2025-08-15T18:33:52-05:00 2024-09-30 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-10-01 910323430 MODERN ELECTRIC WATER COMPANY MODE 5099284540 PO BOX 14008 SPOKANE WA 99214 JOE MORGAN CEO 5099284540 2025-08-15 1 0 WILLIAM M MILLER P00439459 8067473806 2025-08-15 X 2023 2025-03-06 01:10:19Z JOE MORGAN PO BOX 14008 SPOKANE WA 99214 23748944 0 X WWW.MODERNELECTRICWATER.COM X 1905 WA TO PROVIDE AFFORDABLE ELECTRICITY AND WATER SERVICES TO CUSTOMER-OWNERS ON A MUTUAL BASIS. 5 5 37 0 0 0 0 0 19574713 19243236 2010914 2893463 199538 260821 21785165 22397520 80000 1687505 0 0 2764031 3421962 0 0 0 14073171 14215822 16917202 19325289 4867963 3072231 69757409 80149153 1721783 1906103 68035626 78243050 MODERN ELECTRIC WATER COMPANY, A CUSTOMER-OWNED UTILITY, STRIVES TO PROVIDE SAFE, RELIABLE, AND AFFORDABLE ELECTRIC AND WATER SERVICES AS WELL AS ENHANCE AND ENRICH THE LIVES OF THE COMMUNITY WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR CUSTOMER-OWNERS. THERE WERE 10,937 ACTIVE SERVICES AT YEAR END. PROVIDING WATER SERVICES TO OUR CUSTOMER-OWNERS. THERE WERE 5,779 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 16 0 37 1 0 0 0 0 0 19225492 3005477 0 0 0 X 5 5 0 0 1 0 1 1 0 1 0 0 0 0 1 1 1 1 1 1 1 0 X YELENA LAZANIS CFO 5099284540 PO BOX 14008 SPOKANE WA 99214 X DAVE THOMPSON PRESIDENT 2.50 X X 11800 0 0 BARRY BAKER VICE PRESIDENT 1.70 X X 8900 0 0 SAM WALDRON SECRETARY/TREASURER 2.00 X X 9700 0 0 CHUCK TAES DIRECTOR 2.50 X 11300 0 0 SCOTT HISLOP DIRECTOR 1.50 X 13100 0 0 JOE MORGAN CEO 50.00 X 311700 0 54565 YELENA LAZANIS CFO 50.00 X 149706 0 12590 JOHN MCFEELY ENGINEERING MANAGER 42.00 X 171462 0 27963 WARD FREDERICKSON LINE CREW FOREMAN 43.00 X 152160 0 31923 ROBERT MCDANIEL JOURNEYMAN LINEMAN 43.00 X 143832 0 10132 ERIC GUSTAFSON JOURNEYMAN LINEMAN 41.00 X 136368 0 10169 ZACHARY WALKER JOURNEYMAN LINEMAN 42.00 X 118162 0 2893 LANCE YOPPINI EQUIPMENT OPERATOR/INSTALLER 42.00 X 108937 0 24849 1347127 0 175084 10 0 1 0 MERIDIAN 3 RAVINA DRIVE NE SUITE P007 ATLANTA GA 30346 INFORMATION SYSTEM SOFTWARE 113298 ASPLUNDH TREE EXPERT LLC 1700 SOLUTIONS CENTER CHICAGO IL 60677 TREE TRIMMING 106942 2 X SALES OF ELECTRICITY 221000 15633427 15633427 SALES OF WATER 221000 2455161 2455161 CONSUMER CONTRIBUTIONS 221000 641205 641205 SERVICE FEES 221000 452799 452799 PATRONAGE DIVIDENDS 221000 17744 17744 42900 42900 19243236 1222171 1222171 112014 0 112014 112014 112014 1151272 1871444 0 1351424 1151272 520020 1671292 1671292 POLE ATTACHMENT 221000 120965 120965 MISCELLANEOUS NON-OPERATING REVEN 221000 27842 27842 148807 22397520 20914528 0 1482992 X 1687505 782786 1911553 55160 494443 178020 1972563 PURCHASED POWER & WATER 9232267 ADMIN & GENERAL 1428404 DISTRIBUTION EXPENSE 836693 TAXES 745895 19325289 4248134 2639896 1004271 957218 634866 629435 219671 195359 61024771 38754175 22986721 22270596 38651246 51262293 242630 257255 1769870 1937101 69757409 80149153 1138155 1445798 583628 460305 1721783 1906103 X 