2024-09-18T11:25:45-07:00 2023-12-31 150625503 Mostert Manzanero & Scott LLP 4 Associate Dr Oneonta NY 13820 990 2023-01-01 150500061 OTSEGO ELECTRIC COOPERATIVE INC OTSE 6072936622 PO BOX 128 HARTWICK NY 13348 TIMOTHY R JOHNSON CEO/general counsel 2024-09-18 true true DEBORAH L MOSTERT P01213266 6074328700 2023 2024-08-08 14:25:15Z TIMOTHY R JOHNSON PO BOX 128 HARTWICK NY 13348 13104160 false X www.otsegoec.coop X 1941 NY The Mission of Otsego Electric Cooperative, Inc. is working to improve the quality of life of our members and our communities. The Purpose of Otsego Electric Cooperative, Inc. is to provide cost competitive, safe and reliable energy and broadband solutions. 7 7 26 1272061 0 12776073 13045454 12498 58706 0 12788571 13104160 0 1121431 1660393 2626944 2549252 0 0 8486065 8519799 12234440 12729444 554131 374716 49086255 54918689 35157782 39235249 13928473 15683440 The Mission of Otsego Electric Cooperative, Inc. is working to improve the quality of life of our members and our communities. The Purpose of Otsego Electric Cooperative, Inc. is to provide cost competitive, safe and reliable energy and broadband solutions. false false PROVIDED ELECTRIC SERVICE TO 4,910 CUSTOMERS OVER 784 MILES OF DISTRIBUTION LINEElectric service was provided on a cooperative basis through the allocation of patronage capital to all customers purchasing electric service from the Cooperative during the year. PROVIDE HIGH SPEED INTERNET SERVICE ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO ALL MEMBER-PATRONS OF THE BROADBAND BUSINESS.PATRONAGE BASIS 2,775 MEMBERSNONPATRONAGE BASIS 886 NONMEMBERS false false false false false false false false false true false false true true true true false false false false false false false false false false false false true false false false false false false false false false false true false false false true 32 0 true 26 true true true false false false false 9372299 951905 false false false X 7 7 false false false false true true true true true false false true true true true true true true true false X CODY ALLEN 6072936622 PO BOX 128 HARTWICK NY 13348 TIMOTHY R JOHNSON CEO/counsel 43.30 0.00 X 198826 0 61749 KEVIN M ROTTINGEN LINE FOREMAN 43.90 0.00 158666 0 62209 STEVEN SICKLER CONSTRUCT FOREMAN 43.90 0.00 127658 0 67326 JUSTIN MARCH MAINTENANCE FOREMA 43.10 0.00 140769 0 32446 BRAD ALGER 1ST CLASS LINEMAN 44.80 0.00 139031 0 17652 Frederick Beardslee Jr APPRENTICE LINEMAN 44.40 0.00 112394 0 11489 CODY ALLEN DIRECTOR ACCT 46.80 0.00 X 96025 0 26958 PATRICK HOOKER Director 10.10 0.00 X 8739 0 0 GARY POTTER President 2.70 0.00 X X 8114 0 0 EDWARD CLARKE Treasurer 2.40 0.00 X X 6639 0 0 CHARLES ARNOLD Vice President 2.40 0.00 X X 6539 0 0 STEVEN CHILD Secretary 2.10 0.00 X X 5239 0 0 FREDERICK BRAUN JR DIRECTOR 1.80 0.00 X 4308 0 0 AMY PARR DIRECTOR 1.80 0.00 X 3539 0 0 1016486 279829 6 false true false BENTON TECHNICAL SERVICES INC FIBER OPTIC CABLE CONST 1074371 NORTHLINE UTILITIES LLC FIBER OPTIC MAKE READY 864810 SB&C SERVICES 59 LLC FIBER OPTIC CABLE CONSTRU 203537 3 X 0 ELECTRIC SERVICE REVENUE 221000 6773746 6773746 FIBER OPTIC BROADBAND 517000 4320598 3088699 1231899 NYS FTTH GRANT 221000 437772 437772 POLE ATTACHMENTS 221000 106811 106811 RESALE UTILITY CONTRACT 221000 1284625 1283985 640 121902 95764 26138 13045454 58706 13384 45322 0 0 0 0 0 0 0 0 13104160 11786777 1272061 45322 0 0 0 1660393 426675 0 1290219 0 674867 157491 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 814423 0 2293631 0 ACCESS COST 1852069 DISTRIBUTION OPERATIONS 978108 COST OF MERCHANDISE SOLD 734881 DISTRIBUTION MAINTENANCE 645655 1201032 12729444 0 0 0 322575 301472 997691 2808922 688050 1295120 993784 888084 0 0 0 1099356 1706526 493867 518425 64214885 21659300 39509726 42555585 0 0 1222920 1268985 122552 122552 3635734 3453018 49086255 54918689 711858 1610458 263253 297099 20709084 23966363 13473587 13361329 35157782 39235249 X 13928473 15683440 13928473 15683440 49086255 54918689 X 374716 1380252 X false true X true false 739081 739081 1204323 555276 649047 58760663 21104024 37656639 3510818 3510818 42555585 Deferred loan acquis costs 311569 Post retirement benefits 3128000 Prelim survey 9220 RS Plan prepayment Transport clearing 4229 3453018 Deferred tax liability 312256 Grant funds related to fixed assets 7294666 Obligation for postretirment benefits 5754407 13361329 X 11636244 11636244 1467916 1467916 13104160 9620604 9620604 3108840 3108840 12729444 Part X : FIN48 Footnote The Cooperative reviews the components of revenues, gains, and other support and analyzes whether the position that the organization takes with regard to a particular item of income would meet the definition of an uncertain tax position. The Cooperative files information returns in the U.S. federal jurisdiction. There is no liability for