2024-10-14T09:12:49-07:00 2023-12-31 990 2023-01-01 390233059 DAIRYLAND POWER COOPERATIVE DAIR 6087884000 P O Box 817 3200 East Avenue South La Crosse WI 546020817 Brent Ridge President and CEO 6087884000 2024-10-14 1 2023 2024-10-15 13:58:12Z Dairyland Power Cooperative PO BOX 817 3200 East Avenue South La Crosse WI 546020817 494461937 0 X www.dairylandpower.com X Cooperative 1941 WI Dairyland Power Cooperative is an electric generation and transmission cooperative organized under the laws of WI & MN. The Cooperative, whose principal offices are located in WI, provides wholesale electric service to Class A members engaged in retail sale of electricity to member consumers located in WI, MN, IA and IL, and provides electric and other services to Class C, D, E and Special Services members, all on a cooperative, not-for-profit basis. 24 24 560 0 0 -7500 0 0 531090988 491296546 2632237 3153451 31831 11940 533755056 494461937 0 0 15207693 19136682 66304510 78821146 0 0 0 449420325 391353505 530932528 489311333 2822528 5150604 1527963858 1585303722 1170531138 1208297654 357432720 377006068 Our Mission is to power our communities and empower cooperative members to improve the quality of their lives. Our members are the reason for our existence. We will provide our members with value in the form of safe, reliable, sustainable and competitively-priced electricity. We will build strong relationships with our member cooperatives, employees and all stakeholders. We will live the Cooperative Principles and hold ourselves true to our core values of accountability, integrity, innovation and commitment to community. 0 0 Dairyland Power is an electric generation and transmission cooperative association organized under the laws of WI and MN. The Cooperative, whose principal offices are located in Wisconsin, provides wholesale electric service to Class A members engaged in the retail sale of electricity to member consumers located in WI, MN, IA, and IL, and provides electric and other services to Class C, D, E and Special Services members, all on a cooperative, not-for-profit basis. This provides the basis for Dairyland's exempt purpose. Dairyland Power Cooperative is under the jurisdiction of the Rural Utilities Service which requires Dairyland's accounting records to be maintained, with minor modifications, in accordance with the Uniform System of Accounts for Public Utilities as prescribed by the Federal Energy Regulatory Commission (F.E.R.C.). Because of this, we do not have our expenses grouped by function as shown on the Form 990. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 0 0 1 205 0 560 1 1 1 0 0 0 0 453033124 36118328 0 0 0 X 24 24 0 0 0 0 1 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 X X X April Wehling Exec VP and CFO 6087884000 3200 East Ave So La Crosse WI 54601 X Brent Ridge President and Chief Executive Officer 50 1 X 942195 0 97460 Phillip M Moilien Executive Vice President and Chief Financial Officer (Retired 07/14/23) 0 0 X 470957 0 129946 Benjamin L Porath Executive Vice President and Chief Operating Officer 50 0 X 382235 0 124993 Amanda Hoefling Executive Vice President and Chief Administrative Officer 50 0 X 361307 0 107225 John P Carr Vice President, Strategic Growth 50 0 X 309008 0 151591 John B Young Vice President and Chief Risk Officer 47 0 X 239970 0 180249 Joyce Peppin Executive Vice President and General Counsel 50 0 X 279067 0 85726 April Wehling Executive Vice President and Chief Financial Officer 55 0 X 272971 0 73114 Jeremy Browning Vice President Generation 55 0 X 281151 0 63979 Nathaniel Melby Vice President and Chief Information Officer 45 0 X 258795 0 77827 Brian Treadway Director of Transmission Services 46 0 X 211516 0 90098 Ken Schlimgen Mgr, Mkt Opr, Trading and Wholesale Power 55 0 X 198283 0 81174 Matt Lewis Dir, Business Development and PMO 45 0 X 215358 0 56305 Elizabeth Ressie Dir, Safety and Human Resources 50 