2019-11-05T09:45:47-07:00 2018-12-31 990 2018-01-01 383321875 GREAT LAKES ENERGY COOPERATIVE GREA 2315826521 PO Box 70 Boyne City MI 49712 Stephen Drake VP, CFO 2315826521 2019-11-05 172.87.32.222 2018 2020-01-14 16:20:31Z William M Scott 1323 Boyne Avenue Boyne City MI 49712 210506461 0 X www.gtlakes.com X 1998 MI Provide electric service to members. 9 9 266 0 344748 89034 0 0 195501031 208016112 2347431 1672999 33673 35003 197882135 209724114 0 0 10480453 14837584 1075680 1088794 0 0 0 186326002 193797736 197882135 209724114 0 0 491870160 523889867 297250233 318092085 194619927 205797782 The mission of Great Lakes Energy Cooperative is to deliver reliable electric service at the best possible value to members of the electric cooperative. 0 0 209724114 0 208016112 Provide electric service to member/customers - approximately 125,000 member/customers. 0 0 0 209724114 0 0 0 0 0 0 0 0 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 1 0 0 0 0 0 1 0 0 1 126 0 1 266 1 1 1 0 0 0 0 197413028 12311086 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MI X Stephen F Drake 2315826521 PO Box 70 Boyne City MI 49712 X MARK CARSON CHAIRMAN 9.9 3.50 X 34000 1950 0 PAUL SCHEMANSKI SECRETARY 8.1 3.00 X 32200 1800 0 LAURENCE MONSHOR TREASURER 10.6 0 X 32900 0 0 RIC EVANS DIRECTOR 10.4 0 X 29100 0 0 PAUL BYL DIRECTOR 9.20 0 X 25400 0 1911 TIMOTHY BRECHON DIRECTOR 7.20 0 X 24350 0 0 JOHN LAFORGE DIRECTOR 8.0 3.00 X 28800 1800 0 DALE FARRIER DIRECTOR 7.8 0 X 29100 0 1747 ROBERT KRAN DIRECTOR 9.5 0 X 33700 0 0 WILLIAM SCOTT PRES, CHIEF EXECUTIVE OFFICER 55 5 X 425187 8745 153278 STEPHEN DRAKE VP, CHIEF FINANCIAL OFFICER 55 5 X 234890 9694 126087 PATRICK ANZELL VP, MEMBER SERVICES/REG. AFFAIRS & PURCHASING 55 5 X 214169 9632 128652 JENNIFER WILSON VP, HUMAN RESOURCES 50.00 10.00 X 207517 15693 91102 SHARI CULVER VP, COMMUNICATIONS AND MEMBER SERVICES 50.00 10.00 X 206409 12856 87573 SHAUN LAMP VP, INFORMATION TECHNOLOGY 35.00 25 X 123769 96295 75176 SCOTT BLECKE VP, Engineering 55.00 5.00 X 200394 0 57535 RICHARD WALSWORTH FORMER DIRECTOR 0 0 X 13200 0 0 ROBERT THUROW FORMER DIRECTOR 0 0 X 13200 0 0 1908285 158465 723061 112 1 1 0 Roemer Utility Services 279 Kaden PO Box 124 Boyne City MI 49712 UG boring contractor 769797 Dykema Gossett PLLC 400 Renaissance Center Detroit MI 49712 Attorney 221510 Asplundh Tree Expert LLC PO Box 8527464 Philadelphia PA 19182 Electrical distr. contractor 1167122 Willey Construction LLC 9485 Ingleside Road Levering MI 49755 Electric utilitiy construction 243174 Trees LLC 1700 Solutions Center Chicago IL 60677 Right of way tree clearing 3742543 7 0 Electricity sold to Members 221000 197413028 197413028 0 0 Program related investment income 221000 9817791 9817791 0 0 Pole Rental Income 221000 497915 0 0 497915 Tower Rental 221000 81879 0 81879 0 Real Property rental income 221000 2745 0 0 2745 202754 0 202754 0 208016112 2186024 0 60115 2125909 0 0 0 0 0 0 0 0 0 6599 0 6599 0 0 0 0 0 0 0 262723 0 775748 0 -513025 -513025 -513025 0 0 35003 35003 0 0 35003 209724114 206752797 344748 2626569 14837584 1088794 10425789 14488296 Purchased electric power 117635144 Operating and maintenance expense 30753487 member service expense 10805779 Administration and general expense 7711402 1977839 209724114 0 0 0 1623206 7384874 1217986 1002168 0 0 16935706 16905814 0 0 0 0 219455 137286 2616270 3824809 7414633 7143672 511970830 146888481 341271546 365082349 1621901 1547771 472353 513900 116796142 118642890 1680962 1704334 0 0 491870160 523889867 30298419 33845741 0 0 0 0 0 0 0 0 0 0 253837991 273228626 0 0 13113823 11017718 297250233 318092085 X 519740 519740 6182932 7124581 187917255 198153461 194619927 205797782 491870160 523889867 X 0 -156960 0 0 0 11334815 X 0 1 X 1 0 0 756045 756045 0 14077147 5795221 8281926 