P, 0. Box 698 - Phone (575) 483-2421 Springer, New Mexico 87747 March 28, 2017 NMPRC Records Management Bureau 1120 Paseo de Peralta PERA Building Room 406 PO Box 1269 Santa Fe NM 87504-1269 Dear Sir/Madam: Enclosed is the 2016 Annual Report for Springer Electric Cooperative and our audited Form 7. If you have any questions, please call me at 575-483-2421. Sincerely, Christy Office Manager Enclosures A Touchstone Energy~ Cooperative RURAL ELECTRIC COOPERATIVES Annual Report Of SPRING]~ £]J~CTP~IC COOP]~:R~TIVE, TNC. (Exact legal name of Respondent) TO THE NEW MEXICO PUBLIC REGULATION COMMISSION FOR THE YEAR ENDED DECEMBER 31, 20J_~ LINE NO NOTE IDENT 1 1001 2 2001 3 3001 4 4007 5 4008 6 4009 7 4010 8 4006 9 10 11 234924 12I 180863 13 14 RET-22-1 15 RET-22-2 16 RET-25-1 17 RET-25-2 18 RET-25-3 19 RET-25-4 20 H0065 21 H0070 22 H0010 23 H0015 24 I H0020 25 H0025 26 H0030 27 H0035 28 H0040 29 H0045 30 H0050 31 H0055 32 H0060 33 F0075 TO WHOM NMPS(~ DATE OF ISSUED )ESC. ~ ISSUE CFC CFC CFC CFC CFC CFC CFC CFC LONG TERM DEBT PRINCIPAL AMOUNTS OUTSTANDING PER BALANCE DATE OF MATURITY AMOUNT 30-Aug-85 30-Aug-20 01-Jun-94 01-Jun-29 02-Jul-01 02-Jul-36 13-OCT-10 13-OCT-10 13-OCT-10 13-OCT-10 11/13/10 $ $ $ $ $ $ $ $ COBANK COBANK 13-JUN-28 27-SEP-10 $ $ RUS RUS RUS RUS RUS RUS RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB RUS FFB 11/29/78 11/16/13 $ 320,000.00 11/05/84 11/05/19 $ 121,000.00 13-Oct-99 13-Oct-34 $ 418,000.00 29-Mar-00 29-Mar-35 $ 7,500.00 89 29-Mar-35 $ 266,500.00 37273 17-Jan-37 $ 159,000.00 06/26/15 $ 1,029,000.00 09/24/15 $ 2,711,133.35 01-OCT-04 31-DEC-20 $ 45o,ooo.oo 30-MAR-06 31-DEC-37 $ 449,000.00 24-APR-07 31-DEC-20,’ $ 475,000.00 24-Mar-08 31-Dec-37 $ 21,000.00 28-Aug-08 31-Dec-37 $ 33,ooo.oo 02-DEC-09 $ 809,000.00 01-JUL-10 $ 570,000.00 16-SEP-10 $ 946,000.00 29-JUL-11 $ 1,000,000.00 12-JUL-07 $ 1,050,000.00 13-MAR-22 $ 1,150,000.00 11/22/2016 $ 1,080,000.00 76,000.00 50,000.00 94,000.00 96,000.00 96,000.00 96,000.00 93,575.57 96,000.00 PRINCIPAL $ $ $ $ $ 16,410.47 25,679.89 64,510.48 72,353.24 96,000.00 $ 96,000.00 $ 93,575.57 DEFERRED INTEREST SHEET VARIABLI VARIABLI VARIABLI 3.95% 4.15% 4.30% 4.45% 3.75% $ 559,774.91 $ 670,226.34 $ INTEREST FOR YR RATE % 457,659.38 162,211.72 $ $ $ 291,772.14 $ 5,305.11 $ 192,104.02 $ 111,669.95 $ 1,019,733.22 $ 2,685,492.83 $ 362,541.10 $ 366,582.38 $ 392,343.45 $ 17,139.16 $ 27,371.00 $ 710,356.33 $ 510,775.29 $ 836,579.29 $ 903,757.59 $ 939,932.77 $ 1,050,756.87 $ 1,080,000.00 AMOUNT $ $ $ $ $ $ $ $ 614.85 876.98 2,174.12 3,794.59 3,994.92 4,139.30 4,175.52 1,358.00 VARIABLI $ VARIABLI $ 18,873.86 7,276.81 2.00% 2.00% 5.00% 5.75% 5.75% 5.00% 2.91% 2.67% 4.78% 4.88% 4.81% 3.96% 4.24% 3.42% 4.41% 3.50% 2.10% 2.12% 2.65% 2.74% 39.92 21.12 16,425.85 312.13 11,287.67 5,862.68 31,470.23 76,249.55 18,220.09 18,798.54 19,845.16 718.12 1,226.96 25,781.53 23,643.13 31,015.97 36,584.17 21,658.06 29,895.27 3,552.66 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 37 39 40 TOTAL 41 LESS: ADVANCE PAYMENTS APPLIED 42 TOTAL $ 14,992,710.17 $ 12,588,613.25 $ 14,992,710.17 $ 12,588,613.25 0.00 0 0.00 $ 419,887.76 0.00 $ 419,887.76 Annual Report of: SPRINGER ELECTRIC COOPERATIVE INC Year ended December 31, 2016 ELECTRIC OPERATION AND MAINTENANCE EXPENSES Increase or Line Account Amount for year decrease from No. preceding year (a) (b) (c) 1 POWER PRODUCTION EXPENSES 2 STEAM POWER GENERATION 3 Operation 4 500 Operation supervision and engineering 5 501 Fuel 6 502 Steam expenses N/A 7 503 Steam from other sources 8 504 Steam transferred-Cr 9 505 Electric expenses 10 506 Miscellaneous steam power expenses 11 507 Rents 12 TOTAL OPERATION 13 MAINTENANCE 14 510 Maintenance supervision and engineering 15 511 Maintenance of structures 16 512 Maintenance of boiler plant N/A 17 513 Maintenance of electric plant 18 514 Maintenance of miscellaneous steam plant 19 TOTAL MAINTENANCE 0 20 TOTAL POWER PRODUCTION EXPENSES-STEAM POWER o 21 NUCLEAR POWER GENERATION 22 OPERATION 23 517 Operation supervision and engineering 24 518 Fuel 25 519 Coolants and water 26 520 Steam expenses N/A 27 521 Steam from other sources 28 522 Steam transferred-Cr 29 523 Electric expenses 30 524 Miscellaneous nuclear power expenses 31 525 Rents 32 TOTAL OPERATION 33 MAINTENANCE 34 528 Maintenance supervision and engineering 35 529 Maintenance of structures 530 Maintenance of reactor plant equipment N/A 33~7 531 Maintenance of electric plant 38 532 Maintenance of miscellaneous nuclear plant 39 TOTAL MAINTENANCE o 40 TOTAL POWER PRODUCTION EXPENSES-NUCLEAR o 41 o o 0 o o o o 0 o o o o o o o o o o o o o o o o o 0 o o 0 o o o 0 HYDRUALIC POWER GENERATION 42 OPERATION 43 535 Operation supervision and engineering 44 536 Water for power 45 537 Hydreulicexpenses 