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The General History of Cooperatives form of organization originated in England in the early 1800’s to improve the economic lot of workers and farmers, two groups that suffered during the industrial revolution. Workers, with little bargaining power, suffered low wages. Farmers operated in an especially precarious economic environment, paying retail prices for their raw materials, but selling their output wholesale in markets that fluctuated widely and unpredictably. To gain economic power, workers and farmers organized and pooled resources to form sufficient capital to control the means of production, obtain supplies and services, or market their goods or services. The cooperative became very popular, and it spread to and throughout the United States. Congress recognized the contributions and importance of cooperatives even before ratification of the Sixteenth Amendment to the Constitution authorized the income tax. Congress provided exemption from federal excise taxes to cooperative companies, not for profit mutual benefit associations, and agricultural, horticultural, and domestic General Survey of I.R.C. 501(c)(12) Cooperatives and Examination of Current Issues building and loan associations. See, The War Revenue Act of 1898, Pub. L. No. 55-133, 30 Stat. 448 (1898) and Pub. L. No. 61-5 §38, 36 Stat. 11, 115 (1909).

  A 501c12 is what Valley Electric is. The link for the rules they must follow to remain tax exempt. https://www.irs.gov/pub/irs-tege/eotopice02.pdf 

An exempt organization must make available for public inspection, upon request and without charge, a copy of its original and amended annual information returns. Each information return must be made available from the date it is required to be filed (determined with regard to any extensions), or is actually filed, whichever is later. An original return doesn't have to be made available if more than 3 years have passed from the date the return was required to be filed (including any extensions) or was filed, whichever is later. An amended return doesn't have to be made available if more than 3 years have passed from the date it was filed.

An annual information return includes an exact copy of the return (Forms 990, 990-EZ, 990-BL, 990-PF, 990-T, or 1065), and amended return, if any, and all schedules, attachments, and supporting documents filed with the IRS.

An annual information return doesn't include:

• Schedule A of Form 990-BL,
• Schedule K-1 of Form 1065, or
• Form 1120-POL.

The annual returns and exemption application must be made available for inspection, without charge, at the organization's principal, regional, and district offices during regular business hours. The organization can have an employee present during inspection, but must allow the individual to take notes freely and to photocopy at no charge if the individual provides the photocopying equipment. Generally, regional and district offices are those that have paid employees who together are normally paid for at least 120 hours a week.

If the organization doesn't maintain a permanent office, it must make its application for tax exemption and its annual information returns available for inspection at a reasonable location of its choice. It must permit public inspection within a reasonable amount of time after receiving a request for inspection (normally not more than 2 weeks) and at a reasonable time of day. At its option, it can mail, within 2 weeks of receiving the request, a copy of its application for tax exemption and annual information returns to the requester in lieu of allowing an inspection. The organization can charge the requester for copying and actual postage costs only if the requester consents to the charge.

An organization that has a permanent office, but has no office hours or very limited hours during certain times of the year, must make its documents available during those periods when office hours are limited or not available as though it were an organization without a permanent office.

The penalty for failure to allow public inspection of annual returns is $20 for each day the failure continues. The maximum penalty on all persons for failures involving any one return is $10,000.

The penalty for failure to allow public inspection of exemption applications is $20 for each day the failure continues.

The penalty for willful failure to allow public inspection of a return or exemption application is $5,000 for each return or application. The penalty also applies to a willful failure to provide copies.

The penalty for failure to allow public inspection of a political organization's section 527 notice (Form 8871) is $20 for each day the failure continues.

The penalty for failure to allow public inspection of a section 527 organization's contributions and expenditures report (Form 8872) is $20 for each day the failure continues. The maximum penalty on all persons for failures involving any one report is $10,000.

If you suspect a tax-exempt organization is not complying with the tax laws, you may send information to the Tax Exempt and Government Entities Division. You may use Form 13909, Tax-Exempt Organization Complaint (Referral) FormPDF, or send the information in letter format, and attach any supporting documentation for this purpose. Form 13909PDF, or complaint letter, can be submitted one of the following ways:

• Email to eoclass@irs.gov, or
• Mail to TEGE Referrals Group, 1100 Commerce Street, MC 4910 DAL, Dallas, TX 75242

By laws are the internal document that regulates and organization. The link to the Valley Electric Bylaws. 

 BLACK'S LAW DICTIONARY 2ND ED.

An organization or company that provides utility services to the general public such as gas, electric and water. Public utilities have limited monopoly rights given the impracticability of having competitive companies providing such services in a geographic area.

The following letter was read during the public comment secton for the member meeting on June 16, 2023. 

N.R.S. 82.186 (Nevada Revised Statutes)

Section 1. Any director or person authorized in writing by at least 15% (fifteen percent) of the members of the corporation upon at least 5 (five) days written demand is entitled to inspect in person or by agent or attorney, during normal business hours, the books of account and all financial records of the corporation and to make extracts therefrom. The right of members and directors to inspect the corporate records may not be limited in the articles or bylaws of any corporation.

Our petition drive will require Valley Electric to open its books. We have secured a Forensic Auditor who has over 30 years experience working in law enforcement doing exactly this work. He has graciously agreed to donate this audit which is estimated at $40,000.00 in value to the members. 

This was recorded on June 28, 2023

We have provided links to the stories of past Scandals. What is the outcomes? Did people still retain their pensions? Questions we need answers to. 

 Nevada's Valley Electric Association Responds to a Governance and Management Crisis (cooperative.com) 

 Valley Electric voting on new board member after scandal | Las Vegas Review-Journal (reviewjournal.com) 

 Former Valley Electric Association board member says the co-op’s spending is ‘wasteful’ | Pahrump Valley Times (pvtimes.com)