San Miguel Power Association Inc

“San Miguel Power is organized as a not-for-profit cooperative. Our customers are all members of the Cooperative.”

“Our governing Board of Directors are all selected by our members to serve a four year term.”

“The Form 990 is prepared by an outside accounting firm and reviewed by the CFO. After the 990 is filed, it is presented to the Board of Directors for review.”

“All Directors and Officers are required to complete a questionnaire annually that discloses transactions or relationships that may result in a conflict of interest.”

“Compensation for the General Manager/CEO is reviewed and evaluated annualy by the Board of Directors.”

“For other employees, the Board of Directors establish overall guidelines for the total compensation package. The CEO and other top management then use comparable data from other electric cooperatives in our state and around the nation to establish the appropriate compensation for each job classification. The overall compensation package must remain within the guidelines established by the Board of Directors.”

“Our bylaws are available to the public at both officees during regular business hours or by request. The conflict of interest policy is included in our bylaws and available at both offices and on our website. Our monthly financial statements are available at each Board of Directors meeting, which are open to the public to attend. In addition, our annual financial statements are presented to the membership as part of our annual meeting of the membership. Annual financial statements are also available to the public as part of our annual meeting report that is posted on our website.”

“CY Margins Assigned to Members $ 2,059,292 Other Changes $ 277,337 MCR and Microgrid Grants $ - 64,379 Scholarships/Donations $ 31,000 Retirement of Capital Credits $ -1,101,089 Total $ 1,202,161 Board of Directors elected to distribute $21,000 in scholarships and $10,000 in donations from retained earnings”

“Form 990, Part IX, Line 4 The instructions to 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 net margins to its members each year. Therefore, the amount listed in Part IX, Line 4 represents the net margins assignable to the members for the calendar year ended December 31, 2024.”