0 X 198362 0 65327 Kathleen Galioto Vice President and Deputy General Counsel 55 0 X 208543 0 46484 Brad Smalldridge Vice President, Transmission Services and Business Development (Term 07/10/23) 0 0 X 195264 0 59630 Nicole Metzler Controller 50 0 X 203100 0 27142 William L Berg President and CEO (Retired 02/15) 0 0 X 109782 0 0 Jenny Scharmer Current Director - Chair 19 0 X 38829 0 5156 Jim Hager Current Director 13 0 X 33697 0 7386 Tom Zwiefelhofer Current Director - Vice Chair 10 0 X 29149 0 6327 Barry Radloff Current Director 8 X 24030 0 6637 Jeffrey Bradley Current Director - Secretary 8 X 26047 0 4337 Ed Gullickson Current Director 18 X 23954 0 6344 Mark Kingland Current Director 12 X 21824 0 7932 Sandra Davidson Current Director - Treasurer 12 X 25301 0 3607 Karen Newbury Current Director 9 0 X 22565 0 5964 Joe Mattingley Current Director 12 0 X 22849 0 5353 Chuck Zenner Current Director 8 0 X 23761 0 4228 Bill Trygstad Current Director 8 0 X 22958 0 4727 Jerry Huber Current Director 9 X 24117 0 3327 John Petska Current Director 6 X 21706 0 5146 Daniel Korn Current Director 13 X 24652 0 1138 Robert Hess Current Director 11 X 22635 0 3132 Jane Reich Current Director 9 X 21209 0 4055 Jeff Monson Current Director 9 0 X 21854 0 2224 Arthur Friedrich Current Director 10 X 19138 0 2893 Clarence Boettcher Current Director 5 0 X 19024 0 2737 Michael Baker Current Director 6 0 X 15101 0 3380 Dennis Frame Current Director June-Dec 7 X 14889 0 1780 Larry Hall Current Director June-Dec 4 X 11484 0 2522 Brian Berg Current Director 12 X 10842 0 1749 Neil Plourde Current Director Jan-June 8 0 X X 9773 0 2337 Scott Warwick Current Director Jan-June 6 0 X X 9126 0 2133 David L Anderson Current Director Jan-June 12 0 X X 9608 0 515 Ed Hass Current Director Jan-June 9 0 X X 7076 0 1309 Ann L Young Current Director - Alternate 8 0 X 1419 0 119 Dan Tindell Current Director - Alternate 8 0 X 824 0 300 Thomas Schwartz Current Director - Alternate 8 0 X 772 0 122 5918077 0 1627186 270 1 1 0 BNSF Railway Company 2301 Lou Menk Drive Fort Worth TX 76131 Coal Transport and Delivery Service 46154510 The Boldt Company 2525 N Roemer Rd Appleton WI 54911 Construction Services 3222264 Zielies Tree Service PO Box 307 Bruce WI 54819 Vegetation Management Services 2871536 Paragon Systems Inc - Securitas SCI 13900 Lincoln Park Drive Suite 370 Herndon VA 201713264 Security Services 2721501 Veit and Company Inc 14000 Veit Place Rogers MN 55374 Construction Services 2541905 91 X 0 G & T Wholesale Electricity 221000 491296534 491296534 0 0 SO2 Allowances 221000 12 12 0 0 0 0 0 0 491296546 4168342 0 0 4168342 0 0 0 0 0 0 0 0 11940 0 0 0 11940 0 11940 11940 0 0 0 -1014891 0 0 0 -1014891 -1014891 -1014891 0 0 0 494461937 490293595 0 4168342 0 0 0 19136682 4695329 48877438 10875588 10521611 3851180 497823 354988 104508 8960180 6072479 2351337 1369563 677750 38433184 65584950 4857604 Distribution 1047798 Production 236251072 Transmission 14209666 Taxes 10045421 535182 489311333 0 0 0 X 25849057 38283573 28963 1796 0 0 44966977 41474242 0 0 0 0 0 0 46477827 75258289 30429770 46535381 2261679146 957470766 1291518623 1304208380 4127288 6460038 16058762 15416949 27568071 22607169 40938520 35057905 1527963858 1585303722 112567296 129728687 0 0 0 0 0 0 0 0 0 0 1003444889 939826544 0 0 54518953 138742423 1170531138 1208297654 X 620 640 0 0 357432100 377005428 357432720 377006068 1527963858 1585303722 X 5150604 0 0 0 0 14422744 X 0 1 X 1 1 1 0 41836202 41836202 0 2090243313 956367898 1133875415 0 0 0 0 0 0 0 0 0 129599631 1102868 128496763 1304208380 Other Deferred Credits - ISFSI 2107508 Other Deferred Credits 6830475 Other Regulatory Liabilities 15965000 Notes Payable - CoBank 95000000 Notes Payable to Associated Companies - Coop Prepayments 1821227 Obligations Under Capital Leases - NonCurrent 8311923 Lease Liability - Operating Leases 2463 Deferred Compensation Benefits 1988436 APBO-ASC 715 (FAS 106) 