2023-11-08T15:27:09-06:00 2022-12-31 135565207 KPMG LLP 550 S HOPE STREET LOS ANGELES CA 90071 990 2022-01-01 920014224 CHUGACH ELECTRIC ASSOCIATION INC CHUG 9077624511 PO BOX 196300 ANCHORAGE AK 995196300 ARTHUR W MILLER CHIEF EXECUTIVE OFFICER 9077624511 2023-11-08 1 ARTHUR MILLER 999009999 0 DAVID M HIGHFILL P01517891 2139724000 2023-11-02 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z ARTHUR W MILLER PO BOX 196300 ANCHORAGE AK 995196300 355354050 0 X WWW.CHUGACHELECTRIC.COM X 1948 AK SEE SCHEDULE O 7 7 523 22 0 0 1023270 0 353419444 354441078 316295 680606 68259 33389 354827268 355155073 137360 128465 9578479 8123737 3347325 3098367 0 0 0 341723274 343767595 354786438 355118164 40830 36909 1796363282 1767579590 1590362344 1555244114 206000938 212335476 X SEE SCHEDULE O 0 0 SEE SCHEDULE O 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 216 0 1 523 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 164386906 5573679 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 0 0 AK X SHERRI L HIGHERS 9077624511 5601 ELECTRON DRIVE ANCHORAGE AK 995181074 X BETTINA CHASTAIN DIRECTOR 9.00 0.00 X 21500 0 0 ERIN WHITNEY WITMER DIRECTOR 4.00 0.00 X 15900 0 0 HAROLD HOLLIS DIRECTOR 8.00 0.00 X 20650 0 0 JAMES HENDERSON DIRECTOR 4.00 0.00 X 9850 0 0 MARK WIGGIN DIRECTOR 6.00 0.00 X 23250 0 0 RACHEL MORSE DIRECTOR 9.00 0.00 X 18800 0 0 SAMUEL CASON DIRECTOR 8.00 0.00 X 18950 0 0 STANISLAVA COOPER DIRECTOR 3.00 0.00 X 6400 0 0 ARTHUR MILLER CHIEF EXECUTIVE OFFICER 40.00 0.00 X 418612 0 188503 SHERRI HIGHERS CHIEF FINANCIAL OFFICER 40.00 0.00 X 295573 0 230046 ANDREW LAUGHLIN EXECUTIVE VP 40.00 0.00 X 233274 0 112391 MATTHEW CLARKSON EXECUTIVE VP 40.00 0.00 X 317814 0 88115 MICHAEL BULLARD SUBSTATION FOREMAN 5% 57.00 0.00 X 256557 0 90246 SHELDON NASLUND JOURNEYMAN LINEMAN 63.00 0.00 X 314880 0 83592 JEFFREY GILBERT SR SUBSTATION LINEMAN 5% 66.00 0.00 X 268612 0 104669 VLADIMIR KRIVONOSOV SR. DESIGNER 62.00 0.00 X 266825 0 65293 JONATHAN SKINNER SR. POWER DISPATCHER 57.00 0.00 X 256913 0 68035 LEE D THIBERT CHIEF EXECUTIVE OFFICER 24.00 0.00 X 398731 0 13938 BRIAN HICKEY CHIEF OPERATING OFFICER 18.00 0.00 X 183969 0 135471 TYLER ANDREWS EXECUTIVE VP 5.00 0.00 X 278747 0 11914 MARK FOUTS EXECUTIVE VP 20.00 0.00 X 152593 0 19059 3778400 0 1211272 305 1 1 0 HILCORP ENERGY LP DBA HILCORP ALASKA LLC PO BOX 61567 HOUSTON TX 77208 GAS FIELD & TRANSPORT 90580591 FURIE OPERATING ALASKA LLC 188 W NORTHERN LIGHTS BLVD SUITE 62 ANCHORAGE AK 99503 FUEL & FUEL TRANSPORT 5161338 COOK INLET NATURAL GAS STORAGE AK LLC 3000 SPENARD ROAD ANCHORAGE AK 99503 FUEL STORAGE 4402031 WORLD WIDE TECHNOLOGY LLC 1 WORLD WIDE WAY SAINT LOUIS MO 63146 TECH PRODUCTS, SRVC & SOLUTIONS 1588497 PETROTECHNICAL RESOURCES AK LLC 3601 C ST STE 1424 