PROGRAMS 50.00 X 109570 0 30652 3106160 0 781331 26 0 1 0 RAY MCCHRISTIAN & JEANS PC 1250 NE LOOP 410 SUITE 700 SAN ANTONIO TX 78209 LEGAL & PROFESSIONAL 2904665 3W ELECTRIC INC 4422 HWY 29 SOUTH HOPE AR 71801 CONSTRUCTION CONTRACTOR 2556123 NIROW INC PO BOX 450 CORRIGAN TX 75939 RIGHT OF WAY CONTRACTOR 2190579 LINE TECH 402 TECHNOLOGY DRIVE BASTROP TX 78602 CONSTRUCTION CONTRACTOR 2154470 UNITED CONTRACTORS PO BOX 1866 BASTROP TX 78602 CONSTRUCTION CONTRACTOR 1579555 33 X ELECTRICITY SALES 221000 220121038 220121038 TRANS.LINE LEASE 221000 1918664 1918664 PATRONAGE DIVIDENDS 221000 1707055 1707055 223746757 144394 57336 87058 2962 2962 2800 598917 373 0 2427 598917 601344 42708 558636 87625 144107 -56482 -56482 -56482 744595 659463 85132 85132 NON-RECURRING REGULATED INCOME 221000 5404665 5404665 MISCELLANEOUS INCOME 221000 70639 70639 5475304 229999411 229349901 57336 592174 X 2703815 8770343 3075739 13854634 3459512 2661299 1149042 11933605 19626938 PURCHASED POWER 138470211 DISTRIBUTION EXPENSE 11570173 ADMIN & GENERAL EXPENSE 8525729 CUSTOMER SERVICE 3709795 262723 229773558 4418523 3905551 4023306 7856490 19284944 17591238 1123994 994203 3928888 4154130 14885325 13203849 509229047 110850448 380230932 398378599 11560430 12301024 8392492 7402693 447848834 465787777 19494441 16441325 3095335 303813 343460 255947131 267877518 20242939 21877021 295988324 309634659 X 1064750 1005990 0 0 150795760 155147128 151860510 156153118 447848834 465787777 X 225853 4066755 X X 0 1 X 1 0 0 1 X 4607024 4607024 31759189 6677476 25081713 462420476 104172972 358247504 10442358 10442358 398378599 DEFERRED CREDITS 343460 ACCRUED OPERATING TAXES 930258 ACCRUED COMPENSATED ABSENCES 1606292 ACCRUED INTEREST 982186 CONSUMER DEPOSITS 3732396 CAPITAL CREDIT PAYABLE 3091399 ACCUMULATED PROVISION FOR PENSION AND BENEFITS 11191030 21877021 X Part IV, Line 2b: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. Part X, Line 2: THE COOPERATIVE FOLLOWS 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 THEIR TAX POSITION 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. FORM 990, PAGE 11, PART X, LINE 15 Part VIII THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 DOES NOT EQUAL OR EXCEED 5 PERCENT 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 PERCENT 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. 1 BASTROP COUNTY LONG TERM RECOVERY TEAM PO BOX 1975 BASTROP TX 78602 454463754 501(C)(3) 50000 TO SUPPORT OPERATIONS OF THE ORGANIZATION. BASTROP FINE ARTS GUILD 815 MAIN STREET BASTROP TX 78602 571239456 501(C)(3) 2504875 TO CONSTRUCT NEW PERFORMING ARTS CENTER. BASTROP CHAMBER OF COMMERCE 927 MAIN STREET BASTROP TX 78602 740501825 501(C)(3) 5638 TO SUPPORT OPERATIONS OF THE ORGANIZATION. 3 SCHEDULE I, PART IV ALL GRANTS, SPONSORSHIPS AND DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. DONATIONS MADE FOR THE CONSTRUCTION OF A NEW PERFORMING ARTS CENTER WILL BE MONITORED THROUGHOUT THE CONSTRUCTION PROCESS WITH PERIODIC REPORTS TO THE COOPERATIVE BY THE PROJECT MANAGER. X X X 0 1 0 MARK ROSE GENERAL MANAGER & CEO 389707 0 105000 0 33529 0 85730 0 21355 0 635321 0 26501 0 ELIZABETH KANA CFO 223036 0 35000 0 3906 0 72667 0 20193 0 354802 0 0 0 MATT BENTKE COO 279278 0 50000 0 3905 0 62972 0 22599 0 418754 0 0 0 GRANT GUTIERREZ CIO/CONTROLLER 186739 0 10000 0 808 0 34776 0 30116 0 262439 0 0 0 RACHEL ELLIS CHIEF ADMINISTATION OFFICER 180862 0 21960 0 0 0 79136 0 17152 0 299110 0 0 0 ERIC KOCIAN CHIEF ENGINEER/SYSTEMS OPERATIONS OF 198811 0 1237 0 0 0 28629 0 23068 0 251745 0 0 0 SARAH NEWMAN-ALTAMIRANO GENERAL COUNSEL 206509 0 2674 0 0 0 18503 0 25370 0 253056 0 0 0 JOHN SANDERS MGR OF COMMUNITY & ECONOMIC DEVELOPE 144196 0 