2015-10-23T11:37:54-05:00 2014-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2014-01-01 410128105 CONNEXUS ENERGY CONN 7633232600 14601 RAMSEY BOULEVARD RAMSEY MN 55303 MICHAEL BASH VICE PRESIDENT / CFO 7633232600 2015-10-20 1 LAURIE HANSON P00851848 6053391999 2015-10-20 2014 2016-02-25 16:41:14Z MIKE RAJALA 14601 RAMSEY BOULEVARD RAMSEY MN 55303 270238345 0 X WWW.CONNEXUSENERGY.COM X 1937 MN PROVIDING UTILITY SERVICES TO MEMBERS. 7 5 284 0 2124592 0 0 0 257413417 268873976 849249 712468 449270 494791 258711936 270081235 426285 505697 10002595 17660259 25530923 24558523 0 0 0 222752133 227356756 258711936 270081235 0 0 357557329 370231736 200481235 201150734 157076094 169081002 PAGE 2: CONNEXUS ENERGY IS A LOCAL ELECTRIC COOPERATIVE PROVIDING HIGH QUALITY, COST COMPETITIVE, AND RELIABLE SERVICE THAT CONSISTENTLY DEMONSTRATES THE VALUE OF MEMBER OWNERSHIP. 0 0 CONNEXUS ENERGY PROVIDED UTILITY SERVICES TO APPROXIMATELY 129,000 MEMBERS IN SEVEN COUNTIES IN THE NORTH SUBURBAN AREA OF MINNEAPOLIS AND ST. PAUL, MN. 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 1 0 1 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 1 171 0 1 284 1 1 1 0 0 0 0 256343102 5003671 0 X 7 5 1 0 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 1 0 X NANCY BASARA 7633232731 14601 RAMSEY BOULEVARD RAMSEY MN 55303 X PETER WOJCIECHOWSKI CHAIR 22.00 X X 51534 0 0 KEN FIERECK VICE CHAIR TIL APRIL; DIRECTOR 12.00 X X 46581 0 0 MARK ETHEN ASST SEC/TREAS TIL APRIL; VICE CHAIR 15.00 X X 46581 0 0 FRAN BATOR SECRETARY/TREASURER 16.00 X X 46821 0 0 GORDON WESTERLIND DIRECTOR TIL APRIL; ASST SEC/TREAS 15.00 X 23581 0 23000 JIM LEROUX DIRECTOR TIL JUNE 18.00 X 23265 0 0 MICHAEL KERR DIRECTOR 12.00 X 46581 0 0 DONALD HOLL DIRECTOR 16.00 X 46581 0 0 MIKE RAJALA PRESIDENT / CEO 45.00 X 650357 0 137685 MICHAEL BASH VP / CFO 45.00 X 416930 0 98897 MATT YSETH VP, ELECTRIC OPERATIONS 50.00 X 317522 0 68012 JOHN GASAL VP, POWER SUPPLY 45.00 X 315427 0 85691 PETER MILLER VP, HUMAN RESOURCES 50.00 X 307297 0 59771 DON HALLER VP, MEMBER AND COMMUNITY 45.00 X 250838 0 60019 GREG GROENJES MGR., CONSTRUCTION & MAINT 45.00 X 150688 0 33358 NANCY BASARA CONTROLLER 45.00 X 188032 0 47447 LARRY NELSON ELEC OPS - PROJECT MGR 40.00 X 156561 0 43116 NICK LOEHLEIN MANAGER - SYS ENGINEERING, DESIGN, AND OPERATIONS 40.00 X 148623 0 38280 MARK KOPLIN MANAGER - INFORMATION TECH 40.00 X 185452 0 33831 3419252 0 729107 71 0 1 0 ASPLUNDH 708 BLAIR MILL ROAD WILLOW GROVE PA 190901784 TREE TRIMMING SERVICES 1796055 RP SCHROEDER CONSTRUCTION 18329 263RD AVE BIG LAKE MN 55309 CONSTRUCTION SERVICES 1460677 