2011-08-15T09:47:27-05:00 2010-12-31 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2010-01-01 450447121 NORTHERN PLAINS ELECTRIC COOPERATIVE INC NORT 7016523156 PO BOX 180 CARRINGTON ND 584210180 JAY JACOBSON 7016523156 2011-07-22 1 DAVID HOLT 7017754685 2010 2016-02-24 21:20:13Z JAY JACOBSON PO BOX 180 CARRINGTON ND 584210180 29429578 0 X WWW.NPLAINS.COM X 1997 ND SALE OF ELECTRICITY TO MEMBERS 9 9 61 0 6891 0 0 0 27372784 28197997 473274 371784 28841 677283 27874899 29247064 0 0 0 0 4364315 4801426 0 0 0 20886967 22478936 25251282 27280362 2623617 1966702 74250635 79030589 47908828 51609652 26341807 27420937 X NORTHERN PLAINS WILL DELIVER DEPENDABLE ELECTRIC POWER AND ENERGY AT FAIR AND REASONABLE PRICES. WE WILL DELIVER AN EXTENDED RANGE OF CONVENIENT CUSTOMER SUPPORT SERVICES, COMPLEMENTARY TO OUR CORE ELECTRIC AND ENERGY BUSINESS. AND WE WILL PROVIDE TECHNICAL ASSISTANCE, FINANCIAL TOOLS AND HUMAN RESOURCES THAT FOSTER COMMUNITY DEVELOPMENT. 0 0 TO PROVIDE ELECTRICAL SERVICE FOR 8,180 MEMBERS. IN 2010 THERE WERE 6,797 MILES OF TOTAL LINE. 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 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 1 0 1 184 0 61 1 1 1 0 0 0 0 28197997 648657 0 X 9 9 0 1 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X BRUCE GARBER 7019683314 609 4TH AVE PO BOX 608 CANDO ND 58324 TRACY BOE 7.00 X X 11682 0 0 CURTIS WIESZ 6.00 X X 10082 0 0 RUSSELL CARLSON 6.00 X X 10782 0 0 RANDY SIMON 6.00 X X 9882 0 0 BILL RIEBE 6.00 X 10682 0 0 CURTIS HANSON 6.00 X 6599 0 0 DOUGLAS GEIER 6.00 X 2067 0 0 BRUCE OLSEN 6.00 X 9782 0 0 MARK BREHM 6.00 X 9282 0 0 DAVID TEIGEN 6.00 X 10407 0 0 BRUCE GARBER 40.00 X 50256 39255 66272 JAY JACOBSON 20.00 X 0 120340 74650 141503 159595 140922 0 0 1 0 CENTRAL TRANCHING INC 5200 7TH AVE SW MINOT ND 58701 UNDERGROUND CABLE PLACEMENT 340942 LEGACY POWER LINE INC 41637 WATERVIEW ROAD SAUK CENTRE MN 56378 LINE MAINTENANCE & CONSTRUCTION 298116 DAVID KLOCKE CONSTRUCTION INC 235 3RD ST N CARRINGTON ND 58421 WAREHOUSE MAINTENANCE 156965 COOPERATIVE ALLIANCE MANAGEMENT 1515 WEST MAIN AVE CARRINGTON ND 58421 MANAGEMENT SERVICES 138550 4 SALE OF ELECTRICITY 221000 28197997 28197997 28197997 357100 357100 14684 14684 14684 14684 192045 182514 9531 9531 CAPITAL CREDITS 900099 670392 670392 INVESTMENT IN NORTH DA 561000 321 321 INVESTMENT IN NORTHERN 561000 -50 -50 -2911 -2911 667752 29247064 28868389 6891 371784 282425 3012365 746422 506496 253718 2103970 2468517 COST OF PURCHASED POWER 17446716 DISTRIBUTION EXPENSE 2514110 ADMINISTRATIVE AND GENE 1404447 CONSUMER EXPENSE 842521 ALLOCATED LABOR -4801426 500081 27280362 750 312497 627879 2613582 3068181 7096 5199 1136073 1300536 241646 243901 95646262 42938170 50516123 52708092 4863866 6168732 14460236 14836762 99516 70557 74250635 79030589 3492092 3371724 3357041 3531498 40790755 44435040 146000 146000 122940 125390 47908828 51609652 X 0 0 0 0 26341807 27420937 26341807 27420937 74250635 79030589 X 1966702 -887572 X 0 0 0 408466 408466 2303650 1665402 638248 90775066 41272768 49502298 2159080 2159080 52708092 OTHER INVESTMENTS 6118732 C INVESTMENT COOPERATIVE ALLIANCE MANAGEMENT 50000 C 6168732 PATRONAGE CAPITAL - BASIN, CP & CFC 13892879 C OTHER INVESTMENTS 943883 C 14836762 CONSUMER METER DEPOSITS 125390 125390 X X X X 0 0 0 BRUCE GARBER 49609 38793 0 0 647 462 2117 51704 7266 5185 59639 96144 0 0 JAY JACOBSON 0 117976 0 0 0 2364 0 61117 0 13533 0 