unrelated business tax.SCHEDULE D PARTS XI&XII - RECON OF REV/EXPFOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. Part XI, Line 4b: Other revenue amounts included on 990 but not included in F/S COST OF MERCHANDISE SOLD $1283815 DEFERRED TAX $164632 CONTRIBUTION IN AID - NONMEMBER $19469 Part XII, Line 4b: Other revenue amounts included on 990 but not included in F/S COST OF MERCHANDISE SOLD $1283815 Allocation of capital credits to patrons $1660393 DEFERRED TAX $164632 X false false false BRAD ALGER 1ST CLASS LINEMAN 138486 545 12151 5501 156683 JUSTIN MARCH MAINTENANCE FOREMA 140058 711 26187 6259 173215 KEVIN M ROTTINGEN LINE FOREMAN 158331 335 35012 27197 220875 STEVEN SICKLER CONSTRUCT FOREMAN 126925 733 26645 40681 194984 TIMOTHY R JOHNSON CEO/counsel 188744 2300 7782 45865 15884 260575 Part III, Additional Information 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, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. 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. NAME: TIMOTHY JOHNSON $ 45,865EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 45,865 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,865)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,568EXPENSE TO THE COOPERATIVE $ 32,568NAME: KEVIN ROTTINGENACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,012EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 35,012 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,012)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,125EXPENSE TO THE COOPERATIVE $ 36,125NAME: JUSTIN MARCHACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,187EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 26,187LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,187)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,683EXPENSE TO THE COOPERATIVE $ 34,683NAME: STEVEN SICKLERACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,645EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 26,645LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,645)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,683EXPENSE TO THE COOPERATIVE $ 34,683NAME: BRAD ALGERACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,151EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 12,151LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,151)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,768EXPENSE TO THE COOPERATIVE $ 18,768 Form 990, Part VI, Section A, Line 6 Any person, firm, association, corporation, or body politic or subdivision thereof will become a member of the Otsego Cooperative, Inc. upon receipt of electric service from the Cooperative, provided that he or it has first:a)made written application for membershipb)agreed to purchase from the Cooperative electric energy c)agreed to comply with and be bound by the articles of incorporation and bylaws of the cooperative and any rules and regulation adopted by the Board Form 990, Part VI, Section A, Line 7a Members who are currently purchasing electric service from the Cooperative shall be considered active members and shall be entitled to vote at all regular and special membership meetings. Form 990, Part VI, Section A, Line 7b Each active membership shall be entitled to only one vote upon any matter submitted to a vote at a meeting. All questions shall be decided by a vote of a majority of the active members voting there on in person or by proxy, except as otherwise proved by law, the articles of incorporation or by-laws.The following acts require approval of the members of the Cooperative:1. Dissolution/Liquidation of the Cooperative2. Merger or consolidation of the Cooperative with another Organization3. Disposal of a substantial portion of the Cooperative's assets4. Amendment to the Articles of Incorporation5. Amendment to the Bylaws Form 990, Part VI, Section B, Line 11b It shall be the policy of the Otsego Electric Cooperative, Inc. to have Form 990 reviewed by its Board of Directors each year prior to filing with the Internal Revenue Service.Said review can be completed during the course of a regularly scheduled the Board of Directors' meeting at which a quorum is present. Form 990, Part VI, Section B, Line 12c Each Official must annually complete and sign the Conflict of Interest Certification and Disclosure Form attached to this Policy and deliver the completed and signed Form to President or Manager. If an Official discovers any information or fact that could impact another Official's compliance with this Policy, then the Official must disclose the information or fact to President or Manager immediately. Form 990, Part VI, Section B, Line 15b The Board of Directors is responsible for overseeing the evaluation process for the Chief Executive Officer.The process is intended to formally assess the Chief Executive Officer's past performance as