TY 2010 Form 990

- TIN:

Form990

Department of the Treasury
Internal Revenue Service

Return of Organization Exempt From Income Tax

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

The organization may have to use a copy of this return to satisfy state reporting requirements.

OMB No. 1545-0047

2010

Open to Public Inspection

A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010

BCheck if applicable: Address change Name change Initial return Terminated Amended return Application pending

CName of organization
DENTON COUNTY ELECTRIC COOPERATIVE INC
DBA COSERV ELECTRIC

Doing Business As

Number and street (or P.O. box if mail is not delivered to street address)
7701 SOUTH STEMMONS FREEWAY

Room/suite

City or town, state or country, and ZIP + 4
CORINTH, TX76210

D Employer identification number

75-0233075

E Telephone number

G Gross receipts $ 445,098,151

F Name and address of principal officer:
DONNIE CLARY
7701 SOUTH STEMMONS FREEWAY
CORINTH,TX76210

Tax-exempt status: 501(c)(3) 501(c) ( 12 ) LeftBullet

(insert no.) 4947(a)(1) or 527

Website:

WWW.COSERV.COM

H(a)

Is this a group return for
affiliates? Yes No

H(b)

Are all affiliates included?

Yes No

If "No," attach a list. (see instructions)

H(c)

Group exemption number MediumBullet

K Form of organization: Corporation Trust Association Other MediumBullet

L Year of formation: 1938

M State of legal domicile: TX

Part I

Summary

1	Briefly describe the organization’s mission or most significant activities: TO PROVIDE ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ....	3	7
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	7
5	Total number of individuals employed in calendar year 2010 (Part V, line 2a) ...	5	327
6	Total number of volunteers (estimate if necessary) ....	6	0
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	186,578
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	185,578

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	0	0
9	Program service revenue (Part VIII, line 2g) .........	393,750,257	442,150,405
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	1,329,467	904,191
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	677,249	601,170
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	395,756,973	443,655,766
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	0	216,425
14	Benefits paid to or for members (Part IX, column (A), line 4) ....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	19,494,953	24,863,556
16a	Professional fundraising fees (Part IX, column (A), line 11e)....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	353,359,905	379,045,692
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	372,854,858	404,125,673
19	Revenue less expenses. Subtract line 18 from line 12......	22,902,115	39,530,093
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16)............	685,837,579	740,317,129
21	Total liabilities (Part X, line 26)............	460,909,552	483,175,290
22	Net assets or fund balances. Subtract line 21 from line 20 .....	224,928,027	257,141,839

Part II

Signature Block

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.

Sign Here

	Signature of officer	Date

	Type or print name and title.

Paid Preparer's Use Only	Preparer's signature	Date	Check if self- employed	Preparer’s taxpayer identification number (see instructions)
	Firm’s name (or yours if self-employed), address, and ZIP + 4			EIN
				Phone no.

May the IRS discuss this return with the preparer shown above? (see instructions) ......... Yes No

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11282Y

Form 990 (2010)

Page 2

Part III

Statement of Program Service Accomplishments

Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .

Briefly describe the organization’s mission: TO BE TRUSTED TO SAFELY AND CONSISTENTLY EXCEED MEMBERS' AND CUSTOMERS' EXPECTATIONS FOR RELIABILITY, SERVICE, VALUE, AND COMMUNITY SUPPORT.

Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? .................... Yes No

If “Yes,” describe these new services on Schedule O.

Did the organization cease conducting, or make significant changes in how it conducts, any program services? .......................... Yes No

If “Yes,” describe these changes on Schedule O.

Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.


4a	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )
	THE COOPERATIVE PROVIDED ELECTRICITY TO 156,215 ACTIVE MEMBER SERVICES AT YEAR END. THE ELECTRICITY AND RELATED SERVICES WERE PROVIDED AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL.

4b	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4c	(Code: ) (Expenses $ including grants of $ ) (Revenue $ )












4d	Other program services. (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$

Form 990 (2010)

Page 3

Part IV

Checklist of Required Schedules

Yes

Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule A.....................

Is the organization required to complete Schedule B, Schedule of Contributors? ........

Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part I..........

Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part II.........................

Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................

Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part I Click to see attachment

.......................

Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part II Click to see attachment

...

Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment

....................

Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IV Click to see attachment

...................

Yes

Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part V Click to see attachment

If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:

Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI. Click to see attachment

11a

Yes

Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII. Click to see attachment

11b

Yes

Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII. Click to see attachment

11c

Yes

Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX. Click to see attachment

11d

Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X. Click to see attachment

11e

Yes

Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X. Click to see attachment

11f

Yes

12a

Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment

12a

Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment

12b

Yes

Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E

14a

Did the organization maintain an office, employees, or agents outside of the United States?....

14a

Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........

14b

Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..

Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..

Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I

Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........

Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................

Form 990 (2010)

Page 4

Part IV

Checklist of Required Schedules (continued)

20a

Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....

20a

Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....

20b

Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment

Yes

Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment

Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment

Yes

24a

Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................

24a

Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...

24b

Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................

24c

Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...

24d

25a

Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I......

25a

Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................

25b

Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II...........................

Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III...............

Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):

A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV .........................

28a

A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV...................

28b

An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV..

28c

Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M

Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............

Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................

Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................

Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment

Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment

Yes

Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....

Yes

Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment

YesNo

Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2...........

Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VI Click to see attachment

Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............

