E LECT C.

200 E. High St. • P.O. Box 1087 • Grants, New Mexico 87020 • (SOS) 285-6656 • Fax (SOS) 287-2234

/

New Mexico Public Regulatory Commission Records Management Bureau Marian Hall, 224 East Palace A venue Santa Fe, New Mexico 87501 2013

G~ntlemen:

Enclosed is our Annual Report to the NMPRC for the calendar year 2008, including our Audited year end Form 7.

The annual SEC for 1 Ok is not applicable, and our most recent Long Range Load Growth Forecast dated March 11, 2009 was submitted earlier. We have not engaged in any of the activities requiring Additional disclosure under New Mexico Public Utility Commission Rules 110.30, 110.34 and or 450.11

Cf; you have any questions please call Frank Hasty CDEC Accounting Supervisor at 1505285 6656 X 1031.

Continental Divide Electric Cooperative

/ (

-------

( A~~~

\ ·1~r-~1/.Hasty '-----:~c:counting Supervisor

April 22, 2009

A Touchstone Energy"' Cooperative ~~ -

RU

Annual Report

Of

(Exact legal name of Respondent)

TO THE

NEW MEXICO

PUBLIC REGULATION COMMISSION

FOR THE

YEAR ENDED DECEMBER 31,200 ~

--r-·, C,•1

Paqe 1 AJtJr ril'l"GIGAdLl

ELECTRIC OPERATION AND MAINTENANCE

1. Enter in the space the utJ1:::1c:1uu and maintenance expenses for the year. 2. If the Increases and decreases are not derived from previously reported fiqures explain in footnotes.

Line Account Amount for Current Increase or Decrease No. Year From ::-', ~w-:::, 'l=I Year

(a) (b) (c) 1. POWER PRODUCTION EXPENSES 2:. STEAM POWER GENERATION :3,. OPERATION $ 4. 500 Operation Supervision and Enoineerinci r ,J,. 501 Fuel 6. 502 Steam Expenses ., 1 503 Steam From Other Sources J.

13. 504 Steam Transferred - Credit !3. 505 Electric Expenses 10. 506 Miscellaneous Steam Power Expenses 1'1. 507 Rents 12. Total Operation 1 :3. MAINTENANCE 14. 510 Maintenance Supervision and Enqineerinq 15. 511 Maintenance of Structures rn. 512 Maintenance of Boiler Plant p I• 513 Maintenance of Electric Plant 1B. 514 Maintenance of Miscellaneous Steam Plant rn. Total Maintenance 20. Total Power Production Expenses-Steam Power 2-1. NUCLEAR POWER GENERATION 2~!. OPERATION 23. 517 Operation Supervision and EnQineerinQ 24. 518 Fuel 2!i. 519 Coolants and Water 2fi. 520 Steam Expenses 2-· I. 521 Steam From Other Sources 28. 522 Steam Transferred - Credit 29. 523 Electric Exoenses 30. 524 Miscellaneous Nuclear Power Expenses 31. 525 Rents 3~!. Total Operation

,, 33. MAINTENANCE i 34. 528 Maintenance Supervision and Engineering

35. 529 Maintenance of Structures I 3Ei. 530 Maintenance of Reactor Plant Equipment I 37. 531 Maintenance of Electric Plant 1

38. 532 Maintenance of Miscellaneous Nuclear Power 39. Total Maintenance 40. Total Power Production Expenses-Nuclear Power 41. HYDRAULIC POWER GENERATION 42. OPERATION 42:. 535 Operation Supervision and Engineering 44. 536 Water for power 45i. 537 Hydraulic Expenses 46. 538 Electric Expenses 47. 539 Miscellaneous Hydraulic Power Generation Expenses 48,. 540 Rents 491• Total Ooeration 50. MAINTENANCE 5·1. 541 Maintenance Supervision and Engineering 52. 542 Maintenance of Structures

ELECTRIC OPERATION AND MAINTENANCE EXPENSES

1 HYDRAULIC POWER GENERATION 2 543 MAINT OF RESERVOIRS 3 544 MAINT OF ELECT PLANT 4 545 MAINT OF MISC HYDRAULIC 5 TOT AL MAINT 6 TOT AL POWER EXPENSE 7 OTHER POWER GENERATION 8 OPE.RATIONS 9 546 OPERATION SUPERVISOR

10 547 FUEL 11 548 GENERATION EXP 12 549 MISC OTHER POWER GENERATION EXP 13 550 RENTS 14 TOTAL OPERATIONS 15 MAINTENANCE 16 551 MAINTENANCE SUPERVISION 17 552 MAINTENANCE OF STRUCTURE 18 553 MAINT OF GENERATING 19 554 MAINT OF MISC POWER GENERATION 20 TOT AL MAINTENANCE 21 TOT AL POWER PRODUCTION EXP 22 OTHER POWER SUPPLY EXPENSES 23 555 PURCHASED POWER 24 556 SYSTEM CONTROL 25 557 OTHER EXP 26 TOT AL MAINT 27 TOT AL POWER PRODUCTIONS EXP 28 TRANSMISSION EXPENSES 29 OPERATIONS 30 560 OPERATIONS SUPERVISION 31 561 LOAD DISPATCHING 32 562 STATION EXPENSES 33 563 OVERHEAD LINE EXP 34 564 UNDERGROUND LINE EXP 35 565 TRANSMISSION OF ELECTRICITY 36 566 MISC TRANSMISSION EXP 37 567 RENTS 38 TOTAL OPERATIONS 39 MAINTENANCE 40 568 MAINTENANCE SUPERVISOR 41 569 MAINT OF STRUCTURES 42 570 MAINT OF STATION EQUIP 43 571 MAINT OF OVERHEAD LINES 44 572 MAINT OF UNDERGROUND LINES 45 573 MAINT OF MISC TRANSMISSION 46 TOTAL MAINTENANCE 47 TOTAL TRANSMISSION EXP 48 IDIS1"RIBUTION EXP 49 i::>PERATIONS 50 580 OPERATION SUPERVISION 51 581 LOAD DISPATCHING 52 582 STATION EXPENSES 53 583 OVERHEAD LINE EXP 54 584 UNDERGROUND LINE EXP 55 585 STREET LIGHTING

