2011-06-30T08:57:19-05:00 2010-12-31 BKD LLP 2800 Post Oak Blvd Ste 3200 HOUSTON TX 77056 990 2010-01-01 740828412 PEDERNALES ELECTRIC COOPERATIVE INC PEDE 8308685112 PO BOX 1 JOHNSON CITY TX 78636 MICHAEL E VOLLMER 2011-06-24 M Paige Gerich 7134994600 2010 2016-02-24 21:20:13Z R B SLOAN PO BOX 1 JOHNSON CITY TX 78636 554701501 false X WWW.PEC.COOP X 1938 TX PEDERNALES IS AN ELECTRIC COOPERATIVE OWNED BY THE MEMBERS IT SERVES. PEDERNALES PURCHASES ELECTRICAL POWER FROM SUPPLIERS AND DELIVERS SERVICE TO ITS MEMBERS THROUGH ITS TRANSMISSION/DISTRIBUTION SYSTEM. 6 6 939 0 0 0 0 573546280 552383101 1761401 2125315 3378627 162891 578686308 554671307 220186 410138 0 0 58559371 36048041 0 0 0 462261056 463821554 521040613 500279733 57645695 54391574 1247816518 1291029154 935971460 925306490 311845058 365722664 PEDERNALES IS AN ELECTRIC COOPERATIVE OWNED BY THE MEMBERS IT SERVES. PEDERNALES PURCHASES ELECTRICAL POWER FROM SUPPLIERS AND DELIVERS SERVICE TO ITS MEMBERS THROUGH ITS TRANSMISSION/DISTRIBUTION SYSTEM. false false 0 0 PURCHASE AND DELIVERY OF ELECTRICAL POWER AND UPKEEP OF TRANSMISSION AND DISTRIBUTION SYSTEMS. 0 false false false false false false false false true false false false true false false true false false false false false false false false false false true false true false false false false false false false false false false false true true true false true 361 0 true 939 true false false false false false false false false false 534960002 1091177 false X 6 6 false false true false true true true true false true false true true true true true true true true false X X MICHAEL E VOLLMER 8308684984 PO BOX 1 JOHNSON CITY TX 78636 LAWRENCE LANDAKER 30.0 X X 40000 0 0 CRISTI CLEMENT 38.0 X X 43750 0 0 KATHRYN SCANLON 22.0 X 41500 0 0 R B FELPS 19.3 X 21517 0 0 JAMES WILLIAMS 15.0 X 25500 0 0 PATRICK COX 14.0 X 41000 0 0 OC HARMON 8.0 X 20240 0 0 CHRIS PERRY 16.0 X X 19500 0 0 ROSS FISCHER 5.0 X 18000 0 0 JUAN GARZA 40.0 X 1294379 0 29429 MICHAEL E VOLLMER 40.0 X 223583 0 69230 PAUL HILGERS 40.0 X 264301 0 38612 JEANELL DAVIS 40.0 X 245640 0 58562 JAMES BLANTON 40.0 X 232521 0 25199 LUIS A GARCIA 40.0 X 248489 0 37340 EDWARD A DAUTERIVE 40.0 X 193539 0 29590 DALE A JONES 40.0 X 189980 0 33874 JOHN M HOUSER 40.0 X 177962 0 39382 TONI J REYES 40.0 X 181137 0 45201 LLOYD W MCKEE 40.0 X 186575 0 37173 ROBERT J DIFONZO SR 40.0 X 176871 0 32595 HERBERT O GREBE III 40.0 X 175805 0 32913 MICHAEL J RACIS 40.0 X 176811 0 29367 ARCENIO LOPEZ JR 40.0 X 169282 0 24457 THERESA M OWENS 40.0 X 173378 0 23235 MICHELLE M GALLOWAY 40.0 X 173027 0 29632 MELINDA L ARMBRUSTER 40.0 X 168476 0 45096 STEPHEN V MALDONADO 40.0 X 164054 0 32241 ROBERT PETERSON 40.0 X 192555 0 31110 PETER JOHN SLOVER 40.0 X 168570 0 29164 TED J MASON 40.0 X 128075 0 45842 ZELENNY MARTINEZ 40.0 X 146885 0 26248 RICHARD ARELLANO 40.0 X 130121 0 18458 WILLIAM KOCH 40.0 X 132991 0 21816 