46 538 Electric expenses 47 ;539 Miscellaneous hydraulic power generetion expenses 48 540 Rents 49 TOTAL OPERATION 50 MAINTENANCE 51 541 Maintenance supervision and engineering 52 542 Maintenance of structures N/A N/A 0 o o o 0 o o o o Annual Report of: SPRINGER ELECTRIC COOPERATIVE INC Year ended December 31,2016 ELECTRIC OPERATION AND MAINTENANCE EXPENSES Increase or Lin~ Amount for year decrease from Account No. preceding year (a) (b) (c) 1 HYDRAULIC POWER GENERATION 2 543 Maintenance of reservoirs, dams and waterways 3 544 Maintenance of electric plant 4 545 Maintenance of miscellaneous hydraulic plant TOTAL MAINTENANCE 5 6 TOTAL POWER PRODUCTION EXPENSES-HYDRAULIC 7 OTHER POWER GENERATION 8 OPERATION 9 546 Operation supervision and engineering 10 547 Fuel 11 546 Generation expenses 12 549 Miscellaneous other power generation expenses 13 550 Rents 14 TOTAL OPERATION 15 MAINTENANCE 16 551 Maintenance supervision and engineering 17 552 Maintenance of structures 18 553 Maintenance of generating and electric plant 19 554 Maintenance of miscellaneous other power generation plant 20 ; TOTAL MAINTENANCE 21 TOTAL POWER PRODUCTION EXPENSES-OTHER POWE 22 OTHER POWER SUPPLY EXPENSES 23 555 Pumhased power 24 556 System control and load dispatching 25 557 Other expenses 26 TOTAL POWER SUPPLY EXPENSES 27 TOTAL POWER PRODUCTION EXPENSES 28 TRANSMISSION EXPENSES 29 OPERATION 30 =560 Operation supervision and engineering 31 561 Load dispatching 32 562 Station expenses 33 563 Overhead line expenses 34 564 Underground line expenses 35 565 Transmission of electricity by others 36 566 Miscellaneous transmission expenses 37 567 Rents 38 TOTAL OPERATION 39 MAINTENANCE 40 568 Maintenance supervision and engineering 41 569 Maintenance of structures 42 = 570 Maintenance of station equipment 43 571 Maintenance of overhead lines 44 ’ 572 Maintenance of underground lines 45 i 573 Maintenance of miscellaneous transmission plant 44~7 50 51 52 53 54 55 TOTAL MAINTENANCE TOTAL TRANSMISSION EXPENSES DISTRIBUTION EXPENSES OPERATION 580 Operation supervision and engineering 581 Load dispatching 582 Station expenses 583 Overhead line expenses 584 Underground line expenses 585 Street lighting and signal system expenses N/A 0 0 o o o o o o 0 0 0 0 0 0 N/A 8,221 0 15,469 23,630 23,630 18,174,134 6 18,174,140 18,174,140 180 7,627 7,807 8,221 0 15,409 0 23,630 23,630 (884,453) 0 6 (884,447) (860,8171 0 0 0 (16,758) 0 0 0 0 (16,758) 3,042 10,849 0 0 0 (2,1711 0 0 (2,171) (18,922 133,748 0 1,713 462,620 0 0 13,085 0 1,173 63,734 0 0 0 3,042 Annual Report of: SPRINGER ELECTRIC COOPERATIVE INC Year ended December 31, 2016 ELECTRIC OPERATION AND MAINTENANCE EXPENSES Increase or Line Account Amount for year decrease from No. preceding year (a) (b) (c) 1 DISTRIBUTION EXPENSES CONTINUED 2 586 Meter expenses 3 587 Customer installations expenses 4 588 Miscellaneous distribution expenses 5 589 Rents 6 TOTAL OPERATION 7 MAINTENANCE 8 590 Maintenance supervision and engineering 9 591 Maintenance of structures 10 592 Maintenance of station equipment 11 593 Maintenance of overhead lines 12 594 Maintenance of underground lines 13 595 Maintenance of line transformers 14 596 Maintenance of street lighting and signal systems 15 597 Maintenance of meters 16 598 Maintenance of miscellaneous distribution plant 17 TOTAL MAINTENANCE 18 TOTAL DISTRIBUTION EXPENSES 19 CUSTOMER ACCOUNTS EXPENSES 2O OPERATION 21 901 Supervision 22 902 Meter reading expenses 23 903 Customer records and collection expenses 24 904 Uncollectible accounts 25 905 Miscellaneous customer accounts expenses 26 TOTAL CUSTOMER ACCOUNTS EXPENSES 27 SALES EXPENSES 28 OPERATION 29 911 Supervision 30 912 Demonstrating and selling expenses 31 913 Advertising expenses 32 914 Revenues from memhandising, jobbing and contract work 33 915 Cost and expenses of merchandising, jobbing and contract work 34 916 Miscellaneous sales expenses 35 TOTAL SALES EXPENSES 36 ADMINISTRATIVE & GENERAL EXPENSES 37 OPERATION 38 920 Administrative and general salaries 39 921 Office supplies and expenses 40 922 Administrative expenses transferred-Cr 41 923 Outside services employed 42 924 Property insurance 43 925 Injuries and damages 44 926 Employee pensions and benefits 45 927 Franchise requirements 46 928 Regulatory commission expenses 47 929 Duplicate charges-Cr 45 930 Miscellaneous general expenses 49 931 Rents 50 TOTAL OPERATION 51 MAINTENANCE 52 932 Maintenance of general plant 53 TOTAL ADMINISTRATIVE & GENERAL EXPENSES 54 TOTAL ELECTRIC OPERATION AND MAINTENANCE EXPEN~ 52,925 10,233 162,958 66,490 4,141 19,955 824,197 168,578 0 13,095 53,638 16,070 48,344 21,104 26 0 152,277 976,474 0 0 4,564 49 (4,840) 4,318 (8,695) (620) 0 (5,224) 163,354 0 63,708 209,830 4,081 0 277,619 0 (661) (3,905) (473) 0 (5,039) 224 77 0 0 0 0 77 224 302,239 53,823 0 72,223 7,000 500 0 0 692,180 8,603 (3,771) 0 86,588 7,000 500 (605) 0 0 0 24,902 0 123,217 56,999 749,179 20,212,115 (2,871) 120,346 (601,008) 256,395 ELECTRIC OPERATION AND MAINTENANCE EXPENSES SUMMARY OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES Une NO. FUNCTIONAL CLASSIFICATION OPERATION MAINTENANCE TOTAL (a) 1 POWER PRODUCTION EXPENSES 2 ELECTRIC GENERATION 18,174,14o 18,174,140 18,174,140 0 7,807 3,042 18,174,140 10,849 824,197 152,277 976,474 277,619 277,619 224 224 692,180 56,999 749,179 19,976,167 212,318 20,188,48S NUMBER OF ELECTRIC DEPARTMENT EMPLOYEES 15 Number of eleotric Depai’tment Empk)yees, Pays’oil Period Ending 10/31/2016 16 Total Regular Full-Time Employees 17 Total Part-Time and Ten*~orary Employees 18 Total Employees The data on number of employe~ shonld be reported for the pe.yroll period ending nearest to October 31, or any payroll pedod ending 60 days before or after October 31. If the respondeot’s payrolls for the reported perk:)d include any special const rudion forces include such employees as part-time and temporary employees and show the number of such special censtructien employees so included. The number of employees assignable to the electric department from joint functions of combinalon ~litiss may be datarminod by estimate, on the basis of employee equivalents. Show the estimated number of equivalent employees attributed to the electric debarbnent from joint functions. 19 0 19 Page 5 DISTRIBUTION OF SYSTEM LOAD IN SERVICE AREA 1. Information is desired regarding the distribution of the system load within the territory served by the system. This information should be furnished on the basis used by respondent in maintaining load distribution data, such as by primary substations, operation divisions, communities, metropolitan areas, or other areas. 2. A sketch map showing the location and the approximate boundary of each of these areas, together with identification symbols, should be furnished. Designation of Area (Primary substation, operating division, or community) Map. Symbol Annual Energy Provided for the Area Total Estimated Distribution - Percent (Kilowatt-hou rs) Residential Sales Commercial Industrial Public Streets and Highway Lighting Other Sales to Public Authority Irrigation Sales Company Use Unaocou nted For Actual or Estimated Peak Demand of Area During the Year (Kilowatts) Date of Peak Annual Load Factor CIMARRON 8,924,400 64.18 35.82 3.99% 1695.6 7/2016 MAXWELL 2,633,090 90.55 9.45 9.41% 574.0 12/2016 RATON 4,368,600 58.16 41.84 0.00% 1092.6 7/2016 ROY 5,038,950 97.52 2.48 10.94% 1012.0 7/2016 SPRINGER 10,187,694 23.67 25.06 51.27 2.31% 1942.0 12/2016 WAGON MOUND 3,215,23 99.27 0.73 4.60% 685.0 12/2016 ABBOTT 1,422,758 1.54; 98.46 8.69% 435.0 4/2016 ARP 77,865,468 0.00 100.00 0.00% 22133.0 9/2016 HOXIE 58,752 0.00 100.00 0.00% 0.06] 12/2016 HESS 10 3 0.00 0.00 100.00 0.00% 5174.0 6/2016 BUEYEROS 11 0.00 0.00 100.00 0.00% 1994.0 12/2016 SWEC 12 136,676 0.00' 100.00 11.94% 20.02 11/2016 YORK 13 1s001,70?? 0.00 100.00 0.00% 172.0 6/2016 Page 6 CONSTRUCTION OVERHEADS - ELECTRIC 1. Report below the information called for concerning construction overheads for the year. 2. List in column (a) the kinds of overheads according to the titles used by the respondent. Charges for outside professional services for engineering fees and management of supervision fees capitalized should be shown as separate items. 3. On the lower section of this schedule furnish the requested explanatory information concerning construction overheads. 4. A respondent should not report "none" to this schedule if no overhead apportionments are made, but rather should explain on the lower section of this schedule that only such engineering, supervisor, and administrative cost, etc., which are directly chargeable construction are charged to construction, if this is the case. Engineering, supervision, administrative and interest ’costs, etc., which are first assigned to a blanket work order and then prorated to construction jobs shall be considered overheads for the purposes of formulating a response to this schedule. Name of Overhead Line No. (a) Total Overheads Cleared to Construction (b) Cost of Construction to which Overheads were charged (exclusive of overhead charges) Percent overheads to construction cost (d) (c) 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 14. LABOR MATERIAL/STORES OTHERS TRANSPORTATION BENEFITS T~als 41,367.79 32,747.49 118~049.76 59,466.99 60,419.19 312,051.22 84,407.19 271,481.74 (383.71) 36.940.27 5.87% 4.65% 16.76% 8.44% 8.58% 392~445.49 44.30% GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE 1. For each construction overhead for electric plant explain: (a) a. Nature of the engineering, supervisory, or administrative work, etc., the overhead charges are intended to cover. (b) The general procedure for determining the amount capitalized. (c) The method of distribution to construction jobs. (d) Percentages applied to different types of construction. (e) Basis of differentiation in percentages for different types of construction. (f) Amounts capitalized for each overhead for the year for which this report is submitted. 