2024-10-03T16:08:55-05:00 2023-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2023-01-01 410363020 LAKE REGION ELECTRIC COOPERATIVE LAKE 2188631171 PO BOX 643 PELICAN RAPIDS MN 565720643 TIM THOPMSON CEO 2188631171 2024-10-01 1 0 MATT LAUGHLIN P00014168 7017754685 2024-10-01 2023 2024-10-15 13:58:12Z TIM THOPMSON PO BOX 643 PELICAN RAPIDS MN 565720643 58277744 0 X WWW.LREC.COOP X 1937 MN TO PROVIDE OUR MEMBERS WITH SAFE, RELIABLE, AFFORDABLE ELECTRICITY, AND LEAD BY OFFERING INNOVATIVE ENERGY SERVICES TO GROW THE COOPERATIVE. 9 8 81 0 98244 3012 0 0 54799770 54209273 322844 738401 1353052 2279817 56475666 57227491 0 135679 3050784 3131037 615525 929321 0 0 0 52534012 52577057 56200321 56773094 275345 454397 146470686 151594900 79061674 82436267 67409012 69158633 TO PROVIDE OUR MEMBERS WITH SAFE, RELIABLE, AFFORDABLE ELECTRICITY, AND LEAD BY OFFERING INNOVATIVE ENERGY SERVICES TO GROW THE COOPERATIVE. 0 0 ELECTRICITY DISTRIBUTION - DISTRIBUTES ELECTRICITY TO 29,950 MEMBERS IN ITS 5,875 MILES OF LINES WITHIN THE SERVICE TERRITORY. ETS HEATING (STEFFES)/WATER HEATERS/GENERATORS AND GOWEST SOLAR SYSTEMS - MEMBERS ABLE TO PURCHASE STEFFES ETS HEATERS/WATER HEATERS, GENERATORS, AND GOWEST SOLAR SYSTEMS THROUGH AN EASY PAY PURCHASE PROGRAM, THEN BILLED EACH MONTH ON ELECTRIC BILL. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 374 0 1 81 1 1 1 0 0 0 0 54709273 3167793 0 0 0 X 9 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 0 X X AMANDA FULLER 2188631171 1401 S BROADWAY PELICAN RAPIDS MN 56572 CHARLIE BLIXT DIRECTOR 3.19 X 12090 0 0 MICHAEL BRASEL DIRECTOR 1.92 X 10600 0 0 JIM GRONBECK DIRECTOR (STARTED 4/25/23) 3.07 X 9170 0 0 CECIL HENSEL SECRETARY/TREASURER 2.23 X 11890 0 0 THOMAS JENNEN CHAIRMAN 2.73 X X 15840 0 0 KURT KRUEGER VICE CHAIR 2.04 X X 13790 0 0 PATRICK MEYERS DIRECTOR 1.75 X 10610 0 0 GARY OLSON DIRECTOR 1.63 X 10970 0 0 EARL RYDELL DIRECTOR 5.06 X 13490 0 0 SIDNEY WISNESS VICE CHAIR (TERMED 4/25/23) 5.88 X X 5630 0 0 TIM THOMPSON CEO 45.00 X 322815 0 155079 AMANDA FULLER VICE PRESIDENT OF FINANCE/CFO 45.00 X 116379 0 22317 AL FAZIO VICE PRESIDENT OF ENGINEERING/OPERATIONS 45.00 X 164880 0 85647 DYLAN AAFEDT VICE PRESIDENT OF BUSINESS SOLUTIONS 45.00 X 155965 0 26073 JASON HAMAN LEAD JOURNEYMAN LINEWORKER 47.85 X 137790 0 67386 DONALD HANSON LEAD JOURNEYMAN LINEWORKER 49.14 X 137767 0 57870 PAUL BERGREN SUPERINTENDENT - PELICAN RAPIDS 45.00 X 137723 0 75202 TIM HART ELECTRONICS SYSTEM SUPERVISOR 51.76 X 121344 0 60242 1408743 0 549816 25 0 1 0 CARR'S TREE SERVICE INC 307 STATE HWY 78 N OTTERTAIL MN 56571 TREE CLEARING 2055194 PETERSON MECHANICAL INC 3001 1ST AVE N FARGO ND 58102 INSTALL NEW HVAC SYSTEM 1646936 RIPLEY'S INC 36322 US HWY 59 ERHARD MN 56534 PLOWING/BORING FOR UNDERGROUND CABLE 392321 