ANCHORAGE AK 99503 CONSULTING & ENGINEERING 1290565 35 ELECTRIC REVENUE 221000 353716869 353716869 MICROWAVE SERVICES 221000 372541 372541 POLE RENTAL 221000 300748 300748 MEMBERSHIP DUES 221000 36909 36909 CAPITAL CREDITS 221000 1245 1245 12766 12766 354441078 639406 639406 28589 28589 4800 0 4800 4800 4800 240177 198977 41200 41200 41200 355155073 354168919 0 986154 8980 8980 119485 119485 8123737 8123737 3098367 3098367 38989581 38989581 64660942 64660942 FUEL/PURCHASED POWER 106675942 106675942 ADMIN & GENERAL 49197233 49197233 OTHER POWER PRODUCTION 37961076 37961076 DISTRIBUTION EXPENSE 26304855 26304855 19977966 9679311 10298655 355118164 292523909 62594255 0 13712390 3768973 24000943 12174066 47186182 50243472 59371225 68199774 117557079 115102455 2166761274 702820631 1483218505 1463940643 40901407 24888329 7280936 6993487 3134615 22268391 1796363282 1767579590 14878065 26356140 1232514957 1190434550 22000000 45000000 320969322 293453424 1590362344 1555244114 X 1949262 1986171 173287436 178948678 30764240 31400627 206000938 212335476 1796363282 1767579590 X 36909 6297629 X 0 1 X 1 0 26728608 26728608 226964734 80325707 146639027 0 1913067932 622494924 1290573008 1463940643 CONSUMER DEPOSITS 4874798 ACCRUED INTEREST 8454148 FUEL & FUEL COST PAYABLE 7156711 SALARIES, WAGES & BENEFITS 12186144 COST OF REMOVAL OBLIGATION 122962832 OPERATING LEASE LIABILITY 4045771 DEFERRED COMPENSATION & CREDIT 11027180 BRU REGULATORY LIABILITY AND OTHER 122745840 293453424 X 355086133 -32031 -32031 355118164 36909 36909 355155073 347090860 0 347090860 8027304 8027304 355118164 PART X, LINE 2: FOOTNOTE 2(U): CHUGACH APPLIES A MORE-LIKELY-THAN-NOT RECOGNITION THRESHOLD FOR ALL TAX UNCERTAINTIES. FASB ASC 740, "TOPIC 740 - INCOME TAXES," 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 POSITION AND DETERMINED THERE WERE NO OUTSTANDING OR RETROACTIVE TAX POSITION THAT WERE NOT HIGHLY CERTAIN OF BEING SUSTAINED UPON EXAMINATION BY THE TAXING AUTHORITIES. MANAGEMENT HAS CONCLUDED THAT THERE ARE NO SIGNIFICANT TAX POSITIONS REQUIRING RECOGNITION IN ITS FINANCIAL STATEMENTS FOR ALL PERIODS PRESENTED CHUGACH'S EVALUATION WAS PERFORMED FOR THE TAX PERIODS ENDED DECEMBER 31, 2020 THROUGH DECEMBER 31, 2022 FOR UNITED STATES FEDERAL INCOME TAX, THE TAX YEARS WHICH REMAIN SUBJECT TO EXAMINATION BY MAJOR TAX JURISDICTIONS AS OF DECEMBER 31, 2022. PART XI, LINE 2D - OTHER ADJUSTMENTS: AFUDC 96,433. DONATIONS -128,464. PART XI, LINE 4B - OTHER ADJUSTMENTS: PROGRAM MEMBERSHIP DUES AND ASSESSMENT 36,909. PART XII, LINE 4B - OTHER ADJUSTMENTS: ASSIGNABLE MARGINS 8,123,737. AFUDC -96,433. 