2022-11-10T09:09:11-06:00 2021-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2021-01-01 410480748 EAST CENTRAL ENERGY EAST 8002547944 PO BOX 39 BRAHAM MN 550060039 JUSTIN JAHNZ CEO/PRESIDENT 8002547944 2022-11-07 1 JUSTIN JAHNZ 999009999 DAVID HOLT P00014251 7017754685 2022-11-07 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z STEVE SHURTS 412 N MAIN BRAHAM MN 55006 133437748 0 X WWW.EASTCENTRALENERGY.COM X 1936 MN DISTRIBUTE ELECTRIC ENERGY TO MEMBERS 12 10 178 0 238327 97053 0 0 125867417 131428684 227978 357803 1124170 1410667 127219565 133197154 103883 140484 6013855 11323942 1338368 1377840 0 0 0 119588461 125052114 127044567 137894380 174998 -4697226 344437074 351028810 209272481 215255544 135164593 135773266 TO PROVIDE ELECTRIC DISTRIBUTION AND OTHER RELATED SERVICES TO ITS 62,646 MEMBERS. 0 0 PROVIDE ELECTRIC ENERGY TO MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 0 0 0 1 1 0 0 1 297 0 1 178 1 1 1 0 0 0 0 126875093 7822446 0 0 0 X 12 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X KAYLA HAGFORS 7636898014 412 N MAIN BRAHAM MN 55006 X JOSEPH MORLEY SECRETARY/TREASURER 6.77 X 13175 0 0 RICK OLSON DIRECTOR 6.25 X 13275 0 0 GARRY BYE DIRECTOR 4.92 X 12375 0 0 WAYNE ELLER DIRECTOR 4.90 X 13950 0 0 LINDA LAITALA CHAIR 5.99 X 18800 0 0 LONNIE JOHNSON VICE CHAIR 6.42 X 11475 0 0 WES SIEMERS DIRECTOR 4.85 X 11175 0 0 JERRY TVEDT VICE CHAIR 5.19 X 12825 0 0 DAVID DEUTSCHLANDER DIRECTOR 3.85 X 12075 0 0 GREG KVANICKA ASSISTANT SECRETARY/TREASU 4.35 X 14325 0 0 JIM JESOK DIRECTOR 3.85 X 11175 0 0 DIANE ZIMMERMAN DIRECTOR 5.70 X 11075 0 0 CHERYL HAGFORS VP/CFO (RETIRED 4/1/21) 43.00 X 152202 0 8110 JUSTIN JAHNZ PRESIDENT/CEO 45.00 X 215800 0 99629 ANDY OLSON VP/CHIEF OPERATING OFFICER 43.00 X 195285 0 71610 LISA PRACHAR VP/CFO (APPOINTED 3/1/21) 43.00 X 186274 0 124444 TY HOUGLUM VP/CHIEF INFORMATION OFFICER 44.00 X 173314 0 74125 MARK NELSON MANAGER, GOV'T & BUSINESS 42.00 X 147109 0 106415 TOR KINDEM CREW FOREMAN 58.00 X 155490 0 88895 CHRISTY FLASPETER HR MANAGER 43.00 X 157775 0 34982 TANNER OLSON LINE PERSONNEL 59.00 X 157000 0 18127 DAVID WALETSKI MANAGER, ENGINEERING 43.00 X 147086 0 80427 1843035 0 706764 61 0 1 0 R & G WALDHALM CONTRACTORS 3263 LAKETOWN RD STURGEON LAKE MN 55783 EXCAVATION WORK 2200068 LAKES STATES TREE SERVICE INC 25172 COMMERCIAL DRIVE GRAND RAPIDS MN 55744 TREE TRIMMING/CLEARING 1300585 SKYLINE UTILITIES 11352 EASY STREET BRAINERD MN 56401 POWER LINE CONSTRUCTION 576576 YTS COMPANIES 11720 BROCKTON LANE NORTH MAPLE GROVE MN 55369 POWER LINE CONSTRUCTION 504577 NEW AGE TREE SERVICE INC PO BOX 543 SPRING GROVE MN 55974 TREE TRIMMING/CLEARING 499547 11 ELECTRIC SALES 221000 126089239 126089239 CAPITAL CREDITS 221000 5339445 5339445 131428684 177872 177872 420525 240594 179931 179931 18721 161210 LOCAL ACCESS NETWORK LLC K-1 900099 28466 28466 NORTHLAND CONNECT BROADBAND LLC K 900099 16108 16108 1366093 1172340 193753 1410667 133197154 132619745 238327 339082 X 140484 11323942 1377840 5782724 10888649 COST OF POWER 80569675 ADMIN & GENERAL 9467519 DIST EXP - MAINTENANCE 7088700 DIST EXP - OPERATIONS 6051904 5202943 137894380 16723488 13423441 12995514 16170959 115 1723287 1738816 3087515 3359688 3422361 754109 361405578 123327842 233744522 238077736 602378 382603 69715503 71727623 2422391 5393835 344437074 351028810 19357389 20716057 11234018 16731296 177610912 176739804 1070162 1068387 209272481 215255544 X 0 0 0 0 135164593 135773266 135164593 135773266 344437074 351028810 X -4697226 5305899 X 0 1 X 1 0 1287424 1287424 14328128 7804964 6523164 339150519 115522878 223627641 6639507 6639507 238077736 INVEST PATRONAGE CAP - ASSOC ORGAN 66055118 C INVEST NONGENERAL CTC'S 2107886 C INVEST GENERAL ASSOC COOPS 2204737 C OTHER INVEST ECE NET 1359882 C 71727623 ACCRUED INTEREST 192763 CONSUMER DEPOSITS 756417 ACCU PROV FOR BENEFITS 119207 1068387 X PART X, LINE 2: THE COOPERATIVE'S POLICY IS TO EVALUATE THE LIKELIHOOD THAT ITS UNCERTAIN TAX POSITIONS WILL PREVAIL UPON EXAMINATION BASED ON THE EXTENT TO WHICH THOSE POSITIONS HAVE SUBSTANTIAL SUPPORT WITHIN THE INTERNAL REVENUE CODE AND REGULATIONS, REVENUE RULINGS, COURT DECISIONS, AND OTHER EVIDENCE. IT IS THE OPINION OF MANAGEMENT THAT THE COOPERATIVE HAS NO SIGNIFICANT UNCERTAIN TAX POSITIONS THAT WOULD BE SUBJECT TO CHANGE UPON EXAMINATION. THE FEDERAL INCOME TAX RETURNS OF THE COOPERATIVE ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. ALL TAX FILINGS ARE CURRENT. 0 INITIATIVE FOUNDATION 405 FIRST STREET SOUTHEAST LITTLE FALLS MN 56345 363451562 501(C)(3) 10000 0 PROVIDE PERMANENT SUPPORT FOR COMMUNITY AND ECONOMIC DEVELOPMENT IN ECE CENTRAL MINNESOTA SERVICE AREA. 1 X X 0 1 0 JUSTIN JAHNZ PRESIDENT/CEO 215800 0 0 0 0 0 75452 0 25706 0 316958 0 0 0 LISA PRACHAR VP/CFO (APPOINTED 3/1/21) 186274 0 0 0 0 0 100267 0 25504 0 312045 0 0 0 ANDY OLSON VP/CHIEF OPERATING OFFICER 195285 0 0 0 0 0 47433 0 25591 0 268309 0 0 0 MARK NELSON MANAGER, GOV'T & BUSINESS 147109 0 0 0 0 0 104015 0 3387 0 254511 0 0 0 TY HOUGLUM VP/CHIEF INFORMATION OFFICER 173314 0 0 0 0 0 49949 0 25418 0 248681 0 0 0 TOR KINDEM CREW FOREMAN 155490 0 0 0 0 0 64719 0 24935 0 245144 0 0 0 DAVID WALETSKI MANAGER, ENGINEERING 147086 0 0 0 0 0 56251 0 25251 0 228588 0 0 0 CHRISTY FLASPETER HR MANAGER 157775 0 0 0 0 0 15777 0 20340 0 193892 0 0 0 TANNER OLSON LINE PERSONNEL 157000 0 0 0 0 0 9983 0 8863 0 175846 0 0 0 CHERYL HAGFORS VP/CFO (RETIRED 4/1/21) 152202 0 0 0 0 0 1908 0 6723 0 160833 0 0 0 FORM 990, SCHEDULE J, PART II, COLUMN C COMPENSATION OF OFFICERS, DIRECTORS, KEY EMPLOYEES, HIGHEST COMPENSATED EMPLOYEES: INCLUDED IN OTHER DEFERRED COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THESE AMOUNTS DO NOT REPRESENT ANY CURRENT YEAR CONTRIBUTIONS TO THE PLAN. THEY ARE ESTIMATES OF THE INCREASE IN THE ACTUARIAL VALUE OF THE PLANS RECEIVED FROM THE NRECA. THE CURRENT YEAR EXPENSE AND THE INCREASE IN ACTUARIAL VALUE FOR EACH EMPLOYEE ARE DISCLOSED IN THE STATEMENT ON SCHEDULE O FOR FORM 990, PART VII, COLUMN F. GREAT RIVER ENERGY JOSEPH MORLEY REPRESENTS THE COOPERATIVE ON GREAT RIVER ENERGY'S BOARD 80073518 PURCHASE OF WHOLESALE POWER 0 GREAT RIVER ENERGY LONNIE JOHNSON REPRESENTS THE COOPERATIVE ON GREAT RIVER ENERGY'S BOARD 80073518 PURCHASE OF WHOLESALE POWER 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION IS A MEMBER OWNED COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A THERE IS ONE CLASS OF MEMBERSHIP AND MEMBERS ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS VOTE ON BYLAW CHANGES AND ANY OTHER DECISIONS AS SPECIFIED IN THE BYLAWS. FORM 990, PART VI, SECTION B, LINE 11B COPIES OF FORM 990 ARE PROVIDED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND DISCUSSED AT THE EAST CENTRAL ENERGY BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 12C EAST CENTRAL ENERGY ENFORCES WHAT IS IN THE EMPLOYEE HANDBOOK RELATED TO CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 HUMAN RESOURCE DEPARTMENT GATHERS MARKET COMPENSATION DATA FOR ALL EMPLOYEES AND THE BOARD OF DIRECTORS PERFORMS A REVIEW AND DETERMINES THE CEO COMPENSATION. OTHER KEY EMPLOYEE COMPESNATION IS DETERMINED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND THE FINANCIAL STATEMENTS ARE AVAILABLE ON EAST CENTRAL ENERGY'S WEBSITE AND BY REQUEST. THE CONFLICT OF INTEREST STATEMENT IS IN THE EMPLOYEE HANDBOOK AND IS NOT AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION A, COLUMN F INCLUDED IN COLUMN (F), ESTIMATED AMOUNT OF OTHER COMPENSATION, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THE ESTIMATED INCREASE FOR JUSTIN JAHNZ IS $68,939, $41,529 FOR ANDY OLSON, $94,672 FOR LISA PRACHAR, $44,767 FOR TY HOUGLUM, $0 FOR CHRISTY FLASPETER, $0 FOR TANNER OLSON, $61,561 FOR TOR KINDEM, $0 FOR CHERYL HAGFORS, $99,899 FOR MARK NELSON, AND $51,778 FOR DAVID WALETSKI. THESE AMOUNTS ARE ESTIMATES IN THE INCREASE OF THE VALUE OF THE PLAN AND ARE NOT CURRENT YEAR EXPENSES OF THE COOPERATIVE. THE CURRENT YEAR EXPENSE FOR THIS DEFINED BENEFIT PLAN WAS $50,959, $26,637, $34,850, $33,109, $0, $0, $26,182, $19,667, $33,448, AND $35,982, RESPECTIVELY. FORM 990, PART IX, LINE 4 AS REQUIRED BY FORM 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: NORTHLAND CONNECT BROADBAND K-1 - TAX TO BOOK 9,111. LOCAL ACCESS NETWORK K-1 - TAX TO BOOK -14,220. RETIREMENT OF CAPITAL CREDITS -6,012,934. ALLOCATED CAPITAL CREDITS 11,323,942. ECE NET LLC 412 N MAIN BRAHAM MN 55006 202174383 PROVIDER OF HIGH SPEED INTERNET SERVICE MN 58820 1359882 EAST CENTRAL ENERGY DIVERSIFIED ENTERPRISES LLC 412 N MAIN BRAHAM MN 55006 411995071 PROVIDER OF OIL, PROPANE, AND NATURAL GAS MN 62685 25142 EAST CENTRAL ENERGY EAST CENTRAL ENERGY TRUST 412 N MAIN BRAHAM MN 55006 411889062 COMMUNITY TRUST MN 501(C)(3) LINE 8 N/A 0 LOCAL ACCESS NETWORK LLC 2220 125TH STREET NW RICE MN 563679701 411941823 PROVIDER OF TELEPHONE, INTERNET AND CABLE SERVICES MN N/A UNRELATED 28440 0 0 0.50000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 EAST CENTRAL ENERGY TRUST R 86738 ACTUAL AMOUNTS TRANSFERRED