2775 2773 2158327 2158327 65874524 76081950 68035626 78243050 69757409 80149153 X 3072231 6156671 978522 X 0 1 X 0 0 1239071 1239071 6849165 3157728 3691437 52936535 35596447 17340088 22270596 X 26866686 6156671 6156671 20710015 1687505 1687505 22397520 17637784 0 17637784 1687505 1687505 19325289 PART X, LINE 2: THE COMPANY FOLLOWS THE PROVISIONS OF UNCERTAIN TAX POSITIONS AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION 740-10-65-1. THE PRIMARY TAX POSITION OF THE COMPANY IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COMPANY DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: COMMUNITY ENRICHMENT FUND RECLASSIFIED TO PART IX, LINE 1 1,687,505. PART XII, LINE 4B - OTHER ADJUSTMENTS: COMMUNITY ENRICHMENT FUND RECLASSIFIED TO PART IX, LINE 1 1,687,505. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART IX HAS BEEN LEFT BLANK. 0 BOYS & GIRLS CLUBS OF SPOKANE COUNTY 544 E PROVIDENCE SPOKANE WA 99207 911983357 501(C)(3) 12500 1351424 NET BOOK VALUE PROGRAM BUILDING & LAND DONATION; APPRAISED VALUE OF $5,501,050. CENTRAL VALLEY SCHOOL DISTRICT 821 S SULLIVAN SPOKANE VALLEY WA 99037 GOVERNMENT 18000 0 2024 SUPPORT FAMILY PROMISE OF SPOKANE 2322 E SPRAGUE AVE SPOKANE WA 99202 911707988 501(C)(3) 15000 0 2024 SUPPORT GREATER SPOKANE VALLEY CHAMBER OF COMMERCE 10808 E SPRAGUE AVE SPOKANE VALLEY WA 99206 910511813 501(C)(6) 13152 0 2024 SUPPORT SPOKANE VALLEY HUB PO BOX 604 GREENACRES WA 99016 260173199 501(C)(3) 55880 0 2024 SUPPORT INNOVIA FOUNDATION 818 W RIVERSIDE AVE SUITE 650 SPOKANE WA 99201 910941053 501(C)(3) 30000 0 2024 SUPPORT GREATER SPOKANE COUNTY MEALS ON WHEELS 12101 E SPRAGUE AVE SPOKANE VALLEY WA 99206 911042546 501(C)(3) 5775 0 2024 SUPPORT NAOMI COMMUNITY PO BOX 371 SPOKANE VALLEY WA 99037 201171003 501(C)(3) 20000 0 2024 SUPPORT PARTNERS INLAND NORTHWEST PO BOX 141360 SPOKANE VALLEY WA 99214 911478830 501(C)(3) 65000 0 2024 SUPPORT SPOKANE HEARING ORAL PROGRAM OF EXCELLENCE HOPE 1821 E SPRAGUE AVE SUITE A SPOKANE WA 99202 201535497 501(C)(3) 12500 0 2024 SUPPORT VALLEYFEST PO BOX 368 SPOKANE VALLEY WA 99037 943152294 501(C)(3) 20000 0 2024 SUPPORT WASHINGTON RURAL ELECTRIC COOPERATIVE ASSOCIATION PO BOX 7219 OLYMPIA WA 98507 911236389 501(C)(6) 41001 0 2024 SUPPORT YMCA OF THE INLAND NORTHWEST 1126 N MONROE SPOKANE WA 99201 910827958 501(C)(3) 5550 0 2024 SUPPORT 11 2 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X 0 0 0 JOE MORGAN CEO 306526 0 0 0 5174 0 51809 0 2756 0 366265 0 0 0 JOHN MCFEELY ENGINEERING MANAGER 170666 0 0 0 796 0 24091 0 3872 0 199425 0 0 0 WARD FREDERICKSON LINE CREW FOREMAN 151038 0 0 0 1122 0 28057 0 3866 0 184083 0 0 0 YELENA LAZANIS CFO 149536 0 0 0 170 0 9835 0 2755 0 162296 0 0 0 ROBERT MCDANIEL JOURNEYMAN LINEMAN 143630 0 0 0 202 0 6278 0 3854 0 153964 0 0 0 WOLFF HISLOP & CROCKETT PLLC DIRECTOR HISLOP 30301 LEGAL SERVICES 0 FORM 990, PART VI, SECTION A, LINE 4 IN MODERN'S ONGOING COMMITMENT TO UPHOLD THE INTEGRITY AND OPERATIONAL EFFECTIVENESS OF THE ORGANIZATION, THE BOARD HAS UNDERTAKEN A COMPREHENSIVE REVIEW AND SUBSEQUENT AMENDMENT OF THE BYLAWS. THIS INITIATIVE WAS DRIVEN BY SEVERAL CRUCIAL FACTORS. 