2023-10-30T11:43:19-05:00 2022-12-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2022-01-01 380941545 Presque Isle Electric & Gas Co-op PRES 9897338515 PO Box 308 Onaway MI 49765 Thomas J Sobeck President & CEO 9897338515 2023-10-30 1 Thomas Sobeck 999009999 1 Lisa Chaffee CPA P00193453 7012551091 2023-10-30 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z Thomas J Sobeck PO Box 308 Onaway MI 49765 56937807 0 X www.pieg.com X 1937 MI To provide energy and other services to sustain and improve the quality of life for our members through the use of a cooperative business structure. 9 9 123 0 0 0 0 1126354 51212965 55706874 -606339 -1283710 -3864 7070 50602762 55556588 0 0 1874236 2292919 9549978 10729017 0 0 0 41475579 48459631 52899793 61481567 -2297031 -5924979 158334042 186492405 102199241 135060205 56134801 51432200 To provide energy and other services to sustain and improve the quality of life for our members through the use of a cooperative business structure. 0 0 The Presque Isle Electric & Gas Co-op served 34,819 electric members and 13,161 natural gas members. 0 1 0 0 0 0 0 1 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 35 0 1 123 1 0 0 0 0 0 0 0 56102485 428515 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Thomas Sobeck 9897338515 PO Box 308 Onaway MI 49765 X John Brown Chairman 14.00 0.01 X X 13870 0 0 Allan Berg Vice Chairman 7.80 0.01 X X 14200 0 0 Sandy Borowicz Secretary 12.00 0.01 X X 14110 0 0 Daryl Peterson Treasurer 7.50 0.01 X X 12390 0 0 Charles Arbour Director 6.00 X 12660 0 0 Sally Knopf Director 7.00 X 12930 0 0 Kurt Krajniak Director 7.80 X 14550 0 0 Brent Lucas Director 10.00 X 13530 0 0 Raymond Wozniak Director 9.00 X 12390 0 0 Thomas Sobeck CEO 50.00 0.50 X 216973 0 110824 Randy Stempky CFO 45.00 0.25 X 103898 0 70801 Thomas Lupu Staking Engineer 58.00 X 167334 0 33333 Errol Jones Class A Lineman 56.00 X 165262 0 19453 Kenneth Wirgau Class A Lineman 56.00 X 160736 0 37998 Shawn Walker Class A Lineman 56.00 X 162577 0 39485 Dean Estep Class A Lineman 56.00 X 168840 0 40802 1266250 0 352696 22 0 1 0 B&M Ashman Inc 8455 Ronda DE Canton MI 48187 Construction 9789529 Kent Power 7800 Childsdale Ave NE Rockford MI 49341 Construction 2573986 Conexon LLC 2001 Grand Blvd Ste 700 Kansas City MO 64108 Construction Management 1800801 Davey Resource Group Inc PO Box 74142 Cleveland OH 44194 Engineering 1162432 Thunder Bay Tree Service 1172 Halley Road Alpena MI 49707 Tree Trimming 687856 20 1126354 1126354 Electric & Gas Sales 221000 53394447 53394447 Capital Credits 221000 2070419 2070419 Other Member Services 221000 375538 375538 Broadband Services 517000 230067 230067 -363597 -363597 55706874 48512 48512 1332222 -1332222 -1332222 -1332222 56067 48997 7070 7070 55556588 55713944 0 -1283710 X 2292919 563386 8672831 815590 677210 4268100 6131943 Cost of Energy 28993930 Distribution - Ops & Ma 9988680 Administrative and Gene 3413375 Customers Accounts & Se 3253856 -7590253 61481567 648724 765020 4417038 5575933 7720371 7835052 7363697 10550148 434324 261877 209494388 79626318 105391024 129868070 5833852 4549458 26525012 27086847 158334042 186492405 7312977 7900573 544950 515260 3405 0 82332186 109627673 10576530 15180974 1429193 1835725 102199241 135060205 X 310615 318220 0 0 55824186 51113980 56134801 51432200 158334042 186492405 X -5924979 1222378 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 953225 953225 23342033 1613792 21728241 162811700 78012526 84799174 22387430 22387430 129868070 Investments in Associated Organization 24630290 Investment in Subsidiary 2456557 27086847 Deferred Credits 752515 Accrued post-retirement Benefits 1020412 Patronage Capital Payable 62798 1835725 X 55556588 0 55556588 0 55556588 59188648 0 59188648 2292919 2292919 61481567 Part IV, Line 2b: The members of the Cooperative can elect to round up their monthly electric bill to the next dollar. These funds collected from the membership are held in a Cooperative account until the disbursed to the Operation Round Up. These funds are transferred directly to the Operation Round Up monthly. Funds that exist at the beginning and end of year are a result of a timing difference in the collection of these funds and the disbursement of the funds. The amounts held were $0 and $3,405 for the years ending December 31, 2022 and December 31, 2021. Part X, Line 2: The Company evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. As