2016-08-25T16:24:45-05:00 2015-12-31 910605875 Peterson Sullivan LLP CPA'S 601 Union St Ste 2300 Seattle WA 981012345 990 2015-01-01 910361270 Peninsula Light Company PENI 2538575950 13315 Goodnough Dr NW Gig Harbor WA 98335 JAFAR TAGHAVI ceo 2538575950 2016-08-22 1 Ray Holmdahl P00120599 2063827777 2016-08-22 2015 2016-12-15 16:53:06Z JAFAR TAGHAVI 13315 Goodnough Dr NW Gig Harbor WA 98335 55687443 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 9 100 0 0 0 0 0 51384128 54618237 251072 261699 765759 771060 52400959 55650996 0 0 0 0 2455759 2540384 0 0 0 45332770 43647493 47788529 46187877 4612430 9463119 165931997 172478953 54716992 51709254 111215005 120769699 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 31,000 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 58 0 1 100 1 0 0 0 0 0 54647187 1030257 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 1 X CEO CFO & Accounting manager at Main office 2538575950 13315 goodnough dr nw GIG HARBOR WA 98335 jeff Bucholz Secretary 2.00 X X 20400 0 0 l Paul Alvestad direCTOR 2.00 X 26196 0 0 marc Jorgenson Treasurer 2.00 X X 22100 0 0 Debra Ross direCTOR 2.00 X 23038 0 0 nick Markovich President 2.00 X X 23350 0 0 roger Spadoni DIRECTOR 2.00 X 19900 0 0 scott junge DIRECTOR 2.00 X 25288 0 0 signo uddenberg Vice President 2.00 X X 25778 0 0 spence nordfors direCTOR 2.00 X 24525 0 0 jafar Taghavi ceo 55.00 X 313478 0 150914 robert draggoo cfo 55.00 X 169532 0 90215 Scott Anderson Information Services Manager 40.00 X 121851 0 59336 Michael McNellis Operations Superintendent 40.00 X 139902 0 85568 Cory Robson Wireman Foreman 40.00 X 141932 0 23718 Michael Simpson Engineering Manager 40.00 X 134393 0 72348 Andy Sorenson Journeyman Lineman 40.00 X 125352 0 6761 1357015 0 488860 7 0 1 0 Active Construction Inc 5110 River Road E Tacoma WA 98443 Operations Construction/Maintenance 2316914 Potelco Inc 14103 Steward Rd Sumner WA 98390 Operations Construction/Maintenance 957721 Asplundh Tree Expert Co 708 Blair Mill Road Willow Grove PA 19090 Tree Triming/Vegetation Management 854089 Brown & Kysar Inc 1315 SE Grace Ave Suite 201 Battle Ground WA 98604 Engineering consulting services 518399 RCE Traffic Control Inc 2525 SE Sedgwick Rd Port Orchard WA 98366 Flagging Services 385630 8 ELECTRICITY 221000 52242734 52242734 WATER 221000 1201092 1201092 Member Service Inc 221000 443344 443344 HOOKUP/DISCONNECT/ENGINEERING FEE 221000 367825 367825 Gain on Hook-Up Fee Reimbursement 221000 360427 360427 2815 2815 54618237 236607 236607 7560 442301 6821 0 739 442301 443040 739 442301 25092 0 25092 25092 25092 27446 29626 -2180 -2180 Income from equity method investe 900099 330200 330200 330200 55650996 54974268 0 676728 934714 877201 191264 350526 186679 117553 43733 81108 146935 74518 59688 84079 1973457 5704137 184086 POWER EXPENSE 21717805 DISTRIBUTION 3692643 MAINTENANCE 3048073 TAXES 2675392 4044286 46187877 12726854 6049863 207325 168079 3908466 8656050 23563 22272 1316563 1479120 144512 108445 174537609 61467414 105842723 113070195 40088003 41358536 1673988 1566393 165931997 172478953 5947149 6765288 566579 575636 48203264 44368330 54716992 51709254 X 0 0 3931119 4022694 107283886 116747005 111215005 120769699 165931997 172478953 X 9463119 91575 X 0 1 X 1 0 3683188 3683188 166731 5643104 3942017 1867818 14858 14858 0 156629115 57510539 99118576 8400613 8400613 113070195 24926716 C CAPITAL TERM CERTIFICATES 1620171 C PATRONAGE CAPITAL CERTIFICATES - CFC 1244982 C FEDERATED INSURANCE PREFERRED STOCK 209619 C Investment in PLC Energy 13357048 C 41358536 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, 2015 or 2014. X X X X X 0 0 0 jafar Taghavi ceo 267453 0 0 0 46025 0 80083 0 70831 0 464392 0 0 0 robert draggoo cfo 141621 0 0 0 27911 0 53339 0 36876 0 259747 0 0 0 Scott Anderson Information Services Manager 115439 0 0 0 6412 0 28845 0 30491 0 181187 0 0 0 Michael McNellis Operations Superintendent 130787 0 0 0 9115 0 51931 0 33637 0 225470 0 0 0 Cory Robson Wireman Foreman 139002 0 0 0 2930 0 0 0 23718 0 165650 0 0 0 Michael Simpson Engineering Manager 122470 0 0 0 11923 0 44927 0 27421 0 206741 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 A by-law change requires vote of the membership. 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 11 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 CEO - An independent consultant was hired to conduct a market salary study for the CEO position - The HR Director was assigned as project manager to work with the consultant and report directly to the President of the Board and the Chairman of the Board goals/long-term planning committee. The CEO had no contact or interaction in any way with the consultant or HR Director or Board regarding this project. - The consultant reported his findings to the entire Board of Directors with the HR Director present. A question and answer session followed where the consultant and HR Director answered specific questions from the Board about the comparability of data presented. - The HR Director and consultant were excused and the entire Board deliberated before reaching their decision as to wage placement for the CEO. - The following morning the Chairman of the Board goals/long-term planning committee informed the HR Director of the compensation change and effective date for the CEO. - In a separate meeting, the Board President and Chairman of the goals/long-term committee informed the CEO. CFO - 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 comparables and substantiation behind it. - The HR Director presented this information to the CEO and discussed it. - An internal equity compensation committee was formed consisting of a manager from each division of the company. Training was provided by the consultant. This committee provided independent recommendations as to position placement in a salary schedule. - The HR Director and CEO discussed the committee and the consultant recommendations and the financial ability of the company to support the data. - Following deliberation, the pay range for the CFO position was determined - Following the market study, a minor pay adjustment was made for the CFO incumbent. Form 990, Part VI, Section C, line 19 THESE DOCUMENTS ARE AVAILABLE UPON WRITTEN REQUEST AT THE COMPANY'S MAIN OFFICE. Form 990, Part XI, line 9: net Increase IN MEMBERSHIPS 91,575. 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 po box 78 gig harbor WA 98335 911943365 wholesale power sales WA Peninsula Light Company C -2703143 1654298 1.00000 1 harvest wind project (tenants in common) po box 3007 longview WA 98632 264679797 wind farm WA N/A C 330200 25674400 0.20000 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 PLC Energy Inc B 2418192 Actual Cost PLC Energy Inc O 113415 Actual Cost Harvest Wind Project F 1545000 actual Cost