2. In addition to other information concerning engineering and superintendence or other such over heads, explain whether the amounts treated as overheads include all engineering and superintendence costs or only such portions as are not directly chargeable to specific jobs. 3. For interest during construction state the interest rate used. The basic charges to which applied, in addition to the amounts capitalized for the year for which this report is submitted. I. INDIRECT LABOR BASED ON A PERCENTAGE OF LABOR 2. BASED ON A PERCENTAGE OF COST OF MATERIAL 3. INCLUDED IS THE COST OF RIGHT OF WHY, HOLES DUG, ENGINEERING ETC. 4. DIRECT OVERHEADS CHARGED TO INDIVIDUAL WORK ORDERS 5. OVERHEADS SPREAD ON A PERCENTAGE OF LABOR Page 7 ELECTRIC DISTRIBUTION METERS AND LINE TRANSFORMERS Report below the information called for concerning distribution watt-hour meters and line transforms. Watt-hour demand distribution meters should be included below but external demand meters should not be included. Show in a footnote the number of distribution watt-hour meters or line transformers held by the respondent under lease from others, jointly owned with others, or held otherwise that by reason of sole ownership by the respondent. If 500 or more meters or line transformers are held under a lease, give name of lesser, date and period of lease and annual rent. If 500 or more meters or line transformers are held other than by reason of sole ownership or lease, five name of co-owner or other party, explain basis of accounting for expenses between the parties, and state amounts and accounts affected in respondent’s books of account. Specify in each case whether lesser, co-owner or other party is an associated company. Line No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Item (a) Number at beginning of year Additions during year: Purchases Associated with utility plant acquired Total Additions Reductions during year: Retirements Associated with utility plant sold Total reductions Number at end of year In stock Locked meters on customers’ premises Inactive transformers on system In customers’ use In company’s use Total end of year (as above) Number of Watt-hour Meters (b) 4858 1092 0 1092 1874 0 1874 4076 322 35 3724 30 4076 LINE TRANSFORMERS Number Total Capacity (kva) (c) 3163 49 0 49 37 0 37 3175 225 0 15 2935 0 3175 (d) 49.526.9 1,183.5 1,183.5 181 0 181 50~529.4 8,421 0 150 41,958.4 0 50~529.4 FORM 1 New Mexico Jurisdictional Information Year Ending December 31, 2016 Electric Company Name: Springer Electric Cooperative, Inc. Address: Phone Number: 408 Maxwell Ave Springer, NM 87747 (575) 483-2421 Person completing form: Christy Romero, Office Manager CUSTOMER CLASS RESIDENTIAL NUMBER OF CUSTOMERS TOTAL OTHER 2,416 581 2,997 IONH SALES (Thousands) 14,095,458 254,455,054 268,550,512 GROSS REVENUES $2,312,412 $18,996,111 $21,308,523 AVG ANNUAL KWH per CUSTOMER (1) 5,834,213 437,960,506 89,606,444 AVG ANNUAL BILL per CUSTOMER (2) $957.12 $32,695.54 $7,109.95 $79.76 $2,724.63 $592.50 $0.00016 $0.00007 $0.00008 AVG MONTHLY BILL per CUSTOMER (3) AVG GROSS REVENUE per KWH SOLD (4) *’177,865,468 KWH AND $12,261,589 IN REVENUE BELONG TO ONE CONSUMER Directions for the completion of (1), (2), (3), (4): (1) Divide KWH sales by number of customers. (2) Divide gross revenues by number of customers (3) Div!de (2) by 12 months (4) Divide gross revenues by KWH sales NMPSC RULE 510 EFFECTIVE 01/01/89 Page 8 VERIFICATION The foregoing report must be verified by the oath ofthe office having control of the accounting of the respondent. The oath required may be taken before any person authorized to administer an oath by the laws of the State in which the same is taken. OATH (To be made by the officer having control of the accounting of the respondent,) State of ~ m~zIcO SS: County of co~Az makes oath and says that he is G~g~u. ~G]~ DAVID SPF~DLIN (insert here the name of the affiant.) of (Insert here the official title of the affiant.) SPRINGER ELECTRIC COOPERATIVE, INC. (Insert here the exact legal title of name of the respondent.) that it is his duty to have supervision over the books of account of the respondent and that to the best of his knowledge and belief such books have, during the period covered by the foregoing report, been kept in good faith in accordance with the accounting and other orders of the New Mexico Public Regulation Commission, effective during said period, that has examined the said report, and to the best of his knowledge and belief the information contained in the said report is, insofar as it relates to matters of account, in accordance with the said books of account; that he believes that all other statements of fact contained in the said report are true, and that the said report is correct statement of the business and affairs of the above-named respondent in respect to each and every matter set forth therein during the period from and including JANUARY 31 ,201.