INCREASE OR (DECREASE) FROM

2008 PRECEDING YEAR

$33,252,170

$33,252,170

$14,006 $0

$0

$14,006

$511 $3,328

$3,839 $17,845

$416,214 $0

$4,086 $814,957 $195,946

$2,470

$1,724,891

$1,724,891

-$1,916 -$8,323

$0

-$10,239

$511 -$4,821

-$4,310 -$14,549

$116,883 $0

-$494 $237,625

$44,339 -$218

. IPAGE 3 I ELECTRIC OPERATION AND MAINTENANCE EXPENSES

1 DISTRIBUTION EXP CONT 2 586 METER EXP 3 587 CUSTOMER INSTALLATION EXP 4 588 MISC DISTRIBUTION EXP 5 589 RENTS 6 TOTAL OPERATIONS 7 MAINTENANCE 8 590 MAINT SUPERVISION 9 591 MAINT OF STRUCTURES

10 592 MAINT OF STATION EQUIP 11 593 MAINT OF OVERHEAD LINES 12 594 MAINT OF UNDERGROUND LINES 13 595 MAINT OF LINE TRANSFORMERS 14 596 MAINT OF STREET LIGHTS 15 597 MAINT OF METERS 16 598 MAINT OF MISC DISTRIBUTION PLANT 17 TOTAL MAINTENANCE 18 TOTAL DISTRIBUTION EXP 19 CUSTOMER ACCOUNTS EXP 20 OPERATIONS 21 901 SUPERVISION 22 902 METER READING EXP 23 903 CUSTOMER RECORDS AND COLLECTIONS FEES 24 904 UNCOLLECTIBLE ACCOUNTS 25 905 MISC CUSTOMER EXP 26 TOTAL CUSTOMER ACCOUNTS EXP 27 SALES EXPENSE 28 OPE:RATIONS 29 911 SUPERVISION #909 30 912 DEMONSTRATING AND SELLING EXP 31 913 ADVERTISING EXP 32 914 REVENUE FROM MERCHANDISING 33 915 COST EXPENSE OF MERCHANDISING 34 916 MISC SALES EXP 35 TOTAL SALES EXP 36 ADMINISTRATIVE AND GENERAL EXP 37 OPERATIONS 38 920 ADMINISTRATIVE AND GENERAL SALARIES 39 921 OFFICE SUPPLIES AND EXP 40 922 ADMINISTRATIVE EXP TRANSFER CREDIT 41 923 OUTSIDE SERVICES EMPLOYED 42 924 PROPERTY INSURANCE 43 925 INJURIES AND DAMAGES 44 926 EMPLOYEE PENSION AND BENEFITS 45 927 FRANCHISE REQUIREMENTS 46 928 REGULATORY COMMISSION EXP 47 929 DUPLICATE CHARGES CREDIT 48 930 MISC GENERAL EXP 49 931 RENTS 50 TOTAL OPERATIONS 51 MAINTENANCE 52 932 MAINT OF GENERAL PLANT #935 53 TOTALADMIN AND GENERAL EXP 54 TOTAL ELECT OPERATIONS AND EXP

INCREASE OR (DECREASE) FROM

2008 PRECEDING YEAR

$114,896 $50,825

$201,132 $0

$1,800,526

$15,601

$5,076 $675,726

,118 $36,256

$110,875 $106,805

$0 $991,457

$2,791,983

$244,725 $878,138 $144,462

$1,267,325

$213,410

$33,400

$246,810

$763,760 $249,193

$90,079 $0

$13,840 $12

$198,715

$347,630

$1,663,229

$44,858 $1,708,087

$39,284,220

$196,687 -$16,340 -$34,051

$222 $544,653

$9,937

$2,425 $37,738

$871 -$37,422

-$555 $31

-$754 $43,562

$588,215

-$17,671 $108,380 -$26,493

$64,216

$59,354

-$11

$47,365

$167,920 $32,745

-$1,092

-$5,067 -$2,017

-$2,612

-$12,665

$177,212

-$29,564 $147,648

$2,557,786

1 POWER PRODUCTION EXP 2 ELE:CT GENERATION 3 STEAM POWER 4 NUCLEAR POWER 5 HYDRAULIC POWER 6 OTHER POWER 7 OTHER POWER SUPPLY EXP 8 TOTAL POWER PRODUCTION EXP 9 TRA.NSMISSION EXP