Yes

Form 990 (2010)

Page 5

Part V

Statements Regarding Other IRS Filings and Tax Compliance

Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .

Yes

Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......

Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.

Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................

Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................

327

If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)

Yes

Did the organization have unrelated business gross income of $1,000 or more during the year?.............................

Yes

If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....

Yes

At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................

If "Yes," enter the name of the foreign country: MediumBullet

See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.

Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..

Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?

If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........

Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........

If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................

Organizations that may receive deductible contributions under section 170(c).

Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................

If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....

Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................

If “Yes,” indicate the number of Forms 8282 filed during the year ....

Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................

Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..

If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................

If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............

Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................

Sponsoring organizations maintaining donor advised funds.

Did the organization make any taxable distributions under section 4966?.........

Did the organization make a distribution to a donor, donor advisor, or related person?......

Section 501(c)(7) organizations. Enter:

Initiation fees and capital contributions included on Part VIII, line 12 ...

10a

Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities

10b

Section 501(c)(12) organizations. Enter:

Gross income from members or shareholders .........

11a

434,723,456

Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........

11b

21,022,009

12a

Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?

12a

If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.

12b

Section 501(c)(29) qualified nonprofit health insurance issuers.

Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.

13a

Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.

13b

Enter the aggregate amount of reserves on hand.

13c

14a

Did the organization receive any payments for indoor tanning services during the tax year?.....

14a

If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..

14b

Form 990 (2010)

Page 6

Part VI

Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.

Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .

Section A. Governing Body and Management

Yes

Enter the number of voting members of the governing body at the end of the tax year ..............

Enter the number of voting members included in line 1a, above, who are independent .................

Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................

Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..

Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?

Yes

Did the organization become aware during the year of a significant diversion of the organization’s assets? .

Does the organization have members or stockholders? ................

Yes

Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................

Yes

Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..

Yes

Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:

The governing body? .........................

Yes

Each committee with authority to act on behalf of the governing body? ............

Yes

Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....

Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)

Yes

10a

Does the organization have local chapters, branches, or affiliates? ............

10a

If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....

10b

11a

Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?

11a

Yes

Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....

12a

Does the organization have a written conflict of interest policy? If “No,” go to line 13.......

12a

Yes

Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................

12b

Yes

Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................

12c

Yes

Does the organization have a written whistleblower policy? ...............

Yes

Does the organization have a written document retention and destruction policy? .........

Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?

The organization’s CEO, Executive Director, or top management official ...........

15a

Yes

Other officers or key employees of the organization ................

15b

Yes

If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)

16a

Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................

16a

If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............

16b

Section C. Disclosure

List the States with which a copy of this Form 990 is required to be filed MediumBullet

Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.

Own website Another's website Upon request

Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.

State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet

DONNIE CLARY SENIOR VP & CFO
7701 SOUTH STEMMONS FREEWAY
CORINTH,TX76210
(940) 321-7800

Form 990 (2010)

Page 7

Part VII

Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors

Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees

1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet

List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

List all of the organization’s current key employees, if any. See instructions for definition of "key employee."

List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.

Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)	(C) Position (check all that apply)			(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(1) LEON PELZEL CHAIRMAN	10.00	X	X		36,519	0	0
(2) CLYDE GEER VICE CHAIRMAN	8.40	X	X		30,319	0	0
(3) ANNE VADEN SECRETARY/TREASURER	11.30	X	X		36,294	0	0
(4) RICHARD MUIR DIRECTOR	11.20	X			31,927	0	0
(5) JERRY COBB DIRECTOR	9.10	X			32,144	0	0
(6) WILLIAM RAGSDALE DIRECTOR	13.30	X			25,250	0	0
(7) CURTIS TALLY DIRECTOR	10.90	X			36,494	0	0
(8) MICHAEL DREYSPRING PRESIDENT & CEO	55.00		X		343,163	0	120,824
(9) DONNIE CLARY SENIOR VP & CFO	50.00		X		295,429	0	91,076
(10) STEPHEN CHISM SENIOR VP (1/1/10-4/2/10)	50.00		X		131,533	0	17,643
(11) JOE FORMAN SENIOR VP - OPERATIONS	50.00		X		241,176	0	78,814
(12) STACIA SIMS SENIOR VP - INFORMATION SERVICES	45.00		X		212,492	0	46,847
(13) CURTIS TRIVITT SENIOR VP - ENERGY SERVICES	40.00		X		258,765	0	86,217
(14) DENISE SMITHERS VP - EMPLOYEE RELATIONS	50.00		X		165,036	0	50,767
(15) CHARLES TURNER DIRECTOR OF TREASURY SERVICES	40.00			X	147,069	0	35,730
(16) ROBBY HAMLIN DIRECTOR OF ENG. SERVICES	40.00			X	144,168	0	32,846
(17) BRUCE BOUTILIER DIRECTOR OF CUSTOMER SERVICES	40.00			X	137,720	0	44,990

Form 990 (2010)

Page 8

Part VII

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)		(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) JEFFREY MCNEAL DIRECTOR OF INFO SERVICE	40.00	X	135,190	0	35,572
(19) JERRY FIELDER DIRECTOR OF ENG. SYSTEMS PLANNING	40.00	X	134,962	0	26,032

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	2,575,650	0	667,358

Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organization MediumBullet

Yes

Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............

For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................

Yes

Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....

Section B. Independent Contractors

Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.

