2016-11-07T09:16:22-06:00 2015-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2015-01-01 460225402 EAST RIVER ELECTRIC POWER COOPERATIVE INC EAST 6052564536 211 S HARTH AVE MADISON SD 57042 THOMAS R BOYKO CHIEF EXEC OFFICER/GENERAL MANAGER 6052564536 2016-11-01 1 LAURIE HANSON P00851848 6053391999 2016-11-01 2015 2017-02-10 21:41:12Z THOMAS R BOYKO 211 S HARTH AVE MADISON SD 57042 225570222 0 X WWW.EASTRIVER.COOP X 1949 SD ACQUISITION, TRANSMISSION, AND DISTRIBUTION OF ELECTRIC POWER TO MEMBER SYSTEMS. 22 22 141 0 0 0 0 0 231057267 224595198 58417 308988 820907 662716 231936591 225566902 152549 142691 9986412 9688657 13723024 14211168 0 0 0 207724605 201524386 231586590 225566902 350001 0 373014155 409459834 241011127 268734858 132003028 140724976 EAST RIVER ELECTRIC POWER COOPERATIVE EXISTS TO ENHANCE THE VALUE OF ITS MEMBERS. 0 0 EAST RIVER ELECTRIC POWER COOPERATIVE IS A WHOLESALE ELECTRIC POWER SUPPLY COOPERATIVE SERVING 24 RURAL ELECTRIC COOPERATIVES AND ONE MUNICIPALLY-OWNED ELECTRIC SYSTEM, WHICH IN TURN SERVE MORE THAN 92,000 HOMES AND BUSINESSES AND ABOUT 250,000 CONSUMERS. THE COOPERATIVE OPERATES AND MAINTAINS 2,845 MILES OF HIGH VOLTAGE TRANSMISSION LINE, 228 SUBSTATIONS AND RELATED FACILITIES TO SERVE AN AREA OF 40,000 SQUARE MILES THAT COVERS THE RURAL AREAS OF 41 COUNTIES IN EASTERN SOUTH DAKOTA AND 22 COUNTIES IN WESTERN MINNESOTA. EAST RIVER IS ALSO A TRANSMISSION OWNER IN THE SOUTHWEST POWER POOL. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 78 0 1 141 1 0 0 0 0 0 210937148 3792699 0 X 22 22 0 0 0 0 1 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 X BARB STROM 6052564536 211 S HARTH AVE MADISON SD 57042 X JAMES RYKEN PRESIDENT 7.00 X X 16609 0 5520 VICTOR GROSS VICE-PRESIDENT 4.00 X X 12572 0 0 ERVIN FINK SECRETARY 4.00 X X 11739 0 0 BERT ROGNESS TREASURER 5.00 X X 16367 0 0 DAVID ALLEN DIRECTOR 3.00 X 9083 0 0 RICHARD DAILEY DIRECTOR 4.00 X 12951 0 0 KEN GILLASPIE DIRECTOR 6.00 X 18867 0 0 GALEN GRANT DIRECTOR 5.00 X 15527 0 0 RICHARD KOUPAL DIRECTOR 5.00 X 15174 0 0 VERDON LAMB DIRECTOR 5.00 X 11530 0 0 KERMIT PEARSON DIRECTOR 4.00 X 9796 0 0 ISABEL TROBAUGH DIRECTOR 4.00 X 10556 0 0 LYLE WITTE JAN - MARCH DIRECTOR 4.00 X 2694 0 0 PAT HOMAN DIRECTOR 5.00 X 16009 0 0 LESLIE MEHLHAFF DIRECTOR 5.00 X 14567 0 0 MARK ROGEN DIRECTOR 4.00 X 13114 0 0 ALAN VEDVEI DIRECTOR 4.00 X 11622 0 0 DARREN STRASSER DIRECTOR 5.00 X 13784 0 0 MARK LARSON JAN - AUG DIRECTOR 5.00 X 2415 0 6384 RON SAMUELSON DIRECTOR 4.00 X 12392 0 0 GARY BACHMAN DIRECTOR 4.00 X 13565 0 0 DUANE WOLBRINK DIRECTOR 5.00 X 14952 0 0 RONALD JORGENSON SEPT - DEC DIRECTOR 6.00 X 3074 0 0 ALAN HINDERMAN MAY - DEC DIRECTOR 6.00 X 10737 0 0 TOM BOYKO CHIEF EXEC OFFICER/GENERAL MANAGER 43.00 X 366724 0 90123 GREG HOLLISTER CHIEF FINANCIAL OFFICER 44.00 X 207832 0 167018 JIM EDWARDS CHIEF OPERATIONS OFFICER 45.00 X 213312 0 96568 SCOTT PARSLEY CHIEF MEMBER