2024-09-06T11:58:35-07:00 2023-12-31 990 2023-01-01 314329510 UNION RURAL ELECTRIC CO-OP INC UNIO 9376421826 15461 US Highway 36 Marysville OH 43040 David Speicher CFO 9376421826 2024-08-15 1 2023 2024-08-08 14:25:15Z Anthony P Smith 15461 US Highway 36 Marysville OH 43040 66942142 0 X ure.com X 1936 OH Our mission is to make a difference in our community by delivering safe and reliable energy to our members at fair prices. 7 7 48 0 0 0 0 0 60854003 60893578 24446 29442 2298092 6010245 63176541 66933265 73101 105743 3509544 3289204 835249 821921 0 0 0 58821510 59273033 63239404 63489901 -62863 3443364 111821827 115149437 56552570 55834802 55269257 59314635 Our mission is to make a difference in our community by delivering safe and reliable energy to our members at fair prices. 0 0 63489901 The cooperative distributes electricity and natural gas to its member/owners and also constructs and mantains facilities to carry out this purpose. Served approximately 12,000 members in the reporting year. 0 0 0 63489901 0 0 0 0 0 0 0 0 1 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 0 0 0 0 0 0 1 0 0 1 44 0 1 48 1 0 0 0 0 0 0 0 0 0 61511671 5509493 0 0 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 0 1 1 1 1 1 0 X X David G Speicher 9376421826 15461 US Highway 36 Marysville OH 43040 X Anthony P Smith President/CEO 45 0 X 247982 0 196191 David G Speicher VP Finance/CFO 45 0 X 176258 0 112565 Michael C Aquillo CXO 40 0 X 171503 0 85447 Matthew J Zarnosky COO 45 0 X 172706 0 75083 Sean T Luellen Crew Leader 46 0 X 134599 0 60269 Benjamin A Hoyer Crew Leader 49.69 0 X 129047 0 52476 Steve Lentz Director of Information Technology 45 X 134063 0 44682 William D'Onofrio Former Trustee 0 0 X 50393 0 0 Dale Scheiderer Trustee, Treasurer 3.05 0 X X 12975 0 0 Steve Patton Trustee, Chairman 2.81 1.2 X X 12975 0 0 Jeffrey Reinhard Trustee, Secretary 3.11 0 X X 12975 0 0 David Thornton Trustee 2.9 0 X 12675 0 0 Mark Lotcyz Trustee 3.36 0 X 12650 0 0 Dan Westlake Trustee, Vice Chairman 2.18 0 X X 12375 0 0 Jeffrey Wilson Trustee 2.52 0 X 0 0 12300 1293176 0 639013 18 1 1 0 New River Electrical Corp 15 Cloverdale Place Cloverdale VA 24077 Electric Utility Construction 1857402 Rahrig Tree Co Inc 18678 CR 20 Forest OH 45843 Right-of-way Clearing 523191 Kent Power Inc 7800 Childsdale Ave NE Rockford MI 49341 Substation Construction 419440 National Information Solutions Co One Innovation Circle Lake St Louis MO 63367 Software Support 228121 Parkline Building Systems 328 Industrial Drive Eleanor WV 25070 Substation Construction 112204 8 X 0 0 0 0 0 0 0 0 Electric Revenue 221000 58722705 58722705 0 0 Gas Revenue 221000 1759257 1759257 0 0 Pole Attachments 221000 239778 239778 0 0 Forfeited Discounts 221000 147668 147668 0 0 Other Electric Services 221000 7160 7160 0 0 17010 17010 0 0 60893578 26442 26442 0 0 0 0 0 0 0 0 0 0 0 0 0 3000 0 0 0 3000 3000 3000 0 0 0 9367 8877 490 490 0 0 Patronage Capital Credits 221000 2513142 2513142 0 0 Outside Electrical Services 221000 -3614 -3614 0 0 Territory Ceded 221000 3500000 3500000 0 0 227 227 0 0 6009755 66933265 66933265 0 0 X 98243 98243 7500 7500 3289204 3289204 821921 821921 1825330 1825330 0 0 0 0 0 0 3257401 3257401 0 0 0 0 Cost of Purchased Power 42851745 42851745 0 0 Distribution Expense-Operations 3359795 3359795 0 0 Distribution Expenses-Maintenance 1890953 1890953 0 0 Administrative and General 3058539 3058539 0 0 3029270 3029270 0 0 63489901 63489901 0 0 288697 293578 57266 85464 5594878 5676076 3281872 3699219 365452 273309 111427383 36873815 72397647 74553568 29836015 30568223 111821827 115149437 8046633 8460132 2490875 2330458 40413408 39865425 3800000 3300000 1801654 1878787 56552570 55834802 X 0 0 959966 1016463 54309291 58298172 55269257 59314635 111821827 115149437 X 3443364 0 0 0 0 602014 X 0 1 X 1 0 57266 28650 7663 7500 0 614 85465 71421 1125 -7707 7000 0 573 57266 68796 900 8412 6000 0 687 71421 68375 200 5341 4500 0 620 68796 60997 1900 10626 4500 0 648 68375 1 0 0 1 0 0 1247488 1247488 0 9708930 5370813 4338117 0 0 0 0 0 5378939 4629641 749298 0 95092026 26873361 68218665 74553568 0 C 0 C 0 Pat Cap Buckeye Power 27071678 C Pat Cap Cooperative Finance 1203512 