Houston County Electric Cooperative Inc

“Each consumer receiving electric service is a member of the cooperative.”

“Rules for obtaining membership, the election of the governing body and decisions subject to member approval are defined by the Articles of Incorporation adopted in 1939 and subsequently amended in 1973 and 2010. General descriptions of governing procedures are provided below. However, the actual Articles of Incorporation should be referenced for specific governing policies.”

“Membership is a right for anyone meeting the requirements of the Bylaws. Nine directors are elected to the Board of Directors with representation of specific areas and one at-large director. Each member has the opportunity to elect a representative for their service area every three years. Every member has the opportunity to elect the at-large director every 3 years. The Articles define certain actions requiring member approval such as amendments to the Articles of Incorporation or the disposition of the Corporation.”

“The Form 990 for 2024 was provided to the Board via email and reviewed at a regular board meeting.”

“During a regular board meeting at the end of the reporting year, the directors sign annual statements regarding conflict of interest.”

“The board provides performance reviews and approves salary adjustments for the organizations top management official, the CEO/General Manager. The board typically approves salary adjustments of other key employees. However, the General Manager also has the authority to adjust salaries as deemed appropriate.”

“The board typically approves salary adjustments of other key employees. However, the General Manager also has the authority to adjust salaries as deemed appropriate.”

“The annual financial statements and Form 990 are available for review upon request. Selected financial statements are also provided to members at the annual meeting held in October.”

“Part XI, Line 9 - Other changes in net assets of $2,554,910 is made up of three components; Equity allocation to members for 2024 margins (Benefits paid to members Form 990, Part IX, Line 4) $4,356,348; Retirement of prior year equity allocations (Cash payments or bill credits) of ($1,800,000); and Membership Fees refunded ($1,438).”

“Line 4 - The cooperative is member owned. As such, members build a capital balance based on individual contribution (electric revenue billed) and the cooperatives earnings for a given year. Benefits paid to members represents the allocation of 2024 net margins of $4,356,348.”

“Form 990 Part 1 Line 19 - All margins are allocated to members in the subsequent year and are categorized as benefits paid to members. Therefore, total revenue less total expenses will be zero.”