2011-11-08T15:26:54-06:00 2010-12-31 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 880106922 MT WHEELER POWER INC MTWH 7752898981 PO BOX 151000 ELY NV 89315 RANDY EWELL 7752898981 2011-10-31 1 Matt R Willis 8067473806 2011-10-31 2010 2016-03-07 17:11:31Z RANDY EWELL PO BOX 151000 ELY NV 89315 32628431 0 X WWW.MWPOWER.NET X 1963 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 8 47 0 439214 0 0 0 30696317 31958507 -356213 252189 371352 396273 30711456 32606969 0 29086 0 0 2637398 2521895 0 0 0 27936300 27972420 30573698 30523401 137758 2083568 40960841 41172017 18491338 17660446 22469503 23511571 THE COOPERATIVE'S RESPONSIBILITY AND AIM IS TO PROVIDE EXCELLENT AND INNOVATIVE CUSTOMER SERVICE AS REFLECTED IN TOP QUALITY ELECTRIC SERVICE RELIABILITY, AFFORDABLE RATES, EMPLOYEE TEAMWORK AND THE HIGHEST DEGREE OF INTEGRITY IN ALL COOPERATIVE ENDEAVERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 7,248 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 25 0 47 1 1 1 0 0 0 0 32142430 1233412 0 X 9 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X RANDY EWELL 7752898981 1600 GREAT BASIN BLVD ELY NV 89301 X JERALD ANDERSON 26.50 X X 14310 0 0 DON PHILLIPS 2.30 X X 8720 0 0 WILMA SANFORD 3.40 X X 9910 0 0 SANDRA GREEN 5.50 X X 11355 0 0 BOB SWETICH 1.60 X 8550 0 0 FRANK LEON 2.40 X 11780 0 0 DOUG CARSON 7.60 X 3020 0 0 RICK HENDRIX 4.00 X 6380 0 0 KAYE KIRKEBY 1.40 X 8380 0 0 JERRY MORRILL 3.60 X 11780 0 0 RANDY EWELL 40.00 X 146804 0 37822 KEVIN ROBISON 40.00 X 98194 0 30442 JESSE MURDOCK 40.00 X 106963 0 30550 BILL RICCI 40.00 X 104917 0 30407 551063 0 129221 3 0 1 0 OSMOSE UTILITIES SERVICES INC 980 ELLICOTT STREET BUFFALO NY 14209 POLE TESTING 190265 1 ELECTRICITY SALES 221000 31260086 31260086 PATRONAGE DIVIDENDS 221000 698421 665432 32989 31958507 220696 84916 135780 12130 60474 12130 60474 72604 72604 31493 31493 31493 31493 25392 21462 3930 2360 1570 INTERNET SERVICE 519100 293952 293952 SECURITY SYSTEMS 561700 24890 24890 TELECOMMUNICATIONS 517000 789 789 108 108 319739 32606969 31927878 439214 239877 7903 21183 407447 1411182 135976 442137 125153 975400 1659644 PURCHASED POWER 22154775 DISTRIBUTION EXPENSE 889419 IMPAIRMENT LOSS ON N.R. 677144 ADMIN & GENERAL EXPENSE 536175 CUSTOMER SERVICE 343648 736215 30523401 1430228 2154182 300000 300000 926095 477420 5000000 2192344 3020472 2682 272 60913624 31758175 29460722 29155449 1483476 5901024 165294 163198 40960841 41172017 1142159 1357084 542189 490224 14025594 13079687 2781396 2733451 18491338 17660446 X 388027 418095 0 0 22081476 23093476 22469503 23511571 40960841 41172017 X 2083568 -1041500 X X 0 1 0 X 0 0 1 377801 377801 3864743 1639982 2224761 54944235 30118193 24826042 1726845 1726845 29155449 PATRONAGE CAPITAL - CFC 647067 C PATRONAGE CAPITAL - COOPERATIVE RESPONSE CENTER 3490 C PATRONAGE CAPITAL - NISC 17612 C PATRONAGE CAPITAL - NRTC 68352 C PATRONAGE CAPITAL - FEDERATED 22193 C PATRONAGE CAPITAL - DESERT GENERATION & TRANSMISSION 4322856 C CAPITAL TERM CERTIFICATES - CFC 640313 C INVESTMENT IN MEMBERSHIPS 12000 C ENERGY CONSERVATION LOANS 67141 C MEMBER CAPITAL SECURITIES CFC 100000 C 5901024 CONSUMER DEPOSITS 469552 ACCRUED OTHER COMPENSATED ABSENCES 470364 OTHER CURRENT AND ACCRUED LIABILITIES 222442 DEFERRED CREDITS 1571093 2733451 32606969 30523401 2083568 -1041500 -1041500 1042068 32132745 0 32132745 474224 474224 32606969 30049177 0 30049177 474224 474224 30523401 Part IV, Line 2b: PURSUANT TO