AISHA HAGEN 40.0 X 131579 0 12702 6117593 0 878468 42 false true false TEXAS ELECTRIC COOPERATIVE INC ELEC DIST SUB-CONTR 1941727 PIKE ELECTRIC LLC ELEC DIST SUB-CONTR 1166211 T D SOLUTIONS LLC ELEC DIST SUB-CONTR 1144933 DELOITTE CONSULTING LLP CONSULTING SVCS 1497517 LAMBDA CONSTRUCTION I LTD CONSTRUCTION SVCS 1397382 67 0 SALE OF ELECTRICITY 221000 550769939 550769939 PATRONAGE DIVIDEND 221000 1613162 1613162 552383101 2155509 2155509 0 0 30194 -30194 -30194 -30194 0 0 0 MISC NON-OPERATING INCOME 221000 162891 162891 162891 554671307 552545992 2125315 410138 0 0 0 6195069 0 10205668 15226553 451837 3968914 2184022 1029432 932475 86541 0 0 888024 961231 1969979 3625172 0 6525896 0 0 377461 40352743 0 38067545 902507 COST OF PURCHASED POWER 312275279 OPERATIONS 12327745 MAINTENANCE 15562723 ADMINISTRATIVE EXPENSES 18183511 OTHER TAXES 4914168 2655100 500279733 0 0 0 1766623 20603201 4792100 50000 71149749 46062859 11348859 9821567 1171539 1437472 1312961995 209429225 1050157175 1103532770 11448390 11215712 41160135 42401781 54821948 55903792 1247816518 1291029154 79893310 65169320 744045000 751085000 112033150 109052170 935971460 925306490 X 9321417 9472390 302523641 356250274 311845058 365722664 1247816518 1291029154 X 54391574 -513968 X false true true X false 8700812 8700812 44125167 9263096 34862071 780954 395952 385002 1232958383 199764747 1033193637 26396680 5432 26391248 1103532770 0 OTHER DEF CREDITS/LIABILITIES 6156479 POST RETIREMENT BENEFIT OBL 102895691 109052170 554671307 500279733 54391574 -664943 -664943 53726631 553636417 553636417 1034890 1034890 554671307 499909786 664949 664949 499244837 1034896 1034896 500279733 OTHER CHANGES IN NET ASSETS SCHEDULE D, PART XI, LINE 8 EQUITY IN SUBSIDIARY EARNINGS $ (664,949) ROUNDING $ 6 ------------ $ (664,943) REVENUE ON BOOKS, NOT ON RETURN SCHEDULE D, PART XII, LINE 4B DONATIONS $ 410,138 AMORTIZATION OF DEBT DISCOUNT $ 624,758 ROUNDING $ (6) ------------ $1,034,890 EXPENSE ON BOOKS, NOT ON RETURN SCHEDULE D, PART XIII, LINE 2D EQUITY IN SUBSIDIARY EARNINGS $ 664,949 EXPENSE ON RETURN, NOT ON BOOKS SCHEDULE D, PART XIII, LINE 4B DONATIONS $ 410,138 AMORTIZATION OF DEBT DISCOUNT $ 624,758 ------------ $1,034,896 FIN 48 DISCLOSURE MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. true PEC SCHOLARSHIP FUND 201 S AVENUE F JOHNSON CITY TX 78636 742897600 501(c)(3) 37000 DONATIONS PEC UNITED CHARITIES INC PO BOX 1 JOHNSON CITY TX 78636 742491188 501(c)(3) 164014 DONATIONS 2 0 DESCRIBE THE ORGANIZATION'S PROCEDURES FOR MONITORING THE USE OF FUNDS SCH I, PART I, QUESTION 2 THE ORGANIZATION MAKES GRANTS TO TWO RELATED 501(C)(3) ORGANIZATIONS AND MONITORS USE OF GRANTED FUNDS THROUGHOUT THE YEAR. BOTH ORGANIZATIONS SUPPORT CHARITABLE ACTIVITIES IN THE AREAS SERVED BY PEDERNALES ELECTRIC COOPERATIVE INC. X X true false false JUAN GARZA 231481 0 0 0 1062898 0 23288 0 6141 0 1323808 0 PAUL HILGERS 