1 CREDIT APPLIED TO ELECTRIC BILL 384 119485 0 BOOK PART III. CHUGACH 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 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 HAS A BOARD POLICY THAT ESTABLISHES THE CRITERIA, AS DEFINED ABOVE, THAT MEMBERS MUST MEET IN ORDER TO QUALIFY FOR ASSISTANCE IN PAYING THEIR PAST DUE ELECTRIC BILLS. THE APPLICANT SCREENING IS DONE THROUGH THE AGING AND DISABILITY RESOURCE CENTER ADMINISTERED BY THE MUNICIPALITY OF ANCHORAGE, DEPARTMENT OF HEALTH AND HUMAN SERVICES. X X 1 1 X X X X 1 0 0 ARTHUR MILLER CHIEF EXECUTIVE OFFICER 333710 0 76548 0 8354 0 141180 0 47323 0 607115 0 0 0 SHERRI HIGHERS CHIEF FINANCIAL OFFICER 273333 0 20000 0 2240 0 186661 0 43385 0 525619 0 0 0 LEE D THIBERT CHIEF EXECUTIVE OFFICER 182347 0 89830 0 126554 0 0 0 13938 0 412669 0 0 0 MATTHEW CLARKSON EXECUTIVE VP 296877 0 20000 0 937 0 45481 0 42634 0 405929 0 0 0 SHELDON NASLUND JOURNEYMAN LINEMAN 314706 0 0 0 174 0 58349 0 25243 0 398472 0 0 0 JEFFREY GILBERT SR SUBSTATION LINEMAN 5% 250404 0 0 0 18208 0 80625 0 24044 0 373281 0 0 0 MICHAEL BULLARD SUBSTATION FOREMAN 5% 255910 0 0 0 647 0 66202 0 24044 0 346803 0 0 0 ANDREW LAUGHLIN EXECUTIVE VP 232382 0 0 0 892 0 71576 0 40815 0 345665 0 0 0 VLADIMIR KRIVONOSOV SR. DESIGNER 265923 0 0 0 902 0 40526 0 24767 0 332118 0 0 0 JONATHAN SKINNER SR. POWER DISPATCHER 256682 0 0 0 231 0 43927 0 24108 0 324948 0 0 0 BRIAN HICKEY CHIEF OPERATING OFFICER 145437 0 20000 0 18532 0 111143 0 24328 0 319440 0 0 0 TYLER ANDREWS EXECUTIVE VP 14042 0 0 0 264705 0 0 0 11914 0 290661 0 0 0 MARK FOUTS EXECUTIVE VP 110419 0 20000 0 22174 0 0 0 19059 0 171652 0 0 0 PART I, LINE 4A TYLER ANDREWS RECEIVED $254,000 IN SEVERANCE IN JANUARY 2022. THIS AMOUNT IS REPORTED ON PART II, COL B (III). PART I, LINE 1A CHUGACH 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 CHUGACH'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. ON OCCASION, OFFICERS USE FIRST-CLASS TRAVEL FOR TRAVEL OUT OF STATE TO PERFORM BUSINESS ON BEHALF OF THE ORGANIZATION. THE FIRST-CLASS FARES OBTAINED ARE COMPARABLE TO THE COACH FARES AVAILABLE ON THE COMMERCIAL AIRLINE USUALLY USED BY THE ORGANIZATION FOR BUSINESS TRAVEL. THE GROSS-UP PAYMENTS APPLIED TO CHUGACH'S EMPLOYEES ARE NON-CASH REWARDS, CONSISTING OF GIFT CARDS AND AN EMPLOYEE RECOGNITION PROGRAM, WHERE POINTS CAN BE REDEEMED FOR VARIOUS PRIZES. PART I LINE 1 CHUGACH ELECTRIC ASSOCIATION, INC. PROVIDES THE GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO RETAIL CUSTOMERS AND THE GENERATION AND TRANSMISSION OF ELECTRICITY TO ITS WHOLESALE CUSTOMER. PART III LINE 4A CHUGACH ELECTRIC ASSOCIATION, INC. PROVIDES TRANSMISSION AND DISTRIBUTION SERVICES TO APPROXIMATELY 113,211 RETAIL SERVICE LOCATIONS AND PROVIDES GENERATION AND TRANSMISSION SERVICES TO ITS WHOLESALE CUSTOMER. PART III LINE 1 CHUGACH ELECTRIC ASSOCIATION, INC. PROVIDES THE GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRICITY TO RETAIL CUSTOMERS AND THE GENERATION AND TRANSMISSION TO ITS WHOLESALE CUSTOMER. WE PROVIDE SAFE, RELIABLE, AND AFFORDABLE ELECTRICITY THROUGH SUPERIOR SERVICE AND SUSTAINABLE PRACTICES, POWERING THE LIVES OF OUR MEMBERS. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION IS AN ELECTRIC COOPERATIVE WHICH IS OWNED BY ITS MEMBERS, APPROXIMATELY 91,087 AS OF 12/31/22. FORM 990, PART VI, SECTION A, LINE 7A THE CURRENT BOARD OF DIRECTORS ARE ELECTED BY THE MEMBERSHIP AND SERVE FOUR-YEAR TERMS. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE ORGANIZATION'S BYLAWS AND ARTICLES OF INCORPORATION ARE SUBJECT TO APPROVAL BY THE MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 8B 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 RECOMMENDATIONS UNDERTAKEN DURING THE YEAR. FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION'S REVIEW PROCESS FOR FORM 990 INCLUDES AN INITIAL REVIEW BY THE CEO AND OFFICERS IN DETAIL, INCLUDING ALL FORMS AND SCHEDULES. THE FORMS AND SCHEDULES ARE ALSO PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THE CHUGACH BOARD HAS A WRITTEN "PROHIBITED CONDUCT AND CONFLICT OF INTEREST" POLICY AND PROCEDURES FOR REVIEW AND APPROVAL OF RELATED-PARTY TRANSACTIONS. EITHER THE BOARD MEMBERS OR THE CEO WILL CONDUCT THE REVIEW, DEPENDING WHO IS INVOLVED. AMONG OTHER FACTORS, THE NATURE OF THE TRANSACTION AND WHETHER THE TRANSACTION OR RELATIONSHIP IMPAIRS THE ABILITY OF THE EMPLOYEE OR DIRECTOR TO SERVE THE BEST INTEREST OF CHUGACH ARE EVALUATED DURING THE REVIEW. 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 LEGAL COUNSEL. 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. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS ENLISTED THE AID OF AN INDEPENDENT CONSULTANT TO ADVISE THEM ON MARKET COMPENSATION, AND THE PROCESS WAS CONTEMPORANEOUSLY DOCUMENTED. AFTER MEETING WITH THE CONSULTANT, THE BOARD SET THE CEO'S SALARY. FORM 990, PART VI, SECTION C, LINE 19 ALL APPLICABLE DOCUMENTS ARE AVAILABLE TO THE PUBLIC ON THE COMPANY'S WEBSITE. PART VI, SECTION A, LINE 9 LEE THIBERT - 139 CRYSTAL CREST DR., CHELAN WA 98816 BRIAN HICKEY - 2449 GLENWOOD ST., ANCHORAGE, AK 99508 TYLER ANDREWS - 6926 TOWN AND COUNTRY PLACE, ANCHORAGE, AK 99502 MARK FOUTS - 10401 KASILOF BLVD, ANCHORAGE, AK 99507 JAMES HENDERSON - P.O. BOX 1051 GIRDWOOD, AK 99587 HOLLIS HAROLD - 11303 QUEST CIRCLE, ANCHORAGE, AK 99515 ERIN WHITNEY - 9650 BRIEN STREET, ANCHORAGE, AK 99517 PART XI, LINE 9 THE OTHER CHANGES IN NET ASSETS OR FUND BALANCES CONSISTS OF AN INCREASE IN DONATED CAPITAL OF $135,934, A DECREASE IN UNREDEEMED CAPITAL CREDITS OF ($19,685), RETIREMENT OF CAPITAL CREDITS AND ESTATE PAYMENTS OF ($1,942,357), AND ASSIGNABLE MARGINS OF $8,123,737, TOTALING A NET CHANGE OF $6,297,629.