2013-08-14T09:07:36-07:00 2012-12-31 990 2012-01-01 383321875 GREAT LAKES ENERGY COOPERATIVE GREA 2315826521 PO Box 70 Boyne City MI 49712 William Scott 2315826521 2013-08-14 2012 2016-02-24 21:20:13Z Steve Boeckman 1323 Boyne Ave Boyne City MI 49712 188772622 0 X www.gtlakes.com X 1998 MI Provide electric service to members. 9 9 251 0 47414 45564 0 0 170738070 187381895 1111037 1245917 26307 27491 171875414 188655303 0 0 9084372 11902572 2286107 2453411 0 0 0 160504935 174298872 171875414 188654855 0 448 405755356 424737654 257598471 267751291 148156885 156986363 The mission of Great Lakes Energy Cooperative is to deliver reliable electric service at the best possible value to members of the electric cooperative. 0 0 188654855 0 187381895 Provide electric service to member/customers - approximately 125,000 member/customers. 0 0 0 188654855 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 1 116 0 1 251 1 1 1 0 0 0 0 178123498 9258397 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 MI X WILLIAM M SCOTT 2315826521 1323 BOYNE AVENUE BOYNE CITY MI 49712 X RICHARD WALSWORTH 10.6 0 X X 23000 0 4436 MARK CARSON 9.2 0 X X 28600 0 0 PAUL BYL 9.5 0 X X 21800 0 2726 LAURENCE MONSHOR 8.3 0 X X 27700 0 0 ROBERT KRAN 8.5 0 X 28200 0 0 RIC EVANS 7.4 0 X 27500 0 0 ROBERT THUROW 6 0 X 27025 0 3413 SUSAN SCOTT 9.2 0 X 21000 0 0 DALE FARRIER 8.1 0 X 18700 0 2436 PAUL SCHEMANSKI 7.4 0 X 10250 0 0 STEVEN BOECKMAN 60 0 X 429186 0 94748 WILLIAM SCOTT 60 0 X 244274 0 91648 MICHAEL ROBERGE 60 0 X 179193 0 103120 PATRICK ANZELL 60 0 X 163585 0 82254 JENNIFER WILSON 60 0 X 157217 0 62196 SHARI CULVER 60 0 X 148302 0 43526 DAVID MATZ 60 0 X 129492 0 85619 JAMES ANCE 60.00 0 X 119769 0 72496 EDWIN ESTELLE 0 0 X 25940 0 0 FREDERICK VERMEERSCH 0 0 X 17698 0 0 1848431 0 648618 30 1 1 0 Thunder Bay Tree Service LLC 1172 HALLEY RD ALPENA MI 49707 Tree trimming contractor 629900 Willey Construction LLC 9485 INGLESIDE RD LEVERING MI 49755 Electric contractor 538365 Dykema Gossett PLLC DEPT CH 16382 PALATINE IL 60055 Attorney 195636 ROEMER UTILITY SERVICES 279 KADEN PO BOX 124 BOYNE CITY MI 49712 UG BORING CONTRACTOR 147967 4 0 Electric power sold to members 221000 178123498 178123498 0 0 Program related investment income 221000 8825336 8825336 0 0 Pole rental income 221000 383589 0 0 383589 Tower rental income 221000 46966 0 46966 0 Real property rental income 221000 2506 0 0 2506 0 0 0 0 187381895 1234739 20151 448 1214140 0 0 0 0 0 0 0 0 0 0 0 128497 0 117319 0 11178 11178 11178 0 0 Miscellaneous non-operating revenue 900099 27491 27491 0 0 0 0 0 0 27491 188655303 187007654 47414 1600235 X 0 0 0 0 0 0 11902572 11902572 2453411 2453411 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9767623 9767623 0 0 0 0 0 0 11752229 11752229 0 0 0 0 0 0 Purchased electric power 114891964 114891964 0 0 Operating and maintenance expenses 24738724 24738724 0 0 Administrative and general expenses 5172767 5172767 0 0 Customer service and selling expenses 7464202 7464202 0 0 511363 511363 0 0 188654855 188654855 0 0 20837 -1120063 5656924 5962674 0 0 19643469 23732543 0 0 0 0 679170 566239 2192061 2308579 1673838 2857251 396589880 109853315 279244634 286736565 907324 1022645 754454 807730 93449706 100313171 1532939 1550320 405755356 424737654 20052727 21843873 0 0 0 0 0 0 0 0 0 0 219978407 227392529 17567337 18514889 257598471 267751291 X 519740 519740 3318859 3561215 144318286 152905408 148156885 156986363 405755356 424737654 X 448 0 0 0 0 8829030 X 0 1 X 1 0 0 653545 653545 0 13611884 3941451 9670433 0 0 0 0 0 382324451 105911864 276412587 0 0 0 0 286736565 Patronage capital from assoc. organizations 95473263 C Coop. Finance Corp. capital certificates 4687564 C Investments in other related organizations 152344 C 100313171 0 Post retirement benefits 7678700 Def. cr. - contributions in aid of construction 4475045 Def. regulatory credits 2628897 Directors' pension plan 2247041 Deferred revenue 1260601 Deferred compensation 224605 18514889 X 188616238 0 0 0 0 0 188616238 0 39065 39065 188655303 176713666 0 0 0 -38617 -38617 176752283 0 11902572 11902572 188654855 SchD_P10_S00_L02 Schedule