2024-11-15T12:42:16-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 910361270 PENINSULA LIGHT COMPANY PENI 2538575950 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 JAFAR TAGHAVI CEO 2538575950 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-14 X 2023 2024-10-15 13:58:12Z JAFAR TAGHAVI 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 66213493 0 X WWW.PENLIGHT.ORG X 1925 WA TO PROVIDE ELECTRICITY AND WATER TO MEMBERS AND OPERATING THE COMPANY IN A MANNER CONSISTENT WITH THE PURPOSE OF THE MUTUAL CORPORATION. 9 9 89 0 0 0 0 0 64920598 63293574 280685 2337432 933452 554121 66134735 66185127 0 0 0 0 8280323 9951451 0 0 0 52014614 48947155 60294937 58898606 5839798 7286521 209146749 211233014 38889309 34750753 170257440 176482261 ALL ACTIVITIES ARE THE RESULT OF PROVIDING ELECTRICITY AND WATER TO MEMBERS AND OPERATING THE COMPANY IN A FISCALLY RESPONSIBLE MANNER CONSISTENT WITH THE PURPOSE OF THE MUTUAL CORPORATION. 0 0 SALE AND DISTRIBUTION OF ELECTRICITY TO MEMBERS ON A MUTUAL BASIS. THERE WERE 33,300 ACTIVE ELECTRIC SERVICES AT YEAR END. SALE AND DISTRIBUTION OF WATER TO MEMBERS ON A MUTUAL BASIS. THERE WERE 3,200 ACTIVE WATER SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 30 89 89 1 0 0 0 0 0 64107034 2508159 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X DANA HANCOCK CBO 2538575950 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 X SCOTT JUNGE PRESIDENT 6.00 X X 36750 0 0 L PAUL ALVESTAD DIRECTOR 20.00 X 36500 0 0 SIGNO UDDENBERG DIRECTOR 6.00 X 36050 0 0 DEBRA ROSS VICE PRESIDENT 6.00 X X 35500 0 0 ERIN GATHERUM DIRECTOR 4.61 X 31450 0 0 MARC JORGENSON TREASURER 6.00 X X 31250 0 0 JIM SMALLEY SECRETARY 5.00 X X 31050 0 0 NICK MARKOVICH DIRECTOR 5.00 X 30550 0 0 ROGER SPADONI DIRECTOR 6.50 X 27800 0 0 JAFAR TAGHAVI CEO 40.00 X 757803 0 51720 DANA HANCOCK CBO 40.00 X 180569 0 99585 AMY GRICE COO 40.00 X 188761 0 70490 ANDY SORENSEN WORKING FOREMAN 40.00 X 260538 0 49601 RICKY SCHROEDER WIRE FOREMAN 40.00 X 195887 0 108592 BRIAN WAHTO JOURNEYMAN LINEMAN 40.00 X 229258 0 69438 JASON EDLUND JOURNEYMAN LINEMAN 40.00 X 209411 0 46654 RICHARD HART JOURNEYMAN LINEMAN 40.00 X 192621 0 24950 2511748 0 521030 38 0 1 0 EQUIPMENT EXPERTS INC 2704 104TH ST CT S BLDG K LAKEWOOD WA 98499 FLEET MAINTENANCE 1350917 ASPLUNDH TREE EXPERT CO 708 BLAIR MILL ROAD WILLOW GROVE PA 19090 TREE TRIMMING/VEGETATION MANAGEMENT 971486 PRAECE CONSULTING 25 16TH ST NE STE B AUBURN WA 98002 ENGINEERING CONSULTING SERVICES 701632 GREENFIELD SERVICES PO BOX 73097 PUYALLUP WA 98375 VACCUM TRUCK SERVICES 517966 RCE TRAFFIC CONTROL INC 2525 SE SEDGWICK RD PORT ORCHARD WA 98366 FLAGGING SERVICES 462092 16 X SALES OF ELECTRICITY 221000 60992957 60992957 WATER SALES 221000 1655154 1655154 SERVICE FEES 221000 403817 403817 PATRONAGE DIVIDENDS 221000 146779 146779 OTHER PROGRAM REVENUE 221000 94867 94867 63293574 2177374 1507000 670374 28800 0 28800 28800 28800 188424 28366 160058 160058 160058 POLE ATTACHEMENT INCOME 221000 512111 512111 MISC NON-OPERATING REVENUE 221000 13210 13210 525321 66185127 64973842 0 1211285 X 1645828 5584358 1207563 973103 540599 1431911 8626540 PURCHASED POWER 23913986 DISTRIBUTION EXPENSE 6645818 OPERATING TAXES 3224250 ADMIN & GENERAL EXPENSE 3154787 1949863 58898606 X 2351487 390942 10291885 10566881 8878985 8786807 2709698 3159227 766657 778853 235738589 101775389 129702810 133963200 49774964 49735890 4670263 3851214 209146749 211233014 6791075 5224732 32098234 28974618 0 551403 38889309 34750753 X 3262750 3258200 1035062 1040812 165959628 172183249 170257440 176482261 209146749 211233014 X 7286521 -1061700 X X 0 1 X 1 0 3973173 3973173 7509476 5604089 1905387 212709444 96171300 