2013-08-14T13:59:08-07:00 2012-12-31 990 2012-01-01 846035888 EMPIRE ELECTRIC ASSOCIATION INC EMPI 9705654444 801 N Broadway PO Box K Cortez CO 81321 Mary Thiesing 9705654444 2013-08-09 2012 2016-02-24 21:20:13Z Neal E Stephens 801 N Broadway Cortez CO 81321 55024712 0 X www.eea.coop X 1939 CO Empire Electric Association, Inc. is a non-profit, member owned, electric distribution cooperative doing business in southwestern Colorado and southeastern Utah. 7 6 85 0 -44584 0 0 0 54760603 54675371 189514 226010 219968 123331 55170085 55024712 0 0 3848820 3966557 0 0 0 0 0 51321265 52258155 55170085 56224712 0 -1200000 99020724 110905617 44232967 53852568 54787757 57053049 To safely and responsibly provide reliable electricity based on our core values. Our Core Values are: Safety of public and employees, Environmentally responsible, Locally based, Equitable rates and business practices, Efficient, Ethical, Excellence in Customer Service, and Committed to the 7 Cooperative Principles 0 0 56224712 55024712 Provide electric energy to customers located within our 3,410 square mile certificated area in southwestern Colorado and southeastern Utah. 0 0 0 56224712 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 0 0 0 1 50 0 1 85 1 0 0 0 0 0 52708462 3091565 0 X 7 6 0 0 0 1 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X Neal E Stephens 9705654444 801 N Broadway PO Box K Cortez CO 81321 William C Bauer 8 2 X X 14850 0 0 David W Sitton 4 0 X X 13200 0 0 Jerry Fetterman 10 0 X X 0 0 13950 J Kent Lindsay 15 0 X 13950 0 0 Sue Mc Williams 12 4 X 16350 0 0 William Mollenkopf OD 17 12 X 15714 0 0 John Porter 7 15 X 15150 0 0 Neal E Stephens 45 0 X X 187092 0 45159 Mary Thiesing 47.25 0 X X 123333 0 32066 Scott Ehmke 47.75 0 X X 115621 0 40824 Glen Noble 41.5 0 X 112815 0 40151 628075 0 172150 4 0 1 0 FCI Constructors Inc 1860 Moose Ln Durango CO 81303 Building Construction 3877350 Tri State Gen and Transm PO Box 33695 Denver CO 80233 Substation Construction 1199053 Asplundh Tree Experts 708 Blair Mill Rd Willow Grove PA 190901784 Tree Trimming 508199 D and L Construction PO Box 991 Cortez CO 81321 Road Constr and Land Prep 383333 Chamberlin Architects 437 Main St Grand Junction CO 81501 Building Design 372342 6 0 Sale of Electricity 221000 52298814 52298814 0 0 Capital Credits 221000 2096614 2096614 0 0 Miscellaneous Fees 221000 206475 206475 0 0 Joint Use of Poles 221000 73468 0 0 73468 0 0 0 0 54675371 184108 184108 0 0 0 0 0 0 0 0 0 0 1200 1310 0 0 1200 1310 2510 2510 0 0 0 41902 0 0 0 41902 41902 41902 0 0 0 0 0 0 0 0 Renewable Energy Credits 900099 57634 57634 0 0 Other Revenue 900000 63187 107771 -44584 0 0 0 0 0 120821 55024712 54995828 -44584 73468 0 0 0 0 3966557 3966557 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 1793742 1793742 0 0 2164436 2164436 0 0 Cost of Purchased Power 40611916 40611916 0 0 Oper & Maint Exp (Distrib & Transm) 3972256 3972256 0 0 Customer Acctng, Collect & Service 1604327 1604327 0 0 Administrative & General 2111478 2111478 0 0 56224712 56224712 0 0 771938 1597523 5600192 6680437 0 3923140 3800225 0 0 0 519219 508851 120696 243645 82362371 27000584 48105929 55361787 3555508 3494336 35964323 38764851 439210 439210 20569 14752 99020724 110905617 5829131 6236399 0 0 0 0 0 0 0 0 0 0 34932150 42921213 0 0 3471686 4694956 44232967 53852568 X 0 0 0 0 54787757 57053049 54787757 57053049 99020724 110905617 X -1200000 0 0 0 0 3465292 X 1 X 1 X 1 0 0 673838 673838 0 4228215 2291316 1936899 0 0 0 0 0 7458884 5478346 1980538 0 70001434 19230922 50770512 55361787 Invest in Assoc Organ Pat Capital 34937477 C Other Invest in Assoc Organ 2025378 C Other Investments 12800 C Special Funds 1789196 F 38764851 Post Retirement Obligation 1874728 Deferred Compensation 589195 Consumer Deposits 598236 Refundable Construction Advances 29655 Deferred Property Tax 252153 Consumer Prepayments 144501 Regulatory Liab Revenue Deferral 1200000 Other Deferred Credits 6488 4694956 X 55024712 0 0 0 0 0 55024712 0 0 0 55024712 52258155 0 0 0 0 0 52258155 0 3966557 3966557 56224712 SchD_P10_S00_L02 Schedule D, Part X, Line 2 The Association evaluates the components of the annual test for maintenance of its tax-exempt status under Section 501(c)(12) of the Internal Revenue Code of 1986, as amended. This process includes an analysis of whether the position the Association takes with regard to a particular item of income would meet the definition of an uncertain tax position under FASB ASC 740-10-50, Accounting for Uncertainty in Income Taxes. The Association is subject to routine audits by taxing jurisdictions. The