10 DISTRIBUTION EXP 11 CUSTOMER ACCTS EXP 12 SALES EXP 13 ADMINISTRATIVE AND GENERAL EXP

NANCE EXPENSES

$33,252,170

$14,006 $1,800,526 $1,267,325

$246,810 $1,663,229

14 TOTAL ELECT OPNS AND MAINT EXP $38,244,066 15 NUMBER OF ELECT DEPT EMPLOYEES 16 TOTAL REGULAR FULL TIME EMPLOYEES 17 TOTAL PART TIME AND TEMP EMPLOYEES 18 TOTAL EMPLOYEES

MAINT

$3,839 $991,457

$44,858 $1,040,154

TOTAL

$33,252,170

$17,845 $2,791,983 $1,267,325

$246,810 $1,708,087

$39,284,220 DEC 31 2008

62 0

62

BLUEWATER GIANT ENRON GALLUP 24.9 GALLUP 69.0 GRANTS MPC PAGUATE SMITH LAKE TAYLOR SAN FIDEL

GES DISTRIBUTION OF SYSTEM LOAD IN SERVICE AREA INFORMATION FROM TRI STATE HISTORY SALES REPORT

KWH

50,774,816 50,646,757 23,093,377 33,192,659 73,481,316 89,691,039

114,603,871 35,118,291 52,713,246

6,082,276 446,400

5211,844, 048

RES. SALES

%

25.18%

COMM. IN DUST SALES SALES

% %

25.36%

STREET LIGHTS

%

0.30%

2008

OTHER IRRIGATION SALES SALES

% %

5.75%

starts at cell A 184

COMPANY UN ACCT SALES FOR

% %

0.00% 0.07% 2.87%

NON COIN

PEAK DEMAND DURING

THE YEAR

9,158 7,067 9,638 7,056

13,992 15,944 15,960 6,543

11,042 1,162 2,834

DATE OF

PEAK

Dec-08 May-08 Apr-08 Dec-08 Jan-08 Jan-08 Aug-08 Jan-08 Jan-08 Dec-08 Dec-08

NON COIN ANNUAL LOAD

FACTOR

63.1321 81.5876 27.2777 53.5539 59.7867 64.0412 81.7474 61.1032 54.3475 59.4358 21.1715

100.00%

CONSTRUCTION OVERHEADS ELECTRIC YEAR ENDING DECEMBER 31 2008

COST OF PERCENT OVERHEAD

OVERHEAD CLEARED CONSTRUCTION TO CONSTRUCTION

NAME OF OVERHEAD TO CONSTRUCTION WITH OUT OVERHEAD COST

1 LABOR RELATED $ 204,000 $4,183,922 4.88% 2 3 4 5 6 7 8 9

10 11 12 13 14 TOTALS $4,183,922 4.88%

ELECTRIC DISTRIBUTION METERS AND LINE TRANSFORMERS CONTINENTAL DIVIDE ELECTRIC CO-OP., INC.

Date: Year End Period Dec 2008

I. Report below the information called for concerning distri­dution watt-hour meters and line transformers.

:!. Watt-hour demand distribution meters should be included bdow but external demand meters should not be included. .l Show in a footnote the number of distribution wan-hour

meters or line transformers held by the respondent under lease from others, jointly owned with others or held othernise than by reason of sole ownership by the respondent. If 500 or more

Line Item No. (a)

1 Number at beginning of year 2 Additions during year: 3 Purchases 4 Associated with utility acquired 5 Total additions 6 Reductions during the year: 7 Retirements 8 Associated with utility plant sold 9 Total reductions 10 Number at end of year 11 In stock 12 Locked meter on customers' premises 13 Inactive transformers on system 14 In customer's use 15 In company's use 16 Total end of vear (as Above)

meters or line transformers are held under a lease, give name of lessor, date and period of lease and annual rent. If 500 or more meters or line transformers are held other than by reason of sole ownership or lease, give name of co-owner or other party, ex­plain the basis of accounting for expenses between the parties, and state amounts and accounts affected in respondent's books of

account. Specify in each case whether lessor, co-owner or their party is an associated company.

LINE TRANSFORMERS Number of watt-hour

meters Number Total capacity (kva) (B) (cl (dl

27133 19025 325408.5

2951 442 11530 0 0 0

2951 442 11530

336 473 3683 0 3191 26715

336 3664 30398 29748 15803 306540.5

1654 742 36234.5 4214 NA NA

NA 301 5406 23834 14730 264678

46 30 222 29748 15803 306540.5

COMPUTER GENERATED FORM

Page8

VERIFICATION

The foregoing report must be verified by the oath of the office having control of the accounting of the respondent. The oath required may be taken before any person authorized to administer an oath by the laws of the State in which the same is taken.

OATH

(To be made by the officer having control of the accounting of the respondent.)

State of /LIEuJ m t.,x1 c. o

ss:

County of C I G C> L 8

___ ___:,,_=---....L.....:....;:...."---""'-"--,t:------- makes oath and says that he is §c,01.111,1, ~~ uJ,,el(.vtso,e (llnsert here the name of the ffiant.) (Insert here the official title of the affiant.)

