2004 Annual Report

Independent Auditors’ Report

Board of Directors
Golden Spread Electric Cooperative, Inc.
Amarillo, Texas

We have audited the accompanying consolidated balance sheets of Golden Spread Electric Cooperative, Inc. and Affiliates as of December 31, 2004 and 2003, and the related consolidated statements of income, equity, and cash flows for the years then ended. In addition, we have audited the consolidated statements of income, equity and cash flows for the year ended December 31, 2002. These consolidated financial statements are the responsibility of the Cooperative’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Golden Spread Electric Cooperative, Inc. and Affiliates as of December 31, 2004 and 2003, and the results of their operations and their cash flows for the years then ended and the results of their operations and their cash flows for the year ended December 31, 2002, in conformity with accounting principles generally accepted in the United States of America.

Bolinger, Segars, Gilbert & Moss, L.L.P.

Certified Public Accountants

March 3, 2005