__~_6, to and including DECEHBER 31 ,20 1.~_6, ..... -~ Subscribed and sworn to before me, a County above named, this 28Ta My commission expires 1/23/2018 aOT,~mY day of ( Signature of affiant) , is and for the State and mmCH ,20 17 OFFICIAL SEAL CHRISTY ROMERO NOTARY I~BLIC - ~TATE OF NEW MEXICO authorized to administer oaths) .coording ~o the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB ~ntrol nmnber. The valid OMB control numbor for this information collection is 0572-0032. The timv required to complete this information collection is vstimated to averag~ 15 hours per ,’spouse, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATION NM0 0 19 RURAL UTILITIES SERVICE PERIOD ENDED December, 2016 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION (Prepared with Audited Data) BORROWER NAME Springer Electric Cooperative, Inc. STRUCTIONS - See help m the online application. is information is analyzed and used to determine the submitter’s financial situation and feasibility for loans and guarantees..You are required by contract and applicable ;ulations to provide the information. The information provided is subject to the Freedom of Information Act (5 U.S.C. 552) CERTIFICATION We recognize that statements contained herein concern a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious or fraudulent statement may render the maker subject to prosecution under Title 18, United States Code Section 1001. We hereby certify that the entries in this report are in accordance with the accounts and other records of the system and reflect the status of the system to the best of our knowledge and belief. ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, RUS, WAS IN FORCE DURING THE REPORTING PERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES DURING THE PERIOD COVERED BY THIS REPORT PURSUANT TO PART 1718 OF 7 CFR CHAPTER XVII (check one of the following) ~AII o fthe obligations under the RUS loan documents [] There has been a default in the fulfillment of the obligations have been fulfilled in all material respects. under the RUS loan documents: Said default(s) is/are specifically described in Part D of this report. DATE PART A. STATEMENT OF OPERATIONS YEAR-TO-DATE ITEM Operating Revenue and Patronage Capital Power Production Expense Cost of Purchased Power Transmission Expense Regional Market Expense Distribution Expense - Operation Distribution Expense - Maintenance Customer Accounts Expense Customer Service and Informational Expense ¯ Sales Expense ¯ Administrative and General Expense Total Operation & Maintenance Expense (2 thru 11) Depreciation and Amortization Expense Tax Expense - Property & Gross Receipts Tax Expense - Other Interest on Long-Term Debt Interest Charged to Construction - Credit Interest Expense - Other Other Deductions Total Cost of Electric Service (12 thru 19) Patronage Capital & Operating Margins (1 minus 20) Non Operating Margins - Interest Allowance for Funds Used During Construction Income (Loss) from Equity Investments Non Operating Margins - Other Generation and Transmission Capital Credits, Other Capital Credits and Patronage Dividends Extraordinary Items Patronage Capital or Margins (21 thru 28) RUS Financial and Operating Report Electric Distribution LAST YEAR THIS YEAR BUDGET THIS MONTH 23,429,295 2,189,519 23,630 19,058,587 29,778 21,665,903 /23,630 ~8,174,140 Jl0,849 20,239,893 30,673 1,623,804 45 655,620 157,501 282,658 75,913 147 628,834 20~889,038 441,617 824,197 /152,277 277,619 73,387 224 749,179 20,285,502 532,199 675,934 162,314 295,354 79,365 142 707,443 22,191,I18 543,076 22,440,550 24,664- 356,855 432,960 423 9,726 21,697,659 742,891 i15,143 607 10,971 21,286~903 379,000 142,705 13,120 6,838 952,846 34,684 21,087 17,464 569,690 41,242 1,865,522 1,171,188 112,971 16,092 21,784 4,406 0 58,284 1,861,016 i18,721 24,664 403,099 23,137,293 292,002 125,134 147,688 21 5,263 2,157,373 32,146 29,650 1,000,000 2,169 20,245 0 545,443 0 1,419,305 627,484 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0019 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED December, 2016 UqSTRUCTIONS - See help in the online application. PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT ITEM YEAR-TO-DATE LAST YEAR THIS YEAR YEAR-TO-DATE ITEM (.) 