2016-08-29T07:17:38-05:00 2015-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2015-01-01 460221377 GRAND ELECTRIC COOPERATIVE INC GRAN 6052445211 PO BOX 39 BISON SD 57620 COLLE NASH GENERAL MANAGER 6052445211 2016-08-24 1 LAURIE HANSON P00851848 6053391999 2016-08-24 2015 2016-12-15 16:53:06Z COLLE NASH PO BOX 39 BISON SD 57620 16706138 0 X WWW.GRANDELECTRIC.COOP X 1950 SD PROVIDING ELECTRICITY TO PEOPLE IN RURAL AREAS. 9 9 54 0 0 0 0 0 17707385 15712887 329564 410886 36631 69220 18073580 16192993 10475 9047 844021 315000 4005137 4238511 0 0 0 12857271 10658358 17716904 15220916 356676 972077 92794732 73941570 75845890 55984574 16948842 17956996 OUR MISSION IS TO MAKE ELECTRIC ENERGY AVAILABLE TO ALL OUR MEMBERS AT THE LOWEST COST CONSISTENT WITH SOUND ECONOMY AND GOOD MANAGEMENT. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 1,865 MEMBERS. 0 0 0 0 0 0 0 1 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 0 0 0 0 0 0 0 0 0 1 75 0 1 54 1 0 0 0 0 0 15845931 414516 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X COLGAN HUBER 6052445211 PO BOX 39 BISON SD 57620 JOHN J LONG PRESIDENT 5.00 X X 8432 0 0 ROSS KOPREN VICE PRESIDENT 5.00 X X 9482 0 0 SHARON LONGWOOD SECRETARY 5.00 X X 8432 0 0 MAXINE RASMUSSEN TREASURER 5.00 X X 9482 0 0 RAYFORD ANDERSON RETIRED 615 DIRECTOR 5.00 X 3157 0 0 LORI BESLER DIRECTOR 5.00 X 7032 0 0 REID PALMER DIRECTOR 5.00 X 5632 0 0 GENE STENSLAND DIRECTOR 5.00 X 7358 0 0 ERIC ARNESON DIRECTOR 5.00 X 8782 0 0 JAMES ERK DIRECTOR 5.00 X 4566 0 0 REED METZGER GENERAL MANAGER 20.00 X 118367 0 16178 MIKE LEMBURG ELECTRIC OPERATIONS MANAGER 40.00 X 100012 0 58736 290734 0 74914 2 0 1 0 MASTEC 800 S DOUGLAS ROAD 12TH FLOOR CORAL GABLES FL 33134 CONTRACTORS 1616949 EPC SERVICE COMPANY 3521 GABEL ROAD BILLINGS MT 59102 CONTRACTORS 673902 ELECTRICAL CONSULTANTS INC 3521 GABEL ROAD BILLINGS MT 59102 ENGINEERS 310643 SUBSTATIONS INC 2537 UNIVERSITY DR S STE 200 FARGO ND 58103 CONTRACTORS 208662 4 SALE OF ELECTRICITY 221000 15045216 15045216 COOP CAPITAL CREDITS 221000 441967 441967 OTHER OPERATING 221000 225704 225704 15712887 386467 386467 24419 0 24419 24419 24419 582365 513145 69220 69220 16192993 15782107 0 410886 9047 315000 218707 3181252 589277 249275 1319730 1694404 COST OF POWER 8643586 ADMIN & GENERAL 1234924 DISTRIBUTION-MAINTENANC 746766 DISTRIBUTION-OPERATIONS 382032 -3363084 15220916 33624162 19981270 2346000 2403938 2121735 1621793 55448 45366 1215248 1123636 1283605 1130676 61091127 21649587 44044395 39441540 23748 23787 7430391 7816718 650000 352846 92794732 73941570 1772531 2711799 3191 4952 29034083 27220115 8000000 8000000 37036085 18047708 75845890 55984574 X 0 0 0 0 16948842 17956996 16948842 17956996 92794732 73941570 X 972077 36077 X 0 1 X 1 1 1 0 1 X 101712 101712 2009501 680879 1328622 52699783 20968708 