0 0 0 0 0 497137638 141093260 356044378 0 0 0 0 365082349 Patronage capital from assoc. organizations 112856804 C Coop. Finance Corp., capital certificates 4563878 C Investment in GLE Connections Subsidiary 1216483 C Investments in other related organizations 5725 C 118642890 0 Def. cr. - contributions in aid of construction 5587873 Def. regulatory credits 2517125 Post-retirement benefits 391680 Directors' post-retirement benefits 1779848 Other long-term liabilities -168365 Deferred revenue 233541 Deferred compensation 676016 11017718 X 210002614 0 0 0 0 0 210002614 0 -278500 -278500 209724114 195165031 0 0 0 278500 278500 194886531 0 14837583 14837583 209724114 Schedule D, Part X, Line 2 Management believes that positions taken during prior years and 2018 in reporting federal taxable income for the Company and for its subsidiary are not controversial and have a high degree of being sustained upon any future examination by the taxing authority. Schedule D, Part XI, Line 4b In the audited financial statements, loss on sale of assets ($775,748), gain on sale of assets ($262,723), infrastructure use income ($202,754), miscellaneous non-operating income ($29,672), and $1 rounding were combined ($278,500) and netted against Other Expenses. This revenue, which reduced expenses in the audited financial statements, needs to be added to the audited financial statement revenue because it was shown as revenue in this 990. The total amount added to the audited financial statement revenue is $278,500. Schedule D, Part XII, Line 2d In the audited financial statements, loss on sale of assets ($775,748), gain on sale of assets ($262,723), infrastructure use income ($202,754) , and miscellaneous non-operating income ($31,770) were combined ($278,500) and netted against Other Expenses. This revenue, which reduced expenses in the audited financial statements, needs to be added to audited financial statement expenses to reconcile to this 990's expenses that do not include the reduction. Schedule D, Part XII, Line 4b Line 4B - $14,837,583 of capital credits are recorded as an expense in this 990, but are not an expense in the audited financial statements. See below and Part O of Form 990, Part IX, Line 4. Please note however that patronage dividends are the process by which Great Lakes Energy operates at cost with our members, and thereby it is a key component to accomplishing the exempt purpose of the cooperative. Therefore, Great Lakes Energy has reported the amount of our 2018 margins ($14,837,583) that have been allocated to our members, subsequent to year end, as an expense. X X X X 0 0 0 WILLIAM SCOTT PRES, CHIEF EXECUTIVE OFFICER 344734 8746 66170 0 5403 133 131311 3243 27971 691 575589 12813 0 0 STEPHEN DRAKE VP, CHIEF FINANCIAL OFFICER 217110 9694 26020 0 3634 157 104044 2569 23339 576 374147 12996 0 0 PATRICK ANZELL VP, MEMBER SERVICES/REG. AFFAIRS & PURCHASING 186904 9632 25226 0 1940 99 119160 2943 9515 235 342745 12909 0 0 JENNIFER WILSON VP, HUMAN RESOURCES 180843 15693 25226 0 1333 115 71456 1765 20350 503 299208 18076 0 0 SHARI CULVER VP, COMMUNICATIONS AND MEMBER SERVICES 180030 12856 25226 0 1078 75 64450 1592 23873 590 294657 15113 0 0 SHAUN LAMP VP, INFORMATION TECHNOLOGY 97641 96295 24197 0 985 946 53377 1318 22809 563 199009 99122 0 0 SCOTT BLECKE VP, Engineering 176838 0 21875 0 1681 0 40112 0 20661 0 261167 0 0 0 RICHARD WALSWORTH FORMER DIRECTOR 13200 0 0 0 0 0 0 0 0 0 13200 0 0 0 ROBERT THUROW FORMER DIRECTOR 13200 0 0 0 0 0 0 0 0 0 13200 0 0 0 Schedule J, Part I, Line 3 Amounts listed for CEO, CFO and all employees on Part VII in column F include (per 990 instructions) amounts associated with health care employer premiums, excess life insurance premiums, and employer contributions to a qualified 401k plan. It