2023-11-06T14:21:40-07:00 2022-12-31 990 2022-01-01 383321875 GREAT LAKES ENERGY COOPERATIVE GREA 2315826521 1323 Boyne Avenue Boyne City MI 49712 John Fettig VP and CFO 2315826521 2023-11-06 1 1 11 1 AAL2 X 2022 2023-04-26 12:10:37Z Shaun Lamp 1323 Boyne Ave Boyne City MI 49712 262493398 0 X www.gtlakes.com X 1998 MI Our mission is to deliver reliable electric service at the best possible value for rural Michigan members 9 9 325 0 105513 17643 0 0 235758196 254837705 2223936 1492921 35757 6115860 238017889 262446486 0 0 10817672 11177265 1483456 2000693 0 0 0 225716761 249268528 238017889 262446486 0 0 794670914 877952006 562013758 627886120 232657156 250065886 Built and led by the communities we serve, we connect our members to innovative energy and communications programs and services. 0 0 262446486 262446486 Provide electric service to member/customers - approximately 125,000 member/customers. 0 0 0 262446486 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 1 0 0 0 0 0 1 1 1 0 1 109 0 1 325 1 1 1 0 0 0 0 235126373 15882298 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MI X John Fettig 2315826521 1323 Boyne Avenue Boyne City MI 49712 X SHAUN LAMP PRES, CHIEF EXECUTIVE OFFICER 55 5 X 315952 58950 136121 SHARI CULVER CHIEF OPERATING OFFICER 44 16 X 241012 58057 121983 JENNIFER WILSON VP, HUMAN RESOURCES 48 12 X 210805 52244 128108 WILLIAM SCOTT PRES, CHIEF EXECUTIVE OFFICER 55 5 X 287537 8253 94352 SCOTT BLECKE CHIEF STRATEGY OFFICER 60 0 X 293447 25 94750 DARYL DESLOOVER VP, INFOMATION TECHNOLOGY 58.00 2 X 229627 0 145726 KEVIN FORBES DIRECTOR OF OPERATIONS 60 0 X 222164 0 107314 JOHN FETTIG CHIEF FINANCIAL OFFICER 55 5 X 230719 6112 76277 CHRIS BARBER VP & CHIEF OPERATING OFFICER - TRUESTREAM 5 55 X 20763 222288 5282 JOHN MCCAFFERTY LINEWORKER 55.25 0 X 191566 0 47020 HOWARD BOWERSOX DIRECTOR 9.2 0.7 X 41000 1800 0 MARK CARSON DIRECTOR 9.5 1.8 X 32200 6000 0 JOHN LAFORGE DIRECTOR 3.8 2.2 X 31300 6150 0 DAVID COVEYOU DIRECTOR 5.3 0 X 34850 0 0 RIC EVANS DIRECTOR 6.9 0 X 34600 0 0 SHELLY PINKELMAN DIRECTOR 5.1 0 X 31650 0 0 DALE FARRIER DIRECTOR 2.1 0 X 29600 0 0 PAUL BYL DIRECTOR 6 0 X 26700 0 0 ROBERT KRAN RETIRED DIRECTOR 7 2 X 20700 4550 0 JANET ANDERSEN DIRECTOR 9.5 0 X 9200 0 0 2535392 424429 956933 149 0 1 0 TREES LLC 1700 Solutions Center Chicago IL 60677 Right of way tree clearing 3946214 ROEMER UTILITY SERVICES 279 Kaden PO Box 124 Boyne City MI 49712 UG boring contractor 956428 GUSTAFSON HDD LLC 8793 N 72nd Avenue Pentwater MI 49449 Underground fiber boring 457880 ALPINE TREE SERVICE 313 Pickeral Lake Dr Newaygo MI 49337 Right of way tree clearing 324208 DYKEMA GOSSETT PLLC 400 RENAISSANCE CENTER DETROIT MI 48243 Legal Services 227244 5 0 ELECTRICITY SOLD TO MEMBERS 221000 235126373 235126373 0 0 PROGRAM RELATED INVESTMENT INCOME 221000 10654546 10654546 0 0 POLE RENTAL 221000 664844 0 0 664844 TOWER & BUILDING RENTAL 221000 105513 0 105513 0 FIBER OPTIC ROU ASSET 221000 8286429 8286429 0 0 0 0 0 0 254837705 1060885 0 0 1060885 0 0 0 0 0 0 0 0 46912 0 46912 0 0 0 0 0 0 0 0 432036 0 0 0 432036 432036 432036 0 0 PPPL FORGIVENESS 221000 6115860 6115860 0 0 0 0 0 0 6115860 262446486 260615244 105513 1725729 X 11177265 2000693 14388153 23039500 PURCHASED ELECTRIC POWER 144714499 OPERATIONS & MAINTENANCE EXPENSE 41986241 ADMIN & GENERAL EXPENSE 8782803 MEMBER SERVICE EXPENSE 9291780 7065552 262446486 0 0 0 4689818 394462 1044061 995887 0 0 31938341 41087936 0 0 0 0 1725678 1423931 12200031 16579222 5249309 4589510 853352303 191244510 593183915 662107793 2373774 0 820634 615271 139279736 147494295 2165617 2663699 0 794670914 877952006 47321607 46642147 0 0 0 0 0 0 0 0 0 0 506267365 573947325 0 0 8424786 7296648 562013758 627886120 X 519740 519740 10873860 12989517 221263556 236556629 232657156 250065886 794670914 877952006 X 0 0 0 0 0 17408730 X 0 1 X 1 0 0 1942872 1942872 0 39712507 7290858 32421649 0 0 0 0 0 811696924 183953652 627743272 0 0 0 0 662107793 PATRONAGE CAPITAL FROM ASSOC ORGANIZATIONS 117568882 C INVESTMENT IN GLE CONNECTIONS SUBSIDIARY 456739 C DUE FROM SUBSIDIARY 24951471 C COOP FINANCE CORP MEMBER CERTIFICATES 4511478 C INVESTMENT IN OTHER