3677422 Other Non Current Liabilities 2794243 Asset Retirement Obligations 243726 138742423 494461937 0 0 0 0 0 494461937 0 0 0 494461937 470174651 0 0 0 0 0 470174651 0 19136682 19136682 489311333 Schedule D, Part VI, Line 1b Dairyland Power Cooperative is under the jurisdiction of the Rural Utilities Service, which requires Dairyland's accounting records to be maintained, with minor modifications, in accordance with the Uniform System of Accounts for Public Utilities as prescribed by the Federal Energy Regulatory Commission (F.E.R.C.). Because of this, we do not have our expenses grouped by function as shown on the Form 990. Our Accumulated Depreciation is grouped into just one account. For purposes of the Form 990, we cannot break out Buildings and Equipment and the associated depreciation. Schedule D, Part VI, Line 1d Dairyland Power Cooperative is under the jurisdiction of the Rural Utilities Service, which requires Dairyland's accounting records to be maintained, with minor modifications, in accordance with the Uniform System of Accounts for Public Utilities as prescribed by the Federal Energy Regulatory Commission (F.E.R.C.). Because of this, we do not have our expenses grouped by function as shown on the Form 990. Our Accumulated Depreciation is grouped into just one account. For purposes of the Form 990, we cannot break out Buildings and Equipment and the associated depreciation. Schedule D, Part X, Line 1 As of December 31, 2023, the Cooperative had various revenue deferrals reflected as regulatory liabilities. The revenue deferrals pertained to favorable results from market credits through transactions with the Mid-Continent Independent System Operator (MISO) in addition to favorable results due to market conditions. In 2023, the Board of Directors approved the creation of a regulatory liability revenue deferral plan in the amount of $15,965,000 of 2023 revenue and plans to recognize $5,965,000 in 2024, with the remaining $10,000,000 to be recognized in 2026 and 2027. Projects include: JPM 2024 Maintenance ($2.29M); System Enhancements ($1.31M); Energy Trading Software ($.545M); Battery Storage Innovation ($1.8M); and RockGen Energy Center Outage 2026/2027 ($10M). This plan was approved by RUS in stages beginning in December 2023 and ending in February 2024. Schedule D, Part XII, Line 4b As a result of complying with the 2011 requirements of reporting dividends paid by Section 501( c)12 organizations on Line 4 of Form 990 Part IX, Dairyland Power Cooperative has interpreted this to mean capital credits allocated during the tax year. Because the allocation amount is not a functional expense on Dairyland's audited financial statements, an adjustment of the allocated amount of $19,136,682 was required to reflect the correct audited gross margin for Dairyland of $24,287,286. X X 1 1 X X X X 0 1 1 Brent Ridge President and Chief Executive Officer 925160 0 0 0 17035 0 61026 0 46831 0 1050052 0 0 0 Phillip M Moilien Executive Vice President and Chief Financial Officer (Retired 07/14/23) 328759 0 138456 0 3742 0 109572 0 22632 0 603161 0 0 0 Benjamin L Porath Executive Vice President and Chief Operating Officer 351838 0 21209 0 9188 0 89533 0 39679 0 511447 0 0 0 Amanda Hoefling Executive Vice President and Chief Administrative Officer 349163 0 8631 0 3513 0 70892 0 39789 0 471988 0 0 0 John P Carr Vice President, Strategic Growth 296053 0 1500 0 11455 0 116796 0 42451 0 468255 0 0 0 John B Young Vice President and Chief Risk Officer 233690 0 2000 0 4281 0 146998 0 36936 0 423905 0 0 0 Joyce Peppin Executive Vice President and General Counsel 275080 0 2000 0 1987 0 51181 0 37641 0 367889 0 0 0 Jeremy Browning Vice President Generation 272987 0 1000 0 7163 0 27910 0 40956 0 350016 0 0 0 April Wehling Executive Vice President and Chief Financial Officer 267846 0 1500 0 3626 0 38848 0 37138 0 348958 0 0 0 Nathaniel Melby Vice President and Chief Information