(A) Name and business address	(B) Description of services	(C) Compensation
TEXAS ELECTRIC UTILITY CONSTRUCTION LTD PO BOX 2211 SHERMAN,TX750912211	UTILITY CONSTRUCTION	8,997,090
LLANO UTILITY SERVICES INC 3501 FM 2181 SUTIE 245 CORINTH,TX76205	UTILITY CONSTRUCTION	4,596,612
MOUNTAIN STATES PIPE & SUPPLY 1819 MOMENTUM PLACE CHICAGO,IL606895318	METER READING	2,392,543
SIRIUS COMPUTER SOLUTIONSINC PO BOX 202289 DALLAS,TX753202289	IT/IS CONSULTANTS	1,590,157
GARDERE WYNNE SEWELL LLP 1601 ELM STREET SUITE 3000 DALLAS,TX752014761	LEGAL FEES	1,386,127
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization 34

Form 990 (2010)

Page 9

Part VIII

Statement of Revenue

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......
			Business Code
2a	ELECTRIC SALES		221,000	420,254,655	420,254,655
b	PATRONAGE DIVIDENDS		221,000	16,499,966	16,499,966
c	SERVICE FEES		221,000	5,395,784	5,395,784
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			442,150,405
3	Investment income (including dividends, interest
	and other similar amounts).....			863,721			863,721
4	Income from investment of tax-exempt bond proceeds..
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross Rents	1,624,275	344,649
b	Less: rental expenses	1,373,556	2,115
c	Rental income or (loss)	250,719	342,534
d	Net rental income or (loss).......			593,253	124,951	186,578	281,724
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		107,184
b	Less: cost or other basis and sales expenses		66,714
c	Gain or (loss)		40,470
d	Net gain or (loss)..........			40,470			40,470
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a		7,444
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			7,444	7,444
Miscellaneous Revenue			Business Code
11a	MISCELLANEOUS INCOME A		221,000	473	473
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			473
12	Total revenue. See Instructions....			443,655,766	442,283,273	186,578	1,185,915

Form 990 (2010)

Page 10

Part IX

Statement of Functional Expenses

Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.		(A) Total expenses
1	Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21	216,425
2	Grants and other assistance to individuals in the U.S. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	2,368,729
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	14,391,109
8	Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....	2,464,880
9	Other employee benefits .......	4,186,423
10	Payroll taxes ...........	1,452,415
11	Fees for services (non-employees):
a	Management ......
b	Legal .........
c	Accounting ...........
d	Lobbying ...........
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......
g	Other ..........
12	Advertising and promotion ....
13	Office expenses .......
14	Information technology ......
15	Royalties ..
16	Occupancy ...........
17	Travel ............
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....
20	Interest ...........	27,290,831
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	20,157,631
23	Insurance ..............
24	Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a	COST OF PURCHASED POWER	311,445,741
b	ADMINISTRATIVE & GENERA	6,985,951
c	DISTRIBUTION EXPENSE	4,549,592
d	MUNICIPAL FRANCHISE FEE	107,951
e	UBI TAX	81,494
f	All other expenses	8,426,501
25	Total functional expenses. Add lines 1 through 24f	404,125,673
26	Joint costs. Check here if following SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation

Form 990 (2010)

Page 11


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			9,576,635	1	33,612,186
2	Savings and temporary cash investments .......			13,648,859	2	24,100,481
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			29,106,567	4	20,856,007
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........				5
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............			415,419	7	332,145
8	Inventories for sale or use ..............			66,203	8	536,639
9	Prepaid expenses and deferred charges ............			1,992,041	9	2,714,544
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	664,702,385
b	Less: accumulated depreciation. .....	10b	148,270,553	502,499,288	10c	516,431,832
11	Investments—publicly traded securities ..........				11
12	Investments—other securities. See Part IV, line 11 ......			60,344,577	12	59,288,223
13	Investments—program-related. See Part IV, line 11 ..			45,212,569	13	61,419,699
14	Intangible assets .........				14
15	Other assets. See Part IV, line 11 ...........			22,975,421	15	21,025,373
16	Total assets. Add lines 1 through 15 (must equal line 34)...			685,837,579	16	740,317,129
17	Accounts payable and accrued expenses .			33,682,383	17	33,502,265
18	Grants payable ..........				18
19	Deferred revenue ..........			199,932	19	107,445
20	Tax-exempt bond liabilities ..........				20
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			1,222,719	21	1,203,758
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			384,822,538	23	405,891,805
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities. Complete Part X of Schedule D.....			40,981,980	25	42,470,017
26	Total liabilities. Add lines 17 through 25.....			460,909,552	26	483,175,290
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....				27
28	Temporarily restricted net assets .....				28
29	Permanently restricted net assets .....				29
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....			1,946,565	30	2,041,420
31	Paid-in or capital surplus, or land, building or equipment fund .....			60,286,263	31	67,936,168
32	Retained earnings, endowment, accumulated income, or other funds			162,695,199	32	187,164,251
33	Total net assets or fund balances .....			224,928,027	33	257,141,839
34	Total liabilities and net assets/fund balances .....			685,837,579	34	740,317,129

Form 990 (2010)

Page 12

Part XI

Reconcilliation of Net Assets

Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .

Total revenue (must equal Part VIII, column (A), line 12) . . .