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE ROAD PAYNESVILLE MN 56362 POLES, WORK ORDER, OUTAGE RESTORATION 298708 ARVIG CONSTRUCTION INC 150 2ND ST SW PERHAM MN 56573 PLOWING/BORING/CONTRACT WORK FOR PLANT 196700 7 SALE OF POWER 221000 54209273 54209273 54209273 661866 661866 76535 0 76535 76535 76535 1148497 1050253 98244 98244 CAPITAL CREDITS 900099 2175919 2175919 MISCELLANEOUS 900099 5654 5654 2181573 57227491 56390846 98244 738401 X 135679 3131037 929321 1969697 4791153 COST OF POWER 34429002 DISTRIBUTION EXPENSE 6899025 ADMIN AND GENERAL 2011032 CONSUMER ACCOUNTS 1329401 1147747 56773094 2005489 1511867 1427170 2000000 5961300 5622426 666226 2392484 2211818 1857573 1554942 162859812 61422671 95981860 101437141 701635 7657954 35167308 28765687 2107 2107 973760 164732 146470686 151594900 6998839 7595216 3806028 2593886 628 67780317 70528879 476490 1717658 79061674 82436267 X 0 0 0 0 67409012 69158633 67409012 69158633 146470686 151594900 X 454397 1295224 X X 0 1 X 1 0 0 1 X 435809 435809 11255402 4842439 6412963 148392542 56580232 91812310 2776059 2776059 101437141 INVESTMENT IN SUBSIDIARY COMPANY 5702003 C PARTNERSHIP INVESTMENT 1955951 C 7657954 GRE CAPITAL CREDITS 23090015 C CFC CAPITAL CREDITS 712428 C CFC CAPITAL TERM CERTIFICATES 980309 C CFC MEMBER CAPITAL SECURITIES 2600000 C FEDERATED RURAL ELECTRIC INSURANCE COMPANY 357464 C OTHER INVESTMENTS 1025471 C 28765687 ACCUMULATED PROVISION FOR PENSION & BENEFITS 164732 CONSUMER DEPOSITS 352907 DEFERRED SPECIAL EQUIPMENT INSTALL 652116 CONSUMER ADVANCES FOR GENERATORS 142065 CONSUMER ADVANCES FOR SOLAR 122357 CONSTRUCTION ADVANCES 283481 1717658 X PART IV, LINE 2B: THE MEMBERS OF THE COOPERATIVE CAN ELECT TO ROUND UP THEIR MONTHLY ELECTRIC BILL TO THE NEXT DOLLAR. THESE FUNDS COLLECTED FROM THE MEMBERSHIP ARE HELD IN A COOPERATIVE ACCOUNT UNTIL THEY ARE RELEASED TO THE LAKE REGION ELECTRIC TRUST. THESE FUNDS ARE TRANSFERRED DIRECTLY TO THE TRUST ON A MONTHLY BASIS. FUNDS THAT EXIST AT THE END OF THE YEAR ARE A RESULT OF A TIMING DIFFERENCE IN THE RECEIPT OF THE FUNDS AND THE RELEASE OF THEM TO THE TRUST. FOR THE YEAR ENDED DECEMBER 31, 2023, THE ACCOUNT HELD $628. PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE (IRC). LAKE REGION HOLDING COMPANY IS A TAXABLE CORPORATION. NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED AT DECEMBER 31, 2023 AND 2022. THE COOPERATIVE HAS EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2023 AND 2022. 