116538144 11546496 11546496 133963200 PATRONAGE CAPITAL - CFC 1668386 C PATRONAGE CAPITAL - NISC 6944 C PATRONAGE CAPITAL - NRTC 1415 C PATRONAGE CAPITAL - FEDERATED 319606 C CAPITAL TERM CERTIFICATES - CFC 1176828 C HARVEST WIND PROJECT - EQUITY INTEREST 15269516 C OTHER INVESTMENTS 69364 C INVESTMENT IN PLC ENERGY 31223831 C 49735890 CUSTOMER SECURITY DEPOSITS 114185 ACCURED OPERATING TAXES 424058 OTHER LIABILITIES 13160 551403 X PART X, LINE 2: PLC IS EXEMPT UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE FROM FEDERAL INCOME TAX. ACCORDINGLY, NO PROVISION FOR INCOME TAX IS REQUIRED. THE COMPANY HAS ADOPTED THE UNCERTAIN TAX POSITIONS PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED SATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COMPANY IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COMPANY DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% 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. X X X X 0 1 0 JAFAR TAGHAVI CEO 415255 0 332171 0 10377 0 13200 0 38520 0 809523 0 230600 0 ANDY SORENSEN WORKING FOREMAN 260280 0 0 0 258 0 46021 0 3580 0 310139 0 0 0 RICKY SCHROEDER WIRE FOREMAN 195046 0 0 0 841 0 104690 0 3902 0 304479 0 0 0 BRIAN WAHTO JOURNEYMAN LINEMAN 228551 0 0 0 707 0 35656 0 33782 0 298696 0 0 0 DANA HANCOCK CBO 179368 0 0 0 1201 0 65644 0 33941 0 280154 0 0 0 AMY GRICE COO 188761 0 0 0 0 0 33313 0 37177 0 259251 0 0 0 JASON EDLUND JOURNEYMAN LINEMAN 209411 0 0 0 0 0 12777 0 33877 0 256065 0 0 0 RICHARD HART JOURNEYMAN LINEMAN 192621 0 0 0 0 0 0 0 24950 0 217571 0 0 0 PART I, LINE 4B MR. JAFAR TAGHAVI PARTICIPATES IN A SECTION 457(F) NON-QUALIFIED DEFERRED COMPENSATION PLAN. AMOUNTS ACCRUED, VESTED, AND PAID PURSUANT TO THE NQDC PLAN DURING THE YEAR WERE $332,171. ALL SUCH AMOUNTS WERE INCLUDED IN REPORTABLE COMPENSATION AND COVER THE 2020 THROUGH 2023 PLAN YEARS. PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. JAFAR TAGHAVI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,200 TOTAL REPORTED IN COLUMN C $ 13,200 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (-0-) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,200 EXPENSE TO THE COOPERATIVE $ 13,200 ANDY SORENSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,011 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,010 TOTAL REPORTED IN COLUMN C $ 46,021 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,011) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 52,248 EXPENSE TO THE COOPERATIVE $ 56,258 RICKY SCHROEDER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 100,474 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,216 TOTAL REPORTED IN COLUMN C $ 104,690 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (100,474) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 53,181 EXPENSE TO THE COOPERATIVE $ 57,397 BRIAN WAHTO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,058 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,598 TOTAL REPORTED IN COLUMN C $ 35,656 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,058) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,579 EXPENSE TO THE COOPERATIVE $ 29,177 DANA HANCOCK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 58,429 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,215 TOTAL REPORTED IN COLUMN C $ 65,644 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (58,429) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 51,597 EXPENSE TO THE COOPERATIVE $ 58,812 AMY GRICE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,742 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,571 TOTAL REPORTED IN COLUMN C $ 250,661 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,742) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 