2018-05-22T15:28:00-07:00 2017-12-31 990 2017-01-01 381109570 Tri-County Electric Cooperative TRI- 5146477554 7973 East Grand River Ave Portland MI 48875 Mark Kappler President/CEO 5146471281 2018-04-30 2017 2022-09-23 18:48:47Z Mark Kappler 7973 East Grand River Ave Portland MI 48875 48694779 0 X www.homeworks.org X 1937 MI To provide our members and customers with energy, comfort and communication solutions that will enhance their quality of life. 7 0 86 0 0 0 0 0 47079631 48198624 129347 166833 279003 260366 47487981 48625823 0 0 2293466 2566450 5648040 5834546 0 0 0 39746475 40424827 47687981 48825823 -200000 -200000 118985980 120479118 57679901 59370612 61306079 61108506 To provide our members and customers with energy, comfort and communication solutions that will enhance their quality of life. 0 0 Revenues from sale of electric power to 25,932 meters. Added/replaced 8.4 miles of line for a total of 3,376 miles of line. 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 81 0 1 86 1 0 0 0 0 0 46562141 225326 0 X 7 0 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Patrick Simmer 5176477554 7973 E Grand River Ave Portland MI 48875 X Luke Pohl Chairman 14.35 0.30 X X 25418 0 0 Corinna Batora Vice Chairman 16.28 0.30 X X 22740 0 0 Kimber Hansen Secretary/Treasurer 9.43 0.30 X X 21638 0 0 Ed Oplinger Director 7.37 0.30 X 18173 0 0 John Lord Director 12.72 0.30 X 22740 0 0 Shirley Sprague Director 14.74 0.30 X 24315 0 0 James Stebbins Director 10.51 0.30 X 20119 0 0 Mark Kappler President/CEO 54.38 4.24 X 204710 0 102115 Patrick Simmer CFO 42.87 3.83 X 111640 0 67299 Thomas Manting CIO 42.52 0.03 X 115003 0 69876 Christopher Reed Operations Manager 44.10 0 X 116581 0 81116 Christian Jensen Engineering Manager 44.13 0 X 116293 0 72417 Cody Teegardin Lineman 49.99 0 X 121142 0 31050 Richard Warchuck Lineman 46.58 0 X 114646 0 37387 Allen delo Lineman 44.13 0 X 109895 0 24923 1165053 0 486183 18 0 1 0 Asplundh Tree Expert Company PO Box 827464 Philidelphia PA 19182 Tree Cutting/Trimming 1344996 Michigan Electric Cooperative Association (MECA) 201 Townsend St No 900 Lansing MI 48933 Statewide Association 975382 Woodwalkers Electric 8210 N Harrison Ave Roscommon MI 48653 Line Construction 558223 National Information Solutions PO Box 1147 Mandan ND 58554 Software Support 409236 Kent Power Inc 90 Spring St PO Box 337 Kent City MI 49330 Line Construction 404481 8 0 Electric Revenues 221000 46059681 46059681 0 0 Capital Credits 900099 2138943 2138943 0 0 0 0 0 0 48198624 91713 0 0 91713 0 0 0 0 0 0 0 0 253746 0 0 0 253746 0 253746 0 0 253746 0 87286 0 12166 0 75120 75120 0 0 75120 63410 56790 6620 6620 0 0 0 48625823 48205244 0 420579 X 0 0 0 2566450 749890 3273780 285300 783649 741927 1106897 2079097 2980872 0 Cost of Power 29084914 Distribution 2701588 Customer Accounts 1315825 Administrative and General 1143300 12334 48825823 0 0 0 0 0 1194445 1149878 0 0 6150264 6354314 0 0 0 0 0 0 720923 664846 2209708 2072266 104397800 33084456 69966711 71313344 0 0 0 0 38607533 38793904 0 6313 136396 124253 118985980 120479118 8994661 8266018 0 0 2422302 2437218 0 0 5479 5599 0 0 45232459 47661777 1025000 1000000 0 0 57679901 59370612 X 50489424 49891987 10816655 11216519 0 0 61306079 61108506 118985980 120479118 X -200000 0 0 0 0 2427 X 0 1 1 0 0 1 X 3300 506717 510017 0 7417844 2500715 4917129 0 0 0 0 0 96215729 30583741 65631988 0 254210 0 254210 71313344 Wolverine Power Supply Co-op Capital Credits 27746199 C Tri-Co Services, Inc. 7714506 C CFC-Subordinate Certificates 1847108 C CFC-Patronage Capital 980108 C Memberships and Other Investments 505983 C 38793904 0 0 X 49038536 0 0 0 412713 412713 48625823 0 0 0 48625823 46247038 0 0 0 -12334 -12334 46259372 0 2566451 2566451 48825823 Schedule D, Part IV, Line 2b