2024-11-01T11:47:41-07:00 2023-12-31 990 2023-01-01 610461919 EAST KENTUCKY POWER COOPERATIVE INC EAST 8597444812 PO Box 707 Winchester KY 403920707 Clifton E Scott Executive VP, CFO 8597444812 2024-11-11 1 2023 2024-10-15 13:58:12Z Anthony Campbell PO Box 707 Winchester KY 403920707 1127407898 0 X www.ekpc.coop X 1941 KY East Kentucky Power Cooperative exists to serve its member-owned cooperatives by safely delivering reliable, affordable and sustainable energy and related services. 16 16 845 0 0 0 0 0 1263336554 1110571328 2908707 9434834 1561243 7387922 1267806504 1127394084 33130 151122 0 0 105846275 109556657 0 0 0 1126046760 999830634 1231926165 1109538413 35880339 17855671 3752442908 3884916295 2965497017 3100895910 786945891 784020385 East Kentucky Power Cooperative exists to serve its member-owned cooperatives by safely delivering reliable, affordable and sustainable energy and related services. 0 0 East Kentucky Power Cooperative exists to serve its member-owned cooperatives by safely delivering reliable, affordable and sustainable energy and related services. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 349 0 1 845 1 0 0 0 0 0 1052971160 71182234 0 1 0 X 16 16 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Clifton E Scott 8597444812 4775 Lexington Rd PO Box 707 Winchester KY 40392 X Anthony S Campbell President and CEO 80 X 1559523 0 109683 Don M Mosier EVP, Chief Operating Officer 60 X 818220 0 51502 Craig A Johnson Sr. VP, Power Production 50 X 352341 0 250985 Michael A McNalley Former Officer (CFO, retired 1/2021) 40 X 490903 0 0 David M Crews Sr. VP, Power Supply 60 X 435047 0 50833 Denver York Sr. VP, Power Delivery & System Operations 50 X 311297 0 146959 David S Samford General Counsel 50 X 400574 0 46441 Thomas J Stachnik VP, Finance & Treasurer 50 X 294582 0 90937 Jerry B Purvis VP, Environmental Affairs 60 X 251205 0 128755 Denise Foster Cronin VP, Federal & RTO Regulatory Affairs 60 X 283099 0 74922 Clifton E Scott EVP, Chief Financial Officer 50 X 323651 0 32860 Ann F Bridges Former Officer (CFO, separated 12/2022) 0 X 333895 0 0 Roger R Cowden Sr. Corporate Counsel 50 X 276788 0 45411 Bradford A Young VP, Engineering & Construction 50 X 261088 0 50093 Joseph T VonDerHaar Plant Manager-Spurlock 50 X 256476 0 36652 David A Smart Former Key Emp (General Counsel, retired 5/2022) 50 X 189347 0 0 Charles A Ahrman Chairman 20 X X 26500 0 26500 Jody E Hughes Vice Chairman 14 X X 39600 0 0 Randy D Sexton Secretary 6 X X 38200 0 0 Gregory H Corbin Treasurer 12 X X 37000 0 0 R Wayne Stratton Director 7 X 27450 0 9250 Oliver L Cornett Jr Director 10 X 36100 0 0 Boris W Haynes Director 12 X 33400 0 0 Timothy S Eldridge Director 7 X 31400 0 0 Joseph H Spalding Director 12 X 30800 0 0 Harold L Dupuy Director 10 X 28000 0 0 Raymond E Thomas Director 4 X 27950 0 0 Danny L Wallen Director 4 X 27200 0 0 Elbert Hampton Director 4 X 25200 0 0 William P Shearer Director, term ended June 2023 10 X 16500 0 0 Darrell Tingle Director, term ended June 2023 6 X 14800 0 0 Steven D Hale Director, effective June 2023 8 X 13600 0 0 Kevin Howard Director, effective June 2023 9 X 13600 0 0 Ted A Holbrook Director, term ended June 2023 6 X 13600 0 0 William G Maddox Director, effective June 2023 8 X 13200 0 0 7332136 0 1151783 463 1 1 0 Davis H Elliot Construction Company Inc 673 Blue Sky Parkway Lexington KY 40509 Transmission Construction 17146612 Charah LLC 12601 Plantside Drive Louisville KY 40299 Construction & Landfill Operations 11549277 Burns & McDonnell Engineering Co Inc 9400 Ward Parkway Kansas City MO 64114 Design & Engineering 5076372 Siemens Energy Inc 4400 North Alafaya Trail Orlando FL 32826 Construction 3891481 B&B Electric Co Inc 1460 Sunshine Lane Lexington KY 40505 Construction 3863794 108 0 0 0 0 0 0 0 0 Sales of Electricity-Member Cooperatives 221112 1038106591 1038106591 0 0 Sales of Electricity-Other Utilities 221112 49049722 49049722 0 0 Steam Sales-Member Cooperatives 221112 13853350 13853350 0 0 Transmission Service Revenue 221112 4429667 4429667 0 0 Other Power Sales Arrangements 221112 