2024-07-24T16:56:10-05:00 2023-12-31 450250958 EIDE BAILLY LLP 345 N REID PL STE 400 SIOUX FALLS SD 571037034 990 2023-01-01 460151015 NORTHERN ELECTRIC COOPERATIVE NORT 6052250310 PO BOX 457 BATH SD 57427 CHARLENE HAGER CEO 6052250310 2024-07-19 1 CHARLENE HAGER 999009999 1 LAURIE HANSON CPA P00851848 6053391999 2024-07-18 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z CHARLENE HAGER PO BOX 457 BATH SD 57427 30463688 0 X WWW.NORTHERNELECTRIC.COOP X 1941 SD PROVIDE ELECTRICITY TO RURAL AREAS. 9 8 39 0 337 0 0 0 30589856 30083922 100770 220657 28671 40554 30719297 30345133 0 0 3079155 2351957 4244528 4241806 0 0 0 23395614 23751370 30719297 30345133 0 0 102934965 105622160 67796930 69249911 35138035 36372249 X THE PURPOSE OF THE ORGANIZATION OF NORTHERN ELECTRIC COOPERATIVE INCORPORATED IS TO PROVIDE ITS MEMBERS WITH A DEPENDABLE QUALITY AND QUANTITY OF ELECTRICAL ENERGY AT THE LOWEST POSSIBLE RATES CONSISTENT WITH SOUND BUSINESS PRACTICES AND FINANCIAL FEASIBILITY AND TO PROVIDE SUCH OTHER SERVICES THAT WOULD BE DESIRABLE FOR THE BETTERMENT OF ITS MEMBERS. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 6,717 MEMBERS, SERVED 2,505 MILES OF LINES, ADDED/REPLACED 69 MILES OF LINES, AND RETIRED 78 MILES OF LINES. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 29 0 1 39 1 1 1 0 0 0 0 28576376 1142004 0 0 0 X 9 8 0 0 1 0 1 1 1 1 0 0 0 1 1 0 0 1 0 1 1 0 X LORISA RUDOLPH 6052250310 PO BOX 457 BATH SD 57427 X NOLAN WIPF PRESIDENT 5.00 X X 4900 0 32 RONALD KAAZ SECRETARY 5.00 X X 3500 0 32 JOSH LARSON TREASURER 5.00 X X 3200 0 32 FRAN ESSER DIRECTOR 5.00 X 4200 0 32 TODD HETTICH VICE PRESIDENT 5.00 X X 5200 0 32 KIRK SCHAUNAMAN DIRECTOR 5.00 X 3800 0 32 MIKE TRAXINGER DIRECTOR 5.00 X 2800 0 32 WILLIAM HANSEN DIRECTOR 5.00 X 3700 0 32 SCOTT SPERRY DIRECTOR 5.00 X 3900 0 32 CHARLENE HAGER CEO 40.00 X 166266 0 109862 LORISA RUDOLPH CFO 40.00 X 83792 0 37218 DEREK GORECKI IT MANAGER 40.00 X 127466 0 57957 RUSSEL ULMER MEMBER SERVICES MANAGER 40.00 X 122572 0 50175 JEROME WEBER OPERATIONS MANAGER 40.00 X 122005 0 60220 MARTIN NEWMAN LINE FOREMAN 40.00 X 111517 0 27174 STEVEN BECK JOURNEYMAN LINEMAN 40.00 X 103003 0 30152 871821 0 373046 11 0 1 0 SCHMIDT CONSTRUCTION INC 39316 133RD ST BATH SD 57427 PLOWING & TRENCHING 384194 K&H ELECTRIC INC PO BOX 656 LINTON ND 58552 PLOWING & TRENCHING 225807 TREELINE TREE SERVICE INC PO BOX 168 GROTON SD 57445 TREE TRIMMING 175132 POWER SYSTEM ENGINEERING INC 2424 RIMROCK ROAD SUITE 300 MADISON WI 53713 ENGINEERING SERVICES 173417 LARSON DIGGING INC 601 LINCOLN AVE NW HURON SD 57350 PLOWING & TRENCHING 164169 7 SALE OF POWER 221000 28035891 28035891 CAPITAL CREDITS 221000 1841099 1841099 OTHER OPERATING 221000 206556 206556 376 376 30083922 213582 213582 2460 41208 0 20151 2460 21057 23517 21057 2460 7075 0 7075 7075 7075 115441 98404 17037 16700 337 30345133 30121679 337 223117 X 2351957 438638 2826381 739856 236931 1943174 2869938 COST OF POWER 17891677 ADMIN & GENERAL 1702482 DISTRIBUTION-MAINTENANC 1563665 DISTRIBUTION-OPERATIONS 373216 -2592782 30345133 7103425 3602434 3141996 3033074 464 77 2971810 2869809 142924 300092 98675432 26475171 67075293 72200261 486902 510800 21788366 22893973 223785 211640 102934965 105622160 3331627 3058678 1607983 1575858 62695498 64435780 161822 179595 67796930 69249911 X 0 0 0 0 35138035 36372249 35138035 36372249 102934965 105622160 X 0 1234214 X 0 1 X 1 0 49143 49143 3014991 1371733 1643258 93811768 25103438 68708330 1799530 1799530 72200261 EAST RIVER ELECTRIC POWER COOPERATIVE, INC. 22276485 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP. 238393 C CAPITAL TERM CERTIFICATES 377045 C OTHER INVESTMENTS 2050 C 22893973 CUSTOMER DEPOSITS 179595 179595 X 30345133 0 30345133 0 30345133 27993176 0 27993176 2351957 2351957 30345133 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND IS REQUIRED ANNUALLY TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE IRS. HOWEVER, THE COOPERATIVE IS SUBJECT TO TAX ON UNRELATED BUSINESS INCOME. THE COOPERATIVE WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF SUCH INTEREST AND PENALTIES ARE INCURRED. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF MARGINS TO MEMBERS 2,351,957. X X 0 0 0 CHARLENE HAGER CEO 159781 0 0 0 6485 0 76841 0 40899 0 284006 0 0 0 DEREK GORECKI IT MANAGER 125844 0 0 0 1622 0 43717 0 18997 0 190180 0 0 0 JEROME WEBER OPERATIONS MANAGER 117466 0 0 0 4539 0 34234 0 33181 0 189420 0 0 0 RUSSEL ULMER MEMBER SERVICES MANAGER 121047 0 0 0 1525 0 36413 0 15982 0 174967 0 0 0 SCHEDULE J, PART II, COLUMN C AS REQUIRED PER THE INSTRUCTIONS OF FORM 990 AND SCHEDULE J, THE AMOUNT REPORTED IN SCHEDULE J COLUMN C INCLUDES THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN RATHER THAN THE EXPENSE ON THE BOOKS OF THE COOPERATIVE. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR CHARLENE HAGER IS $68,170, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $41,370. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR DEREK GORECKI IS $37,369, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $30,286. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR RUSSEL ULMER IS $30,399, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $28,695. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR JEROME WEBER IS $28,015, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $20,309. WILLIS WIPF FATHER OF BOARD PRESIDENT VALUE ADDED LOAN X 3500 77 0 1 1 77 FORM 990, PART VI, SECTION A, LINE 4 THE FOLLOWING CHANGES WERE MADE TO THE AMENDED BYLAWS: -THE LIMIT ON THE NUMBER OF YEARS A DIRECTOR MAY SERVE ON THE BOARD CHANGED FROM 9 YEARS TO 15 YEARS. -A PROVISION WAS ADDED TO THE QUALIFICATIONS OF DIRECTORS STATING THEY MAY NOT HAVE THE CAPACITY TO ENTER INTO LEGALLY BINDING CONTRACTS. -THE TITLE OF GENERAL MANAGER WAS CHANGED TO CHIEF EXECUTIVE OFFICER. FORM 990, PART VI, SECTION A, LINE 6 GENERAL MEMBERSHIP - MEMBERS ARE RURAL ELECTRIC CUSTOMERS AND MAY HOLD NO MORE THAN ONE MEMBERSHIP IN THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER HAS THE RIGHT TO PLACE ONE VOTE ON ITEMS BROUGHT TO THE MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7B THE BYLAWS MAY BE ALTERED, AMENDED OR REPEALED BY THE MEMBERS AT ANY REGULAR OR SPECIAL MEETING. ALSO, ENCUMBERING A SUBSTANTIAL PORTION OF ITS PROPERTY (SELL, LEASE OR OTHERWISE DISPOSE OF PROPERTY) TO OTHERS REQUIRES AN AFFIRMATIVE VOTE OF NOT LESS THAN TWO-THIRDS OF ALL MEMBERS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT REVIEWS THE FORM 990. A COPY OF FORM 990 IS PROVIDED TO THE BOARD PRIOR TO ITS FILING. FORM 990, PART VI, SECTION B, LINE 12 THE BYLAWS CONTAIN LANGUAGE WHICH ADDRESSES CONFLICTS OF INTEREST. BOARD MEMBERS ARE EXPECTED TO NOTIFY THE BOARD OF DIRECTORS IF A POSSIBLE CONFLICT MAY EXIST. HOWEVER, THERE IS NO FORMAL MONITORING OF COMPLIANCE WITH THE POLICY. DUE TO THE SIZE OF THE COMMUNITY AND COOPERATIVE, RELATIONSHIPS ARE VERY TRANSPARENT. AS SUCH, THE COOPERATIVE BELIEVES POTENTIAL CONFLICTS WOULD BE EASILY IDENTIFIED. ANNUALLY THE DIRECTORS, CEO, AND CFO ARE REQUIRED TO FILL OUT A QUESTIONNAIRE TO IDENTIFY POTENTIAL RELATIONSHIPS WITH INTERESTED PARTIES. FORM 990, PART VI, SECTION B, LINE 15 NORTHERN ELECTRIC COOPERATIVE UTILIZES NATIONAL, STATE, AND REGIONAL WAGE SURVEYS FOR RURAL ELECTRIC UTILITIES. THE BOARD OF DIRECTORS DISCUSSES AND DETERMINES THE COMPENSATION AMOUNT FOR THE CEO BASED ON INFORMATION PROVIDED BY THE WAGE SURVEYS. THE BOARD OF DIRECTORS AND CEO DISCUSS AND DETERMINE THE COMPENSATION AMOUNT FOR THE CFO BASED ON INFORMATION PROVIDED BY THE WAGE SURVEYS. THE PROCESS WAS LAST UNDERTAKEN DURING 2023. FORM 990, PART VI, SECTION C, LINE 19 AVAILABLE UPON REQUEST AT COMPANY HEADQUARTERS. 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 CEO, CFO, AND HIGHEST COMPENSATED EMPLOYEES. 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. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 5-10 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. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: THE COOPERATIVE HAS INTERPRETED THE INSTRUCTIONS TO PART IX, LINE 4, TO MEAN PATRONAGE CAPITAL ALLOCATED FOR THE YEAR, RATHER THAN PATRONAGE CAPITAL RETIRED. THIS IS CONSISTENT WITH THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -1,117,743. ALLOCATION OF 2023 MARGINS IN 2024 2,351,957. NORTHERN WIRELESS COMMUNICATIONS INC PO BOX 457 BATH SD 57427 460398139 INACTIVE SD NORTHERN ELECTRIC COOPERATIVE C 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0