443,655,766

Total expenses (must equal Part IX, column (A), line 25) . . . . .

404,125,673

Revenue less expenses. Subtract line 2 from line 1 . . . .

39,530,093

Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .

224,928,027

Other changes in net assets or fund balances (explain in Schedule O) . . . .

-7,316,281

Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .

257,141,839

Part XII

Financial Statements and Reporting

Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .

Yes

Accounting method used to prepare the Form 990: Cash Accrual Other
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.

Were the organization’s financial statements compiled or reviewed by an independent accountant?..

Were the organization’s financial statements audited by an independent accountant?........

Yes

If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................

Yes

If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:

Separate basis Consolidated basis Both consolidated and separated basis

As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................

Yes

If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..

Yes

Form 990 (2010)

Additional Data

Software ID:
Software Version:

Form 990, Special Condition Description:

Special Condition Description

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

DENTON COUNTY ELECTRIC COOPERATIVE INC
DBA COSERV ELECTRIC

Employer identification number

75-0233075

Part I

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.

		(a) Donor advised funds	(b) Funds and other accounts
1	Total number at end of year .......
2	Aggregate contributions to (during year) ...
3	Aggregate grants from (during year) ...
4	Aggregate value at end of year .......

Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or pleasure) Preservation of an historically importantly land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.


a	Total number of conservation easements .......................	2a
b	Total acreage restricted by conservation easements ..................	2b
c	Number of conservation easements on a certified historic structure included in (a) .....	2c
d	Number of conservation easements included in (c) acquired after 8/17/06 ........	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................

Yes No

In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.

If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:

(i)

Revenues included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:

Revenues included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 52283D

Schedule D (Form 990) 2010

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.

During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........

Yes No

Part IV

Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIV and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21? .....................

Yes No

If “Yes,” explain the arrangement in Part XIV.

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current Year	(b)Prior Year	(c)Two Years Back	(d)Three Years Back	(e)Four Years Back
1a	Beginning of year balance ....
b	Contributions ........
c	Investment earnings or losses ...
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......

Provide the estimated percentage of the year end balance held as:

Board designated or quasi-endowment: SchDMd Bullet

Permanent endowment: SchDMd Bullet

Term endowment: SchDMd Bullet

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI

InvestmentsLand, Buildings, and Equipment. See Form 990, Part X, line 10.

Description of investment		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	2,760,514		2,760,514
b	Buildings ................	26,949,771	7,433,041	19,516,730
c	Leasehold improvements ............
d	Equipment ................	575,081,919	140,837,512	434,244,407
e	Other .................	59,910,181		59,910,181
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........				516,431,832

Schedule D (Form 990) 2010

Page 3

Part VII

InvestmentsOther Securities. See Form 990, Part X, line 12.

(a) Description of security or category (including name of security)	(b)Book value	(c) Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
(3)Other (A) INVESTMENT IN SUBSIDIARY CORPORATION - EQUITY METHOD	59,288,223	C








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)	59,288,223

Part VIII

InvestmentsProgram Related. See Form 990, Part X, line 13.

(a) Description of investment type	(b) Book value	(c) Method of valuation: Cost or end-of-year market value
(1) PATRONAGE CAPITAL - TEXAS ELECTRIC COOPERATIVE, INC.	979,192	C
(2) CAPITAL TERM CERTIFICATES	408,163	C
(3) PATRONAGE CAPITAL - CFC	209,671	C
(4) PATRONAGE CAPITAL BRAZOS POWER MARKETING COOPERATIVE, INC.	109,624	C
(5) PATRONAGE CAPITAL - NRTC	465	C
(6) INVESTMENTS IN ASSOCIATED ORGANIZATIONS - MEMBERSHIPS	4,390	C
(7) PATRONAGE CAPITAL - BRAZOS ELECTRIC POWER COOPERATIVE, INC.	59,590,896	C
(8) PATRONAGE CAPITAL - COBANK	117,298	C

Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)	61,419,699

Part IX

Other Assets. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. See Form 990, Part X, line 25.

1.(a) Description of Liability		(b) Amount
Federal Income Taxes
CONSUMER DEPOSITS		7,147,419
ACCRUED COMPENSATED ABSENCES		1,100,293
ACCRUED INTEREST		143,559
ACCRUED UNBILLED POWER COST		9,279,547
ACCRUED PAYROLL AND PAID TIME OFF		1,718,966
ACCRUED OPERATING TAXES & MUNICIPAL FRANCHISE FEES		11,756,121
OTHER CURRENT & ACCRUED LIABILITIES		413,595
POST RETIREMENT HEALTH INSURANCE BENEFITS		4,875,639
DEFERRED COMPENSATION		288,284
DEFERRED CREDIT - UNCLAIMED PROPERTY		1,500,271
DEFERRED CREDIT - OTHER		1,305
DEFERRED CREDIT - CUSTOMER ADVANCES		2,248,000
CAPITAL LEASE OBLIGATIONS		1,997,018
Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)		42,470,017
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).