D, Part X, Line 2 Management believes positions taken during prior years and to be taken for 2012 in reporting federal taxable income for the Company and for its subsidiary and reporting the taxable base subject to the Michigan Business Tax are not controversial and have a high degree of being sustained upon any future examination by the taxing authority. SchD_P11_S00_L04b Schedule D, Part XI, Line 4b In the audited financial statements, loss on sale of assets ($117,319), gain on sale of assets ($128,497) and miscellaneous non-operating income ($27,439) are combined ( $38,617) and netted against Other Expenses. Therefore, the revenue which reduced expenses in the financial statements needs to be added back to revenue because it was shown as revenue on this 990. Additionally, $448 of Unrelated Business Income was recorded on Great Lakes Energy Cooperative's 990T return that was not included in the Audited Financial Statments. SchD_P12_S00_L02d Schedule D, Part XII, Line 2d In the audited financial statements, loss on sale of assets ($117,319), gain on sale of assets ($128,497) and miscellaneous non-operating income ($27,439) were combined (totaling $38,617) and netted against Other Expenses. Therefore, the reduction in the audited fianancial statements needs to be added back to reconcile to the 990 expenses that do not include the reduction. SchD_P12_S00_L04b Schedule D, Part XII, Line 4b $11,902,572 of capital credits are recorded as an expense in the 990, but are not expensed in the audited financial statements. See below and Part O for Form 990, Part IX, Line 4. The instructions for the Form 990 clarifies that the amount of patronage dividends paid to 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 because 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 our 2012 margins that has been allocated to our members subsequent to year-end as an expense on the 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. X X X X 0 0 0 STEVEN BOECKMAN 372742 0 52816 0 3628 0 74750 0 19998 0 523934 0 0 0 WILLIAM SCOTT 212255 0 30067 0 1952 0 73471 0 18178 0 335923 0 0 MICHAEL ROBERGE 155863 0 22592 0 738 0 84272 0 18848 0 282313 0 0 0 PATRICK ANZELL 143199 0 19733 0 652 0 66206 0 16048 0 245838 0 0 0 JENNIFER WILSON 137298 0 19637 0 283 0 45744 0 16451 0 219413 0 0 0 SHARI CULVER 130107 0 17967 0 229 0 31627 0 11899 0 191829 0 0 0 DAVID MATZ 115892 0 12633 0 967 0 67922 0 17697 0 215111 0 0 0 JAMES ANCE 107254 0 11645 0 869 0 54448 0 18048 0 192264 0 0 0 EDWIN ESTELLE 25940 0 0 0 0 0 0 0 0 0 25940 0 0 0 FREDERICK VERMEERSCH 17698 0 0 0 0 0 0 0 0 0 17698 0 0 0 SchJ_P02_S00_L00 Schedule J, Part II Column C - Other Reportable Compensation: Amounts listed for CEO, CFO and all other employees on Schedule J, in column C, include (per 990 instructions) employer contributions to a qualified 401k plan. It should be noted that this benefit is available to all employees of Great Lakes Energy and therfore this is not a discriminatory benefit. In addition to the 401k match, column C also includes amounts for the actuarial increase for 2012 for the defined benefit pension plan provided to Great Lakes Energy by the National Rural Electric Cooperative Association (NRECA) which administers the multi-employer pension plan. It shoudl also 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 42% less than the actuarial value as reported in column C as Retirement and other Deferred Compensation. The 42% difference is mainly due to very low discount rates used in the actuarial calculation. In addition, the multi-employer aspect of the plan positively impacted the cash paid to the plan for the listed employees for 2012. This benefit is also available to all Great Lakes Energy employees and is nondiscriminatory. Wolverine Power Supply Cooperative Board of Directors 115149198 Purchases of electricity for distribution 0 Michigan Electric Cooperative Association Board of Directors 2603525 Dues fees, Coop magazine and consulting 0 SchL_P04_S00_L00 Schedule L, Part IV 1) Wolverine Power Supply Cooperative is the Generation and Transmission company that sells power to Great Lakes Energy. This power is then delivered to member/consumers of Great Lakes Energy. Three Board members from Great Lakes Energy sit on the Wolverine Power Supply Cooperative Board. There are no business transactions between or among the three Board members. 