kit carson electric cooperative,...kit carson electric cooperative, a touchstone energy®...

KIT CARSON ELECTRIC COOPERATIVE,A Touchstone Energy® Cooperative

The. power of human connections®

(575) 758-2258 ¯ (800) 688-6780 ° Fax: (575) 758-4890 or (575) 758-4611 ¯www.kitcarson.com

118 Cruz Alta Road ° P.O. Box 578 ¯ Taos, New Mexico 87571-0578

August 7, 2019

FILED IN OFFICE OF

~UG - 9,2018

Ms. Melanie SandovalNew Mexico Public Regulation CommissionPO Box 1269Santa Fe, NM 87504-1269

RE: 2018 Annual Report

To Whom It May Concern:

Enclosed please find the following:1. Annual Report - Year ended December 31, 2018.2. Rule 510.12 filing.3. RUS Form 7 for year ended December 31, 2018. Consolidated Post-Audit

If you should have any questions or need additional information, please call me at (505)758-2258.

Johnny ValerioCFO

Robert BresnahanCristobal DuranBruce JassmannVirgil Martinez

BOARD OF TRUSTEESAmbrose Mascarefias Jerry Smith

Manuel Medina David TorresBobby R. Ortega Luisa Valerio-MyletArthur Ro&irte

John F. McCarthy, Jr.Corporate Attorney Luis A. Reyes, Jr.

Chief Executive Officer

RURAL ELECTRIC COOPERATIVES

ANNUAL REPORT

OF

Kit Carson Electric Cooperative Inc.

(Exact Legal Name of Respondent)

TO THE

NEW.MEXICO

PUBLIC ~GULATION COMMISSION

FOR THE

YEAR ENDED DECEMBER 31, 20! _~

Kit Carson ElectricRule 510.12 FilingYear - 2018 2018 2017

A:

B:C:D:

E:

F:

G:H:I:

J:

K:L:

Revenues:Earnings:Return on EquityAmount of DebtAverage Cost of DebtCapital Structure:Equity:Debt:Generation Plant In-ServiceTransmission Plant In ServiceDistribution Plant In ServiceOperation & Maint. Expense:Cost of Purchased PowerTransmission ExpenseDistribution Expense-OperationDistribution Expense- MaintenanceConsumer Accounts ExpenseCustomer Service & InformationAmin. & Gen’l Expense

Total Operation & Maintenance ExpDeferred Tax ReservesPeak DemandNet Energy Sales ( kwh )

44,973,041 42,818,681278,257 (389,497)

0.65% 1.44%114,908,920 87,812,636

3.79% 3.81%

27,774,106 27,292,549114,908,920 87,812,636

5,014,536 5,014,53614,363,863 14,363,863

114,376,970 108,193,386

19,832,936 18,486,20889,679 78,914

2,280,375 3,153,2741,739,584 1,615,9022,216,590 2,072,043

12,847 23,3763,377,850 3,263,941

29,549,861 28,693,658

62,121 56,842263,931,221 261,229,893

Kit Carson ElectricSchedule of LT DebtYear 2018

Long Term DebtRUS ElectricRUS Advance Pmt8us Cmd Center Loan8us BroadBand Loan

LTD RUS - FFB

CoBank - CrebsCoBank - Merger LoanCoBank - Line of CreditCoBank - New (8 Mill )CoBankTotal Cobank

NRUCFC

A B C DPart N Form 7 Part N Form 7 Part N Form 7 Part N Form 7

12/31/2018 12/31/2018 12/31/2018 12/31/2018 12/31/2018 12/31/2018Loan Balance Current Maturities Net Amt Interest Pmt Principal Pmt Total Pmts

33,652,985.05 901,053.00 32,751,932.05 1,366,698.86 862,174.08 2,228,872.94

1,743,729.20 48,480.00 1,695,249.20 72,971.72 46,512.28 119,484.0014,851,844.53 973,242.00 13,878,602.53 431,250.25 936,064.84 1,367,315.0950,248,558.78 1,922,775.00 48,325,783.78 1,870,920.83 1,844,751.20 3,715,672;03

29,626,564.37 519,345.00 29,107,219.37 740,076.06 591,275.98 1,331,352.04

1,666,666.67 333,333.00 1,333,333.67 7,727.22 333,333.33 341,060.554,855,036.84 207,329.00 4,647,707.84 248,085.69 197,237.43 445,323.12

385,662.65 385,662.658,000,000.00 248,753.00 7,751,247.00

18,989,726.98 1,546,961.00 17,442,765.98 841,665.69 1,679,244.91 2,520,910.6033,511,430.49 2,336,376.00 31,175,054.49 1,483,141.25 2,209,815.67 3,692,956.92

17,296.56 17,296.56

113,386,553.64 4,778,496.00 108,608,057.64 4,111,434.70 4,645,842.85 8,757,277.55Total Form7 Line 50 8S

LeasesFCI.- Electric 418,272.08 107,369.00 310,903.08 19,935.29 129,296.52 149,231.81Altec-Lease 396,016.40 84,879.00 311,137.40 73,525.00 73,525.00FCL - KC Telecom 215,295.56 50,070.00 165,225.56 13,022.06 40,861.13 53,883.19FCL - KC Telecom 415,245.15 106,796.00 308,449.15 18,555.86 33,609.13 52,164.99FCL- KC Energy 77,536.78 37,000.00 40,536.78 1,827.72 61,265.35 63,093.07Total Form7 Line 52 8S 1,522,365.97 386,114.00 1,136,251.97 53,340.93 338,557.13 391,898.06

Total LTD 114,908,919.61 5,164,610.00 109,744,309.61 4,164,775.63 4,984,399.98 9,149,175~61

