2021-09-28T05:35:23-07:00 2020-12-31 150625503 Mostert Manzanero & Scott LLP 4 Associate Dr Oneonta NY 13820 990 2020-01-01 150500061 OTSEGO ELECTRIC COOPERATIVE INC OTSE 6072936622 PO BOX 128 HARTWICK NY 13348 TIMOTHY R JOHNSON CEO/general counsel 2021-09-28 true TIMOTHY R JOHNSON 999009999 DEBORAH L MOSTERT P01213266 6074328700 2 AAL1 IAL1 FAL1 2020 2022-09-23 18:48:47Z TIMOTHY R JOHNSON PO BOX 128 HARTWICK NY 13348 8710656 false X www.otsegoec.coop X 1941 NY The Mission of Otsego Electric Cooperative, Inc. is working to improve the quality of life of our members and our communities. The Purpose of Otsego Electric Cooperative, Inc. is to provide cost competitive, safe and reliable energy and broadband solutions. 7 7 23 521107 0 9195761 8697110 12244 4849 134106 0 9342111 8701959 0 764524 358424 1708679 1932515 0 0 5381419 6060426 7854622 8351365 1487489 350594 41742094 51553622 30409995 39655769 11332099 11897853 The Mission of Otsego Electric Cooperative, Inc. is working to improve the quality of life of our members and our communities. The Purpose of Otsego Electric Cooperative, Inc. is to provide cost competitive, safe and reliable energy and broadband solutions. false false PROVIDED ELECTRIC SERVICE TO 4,807 CUSTOMERS OVER 777 MILES OF DISTRIBUTION LINEElectric service was provided on a cooperative basis through the allocation of patronage capital to all customers purchasing electric service from the Cooperative during the year. PROVIDED SATELLITE INTERNET SERVICE TO 165 CUSTOMERS.Satellite internet service was provided on a cooperative basis through the allocation of patronage capital to all customers purchasing such service from the Cooperative during the year. PROVIDE HIGH SPEED INTERNET SERVICE ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO ALL MEMBER-PATRONS OF THE BROADBAND BUSINESS.PATRONAGE BASIS 1,448 MEMBERSNONPATRONAGE BASIS 274 NONMEMBERS false false false false false false false false false true false false true true true true false false false false false false false false false false false false true false false false false false false false false false false true false false false true 36 0 true 23 true true true false false false false 7763348 398788 false false false X 7 7 false false false false true true true true true false false true true true true true true true true false X CODY ALLEN 6072936622 PO BOX 128 HARTWICK NY 13348 TIMOTHY R JOHNSON CEO/council 45.00 0.00 X 174309 0 43132 KEVIN M ROTTINGEN LINEMAN 46.70 0.00 127750 0 77629 LEE RUMOVICZ OP & MAIN FOREMAN 43.10 0.00 128859 0 66466 STEVEN SICKLER CONSTRUCT FOREMAN 38.80 0.00 105492 0 70904 JUSTIN MARCH 1st class lineman 46.00 0.00 115004 0 42103 CORY MOORE 1ST CLASS LINEMAN 43.50 0.00 111886 0 33281 CODY ALLEN DIRECTOR ACCT 44.80 0.00 X 90889 0 26126 GARY POTTER President 1.94 0.00 X X 6858 0 0 CHARLES ARNOLD Vice President 1.60 0.00 X X 5325 0 0 STEVEN CHILD Secretary 1.17 0.00 X X 4125 0 0 AMY PARR DIRECTOR 1.16 0.00 X 4125 0 0 EDWARD CLARKE DIRECTOR 1.21 0.00 X 3925 0 0 FREDERICK BRAUN JR DIRECTOR 1.26 0.00 X 3502 0 0 WENDELL SAUNDERS TREASURER 0.30 0.00 X X 1202 0 0 883251 359641 6 false true false CONEXON LLC PO BOX 10523 FAYETTEVILE AR 72703 CONSTRUCT MGMT/ENGINEERIN 216777 BENTON TECHNICAL SERVICES 520 8TH AVE SOUTH WILMINGTON IL 60474 CONTRACTED CONSTRUCT 2620042 POWER SYSTEMS ENGINEERING 1532 W BROADWAY STE 100 MADISON WI 53713 CONTRACT ENGINEERING/MAP 141379 3 X 0 CAPITAL CREDITS 110125 110125 ELECTRIC SERVICE REVENUE 6488234 6488234 FIBER OPTIC BROADBAND 1740376 1473072 267304 NYS BB GRANT FUNDS RECVD 124446 124446 SATELLITE INTERNET REV 119376 119376 114553 95328 19225 8697110 12046 7 12039 0 0 0 1500 8697 -7197 -7197 -7197 0 0 0 0 8701959 8176010 521107 4842 0 0 0 358424 363518 0 986718 0 461425 120854 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 927796 0 1200692 0 COST OF POWER 1577567 DISTRIBUTION OPERATION 965490 ADMIN & GENERAL 509199 DISTRIBUTION MAINTENANCE 321989 557693 