Bess Rural Energy Cooperative Lca

What it reported doing in 2025

The cooperative, through its wholly-owned subsidiary dbd express i, llc, executed a purchase, sale and epc agreement dated november 30, 2025 (the "hps psa") with homeland power solutions, lp ("hps") (formerly homeland digital reit, lp), a Delaware limited partnership, for the sale of a designated portion of the bess fleet and associated epc services at an aggregate contract price of $43,546,000. The assets sold comprised: (i) three bess units not yet placed in service; (ii) the powin battery purchase package comprising approximately 18 mw of rated power capacity; and (iii) inverters and other auxiliary equipment components. Aggregate consideration was structured as follows: (i) a closing payment note of $41,371,000, bearing interest at afr plus 6.00% per annum with a 10-year contractual term and a strict no-acceleration provision; (ii) an hps short-term note receivable of $1,675,000, bearing interest at sofr plus 1.50% per annum, due march 30, 2026 (subsequently paid in full on march 30, 2026); (iii) $425,000 cash from wachter holdings, llc; and (iv) $75,000 cash from djd capital. The company holds a perfected first-priority security interest in the transferred equipment under applicable provisions of the Texas ucc. Cost of goods sold of $25,500,000 represents the aggregate face amount of a $3,500,000 short-term promissory note and a $22,000,000 long-term revenue note issued to gridcore infrastructure llc as obligations incurred to effectuate the sale, yielding gross proceeds of $18,046,000 (41.4% gross margin). This program service supports the cooperative's mission of deploying energy storage infrastructure to serve its members and affiliated energy partnerships in the permian basin and utica shale regions.

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 33.3%; rating input score 33; 7th percentile among comparable filings
• Governance controls: 5 of 8 controls in place; rating input score 62
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Fail
  • CEO compensation review process: Pass
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: 17.3%; rating input score 72; 72nd percentile among comparable filings
• Total-asset coverage ratio: 9.76; rating input score 85; 85th percentile among comparable filings
• Liabilities to assets ratio: 0.69; rating input score 14; 14th percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 92; 92nd percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: Limited
• Asset growth: Limited