2017-05-03T08:55:12-07:00
2016-12-31
990
2016-01-01
030164375
VERMONT ELECTRIC COOPERATIVE INC
VERM
8026352331
42 Wescom Road
Johnson
VT
05656
Michael Bursell
Chief Financial Officer
8027301153
2017-04-28
71.181.14.145
2016
2017-02-10 21:41:12Z
Michael Bursell
42 Wescome Road
Johnson
VT
05656
82221711
0
X
WWW.VERMONTELECTRIC.COOP
X
1938
VT
Electric service to approximately 38,835 metered accounts located in 74 towns in Vermont. Sales of approximately 446,267 MWH's of electricity.
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12
112
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78530595
78435285
3395529
3779142
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82214427
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65862268
69709960
Vermont Electric Cooperative is a member owned not-for-profit utility whose mission is to provide energy and other appropriate services to its members.
0
0
82214427
0
82214427
Providing reliable electric service to approximately 38,835 metered accounts, with sales of approximately 446,267 MWH's.
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82214427
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74229419
6399785
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VT
X
X
Michael Bursell
8027301153
Vermont Electric Cooperative Inc
42 Wescom Road
Johnson
VT
05656
Daniel Carswell
Director - President
4
0
X
7630
0
16
George Lague
Director - 1st Vice President
10
0
X
10438
0
16
Carol Maroni
Director - 2nd Vice President
10
0
X
10280
0
16
John Ward
Director - Treasurer
6
0
X
10030
0
16
Mark Woodward
Director - Secretary
5
0
X
7580
0
16
Thomas Bailey
Director
4
0
X
9650
0
668
Ken Hoeppner
Director
4
0
X
9580
0
11
Michelle DaVia
Director
6
0
X
8830
0
16
Don Worth
Director
6
0
X
6450
0
15
Rich Goggin
Director
4
0
X
5150
0
16
Molly Lambert
Director
2
0
X
4950
0
16
Richard Westman
Director
5
0
X
4650
0
16
John Miller
Director - Through 5/2016
6
0
X
2180
0
11
Christine Hallquist
Chief Executive Officer
55
0
X
227938
0
30095
Michael Bursell
Chief Financial Officer
50
0
X
209172
0
29171
Jeffery Wright
Chief Operating Officer
50
0
X
170931
0
24728
Kevin Perry
Manager Power Supply & Rates
52
0
X
158284
0
26110
Victoria Brown
General Counsel
45
0
X
150205
0
25843
Mark Hinton
1st Class Lineworker-Group Leader
56
0
X
148561
0
52647
Chris Ingalls
1st Class Lineworker
54
0
X
138864
0
24199
Gary Young
1st Class Lineworker
55
0
X
138603
0
46622
1439956
0
260264
45
0
1
0
New England Tree Experts Inc
PO Box 504
Hardwick
VT
05843
Tree Clearing
1288231
Trees R Us LLC
PO Box 55
Greensboro Bend
VT
05842
Tree Clearing
848474
Trees Inc
1700 Solutions Center
Chicago
IL
60677
Tree Clearing
586865
Northco Land Management Inc
PO Box 14
Greensboro Bend
VT
05842
Tree Clearing
417699
Riggs Distler & Company Inc
PO Box 71592
Chicago
IL
60694
Line Construction
341112
12
0
Related Electric Operating Income
221000
78331076
78331076
0
0
Related Electric Non-Operating Income
221000
104209
104209
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0
0
0
0
0
78435285
3780066
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0
3780066
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6360
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7284
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-924
-924
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-924
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82214427
78435285
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3779142
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0
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4297658
586943
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7096270
986606
1323637
585217
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84963
52200
72742
0
0
309463
2321
897776
448385
0
109861
673201
0
242889
3308479
0
5736318
0
Purchased Power Expense
37026435
Transmission Expense
9728950
Tree Trimming Expense
2176009
Property Tax Expense
2827825
3640279
82214427
0
0
0
X
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1145572
2308648
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12396987
11891568
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4230317
4280313
1412072
451964
157564425
44587708
111670553
112976717
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0
19172612
26210188
1588707
6462325
