2020-11-10T08:53:51-06:00 2019-12-31 450250958 EIDE BAILLY LLP 200 E 10TH ST STE 500 SIOUX FALLS SD 571046375 990 2019-01-01 421468305 HEARTLAND POWER COOPERATIVE HEAR 6415842251 PO BOX 65 THOMPSON IA 50478 JON LEERAR CEO/GENERAL MANAGER 6415842251 2020-11-06 1 LAURIE HANSON CPA P00851848 6053391999 2020-11-06 67.130.171.59 2020-11-06 13:19:39 CS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 A8DB27B0CC75174FC7797F8E3D6A96021CEF41AE 2019 2021-04-22 16:20:28Z JON LEERAR PO BOX 65 THOMPSON IA 50478 29961041 0 X WWW.HEARTLANDPOWER.COM X 1997 IA TO PROVIDE ELECTRICITY TO RURAL COMMUNITIES. 8 8 30 0 15097 0 0 0 29227864 29779533 172353 68430 60970 61986 29461187 29909949 0 0 111486 1318890 2304764 2415074 0 0 0 25743656 25800985 28159906 29534949 1301281 375000 50865057 57654349 21639833 27228187 29225224 30426162 X OUR VISION IS TO BE THE PROVIDER OF CHOICE FOR ENERGY AND SERVICES BY ALL CONSUMERS. OUR PRIMARY PURPOSE IS TO PROVIDE ELECTRICAL ENERGY AND OTHER SERVICES THAT ENHANCE THE QUALITY OF LIFE OF OUR MEMBERS AND THE ECONOMIC AND SOCIAL WELL-BEING OF THE REGION AT THE LOWEST POSSIBLE COST CONSISTENT WITH SOUND ECONOMIC AND MANAGEMENT DECISIONS. 0 0 HEARTLAND POWER COOPERATIVE INVESTED IN NEW SERVICE LINES, LINE AND SERVICE IMPROVEMENTS, AND ORDINARY REPLACEMENT OF EXISTING LINE TO KEEP UP THE CONDITION OF OUR DISTRIBUTION SYSTEM. A SUMMARY OF THESE IMPROVEMENTS IS LISTED BELOW:15.5 MILES OF OVERHEAD LINE WAS REBUILT3.25 MILES OF UNDERGROUND LINE WAS INSTALLED661 NEW POLES WERE PURCHASED TO BUILD NEW LINE, NEW SERVICES, AND FOR ORDINARY REPLACEMENT OF DAMAGED OR DECAYED POLES OR FOR BETTER LINE CLEARANCE2,912 POLES WERE INSPECTED FOR DECAY OR DAMAGE294 ARRESTORS WERE ADDED TO LINES TO DRAIN OFF LIGHTNING SURGES24 ELECTRONIC TRIP SAVERS WERE INSTALLED TO IMPROVE RELIABILITY AND REDUCE OUTAGES284 SECURITY LIGHTS WERE REPAIRED HEARTLAND POWER COOPERATIVE PURCHASED THE 18 SUBSTATIONS SERVING THE COOPERATIVE FROM DAIRYLAND POWER COOPERATIVE. 0 0 0 0 0 0 0 1 0 1 0 1 0 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 22 0 1 30 1 1 1 0 0 0 0 29141649 216919 0 0 0 X 8 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 0 X KARRIE PRINGNITZ 6415842251 216 JACKSON ST THOMPSON IA 50478 X JON LEERAR CEO/GENERAL MANAGER 60.00 X 157017 0 36357 KARRIE PRINGNITZ DIRECTOR OF FINANCE 50.00 X 102162 0 27370 DAVE LOW DIRECTOR OF OPERATIONS 50.00 X 101719 0 25505 RICHARD ROSENBERG PRESIDENT 9.00 X X 10750 0 0 DON KNUDTSON DIRECTOR 8.00 X 8700 0 0 LARRY TJADEN SECRETARY 5.00 X X 8100 0 0 VINCE MORISCHE DIRECTOR 7.00 X 8100 0 0 ROGER SOLOMONSON VICE PRESIDENT 9.00 X X 7750 0 0 ROGER TJARKS DIRECTOR 7.00 X 7500 0 0 MARK KINGLAND TREASURER 8.00 X X 6750 0 0 GARY PEARSON ASST. SECRETARY-TREASURER 5.00 X X 5100 0 0 423648 0 89232 3 0 1 0 STAR ENERGY SERVICES 6841 POWER LANE SW ALEXANDRIA MN 56308 ENGINEERING AND OTHER SERVICES 139767 ASPLUNDH TREE EXPERT CO 708 BLAIR MILL RD WILLOW GROVE PA 19090 TREE TRIMMING 102185 2 SALE OF POWER 221000 28888398 28888398 CAPITAL CREDITS 221000 893272 893272 EQUITY EARNINGS - UBI 517000 15097 15097 EQUITY EARNINGS 517000 -17234 -17234 29779533 48467 48467 59082 0 59082 59082 59082 19963 0 19963 19963 19963 53996 51092 2904 2904 29909949 29784574 15097 110278 1318890 434605 1520989 321533 137947 351824 1336650 COST OF POWER 23178572 OTHER OPERATIONS 933939 29534949 83723 2405864 2828264 4068291 3275579 3122717 504120 499296 114029 117863 48305088 13507426 32115981 34797662 105840 103703 11830859 12532291 6662 6662 50865057 57654349 3537023 5020567 9120925 13527818 1185502 1384441 7796383 7295361 21639833 27228187 X 0 0 0 0 29225224 30426162 29225224 30426162 50865057 57654349 X 375000 825938 X 0 1 X 1 0 1 4691 23712 23950 4453 0 42308 42308 1771096 422489 1348607 4365623 2604185 1761438 1529700 40596361 10480752 31645309 34797662 DAIRYLAND POWER COOPERATIVE, INC. 11390263 C FEDERATED RURAL ELECTRIC INSURANCE CORP 91997 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 776565 C WCTA 56093 C RURAL ELECTRIC SUPPLY COOPERATIVE 19292 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 20039 C NATIONAL INFORMATION SERVICE COOPERATIVE 52151 C COOPERATIVE RESPONSE CENTER 1523 C COBANK 114227 C OTHER INVESTMENTS 10141 C 12532291 CUSTOMER DEPOSITS 70871 DEFERRED CREDITS 7197222 OTHER LIABILITIES 27268 7295361 X 29909949 0 29909949 0 29909949 28216059 0 28216059 1318890 1318890 29534949 PART IV, LINE 1B: THE HPC OPERATION ROUND UP PROGRAM WAS ESTABLISHED IN 2003 AND IS FUNDED WITH THE MONIES VOLUNTARILY COLLECTED BY ROUNDING UP PARTICIPATING CUSTOMER-OWNER'S ELECTRIC BILLS. THE PURPOSE OF THE PROGRAM SHALL BE THE ACCUMULATION AND DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES OF ORGANIZATIONS, INDIVIDUALS AND/OR FAMILY EMERGENCY DISASTERS IN THE SERVICE AREA AND REGIONAL COOPERATIVE FAMILY OF HEARTLAND POWER COOPERATIVE (HPC). THE BOARD OF DIRECTORS OF HPC ADMINISTER THE PROGRAM AND A COMMITTEE DESIGNATED BY THE HPC BOARD OF DIRECTORS REVIEWS APPLICATIONS FOR PRESENTATION AND APPROVAL OF THE HPC BOARD. PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE IRS. IN ADDITION THE COOPERATIVE IS SUBJECT TO INCOME TAX ON NET INCOME THAT IS DERIVED FROM BUSINESS ACTIVITIES THAT ARE UNRELATED TO ITS PURPOSE. THE COOPERATIVE FILES AN EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURN (FORM 990T) WITH THE IRS TO REPORT ITS UNRELATED BUSINESS TAXABLE INCOME. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2019 MARGINS TO MEMBERS IN 2020 1,318,890. X X 0 0 0 JON LEERAR CEO/GENERAL MANAGER 157017 0 0 0 0 0 11237 0 25119 0 193373 0 0 0 SCHEDULE J, PART II COL (C) INCLUDED IN COLUMN C IS THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN OF $6,002. THE ACTUAL EXPENSE OF THE COOPERATIVE FOR THE GENERAL MANAGER'S DEFINED BENEFIT PLAN WAS $34,751. FORM 990, PART VI, SECTION A, LINE 6 CLASSES OF MEMBERS INCLUDE RESIDENTIAL, AGRICULTURAL, AND COMMERCIAL. FORM 990, PART VI, SECTION A, LINE 7A ALL MEMBERS IN ALL CLASSES MAY VOTE, EACH MEMBER HAVING EQUAL AUTHORITY. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN BYLAW CHANGES REQUIRE MEMBER APPROVAL. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE GENERAL MANAGER OR FINANCE OFFICER REVIEWS THE 990 IN DETAIL. AFTER THEIR REVIEW, THE 990 IS PROVIDED TO EACH BOARD MEMBER. THE 990 IS NOT FILED UNTIL EACH BOARD MEMBER HAS BEEN GIVEN A COPY OF IT AND GIVEN AMPLE TIME TO REVIEW IT. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES AND BOARD MEMBERS ARE COVERED BY THE CONFLICT OF INTEREST POLICY. ANNUALLY, AND OTHERWISE UPON THE SEATING OF ANY NEW BOARD MEMBER OR UPON THE HIRING OF ANY NEW EMPLOYEE, A DISCLOSURE OF CONFLICT OF INTEREST STATEMENT WILL BE SIGNED BY EACH DIRECTOR. IT WILL BE THE RESPONSIBILITY OF THE BOARD PRESIDENT TO ADDRESS ANY CONFLICTS OF INTEREST AND TAKE APPROPRIATE ACTION IF ANY DIRECTOR OF THE COOPERATIVE HAS BEEN DEEMED NOT ADHERING TO THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS OF DETERMINING COMPENSATION FOR THE CEO/GENERAL MANAGER IS: COMPARABILITY DATA, ANNUAL REVIEW AND BOARD APPROVAL. THE DISCUSSION IS DOCUMENTED IN A SPECIAL BOARD MEETING. THE BOARD OF DIRECTORS UTILIZE THE ANNUAL NRECA COMPENSATION SURVEY WHEN REVIEWING THE CEO/GENERAL MANAGER COMPENSATION. THIS PROCESS WAS LAST UNDERTAKEN IN SEPTEMBER 2019. THE PROCESS OF DETERMINING COMPENSATION FOR OTHER OFFICERS AND MANAGEMENT IS: COMPARABILITY DATA AND AN ANNUAL REVIEW BY THE CEO/GENERAL MANAGER. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO MEMBERS OF THE COOPERATIVE UPON REQUEST. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE CEO/GENERAL MANAGER AND DIRECTOR OF FINANCE. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -489,653. CHANGE IN OTHER EQUITIES -3,299. ALLOCATION OF 2019 MARGINS TO MEMBERS IN 2020 1,318,890. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: 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 BY-LAWS OF THE COOPERATIVE. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 5-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E.