2012-07-31T14:57:08-07:00 2011-12-31 990 2011-01-01 010056837 EASTERN MAINE ELECTRIC COOPERATIVE INC EAST 2074547555 P O BOX 425 CALAIS ME 046190425 Scott Hallowell 2074547555 2012-07-31 2011 2016-02-24 21:20:13Z Scott M Hallowell P O Box 425 Calais ME 046190425 14937391 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 34 0 0 0 0 0 7960134 14755355 149243 182036 0 0 8109377 14937391 0 0 271696 345639 1627607 1538303 0 0 0 6210074 13053449 8109377 14937391 0 0 36247319 36044006 24342139 23794760 11905180 12249246 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 14937391 0 14937391 Utility Systems Programs, General/Other: Delivery of Electric Power (12,631 Consumers) 0 0 0 14937391 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 0 1 47 0 34 1 0 0 0 0 0 14404453 257044 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 2550 0 0 Virgil Farrar 2 X 2400 0 0 Earl Hill Jr 1 X 1950 0 0 John W Larkin 3 X 1950 0 0 Robert Olsson 1 X 1950 0 0 Ralph Ray 1 X 1950 0 0 Vernon Wentworth 2 X 2250 0 0 Wallace Lindahl 3 X 2550 0 0 Ralph Staples 4 X 1950 0 0 Albert Hartford 1 X 1950 0 0 R Scott Skinner 5 X 2550 0 0 Scott M Hallowell 50 X 134392 0 55449 158392 0 55449 1 0 1 0 Lucas Tree Experts P O Box 958 Portland ME 04104 tree clearing work 246481 NISC P O Box 1147 Mandan ND 58554 computing services 178541 2 0 Electricity Delivery 221000 7986369 7986369 0 0 Energy Supply 221000 6768986 6768986 0 0 0 0 0 0 14755355 179559 179559 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2477 0 0 0 2477 2477 2477 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 14937391 14937391 0 0 X 0 0 0 0 0 0 345639 345639 220078 220078 0 0 0 0 0 0 1318225 1318225 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 127756 127756 0 0 38135 38135 0 0 0 0 0 0 0 0 0 0 0 0 501 501 0 0 76356 76356 0 0 112022 112022 0 0 184852 184852 0 0 0 0 0 0 39943 39943 0 0 33152 33152 0 0 0 0 0 0 70286 70286 0 0 978870 978870 0 0 0 0 0 0 1825143 1825143 0 0 154613 154613 0 0 Purchased Power and Energy Supply 6969238 6969238 0 0 Distribution and Transmission 1405951 1405951 0 0 Consumer Accts, Gen Admin, Membership Dues 676925 676925 0 0 Reg Fees, Energy Cons, LIAP 324543 324543 0 0 35163 35163 0 0 14937391 14937391 0 0 175574 265834 85164 140061 0 0 1197715 1064772 0 0 0 0 0 0 670034 704717 2277478 2330518 50909952 26192165 25038879 24717787 0 0 0 0 838363 860448 0 0 5964112 5959869 36247319 36044006 861768 801375 0 0 0 0 0 0 0 0 0 0 21286625 20572046 0 0 2193746 2421339 24342139 23794760 X 0 0 0 0 11905180 12249246 11905180 12249246 36247319 36044006 X 0 344066 X 0 1 1 X 0 0 351 351 0 400450 254679 145771 0 0 0 0 0 3210456 2323692 886764 0 47298695 23613794 23684901 24717787 Regulatory Assets 5959869 5959869 0 Regulatory Liability 702200 Accrued State Taxes Interest and Other 382201 Defer Credits Customer Advance for Construction 1263074 Consumer Deposits 73864 2421339 14937391 14937391 0 0 0 0 0 345639 345639 345639 8168405 0 0 0 0 0 8168405 0 6768986 6768986 14937391 7822766 0 0 0 0 0 7822766 0 7114625 7114625 14937391 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 ASC 740, Income Taxes. The guidance prescribes a recognition threshold and measurement attributes for financial statemenet recognition of a tax position taken or expected to be taken on a tax return. SchD_P11_S00_L08 Schedule D, Part XI, Line 8 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 member". Patronage dividends are allocated on a patronage basis and done so pursuant to the Cooperative's bylaws. SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Income collected from consumers for Energy Supply SchD_P13_S00_L04b Schedule D, Part XIII, Line 4b Payments to Vendor for Energy Supply. Patronage Capital Allocation which is defined in supplemental information for Schedule D, Part XI, Line 8. X X X 0 0 0 Scott M Hallowell 132039 0 0 0 2353 0 45837 0 9612 0 189841 0 0 0 F990_P01_S00_L14 Form 990, Part I, Line 14 Reclassification of benefits paid to members. The instructions for the 2011 Form 990 clarify that "benefits paid to members" should include the amount of patronage dividends paid to the members of section 501(c)(12) cooperatives. Consistent with this clarification in the instructions the Cooperative has reported on this line for the current year the amount of patronage dividends paid and/or allocated to the Cooperative's members for the 2011 calendar year. Since Part I summarizes both prior and current year data, the Cooperative has chosen to also report on this line for the prior year the amount of patronage dividends paid and/or allocated to the members for the 2010 calendar year. Because the instruciton for the 2010 Form 990 did not provide for such a clarification, the 2010 Form 990 was not prepared in this manner. However, since the Cooperative did in fact allocate patronage dividends to its memebers for the 2010 calendar year, it believes that both the prior year and current year columns of Part I should be prepared consistently in order to reflect that the Cooperative has a pre-existing obligation to allocate, and does allocate, patronage dividends to its members for the benefit of the members. 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 dispositon 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 Form 990 instructions for the current year clarifies that the amount of patronage dividends paid to the members should be reported on Part IX, line 4 as "benefits paid to members". 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-exisitng 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 2011 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 2011 are reported on line 4 in the amount of $345,639. 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 2011 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. As a result, the difference between the Cooperative's GAAP basis financial statement and the revenue less expenses reported on Part I, 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 $2,149,279 of which $$696,663 were charged to balance sheet accounts. The remaining amount of $$1,452,616 was charged to expense accounts. F990_P09_S00_L08 Form 990, Part IX, Line 8 Total Pension Plan Contributions were $464,390 of which $140,230 was charged to balance sheet accounts. The remianing amount of $324,160 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 $411,901 of which $119,628 was charged to balance sheet accounts. The remaining amount of $292,273 was charged to expense accounts. F990_P09_S00_L10 Form 990, Part IX, Line 10 Total payroll taxes were $156,999 of whihc $42,676 was charged to balance sheet accounts. The remaining amount of $114,323 was charged to expense accounts. F990_P10_S00_L32 Form 990, Part X, Line 32 Eastern Maine Electric Cooperative, Inc. (EMEC) has members and is owned by its members. The dollar amount on Part X, Balance Sheet, Line 32, Retained Earnings, endowment, accumulated income or other funds. This line item amount of $12,246,246 is composed of memberships, patronage capital assigned, net effect of retired capital credits and the current year capital credit assignable. A total of $11,894,598 capital credit allocations have been assigned to EMEC members. Of this total, $55,565 have been retired to settle estates. F990_P11_S00_L05 Form 990, Part XI, Line 5 Sum of changes in patronage dividends and memberships. 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, 2012.