2024-09-19T13:31:32-05:00 2023-12-31 450250958 EIDE BAILLY LLP 345 N REID PL STE 400 SIOUX FALLS SD 571037034 990 2023-01-01 810218593 HILL COUNTY ELECTRIC COOPERATIVE INC HILL 8773947804 2121 HWY 2 NW PO BOX 2330 HAVRE MT 59501 CRAIG GATES CEO 8773947804 2024-09-18 1 1 LAURIE HANSON CPA P00851848 6053391999 2024-09-10 2023 2024-08-08 14:25:15Z CRAIG GATES 2121 HWY 2 NW PO BOX 2330 HAVRE MT 59501 19446725 0 X WWW.HCELECTRIC.COM X 1945 MT TO PROVIDE ELECTRICITY TO RURAL AREAS. 5 5 140 0 0 0 0 0 17700770 18236530 117988 155504 414660 587973 18233418 18980007 1611 3545 1357759 1497053 3286949 3333556 0 0 0 13587099 14145853 18233418 18980007 0 0 40123736 39504380 19571801 18015923 20551935 21488457 X HILL COUNTY ELECTRIC PROVIDES OUR MEMBERS AND CUSTOMERS WITH HIGH QUALITY, RELIABLE AND SAFE ELECTRIC SERVICES AND ASSOCIATED PRODUCTS AT COMPETITIVE PRICES, NOW AND IN THE FUTURE. USING ADVANCED TECHNOLOGY WHEN AVAILABLE AND COST-EFFECTIVE, WE STRIVE TO EXCEED THE EXPECTATIONS OF OUR CUSTOMERS BY GIVING UNCOMPROMISING CUSTOMER SERVICE BASED ON CORE PRINCIPLES OF COOPERATION, MUTUAL RESPECT AND APPRECIATION FOR THEIR PATRONAGE. 0 0 HILL COUNTY ELECTRIC PROVIDES OUR MEMBERS AND CUSTOMERS WITH HIGH QUALITY, RELIABLE AND SAFE ELECTRIC SERVICES, AND ASSOCIATED PRODUCTS AT COMPETITIVE PRICES, NOW AND IN THE FUTURE. USING ADVANCED TECHNOLOGY WHEN AVAILABLE AND COST-EFFECTIVE, WE STRIVE TO EXCEED THE EXPECTATIONS OF OUR CUSTOMERS BY GIVING UNCOMPROMISING CUSTOMER SERVICE BASED ON CORE PRINCIPLES OF COOPERATION, MUTUAL RESPECT, AND APPRECIATION FOR THEIR PATRONAGE. HCE PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 2,362 MEMBERS AND ADDED/REPLACED 10.3 MILES OF LINE. 0 0 0 0 0 0 0 0 0 1 0 0 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 1 104 0 1 140 1 0 0 0 0 0 18286210 847462 0 0 0 X 5 5 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X MARK MAJERES 4063947804 PO BOX 2330 HAVRE MT 59501 SHANE BARRETT PRESIDENT 13.00 X X 15125 0 0 LESLIE SMITH SECRETARY/TREASURER 10.00 X X 18033 0 0 NICK SIEBRASSE VICE PRESIDENT 12.00 X X 19931 0 0 GERALD RUTLEDGE TRUSTEE 10.00 X 16925 0 0 TREVOR STANDING ROCK TRUSTEE 10.00 X 14875 0 0 CRAIG GATES GENERAL MANAGER/CEO 14.00 X 139017 0 53637 MARK MAJERES CONTROLLER/CFO 12.30 X 52789 0 27104 JAMES SANDS VICE PRESIDENT OF ELECTRIC 40.00 X 185077 0 382904 RUSSELL GREGOIRE ELECTRIC LINEMAN 40.00 X 119825 0 3061 JACOB HEMSTROM JOURNEYMAN LINEMAN 40.00 X 109064 0 16329 MARK MAGELSSEN ELECTRIC LINEMAN 40.00 X 109790 0 41040 JOSHUA PULSE ELECTRIC LINEMAN 40.00 X 109425 0 16483 909876 0 540558 12 0 1 0 0 SALE OF POWER 221000 17485745 17485745 CAPITAL CREDITS 221000 728409 728409 22376 22376 18236530 155504 155504 539733 0 539733 539733 539733 514958 466718 48240 48240 18980007 18236530 0 743477 