WRIGHT TREE SERVICE PO BOX 1718 DES MOINES IA 50306 TREE TRIMMING SERVICES 867578 CARR'S TREE SERVICE INC PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING SERVICES 769947 CENTRAL APPLICATORS PO BOX 279 FOLEY MN 56329 TRIMMING SERVICES/VEGETATION MANAGEMENT 390664 11 SALE OF ELECTRICITY 221000 253900512 253850553 49959 GEN & TRANS CAP CREDIT 221000 11665040 11665040 UTILITY/RETAIL/FLEET 221000 2075777 571 2075206 OTHER 221000 1232647 1232647 268873976 727379 727379 339984 0 339984 339984 339984 142199 157110 -14911 -14911 -14911 MISC OTHER REVENUE 900099 154807 155380 -573 154807 270081235 266904191 2124592 1052452 X 505697 17660259 2779422 15682028 2025029 2778787 1293257 1068444 78992 1138751 292948 1384513 1639524 668186 282587 50459 7172113 11358595 557249 COST OF POWER 190695325 ELECTRIC OPERATIONS 4655481 PROP. & REAL ESTATE TAX 3357502 FLEET/VEHICLE EXPENSES 1479983 1476104 270081235 4596 6189 4001 31040373 28211523 2700230 3797476 498710 753404 323357379 128258734 195556030 195098645 9397969 9426595 108800959 120836702 941 941 9557521 12096260 357557329 370231736 16780603 17692103 131708556 129784051 14048000 14574000 37944076 39100580 200481235 201150734 X 0 0 0 0 157076094 169081002 157076094 169081002 357557329 370231736 X 0 12004908 X 0 1 X 1 0 2128411 2128411 14298556 5555014 8743542 300015845 122703720 177312125 6914567 6914567 195098645 GREAT RIVER ENERGY 115882547 C OTHER ASSOCIATED ORGANIZATIONS 4954155 C 120836702 CUSTOMER DEPOSITS 1153754 DEFERRED CREDITS 2727767 PAYABLE TO GREAT RIVER ENERGY 29373729 UNFUNDED PENSION LIABILITY 3292815 OTHER LIABILITIES 535024 DEFERRED COMP 2017491 39100580 X 270081235 0 270081235 0 270081235 252420976 0 252420976 17660259 17660259 270081235 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. THE COOPERATIVE IS SUBJECT TO INCOME TAX ON ITS UNRELATED BUSINESS INCOME. THE COOPERATIVE EVALUATES ITS INCOME TAX POSITIONS ON AN ANNUAL BASIS. MANAGEMENT HAS DETERMINED THAT THERE ARE NO UNCERTAIN TAX POSITIONS AT DECEMBER 31, 2014 AND 2013, THAT MEET THE CRITERIA FOR RECOGNITION IN THE FINANCIAL STATEMENTS. THE COOPERATIVE WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF INCURRED. GENERALLY, THE COOPERATIVE IS NO LONGER SUBJECT TO FEDERAL OR STATE TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2011. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2014 MARGINS TO MEMBERS IN 2015 17,660,259. 