(~lllr/Alt::7VTl9<- /jv,.t?£ £e:l,r«- L~MA"Tl'Pt;,. _.L,vc. of c> (Insert here the exact legal title of name of the respondent.)

that it is his duty to have supervision over the books of account of the respondent and that to the best of his knowledge and belief such books have, during the period covered by the foregoing report, been kept in good faith in accordance with the accounting and other orders of the New Mexico Public Regulation Commission, effective during said period, that has examined the said report, and to the best of his knowledge and belief the information contained in the said report is, insofar as it relates to matters of account, in accordance with the said books of account; that he believes that all other statements of fact contained in the said report are true, and that the said report is correct statement of the business and affairs of the above-named respondent in respect to each and every matter set forth

th1~rein during the period from and including --------,,4-~~~~_J_/!'.._ ________ , 20 cJ F,

to and including -------------+7":.._ 2otJR ~---------' _,

County above named, this __ &~}~~--____ day of ~ g

CONTINENTAL DIVIDE ELECTRIC COOPERATIVE, INC NMPRC RULE 510.4 ANNUAL REPORT

2008

2008 REVENUES $42,588,007 EARNINGS $970,169 RETURN ON EQUITY 3.09% AM()UNT OF DEBT $14,187,506 AVG C()ST OF DEBT 5.33% CAPITAL STRUCTURE $31,424,568 GENERATION PLANT N/A TRANSMISSION AND SUB TRANSMISSION

PLANT IN SERVICE $1,576,501 DISTRIBUTION PLANT IN SERVICE $43,844,565

OPERATIONS AND MAINT. EXP FUEL AND PURCHASED POWER $33,252, 170 OPERATIONS MAINT EXP $8,365,668

DEFFERED TAX RESERVES NIA PEAK DEMAND 93,974 NET ENERGY SALES KWH 515,296,833

Page9

2007 $ 40,287,010 $ 1,207,942

3.99% $ 15,050,401

5.33% $ 30,244,659

N/A

$ 1,576,501 $ 43,752,550

$ 33,252,170 $ 7,551,789

NIA 93,734

545,602,082

Long Term Dept Accounts 221-228 Page 10

Per t for the Year

12/31/20078 rate% Amount

1 18 190 RUS n/a 6/10/1974 6/10/2009 $ 379,500 $ 6,083.42 NIA $ 6,083.42 5.00% $ 1,019.88 2 1B 192 RUS nla 6/10/1974 6/10/2009 $ 379,500 $ 6,083.42 NIA $ 6,083.42 5.00% $ 1,019.88 3 1B 200 RUS n/a 1/1211976 1/1212011 $ 773,500 $ 91,742.70 NIA $ 91,742.70 5.00% $ 5,924.96 4 1B202 RUS n/a 1/12/1976 1/12/2011 $ 773,500 $ 91,742.70 NIA $ 91,742.70 5.00% $ 5,924.96 5 18210 RUS n/a 313011977 3130/2012 $ 520,000 $ 90,356.83 NIA $ 90,356.83 5.00% $ 5,373.50 6 1B212 RUS n/a 3/30/1977 3/30/2012 $ 520,000 $ 90,356.83 NIA $ 90,356.83 5.00% $ 5,373.50 7 1B 220 RUS n/a 4/6/1978 4/612013 $ 1,234,000 $ 295,692.83 NIA $ 295,692.83 5.00% $ 16,691.30 8 18 222 RUS n/a 4/6/1978 4/6/2013 $ 272,838 $ 65,376.95 N/A $ 65,376.95 5.00% $ 3,690.41 9 1B 223 RUS n/a 4/6/1978 4/6/2013 $ 961,162 $ 238,715.69 N/A $ 238,715.69 5.00% $ 13,487.61

10 1B 230 RUS n/a 5/5/1982 5/5/2017 $ 850,838 $ 358,022.21 NIA $ 358,022.21 5.00% $ 18,981.83 11 1B 231 RUS nla 5/5/1982 5/5/2017 $ 477,662 $ 210,107.11 NIA $ 210,107.11 5.00% $ 11,137.12 12 18 233 RUS n/a 5/5/1982 5/512017 $ 1,138,338 $ 500,714.18 NIA $ 500,714.18 5.00% $ 26,541.30 13 1B 234 RUS nla 5/5/1982 5/512017 $ 190,162 $ 104,881.75 NIA $ 104,881.75 5.00% $ 5,445.42 14 1B 240 RUS n/a 6120/1996 6/20/1931 $ 1,278,000 $ 846,710.06 NIA $ 846,710.06 5.12% $ 44,437.15 15 1B245 RUS nla 6/20/1996 6/20/1931 $ 127,800 $ 846,710.06 NIA $ 846,710.06 5.12% $ 44,437.15 16 1B250 RUS n/a 12/23/2000 12/23/2035 $ 9,251,000 $ 8,363,598.47 NIA $ 8,363,598.47 5.00% $ 422,097.44

17 18 19 20 21 9002 CFC n/a 4/30/1974 4/30/2009 $ 202,945 $ 14,392.61 NIA $ 14,392.61 5.85% $ 1,812.34 22 9003 CFC n/a 10131/1975 10/3112010 $ 442,111 $ 102,858.96 NIA $ 102,858.96 5.90% $ 7,649.75 23 9004 CFC n/a 1131/1977 1/31/2012 $ 311,314 $ 103,441.62 NIA $ 103,441.62 6.00% $ 7,112.30 24 9005 CFC n/a 1/31/1978 1131/2013 $ 735,532 $ 276,849.69 NIA $ 276,849.69 6.00% $ 18,319.33 25 9006 CFC n/a 4/30/1982 4/30/2017 $ 933,083 $ 525,502.88 NIA $ 525,502.88 6.05% $ 32,851.16 26 9007 CFC n/a 9/8/1999 3/31/2031 $ 1,096,000 $ 957,564.99 N/A $ 957,564.99 6.05% $ 57,478.27 27 28 29 30 31 32 33 TOTAL $ 14,187,505.96 $ 14,187,505.96 $ 756,806.56 34 LESS ADVANCE PAYMENTS UNAPPROVED (Account 227) $ (4,028,986.39) $ (4,028,986.39) 35 TOTAL Is 10,15s,s1s.s11 $ 10,158,519.57