Schedule D (Form 990) 2010

Page 4

Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1	Total revenue (Form 990, Part VIII, column (A), line 12) ....................	1
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3
4	Net unrealized gains (losses) on investments ..........................	4
5	Donated services and use of facilities .............................	5
6	Investment expenses ...................................	6
7	Prior period adjustments ..................................	7
8	Other (Describe in Part XIV) .................................	8
9	Total adjustments (net). Add lines 4 - 8 .............................	9
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1	Total revenue, gains, and other support per audited financial statements .......		1
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d .....................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b .	4a
b	Other (Describe in Part XIV): ...........	4b
c	Add lines 4a and 4b.......................		4c
5	Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ......		5

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............		1
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIV): ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIV): ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ......		5

Part XIV

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
	Part IV, Line 2b:	PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED.
Description of Uncertain Tax Positions Under FIN 48:	Part X:	ON JANUARY 1, 2009, THE COOPERATIVE ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES.
		Part IX THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK.

Schedule D (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

Grants and Other Assistance to Organizations,
Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet

Attach to Form 990

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization
DENTON COUNTY ELECTRIC COOPERATIVE INC
DBA COSERV ELECTRIC

Employer identification number
75-0233075

Part I

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................

Yes No

Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) FRISCO EDUCATION FOUNDATIONPO BOX 567 FRISCO,TX75034	31-1689773	501(C)(3)	35,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(2) LEWISVILLE EDUCATION FOUNDATION INCPO BOX 643 LEWISVILLE,TX75067	75-2333118	501(C)(3)	30,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(3) NORTHWEST EDUCATIONAL FOUNDATIONPO BOX 77070 FORT WORTH,TX76177	75-2678804	501(C)(3)	20,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(4) LITTLE ELM INDEPENDENT SCHOOL DISTRICT1900 WALKER RD LITTLE ELM,TX75068	75-1318916	501(C)(3)	20,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(5) DENTON PUBLIC SCHOOL FOUNDATION1307 N LOCUST ST DENTON,TX76201	75-2578743	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(6) SANGER EDUCATION FOUNDATION INCPO BOX 429 JEFF SPRINGER SANGER,TX76266	20-4067636	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(7) AUBREY EDUCATION FOUNDATION INCPO BOX 593 AUBREY,TX76227	75-2876306	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(8) ARGYLE ISD EDUCATION FOUNDATION INC800 EAGLE DR ARGYLE,TX76226	61-1413533	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(9) PROSPER OPEN FOUNDATIONPO BOX 158 PROSPER,TX75078	75-2662259	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES..
(10) MCKINNEY EDUCATION FOUNDATION510 HEARD ST MCKINNEY,TX75069	75-2401624	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(11) ERA INDEPENDENT SCHOOL DISTRICTPO BOX 98 ERA,TX76238	75-6003430	501(C)(3)	10,000	TO CREATE AN ENDOWMENT TO REIMBURSE TEACHERS FOR OUT-OF-POCKET PURCHASES OF TEACHING SUPPLIES.
(12) COSERV CHARITABLE FOUNDATION7701 SOUTH STEMMONS FREEWAY CORINTH,TX76210	13-4281766	501(C)(3)	16,425	TO SUPPORT THE FOUNDATION'S OPERATIONS

Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image

Enter total number of other organizations ................................ . Bullet Image

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2010

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(d)Amount of non-cash assistance	(e)Method of valuation (book, FMV, appraisal, other)	(f)Description of non-cash assistance

Part IV

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Identifier	Return Reference	Explanation
Procedure for Monitoring Grants in the U.S.:	Part I, Line 2:	Schedule I, Part I, Line 2: ALL DONATIONS ARE MADE TO SCHOOL DISTRICTS AND THEIR RESPECTIVE FOUNDATIONS. ANY FUNDS NOT USED BY THE SCHOOL DISTRICTS AND THEIR FOUNDATIONS FOR THE INTENDED PURPOSES ARE RETURNED TO THE COOPERATIVE.

Schedule I (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet

Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

DENTON COUNTY ELECTRIC COOPERATIVE INC
DBA COSERV ELECTRIC

Employer identification number

75-0233075

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

First-class or charter travel Housing allowance or residence for personal use

Travel for companions Payments for business use of personal residence

Tax idemnification and gross-up payments Health or social club dues or initiation fees

Discretionary spending account Personal services (e.g., maid, chauffeur, chef)

If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement orprovision of all the expenses described above? If "No," complete Part III to explain....

Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....

Yes

Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply.

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

Form 990 of other organizations Approval by the board or compensation committee

During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:

Receive a severance payment or change-of-control payment? ...............

Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........

Participate in, or receive payment from, an equity-based compensation arrangement? ........

If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.

Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 5a or 5b, describe in Part III.

For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:

The organization? ...........................

Any related organization? .........................

If "Yes," to line 6a or 6b, describe in Part III.

For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990

Cat. No. 50053T

Schedule J (Form 990) 2010

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a.