2) Michigan Electric Cooperative Association (MECA) is a Statewide organization of which Great Lakes Energy and all electric Cooperatives in Michigan are members. Great Lakes Energy pays dues and member magazine costs as well as consulting and pass through fees for coordination and implementation of State of Michigan mandated Energy Optimization programs. One Board Director and the CEO of Great Lakes Energy sit on the MECA Board. There are no business transactions between the Board Member and the CEO. F990_P06_S0A_L06 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. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a Great Lakes Energy is an electric cooperative utility. All members/customers vote for candidates to fill the 9- 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. F990_P06_S0A_L07b 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 bylaw changes proposed for ratification in 2012. F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b The GLE Board of Directors were presented with a questionnaire in May which was used to assist Management in completing pertinent sections of the 990. At a subsequent Board meeting, the Board reviewed the preliminary 990 and discussed specifics of the 990 return. F990_P06_S0B_L12c 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. F990_P06_S0B_L15 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 levels for the Officers each year. F990_P06_S0C_L19 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. 2012 audited financial statement summaries were mailed to members in the June 2013 Country Lines magazine. They are also available upon request. GLE does not make the conflict of interest policy available to the public. F990_P07_S0A_L01a Form 990, Part VII, Section A, Line 1a 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 increases in defined benefit pension plans are also included as Other Compensation 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 42% less than the actuarial value as reported in column F as Other Compensation. The 42% difference is mainly due to very low discount rates used in the actuarial calculation. In addition, the multi-employer aspect of the plan positively impacted the cash paid to the plan for the listed employees for 2012. This benefit is also available to all Great Lakes Energy employees and is nondiscriminatory. F990_P09_S00_L04 Form 990, Part IX, Line 4 The instructions for the 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 because patronage dividends is 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, Great Lakes Energy has reported the amount of our 2012 margins that has been allocated to our members subsequent to year-end. 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. F990_P11_S00_L09 Form 990, Part XI, Line 9 Changes in equity not included in net margins included Employee post retirement health insurance benefit plan and Directors' pension plan adjustments required by FASB 158 and recorded in the audited financial statments as Other Comprehensive Gain -$684,307 increase; Patronage Capital refunds to members $4,068,183 decrease; Donated capital from members - $236,002 increase; Sales tax refund - $74,785 increase and Capital Credits allocated and included in Part IX, Line 4 are properly no included in the audited fianancial statments as an expense in conformity with Generally Accepted Accounting Principles (GAAP) - $11,902,572 increase. Additionally, $448 was included as Unrelated Business Income on the Cooperatives 990T that was not recorded in the Cooperatives Audited Financial Statements. GREAT LAKES UTILITIES SERVICES CORPORATION PO BOX 70 BOYNE CITY MI 49712 383291425 DIRECT SELLING MI N/A C 19840 609452 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 GREAT LAKES UTILITIES SERVICES CORPORATION n 0 GREAT LAKES UTILITIES SERVICES CORPORATION o 46013 Payroll records.