236345 0 7500 0 20456 0 24015 0 14597 0 302913 0 JEANELL DAVIS 229090 0 7500 0 9050 0 44036 0 14526 0 304202 0 JAMES BLANTON 206181 0 7500 0 18840 0 18356 0 6843 0 257720 0 LUIS A GARCIA 213543 0 27300 0 7646 0 22806 0 14534 0 285829 0 MICHAEL E VOLLMER 194693 0 7500 0 21390 0 54747 0 14483 0 292813 0 EDWARD A DAUTERIVE 171099 0 7500 0 14940 0 15215 0 14375 0 223129 0 DALE A JONES 166769 0 7500 0 15711 0 22504 0 11370 0 223854 0 JOHN M HOUSER 168249 0 7500 0 2213 0 25072 0 14310 0 217344 0 TONI J REYES 156935 0 7500 0 16702 0 30987 0 14214 0 226338 0 LLOYD W MCKEE 163382 0 7500 0 15693 0 22864 0 14309 0 223748 0 ROBERT J DIFONZO SR 153755 0 7500 0 15616 0 26431 0 6164 0 209466 0 HERBERT O GREBE III 153105 0 7500 0 15200 0 18746 0 14167 0 208718 0 MICHAEL J RACIS 154350 0 7500 0 14961 0 15194 0 14173 0 206178 0 ARCENIO LOPEZ JR 152818 0 7500 0 8964 0 14188 0 10269 0 193739 0 THERESA M OWENS 150991 0 7500 0 14887 0 13268 0 9967 0 196613 0 MICHELLE M GALLOWAY 150648 0 7500 0 14879 0 15510 0 14122 0 202659 0 MELINDA L ARMBRUSTER 145484 0 7500 0 15492 0 35549 0 9547 0 213572 0 STEPHEN V MALDONADO 151917 0 7500 0 4637 0 18148 0 14093 0 196295 0 ROBERT PETERSON 181482 0 7500 0 3573 0 24737 0 6373 0 223665 0 PETER JOHN SLOVER 145866 0 7500 0 15204 0 15092 0 14072 0 197734 0 TED J MASON 116765 0 6653 0 4657 0 33941 0 11901 0 173917 0 ZELENNY MARTINEZ 128903 0 11212 0 6770 0 12476 0 13772 0 173133 0 WILLIAM KOCH 84937 0 35212 0 12842 0 8528 0 13288 0 154807 0 PERSONS WHO RECEIVED A SEVERANCE PAYMENT AND AMOUNT OF PAYMENT SCHEDULE J, PART I, QUESTION 4A JUAN GARZA RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $1,050,000 PROCESS TO REVIEW FORM 990 FORM 990, PART VI, QUESTION 11B A COPY OF THE FORM 990 WAS PROVIDED AND REVIEWED BY THE FINANCE DEPARTMENT AND THE BOARD OF DIRECTORS AFTER COMPLETED BY TAX PREPARERS AND BEFORE IT WAS FILED WITH THE IRS. GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC FORM 990, PART VI, QUESTION 19 THE ORGANIZATION DOES MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC VIA ITS WEBSITE. PROCESS FOR MONITORING COMPLIANCE WITH CONFLICT OF INTEREST POLICY FORM 990, PART VI, QUESTION 12C THE CONFLICT OF INTEREST POLICY REQUIRES ANNUAL COMPLETION OF A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM BY ALL DIRECTORS, OFFICERS, KEY EMPLOYEES, OR MANAGERS OF THE COOPERATIVE. THE FORM, WHICH IS PART OF THE POLICY, INCLUDES AN AFFIRMATION THAT THE INDIVIDUAL WILL INFORM THE BOARD OF ANY NEW CONFLICT AFFECTING THEMSELVES OR ANY OTHER PERSON. EACH JANUARY, THESE DOCUMENTS ARE SOLICITED AND GATHERED BY THE CUSTODIAN OF THESE RECORDS, WHICH INCLUDES THE BOARD'S SECRETARY FOR BOARD MEMBERS AND PEC'S HUMAN RESOURCES DEPARTMENT FOR APPLICABLE EMPLOYEES. APPLICABLE PERSONS WHO JOIN THE COOPERATIVE ARE SUBJECT TO THE POLICY AND ARE RQUIRED TO FILE THE FORM AT THE OUTSET OF THEIR EMPLOYMENT OR DIRECTORSHIP. THE FIELD REPORTS