Shelby Electric Cooperative

“Shelby Electric Cooperative is a member-owned electric distribution cooperative.”

“The members of the Cooperative elect the Board of Directors.”

“Members of the Cooperative must approve all of the following: (a) changes to Articles of Incorporation and/or Bylaws, (b) consolidation, merger, or sale/lease/exchange of all or substanially all of the Cooperatives property not in the ordinary course of business, (c) dissolution of the Cooperative, and (d) the removal of directors.”

“The Form 990 is reviewed by the Controller, CEO and corporate counsel first. It is then presented to the Board of Directors for review.”

“The Chief Executive Officer monitors transactions with the Cooperative for potential conflicts of interest.”

“The Process of determining compensation of the organizations CEO is done through annual appraisals with the salary set according to the compensation survey data.”

“The process of determining compensation of the organizations officers is done through a review of national and regional salary surveys, as well as internal position reviews.”

“Bylaws are offered to all new members; all other documents are available at any time upon request.”

“Benefits Paid to Members $ 3,441,584Grants Applied to Plant $ -2,934,564Other Changes $ 6,181Change in OCI $ 32,217Retirements of Capital Credits $ -284,805Total $ 260,613”

“Form 990, Part IX, Line 4 -The instructions of the 2024 Form 990 indicate that organizations exempt under Section 501(c)(12) should report patronage dividends paid to their members in Part IX, Line 4 of the Form 990. The Cooperative has interpreted the words patronage dividends paid in the instructions to mean margins that are assigned or assignable to the members. The Cooperative assigns the net operating margins to its members each year. Therefore, the amount listed in Part IX, Line 4 represents the net operating margins assignable to the members for the calendar year ended December 31, 2024.”