1. New Services Connected 28 2. Services Retired 3. Total Services in Place 3,558 4. Idle Services (Exclude Seasonals) 220 15. ASSETS AND OTHER DEBITS Total Utility Plant in Service Construction Work in Progress Total Utilit~ Plant (1 + 2) Accum. Provision for Depreciation and Amort. Net Utility Plant (3 - 4) Non-Utility Property (Net) Investments in Subsidiary Companies. Invest. in Assoc. Or~. - Patxona~e Capital Invest. in Assoc. Or~. - Other - General Funds Invest. in Assoc. Org. - Other - Nongeneral Funds Investments in Economic Development Projects Other Investments Special Funds Total Other Property & Investments (6 thru 13) Cash - General Funds 16. Cash - Construction Funds - Trustee 17. 18. 19. 20. 21. 22. Special Deposits Temporary Investments Notes Receivable (Net) Accounts Receivable - Sales of Energy (Net) Accounts Receivable - Other (Net) Renewable Ener~Pi Credits 23. Materials and Supplies - Eleeta-ic & Other " 24. 25. Prepayments Other Current and Accrued Assets Total Current and Accrued Assets 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 26. 27. 28. 29. (;S thru 25) Regulatory Assets Other Deferred Debits Total Assets and Other Debits (5+14+26 thin 28) RUS Financial and Operating Report Electric Distribution LAST YEAR THIS YEAR 18 5. Miles Transmission 6. Miles Distribution0 Overhead 218.72 218.72 1,5 81.71 1,580.23 7. Miles Distribution Underground 17.54 17.60 3,576 220 8. Total Miles Energized 1,817.97 (5+6+7) PART C. BALANCE SHEET LIABILITIES AND OTHER CREDITS 20,582,075 30. Memberships 348,571 31. Patrnna~e Capital 20,930,646 32. Operatin~ Margins - Prior Years 6,388,617 33. Operating Margins - Current Year 14,542,029 34. Non-Operating Margins 0 35. Other Margins and Equities 0 36. Total Margins & Equities (30 thru 35) 10,383,825 37. Long-Term Debt - RUS (Net) 0 38. Long-Term Debt - FFB - RUS Guaranteed 12,665 39. Long-Term Debt - Other - RUS Guaranteed 0 40. Lon~-Tenn Debt Other (Net) 0 41. Lon~-Term Debt - RUS - Econ. Devel. (Net) 1,518,283 42. Pa~nnents-~ Unapplied Total Long-Term Debt 11,914,773 43. (37 thru 41 - 42) 6,037,953 44. Oblisatians Under Capital Leases - Noneurrent 0 45. Accumulated Operating Provisions and Asset Retirement Obli~atians 125 ! 46. Total Other Noncurrent Liabilities (44 + 45) 0: 47. Notes Payable 0 i 48. Accounts Payable 2,119,9411 49. Consumers Deposits 30,116: 0 50. Current Maturities Long-Term Debt 108,728 51. Current Maturities Long-Term Debt - Economic Development 325,973 52. Current Maturities Capital Leases 4,830 53. Other Current and Accrued Liabilities Total Current & Accrued Liabilities 8,627,666 54. (47 thru 53) o 55. Regulatory Liabilities 152,465 56. Other Deferred Credits Total Liabilities and O~her Credits 35,236,933 57. (36 + 43 + 46 + $4 thru 56) 1,816.55 9,730 19,110,275 0 1,028,483 343,289 (788,443) 19,703,334 570,790 10,718,361 0 860,401 0 0 12,149,552 o o o o 1,912,476 91,912 439,ooo o o 214,855 2,658,243 709,254 16,55o 35,236,933 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. BORROWER DESIGNATION NM0019 PERIOD ENDED December, 2016 PART D. NOTES TO FINANCIAL STATEMENTS RUS Financial and Operating Report Electric Distribution Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application [ BORROWER DESIGNATION I ] NM0019 I [PERIOD ENDED December, 2016 PART D. CERTIFICATION LOAN DEFAULT NOTES RUS Financial and Operating Report Electric Distribution Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED NM0019 December, 2016 RUCTIONS - See help in the online application. PART E. CHANGES IN UTILITY PLANT BALANCE BEGINNING OF YEAR ADDITIONS RETIREMENTS PLANT ITEM )istribution Plant ;eneral Plant leadquarters Plant atangibles ransmission Plant [egional Transmission and Market )peration Plant dl Other Utility Plant Total Utility Plant in Service (1 thru 7) 3onstruction Work in Progress Total Utility Plant (8 + 9) 13,591,345 1,450,134 499,879 0 ~lectric ~daer 709~972 14,165,163 I 302,252 29,690 1,722,6961 1,514,370 13,546 5,819 2,672,239 0 0 1,599,588 I00,000 19,976,538[ 1,699,588 PART F. MATERIALS AND SUPPLIES II0,947 3,602 BALANCE [ END OF YEAR I 1,283,790 19,727,967 248,571 BALANCE BEGINNING OF YEAR ITEM ADJUSTMENTS AND TRANSFERS PURCHASED SALVAGED USED (NET) I 147,345 143,336 9,655 6,901~ PART G. SERVICE INTERRUPTIONS 499’87~1 1,522,0971 2,672,239I ¯ 2°, 582,°74l 348,571 745,481’ l 20,930,6451 745,481 BALANCE END OF YEAR SOLD 12,778 102,372 6,356 AVERAGE IvlINUTES PER CONSUMER BY CAUSE ITEM Present Year Five-Year Average ALL OTHER Number of Full Time Employees Employee - Hours Worked - Regular Time Employee - Hours Worked - Overtime ITEM ’apital Credits - Distributions ’,apitai Credits - Received maount Due Over 60 Days 67.000 46.200 222.000 255. 