8351365 0 0 0 188048 210879 262113 400390 3960720 2701816 745435 795073 0 0 0 3077995 756366 438137 450676 55995152 15096357 27525965 40898795 0 0 1069095 1118488 73370 73370 4401216 4147769 41742094 51553622 1553504 1106834 146524 241133 23908090 24694728 4801877 13613074 30409995 39655769 X 11332099 11897853 11332099 11897853 41742094 51553622 X 350594 215160 X false true X true false 726626 726626 1170301 453407 716894 52033811 14642950 37390861 2064414 2064414 40898795 Deferred loan acquis costs 405039 Deferred tax asset 3697 Post retirement benefits 3536000 RS Plan prepayment 203033 4147769 Grant funds related to fixed assets 8528392 Obligation for postretirment benefits 5084682 13613074 X 8342687 3697 3697 8338990 362969 362969 8701959 7777340 3697 3697 7773643 577722 577722 8351365 Part X : FIN48 Footnote The Cooperative reviews the components of revenues, gains, and other support and analyzes whether the position that the organization takes with regard to a particular item of income would meet the definition of an uncertain tax position. The Cooperative files information returns in the U.S. federal jurisdiction. There is no liability for unrelated business tax.SCHEDULE D PARTS XI&XII - RECON OF REV/EXPFOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE 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. Part XI, Line 2d: Other revenue amounts included in F/S but not included on form 990 DEFERRED INCOME TAX BENEFIT $3697 Part XI, Line 4b: Other revenue amounts included on 990 but not included in F/S NYS BB GRANT FUNDS RECVD $124446 CONTRIBUTION IN AID $19225 COST OF MERCHANDISE SOLD $102827 SATELLITE INTERNET EXP NETTED REVENUE $116471 Part XII, Line 2d: Other expenses and losses per audited F/S DEFERRED TAX BENEFIT $3697 Part XII, Line 4b: Other revenue amounts included on 990 but not included in F/S SATELLITE INTERNET EXPENSE NETTED $116471 COST OF MERCHANDISE SOLD $102827 Allocation of capital credits to patrons $358424 X false false false JUSTIN MARCH 1st class lineman 114593 411 37593 4510 157107 KEVIN M ROTTINGEN LINEMAN 121294 6179 277 39275 38354 205379 LEE RUMOVICZ OP & MAIN FOREMAN 108044 20470 345 28686 37780 195325 STEVEN SICKLER CONSTRUCT FOREMAN 104830 662 32695 38209 176396 TIMOTHY R JOHNSON CEO/council 159313 11587 3409 37018 6114 217441 Part III, Additional Information INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. NAME: TIMOTHY JOHNSONACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,018EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 37,018 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,018)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,699EXPENSE TO THE COOPERATIVE $ 23,699NAME: LEE RUMOVICZACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,686EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 28,686 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,686)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,147EXPENSE TO THE COOPERATIVE $ 27,147NAME: KEVIN ROTTINGENACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,275EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 39,275 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,275)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,256EXPENSE TO THE COOPERATIVE $ 34,256NAME: JUSTIN MARCHACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,593EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 37,593 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,593)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,686EXPENSE TO THE COOPERATIVE $ 35,686NAME: STEVEN SICKLERACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,695EMPLOYER CONTRIBUTION TO 401(K) PLAN -0-TOTAL REPORTED IN COLUMN C $ 32,695 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,695)ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,164EXPENSE TO THE COOPERATIVE $ 17,164 Form 990, Part VI, Line 6: Explanation of Classes of Members or Shareholder Any