2011-07-05T13:41:50-05:00 2010-12-31 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2010-01-01 810218593 HILL COUNTY ELECTRIC COOPERATIVE INC HILL 4063947804 2121 US HIGHWAY 2 NW PO BOX 2330 HAVRE MT 59501 RICHARD STEVENS 4063947804 2011-06-28 1 LAURIE HANSON 6053391999 2011-06-28 2010 2016-02-24 21:20:13Z RICHARD STEVENS 2121 US HIGHWAY 2 NW PO BOX 2330 HAVRE MT 59501 11021651 0 X WWW.HCELECTRIC.COM X 1945 MT TO PROVIDE ELECTRICITY TO RURAL AREAS. 5 5 149 0 0 0 0 0 10807175 10601963 32073 64970 -16748 -23790 10822500 10643143 0 0 0 0 1899880 2208418 0 0 0 8026249 8089756 9926129 10298174 896371 344969 25559935 26497895 12438438 13122980 13121497 13374915 X HILL COUNTY ELECTRIC PROVIDES OUR MEMBERS AND CUSTOMERS WITH HIGH QUALITY, RELIABLE AND SAFE ELECTRIC SERVICES AND ASSOCIATED PRODUCTS AT COMPETITIVE PRICES, NOW AND IN THE FUTURE. USING ADVANCED TECHNOLOGY WHEN AVAILABLE AND COST-EFFECTIVE, WE STRIVE TO EXCEED THE EXPECTATIONS OF OUR CUSTOMERS BY GIVING UNCOMPROMISING CUSTOMER SERVICE BASED ON CORE PRINCIPLES OF COOPERATION, MUTUAL RESPECT AND APPRECIATION FOR THEIR PATRONAGE. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 2,346 MEMBERS AND ADDED/REPLACED 10 MILES OF LINES. 0 0 0 0 0 0 0 0 1 0 0 0 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 62 0 1 149 1 0 0 0 0 0 0 0 10313479 648001 0 X 5 5 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 MT X MARK MAJERES 4063947804 PO BOX 2330 HAVRE MT 59501 STUART SMITH 11.00 X X 16825 0 0 CLARENCE KELLER 21.00 X X 14900 0 0 LON WAID 8.00 X X 12450 0 0 GERALD RUTLEDGE 11.00 X 14725 0 0 MERLE BELCOURT 6.00 X 10875 0 0 MARK MAJERES 10.00 X 68312 0 27502 RICHARD STEVENS 10.00 X 139799 0 233931 GAIL RAINEY 8.00 X 94077 0 43541 371963 0 304974 1 0 1 0 OUTBACK POWER CO INC 1324 CENTRAL AVE W 3 BOX 358 GREAT FALLS MT 59404 CONSTRUCTION 445374 HEBERLY AND ASSOCIATES 521 4TH STREET PO BOX 1311 HAVRE MT 59501 ENGINEERING 172274 RED ROCK POWER INC PO BOX 725 HAVRE MT 59501 CONSTRUCTION 111869 3 SALE OF ELECTRICITY 221000 10561363 10561363 COOP CAPITAL CREDITS 221000 43189 43189 OTHER NONOPERATING 221000 -2589 -2589 10601963 64970 64970 354718 378508 -23790 -23790 10643143 10578173 0 64970 151085 1733892 186301 137140 506221 1049465 COST OF POWER 5693014 ADMIN. AND GENERAL 803051 DIST. - MAINTENANCE 719415 DIST. - OPERATIONS 440662 ALLOCATED AND OTHER -1122072 10298174 1025398 255762 1714213 1690450 916432 906116 409956 497430 82852 88163 37936369 15517759 20726420 22418610 134138 75904 544583 559695 5943 5765 25559935 26497895 1321199 1449260 10965385 11241430 300000 151854 132290 12438438 13122980 X 0 0 0 0 13121497 13374915 13121497 13374915 25559935 26497895 X 344969 -91551 X 0 1 1 X 0 65707 65707 3809366 1237957 2571409 34036287 14254793 19781494 25009 25009 0 22418610 CUSTOMER DEPOSITS 47986 DEFERRED CREDITS 84304 132290 10643143 10298174 344969 -91551 -91551 253418 10643143 0 10643143 0 10643143 10298174 0 10298174 0 10298174 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE COOPERATIVE ADOPTED THE PROVISIONS OF FINANCIAL ACCOUNTING STANDARDS BOARD ACCOUNTING STANDARDS CODIFICATION TOPIC ASC 740-10 (PREVIOUSLY FINANCIAL INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES), ON JANUARY 1, 2009. THE IMPLEMENTATION OF THIS STANDARD HAD NO IMPACT ON THE FINANCIAL STATEMENTS. AS OF BOTH THE DATE OF ADOPTION, AND AS OF YEARS ENDED DECEMBER 31, 2010 AND 2009, THERE WAS NO UNRECOGNIZED TAX ACCRUAL. 