tax years 2011, 2010 and 2009 remain subject to examination. SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Benefits paid to or for members line 4 (capital credit allocations) X X 0 0 0 Neal E Stephens 187092 0 0 0 0 0 21939 0 23220 0 232251 0 0 0 Mary Thiesing 123333 0 0 0 0 0 21030 0 11036 0 155399 0 0 0 Scott Ehmke 113731 0 1890 0 0 0 18827 0 21997 0 156445 0 0 0 Glen Noble 112815 0 0 0 0 0 18011 0 22140 0 152966 0 0 0 Tri-State Generation and Transm Common Board Member 40611916 Purchase of electricity for resale 0 Tri-State Generation and Transm Common Board Member 1275424 Transm mainten & substn constrn 0 Western United Electric Supply Common Board Member 873552 Purchase of construction materials 0 F990_P01_S00_L19 Form 990, Part I, Line 19 The Cooperative established a revenue deferral program in which $1.2 million in 2012 revenues will be deferred and recognized in 2013 in order to minimize the impact of increased wholesale power costs. The Cooperative is aware of the potential impact of revenue deferral on its tax-exempt and cooperative statuses. Accordingly, the Board intends to assign patronage capital resulting from the deferred revenue to those members who paid them without regard to the period of recognition as revenue. The Board has specified that all revenues deferred will be held in a separate special fund until December 2013. This revenue deferral has been approved by the RUS. F990_P06_S0A_L05 Form 990, Part VI, Section A, Line 5 In December 2012 the Cooperative discovered an embezzlement admitted to by a former employee. The loss was $277,035, and had accumulated over a period of approximately 40 months ending in October 2012. The Cooperative has taken steps to strengthen its internal controls pertaining to the cash receipts function. F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 Empire Electric Association, Inc. is a member owned electric distribution cooperative. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a The service territory of Empire Electric Association, Inc. is divided into seven districts. Each district is represented by one board member. Every member of the cooperative is entitled to vote for all open board of director seats either by mail or at the cooperative's annual meeting. Directors are elected for a four year term. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b The Board may not sell, merge, lease or otherwise dispose of the Cooperative assets without the affirmative vote of at least two-thirds (2/3) of the members. F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b A copy of the Form 990 was circulated to the board of directors prior to their August meeting. At the August 9th 2013 meeting, the 990 was reviewed with the board and any questions regarding the document were answered. The board approved the filing of the 990 at this same meeting. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c Annually the board of directors and the cooperative's senior management complete a conflict of interest disclosure statement. This disclosure statement provides the name, address, affiliation, and type of business for the organizations that have a business relationship with the cooperative and the individual completing the disclosure statement. This policy is also reviewed annually with all employees at the cooperative's annual all employee meeting. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Annual financial statements are mailed to each member of the cooperative prior to the cooperative's annual meeting. In addition to these statements, a copy of the Independent Auditor's Report, board minutes and a list of current board members is published on our website. Board policies, monthly financial statements, written communications to members as a group, corporate reports delivered to the states of Colorado and Utah, general information about hiring practices and salary ranges, general information about capital credits, and information provided to the cooperative as a shareholder or member of an affiliated organization is available to any member upon request. Articles of Incorporation, Bylaws, a list of board committees and members serving on those committees, published tariffs, and published rules and regulations are available to the general public upon request. The general public may request information available to members by submitting a request to the board of directors. F990_P11_S00_L09 Form 990, Part XI, Line 9 Allocation of 2012 operating and non-operating margins less the retirement of capital credits in 2012. Filed automatic extension