31731075 6280131 6280131 39441540 BASIN ELECTRIC POWER COOPERATIVE 6714818 C OTHER PATRONAGE CAPITAL CREDITS 575114 C MEMBERSHIPS 7550 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 519236 C 7816718 DEFERRED CREDITS 7866295 CUSTOMER DEPOSITS 17315 ADVANCE FOR CONSTRUCTION 10164098 18047708 X 16191288 0 16191288 1705 1705 16192993 14904211 0 14904211 316705 316705 15220916 PART IV, LINE 2B: THE ROUND UP PROGRAM IS A VOLUNTARY PROGRAM THAT ALLOWS CUSTOMERS TO "ROUND UP" THEIR ELECTRIC BILL TO THE NEAREST DOLLAR. THE ROUNDED UP AMOUNT IS TRANSFERED INTO AN ACCOUNT THAT IS ADMINISTERED BY GRAND ELECTRIC, AT NO COST. COMMITTEE MEMBERS MEET WITH GRAND ELECTRIC REPRESENTATIVES TO DECIDE WHO THE FUNDS ARE DISTRIBUTED TO. THE FUNDS WILL BE AVAILABLE TO HELP ANY CHARITABLE PROJECTS FOR ORGANIZATIONS, GROUPS, FAMILIES, OR INDIVIDUALS WITHIN THE SERVICE TERRITORY OF GRAND ELECTRIC COOPERATIVE, INC. NO FUNDS SHALL IN ANY WAY BE USED TO SUPPORT ANY CANDIDATE FOR POLITICAL OFFICE OR FOR ANY POLITICAL PURPOSE. PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT INCOME FROM INCOME TAX (FORM 990) WITH THE IRS. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASS EXPENSE NETTED TO REVENUE FOR AUDIT 1,705. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATIONS OF 2015 MARGINS TO MEMBERS IN 2016 315,000. RECLASS EXPENSE NETTED TO REVENUE FOR AUDIT 1,705. X 1 1 X 1 0 0 MIKE LEMBURG ELECTRIC OPERATIONS MANAGER 96557 0 1861 0 1594 0 45872 0 14615 0 160499 0 0 0 PART I, LINE 1A MANAGER IS PROVIDED WITH HOUSING (MANAGER PAYS UTILITIES). PART I, LINE 4A REED METZGER DECEMBER 2015 $67,500 AND JANUARY OF 2016 $67,500. SCHEDULE J, PART II, COLUMN C AS REQUIRED PER THE INSTRUCTIONS OF FORM 990 AND SCHEDULE J, THE AMOUNT REPORTED IN SCHEDULE J COLUMN C IS THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN RATHER THAN THE EXPENSE ON THE BOOKS OF THE COOPERATIVE. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR MIKE LEMBURG IS $42,955, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $17,581. FORM 990, PART VI, SECTION A, LINE 4 PRIOR TO THE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS, AN INDIVIDUAL SEEKING TO BECOME A DIRECTOR OR A CURRENT DIRECTOR WOULD BE DISQUALIFIED IF THEY WERE ENGAGED IN SELLING PLUMBING APPLIANCES, FIXTURES OR SUPPLIES. FOLLOWING THE AMENDMENT, AN INDIVIDUAL IS NO LONGER DISQUALIFIED TO BE A DIRECTOR SOLELY DUE TO HIS/HER BEING ENGAGED IN SELLING PLUMBING APPLIANCES, FIXTURES OR SUPPLIES. PRIOR TO THE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS, DIRECTORS COULD BE PAID A FIXED SUM AND ACTUAL EXPENSES FOR ATTENDANCE AT BOARD MEETINGS. FOLLOWING THE AMENDMENT, DIRECTORS MAY BE PAID A FIXED SUM AND ACTUAL EXPENSES FOR ATTENDANCE AT AUTHORIZED MEETINGS, IN ADDITION TO BOARD MEETINGS. FINALLY, PRIOR TO THE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS, PROPOSALS FOR BYLAW AMENDMENTS COULD BE PLACED BEFORE THE MEMBERS WITHOUT BEING APPROVED BY THE BOARD OF DIRECTORS. FOLLOWING THE AMENDMENT, ANY PROPOSED BYLAW AMENDMENTS MUST FIRST BE PROPOSED BY THE BOARD OF DIRECTORS BEFORE BEING PLACED BEFORE THE MEMBERS. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7B ANY CHANGES TO THE BYLAWS REQUIRE A MAJORITY APPROVAL OF THE MEMBERS AT THE ANNUAL MEETING OR AT A SPECIAL MEETING CALLED BY RESOLUTION OF THE BOARD OF DIRECTORS. EITHER MEETING REQUIRES A QUORUM AS DEFINED BY ARTICLE III, SECTION 4 IN THE BYLAWS. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE GENERAL MANAGER AND FINANCE OFFICER REVIEW THE 990 IN DETAIL. AFTER THEIR REVIEW, THE 990 IS PROVIDED TO EACH BOARD MEMBER. THE GENERAL MANAGER AND/OR FINANCE OFFICER PRESENT THE 990 TO THE BOARD OF DIRECTORS AT THE MEETING HELD PRIOR TO ITS FILING IF SO REQUESTED BY ANY BOARD MEMBER. WHETHER PRESENTED IN A BOARD MEETING OR NOT, THE 990 IS NOT FILED UNTIL EACH BOARD MEMBER HAS BEEN GIVEN A COPY OF IT AND GIVEN AMPLE TIME TO REVIEW IT. FORM 990, PART VI, SECTION B, LINE 12C ARTICLE IV SECTION 3B, OF THE BYLAWS, IS FOLLOWED DURING THE NOMINATING OF OUR DIRECTORS. THE NOMINATING COMMITTEE IS AWARE OF THE CONFLICT OF INTEREST POLICY WHEN ELECTING NEW DIRECTORS. THE CONFLICT OF INTEREST POLICY APPLIES TO THE BOARD OF DIRECTORS. THE BOARD DETERMINES WHETHER A CONFLICT OF INTEREST EXISTS. IF A CONFLICT EXISTS, THE PERSON INVOLVED WOULD BE REQUIRED TO ABSTAIN FROM DISCUSSION AND VOTING ON THE MATTER. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS REVIEW COMPENSATION SURVEYS FOR OTHER MANAGERS IN OUR REGION AND NEIGHBORING STATES ALONG WITH REVIEWING YEARLY PERFORMANCE. THE PROCESS WAS LAST UNDERTAKEN IN 2015. FORM 990, PART VI, SECTION C, LINE 19 BYLAWS ARE AVAILABLE UPON REQUEST. FINANCIAL STATEMENTS ARE INCLUDED IN THE ANNUAL REPORT AND MADE AVAILABLE TO MEMBERS AT THE ANNUAL MEETING. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -278,923. ALLOCATIONS OF 2015 MARGINS TO MEMBERS IN 2016 315,000. FORM 990 PART VII REED METZGER'S COMPENSATION AND BENEFITS, AS REPORTED IN PART VII OF THE 990, IS HALF OF HIS TOTAL COMPENSATION. GRAND ELECTRIC AND WEST RIVER COOPERATIVE TELEPHONE COMPANY, AN UNRELATED ENTITY, HAVE A MANAGEMENT AGREEMENT FOR REED'S SERVICES. THE AMOUNT REIMBURSED IS EQUAL TO 50% OF HIS SALARY AND BENEFITS. REED'S TIME IS SPLIT 50/50 BETWEEN THE TWO ENTITIES. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION FOR GENERAL MANAGER REED METZGER IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: THE COOPERATIVE HAS INTERPRETED THE INSTRUCTIONS TO PART IX, LINE 4, TO MEAN PATRONAGE CAPITAL ALLOCATED FOR THE YEAR, RATHER THAN PATRONAGE CAPITAL RETIRED. THIS IS CONSISTENT WITH THE BY-LAWS OF THE COOPERATIVE.