216 Main Street ¯ Post Office Box 369 ¯ Clayton, New Mexico 88415 Phone: 575-374-2451 ¯ Toll Free 866-374-2451 ¯ Fax: 575-374-2030 ¯ website: ~,swec-coop,org April 24, 2017 Records New Mexico Public Regulation Commission P.O. Box 1269 Santa Fe, NM 87504-1269 To Whom It May Concern: Enclosed is our Annual Report for the year ended December 31, 2016, along with Form 1, New Mexico Jurisdictional Information. I am also sending a copy of our Form 7 for the calendar year ending December 31, 2016. I am also enclosing the Energy Efficiency filing for 2016. I have also enclosed the RENEWABLE PORTFOLIO STANDARD report as of January 1, 2017 If you need further information, please contact this office. Gary Rinker General Manager RURAL ELECTRIC COOPERATIVES Annual Report Of Southwestern Electric Cooperative, Inc. TO THE NEW MEXICO PUBLIC REGULATION COMMISSION FOR THE YEAR ENDED DECEMBER 31, 2016 Long Term Debt (Accounts 221-228) Line Note ldent. To Whom PRC Date of Issued Date of Principal Amount Amount Outstanding Per Balance Sheet Interest for Year No. Issued Decision Maturity Principal Deferred Rate Amount No. Interest 1 1001 CFC 09/84 02/21 $58,049.27 $17,138.46 $17,138.46 4.05% $835.89 2 2001 CFC 02/86 11/24 $43,774.17 $19,260.11 $19,260.11 4.05% $856.59 3 3001 CFC 11/89 10/28 $56,640.38 $33,894.17 $33,894.17 4.05% $1,415.88 4 4001 CFC 10/93 06/35 $70,256.03 $49,554.80 $49,554.80 4.05% $2,040.43 5 5001 CFC 6/00 12/32 $152,698.61 $118,798.28 $118,798.28 4.05% $4,830.88 6 6006 CFC 12/10 12/32 $149,001.88 $0.00 $0.00 3.70% $2,075.56 7 6007 CFC 12/10 12/32 $156,712.34 $118,110.90 $118,110.90 3.95% $6,194.36 8 6008 CFC 12/ 10 12/32 $164,690.90 $164,690.90 $164,690.90 4.15% $6,853.40 9 6009 CFC 12/ 10 12/32 $140,239.64 $140,239.64 $140,239.64 4.35% $6,117.14 10 6010 CFC 12/ 10 12/32 $110,974.42 $110,974.42 $110,974.42 4.50% $5,007.52 11 6011 CFC 12/ 10 12/32 $92,897.69 $92,897.69 $92,897.69 4.60% $4,285.00 12 6012 CFC 12/ 10 12/32 $75,405.44 $75,405.44 $75,405.44 4.70% $3,553.78 13 6013 CFC 12/ 10 12/32 $79,263.30 $79,263.30 $79,263.30 4.80% $3,815.06 14 6014 CFC 12/ 10 12/32 $83,307.02 $83,307.02 $83,307.02 4.90% $4,093.24 15 6015 CFC 12/ 10 12/32 $56,768.78 $56,768.78 $56,768.78 5.00% $2,846.22 16 6016 CFC 12/ 10 12/32 $47,444.28 $47,444.28 $47,444.28 5.10% $2,426.30 17 6017 CFC 12/10 12/32 $49,871.62 $49,871.62 $49,871.62 5.10% $2,550.42 18 6018 CFC 12/10 12/32 $35,315.72 $35,315.72 $35,315.72 5.10% $1,806.04 19 2142-H0010 FFB 03/04 03/34 $5,739,000.00 $1,362,858.99 $1,362,858.99 5.12% $71,387.40 20 2142-H0015 FFB 03/04 03/34 $5,739,000.00 $1,456,899.65 $1,456,899.65 4.89% $72,846.82 21 2142-H0020 FFB 03/04 03/ 34 $5,739,000.00 $1,990,588.70 $1,990,588.70 5.30% $107,772.95 22 2465-H0025 FFB 09/08 09/38 $10,675,000.00 $3,211,362.93 $3,211,362.93 3.40% $111,763.15 23 2465-H0030 FFB 09/08 09/38 $10,675,000.00 $3,416,400.10 $3,416,400.10 4.15% $144,796.08 24 2465-H0035 FFB 09/08 09/38 $10,675,000.00 $2,724,082.00 $2,724,082.00 3.62% $100,717.77 25 H0040 FFB 01/14 01/44 $89,727.96 $83,438.83 $83,438.83 2.78% $2,374.06 26 H0045 FFB 01/14 01/44 $1,054,158.79 $988,211.87 $988,211.87 2.32% $23,438.17 27 H0050 FFB 01/ 14 01/44 $1,000,000.00 $943,770.61 $943,770.61 2.93% $28,257.21 28 H0055 FFB 10/14 10/44 $878,000.00 $840,532.95 $840,532.95 2.99% $25,651.93 29 H0060 FFB 04/15 04/45 $1,000,000.00 $962,759.67 $962,759.67 2.37% $23,362.88 30 H0065 FFB 10/ 15 10/45 $1,500,000.00 $1,461,493.41 $1,461,493.41 2.70% 540,318.71 Total Less Advance Payments Unapproved (Account 227) Total Page 1 ELECTRIC OPERATION AND MAINTENANCE EXPENSES Enter in the space provided the operation and maintenance expenses for the year. 2. If the Increases and decreases are not derived from previously reported figures explain in footnotes. Increase or Decrease Account Amount for Current Line From Preceding Year Year No. (a) (b) (c) POWER PRODUCTION EXPENSES 2. STEAM POWER GENERATION 3. OPERATION 4. 