2015-06-29T09:24:18-07:00 2014-12-31 990 2014-01-01 381109570 Tri-County Electric Cooperative TRI- 5176477554 7973 East Grand River Ave Portland MI 48875 Mark Kappler President/CEO 5176471281 2015-06-22 2014 2016-03-07 17:11:31Z Tri-County Electric Cooperative 7973 East Grand River Ave Portland MI 48875 47808706 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 78 0 0 0 0 0 47145160 47296831 102402 106003 118942 331332 47366504 47734166 0 0 3965113 3462977 5018967 5190904 0 0 0 38582424 39280285 47566504 47934166 -200000 -200000 112468777 114579031 55799306 55820643 56669471 58758388 To provide our members and customers with energy, comfort and communication solutions that will enhance their quality of life. 0 0 Revenue from sale of electric power to 25,623 meters. Added/replaced 6.1 miles of line for a total of 3,360 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 56 0 1 78 1 0 0 0 0 0 45610172 344023 0 X 7 0 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Patrick Simmer 5176477554 7973 East Grand River Ave Portland MI 48875 X Ed Oplinger Chairman 8.57 0.3 X X 19748 0 0 Wayne Swiler Vice Chairman 9.55 0.3 X X 17385 0 0 Cara Evans Secretary/Treasurer 8.24 0.3 X X 16755 0 0 Philip Conklin Director 9.32 0.3 X 17070 0 0 Dean Floria Director 11.76 0.3 X 17700 0 0 Kimber Hansen Director 9.79 0.3 X 9955 0 0 Luke Pohl Director 11.7 0.3 X 3120 0 0 Carl Morton Director/Retired Director 4.41 0.3 X X X 88256 0 0 Lavene Hansen Director/Retired Director 9.26 0.3 X X X 16128 0 0 Mark Kappler President/CEO 53.57 2.08 X 199133 0 75408 Thomas Manting CIO 42.8 0.59 X 106138 0 48762 Patrick Simmer CFO 41.9 2.68 X 90798 0 40926 Matthew Miller Operations Manager 46.42 0 X 126677 0 84086 Richard Warchuck Lineman 49.63 0 X 115931 0 38646 Jeremy Zbytowski Lineman 49.7 X 115068 0 24334 Ryan Smith Lineman 48.68 0 X 110653 0 26994 Robert Brennan Lineman 48.28 0 X 114514 0 35787 1185029 0 374943 10 1 1 0 Asplundh Tree Expert Company 708 Blair Mill Road Willow Grove PA 19090 Tree Cutting/Trimming 789003 Michigan Electric Cooperative Association (MECA) 2859 West Jolly Road Okemos MI 48864 Statewide Association 630309 Woodwalkers 8210 Harrison Ave Roscommon MI 48653 Line Construction 530224 National Information Solutions PO Box 1147 Mandan ND 58554 Software Support 410154 JBS Contracting Inc PO Box 370 Mount Pleasant MI 48804 Building Construction 358147 8 0 Electric Revenues 221000 45095220 45095220 0 0 Capital Credits 900099 2201611 2201611 0 0 0 0 0 0 47296831 93192 0 0 93192 0 0 0 0 0 0 0 0 325181 0 0 0 325181 0 325181 0 0 325181 0 13495 0 684 0 12811 12811 0 0 12811 80007 73856 6151 6151 0 0 0 47734166 47302982 0 431184 X 0 0 0 3462977 673361 0 3036350 255586 646578 579029 0 0 0 0 0 0 0 0 0 0 0 1032873 0 0 0 1858264 0 2858261 0 Cost of Power 29675754 Distribution 1992012 Customer Accounts 1000371 Administrative and General 857793 4957 47934166 0 0 0 0 0 1541375 1262706 0 0 6034468 6341840 0 0 0 0 0 0 659591 720076 2548575 2632613 96154769 29278356 65805319 66876413 0 0 0 0 35636306 36578168 70697 15469 172446 151746 112468777 114579031 7221531 7544826 0 0 2251789 2348918 0 0 5579 5396 43570407 44721503 2750000 1200000 0 0 0 0 55799306 55820643 X 46432631 48414505 10236840 10343883 0 0 56669471 58758388 112468777 114579031 X -200000 0 0 0 0 2288917 X 0 1 X 1 0 0 1 X 3300 460933 464233 0 3424100 727060 2697040 0 0 0 0 0 92076931 28551296 63525635 0 189505 0 189505 66876413 CFC-Patronage Capital 826562 C CFC-Subordinate Certificates 1894625 C Memberships and Other Investments 397634 C Wolverine Power Supply Co-op Capital Credits 26420592 C Tri-Co Services, Inc. 7038755 C 36578168 0 X 47944782 0 0 0 210616 210616 47734166 0 0 0 47734166 44466236 0 0 0 -4957 -4957 44471193 0 3462973 3462973 47934166 Schedule D, Part IV, Line 2b The Cooperative collects and remits voluntary contributions to the Tri-County Electric People Fund, Inc (the fund) a 501(c)(3) nonprofit organization organized for charitable giving to individuals and organizations primarily in the Cooperative's service area. Amounts owed to the fund at December 31, 2014 and 2013 amounted to $5,396 and $5,579, respectively. Schedule D, Part X, Line 2 The Cooperative is exempt from federal income 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 of FASB Accounting Standards Codification Topic ASC 740-10 effective January a, 2009. Implementation resulted in no cumulative effect adjustment to retained earnings as of the date of adoption. The Cooperative has no unrecognized tax benefits as of December 31, 2014 and 2013. 