person, firm, association, corporation, or body politic or subdivision thereof will become a member of the Otsego Cooperative, Inc. upon receipt of electric service from the Cooperative, provided that he or it has first:a)made written application for membershipb)agreed to purchase from the Cooperative electric energy c)agreed to comply with and be bound by the articles of incorporation and bylaws of the cooperative and any rules and regulation adopted by the Board Form 990, Part VI, Line 7a: How Members or Shareholders Elect Governing Body Members who are currently purchasing electric service from the Cooperative shall be considered active members and shall be entitled to vote at all regular and special membership meetings.The following acts require approval of the members of the Cooperative:1. Dissolution/Liquidation of the Cooperative2. Merger or consolidation of the Cooperative with another Organization3. Disposal of a substantial portion of the Cooperative's assets4. Amendment to the Articles of Incorporation5. Amendment to the Bylaws Form 990, Part VI, Line 7b: Describe Decisions of Governing Body Approval by Members or Shareholders Each active membership shall be entitled to only one vote upon any matter submitted to a vote at a meeting. All questions shall be decided by a vote of a majority of the active members voting there on in person or by proxy, except as otherwise proved by law, the articles of incorporation or by-laws. Form 990, Part VI, Line 11b: Form 990 Review Process It shall be the policy of the Otsego Electric Cooperative, Inc. to have Form 990 reviewed by its Board of Directors each year prior to filing with the Internal Revenue Service.Said review can be completed during the course of a regularly scheduled the Board of Directors' meeting at which a quorum is present. Form 990, Part VI, Line 12c: Explanation of Monitoring and Enforcement of Conflicts Each Official must annually complete and sign the Conflict of Interest Certification and Disclosure Form attached to this Policy and deliver the completed and signed Form to President or Manager. If an Official discovers any information or fact that could impact another Official's compliance with this Policy, then the Official must disclose the information or fact to President or Manager immediately. Form 990, Part VI, Line 15b: Compensation Review and Approval Process for Officers and Key Employees The Board of Directors is responsible for overseeing the evaluation process for the Chief Executive Officer.The process is intended to formally assess the Chief Executive Officer's past performance as well as to help the Board determine future developmental needs for the Chief Executive Officer. Consequently, there are two types of measures: a) Financial Performance Measures, which track accountability for past performance, and b) Leadership Effectiveness Measures, which identify the key objectives that will assure the future success of the Cooperative. Leadership Effectiveness Measures include, but are not limited to, the following:LeadershipBuilding Team SpiritManaging Vision and MissionOrganizational FlexibilityApproachability and AccessibilityEffective Decision MakingBusiness AcumenAccountabilityDeveloping PeopleIntegrity and TrustResultsPresentation SkillsMaintaining Organizational ValuesCommunity InvolvementThe following steps are utilized to carry out this review:The Board reviews performance measures and targets and submits these for full Board approval on or before the start of the first meeting of the fiscal year.The Chief Executive Officer provides a self-evaluation to the Board within seventy-five days of the end of the fiscal year.Directors will provide their individual assessments of the Chief Executive Officer's performance. These assessments should include the Board's appraisal of the Financial Performance Measures and the Leadership Performance Measures approved by the Board as well as any other aspect of the Chief Executive Officer's