2026-08-27T17:02:27-05:00 2025-12-31 423603499 EIDE BAILLY ADVISORY LLC 345 N REID PL STE 400 SIOUX FALLS SD 571037077 990 2025-01-01 460151015 NORTHERN ELECTRIC COOPERATIVE NORT 6052250310 PO BOX 457 BATH SD 57427 CHARLENE HAGER CEO 6052250310 2026-08-27 1 LAURIE HANSON P00851848 6053391999 2026-08-27 2025 2025-03-06 01:10:19Z CHARLENE HAGER PO BOX 457 BATH SD 57427 33976070 0 X WWW.NORTHERNELECTRIC.COOP X 1941 SD PROVIDE ELECTRICITY TO RURAL AREAS. 9 9 40 0 876 0 0 0 31027637 33552526 286972 13307 40196 45783 31354805 33611616 1000 0 1938712 1973356 4456854 4558592 0 0 0 24958239 27079668 31354805 33611616 0 0 117373910 123815291 80068321 85760767 37305589 38054524 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 6,938 MEMBERS/METERS AND ADDED/REPLACED 75 MILES OF LINE AND RETIRED 70 MILES OF LINE. 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 37 0 1 40 1 1 1 0 0 0 0 32353939 1455230 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X LORISA RUDOLPH 6052250310 PO BOX 457 BATH SD 57427 X NOLAN WIPF PRESIDENT 5.00 X X 13000 0 32 JOSH LARSON TREASURER 5.00 X X 8750 0 32 TODD HETTICH VICE PRESIDENT 5.00 X X 16900 0 32 KIRK SCHAUNAMAN DIRECTOR 5.00 X 5300 0 32 MIKE TRAXINGER DIRECTOR 5.00 X 5900 0 32 WILLIAM HANSEN DIRECTOR 5.00 X 8850 0 32 SCOTT SPERRY SECRETARY 5.00 X X 6900 0 32 THOMAS LAMBERT DIRECTOR 5.00 X 6300 0 32 BRUCE SCHUMACHER JR DIRECTOR 5.00 X 6300 0 32 CHARLENE HAGER CEO 40.00 X 177681 0 86625 LORISA RUDOLPH CFO 40.00 X 109554 0 42000 DEREK GORECKI IT MANAGER 40.00 X 136235 0 70790 RUSSEL ULMER MEMBER SERVICES MANAGER 40.00 X 131357 0 57875 JEROME WEBER OPERATIONS MANAGER 40.00 X 131025 0 62607 BRIAN HANSEN LINE FOREMAN 40.00 X 112118 0 48467 NICK DEAN JOURNEYMAN LINEMAN 40.00 X 109962 0 26787 986132 0 395439 15 0 1 0 KELLER CONSTRUCTION INC 7700 MOUNT ROYAL LANE RAPID CITY SD 57702 LINE CONSTRUCTION 572832 K&H ELECTRIC INC PO BOX 656 LINTON ND 58552 PLOWING & TRENCHING 411601 LARSON DIGGING INC 601 S 7TH ST MILBANK SD 57252 PLOWING & TRENCHING 245910 SCHMIDT CONSTRUCTION INC 3570 ROLLING MEADOWS DRIVE ABERDEEN SD 57401 PLOWING & TRENCHING 232046 TREELINE TREE SERVICE INC PO BOX 168 GROTON SD 57445 TREE TRIMMING 183653 6 SALE OF POWER 221000 31616815 31616815 CAPITAL CREDITS 221000 1757914 1757914 OTHER OPERATING 221000 177625 177625 172 172 33552526 242135 242135 360 36772 0 15941 360 20831 21191 20831 360 228828 -228828 -228828 -228828 144277 119685 24592 23716 876 33611616 33597073 876 13667 X 1973356 530396 2990900 784541 252755 2615931 3320640 COST OF POWER 19899747 ADMIN & GENERAL 1880914 DISTRIBUTION-MAINTENANC 1647411 DISTRIBUTION-OPERATIONS 682654 -2967629 33611616 6876313 5107894 3117667 4212525 44 3378221 2516884 266986 217809 114580376 28000594 79371312 86579782 551704 668287 23612176 24324763 199487 187347 117373910 123815291 3279684 4071633 1932052 1162449 74649469 80276012 207116 250673 80068321 85760767 X 0 0 0 0 37305589 38054524 37305589 38054524 117373910 123815291 X 0 748935 X 0 1 X 1 1 1 49143 49143 2067358 674657 1392701 109404809 27325937 82078872 3059066 3059066 86579782 EAST RIVER ELECTRIC POWER COOPERATIVE, INC. 23699663 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP. 246005 C CAPITAL TERM CERTIFICATES 377045 C OTHER