ARE FORMALLY ACCEPTED BY THE BOARD PRESIDENT AND MADE A PART OF THE PUBLIC RECORD AT A MEETING OPEN TO COOPERATIVE MEMBERSHIP. DECISION OF GOVERNING BODY SUBJECT TO APPROVAL FORM 990, PART VI, QUESTION 7B UNDER PEC'S BYLAWS AND ARTICLES OF INCORPORATION, THE CORPORATION MAY NOT SELL OR TRANSFER ALL OR SUBSTANTIALLY ALL OF ITS ASSETS WITHOUT THE APPROVAL OF TWO-THIRDS OF ALL MEMBERS OF THE COOPERATIVE EITHER IN PERSON OR BY PROXY. ANY AMENDMENT TO THAT SECTION OF THE ARTICLES OF INCORPORATION REQUIRES A MAJORITY VOTE OF ALL MEMBERS. TEXAS UTILITY CODE 161.151(A) REQUIRES ANY OTHER PROPOSED AMENDMENT TO THE ARTICLES OF INCORPORATION TO BE APPROVED BY A MAJORITY OF THE MEMBERS REPRESENTED IN PERSON OR BY PROXY AT A MEETING OF MEMBERS CALLED FOR THAT PURPOSE. THE LAW DOES NOT SPECIFICALLY REQUIRE BOARD APPROVAL OF AN AMENDMENT TO THE ARTICLES OF INCORPORATION, BUT AS A MATTER OF PRACTICE, ANY MEMBER VOTE WOULD LIKELY BE PURSUANT TO BOARD APPROVAL. ADDITIONALLY, PEC BYLAWS RESERVE TO MEMBERSHIP THE POWER TO REMOVE DIRECTORS FROM THE BOARD BY A VOTE OF 10% OF THE MEMBERSHIP, WITH NO REQUIREMENT FOR BOARD APPROVAL. AND, THE BYLAWS ALLOW MEMBERS TO CALL A MEETING BY A PETITION SIGNED BY AT LEAST 10% OF MEMBERS. COMMITTEE'S AUTHORITY TO ACT ON BEHALF OF GOVERNING BODY FORM 990, PART VI, QUESTION 8B THERE ARE NO COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. REVIEW AND APPROVAL OF COMPENSATION FORM 990, PART VI, QUESTIONS 15A & 15B A COMPREHENSIVE COMPENSATION ASSESSMENT IS RUN ON NEWLY PROMOTED OR NEWLY HIRED EXECUTIVE POSITIONS TO DETERMINE THE MOST APPROPRIATE BEGINNING SALARY FOR THAT POSITION. THE COMPARABLE MARKET USED IS THAT OF A COMPANY IN THE ENERGY AND UTILITIES INDUSTRY IN AUSTIN, TEXAS WITH 500-1000 FTES. INDIVIDUAL FACTORS ARE ALSO USED IN DETERMINING THE APPROPRIATE BEGINNING SALARY. THESE INDIVIDUAL FACTORS INCLUDE EMPLOYEE TRAITS, SUCH AS YEARS OF EXPERIENCE, EDUCATION, AND CERTIFICATIONS, AS WELL AS, JOB TRAITS, SUCH AS WHOM THE POSITION REPORTS TO, NUMBER OF DIRECT REPORTS, AND JOB DUTIES. POSITIONS ARE MOST CLOSELY MATCHED TO A JOB DESCRIPTION IN THE COMPENSATION DATABASE WITH SIMILAR JOB DUTIES, EDUCATION, AND EXPERIENCE REQUIREMENTS. IN SOME CASES, DEPENDING ON THE POSITION, A HYBRID OF THE JOB IS COMPLETED TO MORE ACCURATELY REFLECT THE PEC POSITION JOB DUTIES. THE BEGINNING PROPOSED BASE SALARY IS BETWEEN THE 25TH AND 50TH PERCENTILE OF THE PREDICTED MEDIAN MARKET SALARY TAKING INTO CONSIDERATION TOTAL COMPENSATION. THE COST OF BENEFITS FOR PEC AT THIS LEVEL IS TYPICALLY BETWEEN 21% AND 45%. THE COST OF BENEFITS FOR THE MARKET IS TYPICALLY BETWEEN 23% AND 32%. CLASSES OF MEMBERS OR STCOKHOLDERS FORM 990, PART VI, QUESTION 6 PEDERNALES ELECTRIC COOPERATIVE, INC. (PEC) IS A NOT-FOR-PROFIT ELECTRIC COOPERATIVE CORPORATION OWNED BY THE MEMBERS IT SERVES. MEMBERS OR STOCKHOLDERS WHO CAN ELECT MEMBERS OF THE GOVERNING BODY