Broadband Loan (14,851,844.53) (973,242.00) (13,878,602.53) (431,250.25) (936,064.84) (1,367,315.09)FCL- KC Energy (77,536.78) (37,000.00) (40,536.78) (1,827.72) (61,265.35) (63,093.07)FCL- Telecom (215,295.56) (50,070.00) (165,225.56) (13,022.06) (40,861.13) (53,883.19)FCL- Telecom (415,245.15) (106,796.00) (308,449.15) (18,555.86) (33,609.13) (52,164.99)

Net Electric Debt 99,348,997.59 3,997,502.00 95,351,495.59 3,700,119.74 3,912,599.53 7,612,719.27

Kit Carson Electric CooperativeRUS Mortgage NotesFor The Year Ended December 31,2018

Note Date of Interest PrincipalNumber Note Rate Amount

RET-9-1 05/01/07 4.98%RET-9~2 05/01/07 4.72%RET-9-3 05/01/07 4.26%RET-9-4 05/01/07 4.22%RET-9-5 05/01/07 4.61%RET-9-6 05/01/07 4.60%RET-9-7 05/01/07 3.15%RET-9-8 05/01/07 2.94%RET-9-9 05/01/07 2.75%RET-9-10 05/01/07 2.77%

Amount Principal NetUnadvanced Repaymen~ Obliga~on

December 20184,400,000 664,579 3,735,4213,500,000 541,742 2,958,2585,000,000 829,964 4,170,0365,000,000 806,954 4,193,0462,900,000 424,312 2,475,6885,000,000 691,186 4,308,8145,000,000 754,997 4,245,0033,963,000 571,418 3,391,5824,608,000 676,973 3,931,027

286,000 41,890 244,110

Total RUS

_.~.e~_d_ _e .r.a.I _F.!n an ci ng BankFFB-I-1 02/28/14 3.430% 2,800,000 178,200 2,621,800FFB-1-2 01/27/15 2.311% 5,000,000 384,104 4,615,896FFB-1-3 12/29/15 2.785% 8,000,000 494,647 7,505,353FFB-1-4 10/28/16 2.412% 3,200,000 145,855 3,054,145FFB-1-5 12/02116 2.963% 1,100,000 43,268 1,056,732FFB-1-6 12/30/16 2.962% 725,000 30,021 694,979FFB-1-7 12/30/16 2.962% 1,950,000 80,746 1,869,254FFB-1-8 06/06117 2.690% 1,350,000 42,358 1,307,642FFB-1-9 06/22/18 3.087% 3,640,115 36,218 3,603,897

FFB-I-10 06/22/18 3.087% 3,330,000 33,133 3,296,867

Total FFB 31,095,115 1,468,550 29,626,565

Command Center LoanNote Date ofNumber Note ~

5100 Jan 2008

RUS Mortgage NotesFor The Year December 31,2018

Interest Principal Deferred Principal NetRate Amount Interest Repayments Obligation

December 2018

RUS Broadband LoansBBL 1-1 2.731% 223,780 66,083 157,697BBL 1-2 2.580% 113,987 30,915 83,072BBL 1-3 2.768% 80,778 21,615 59,163BBL 1-4 2.496% 99,632 27,184 72,448BBL 1-5 2.106% 6,065 1,681 4,384BBL 1-6 2.327% 36,789 10,159 26,630BBL 1-7 2.385% 1,247,947 343,178 904,769BBL 1-8 2,400% 2,569,411 699,283 1,870,128BBL 1-9 2.500% 1,155,813 309,483 846,330BBL 1-10 3.478% 760,291 174,906 585,385BBL 1-11 3.161% 2,200,076 506,491 1,693,585BBL 1-12 3.370% 766,426 171,727 594,699BBL 1-13 3.178% 845,230 182,877 662,353BBL 1-14 3.003% 1,336,249 281,388 1,054,861BBL 1-15 3.055% 1,242,817 257,227 985,590BBL t-16 2.686% 308,631 62,802 245,829BBL 1-17 1.949% 939,984 192,133 747,851BBL 1-18 2.588% 3,852,448 702,864 3,149,584BBL 1-19 2.426% 867,841 151,323 716,518BBL 1-20 2.508% 470,977 79,990 390,987

Total Bmadband

Grand Total RUS

s 4,273 3o9 $ 14,851,863

NoteNumber

Date ofNote

Kit Carson Electric CooperativeCoBank Mortgage NotesFor The Year December 31,2018

Interest Principal Deferred Principal NetRate Amount Interest Repayments Obligation

40205402114022940236

173791233451

CREBS140794

08/10/8508/22/8612/01/8909/30/9305/28/1005/31/13

12/05/18

03/10/08

2.927% 1,281,000 1,151,178 129,8223.097% 2,902,000 2,453,182 448,8183.568% 1,207,000 835,723 371,2773.928% 1,383,000 948,025 434,975

4.73% 6,821,373 5,636,187 1,185,1864.272% 25,849,768 4,575,084 21,274,6845:127% 8,000,000 8,000,000

0.42% 5,000,000 3,333,333 1,666,667

TotalCoBank

’ELECTRIC OPERATION AND MAINTENANCE EXPENSES

Page1

1. Enterinthe space provided the operation and maintenanceexpenses forthe year.

Line Account~.~.~. ............................. (a)

4 ’ 500~_~peration supewision and engineering5 501. Fuel

7 ~ 503~Steam from other sources8 504~Steam Transfered -Cr

.....~ ...... ’:.5~_~le~t~_~E~e~.~_~ ....................................................................................],9 _~.~. 5._ 0~M scellaneous stea~.p9..~.~[_~_~9.~_~.~ ......................................