The Cooperative collects and remits voluntary contributions to the Tri-County Electric People Fund, Inc. (the fund) a 503(c)(3) nonprofit organization for charitable giving to individuals and organizations primarily in the Cooperative's service area. Amounts owed to the fund at December 31, 2017 and 2016 amounted to $5,599 and $5,479, respectively. Schedule D, Part X, Line 2 The Cooperative is exempt from federal tax under section 501(c)(12) of the United States Internal Revenue Code, therefore no provision for federal income tax is recorded. However, income from unrelated business activity is subject to income tax at normal corporate rates. The Cooperative has adopted the provision for FASB Accounting Standards Codification Topic ASC 740-10 effective January 1, 2009. Implementation resulted in no cumulative effect adjustments to related earnings as of the date of adoption. The Cooperative has no unrecognized tax benefits as of December 31, 2017 and 2016. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if such penalties and interest are incurred. Under normal circumstances, the Cooperative is no longer subject to Federal and State examinations by tax authorities for years before 2014. The Cooperative undergoes an annual analysis of its various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities, as defined by ASC 740-10. Schedule D, Part XI, Line 2d Equity Earnings of Subsidiary $425,047, Non-Operating Expense -$12,334. Schedule D, Part XII, Line 2d Non-Operating Expense -$12,334. Schedule D, Part XII, Line 4b Patronage Capital Credits allocated during the year $2,566,451. X X X 0 0 0 Mark Kappler President/CEO 197094 0 0 0 7616 0 82539 0 18873 0 306122 0 0 0 Christopher Reed Operations Manager 111767 0 3330 0 1484 0 59343 0 22199 0 198123 0 0 Christian Jensen Engineering Manager 110911 0 4530 0 852 0 48044 0 24803 0 189140 0 0 Thomas Manting CIO 111152 0 3010 0 840 0 45504 0 24825 0 185331 0 0 0 Patrick Simmer CFO 103868 0 6360 0 1412 0 45006 0 22046 0 178692 0 0 0 Cody Teegardin Lineman 120988 0 0 0 154 0 7283 0 24574 0 152999 0 0 0 Richard Warchuck Lineman 114391 0 0 0 254 0 12946 0 25153 0 152744 0 0 0 Schedule J, Part II Included in column "c", deferred comp, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Mark Kappler is $75,470, Christopher Reed is $54,768, Christian Jensen is $43,399, Thomas Manting is $40,849, Patrick Simmer is $40,720, Cody Teegardin is $4,016 and Richard Warchuck is $9,680. These amounts are an estimate in the increase in value of the plan and is not a current year expense of the Cooperative. The current year expense for the defined benefit plan is $38,660, $22,023, $22,359, $22,415, $20,567, $14,207 and $14,207 respectively. Christia Manting Spouse of CIO 63604 Wages and Benefits 0 Form 990, Part VI, Section A, Line 2 All board members and the CEO have business relationships due to their positions with Tri-Co Services, Inc. a wholly owned corporation. Form 990, Part VI, Section A, Line 4 The Articles of Incorporation and Bylaws were changed to allow providing telecommunications to the membership on a not for profit basis. Form 990, Part VI, Section A, Line 6 There is one class of members. Each member is entitled to one vote. Form 990, Part VI, Section A, Line 7a Each member is entitled to one vote to elect their district board member at their annual district meeting. Form 990, Part VI, Section A, Line 7b The altering or amending of the bylaws requires the majority vote of members. Each member has one vote on such a decision. Form 990, Part VI, Section A, Line 8b There is no committee with the authority to act on behalf of the full board. Form 990, Part VI, Section B, Line 11b The CEO and the CFO reviewed the Form 990 prior to it being filers. Form 990 is also