should be noted that these benefits are available to all employees of Great Lakes Energy and therefore these are not discriminatory benefits. Amounts included for actuarial increase in defined benefit pension plans are also included as Other Compensation and were provided to Great Lakes Energy by the National Rural Electric Cooperative Association (NRECA) which administers the multi-employer pension plan. It should be noted that these actuarial amounts are much higher than the actual cash paid to the plan. The actual cash paid to the plan for the employees listed was 43% less than the actuarial value as reported in column F as Other Compensation. The 43% difference is due to the multi-employer basis of the NRECA defined benefit pension plan. This benefit is also available to all Great Lakes Energy employees and is nondiscriminatory. Wolverine Power Supply Cooperative Board of Directors 119791873 Purchase of electricity for Distribution 0 Michigan Electric Cooperative Association Board of Directors 4376565 Dues, Coop magazine and consulting 0 Schedule L, Part I, Line 1 1)Wolverine Power Supply Cooperative (Wolverine) is the Generation and Transmission company that sells power to Great Lakes Energy (GLE). The power is then delivered to members/consumers of GLE. Three Board members from GLE sit on the Wolverine Board. There are no business transactions between or among the three Board members. 2) Michigan Electric Cooperative Association (MECA) is the Statewide organization of which GLE pays dues and member magazine costs as well as consulting and pass through fees for coordination and implementation of State of Michigan mandated Energy Optimization programs. One GLE Board Director and the CEO of GLE sit on the MECA Board. There are no business transactions between the Board Member and CEO. Form 990, Part VI, Section A, Line 6 Great Lakes Energy is a Cooperative with all electric "customers" of the Cooperative required to be members. Form 990, Part VI, Section A, Line 7a Great Lakes Energy is an electric cooperative utility. All members/consumers vote for candidates to fill the nine member Great Lakes Energy Board. An election is held annually. Board Directors serve three year terms and must be re-elected to serve longer than three years. GLE has nine districts with one Board Member from each district. Form 990, Part VI, Section A, Line 7b Certain Bylaw changes must be ratified by the general membership. This ratification is voted upon in conjunction with the annual Board election. There were no significant bylaw changes in 2018. Form 990, Part VI, Section B, Line 11b The GLE Board of Directors were presented with a questionnaire in May 2019 which was used to assist Management in completing pertinent sections of this 990. At a subsequent Board meeting, the Board reviewed the preliminary 990 and discussed specifics of the 990 return. Form 990, Part VI, Section B, Line 12c A questionnaire was delivered to each Board Member and Officers asking each to verify that they had received and read the policy and to certify they had no conflicts of interest. These certificates are on file with the supporting documentation for this 990. Form 990, Part VI, Section B, Line 15 GLE contracts with a nationally recognized compensation consultant to determine salary levels for the Chief Executive Officer and Chief Financial Officer/Chief Operating Officer along with certain others in the Company. The consultant performs an annual market survey and position evaluation utilizing comparative financial data for the industry and company size. The results are confidentially disclosed to the Chairman of the Board of Directors and the Board sets the salary levels for the Officers each year. Form 990, Part VI, Section C, Line 19 GLE makes company bylaws available to the public on line at www.gtlakes.com and with printed copies upon request. 