2013-10-03T11:35:13-05:00 2012-12-31 910605875 PETERSON SULLIVAN LLP CPA'S 601 UNION ST STE 2300 SEATTLE WA 981012345 990 2012-01-01 910361270 PENINSULA LIGHT COMPANY PENI 2538575950 PO BOX 78 GIG HARBOR WA 983350078 JAFAR TAGHAVI 2538575950 2013-09-26 1 RAYMON G HOLMDAHL P00120599 2063827777 2013-09-26 2012 2016-02-24 21:20:13Z JAFAR TAGHAVI PO BOX 78 GIG HARBOR WA 983350078 53858124 0 X WWW.PENLIGHT.ORG X 1925 WA ALL ACTIVITIES ARE THE RESULT OF PROVIDING ELECTRICITY AND WATER TO MEMBERS AND OPERATING THE COMPANY IN A FISCALLY RESPONSIBLE MANNER CONSISTENT WITH THE PURPOSES OF THE MUTUAL CORPORATION. 9 9 101 0 0 0 0 0 49665780 50917670 366480 329593 1194214 2554494 51226474 53801757 0 0 0 0 2309240 2318657 0 0 0 38035186 42447035 40344426 44765692 10882048 9036065 153777898 156789939 65638340 59571021 88139558 97218918 ALL ACTIVITIES ARE THE RESULT OF PROVIDING ELECTRICITY AND WATER TO MEMBERS AND OPERATING THE COMPANY IN A FISCALLY RESPONSIBLE MANNER CONSISTENT WITH THE PURPOSES OF THE MUTUAL CORPORATION. 0 0 DISTRIBUTION OF ELECTRICITY AND WATER TO MEMBERS' PROPERTY. CURRENTLY SERVES APPROXIMATELY 31,000 MEMBERS. 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 47 0 1 101 1 0 0 0 0 0 51237785 2953061 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 1 WA X ROBERT DRAGGOO CFO 2538575950 13315 GOODNOUGH DR NW GIG HARBOR WA 98335 JEFF BUCHOLZ 2.00 X X 13100 0 0 L PAUL ALVESTAD 2.00 X 13950 0 0 MARC JORGENSON 2.00 X X 16300 0 0 DEBRA ROSS 2.00 X 14250 0 0 NICK MARKOVICH 2.00 X X 14750 0 0 ROGER SPADONI 2.00 X 12850 0 0 SCOTT JUNGE 2.00 X 14300 0 0 SIGNO UDDENBERG 2.00 X X 13450 0 0 SPENCE NORDFORS 2.00 X 14350 0 0 JAFAR TAGHAVI 55.00 X 284640 0 140407 ROBERT DRAGGOO 55.00 X 158418 0 78647 MICHAEL MCNELLIS 40.00 X 138748 0 77358 RAPHAEL GRINBERG 40.00 X 131202 0 50258 MICHAEL SIMPSON 40.00 X 129743 0 56258 DANIEL CAINES 40.00 X 122766 0 22861 CLARK KAPRON 40.00 X 117170 0 38834 1209987 0 464623 7 0 1 0 ACTIVE CONSTRUCTION 5110 RIVER ROAD E TACOMA WA 98443 OPERATIONS CONSTRUCTION/MAINTENANCE 1675987 ASPLUNDH TREE EXPERT CO 708 BLAIR MILL ROAD WILLOW GROVE PA 19090 TREE TRIMING 727402 POTELCO INC 14103 STEWARD RD SUMNER WA 98390 CONSTRUCTION/MAINTENANCE 690627 ANCHOR INFORMATION MANAGEMENT DBA UTILIT 41911 WOODSLEE TROY MI 48083 BILL STATEMENT PRINTING & MAILING 255577 JOEL C MERKEL 1001 FOURTH AVENUE SUITE 4050 SEATTLE WA 98154 LEGAL SERVICES 120514 5 ELECTRICITY 221000 49139008 49139008 WATER 221000 931568 931568 MEMBER SERVICE INC 221000 626179 626179 HOOKUP/DISCONNECT/ENGINEERING FEE 221000 220915 220915 50917670 241891 241891 13800 356251 12293 0 1507 356251 357758 1507 356251 87702 0 87702 87702 87702 62610 44074 18536 18536 INCOME FROM EQUITY METHOD INVESTE 900099 2178200 2178200 2178200 53801757 53185079 0 616678 789412 825684 171702 360326 171533 116014 147755 67555 123974 57901 62393 87255 2491016 5069844 182999 POWER EXPENSE 21637157 DISTRIBUTION 2895925 MAINTENANCE 2701195 TAXES 2490723 