2023-09-15T15:07:30-05:00 2022-12-31 410746749 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2022-01-01 410363020 LAKE REGION ELECTRIC COOPERATIVE LAKE 2188631171 PO BOX 643 PELICAN RAPIDS MN 565720643 TIM THOMPSON CEO 2188631171 2023-09-04 1 TIM THOMPSON 999009999 0 KATHERINE LUTZKE CPA P01760889 5072802300 2023-09-04 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z TIM THOMPSON PO BOX 643 PELICAN RAPIDS MN 565720643 57211154 0 X WWW.LREC.COOP X 1937 MN TO PROVIDE OUR MEMBERS WITH SAFE, RELIABLE, AFFORDABLE ELECTRICITY, AND LEAD BY OFFERING INNOVATIVE ENERGY SERVICES TO GROW THE COOPERATIVE. 9 8 73 0 4777 0 0 0 54152467 54799770 312750 322844 2531861 1353052 56997078 56475666 0 0 4017001 3050784 8472446 615525 0 0 0 42906516 52534012 55395963 56200321 1601115 275345 144282112 146470686 78127194 79061674 66154918 67409012 TO PROVIDE OUR MEMBERS WITH SAFE, RELIABLE, AFFORDABLE ELECTRICITY, AND LEAD BY OFFERING INNOVATIVE ENERGY SERVICES TO GROW THE COOPERATIVE. 0 0 ELECTRICITY DISTRIBUTION - DISTRIBUTES ELECTRICITY TO 29,685 MEMBERS IN ITS 5,862 MILES OF LINES WITHIN THE SERVICE TERRITORY. ETS HEATING (STEFFES)/WATER HEATERS/GENERATORS - MEMBERS ABLE TO PURCHASE STEFFES ETS HEATERS/WATER HEATERS AND GENERATORS THROUGH AN EASY PAY PURCHASE PROGRAM, THEN BILLED EACH MONTH ON ELECTRIC BILL. ADDED IN 2022 WERE GOWEST SOLAR SYSTEMS AND EASY PAY OPTION FOR MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 351 0 1 73 1 1 1 0 0 0 0 56884941 1341854 0 0 0 X 9 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 0 X X AMANDA FULLER 2188631171 1401 S BROADWAY PELICAN RAPIDS MN 56572 CECIL HENSEL DIRECTOR 3.31 X 14380 0 0 CHARLIE BLIXT DIRECTOR - PARTIAL YEAR 4.15 X 6700 0 0 EARL RYDELL DIRECTOR 5.62 X 12940 0 0 GARY OLSON DIRECTOR - PARTIAL YEAR 4.08 X 9520 0 0 JOYCE VALLEY SECRETARY 1.54 X X 5600 0 0 KURT KRUEGER DIRECTOR 3.00 X 15370 0 0 MICHAEL BRASEL DIRECTOR 2.17 X 10720 0 0 PATRICK MEYERS DIRECTOR 2.46 X 12840 0 0 ROBERT SHAW TREASURER 1.73 X X 5960 0 0 SID WISNESS VICE CHAIR 4.31 X X 14520 0 0 THOMAS JENNEN CHAIR 2.60 X X 17000 0 0 TIM THOMPSON CEO 50.00 X 309099 0 180875 AL FAZIO VP OF OPERATIONS/ENGINEERING 50.00 X 159266 0 101770 DONALD J HANSON LEAD LINEMAN 50.54 X 138473 0 61527 DYLAN AAFEDT VP OF BUSINESS DEVELOPMENT 50.00 X 146022 0 22118 ERIK OLSON JOURNEYMAN LINE WORKER 50.30 X 143977 0 18512 JASON HAMAN LEAD LINEMAN 50.71 X 147105 0 76444 1169492 0 461246 28 0 1 0 CARR'S TREE SERVICE INC PO BOX 250 OTTERTAIL MN 56571 TREE CLEARING 1778305 MVM CONTRACTING INC 3350 35TH AVE S FARGO ND 58104 PLOWING/BORING FOR UNDERGROUND CABLE 506794 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE ROAD PAYNESVILLE MN 56362 POLE CHANGE OUTS, WORK ORDER, OUTAGE RES 345914 ARNTSON CONSTRUCTION INC 16606 STATE HWY 34 PELICAN RAPIDS MN 56572 NEW SUBSTATION LAND DEVELOPMENT SERVICES 139402 STAR ENERGY SERVICES 6841 POWER LANE SW ALEXANDRIA MN 56308 CONSULTING SERVICES 112765 5 SALE OF POWER 221000 54799770 54799770 54799770 189902 189902 188447 55505 132942 132942 132942 793889 679983 113906 4777 109129 CAPITAL CREDITS 900099 923073 923073 MISCELLANEOUS 900099 316073 