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 2007. PART XI, LINE 8 - OTHER ADJUSTMENTS: RETIREMENT OF CAPITAL CREDITS -91,551. X 1 1 X X 0 0 0 RICHARD STEVENS 133749 0 0 0 6050 0 222651 0 13850 0 376300 0 0 0 PART I, LINE 1A AS PART OF THE EMPLOYMENT CONTRACT, THE TRAVEL EXPENSES OF THE GENERAL MANAGER'S SPOUSE ARE REIMBURSED AS APPROVED BY THE BOARD OF TRUSTEES. SUPPLEMENTAL INFORMATION PART III PLEASE SEE SCHEDULE O REGARDING THE COMPENSATION PAID TO THE GENERAL MANAGER/CEO. FORM 990, PART VI, SECTION A, LINE 6 HILL COUNTY ELECTRIC HAS TWO CLASSES OF MEMBERS: LARGE INDUSTRIAL MEMBERS WHOSE CAPTIAL CREDITS ARE CALCULATED BASED ON AGREEMENTS, AND THE REMAINING MEMBERS. EACH MEMBER IS ENTITLED TO ONE VOTE REGARDLESS OF CLASS. FORM 990, PART VI, SECTION A, LINE 7A ALL MEMBERS ARE OF THE SAME CLASS AND EACH HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7B THE COOPERATIVE MAY NOT SELL, MORTGAGE, LEASE, OR OTHERWISE DISPOSE OF OR ENCUMBER ALL OR ANY SUBSTANTIAL PORTION OF ITS PROPERTY UNLESS APPROVED BY TWO-THIRDS OF ALL THE MEMBERS BY VOTE AT A DULY HELD MEETING. THE COOPERATIVE SHALL NOT BECOME A MEMBER OF OR PURCHASE OR ACQUIRE STOCK OR OTHER OWNERSHIP INTERESTS IN ANY CORPORATION OR OTHER ENTITY OR ORGANIZATION WITHOUT AN AFFRIMATIVE VOTE OF THE MEMBERS AT A DULY HELD MEETING. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE COMMITTEES. FORM 990, PART VI, SECTION B, LINE 11 THE GENERAL MANAGER AND ASSISTANT GENERAL MANAGER WILL REVIEW THE PREPARED FORM 990 IN DETAIL PRIOR TO FILING. ADDITIONALLY, A COPY WILL BE GIVEN TO BOARD MEMBERS PRIOR TO ITS FILING. THE GENERAL MANAGER OR ASSISTANT GENERAL MANAGER WILL PRESENT THE FORM 990 AT A BOARD MEETING PRIOR TO FILING THE RETURN IF SO DESIRED BY THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C TRUSTEES AND KEY EMPLOYEES ARE REQUIRED TO SIGN AN ACKNOWLEDGEMENT OF THE CONFLICT OF INTEREST POLICY ANNUALLY STATING THAT THEY WILL ADVISE MANAGEMENT OF ANY QUESTIONABLE OWNERSHIP INTERESTS OR RELATIONSHIPS. THE BOARD OF DIRECTORS IS RESPONSIBLE FOR DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS. IF A CONFLICT EXISTS, THE AFFECTED BOARD MEMBER IS REQUIRED TO ABSTAIN FROM DISCUSSION AND VOTING ON THE ITEM. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION OF THE GENERAL MANAGER/CEO IS DETERMINED BY THE BOARD OF TRUSTEES. EACH TRUSTEE COMPLETES A WRITTEN EVALUATION OF THE CEO'S PERFORMANCE WHICH IS COMPILED WITH THE OTHER EVALUATIONS AND PRESENTED AND DISCUSSED WITH THE CEO. COMPENSATION FOR THE NEXT YEAR IS PART OF THIS EVALUATION AND DISCUSSION PROCESS. THE COMPENSATION OF THE ASSISTANT GENERAL MANAGER/COO IS DETERMINED BY THE GENERAL MANAGER/CEO AFTER CONSIDERING PERFORMANCE, MARKET DATA AND YEARS OF SERVICE. THE COMPENSATION OF OTHER MANAGEMENT EMPLOYEES IS DETERMINED BY THE GENERAL MANAGER/CEO AND THE ASSISTANT GENERAL MANAGER/COO AFTER CONSIDERING PERFORMANCE, MARKET DATA AND YEARS OF SERVICE. THE PROCESS FOR DETERMINING COMPENSATION WAS UNDERTAKEN IN 2010. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: RETIREMENT OF CAPITAL CREDITS -91,551. TOTAL TO FORM 990, PART XI, LINE 5: -91,551. NUMBER OF EMPLOYEES ON WAGE AND TAX STATEMENT: FORM 990, PART V, LINE 2A HILL COUNTY ELECTRIC COOPERATIVE, INC, IS THE COMMON PAYMASTER FOR TWO AFFILIATED, UNRELATED ORGANIZATIONS. AS SUCH, THE NUMBER OF EMPLOYEES REPORTED ON FORM W-3 INCLUDES THREE COMPANIES. OFFICER COMPENSATION FORM 990, PART VII, SECTION A THE COMPENSATION OF THE GENERAL MANAGER/CEO, ASSISTANT GENERAL MANAGER/COO, AND CONTROLLER IS PAID BY HILL COUNTY ELECTRIC COOPERATIVE, INC. OF THAT AMOUNT, 81% OF GROSS WAGES AND BENEFITS FOR THE GENERAL MANAGER/CEO AND THE ASSISTANT GENERAL MANAGER/COO, AND 71% OF GROSS WAGES AND BENEFITS FOR THE CONTROLLER ARE REIMBURSED BY AFFILIATED, UNRELATED TELEPHONE COOPERATIVES THROUGH A SHARED MANAGEMENT AGREEMENT. HOURS WORKED FOR OTHER ORGANIZATIONS WERE AS FOLLOWS: GENERAL MANAGER/CEO - 40 ASSISTANT GENERAL MANAGER/COO - 36 CONTROLLER - 32 OTHER COMPENSATION 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 GENERAL MANAGER. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. ALLOCATED AND OTHER EXPENSE FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E.