2020-09-02T12:59:04-05:00 2019-12-31 450310328 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2019-01-01 411857633 LAKE COUNTRY POWER LAKE 2187425748 26039 BEAR RIDGE DRIVE COHASSET MN 55721 GREGORY RANDA GENERAL MANAGER 2187425748 2020-08-28 1 DAVID HOLT P00014251 7017754685 2020-08-28 24.111.23.187 2020-08-28 11:44:05 CD P 395636C0289E73AFD8F252F18F8A4C9B0684D197 6C39C89A0B916563EEFC9C4D81EC75D1023FE21F 2019 2022-01-07 14:23:13Z X GREGORY RANDA 26039 BEAR RIDGE DRIVE COHASSET MN 55721 93423693 0 X WWW.LAKECOUNTRYPOWER.COOP X 1996 MN TO PROVIDE ELECTRICITY AND OTHER SERVICES TO THE COOPERATIVE'S MEMBERS. 9 7 144 0 3366 1899 0 0 91384228 90282134 312878 256213 2355357 2320271 94052463 92858618 28019 24956 6694570 3424542 725534 1008632 0 0 0 86602814 88409480 94050937 92867610 1526 -8992 315105128 327288686 203967311 216448091 111137817 110840595 STRIVE TO EXCEED THE EXPECTATIONS OF OUR MEMBERS BY PROVIDING SAFE, RELIABLE AND AFFORDABLE ELECTRIC SERVICE. INVEST IN INNOVATIVE SOLUTIONS THAT DEMONSTRATE VALUE, COMMITMENT TO OUR MEMBERS AND THE AREA WE SERVE. 0 0 PROVISION OF ELECTRICITY AND OTHER SERVICES TO THE COOPERATIVE'S 43,100 MEMBERS. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 1 69 0 144 1 1 1 0 0 0 0 90282134 3139879 0 0 0 X 9 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X MARK BAKK CPA 2187425748 8535 PARK RIDGE DRIVE MOUNTAIN IRON MN 55768 GEORGE HARVEY SECRETARY 4.28 X 12600 0 0 ROBERT BRUCKBAUER DIRECTOR 11.71 X 12000 0 0 SHERMAN LIIMATAINEN VICE PRESIDENT 7.29 X 17050 0 0 CRAIG OLSON PRESIDENT 7.12 X 17700 0 0 CRAIG CARLSON TREASURER 5.46 X 16450 0 0 MICHAEL FORSMAN DIRECTOR 10.74 X 15300 0 0 JAMES HUHTA DIRECTOR 8.59 X 12900 0 0 DANIEL KINGSLEY DIRECTOR 7.00 X 15000 0 0 JASON LONG DIRECTOR 5.08 X 14400 0 0 GREGORY RANDA GENERAL MANAGER 50.00 X 292517 0 92614 MARK BAKK CHIEF FINANCIAL OFFICER 50.00 X 197644 0 28970 DEREK HOWE CHIEF OPERATING OFFICER 50.00 X 186010 0 56279 CASEY NELSON CREW CHIEF 49.60 X 145230 0 9612 WILLIAM BUSSEY DIRECTOR OF SAFETY & RISK 50.00 X 165416 0 60475 MICHAEL BIRKELAND DIRECTOR OF MEMBER SVCS/PR 50.00 X 165952 0 73366 JOEL HAGEN SENIOR ENGINEER 50.00 X 154639 0 74308 REBECCA SEELEY HUMAN RESOURCES DIRECTOR 50.00 X 139973 0 66092 1580781 0 461716 56 0 1 0 HAWK CONSTRUCTION INC 1833 WEST HWY 2 GRAND RAPIDS MN 55744 CONSTRUCTION-COHASSET SERVICE CENTER 7312484 NORTHERN CLEARING INC 28190 STATE HWY 137 ASHLAND WI 54806 RIGHT OF WAY CLEARING 808040 NATIONAL INFORMATION SOLUTIONS COOPERATI 3201 NYGREN DR PO BOX 1147 MANDAN ND 58554 SOFTWARE SUPPORT 628300 ALLEGIANT UTILITY SERVICES LLC 100 COOPERATIVE WAY GEORGETOWN TX 78626 AMI METER INSTALLATION 475936 USIC LOCATING SERVICES LLC 9045 NORTH RIVER RD STE 300 INDIANAPOLIS IN 46240 LOCATING SERVICES 203512 7 PROG. SERV. REVENUE-RELATED 221000 90282134 90282134 90282134 264438 264438 103947 112172 -8225 -8225 -8225 384987 452903 -67916 -67916 CAPITAL CREDITS 900099 2195832 2195832 OTHER NON-OPERATING INCOME 900099 188989 188989 NCB, LLC K-1 517000 3366 3366 2388187 92858618 92599039 3366 256213 X 24956 3424542 1008632 45385 6599254 10379647 COST OF POWER 46128555 DIST EXP - MAINTENANCE 10083397 ADMIN & GENERAL EXPENSE 5625917 DIST EXP - OPERATIONS 5085326 4461999 92867610 7079621 2604589 10436359 8752405 4546974 4941517 2069757 1398105 369480511 112986571 237968488 256493940 5606594 5688817 47397335 47409313 315105128 327288686 15389249 16338563 2030288 2276348 16258 16530 185751125 197013330 780391 803320 203967311 216448091 X 0 0 0 0 111137817 110840595 111137817 110840595 315105128 327288686 X -8992 -288230 X 0 1 X 1 0 0 1 X 2960030 2960030 25255526 4695442 20560084 23572939 14354370 9218569 317692016 93936759 223755257 256493940 GREAT RIVER ENERGY - PATR CAP 38937399 C NRUCFC - CAPITAL TERM CERTS 2313402 C NRTC - PATRONAGE CAPITAL 1192940 C NRUCFC - PATRONAGE CAPITAL 851813 C RESCO - PATRONAGE CAPITAL 609965 C ECONOMIC DEVELOPMENT LOANS 779189 C OTHER PROGRAM RELATED 2471067 C NISC - PATRONAGE CAPITAL 253538 C 47409313 CUST DEPOSITS-REFUNDABLE 803320 803320 X PART IV, LINE 2B: THE MEMBERS OF THE COOPERATIVE CAN ELECT TO ROUND UP THEIR MONTHLY ELECTRIC BILL TO THE NEXT DOLLAR. THESE FUNDS COLLECTED FROM THE MEMBERSHIP ARE HELD IN A COOPERATIVE ACCOUNT UNTIL THEY ARE RELEASED TO THE LAKE COUNTRY POWER ELECTRIC TRUST. THESE FUNDS ARE TRANSFERRED DIRECTLY TO THE TRUST ON A MONTHLY BASIS. FUNDS THAT EXIST AT THE END OF THE YEAR ARE A RESULT OF A TIMING DIFFERENCE IN THE RECEIPT OF THE FUNDS AND THE RELEASE OF THEM TO THE TRUST. FOR THE YEAR ENDED DECEMBER 31, 2019, THE ACCOUNT HELD $16,530. PART X, LINE 2: THE COMPANY'S POLICY IS TO EVALUATE THE LIKELIHOOD THAT ITS UNCERTAIN TAX POSITIONS WILL PREVAIL UPON EXAMINATION BASED ON THE EXTENT TO WHICH THOSE POSITIONS HAVE SUBSTANTIAL SUPPORT WITHIN THE INTERNAL REVENUE CODE AND REGULATIONS, REVENUE RULINGS, COURT DECISIONS, AND OTHER EVIDENCE. IT IS THE OPINION OF MANAGEMENT THAT THE COOPERATIVE HAS NO SIGNIFICANT UNCERTAIN TAX POSITIONS THAT WOULD BE SUBJECT TO CHANGE UPON EXAMINATION. THE FEDERAL INCOME TAX RETURNS OF THE COMPANY ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. X X X X 0 0 0 GREGORY RANDA GENERAL MANAGER 292517 0 0 0 0 0 76828 0 17824 0 387169 0 0 0 MARK BAKK CHIEF FINANCIAL OFFICER 197644 0 0 0 0 0 28970 0 1684 0 228298 0 0 0 DEREK HOWE CHIEF OPERATING OFFICER 186010 0 0 0 0 0 34903 0 23025 0 243938 0 0 0 CASEY NELSON CREW CHIEF 145230 0 0 0 0 0 9612 0 912 0 155754 0 0 0 WILLIAM BUSSEY DIRECTOR OF SAFETY & RISK 165416 0 0 0 0 0 39099 0 22886 0 227401 0 0 0 MICHAEL BIRKELAND DIRECTOR OF MEMBER SVCS/PR 165952 0 0 0 0 0 51990 0 22917 0 240859 0 0 0 JOEL HAGEN SENIOR ENGINEER 154639 0 0 0 0 0 52932 0 22705 0 230276 0 0 0 REBECCA SEELEY HUMAN RESOURCES DIRECTOR 139973 0 0 0 0 0 44716 0 22782 0 207471 0 0 0 FORM 990, SCHEDULE J, PART II, COLUMN (C) INCLUDED IN SCHEDULE J, PART II, COLUMN "C", DEFERRED COMPENSATION, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. FOR THE FOLLOWING INDIVIDUALS, THE ESTIMATED INCREASE IS: GREGORY RANDA: $71,228 MARK BAKK: $25,087 DEREK HOWE: $31,155 WILLIAM BUSSEY: $35,828 JOEL HAGEN: $50,207 MICHAEL BIRKELAND: $48,606 REBECCA SEELEY: $41,868 CASEY NELSON: $0 THESE AMOUNTS ARE ESTIMATES IN THE INCREASE OF THE VALUE OF THE PLAN AND ARE NOT CURRENT YEAR EXPENSES OF THE COOPERATIVE. CURRENT YEAR CONTRIBUTIONS INTO THE DEFINED BENEFIT PLAN WERE: GREGORY RANDA: $64,652 MARK BAKK: $40,823 DEREK HOWE: $37,821 WILLIAM BUSSEY $36,364 JOEL HAGEN: $30,304 MICHAEL BIRKELAND: $37,624 REBECCA SEELEY: $30,968 CASEY NELSON: $0 GREAT RIVER ENERGY DALE J. LONG REPRESENTS THE COOP. ON THE GREAT RIVER ENERGY BOARD 46389974 PURCHASE OF ELECTRICITY FROM THE ORGANIZATION'S POWER SUPPLIER 0 GREAT RIVER ENERGY ROBERT BRUCKBAUER REPRESENTS THE COOP. ON THE GREAT RIVER ENERGY BOARD 46389974 PURCHASE OF ELECTRICITY FROM THE ORGANIZATION'S POWER SUPPLIER 0 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE HAS ONE CLASS OF MEMBERS. ALL ELECTRIC CUSTOMERS BECOME MEMBERS WHEN THEIR ELECTRIC SERVICE IS ESTABLISHED. MEMBERS ARE RESPONSIBLE FOR ELECTING THE BOARD OF DIRECTORS, RECEIVE ALLOCATIONS OF THE COOPERATIVE'S NET INCOME, AND MAY AMEND THE ARTICLES OF INCORPORATION OR BY-LAWS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE COOPERATIVE ARE RESPONSIBLE FOR ELECTING RESPRESENTATIVES TO SERVE ON THE BOARD OF DIRECTORS. THE COOPERATIVE'S SERVICE TERRITORY IS DIVIDED INTO NINE DISTRICTS AND EACH DISTRICT HAS ONE REPRESENTATIVE ON THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS MAY ALTER, AMEND, OR REPEAL THE BY-LAWS OF THE COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 11B EACH MEMBER OF THE BOARD OF DIRECTORS WILL RECEIVE A COPY OF THE FORM 990 PRIOR TO FILING OF THE RETURN. THE BOARD WILL REVIEW AND APPROVE THE FILING OF THE RETURN. IN ADDITION, MANAGEMENT WILL PERFORM A DETAILED REVIEW OF THE RETURN IN ADVANCE OF ITS FILING. FORM 990, PART VI, SECTION B, LINE 12C THE COOPERATIVE'S CONFLICT OF INTEREST POLICY APPLIES TO DIRECTORS, OFFICERS, AND OTHER SENIOR MANAGEMENT. DIRECTORS COMPLETE CONFLICT OF INTEREST DISCLOSURE STATEMENTS ANNUALLY AT THE TIME OF THE BOARD REORGANIZATION. OFFICERS AND OTHER SENIOR MANAGEMENT COMPLETE A "CONFLICT OF INTEREST DISCLOSURE STATEMENT" UPON HIRING. STATEMENTS ARE REVIEWED BY HUMAN RESOURCES AT THAT TIME. SHOULD A CONFLICT ARISE AFTER HIRING, THE DIRECTOR, OFFICER, OR OTHER SENIOR MANAGEMENT IS RESPONSIBLE FOR DISCLOSING THE CONFLICT TO THE BOARD OF DIRECTORS. THE BOARD SHALL DETERMINE THE EXTENT AND NATURE OF ANY ACTUAL OR APPARENT CONFLICT OF INTEREST AND DECIDE WHAT ACTION IS TO BE TAKEN WITH RESPECT TO THE CONFLICT. ACTIONS AVAILABLE AT THE BOARD'S DISCRETION INCLUDE REQUIRING DIVESTITURE OF PROPERTY, IMPOSING CONDITIONS AND RESTRICTIONS, OR REQUIRING RESIGNATION OF THE DIRECTOR, OFFICER, OR EMPLOYEE. FORM 990, PART VI, SECTION B, LINE 15 THE SALARY OF THE CEO/GENERAL MANAGER IS APPROVED ANNUALLY BY THE BOARD OF DIRECTORS. THIS WAS LAST PERFORMED IN 2019. WAGE RATES FOR UNION EMPLOYEES ARE DETERMINED THROUGH NEGOTIATIONS, WITH THE FINAL CONTRACT BEING APPROVED BY THE BOARD OF DIRECTORS. THE COOPERATIVE HAS A RATIFIED UNION CONTRACT THROUGH DECEMBER 31, 2021. NON-UNION EMPLOYEES ARE REVIEWED ANNUALLY THROUGH A PROCESS THAT INCLUDES AN EVALUATION OF JOB PERFORMANCE, AN ANNUAL EMPLOYEE APPRAISAL, AND AN APPROVED RANGE OF WAGE INCREASES BASED ON A POLICY APPROVED BY THE BOARD OF DIRECTORS. THIS PROCESS WAS LAST COMPLETED IN 2019. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE UPON REQUEST. FINANCIAL STATEMENT INFORMATION IS INCLUDED IN THE COOPERATIVE'S ANNUAL REPORT. FORM 990, PART IX, LINE 4 PATRONAGE DIVIDENDS PAID: AS REQUIRED BY FORM 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: BOOK TO TAX DIFFERENCE FROM TAXABLE 571,812. RETIREMENT OF CAPITAL CREDITS -5,693,969. ALLOCATED CAPITAL CREDITS 3,424,542. DONATED CAPITAL 456,604. RETIRED CAPITAL CREDITS GAIN 943,790. BOOK TO TAX DIFFERENCE FROM K-1 8,991. LAKE COUNTRY POWER ELECTRIC TRUST 2810 ELIDA DRIVE GRAND RAPIDS MN 55744 206179494 COMMUNITY TRUST MN 501(C)(3) 11B LAKE COUNTRY POWER 1 LAKE COUNTRY POWER HOLDINGS INC 2810 ELIDA DRIVE GRAND RAPIDS MN 55744 411977064 HOLDING COMPANY MN LAKE COUNTRY POWER C 571804 5898172 1.00000 1 LAKE STATES TREE SERVICE INC 25172 COMMERCIAL DRIVE GRAND RAPIDS MN 55744 410810558 TREE TRIMMING MN LAKE COUNTRY POWER HOLDINGS INC C 280622 1809377 1.00000 1 LAKE STATES CONSTRUCTION INC 25172 COMMERCIAL DRIVE GRAND RAPIDS MN 55744 411367401 CONSTRUCTION OF ELECTRICAL SYSTEMS MN LAKE COUNTRY POWER HOLDINGS INC C 291182 2672582 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 LAKE STATES TREE SERVICE INC M 4059542 TOTAL PAID TO LSTS LAKE STATES CONSTRUCTION INC M 2914974 TOTAL PAID TO LSC LAKE COUNTRY POWER ELECTRIC TRUST R 193384 CASH TRANSFERRED