FORM 1 NEW MEXICO JURISDICTIONAL INFORMATION YEAR ENDING DECEMBER 31 2008

ELECTRIC COMPANY NAME

ADDRESS

PHONE NUMBER

CONTINENTAL DIVIDE ELECT COOP

PO BOX 1087

505 285 6656 X 1031

Page 11 FORM 1

PERSON COMPLETING FORM FRANK R HASTY ACCOUNTING SUPERVISOR

CUSTOMER CLASS

NUMBER OF CUSTOMERS

KWH SALES (THOUSANDS)

GROSS REVENUES

AVG. ANNUAL KWH PER CUSTOMER

AVG. ANNUAL BILL PER CUSTOMER

AVG MONTHLY KWH BILL PER CUSTOMER

AVG. GROSS REVENUE PER KWH SOLD

{(starts on Cell A 247))

RES.

20,193

133,426

$14,260,653

6,608

$ 706.22

11,119

$ 0.1069

OTHER TOTAL

3,150

381,871

$28,166,591 $

121,229

$ 8,941.77 $

31,823

$ 0.0738 $

23,343

515,297

42,427,244

22,075

1,817.56

42,941

0.0823

Reduction fu>ject (0MB #0572-0032), Washington, DC 20503. 0MB FOR.',! NO. 0572-0032, Expires 03131195. o rt1--1ew your ma cia SJ a wn. our re pons is require

FINANCIAL AND STATISTICAL REPORT OOPERA TIVE, INC.

DECEMBER 31 2008 AUDITED FINANCIALS INSTRI.ICTIONS-Submit an original and two copies to REA. Round all amounts 10

nearest dollar. For detailed instroctions, see REA Bulletin l717B-:Z

PERIOD ENDED REA USE ONLY

'

31-Dec-08 CERTIFICATION

We hereby certijy that the entries in this report are in accordance with the accounts and other records oj the system and reflect the status oj the system to the best oj our knowledge and belief.

llt:M

ITEM (UJ (OJ

1. New Services Connect 418 300

23-Mar-09 DATE

23-Mar-09 DXtE

(UJ

74

12. Services Retired (360) (203) 3,721

23,246 23,343 107

(J:::xclude Seasonal) 4,742 4,742 {5 +ti+ 7) 3,902 REA Fi:>rm "/ (Rev. 8-94) This is a computer generated facsimile.

Paa• 1 of 7 Paa••

V

(OJ

74

3,733

108

3,915

FINANCIAL AND STATISTICAL REPORT

BORROWER DESIGNATION NEW MEXICO 22 l\,lcKinley

1. Total Utility Plant In Service................................... Memberships.......................................................... 84,335

~: ~i1~~~~i~l~l:~1'::'n~r~ I~~).~~~~.~-~_'_'_'.".'.".'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.".' ~~~~;f~: ~=i~~~~·:··p~j~·~·y;~~~·--.-:.-:::::::::::::::::::::::-.............. ....,....,......-1 ---,.....,.....,....,.....,..,..-1

4. Ac1:um. Provision for Depreciation & Amort .......... ___ __::.:..:;:_;_:.!.::=..::-133_ Operating Margins - Current Year ........................ _ __;::;.::.:.;;.:.:..;:..;.::...i

5. Net Utility Plant (3 • 4)............................................ 34. Non Operating Margins......................................... 662,468 6. No,n-Utillty Property (Net)...................................... 35. Other Margins and Equities ................................... . 7. Investments In Subsidiary Companies................... 36. Total Margins & Equities (30 thru 35)................... 31,424,568 8. Invest In Assoc. Org - Patronage Capital.............. 37. Long-Term Debt REA (Net) .................................. .

--------1 9. Invest In Assoc. Org •Other• General Funds...... (Prepayment-Unapplled $._-::--:--:-:-:----L.... ____ -,1 10. Invest In Assoc. Org •Other• Nongeneral Fund! 38. Long-Term Debt-REA-Econ. Devel. (Net) ........ . 11. Investments In Economic Development Projects.. 39. Long-Term Debt• Other- REA Guaranteed ... .. 12. Other Investments................................................... 40. Long-Term Debt• Other (Net) ........................... .

13. Special Funds......................................................... 1. Total Long-Term Debt (37 thru 40) ...................... _ __;:.:.;:;::.::.::..:.::.:...,i

1 14. Total Other Property & Investments (6 thru 13)... 2. Obligations Under Capital Leases ........................ . 15. Cash· General Funds.......................................... 3. Accumulated Operating Provisions .................... .. 16. Cash• Construction Funds• Trustee................. 44. Total Other Noncurrent Liabilities (42 + 43) ...... .. 17. Special Deposits.................................................... 45. Notes Payable ........................................................ .

18. Temporary Investments......................................... 46. Accounts Payable ................................................. .. 19. Notes Receivable (Net).......................................... 47. Consumers Deposits ............................................ . 20. Accounts Receivable Sales of Energy (Net)........ 48. Other Current and Accrued Liabilities ................ .

