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        <EOY>24571114</EOY>
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        <BOY>13026569</BOY>
        <EOY>9754139</EOY>
      </OtherLiabilities>
      <TotalLiabilities>
        <BOY>38398770</BOY>
        <EOY>40891204</EOY>
      </TotalLiabilities>
      <DoNotFollowSFAS117>X</DoNotFollowSFAS117>
      <RetainedEarningsEndowmentEtc>
        <BOY>49657083</BOY>
        <EOY>51944350</EOY>
      </RetainedEarningsEndowmentEtc>
      <TotalNetAssetsFundBalances>
        <BOY>49657083</BOY>
        <EOY>51944350</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>88055853</BOY>
        <EOY>92835554</EOY>
      </TotalLiabNetAssetsFundBalances>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>true</AccountantCompileOrReview>
      <FSAudited>true</FSAudited>
      <AuditCommittee>true</AuditCommittee>
      <FinancialStatementConsolidated>X</FinancialStatementConsolidated>
      <FederalGrantAuditRequired>true</FederalGrantAuditRequired>
      <FederalGrantAuditPerformed>true</FederalGrantAuditPerformed>
    </IRS990>
    <IRS990ScheduleD documentId="00000002" softwareId="09000048">
      <Land>
        <InvestmentCostOrOtherBasis>856666</InvestmentCostOrOtherBasis>
        <BookValue>856666</BookValue>
      </Land>
      <Buildings>
        <InvestmentCostOrOtherBasis>5520407</InvestmentCostOrOtherBasis>
        <Depreciation>1580188</Depreciation>
        <BookValue>3940219</BookValue>
      </Buildings>
      <Equipment>
        <InvestmentCostOrOtherBasis>124934589</InvestmentCostOrOtherBasis>
        <Depreciation>55781890</Depreciation>
        <BookValue>69152699</BookValue>
      </Equipment>
      <OtherLandBuildings>
        <InvestmentCostOrOtherBasis>1554147</InvestmentCostOrOtherBasis>
        <BookValue>1554147</BookValue>
      </OtherLandBuildings>
      <TotalOfBookValueLandBuildings>75503731</TotalOfBookValueLandBuildings>
      <InvestmentsProgramRelated>
        <Description>Valley Energy Membership</Description>
        <BookValue>1000</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>Intermediary Relending Program Loans</Description>
        <BookValue>305770</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>CoBank E Stock</Description>
        <BookValue>258605</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>Rural Economic Development/Grant Program</Description>
        <BookValue>33000</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>CSA Stockholder and Re-engineering Loan</Description>
        <BookValue>59673</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>Federated Patronage</Description>
        <BookValue>110796</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>Cooperative Response Center</Description>
        <BookValue>22500</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>Sequachee Valley Services Stock</Description>
        <BookValue>50000</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>CFC Membership</Description>
        <BookValue>1000</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>SEDC Patronage Capital</Description>
        <BookValue>101759</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>CFC Patronage Capital</Description>
        <BookValue>48642</BookValue>
      </InvestmentsProgramRelated>
      <InvestmentsProgramRelated>
        <Description>CFC Loan Certificates</Description>
        <BookValue>6895</BookValue>
      </InvestmentsProgramRelated>
      <TotalOfBookValueProgramRelated>999640</TotalOfBookValueProgramRelated>
      <OtherAssets>
        <Description>Dunlap Industrial Park</Description>
        <BookValue>296315</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Deferred Compensation</Description>
        <BookValue>176657</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Accrued Sales Revenue and Pole Rents</Description>
        <BookValue>5032678</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Clearing Expenses</Description>
        <BookValue>2143</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Energy Right Loan Receivable</Description>
        <BookValue>1482081</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Deferred Pension</Description>
        <BookValue>112455</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Deferred Mapping</Description>
        <BookValue>15150</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>Deferred CoBank Early payment penalty</Description>
        <BookValue>60013</BookValue>
      </OtherAssets>
      <TotalBookValueOtherAssets>7177492</TotalBookValueOtherAssets>
      <OtherLiabilities>
        <Description>Post retirement benefits</Description>
        <Amount>919134</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Energy right loans</Description>
        <Amount>1518724</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Line of credit payable</Description>
        <Amount>2500000</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Customer seposits</Description>
        <Amount>2328253</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Interest Accrued</Description>
        <Amount>23600</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Other current liabilities</Description>
        <Amount>2287771</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>Deferred Compensation</Description>
        <Amount>176657</Amount>
      </OtherLiabilities>
      <TotalOfAmounts>9754139</TotalOfAmounts>
      <TotalRevenue>73761991</TotalRevenue>
      <TotalExpenses>71593523</TotalExpenses>
      <ExcessOrDeficitForYear>2168468</ExcessOrDeficitForYear>
      <ExcessOrDeficitPerFS>2168468</ExcessOrDeficitPerFS>
      <TotRevenueEtcAuditedFinclStmt>73761991</TotRevenueEtcAuditedFinclStmt>
      <RevenueSubtotal>73761991</RevenueSubtotal>
      <TotalRevenuePerForm990>73761991</TotalRevenuePerForm990>
      <TotExpensesEtcAuditedFinclStmt>71593523</TotExpensesEtcAuditedFinclStmt>
      <ExpensesSubtotal>71593523</ExpensesSubtotal>
      <TotalExpensesPerForm990>71593523</TotalExpensesPerForm990>
    </IRS990ScheduleD>
    <IRS990ScheduleJ documentId="00000003">
      <WrittenEmploymentContract>X</WrittenEmploymentContract>
      <CompensationSurvey>X</CompensationSurvey>
      <SeverancePayment>false</SeverancePayment>
      <SupplementalNonqualRetirePlan>false</SupplementalNonqualRetirePlan>
      <EquityBasedCompArrangement>false</EquityBasedCompArrangement>
      <Form990ScheduleJPartII>
        <NamePerson>ROBERT W MATHENY</NamePerson>
