2023-11-02T17:13:31-05:00 2022-12-31 450250958 EIDE BAILLY LLP 345 N REID PL STE 400 SIOUX FALLS SD 571037034 990 2022-01-01 421468305 HEARTLAND POWER COOPERATIVE HEAR 6415842251 216 JACKSON ST THOMPSON IA 504780065 JON LEERAR CEO/GENERAL MANAGER 6415842251 2023-10-30 1 JON LEERAR 999009999 1 LAURIE HANSON CPA P00851848 6053391999 2023-10-30 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z JON LEERAR 216 JACKSON ST THOMPSON IA 504780065 29935470 0 X WWW.HEARTLANDPOWER.COM X 1997 IA TO PROVIDE ELECTRICITY TO RURAL COMMUNITIES. 8 8 25 0 25997 1582 505238 0 23993840 29482956 53130 102095 91573 123059 24643781 29708110 0 0 1582890 1557647 2427585 2390871 0 0 0 19903591 25248595 23914066 29197113 729715 510997 55926018 58299150 22964541 24022726 32961477 34276424 X OUR VISION IS TO BE THE PROVIDER OF CHOICE FOR ENERGY AND SERVICES BY ALL CONSUMERS. OUR PRIMARY PURPOSE IS TO PROVIDE ELECTRICAL ENERGY AND OTHER SERVICES THAT ENHANCE THE QUALITY OF LIFE OF OUR MEMBERS AND THE ECONOMIC AND SOCIAL WELL-BEING OF THE REGION AT THE LOWEST POSSIBLE COST CONSISTENT WITH SOUND ECONOMIC AND MANAGEMENT DECISIONS. 0 0 HEARTLAND POWER COOPERATIVE INVESTED IN NEW SERVICE LINES, LINE AND SERVICE IMPROVEMENTS, AND ORDINARY REPLACEMENT OF EXISTING LINE TO KEEP UP THE CONDITION OF OUR DISTRIBUTION SYSTEM. A SUMMARY OF THESE IMPROVEMENTS IS LISTED BELOW:24.5 MILES OF OVERHEAD LINE WAS REBUILT9.25 MILES OF UNDERGROUND LINE WAS INSTALLED34 NEW SERVICES CONNECTED621 NEW POLES WERE PLACED FOR NEW LINE, NEW SERVICES, AND FOR ORDINARY REPLACEMENT OF DAMAGED OR DECAYED POLES OR FOR BETTER LINE CLEARANCE4,744 POLES WERE INSPECTED FOR DECAY OR DAMAGE, 39 POLES TAGGED FOR REPLACEMENT293 ARRESTORS WERE ADDED TO LINES TO DRAIN OFF LIGHTNING SURGES24 ELECTRONIC TRIP SAVERS WERE INSTALLED TO IMPROVE RELIABILITY AND REDUCE OUTAGES239 SECURITY LIGHTS WERE REPAIRED 0 0 0 0 0 0 0 1 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 0 0 0 0 0 0 0 0 0 1 17 0 1 25 1 1 1 0 0 0 0 29499165 476567 0 0 0 X 8 8 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 0 X KARRIE PRINGNITZ 6415842251 216 JACKSON ST THOMPSON IA 50478 X DON KNUDTSON PRESIDENT 7.00 X X 10000 0 0 MARK KINGLAND VICE PRESIDENT 7.00 X X 8450 0 0 VINCE MORISCHE SECRETARY 7.00 X X 11025 0 0 GARY PEARSON ASST. SECRETARY-TREASURER 4.00 X X 5450 0 0 MICHAEL COLE DIRECTOR 4.00 X 9000 0 0 ROGER SOLOMONSON DIRECTOR 4.00 X 6225 0 0 ROGER TJARKS DIRECTOR 6.00 X 7050 0 0 TRICIA JAEGER TREASURER 6.00 X X 8100 0 0 JON LEERAR CEO/GENERAL MANAGER 60.00 X 175675 0 43040 KARRIE PRINGNITZ DIRECTOR OF FINANCE 50.00 X 117461 0 33894 DAVE LOW DIRECTOR OF OPERATIONS 50.00 X 114453 0 37106 472889 0 114040 3 0 1 0 STAR ENERGY SERVICES 6841 POWER LANE SW ALEXANDRIA MN 56308 ENGINEERING AND OTHER SERVICES 495610 1 SALE OF POWER 221000 28592284 28592284 CAPITAL CREDITS 221000 890672 890672 29482956 46764 46764 86925 0 86925 86925 86925 71581 16250 55331 55331 55331 221247 211110 10137 10137 PARTNERSHIP INCOME 517000 25997 25997 25997 29708110 29493093 25997 189020 1557647 499563 1397137 362928 131243 421646 1720676 COST OF POWER 21742490 OTHER OPERATIONS 1363783 29197113 153697 185883 2709058 2736763 2588313 2333152 514634 1871419 18661 21407 54579583 17943070 36121690 