Officer 255992 0 1000 0 1803 0 37739 0 43528 0 340062 0 0 0 Brian Treadway Director of Transmission Services 206932 0 1000 0 3583 0 57067 0 36681 0 305263 0 0 0 Ken Schlimgen Mgr, Mkt Opr, Trading and Wholesale Power 181880 0 8500 0 7903 0 81006 0 4855 0 284144 0 0 0 Matt Lewis Dir, Business Development and PMO 210205 0 1000 0 4153 0 16116 0 43873 0 275347 0 0 0 Elizabeth Ressie Dir, Safety and Human Resources 191198 0 6250 0 914 0 29509 0 37945 0 265816 0 0 0 Kathleen Galioto Vice President and Deputy General Counsel 206371 0 1000 0 1172 0 31639 0 17145 0 257327 0 0 0 Brad Smalldridge Vice President, Transmission Services and Business Development (Term 07/10/23) 189602 0 1000 0 4662 0 38633 0 22887 0 256784 0 0 0 Nicole Metzler Controller 199579 0 1500 0 2021 0 27142 0 2149 0 232391 0 0 0 Schedule J, Part I, Line 1a Dairyland Power Cooperative offers reimbursements to employees under a Wellness Program Plan. The Wellness Program Plan includes up to $150 towards each component for the calendar year for the cost of membership to the local YMCA or other selected Fitness Centers/Memberships, the cost of approved Weight Loss Program and the cost of an approved smoking cessation program. For 2023, the value of the Fitness Center Reimbursement was included in the reportable compensation for the following Key Employees and Highest Compensation Employees: Brent Ridge, April Wehling, Benjamin Porath, Amanda Hoefling, John Young, Jeremy Browning, Nathanial Melby, Kathleen Galioto, Brian Treadway and Elizabeth Ressie. Dairyland Power Cooperative also reimburses members of the Executive Team for costs incurred for executive physicals not covered by insurance. For 2023, the grossed-up value of the executive physical reimbursement was included in the reportable compensation for the following Key Employees: Brent Ridge, April Wehling, Benjamin Porath, Jeremy Browning, and Brad Smalldridge. Schedule J, Part I, Line 3 CEO, Brent Ridge's compensation is established by review of his employment contract and information provided by the Manager of Total Rewards to the Board's Governance Committee. This information included data from surveys of other Generation and Transmission Cooperatives. The compensation recommendation of the Board's Governance Committee was presented to the full Board for vote as part of an executive session (only Board Members, outside legal counsel and Board recording secretary). Schedule J, Part I, Line 4 A pension True-Up Program was established for Brent Ridge, President and CEO; Philip Moilien, Executive Vice President and Chief Financial Officer; Benjamin Porath, Executive Vice President and Chief Operating Officer; and Amanda Hoefling, Executive Vice President and Chief Administrative Officer. This program was the result of calculations performed by outside consultants to establish an equitable amount of compensation due to maximum employer contribution limits to a defined benefit pension program. For 2023 Mr. Porath received quarterly payments totaling $21,209; and Ms. Hoefling received quarterly payments totaling $7,631. Mr. Moilien retired July 2023 and received $138,456. Ryan Metzler Padesky Electric empl Spouse of Controller Nicole Metzler 15600 Padesky Electric provided electrical services to DPC 0 Kory John Ressie-Tell Transport LLC Spouse of Elizabeth Ressie 10000 Subcontract activity through TJ's Excavating. 