559143 559143 0 0 4572855 4572855 0 0 1110571328 9034623 9034623 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 414025 0 13814 0 400211 400211 400211 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gain from Sale of Allowances 221112 369400 369400 0 0 Capital Credits 221112 912500 912500 0 0 Miscellaneous Non-Operating Income 221112 6106022 6106022 0 0 0 0 0 0 7387922 1127394084 1127394084 0 0 151122 0 0 0 6039610 0 74516827 12391904 10431085 6177231 1570649 3152152 279521 160000 0 0 8738054 2690507 23599486 3091226 0 15838450 4462750 0 68383 107360754 0 143059648 2315870 Fuel (Power Generation) 328085953 Purchased Power 164814451 Other Power Production/Power Supply Expense 136267399 Other Transmission and Distribution Expense 30534665 23740716 1109538413 0 0 0 68854263 71254103 160814585 225571134 0 0 149448061 110897956 0 0 0 0 120293 107892 197153600 273726240 142359567 141651254 4885908777 1856761519 2998609017 3029147258 19196059 16595883 13637820 14501010 0 0 0 0 2249643 1463565 3752442908 3884916295 174306418 136866632 0 0 0 0 700000 0 0 0 0 0 2338581021 2526560177 350000000 325000000 101909578 112469101 2965497017 3100895910 X 0 0 0 0 786945891 784020385 786945891 784020385 3752442908 3884916295 X 17855671 184734 0 0 0 -20965911 X 0 1 X 1 0 103989232 0 103989232 504183263 0 252050379 252132884 0 0 0 0 4196509482 0 1592173924 2604335558 81226800 0 12537216 68689584 3029147258 0 Customer Advances - Construction 13631135 Deferred Credits 7672491 Accumulated Operating Provision and Liabilities 11506434 Accumulated Post Retirement Benefit Obligation 47243761 Asset Retirement Obligation 32415280 112469101 X 1128657004 0 0 0 1262920 1262920 1127394084 0 0 0 1127394084 1110801333 0 0 0 1262920 1262920 1109538413 0 0 0 1109538413 Schedule D, Part X, Line 2 The Cooperative is exempt under Section 501(c)(12) of the Internal Revenue Code from federal income tax for any year in which 85% of its gross income is derived from members but is responsible for income taxes on certain unrelated business income. ASC Topic 740-10, Income Taxes, clarifies the accounting for uncertainty in income taxes and income recognized in the financial statements. This interpretation requires financial statement recognition of the impact of a tax position if a position is more likely than not of being sustained on audit, based on the technical merits of the position. Additionally, ASC Topic 740-10 provides guidance on measurement recognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. The Cooperative has determined that more than 85% of its gross income is derived from members and it meets the exemption status under Section 501(c)(12). Schedule D, Part XI, Line 2d A net periodic benefit interest credit and certain nonutility expenses were included in Other Nonoperating Revenue on the audited Statements of Revenue and Expenses and Comprehensive Margin. These amounts were included in functional expenses on the Form 990. Schedule D, Part XII, Line 2d A net periodic benefit interest credit and certain nonutility expenses were included in Other Nonoperating Revenue on the audited Statements of Revenue and Expenses and Comprehensive Margin. These amounts were included in functional expenses on the Form 990. 1 Eastern Kentucky University Foundation 521 Lancaster Avenue CPO 35A Richmond KY 40475 611131682 501(c)(3) 100000 General donation to Eastern Kentucky University Foundation Manchester Campus Endowed scholarship fund. Kentucky Association for Economic Development Foundation 101 Burch Court Frankfort KY 40601 743242650 501(c)(6) 10000 Donation for Kentucky product development initiative. 