4315329 44765692 8362253 9874841 2644817 125957 5185393 4306637 40860 39053 1617131 1286721 120790 131544 149236086 48837543 97515960 100398543 36293922 38737465 1996772 1889178 153777898 156789939 5684084 5139203 392887 59854256 54038931 100000 0 65638340 59571021 X 0 0 3775219 3818514 84364339 93400404 88139558 97218918 153777898 156789939 X 9036065 43295 X X 0 1 X 1 0 677175 677175 110950 5502070 3393412 2219608 14858 14858 0 137894252 45429273 92464979 5036781 5036781 100398543 28688800 C CAPITAL TERM CERTIFICATES 1912176 C PATRONAGE CAPITAL CERTIFICATES - CFC 1002095 C FEDERATED INSURANCE PREFERRED STOCK 164767 C INVESTMENT IN PLC ENERGY 6969627 C 38737465 X X X X X 0 0 0 JAFAR TAGHAVI 241002 0 0 0 43638 0 77101 0 63306 0 425047 0 0 0 ROBERT DRAGGOO 129385 0 0 0 29033 0 42850 0 35797 0 237065 0 0 0 MICHAEL MCNELLIS 114387 0 0 0 24361 0 38655 0 38703 0 216106 0 0 0 RAPHAEL GRINBERG 118856 0 0 0 12346 0 24997 0 25261 0 181460 0 0 0 MICHAEL SIMPSON 118039 0 0 0 11704 0 35592 0 20666 0 186001 0 0 0 CLARK KAPRON 93765 0 0 0 23405 0 24742 0 14092 0 156004 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 WE ARE A MUTUAL/COOPERATIVE WHERE THE RECIPIENTS OF OUR UTILITY SERVICES ARE THE OWNER/MEMBERS FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ALL THE SAME CLASS - RECEIVE UTILITY SERVICE FROM COMPANY FORM 990, PART VI, SECTION A, LINE 7B A BY-LAW CHANGE REQUIRES VOTE OF THE MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES THAT HAVE THE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY SO THE QUESTION IS N/A. FORM 990, PART VI, SECTION B, LINE 11 COPIES OF THE 990 WILL BE INCLUDED IN THE BOARD PACKETS DISTRIBUTED PRIOR TO THEIR MONTHLY MEETING. ANY QUESTIONS WILL BE DISCUSSED AND ANSWERED AT THE BOARD MEETING AND DISCUSSION WILL BE NOTED IN THE BOARD MINUTES. COPIES OF THE 990 WILL BE DISTRIBUTED TO SENIOR STAFF AND ANY QUESTIONS WILL BE DISCUSSED AND ANSWERED AT THE SENIOR STAFF MEETING. FORM 990, PART VI, SECTION B, LINE 12C HUMAN RESOURCE (HR) DIRECTOR MONITORS AND ADMINISTERS THE POLICY. FORM 990, PART VI, SECTION B, LINE 15 CEO - AN INDEPENDENT CONSULTANT WAS HIRED TO CONDUCT AN ANNUAL MARKET SALARY SURVEY/STUDY FOR THE CEO POSITION. - THE CONSULTANT REPORTED DIRECTLY TO THE PRESIDENT OF THE BOARD AND THE CHAIRMAN OF THE BOARD GOALS/LONG-TERM PLANNING COMMITTEE. THE CEO HAD NO CONTACT OR INTERACTION IN ANY WAY WITH THE CONSULTANT, THE COMMITTEE OR THE BOARD REGARDING THIS PROJECT. - THE CONSULTANT ALSO REPORTED HIS FINDINGS DIRECTLY TO THE ENTIRE BOARD OF DIRECTORS. A QUESTION AND ANSWER SESSION FOLLOWED WHERE THE CONSULTANT ANSWERED SPECIFIC QUESTIONS FROM THE BOARD ABOUT THE COMPARABILITY OF DATA PRESENTED. - THE ENTIRE BOARD DELIBERATED BEFORE REACHING THEIR DECISION AS TO WAGE PLACEMENT FOR THE CEO. - IN A SEPARATE MEETING, THE BOARD PRESIDENT AND CHAIRMAN OF THE GOALS/LONG-TERM COMMITTEE INFORMED THE CEO OF THE BOARDS DECISIONS AS TO HIS SALARY. THE HR DIRECTOR WAS SUBSEQUENTLY