44,024 EXPENSE TO THE COOPERATIVE $ 51,595 JASON EDLUND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,416 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,361 TOTAL REPORTED IN COLUMN C $ 12,777 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (9,416) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,045 EXPENSE TO THE COOPERATIVE $ 27,406 RICHARD HART: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ -0- LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (-0-) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN -0- EXPENSE TO THE COOPERATIVE $ -0- FORM 990, PART I, LINES 15 & 17: BASED ON THE UNIFORM SYSTEM OF ACCOUNTS UTILIZED BY THE COOPERATIVE, LABOR AND BENEFITS ARE GENERALLY SPREAD AMONG DIFFERENT FUNCTIONAL EXPENSE CATEGORIES. BECAUSE OF THIS ACCOUNTING SYSTEM, THE COOPERATIVE ONLY RECLASSIFIED LABOR AND BENEFITS ASSOCIATED WITH OFFICERS AND KEY EMPLOYEES. HOWEVER, BEGINNING WITH THE CURRENT YEAR, THE COOPERATIVE BEGAN RECLASSIFING ALL LABOR AND BENEFITS THAT ARE EXPENSED IN THE FINANCIAL STATEMENTS. FOR COMPARABILITY PURPOSES, THE COOPERATIVE RECLASSIFIED $5,351,520 OF LABOR AND BENEFITS FROM PART I, LINE 17 TO PART I, LINE 15 FOR THE PRIOR YEAR. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC AND WATER DISTRIBUTION SERVICES ON A MUTUAL BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE COMPANY VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. FORM 990, PART VI, SECTION A, LINE 7B IN ADDITION TO DIRECTOR ELECTIONS, 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. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C HUMAN RESOURCES MONITORS AND ADMINISTERS THE POLICY. SPECIFICALLY, THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COMPANY'S CONFLICT OF INTEREST POLICY, AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 CEO - AN INDEPENDENT CONSULTANT WAS HIRED TO CONDUCT A MARKET SALARY STUDY FOR THE CEO POSITION. THE CONSULTANT REPORTS DIRECTLY TO THE PRESIDENT OF THE BOARD AND THE CHAIRMAN OF THE BOARD COMPENSATION COMMITTEE. THE CEO HAS NO CONTACT OR INTERACTION WITH THE CONSULTANT OR THE BOARD REGARDING THIS PROJECT. THE CONSULTANT REPORTS FINDINGS TO THE ENTIRE BOARD OF DIRECTORS. A QUESTION AND ANSWER SESSION FOLLOWS WHERE THE CONSULTANT ANSWERS SPECIFIC QUESTIONS FROM THE BOARD ABOUT THE COMPARABILITY OF DATE PRESENTED. THE DIRECTORS DELIBERATE BEFORE REACHING THEIR DECISION AS TO COMPENSATION LEVEL FOR THE CEO. THE CHAIRMAN OF BOARD COMPENSATION COMMITTEE INFORMS THE HUMAN RESOURCES DIRECTOR OF ANY COMPENSATION CHANGE AND APPLICABLE EFFECTIVE DATE FOR THE CEO. IN A SEPARATE MEETING WITH THE PRESIDENT OF THE BOARD AND THE CHAIRMAN OF THE BOARD COMPENSATION COMMITTEE, THE CEO IS INFORMED OF ANY CHANGE IN COMPENSATION. OTHER OFFICERS - AN INDEPENDENT CONSULTANT WAS ALSO HIRED TO CONDUCT A MARKET SURVEY AND ESTABLISH A MARKET SALARY FOR FOR ALL EXEMPT MANAGEMENT POSITIONS. THE CONSULTANT REPORTS FINDINGS TO THE HR DIRECTOR. THEY DISCUSS THE DATA COMPARABLES AND SUBSTANTIATION BEHIND IT. THE HR DIRECTOR PRESENTS THIS INFORMATION TO THE CEO. WITH TRAINING PROVIDED BY THE CONSULTANT, AN INTERNAL EQUITY COMPENSATION COMMITTEE, COMPRISED OF A MANAGER FROM EACH DIVISION OF THE COMPANY, PROVIDES INDEPENDENT RECOMMENDATIONS FOR EACH POSITION PLACEMENT WITHIN THE SALARY SCHEDULE. THE CEO AND HR DIRECTOR DISCUSS THE FINAL RECOMMENDATIONS OF THE COMPENSATION COMMITTEE AND ESTABLISH ACTUAL SALARIES PAYABLE BASED ON THE FINANCIAL WHEREWITHAL OF THE COMPANY. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE AVAILABLE UPON WRITTEN REQUEST AT THE COMPANY'S MAIN OFFICER. IN ADDITION, THE COOPERATIVE PROVIDES A TREASURER'S REPORT INCLUDING A FINANCIAL SUMMARY AT THE ANNUAL MEETING. 