1 LAKE REGION ELECTRIC TRUST PO BOX 643 PELICAN RAPIDS MN 56572 205114301 501(C)(3) 132997 0 CONTRIBUTION OF UNCLAIMED CAPITAL CREDITS 1 PART I, LINE 2: THE COOPERATIVE PAYS OUT ITS UNCLAIMED CAPTIAL CREDITS TO THE LAKE REGION ELECTRIC TRUST, A RELATED ORGANIZATION, FOR DISTRIBUTION TO OTHER CHARITABLE CAUSES. X X X 0 0 0 TIM THOMPSON CEO 264962 0 46319 0 11534 0 122445 0 34704 0 479964 0 0 0 AL FAZIO VICE PRESIDENT OF ENGINEERING/OPERAT 155449 0 6987 0 2444 0 55394 0 31798 0 252072 0 0 0 PAUL BERGREN SUPERINTENDENT - PELICAN RAPIDS 129512 0 5558 0 2653 0 62136 0 14336 0 214195 0 0 0 JASON HAMAN LEAD JOURNEYMAN LINEWORKER 135083 0 1290 0 1417 0 37681 0 30698 0 206169 0 0 0 DONALD HANSON LEAD JOURNEYMAN LINEWORKER 134461 0 1090 0 2216 0 28227 0 30636 0 196630 0 0 0 DYLAN AAFEDT VICE PRESIDENT OF BUSINESS SOLUTIONS 147939 0 6231 0 1795 0 13581 0 13870 0 183416 0 0 0 TIM HART ELECTRONICS SYSTEM SUPERVISOR 118637 0 1140 0 1567 0 25608 0 35546 0 182498 0 0 0 TIM THOMPSON SEE BELOW 3559868 SEE BELOW 0 TIM THOMPSON SEE BELOW 2075848 SEE BELOW 0 MICHEAL BRASEL SEE BELOW 33924838 SEE BELOW 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS (A) NAME OF PERSON: TIM THOMPSON(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: CEO OF LREC AND BOARD MEMBER OF RESCO(D) DESCRIPTION OF TRANSACTION: RESCO IS A MAJOR SUPPLIER TO THE ORGANIZATION OF METERS, TRANSFORMERS, AND LINE MATERIAL.(A) NAME OF PERSON: TIM THOMPSON(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: CEO OF LREC AND BOARD MEMBER OF FEDAC(D) DESCRIPTION OF TRANSACTION: FEDAC IS THE PARENT COMPANY OF CARR'S TREE SERVICE. CARR'S TREE SERVICE ALSO PROVIDES VEGETATION MANAGEMENT TREE CLEARING SERVICES TO LREC. THERE ARE A TOTAL OF 10 COOPERATIVE OWNERS WHO SPLIT PROFITS 9 WAYS,WITH THE LAST 2 COOPERATIVES TO JOIN SPLIT 1/2 SHARE EACH.A) NAME OF PERSON: MICHAEL BRASEL(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER OF LREC AND BOARD MEMBER OF GREAT RIVER ENERGY(D) DESCRIPTION OF TRANSACTION: GREAT RIVER ENERGY IS A NOT-FOR-PROFIT ELECTRIC COOPERATIVE POWER SUPPLIER. LREC PURCHASES POWER FROM GREAT RIVER ENERGY. LREC ALSO MAKES PAYMENT TO GRE FOR SUBSTATION POOL CHARGES, SCADA CHARGES, MNTCE TO RADIO SYSTEMS, ACCESS C&I ACCOUNTS ON WEB. FORM 990, PART VI, SECTION A, LINE 6 ONE CLASS OF MEMBERS AND EACH MEMBER RECEIVES ONE VOTE, EVEN IF THEY HAVE MULTIPLE ELECTRICAL CONNECTIONS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE ORGANIZATION ELECT THE MEMBERS OF THE GOVERNING BODY. ONE CLASS OF MEMBERS AND EACH MEMBER IS ENTITLED TO ONE VOTE. HUSBAND AND WIFE ONLY GET ONE VOTE FOR THEIR JOINT MEMBERSHIP. MEMBERS CAN ONLY VOTE WITHIN THEIR OWN DISTRICT. FORM 990, PART VI, SECTION A, LINE 7B THE BYLAWS MUST BE APPROVED BY A MAJORITY VOTE OF THE MEMBERS. THE FOLLOWING ITEMS MUST BE APPROVED BY TWO-THIRDS VOTE OF ITS MEMBERS: 1) SALE, LEASE OR EXCHANGE OF MORE THAN 25% OF ITS PROPERTY, PRIVILEGES, AND FRANCHISES; 2) MERGE OR CONSOLIDATE INTO ANOTHER ENTITY THAT IS NOT A RURAL ELECTRIC COOPERATIVE ASSOCIATION AND 3) DISSOLUTION OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY INTERNAL ACCOUNTING DEPARTMENT AND THEN PRESENTED