INVESTMENTS 2050 C 24324763 CUSTOMER DEPOSITS 250673 250673 X 33611616 0 33611616 0 33611616 31638260 0 31638260 1973356 1973356 33611616 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 1,973,356. X X 0 0 0 CHARLENE HAGER CEO 170711 0 0 0 6970 0 51182 0 43242 0 272105 0 0 0 DEREK GORECKI IT MANAGER 134488 0 0 0 1747 0 55803 0 19680 0 211718 0 0 0 JEROME WEBER OPERATIONS MANAGER 126129 0 0 0 4896 0 35461 0 34280 0 200766 0 0 0 RUSSEL ULMER MEMBER SERVICES MANAGER 129706 0 0 0 1651 0 43920 0 16118 0 191395 0 0 0 BRIAN HANSEN LINE FOREMAN 111647 0 0 0 471 0 18922 0 36232 0 167272 0 0 0 LORISA RUDOLPH CFO 109028 0 0 0 526 0 11987 0 36969 0 158510 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 $41,888, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $42,170. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR DEREK GORECKI IS $48,999, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $30,873. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR RUSSEL ULMER IS $37,473, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $29,251. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR JEROME WEBER IS $28,796, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $21,981. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR BRIAN HANSEN IS $13,508, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $22,257. THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR LORISA RUDOLPH IS $6,029, WHEREAS THE ACTUAL EXPENSE FOR THE PLAN WAS $27,035. FORM 990, PART VI, SECTION A, LINE 4 THE ARTICLES OF INCORPORATION AND BYLAWS WERE AMENDED TO STATE THE BOARD OF DIRECTORS SHALL CONSIST OF NO FEWER THAN FIVE MEMBERS AND NO MORE THAN NINE MEMBERS, THE TOTAL NUMBER OF WHICH SHALL BE DETERMINED BY THE BOARD OF DIRECTORS. THE ARTICLES AND BYLAWS PREVIOUSLY REQUIRED NINE MEMBERS WITH ONE BEING FROM EACH DISTRICT. THE AMENDED ARTICLES AND BYLAWS FURTHER STATE THE TERRITORY SERVED OR TO BE SERVED BY THE COOPERATIVE SHALL BE DIVIDED INTO DIRECTOR DISTRICTS, THE NUMBER OF DISTRICTS TO BE DETERMINED BY THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL DETERMINE THE NUMBER OF DIRECTORS TO BE ELECTED FROM EACH DISTRICT. PRIOR TO THE AMENDMENT THERE WERE NINE DISTRICTS WITH ONE DIRECTOR FROM EACH DISTRICT. 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 12C ALL POTENTIAL CONFLICTS OF INTEREST MUST BE DISCLOSED TO THE GENERAL MANAGER. THE EMPLOYEE, OFFICER OR DIRECTOR INVOLVED IN THE CONFLICT SITUATION MUST WORK WITH HIS/HER SUPERVISOR AND THE GENERAL MANAGER, TO ACHIEVE A RESOLUTION OF THE CONFLICT ISSUE IN THE BEST INTERESTS OF NORTHERN ELECTRIC COOPERATIVE. DEPENDING UPON THE NATURE OF THE CONFLICT, THIS MAY INCLUDE THE EMPLOYEE, OFFICER OR DIRECTOR BEING REMOVED FROM A POSITION OF DECISION-MAKING AUTHORITY WITH RESPECT TO THE SPECIFIC SITUATION OR OTHER ACTIONS THE COOPERATIVE DEEMS NECESSARY TO PREVENT OR ADDRESS THE CONFLICT. IN ADDITION, THE BOARD OF DIRECTORS IS REQUIRED TO FILL OUT A QUESTIONNAIRE ANNUALLY AS PART OF THE 990 PROCESS 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 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 IS UNDERTAKEN ANUALLY. 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 -1,224,421. ALLOCATION OF 2025 MARGINS IN 2026 1,973,356.