2023-08-08T09:04:03-07:00 2022-12-31 990 2022-01-01 010056837 EASTERN MAINE ELECTRIC COOPERATIVE INC EAST 2074547555 PO Box 425 Calais ME 04619 Scott Hallowell Chief Executive Officer 2074547555 2023-08-08 1 1 11 1 AAL2 2022 2023-04-26 12:10:37Z Scott Hallowell PO Box 425 Calais ME 04619 16866575 0 X www.emec.com X 1940 ME EMEC is a non-profit consumer owned electric utility serving parts of Aroostook, Penobscot & Washington Counties on Maine's eastern border with Canada. 11 11 39 0 0 0 600000 0 15732900 16686459 85971 180116 0 0 16418871 16866575 0 0 846403 318357 2273052 2484506 0 0 0 13299416 14063712 16418871 16866575 0 0 49482318 52505943 34790567 37704495 14691751 14801448 Eastern Maine Electric Cooperative, Inc. (EMEC) is Maine's premiere consumer-owned utility providing low cost energy solutions and adding value to our member's quality of life through creative application of technology, capital and a dedicated workforce. 0 0 16866575 16866575 Utility System Programs, General/Others" Delivery of Electric Power (12,995 Consumers) 0 0 0 16866575 0 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 52 0 0 39 1 0 0 0 0 0 16099219 453211 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Scott M Hallowell 2074547555 PO Box 405 Calais ME 04619 Scott M Halowell Chief Executive Officer 50 X 239145 0 217176 Andrew M Tickle Manager of Engineering 45 X X 152125 0 100299 Michael Carrier Manager of Operations 45 X 122468 0 119122 Charles E McAlpin Manager of Member Services 45 X 131438 0 95261 Elery Beale Manager of Information Technology 45 X 112428 0 47302 Warren Moholland Chief Financial Officer 45 X 105711 0 44261 John L Gallant Board Member 2 X 4750 0 0 R Scott Skinner President 3 X X 4200 0 0 Ralph Staples Vice President 2 X X 3750 0 0 Earl Hill Jr Secretary 1 X X 3250 0 0 Lawrence E Clark Board Member 1 X 3250 0 0 David A Johnson Board Member 1 X 3250 0 0 John Larkin Treasurer 2 X X 3250 0 0 Dana R Hatton Board Member 1 X 3000 0 0 Vernon Wentworth Board Member 1 X 3000 0 0 David A Harbison Board Member 1 X 2750 0 0 Timothy R Peters Board Member 1 X 1500 0 0 Marshall W Lucas Board Member 1 0 X 750 0 0 900015 0 623421 6 0 1 0 Homeland Power & Utility 149 Target Industrial Circle Bangor ME 04401 Transmission line work 1966267 Nickerson & O'Day PO Box 911 Bangor ME 04402 Building Construction 1329637 Whitten's 2-Way Service 155 Roberston Blvd Brewer ME 04412 Radio Vendor 126960 County Concrete & Construction PO Box 214 Harrington ME 04673 Pavement 117180 Langille Construction 51 Langille Rd Washburn ME 04786 Line work 105008 6 0 Electric Supply & Delivery 221000 16686459 16686459 0 0 0 0 0 0 16686459 173175 173175 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6941 0 0 0 6941 6941 6941 0 0 0 16866575 16866575 0 0 X 318357 318357 528920 528920 0 0 1955586 1955586 0 0 0 0 0 0 0 0 21595 21595 50949 50949 0 0 0 0 0 0 34180 34180 115151 115151 72291 72291 0 0 62952 62952 35012 35012 90987 90987 745911 745911 0 0 2476745 2476745 134381 134381 Purchase Power & Energy Supply 6374192 6374192 0 0 Distribution & Transmission 2259854 2259854 0 0 Consumer Account, General Adm & Membership 1133862 1133862 0 0 Reg Fess, Energy Cons, LIAP 455650 455650 0 0 16866575 16866575 0 0 431431 709498 8128672 6381500 0 0 1519105 1471984 0 0 0 0 0 0 1085310 1462031 282339 359384 74406542 39475525 30909292 34931017 1041466 1033666 6084703 6156863 49482318 52505943 1163971 1269510 0 0 6381500 6381500 0 0 0 0 0 0 22974530 25526671 0 0 4270566 4526814 34790567 37704495 X 0 0 0 0 14691751 14801448 14691751 14801448 49482318 52505943 X 0 0 0 0 0 109697 X X 0 1 X 1 0 0 351 351 0 3456605 393637 3062968 0 0 0 0 0 4666447 2946917 1719530 0 66283139 36134971 30148168 34931017 Regulatory Asset 2805635 Deferred Debits 430661 Accumulated Operating Provision 2920567 6156863 Accrued State Taxes Interest & Other 590375 Defer Credits, Customer Advance for Construction 1269504 Consumer Deposits 183685 Regulatory Liability 2483250 4526814 X 16866575 0 0 0 0 0 16866575 0 0 0 16866575 16548219 0 0 0 0 0 16548219 0 318356 318356 16866575 Schedule D, Part X, Line 2 Footnote to Financial Statements Eastern Maine Electric Cooperative, Inc. (EMEC). The Cooperative is a nonprofit organization and is exempt from federal income tax under Internal Revenue Code Section 501(c)(12) as long as 85% or more of its gross income consists of amounts applicable to members for the sole purpose of meeting operating costs and expenses, and the Cooperative does not engage in business not related to its exemption. The Cooperative follows accounting guidance for uncertainty in income taxes which is part of ASC740, Income Taxes. The guidance prescribes a recognition threshold and measurement attributes for financial state recognition of a tax position taken or expected to be taken on a tax return. Schedule D, Part XII, Line 4b Payments to Patronage Capital Allocation. For the audited financial statement, the amount of patronage dividends paid or 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 the 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 the Cooperative's bylaws. X X X 0 0 0 Scott M Halowell Chief Executive Officer 235371 0 0 0 3774 0 201499 0 15677 0 456321 0 0 0 Warren Moholland Chief Financial Officer 105390 0 0 0 321 0 28704 0 15557 0 149972 0 0 0 Andrew M Tickle Manager of Engineering 150114 0 0 0 2012 0 95048 0 5250 0 252424 0 0 0 Michael Carrier Manager of Operations 121926 0 0 0 541 0 104085 0 15037 0 241589 0 0 0 Charles E McAlpin Manager of Member Services 130344 0 0 0 1094 0 88593 0 6668 0 226699 0 0 0 Elery Beale Manager of Information