Fairfield Electric Cooperative Inc

“The cooperative is organized without capital stock and there is only one class of members with respect to voting rights. All patrons who receive electric service from the cooperative comply with the bylaws and pay the membership fee are voting members. Each member is entitled to one vote. Members receive a share of the cooperatives margins through an allocation and approved retirement of patronage capital.”

“The cooperative is divided into nine single-member districts. In addition there are two districts at-large with one trustee each. Members can only vote for trustees in their respective district as well as the districts at-large.”

“Certain decisions require the approval of members such as a making changes in the bylaws or articles of incorporation b consolidation merger or sale lease exchange of substantially all of the cooperatives property not in the ordinary course of business and c dissolution of the cooperative.”

“The cooperative regularly and consistently monitors and enforces compliance with their conflict of interest policy. The ceo assists the board of trustees to ensure compliance with this policy. In the event of a potential conflict of interest the board chair will counsel the trustee as required to ensure compliance. General counsel will advise individual trustees and or the board of trustees regarding compliance with the policy.”

“Compensation for the ceo is reviewed and approved through the use of form 990 information of other cooperatives a compensation survey and a performance review conducted by the member-elected board. Compensation for key employees is reviewed and approved through the use of an annual performance evaluation performed by the ceo and in accordance with the board approved wage and salary study. All decisions are documented.”

“The cooperative makes its bylaws conflict of interest policy and financial statements available to the public upon written request.”