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 tax examinations by tax authorities for years before 2011. The Cooperative undergoes an annual analysis of its various tax positions, assessing the liklihood of those positions being upheld upon examination with relavent tax authorities, as defined by ASC 740-10. Schedule D, Part XI, Line 2d Equity Earnings of Subsidiary $215,573, Non-Operating Expense -$4,957 Schedule D, Part XII, Line 2d Non-Operating Expense -$4,957 Schedule D, Part XII, Line 4b Patronage Capital Credits Allocated During Current Year $3,462,973 X X X 0 0 0 Mark Kappler President/CEO 181922 0 10000 0 7212 0 56009 0 18673 0 273816 0 0 Matthew Miller Operations Manager 114622 0 9000 0 3055 0 69555 0 13336 0 209568 0 Thomas Manting CIO 103882 0 1500 0 757 0 29623 0 19682 0 155444 0 0 Richard Warchuck Lineman 115692 0 0 0 239 0 20508 0 18682 0 155121 0 0 Robert Brennan Lineman 113986 0 0 0 528 0 18854 0 17764 0 151132 0 0 Schedule J, Part II Included in column "c", deferred compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Mark Kappler is $50,466, Matthew Miller is $66,095, Thomas Manting is $26,430, Richard Warchuck is $5,664 and Robert Brennan is $16,500. 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 of the defined benefit plan is $35,402, $22,068, $20,352, $12,621 and $13,365 respectively. Christia Manting Spouse of CIO 56027 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 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 the 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 CFO reviewed the Form 990 prior to it being distributed and reviewed at the June 2015 board meeting. 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 directors are all required to review and sign an annual statement pertaining to conflicts of interest. Employees, including the CFO, CIO and CEO, 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 the responsibilities 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 the goals and objectives. Also, provided as a guide, are the 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. Educational background and work experience is also taken into consideration. Annual evaluations are brought to the board in September of each year. This process was last completed annually in September. 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 "d", reportable compensation from the organization, for Carl Morton is $70,000 in prior year deferred income, $15,318 in director income and $2,938 in former director income. 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 $50,466, Thomas Manting is $26,430, Patrick Simmer is $20,003, Matthew Miller is $66,095, Richard Warchuck is $5,664, Jeremy Zbytowski is $4,169, Ryan Smith is $6,541 and Robert Brennan is $16,500. 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 of the defined benefit plan is $35,402, $20,352, $17,100, $22,068, $12,621, $12,621, $12,621 and $13,365 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 patronage capital retired. This is consistent with the bylaws of the Cooperative. Form 990, Part XI, Line 9 Donated Capital $91,467, Capital Credits Retired $-1,481,102, Equity Earnings by Subsidiary $215,576, Patronage Capital Credits allocated during Current Year $3,462,976, Total to Form 990, Part XI, Line 9 $2,288,917 Tri-County Electric People Fund Incorporated 7973 East Grand River Avenue 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 Avenue Portland MI 48875 382803942 Sales, Service, Internet MI Tri-County Electric Cooperative C 215573 8382756 1 1 1 0 0 0 1 1 0 0 0 0 0 0 0 1 1 1 1 1 0 Tri-Co Services Incorporated a-iv 22657 Actual Cost Tri-Co Services Incorporated e 700000 Actual Cost Tri-Co Services Incorporated f 200000 Actual Cost Tri-Co Services Incorporated n 71190 Actual Cost Tri-Co Services Incorporated o 841627 Actual Cost Tri-Co Services Incorporated p 0 Actual Cost Tri-Co Services Incorporated q 191711 Actual Cost Tri-Co Services Incorporated r 7026212 Actual Cost Tri-County Electric People Fund Incorporated r 67103 Actual Cost