2022-08-30T14:57:37-07:00 2021-12-31 990 2021-01-01 010056837 EASTERN MAINE ELECTRIC COOPERATIVE INC EAST 2074547555 PO Box 425 Calais ME 04619 Scott Hallowell Chief Executive Officer 2074547555 2022-08-30 1 11 1 AAL2 2021 2022-09-23 18:48:47Z Scott M Hallowell PO Box 425 Calais ME 04619 16418871 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 41 0 0 0 0 600000 16782786 15732900 271383 85971 0 0 17054169 16418871 0 0 75558 846403 2378734 2273052 0 0 0 14599877 13299416 17054169 16418871 0 0 44341885 49482318 30285614 34790567 14056271 14691751 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 16418871 16418871 Utility System Programs, General/Others" Delivery of Electric Power (12,864 Consumers) 0 0 0 16418871 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 51 0 0 41 1 0 0 0 0 0 15359267 758349 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 218768 0 196306 Andrew M Tickle Manager of Engineering 45 X X 144686 0 94315 Charles E McAlpin Manager of Member Services 45 X 123849 0 89699 Michael Carrier Manager of Operations 45 X 104588 0 102143 Elery Beale Manager of Information Technology 45 X 101357 0 43604 Warren Moholland Chief Financial Officer 45 X 97894 0 29642 John L Gallant Board Member 2 X X 4750 0 0 R Scott Skinner President 3 X X 4200 0 0 Ralph Staples Vice President 2 X X 3750 0 0 John Larkin Treasurer 2 X X 3250 0 0 Earl Hill Jr Secretary 1 X X 3250 0 0 Lawrence E Clark Board Member 1 X 3250 0 0 Marshall W Lucas Board Member 1 X 3250 0 0 Dana R Hatton Board Member 1 X 3000 0 0 Vernon Wentworth Board Member 1 X 3000 0 0 Virgil Farrar Board Member 2 X 2750 0 0 Timothy R Peters Board Member 1 X 1500 0 0 Wallace Lindahl Secretary 2 X X 750 0 0 827842 0 555709 5 0 1 0 Lucas Tree Experts PO Box 958 Portland ME 04104 Right of Way Clearing 159642 McLaughlin Earth Movers 652 Half Township Rd Lincoln ME 04457 Tree Clearing Work 163395 NICKERSON & O'DAY PO BOX 911 BANGOR ME 04402 BUILDING CONSTRUCTION 1252464 3 0 0 0 0 600000 0 0 600000 Electric Supply & Delivery 221000 15732900 15732900 0 0 0 0 0 0 15732900 79792 79792 0 0 0 0 0 0 0 0 0 0 0 0 0 6179 0 0 0 6179 6179 6179 0 0 0 0 16418871 15818871 0 0 X 846403 846403 480015 480015 0 0 1793037 1793037 0 0 0 0 0 0 33798 33798 50876 50876 0 0 0 0 0 0 11602 11602 80202 80202 87686 87686 0 0 59276 59276 16258 16258 0 0 13628 13628 672084 672084 0 0 2312524 2312524 130775 130775 Purchase Power & Energy Supply 6158018 6158018 0 0 Distribution & Transmission 2071814 2071814 0 0 Consumer Account, General Adm & Membership 1213412 1213412 0 0 Reg Fees, Energy Cons, LIAP 387463 387463 0 0 0 0 16418871 16418871 0 0 95243 431431 6581692 8128672 0 1344240 1519105 0 0 0 0 0 0 731912 1085310 200386 282339 69661509 38752217 28583198 30909292 0 0 1043929 1041466 0 5761285 6084703 44341885 49482318 680356 1163971 0 0 6381536 6381500 0 0 0 19601916 22974530 0 3621806 4270566 30285614 34790567 X 0 0 0 0 14056271 14691751 14056271 14691751 44341885 49482318 X 0 0 0 0 0 635480 X X 0 1 X 1 0 0 351 351 0 2115373 381129 1734244 0 0 0 0 0 4730660 3053561 1677099 0 62815125 35317527 27497598 30909292 Regulatory Asset 3141340 Deferred Debits 436541 Accumulated Operating Provision 2506822 6084703 Accrued State Taxes Interest & Other 386068 Defer Credits, Customer Advance for Construction 1820968 Customer Deposits 174044 Regulatory Liability 1889486 4270566 X 16418871 0 0 0 0 0 16418871 0 0 0 16418871 15572468 0 0 0 0 0 15572468 0 846403 846403 16418871 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 215768 0 0 0 3000 0 181270 0 15037 0 415075 0 0 0 Warren Moholland Chief Financial Officer 97613 0 0 0 281 0 16605 0 13037 0 127536 0 0 0 Andrew M Tickle Manager of Engineering 143427 0 0 0 1259 0 89069 0 5246 0 239001 0 0 0 Michael Carrier Manager of Operations 104118 0 0 0 469 0 87546 0 14597 0 206730 0 0 0 Charles E McAlpin Manager of Member Services 122807 0 0 0 1042 0 83272 0 6427 0 213548 0 0 0 Elery Beale Manager of Information Technology 100899 0 0 0 458 0 28467 0 15137 0 144961 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 delivery service from the Cooperative for the 2021 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 delivery 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 2021 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 $3,090,536 of which $980,837 were charged to the balance sheet accounts. The remaining amount of $ 2,109,699 was charged to expense accounts. Form 990, Part IX, Line 8 Total Pension Plan Contributions were $573,695 of which $184,387 was charged to balance sheet accounts. The remaining amount of $389,308 was charged to expense accounts. Form 990, Part IX, Line 9 Total medical. life and long-term disability insurance contributions were $518,909 of which $ 132,531 was charged to the balance sheet accounts. The remaining amount of $ 386,378 was charged to expense accounts. Form 990, Part IX, Line 10 Total Payroll Taxes were $216,717 of which $ 55,380 was charged to balance sheet accounts. The remaining amount of $ 161,337 was charged to expense accounts. Form 990, Part XI, Line 9 The amount reported on this line represents the amount of the current year patronage capital credit assignable, if patronage is a positive figure and once prior year's negative amounts have been offset by current year positive amounts, and 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 2021 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