2024-11-08T16:37:42-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2023-01-01 410558515 STEELE-WASECA COOPERATIVE ELECTRIC STEE 5074517340 2411 WEST BRIDGE STREET PO BOX 485 OWATONNA MN 55060 SYDNEY BRIGGS GENERAL MANAGER 5074517340 2024-10-24 1 1 KATHERINE LUTZKE CPA P01760889 5072802300 2024-10-24 2023 2024-10-15 13:58:12Z SYDNEY BRIGGS 2411 WEST BRIDGE STREET PO BOX 485 OWATONNA MN 55060 45663597 0 X WWW.SWCE.COOP X 1936 MN COOPERATIVE ELECTRIC UTILITY 9 9 32 0 33932 0 0 0 38282535 43242331 127869 553095 701031 1864647 39111435 45660073 0 0 2426194 5367927 1015153 853343 0 0 0 35670088 39438803 39111435 45660073 0 0 99899632 110810113 53166954 60430381 46732678 50379732 THE MISSION OF STEELE-WASECA COOPERATIVE ELECTRIC IS TO PROVIDE COMPETITIVE, RELIABLE QUALITY SERVICE TO OUR MEMBERSHIP. 0 0 SALE OF ELECTRICITY TO MEMBERS. 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 0 0 0 0 0 0 0 0 0 0 0 0 0 1 22 0 32 1 1 1 0 0 0 0 44153012 1597715 0 0 0 X 9 9 0 0 1 0 1 1 0 1 0 0 0 1 1 1 1 1 1 1 1 0 X JON P STELTER 5074464212 2411 W BRIDGE ST OWATONNA MN 550600485 GARY W WILSON PRESIDENT 8.00 X X 29610 0 0 RODNEY D KRELL VICE-PRES 8.00 X X 31115 0 0 PATRICK J DUCHENE ACTING SEC/TREAS 8.00 X X 30105 0 0 RONALD D SOMMERS SEC/TREAS 8.00 X X 27210 0 0 JOHN R BEAL DIRECTOR 8.00 X 29350 0 0 NEIL R SCHLAAK DIRECTOR 8.00 X 1710 0 0 SCOTT J CARLSON DIRECTOR 8.00 X 19880 0 0 GERALDINE G LIENKE DIRECTOR 8.00 X 29415 0 0 DENNIS C RINGHOFER DIRECTOR 8.00 X 29135 0 0 RENEE MALECHA DIRECTOR THROUGH JUNE 2023 8.00 X 11840 0 0 DUANE R EDWARDSON DIRECTOR THROUGH AUG 2023 8.00 X 19720 0 0 SYDNEY R BRIGGS GENERAL MANAGER 40.00 X 231704 0 95435 JON P STELTER FINANCE MANAGER 40.00 X 142402 0 124712 STEVE E NORDAHL SYSTEM TECHNICIAN 40.00 X 138579 0 57351 KEVIN A KJERSTEN LINE FOREMAN 45.00 X 132175 0 61639 DAN H MEIER OPERATIONS MANAGER 40.00 X 149939 0 80990 CHAD L HENDERSON LINE FOREMAN 45.00 X 136865 0 22742 JACOB D JABLONSKI LINE FOREMAN 45.00 X 130190 0 50169 1320944 0 493038 18 0 1 0 MIDWEST DIVERSIFIED UTILITIES LLC 2875 PERCHERON ROAD WICKENBURG AZ 85390 UNDERGROUND LINE CONTRACTOR 739249 CARR'S TREE SERVICE INC PO BOX 250 OTTERTAIL MN 56571 TREE CLEARING 669335 POWER SYSTEM ENGINEERING INC 1532 W BROADWAY SUITE 100 MADISON WI 53713 ENGINEERING SERVICES 160381 3 SALE OF POWER 221000 43242331 43242331 43242331 547841 547841 8778 3524 5254 5254 5254 CAPITAL CREDITS 990009 1776295 1776295 OTHER MISC INCOME 990009 54420 54420 ELECTRIC WIRING 221000 33932 33932 1864647 45660073 45018626 33932 607515 X 5367927 853343 1049727 3722750 COST OF POWER 28150246 DISTRIBUTION EXPENSE - 2088010 DISTRIBUTION EXPENSE - 1483345 ADMIN AND GENERAL EXPEN 1294967 1649758 45660073 3497042 4356738 4374648 5354009 1026876 782818 1757931 1717450 895036 812527 103140653 36760420 63900122 66380233 24425257 31215271 22720 191067 99899632 110810113 4487448 6208387 40835448 44354880 7844058 9867114 53166954 60430381 X 17346 0 0 0 46715332 50379732 46732678 50379732 99899632 110810113 X 0 3647054 X 0 1 X 1 0 296801 296801 3155268 1600568 1554700 3549746 1843908 1705838 96138838 33315944 62822894 66380233 CAPITAL CREDITS - GRE & CFC 19032687 C CAPITAL TERM CERTIFICATES - CFC 558243 C OTHER INVESTMENTS IN ASSOC ORGANIZATIONS 1083984 C OTHER INVESTMENTS 3040357 C OTHER INVESTMENTS - CFC MTN 7500000 C 31215271 DEFERRED CREDITS 4670129 ACCUM PROVISION FOR PENSION & BENEFITS 5196985 9867114 X 45628569 0 45628569 31504 31504 45660073 40260642 0 40260642 5399431 5399431 45660073 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE (IRC). ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED AT DECEMBER 31, 2023 AND 2022. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAD NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2023 AND 2022. PART XI, LINE 4B - OTHER ADJUSTMENTS: WIRING EXPENSE 31,504. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 5,367,927. WIRING EXPENSE 31,504. X X 0 0 0 SYDNEY R BRIGGS GENERAL MANAGER 231704 0 0 0 0 0 52411 0 43024 0 327139 0 0 0 JON P STELTER FINANCE MANAGER 142402 0 0 0 0 0 83304 0 41408 0 267114 0 0 0 DAN H MEIER OPERATIONS MANAGER 149939 0 0 0 0 0 47537 0 33453 0 230929 0 0 0 STEVE E NORDAHL SYSTEM TECHNICIAN 138579 0 0 0 0 0 33887 0 23464 0 195930 0 0 0 KEVIN A KJERSTEN LINE FOREMAN 132175 0 0 0 0 0 21908 0 39731 0 193814 0 0 0 JACOB D JABLONSKI LINE FOREMAN 130190 0 0 0 0 0 11272 0 38897 0 180359 0 0 0 CHAD L HENDERSON LINE FOREMAN 136865 0 0 0 0 0 20442 0 2300 0 159607 0 0 0 FORM 990, PART VI, SECTION A, LINE 4 APPROVAL OF AMENDED AND RESTATED ARTICLES OF INCORPORATION AND RESTATED BYLAWS REQUIRED APPROVAL BY MEMBERS AND WERE VOTED ON DURING THE ANNUAL MEETING HELD JUNE 6, 2023. SIGNIFICANT CHANGES INCLUDED: TRANSITION FROM A STOCK COOPERATIVE TO A NON-STOCK COOPERATIVE; THE CONVERSION TO A NON-STOCK COOPERATIVE WILL NOT IMPACT WHO IS ELIGIBLE FOR MEMBERSHIP, VOTING RIGHTS OF MEMBERS, CAPITAL CREDIT ALLOCATIONS OR CAPITAL CREDIT RETIREMENT. GOING FORWARD, MEMBERSHIP WILL BE REFLECTED IN THE RECORDS OF THE COOPERATIVE AND MEMBERS WILL NO LONGER BE ISSUED STOCK. JOINT MEMBERSHIP - INDIVIDUALS WHO OTHERWISE ARE ELIGIBLE FOR MEMBERSHIP AND ARE IN A LEGALLY RECOGNIZED RELATIONSHIP WILL BE PERMITTED TO BE JOINT MEMBERS, AND EITHER MEMBER MAY CAST A VOTE FOR THE JOINT MEMBERSHIP. THE AMENDMENTS ALLOW THE BOARD OF DIRECTORS TO CONDUCT MEMBER VOTING BY MAIL OR ELECTRONIC BALLOT TO PROVIDE ADDITIONAL VOTING FLEXIBILITY FOR MEMBERS IN THE FUTURE. REMOVE