(A) Name		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported in prior Form 990 or Form 990-EZ
(A) Name		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
(1) MICHAEL DREYSPRING	(i) (ii)	314,738 0	25,000 0	3,425 0	95,451 0	25,373 0	463,987 0	0 0
(2) DONNIE CLARY	(i) (ii)	271,754 0	8,985 0	14,690 0	62,499 0	28,577 0	386,505 0	0 0
(3) JOE FORMAN	(i) (ii)	217,876 0	7,220 0	16,080 0	58,758 0	20,056 0	319,990 0	0 0
(4) STACIA SIMS	(i) (ii)	193,458 0	5,952 0	13,082 0	35,056 0	11,791 0	259,339 0	0 0
(5) CURTIS TRIVITT	(i) (ii)	234,815 0	7,501 0	16,449 0	64,850 0	21,367 0	344,982 0	0 0
(6) DENISE SMITHERS	(i) (ii)	148,773 0	3,843 0	12,420 0	24,121 0	26,646 0	215,803 0	0 0
(7) CHARLES TURNER	(i) (ii)	139,762 0	4,664 0	2,643 0	26,684 0	9,046 0	182,799 0	0 0
(8) ROBBY HAMLIN	(i) (ii)	129,294 0	4,744 0	10,130 0	17,731 0	15,115 0	177,014 0	0 0
(9) BRUCE BOUTILIER	(i) (ii)	130,648 0	4,489 0	2,583 0	23,158 0	21,832 0	182,710 0	0 0
(10) JEFFREY MCNEAL	(i) (ii)	130,407 0	4,311 0	472 0	10,270 0	25,302 0	170,762 0	0 0
(11) JERRY FIELDER	(i) (ii)	120,134 0	4,018 0	10,810 0	16,061 0	9,971 0	160,994 0	0 0

Schedule J (Form 990) 2010

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.

Identifier	Return Reference	Explanation
Supplemental Information	Part III	Part II, Column C INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. MICHAEL DREYSPRING ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $88,101 401(K) EMPLOYER MATCH 7,350 TOTAL COLUMN C: 95,451 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (88,101) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 44,978 TOTAL COOPERATIVE CASH CONTRIBUTION $52,328 DONALD CLARY ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $55,149 401(K) EMPLOYER MATCH 7,350 TOTAL COLUMN C: 62,499 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (55,149) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 40,047 TOTAL COOPERATIVE CASH CONTRIBUTION $47,397 CURTIS TRIVITT ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $58,048 401(K) EMPLOYER MATCH 6,802 TOTAL COLUMN C: 64,850 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (58,048) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 32,659 TOTAL COOPERATIVE CASH CONTRIBUTION $39,461 JOE FORMAN ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $52,106 401(K) EMPLOYER MATCH 6,652 TOTAL COLUMN C: 58,758 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (52,106) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 30,996 TOTAL COOPERATIVE CASH CONTRIBUTION $37,648 STACIA SIMS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $30,078 401(K) EMPLOYER MATCH 4,978 TOTAL COLUMN C: 35,056 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (30,078) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 27,815 TOTAL COOPERATIVE CASH CONTRIBUTION $32,793 DENISE SMITHERS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $19,474 401(K) EMPLOYER MATCH 4,647 TOTAL COLUMN C: 24,121 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (19,474) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 22,273 TOTAL COOPERATIVE CASH CONTRIBUTION $26,920 CHARLES TURNER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $22,471 401(K) EMPLOYER MATCH 4,213 TOTAL COLUMN C: 26,684 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (22,471) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 20,191 TOTAL COOPERATIVE CASH CONTRIBUTION $24,404 ROBBY HAMLIN ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $14,041 401(K) EMPLOYER MATCH 3,690 TOTAL COLUMN C: 17,731 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (14,041) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 17,847 TOTAL COOPERATIVE CASH CONTRIBUTION $21,537 BRUCE BOUTILIER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $20,406 401(K) EMPLOYER MATCH 2,752 TOTAL COLUMN C: 23,158 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (20,406) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 19,216 TOTAL COOPERATIVE CASH CONTRIBUTION $21,968 JEFFREY MCNEAL ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $10,270 401(K) EMPLOYER MATCH -0- TOTAL COLUMN C: 10,270 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (10,270) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 19,313 TOTAL COOPERATIVE CASH CONTRIBUTION $19,313 JERRY FIELDER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $12,401 401(K) EMPLOYER MATCH 3,660 TOTAL COLUMN C: 16,061 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (12,401) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 17,623 TOTAL COOPERATIVE CASH CONTRIBUTION $21,283