000 105.200 520. 800 15.600 PART H. EMPLOYEE-HOUR AND PAYROLL STATISTICS 562.000 687.800 864,519 153,354 i08,579 34,628 Payroll - Capitalized Payroll - Other 974 PART L PATRONAGE CAPITAL THIS YEAR DESCRIPTION General Retirements Special Retirements Total Retirements (a + b) Cash Received From Retirement of Patronage Capital by Suppliers of Electric Power Cash Received From Retirement of Patronage Capital by Lenders for Credit Extended to the Electric System Total Cash Received (a + b) PART J. DUE FROM CONSUMERS FOR ELECTRIC SERVICE 1,2 71 6’ Amount Written Off During Year ENERGY EFFICIENCY AND CONSERVATION LOAN PROGRAM I Anticipated Loan Default % mticipated Loan Delinquency % tctual Loan Delinquency % "oral Loan DelinquenCy Dollars YTD RUS Financial and Operating Report Electric Distribution TOTAL CUMULATIVE 368,161 6,438,403 368,161 6,438,403 6,149 6,149 2,706 Actual Loan Default % Total Loan Default Dollars YTD Revision Date 2014 18. 000 UNITED STATES DEPARTIvIENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0019 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application No i ITEM SUPPLIER CODE PERIOD ENDED December, 2016 PART K. kWh PURCHASED AND TOTAL COST RENEWABLE RENEWABLE kWh TOTAL ENERGY FUEL PURCHASED COST PROGRAM TYPE NAME AVERAGE COST (Cents/kWh) INCLUDED IN TOTAL COST FUEL COST ADJUSTMENT INCLUDED IN TOTAL COST WHEELING AND OTHER CHARGES 0) {d) 1 Tri-State G & T Assn, Inc (CO0047) 30151 Renewable Energy & Conservation 2 Southwestern Electric Coop Inc (NM0026) Total 17715 RUS Financial and Operating Report Electric Distribution Wind 268,921,322 18,082,081 6.72 136,676 1L898 8.71 269,057,998 18,093,979 6.72 Revision Date 2014 UNITED STATES DEPARTNENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0019 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application PERIOD ENDED December, 2016 PART K. kWh PURCHASED AND TOTAL COST Comments RUS Financial and Operating Report Electric Distribution ’ Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. BORROWER DESIGNATION NM0019 PERIOD ENDED December, 2016 No NAME OF LESSOR PART L. LONG-TERM LEASES TYPE OF PROPERTY RENTAL THIS YEAR TOTAL RUS Financial and Operating Report Electric Distribution Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION FINANCIAL AND’OPERATING REPORT ELECTRIC DISTRIBUTION ~0 019 PERIOD ENDED December, 2016 ’,ISTRUCTIONS - See help in the online application. PART M. ANNUAL MEETING ~ BOARD DATA Date of Last Annual Meeting 2. Total Number of Members 6/8/2016 , 3. Number of Members Present at Meeting 1,945 Number of Members Voting by Proxy or Mail 6. Total Number of Board Members 0 RUS Financial and Operating Report Electric Distribution 251 7.Total Amount of Fees and Expenses for Board Members 124,684 4. Was Quorum Present? Y 8. Does Manager Have Written Contract? Y Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. BORROWER DESIGNATION NM0019 PERIOD ENDED December, 2016 ITEM No 3 4 5 6 7 PART N. LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS BALANCE END OF INTEREST PRINCIPAL YEAR (Billed This Year) (Billed This Year) Rural Utilities Service (Excludes RUS Economic Development Loans) National Rural Utilities Cooperative Finance Corporation CoBank~ ACB Federal Financing Bank RUS - Economic Development Loans Payments Unapplied Principal Payments Received from Ultimate Recipients of IRP Loans Principal Payments Received from Ultimate Recipients of REDL Loans Principal Payments Received from Ultimate Recipients of EE Loans TOTAL RUS Financial and Operating Report Electric Distribution TOTAL (Billed This Year) 570,790 33,949 29,784 63,733 359,530 21,128 104,485 125,613 500r871 10~718r361 26fl51 338r659 119~326 185r555 145r477 524~214 12,149,552 419,887 439,150 859.037 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in theonline application. CLASSIFICATION Residential Sales (excluding seasonal) 2. Residential Sales - Seasonal Irrigation Sales 4. Comm. and Ind. 1000 KVA or Less 5. Comm. and Ind. Over 1000 KVA 6. Public Street & Highway Lighting 7. Other Sales to Public Authorities 8. Sales for Resale - RUS Borrowers 9. Sales for Resale - Other BORROWER DESIGNATION NM0019 PERIOD ENDED December, 2016 PART O. POWER REQUIREMENTS DATABASE - ANNUAL SUMMARY AVERAGE NO. CONSUMER SALES& CONSUMERS SERVED REVENUE DATA a. No. Consumers Served b. kWh Sold c. Revenue a. No. Consumers Served b. kWh Sold c. a. Revenue b. kWh Sold e. Revenue a. No. Consumers Served b. c. kWh Sold Revenue a. b. c. a. b. c. a. No. Consumers Served kWh Sold Revenue No. Consumers Served kwh Sold Revenue No. Consumers Served b. c. kWh Sold Revenue