1 ANOKA COUNTY BROTHERHOOD COUNCIL 2615 9TH AVE S ANOKA MN 55303 511015519 501(C)(3) 6000 GENERAL DONATION ANOKA COUNTY 550 BUNKER LAKE BLVD NW ANDOVER MN 55303 416005752 GOVENMENTAL 5000 BUNKER BEACH SPONSOR ANOKA HENNEPIN EDUCATIONAL 11299 HANSON BLVD NW COON RAPIDS MN 55433 411691433 GOVENMENTAL 6720 MIDDLE SCHOOL ENGAGEMENT HUGO GOOD NEIGHBORS FOOD SHELF PO BOX 373 HUGO MN 55038 264627293 501(C)(3) 25000 CAPITAL CAMPAIGN ISD 728 900 SCHOOL STREET ELK RIVER ME 55330 416003818 GOVENMENTAL 5000 SCHOLARSHIPS ANOKA TECHNICAL COLLEGE FOUNDATION 1355 WEST HWY 10 ANOKA MN 55303 416008267 501(C)(3) 38050 DONATION TO FOUNDATION - GENERAL INITIATIVE FOUNDATION 405 FIRST ST SE LITTLE FALLS MN 56345 363451562 501(C)(3) 10000 DONATION TO FOUNDATION - GENERAL MERCYUNITY HOSPITAL FOUNDATION 550 OSBORNE RD FRIDLEY MN 55432 363261413 501(C)(3) 36000 DONATION TO FOUNDATION - GENERAL GREATER TWIN CITIES UNITED WAY 404 S 8TH STREET MINNEAPOLIS MN 55404 411973442 501(C)(3) 20266 0 MATCH EMPLOYEE CONTRIBUTIONS NATIONAL SPORTS CENTER 1700 105TH AVENUE NE BLAINE MN 55449 411646516 501(C)(3) 5215 85000 OTHER IN-KIND ELECTRICITY GENERAL DONATION ANOKA COUNTY DEPARTMENT OF PARKS AND RECREATION 550 BUNKER LAKE BLVD ANDOVER MN 55304 416005752 GOVENMENTAL 25000 0 WILD LIFE OUTREACH - HERITAGE LAB ALEXANDRA HOUSE PO BOX 49030 BLAINE MN 55449 411309977 501(C)(3) 20000 0 GENERAL DONATION SCR INC FOR CENTENNIAL FOOD SHELF 604 LINCOLN AVE NE ST CLOUD MN 56304 455579732 501(C)(3) 19605 PURCHASE FREEZERS ANOKA RAMSEY COMMUNITY COLLEGE FOUNDATION 11200 MISSISSIPPI BLVD COON RAPIDS MN 55433 411574797 501(C)(3) 13350 0 SCHOLARSHIP AMERICAN RED CROSS 1201 W RIVERY PKWY MINNEAPOLIS MN 55454 030585610 501(C)(3) 10000 0 GENERAL DONATION ANOKA COUNTY CHILD ABUSE PREVENTION COUNCIL 2100 3RD AVE ANOKA MN 55304 416048575 GOVENMENTAL 5000 0 DONATION TO FOUNDATION. - GENERAL GREAT RIVER GREENING 35 W WATER STREET 201 ST PAUL MN 55107 411940024 501(C)(3) 10000 0 GENERAL DONATION SALVATION ARMY HEATSHARE 2445 PRIOR AVE ROSEVILLE MN 55113 410698597 501(C)(3) 30000 0 GENERAL DONATION TREE TRUST 2231 EDGEWOOD AVE S ST LOUIS PARK MN 55426 411291626 501(C)(3) 10000 0 GENERAL DONATION HOPE 4 YOUTH 2665 4TH AVE N 40 ANOKA MN 55303 461626500 501(C)(3) 5550 0 GENERAL DONATION 20 PART I, LINE 2: THE TOTAL AMOUNT OF CONTRIBUTIONS PLANNED FOR A YEAR IS APPROVED BY THE BOARD AS A PART OF OUR ANNUAL PROFIT PLANNING PROCESS. INDIVIDUAL CONTRIBUTIONS ARE APPROVED AND SUBSTANTIATED FOLLOWING OUR NORMAL PAYMENT APPROVAL PROCESS. X 1 1 X X X X 0 1 0 MIKE RAJALA PRESIDENT / CEO 410788 0 221665 0 17904 0 126505 0 12306 0 789168 0 0 0 MICHAEL BASH VP / CFO 293713 0 105392 0 17825 0 79551 0 20171 0 516652 0 0 0 MATT YSETH VP, ELECTRIC OPERATIONS 225321 0 79750 0 12451 0 47985 0 20653 0 386160 0 0 0 JOHN GASAL VP, POWER