2022-05-09T07:55:59-07:00 2021-12-31 990 2021-01-01 020172119 NEW HAMPSHIRE ELECTRIC COOPERATIVE INC NEWH 6035361800 579 Tenney Mountain Highway Plymouth NH 032643147 Edward French Treasurer 6035361800 2022-05-06 1 11 1 AAL2 X 2021 2022-09-23 18:48:47Z James Bakas 579 Tenney Mountain Highway Plymouth NH 03264 155140182 0 X www.nhec.com X 1939 NH New Hampshire Electric Cooperative, Inc provides electric energy and broadband services to its members throughout the State of New Hampshire. 11 11 258 0 0 0 0 0 141482864 155000653 176877 85613 61399 20468 141721140 155106734 0 0 4609800 5563563 24036854 24902753 0 0 0 113074486 127717753 141721140 158184069 0 -3077335 286001389 293476892 146088259 153079678 139913130 140397214 Our mission is to provide our members the ability to access affordable, reliable electric service options that support and simplify their lives. 0 0 All receipts from sale of electric energy and related service activities is excess of operating costs are received with the understanding that it is furnished by the patrons as capital. This capital shall be allocated to the cooperative member on a patronage basis. Currently, New Hampshire Electric Cooperative, Inc. provides electric energy to approximately 83,000 active member services throughout New Hampshire. The broadband division, a single member LLC, providing broadband internet services through the construction of a fiber optic network. When cumulative net margins derived from member sales of broadband internet services exceed cumulative net losses from such sales, the cooperative will allocate patronage capital to the members. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 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 1 1 0 0 1 202 0 1 258 1 0 0 0 0 0 153881931 723569 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 NH X X Drew Dunagin 6035368470 579 Tenney Mountain Highway Plymouth NH 032643147 Steven Camerino President/Chief Executive Officer (Jan - Aug) 62 0 X 401183 0 97482 James Bakas Interim GM/VP of Operations & Engineering 46 0 X 261474 0 90696 Drew Dunagin VP of Financial Services/CFO 48.5 0 X 251061 0 81397 Brian Callnan VP of Power Resources 48 0 X 236066 0 81393 Michael Licata VP of Member Services/Public Affairs 40 0 X 232610 0 75129 Geoffrey Ziminsky VP of Technology & Business Services/CIO 49 0 X 213103 0 53201 Craig Snow VP of Energy Solutions/Facilities 44 0 X 204426 0 53484 Joshua Mazzei Manager of Operations 44 0 X 151098 0 66651 Pamela Ouellette VP of HR & Organizational Development (Jan - Oct) 50.75 0 X 160376 0 52297 Michael Jennings Engineering Manager 53.00 0 X 154253 0 53878 Mark Jerry Working Foreman 54.25 0.0 X 151892 0 48297 John Gerace Lineworker I 60 0 X 172927 0 25744 Joseph Diprizio Lineworker I 55.75 0.0 X 152118 0 45871 Thomas Mongeon Director 12 0.0 X 33325 0 0 Jeffrey Morrill Director - Chair 8 0.0 X X 32925 0 0 Carolyn Kedersha Director - Asst. Treasurer 12 1 X X 0 0 29925 Edward French Director - Treasurer 11 0.0 X X 28675 0 0 William Darcy Director 29 0.0 X 28625 0 0 Leo Dwyer Director 26 0.0 X 28275 0 0 Daniel Senie Director - Vice Chair 10 0.0 X X 28275 0 0 Alana Albee Director 5 0 X 26025 0 0 Madeline McElaney Director 9 0 X 21475 0 0 Brenda Boisvert Director - Secretary 4 0 X X 20725 0 0 Sharon Davis Director 5 1 X 18375 0 0 3009287 0 855445 78 0 1 0 Asplundh Tree Expert Co 708 Blair Mill Road Willow Grove PA 19090 Tree Contractor 3929126 IC Reed & Sons Inc PO Box 968 Raymond NH 03077 Line Contractor 2112776 John Lucas Tree Expert Company PO Box 958 Portland ME 04104 Tree Contractor 1010983 National Information Solutions Cooperative (NISC) PO Box 1147 Mandan ND 58554 IT Services and Support 1010983 Energized Line Construction PO Box 182 Gillmanton Iron Works NH 038370182 Line Contractor 970514 38 0 Sales of Electrcity 221000 150414713 150414713 0 0 Misc. Electric Revenue 221000 1247429 1247429 0 0 Rental Income 221000 3154148 22102 0 3132046 Interest Income 221000 4912 4912 0 0 Broadband Revenue 513300 179451 179451 0 0 0 0 0 0 155000653 11773 11773 46842 30262 16580 0 16580 16580 74481 641 0 73840 73840 73840 6433 2545 3888 3888 0 155106734 151872495 0 3234239 X 5563563 2842003 13340943 3904736 3458816 1356255 1153857 104453 4478 1921316 29520 2483357 905204 0 6791090 29582 54247 3202589 11896068 708534 Purchase Power 53496800 Transmission 25896577 Distribution and Maintenance Expense 12659203 Consumer Accounts Expense 396479 5984399 158184069 0 0 0 X 2349910 59745 50000 50000 0 18813627 22445413 0 0 0 3842209 4090545 2681240 2872980 415558943 174849045 234929100 240709898 0 900000 0 11788994 11529952 1375000 1375000 9271309 10343359 286001389 293476892 17097440 22954664 0 0 0 0 0 97621694 103851188 2600000 4254053 28769125 22019773 146088259 153079678 X 0 0 0 0 139913130 140397214 139913130 140397214 286001389 293476892 X -3077335 0 0 0 0 3561419 X 0 1 X 1 0 0 2473563 2473563 190964 12288775 4837561 7642178 0 0 0 0 0 392006575 170011484 221995091 0 8599066 0 8599066 240709898 0 Regulatory Liabilities 1535466 Customer Deposits 1784652 Regulatory Liability Depreciation Reserve 15902477 Deferred Credits 2797178 22019773 X 154998140 0 0 0 0 0 154998140 0 108594 108594 155106734 152511913 0 0 0 0 0 152511913 0 5672156 5672156 158184069 Schedule D, Part X, Line 2 The Cooperative is exempt from United States income taxes pursuant to 501(c)(12) of the Internal Revenue Code, which requires that at least eighty five percent (85%) of a Cooperative's income be collected from its members. The Cooperative follows guidance for uncertainty in income taxes which is part of FASB ASC 740, Income Taxes. The guidance prescribes a recognition threshold and measurement attributes for financial statement recognition of a tax position taken or expected to be taken on a tax return. Schedule D, Part XI, Line 4b These are reconciliations of revenue and expenses that are related to NHEC non-operating activities which included sale of general plant equipment, investment interest income and mutual aide services. Schedule D, Part XII, Line 4b For the audited financial statements, 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 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 a pre-existing obligation as provided for in the "non-profit operation" article of the Cooperative's bylaws. X X X X X 0 0 0 Steven Camerino President/Chief Executive Officer 347917 0 53266 0 0 0 65213 0 32269 0 498665 0 0 James Bakas VP of Operations & Engineering 219717 0 41757 0 0 0 59853 0 30843 0 352170 0 0 0 Drew Dunagin VP of Financial Services/CFO 214304 0 36757 0 0 0 50016 0 31381 0 332458 0 0 0 Brian Callnan VP of Power Resources 214309 0 21757 0 0 0 50016 0 31377 0 317459 0 0 0 Michael Licata VP of Member Services/Public Affairs 190853 0 41757 0 0 0 44286 0 30843 0 307739 0 0 0 Geoffrey Ziminsky VP of Technology & Business Services/CIO 186346 0 26757 0 0 0 42386 0 10815 0 266304 0 0 0 Craig Snow VP of Energy Solutions/Facilities 182669 0 21757 0 0 0 40262 0 13222 0 257910 0 0 0 Joshua Mazzei Manager of Operations 144341 0 6757 0 0 0 33951 0 32700 0 217749 0 0 0 Pamela Ouellette VP of HR & Ogranizational Development 158619 0 1757 0 0 0 32864 0 19433 0 212673 0 0 0 Michael Jennings Engineering Manager 142789 0 11464 0 0 0 33984 0 19894 0 208131 0 0 0 Mark Jerry Working Foreman 149859 0 2033 0 0 0 18472 0 29825 0 200189 0 0 0 John Gerace Lineworker I 170929 0 1998 0 0 0 16013 0 9731 0 198671 0 0 0 Joseph Diprizio Lineworker I 150121 0 1997 0 0 0 16046 0 29825 0 197989 0 0 0 Schedule J, Part I, Line 3 To ensure the wages of the CEO and non-union employees are within the salary ranges that are reasonable yet competitive in the marketplace, NHEC engages an outside consultant who specializes in compensation and is highly knowledgeable about rural electric cooperative. Every few years the consultant issues a report to the NHEC Board of Directors establishing a fair market value range for the CEO position based on operating revenue. For non-union employees, the consultant has built a compensation model which includes salary grades and pay ranges. The salary grades are based on job descriptions which are evaluated on the factors of job knowledge, leadership, organization effect, complexity and communication. The internal grade values are merged with external salary survey information (reflecting comparable pay for similar positions in comparable organizations). This modeling and optimization of internal equity and external market data is the basis of the established NHEC pay ranges. Form 990, Part I, Line 19 In general, when an electric cooperative bases the patronage dividend calculation on its net book income/(loss), Page 1, Part I, Line 19 - revenue less expense will be $0. For the current year, Page 1, Part I, Line 19 reports net loss of $3,077,335, which consists of the Broadband Division Net Loss. The Broadband Division losses will be accumulated until cumulative net income exceeds cumulative losses. At that time, net income of the division will be allocated to the members. Form 990, Part VI, Section A, Line 6 New Hampshire Electric Cooperative, Inc. ("the Cooperative") has members. Any person, firm, corporation or body politic may become a member in the Cooperative by: a) making an application for membership and service; b) agreeing to purchase goods or services from the Cooperative as specified in the bylaws; and c) agreeing to comply with and be bound by the Certificate of Organization of the Cooperative and the Code of Bylaws and any amendments thereto and such rules and regulations as may from time to time be adopted by the Board of Directors. No persons, firm, corporation or body politic may own more than one (1) membership in the Cooperative. Form 990, Part VI, Section A, Line 7a The Cooperative's eleven (11) member Board of Directors is chosen by and from the membership. At each annual meeting to which ballots are returned, directors are elected for three-year staggered terms, with at