distributed to the board for review and approval by board resolution. Form 990, Part VI, Section B, Line 12c A board policy exists describing the situations creating a conflict of interest and requires each of the directors and key employees to disclose and report any potential conflicts to the proper authority. The CFO, CIO and other employees must report to the CEO. The CEO must report to the board chairman. The CFO, CIO, CEO and the directors are required to review and sign an annual statement pertaining to conflicts of interest. Directors found in violation of this policy will be dealt with pursuant to the bylaws of the Cooperative. Form 990, Part VI, Section B, Line 15 Job descriptions are maintained for each position, providing a basis for responsibility for each position. Annual goals and objectives tied to the strategic plan of the Organization are set for each position. Once each fiscal year the performance of these positions are evaluated. For the CEO, the board of directors as a whole evaluates the performance against the job responsibilities and goals and objectives. Also, provided as a guide are guidelines provided by the national organization called the CEO Complementary Profile which provides a list of competencies and characteristics for success. For the CFO, and CIO, the position is evaluated in a similar manner as the CEO. Annual compensation surveys are obtained for the above positions in similar organizations with similar responsibilities which provide compensation ranges. Education, background and work experience is also taken into consideration. Annual evaluations are brought to the board in September of each year. This annual process was last completed in September 2017. Form 990, Part VI, Section C, Line 19 The organization makes its governing documents, conflict of interest policy and financial statements available upon request. Form 990, Part VII, Section A, Line 1a Included in column "f", estimated amount of other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Mark Kappler is $75,470, Christopher Reed is $54,768, Christian Jensen is $43,399, Thomas Manting is $40,849, Patrick Simmer is $40,720, Cody Teegardin is $4,016 and Richard Warchuck is $9,680. These amounts are an estimate in the increase in value of the plan and is not a current year expense of the Cooperative. The current year expense for the defined benefit plan is $38,660, $22,023, $22,359, $22,415, $20,567, $14,207 and $14,207 respectively. Form 990, Part IX, Line 4 The Cooperative has interpreted the instructions to Part IX, Line 4, to mean patronage allocated for the year, rather than capital credits retired. This is consistent with the bylaws of the Cooperative. Form 990, Part XI, Line 9 Donated Capital $174,817, Capital Credits Retired $-3,163,888, Equity Earnings by Subsidiary $425,047, Patronage Capital Allocated during the current year $2,566,451, Total to Form 990, Part XI, Line 9 $2,427. Tri-County Electric People Fund Incorporated 7973 E Grand River Ave Portland MI 48875 383083659 Operation Round Up MI 501(C)(3) Line 7 Tri-County Electric Cooperative 1 Tri-Co Services Incorporated 7973 East Grand River Ave Portland MI 48875 382803942 Sales, Service, Internet MI Tri-County Electric Cooperative C 425047 8899760 1 1 1 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 1 1 0 Tri-Co Services Incorporated a-iv 21382 Actual Cost Tri-County Electric People Fund Incorporated b 50000 Actual Cost Tri-Co Services Incorporated e 6570000 Actual Cost Tri-Co Services Incorporated n 58533 Actual Cost Tri-Co Services Incorporated o 900353 Actual Cost Tri-Co Services Incorporated p 161563 Actual Cost Tri-Co Services Incorporated r 9872043 Actual Cost Tri-County Electric People Fund Incorporated r 64642 Actual Cost