Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1a · Federated campaigns

  $0

• 1b · Membership dues

  $690,000

• 1c · Fundraising events

  $0

• 1d · Related organizations

  $0

• 1e · Government grants (contributions)

  $0

• 1f · All other contributions, gifts and grants

  $0

• 1g · Noncash contributions included above

  $0

• 2a · Program service revenue: Tariff Administration Service

  total $186,206,855 · related or exempt $186,206,855 · unrelated business $0 · excluded $0

• 2b · Program service revenue: Fees and Assessments

  total $27,391,916 · related or exempt $27,391,916 · unrelated business $0 · excluded $0

• 2c · Program service revenue: Contract Services

  total $15,429,536 · related or exempt $15,429,536 · unrelated business $0 · excluded $0

• 2f · All other program service revenue

  total $18,242,416 · related or exempt $18,242,416 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $1,865,601 · related or exempt $1,865,601 · unrelated business $0 · excluded $0

• 4 · Income from investment of tax-exempt bond proceeds

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 5 · Royalties

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 6c · Rental income or loss

  real property $0 · personal property $0

• 7c · Gain or loss

  securities $0 · other assets $0

• 8a · Fundraising events: contributions included on line 1c

  $0

• 11d · All other revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 11e · Other revenue, total

  $0

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $0

• 2 · Grants to domestic individuals

  total $0

• 3 · Grants to foreign organizations and individuals

  total $0

• 4 · Benefits paid to or for members

  total $0

• 5 · Compensation of officers, directors and key employees

  total $10,649,239

• 6 · Compensation of disqualified persons

  total $0

• 7 · Other salaries and wages

  total $86,241,236

• 8 · Pension plan contributions

  total $13,542,371

• 9 · Other employee benefits

  total $8,386,210

• 10 · Payroll taxes

  total $6,512,717

• 11a · Fees: management

  total $0

• 11b · Fees: legal

  total $1,526,109

• 11c · Fees: accounting

  total $136,401

• 11d · Fees: lobbying

  total $0

• 11e · Fees: professional fundraising services

  total $0

• 11f · Fees: investment management

  total $0

• 11g · Fees: other

  total $0

• 12 · Advertising and promotion

  total $0

• 13 · Office expenses

  total $1,472,765

• 14 · Information technology

  total $16,055,252

• 15 · Royalties

  total $0

• 16 · Occupancy

  total $2,491,817

• 17 · Travel

  total $815,831

• 18 · Travel or entertainment for public officials

  total $0

• 19 · Conferences, conventions and meetings

  total $574,636

• 20 · Interest

  total $6,991,295

• 21 · Payments to affiliates

  total $0

• 22 · Depreciation, depletion and amortization

  total $17,540,505

• 23 · Insurance

  total $2,222,025

• 24a · Other expenses: FERC Fees

  total $27,314,120

• 24b · Other expenses: Consulting Services

  total $20,255,165

• 24c · Other expenses: Communication Expenses

  total $4,901,546

• 24e · All other expenses

  total -$5,095,972

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $631,042 · end of year $1,040,101

• 2 · Savings and temporary cash investments

  beginning of year $850,834,021 · end of year $1,309,749,810

• 3 · Pledges and grants receivable

  beginning of year $0 · end of year $0

• 4 · Accounts receivable

  beginning of year $140,275,285 · end of year $234,518,773

• 5 · Loans and receivables from officers and key people

  beginning of year $0 · end of year $0

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $0 · end of year $0

• 8 · Inventories for sale or use

  beginning of year $0 · end of year $0

• 9 · Prepaid expenses and deferred charges

  beginning of year $8,317,132 · end of year $8,649,668

• 10a · Land, buildings and equipment: cost or other basis

  $332,330,053

• 10b · Land, buildings and equipment: accumulated depreciation

  $269,946,600

• 10c · Land, buildings and equipment, net

  beginning of year $66,652,905 · end of year $62,383,453

• 11 · Investments: publicly traded securities

  beginning of year $25,679,840 · end of year $153,946,804

• 12 · Investments: other securities

  beginning of year $0 · end of year $0

• 13 · Investments: program-related

  beginning of year $0 · end of year $0

• 14 · Intangible assets

  beginning of year $0 · end of year $0

• 15 · Other assets

  beginning of year $9,395,174 · end of year $6,813,433

• 17 · Accounts payable and accrued expenses

  beginning of year $248,972,314 · end of year $454,665,723

• 18 · Grants payable

  beginning of year $0 · end of year $0

• 19 · Deferred revenue

  beginning of year $7,845,665 · end of year $6,494,606

• 20 · Tax-exempt bond liabilities

  beginning of year $0 · end of year $0

• 21 · Escrow or custodial account liability

  beginning of year $740,018,874 · end of year $1,218,672,596

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 23 · Secured mortgages and notes payable

  beginning of year $2,107,400 · end of year $1,901,800

• 24 · Unsecured notes and loans payable

  beginning of year $190,087,521 · end of year $159,356,082

• 25 · Other liabilities

  beginning of year $41,704,439 · end of year $38,328,002

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year -$128,950,814 · end of year -$102,316,767

The filer's explanations (Part III)

Schedule J, Part I, Line 1a

Southwest Power Pool (SPP) board members are permitted to travel first class. SPP's expense policy allows for executive level management to use private planes or charter travel for business purposes. Also, all employees of the organization who are eligible to receive benefits are provided an insurance credit which is grossed-up for payroll purposes and reported as taxable compensation.

Schedule J, Part I, Line 1b

Southwest Power Pool (SPP) has a travel and expense reimbursement policy in place to govern expenses incurred by employees for the benefit of the company that specifically addresses first class, charter or private aircraft travel. There's no specific policy that governs the insurance gross-up payments, however it's a longstanding company-wide practice applied to all employees.

Schedule J, Part I, Line 3

The Human Resources (HR) Committee is responsible for conducting periodic compensation surveys and determining the benchmark peers for SPP officers. The surveys are typically conducted every 2-3 years, by an outside consultant engaged by the committee. The Human Resources Committee is responsible for ensuring the critical job functions and goals of the SPP President are reviewed with the SPP President annually. The committee annually recommends compensation and benefit adjustments for the SPP President to the SPP Board of Directors. The HR Committee reviews compensation for SPP officers but does not make recommendations. All compensation decisions for the SPP officers are determined by the SPP President and CEO.

Schedule J, Part I, Line 4

In April 2022, Philip Bruich, director of markets, left Southwest Power Pool (SPP). Upon his departure, he received a severance payment of $224,500. SPP has a 457(f) plan for the executive officers. The following officers are participants in the plan: Barbara Sugg, Paul Suskie, Thomas Dunn, Michael Desselle, Michael Ross, Bruce Rew and Lanny Nickell.

Schedule J, Part II

The retirement and other deferred compensation amount includes the annual increase/(decrease) in the actuarial value of the pension plan. In 2022, as a result of the increase in the discount rate used for valuation of pension obligations from 4% as of 12/31/2021 to 5.25% as of 12/31/2022, the present value of future pension compensation decreased for most of the individuals reported resulting in a negative amount in column C, retirement and other deferred compensation.