RELATED ORGANIZATIONS 5725 C 147494295 0 POST RETIREMENT BENEFITS -2239562 DEFERRED CR - CIAC 7394209 OTHER DEFERRED CREDITS 1034288 DEFERRED REGULATORY CREDITS 2186965 DEFERRED COMPENSATION 648950 INT RATE SWAP OBLIGATION -1728202 7296648 X 246575914 0 0 0 0 0 246575914 0 15870572 15870572 262446486 235398648 0 0 0 -15870573 -15870573 251269221 0 11177265 11177265 262446486 Schedule D, Part X, Line 2 Management believes that positions taken during prior years and taken for 2022 in reporting federal taxable income for the Company and for its subsidiary are not controversial and have a high degree of being sustained upon any future examination by the taxing authority. Schedule D, Part XI, Line 4b In the audited financial statements, fiber infrastructure use of $8,286,429, related interest income of $1,036,247, sales of assets of $432,036 and miscellaneous income $6,115,860 were netted against other expenses. This revenue, which reduced expenses in the audited financial statements, needs to be added to the audited financial statement revenue because it was shown as an expense in this 990. The total amount added to the audited financial statement revenue is $15,870,572. Schedule D, Part XII, Line 2d In the audited financial statements, fiber infrastructure use of $8,286,429, related interest income of $1,036,247, sales of assets of $432,036 and miscellaneous income $6,115,860 were netted against other expenses. This revenue, which reduced expenses in the audited financial statements, needs to be added to audited financial statement expenses to reconcile to this 990's expenses that do not include the reduction. The total amount added to the audited financial statement expense is $15,870,572. Schedule D, Part XII, Line 4b $11,177,265 of capital credits are recorded as an expense in this 990, but not as an expense in the audited financial statements. See below and Part O of Form 990, Part IX, Line 4. Please note however that patronage dividends are the process by which Great Lakes Energy operates at cost with our members, and thereby it is a key component to accomplishing the exempt purpose of the cooperative. Therefore, Great Lakes Energy has reported the amount of our 2022 margins ($11,177,265) that have been allocated to our members, subsequent to year end, as an expense. X X X X 0 0 0 SHAUN LAMP PRES, CHIEF EXECUTIVE OFFICER 272436 53424 42123 5488 1393 37 110837 2982 30257 814 457046 62745 SHARI CULVER CHIEF OPERATING OFFICER 192336 51482 47401 6541 1274 34 95658 2574 28915 778 365584 61409 WILLIAM SCOTT PRES, CHIEF EXECUTIVE OFFICER 170040 5891 87548 1556 29949 806 88082 2370 4598 124 380217 10747 SCOTT BLECKE CHIEF STRATEGY OFFICER 239302 0 53207 0 938 25 73145 1968 24500 659 391092 2652 JENNIFER WILSON VP, HUMAN RESOURCES 183318 45046 26048 7159 1439 39 105567 2840 24815 668 341187 55752 CHRIS BARBER VP & CHIEF OPERATING OFFICER - TRUESTREAM 11506 216857 431 5430 8826 0 5282 0 5805 0 31850 222287 JOHN FETTIG CHIEF FINANCIAL OFFICER 212419 5662 17245 450 1055 0 52526 0 29566 0 312811 6112 DARYL DESLOOVER VP, INFOMATION TECHNOLOGY 210239 0 17667 0 1721 0 122905 0 27191 0 379723 0 KEVIN FORBES DIRECTOR OF OPERATIONS 192134 0 27889 0 2141 0 86937 0 24494 0 333595 0 JOHN MCCAFFERTY LINEWORKER 179991 0 3877 0 7698 0 3132 0 25831 0 220529 0 Schedule J, Part I, Line 3 Amounts listed for CEO, CFO and all employees on Part VII in column F include (per 990 instructions) amounts associated with health care employer premiums, excess life insurance premiums, and employer contributions to a qualified 401k plan. It should be noted that these benefits are available to all employees of Great Lakes Energy and therefore these are not discriminatory benefits. Amounts included for actuarial increase in defined benefit pension plans are also included as Other Compensation and were provided to Great Lakes Energy by the National Rural Electric Cooperative Association (NRECA) which administers the multi-employer pension plan. It should be noted that these actuarial amounts are much higher than the actual cash paid to the plan. The actual cash paid to the plan for the employees listed was 49% less than the