Craighead Electric Cooperative Corp

“MEMBERS”

“YES”

“YES”

“Final draft of 990 is reviewed by the board of directors prior to submission.”

“On a periodic basis, all employees and directors will be presented with a copy of the code, receive training and periodic communications to insure that employees and directors are familiar with the contents and requirements of this policy.”

“The company retains the services of an outside consultant for compensation review.”

“The company retains the services of an outside consultant for compensation review.”

“By-laws are provided to all new members upon membership and available on the company's website.”

“Form 990, part ix, line 4: pursuant to the form 990 instructions, the amount of patronage dividends paid to members (hereinafter referred to as "patronage dividends paid") refers to the process, subsequent to year-end, by which the cooperative allocates partronage capital to and, therefore, operates at cost with its patrons. The cooperative's tax exempt purposes is to provide electricity to its patrons and to do so on a cooperative basis. Tax law defines "operating on a cooperative basis" as subordination of capital, democratic control, and operation at cost. The cooperative operates at cost through the allocation of true patronage dividends (also referred to as allocations of patronage capital) to its patrons. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transactions done with or for patrons, and (3) in a fair and equitable manner on the basis of patronage (i.e., purchases). Additionally, the allocation of patronage dividends should be made within a reasonable time period after the close of the cooperative's calendar tax year-end of december 31. Each one of these requirements for a true patronage dividend is provided for in the non-profit operation article of the cooeprative's by-laws. The amount reported on part ix, line 4 represents the amount of patronage capital that is either allocated or to be allocated to the patrons resulting from their purchase of electricity from the cooperative for the current calendar year. Because patronage dividends are the process by which the cooperative operates at cost with its patrons and thereby a key component to accomplishing its exempt purpose, the cooperative has reported such amounts as an expense for form 990 reporting. Patronage dividends are not an expense for financial statements prepared in accordance with generally accepted accounting principles, however.”

“Sale of broadband services to members.”

“Purchased power-net of credit 37,485,009 0 0 transmission expense 28,271 0 0 dist expense - operation 5,153,024 0 0 dist expense - maintenance 8,267,300 0 0 customer accounts expense 2,497,883 0 0 customer serv & info expnese 298,860 0 0 sales expense 330,228 0 0 admin & general expense 5,770,947 0 0 tax expense - other 2,646 0 0 interest exp - long-term debt 5,121,989 0 0 interest expense - other 31,999 0 0 other deductions 3,257 0 0 director comp reported above -117,630 0 0 key/hce comp reported above -193,100 0 0 other wages reported above -11,222,421 0 0 total 53,458,262 0 0”

“Temporary difference between allocated 12,798,998 capital credits and retired capital credits 0 memberships -2,317 total 12,796,681”