AND PUBLIC REL OFFICER 44.00 X 191755 0 78466 ROBERT SAHR GENERAL COUNSEL 43.00 X 165778 0 58260 LARRY DEKRAMER TRANSMISSION AND SUBSTATION MANAGER 46.00 X 145947 0 59819 MARK HOFFMAN ENGINEERING SERVICES MANAGER 42.00 X 130593 0 36994 RANDY HOFFMAN BUDGET SERVICES MANAGER 41.00 X 122067 0 79815 1833704 0 678967 12 0 1 0 PRIMOSIR AEVENIA INC 3030 24TH AVENUE SOUTH MOORHEAD MN 56560 LINE CONSTRUCTION 3265332 PAUL HASTINGS LLP 71 S WACKER DRIVE 45TH FLOOR CHICAGO IL 60606 LEGAL CONSULTANTS 234727 CH GUERNSEY AND COMPANY 5555 NORTH GRAND BOULEVARD OKLAHOMA CITY OK 73112 RATE CONSULTANTS 158028 ENGBARTH DIRECTIONAL DRILLING 410 EAST AVE CANISTOTA SD 57012 LINE CONSTRUCTION 129046 BROOKS CONSTRUCTION SERVICES 27081 S SUNDOWNER AVE SIOUX FALLS SD 57106 ENGINEERING CONSULTANT 116458 7 SALE OF POWER 221000 210769130 210769130 G&T CAPITAL CREDITS 221000 6759103 6759103 SERVICE REVENUE 221000 4311523 4311523 WHEELING REVENUE 221000 2755442 2755442 224595198 302792 302792 663119 0 663119 663119 663119 9516 3320 6196 6196 6196 MISCELLANEOUS 900099 -403 -403 -403 225566902 225258317 0 308585 142691 9688657 1279778 10226310 1897892 807188 8630818 7384154 COST OF POWER 179449409 TRANSMISSION-OPERATIONS 7091220 ADMIN & GENERAL 6748670 TRANSMISSION-MAINTENANC 2093586 -9873471 225566902 1960546 685560 23625945 24248953 10255525 9373177 8053496 6803152 364613098 100073933 231356692 264539165 5604723 5950078 92157228 97859749 373014155 409459834 21988571 23857480 195841037 200344852 19250000 38974148 3931519 5558378 241011127 268734858 X 2500 2500 0 0 132000528 140722476 132003028 140724976 373014155 409459834 X 0 8721948 X 0 1 X 1 0 5091223 5091223 18689034 2402645 16286389 195621113 46800650 148820463 145211728 50870638 94341090 264539165 BASIN ELECTRIC POWER COOPERATIVE 88376486 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 5650733 C OTHER INVESTMENTS 241331 C FEDERATED RURAL ELECTRIC INSURANCE CORPORATION 578237 C LOANS TO MEMBERS 1528914 C COBANK 1484048 C 97859749 DEFERRED CREDITS 4489676 POSTRETIREMENT BENEFIT OBLIGATIONS 1068702 5558378 X 225566902 0 225566902 0 225566902 215878245 0 215878245 9688657 9688657 225566902 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE (IRS) AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT INCOME FROM INCOME TAX (FORM 990) WITH THE IRS. THE COOPERATIVE BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL FILING REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. 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. GENERALLY, THE COOPERATIVE IS NO LONGER SUBJECT TO FEDERAL OR STATE TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2012. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2015 MARGINS TO MEMBERS IN 2016 9,688,657. 