21. Accounts Receivable - Other (Net)...................... 49. Total Current & Accrued Liabilities (45 thru 48) .. _~.:.;:..:~--11 22. Materials and Supplies • Electric and Other........ 50. Deferred Credits .................................................... . -------1 23. Prnpayments.......................................................... 51. Accumulated Deferred Income Taxes .......... _. _____ ~ :24. Other Current and Accrued Assets...................... 52. Total Liabilities & Other Credits .25. Total Current and Accrued Assets (15 thru 24)... (38 + 41 + 44 + 49 thru 51) 55,462,935 26. Re•i;aulatory Assets................................................. ESTIMATED CONTRIBUTIONS IN AJD OF CONSTRUCTION 27. Other Deferred Debits 53. Balance Beginning of Year.................................... 16,897,330 28. Ac,:umulated Deferred Income Taxes................... 54. Amounts Received This Year (Net) ..................... .. 29. Total Assets and Other Debits (5+14+25 thru 2s: 55. Total Contributions in Aid of Construction ........ .

THE SPACE BELOW IS PROVIDED FOR IMPORTANT NOTES REGARDING THE FINANCIAL STATEMENT CONTAINED IN THIS REPORT. REPOR1r ITEMS CONTAINED IN THE INSTRUCTIONS AND ADDITIONAL MATERIAL ITEMS. (A SEPARA Tl: SHEET MAY BE USED IF ADDITIONAL SPACE IS NEEDED.)

Estlmah1d Unbllled Revenue Not Recorded on Line 20:

Deferrecl Compensation Payable at Market Value:

Other Lcing T,mn Debt-CFC

Advance, Payment-RUS

Related Party:: Continental Divide Electric Education Foundation was formed In 1988. The Foundation ls funded through unclaimed capital credits and was established to provide scholarships to members or their dependents.

Line 26 Regulatory Assets of $9,250,581 booked In July 2000 as a rate buy down after completion of the Plains and Trl•State G& T merger. with RUS and State Commission approval .

This is a computer generated facsimile.

Page 2 of7 P•1••

2,874,368

290,700

1,757,767

4,028,986

OPERA TING REVENUES

Cost of Power Purchased Transmission Expense Distribution Exp-Operations Distribution Exp-Maintenance Consumer Accounting Expense Consumer Service & Inform. Exp Sales Expense Administration Expense

TOTAL OPER. & MAINT. EXP Depreciation & Amortization Tax Expense-Property Tax expense-Other Interest on Long Term Debt Interest Expense Other Other Deductions TOTAL COST OF ELEC. SERV.

PATRONAGE CAP. & OPER. MARG

Non-Operating margins-Interest

Non-Operating margins-Other

G & T Capital Credits

Other Capital Credits

Extraordinary Items

PATR. CAP. OR MARGINS

LASTn:AR

ACTUAL

MONTH

3,223,861

2,627,953 2,165

(171,245) 64,208

113,914 9,497 4,831

99,385

2,750,708 132,644

48,863 1,878

713 2,934,806

289,055 112,194

(110)