11 ~ 507Rents~t.~.9~t..gq ...................................................................................................

13 ~ MAINTENANCE14 510 Ma ntenance su~ew s on and engineering

................15~; 511~ Maintenance of Structures" .................................................................................................................~ ~ _~ 5~ M..~i_~t.~,~,~.n~_.~.o_~ B_~gi_~e.~..~la__n~.~" .................................................

5]~,~.~.a~nt__~n_~ ~e__9~ El__~e,~[icpl_~n..~ ....................................................18 ’, 514 Maintenance of miscellaneous steam plant

-~~~~ ............... ............. ~~inten~ .........................................................’. ........................~.t~.!..,~9~.e_r production expense-steam ~_e

21 NUCLEAR POWER GENE~TION .

24 518 Fuel

26 520 Steam E~ense27 521 Steam from other sources28 ¯ 522 Steam Transfered-Cr29 523, Electric Expenses

31 525’ Rents..... ~} ;. ............~ ............~O~i-sp~~i0~ .....................................................

35 ; 529Maintenance of Structures

38 ’ 532 ~ Maintenance of miscellaneous nuclearplant

40 " ~ Total power ~roduction e~.pense-nuclear ~ower

47 539 Miscellaneous hydrau c power generation expense48 540 Rents

51 541 Maintenance supe~ision and engineering52 542 Maintenance of Structures

2. If the increases and decrreases are not derived from pre-viously reported figures explain in footnotes.

Increase or decreaseAmount for year from preceeding year

(b) (c)

000000

LineNo. 1

2

78~91

10’

14

1617

192021222a2425262728293031323334353637383940414243444546474849505152535455

ELECTRIC OPERATION AND MAINTENANCE EXPENSESPage 2

Account(a)

HYDRAULIC POWER GENERATION (Continued)543 Maintenance of reservoirs, dams and waterways544 Maintenance electric plant545 Maintenance of miscellaneous hydraulic plant

Total maintenanceTotal power producton expenses-hydraulic power

OTHER POWER GENERATIONOPERATION546 Operation supervision and engineering547 Fuel548 Generation Expense549 Miscellaneous other power generation expenses550 Rents

Total operationMAINTENANCE551 Maintenance supervision and engineering552 Maintenance of stuctures553 Maintenance of generating and electdc plant554 Maintenance of miscelaneous other power generation plant

Total maintenanceTotal power producton expenses-other power

OTHER POWER SUPPLY EXPENSES555 Purchased power556 System control and load dispatching557 Other expenses

Total other power supply expensesTotal power producton expenses

TRANSMISSION EXPENSESOPERATION560 Operation supervison and engineering561 Load Dispatching562 Station Expense563 Overhead line expense564 Underground line expense565 Transmission of electricity by others566 Miscellaneous transmission expenses567 Rents

Total operationMAINTENANCE568 Maintenance supervision and engineering569 Maintenance of stuctures570 Maintenance of station equipment571 Maintenance of overhead lines572 Maintenance of underground lines573 Maintenance of miscellaneous transmission plant

Total maintenanceTotal Transmission expenses

DISTRIBUTION EXPENSESOPERATIONi580 Operation supervison and engineering581 Load Dispatching582 Station Expense583 Overhead line expense!584 Underground line expense585 Straed lighting and signal system expenses

(b)

Increase or decrease

from preceeding year

19,095

19,095

10,613

10,613

19,095

19,832,936

19,832,93619,832,936

10,613

1,346,728

1,346,7281,346,728

70,584 152

70,584 152

0

0 070,584 152

272,867

461,325606,442208,322

18,741

(14,898)0

(21,696)(98,992)

(331,106)34

LineNo.

123456789

10111213141516

ELECTRIC OPERATION AND MAINTENANCE EXPENSES Page 3

17181920

2324i252627282930

32

34353637

39404142434445464748

511525354

Account(a)

DISTRIBUTION EXPENSES (Continued)586 Meter expenses587 Customer installation expenses588 Miscellaneous distribution expenses589 Rents

Total OperationMaintenance

590 Maintenance supervision and engineering591 Maintenance of stuctures592 Maintenance of station equipment593 Maintenance of overhead lines594 Maintenance of underground lines595 Maintenance of line transformers596 Maintenance of street lighting and signal systems597 Maintenance of meters598 Maintenance of miscellaneous distribution plant

Total maintenanceTotal distribution expenses

CUSTOMER ACCOUNTS EXPENSESOperation

901 Supervision902 Meter reading expenses903 Customer records and collection expenses904 Uncollectible accounts905 Miscellaneous customer accounts expenses

Total customer accounts expensesSALES EXPENSES

Operation911 Supervision912 Demonstrating and selling expenses913 Advertising expenses914 Revenues from merchandising, jobbing, and contract work915 Cost and expenses of merchandising, jobbing, and contract work916 Miscellaneous sales expenses

Total sales expensesADMINISTRATIVE AND GENERAL EXPENSES

(b)

137,509

573,1701,999

2,280,375

38,9631,239,981

384,727

75,913

1,739,5844,019,959

465,1041,582,823

144,00037,511

2,229,438

Increase or decreasefrom preceeding year

(385,379)

(68,177)(4,664)

(924,878)

(7,092)124,303

(7,484)

13,955

123,682(801,196)

48,247110,037(13,000)(11,266)134,018

Operation920 Administrative and general salaries921 Office suplies and expenses922 Administrative expenses transferred-Cr923 Outsids services employed924 Property insurance925 Injudes and damages926 Employee pensions and benefits927 Franchise requirements928 rugulatory commission expenses929 Dupicate charges-Cr930 Miscellaneous general expenses931 Rents