FORM 990, PART VI, QUESTION 7A BOARD MEMBERS ARE ELECTED BY THE MEMBERSHIP OF THE COOPERATIVE. ADDRESS OF THOSE WHO CANNOT BE REACHED AT ORGANIZATION'S MAILING ADDRESS FORM 990, PART VI, QUESTION 9 JUAN GARZA 7004 ONE OAK RD. AUSTIN, TX 78749-2331 OC HARMON 596 CR 401 BRADY, TX 76825 RB FELPS PO BOX 97 JOHNSON CITY, TX 78636 OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 5 ROUNDING $ 6 EQUITY IN SUBSIDIARY EARNINGS ($664,949) CHANGE IN MEMBERSHIP CERTIFICATES $150,975 -------------- ($513,968) SIGNIFICANT CHANGES TO ORGANIZATIONAL DOCUMENTS FORM 990, PART VI, QUESTION 4 IN JUNE 2010, THE MEMBERS VOTED TO APPROVE THE ADDITION OF A MEMBER BILL OF RIGHTS (MBOR) TO THE ARTICLES OF INCORPORATION. THE MBOR CEMENTS REFORMS OF RECENT YEARS, PROVDING ITS GUARANTEES CAN ONLY BE CHANGED BY A VOTE OF TWO-THIRDS OF MEMBERS VOTING. THE MBOR GUARANTEES FAIR AND OPEN ELECTIONS AND MEMBER ACCESS TO COOP RECORDS AND BOARD MEETINGS. ALSO, MEMBERS APPROVED A CHANGE ALLOWING A DIRECTOR VACANCY TO REMAIN OPEN IN CERTAIN CIRCUMSTANCES UNTIL A NEW DIRECTOR CAN BE ELECTED (RATHER THAN FILLING THE VACANCY BY BOARD APPOINTMENT). IN NOVEMBER 2010, THE BOARD OF DIRECTORS APPROVED AN EXTENSIVE CLEANUP, RECODIFICATION AND REVISION OF THE PEC BYLAWS. THIS ACTION CULMINATED NEARLY TWO YEARS OF STUDY AND CONSIDERATION, INCLUDING NUMEROUS OPPORTUNITIES FOR MEMBER (CUSTOMER) COMMENT AND SUGGESTIONS. THE NEW BYLAWS: IN ADDITION TO IMPROVING THE READABILITY OF THE BYLAWS, THE NEW VERSION MADE SIGNIFICANT SUBSTANTIVE CHANGES, NAMELY: LOWERED FROM 25% TO 10% THE QUOTIENT OF MEMBERS REQUIRED TO VOTE TO REMOVE A DIRECTOR FROM OFFICE FOR CAUSE; ADDED A PROVISION ALLOWING DISQUALIFICATION OF ANY DIRECTOR WHO GOES OUT OF COMPLIANCE WITH QUALIFICATIONS FOR OFFICE; STRENGTHENED AND MODERNIZED THE CONFLICT-OF-INTEREST PROVISIONS; SPECIFICALLY DISALLOWED BOARD APPROVAL OF ANY SALE OF ASSETS OR DISSOLUTION OF COOP ASSETS BY WHICH THE BOARD WOULD BENEFIT MORE THAN NON-DIRECTOR COOPERATIVE MEMBERS; CHANGED PROCESS FOR FILLING VACANT DIRECTOR SEAT(S) TO REQUIRE ELECTION AND MEMBER VOTE FOR RATHER THAN BOARD APPOINTMENT OF REPLACEMENT; CHANGED NOMINATION REQUIREMENT TO INCREASE THE NUMBER OF SIGNATURES NEEDED FOR NOMINATION (FROM 25 TO 100) AND TO REQUIRE THAT ALL SIGNATURES COME FROM WITHING THE NOMINEES HOME DISTRICT; AND IMPOSED DIRECTOR TERM LIMITS OF FOUR CONSECUTIVE THREE YEAR TERMS. PEC SCHOLARSHIP FUND 201 S AVENUE F JOHNSON CITY TX 78636 742897600 SCHOLARSHIPS TX 501(C)(3) PF NA PEC UNITED CHARITIES INC PO BOX 1 JOHNSON CITY TX 78636 742491188 CHARITABLE TX 501(C)(3) 7 NA ENVISION UTILITY SOFTWARE CORP 4401 MASTHEAD NE SUITE 160 ALBUQUERQUE NM 87109 850388107 SOFTWARE DEVELOP NM NA C CORPORATION -664950 387203 1.00000 false true false false false false false false false false false false false false false false false false PEC UNITED CHARITIES INC B 164014 PEC SCHOLARSHIP FUND B 37000