Schedule J (Form 990) 2010

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2010

Open to Public
Inspection

Name of the organization

DENTON COUNTY ELECTRIC COOPERATIVE INC
DBA COSERV ELECTRIC

Employer identification number

75-0233075

Identifier	Return Reference	Explanation
COSERV INVESTMENTS LP	FORM 990, SCHEDULE R, PARTS IV AND V	THE DISCLOSURES PERTAINING TO COSERV INVESTMENTS LP INCLUDE THE FOLLOWING ENTITIES WHICH WERE DISREGARDED OF ITS SOLE OWNER FOR FEDERAL TAX REPORTING PURPOSES, AS OF DECEMBER 31, 2010: COSERV UTILITY GP LLC COSERV UTILITY HOLDINGS LP COSERV NATURAL LLC COSERV GAS LTD THIRTY SEVEN REALTY GP LLC THIRTY SEVEN REALTY HOLDINGS LP LLANO UTILITY SERVICES LLC
Form 990, Part VI, Section A, line 4		SECTION 4.09 WAS AMENDED AND REORGANIZED INTO SUBSECTIONS (A) AND (B). THE PRIMARY PURPOSE OF THE AMENDMENTS IS TO CLARIFY THE WRITTEN PROCESS BY WHICH THE MEMBERS MAY BRING CHARGES, SPECIFYING CAUSE FOR REMOVAL, VOTE FOR REMOVAL AND ULTIMATELY VOTE FOR THE REPLACEMENT OF A DIRECTOR. THE CHARGES ARE BROUGHT FORTH IN A QUALIFYING REMOVAL PETITION THAT IS SIGNED BY THE LESSER OF 5% OF THE MEMBERS OR 300 MEMBERS OF WHICH AT LEAST 100 MUST BE IN THE DISTRICT REPRESENTED BY THE SUBJECT DIRECTOR. DURING A SPECIAL MEETING OF THE MEMBERS, THE CHARGES ARE DISCUSSED BY THE SUBJECT DIRECTOR OR HIS/HER COUNSEL AND ALSO BY THE PERSONS BRINGING THE CHARGES AGAINST SUCH DIRECTOR AND A VOTE IS TAKEN. A MAJORITY VOTE OF THE MEMBERS PRESENT AT THE MEETING IS REQUIRED FOR REMOVAL. THE VACANCY SHALL BE FILLED AT A SPECIAL MEETING OF THE MEMBERS AS PROVIDED ELSEWHERE IN THE BYLAWS. SECTION 4.09(C) WAS ADDED IN ORDER TO PROVIDE A PROCESS BY WHICH AT LEAST 3 DIRECTORS MAY BRING WRITTEN CHARGES, SPECIFYING CAUSE FOR REMOVAL PURSUANT TO THE QUALIFICATIONS FOR SERVING ON THE BOARD AS PROVIDED ELSEWHERE IN THE BYLAWS. THE CHARGES ARE THEN DISCUSSED AND VOTED ON AT A REGULAR OR SPECIAL MEETING OF THE DIRECTORS. A TWO-THIRD (2/3) VOTE OF ALL OF THE DIRECTORS, OTHER THAN THE SUBJECT DIRECTOR, IS REQUIRED. SECTION 4.10 WAS AMENDED IN ORDER TO CLARIFY THE AUTHORITY, PROCESS AND TIMING BY WHICH THE BOARD MAY OR MAY NOT FILL A VACANCY ON THE BOARD. IN GENERAL IF A BOARD VACANCY OCCURS NOT MORE THAN 180 DAYS AND NOT LESS THAN 105 DAYS PRIOR TO THE ANNUAL MEETING (I.E. THE EARLIEST DATE FOR GIVING NOTICE OF THE ANNUAL MEETING) THE VACANCY SHALL BE FILLED BY VOTE OF THE MEMBERS IN ACCORDANCE WITH THE BYLAWS AT THE ANNUAL MEETING.
Form 990, Part VI, Section A, line 6		THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS.
Form 990, Part VI, Section A, line 7a		THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS.
Form 990, Part VI, Section A, line 7b		THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 2. THE DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; 3. THE MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION; AND 4. AMENDMENTS TO THE ARTICLES OF INCORPORATION.
Form 990, Part VI, Section B, line 11		MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE THE FILING OF THE FORM 990.
	Form 990, Part VI, Section B, line 12c	ALL DIRECTORS, OFFICERS, AND EMPLOYEES OF THE COOPERATIVES ARE REQUIRED TO ANNUALLY CERTIFY THAT THEY HAVE COMPLIED WITH THE CODE OF CONDUCT AND ARE NOT AWARE OF ANY UNREPORTED VIOLATIONS OF THE CODE THAT MAY HAVE OCCURRED.
	Form 990, Part VI, Section B, line 15	THE CEO IS SUBJECT TO AN ANNUAL EVALUATION BY A COMPENSATION COMMITTEE, WHICH IS COMPRISED OF THE BOARD OF DIRECTORS. A COMPENSATION SURVEY AND AN INDEPENDENT COMPENSATION CONSULTANT ARE USED WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM SIMILARLY SITUATED COOPERATIVES, UTILITIES, AND OTHER BUSINESSES LOCATED IN THE DALLAS/FT. WORTH METROPLEX AREA, TEXAS AND THE NATION. THE CEO USES A WAGE AND SALARY PLAN APPROVED BY THE BOARD, WHICH IS BASED ON A COMPENSATION SURVEY, WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. FROM SIMILARLY SITUATED COOPERATIVES, UTILITIES, AND OTHER BUSINESSES LOCATED IN THE DALLAS/FT. WORTH METROPLEX AREA, TEXAS AND THE NATION.
	Form 990, Part VI, Section C, line 19	ANNUALLY, THE COOPERATIVE PROVIDES A CONDENSED SET OF AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AND PUBLISHES THE COOPERATIVE'S ANNUAL REPORT IN THE CO-OP POWER MAGAZINE. THE BY-LAWS AND ANNUAL REPORT, WHICH INCLUDE THE CONSOLIDATED FINANCIAL STATEMENTS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE.
TO PROVIDE DETAIL REGARDING OFFICER & HIGHLY COMPENSATED EMPLOYEE BENEFITS	Form 990, Part VII, Column F	IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 3% OF A PARTICIPATING EMPLOYEE'S SALARY. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS PER INDIVIDUAL HAS NOT BEEN ESTIMATED.
PATRONAGE DIVIDENDS	Form 990, Part VIII, Line 2	PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO RESULT FROM THE PAYMENT OF INTEREST TO COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS.
TO PROVIDE DETAIL REGARDING OTHER EXPENSES	Form 990, Part IX, Line 24f	THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24F. SALES $ 1,476,286 CONSUMER ACCOUNTS & SERVICE 3,093,840 OTHER OPERATING EXPENSE 495,833 MISCELANEOUS EXPENSE 208,907 TAXES - PROPERTY & OTHER 3,151,635 TOTAL OTHER EXPENSES PER FORM 990 LINE 24F $ 8,426,501
ACCOUNTING SYSTEM	Form 990, Part IX	THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE WILL BREAK OUT SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 WILL BE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS.
RECONCILIATION OF WAGES PER RETURN TO FORM W-3	Form 990, Part IX, Lines 5-7	SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. IN AN EFFORT TO EXPLAIN WHY THE AMOUNTS REPORTED ON LINES 5-7 DO NOT AGREE TO THE W-3 THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $16,759,838 LESS DIRECTORS FEES REPORTED ON 1099-MISC (228,948) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (492,188) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 3,262,945 RECONCILIATION TO W-3 $19,301,647
BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL	Form 990, Part IX, Line 24	THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS ADMINISTRATIVE AND GENERAL EXPENSE ON FORM 990, PART IX, LINE 24 ADMINISTRATIVE & GENERAL EXPENSE $1,875,879 OUTSIDE SERVICES 1,607,352 PROPERTY INSURANCE 549,043 LOSS/DAMAGES 378,243 MAINTENANCE OF GENERAL PLANT 35,627 RENTS 2,000 MISCELLANEOUS GENERAL AND ADMINISTRATIVE 2,537,807 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 6,985,951
Changes in Net Assets or Fund Balances:	Form 990, Part XI, line 5:	EQUITY METHOD INCOME (LOSS) FROM SUBSIDIARY COMPANY -884,520. NET CHANGE IN MEMBERSHIPS 94,855. RETIREMENT OF PATRONAGE CAPITAL - TOTAL -13,686,130. RETIREMENT OF PATRONAGE CAPITAL - DISCOUNT 7,649,901. OTHER COMPREHENSIVE INCOME - PROVISION FOR POST RETIREMENT HEALTH BENEFITS -318,553. OTHER COMPREHENSIVE INCOME - AFFILIATE INCOME -171,834. Total to Form 990, Part XI, Line 5: -7,316,281.
AUDIT COMMITTEE	Form 990, Part XI, Line 2c	PURSUANT TO BOARD POLICY, THE BOARD OF DIRECTORS IS THE AUDIT COMMITTEE AND IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2010