performance that the Directors deem relevant. In addition, Directors should identify any future developmental needs they deem necessary for the Chief Executive Officer.The Board accumulates this information and recommends annual compensation of the Chief Executive Officer based on the evaluation. After agreement by the Board to the evaluation, the President of the Board will meet with the Chief Executive Officer to discuss the Board's assessment of performance and developmental needs for the Chief Executive Officer. The Chief Executive Officer may then take the opportunity to discuss his or her reaction to the evaluation. Form 990, Part VI, Line 19: Other Organization Documents Publicly Available It shall be the policy of Otsego Electric Cooperative, Inc. to have governing documents, including the By-Laws, annual financial reports, and Conflict of Interest Policy available to the public upon request. These documents shall be kept at the Otsego Electric Cooperative, Inc. main office under the supervision and control of the Board of Directors and the Chief Executive Officer.The Chief Executive Officer of Otsego Electric Cooperative, Inc. shall produce the documents upon receipt of a written or verbal request of the public. The Chief Executive Officer shall keep a record of the written and/or verbal request. The By-Laws are available on the Cooperative's website. Other Changes In Net Assets Or Fund Balances - Other Increases BENEFITS PAID TO MEMBERS = $358424 Other Changes In Net Assets Or Fund Balances - Other Increases change in other equities = $407 Other Changes In Net Assets Or Fund Balances - Other Decreases CONTRIBUTION IN AID OF CONSTRUCTION NOT REVENUE PER GAAP = -$19225 Other Changes In Net Assets Or Fund Balances - Other Decreases NYS BB GRANT FUNDS RECEIVED = -$124446 FORM 990 PART 1 LINE 19 - REVENUE LESS EXPENSES CURRENT YEAR REVENUE INCLUDES THE FOLLOWING:NYS Broadband grant funds - Non-patronage $124,446Nonrefundable CIAC - Non-patronage 19,225PY Patronage Losses Recovered as Offset with Patronage Dividend 228,877Loss from Non-member, non-patronage sales of broadband (21,954)Part I, Line 19 Revenue Less Expenses $350,594 FORM 990 PART IX - ACCOUNTING SYSTEM THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (RUS). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990 PART IX LINE 24C - ADMIN & GENERAL ADMIN & GENERAL INCLUDE THE FOLLOWING EXPENSES:RETIRED EMPLOYEE HEALTH $174,594MISC GENERAL EXPENSE 155,648OUTSIDE SERVICES 137,048INSURANCE 38,812ANNUAL MEETING EXPENSE 2,807DIRECTOR EXPENSE 290TOTAL ADMIN & GENERAL $509,198 FORM 990 PART IX, LINE 4 - BENEFITS PAID TO MEMBERS PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY, SATELLITE AND/OR BROADBAND FIBER SERVICES TO ITS PATRONS 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 PATRONS. 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 PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER 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 CALENDAR TAX YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY, SATELLITE AND/OR BROADBAND FIBER SERVICE FROM THE COOPERATIVE FOR THE 2020 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990 PART IX, LINES 5-7 - TOTAL WAGES RECON SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID:TOTAL PER LINES 5-7 $1,350,237LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (29,063) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (69,258)PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 288,580PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 190,060 TOTAL WAGES ACCRUED AND/OR PAID $1,730,555 NOL CARRYFORWARD SCHEDULE 990-T NET OPERATING LOSS YEAR END 2019 $ 404,790NET OPERATING LOSS YEAR END 2020 $ 1,462,197 TOTAL NOL CARRYFORWARD $ 1,866,987 OECONNECT LLC PO BOX 128 HARTWICK NY 13348 824262577 BROADBAND NY 1884047 1035175 OTSEGO ELECTRIC false false false false false false false false false false false false false false false false false false false