36636513 103703 105703 13709600 14401648 6662 6662 55926018 58299150 2814037 2717183 11652668 10799482 537378 1256686 7960458 9249375 22964541 24022726 X 0 0 0 0 32961477 34276424 32961477 34276424 55926018 58299150 X 510997 803950 X 0 1 X 1 0 1 10345 21540 21555 10330 0 136340 136340 1771096 655740 1115356 7531312 2894206 4637106 2178434 42962401 14393124 30747711 36636513 DAIRYLAND POWER COOPERATIVE, INC. 13163160 C FEDERATED RURAL ELECTRIC INSURANCE CORP 119534 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 810293 C WCTA 53517 C RURAL ELECTRIC SUPPLY COOPERATIVE 21007 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 20039 C NATIONAL INFORMATION SERVICE COOPERATIVE 54237 C COBANK 141236 C OTHER INVESTMENTS 18625 C 14401648 CUSTOMER DEPOSITS 67770 DEFERRED CREDITS 8782091 OTHER LIABILITIES 26332 LEASE LIABILITIES 373182 9249375 X 29682113 0 29682113 25997 25997 29708110 27639466 0 27639466 1557647 1557647 29197113 PART IV, LINE 1B: THE HPC OPERATION ROUND UP PROGRAM WAS ESTABLISHED IN 2003 AND IS FUNDED WITH THE MONIES VOLUNTARILY COLLECTED BY ROUNDING UP PARTICIPATING CUSTOMER-OWNER'S ELECTRIC BILLS. THE PURPOSE OF THE PROGRAM SHALL BE THE ACCUMULATION AND DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES OF ORGANIZATIONS, INDIVIDUALS AND/OR FAMILY EMERGENCY DISASTERS IN THE SERVICE AREA AND REGIONAL COOPERATIVE FAMILY OF HEARTLAND POWER COOPERATIVE (HPC). THE BOARD OF DIRECTORS OF HPC ADMINISTER THE PROGRAM AND A COMMITTEE DESIGNATED BY THE HPC BOARD OF DIRECTORS REVIEWS APPLICATIONS FOR PRESENTATION AND APPROVAL OF THE HPC BOARD. PART X, LINE 2: THE COOPERATIVE BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL FILING REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. THE COOPERATIVE WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF SUCH INTEREST AND PENALTIES ARE INCURRED. PART XI, LINE 4B - OTHER ADJUSTMENTS: PARTNERSHIP INCOME 25,997. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2022 MARGINS TO MEMBERS IN 2023 1,557,647. X X X 0 0 0 JON LEERAR CEO/GENERAL MANAGER 175675 0 0 0 0 0 12024 0 31016 0 218715 0 0 0 DAVE LOW DIRECTOR OF OPERATIONS 114453 0 0 0 0 0 17720 0 19386 0 151559 0 0 0 KARRIE PRINGNITZ DIRECTOR OF FINANCE 117461 0 0 0 0 0 4454 0 29440 0 151355 0 0 0 SCHEDULE J, PART II COL (C) INCLUDED IN COLUMN C IS THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR JON LEERAR OF $6,873. THE ACTUAL EXPENSE OF THE COOPERATIVE FOR JON'S DEFINED BENEFIT PLAN WAS $44,152. INCLUDED IN COLUMN C IS THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR KARRIE PRINGNITZ OF $3,210. THE ACTUAL EXPENSE OF THE COOPERATIVE FOR KARRIE'S DEFINED BENEFIT PLAN WAS $30,124. INCLUDED IN COLUMN C IS THE CHANGE IN ACTUARIAL VALUE IN THE DEFINED BENEFIT PLAN FOR DAVID LOW OF $4,160. THE ACTUAL EXPENSE OF THE COOPERATIVE FOR DAVID'S DEFINED BENEFIT PLAN WAS $27,893. FORM 990, PART VI, SECTION A, LINE 4 ANY TWENTY (20) OR MORE MEMBERS MAY MAKE OTHER NOMINATIONS IN WRITING OVER THEIR SIGNATURES NOT LESS THAN FORTY-FIVE (45) DAYS PRIOR TO THE MEETING AT WHICH DIRECTORS ARE TO BE ELECTED, AND THE SECRETARY SHALL POST THE SAME AT THE SAME PLACE WHERE THE LIST OF NOMINATIONS BY THE COMMITTEE IS POSTED; SUCH NOMINATIONS SO MADE BY SUCH MEMBERS TO BE