Additional Data

Software ID:
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- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBullet

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2010

Open to Public Inspection

Name of the organization

DENTON COUNTY ELECTRIC COOPERATIVE INC
DBA COSERV ELECTRIC

Employer identification number

75-0233075

Part I

Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)

(a) Name, address, and EIN of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) COSERV ELECTRIC GROUP HEALTH BENEFIT PLAN TRUST 7701 SOUTH STEMMONS FWY CORINTH,TX76210 30-0403374	MEDICAL SELF INSURANCE FUND	TX	501(C)(9)	N/A	N/A		No
(2) COSERV CHARITABLE FOUNDATION 7701 SOUTH STEMMONS FWY CORINTH,TX76210 13-4281766	COMMUNITY CHARITABLE CONTRIBUTIONS	TX	501(C)(3)	7	N/A		No

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2010

Page 2

Part III

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) COLLIN COUNTY EQUIPMENT LTD 3501 FM 2181 SUITE 245 CORINTH,TX76210 75-2503427	CONSTRUCTION EQUIPMENT RENTAL	TX	N/A
(2) COSERV LLANO LLC 7701 SOUTH STEMMONS FWY CORINTH,TX76210 75-2804279	GENERAL PARTNER IN COLLIN COUNTY EQUIPMENT, LTD.	TX	N/A

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership
(1) COSERV UTILITY SERVICES INC 7701 SOUTH STEMMONS FWY CORINTH,TX76210 75-2766000	GP FOR COSERV INVESTMENTS	TX	C		592,896	100.000 %
(2) COSERV INVESTMENTS LP & SUBSIDIARY 7701 SOUTH STEMMONS FWY CORINTH,TX76210 75-2729645	INVESTMENTS	TX	C	21,644,396	126,901,166	99.000 %

Schedule R (Form 990) 2010

Page 3

Part V

Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)

Note. Complete line 1 if any entity is listed in Parts II, III or IV.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

Yes

b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .

l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .

m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1) COSERV INVESTMENTS LP AND SUBSIDIARY	A	285,063	CASH
(2) COSERV INVESTMENTS LP AND SUBSIDIARY	P	2,952,726	CASH
(3) COLLIN COUNTY EQUIPMENT LTD	P	29,165	CASH
(4) COSERV ELECTRIC GROUP HEALTH BENEFIT PLAN (INS PREMIUMS)	Q	3,301,409	CASH
(5)
(6)

Schedule R (Form 990) 2010

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Are all partners section 501(c)(3) organizations?		(e) Share of end-of-year assets	(f) Disproprtionate allocations?		(g) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(h) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(e) Share of end-of-year assets	Yes	No	(g) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2010

Page 5

Part VII

Supplemental Information

Complete this part to provide additional information for responses to questions on Schedule R (see instructions).

Identifier	Return Reference	Explanation

Additional Data

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Software Version: