2020-11-16T15:20:01-06:00 2019-12-31 135381590 BDO USA LLP 601 UNION ST STE 2300 SEATTLE WA 981012345 990 2019-01-01 910361270 PENINSULA LIGHT COMPANY PENI 2538575950 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 JAFAR TAGHAVI CEO 2538575950 2020-11-16 1 RAY HOLMDAHL P00120599 2063827777 2020-11-16 67.170.127.184 2020-11-16 12:54:41 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 8806A3DB8D75E69CC7998BBD071AF0157C0288D1 2019 2022-01-07 14:23:13Z JAFAR TAGHAVI 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 61223193 0 X WWW.PENLIGHT.ORG X 1925 WA ALL ACTIVITIES ARE THE RESULT OF PROVIDING ELECTRICITY AND WATER TO MEMBERS AND OPERATING THE COMPANY IN A FISCALLY RESPONSIBLE MANNER CONSISTENT WITH THE PURPOSES OF THE MUTUAL CORPORATION. 9 9 90 0 0 0 0 0 58379018 60020283 243932 311843 969091 883246 59592041 61215372 0 0 0 0 2455883 2523399 0 0 0 50474097 53040989 52929980 55564388 6662061 5650984 188121353 196809863 44450282 47435863 143671071 149374000 ALL ACTIVITIES ARE THE RESULT OF PROVIDING ELECTRICITY AND WATER TO MEMBERS AND OPERATING THE COMPANY IN A FISCALLY RESPONSIBLE MANNER CONSISTENT WITH THE PURPOSES OF THE MUTUAL CORPORATION. 0 0 DISTRIBUTION OF ELECTRICITY AND WATER TO MEMBERS' PROPERTY. CURRENTLY SERVES APPROXIMATELY 33,000 MEMBERS. 0 0 0 0 0 0 0 0 0 1 1 0 0 0 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 0 1 1 0 0 1 38 0 1 90 1 0 0 0 0 0 60296126 780160 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X CEO & CONTROLLER 2538575950 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 X JAFAR TAGHAVI CEO - SEE SCH. O PAGE 2 48.00 X 840598 0 169829 MICHAEL SIMPSON CHIEF OPERATIONS OFFICER 48.00 X 156307 0 73584 CORY ROBSON WIREMAN FOREMAN 40.00 X 158243 0 32675 RYAN REDMOND CHIEF RESOURCES OFFICER 48.00 X 151326 0 38576 WILLIAM CANNON JOURNEYMAN LINEMAN 40.00 X 137882 0 37321 ANDY SORENSEN JOURNEYMAN LINEMAN 40.00 X 149609 0 13993 JESSICA WIGGLE CONTROLLER 40.00 X 103670 0 26409 LISA HALL CHIEF BUSINESS OFFICER 48.00 X 93483 0 0 PAUL L ALVESTAD PRESIDENT AND DIRECTOR 6.00 X X 25550 0 0 SCOTT JUNGE VICE PRESIDENT AND DIRECTOR 6.00 X X 23550 0 0 DEBRA ROSS SECRETARY AND DIRECTOR 6.00 X X 25850 0 0 SPENCE NORDFORS TREASURER AND DIRECTOR 6.00 X X 23550 0 0 MARC JORGENSON BOARD OF DIRECTOR 6.00 X X 25350 0 0 NICK MARKOVICH BOARD OF DIRECTOR 6.00 X 26900 0 0 SIGNO UDDENBERG BOARD OF DIRECTOR 6.00 X 26600 0 0 ROGER M SPADONI BOARD OF DIRECTOR 6.00 X 24950 0 0 JAMES SMALLEY BOARD OF DIRECTOR 6.00 X 15450 0 0 JEFFREY A BUCHOLZ BOARD OF DIRECTOR 6.00 X 10000 0 0 2018868 0 392387 7 0 1 0 ACTIVE CONSTRUCTION INC 5110 RIVER ROAD E TACOMA WA 98443 OPERATIONS CONSTRUCTION/MAINTENANCE 977234 ASPLUNDH TREE EXPERT CO 708 BLAIR MILL ROAD WILLOW GROVE PA 19090 TREE TRIMING/VEGETATION MANAGEMENT 868930 EQUIPMENT EXPERTS INC 2704 104TH ST CT S BLDG K LAKEWOOD WA 98499 FLEET MANAGEMENT 693786 RCE TRAFFIC CONTROL INC 2525 SE SEDGWICK RD PORT ORCHARD WA 98366 FLAGGING SERVICES 382763 MICHELS 9433 DOWCOR LANE SW TUMWATER WA 98512 OPERATIONS CONSTRUCTION/MAINTENANCE 339948 7 ELECTRICITY 221000 57507904 57507904 WATER 221000 1562763 1562763 MEMBER SERVICE INC 221000 591020 591020 HOOKUP/DISCONNECT/ENGINEERING FEE 221000 211689 211689 BPA REIMBURSEMENT 221000 146907 146907 60020283 273834 273834 17515 450352 7821 0 9694 450352 460046 9694 450352 38009 0 38009 38009 38009 INCOME FROM EQUITY METHOD INVESTE 900099 423200 423200 423200 61215372 60491186 0 724186 1461739 151828 102142 603617 204073 161883 193325 31461 155949 74070 60524 120393 1981900 7066830 193112 POWER EXPENSE 27514119 DISTRIBUTION 4576118 TAXES 3056392 MAINTENANCE 2740993 5113920 55564388 7889691 9244194 218746 245205 8805776 7891002 1956124 2137009 124620 732356 202491222 79562533 122329071 122928689 45571879 46807391 1225446 6824017 188121353 196809863 7022033 6000777 504970 533301 36923279 40901785 44450282 47435863 X 0 0 4161819 4213762 139509252 145160238 143671071 149374000 188121353 196809863 X 5650984 51945 X 0 1 X 1 0 3683188 3683188 166731 5914391 4764456 1316666 41115 14858 26257 185975068 74783219 111191849 6710729 6710729 122928689 19833716 C CAPITAL TERM CERTIFICATES 1290160 C PATRONAGE CAPITAL CERTIFICATES - CFC 1484564 C FEDERATED INSURANCE PREFERRED STOCK 278019 C INVESTMENT IN PLC ENERGY 23920932 C 46807391 X PART X, LINE 2: PLC IS EXEMPT FROM FEDERAL INCOME TAX UNDER THE INTERNAL REVENUE CODE SECTION 501(C)(12). ACCORDINGLY, NO PROVISION FOR INCOME TAX IS REQUIRED. PLC ENERGY, A FOR-PROFIT ENTITY, ACCOUNTS FOR FEDERAL INCOME TAX USING AN ASSET AND LIABILITY APPROACH, WHICH REQUIRES THE RECOGNITION OF DEFERRED TAX ASSETS AND LIABILITIES FOR THE EXPECTED FUTURE TAX CONSEQUENCES OF TEMPORARY DIFFERENCES BETWEEN THE FINANCIAL STATEMENT AND TAX BASIS OF ASSETS AND LIABILITIES AT THE APPLICABLE ENACTED TAX RATES. A VALUATION ALLOWANCE IS RECORDED AGAINST DEFERRED TAX ASSETS IF, BASED ON THE WEIGHT OF AVAILABLE EVIDENCE, IT IS MORE LIKELY THAN NOT THAT SOME OR ALL OF ITS DEFERRED TAX ASSETS WILL NOT BE REALIZED. PLC ENERGY REPORTS A LIABILITY, IF ANY, FOR UNRECOGNIZED TAX BENEFITS RESULTING FROM UNCERTAIN INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN AN INCOME TAX RETURN. ESTIMATED INTEREST AND PENALTIES, IF ANY, ARE RECORDED AS A COMPONENT OF INTEREST EXPENSE AND OTHER EXPENSE, RESPECTIVELY. NO LIABILITY HAS BEEN RECORDED FOR UNCERTAIN TAX POSITIONS, OR RELATED INTEREST OR PENALTIES AS OF DECEMBER 31, 2019 OR 2018. X X X X X 0 0 0 JAFAR TAGHAVI CEO - SEE SCH. O PAGE 2 784929 0 0 0 55669 0 98633 0 71196 0 1010427 0 469256 0 MICHAEL SIMPSON CHIEF OPERATIONS OFFICER 141195 0 0 0 15112 0 51529 0 22055 0 229891 0 0 0 CORY ROBSON WIREMAN FOREMAN 154858 0 0 0 3385 0 3216 0 29459 0 190918 0 0 0 RYAN REDMOND CHIEF RESOURCES OFFICER 142155 0 0 0 9171 0 5485 0 33091 0 189902 0 0 0 WILLIAM CANNON JOURNEYMAN LINEMAN 135260 0 0 0 2622 0 8685 0 28636 0 175203 0 0 0 ANDY SORENSEN JOURNEYMAN LINEMAN 148834 0 0 0 775 0 10927 0 3066 0 163602 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 WE ARE A MUTUAL/COOPERATIVE WHERE THE RECIPIENTS OF OUR UTILITY SERVICES ARE THE OWNER/MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ALL THE SAME CLASS - RECEIVE UTILITY SERVICE FROM COMPANY. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERSHIP VOTE IS NEEDED FOR ANNUAL BOARD ELECTIONS AND IN ANOTHER ARTICLE PERTAINING TO THE DISPOSITION OF ASSETS. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES THAT HAVE THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY, SO THE QUESTION IS NOT APPLICABLE. FORM 990, PART VI, SECTION B, LINE 11B COPIES OF THE 990 WILL BE INCLUDED IN THE BOARD PACKETS DISTRIBUTED PRIOR TO THEIR MONTHLY MEETING. ANY QUESTIONS WILL BE DISCUSSED AND ANSWERED AT THE BOARD MEETING AND DISCUSSION WILL BE NOTED IN THE BOARD MINUTES. COPIES OF THE 990 WILL BE DISTRIBUTED TO SENIOR STAFF AND ANY QUESTIONS WILL BE DISCUSSED AND ANSWERED AT THE SENIOR STAFF MEETING. FORM 990, PART VI, SECTION B, LINE 12C HUMAN RESOURCE (HR) DIRECTOR MONITORS AND ADMINISTERS THE POLICY. FORM 990, PART VI, SECTION B, LINE 15A AN INDEPENDENT CONSULTANT WAS HIRED TO CONDUCT A MARKET SALARY STUDY FOR THE CEO POSITION. THE COMPENSATION COMMITTEE WAS ASSIGNED TO WORK WITH THE CONSULTANT AND REPORT DIRECTLY TO THE PRESIDENT OF THE BOARD. THE CEO HAD NO CONTACT OR INTERACTION IN ANY WAY WITH THE CONSULTANT OR BOARD REGARDING THIS PROJECT. THE CONSULTANT REPORTED HIS FINDINGS TO THE ENTIRE BOARD OF DIRECTORS. A QUESTION AND ANSWER SESSION FOLLOWED WHERE THE CONSULTANT ANSWERED SPECIFIC QUESTIONS FROM THE BOARD ABOUT THE COMPARABILITY OF DATA PRESENTED. THE ENTIRE BOARD DELIBERATED BEFORE REACHING THEIR DECISION AS TO WAGE PLACEMENT FOR THE CEO. IN A SEPARATE MEETING, THE BOARD PRESIDENT AND CHAIRMAN OF THE COMPENSATION COMMITTEE INFORMED THE CEO OF THE COMPENSATION CHANGE AND ITS EFFECTIVE DATE. OFFICERS (CFO, CBO, ETC.) AN INDEPENDENT CONSULTANT WAS HIRED TO CONDUCT A MARKET SALARY FOR ALL EXEMPT MANAGEMENT POSITIONS. THE CONSULTANT REPORTED HIS FINDINGS TO THE HR DIRECTOR; THEY DISCUSSED THE DATA COMPARISONS AND SUBSTANTIATION BEHIND IT. THE HR DIRECTOR PRESENTED THIS INFORMATION TO THE CEO AND DISCUSSED THE CONSULTANT'S RECOMMENDATIONS AND THE FINANCIAL ABILITY OF THE COMPANY TO SUPPORT THE DATA. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE AVAILABLE UPON WRITTEN REQUEST AT THE COMPANY'S MAIN OFFICE. FORM 990 - PART VII - SECTION A COMPENSATION REFLECTS 10 YEARS OF RETENTION BONUS REQUIRED TO BE REPORTED IN 2019. NOT A RECURRING FIGURE. FORM 990, PART XI, LINE 9: NET INCREASE IN MEMBERSHIPS 51,945. FORM 990, PART IX, LINES 5 & 7 THE AMOUNTS FOR COMPENSATION IN THE STATEMENT OF FUNCTIONAL EXPENSES DO NOT INCLUDE ALL WAGES FOR PENINSULA LIGHT COMPANY. THE AMOUNTS ON LINES 5 & 7 ARE ONLY FOR WAGES PERTAINING TO GENERAL AND ADMINISTRATIVE EMPLOYEES. ALL OTHER WAGES ARE INTEGRATED THROUGHOUT OTHER EXPENSES, SUCH AS POWER EXPENSE, DISTRIBUTION, ETC. PLC ENERGY INC 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 911943365 WHOLESALE POWER SALES WA PENINSULA LIGHT COMPANY C 2358005 1997300 1.00000 1 HARVEST WIND PROJECT (TENANTS IN COMMON) PO BOX 3007 LONGVIEW WA 98632 264679797 WIND FARM WA N/A C 450200 20730200 0.20000 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 PLC ENERGY INC B 2211239 ACTUAL COST PLC ENERGY INC O 167666 ACTUAL COST HARVEST WIND PROJECT F 1578000 ACTUAL COST