TO THE BOARD OF DIRECTORS FOR APPROVAL PRIOR TO BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, EVERY DIRECTOR, OFFICER AND ALL EMPLOYEES MUST COMPLETE AND SIGN A "CONFLICT OF INTEREST DISCLOSURE STATEMENT". THE STATEMENTS ARE REVIEWED BY THE BOARD OF DIRECTORS FOR ALL DIRECTORS AND OFFICERS AND THE STATEMENTS ARE REVIEWED BY THE CEO FOR THE EMPLOYEES. BOARD MEMBERS WITH CONFLICTS ARE ASKED TO ABSTAIN FROM VOTING ON CONFLICTING ISSUES AND THEY ARE ASKED TO LEAVE THE ROOM. POTENTIAL CONFLICT OF INTEREST FOR EMPLOYEES IS DETERMINED BY THE CEO FOR REVIEW AND ACTION IF NECESSARY. ANY CONFLICT OF INTERESTS WILL BE DOCUMENTED IN THE BOARD MINUTES OR THE EMPLOYEE PERSONNAL FILE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS APPROVES THE CEO'S COMPENSATION. NRECA SALARY SURVEY'S ARE USED AS COMPARABILITY DATA AND WRITTEN MINUTES ARE TAKEN WHEN DETERMINING THE CEO'S COMPENSATION. THE CEO'S COMPENSATION WAS LAST REVIEWED IN NOVEMBER 2023. THE BOARD DOES NOT APPROVE SALARIES AND BENEFITS FOR ANY OTHER POSITIONS. THE CEO APPROVES THE COMPENSATION FOR OFFICERS OR KEY EMPLOYEES OF LREC. WAGE RANGES ARE ESTABLISHED USING NRECA SURVEYS, LOCAL MARKET DATA, COST OF LIVING, AND TRENDS IN THE INDUSTRY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, THE CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 4 AS REQUIRED BY FORM 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: PATRONAGE DIVIDENDS ALLOCATED 3,131,037. CAPITAL CREDITS RETIRED -1,795,138. CHANGE IN OTHER EQUITIES -190,455. BOOK TO TAX DIFFERENCE - SUBSIDIARY COMPANY -124,772. BOOK TO TAX DIFFERENCE - PARTNERSHIP INVESTMENT 141,555. DONATED UNCLAIMED CAPITAL CREDITS 132,997. LAKE REGION ELECTRIC TRUST 1401 S BROADWAY PELICAN RAPIDS MN 56572 205114301 TO ACCUMULATE AND DISTRIBUTE FUNDS FOR CHARITABLE AND EDUCATIONAL PURPOSES MN 501(C)(3) LINE 7 LAKE REGION ELECTRIC COOPERATIVE 1 LAKE REGION ELECTRIC HOLDING COMPANY LLC 1401 S BROADWAY PELICAN RAPIDS MN 56572 463931348 HOLDING COMPANY MN LAKE REGION ELECTRIC COOPERATIVE C 706197 5954583 1.00000 1 LAKE REGION ENERGY SERVICES INC 1401 S BROADWAY PELICAN RAPIDS MN 56572 820598903 NATURAL GAS DISTRUBUTION MN LAKE REGION ELECTRIC HOLDING COMPANY LLC C 706197 5954583 1.00000 1 0 1 0 0 0 1 0 0 0 0 0 1 0 1 1 0 0 1 0 LAKE REGION ELECTRIC HOLDING COMPANY LLC F 300000 ACTUAL AMOUNT LAKE REGION ELECTRIC TRUST B 132997 ACTUAL AMOUNT PART IV: LAKE REGION ELECTRIC HOLDING COMPANY, LLC (LREHC) OWNS 100% OF LAKE REGION ENERGY SERVICES, INC (LRES) AND FILES A CONSOLIDATED TAX RETURN WITH LRES. THE AMOUNTS REPORTED IN PART IV FOR INCOME AND ASSETS FOR LREHC ARE THE CONSOLIDATED AMOUNTS AFTER ELIMINATIONS REPORTED ON ITS FORM 1120. THE AMOUNTS REPORTED FOR INCOME AND ASSETS FOR LRES ARE INCLUDED WITHIN THE CONSOLIDATED TOTALS REPORTED FOR LREHC.