Total operationMaintenance

935 Maintenance of general plantTotal administrative and general expensesTotal Electric Operation and Maintenance Expenses

1,312,590549,508

439,2440

3,33917,287

225,994

527,5860

3,075,548

302,3023,377,850

29,549,862

31,576(3,997)

5,9390

(399)17,164

14,745

(40,749)0

24,279

58,95483,233

773,5480

ELECTRIC OPERATION AND MAINTENANCE EXPENSES = Page 4SUMMARY OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES

Line Functional Classification Operation Maintenance TotalNo. (a) (b) (c) (d)

1234567i89

1011121314

Power Production ExpensesElectric Generation:

Steam powerNuclear powerHydraulic powerOther power

Other Power supply expensesTotal power production expenses

Transmission ExpensesDistribution ExpensesCustomer Accounts ExpensesSales ExpensesAdm. and General Expenses

19,09519,832,93619,852,031

70,5842,280,3752,229,438

03,377,850

Total Electric Operation and Maintenance Expenses 27,810,278

NUMBER OF ELECTRIC DEPARTMENT EMPLOYEES

01,739,584

1,739,584

0

19,09519,832,93619,852,031

70,5844,019,9592,229,438

03,377,850

29,549,862

Number of electric department employees, payroll period ending1. Total regular full-time employees2. Total part-time and temporary employees

12/31/2018885

3. Total employees 93

The data on number of employees should be reported for thepayroll period ending nearest to October 31, or any payrollperiod ending 60 days before or after October 31.

If the resopondent’s payrolls for the reported period includeany special construction forces include such employees as part-time and temporary employees and show the number of such

special construction employees so includedThe number of employees assignable to the electric depart-

ment from joint functons of combination utilities may be de-termined by estimate, on the basis of employee equivalents.Show the extimated number of equivalent employees attributedto the electric department from joint functions.

4

CONSTRUCTION OVERHEADS- ELECTRICRevised

1 Report below the information called for concerning con-struction overheads for the year.

2 List in column (a) the kinds of overheads according to thetitles used by the respondent. Charges for outside professional ser-vices for engineering fees and management of supervision fees capi-talized should be shown as separate items.

3 On the lower section of this schedule furnish the requestedexplanatory information concerning constructon overheads.

4 A respondent should not report "none" to this schedule if

no overhead apportionments are made, but rather should explain onthe lower section of this schedule that on such engineering, super-

visor, and adminstrative costs, etc., which are directly chargeableconstruction are charged to construction, if this is the case. Engi-

neering, supervision, administrative, and interest costs, etc.., which

are first assigned to a blanket work order and then prorated to con-

struction jobs shall be considered overheads for the purpose of

formulating a response to this schedule.

Name of Overhead Total overheads cleared Cost of construction to which Percent overheads toLine to construction overheads were charged (ex. construction costs

clusive of overhead charges)No. (a) (b) (c) (d)

123456

819

1011121314

StoresTransportatonTaxesInsurance/other BenefitsIndirect Labor / Engineering

Total

162,864 LABOR;99,332 $296,21526,336 MATERIAL:

148,917 $540,821456,000

893,449 837,036GENERAL DESCRIPTION OF CONSTRUCTION OVERHEAD PROCEDURE

0107%

1. For each construction overhead for electric plant explain(a) nature of the engineering, supervisiory, or administrative work,etc., the overhead charges are intended to cover. (b) the generalprocedure for determining the amount capitalized. (c) the methodof distribution to construction jobs. (d) percentages applied to dif-ferent types of construction. (e) basis of differentiation in percent-ages for different types of construction, and ( f ) amounts capital-ized for each overhead for the year for which this report is sub-mitted.

2. In additon to other information concerning engineering andsuperintendence or other such oveheads, explain whether theamounts treated as overheads include all engineering and super-intendence costs or only such portions as are not directly charge-able to specific jobs.3. For interest during construction state the interest rate used.The basic charges to which applied, in addition to the amountscapitalized for the year for which this report is submitted.

6

ELECTRIC DISTRUBUTION METERS AND LINE TRANSFORMERS

1 Report below the information called for concerning distri-

bution watt-hour meters and line transformers.

2 Watt-hour demand distrubution meters should be included

below but external demand meters should not be included.

3 Show in a footnote the number of distrubution watt-hourmeters or line transformers held by the resppondent under lease

from others, jointly owned with others, or held otherwise than

by reason of sole ownership by the respondent. If 500 or more

meters or line transformers are held under a lease, give name oflessor, date and period of lease and annual rent. It 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, ex-

plain 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 other

party is an associated company.

Line

NO.Item(a)

1 Number at beginning of year2 Additions during the year:3 Purchases4 Associated with utility plant acquired5 Total additions6 Reductions during the year:7 Retirements8 Associated with utility plant sold9 Total reductions

10 Number at end of year11 In Stock12 Locked meters on customers’s premises13 Inactive trasformers on system14 In Customers’s use15 In Company’s use16 Total end of year (as above)

Number of watt-hour

meters

(b)

36,534

2,071

2,071

338

338

38,267

360

37,87235

38,267

Line Transformers

Number

(c)

14,465

241

241

21

21

14,685

94

14,5712O

14,685

Total Capacity (kva)

(d)

7

Customer Class

Number of Customers

Kwh Sales (Thousands)

Gross Revenues

’New Mexico Jurisdictional InformationYear Ending December 31, 2018

Electric Company Name Kit Carson Electric Cooperative, Inc,

Address: PO Box 578 Taos, NM 87571

Phone Number: (505) 758-2258

Person Completing Forn Johnny Valerio, CFO

Residential Other

23,853 4,532

132,839,686 131,091,535

24,272,148 20,332,605

Total

28,385

263,931,221

44,604,753

Avg. Annual Kwh per Customer ( 1 )

Avg. Annual Bill per Customer ( 2 )

Avg. Monthly Bill per Customer ( 3 )

Av9. Gross Revenue per Kwh sold (4)

5,569

$1,018

$85

0.183

28,926

$4,486

$374

0.155

34,495

$5,5O4

$459

0.169

Directions for the completion of ( 1 ), ( 2 ), ( 3 ), ( 4 ):

( 1 ) Divide Kwh sales by number of customers

( 2 ) Divide gross revenues by number of customers

( 3 ) Divide ( 2 ) by 12 months.

