2014-05-01T15:39:42-07:00 2013-12-31 990 2013-01-01 590329555 LEE COUNTY ELECTRIC COOPERATIVE INC (LCEC) LEEC 2399952121 PO Box 3455 North Fort Myers FL 33918 Denise Vidal Director of Fin & Acc/CFO 2399952121 2014-05-01 2013 2015-11-30 17:44:51Z William D Hamilton PO Box 3455 North Fort Myers FL 33918 406057212 0 X www.lcec.net X 1940 FL Lee County Electric Cooperative, Inc. (LCEC) provides electric transmission and distribution services to residential and business customers within the Cooperative's service territory. 10 9 456 0 0 0 0 0 399891266 401179988 254302 265261 4386757 4495362 404532325 405940611 57500 62500 12883501 16856603 1596014 1637175 0 0 0 387471699 385180006 402008714 403736284 2523611 2204327 661761280 685237668 343685117 357395541 318076163 327842127 LCEC provides efficient, reliable, cost-competitive electric and emerging energy solutions and excellent service to our customers. 0 0 403736284 62500 Utilizing approximately 8,000 miles of distribution lines, LCEC provided 3,458,260,838 kilowatt hours of electric energy to its customers located in its service territory. The service territory included Cape Coral, North Fort Myers, Marco Island, Sanibel and Captiva Islands, Pine Island, Everglades City, Immokalee, Ave Maria and parts of Lehigh Acres (all in the state of Florida). 0 0 0 403736284 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 0 0 0 1 468 0 1 456 1 0 0 0 0 0 396664899 5819970 0 X 10 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Denise M Vidal 2396562399 4980 Bayline Drive North Fort Myers FL 33917 Frank Garrett Trustee 6.4 X 28476 0 0 David C Scott Trustee 6.00 X 30107 0 0 Curtis Bostick Trustee/VP 5 X 28596 0 0 Carlos Cavenago Trustee/Treasurer 4 X 28596 0 0 William G Mathis Trustee 5 X 26976 0 0 Darlene Andert Trustee 4 X 24627 0 0 Larry Turbeville Trustee/President 8 X 23220 0 0 Gary Jackson Trustee/Secretary 5.00 X 16675 0 0 Geoffrey Roepstorff Trustee 3 X 13675 0 0 Richard Prichett Trustee 5 X 16573 0 0 William D Hamilton EVP/CEO 55 X 505958 0 22342 Denise M Vidal Dir. Finance & Accounting/CFO/Asst. Treasurer 55 X 209967 0 16056 Richard K Fuson Dir. Electric Operations 50.00 X 222830 0 16263 Frederic Kunzi Dir. Info Tech/CIO 55.00 X 216507 0 16052 Kathryn E Irwin Dir. Human Resources 53.00 X 159846 0 13833 Rodney C Hawkins Mgr Design/Engineer 55 X 141076 0 16429 Brian S Peal Head of Architecture & Development Practice 55 X 140660 0 7695 Robert D Grover Mgr System Operations 55 X 139965 0 6013 Frank R Cain Jr Dir. Regulatory and Gov't Relations 55 X 138012 0 13022 Edward R Nagy Head of IT Infrastructure and Operations & Information Security 55 X 133564 0 16024 2245906 0 143729 41 0 1 0 Mastec North America Inc 101 South Tryon Charlotte NC 28255 Maintenance & Construction 4334131 Wesco Distribution Inc 225 W Station Square Dr Ste 700 Pittsburgh PA 19219 Electric Distribution 4032877 Oracle America PO Box 203448 Dallas TX 753203448 Software/Software Maint. 3302153 Asplundh Tree Expert Co 708 Blair Mill Road Willow Grove PA 19090 Maintenance & Construction 2882636 Pike Electric Inc PO Box 1000 Dept 517 Memphis TN 381480517 Maintenance & Construction 2641693 66 0 0 0 0 0 0 0 0 Electric Revenues 221000 396414129 396414129 0 0 Patronage Capital 221000 4765859 4765859 0 0 0 0 0 0 401179988 208955 0 0 208955 0 0 0 0 0 0 0 0 35991 3507985 0 0 35991 3507985 3543976 35991 0 3507985 0 56306 0 0 0 56306 56306 0 0 56306 0 258823 116601 142222 142222 0 0 Amort of Gain on Refinancing 221000 809164 809164 0 0 0 0 0 0 809164 405940611 402167365 0 3773246 X 62500 16856603 1637175 12962675 35872166 Cost of Power 278260504 Admin & General Expense 18864929 Distribution Exp - Maintenance 12845174 Taxes - Other 10157847 16216711 403736284 0 0 0 2542541 2381253 33196559 38856197 6606577 6090914 1518219 3040773 964671959 400909802 549806562 563762157 68090822 71106374 661761280 685237668 37409499 40015778 3915876 3106712 200262763 189145383 52318102 64741883 49778877 60385785 343685117 357395541 X 845939 858994 21911 21911 317208313 326961222 318076163 327842127 661761280 685237668 X 2204327 0 0 0 0 7561637 X 0 1 X 1 0 40000 15729764 15769764 163477 0 161535 1942 0 0 0 0 0 923843699 379700614 544143085 0 24895019 21047653 3847366 563762157 Patronage Capital - Seminole Electric Coop 51820945 C Patronage Capital - CoBank 7501748 C Capital Term Certificates - CFC 6598184 C Patronage Capital - National Rural CFC 3475226 C Patronage Capital - Federated Rural 1678080 C Patronage Capital - National Rural TC 14870 C Membership - FL Rural Electric 9517 C Patronage Capital - Glades Electric 5604 C Membership - National Rural 1000 C All Other 1200 C 71106374 0 Accrued Pension Liability 17488865 Customer Deposits 15726777 Misc Liability - Over-Recovery Accrual 13211011 Patronage Capital