0 Form 990, Part IV, Line 12a The consolidated financial statements include the accounts of Dairyland Power Cooperative and Dairyland's wholly owned subsidiary, Genoa FuelTech, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Form 990, Part VI, Section A, Line 1a Dairyland's Board of Directors receives advice and recommendations for action from an Executive Committee, made up of members of the Board of Directors only. The Executive Committee is authorized by the bylaws to act on behalf of the Board on certain matters between meetings of the full Board. Form 990, Part VI, Section A, Line 6 Dairyland Power Cooperative provides wholesale electric service and other services to five classes of members (A, C, D, E, and Special Services.) Form 990, Part VI, Section A, Line 7a Member control of Dairyland is vested in its Board of Directors, consisting of representatives from each of the 24 Class A member distribution cooperatives. Each director is nominated by his or her member cooperative, and then elected by Dairyland's membership at Dairyland's annual meeting in June to serve a one-year term. Form 990, Part VI, Section A, Line 7b Pursuant to Dairyland's Bylaws, the Board of Directors is charged with directing the management of the cooperative. The Bylaws provide for the Dairyland President and CEO to be advised by a technical advisory committee consisting of the managers of the member distribution cooperatives. Member approval is required for amendments to the Articles of Incorporation or Bylaws for merger or consolidation, or for sale of more than 10% of the Cooperative's property. Form 990, Part VI, Section A, Line 9 Two former officers (Phil Moilien and William Berg) and one former key employee (Brad Smalldridge) no longer have Dairyland Power Cooperative email addresses. They can be reached by mail at these addresses: Phillip Moilien S304 Korthals Lane Chaseburg WI 54621 William Berg W5921 W Woodland Dr La Crosse, WI 54601 Brad Smalldridge 130 Harbortowne Rd Ridgeland, MS 39157 Form 990, Part VI, Section B, Line 11b Prior to filing the Form 990, approval of the draft return was obtained at the August 2024 meeting of the Board of Directors' Audit & Risk Management Committee. The Committee then presented its report on the return to the full Board at its August 2024 meeting. A copy of the draft return was provided to each board member. Following approval by the Board, the Form 990 was finalized and filed. Form 990, Part VI, Section B, Line 12c During June of each year, each director on the newly-elected Board is given a copy of Dairyland's Board Policy B109 Business Ethics and a Business Ethics disclosure report to be completed in accordance with Policy B109. A similar disclosure report is required of all Dairyland employees during the first quarter of each year. Each Director's completed report is reviewed by the Chairman of the Audit & Risk Committee. Any questions are reviewed by Dairyland's external counsel. Any unique responses are presented to the full Committee in executive session. Each employee's report is reviewed by the President & CEO and Chief Member Relations & HR Officer. The Chief member Relations & HR Officer's report, the report of the President & CEO, and the report of any other employee containing any unique responses are reviewed by the Chairman of the Audit & Risk Committee and the Chairman of the Board of Directors, and as appropriate by General Counsel and the full Committee. Form 990, Part VI, Section B, Line 15 Pursuant to written policies and guidelines adopted by the Board, the President and CEO's 2023 salary determination was conducted in 2023 by all three of the processes for determining compensation - review and approval by independent person, comparability data, and contemporaneous substantiation of the deliberation and decision. The President and CEO received a compensation increase in July 2023. This increase was a result of reviews conducted by the Board's Governance Committee, with assistance from the Manager of Total Rewards, who participated in compensation surveys of other Generation and Transmission Cooperatives and received a compensation survey conducted by an outside compensation consultant. Results of the surveys and individual board members' review of the CEO's performance were presented to the Governance Committee, who then presented to the full Board for vote as part of an executive session (only Board Members, outside legal counsel, and Board