500 Operation Supervision and Engineering 5. 501 Fuel 6. 502 Steam Expenses 7. 503 Steam From Other Sources 504 Steam Transferred - Credit 8. 9. 505 Electric Expenses 10. 506 Miscellaneous Steam Power Expenses 11. 507 Rents Total Operation 12. 13. MAINTENANCE 14. 510 Maintenance Supervision and Engineering 15. 511 Maintenance of Structures 16. 512 Maintenance of Boiler Plant 17. 513 Maintenance of Electric Plant 18. 514 Maintenance of Miscellaneous Steam Plant 19. Total Maintenance 20. Total Power Production Expenses-Steam Power 21. NUCLEAR POWER GENERATION 22. OPERATION 23. 517 Operation Supervision and Engineering 24. 518 Fuel 25. 519 Coolants and Water 26. 520 Steam Expenses 27. 521 Steam From Other Sources 28. 522 Steam Transferred - Credit 29. 523 Electric Expenses 524 Miscellaneous Nuclear Power Expenses 30. 525 Rents 31. Total Operation 32. 33. MAINTENANCE 34. 528 Maintenance Supervision and Engineering 35. 529 Maintenance of Structures 36. 530 Maintenance of Reactor Plant Equipment 37. 531 Maintenance of Electric Plant 38. 532 Maintenance of Miscellaneous Nuclear Power 39. Total Maintenance 40. Total Power Production Expenses-Nuclear Power 41. HYDRAULIC POWER GENERATION 42. OPERATION 43. 535 Operation Supervision and Engineering 44. 536 Water for power 45. 537 Hydraulic Expenses 46. 538 Electric Expenses 47. 539 Miscellaneous Hydraulic Power Generation Expenses 48. 540 Rents 49. Total Operation 50. MAINTENANCE 51, 541 Maintenance Supervision and Engineering 52. 542 Maintenance of Structures Page 2 Line No. ELECTRIC OPERATION AND MAINTENANCE EXPENSES (continued) Amount for Current Account Year (a) Increase or Decrease From Preceding Year (c) (b) HYDRAULIC POWER GENERATION 543 Maintenance of Reservoirs, Dams and Waterways 4. 5. 6. 7. 8. 9. 10. $ 544 Maintenance of Electric Plant 545 Maintenance of Miscellaneous Hydraulic Plant Total Maintenance Total Power Production Expenses- Hydraulic Power OTHER POWER GENERATION OPERATION 546 Operation Supervision and Engineering 547 Fuel 548 Generation Expenses 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 549 Miscellaneous Other Power Generation Expenses 550 Rents Total Operation MAINTENANCE 551 Maintenance Supervision and Engineering 552 Maintenance of Structures 553 Maintenance of Generating and Electric Plant 554 Maintenance Miscellaneous Other Power Generation Plant Total Maintenance Total Power Production Expenses-Other Power OTHER POWER SUPPLY EXPENSES 555 Purchased Power 556 System Control and Load Dispatching 557 Other Expenses Total Maintenance Total Power Production Expenses TRANSMISSION EXPENSES OPERATION 560 Operation Supervision and Engineering 561 Load Dispatching 562 Station Expenses 563 Overhead Line Expenses 564 Underground Line Expenses 565 Transmission of Electricity’ by’ Others 566 Miscellaneous Transmission Expenses 567 Rents Total Operation MAINTENANCE 568 Maintenance Supervision and Engineering 569 Maintenance of Structures 570 Maintenance of Station Equipment 571 Maintenance of Overhead Lines 572 Maintenance of Underground Lines 573 Maintenance of Miscellaneous Transmission Plant 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 31,350,652 (271,144) 31,350,652 (271,144) 78 16,147 ,039) 16,22~= (1,044) 4,90(] 4,900 4,90(~ 21,125 4,900 3,856 50,294 53,90(~ 60,983 271,604 1,186 36,189 (8,508) (97,831) 5 (1) (5) Line No. 2. 3. 4. 5. 6. 7. 8. 9. 12. 15. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. ELECTRIC OPERATION AND MAINTENANCE EXPENSES (continued) Amount for Current Account Year (a) (b) DISTRIBUTION EXPENSES (continued) 586 Meter Expenses 587 Customer Installations Expenses 588 Miscellaneous Distribution Expenses 589 Rents Total Operation MAINTENANCE 590 Maintenance Supervision and Engineering 591 Maintenance of Structures 592 Maintenance of Station Equipment 593 Maintenance of Overhead Lines 594 Maintenance of Underground Lines 595 Maintenance of Line Transformers 596 Maintenance of Street Lighting and Signal Systems 597 Maintenance of Meters 598 Maintenance of Miscellaneous Distribution Plant Total Maintenance Total Distribution Expenses CUSTOMER ACCOUNTS EXPENSES OPERATION 901 Supervision 902 Meter Reading Expenses 903 Customer Records and Collection Expenses 904 Uncollectible Accounts 905 Miscellaneous Customer Accounts Expenses Total Customer Accounts Expenses SALES EXPENSES OPERATION 911 Supervision 912 Demonstrating and Selling Expenses 913 Advertising Expenses 914 Revenues From Merchandising, Jobbing and Contract Work 915 Cost and Expenses of Merchandising, Jobbing and Contract Work 916 Miscellaneous Sales Expenses Total Sales Expenses ADMINISTRATIVE AND GENERAL EXPENSES OPERATION 920 Administrative and General Salaries 921 Office Supplies and Expenses 922 Administrative Expenses Transferred-Credit 923 Outside Services Employed 924 Property Insurance 925 Injuries and Damages 926 Employee Pensions and Benefits 927 Franchise Requirements 928 Regulatory Commission Expenses 929 Duplicate Charges-Credit 930Miscellaneous General Expenses 931 Rents Total Operation MAINTENANCE 932 Maintenance of General Plant Total Administrative and General Expenses Total Electric Operation and Maintenance Expenses 246,242 75,854 758,882 40,79~= 447,56~ 31,67~= 520,03c~ 1,278,921 12,951~I 140,93~ 193,23c~ 347,12"/ 207,392 64,78g Increase or Decrease From Preceding Year (c) 92,627 (5,827) (3,367) (95) 17,740 (5,281) 0 0 (90,820) 0 18,650 (31) 0 0 (77,482) (59,742) 556 (55,862) 18,335 0 0 (36,971) 807,081 4,146 16,341 0 (4,088) (658) 0 33,484 0 (1,581’, 0 12,184 0 62,828 71,450 878,531 33,876,356 4,740 67,568 (296,350) 145,944 6,197 ¢ 6,74C 181,000 192,01g ELECTRIC OPERATION AND MAINTENANCE EXPENSES (continued) SUMMARY OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES Line No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Functional Classification (a) Power Production Expenses Electric Generation: Operation (b) Total Maintenance (c) Steam Power Nuclear Power Hydraulic Power Other Power Other Power Supply Expenses Total Power Production Expenses Transmission Expenses Distribution Expenses Customer Accounts Expenses Sales Expenses Administrative and General Expenses Total Electric Operation and Maintenance Expenses 31,350,652 31,350,652 21,125 758,882 347,127 0 807,081 33,284,867 0 0 0 31,350,652 31,350,652 21,125 520,039 0 1,278,921 347,127 0 0 71,450 591,489 810,963 33,876,356 NUMBER OF ELECTRIC DEPARTMENT EMPLOYEES 15. Number of electric Department Employees, Payroll Period Ending 16. 17. Total Regular Full-Time Employees 18. Total Part-Time and Temporary Employees Total Employees 12/31/2016 I I The data on number of employees should be reported for the payroll period ending nearest to October 31, or any payroll period ending 60 days before or after October 31. If the respondent’s payrolls for the reported period include any special construction forces include such employees as part-time and temporary employees and show the number of such special construction employees so Included. The number of employees assignable to the electric department from joint functions of combination utilities may be determined by estimate, on the basis of employee equivalents. Show the estimated number of equivalent employees attributed to the electric department from joint functions. 