well as to help the Board determine future developmental needs for the Chief Executive Officer. Consequently, there are two types of measures: a) Financial Performance Measures, which track accountability for past performance, and b) Leadership Effectiveness Measures, which identify the key objectives that will assure the future success of the Cooperative. Leadership Effectiveness Measures include, but are not limited to, the following:LeadershipBuilding Team SpiritManaging Vision and MissionOrganizational FlexibilityApproachability and AccessibilityEffective Decision MakingBusiness AcumenAccountabilityDeveloping PeopleIntegrity and TrustResultsPresentation SkillsMaintaining Organizational ValuesCommunity InvolvementThe following steps are utilized to carry out this review:The Board reviews performance measures and targets and submits these for full Board approval on or before the start of the first meeting of the fiscal year.The Chief Executive Officer provides a self-evaluation to the Board within seventy-five days of the end of the fiscal year.Directors will provide their individual assessments of the Chief Executive Officer's performance. These assessments should include the Board's appraisal of the Financial Performance Measures and the Leadership Performance Measures approved by the Board as well as any other aspect of the Chief Executive Officer's performance that the Directors deem relevant. In addition, Directors should identify any future developmental needs they deem necessary for the Chief Executive Officer.The Board accumulates this information and recommends annual compensation of the Chief Executive Officer based on the evaluation. After agreement by the Board to the evaluation, the President of the Board will meet with the Chief Executive Officer to discuss the Board's assessment of performance and developmental needs for the Chief Executive Officer. The Chief Executive Officer may then take the opportunity to discuss his or her reaction to the evaluation. Form 990, Part VI, Section C, Line 19 It shall be the policy of Otsego Electric Cooperative, Inc. to have governing documents, including the By-Laws, annual financial reports, and Conflict of Interest Policy available to the public upon request. These documents shall be kept at the Otsego Electric Cooperative, Inc. main office under the supervision and control of the Board of Directors and the Chief Executive Officer.The Chief Executive Officer of Otsego Electric Cooperative, Inc. shall produce the documents upon receipt of a written or verbal request of the public. The Chief Executive Officer shall keep a record of the written and/or verbal request. The By-Laws are available on the Cooperative's website. Form 990, Part XI, Line 9 ALLOCATION OF PATRONAGE CAPITAL = $1660393 Form 990, Part XI, Line 9 CONTRIBUTION IN AID NONMEMBER = -$19470 Form 990, Part XI, Line 9 PATRONAGE CAPITAL RETAINED PER BYLAWS = $118155 Form 990, Part XI, Line 9 PATRONAGE CAPITAL RETIRED - DISCOUNT = $6686 Form 990, Part XI, Line 9 TOTAL PATRONAGE CAPITAL RETIRED = -$385512 FORM 990 PART 1 LINE 19 - REVENUE LESS EXPENSES CURRENT YEAR REVENUE INCLUDES THE FOLLOWING:Nonrefundable CIAC - Non-patronage $ 19,469Gain from Non-member, non-patronage sales of broadband 355,247 Part I, Line 19 Revenue less Expenses $374,716 FORM 990 PART IX - ACCOUNTING SYSTEM THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (RUS). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990 PART IX LINE 24C - ADMIN & GENERAL ADMIN & GENERAL INCLUDE THE FOLLOWING EXPENSES:RETIRED EMPLOYEE HEALTH EXP $148,664MISC GENERAL EXPENSE 147,226OUTSIDE LEGAL & COMPLIANCE SER 142,043INSURANCE & DAMAGES/LOSS EXP 44,521MEMBERSHIPS & DUES 44,266BOARD OF DIRECTORS & ANNUAL MEETING EXPENSE 24,653TOTAL ADMIN & GENERAL $551,373 FORM 990 PART IX, LINE 4 - BENEFITS PAID TO MEMBERS PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY, SATELLITE AND/OR BROADBAND FIBER SERVICES TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S CALENDAR TAX YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY, SATELLITE AND/OR BROADBAND FIBER SERVICE FROM THE COOPERATIVE FOR THE 2023 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990 PART IX, LINES 5-7 - TOTAL WAGES RECON SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID:TOTAL PER LINES 5-7 $1,716,894LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (43,117) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (88,707)PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 427,093PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 241,638 TOTAL WAGES ACCRUED AND/OR PAID $2,253,801 OECONNECT LLC PO BOX 128 HARTWICK NY 13348 824262577 BROADBAND NY 4320598 3866827 OTSEGO ELECTRIC false false false false false false false false false false false false false false false false false false false