SUPPLY 224384 0 78502 0 12541 0 68631 0 17675 0 401733 0 0 0 PETER MILLER VP, HUMAN RESOURCES 218078 0 78604 0 10615 0 43100 0 17287 0 367684 0 0 0 DON HALLER VP, MEMBER AND COMMUNITY 183411 0 64081 0 3346 0 42339 0 18199 0 311376 0 0 0 GREG GROENJES MGR., CONSTRUCTION & MAINT 126557 0 23475 0 656 0 15354 0 18366 0 184408 0 0 0 NANCY BASARA CONTROLLER 157909 0 29314 0 809 0 28080 0 19820 0 235932 0 0 0 LARRY NELSON ELEC OPS - PROJECT MGR 131281 0 24760 0 520 0 34821 0 8665 0 200047 0 0 0 NICK LOEHLEIN MANAGER - SYS ENGINEERING, DESIGN, A 122458 0 23048 0 3117 0 18794 0 19845 0 187262 0 0 0 MARK KOPLIN MANAGER - INFORMATION TECH 156887 0 28441 0 124 0 17523 0 16750 0 219725 0 0 0 PART I, LINE 1A OUR POLICY IS TO GROSS UP ALL RECOGNITION PAYMENTS $50 AND LESS. THIS APPLIES TO ALL EMPLOYEES, INCLUDING EXECUTIVES. PART I, LINE 4B THE FOLLOWING OFFICERS PARTICIPATED IN A NON-QUALIFIED DEFERRED COMPENSATION PLAN: MICHAEL BASH JOHN GASAL NO DISBURSEMENTS WERE MADE FROM THE PLAN IN 2014. THE DEFERRED COMPENSATION PLAN BALANCES ARE PAYABLE ON DEMAND, IN FULL, BUT THE BALANCES ARE SUBJECT TO RISK OF FORFEITURE UNTIL FULLY DISTRIBUTED. FEDAC RAJALA-DIRECTOR 757830 FEDAC IS THE 100% OWNER OF CARR'S TREE SERVICE. CARR'S TREE SERVICE PROVIDES TREE TRIMMING SERVICES TO THE COOPERATIVE. MIKE RAJALA IS A DIRECTOR FOR FEDAC AND CARR'S TREE SERVICE AND CEO OF CONNEXUS ENERGY. 0 GREAT RIVER ENERGY HOLL-DIRECTOR 192120738 CONNEXUS ENERGY PURCHASES POWER FROM GREAT RIVER ENERGY AND IS A MEMBER. DON HOLL IS A DIRECTOR FOR GREAT RIVER ENERGY AND CONNEXUS ENERGY. 0 MINN RURAL ELEC TRUST (MRET) BASH-DIRECTOR 213952 MINNESOTA RURAL ELECTRIC TRUST (MRET) IS CONNEXUS ENERGY'S WORK COMP PROVIDER. MICHAEL BASH IS A DIRECTOR FOR MRET AND VP/CFO FOR CONNEXUS ENERGY. 0 GREAT RIVER ENERGY BATOR-DIRECTOR 192120738 CONNEXUS ENERGY PURCHASES POWER FROM GREAT RIVER ENERGY AND IS A MEMBER. FRAN BATOR BECAME A DIRECTOR FOR GREAT RIVER ENERGY IN JULY, 2014, AND IS SECRETARY/TREASURER FOR THE BOARD OF DIRECTORS OF CONNEXUS ENERGY. 0 FORM 990, PART VI, SECTION A, LINE 2 DON HOLL AND JIM LEROUX HAD A BUSINESS RELATIONSHIP AS THEY BOTH REPRESENTED CONNEXUS ENERGY ON THE GREAT RIVER ENERGY BOARD (UNTIL JIM LEROUX PASSED AWAY IN JUNE OF 2014). DON HOLL AND FRAN BATOR HAD A BUSINESS RELATIONSHIP AS THEY BOTH REPRESENTED CONNEXUS ENERGY ON THE GREAT RIVER ENERGY BOARD (AFTER JUNE 2014). GREAT RIVER ENERGY IS OUR POWER SUPPLIER AND CONNEXUS ENERGY, AS ONE OF ITS MEMBERS, OWNS APPROXIMATELY 20% OF GRE. FORM 990, PART VI, SECTION A, LINE 6 CUSTOMERS WHO PURCHASE ELECTRICITY FROM THE ORGANIZATION ARE MEMBERS