Payable L-T 7016771 Unamortized bad debt special equity distribution 4086896 Other Post-Retirement Benefits 2855465 60385785 X 405870686 0 0 0 0 0 405870686 0 69925 69925 405940611 386809756 0 0 0 0 0 386809756 0 16926528 16926528 403736284 Schedule D, Part X, Line 1 FIN 48 Footnote: Income Tax Status - LCEC is exempt from federal income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code. It is also exempt from state income taxes. Accordingly, the accompanying financial statements include no provision for such taxes. With few exceptions, LCEC is no longer subject to income tax examinations by the U.S. federal, state, or local tax authorities for years before 2009. Management has evaluated LCEC tax positions and concluded that LCEC has taken no uncertain tax positions that require adjustment to the financial statements. Schedule D, Part X, Line 2 See Schedule O Schedule D, Part XI, Line 4b Reconciliation of Revenue per Audited Financial Statements with Revenue per Return Other expense items included in other income on the Financial Statements $69,925 Schedule D, Part XII, Line 4b Reconciliation of Expenses per Audited Financial Statements with Expenses per Return: Patronage Capital Paid to Members $16,856,603. Other expense items included in other income on the Financial Statements $69,925. 1 United Way of Lee County 7275 Concourse Drive Fort Myers FL 33908 591005169 501c3 45000 United Way campaign funds stay in the local community to help support the local human services network. United Way partner agencies and initiatives like Alvin A. Dubin Alzheimer's Resource Center, Children's Advocacy Center, Big Brothers Big Sisters, LARC and United Way 211 serve a diverse range of needs in our community such as nurturing children and youth, strengthening families, meeting critical needs such as helping the elderly and disabled live independently, and empowering communities by bringing health and human services to neighborhoods. A portion of the contributions that are made to the United Way helps to fund the "Power To Share" program. The "Power To Share" program provides short-term emergency assistance funding for qualifying LCEC customers who are unable to pay their electric bills due to financial hardship. United Way of Collier County 848 First Ave North Suite 240 Naples FL 341026063 591026096 501c3 10000 United Way campaign funds stay in the local community to help support the local human services network. United Way partner agencies and initiatives like Senior Friendship Center, Children's Advocacy Center, Boy Scouts and Girl Scouts, Neighborhood Health Clinic, and Sunrise Community serve a diverse range of needs in our community such as nurturing children and youth, strengthening families, meeting critical needs such as helping the elderly obtain health services and disabled adults live productively, and empowering communities by bringing health and human services to neighborhoods. The Horizon Foundation Inc 12800 University Drive Suite 300 Fort Myers FL 33907 650872214 501c3 7500 To enable the Foundation to actively support the marketing efforts and success of The Horizon Council and Lee County Economic Development office. 3 0 Schedule I, Part I, Line 2 Procedures for Monitoring the Use of Grant Funds: LCEC has representation on the United Way (UW) of Lee, Hendry, Glades and Okeechobee Board of Directors and continually monitors the administration and use of funding to area agencies. In addition, multiple LCEC employees hold positions on the annual UW allocation committee. In this role, the committee reviews financial reports, grant applications, results from the previous year's funding allocation and makes site visits for selected agencies. Committee members make recommendations for funding levels to be received from UW which includes the annual contribution from LCEC. LCEC has representation on The Horizon Council, a public-private advisory board to the Lee County (FL) Board of County Commissioners on Economic Development issues. The officers of The Horizon Council simultaneously serve as officers of The Horizon Foundation which is a charitable 501(c)3 organization established as a fund-raising vehicle to enable individuals and businesses to actively support the marketing efforts and success of The Horizon Council and Lee County Economic Development office. LCEC is an at-large member of The Horizon Council and contributor to The Horizon Foundation. Expenditures are approved by The Horizon Foundation/Council Executive Committee and, as necessary, The Horizon Council. X X X 0 0 0 William D Hamilton EVP/CEO 430958 0 75000 0 0 0 7941 0 14401 0 528300 0 0 0 Denise M Vidal Dir. Finance & Accounting/CFO/Asst. Treasurer 182413 0 27554 0 0 0 5498 0 10559 0 226024 0 0 0 Richard K Fuson Dir. Electric