2012-05-11T13:05:38-05:00 2011-12-31 KPMG LLP 701 West 8th Avenue Suite 600 Anchorage AK 99501 990 2011-01-01 920014224 Chugach Electric Association Inc % MICHAEL R CUNNINGHAM CHUG 9077624778 PO Box 196300 Anchorage AK 995196300 Michael R Cunningham 2012-05-10 true Suanne Fechtmeyer 9072651200 2011 2016-02-24 21:20:13Z Bradley W Evans PO Box 196300 Anchorage AK 995196300 284871424 false X WWW.CHUGACHELECTRIC.COM X 1948 AK CHUGACH ELECTRIC ASSOCIATION, INC. PROVIDES THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICITY TO RETAIL CUSTOMERS AND THE GENERATION AND TRANSMISSION OF ELECTRICITY TO WHOLESALE CUSTOMERS. 7 7 772 14 0 0 0 258770423 284017215 571334 389093 0 138500 259341757 284544808 24131 46189 0 5573262 1850159 1881817 0 0 0 251596880 276583157 253471170 284084425 5870587 460383 626414696 850034389 467885444 691698231 158529252 158336158 X CHUGACH ELECTRIC ASSOCIATION, INC. PROVIDES THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICITY TO RETAIL CUSTOMERS AND THE GENERATION AND TRANSMISSION OF ELECTRICITY TO WHOLESALE CUSTOMERS. THROUGH SUPERIOR SERVICE, SAFELY PROVIDE RELIABLE AND COMPETITIVELY PRICED ENERGY. false false 256460640 46189 283868313 CHUGACH ELECTRIC ASSOCIATION, INC. PROVIDES TRANSMISSION AND DISTRIBUTION SERVICES TO APPROXIMATELY 81,644 RETAIL SERVICE LOCATIONS AND PROVIDES GENERATION AND TRANSMISSION SERVICES TO SEVERAL WHOLESALE CUSTOMERS. 256460640 false false false false false false false false true false false false true true true false false false false false false false false false false false true true false false false false false false false false false false false false false false false true 165 0 true 772 true false false false false false false false false false 77357106 11426657 false X 7 7 false false true false true true true true false true false true true true true true true false false false AK X MICHAEL R CUNNINGHAM 9077624778 5601 ELECTRON DRIVE ANCHORAGE AK 995181074 JANET REISER 8.0 X 14800 0 0 SUSAN REEVES 6.0 X 11350 0 0 S DOUGLAS ROBBINS 6.0 X 11750 0 0 PJ HILL 5.0 X 10000 0 0 JIM NORDLUND 5.0 X 9200 0 0 HARRY T CRAWFORD JR 7.0 X 7250 0 0 JAMES HENDERSON 8.0 X 8700 0 0 REBECCA LOGAN 6.0 X 4400 0 0 ELIZABETH VAZQUEZ 4.0 X 4400 0 0 BRADLEY W EVANS 40.0 X 297673 0 187206 MICHAEL R CUNNINGHAM 40.0 X 233752 0 230395 LEE D THIBERT 40.0 X 210451 0 229908 DAVID R SMITH 40.0 X 43257 0 57401 PAUL R RISSE 40.0 X 171073 0 161763 EDWARD M JENKIN 40.0 X 169205 0 203687 TYLER E ANDREWS 40.0 X 148513 0 58390 MIKE W R SNELL 62.0 X 204731 0 47110 ISAAC M WALDROP III 58.0 X 192643 0 100676 FRANKLYN T DUNBAR 55.0 X 184455 0 58552 MARK S KRIEGER 56.0 X 180881 0 118177 PARIS J SEPE 46.0 X 180737 0 98114 RONALD K VECERA 40.0 X 130862 0 197325 2430083 0 1748704 153 true true false Wilson Sonsini Goodrich Rosati PC 650 Page Mill Road PALO ALTO CA 943041050 LEGAL SERVICES 738298 CREST INDUSTRIES LLC POB 5109 ALEXANDRIA LA 713075109 ENGINRING/MANUFCTING 398801 KPMG LLP 3 CHESTNUT RIDGE RD MONTVALE NJ 07645 AUDIT/TAX 349442 Davis Wright Tremaine LLP 1201 3RD AVESTE 2200 SEATTLE WA 981013045 LEGAL SERVICES 269649 Leonard Street Deinard PA 150 S 5th ST Ste 2300 MINNEAPOLIS MN 55402 Legal Services 268127 12 0 ELECTRIC REVENUE 221000 283040687 283040687 CAPITAL CREDITS 221000 356227 356227 POLE RENTAL 221000 148902 148902 MICROWAVE SERVICES 221000 428780 428780 MEMBERSHIP DUES 221000 42619 42619 284017215 297983 297983 0 0 176226 85116 91110 91110 91110 0 0 380000 241500 138500 138500 0 284544808 283868313 676495 X 1000 1000 45189 45189 0 5573262 5573262 1881817 1881817 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 16587061 16587061 0 32198411 32198411 0 FUEL/PURCHASED POWER 165041227 165041227 OTHER POWER PRODUCTION 16853232 16853232 TRANSMISSION EXPENSE 6797153 6797153 DISTRIBUTION EXPENSE 13364105 13364105 25741968 25741968 284084425 256460640 27623785 0 5623332 12282571 133651225 0 0 35140119 42373995 0 0 0 0 0 0 35974170 32994454 22920379 27117479 1061587948 466397400 504825871 595190548 0 0 0 0 12163097 11134496 0 0 3108489 1948860 626414696 850034389 18860926 22800190 0 0 0 0 0 0 0 0 0 0 0 429450318 405801818 175000000 43222700 64447723 467885444 691698231 X 1474869 1517488 133328213 132634601 23726170 24184069 158529252 158336158 626414696 850034389 X 460383 -653477 X false true true X true true 11792267 11792267 67769933 38565887 29204046 982025748 427831513 554194235 595190548 0 CONSUMER DEPOSITS 3949052 ACCRUED INTEREST 6843473 FUEL 24399157 OTHER 3350692 DEFERRED CREDITS 1703277 DEFERRED COMPENSATION 420783 SALARIES, WAGES, & BENEFITS 7597691 PATRONAGE CAPITAL PAYABLE 6646068 DEFERRED PROCEEDS ON SALE OF ASSET 9537530 64447723 284544808 284084425 460383 5112879 5112879 5573262 284662105 159916 159916 284502189 42619 42619 284544808 279088843 417764 417764 278671079 5413346 5413346 284084425 Part XI. Line 8. Tax to book depreciation on territorial settlement with Municipal Light & Power ($417,764), Program membership dues and assessment ($42,619), ASSIGNABLE MARGINS $5,573,262 = $5,112,879 