21 1 22 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 Map Annual Ene?y Provided for the Area Actual or Estimated Date of Annual Area (Primary Symbol I . . . . Peak Demand of Peak Load substation 03 Estimated Distribution - Percent Area During the Factor . . Kilowatt-hoursoperating lelSlon, ReSIdential Commercial Industrial Public Streets Other Sales Irrigation Company Unaccounted Year (Kilowatts) or community) Sales and Highway to Public Sales Use For Lighting Authority CLAPHAM 385,019.555 100% 49,053 8/16 92% CLAYTON SEDAN AMISTAD 66,068,968 14.19% 7.22% 9.06% 0.03% 69.47% 18,554 7/16 60% 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. Line No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Name of Overhead (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) Transportation Payroll Taxes Insurance Office Expenses Employee Benefits Stores Expense Property Taxes Administrative Costs Engineering Totals 163,200.21 143,156.83 GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE % 114% 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. 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. 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 LINE TRANSFORMERS Number Total Capacity (kva) (b) 2772 2823 (d) 12,935 92 589 119,064.5 92 589 119,064.5 371 53 880 371 2493 100 53 3359 0 88O 132,879.5 2393 3359 132,879.5 2493 3359 132,879.5 Page 8 VERIFICATION The foregoing report must be verified by the oath of the 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 law 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 New Mexico County of Union makes oath and says that he is Gary Rinker of General Manager (Insert here the official title of the affiant.) (Insert here the name of the affiant.) Southwestern 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 h knowledge and belief such books have, during the period covered by the foregoing report, been kept in goo faith in accordance with the accounting and other orders of the New Mexico Public Regulatio Commission, effective during said period, that has examined the said report, and to the best of h knowledge and belief the information contained in the said report is, insofar as it relates to matters account, in accordance with the said books of account; that he believes that all other statements of fa contained in the said report are true, and that the said report is correct statement of the business an affairs of the above-named respondent in respect to each and every matter set forth therein during the period from and including January 1 , 2016, ~.,,~,’ .~~~L ’ 2016, to and including December 31 ~ " ~ Signature of a~fiant) ~ Subscribed and sworn to before me, a Notary Public, is and for the State and County above named, this commission expires 24th ’ ........... J day of April ,2017 /0( (Signature uthorized to administer oaths) Form 1 New Mexico Jurisdictional Information Year Ending December 31, 2016 Electric Company Name Southwestern Electric Cooperative, Inc. Address 216 Main St,, Clayton, NM88415 Phone Number 575-341-2451 Person Completing Form Gary Rinker Customer Class Other Residential Total Number of Customers 1434 931 2365 KVVH Sales (Thousands) 9,374 441,714 451,088 2,088,772 33,821,863 Gross Revenues Avg. Annual KWH Per Customer (1) 6,537 35,910,635 474,451 190,735 Avg. Annual Bill per Customer (2) 1,457 36,329 15,184 Avg. Monthly Bill per Customer (3) 121 3,027 1,265 Avg. Gross Revenue per KWH sold (4) 0.222 0.076 0.079 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) Divide (2) by 12 months. (4) Divide gross revenues by KWH sales. NMPRC Rule 510 Effective 01/01/89 According to 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 control number. The valid OMB control number for this information collection is 0572-0032. The time required to complete this information collection is estimated to average 