15000 0 5567 0 67909 0 23025 0 255697 0 0 0 DAVID TOBOLA MGR OF OPERATIONS 118362 0 42708 0 834 0 24605 0 22575 0 209084 0 0 0 LESLIE BARRIOS MGR OF FUNCTIONAL/APP SUPPORT 133298 0 10644 0 1270 0 11518 0 7981 0 164711 0 0 0 THOMAS ELLIS MGR OF ENGINEERING 125645 0 8373 0 1270 0 23929 0 9410 0 168627 0 0 0 Part I, Line 4b MARK ROSE $37,954 (CONTRIBUTIONS TO THE PLAN FOR THE CURRENT YEAR); BENEFITS OF THE NON-QUALIFIED RETIREMENT PLAN WERE FULLY VESTED AND PAID DURING 2014. PLEASE SEE SCHEDULE J, PART II, COLUMN F FOR AMOUNTS INCLUDED IN REPORTABLE COMPENSATION OF THE PLAN PARTICIPANT AND ALSO REPORTED AS DEFERRED COMPENSATION BENEFITS ON FORM 990 IN PRIOR YEARS. FORM 990, SCHEDULE J, 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. MARK ROSE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 78,080 401(K) EMPLOYER MATCH 7,650 TOTAL COLUMN C: $ 85,730 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (78,080) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 50,210 ADD: CASH CONTRIBUTION TO PENSION RESTORATION PLAN 37,954 EXPENSE TO THE COOPERATIVE: $ 95,814 ELIZABETH KANA ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,017 401(K) EMPLOYER MATCH 7,650 TOTAL COLUMN C: $ 72,667 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (65,017) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 51,336 EXPENSE TO THE COOPERATIVE $ 58,986 MATT BENTKE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 55,322 401(K) EMPLOYER MATCH 7,650 TOTAL COLUMN C: $ 62,972 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (55,322) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 55,800 EXPENSE TO THE COOPERATIVE $ 63,450 GRANT GUTIERREZ ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,468 401(K) EMPLOYER MATCH 6,308 TOTAL COLUMN C: $ 34,776 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (28,468) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 39,060 EXPENSE TO THE COOPERATIVE $ 45,368 RACHEL ELLIS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 72,945 401(K) EMPLOYER MATCH 6,191 TOTAL COLUMN C: $ 79,136 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (72,945) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 31,248 EXPENSE TO THE COOPERATIVE $ 37,439 ERIC KOCIAN ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,447 401(K) EMPLOYER MATCH 6,182 TOTAL COLUMN C: $ 28,629 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (22,447) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 41,850 EXPENSE TO THE COOPERATIVE $ 48,032 SARAH NEWMAN-ALTAMIRANO ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 401(K) EMPLOYER MATCH 18,503 TOTAL COLUMN C: $ 18,503 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 0 EXPENSE TO THE COOPERATIVE $ 18,503 JOHN SANDERS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,941 401(K) EMPLOYER MATCH 4,968 TOTAL COLUMN C: $ 67,909 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (62,941) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 33,480 EXPENSE TO THE COOPERATIVE $ 38,448 DAVID TOBOLA ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,577 401(K) EMPLOYER MATCH 5,028 TOTAL COLUMN C: $ 24,605 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (19,577) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 20,914 EXPENSE TO THE COOPERATIVE $ 25,942 LESLIE BARRIOS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 401(K) EMPLOYER MATCH 11,518 TOTAL COLUMN C: $ 11,518 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 0 EXPENSE TO THE COOPERATIVE $ 11,518 THOMAS ELLIS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,814 401(K) EMPLOYER MATCH 4,115 TOTAL COLUMN C: $ 23,929 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (19,814) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 27,900 EXPENSE TO THE COOPERATIVE $ 32,015 GARY GUTIERREZ FAMILY MEMBER OF GRANT GUTIERREZ, AN OFFICER OF THE COOPERATIVE. 