THE LANGUAGE PERMITTING NOMINATIONS FOR DIRECTOR POSITIONS FROM THE FLOOR AT THE ANNUAL MEETING, AND ADDS A PETITION PROCESS FOR MEMBERS TO MAKE NOMINATIONS FOR DIRECTOR ELECTIONS. THESE AMENDMENTS DO NOT AFFECT THE CURRENT NOMINATING COMMITTEE PROCESS FOR DIRECTOR NOMINATIONS. REMOVE THE SPECIFIC DESCRIPTIONS FROM THE BYLAWS, INSTEAD ALLOWING THE BOARD OF DIRECTORS TO RECONSIDER AND REVISE THE DISTRICTS PERIODICALLY TO ENSURE APPROPRIATE MEMBER REPRESENTATION IN EACH DISTRICT. REVISE THE COMPLEX CAPITAL CREDIT ALLOCATION LANGUAGE TO BETTER ALIGN WITH HOW CAPITAL CREDITS ARE CURRENTLY ALLOCATED AND REMOVE OUTDATED LANGUAGE THAT IS NO LONGER NECESSARY. FORM 990, PART VI, SECTION A, LINE 6 THE COMPANY IS A MEMBER OWNED COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A AT THE ANNUAL MEETING 3 DIRECTORS ARE ELECTED ANNUALLY TO 3 YEAR TERMS. NO ABSENTEE BALLOTS ARE ALLOWED. ALL MEMBERS CAN VOTE IF PRESENT AT THE ANNUAL MEETING. 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 ALL BOARD MEMBERS RECEIVED AN ELECTRONIC VERSION OF FORM 990 BEFORE IT WAS FILED. FORM 990, PART VI, SECTION B, LINE 12C CORPORATE COUNCIL REVIEWS THE CONFLICT OF INTEREST POLICY AT THE ORGANIZATIONAL MEETING WITH THE ENTIRE BOARD OF DIRECTORS. ALL DIRECTORS, OFFICERS, AND EMPLOYEES ARE COVERED BY THE CONFLICT OF INTEREST POLICY. ANY POTENTIAL CONFLICTS THAT ARISE ARE REVIEWED BY THE BOARD OF DIRECTORS, GENERAL MANAGER, AND LEGAL COUNSEL. IF CONFLICTS ARE DETERMINED TO EXIST, THE VIOLATION MAY RESULT IN A DISCIPLINARY HEARING WITH THE GENERAL MANAGER, AND POSSIBLE EXPULSION. THE ORGANIZATION DOCUMENTS ANY PROCEEDINGS DURING THE HEARING PROCESS. FORM 990, PART VI, SECTION B, LINE 15 FORM 990, PART VI, SECTION B, LINE 15A: THE BOARD OF DIRECTORS AS THE GOVERNING BODY & CORPORATE COUNCIL CONDUCT A PERFORMANCE AND COMPENSATION REVIEW OF THE GM. COMPENSATION WAS SET BY THE BOARD OF DIRECTORS BASED ON A PERFORMANCE REVIEW AND NATIONAL COMPENSATION SURVEYS. COMPENSATION FIGURES WERE PROVIDED TO THE FINANCE DEPARTMENT. FORM 990, PART VI, SECTION B, LINE 15B: COMPENSATION WAS SET BY THE GM BASED ON A NATIONAL COMPENSATION SURVEY. A VERBAL REVIEW WAS PROVIDED TO THE BOARD OF DIRECTORS AS THE GOVERNING BODY. COMPENSATION FIGURES WERE PROVIDED TO THE FINANCE DIVISION. THE PROCESSES DESCRIBED HERE WERE LAST COMPLETED IN 2023. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 4: THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI ON PAGE 12 OF THE FORM 990 AND IN PART XII ON SCHEDULE D. FORM 990, PART XI, LINE 9: PATRONAGE DIVIDENDS ALLOCATED 5,367,927. CAPITAL CREDITS RETIRED -1,981,172. ESTATE SETTLEMENTS -116,256. MEMBERSHIP CHANGES -17,346. NET GAIN ON AVAILABLE FOR SALE SECURITIES 393,901.