15 hours per response, 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 NM 0 0 2 6 RURAL UTILITIES SERVICE PERIOD ENDED December, 2016 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION BORROWER NAME Southwestern Electric Cooperative, Inc. INSTRUCTIONS - See help in the online application. [his 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 regulations 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) [] All of the obligations under the RUS loan documents have been fulfilled in all material respects. Gary Rinker There has been a default in the fulfillment of the obligations under the RUS loan documents. Said default(s) is/are specifically described in Part D of this report. [] 2/23/2017 DATE PART A. STATEMENT OF OPERATIONS ITEM 1. L L . 5. 5. 7. 3. 9. 10. I I. 12. 13. 14. 15. 16. 17. 18. 19. ~0. !1. 22. 23. 24. ~.5. ~.6. ~-7. ~.8. 29. 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 Admimstrative and General Expense Total Operation & Maintenance Expense (2 thru I1) 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 YEAR-TO-DATE THIS YEAR LAST YEAR BUDGET THIS MONTH 35,648,620 35,496,364 34,495,000 2,599,891 31,621,796 31,350,652 21,124 30,000,000 20,100 2,371,973 18,362 1,352 740,229 616,885 381,356 18,216 758,883 520,038 347,367 22,807 741,010 550,000 422,000 23,000 46,802 29,329 52,472 2,644 845,465 34,242,309 960,022 874,409 33,895,280 966,447 861,000 32,617,110 1,000,000 64,232 2,568,804 81,283 887,934 2,090 892,140 203 200 36,090,468 (441,848) 134,615 35,756,157 (259,793) 27,373 34,497,110 (2,110) 74,000 2,870,446 (270,555) 608 32,008 3,959 880,397 29,039 25,832 1,514,175 32,698 1,086 880,397 29,039 1,271,648 680,975 97,722 640,575 Revision Date 2014 880,000 2,090 218,250 19 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0026 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED December, 2016 INSTRUCTIONS - See help in the online application. ITEM PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT YEAR-TO-DATE ITEM LAST YEAR THIS YEAR YEAR-TO-DATE THIS YEAR LAST YEAR (a) 1. New Services Connected ~) 33 2. Services Retired 3. Total Services in Place 4. Idle Services (Exclude Seasonals) 2,883 544 2 7 5. Miles Transmission 62.00 6. Miles Distribution0 1,885.00 Overhead 7. Miles Distribution 2.00 2,910 Underground Total Miles Energized 560 8. 1,949.00 (5+6+7) PART C. BALANCE SHEET LIABILITIES AND OTHER CREDITS 38,867,699 30. Memberships 608,968 31. Patronage Capital 39,476,667 32. Operatin~ Margins - Prior Years 14,230,706 33. Operating Margins - Current Year 15. ASSETS AND OTHER DEBITS Total Utilit~ Plant in Service Construction Work in Prol~ress Total Utilit~ Plant H + 2) Accum. Provision for Depreciation and Amort. Net Utility Plant (3 - 4) Non-Utilit~ Propert~ (Net) Investments in Subsidiar~ Companies Invest. in Assoc. Or~. - Patrona[e Capital Invest. in Assoc. Or[[. - Other - General Funds Invest. in Assoc. Org. - Other - Nongeneral Funds Investments m Economic Development Pro)ects Other Investments Special Funds Total Other Property & Investments (6 thru 13) Cash - General Funds 16. Cash - Construction Funds - Trustee 1,956,641 44. 0 45. 17. 18. 19. 20. 21. 22. Special Deposits Tempom~ Investments Notes Receivable (Net) Accounts Receivable - Sales of Energy (Net) Aceotmts Receivable - Other (Net~ Renewable Energy, Credits 15 (50) 78,046 2,430,940 34,587 0 23. Materials and Supplies - Electric & Other 24. 25. Prepa]~ments Other Current and Accrued Assets Total Current and Accrued Assets (15 thru 25) Rel~ulato~y Assets Other Deferred Debits Total Assets and Other Debits (5+14+26 thru 28) 1. 2. 3. 4. 5. 6. 7. 8. 9. l 0. I I. 12. 13. 14. 26. 27. 28. 29. RUS Financial and Operating Report Electric Distribution 25,245,961 0 0 20,019,698 0 27,568 0 0 0 34. 35. 36. 37. 38. 39. 40. 41. 42. 20,047,266 43. Non-Operating Margins Other Margins and Equities Total Mar~ins & Equities (30 thru 35) Lone-Term Debt - RUS ~Net) Lon[-Tcrm Debt - FFB - RUS Guaranteed Long-T~an Debt - Other - RUS Guaranteed Lone-Term Debt Other (Net) Lone-Term Debt - RUS - Econ. Dev¢l. (Net! Pa~nnents - Unapplied Total Long-Term Debt (37 thru 41 - 42) 46. 47. 48. Obligations Under Capital Leases - Noncurrent Accumulated Operating Provisions and Asset Retirement Obli[ations Total Other Noncurrent Liabilities (44 + 45) Notes Pa~’able Accounts Payable 49. Consumers Deposits 62.00 1,886.00 3.00 1,951.00 o 23,533,639 1,261,o66 649,643 67,975 (2,975) 25,509,348 1,oo5,516 19,oo9,o96 o 1,121,o2£ o 1,o6o,457 2o,o75,184 693,596 693,596 19 2,67o,366 12,772 646,94£ 50. Cmaxnt Maturities Lon~:-Term Debt Current Maturities Long-Term Debt 30,679 51. - Economic Development 104,241 52. Current Maturities Capital Leases 0 53. Other Current and Accrued Liabilities Total Current & Accrued Liabilities 4,635,099 54. (47 thru 53) o 55. Re~[ulato~ Liabilities 144,351 56. Other Deferred Credits Total Liabilities and Other Credits 50,072,677 57. (36 + 43 + 46 + 54 thru 56) 189,680 273,459 3,793,245 0 1,304 50,072,677 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 NM0026 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 NM0026 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 PERIOD ENDED ELECTRIC DISTRIBUTION NM0026 December, 2016 INSTRUCTIONS - See help in the online application. PART E. CHANGES IN UTILITY PLANT BALANCE BEGINNING OF YEAR ADDITIONS RETIREMENTS PLANT ITEM 1. 2. Distribution Plant General Plant Headquarters Plant Intangibles 29,047,623 2,237,794 1,396,670 13,254 3. 4. 5. Transmission Plant 6. Regional Transmission and Market Operation Plant 7. All Other Utility Plant 4,495,515 BALANCE END OF YEAR o 26,675 464,476 0 0 0 5,000 0 0 0 o o o o 0 0 o 30,264,990 2,697,270 1,396,670 13,254 4,495,515 0 o 37, 190, 856 I, 708, 518 272, 411 336, 557 37,463,267 2,045,075 PART F. MATERIALS AND SUPPLIES 8. Total Utility Plant in Service (1 thru 7) 9. Construction Work in Progress 10. Total Utility Plant (8 + 9) BALANCE BEGINNING OF YEAR ITEM 1,244,042 ADJUSTMENTS AND TRANSFERS PURCHASED SALVAGED USED (NET) 31,675 0 31,675 0 SOLD ADJUSTMENT 38,867,699 608,968 39,476,667 BALANCE END OF YEAR o o Electric 28,135 ITEM POWER SUPPLIER 0. 000 1. Present Year 2. Five-Year Average 36. 749 PART G. SERVICE INTERRUPTIONS AVERAGE MINUTES PER CONSUMER BY CAUSE MAJOR EVENT PLANNED (c) ~b) 63. 571 0. 000 ¯ Amount Due Over 60 Da),s ¯ Anticipated Loan Delinquency % 2. Actual Loan Delinquency % 3. Total Loan Delinquency Dollars YTD 42,545 TOTAL ALL OTHER 69.193 132 . 764 210.412 a. General Retirements b. Special Reth-~m~nts c. Total Retirements (a + b) a. Cash Received From Retirement of Patronage Capital by Suppliers of Electric Power b. Cash Received From RetL’~ment of Patronage Capital by Lenders for Credit Extended to the Electric System c. Total Cash Received (a + b) PART J. DUE FROM CONSUMERS FOR ELECTRIC SERVICE 12,446 ~. AmountWrittenOffDurin[Year ENERGY EFFICIENCY AND CONSERVATION LOAN PROGRAM Anticipated Loan Default % Actual Loan Default % f Total Loan Default Dollars YTD RUS Financial and Operating Report Electric Distribution [ 827,823 I 241,10 9 14 0,8 8 6 Payroll- Capitalized Payroll - Other 1,7 0 9 PART I. PATRONAGE CAPITAL DESCRIPTION ITEM 2. Capital Credits - Received 30,679 98. 935 74 . 