( 4 ) Divide gross revenues by Kwh sales.

VERIFICATION

The foregoing report must be verified by the oath of the office having control of the accounting of therespondent. The oath required may be taken before any person authorized to administer an oath by thelaws 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 N~-w M~-Yien

County of Taos

Luis A. Reyes, Jr.(Insert here the name of the afflant.)

makes oath and says that he is Chief Executive Officer(Insert here the offidal title of the affiant.)

of Kit Carson Electric Cooperative, Inc.(Insert here the exa~t 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 ofhis knowledge and belief such books have, during the period covered by the foregoing report, been keptin good faith in accordance with the accounting and other orders of the New Mexico Public RegulationCommission, effective during said period, that has examined the said report, and to the best of hisknowledge and belief the information contained in the said report is, insofar as it relates to matters ofaccount, in accordance with the said books of account; that he believes that all other statements of factcontained in the said report are true, and that the said report is correct statement Of the business andaffairs of the above-named respondent in respect to each and every matter set forth

therein during the period from and including January 1

to and including December 31

Subscribed and sworn to before me, a Notary Public , is and for the State and

County above named, this 7th day of August ...... 201....9

My commission expires April 8, 2020

OFFICIAL SEALCARMELLASUAZO I

NOTARY PUBLICSTATE OF NEW MEXICO

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMBcontrol number. The valid OMB control number for this information collection is 0572-0032. The time required to complete this information collection is estimated to average 15 hours perresponse, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATIONRURAL UTILITIES SERVICE NM0 0 11

FINANCIAL AND OPERATING REPORT PERIOD ENDED December, 2018 (Prepared with Audited Data)

ELECTRIC DISTRIBUTIONBORROWER NAME

Kit Carson Electric Cooperative, Inc.INSTRUCTIONS - See help in the online application.

This information is analyzed and used to determine the submitter’s financial situation and feasibility for loans and guarantees. You are required by contract and applicableregulations to provide the information. The information provided is subject to the Freedom of Information Act (5 U.S.C. 552)

CERTIFICATION

We recognize that statements contained herein concern a matter within the jurisdiction of an agency of the United States and the making of afalse, fictitious or fraudulent statement may render the maker subject to prosecution under Title 18, United States Code Section 1001.

We hereby certify that the entries in this report are in accordance with the accounts and other recordsof the system and reflect the status of the system to the best of our knowledge and belief.

ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, RUS, WAS IN FORCE DURING THE REPORTINGPERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES DURING THE PERIOD COVERED

BY THIS REPORT PURSUANT TO PART 1718 OF 7 CFR CHAPTER XVII(check one of the following)

[] All oftheobligations under the RUS loan documentshave been fulfilled in all material respects.

Luis Reyes 7/19/2019

[] There has been a default in the fulfillment of the obligationsunder the RUS loan documents. Said default(s) is/arespecifically described in Part D of this report.

DATE

ITEM

1. Operating Revenue and Patronage Capital2. Power Production Expense

3. Cost of Purchased Power

4. Transmission Expense5. Regional Market Expense

6. Distribution Expense - Operation7. Distribution Expense - Maintenance

8. Customer Accounts Expense

9. Customer Service and Informational Expense10. Sales Expense11. Administrative and General Expense

12. Total Operation & Maintenance Expense (2 thru 11)13. Depreciation and Amortization Expense

14. Tax Expense - Property & Gross Receipts15. Tax Expense - Other

16. Interest on Long-Term Debt

17. Interest Charged to Construction - Credit[18. Interest Expense - Other

19. Other Deductions20. Total Cost of Electric Service (12 thru 19)

21. Patronage Capital & Operating Margins (1 minus 20)22. Non Operating Margins - Interest23. Allowance for Funds Used During Construction

24. Income (Loss) from Equity Investments

25. Non Operating Margins - Other26. Generation and Transmission Capital Credits

27. Other Capital Credits and Patronage Dividends

!28. Extraordinary Items

[29. Patronage Capital or Margins (21 thru 28)RUS Financial and Operating Report Electric Distribution

PART A. STATEMENT OF OPERATIONSYEAR-TO-DATE

LAST YEAR(a)

42,818,681

18,486,208

70,432

THIS YEAR

44,973,817

19,832,93670,584

BUDGET(~

46,157,497

26,546,302

41,240

THIS MONTH

4,668,993

{3,860,646)5,778

3,161,755 2,299,470 2,038,295 319,285

1,615,901 1,739,584 1,742,120 125,089

2,072,043 2,216,590 2,228,967 199,469

23,376 12,847 122,961 3,592

3,263,941 3,377,850 3,629,131 297,369

28,693,656 29,549,861 36,349,016 (2,910,064)

9,814,601 10,337,838 4,353,877 6,436,544

122,019 122,959 695,400 122,959

16,753 16,352 6,143

3,648,060 3,700,120 3,628,738 280,043

1,167,723 955,538 670 950,776

43,462,812 44,682,668 45,027,701 4,886,401

(644,131) 291,149 1,129,796 (217,408)

24,799 13,182 66,000 2,797

(1,282,293) (472,687)

428,324 446,613

(1,473,301) 278,257 1,195,796

(561,257)

441,712

(334,156)ReasOn Date2014

UNITED STATES DEPARTMENT OF AGRICULTURERURAL UTILITIES SERVICE

FINANCIAL AND OPERATING REPORTELECTRIC DISTRIBUTION

INSTRUCTIONS - See help in the online application.