1. MODERN AMENDED ITS ARTICLES OF INCORPORATION, TO COMPLY WITH WASHINGTON LAW. THIS IN TURN, NECESSITATES MODERN ADJUST THE BYLAWS TO ENSURE ALIGNMENT AND CONSISTENCY BETWEEN THESE FOUNDATIONAL DOCUMENTS. 2. MODERN RECOGNIZED THE NEED TO INTEGRATE MULTIPLE UPDATES THAT WERE MADE TO THE PRIOR BYLAWS OVER DECADES INTO A SINGLE, COHERENT DOCUMENT. THIS STEP ALIGNS WITH BEST PRACTICES, ENHANCING BOTH CLARITY AND GOVERNANCE. 3. MODERN HAS UPDATED THE BYLAWS TO COMPLY WITH CURRENT WASHINGTON LAW AND TO INCORPORATE MODERN LANGUAGE AND PRACTICES, ENSURING OUR OPERATIONS REMAIN BOTH COMPLIANT AND RELEVANT IN TODAY'S DYNAMIC ENVIRONMENT. THE FOLLOWING SUMMARIZES THE MAJOR CHANGES AND THE RATIONALE FOR THE CHANGE: REQUIRED BY LAW, SHAREHOLDER'S QUORUM FOR ANNUAL MEETING WAS AMENDED FROM "20 STOCKHOLDERS" TO "1/3 OF STOCKHOLDERS". THE NOTICE FOR ANNUAL MEETING WAS ALSO AMENDED FROM "AT LEAST 15 DAYS BEFORE" TO "AT LEAST 15 DAYS BEFORE BUT NOT MORE THAN 60 DAYS IN ADVANCE". TO INCREASE STABILITY OF THE BOARD, VACANCY WAS AMENDED FROM "BOARD APPOINTS UNTIL NEXT ANNUAL MEETING" TO "BOARD APPOINTS TO FULFILL REMAINDER OF THREE-YEAR TERM". TO INCREASE BOARD CONSISTENCY IN LIGHT OF HISTORICAL CHALLENGES OBTAINING A QUORUM, THE NO SUCCESSOR BOARD MEMBER ELECTED WAS AMENDED FROM "BOARD MAY APPOINT" TO "CURRENT DIRECTOR AUTOMATICALLY SERVES". TO BE CONSISTENT WITH THE BEST PRACTICES, EMPLOYEE HIRING/FIRING WAS AMENDED FROM "BOARD HAD AUTHORITY TO HIRE/FIRE" TO "BOARD HIRES/FIRES CEO ONLY. CEO HANDLES SUBORDINATE EMPLOYMENT". TO REFLECT CHANGES IN TECHNOLOGY, PARTICIPATION VIA ELECTRONIC MEANS WAS AMENDED FROM "SILENT" TO "VIA ELECTRONIC MEANS SO LONG AS INDIVIDUALS CAN HEAR AND BE HEARD". THE FORMS OF SIGNATURES WERE ALSO AMENDED FROM "SILENT" TO "ELECTRONIC SIGNATURES AUTHORIZED". TO REFLECT CURRENT BUSINESS STRUCTURE AND LANGUAGE, THE TITLE OF TOP DIRECTOR WAS AMENDED FROM "PRESIDENT/CEO" TO "PRESIDENT/CHAIRMAN". THE TITLE OF HIGHEST EMPLOYEE WAS AMENDED FROM "GENERAL MANAGER" TO "CHIEF EXECUTIVE OFFICER". TO REFLECT BEST PRACTICES, AMENDING BYLAWS BY BOARD WAS AMENDED FROM "UNCLEAR WHETHER A SIMPLE MAJORITY SUFFICED" TO "REQUIRES A SUPER-MAJORITY OF THE BOARD TO AMEND BYLAWS". THE INDEMNIFICATION OF OFFICERS AND DIRECTORS WAS ALSO AMENDED FROM "PERMITTED BOARD TO GRANT INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES, AGENTS" TO "FURTHER SPECIFIED CRITERIA FOR INDEMNIFICATION AND PROCESS FOR EVALUATING". FOR CLARITY TO REFLECT BEST/CURRENT PRACTICES, THE DUTIES OF OFFICERS WAS AMENDED FROM "REQUIRES OFFICERS TO CREATE CERTAIN DOCUMENTS" TO "ALLOWS OFFICERS TO SUPERVISE THE CREATION OF DOCUMENTS SUCH AS MINUTES". FORM 990, PART VI, SECTION A, LINE 6 THE COMPANY WAS FORMED BY THE CUSTOMER-OWNERS TO PROVIDE ELECTRIC AND WATER SERVICE ON A MUTUAL