401,139

CONTINENTAL DIVIDE ELECTRIC COOPERATIVE INC. FOR THE PERIOD ENDED DECEMBER 31 2008

DECEMBER 31 2008 AUDITED FINANCIALS

MONTHLY COMPARISON

CURR~:NT YEAR

ACTUAL

MONTH

3,288,471

2,223,857 717

96,413 78,117

147,266 10,527 7,896

115,873

2,680,666 130,660

52,568 10,705

639 2,875,238

413,233 50,715

677 3,985,324

3,392

4,4

BUDGET

CURRENT

MONTH

3,780,950

2,978,000 1,065

155,848 84,946

107,362 15,383 2,750

162,651

3,508,005 143,500

68,000 1,000

750 3,721,255

59,695 52,650

3,000

115,345

LAST VEAR

YTD December 31, 2007

40,287,010

31,527,279 32,394

1,255,874 947,894

1,203,109 154,056 45,389

1,560,438

36,726,433 1,518,307

801,866 23,199

9,263 39,079,068

1,207,942 975,897

10,800

35,341

2,

YEAR TO DATE COMPARISON

CURRENT Vl.:AR

YTD

December 31, 2008

42,588,007

33,252,170 17,845

1,800,525 991,457

1,267,326 213,410

33,400 1,708,088

39,284,221 1,540,355

756,807 25,291 11,164

41,617,838

970,169 651,928 10,539

3,985,324 45,350

5,663,310

BUDGET

YfD

December 31, 2008

45,693,400

35,679,000 272,780

1,870,182 1,019,352 1,288,341

184,600 33,000

1,951,643

42,298,898 1,722,000

816,000 17,000

9,000 44,862,898

1,

830,500 628,500

5,000

36,000

Paa• 3 of 7 P••••

KWH PURCHASES

KWH SOLD

OFFICE USE

TOTAL UNACCOUNTED FOR

AVERAGE. LINE LOSS

KWH SOLD TO 4 LARGE POWER

LINE LOSS W/OUT 4 LG POWER

NUMBER RECEIVING BILLS

TOTAL MILES ENERGIZED

LAST YEAR ACTUAL MONTH

52,556,813 45,491,241

41,192 7,024,380

-13.37% 21,990,929

-22.98% 23,246

3,899

CONTINENTAL DIVIDE ELECTRIC COOPERATIVE, INC. FOR THE PERIOD ENDING DECEMBER 31 2008

- -

DECEMBER 31 2008 AUDITED FINANCIALS

MONTHLY COMPARISON

CURRENT YEAf BUDGET ACTUAL CURRENT MONTH MONTH

42,855,490 51,105,784 45,808,341 47,194,662

43,285 51,300 (2,996,136) 3,859,822

6.99% -7.55% 11,727,064 22,000,000

9.63% -13.26% 23,343 23,300 3,915 3,904

LAST YEAR YTD

December 31, 200

565,420,546 545,602,082

399,722 19,418,742

-3.43%

YEAR-TO-DATE COMPARISON

CURRENT YEAR YTD

December 31,

529,844,048 515,296,833

379,525 14,167,690

-2.67% 217,711,170

-4.54% 23,343

3,915

BUDGET YTD

December 31, 2008

584,740,362 562,450,166

400,250 21,889,946

-3.74% 263,566,800

-6.82% 23,300

3,904

P•a• 4 of 7 P•a••

CONTINENTAL DIVIDE ELECTRIC CO-OP INC. FOR THE MONTH AND YEAR TO DATE DEC 31, 2008

DECEMBER 31 2008 AUDITED FINANCIALS

DEC,2008 DEC, 2007 VARIANCE INC/DEC YTD DEC2008 YTDDEC2007 VARIANO: INC/DEC

RESIDENTIAL $1,191,801 $1,150,076 $41,725 3.6280% $14,094,066 $13,056,909 Sl,037,IS7 7.9434% SMALL COMM. $362,779 $411,576 ($48,797) -H.8561% $4,618,284 $4,469,307 $148,977 3.3333% LARGE POWER $534,229 $508,185 $26,044 5.1249% $6,455,478 $5,839,252 $616,226 10.5532%

McKinley PAPER $576,233 $569,461 $6,772 1.1892%, $7,385,745 $6,822,344 $563,401 8.2582%

GIANT $260,149 $258,361 $1,788 0.6921% $3,133,852 $2,761,473 $372,379 13.4848%

PARAGON $223,786 $2ll,258 $12,528 5.9302% $2,169,819 $3,363,125 ($1,193,306) -35.4821%

NTUA $156,261 $156,262 (SI) -0.0006"/o $1,690,457 Sl,508,653 $181,804 12.0507%

ST. LIGHTS $16,047 $15,544 $503 3.2360% $196,211 $177,812 $18,399 10.3474%

MISCELLANEOUS ($233,955) ($291,756) $57,801 -19.8114% $160,762 ($18,464) $179,226 -970.6781%

SUB-TOTAL $3,087,330 $2,988,967 $98,363 3.2909% $39,904,674 $37,980,411 Sl,924,263 5.0665%

PASS-THRU REV $201,141 $234,894 ($33,753) -14.3695% $2,683,332 $2,306,599 $376,733 16.3328%

TOTAL REVENUE $3,288,471 $3,223,861 $64,610 2.0041% $42,588,006 $40,287,010 $2,300,996 5.7115%

KWII SALES

DEC,2008 DEC, 2007 VARIANCE INC/DEC YTD DEC 2008 YTDDEC2007 VARIANCE INC/DEC

RESIDENTIAL 11,313,138 10,433,863 879,275 8.4271 111/o 131,155,905 131,262,949 (107,044) -0.0815"/o SMALL COMM. 4,095,733 4,644,215 (548,482) -1L8100'll/o 52,406,035 55,216,895 (2,810,860) -5.0906% LARGE POWER 13,219,260 8,232,808 4,986,452 60.5681% 106,683,375 98,403,590 8,279,785 8.4141"/o McKinley PAPER 5,479,050 10,479,0S0 (S,000,000) -47.7142% 114,693,473 124,026,S70 (9,333,097) -7.S2S1% GIANT 4,837,118 4,837,118 0 0.0000% SI,608,67S 48,624,471 2,984,204 6.1372% PARAGON 3,619,SSS 3,619,SSS 0 0.0000% 26,664,932 58,368,009 (31,703,077) -54.31S8% NTUA 3,111,333 3,111,333 0 0.0000% 30,479,925 28,108,408 2,371,Sl7 8.4370'/o ST.LIGHTS 133,154 133,299 (145) -0.1088% 1,604,Sl3 1,591,190 13,323 0.8373%

TOTAL 451808,341 4524911241 317,100 0.69710/o 51512961833 S4S16021082 po1Jos1249i -S.S54S¾

Paa• II of 7 Pa9N

USDA-REA BORROWER DESIGNATION

New Mexico 22 MCKINLEY FINANCIAL AND STATISTICAL REPORT PERIOD ENDING REA USE ONLY

INSTRUCTIONS· See REA Bulletin 1717B-2 12/31/08 PART R. POWER REQUIRI

.:iALl:..:1

CI.AS51FICATION AND JANUARY FEBRUARY MARCH APRIL MAY JUNE REVENUE (a) (b) (C) (d) (e) (t)

a. No. Served 20,150 20,180 20,179 20,149 20,191 20,186 1. Residential Sales b. KWH Sold 13,594,307 14,345,394 13,818,959 11,055,293 12,782,874 7,672,528 (,9xc/uding seasonal c. Revenue 1,377,790 1,456,705 1,400,400 1,189,613 1,329,337 918,192