63883 COMPENSATION AS EMPLOYEE OF THE COOPERATIVE. 0 PHILLIP ELLIS FAMILY MEMBER OF RACHEL ELLIS, AN OFFICER OF THE COOPERATIVE. 107029 COMPENSATION AS EMPLOYEE OF THE COOPERATIVE. 0 DAVID TOBOLA FAMILY MEMBER OF RACHEL ELLIS, AN OFFICER OF THE COOPERATIVE. 161904 COMPENSATION AS EMPLOYEE OF THE COOPERATIVE. 0 JOEY TOBOLA FAMILY MEMBER OF RACHEL ELLIS, AN OFFICER OF THE COOPERATIVE. 28914 COMPENSATION AS EMPLOYEE OF THE COOPERATIVE. 0 GARRETT GUTIERREZ FAMILY MEMBER OF GRANT GUTIERREZ, AN OFFICER OF THE COOPERATIVE. 40552 COMPENSATION AS EMPLOYEE OF THE COOPERATIVE. 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; AND 4. AMENDMENTS TO ARTICLES OF INCORPORATION. Form 990, Part VI, Section B, line 11 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 BOARD MEMBERS, OFFICERS, AND EMPLOYEES OF THE COOPERATIVE ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. OFFICERS, BOARD MEMBERS AND EMPLOYEES ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY AS SOON AS POSSIBLE. OFFICERS AND BOARD MEMBERS ARE REQUIRED TO REPORT ANY ACTION OR SITUATION TO THE ENTIRE BOARD OF DIRECTORS; EMPLOYEES ARE REQUIRED TO REPORT ANY ACTION OR SITUATION TO MANAGEMENT. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON IRS FORMS 990 FOR OTHER ELECTRIC COOPERATIVES WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. INTERNAL AND /OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. WHEN DETERMINING SALARIES FOR OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER, KEY AND HIGHLY COMPENSATED EMPLOYEE, THE COOPERATIVE USES A WEB-BASED SOFTWARE THAT COLLECTS INFORMATION FROM VARIOUS INDUSTRIES, INCLUDING THE UTILITY INDUSTRY, IN DIFFERENT PARTS OF THE COUNTRY. THE AVAILABLE DATA FOR UTILITIES OF SIMILAR SIZE TO AND IN THE REGION OF THE COOPERATIVE, ALONG WITH COMPENSATION DATA OBTAINED FROM FORMS 990 OF OTHER ELECTRIC COOPERATIVES, IS USED TO SET APPROPRIATE MARKET BASED SALARIES. THIS PROCESS IS ADMINISTERED BY THE GENERAL MANAGER AND THE HUMAN RESOURCES DEPARTMENT. Form 990, Part VI, Section C, 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. Form 990, Part VII, Column D THE COMPENSATION REPORTED FOR MEMBERS OF THE BOARD OF DIRECTORS INCLUDE HEALTH INSURANCE PREMIUMS PAID BY THE COOPERATIVE ON BEHALF OF THE BOARD OF DIRECTORS. 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. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 3% OF A PARTICIPATING EMPLOYEE'S BASE SALARY. 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 AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, KEY AND HIGHLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNT REPORTED ON PART VII, COLUMN (F) IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER OR KEY EMPLOYEE, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER, KEY OR HIGHLY COMPENSATED EMPLOYEE. 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 THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. THE UNIFORM SYSTEM OF ACCOUNTING 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 ITS ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. 