2017 audited financial statement summaries were mailed to members in June 2018 Country Lines Magazine. They are also available upon request. GLE does not make the conflict of interest policy available to the public. Form 990, Part VII, Section A, Line 1a Form 990, Part VIII, Section A (Directors) Amounts listed for Directors are primarily per diem compensation amounts for services provided to Great Lakes Energy (column D), Great Lakes Energy Connections (column E), and for one Director the Michigan Electric Cooperative Association (combined in column C). Per Diem amount levels for Directors are benchmarked with data from over 900 other electric cooperatives through the National Rural Electric Cooperative Association (NRECA) and also benchmarked with over 35 cooperatives from the Association of Large Distribution Cooperatives (ALDC) representing the peer group of Great Lakes Energy. Amounts listed for CEO, CFO and all employees on Part VII in column F include (per 990 instructions) amounts associated with health care employer premiums, excess life insurance premiums, and employer contributions to a qualified 401k plan. It should be noted that these benefits are available to all employees of Great Lakes Energy and therefore these are not discriminatory benefits. Amounts included for actuarial increase in defined benefit pension plans are also included as Other Compensation and were provided to Great Lakes Energy by the National Rural Electric Cooperative Association (NRECA) which administers the multi-employer pension plan. It should be noted that these actuarial amounts are much higher than the actual cash paid to the plan. The actual cash paid to the plan for the employees listed was 43% less than the actuarial value as reported in column F as Other Compensation. The 43% difference is due to the multi-employer basis of the NRECA defined benefit pension plan. This benefit is also available to all Great Lakes Energy employees and is nondiscriminatory. Additionally, amounts listed as reportable compensation from related organizations, for Directors, were paid by Great Lakes Energy and then reimbursed by the related organization. The combined amounts of columns (D) and (E) equal reported 1099 amounts from Great Lakes Energy Cooperative. Form 990, Part XI, Line 9 Changes in equity not included in Great Lakes Energy's net margins consists of Employee post-retirement health benefits and Directors' pension plan adjustments, required by FASB 158, recorded in the financial statements as Other Comprehensive Gain - $112,655 increase; patronage capital refunds to members - $5,146,808 decrease; donated capital from members - $782,291 increase; sales tax returned $157,897 increase; unrealized gain on interest rate swap - $816,507 increase; change in investment of subsidiary - $1,778,965 decrease; and capital credits allocated and included in Part IX, line 4 that are not recorded in the Cooperative's audited financial statements as an expense in conformity with Generally Accepted Accounting Principles (GAAP) - $14,837,583 increase. The net increase to Net Assets is $9,781,160. Great Lakes Energy Connections Inc 1323 Boyne Avenue Boyne City MI 49712 824426315 Fiber internet MI Great Lakes Energy Cooperative C -1778965 3113157 1 0 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 Great Lakes Energy Connections Inc a-i 60115 Book value/Acct. records. Great Lakes Energy Connections Inc a-iv 6599 Book value/Acct. records. Great Lakes Energy Connections Inc d 4062531 Book value/Acct. records. Great Lakes Energy Connections Inc j 202754 Book value/Acct. records. Great Lakes Energy Connections Inc o 521222 Book value/Payroll records.