OF THE COOPERATIVE. THERE IS ONLY ONE MEMBER CLASS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7B THE BOARD OF DIRECTORS MAY SELL THE PROPERTY OF THE COOPERATIVE UPON SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE AND IN THE BEST INTEREST OF THE COOPERATIVE. NO SALE OF MORE THAN TWENTY-FIVE (25%) PERCENT OF THE PROPERTY OF THE COOPERATIVE SHALL BE EFFECTIVE, HOWEVER, UNLESS AUTHORIZED AT A REGULAR OR SPECIAL MEETING BY THE AFFIRMATIVE VOTE OF TWO-THIRDS (2/3) OF THE TOTAL NUMBER OF MEMBERS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 8B NO COMMITTEES ARE AUTHORIZED TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE 990 INFORMATION RETURN IS DELIVERED TO BOARD MEMBERS A WEEK BEFORE THE BOARD MEETING. IT IS REVIEWED WITH THE ENTIRE BOARD OF DIRECTORS AND SENIOR STAFF AT THE BOARD MEETING, PRIOR TO ISSUANCE. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS ARE COVERED BY THE CONFLICT OF INTEREST POLICY. ANNUALLY, BOARD MEMBERS SIGN A CERTIFICATION STATEMENT THAT THEY MEET THE QUALIFICATIONS OF A BOARD MEMBER. THIS CERTIFICATION INCLUDES CONFLICT OF INTEREST LANGUAGE. IF A BOARD MEMBER STATES ON THE CERTIFICATION THAT THERE IS A CONFLICT, THE ENTIRE BOARD WILL REVIEW THE CONFLICT AT THAT TIME. RESTRICTIONS IMPOSED ON A PERSON WITH A CONFLICT WOULD BE DEPENDENT UPON THE SPECIFIC SITUATION, AND MAY INCLUDE ABSTAINING FROM DISCUSSIONS AND VOTING AND/OR A REQUEST FOR RESIGNATION. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION IS BASED ON MARKET DATA FOR SIMILAR POSITIONS AT COMPARABLE COMPANIES. A MARKET STUDY WAS COMPLETED IN 2014 FOR THE CEO AND FOR OTHER COOPERATIVE OFFICERS. THE BOARD REVIEWS AND APPROVES THE COMPENSATION FOR THE CEO ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS FOR THE PREVIOUS 5 YEARS ARE AVAILABLE ON OUR WEBSITE. ALL OTHER DOCUMENTS ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART VI, LINE 9 JIM LEROUX PASSED AWAY DURING 2014. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE EMPLOYEES OF THE COOPERATIVE WHO ARE COVERED BY THE PENSION PLAN. 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. FORM 990, PART XI, LINE 9: CAPITAL CREDITS RETIRED -5,920,790. APPROPRIATED MARGIN 265,439. ALLOCATION OF 2014 MARGINS TO MEMBERS IN 2015 17,660,259. CONNEXUS COMMUNITY SOLAR 1 LLC 14601 RAMSEY BLVD RAMSEY MN 55303 352505435 SOLAR ENERGY INVESTMENT MN N/A CONNEXUS BLOCKER LLC 14601 RAMSEY BLVD RAMSEY MN 55303 465423665 HOLDING COMPANY FOR SOLAR ENERGY INVESTMENTS. MN CONNEXUS ENERGY C -65741 244919 1.00000 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CONNEXUS BLOCKER LLC B 311686