of December 31, 2022 and 2021, the unrecognized tax benefits accrual was zero. The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated for Current Year 2,292,919. X X X 0 0 0 Thomas Sobeck CEO 201702 0 6000 0 9271 0 98446 0 15151 0 330570 0 0 0 Dean Estep Class A Lineman 168069 0 0 0 771 0 9766 0 32809 0 211415 0 0 0 Shawn Walker Class A Lineman 162178 0 0 0 399 0 9790 0 31488 0 203855 0 0 0 Thomas Lupu Staking Engineer 166935 0 0 0 399 0 9509 0 25616 0 202459 0 0 0 Kenneth Wirgau Class A Lineman 160641 0 0 0 95 0 8934 0 30564 0 200234 0 0 0 Errol Jones Class A Lineman 165123 0 0 0 139 0 9448 0 11798 0 186508 0 0 0 Randy Stempky CFO 103000 0 0 0 898 0 36902 0 35530 0 176330 0 0 0 Schedule J, Part II, Column C: Compensation of Officers, Directors, Key Employee, Highest Compensated Employees: Included in other compensation for the CEO and CFO is the estimated current year increase in the actuarial value of the defined benefit plan. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense and the increase in actuarial value for each employee are reflected in the statement for Form 990, Part VII, Column f. Form 990, Part VI, Section A, line 1a The Fiber to Home committee is the only committee that has the authorization to make decisions on behalf of the board. This committee has the authority to make decisions regarding construction details and financing for the Fiber to Home operations. There are no other committees that can act on behalf of the governing board. Form 990, Part VI, Section A, line 6 There is only one class of members. Each member receives one vote. Each member vote carries the same weight. Form 990, Part VI, Section A, line 7a The members of the Cooperative elect the governing board. Form 990, Part VI, Section A, line 7b 1) Members elect the board of directors. 2) Members can remove a board director by two-thirds vote. 3) Amendments to bylaws are approved by the members or two-thirds vote of the board of directors. Form 990, Part VI, Section B, line 11b The Form 990 is reviewed by the CEO, CFO and the governing Board of Directors prior to filing with the IRS. Form 990, Part VI, Section B, line 12c Annually, the Board and key management officers must review the conflict of interest policy and submit a certification and disclosure form to the Board Chairman and CEO. Any potential conflicts are disclosed to the disinterested board members. The disinterested board members deliberate and vote regarding the transaction outside the presence and voting of the interested person. The deliberation is noted in the board minutes. If an individual has an actual conflict of interest they have thirty day to resolve the conflict or they are removed from the Board. Form 990, Part VI, Section B, line 15 The Board conducts an evaluation of the CEO's compensation using the NRECA national compensation survey. The CFO's compensation is determined by the CEO who then presents it the Board for approval. The deliberation is documented in the executive session minutes. Form 990, Part VI, Section C, line 19 The organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. Form 990, Part VII, Section A, Column (F) Compensation of Officers for CEO and CFO: Included in column "F", estimated amount of other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Thomas Sobeck was $65,546 and $19,085 for Randy Stempky. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the Cooperative. The current year expense for this defined benefit plan was $13,239 and $7,248 for Thomas and Randy, respectively. Form 990, Part IX, Line 4 The Cooperative has interpreted the instructions to Part IX, Line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Bylaws of the Cooperative. Form 990, Part IX, Line 24e: The labor, pension and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction on line 24e in the amount of $(10,729,017). Form 990, Part XI, line 9: Retirement of capital credits -1,078,146. Patronage Allocation 2,292,919. Change in Memberships 7,605. Presque Isle Electric & Gas Communities First Fund PO Box 308 Onaway MI 49765 383375631 Charitable MI 501(c)(3) 7 Presque Isle Electric & Gas Co-op 0 Presque Isle Aurora Gas Assets PO Box 308 Onaway MI 49765 382514732 Gas Assets MI Presque Isle Gas & Electric Co-op C 223053 2840348 1.00000 1 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 0 0 0 Presque Isle Aurora Gas Assets K 63030 Cost