a. No. Served 2. Residential Sales b. KWH Sold

Seasonal c. Revenue

a. No. Served 3. Irrigation Sales b. KWH Sold

c. Revenue

a. No. Served 3,096 3,097 3,096 3,092 3,103 3,105 4. Comm. and Ind. b. KWH Sold 11,558,651 11,886,882 11,127,061 14,797,640 7,666,918 11,758,498 1000 kVA or Less c. Revenue 1,045,187 1,075,334 1,004,695 1,284,292 764,391 1,072,413

a. No. Served 10 10 10 10 10 10 5. Comm. and Ind. b. KWH Sold 18,242,746 17,908,715 15,996,297 18,351,440 20,743,988 18,556,183 Over ilOOO kVA c. Revenue 1,250,538 1,229,488 1,023,500 1,263,028 1,313,234 1,221,585

a. No. Served 3 3 3 3 3 3 b. KWH Sold 133,604 134,594 134,215 134,325 134,159 134,083

Hi(lhway Lighting c. Revenue 15,570 20,031 17,818 15,760 15,755 15,790 a. No. Served

7. OthEir Sales to b. KWH Sold Public Auth. c. Revenue

a. No. Served 1 1 1 I 1 1 ' 8. Sales for Resales- b. KWH Sold 3,505,896 2,967,050 2,714,970 2,722,235 2,255,906 2,274,659

REA Borrowers c. Revenue 185,628 148,656 151,473 122,833 116,870 121,279 a. No. Served

9. Sales for Resales b. KWH Sold Other c. Revenue

10. TOTAL No. Consumers (lines 1 a-9a) 23,260 23,291 23,289 23,255 23,308 23,305

11 .. TOTAL KWH Sold (lines 1b-9b) 47,035,204 47,242,635 43,791,502 47,060,933 43,583,845 40,395,951

12. TOTAL Revenue Received From 3,874,713 3,930,214 3,597,886 3,875,526 3,539,587 3,349,259 Sales of Electric Energy (lines 1c-9c)

13. Oth1~r Electric Revenue 29,659 32,949 68,837 41,362 37,525 36,459

14. KWH- Own Use 65,371 33,425 33,047 34,395 19,004 20,570

15. TOTAL KWH Purchased 52,078,211 47,239,476 44,052,904 43,795,646 45,433,538 42,965,991 _ .. __ 16. TOTAL KWH Generated --17. Cost of Purchases and Generation 3,170,292 3,189,771 2,875,134 3,162,391 2,815,807 2,667,555 ---18. Interchange• KWH - Net W'Peiiik-::sum 1"111 11.vv inpui \MeiereoJ Kt.Vl~.t.U lU

....._.[?22( ] Non-Coincident 93,974.00 91,835.00 85,022.00 81,283.00 79,697.00 81,665.00 REAFc1rm 7 (Rev. 6-94) This is a computer generated facsimile.

Page 6 of 7 P•a••

BORROWER DESIGNATION

New Mexico 22 MCKINLEY FINANCIAL AND STATISTICAL REPOF PERIOD ENDING REA USE ONLY

INSTRUCTIONS See REA Bulletin 17178-2 12/31/08 PART R. POWER REQUIRE! ] (Continued)

(SEE PRECEDING PAGE 6 OF REA FORM 7 FOR HEADINGS OF LINE ITEM NUMBERS BELOW.)

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL ,_. (g) (h) (i) (j) {k) (I) (Golumns c - I)

20,168 20,180 20,172 20,173 20,163 20,193 9,689,852 9,420,470 9,654,468 9,687,923 10,166,016 11,537,478 133,425,562 1,098,728 1,052,933 1,065,239 1,060,148 1,103,460 1,208,108 14,260,653

3,099 3,112 3,116 3,124 3,122 3,136 ll,'645,193 11,680,408 11,487,606 11,277,514 8,659,269 10,815,193 134,360,833 1,055,483 1,069,526 1,072,934 997,660 1,019,130 985,283 12,446,328

10 10 10 IO 10 IO 19,:591,760 18,243,085 15,579,271 16,083,034 15,918,298 20,211,183 215,426,000

1~,08,802 1,134,201 997,405 1,017,027 918,059 1,156,727 13,833,594 3 3 3 3 3 3

:133,599 133,447 132,591 133,371 133,371 133,154 1,604,513 15,760 15,850 15,830 15,971 16,029 16,047 196,211

1 1 1 1 1 1 2,427,880 2,314,562 1,949,221 2,079,760 2,156,453 3,111,333 30,479,925

151,339 129,718 133,343 130,944 142,114 156,261 1,690,458

23,281 23,306 23,302 23,311 23,299 23,343

43,488,284 : 41,791,972 38,803,157 39,261,602 37,033,407 45,808,341 515,296,833

3,630,112 .1 3,402,228 3,284,751 3,221,750 3,198,792 3,522,426 42,427,244

37,982 8,147 29,274 39,029 33,494 (233,955) 160,762

21,851 . 21,619 20,363 22,979 43,616 43,285 379,525

_ 45,5;28,841 44,629,040 39,064,854 41,498,335 40,701,722 42,855,490 529,844,048

--2,908,695 2,668,419 2,540,027 2,531,241 2,498,981 2,223,857 33,252,170

_ 80,630.00 78,068.00 68,138.00 71,566.00 74,624.00 85,853.00 972,355.00 REA Form 7 (Rev. 6-94) This is a computer generated facsimile.

Page 7 of 7 Pages