Operations 194025 0 28805 0 0 0 5808 0 10455 0 239093 0 0 0 Frederic Kunzi Dir. Info Tech/CIO 188513 0 27994 0 0 0 5645 0 10407 0 232559 0 0 0 Kathryn E Irwin Dir. Human Resources 139313 0 20533 0 0 0 4222 0 9611 0 173679 0 0 0 Rodney C Hawkins Mgr Design/Engineer 126278 0 14798 0 0 0 3901 0 12527 0 157504 0 0 0 Seminole Electric Cooperative Inc See Part V 189435531 See Part V 0 Schedule L, Part IV (a) Name of Person: Seminole Electric Cooperative, Inc (SEC) (b) Relationship Between Interested Person and Organization: SEC has one trustee of LCEC and the EVP/CEO of LCEC serving on its board. (d) Description of Transaction: SEC is one of the wholesale power providers from which LCEC purchases its power. LCEC is also a cooperative member of SEC. The board of SEC is comprised of the manager and one board member from each of the member electric distribution cooperatives. Currently, William Hamilton, CEO and Frank Garrett, Trustee, serve as representatives (Carlos Cavenago, Trustee, serves as an alternate) from LCEC to the SEC board of directors. Although it is routine for board members of electric distribution cooperatives to serve as representatives on the boards of electric transmission cooperatives, for purposes of the Form 990 and its instructions, Frank Garrett is not considered independent. Form 990, Part VI, Section A, Line 6 Classes of Members or Stockholders: Lee County Electric Cooperative, Inc. operates on the cooperative basis in order to provide affordable electric energy to its members. Form 990, Part VI, Section A, Line 7a Election of Members and Their Rights: During the 2013 annual trustee election, the membership elected Board of Trustee Members for four district seats that were up for election during that year. In accordance with Florida Statutes: Title XXXVI, Chapter 607.0707, all customers who were members on the record date of February 15, 2013 received a ballot with the current district seats up for election. 169,556 ballots were mailed to members, 16,665 ballots were returned. Form 990, Part VI, Section A, Line 7b Decisions Subject to Approval of Members; Decisions to dispose of a substantial portion of the Cooperative's assets, the dissolution of the Cooperative, and amendments to the By-Laws must all be approved by the membership. Form 990, Part VI, Section B, Line 11b Organization's Process to Review Form 990: The Form 990 is prepared by the Manager, Financial Accounting and staff. It is reviewed by the Director of Finance and Accounting/Chief Financial Officer (CFO) and Executive Vice President (EVP/Chief Executive Officer (CEO)), reviewed with the Board of Trustees, and then approved by the Director of Finance & Accounting/CFO. Form 990, Part VI, Section B, Line 12c Enforcement of Conflicts Policy: On an annual basis, all Directors, Managers, and Board of Trustees must complete and sign a conflict of interest statement. The completed and signed statements are reviewed and maintained by the audit services department. Form 990, Part VI, Section B, Line 15 The Board of Trustees approved the compensation for the EVP/CEO. The EVP/CEO compensation was based upon compensation survey/study. Compensation for other offices and key employees were based upon the Company's standard approach whereby compensation midpoints/ranges are established by the human resource department based upon market rates, then individual performance and associated compensation base salary action is determined by the next level of supervision. The incentive pay portion of compensation is determined by the human resource department for compliance with said program. The Board of Trustees approves the incentive compensation program. Form 990, Part VI, Section C, Line 19 Governing Documents Disclosure Explanation: The Corporate By-Laws are available on the corporate website and provided electronically or in printed version to the public upon request. The conflict of interest policy is not made available to the public. The financial statements are available to the public upon request. Form 990, Part IX, Line 4 The IRS instructions for the 2013 version of Form 990 state: "The instructions clarify that patronage dividends paid by section 501(c)(12) organization to their members should be reported on Line 4..." of Part IX, Statement of Functional Expenses. Line 4 is entitled "Benefits paid to or for members." For purposes of this Form 990, the amount reported on Line 4 represents the amount reported in the audited Statement of Revenue, Expenses and Changes in Patronage Capital for the year ended December 31, 2013. Form 990, Part XI, Line 9 Reconciliation of Net Assets Explanation: Increase in Memberships $13,055, Patronage Capital returned to Equity $1,590,512, Pension $5,523,346, Post Retirement Benefits $434,723