SUBJECT TO THE SAME SERVICE REQUIREMENTS AS NOMINATIONS BY THE NOMINATING COMMITTEE HERETOFORE PRESCRIBED. PRIOR TO THE AMENDEMENT, NOMINATIONS HAD TO BE MADE NOT LESS THAN FIFTEEN (15) DAYS PRIOR TO THE MEETING. THE ELECTION OF THE DIRECTORS SHALL BE BY BALLOT, AND EACH VOTING MEMBER SHALL BE ENTITLED TO CAST ONE VOTE FOR EACH DIRECTOR TO BE ELECTED. PRIOR TO THE AMENDMENT, EACH VOTING MEMBER WAS ENTITLED TO CAST ONE VOTE FOR EACH DIRECTOR TO BE ELECTED IN THE DISTRICT WHERE THE MEMBER RESIDES OR RECEIVES SERVICE. AT ANY REGULAR MEETING OF MEMBERS, OR ANY MEETING CALLED FOR THAT PURPOSE, WHERE PROPER NOTICE TO ALL MEMBERS HAS BEEN GIVEN, ANY DIRECTOR MAY BE REMOVED BY VOTE OF A MAJORITY OF ALL MEMBERS. PRIOR TO THE AMENDEMENT, ANY DIRECTOR COULD BE REMOVED BY VOTE OF A MAJORITY OF ALL MEMBERS IN THE DIRECTOR'S DISTRICT. FORM 990, PART VI, SECTION A, LINE 6 CLASSES OF MEMBERS INCLUDE RESIDENTIAL, AGRICULTURAL, AND COMMERCIAL. FORM 990, PART VI, SECTION A, LINE 7A ALL MEMBERS IN ALL CLASSES MAY VOTE, EACH MEMBER HAVING EQUAL AUTHORITY. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN BYLAW CHANGES REQUIRE MEMBER APPROVAL. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE GENERAL MANAGER OR FINANCE OFFICER REVIEWS THE 990 IN DETAIL. AFTER THEIR REVIEW, THE 990 IS PROVIDED TO EACH BOARD MEMBER. THE 990 IS NOT FILED UNTIL EACH BOARD MEMBER HAS BEEN GIVEN A COPY OF IT AND GIVEN AMPLE TIME TO REVIEW IT. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES AND BOARD MEMBERS ARE COVERED BY THE CONFLICT OF INTEREST POLICY. ANNUALLY, AND OTHERWISE UPON THE SEATING OF ANY NEW BOARD MEMBER OR UPON THE HIRING OF ANY NEW EMPLOYEE, A DISCLOSURE OF CONFLICT OF INTEREST STATEMENT WILL BE SIGNED BY EACH DIRECTOR. IT WILL BE THE RESPONSIBILITY OF THE BOARD PRESIDENT TO ADDRESS ANY CONFLICTS OF INTEREST AND TAKE APPROPRIATE ACTION IF ANY DIRECTOR OF THE COOPERATIVE HAS BEEN DEEMED NOT ADHERING TO THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS OF DETERMINING COMPENSATION FOR THE CEO/GENERAL MANAGER IS: COMPARABILITY DATA, ANNUAL REVIEW AND BOARD APPROVAL. THE DISCUSSION IS DOCUMENTED IN A SPECIAL BOARD MEETING. THE BOARD OF DIRECTORS UTILIZE THE ANNUAL NRECA COMPENSATION SURVEY WHEN REVIEWING THE CEO/GENERAL MANAGER COMPENSATION. THIS PROCESS WAS LAST UNDERTAKEN IN SEPTEMBER 2019. THE PROCESS OF DETERMINING COMPENSATION FOR OTHER OFFICERS AND MANAGEMENT IS: COMPARABILITY DATA AND AN ANNUAL REVIEW BY THE CEO/GENERAL MANAGER. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO MEMBERS OF THE COOPERATIVE UPON REQUEST. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE CEO/GENERAL MANAGER AND DIRECTOR OF FINANCE. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -703,404. CHANGE IN OTHER EQUITIES -24,296. ALLOCATION OF 2022 MARGINS TO MEMBERS IN 2023 1,557,647. PARTNERSHIP INCOME NOT ON BOOKS -25,997. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: THE COOPERATIVE HAS INTERPRETED THE INSTRUCTIONS TO PART IX, LINE 4, TO MEAN PATRONAGE CAPITAL ALLOCATED FOR THE YEAR, RATHER THAN PATRONAGE CAPITAL RETIRED. THIS IS CONSISTENT WITH THE BY-LAWS OF THE COOPERATIVE. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 5-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E.