INFORMED OF THE COMPENSATION CHANGE AND EFFECTIVE DATE FOR THE CEO. EXEMPT MANAGEMENT EMPLOYEES WHO ARE LISTED IN PART VII, SECTION A, LINE 1A. - THE CEO AND THE HR DIRECTOR ARE RESPONSIBLE FOR OBTAINING MARKET SALARY DATA AND ESTABLISHING SALARIES OF EXEMPT MANAGEMENT EMPLOYEES BASED ON COMPARABILITY DATA WITHIN THE ELECTRIC DISTRIBUTION UTILITY INDUSTRY. - THE CEO AND THE HR DIRECTOR REVIEWED CURRENT INDUSTRY PAY COMPARABILITY SURVEYS. AN INDEPENDENT CONSULTANT IS HIRED PERIODICALLY TO CONDUCT A MARKET SALARY FOR ALL EXEMPT MANAGEMENT POSITIONS, BUT WAS NOT HIRED FOR THE CURRENT YEAR. - SEVERAL YEARS AGO, AN INTERNAL EQUITY COMPENSATION COMMITTEE WAS FORMED CONSISTING OF A MANAGER FROM EACH DIVISION OF THE COMPANY. THIS COMMITTEE PROVIDED INDEPENDENT RECOMMENDATIONS AS TO THE PLACEMENT OF POSITIONS IN A SALARY SCHEDULE (MATRIX) TO ASSURE THAT THE PAY OF EXEMPT PROFESSIONALS AND MANAGERS IS EQUITABLE IN RELATION TO EACH OTHER BASED ON THEIR FUNCTIONS. IF A NEW EXEMPT POSITION IS CREATED, THE POSITION IS PLACED IN THE MATRIX SO AS TO ASSURE CONTINUING PAY EQUITY AMONG EXEMPT PROFESSIONALS AND MANAGERS. THE CEO AND THE HR DIRECTOR MEET ANNUALLY TO DISCUSS THE DATA COMPARABLES AS DETERMINED THROUGH INDUSTRY SURVEYS, THE SUBSTANTIATION BEHIND THEM, THE INTERNALLY DEVELOPED SALARY EQUITY MATRIX, AND THE ABILITY OF THE COMPANY TO SUPPORT THE DATA. FOLLOWING DELIBERATION, THE PAY RANGE AND PAY ADJUSTMENTS FOR THE EXEMPT PROFESSIONALS AND MANAGEMENT EMPLOYEES WAS ULTIMATELY DETERMINED BY THE CEO BASED ON THE ABOVE DATA AND THE INTERNAL EQUITY COMPENSATION MATRIX. - REGARDING THE CFO, THE CEO PERSONALLY CONDUCTED AN ADDITIONAL INFORMAL INVESTIGATION OF THE PAY RANGE FOR CFOS EMPLOYED BY OTHER PUBLICLY OR COOPERATIVELY OWNED UTILITIES IN THE NORTHWEST. THE CEO DETERMINED THAT A MINOR PAY ADJUSTMENT WAS APPROPRIATE AND WAS MADE FOR THE CFO INCUMBENT. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE AVAILABLE UPON WRITTEN REQUEST AT THE COMPANY'S MAIN OFFICE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: NET INCREASE IN MEMBERSHIPS 43,295. FORM 990, PART XI, LINE 2C THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. COMPENSATION FORM 990, PART IX, LINES 5 & 7 THE AMOUNTS FOR COMPENSATION IN THE STATEMENT OF FUNCTIONAL EXPENSES DO NOT INCLUDE ALL WAGES FOR PENINSULA LIGHT COMPANY. THE AMOUNTS ON LINES 5 & 7 ARE ONLY FOR WAGES PERTAINING TO GENERAL AND ADMINISTRATIVE EMPLOYEES. ALL OTHER WAGES ARE INTEGRATED THROUGHOUT OTHER EXPENSES, SUCH AS POWER EXPENSE, DISTRIBUTION, ETC. PLC ENERGY INC PO BOX 78 GIG HARBOR WA 98335 911943365 WHOLESALE POWER SALES WA PENINSULA LIGHT COMPANY C -2101387 1533703 1.00000 0 HARVEST WIND PROJECT (TENANTS IN COMMON) PO BOX 3007 LONGVIEW WA 98632 264679797 WIND FARM WA N/A C 2178200 29275000 0.20000 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 0 1 0 0 PLC ENERGY INC B 1907862 ACTUAL COST PLC ENERGY INC O 103193 ACTUAL COST HARVEST WIND PROJECT F 1694000 ACTUAL COST