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 $ 16,930,373 LESS DIRECTORS FEES REPORTED ON 1099-MISC (344,815) LESS EMPLOYEE OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (633,200) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 218,781 PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 5,083,608 TOTAL WAGES ACCRUED AND/OR PAID $ 21,254,747 Form 990, Part IX, Line 24 ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OUTSIDE SERVICES EMPLOYED $ 4,022,183 OUTSIDE SERVICES EMPLOYED - IT 868,674 TECHNOLOGY 1,693,970 DUES AND SUBSCRIPTIONS 189,892 GENERAL MAINTENANCE 261,677 INSURANCE 470,891 DIRECTOR EXPENSE 168,014 PROPERTY TAX 286,913 OTHER TAX EXPENSE 368,602 TRAVEL & TRANSPORTATION 19,914 OTHER GENERAL AND ADMINISTRATIVE EXPENSE 174,999 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 8,525,729 Form 990, Part IX, Line 4 THE FORM 990 INSTRUCTIONS SPECIFICALLY STATE THAT THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS 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 MEMBERS, (HEREINAFTER REFERRED TO AS 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 AND IS SUMMARIZED AS FOLLOWS: (A) IN ORDER TO INDUCE PATRONAGE AND TO ASSURE THAT THE COOPERATIVE WILL OPERATE ON A NONPROFIT BASIS, THE COOPERATIVE IS OBLIGATED TO ACCOUNT ON A PATRONAGE BASIS TO ALL ITS PATRONS FOR ALL AMOUNTS RECEIVED AND RECEIVABLE FROM THE FURNISHING OF ELECTRIC ENERGY IN EXCESS OF OPERATING COSTS AND EXPENSES PROPERLY CHARGEABLE AGAINST SUCH SERVICES (I.E. MARGINS FROM THE PROVISION OF ELECTRIC ENERGY). (B) THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY ARE RECEIVED WITH THE UNDERSTANDING THAT THEY ARE FURNISHED BY THE PATRONS AS CAPITAL. (C) THE COOPERATIVE IS OBLIGATED TO PAY BY CREDITS TO A CAPITAL ACCOUNT FOR EACH PATRON FOR ALL SUCH MARGINS. AND (D) ALL SUCH AMOUNTS CREDITED TO THE CAPITAL ACCOUNT OF ANY PATRON SHALL HAVE THE SAME STATUS AS THOUGH THEY HAD BEEN PAID TO THE PATRON IN CASH IN PURSUANCE OF A LEGAL OBLIGATION TO DO SO AND THE PATRON HAD THEN FURNISHED TO THE COOPERATIVE CORRESPONDING AMOUNTS OF CAPITAL. 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 2014 CALENDAR YEAR. AS NOTED ABOVE, SUCH AMOUNTS ARE ALLOCATED SUBSEQUENT TO YEAR-END IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). THE AMOUNTS ALLOCATED ARE REPRESENTATIVE OF THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY TO THE PATRONS AND ARE DONE PURSUANT TO THE OBLIGATION THAT EXISTED IN THE BYLAWS PRIOR TO THE COOPERATIVE PROVIDING ELECTRICITY TO ITS PATRONS. THEREFORE, THESE AMOUNTS MEET THE DEFINITION OF THE TERM "PATRONAGE DIVIDENDS PAID". PLEASE NOTE, HOWEVER, THAT BECAUSE PATRONAGE DIVIDENDS IS 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 THE AMOUNT OF ITS 2014 MARGIN THAT HAS BEEN OR IS TO BE ALLOCATED TO THE PATRONS SUBSEQUENT TO YEAR-END. SUCH AMOUNTS ARE AN EXPENSE FOR FORM 990 REPORTING AND IS NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). AS A RESULT, THE DIFFERENCE BETWEEN THE COOPERATIVE'S GAAP BASIS FINANCIAL STATEMENTS AND THE REVENUE LESS EXPENSES REPORTED ON PART I, LINE 19 IS THE AMOUNT OF PATRONAGE DIVIDENDS REPORTED AS BENEFITS PAID TO MEMBERS. FORM 990, PART IX, LINE 24E OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TRANSMISSION EXPENSE $ 262,723 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 262,723 Form 990, Part XI, line 9: NET DECREASE IN MEMBERSHIPS -58,760. EQUITY METHOD INCOME (LOSS) FROM INVESTMENT IN SUBSIDIARY 45,979. OTHER COMPREHENSIVE INCOME(LOSS) PROVISION FOR PENSIONS AND BENEFITS -920,305. PATRONAGE CAPITAL RETIRED - TOTAL -4,449,830. PATRONAGE CAPITAL RETIRED - DISCOUNT 679,328. PATRONAGE CAPITAL ASSIGNED 8,770,343. 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. BLUEBONNET RURAL WATER CORPORATION PO BOX 729 BASTROP TX 78602 742532344 WATER DISTRIBUTION TX BLUEBONNET ELECTRIC COOPERATIVE INC C 733676 1215400 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 BLUEBONNET RURAL WATER CORPORATION - (I) INTEREST A 57336 INVOICES AND OTHER RECORDS BLUEBONNET RURAL WATER CORPORATION Q N/A - LESS THAN $50,000 BLUEBONNET RURAL WATER CORPORATION S 166791 LOAN PRINCIPAL PAYMENTS