BASIS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE BOARD OF DIRECTORS ARE ELECTED TO THREE-YEAR TERMS. THE TERMS ARE STAGGERED SUCH THAT EACH YEAR EITHER ONE OR TWO MEMBERS OF THE BOARD ARE UP FOR ELECTION. THE ELECTION OCCURS AT THE ANNUAL SHAREHOLDER'S MEETING. FORM 990, PART VI, SECTION A, LINE 8B THE COMPANY HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REVIEWED THE FORM 990 BEFORE FILING. THE BOARD MEMBERS WERE PROVIDED A COPY OF THE FORM 990 FOR REVIEW SUBSEQUENTLY TO THE FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COMPANY WILL REQUIRE THE BOARD OF DIRECTORS AND OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 EACH YEAR THE BOARD REVIEWS THE NORTHWEST UTILITIES SALARY, WAGE & BENEFIT SURVEY TO DETERMINE THE SALARY OF THE CEO. EACH YEAR, THE BOARD REVIEWS AND APPROVES THE SALARIES OF OTHER OFFICERS AND KEY EMPLOYEES. WHILE THOSE WHOSE SALARIES ARE BEING DISCUSSED, OFFICERS AND KEY EMPLOYEES ARE EXCUSED FROM THE BOARD MEETING. FORM 990, PART VI, SECTION C, LINE 19 THE COMPANY WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS TO ANY CUSTOMER-OWNER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS WAS PROVIDED TO THE CUSTOMER-OWNERS FOR THE ANNUAL MEETING. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COMPANY HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN AND DEFINED BENEFIT PLAN FOR THE RESPECTED GROUPS OF EMPLOYEES. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. THE COMPANY ALSO PROVIDES HEALTH, DENTAL AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COMPANY TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC AND WATER SERVICES PROVIDED BY THE COMPANY TO ITS CONSUMER-OWNERS. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COMPANY ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COMPANY 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, LINES 5-7: 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 $ 2,694,339 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (54,800) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (95,118) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 637,702 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 86,302 TOTAL WAGES ACCRUED AND/OR PAID $ 3,268,425 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,554,172 OFFICE SUPPLIES 286,236 OUTSIDE SERVICES 349,918 INSURANCES AND DAMAGES 228,784 CUSTOMER COLLECTION 38,743 DUES AND SUBSCRIPTIONS 110,480 MAINTENANCE OF GENERAL PLANT 182,289 REAL ESTATE TAXES 130,552 BANK FEES 104,246 MISCELLANEOUS GENERAL 293,411 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,278,831 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (54,800) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,356,879) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (438,748) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,428,404 FORM 990, PART XI, LINE 9: ACTUARIAL GAIN -653,198. POST RETIREMENT BENEFIT AMORTIZATION 693,193. VALUATION ADJUSTMENT ON INVESTMENTS 938,527.