assistant secretary). Minutes of the Committee and Board meetings document those processes. For Executive Staff/Key Employees, the Manager of Total Rewards conducts an annual salary increase percentages survey of similar Generation and Transmission Cooperatives utilizing an outside compensation consultant. The results of the survey, along with current and previous salary information, are presented to the President and CEO. Based on the information provided, the President and CEO determines the applicable compensation for each of the Executive Staff. They include Executive Vice President and Chief Financial Officer, Executive Vice President and Chief Operating Officer, Executive Vice President and Chief Administrative Officer. The Executive Vice Presidents in turn determine the applicable compensation for respective Key Employees. They include Vice President Strategic Growth, Vice President Transmission Services and Business Development, Vice President and General Counsel, Vice President Generation, Vice President and Chief Information Officer, Chief Strategy Officer, and Chief Risk Officer. For the tax year covered by this return this was done in March 2023. The Executive Staff/Key employees did receive compensation increases in April 2023. Form 990, Part VI, Section B, Line 16a Weston 4, near Wausau, in central Wisconsin, is a 595-megawatt electric generator that uses clean coal technologies. Weston 4 began operating on June 30, 2008. Wisconsin Public Services owns 70% and Dairyland Power Cooperative owns 30%. It is not operated as a joint venture or similar arrangement. Form 990, Part VI, Section C, Line 19 Dairyland Power Cooperative makes its governing documents, conflict of interest policy, and financial statements available upon request to the public. Form 990, Part VII, Section A, Line 1a Members of the Board of Directors of Dairyland serve annual terms that run from the annual meeting of members in June of the year of election to the annual meeting in June of the following year. All average hours worked per week were based on a separate questionnaire, specific to the Form 990 filing, that was completed by all directors, officers, key employees and highly compensated employees. Form 990, Part VIII, Line 3 Included in the $4,168,342 is an investment loss, including fund expenses, on nuclear decommissioning funds of $98,907 recorded as decommissioning liabilities of $98,907. Form 990, Part X, Line 15 Dairyland Power Cooperative's accounting policies and the consolidated financial statements conform to accounting principles generally accepted in the United States of America applicable to electric cooperatives. During 2020, the Cooperative established a regulatory asset related to the unrecovered plant balances upon closure of the Genoa #3 generating station that occurred in 2021. Amounts are being recovered in rates through 2029. The December 31, 2023, balance associated with unrecovered plant balance was $19,092,905. The expected following year's portion of these regulatory assets is included in prepaid expenses and other current assets on December 31, 2023. In addition, Part X Line 15 includes $15,965,000 in segregated cash related to the regulatory liability revenue deferral plan that was established by the Board of Directors and approved by the Rural Utility Service. Additional information related to this plan is discussed in Schedule D, Part XIII. Form 990, Part XI, Line 9 Other change in net assets or fund balances is a result of: patronage capital retired of -$5,108,594, allocation of capital credits for 2023 of $19,136,682, other comprehensive gain of $394,658. Genoa FuelTech Inc 3200 East Avenue South La Crosse WI 54601 391828821 Investment Holding Corp WI N/A C 1 0 Charge EV LLC 3200 East Avenue South La Crosse WI 54601 854238708 Electric vehicle infrastructure initiatives WI N/A C 0.122 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0