least three to be elected each year. Form 990, Part VI, Section A, Line 7b The following items are subject to the affirmative vote of at least two-third (2/3) of the members voting by mail ballot. a) disposition of property that exceeds, in any one (1) year, ten percent (10%) of the value of the Cooperative's "Total Utility Plant" as stated in the most recent Annual Report of the Cooperative; b) disposition of any one item of a damaged property valued (at depreciated book) at more than $25,000; c) acquisition of generation, transmission and/or distribution facilities for which the purchase price exceeds twenty-five percent (25%) of the value of the Cooperative's "Total Utility Plant" as stated in the most recent Annual Report of the Cooperative; d) the sale of the Cooperative's entire system or the dissolution of the Cooperative; e) the alteration, amendment or repeal of the Cooperative's Code of Bylaws; and f) the amendment of the Certification of Organization. Form 990, Part VI, Section B, Line 11b The Cooperative's Form 990 is reviewed by the Audit Committee with a recommendation to the full governing body. Form 990, Part VI, Section B, Line 12c Annual review of all polices by the Board of Directors and board committee; annual review of ethics policy which also includes conflict of interest are disclosed to Board of Directors. Form 990, Part VI, Section B, Line 15 The Cooperative has an independent compensation consultant provide a CEO compensation analysis to the Vice Chair of the Board of Directors for review with the Board of Directors. To ensure the wages of the CEO and non-union employees are within salary ranges that are reasonable yet competitive in the marketplace, the Cooperative engages an outside consultant who specializes in compensation and is highly knowledgeable about rural electric cooperatives. Every few years the consultant issues a report to the Board of Directors establishing a fair market value range for the CEO position based on operating criteria. The operating criteria includes number of members served, total utility plant and operating revenue. For non-union employees, the consultant builds a compensation model which includes salary grades and pay ranges. The salary grades are based on job descriptions which are evaluated on the factors of job knowledge, leadership, organizational effect, complexity, and communication. The internal grade values are merged with external salary survey information (reflecting comparable pay for similar positions in comparable organizations). This modeling and optimization of internal equity and external market data is the basis of the established Cooperative pay ranges. Form 990, Part VI, Section C, Line 19 Fully audited financials, current 990 filing, all policies and policy on ethics & conflict of interest are posted on the Cooperative's website. 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 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 allocations of patronage capital) to its members. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transactions 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 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 the members. Therefore, these amounts meet the definition of the term "Patronage Dividends Paid". Patronage dividends allocated for 2021 are reported on line 4 in the amount of $5,563,563. In 2021 a retirement of prior year's allocation was paid as patronage dividends to members. 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 in line 4 the amount of its 2021 margin that has been or is to be allocated to the members subsequent to year-end. Such amount is an expense for Form 990 reporting and is not an expense for financial statement prepared in accordance with Generally Accepted Accounting Principles. As a result, the difference between the Cooperative's GAAP basis financial statement and the revenue less expenses reported on Part I, line 19 is the amount of patronage dividends reported as benefits paid to members. Form 990, Part X, Line 10a Section 1.263(a)-3(n) Election: New Hampshire Electric Cooperative, Inc. 579 Tenney Mountain Highway Plymouth, NH 03264-3147 EIN 02-0172119 New Hampshire Electric Cooperative, Inc. is electing to capitalize repair and maintenance cost under Regulation Section 1.263(a)-3(n) Form 990, Part XI, Line 9 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 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 the members. Therefore, these amounts meet the definition of the term "Patronage Dividends Paid". NH Broadband LLC 579 Tenney Mountain Highway Plymouth NH 03264 To develop, construct, operate a fiber optic network and provide broadband internet services. NH 179451 1718667 New Hampshire Electric Cooperative Inc New Hampshire Electric Co-Op Foundation 579 Tenney Mountain Highway Plymouth NH 03264 113751465 Provide financial aid to local charities and communities NH 501(C)(3) 7 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0