316073 1239146 56475666 56038916 4777 431973 3050784 615525 1955677 4565528 COST OF POWER 34120319 DISTRIBUTION EXPENSE 7024168 ADMIN & GENERAL EXPENSE 2340679 CONSUMER ACCT EXPENSE 2198935 328706 56200321 1252477 2005489 1521105 1427170 5458649 5961300 1808186 2392484 1999963 1857573 153742999 57761139 94363252 95981860 701074 701635 34638514 35167308 2107 2107 2536785 973760 144282112 146470686 7864170 6998839 1860173 3806028 67903694 67780317 499157 476490 78127194 79061674 X 0 0 0 0 66154918 67409012 66154918 67409012 144282112 146470686 X 275345 978749 X X 0 1 X 1 0 435809 435809 9428407 4571021 4857386 142577667 53190118 89387549 1301116 1301116 95981860 GRE - CAP CREDITS 22189336 C NRUCFC - CAP CREDITS 705371 C NRUCFC - CAP TERM CERTS 980309 C NRUCFC - MEMBER CAP SECS 2600000 C FREIC 344301 C OTHER INVESTMENTS 8347991 C 35167308 CONSUMER DEPOSITS 350655 ACCUMULATED PROVISION FOR PENSION & BENEFITS 125835 476490 X PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED AT DECEMBER 31, 2022 AND 2021. THE COOPERATIVE HAS EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2022. X X X 0 0 0 TIM THOMPSON CEO 255282 0 42361 0 11456 0 149643 0 31232 0 489974 0 0 0 AL FAZIO VP OF OPERATIONS/ENGINEERING 150061 0 6571 0 2634 0 73450 0 28320 0 261036 0 0 0 JASON HAMAN LEAD LINEMAN 144797 0 700 0 1608 0 50608 0 25836 0 223549 0 0 0 DONALD J HANSON LEAD LINEMAN 135401 0 700 0 2372 0 33971 0 27556 0 200000 0 0 0 DYLAN AAFEDT VP OF BUSINESS DEVELOPMENT 134943 0 5524 0 5555 0 12246 0 9872 0 168140 0 0 0 ERIK OLSON JOURNEYMAN LINE WORKER 142026 0 900 0 1051 0 9443 0 9069 0 162489 0 0 0 TIM THOMPSON SEE BELOW 2622976 SEE BELOW 0 TIM THOMPSON SEE BELOW 189853 SEE BELOW 1 MICHAEL BRASEL SEE BELOW 33642704 SEE BELOW 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF PERSON: TIM THOMPSON(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION:CEO OF LREC AND BOARD MEMBER OF RESCO(D) DESCRIPTION OF TRANSACTION: RESCO IS A MAJOR SUPPLIER TO THE ORGANIZATION OF METERS, TRANSFORMERS, AND LINE MATERIAL.(A) NAME OF PERSON: TIM THOMPSON(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: CEO OF LREC AND BOARD MEMBER OF FEDAC(D) DESCRIPTION OF TRANSACTION: FEDAC IS THE PARENT COMPANY OF CARR'S TREE SERVICE. CARR'S TREE SERVICE ALSO PROVIDES VEGETATION MANAGEMENT TREE CLEARING SERVICES TO LREC. THERE ARE A TOTAL OF 10 COOPERATIVE OWNERS WHO SPLIT PROFITS 9 WAYS,WITH THE LAST 2 COOPERATIVES TO JOIN SPLIT 1/2 SHARE EACH.A) NAME OF PERSON: MICHAEL BRASEL(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER OF LREC AND BOARD MEMBER OF GREAT RIVER ENERGY(D) DESCRIPTION OF TRANSACTION: GREAT RIVER ENERGY IS A NOT-FOR-PROFIT ELECTRIC COOPERATIVE POWER SUPPLIER. LREC PURCHASES POWER FROM GREAT RIVER ENERGY. LREC ALSO MAKES PAYMENT TO GRE FOR SUBSTATION POOL CHARGES, SCADA CHARGES, MNTCE TO RADIO SYSTEMS, ACCESS C&I ACCOUNTS ON WEB, MIDWEST ELEC. CONSUMER DUES. FORM 990, PART VI, SECTION A, LINE 6 ONE CLASS OF MEMBERS AND EACH MEMBER RECEIVES ONE VOTE, EVEN IF THEY HAVE MULTIPLE ELECTRICAL CONNECTIONS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE ORGANIZATION ELECT THE MEMBERS OF