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. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS 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. 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. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 7,230,186 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (296,900) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (221,795) PLUS: SALARIES & WAGES ALLOCATED TO PURCHASED POWER 327,651 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 1,505,664 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,750,912 TOTAL WAGES ACCRUED AND/OR PAID $10,295,718 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 2,850,876 OFFICE SUPPLIES 285,908 OUTSIDE SERVICES EMPLOYED 290,987 INSURANCE & DAMAGES 233,405 COMMUNITY SERVICE 105,430 UTILITIES 44,641 MISCELLANEOUS GENERAL 223,857 DIRECTORS 656,521 TRAININGS & MEETINGS 134,495 DUES TO ASSOCIATED ORGANIZATIONS 273,843 MAINTENANCE OF GENERAL PLANT 1,213,931 ADVERTISING 23,367 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,337,261 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (296,900) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,005,946) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (879,628) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,154,787 FORM 990, PART IX: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITY SERVICES (RUS) BORROWER, THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: WATER DEPARTMENT OPERATIONS $ 770,840 CONSUMER ACCOUNTS & SERVICE EXPENSE 3,359,214 MISCELLANEOUS NON-OPERATING SALES EXPENSE 103,560 TOTAL OTHER EXPENSE BEFORE RECLASSIFICATIONS $ 4,233,614 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,587,581) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (696,170) TOTAL OTHER EXPENSE PER FORM 990, PART IX $ 1,949,863 FORM 990, PART IX, LINES 12 & 13: THE COOPERATIVE PREVIOUSLY INCLUDED INVESTMENTS IN ASSOCIATED ORGANIZATIONS AND WIND GENERATION, WHICH ARE PROGRAM RELATED, AS A COMPONENT OF "INVESTMENTS - OTHER SECURITIES" ON LINE 12 OF PART X. HOWEVER, FOR THE 2023 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS AS "INVESTMENTS - PROGRAM RELATED" ON LINE 13. TO INCREASE CONSISTENCY, PROGRAM RELATED INVESTMENTS IN THE AMOUNT OF $49,774,964 FOR THE 2022 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 12 TO LINE 13. FORM 990, PART IX, LINES 29 & 30: THE COOPERATIVE PREVIOUSLY INCLUDED MEMBERSHIP FEES AND MEMBER CAPITAL CONTRIBUTIONS RECEIVED ON LINE 30 OF PART X AS "PAID IN CAPITAL". HOWEVER, FOR THE 2023 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS AS "CAPITAL STOCK" DUE TO THE NATURE OF THE MEMBERSHIP FEES ON LINE 29. TO INCREASE CONSISTENCY, MEMBERSHIP FEES IN THE AMOUNT OF $3,262,750 FOR THE 2022 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 30 TO LINE 29. FORM 990, PART XI, LINE 9: BOOK-TAX ADJUSTMENT: EQUITY METHOD INCOME FROM SUBSIDIARY 444,100. NET CHANGE IN MEMBERSHIPS 1,200. BOOK-TAX ADJUSTMENT: DIVIDENDS RECEIVED FROM EQUITY METHOD INVESTMENT -1,507,000. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. PLC ENERGY INC 13315 GOODNOUGH DR NW GIG HARBOR WA 98332 911943365 WHOLESALE ENERGY WA PENINSULA LIGHT COMPANY C -585656 2941993 1.00000 1 HARVEST WIND PROJECT PO BOX 3007 LONGVIEW WA 98632 264679797 WIND FARM WA N/A C 3171600 17792200 0.20000 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 PLC ENERGY INC B 972529 INVOICES & OTHER SUPPORT PLC ENERGY INC O 191757 INVOICES & OTHER SUPPORT HARVEST WIND PROJECT F 1507000 AMOUNTS RECEIVED HARVEST WIND PROJECT P 3078454 INVOICES & OTHER SUPPORT