2013-08-07T08:16:35-07:00 2012-12-31 990 2012-01-01 010056837 EASTERN MAINE ELECTRIC COOPERATIVE INC EAST 2074547555 P O BOX 425 CALAIS ME 046190425 Scott Hallowell 2074547555 2013-07-31 2012 2016-02-24 21:20:13Z Scott M Hallowell P O Box 425 Calais ME 046190425 15467037 0 X WWW.emec.com X 1940 ME EMEC is a non-profit consumer-owned electric utility serving parts of Aroostook, Penobscot and Washington Counties on Maine's eastern border with Canada. The primary goal of a rural electric cooperative is to provide quality electric service to its members-owners at the lowest cost consistent with sound management. 11 11 36 0 0 0 0 0 14755355 15276342 182036 190695 0 0 14937391 15467037 0 0 345639 316894 1538303 1579569 0 0 0 13053449 13570574 14937391 15467037 0 0 36044006 36551179 23794760 23986634 12249246 12564545 Eastern Maine Electric Cooperative, Inc. (EMEC) is Maine's premiere consumer-owned utility providing low cost energy solutions and adding value to our member's quality of life through creative application of technology, capital and a dedicated workforce. 0 0 15467037 15467037 Utility Systems Programs, General/Other: Delivery of Electric Power (12,621 Consumers) 0 0 0 15467037 0 0 0 0 0 0 0 0 0 1 0 0 1 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 51 0 36 1 0 0 0 0 0 14929647 259083 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X SCOTT HALLOWELL CEO 2074547555 21 UNION ST CALAIS ME 046191819 James W Bala 4 X 2100 0 0 Lawrence E Clark 1 X 900 0 0 Virgil Farrar 2 X 2100 0 0 John W Larkin 3 X 2100 0 0 Robert Olsson 1 X 2100 0 0 Ralph Ray 1 X 2100 0 0 Vernon Wentworth 2 X 1950 0 0 Wallace Lindahl 3 X 2100 0 0 Earl Hill Jr 1 X 1950 0 0 Ralph Staples 4 X 1950 0 0 R Scott Skinner 5 X 2100 0 0 Scott M Hallowell 50 X 145737 0 71309 167187 0 71309 2 0 1 0 Coutts Bros Inc P O Box 58 Gardner ME 04345 distribution line construction 404418 NISC P O Box 1147 Mandan ND 58554 computing services 181193 Lucas Tree Experts P O Box 958 Portland ME 04104 tree clearing work 176619 3 0 Electricity Delivery 221000 8150435 8150435 0 0 Energy Supply 221000 7125907 7125907 0 0 0 0 0 0 15276342 188014 188014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2681 0 0 0 2681 2681 2681 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15467037 15467037 0 0 X 0 0 0 0 0 0 316894 316894 231186 231186 0 0 0 0 0 0 1348383 1348383 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 143640 143640 0 0 38207 38207 0 0 0 0 0 0 0 0 0 0 0 0 54853 54853 0 0 66104 66104 0 0 83145 83145 0 0 183325 183325 0 0 0 0 0 0 41512 41512 0 0 32683 32683 0 0 0 0 0 0 86945 86945 0 0 966901 966901 0 0 0 0 0 0 1839201 1839201 0 0 153575 153575 0 0 Purchased Power and Energy Supply 7322840 7322840 0 0 Distribution and Transmission 1519943 1519943 0 0 Consumer Accts Gen Admin Membership Dues 709626 709626 0 0 Reg Fees, Energy Cons, LIAP 328074 328074 0 0 0 0 0 0 15467037 15467037 0 0 265834 184488 140061 20026 0 0 1064772 1154199 0 0 0 0 0 0 704717 701415 2330518 2428215 52704630 27407347 24717787 25297283 0 0 0 0 860448 882127 0 0 5959869 5883426 36044006 36551179 801375 919690 0 0 0 0 0 0 0 0 0 0 20572046 20633928 0 0 2421339 2433016 23794760 23986634 X 0 0 0 0 12249246 12564545 12249246 12564545 36044006 36551179 X 0 0 0 0 0 315299 X 0 1 X 1 0 0 351 351 0 390525 256757 133768 0 0 0 0 0 3487406 2481027 1006379 0 48826348 24669563 24156785 25297283 Regulatory Assets 5883426 5883426 0 Regulatory Liability 812100 Accrued State Taxes Interest and Other 275469 Defer Credits Customer Advance for Construction 1270980 Consumer Deposits 74467 2433016 X 8341130 0 0 0 0 0 8341130 0 7125907 7125907 15467037 8024236 0 0 0 0 0 8024236 0 7442801 7442801 15467037 SchD_P10_S00_L02 Schedule D, Part X, Line 2 Footnote to Financial Statements Eastern Maine Electric Cooperative, Inc. (EMEC) The Cooperative is a nonprofit organization and is exempt from federal income tax under Internal Revenue Code Section 501(c)(12) as long as 85% or more of its gross income consists of amounts applicable to members for the sole purpose of meeting operating costs and expenses, and the Cooperative does not engage in business not related to its exemption. The Cooperative follows accounting guidance for uncertainty in income taxes which is part of ASC740, Income Taxes. The guidance prescribes a recognition threshold and measurement attributes for financial statement recognition of a tax position taken or expected to be taken on a tax return. SchD_P11_S00_L04b Schedule D, Part XI, Line 4b Income collected from consumers for Energy Supply SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Payments to Vendor for Energy Supply and Patronage Capital Allocation. For the audited financial statement, the amount of patronage dividends paid or allocated to the members is reported as an increase in equity and not as an expense. Therefore, net income per the audited financial statements is reported gross of the amount of patronage dividends that are either allocated or to be allocated at the time the audited financial statements are prepared. However, because the allocation of patronage dividends is one aspect of how the Cooperative fulfills its tax exempt purpose of operating on a cooperative basis, the amount of patronage dividends either allocated or to be allocated to the members is reported on Form 990, Part IX, line 4 as "benefits paid to members". Patronage dividends are allocated on a patronage basis and done so pursuant to the Cooperative's bylaws. X X X 0 0 0 Scott M Hallowell 141848 0 0 0 3888 0 61191 0 10119 0 217046 0 0 0 F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 Eastern Maine Electric Cooperative, Inc. (EMEC) has members. EMEC is owned by its members. EMEC is a non-profit consumer-owned electric utility serving parts of Aroostook, Penobscot and Washington Counties. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a Eastern Maine Electric Cooperative, Inc. (EMEC) members own the cooperative. To conduct the affairs of the cooperative, they elect a Board of Directors, who are themselves members. In the election of Directors, each member has one vote. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b Membership approval for the disposition and acquisition of certain assets and bylaw changes. F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b The Form 990 is prepared by the Finance Manager. The Chief Executive Officer reviews the Form 990. The Form 990 is presented, reviewed and discussed with the Board of Directors prior to the return being filed. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c Each board member signs a Conflict of Interest Statement at the monthly board meeting in which they state whether they have a conflict and that they will not participate in any vote in which there may be a potential conflict of interest. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 Comparative salary information from the 800 electric cooperatives is reviewed and used in developing a wage plan for non-bargaining unit employees, as approved by the board. At least once every three years, the wage plan is thoroughly reviewed and updated as necessary, as approved by the board. Annually, the board reviews the performance of the CEO and makes a salary change as applicable. Annually, the CEO reviews the performance of the non-bargaining unit employees and makes a salary change as applicable. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Eastern Maine Electric Cooperative, Inc. (EMEC) provides its governing documents, the By Laws, to each new member; plus they are available upon request. The Conflict of Interest policy is available upon request. The financial statements are mailed annually to each member and are presented at the annual meeting. F990_P09_S00_L04 Form 990, Part IX, Line 4 The Cooperative's tax exempt purpose is to provide electricity to its members and to do so, on a cooperative basis. Tax law defines "Operating on a cooperative basis" as subordination of capital, democratic control, and operation at cost. The Cooperative operates at cost through the allocation of true patronage dividends (also referred to as allocations of patronage capital) to its members. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transaction done with or for members, and (3) in a fair and equitable basis on the basis of patronage (i.e. purchases). Additionally, the allocation of patronage dividends should be made within a reasonable time period after the close of the Cooperative's year-end of December 31. The amount reported on this line represents the amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of delivery service from the Cooperative for the 2012 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of delivery service to the members and are done pursuant to the obligation that exists in the bylaws of the Cooperative. Therefore, these amounts meet the definition of the term "Patronage dividends paid". Patronage dividends allocated for 2012 are reported on line 4 in the amount of $316,894. Please note, however, that because patronage dividends is the process by which the Cooperative operates at cost with its members and thereby a key component to accomplishing its exempt purpose, the Cooperative has reported the amount of its 2012 margin that has been or is to be allocated to the members subsequent to year-end. Such amounts are an expense for Form 990 reporting and not an expense for financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). As a result, the difference between the Cooperative's GAAP basis financial statement and the revenue less expenses reported on Part 1, line 19 is the amount of patronage dividends reported as benefits paid to members. F990_P09_S00_L07 Form 990, Part IX, Line 7 Total Other Salaries and Wages were $2,160,995 of which $666,875 were charged to balance sheet accounts. The remaining amount of $1,494,120 was charged to expense accounts. F990_P09_S00_L08 Form 990, Part IX, Line 8 Total Pension Plan Contributions were $461,487 of which $133,695 was charged to balance sheet accounts. The remaining amount of $327,792 was charged to expense accounts. F990_P09_S00_L09 Form 990, Part IX, Line 9 Total medical, life, and long-term disability insurance contributions were $451,097 of which $120,815 was charged to balance sheet accounts. The remaining amount of $330,282 was charged to expense accounts. F990_P09_S00_L10 Form 990, Part IX, Line 10 Total Payroll Taxes were $158,135 of which $39,925 was charged to balance sheet accounts. The remaining amount of $118,210 was charged to expense accounts. F990_P11_S00_L09 Form 990, Part XI, Line 9 The amount reported on this line represents the amount of the current year patronage capital credit assignable and sum of changes in patronage capital retirements and memberships. The amount of patronage capital that is either allocated or to be allocated to the members reresulting from their purchase of electricity from the Cooperative for the 2012 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of electric energy to the members and are done pursuant to the obligation that existed in the bylaws prior to the Cooperative providing electricity to members. Therefore, these amounts meet the definition of the term "Patronage dividends paid". Form 8868, Application for Extension of Time to File an Exempt Organization Return, was filed. the Department of the Treasury, Internal Revenue Service, approved the request and extended the due date to file the Form 990 to August 15, 2013.