THE GOVERNING BODY. ONE CLASS OF MEMBERS AND EACH MEMBER IS ENTITLED TO ONE VOTE. HUSBAND AND WIFE ONLY GET ONE VOTE FOR THEIR JOINT MEMBERSHIP. MEMBERS CAN ONLY VOTE WITHIN THEIR OWN DISTRICT. FORM 990, PART VI, SECTION A, LINE 7B THE BYLAWS MUST BE APPROVED BY A MAJORITY VOTE OF THE MEMBERS. THE FOLLOWING ITEMS MUST BE APPROVED BY TWO-THIRDS VOTE OF ITS MEMBERS: 1) SALE, LEASE OR EXCHANGE OF MORE THAN 25% OF ITS PROPERTY, PRIVILEGES, AND FRANCHISES; 2) MERGE OR CONSOLIDATE INTO ANOTHER ENTITY THAT IS NOT A RURAL ELECTRIC COOPERATIVE ASSOCIATION AND 3) DISSOLUTION OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY INTERNAL ACCOUNTING DEPARTMENT AND THEN PRESENTED TO THE BOARD OF DIRECTORS FOR APPROVAL PRIOR TO BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, EVERY DIRECTOR, OFFICER AND ALL EMPLOYEES MUST COMPLETE AND SIGN A "CONFLICT OF INTEREST DISCLOSURE STATEMENT". THE STATEMENTS ARE REVIEWED BY THE BOARD OF DIRECTORS FOR ALL DIRECTORS AND OFFICERS AND THE STATEMENTS ARE REVIEWED BY THE CEO FOR THE EMPLOYEES. BOARD MEMBERS WITH CONFLICTS ARE ASKED TO ABSTAIN FROM VOTING ON CONFLICTING ISSUES AND THEY ARE ASKED TO LEAVE THE ROOM. POTENTIAL CONFLICT OF INTEREST FOR EMPLOYEES IS DETERMINED BY THE CEO FOR REVIEW AND ACTION IF NECESSARY. ANY CONFLICT OF INTERESTS WILL BE DOCUMENTED IN THE BOARD MINUTES OR THE EMPLOYEE PERSONNAL FILE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS APPROVES THE CEO'S COMPENSATION. NRECA SALARY SURVEY'S ARE USED AS COMPARABILITY DATA AND WRITTEN MINUTES ARE TAKEN WHEN DETERMINING THE CEO'S COMPENSATION. THE CEO'S COMPENSATION WAS LAST REVIEWED IN NOVEMBER 2022. THE BOARD DOES NOT APPROVE SALARIES AND BENEFITS FOR ANY OTHER POSITIONS. THE CEO APPROVES THE COMPENSATION FOR OFFICERS OR KEY EMPLOYEES OF LREC. WAGE RANGES ARE ESTABLISHED USING NRECA SURVEYS, LOCAL MARKET DATA, COST OF LIVING, AND TRENDS IN THE INDUSTRY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, THE CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: PATRONAGE DIVIDENDS ALLOCATED 3,050,784. CAPITAL CREDITS RETIRED -1,928,979. CHANGE IN OTHER EQUITIES -143,056. FORM 990, PART XII, LINE 2C: THE OVERSIGHT OF THE FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT TO PERFORM THE AUDIT OF THE FINANCIAL STATEMENTS BY THE BOARD OF DIRECTORS HAS NOT CHANGED. FORM 990, PART IX, LINE 4: THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990. LAKE REGION ELECTRIC TRUST 1401 S BROADWAY PELICAN RAPIDS MN 56572 205114301 TO ACCUMULATE AND DISTRIBUTE FUNDS FOR CHARITABLE AND EDUCATIONAL PURPOSES MN 501(C)(3) LINE 7 LAKE REGION ELECTRIC COOPERATIVE 1 FEDERATED ACQUISITIONS LLC PO BOX 485 OWATONNA MN 56572 411911544 OWNER OF CARR'S TREE SERVICE - TREE CLEARING MN -62 871891 0 0 0.11110 LAKE REGION ELECTRIC HOLDING COMPANY LLC 1401 S BROADWAY PELICAN RAPIDS MN 56572 463931348 NATURAL GAS DISTRIBUTION MN LAKE REGION ELECTRIC COOPERATIVE C 195984 5998045 1.00000 1 0 1 0 0 0 1 0 0 0 0 0 1 1 1 1 1 1 1 1 FEDERATED ACQUISITIONS LLC F 75000 ACTUAL AMOUNT FEDERATED ACQUISITIONS LLC L 1636304 ACTUAL AMOUNT LAKE REGION ELECTRIC HOLDING COMPANY LLC B 438052 ACTUAL AMOUNT