728 PART H. EMPLOYEE-HOUR AND PAYROLL STATISTICS I. Number of Full Time Employees 2. Employee - Hours Worked - Regular Time 3. Employee - Hours Worked - Overtime ¯ Capital Credits - Distributions 90,058 92,602 THIS YEAR CUMULATIVE o o 855,817 855,817 o 2,550 2,550 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0026 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION PERIOD ENDED INSTRUCTIONS - See help in the online application December, 2016 PART K. kWh PURCHASED AND TOTAL COST No ITEM 1 Tri-State G & T Assnr lnc (CO0047) Total SUPPLIER CODE RENEWABLE ENERGY PROGRAM NAME ~b) 30151 RUS Financial and Operating Report Electric Distribution RENEWABLE FUEL TYPE kwh PURCHASED TOTAL COST AVERAGE COST (Cents/kWh) INCLUDEDIN TOTALCOSTFUEL COST ADJUSTMENT INCLUDED IN TOTAL COST WHEELING AND OTHER CHARGES lh) (e) 458,384,918 31,350,652 6.84 458,384~918 31,350~652 6.84 Revision Date 2014 BORROWER DESIGNATION UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application NM0026 PERIOD ENDED December, 2016 PART K. kWh PURCHASED AND TOTAL COST -~1 RUS Financial and Operating Report Electric Distribution Comments Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. No NAME OF LESSOR la) BORROWER DESIGNATION NM0026 PERIOD ENDED December, 2016 PART L. LONG-TERM LEASES TYPE OF PROPERTY RENTAL THIS YEAR (c) TOTAL RUS Financial and Operating Report Electric Distribution Revision Date 2014 UNITED STATES DEPARTMISNT OF AGP, ICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION Nbl0 0 2 6 PERIOD ENDED December, 2016 INSTRUCTIONS - See help m the online application. 1. Date of Last Annual Meeting PART M. ANNUAL MEETING AND BOARD DATA 2. Total Number of Members 3. Number of Members Present at Meeting 810 8/23/2016 5. Number of Members Voting by Proxy or Mail 6. Total Number of Board Members 7. Total Amount of Fees and Expenses for Board Members 9 RUS Financial and Operating Report Electric Distribution I00 $ 31,992 4. Was Quorum Present? Y 8. Does Manager Have Written Contract? N Revision Date 2014 BORROWER DESIGNATION UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INSTRUCTIONS - See help in the online application. No ITEM NM0026 PERIOD ENDED December, 2016 PART N. LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS INTEREST PRINCIPAL BALANCE END OF (Billed This Year) (Billed This Year) YEAR TOTAL (Billed This Year) Id) (b) 1 Rural Utilities Service (Excludes RUS Economic Development Loans) 2 National Rural Utilities Cooperative Finance Corporation 3 CoBank) ACB 4 Federal Financing Bank 5 RUS - Economic Development Loans 6~Pa~’ments Unapplied 7 I Principal Payments Received from Ultimate Recipients of IRP Loans 8 Principal Payments Received from Ultimate Recipients of REDL Loans 9 Principal Payments Received from Ultimate ,Recipients of EE Loans 10 !Altec Capital Lease TOTAL RUS Financial and Operating Report Electric Distribution 1,005,515 59,178 40,654 99,832 1,121,029 61,613 172,991 234,604 19~009~096 777~526 433)303 1)210~829 898r317 189~680 836)628 189~680 1)734)945 1~060)457 693)596 20~768~779 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION BORROWER DESIGNATION NM0026 PERIOD ENDED December, 2016 INSTRUCTIONS - See help in the online 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 Sales for Resale - Other 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. PART O. POWER REQUIREMENTS DATABASE - ANNUAL SUMMARY AVERAGE NO. CONSUMER SALES & DECEMBER CONSUMERS SERVED REVENUE DATA fit) ~b) 1,049 1,045 a. No. Consumers Served TOTAL YEAR TO DATE {c~ b. kWh Sold 8,282,666 c. Revenue 1,681,049 a. No. Consumers Served b. kWh Sold c. Revenue a. No. Consumers Served b. kWh Sold c. Revenue a. No. Consumers Served b. kWh Sold c. Revenue a. No. Consumers Served b. c. kWh Sold Revenue a. No. Consumers Served b. kWh Sold Revenue c. a. 400 415 1,091,059 364,231 565 578 45,923,738 5,514,396 312 313 4,768,960 809,703 5 391,022,532 27,122,572 5 18,998 4,413 No. Consumers Served b. kWh Sold c. Revenue a. No. Consumers Served b. kWh Sold c. Revenue a. No. Consumers Served b. kWh Sold c. Revenue Total