Part XII. Line 2d. Allowance for funds used during construction $159,916 Part XII. Line 4b. Program membership dues and assessment $42,619. Part XIII. Line 2d. Tax to book depreciation on territorial settlement with Municipal Light & Power $417,764 Part XIII. Line 4b. Allowance for funds used during construction ($159,916), ASSIGNABLE MARGINS $5,573,262 = $5,413,346 Part X. Line 2. FIN 48 Footnote Chugach applies a more-likely-than-not recognition threshold for all tax uncertainties. FASB ASC 740 only allows the recognition of those tax benefits that have a greater than fifty percent likelihood of being sustained upon examination by the taxing authorities. Chugach's management reviewed Chugach's tax positions and determined there were no outstanding, or retroactive tax positions, that were not highly certain of being sustained upon examination by the taxing authorities. Management has concluded that there are no significant uncertain tax positions requiring recognition in its financial statements for all periods presented. Chugach's evaluation was performed for the tax periods ended December 31, 2008 through December 31, 2011 for U.S. Federal Income Tax, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2011. true Credit applied to electric bill 150 45189 Part III. The Association may include as part of its annual budget a sum of money for contributions to assist Chugach members who because of various hardship situations are unable to pay their present or past due electric bill. Hardship situations include, but are not limited to, circumstances where either the member or a dependent in the member's household is seriously ill, handicapped, or dependent on life support systems. Chugach Electric Association, Inc. has a board policy that establishes the criteria, as definded above, that members must meet in order to qualify for assistance in paying their present or past due electric bills. The applicant screening is done through the Safety Link program administered by the Municipality of Anchorage, Health and Social Services agency. The Association may match regular employee contributions to qualifying organizations up to a maximum of $100 per employee each year. The qualifying organizations must have a current 501(c) (3) designation. The Association may use a third party organization to qualify and facilitate the matching contribution. X X false true X X X false false false BRADLEY W EVANS 273266 0 20000 0 4407 0 162766 0 24440 0 484879 0 0 0 MICHAEL R CUNNINGHAM 200433 0 20000 0 13319 0 205955 0 24440 0 464147 0 0 0 LEE D THIBERT 193133 0 10000 0 7318 0 205468 0 24440 0 440359 0 0 0 PAUL R RISSE 168541 0 0 0 2532 0 137323 0 24440 0 332836 0 0 0 EDWARD M JENKIN 167761 0 0 0 1444 0 179247 0 24440 0 372892 0 0 0 TYLER E ANDREWS 147619 0 0 0 894 0 32650 0 25740 0 206903 0 0 0 MIKE W R SNELL 198047 0 0 0 6684 0 21152 0 25958 0 251841 0 0 0 ISAAC M WALDROP III 185698 0 0 0 6945 0 76375 0 24301 0 293319 0 0 0 FRANKLYN T DUNBAR 184251 0 0 0 204 0 36070 0 22482 0 243007 0 0 0 MARK S KRIEGER 180677 0 0 0 204 0 95989 0 22188 0 299058 0 0 0 PARIS J SEPE 140685 0 0 0 40052 0 73507 0 24607 0 278851 0 0 0 RONALD K VECERA 129698 0 0 0 1164 0 169085 0 28240 0 328187 0 0 0 Part I. Line ia. Check the appropriate box(es) if the organization provided any of the following to or for a person listed in Form 990, Part VII, Section A, line 1a. "First-class or charter travel." The organization has a helicopter lease and a standing air charter for employees to reach facilities at remote locations, such as the Beluga Power Plant which is only accessible by air. Several of the organization's employees, including those listed, have used one or both of these services to inspect or perform maintenance on equipment, conduct supervisory responsibilities, or escort guests on tours. First-class travel was used by Bradley W. Evans and Michael R. Cunningham for travel out of state to perform business on behalf of the organization. The first-class fares obtained were comparable to the coach fares available on the commercial airline usually used by the organization for business travel. Part I. Line 1b. If any of the boxes on line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? "No." The organization does not have a formal written policy regarding the payment of tax indemnification and gross-up payments. It is currently at the discretion of the Chief Executive Officer, or at the discretion of the Board of Directors, if the payment is to the Chief Executive Officer. The organization does have a written policy regarding payment or reimbursement of travel expenses, which was followed for all individuals. Part VI. Section A. Line 4. Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? At the organization's annual membership meeting held on May 26, 2011, two bylaw amendments passed. One clarified the deadline for electronic voting and the other included housekeeping amendments. Part VI. Section A. Line 6. Did the organization have members or stockholders? The organization is an electric cooperative which is owned by its members, approximately 66,941 at December 31, 2011. Part VI. Section A. Line 7a. Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? The Board of Directors are elected by the membership and serve three-year terms. Part VI. Section A. Line 7b. Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or other persons other than the governing body? Changes to the organizations Bylaws and Articles of Incorporation are subject to approval by the membership. Part VI. Section A. Line 8b. Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: Each committee with authority to act on behalf of the governing body? Board committees do not have the authority to act on behalf of the governing body. Board committees make recommendations to the governing body for approval, however, the organization contemporaneously documents the committee meetings held and written actions undertaken during the year. Part VI. Section A. Line 9. Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? David R. Smith, 1590 Prospect Mountain Drive, Estes Park, CO 80517-7707; Rebecca Logan, c/o Alaska Support Industry Alliance, 646 W. 4th Avenue, Suite 200, Anchorage, AK 99501; Elizabeth Vazquez, 6910 Tanaina Drive, Anchorage, AK 99502. Part VI. Section B. Line 11b. Describe in Schedule O the process, if any, used by the organization to review this Form 990. The Form 990 is reviewed by the CEO and senior executive staff or officers of the organization in detail, including all forms and schedules. The Form 990, including all forms and schedules, is also reviewed by the Board of Directors' finance committee prior to being filed by our independent accounting firm. Part VI. Section B. line 12c. Does the organization regularly and consistently monitor and enforce compliance with the policy? The organization has a written conflict of interest policy which covers the Board of Directors (governing body) and all employees. The organization regularly and consistently monitors minutes and investigates potential or actual conflicts when discovered through member identification. Conflicts of an employee are reviewed and determined by the CEO, Chairman of the Board and Vice President of Human Resources. Conflicts of the CEO are reviewed and determined by the Board of Directors. Conflicts of the Board of Directors are reviewed by legal counsel and determinations are made by a vote of the Board of Directors after receiving advice from legal counsel. Any Director or employee whose conduct infringes upon either the letter or spirit of the conflict of interest policy shall be subject to: (1) if CEO, termination by appropriate action of the Board of Directors; (2) if an employee, termination by appropriate action of the CEO; or (3) if a Director, charges by the Board leading to removal in accordance with the appropriate section of the organization's Bylaws or automatic ineligibility as applicable under the circumstances. Part VI. Section B. Line 15 Did the process for determing compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substation of the deliberation and decision? The compensation for the CEO was established by the Board of Directors in a two-year employment agreement effective July 1, 2011, which was approved by the Board of Directors at its June 15, 2011 board meeting. Since the Board of Directors does not record executive sessions, there is no substantiation of the CEO compensation package deliberations. However, comparability data was provided and the decision of the Board was documented. Part VI. Section C. Line 19. Describe in Schedule O whether (and if so, how) the organization makes its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. The organization's governing documents, conflict of interest policy and financial statements are available on its website. Part IX. Line 4. Statement of Functional Expenses - Benefits paid to or for members: The Form 990 instructions for 2011 were modified to include patronage dividends as part of Functional Expenses (Part IX). For 2011, the assignable margins of $5,573,262 will be assigned to members and is included on line 4 as benefits paid to members. The comparable amount for 2010 which was not included as part of Functional Expenses was $5,410,009. Part IX. Line 24e. All other expenses consist of Consumer Accounts $5,465,315, Administrative and General $20,276,653 = $25,741,968 Part XI. Line 5. Other changes in net assets or fund balances (explain in Schedule O). The other changes in net assets or fund balances consist of an increase in donated capital of $167,952, an increase in unredeemed capital credits of $367,277, retirement of capital credits and estate payments of ($6,761,968), and assignable margins of $5,573,262 totaling a net change of ($653,477). Part I. Line 14. Due to new IRS guidance, we have included in the 2011 functional expenses assignable margins of $5,573,262. The prior year amount on this line would have been $5,410,009 if this new guidance had been in effect in 2010.