a. b. No. Consumers Served kwh Sold c. a. Revenue No. Consumers Served TOTAL YEAR TO DATE 2,388 No. Consumers Served b. kWh Sold c. Revenue 10. Total No. of Consumers (lines la thru 9a) 11. Total kWh Sold (lines lb thru 9b) Total Revenue Received From Sales of 12. Electric Energy (lines lc thru 9c) 13. Transmission Revenue 14. Other Electric Revenue 15. kWh - Own Use 16. Total kWh Purchased 17. Total kWh Generated 18. Cost of Purchases and Generation t 9. Interchange - kWh - Net 20. Peak - Sum All kW Input (Metered) Non-coincident x Coincident RUS Financial and Operating Report Electric Distribution 16,732,966 2,032,428 473,584 268,550,512 21,308,523 357,380 269,057,998 2,580,603 18,208,619 34,181 Rev~ion Da~ 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED NM0019 December, 2016 INSTRUCTIONS - See help in the online application. CLASSIFICATION 2. 3. 4. 5. 6. 7. 8. 9. 10. PART P. ENERGY EFFICIENCY PROGRAMS ADDED THIS YEAR No. of Amount Estimated Consumers MMBTU Savings Invested Residential Sales (excluding seasonal) 15 Residential Sales - Seasonal Irrigation Sales Comm. and Ind. 1000 KVA or Less Comm. and Ind. Over 1000 KVA Public Street and Highway Lighting Other Sales to Public Authorities Sales for Resale - RUS Borrowers Sales for Resale - Other Total 15 RUS Financial and Operating Report Electric Distribution TOTAL TO DATE No. of Consumers Amount Invested Estimated MMBTU Savings 6,407 370 55,485 6,407 370 55,485 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0019 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INVESTMENTS, LOAN GUARANTEES AND LOANS PERIOD ENDED December, 2016 INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an ’X’ in column (e). Both ’Included’ and ’Excluded’ Investments must be reported. See help in the online application¯ No PART Q. SECTION L INVESTMENTS (See Instructions for definitions of Income or Loss) DESCRIPTION INCLUDED EXCLUDED INCOME OR LOSS ($) ($) .2 Investments in Associated Organizations PATRONAGE CAPITAL - OTHER PATRONAGE CAPITAL - ASSOC ORG Totals Special Funds ANHEUSER BUSCH CO JP MORGAN CHASE GE CAPITAL CORPORATION ONEOK INC LEHMAN BROTHERS WELLS FARGO & CO GE CAPITAL CORP INTERNOTES 1NTEL CORP LOWES CO WALMART JP MORGAN CHASE UNIVERSITY OF OK CHICAGO BRD OF EDUCATION POTENTIAL EQUITY DECLINE MERRILL LYNCH CFC MEMBER CAPITAL SECURITIES Totals Cash - General INTL BANK-GENERAL FUND INTL BANK-PAYROLL INTL BANK-CAPITAL CREDIT ACCT INTL BANK-TRANSACTIONAL SAVINGS CASH DRAWER PETTY CASH FUND Totals Special Deposits SPECIAL DEPOSIT Totals Accounts and Notes Receivable - NET OTHER ACCOUNTS RECEIVABLE Totals 11 TOTAL INVESTMENTS (1 thru 10) RUS Financial and Operating Report Electric Distribution - Investments RURAL DEVELOPMENT ($) (e) 210,799 210,799 10,185,691 10r185~691 47,942 50,000 48,266 75,000 25,000 50,085’ 50,000 50,671 23,517 49,130 50,000 51,043 51 r032 (25,000) 621,597 300,000 t,518r283 x 4,973 5,000 50,000 5,977,730 100 150 250 6r037,703 125 125 ¯ 30,1161 30,1161 1,759,573 16,223,394 Revision Date 2014 UNITED STATES DEPARTMENT OF AGR!CULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0019 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INVESTMENTS, LOAN GUARANTEES AND LOANS PERIOD ENDED December, 2016 INSTRUCTIONS - Reporting of investments is required by 7 CFR !717, Subpart N Investment categories reported on this Part correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an ’X’ in column (e). Both ’Included’ and ’Excluded’ Investments must be reported. See help in the online application. PART Q. SECTION II. LOAN GUARANTEES No ORGANIZATION MATURITY DATE ORIGINAL AMOUNT LOAN BALANCE RURAL DEVELOPMENT ($) ($) (d) TOTAL TOTAL (Included Loan Guarantees Only) RUS Financial and Operating Report Electric Distribution - Loan Guarantees Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0019 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INVESTMENTS, LOAN GUARANTEES AND LOANS PERIOD ENDED December, 2016 INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, S ubpart N. Investment categories reported on this Part correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an ’X’ in column (e). Both ’Included’ and ’Excluded’ Investments must be reported. See help in the online application. SECTION III. RATIO RATIO OF INVESTMENTS AND LOAN GUARANTEES TO UTILITY PLANT I 8.41% [Total of Included Investments (Section I, 1 lb) and Loan Guarantees - Loan Balance (Section II, 5d) to Total Utility Plant (Line 3, Part C) of this report] SECTION IV. LOANS No ORGANIZATION MATURITY DATE ORIGINAL AMOUNT LOAN BALANCE RURAL DEVELOPMENT ($) ($) d) ~b) I 1 Employees~ Offieers~ Directors 2 Eneqgy Resources Conservation Loans TOTAL I RUS Financial and Operating Report Electric Distribution - Loans Revision Date 2014