2 2 Schedule I, Part I, Line 2 East Kentucky Power Cooperative, Inc. does not issue grants. X 1 1 X X X X 1 1 0 Anthony S Campbell President and CEO 1198276 0 0 0 361247 0 87935 0 26899 0 1674357 0 0 0 Don M Mosier EVP, Chief Operating Officer 643444 0 0 0 174776 0 30254 0 26398 0 874872 0 0 0 Craig A Johnson Sr. VP, Power Production 329724 0 0 0 22617 0 223658 0 31669 0 607668 0 0 0 Michael A McNalley Former Officer (CFO, retired 1/2021) 490903 0 0 0 0 0 0 0 0 0 490903 0 0 0 David M Crews Sr. VP, Power Supply 347506 0 0 0 87541 0 33000 0 22241 0 490288 0 0 0 Denver York Sr. VP, Power Delivery & System Operations 290825 0 0 0 20472 0 126366 0 24734 0 462397 0 0 0 David S Samford General Counsel 381466 0 0 0 19108 0 33000 0 18039 0 451613 0 0 0 Thomas J Stachnik VP, Finance & Treasurer 282035 0 0 0 12547 0 62913 0 32131 0 389626 0 0 0 Jerry B Purvis VP, Environmental Affairs 243244 0 0 0 7961 0 102382 0 30141 0 383728 0 0 0 Denise Foster Cronin VP, Federal & RTO Regulatory Affairs 264045 0 0 0 19054 0 57025 0 21835 0 361959 0 0 0 Clifton E Scott EVP, Chief Financial Officer 268843 0 10000 0 44808 0 16542 0 18164 0 358357 0 0 0 Ann F Bridges Former Officer (CFO, separated 12/2022) 16923 0 0 0 316972 0 0 0 2 0 333897 0 0 0 Roger R Cowden Sr. Corporate Counsel 268606 0 0 0 8182 0 27181 0 22236 0 326205 0 0 0 Bradford A Young VP, Engineering & Construction 247556 0 0 0 13532 0 25220 0 28681 0 314989 0 0 0 Joseph T VonDerHaar Plant Manager-Spurlock 252117 0 0 0 4359 0 25404 0 15071 0 296951 0 0 0 David A Smart Former Key Emp (General Counsel, retired 5/2022) 189347 0 0 0 0 0 0 0 3 0 189350 0 0 0 Schedule J, Part I, Line 1a EKPC has a written employee travel and expense policy. Of all travel completed by listed persons in 2023, there were three first-class flights. The flights were for business purposes and accordingly, not included in employee taxable compensation. Listed person participating in the first class flights was a corporate officer. Schedule J, Part I, Line 3 The President and CEO's compensation is determined by the Board of Directors. The Board of Directors retains a consulting group to perform a comparability data assessment to benchmark the compensation of peer groups. There is a written employment contract. Schedule J, Part I, Line 4 Line 4a - Ann F. Bridges received a severance payment of $250,000 which is included in other reportable compensation on Schedule J, Part II, Column B(iii). Line 4b - The Cooperative provides a 457(f) Supplemental Executive Retirement Plan to certain executives of the organization. The plan is considered a defined contribution plan whereby annual contributions are made based upon a percentage of base salary. Participants become 100% vested and the account balance paid out upon attaining age 62 or if separation occurs due to involuntary termination without cause, disability, or death. Separation for any other reason before age 62 will result in participants forfeiting their benefits. 457(f) payments made in 2023 include: Anthony S. Campbell, $140,400; Don M. Mosier, $149,946; and David M. Crews, $59,953. These amounts, which represent what would have been contributed to the plan if they had not attained age 62 in a previous year, are included in other reportable compensation on Schedule J, Part II, Column B(iii). The Cooperative also participates in a Deferred Compensation Pension Restoration Plan, which is intended to provide a supplemental benefit to highly compensated employees who would experience a reduction in their pension benefit from the NRECA Retirement and Security Plan due to Internal Revenue Code limitations. The President and CEO is the only named participant. The plan was closed to new participants, effective January 1, 2015. Anthony S. Campbell received a Pension Restoration Plan payment of $210,525 which is included in other reportable compensation on Schedule J, Part II, Column B(iii). Form 990, Part VI, Section A, Line 6 East Kentucky Power Cooperative, Inc., (EKPC) is a rural electric generation and transmission cooperative that provides wholesale electric power and related services to its 16 member rural electric distribution cooperatives. By virtue of their memberships, these member cooperatives own EKPC. Each member cooperative has a representative that serves on the Board of Directors of EKPC. Each member is also a tax-exempt organization. The members are Big Sandy RECC, Blue Grass Energy Cooperative, Clark Energy Cooperative, Cumberland Valley Electric, Farmers RECC, Fleming-Mason Energy, Grayson