No. of Consumer~ (lines la thru 9a) Total k~Vh Sold (lines l b thru 9b) Total Revenue Received From Sales of Electric Energy (lines l c thru 9c) Transmission Revenue Other Electric Revenue kWh - Own Use Total kWh Purchased Total kWh Generated Cost of Purchases and Generation Interchange - kWh - Net Peak - Sum All kW Input (Metered) Non-coincident____ Coincident RUS Financial and Operating Report Electric Distribution 2,332I 2,365 451,I07,953 35,496,364 0 0 0 458,384,918 31,371,776 0 66,592 Revis~n Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION BORROWER DESIGNATION PERIOD ENDED NM0026 December, 2016 INSTRUCTIONS - S¢ help in the online ai~plication. CLASSIFICATION PART P. ENERGY EFFICIENCY PROGRAMS ADDED THIS YEAR Amount Estimated No. of Invested MMBTU Savings Consumers TOTAL TO DATE Estimated Amount Invested MMBTU Savings No. of Consumers Residential Sales (excluding seasonal) 2. Residential Sales - Seasonal 3. Irrigation Sales 4. Comm. and Ind. 1000 KVA or Less 5. Comm. and Ind. Over 1000 KVA 6. Public Street and Highway Lighting 7. Other Sales to Public Authorities 8. Sales for Resale - RUS Borrowers 9. Sales for Resale - Other 10. Total RUS Financial and Operating Report Electric Distribution 8 59,250 33,870 8~ 33, 870 59,250 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INVESTMENTS, LOAN GUARANTEES AND LOANS BORROWER DESIGNATION NM0026 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. PART Q. SECTION I. INVESTMENTS (See Instructions for clef’tuitions of Income or Loss) RURAL No DESCRIPTION INCLUDED EXCLUDED INCOME OR LOSS DEVELOPMENT ($) ($) ($) (d) (b) (c) ~a) 2[ Investments in Associated Organizations Plateau Patronage Capital Federated Patronage Capital Tri State G & T Patronal~e NRUCFC Tema Certificates NRUCFC Palxonage Capital NRUCFC - Subscriptions to Capital Term Certificates Totals 6 Cash - General FNBNM General FNBNM Special FNBNM Misc. FNBNM Patronage Capital Farmers & Stockmans’ Bank Workin~ Funds Totals 7 Special Deposits Town of Clayton Totals 8 Temporary Investments Applacation Fee - Solor Totals 9 Accounts and Notes Receivable - NET Notes Reveivable - Section 12 Loans Notes Receivable - Aid to Construction Notes Receivable - Other Totals II TOTAL INVESTMENTS (1 thru 10) RUS Financial and Operating Report Electric Distribution - Investments 47r638 91,885 19r831r834 26r538 52r150 (2,779) 20~047r266 I r792~109 10~579 1~103 17r645 135~005 200 1 ~956~641 15 15 (50) (50) 3r489 74r557 34r587 112r633 20~ 159,849 1,956~656 Revision Date 2014 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE BORROWER DESIGNATION NM0026 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INVESTMENTS, LOAN GUARANTEES AND LOANS PERIOD ENDED December, 2016 INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reposed on this Part correspond to Balance Sheet items in Part C. Identify all investments in Rural Development with an ’X’ in column (e). Both ’Included’ and ’Excluded’ Investments must be reported. See help in the online application. PART Q. SECTION II. LOAN GUARANTEES RURAL MATURITY DATE ORIGINAL AMOUNT LOAN BALANCE No ORGANIZATION DEVELOPMENT ($) Ib) 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 FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION INVESTMENTS, LOAN GUARANTEES AND LOANS BORROWER DESIGNATION NM0026 PEPdOD 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. SECTION IlL RATIO 51.07 % RATIO OF INVESTMENTS AND LOAN GUARANTEES TO UTILITY PLANT [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 LOAN BALANCE RURAL ORGANIZATION MATURITY DATE ORIGINAL AMOUNT No DEVELOPMENT ($) ($) la~ ~b~ 1 Employees~ Officers~ Directors 2 Enerl~ Resources Conservation Loans TOTAL RUS Financial and Operating Report Electric Distribution - Loans Revision Date 2014