194990 0 0 SUPPLEMENTAL INFORMATION PART III JAY JACOBSON IS EMPLOYED BY COOPERATIVE ALLIANCE MANAGEMENT, A RELATED MANAGEMENT COMPANY OF WHICH THE COOPERATIVE HAS 50% OWNERSHIP IN. DUE TO THIS RELATED PARTY RELATIONSHIP, 100 PERCENT OF HIS COMPENSATION IS REPORTED AS RELATED ORGANIZATION COMPENSATION. HOWEVER, ONLY 50 PERCENT OF HIS DUTIES WITH COOPERATIVE ALLIANCE MANAGEMENT ARE PERFORMED FOR NORTHERN PLAINS ELECTRIC COOPERATIVE, INC. BEGINNING IN AUGUST 2010, BRUCE GARBER IS ALSO EMPLOYED BY CAM, AND WILL HAVE A SIMILAR COMPENSATION ARRANGEMENT. INCLUDED IN SCHEDULE J, PART II, COLUMN "C", DEFERRED COMPENSATION, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. FOR THE FOLLOWING INDIVIDUALS, THE ESTIMATED INCREASE IS: BRUCE GARBER: $50,938 (NORTHERN PLAINS ELECTRIC'S SHARE - $25,469) JAY JACOBSON: $58,784 (NORTHERN PLAINS ELECTRIC'S SHARE - $29,392) THESE AMOUNTS ARE ESTIMATES IN THE INCREASE OF THE VALUE OF THE PLAN AND ARE NOT CURRENT YEAR EXPENSES OF THE COOPERATIVE. CURRENT YEAR CONTRIBUTIONS INTO THE DEFINED BENEFIT PLAN WERE: BRUCE GARBER: $23,999 (NORTHERN PLAINS ELECTRIC'S SHARE - $18,076) JAY JACOBSON: $36,432 (NORTHERN PLAINS ELECTRIC'S SHARE - $18,216) THESE AMOUNTS ARE INCLUDED IN THE ABOVE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. COOPERATIVE ALLIANCE MANAGEMENT BUSINESS RELATIONSHIP 138550 MANAGEMENT SERVICES 0 FORM 990, PART VI, SECTION A, LINE 3 MANAGEMENT DUTIES ARE PERFORMED BY THE RELATED MANAGEMENT COMPANY 'COOPERATIVE ALLIANCE MANAGEMENT' (CAM). JAY JACOBSON AND BRUCE GARBER ARE EMPLOYED BY CAM AND ACT AS THE GENERAL MANAGER AND CFO,RESPECTIVELY, FOR DAKOTA VALLEY ELECTRIC COOPERATIVE, INC. AND NORTHERN PLAINS ELECTRIC COOPERATIVE, INC. CAM HAS AN INTERNAL HIRING PROCESS IN PLACE FOR THE SELECTION OF THE GENERAL MANAGER AND CFO. THE BOARDS OF DAKOTA VALLEY AND NORTHERN PLAINS EACH SEPARATELY ADDRESS ANY QUESTIONS OR PROCEDURES ASSOCIATED WITH THE GENERAL MANAGER AND CFO EMPLOYED BY CAM AND INSTRUCT THEIR CAM DIRECTOR REPRESENTATIVES. THE TWO CAM DIRECTOR REPRESENTATIVES FROM EACH BOARD WILL THEN MEET TO DISCUSS ISSUES INVOLVING THE GENERAL MANAGER AND CFO. WHEN THE FOUR CAM DIRECTOR REPRESENTATIVES (FOLLOWING INSTRUCTIONS FROM THEIR SEPARATE BOARDS) ARE IN AGREEMENT, THEY WILL TAKE ACTION ON A GENERAL MANAGER OR CFO ISSUE. THE ACTION OF THE CAM DIRECTOR REPRESENTATIVES IS SUBJECT TO FURTHER REVIEW AND RATIFICATION BY THE ASSOCIATED BOARDS. FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER HAS ONE VOTE. THERE ARE 3 DISTRICTS AND EACH DISTRICT HAS 3 BOARD MEMBER REPRESENTATIVES. EACH MEMBER CAN ONLY BE A MEMBER IN ONE DISTRICT. A MEMBER'S PRIMARY RESIDENCE IS THE DECIDING FACTOR AS TO WHICH DISTRICT THEY ARE CONSIDERED TO BE A MEMBER OF. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER RECEIVES ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE BY-LAWS MUST BE VOTED ON BY MEMBERS. MERGERS MUST ALSO BE VOTED ON BY MEMBERS. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE FULL BOARD. FORM 990, PART VI, SECTION B, LINE 11 THE CFO AND GENERAL MANAGER REVIEWED A DRAFT OF THE 990 PRIOR TO PRESENTING IT TO THE BOARD AT A BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS ARE ASKED TO DISCLOSE ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. IF A POSSIBLE CONFLICT ARISES, THE FULL BOARD REVIEWS THE DISCLOSURES AND DETERMINES IF THERE IS A CONFLICT. A DIRECTOR WITH A CONFLICT IS NOT ALLOWED TO VOTE OR PARTICIPATE IN ANY DISCUSSIONS ON THE ISSUE. THE DIRECTOR IS ASKED TO LEAVE THE ROOM DURING ANY VOTES OR DISCUSSIONS. ANY POTENTIAL ISSUES DISCLOSED BY THE BOARD MEMBERS ARE DOCUMENTED IN THE BOARD MEETING MINUTES. THE COOPERATIVE ALSO HAS AN EMPLOYEE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15A THE STEPS IN THE PROCESS WHICH IS FOLLOWED TO DETERMINE COMPENSATION ARE LAID OUT IN A WRITTEN POLICY. THE BOARDS OF DAKOTA VALLEY AND NORTHERN PLAINS, ON AN ANNUAL BASIS, EACH SEPARATELY CONDUCT A MANAGER EVALUATION AND ADDRESS THE SUBJECT OF MANAGER COMPENSATION PRIOR TO THE JULY COOPERATIVE ALLIANCE MANAGEMENT (CAM) ANNUAL MEETING. THE BOARDS WILL ROUTINELY CONSULT DATA ON NDREC MANAGER COMPENSATION PACKAGES TO COMPARE WITH CAM MANAGERS' COMPENSATION. EACH BOARD WILL INSTRUCT THEIR CAM DIRECTOR REPRESENTATIVES REGARDING MANAGER EVALUATION AND COMPENSATION ADJUSTMENT. THE TWO CAM DIRECTOR REPRESENTATIVES FROM EACH BOARD WILL PLACE THE SUBJECTS OF MANAGER EVALUATION AND SALARY ON THE AGENDA OF THE CAM ANNUAL MEETING. WHEN THE FOUR CAM DIRECTOR REPRESENTATIVES, FOLLOWING INSTRUCTIONS FROM THEIR SEPARATE BOARDS, ARE IN AGREEMENT, THEY WILL TAKE ACTION ON MANAGER EVALUATION AND SALARY ISSUES. THE ACTION OF THE CAM DIRECTOR REPRESENTATIVES IS SUBJECT TO FURTHER REVIEW AND RATIFICATION BY THE ASSOCIATED BOARDS AS THEY APPROVE THE MONTHLY BILLING AGREEMENT FOR CAM. THE CAM DIRECTOR OFFICERS WILL DOCUMENT THE COMPENSATION DECISION ARRIVED AT DURING THE CAM ANNUAL MEETING. THE AUTHORIZING DOCUMENT IS KEPT AS A RECORD OF THE CAM ANNUAL MEETING. THE MANAGER REVIEWS THE PERFORMANCE EVALUATION OF THE CFO AND THE CURRENT YEAR BUDGET TO DETERMINE SALARY INCREASES FOR THAT POSITION. THERE ARE NO WRITTEN EMPLOYEMENT CONTRACTS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE FINANCIAL STATEMENTS ARE ALSO AVAILABLE IN THE ANNUAL REPORT. OTHER EXPENSES FORM 990, PART IX, STATEMENT OF FUNCTIONAL EXPENSES, LINE 24F THE LABOR, PENSION, OTHER EMPLOYEE BENEFITS AND PAYROLL TAXES REPORTED ON LINES 5-10 ARE ALREADY INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, THESE AMOUNTS ARE BEING SUBTRACTED OUT AS AN OTHER DEDUCTION ON LINE 24E IN THE AMOUNT OF ($4,801,426). CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: RETIREMENT OF CAPITAL CREDITS -890,212. TAX INCOME FROM SUBSIDIARIES IN EXCESS OF BOOKS 2,640. TOTAL TO FORM 990, PART XI, LINE 5: -887,572. AUDITED FINANCIAL STATEMENTS FORM 990, PART IV, LINE 12 AND PART XI, LINE 2 AUDITED FINANCIAL STATEMENTS FOR NORTHERN PLAINS ELECTRIC COOPERATIVE INC WERE PRESENTED ON A 3/31 FISCAL YEAR END WHILE THE FORM 990 IS FILED ON A CALENDAR YEAR END BASIS. JOINT VENTURE POLICY FORM 990, PART VI, SECTION B, LINE 16B THE COOPERATIVE'S POLICY REGARDING PARTICIPATION IN JOINT VENTURES IS NOT WRITTEN; HOWEVER, THE COOPERATIVE PERFORMS AN 85% TEST ON AN ANNUAL BASIS TO ENSURE THAT IT MAINTAINS ITS TAX EXEMPT STATUS. ADDITIONALLY, THE JOINT VENTURE ARRANGEMENT IS REVIEWED AND MONITORED BY THE BOARD OF DIRECTORS. NORTHERN PLAINS ELECTRIC TRUST 1515 WEST MAIN STREET CARRINGTON ND 58421 450451521 CHARITABLE PURPOSES WITHIN NORTHERN PLAINS ELECTRIC REGION ND 501(C)(3) 7 N/A 0 COOPERATIVE ALLIANCE MANAGEMENT 1515 WEST MAIN AVE PO BOX 18 CARRINGTON ND 58421 251920416 MANAGEMENT SERVICES ND N/A UNRELATED -1321 64275 0 0 0.50000 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 COOPERATIVE ALLIANCE MANAGEMENT L 138550 FMV OF SERVICES