1 CHIESMAN FOUNDATION FOR DEMOCRACY INC 1641 DEADWOOD AVE RAPID CITY SD 57702 460438703 501(C)(3) 8000 CURRICULUM SPONSOR FOR KIDS VOTING LAKE AREA IMPROVEMENT CORPORATION PO BOX 32 MADISON SD 57042 510183368 501(C)(3) 10000 ECONOMIC DEVELOPMENT SOUTH DAKOTA AGRICULTURAL & RURAL LEADERSHIP INC BOX 2170 BROOKINGS SD 57007 364293293 501(C)(3) 7500 AG LEADERSHIP PROGRAM SOUTH DAKOTA STATE UNIVERSITY FOUNDATION BOX 525 BROOKINGS SD 57007 460273801 501(C)(3) 30000 SCHOLARSHIPS AND CAPITAL IMPROVEMENT CAMPAIGN MITCHELL TECHNICAL INSTITUTE FOUNDATION 1800 EAST SPRUCE MITCHELL SD 57301 460452950 501(C)(3) 20000 EDUCATING PEOPLE, EMPOWERING COMM CAPITAL CAMPAIGN FORWARD SIOUX FALLS PO BOX 907 SIOUX FALLS SD 57101 460396647 OTHER 6700 ECONOMIC DEVELOPMENT 5 1 PART I, LINE 2: THE ORGANIZATION MAKES GRANTS TO VARIOUS FISCALLY RESPONSIBLE AND TRUSTWORTHY ORGANIZATIONS IN SOUTH DAKOTA AND MINNESOTA. THE GRANTS ARE APPROVED BY THE ORGANIZATION'S BOARD OF DIRECTORS IN THE YEARLY BUDGET AND ALSO AUTHORIZED FOR DISBURSEMENT BY MANAGEMENT UPON RECEIPT OF INVOICE. THERE ARE NO RESTRICTIONS ON THE GRANTS EXCEPT FOR THE RECIPIENTS TO USE THE FUNDS AS REPRESENTED IN THE INVOICE TO PROMOTE EDUCATION OR TO PROMOTE ECONOMIC DEVELOPMENT IN THE AREAS SERVED BY EAST RIVER ELECTRIC. X 1 1 X X X 0 0 0 TOM BOYKO CHIEF EXEC OFFICER/GENERAL MANAGER 364831 0 0 0 1893 0 67914 0 25389 0 460027 0 0 0 GREG HOLLISTER CHIEF FINANCIAL OFFICER 205882 0 0 0 1950 0 144842 0 24335 0 377009 0 0 0 JIM EDWARDS CHIEF OPERATIONS OFFICER 211362 0 0 0 1950 0 85613 0 13112 0 312037 0 0 0 SCOTT PARSLEY CHIEF MEMBER AND PUBLIC REL OFFICER 188967 0 0 0 2788 0 52822 0 27671 0 272248 0 0 0 ROBERT SAHR GENERAL COUNSEL 165245 0 0 0 533 0 34795 0 25210 0 225783 0 0 0 LARRY DEKRAMER TRANSMISSION AND SUBSTATION MANAGER 144688 0 0 0 1259 0 49428 0 11871 0 207246 0 0 0 MARK HOFFMAN ENGINEERING SERVICES MANAGER 130351 0 0 0 242 0 17142 0 21231 0 168966 0 0 0 RANDY HOFFMAN BUDGET SERVICES MANAGER 120420 0 0 0 1647 0 57804 0 23311 0 203182 0 0 0 PART I, LINE 1A USE OF CHARTER AIR IS ALLOWED ONLY WHEN COMMERCIAL AIRLINE SERVICE IS NOT AVAILABLE OR PRACTICAL. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE SHALL HAVE NO STOCK, BUT MEMBERSHIP IN THE COOPERATIVE SHALL BE EVIDENCED BY A MEMBERSHIP CERTIFICATE. MEMBERSHIP IN THE COOPERATIVE SHALL BE OF FOUR CLASSES AS FOLLOWS: (A)CLASS "A" MEMBERSHIP. ANY INCORPORATED COOPERATIVE ASSOCIATION ORGANIZED UNDER STATE LAWS GOVERNING RURAL ELECTRIC COOPERATIVES, FOR THE PURPOSES OF CONSTRUCTING, OPERATING AND MAINTAINING ELECTRIC DISTRIBUTION LINES OR SYSTEMS MAY BECOME A CLASS "A" MEMBER UPON COMPLIANCE WITH THE OTHER MEMBERSHIP REQUIREMENTS OF THESE BYLAWS. EACH CLASS "A" MEMBER SHALL BE ENTITLED TO ONE (1) DIRECTOR AND ONE (1) VOTE AT ANY COOPERATIVE MEETING. (B)CLASS "B" MEMBERSHIP. ANY MUNICIPALITY OR OTHER BODY POLITIC MAY BECOME A CLASS "B" MEMBER UPON COMPLIANCE WITH THE OTHER MEMBERSHIP REQUIREMENTS OF THESE BYLAWS. CLASS "B" MEMBERS SHALL COLLECTIVELY BE ENTITLED TO ONE (1) DIRECTOR AND ONE (1) VOTE AT ANY COOPERATIVE