        <BaseCompensationFilingOrg>214904</BaseCompensationFilingOrg>
        <NontaxableBenefitsFilingOrg>56185</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>271089</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>F A HATFIELD</NamePerson>
        <BaseCompensationFilingOrg>98420</BaseCompensationFilingOrg>
        <NontaxableBenefitsFilingOrg>28835</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>127255</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>TERRY MICHAEL PARTIN</NamePerson>
        <BaseCompensationFilingOrg>97834</BaseCompensationFilingOrg>
        <NontaxableBenefitsFilingOrg>30055</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>127889</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="00000004" softwareId="09000048">
      <GeneralExplanation>
        <Identifier>Pt VI-A, Line 6</Identifier>
        <Explanation>The organization is a non profit electric cooperartive that is member owned</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>at 6-30-10 there were 34,780 members</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Pt VI-A, Line 7a</Identifier>
        <Explanation>The members of the electric cooperative elect board members based on which district the members live in.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Board members must be from the district they represent</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Pt VI-B, Line 11A</Identifier>
        <Explanation>Board Chairman, CEO, COO and VP of Administrative Services review the 990.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Pt VI-B, Line 12c</Identifier>
        <Explanation>Directors are asked to complete a survey each year to ensure</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>there are no conflicts of interests.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Pt VI-B, Line 15</Identifier>
        <Explanation>The Chairman of the Board reviews the CEO compensation annually to comparative</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>data of cooperatives from state and national organizations. The CEO determines</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>the compensation of the key employees based upon information of peer groups</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>supplied by state and national organizations scuh as</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>the National Rural Electric Cooperative Association (NRECA).</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Pt VI-C, Line 19</Identifier>
        <Explanation>The bylaws are handed out to each new member and to anyone else upon request.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Other information pertaining to the electric cooperative is sent out</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>in our monthly magazine and the financial information is submitted on an</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>annual basis. The financial information also appears on our website.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="00000005" softwareId="09000048">
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>BLALOCK PROPANE DBA SVPROPANE</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>PO BOX 374</AddressLine1>
          <City>SOUTH PITTSBURG</City>
          <State>TN</State>
          <ZIPCode>37380</ZIPCode>
        </AddressUS>
        <EIN>621329899</EIN>
        <PrimaryActivity>PROPANE GAS SALES</PrimaryActivity>
        <LegalDomicileState>TN</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>SVEC</BusinessNameLine1>
        </DirectControllingEntityName>
        <TypeOfEntity>C</TypeOfEntity>
        <ShareOfTotalIncome>61008</ShareOfTotalIncome>
        <ShareOfEOYAssets>1054962</ShareOfEOYAssets>
        <PercentageOwnership>1.00000</PercentageOwnership>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>SV SERVICES</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>PO BOX 31</AddressLine1>
          <City>SOUTH PITTSBURG</City>
          <State>TN</State>
          <ZIPCode>37380</ZIPCode>
        </AddressUS>
        <EIN>621771057</EIN>
        <PrimaryActivity>HOLDING COMPANY</PrimaryActivity>
        <LegalDomicileState>TN</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>SVEC</BusinessNameLine1>
        </DirectControllingEntityName>
        <TypeOfEntity>C</TypeOfEntity>
        <ShareOfTotalIncome>-2990</ShareOfTotalIncome>
        <ShareOfEOYAssets>1219342</ShareOfEOYAssets>
        <PercentageOwnership>1.00000</PercentageOwnership>
      </Form990ScheduleRPartIV>
      <ReceiptOfIntAnnRentsRoyalties>true</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>false</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>false</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>false</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>false</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>false</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>false</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>false</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>false</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>false</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>false</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>false</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>false</SharingOfFacilities>
      <SharingOfPaidEmployees>true</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>true</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>true</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>false</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>false</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SV PROPANE</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>payme</TransactionType>
        <AmountInvolved>6706</AmountInvolved>
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      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SVPROPANE BILLED FOR SHARED EMPLOYEES POSTAGE AND OTJER EXPENSES</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>recei</TransactionType>
        <AmountInvolved>18421</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SV SERVICES INTEREST RECEIVED</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>recei</TransactionType>
        <AmountInvolved>40000</AmountInvolved>
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    </IRS990ScheduleR>
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</Return>