RECC, Inter-County Energy Cooperative, Jackson Energy Cooperative, Licking Valley RECC, Nolin RECC, Owen Electric Cooperative, Salt River Electric, Shelby Energy Cooperative, South Kentucky RECC and Taylor County RECC. Form 990, Part VI, Section A, Line 7a The organization does have members who may elect one or more members of the governing body as explained on Form 990, Part VI, Line 6. Form 990, Part VI, Section A, Line 7b The dissolution of the Cooperative, the merger or consolidation with any other corporation, or the sale, lease, exchange, transfer or other disposition of all or substantially all of the Cooperative's assets must be approved by a majority of the total members. Form 990, Part VI, Section B, Line 11b Per the Audit Committee Charter, the Audit Committee reviews the Form 990 to ensure compliance. A copy of the Form 990 is made available electronically to the full Board of Directors before it is filed. Form 990, Part VI, Section B, Line 12c Directors, key management, managers and employees involved in the procurement process annually sign a Conflict of Interest Compliance Statement stating whether they have any actual or potential personal relationships or business interests with any vendor with which the Cooperative does business. These individuals also affirm that they have a continuing responsibility to amend their statement. All compliance statements are reviewed by Internal Audit and any stated conflicts or potential conflicts are researched with the results provided to the Audit Committee. Form 990, Part VI, Section B, Line 15 The President and CEO's compensation is determined by the Board of Directors in executive session based upon the results of a comparability data assessment conducted by a consulting group retained by the Board. The Chairman of the Board provides documentation of any pay change to General Counsel. General Counsel retains this documentation, along with the comparability study on file. For other officers and key employees of the organization, each job description is ranked and assigned a salary grade. The midpoints for each salary grade are then determined using external benchmarking data. Minimums and maximums are calculated and the compensation model is updated annually. Form 990, Part VI, Section C, Line 19 The organization's annual report, including financial statements, is posted on its own website. The conflict of interest policy is made available to vendors. The governing documents, Articles of Incorporation, Bylaws, Board and Administrative Policies are available via the Intranet to employees and Directors, but not to the public. Form 990, Part VII, Section A, Line 1a The compensation structure for Directors is based upon the results of a director compensation comparability study and the need to attract and retain directors with skills needed to govern a G&T utility. The structure recognizes and compensates directors for the considerable time and effort spent outside of meetings fulfilling their oversight and governance roles. A questionnaire was distributed to each current and former officer, key employee and highest compensated employee. The questionnaire included name, title, date, hours per week and signature of each individual and contained relevant Form 990 instructions and definitions. Form 990, Part VII, Section A, Line 3 Former Officer, Michael McNalley, retired from his CFO position in January 2021. He was hired on a consulting basis to serve as interim CFO and assist in recruiting and transitioning the new CFO to EKPC in 2023. His compensation for those services was $490,903. Former Key Employee, David Smart, retired from his General Counsel position in May 2022. He was hired on a consulting basis in 2023 to provide assistance in evaluating environmental regulations and developing a report for strategic planning purposes. His compensation for those services was $189,347. Form 990, Part XI, Line 9 Other changes in net assets or fund balances of ($20,965,911) is comprised of the actuarial loss on the accumulated postretirement medical benefit obligation.