C Homestead Funds 712365 C CFC Capital Term Certificates 543770 C Buckeye Power Association 416969 C Pat Cap Federated Rural Electric Insurance Exchange 223346 C Pat Cap United Utility Supply 233038 C Pat Cap National Information Solutions Cooperative 88728 C Pat Cap National Rural Telecommunications Cooperative 53977 C Pat Cap CoBank 14948 C Pat Cap Cooperative Response Center 5892 C 30568223 FAS 106 Accumulated Provision for Pension/Benefits 1000564 Consumer Deposits 165858 Homestead Pension 712365 1878787 X 66933265 0 0 0 0 0 66933265 0 0 0 66933265 60200696 0 0 0 0 0 60200696 0 3289205 3289205 63489901 Schedule D, Part V, Line 4 Schedule D, Part V, Line 4-The cooperative has a scholarship fund that awards grants to high school seniors for the purpose of assisting with post-high school educational funding. The fund was initially set up from the voluntary transfer of membership fees at the time the cooperative ceased to require membership fees. The funds are held in a trust managed by the cooperative and held by the Union County Foundation Schedule D, Part X, Line 2 "The Cooperative presently discloses or recognizes income tax positions based on management's estimate of whether it is reasonably possible or probable, respectively, that a liability has been incurred for unrecognized income tax benefits. Interest and penalties would be recorded as operating expenses when they are incurred." Schedule D, Part XII, Line 4b Margins to be allocated in the subsequent year 1 Community Foundation of Union County Inc 125 N Main St Marysville OH 43040 310628641 501(c)(3) 27000 Contribution to youth scholarship fund housed at Community Foundation of Union County, Inc Union County Fair 845 North Main St Marysville OH 43040 314443901 501(c)(3) 10000 Capital campaign to build and improve buildings on the fairgrounds Union County Junior Fair c/o Breeders World 6014 State Route 113 Bellevue OH 44811 273397989 501(c)(3) 7217 Grand total of winning bids of livestock and other fair projects by children and youth Union County Chamber of Commerce 227 E 5th St Marysville OH 43040 311373275 501(c)(3) 7050 Cash donations to sponsor various community activities within Union County Richwood Junior Fair Livestock c/o Richwood Bank 28 N Franklin St Richwood OH 43344 811103321 501(c)(3) 6100 Grand total of winning bids of livestock and other fair projects by children and youth Miscellaneous Under 5000 Dollars 40876 Misc Community Support 5 0 High school seniors whose parents are members of the cooperative are invited to apply for college scholarships that are funded by a trust managed by the cooperative and held at the Union County Foundation. Grants are awarded based on the student's application and an interview. 5 7500 Schedule I, Part I, Line 2 Grants are provided to local organizations that benefit, entertain, educate, and enrich the lives of the community. Grantees are required to submit an application describing the use of the funds. Being a small community, the cooperative is able to observe and interact with officials of the grantee organizations to monitor the use of grant funds. X 1 1 X X X 0 0 0 Anthony P Smith President/CEO 247982 0 0 0 0 0 158664 0 35178 0 441824 0 David G Speicher VP Finance/CFO 161954 0 0 0 14304 0 80417 0 35886 0 292561 0 Michael C Aquillo CXO 149545 0 0 0 21958 0 58779 0 30406 0 260688 0 Matthew J Zarnosky COO 142706 0 0 0 30000 0 43664 0 35455 0 251825 0 Sean T Luellen Crew Leader 121024 0 0 0 13575 0 31001 0 31869 0 197469 0 Benjamin A Hoyer Crew Leader 116451 0 0 0 12596 0 16771 0 38225 0 184043 0 Steve Lentz Director of Information Technology 104063 0 0 0 30000 0 32163 0 15502 0 181728 0 William D'Onofrio Former Trustee 50393 0 0 0 0 0 0 0 0 0 50393 0 50393 Schedule J, Part I, Line 1a The cooperative has a wellness program which allows all full-time employees to be reimbursed, once per calendar year, as a taxable fringe benefit, up to $300 paid toward the reimbursement at a health club or exercise facility or toward qualified home exercise equipment Form 990, Part VI, Section A, Line 6 The cooperative has approximately 12,000 member/owners Form 990, Part VI, Section A, Line 7a Every member/owner