BORROWERDESIGNATION

NM0011

PERIOD ENDEDDecember, 2018

ITEM

1. New Services Connected

2. Services Retired

3. Total Services in Place

4. Idle Services(Exclude Seasonals )

PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANTYEAR-TO-DATE

LAST YEAR THIS YEAR(a) (t,)

254

54

29,197

45

ASSETS AND OTHER DEBITS1. Total Utility Plant in Service2. Construction Work in Progress3. Total Utility Plant (1 + 2)4. Accum. Provision for Depreciation and Amort.

5. Net Utility. Plant (3 - 4)

6. Non-Utility Property (Net)7. Investments in Subsidiary Companies8. Invest. in Assoc. Org. - Patronage Capital9. Invest. in Assoc. Org. - Other - General Funds10. Invest. in Assoc. Org. - Other - Nongeneml Funds11. Investments in Economic Development Projects12. Other Investments13. Special Funds

Total Other Property & Investments14.(6 thru 13)

Cash - General Funds15.

16. Cash - Construction Funds - Trustee

17. Special Deposits18. Temporary Investments19. Notes Receivable (Net)

20. Accounts Receivable - Sales of Energy (Net)

2 l. Accounts Receivable - Other (Net)22. Renewable Energy Credits

23. Materials and Supplies o Electric & Other

24. Prepayments25. Other Current and Accrued Assets

26. Total Current and Accrued Assets(15 thru 25)

27. Regulatory Assets28. Other Deferred Debits

Total Assets and Other Debits29.(5+14+26 thru 28)

250

46

29,669

45

PART C. BALANCE

ITEM

194,621,880 30.1,798,264 31.

196,420,144 32.65,965,012 33.

130,455,132 34.

0 35.724,810 36.

0 37.5,080 38.

2,668,900 39.0 40.0 41.0 42.

3,398,790 43.

1,872,830 44.

123,894 45.

o 46.1,165,595 47.

740 48.8,186,827

49.298,727

0 50.

1,633,546 51.

149,763 52.115,380 53.

13,547,302 54.

0 55.27,614,560 56~

175,015,784 57.

YEAR-TO-DATELAST YEAR

~)143.00

1,754.59

1,014.01

2,911.60

Miles TransmissionMiles Distribution-OverheadMiles Distribution -Underground

Total Miles Energized(5+6+7)SHEET

LIABILITIES AND OTHER CREDITSMembershipsPatronage CapitalOpemtin~ Margins - Prior YearsOperating Margins - Current Year

Non-Operating Margins

Other Marc-ins and EquitiesTotal Margins & Equities O0 thru 35)

Long-Term Debt - RUS (Net)Lon~-Term Debt - FFB - RUS GuaranteedLong-Term Debt - Other - RUS Guaranteed

Long-Term Debt Other (Net)Long-Term Debt - RUS - Econ. Devel. (Net)

Payments - UnappliedTotal Long-Term Debt(37 thru 41 - 42)

Obligations Under Capital Leases - NoncurrentAccumulated Operating Provisionsand Asset Retirement Obligations

Total Other Noneurrent Liabilities (44 + 45)Notes PayableAccounts Payable

Consumers Deposits

Current Maturities Long-Term DebtCurrent Maturities Long-Term Debt- Economic DevelopmentCurrent Maturities Capital LeasesOther Current and Accrued Liabilities

Total Current & Accrued Liabilities(47 thru 53)

Regulatory LiabilitiesOther Deferred Credits

Total Liabilities and Other Credits(36 + 43 + 46 + 54 thru 56)

THIS YEAR

143.00

1,756.88

1,017.85

2,917.73

o26,913j282

o291,149

(12,891)250,787

27,442,32748,325,78429,1o7,219

o31,175,o55

oo

i08,608,058

1,136,252

0

1,136,2520

6,359,356

327,311

4,778,496

0

386,1142,078,526

13,929,803

o23,899,344

175,o15,784

RUS Financial and Operating Report Electric Distribution Revision Date 2014

UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATIONRURAL UTILITIES SERVICE

FINANCIAL AND OPERATING REPORT NM0011ELECTRIC DISTRIBUTION

INSTRUCTIONS - See help in the online application~ PERIOD ENDEDDecember, 2018

PART D. NOTES TO FINANCIAL STATEMENTS




BORROWER DESIGNATION

ENDED NM0011PERIODDecember, 2018

PART D. CERTIFICATION LOAN DEFAULT NOTES




PLANT ITEM

I. Distribution Plant

2. General Plant

3. Headquarters Plant

4. Intangibles

5. Transmission Plant

6. Regional Transmission and MarketOperation Plant

7. All Other Utility Plant

8. Total Utility Plant in Service (1 thru 7)

9. Construction Work in Progress

10. Total Utility Plant (8 + 9)

BORROWER DESIGNATION NM0011


ITEM

I. Electric

2. Other

BALANCEBEGINNING OF YEAR

(a)i, 167,266

678,025

lITEM ] POWER SUPPLIER

(a)Present Year

Five-Year Average

PART E. CHANGES IN UTILITY PLANTBALANCE

BEGINNING OF YEAR(a)108,193,386

13,271,273

5,174,467

o14,363,863

ADDITIONS

6,522,117

427,954

RETIREMENTS

338,533

ADJUSTMENTS ANDTRANSFERS

BALANCEEND OF YEAR

(e)114,376,970

13,699,227

5,174,467

0

14,363,863

1. Number of Full Time Employees

2. Employee - Hours Worked - Regular Time

3. Employee - Hours Worked - Overtime

ITEM

5,014,536 41,992,817

146,017,525 48,942,888

5,234,645 (3,436,381)

151,252,170 45,506,507

PART F. MATERIALS AND SUPPLIES

PURCHASED] SALVAGED USED (NET) [

(b), [

(c)

(7~64,659[722,200 [

PART G. SERVICE INTERRUPTIONSAVERAGE MINUTES PER CONSUMER BY CAUSE

MAJOR EVENT I PLANNED(b)

[

(c)132.080 1.890

41.020 97.870 10.920PART H. EMPLOYEE-HOUR AND PAYROLL STATISTICS

181,979 Payroll-Capitalized

7,408 Payroll - OtherPART I. PATRONAGE CAPITAL

1. Capital Credits - Distributions

2. Capital Credits - Received

1. Amount Due Over 60 Days

1. Anticipated Loan Delinquency %2. Actual Loan Delinquency %3. Total Loan Delinquency Dollars YTD

DESCRIPTION

338,533

338,533

SOLD(e) l ADJUSTMENT09305 4,694

i, 673,884 55,064

ALL OTHER

169.840

THIS YEAR

150.470

a. General Retirementsb. Special Retirements

c. Total Retirements (a + b)a. Cash Received From Retirement of Patronage Capital by

Suppliers of Electric Power

b. Cash Received From Retirement of Patronage Capital byLenders for Credit Extended to the Electric System

c. Total Cash Received (a ÷ b)

PART J. DUE FROM CONSUMERS FOR ELECTRIC SERVICE

1,544,021 12. Amount Written OffDuting YearENERGY EFFICIENCY AND CONSERVATION LOAN PROGRAM

li!Anticipated Loan Default %Actual Loan Default %

$ Total Loan Default Dollars YTD

RUS Financial and Operating Report Electric Distribution

128,480128,480

314,435

314,435

5

47,007,353

194,621,880

1,798,264

196,420,144

BALANCEEND OF YEAR

i, 129,196

504,351

TOTAL

303.810

300.280

3,955,485

527,719877,579

Revision Date 2014

CUMULATIVE<b)2,882,311

1,869,552

4,751,863



INSTRUCTIONS - See help in the online application


NM0011


No ITEM

(a)1 Guzman Energy

(FL)Total

SUPPLIERCODE

800593

PART K. kWh PURCHASED AND TOTAL COSTRENEWABLE

ENERGYPROGRAM

NAME

RENEWABLE kWhFUEL PURCHASEDTYPE

(d)288,275,601

288,275,601

TOTALCOST

19,832,936

19,832,936

AVERAGECOST

(Cents/kWh)

6.88

6.88

INCLUDEDIN[TOTAL COST-

FUEL COSTADJUSTMENT

INCLUDED INTOTAL COST =

WHEELINGAND OTHER

CHARGES

UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATIONRURAL UTILITIES SERVICE

FINANCIAL AND OPERATING REPORT NM0011ELECTRIC DISTRIBUTION

INSTRUCTIONS - See help in the online application PERIOD ENDEDDecember, 2018

PART K. kWh PURCHASED AND TOTAL COSTNo [ Comments

I1





NM0011


No NAME OF LESSOR

TOTAL

PART L. LONG-TERM LEASESTYPE OF PROPERTY

(b)RENTAL THIS YEAR

UNITED STATES DEPARTMENT OF AGRICULTURE BORROWER DESIGNATIONRURAL UTILITIES SERVICE NM0011

FINANCIAL AND OPERATING REPORT PERIOD ENDEDELECTRIC DISTRIBUTION De ceraber, 2018INSTRUCTIONS - See help in the online application.

PART M. ANNUAL MEETING AND BOARD DATA1. Date o~" Last Annual Meeting 2. Total Number of Members 3. Number of Members Present at Meeting 4. Was Quorum Present?

6/9/2018 22,975 423 N

5. Nurober of Members Voting 6. Total Nnmber of Board Members 7. Total Amount of Fees and Expenses 8. Does Manager Haveby Proxy or Mail for Board Members Written Contract?

Ii $ 176,958 Y






NM0011


No ITEMPART N. LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS

1 Rural Utilities Service (Excludes RUS -Economic Development Loans)

2 National Rural Utilities Cooperative FinanceCorporation

3 CoBard~ ACB4 Federal Financing Bank5 RUS - Economic DevelOpment Loans6 Payments Unapplied7 Principal Payments Received from Ultimate

Recipients of IRP Loans8 Principal Payments Received from Ultimate

Recipients of REDL Loans9 Principal Payments Received from Ultimate

Recipients of EE Loans10Farm Credit Leasing11 Altec Leasing

TOTAL

BALANCE END OFYEAR

(a)48,325,784

31,175,0541

29,107,2191

825,115

311,137109,744,309

INTEREST(Billed This Year)

(b)1,870,921

17,297

1#83,141740,076

53r341

4,164,776

PRINCIPAL(Billed This Year)

1,844,751

2,209,816

591r276

265,032

73r5254,984~00

TOTAL(Billed This Year)

3,715,672

17~97

3,692,957

1,331,352

318,37373,525

9,149,176


FINANCIAL AND OPERATING REPORT PERIOD ENDEDELECTRIC DISTRIBUTION December, 2018INSTRUCTIONS - See help in the online application.

