Grayson Rural Electric Cooperative Corporation

“Line 6 explanation - must be a member to receive electric service. Each member has 1 vote. May have more than 1 service per membership.”

“Line 7a explanation - nominating committee meets every year there is an election to select a member to run for director. Member may run for director with a petition signed by 200 or more qualified members.”

“Line 7b explanation - articles of incorporation can only be changed by a majority vote of the membership. Bylaws may be altered, amended, or repealed by the board of directors at any regular or special meeting by a majority vote.”

“Line 11b explanation - directors are furnished a draft copy of the form 990, and review it prior to filing.”

“Directors and key employees annually complete a questionnaire on family and business relationships.”

“15a. Board of directors review and approve compensation for key employees and other employees using data provided by state and national organization surveys of electric cooperatives. 15b. Majority of compensation is negotiated through a union contract.”

“Copy of articles of incorporation and bylaws are given to each new member. Financial statements are published annually in magazine distributed to each member. Meeting of members is held on an annual basis.”

“Comprehensive income-postretirement benefits 1,233,762. Margins allocated to members 1,072,245. Memberships issued, net 1,945. Refunds of capital credits -246,640. Other equities -26,418.”

“Form 990, part ix, line 4 - benefits paid to or for members represents patronage capital allocated to members in accordance with the bylaws of the cooperative. This reporting results in a difference between book income and income reported on the form 990 by the same amount.”