has one vote for cooperative trustees. Each of the trustees serve 3 year terms and must live within a defined district. Once elected, trustees represent all member/owners, therefore member/owners are not limited to voting for the trustee representing only their district. Form 990, Part VI, Section A, Line 7b Elected trustees make decisions concerning governance of the cooperative on behalf of the member/owners. However a change to the bylaws is subject to a vote by the member/owners Form 990, Part VI, Section B, Line 11b The Form 990 is distributed to the trustees in its entirety for their review. The form is then discussed at a regularly scheduled board meeting, after which corrections and/or adjustments are made if necessary. Form 990, Part VI, Section B, Line 12c The conflict of interest policy states that trustees and employees are required to discuss any potential conflict of interest issues with the CEO as they arise. Form 990, Part VI, Section B, Line 15 The wage and salary structure for all positions at the cooperative is compiled annually by an independent 3rd party contractor. The salary structure is then reviewed and approved by the board of trustees annually. Form 990, Part VI, Section C, Line 19 Code of Regulations and Articles of Incorporation are available to the public in the lobby of our office at 15461 US Highway 36, Marysville, Ohio. The conflict of interest policy is also available upon request. Audited financial statements are available for viewing on the cooperative's website under URL https://ure.com/wp-content/uploads/URE-Audited-Financial-Statements-Dec-2023-and-2022.pdf Form 990, Part VII, Section A, Line 1a Retired Trustee D'Onofrio deferred a portion of his income during the years he served on the cooperative's board. Those amounts were reported in previous Form 990s in the years earned. The deferred income has been included as an asset of the cooperative as well as a liability. The amount reported in Part VII as reportable compensation to Trustee D'Onofrio was paid out of his deferred compensation balance. Form 990, Part VIII, Line 11a 11b 11c During 2023, the Cooperative entered into an agreement with a third party related to a load within its electric service territory. The Cooperative ceded the right to provide service to the load in exchange for a lump sum payment of $3,500,000, which represented the present value of the projected margins over the next 20 years. Form 990, Part IX, Line 4 "Benefits paid to or for members" is for patronage dividends paid to members and is interpreted to mean current year margins to be allocated to members in the following year in accordance with the cooperative's bylaws. This is not an expense according to Generally Accepted Accounting Principles and was not recorded as an expense on the books of the cooperative in either the prior year or the current year. This is a reconciling item between book net income and tax net income on Schedule D, Part XII, Line 4b. Form 990, Part IX, Line 24a - 24d Many of the expenses listed on these lines have been spread over many expense accounts according to their function and are included in expenses categorized by function. Form 990, Part XI, Line 9 Other changes in net assets or fund balances include: 1)Margins to be allocated in the following year ($3,289,204 increase), 2) Capital Credit retirements ($2,750,651 decrease), 3) Capital credits forfeited back to the cooperative ($5,028 increase), 4) Escheat process ($62,862 increase), 5) Changes to Post Retirement Benefit Fund including actuarial gain ($32,627 decrease), 6)Youth scholarships paid out ($7,500 decrease), 7)Change in Equity of Scholarship Fund ($35,698 increase) Security Plus Inc 15461 US Highway 36 Marysville OH 43040 311634906 Inactive OH N/A C 100 100 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Schedule R, Part IV Security Plus Inc is a wholly owned subsidiary of the cooperative. In the past, this entity engaged in sales of power quality equipment, sales of security systems, and has been an internet service provider (ISP). Since 12/31/2008, the subsidiary has been dormant with no assets. This subsidiary is dissolved as of 12/31/2023.