MEETING. (C)CLASS "C" MEMBERSHIP. ANY FIRM, ASSOCIATION, CORPORATION, BUSINESS TRUST, LIMITED LIABILITY COMPANY OR OTHER ENTITY NOT FITTING THE REQUIREMENTS OF CLASS "A OR "B" MEMBERSHIP MAY BECOME A CLASS "C" MEMBER UPON COMPLIANCE WITH THE OTHER MEMBERSHIP REQUIREMENTS OF THESE BYLAWS. CLASS "C" MEMBERS SHALL COLLECTIVELY BE ENTITLED TO ONE (1) DIRECTOR AND ONE (1) VOTE AT ANY COOPERATIVE MEETING. (D)CLASS "D" MEMBERSHIP. ANY COOPERATIVE, FIRM, ASSOCIATION, CORPORATION, BUSINESS TRUST, LIMITED LIABILITY COMPANY OR OTHER ENTITY NOT FITTING THE REQUIREMENTS OF CLASS "A", "B", OR "C" MEMBERSHIP MAY BECOME A CLASS "D" MEMBER UPON COMPLIANCE WITH THE OTHER MEMBERSHIP REQUIREMENTS OF THESE BYLAWS. CLASS "D" MEMBERS SHALL COLLECTIVELY BE ENTITLED TO ONE (1) DIRECTOR AND ONE (1) VOTE AT ANY COOPERATIVE MEETING. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 UPON COMPLETION OF EAST RIVER'S 990, THE RETURN WILL BE POSTED TO THE SECURE AREA OF EAST RIVER'S WEB SITE FOR THE DIRECTORS, OFFICERS, AND MANAGEMENTS REVIEW. ANY QUESTIONS OR CONCERNS WILL BE ADDRESSED AND THE 990 WILL BE FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS AND EMPLOYEES ARE COVERED BY THE CONFLICT OF INTEREST POLICY. AN EMPLOYEE OR DIRECTOR SHALL MAKE PROMPT AND FULL DISCLOSURE TO THE BOARD OR TO THE EMPLOYEE'S SUPERVISOR OF ANY POTENTIAL SITUATION WHICH MAY INVOLVE A CONFLICT OF INTEREST. DETERMINATION OF WHETHER A CONFLICT EXISTS AND REVIEW OF THE CONFLICT WILL BE MADE BY THE BOARD IF THE PERSON INVOLVED IS A BOARD MEMBER OR GENERAL MANAGER; IF THE PERSON INVOLVED IS AN EMPLOYEE, THE EMPLOYEE'S SUPERVISOR WILL MAKE THIS DETERMINATION. ANY EMPLOYEE OR DIRECTOR WHOSE CONDUCT VIOLATES THE CONFLICT OF INTEREST POLICY SHALL BE SUBJECT TO DISCIPLINARY ACTION UP TO AND INCLUDING EXPULSION FROM THE BOARD OR TERMINATION; THIS IS DETERMINED BY THE BOARD OR GENERAL MANAGER. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION PLAN IS BASED ON A COMPILATION OF SALARY SURVEY DATA ACQUIRED THROUGH THE SERVICES OF A PROFESSIONAL CONSULTANT. AN AVERAGE OF THE MEDIAN RATES IN THE VARIOUS SURVEYS IS USED TO DETERMINE THE EAST RIVER MARKET RATE. THE BOARD OF DIRECTORS ANNUALLY REVIEWS THE MARKET DATA AND APPROVES ANY CHANGES. THIS PROCESS WAS LAST UNDERTAKEN IN 2015. FORM 990, PART VI, SECTION C, LINE 19 AVAILABLE UPON REQUEST BY CALLING THE OFFICE, STOPPING IN, OR VIA EMAIL. 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 GENERAL MANAGER, ASSISTANT GENERAL MANAGERS AND OTHER HIGHLY 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 XI, LINE 9: ALLOCATION OF 2015 MARGINS TO MEMBERS IN 2016 9,688,657. RETIREMENT OF CAPITAL CREDITS -1,005,000. AMORTIZATION OF POSTRETIREMENT BENEFIT TRANSITION OBLIGATION 38,291. 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. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 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.