“| Explanation:| FOOTNOTE REGARDING MEMBERSHIP IN CERTAIN ORGANIZATIONS FAIRFIELD ELECTRIC COOPERATIVE FEC IS A MEMBER OF A NUMBER OF ORGANIZATIONS WHERE A FEC OFFICER OR TRUSTEE MAY SERVE AS FECS REPRESENTATIVE ON THE BOARD OF TRUSTEES. THESE INDIVIDUALS SERVE AT THE PLEASURE OF FEC AND CAN SERVE ONLY AS LONG AS THEY REPRESENT FEC. THE FOLLOWING INDIVIDUALS SERVED IN SUCH POSITIONS: 1. BRUCE BACON CEO: BRUCE IS A TRUSTEE OF COOPERATIVE ELECTRIC ENERGY UTILITY SUPPLY AND ITS WHOLLY OWNED SUBSIDIARY LINE EQUIPMENT SALES COMPANY CEEUS AND DID NOT RECEIVE COMPENSATION FROM THIS ORGANIZATION. BRUCE IS A TRUSTEE OF THE ELECTRIC COOPERATIVES OF SOUTH CAROLINA ECSC AND DID NOT RECEIVE COMPENSATION FROM THIS ORGANIZATION. BRUCE IS A TRUSTEE OF CENTRAL ELECTRIC COOPERATIVE INC. CENTRAL AND RECEIVED COMPENSATION IN THE AMOUNT OF $14.900 DURING 2024 FROM THIS ORGANIZATION. 2. MITCHELL RABON PRESIDENT: MITCH IS A TRUSTEE OF CENTRAL ELECTRIC AND RECEIVED COMPENSATION IN THE AMOUNT OF $10,430 DURING 2024 FROM THIS ORGANIZATION. 3. ROBERT ENTZMINGER VICE PRESIDENT: ROBERT IS A TRUSTEE OF CEE-US AND DID NOT RECEIVE COMPENSATION FROM THIS ORGANIZATION. 4. DERIAL OGBURN TRUSTEE: DERIAL IS A TRUSTEE OF ECSC AND DID NOT RECEIVE COMPENSATION FROM THIS ORGANIZATION. COOPERATIVE ELECTRIC ENERGY UTILITY SUPPLY CEEUS: CEEUS IS A CORPORATION ORGANIZED TO FOSTER DEVELOP AND ENCOURAGE PROGRAMS OF RURAL ELECTRIFICATION IN SOUTH CAROLINA AND ELSEWHERE BY PROVIDING A NONPROFIT DISTRIBUTOR FOR ELECTRICAL SUPPLIES EQUIPMENT FUEL AND ENERGY. IN ADDITION CEEUS HAS ESTABLISHED A UNIFORM PRICE AND CONSTANT SUPPLY THROUGHOUT ITS SERVICE AREAS BY THE METHOD OF MASS PURCHASING MANUFACTURING AND OTHERWISE. FEC PAID $7,208,230 FOR GOODS PURCHASED FROM CEEUS DURING 2024. THE ELECTRIC COOPERATIVES OF SOUTH CAROLINA ECSC: ECSC IS A NOT-FOR-PROFIT CORPORATION TO 1 FOSTER DEVELOP AND ENCOURAGE THE PROGRAM OF RURAL ELECTRIFICATION IN THE STATE OF SOUTH CAROLINA 2 FURTHER THE GENERAL WELFARE AND TO PROMOTE THE INTEREST OF THE MEMBERS OF ECSC; TO FURTHER THE SAFETY STABILITY SECURITY AND PROSPERITY OF ELECTRIC COOPERATIVES; TO AID IN SOLVING THE PROBLEMS COMMON TO ELECTRIC COOPERATIVES 3 DISSEMINATE INFORMATION RELATING TO THE RURAL ELECTRIFICATION PROGRAM; TO COOPERATE WITH FEDERAL STATE AND MUNICIPAL AGENCIES IN THE PROMOTION OF RURAL ELECTRIFICATION AND NATIONAL STATE COMMUNITY AND RURAL DEVELOPMENT; TO PROVIDE SERVICES AND INFORMATIONAL PROGRAMS THAT WILL STIMULATE LOCAL GROWTH STABILITY AND SECURITY AND STRENGTHEN THE ELECTRIC COOPERATIVE PROGRAM IN SOUTH CAROLINA 4 OTHERWISE ASSIST THE MEMBERS OF ECSC TO PROVIDE ELECTRIC ENERGY TO INHABITANTS OF MEMBER SERVICE AREAS AT THE LOWEST POSSIBLE COST CONSISTENT WITH SOUND ECONOMY AND 5 OPERATE ALWAYS FOR THE BENEFIT OF ITS MEMBER COOPERATIVES AND THROUGH THEM FOR THE BENEFIT OF THEIR CONSUMERS DOING THOSE THINGS THROUGH ECSC THAT CAN BE DONE BETTER THAN INDIVIDUALLY. FEC PAID $518,527 FOR SERVICES PROVIDED BY ECSC DURING 2024. CENTRAL ELECTRIC COOPERATIVE INC. CENTRAL: CENTRAL IS A GENERATION AND TRANSMISSION COOPERATIVE THAT EXISTS SOLELY FOR THE BENEFIT OF ITS MEMBERS. CENTRAL PROVIDES A RELIABLE LONG-TERM AND STABLE SUPPLY OF POWER WHICH ACCOMMODATES GROWTH AT THE LOWEST POSSIBLE COST CONSISTENT WITH GOOD UTILITY PRACTICE. CENTRAL PROVIDES FOR RELIABLE DELIVERY OF POWER WHEN AND WHERE DESIRED CONSISTENT WITH APPLICABLE GUIDELINES. CENTRAL PROVIDES ADDITIONAL ENERGY-RELATED OR DELIVERY-RELATED SERVICES AS DIRECTED BY ITS BOARD OF TRUSTEES. FEC PAID $54,809,879 FOR SERVICES PROVIDED BY CENTRAL DURING 2024.”

“| Description:, Explanation:, Amount:| POST RETIREMENT BENEFIT PLAN LOSS, PART XI LINE 2D - OTHER ADJUSTMENTS, $38841| ASC 980 REGULATORY LIABILITY, PART XI LINE 4B - OTHER ADJUSTMENTS, $-1500000| PATRONAGE CAPITAL CREDITS - PAID TO MEMBERS, PART XII LINE 4B - OTHER ADJUSTMENTS, $2631491| MEMBERSHIPS, PART XI LINE 2D - OTHER ADJUSTMENTS, $3515| RETIREMENT OF PATRONAGE CAPITAL, PART XI LINE 2D - OTHER ADJUSTMENTS, $-2085529|”

“| Explanation:| THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY A SECTION 512C12 ORGANIZATION TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" TO MEAN PATRONAGE DIVIDEND ALLOCATED OR TO BE ALLOCATED I.E. NET MARGINS ASSIGNED OR ASSIGNABLE TO ITS MEMBERS FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT A CURRENT PERIOD EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES GAAP BUT RATHER REPORTED IN THE AUDITED FINANCIAL STATEMENTS AS AN INCREASE IN EQUITY THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI PAGE 12 LINE 9 OF FORM 990.”