PART O. POWER REQUIREMENTS DATABASE - ANNUAL SUMMARY

CLASSIFICATION

1. Residential Sales (excludingseasonal)

2. Residential Sales - Seasonal

3. Irrigation Sales

4. Co~mn. and Ind. 1000 KVA or Less

5. Comm. and Ind. Over 1000 KVA

6. Public Street & Highway Lighting

7. Other Sales to Public Authorities

8. Sales for Resale - RUS Borrowers

Sales for Resale - Other

b. kWh Sold

c. Revenue10. Total No. of Consumers (lines la thn~ 9a)

11. Total kwh Sold (lines lb thru 9b)12. Total Revenue Received From Sales of

Electric Energy (lines lc thrtt 9c)

13. Transmission Revenue14. Other Electric Revenue

15. kWh - Own Use}6. Total kWh Purchased

17. Total kWh Generated18. Cost of Purclmses and Generation

19. Interchange - kWh - Net20. Peak - Sum All kW Input (Metered)

Non-coincident X Coincident

RUS Financial and Operating Report Electric Distribution

CONSUMER SALES &REVENUE DATA

a. No. Consumers Served

b. kWh Sold

c. Revenue


b. kWh Sold

c. Revenue


b. kWh Sold

c. Revenue


b. kWh Sold

c. Revenue


b. kWh Soldc. Revenue


b. kWh Sold

c. Revenue


b. kWh Sold

c. Revenue


b. kWh Sold

c. Revenue


AVERAGE NO.DECEMBER CONSUMERS SERVED

(a)20,504 21,249

, 3,349 3,349

4,5061. 4,361

101 i0

16 15

28,385[ 28,984

TOTALYEARTO DATE

120,740,023

21,646,726

12,099,663

2,625,423

110,854,250

17,475,855

19,433,5582,713,022

803,727141,881

263,931,221

44,602,907

370,910

749,406

288,275,662

19,903,520

62,121

Revision Date 2014




2.3.4.

5.6.

7.8.9.

10.

BORROWER DESIGNATIONNM0011


CLASSIFICATION

PART P. ENERGY EFFICIENCY PROGRAMSADDED THIS YEAR

No. of Amount EstimatedConsumers Invested MMBTU Savings

No. ofConsumers

TOTAL TO DATEAmount EstimatedInvested MMBTU Savings

Residential Sales (excluding seasonal)

Residential Sales - Seasonal

Irrigation SalesComm. and Ind. 1000 KVAor Less

Comm. and Ind. Over 1000 KVAPublic Street and Highway LightingOther Sales to Public Authorities

Sales for Resale - RUS Bon’owersSales for Resale - Other

Total



FINANCIAL AND OPERATING REPORTELECTRIC DISTRIBUTION PERIOD ENDED

INVESTMENTS, LOAN GUARANTEES AND LOANS December, 2018

INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in PartC. Identify all investments in Rural Development with an ’X’ in colunm (e). Both ’.Included’ and ’Excluded’ Investments must be reported. See help in the onlineapplication.

PART Q. SECTION L INVESTMENTS (See Instructions for definitions of Income or Loss)No DESCRIPTION INCLUDED EXCLUDED INCOME OR LOSS

1 Non-Utili ,ty Property (NET)NON UTILITY PLANTTotals

2 Investments in Associated OrganizationsCFC PATRONAGE CAPITALFEDERATED INS - PATRONAGESEDC - PATRONAGENRTC- PATRONAGE

CFC - MEMBERSHIPTRI-STATE MEMBERSHIPECO - MEMBERSHIPINVESTMENT IN SUBSIDIARY COCOBANK PATRONAGE

Totals6 Cash - General

CASH - GENERALTotals

8 Temporary InvestmentsCoBank InvestlineTotals

9 Accounts and Notes Receivable - NETNOTES RECEIVABLE - COMPUTER

ACCOUNTS RECEIVABLE - OTHERTotals

11TOTAL INVESTMENTS (1 thru 10)

($)

383,925

229,591768,137

1,0005

4,075

724,810

2,111,543

410,311410,311

740

298,727

299r4672,821,321

($)(�)

71,839

1,215~409

lr287,248

1:62,5191,462,519

1,165~5951,165,595

3,915,362

($)RURAL

DEVELOPMENT

X


BORROWER DESIGNATIONNM0011


INVESTMENTS, LOAN GUARANTEES AND LOANSPERIOD ENDED

December, 2018

INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in PartC. Identify all investments in Rural Development with an ’X’ in column (e). Both ’Included’ and ’Excluded’ Investments must be reported. See help in the onlineapplication.

No ORGANIZATION

TOTALTOTAL (Included Loan Guarantees Only)

PART Q. SECTION II. LOAN GUARANTEESMATURITY DATE ORIGINAL AMOUNT

($)(b) (e)

LOAN BALANCE($)

RURALDEVELOPMENT


BORROWER DESIGNATIONNMO011


INVESTMENTS, LOAN GUARANTEES AND LOANSPERIOD ENDED

December, 2018

INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in Partc. Identify all investments in Rural Development with an ’X’ in column (e). Both ’Included’ and ’Excluded’ Investments must be reported. See help in the onlineapplication.

SECTION Ill. RATIORATIO OF INVESTMENTS AND LOAN GUARANTEES TO UTILITY PLANT 1.44 %[Total of Included Investments (Section I, 1 lb) and Loan Guarantees - Loan Balance (Section II, 5d) to Total Utility Plant (Line 3, Part

C) of this report]SECTION IV. LOANS

No ORGANIZATION MATURITY DATE ORIGINAL AMOUNT LOAN BALANCE RURAL($) ($) DEVELOPMENT

(a) (b) (c) (d) (e)I TOTAL

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