3545 1497053 339018 2288422 519725 186391 444266 1645758 COST OF POWER 10758980 DISTRIBUTION - MAINTENA 1309534 DISTRIBUTION - OPERATIO 872015 TAXES 551120 -1435820 18980007 3496931 2373852 1771763 1747054 591709 546852 852046 1486554 163913 146923 56476706 25084651 31436515 31392055 1118566 1045829 684285 755120 8008 10141 40123736 39504380 2316871 1641967 16200133 15401642 1054797 972314 19571801 18015923 X 0 0 0 0 20551935 21488457 20551935 21488457 40123736 39504380 X 0 936522 X 0 1 X 1 0 65707 65707 4078197 2471270 1606927 52053409 22333988 29719421 279393 279393 0 31392055 CUSTOMER DEPOSITS 36112 DEFERRED CREDITS 332339 FINANCE LEASE LIABILITY 603863 972314 X 18976462 -3545 -3545 18980007 0 18980007 17479409 0 17479409 1500598 1500598 18980007 PART X, LINE 2: THE COOPERATIVE EVALUATES ITS TAX POSITIONS THAT HAVE BEEN TAKEN OR ARE EXPECTED TO BE TAKEN ON INCOME TAX RETURNS TO DETERMINE IF AN ACCRUAL IS NECESSARY FOR UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2023 AND 2022, THE UNRECOGNIZED TAX BENEFIT ACCRUAL WAS ZERO. THE COOPERATIVE WILL RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF INCURRED. PART XI, LINE 2D - OTHER ADJUSTMENTS: GRANTS INCLUDED IN INCOME ON FINANCIAL STATEMENTS -3,545. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2023 MARGINS TO MEMBERS IN 2024 1,497,053. GRANTS INCLUDED IN INCOME ON FINANCIAL STATEMENTS 3,545. X X 0 0 0 JAMES SANDS VICE PRESIDENT OF ELECTRIC 162660 0 15944 0 6473 0 351000 0 36875 0 572952 0 0 0 CRAIG GATES GENERAL MANAGER/CEO 126486 0 0 0 12531 0 45129 0 11930 0 196076 0 0 0 MARK MAGELSSEN ELECTRIC LINEMAN 101067 0 7316 0 1407 0 17000 0 27831 0 154621 0 0 0 SCHEDULE J, PART II, COLUMN C PER THE INSTRUCTIONS, COLUMN C INCLUDES THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR PERSONS LISTED IN SCHEDULE J, PART II. ACTUAL EXPENSE OF THE PLAN MAY BE SIGNIFICANTLY DIFFERENT FROM THE CHANGE IN ACTUARIAL VALUE. DETAILS RELEVANT TO THE DEFINED BENEFIT PLAN ARE AS FOLLOWS: ACTUAL EXPENSE: - CRAIG GATES $29,297 - MARK MAGELSSEN $28,226 - JAMES SANDS $42,461 CHANGE IN ACTUARIAL VALUE: - CRAIG GATES $64,470 - MARK MAGELSSEN $17,000 - JAMES SANDS $351,000 FORM 990, PART VI, SECTION A, LINE 6 HILL COUNTY ELECTRIC HAS TWO CLASSES OF MEMBERS: LARGE INDUSTRIAL MEMBERS WHOSE CAPITAL CREDITS ARE CALCULATED BASED ON AGREEMENTS, AND THE REMAINING MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER IS ENTITLED TO ONE VOTE FOR ANY TRUSTEE SEAT THAT IS UP FOR ELECTION REGARDLESS OF CLASS. FORM 990, PART VI, SECTION A, LINE 7B THE COOPERATIVE MAY NOT SELL, MORTGAGE, LEASE, OR OTHERWISE DISPOSE OF OR ENCUMBER ALL OR ANY SUBSTANTIAL PORTION OF ITS PROPERTY UNLESS APPROVED BY TWO-THIRDS OF ALL THE MEMBERS BY VOTE AT A DULY HELD MEETING. THE COOPERATIVE SHALL NOT BECOME A MEMBER OF OR PURCHASE OR ACQUIRE STOCK OR OTHER OWNERSHIP INTERESTS IN ANY CORPORATION OR OTHER ENTITY OR ORGANIZATION WITHOUT AN AFFIRMATIVE VOTE OF THE MEMBERS AT A DULY HELD MEETING. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE COMMITTEES. FORM 990, PART VI, SECTION B, LINE 11B THE GENERAL MANAGER AND CONTROLLER WILL REVIEW THE PREPARED FORM 990 IN DETAIL PRIOR TO FILING. ADDITIONALLY, A COPY WILL BE GIVEN TO BOARD MEMBERS PRIOR TO ITS FILING. THE GENERAL MANAGER OR CONTROLLER WILL PRESENT THE FORM 990 AT A BOARD MEETING PRIOR TO FILING THE RETURN IF SO DESIRED BY THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C TRUSTEES AND MANAGEMENT ARE REQUIRED TO SIGN AN ACKNOWLEDGEMENT OF THE CONFLICT OF INTEREST POLICY ANNUALLY STATING THAT THEY WILL ADVISE MANAGEMENT OF ANY QUESTIONABLE OWNERSHIP INTERESTS OR RELATIONSHIPS. THE BOARD OF DIRECTORS IS RESPONSIBLE FOR DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS. IF A CONFLICT EXISTS, THE AFFECTED BOARD MEMBER IS REQUIRED TO ABSTAIN FROM DISCUSSION AND VOTING ON THE ITEM. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION OF THE GENERAL MANAGER/CEO IS DETERMINED BY THE BOARD OF TRUSTEES. EACH TRUSTEE COMPLETES A WRITTEN EVALUATION OF THE CEO'S PERFORMANCE WHICH IS COMPILED WITH THE OTHER EVALUATIONS AND PRESENTED AND DISCUSSED WITH THE CEO. COMPENSATION FOR THE NEXT YEAR IS PART OF THIS EVALUATION AND DISCUSSION PROCESS. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -560,531. ALLOCATION OF 2023 MARGINS TO MEMBERS IN 2024 1,497,053. FORM 990, PART V, LINE 2A NUMBER OF EMPLOYEES ON WAGE AND TAX STATEMENT: HILL COUNTY ELECTRIC COOPERATIVE, INC, IS THE COMMON PAYMASTER FOR TWO AFFILIATED, UNRELATED ORGANIZATIONS. AS SUCH, THE NUMBER OF EMPLOYEES REPORTED ON FORM W-3 INCLUDES THREE COMPANIES. FORM 990, PART VII, SECTION A OFFICER COMPENSATION: THE W-2 COMPENSATION AND NONTAXABLE BENEFITS REPORTED IN PART VII REPRESENT THE PORTION OF COMPENSATION THAT IS ATTRIBUTABLE TO HILL COUNTY ELECTRIC COOPERATIVE, INC. FOR THE GENERAL MANAGER/CEO AND CONTROLLER/CFO. EACH OF THESE INDIVIDUALS PERFORMS SIGNIFICANT WORK FOR AN UNRELATED COOPERATIVE THROUGH A SHARED MANAGEMENT AGREEMENT. COMPENSATION AND BENEFITS ATTRIBUTABLE TO THE UNRELATED COOPERATIVE HAVE BEEN EXCLUDED FROM FORM 990 PART VII. HILL COUNTY ELECTRIC COOPERATIVE INC PAYS THESE EMPLOYEES AND THE UNRELATED COOPERATIVE REIMBURSES HILL COUNTY FOR THEIR SHARE OF COMPENSATION AND BENEFITS. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: 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 GENERAL MANAGER AND CONTROLLER/CFO. 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: ALLOCATED AND OTHER EXPENSE: 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 BY-LAWS OF THE COOPERATIVE.