actuarial value as reported in column F as Other Compensation. The 49% difference is due to the multi-employer basis of the NRECA defined benefit pension plan. This benefit is also available to all Great Lakes Energy employees and is nondiscriminatory. Wolverine Power Supply Cooperative Board of Directors 141238695 Purchase Electricity for Distribution 0 MI Electric Cooperative Association Board of Directors 917024 Dues, Publishing and Consulting 0 Schedule L, Part I, Line 1 Wolverine Power Supply Cooperative (Wolverine) is the Generation and Transmission company that sells power to Great Lakes Energy (GLE). The power is then delivered to members/consumers of GLE. Three Board members from GLE sit on the Wolverine Board. There are no business transactions between or among the three Board members. Schedule L, Part I, Line 2 Michigan Electric Cooperative Association (MECA) is the Statewide organization of which GLE pays dues and member magazine costs. One GLE Board Director and the CEO of GLE sit on the MECA Board. There are no business transactions between the Board Member and CEO. Form 990, Part VI, Section A, Line 6 Great Lakes Energy is a Cooperative with all electric "customers" of the Cooperative required to be members. Form 990, Part VI, Section A, Line 7a Great Lakes Energy is an electric cooperative utility. All members/consumers vote for candidates to fill the nine member Great Lakes Energy Board. An election is held annually. Board Directors serve three year terms and must be re-elected to serve longer than three years. GLE has nine districts with one Board Member from each district. Form 990, Part VI, Section A, Line 7b Certain Bylaw changes must be ratified by the general membership. This ratification is voted upon in conjunction with the annual Board election. There were no significant bylaw changes in 2022. Form 990, Part VI, Section B, Line 11b The GLE Board of Directors were provided with a questionnaire in April 2023 which was used to assist Management in completing pertinent sections of this 990. At a subsequent Board meeting, prior to filing, the Board reviewed the preliminary 990 and discussed specifics of the 990 return. Form 990, Part VI, Section B, Line 12c A questionnaire was delivered to each Board Member and Officers asking each to verify that they had received and read the policy and to certify they had no conflicts of interest. These certificates are on file with the supporting documentation for this 990. Form 990, Part VI, Section B, Line 15 GLE contracts with a nationally recognized compensation consultant to determine salary levels for the Chief Executive Officer and Chief Financial Officer along with certain others in the Company. The consultant performs an annual market survey and position evaluation utilizing comparative financial data for the industry and company size. The results are confidentially disclosed to the Chairman of the Board of Directors and the Board sets the salary level for the CEO each year. The CEO, using the afore mentioned consultant, sets the salary level for the CFO each year. Form 990, Part VI, Section C, Line 19 GLE makes company bylaws available to the public on line at www.gtlakes.com and with printed copies upon request. 2022 audited financial statement summaries were mailed to members in June 2023 Country Lines Magazine. They are also available upon request. GLE does not make the conflict of interest policy available to the public. Form 990, Part VII, Section A, Line 1a (Directors) Amounts listed for Directors are primarily per diem compensation amounts for services provided to Great Lakes Energy (column D), Great Lakes Energy Connections (column E), and for one Director the Michigan Electric Cooperative Association (combined in column C). Per Diem amount levels for Directors are benchmarked with data from over 900 other electric cooperatives though the National Rural Electric Cooperative Association (NRECA) and also benchmarked with over 35 cooperatives from the Association of Large Distribution Cooperatives (ALDC) representing the peer group of Great Lakes Energy. Amounts listed for CEO, CFO and all employees on Part VII in column F include (per 990 instructions) amounts associated with health care employer premiums, excess life insurance premiums, and employer contributions to a qualified 401k plan. It should be noted that these benefits are available to all employees of Great Lakes Energy and therefore these are not discriminatory benefits. Amounts included for actuarial increase in defined benefit pension plans are also included as Other Compensation and were provided to Great Lakes Energy by the National Rural Electric Cooperative Association (NRECA) which administers the multi-employer pension plan. It should be noted that these actuarial amounts are much higher than the actual cash paid to the plan. The actual cash paid to the plan for the employees listed was 49% less than the actuarial value as reported in column F as Other Compensation. The 49% difference is due to the multi-employer basis of the NRECA defined benefit pension plan. This benefit is also available to all Great Lakes Energy employees and is nondiscriminatory. Form 990, Part VII, Section A, Line 1d Compensation from related organizations are amounts related to Great Lakes Energy Connections, for-profit internet provider wholly owned by Great Lakes Energy Cooperative, paid by GLE and reimbursed by Great Lakes Energy Connections. No 1099's or W-2's were issued by Connections. However, to provide transparency, Compensation for both Directors and Employees were broken out between GLE and Related Organization (Connections). Therefore, Compensation listed for GLE and Connections equal the total amounts reported on 1099's or W-2's, for those Directors/Employees, from GLE. Form 990, Part IX, Line 4 The instructions for Form 990 clarifies that the amount of patronage dividends paid to the members should be reported on Part IX, line 4. The phrase "patronage dividends paid" refers to the process, subsequent to year-end by which Great Lakes Energy allocates patronage capital to members and therefore, operates at cost to our members. Please note however that patronage dividends is the process by which Great Lakes Energy operates at cost with our members, and thereby is a key component to accomplishing the exempt purpose of the cooperative, Great Lakes Energy has reported the amount of 2022 net margins allocated to our members, subsequent to year-end, as an expense on this 990. Such amounts are an expense for Form 990 reporting but are not an expense for financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). As a result, the difference between Great Lakes Energy's GAAP-basis financial statements and the revenue less expenses reported on Part I Line 19 is the amount of the patronage dividends reported as benefits paid to members. Form 990, Part XI, Line 9 Changes in equity not included in Great Lakes Energy's net margins consists of Employee post-retirement health benefits and Directors' pension plan adjustments, required by FASB 158, recorded in the financial statements as Other Comprehensive Loss - $385,261 increase; patronage capital refunds to members - $208,914 decrease; donated capital from members - $2,264,605 increase; unrealized gain on interest rate swap - $3,790,515 increase; and capital credits allocated and included in Part IX, line 4 that are not recorded in the Cooperative's audited financial statements as an expense in conformity with Generally Accepted Accounting Principles (GAAP) - $11,177,265 increase; rounding decrease of $2. The net increase to Net Assets is $17,408,730. Great Lakes Energy Connections Inc 1323 Boyne Avenue Boyne City MI 49712 824426315 Fiber internet MI Great Lakes Energy Cooperative C 1 0 1 0 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 Great Lakes Energy Connections Inc a-i 1036247 BOOK VALUE/ACCOUNTING RECORDS Great Lakes Energy Connections Inc a-iv 46912 BOOK VALUE/ACCOUNTING RECORDS Great Lakes Energy Connections Inc d 8572929 BOOK VALUE/ACCOUNTING RECORDS Great Lakes Energy Connections Inc j 8286429 BOOK VALUE/ACCOUNTING RECORDS Great Lakes Energy Connections Inc n 288815 BOOK VALUE/ACCOUNTING RECORDS Great Lakes Energy Connections Inc o 4193544 BOOK VALUE/ACCOUNTING RECORDS