Technology 111904 0 0 0 524 0 31625 0 15677 0 159730 0 0 0 Form 990, Part VI, Section A, Line 6 Eastern Maine Cooperative, Inc. (EMEC) has members. EMEC is owned by its members. EMEC is a non-profit consumer-owned electric utility serving parts of Aroostook, Penobscot, and Washington Counties. Form 990, Part VI, Section A, Line 7a Eastern Maine Electric Cooperative, Inc. (EMEC) members own the cooperative. To conduct the affairs of the cooperative, they elect a Board of Directors, who are themselves, members. In the election of Directors, each member has one vote. Form 990, Part VI, Section A, Line 7b Membership approval for the disposition and acquisition of certain assets and bylaw changes. Form 990, Part VI, Section B, Line 11b The Form 990 is prepared by the Chief Financial Officer. The Chief Executive Officer reviews the Form 990. The form 900 is presented, reviewed, and discussed with the Board of Directors prior to the return being filed. Form 990, Part VI, Section B, Line 12c Each board member signs a Conflict of Interest Statement at the monthly board meeting in which they state whether they have a conflict and that they will not participate in any vote in which there may be a potential conflict of interest. Form 990, Part VI, Section B, Line 15 Comparative salary information from the 800 electric cooperatives is reviewed and used in developing a wage plan for non-bargaining unit employees, as approved by the board. At least once every three years, the wage plan is thoroughly reviewed and updated as necessary, as approved by the board. Annually, the board reviews the performance of the CEO and makes a salary change as applicable. Annually, the CEO reviews the performance of the non-bargaining unit employees and makes a salary change as applicable. Form 990, Part VI, Section C, Line 19 Eastern Maine Electric Cooperative, Inc. (EMEC) provides its governing documents, the By-Laws, to each new member; plus they are available upon request. The Conflict of Interest policy is available upon request. The financial statements are mailed annually to each member and are presented at the annual meeting. Form 990, Part IX, Line 4 The Cooperative's tax-exempt purpose is to provide electricity to its members and to do so, on a cooperative basis. Tax law defines "Operating on a cooperative basis" as the 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 the allocation of patronage capital) to its members. Patronage dividends are considered paid if the allocation is made (1) pursuant to pre-existing obligation, (2) from margins produced from the transaction done with or for members, and (3) in a fair and equitable basis 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 year-end of December 31. The amount reported on this line represents the amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of electric service from the Cooperative for the 2022 calendar year. Such amounts are allocated subsequent to the year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of electric service to members and are done pursuant to the obligation that exists in the bylaws of the Cooperative. Therefore, these amounts meet the definition of the term "Patronage dividends paid." Patronage Dividends to be allocated are reported on line 4. Please note; however, that because patronage dividends is the process by which the Cooperative operates at cost with its members and thereby a key component to accomplishing its exempt purpose, the cooperative has reported the amount it's 2022 margin that has been or is to be allocated to the members subsequent to year-end. Such amounts are an expense for Form 990 reporting and not an expense for financial statements prepared in accordance with the Generally Accepted Accounting Principles (GAAP). As a result, the difference between the Cooperative's GAAP basis financial statement and the revenue less expense reported on Part 1, line 19 is the amount of the patronage dividends reported as benefits paid to members. Form 990, Part IX, Line 7 Total Other Salaries and Wages were $3,246,297 of which $945,856 were charged to the balance sheet accounts. The remaining amount of $ 2,300,440 was charged to expense accounts. Form 990, Part IX, Line 8 Total Pension Plan Contributions were $649,073 of which $177,005 was charged to balance sheet accounts. The remaining amount of $472,068 was charged to expense accounts Form 990, Part IX, Line 9 Total medical. life and long-term disability insurance contributions were $529,068 of which $128,730 was charged to the balance sheet accounts. The remaining amount of $400,338 was charged to expense accounts. Form 990, Part IX, Line 10 Total Payroll Taxes were $226,726 of which $55,277 was charged to balance sheet accounts. The remaining amount of $171,449 was charged to expense accounts. Form 990, Part XI, Line 9 The amount reported on this line represents the amount of the current year's patronage capital credit assignable, if patronage is a positive figure and once the prior year's negative amounts have been offset by current year positive amounts, and the sum of changes in patronage capital retirements and memberships. The amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of electricity from the Cooperative for the 2022 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of electric energy to the members and are done pursuant to the obligation that existed in the bylaws prior to the cooperative providing electricity to members. Therefore, these amounts meet the definition of the term "Patronage dividends paid." Form 990, Part XII, Line 2c No changes.