SECTION 81.507 OF THE NEVADA PROPERTY CODE AND THE COOPERATIVE'S BYLAWS, THE COOPERATIVE CAN RETAIN ANY CAPITAL CREDIT OF A MEMBER, WHO IS RESIDENT OF NEVADA, WHICH REMAINED UNCLAIMED FOR A PERIOD OF ONE YEAR. THE COOPERATIVE HAS CHOSEN TO APPLY THESE UNCLAIMED PATRONAGE CAPITAL CREDITS TOWARDS GRANTS, SPONSORSHIPS AND DONATIONS TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. UTAH MEMBER-RESIDENTS' UNCLAIMED CAPITAL CREDITS ARE ALSO HELD BY THE COOPERATIVE TO (A) ASSIST LOW-INCOME PERSONS TO PAY THEIR UTILITY BILLS, AND (B) TO PROVIDE SCHOLARSHIPS TO LOCAL GRADUATING HIGH SCHOOL SENIORS. IN THE STATE OF UTAH, PURSUANT TO UTAH'S UNIFORM AGRICULTURAL COOPERATIVE ASSOCIATION ACT (TITLE 3, CHAPTER 1, SECTION 11), THE COOPERATIVE CAN RETAIN CAPITAL CREDITS GIVEN TO ITS MEMBERS THAT REMAIN UNCLAIMED FOR A PERIOD OF THREE YEARS, BUT CAN ONLY APPLY THESE UNCLAIMED CAPITAL CREDITS TO UTILITY BILL ASSISTANCE OF LOW-INCOME PERSONS AND SCHOLARSHIPS FOR HIGH-SCHOOL SENIORS. Description of Uncertain Tax Positions Under FIN 48: Part X: ON JANUARY 1, 2009, THE COOPERATIVE ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. Part XI, Line 8 - Other Adjustments: NET CHANGE IN MEMBERSHIPS 30,067. RETIREMENT OF PATRONAGE CAPITAL -1,071,567. Part XII, Line 4b - Other Adjustments: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 474,224. Part XIII, Line 4b - Other Adjustments: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 474,224. Part IX THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK. 0 X CHRISTMAS PRESENTS FOR LOCAL CHILDREN AND FAMILILES IN NEED; 154 FAMILIES SERVED. 154 21183 Other Information: Part IV: ALL GRANTS, SPONSORSHIPS AND DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X X X X 0 0 0 RANDY EWELL 128428 0 0 0 18376 0 15736 0 22086 0 184626 0 0 0 DESERET GENERATION & TRANSMISSION COOPERATIVE THE GENERAL MANAGER AND DIRECTOR ANDERSON SERVE ON DESERET G&T COOP'S BOARD 22154775 THE COOPERATIVE PURCHASES ELECTRIC POWER FROM DESERET GENERATION & TRANSMISSION COOPERATIVE. 0 Form 990, Part VI, Section A, line 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. Form 990, Part VI, Section A, line 7a THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. Form 990, Part VI, Section A, line 7b THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE. 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE. 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. 3. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS. Form 990, Part VI, Section A, line 8b FROM TIME TO TIME THE ENTIRE BOARD WILL GO INTO EXECUTIVE SESSION FOR DISCUSSING ITEMS OF A SENSITIVE AND CONFIDENTIAL NATURE. WHEN THIS OCCURS MANAGEMENT AND OTHERS IN ATTENDANCE ARE REMOVED FROM THE MEETING ROOM. ITEMS DISCUSSED IN EXECUTIVE SESSION ARE NOT DOCUMENTED. HOWEVER, ACTIONS TAKEN BY THE BOARD AFTER EXECUTIVE SESSIONS ARE ADJOURNED ARE FULLY DOCUMENTED IN THE WRITTEN MINUTES. Form 990, Part VI, Section B, line 11 MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. Form 990, Part VI, Section B, line 12c THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. WHEN A CONTRACT OR BUSINESS TRANSACTION IS UNDER CONSIDERATION AND A DIRECTOR OR EMPLOYEE KNOWS THAT HE, SHE, OR A CLOSE RELATIVE HAS A FINANCIAL INTEREST, THIS INTEREST IS REQUIRED TO BE DISCLOSED FULLY TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL DECIDE IF SUCH AN INTEREST SHOULD PREVENT THE COOPERATIVE FROM ENTERING INTO A PARTICULAR TRANSACTION OR CONTRACT. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS COMPARE COMPENSATION FROM OTHER COOPERATIVE'S FORM 990S AND LOOK AT OTHER EXTERNAL WRITTEN CONTRACTS OF SIMILARLY SITUATED GENERAL MANAGERS AND OFFICERS, WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. A COMPENSATION SURVEY IS ALSO EMPLOYED THAT SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN NEVADA AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEVADA AND THE NATION. Form 990, Part VI, Section C, line 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENT TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO SUBMITS A WRITTEN REQUEST, SUBJECT TO APPROVAL. INDEPENDENT DIRECTORS Form 990, Part VI, Line 1b JERALD ANDERSON PER IRS FORM 990 INSTRUCTIONS IS NOT AN INDEPENDENT DIRECTOR BECAUSE HE IS ON THE BOARD OF DESERET GENERATION & TRANSMISSION COOPERATIVE, A TAXABLE COOPERATIVE. THE COOPERATIVE IS A MEMBER OF DESERET G&T AND PURCHASES ITS ELECTRIC ENERGY FROM DESERET G&T. AS SUCH, MR. ANDERSON IS THE COOPERATIVE'S REPRESENTATIVE ON DESERET G&T'S BOARD. MR. ANDERSON HAS NO OWNERSHIP INTEREST IN DESERET G&T AND RECEIVES NO DIRECT OR INDIRECT BENEFIT FROM THE COOPERATIVE DOING BUSINESS WITH DESERET G&T. TO PROVIDE DETAIL REGARDING OFFICER'S OTHER COMPENSATION Form 990, Part VII, Column F IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 11.5% OF A PARTICIPATING EMPLOYEE'S SALARY. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER. PATRONAGE DIVIDENDS Form 990, Part VIII, Line 2 PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. ACCOUNTING SYSTEM Form 990, Part IX THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE(RUS). THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE WILL BREAK OUT SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 WILL BE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. RECONCILIATION OF WAGES PER RETURN TO FORM W-3 Form 990, Part IX, Lines 5-7 SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. IN AN EFFORT TO EXPLAIN WHY THE AMOUNTS REPORTED ON LINES 5-7 DO NOT AGREE TO THE W-3 THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $1,818,629 LESS DIRECTORS FEES REPORTED ON 1099-MISC (94,185) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (68,264) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 35,316 PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 883,892 RECONCILIATION TO W-3 $2,575,388 BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL Form 990, Part IX, Line 24 THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS ADMINISTRATIVE AND GENERAL EXPENSE ON FORM 990, PART IX, LINE 24. OUTSIDE SERVICES EMPLOYED $123,078 INSURANCE 90,793 MAINTENANCE OF GENERAL PLANT 245,263 REGULATORY COMMISSION EXPENSE 774 MISCELLANEOUS GENERAL EXPENSE 76,267 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $536,175 TO PROVIDE DETAIL REGARDING OTHER EXPENSES Form 990, Part IX, Line 24f THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24F INTERNET EXPENSE 279,409 TELEPHONE COMMUNICATIONS EXPENSE 621 RADIO EXPENSE 79 SECURITY SYSTEM EXPENSE 18,592 SALES EXPENSE 90,435 TAX EXPENSE - OTHER 347,079 TOTAL OTHER EXPENSES PER FORM 990, LINE 24F $736,215 Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: NET CHANGE IN MEMBERSHIPS 30,067. RETIREMENT OF PATRONAGE CAPITAL -1,071,567. Total to Form 990, Part XI, Line 5: -1,041,500. AUDIT COMMITTEE Form 990, Part XII, Line 2c THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR.