2021-11-12T12:09:07-06:00 2020-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2020-01-01 410484875 PKM ELECTRIC COOPERATIVE INC PKME 2187454711 406 NORTH MINNESOTA STREET WARREN MN 56762 KAREN OLSON CFO 2187454711 2021-11-05 1 KAREN OLSON 999009999 MATT LAUGHLIN P00014168 7017754685 2021-11-05 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z KAREN OLSON 406 NORTH MINNESOTA STREET WARREN MN 56762 15259714 0 X WWW.PKMCOOP.COM X 1940 MN SALE OF ELECTRICITY TO MEMBERS 9 9 18 0 -8627 0 0 0 15101900 14675809 331439 300241 560 234269 15433899 15210319 0 0 770080 782046 426729 451032 0 0 0 13921323 13442730 15118132 14675808 315767 534511 31051007 33297526 14182141 15641397 16868866 17656129 TO PROVIDE ELECTRIC SERVICE TO MEMBERS. 0 0 PROVIDE ELECTRIC SERVICE TO 2,856 MEMBERS 0 0 0 0 0 0 0 1 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 1 1 0 0 1 15 0 18 1 1 1 0 0 0 0 0 0 14586109 673766 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X KAREN OLSON 2187454711 406 N MINNESOTA STREET WARREN MN 56762 X MARK HATTON PRESIDENT 8.00 X X 9750 0 0 MIKE BEAUDRY VICE PRESIDENT 8.00 X X 7250 0 0 WAYNE MALM SECRETARY TREASURER 8.00 X X 6500 0 0 TOM WOINAROWICZ DIRECTOR 5.00 X 6750 0 0 STEVE GOODWIN DIRECTOR 5.00 X 6750 0 0 BLAKE OWENS DIRECTOR 5.00 X 8000 0 0 PAUL AAKRE DIRECTOR 5.00 X 7750 0 0 JEFF FOLLAND DIRECTOR 5.00 X 1000 0 0 CHRIS MORTENSON DIRECTOR 5.00 X 5750 0 0 CLIFFORD PETERSON DIRECTOR 5.00 X 3500 0 0 MIKE SCHMIDT CEO 50.00 X 143280 0 93621 KAREN OLSON CFO 50.00 X 101782 0 162704 SCOTT SLUSAR LINE FOREMAN 45.00 X 100617 0 81648 JOE MARCOTTE OPERATIONS MANAGER 50.00 X 101281 0 100394 JEFFREY RUSTAD MANAGER MEMBER SERVICES 50.00 X 106656 0 57400 616616 0 495767 5 0 1 0 OLSON UNDERGROUND INC 22593 US HWY 75 WARREN MN 56762 INSTALLATION OF UNDERGROUND UTILITIES 116552 1 SALE OF ELECTRICITY 531310 14675809 14675809 14675809 300241 300241 40929 49395 -8466 -8466 CAPITAL CREDITS 900099 242896 242896 FEDERATED ACQUISITIONS K-1 541900 -161 -161 242735 15210319 14918705 -8627 300241 X 782046 451032 591326 981658 COST OF POWER PURCHASED 9599253 DISTRIBUTION EXPENSE 1265525 ALL OTHER EXPENSES 531485 ADMINISTRATIVE & GENERA 469108 4375 14675808 185384 185120 2338143 4375497 1833821 1506926 287428 272803 971098 811717 415497 32165 38101441 14616654 22758516 23484787 901155 1079183 1342216 1549328 17749 0 31051007 33297526 1498185 1429222 1019 1011 12532086 14030390 150851 180774 14182141 15641397 X 0 0 19490 19720 16849376 17636409 16868866 17656129 31051007 33297526 X 534511 252752 X X 0 1 X 1 0 0 1 X 141694 141694 1110875 651912 458963 36275843 13964742 22311101 573029 573029 23484787 CONSUMER DEPOSITS 15050 CONSUMER ENERGY PREPAYMENTS 165724 180774 X 15087219 0 15087219 123100 123100 15210319 13893762 0 13893762 782046 782046 14675808 PART IV, LINE 2B: THE MEMBERS OF THE COOPERATIVE CAN ELECT TO ROUND UP THEIR MONTHLY ELECTRIC BILL TO THE NEXT DOLLAR. THESE FUNDS COLLECTED FROM THE MEMBERSHIP ARE HELD IN A COOPERATIVE ACCOUNT UNTIL THEY ARE RELEASED TO THE PKM ELECTRIC COOPERATIVE TRUST'S OPERATION ROUND-UP PROGRAM. THESE FUNDS ARE TRANSFERRED DIRECTLY TO THE OPERATION ROUND-UP ON A MONTHLY BASIS. FUNDS THAT EXIST AT THE END OF THE YEAR ARE A RESULT OF A TIMING DIFFERENCE IN THE RECEIPT OF THE FUNDS AND THE RELEASE OF THEM TO THE OPERATION ROUND-UP. FOR THE YEAR ENDED DECEMBER 31, 2020, THE ACCOUNT HELD $1,011. PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. 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 INCOME TAX RETURNS OF THE COOPERATIVE ARE SUBJECT TO EXAMINATION BY THE IRS AND STATE TAX AUTHORITIES, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. PART XI, LINE 4B - OTHER ADJUSTMENTS: BOOK TO TAX DIFFERENCE ON LLC INVESTMENTS 123,100. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATED CAPITAL CREDITS 782,046. X X X 0 0 0 KAREN OLSON CFO 101782 0 0 0 0 0 151353 0 11351 0 264486 0 0 0 MIKE SCHMIDT CEO 143280 0 0 0 0 0 63450 0 30171 0 236901 0 0 0 JOE MARCOTTE OPERATIONS MANAGER 101281 0 0 0 0 0 72389 0 28005 0 201675 0 0 0 SCOTT SLUSAR LINE FOREMAN 100617 0 0 0 0 0 67475 0 14173 0 182265 0 0 0 JEFFREY RUSTAD MANAGER MEMBER SERVICES 106656 0 0 0 0 0 46386 0 11014 0 164056 0 0 0 FORM 990, SCHEDULE J, PART II, COLUMN C ON THE SCHEDULE OF OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES, COLUMN C, RETIREMENT AND OTHER DEFERRED COMPENSATION, INCLUDES 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 REFLECTED IN THE SCHEDULE O STATEMENT FOR FORM 990, PART VII, COLUMN F. FORM 990, PART VI, SECTION A, LINE 6 THERE IS ONLY ONE CLASS OF MEMBERS. ANY PERSON, FIRM, CORPORATION OR BODY POLITIC MAY BECOME A MEMBER BY (A) PAYING THE PAR VALUE FOR ONE SHARE OF STOCK, (B) AGREEING TO PURCHASE ELECTRIC ENERGY FROM THE COOPERATIVE, (C) AGREEING TO COMPLY WITH AND BE BOUND BY THE ARTICLES OF INCORPORATION AND BYLAWS FORM 990, PART VI, SECTION A, LINE 7A EVERY MEMBER HAS ONE VOTING RIGHT AT THE ANNUAL MEETING TO VOTE ON THE SELECTION OF OFFICERS. FORM 990, PART VI, SECTION A, LINE 7B EVERY MEMBER HAS ONE VOTING RIGHT ON THE APPROVAL OF CHANGES TO THE ORGANIZATION DOCUMENTS AT THE ANNUAL MEETING. THE SALE, LEASE, OR EXCHANGE OF ALL THE COOPERATIVE'S PROPERTY, RIGHTS, PRIVILEGES, AND FRANCHISES MUST BE APPROVED BY 2/3 VOTE OF THE MEMBERS. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES THAT CAN ACT ON BEHALF OF THE GOVERNING BOARD. ALL COMMITTEES MAKE ONLY RECOMMENDATIONS TO THE GOVERNING BOARD WHICH THEN MAKES THE FINAL APPROVAL. FORM 990, PART VI, SECTION B, LINE 11B THE MANAGER WILL REVIEW THE FINAL FORM 990. THE FORM 990 WILL BE PROVIDED TO THE BOARD FOR REVIEW ELECTRONICALLY PRIOR TO THE BOARD MEETING. THE MANAGER WILL ALSO PRESENT THE FORM 990 TO THE THE FULL GOVERNING BOARD AT A BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY, WHICH COVERS THE BOARD OF DIRECTORS AND OFFICERS OF THE COOPERATIVE, IS DISCUSSED AT A BOARD MEETING. THE MANAGER AND ASSISTANT MANAGER REVIEW ANY CONFLICTS THAT NEED TO BE DISCLOSED. IF A CONFLICT ARISES, IT IS BROUGHT TO THE BOARD'S ATTENTION AND THE INDIVIDUAL WITH THE CONFLICT ABSTAINS FROM VOTING ON THAT ISSUE. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD MEMBERS, WHO ARE INDEPENDENT, REVIEW AND APPROVE THE COMPENSATION OF THE MANAGER BY USING COMPARABILITY DATA ONLY. THE APPROVAL IS RECORDED IN THE BOARD MINUTES. THE BOARD MEMBERS ALSO APPROVE THEIR OWN ADJUSTMENTS TO THEIR COMPENSATION BASED ON COMPARABILITY DATA ONLY. ALL OTHER PAID EMPLOYEES' COMPENSATION IS REVIEWED AND APPROVED BY THE MANAGER. THIS PROCESS IS CONDUCTED EVERY OCTOBER. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE FINANCIAL STATEMENTS ARE AVAILABLE IN THE MONTHLY NEWSLETTER AND EVERY MEMBER IS GIVEN A COPY OF THE GOVERNING DOCUMENTS WHEN THEY BECOME MEMBERS. FORM 990, PART VII, SECTION A, COLUMN (F) INCLUDED IN COLUMN (F), ESTIMATED AMOUNT OF OTHER COMPENSATION FROM THE ORGANIZATION AND RELATED ORGANIZATIONS, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THE ESTIMATED INCREASE IS $140,514 FOR KAREN OLSON, $47,720 FOR MIKE SCHMIDT, $61,350 FOR JOE MARCOTTE, $34,853 FOR JEFFREY RUSTAD, AND $57,995 FOR SCOTT SLUSAR. 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 $31,228, $43,602, $31,855, $33,278, AND $17,871 FOR KAREN, MIKE, JOE, JEFFREY, AND SCOTT, RESPECTIVELY. FORM 990, PART IX, LINE 4: PATRONAGE DIVIDENDS PAID 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 AND ON SCHEDULE D PARTS XI AND XIII. IN REFERENCE TO FORM 990, 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: RETIREMENT OF CAPITAL CREDITS -406,423. LLC'S INCOME - PER BOOKS -23,261. LLC INCOME PER K-1'S AND FORM 990 -99,839. OTHER INCREASE IN MEMBERSHIP INCOME 230. ALLOCATION CAPITAL CREDITS 782,045. FORM 990, PART XII, LINE 2C: THERE HAVE BEEN NO CHANGES TO THE COOPERATIVE'S OVERSIGHT RESPONSIBILITIES THIS YEAR. PKM ELECTRIC COOPERATIVE TRUST 406 NORTH MINNESOTA STREET WARREN MN 56762 311529073 COLLECT & DISBURSE FUNDS FOR CHARITABLE PURPOSES MN 501(C)(3) 7 PKM ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0