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0
3873000
4117170
155489820
168698893
10637428
12418029
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69470564
86191285
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379619
89627552
98988933
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65862268
69709960
65862268
69709960
155489820
168698893
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3847692
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1
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1
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1077641
1077641
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4121361
1083793
3037568
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57196715
19701311
37495404
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95168708
23802604
71366104
112976717
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0
Vermont Electric Power Company-Stock
26061849
C
New England Hydro Transmission-Stock
148339
C
26210188
0
Capital Leases
198222
Current Portion of Capital Leases
18751
Deferred Compensation
162646
379619
X
82953358
0
0
0
849941
849941
82103417
0
111010
111010
82214427
75347221
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849941
849941
74497280
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7717147
7717147
82214427
Schedule D, Part X, Line 2
The Cooperative is a nonprofit and non-stock membership corporation organized under provisions of the Electric Cooperative Act of Vermont. The Cooperative is an organization described in Section 501 (c)(12) of the Internal Revenue Code, and has been recognized by the Internal Revenue Service as an organization exempt from taxes on related income under Section 501(a). Consideration has been given to uncertain tax positions. The federal income tax returns for the years ended after December 31, 2013 remain open for potential examination by major tax jurisdictions, generally for three years after they were filed.
Schedule D, Part XI, Line 2d
This amount equals the sale of excess purchased power, which is netted in purchased power expense on Form 990, Part IX, Line 24a.
Schedule D, Part XI, Line 4b
This amount includes the following: 1) Costs of $78,678, which offsets related electric non-operating income for book purposes and 2) Renewable Energy costs of $32,332, which offsets Renewable Energy Credits revenue for book purposes.
Schedule D, Part XII, Line 2d
This amount equals the sale of excess purchased power, which is netted in purchased power expense on Form 990, Part IX, Line 24a.
Schedule D, Part XII, Line 4b
This amount includes the following: 1) VEC Financial Statements list interest charges separately from operating expenses. Interest charges are included on the Form 990, Part IX, Line 20 - $3,308,479, 2) Non-Operating expenses of $78,678 were netted against non-operating revenue in the audited financials; however, is separated for purposes of the Form 990, 3) VEC's net income of $4,297,658 is included in Functional Expenses Part IX, Line 4 for purpose of the Form 990, 4) Renewable Energy expense of $32,332 was netted against Renewable Energy Credits revenue in the audited financials; however, is separated for purpose of the Form 990.
X
X
X
X
1
1
0
Christine Hallquist
Chief Executive Officer
216235
0
4542
0
7161
0
9176
0
20919
0
258033
0
0
0
Michael Bursell
Chief Financial Officer
199823
0
4212
0
5137
0
8524
0
20647
0
238343
0
0
0
Jeffery Wright
Chief Operating Officer
166715
0
3497
0
719
0
6406
0
18322
0
195659
0
0
0
Gary Young
1st Class Lineworker
136474
0
0
0
2129
0
28069
0
18553
0
185225
0
0
0
Mark Hinton
1st Class Lineworker-Group Leader
146230
0
0
0
2331
0
33984
0
18663
0
201208
0
0
0
Kevin Perry
Manager Power Supply & Rates
151263
0
3181
0
3840
0
6309
0
19801
0
184394
0
0
0
Victoria Brown
General Counsel
145509
0
3447
0
1249
0
6129
0
19714
0
176048
0
0
0
Chris Ingalls
1st Class Lineworker
138662
0
0
0
202
0
5646
0
18553
0
163063
0
0
0
Schedule J, Part I, Line 3
The CEO's compensation is performance based. The Board of Directors, as a whole, sets the CEO's goals and assesses performance during the CEO's contract year. The CEO's goals are primarily VEC's Strategic Plan and other objectives as given by the Board of Directors. If the core competencies in our strategic plan and other objectives have been met, the CEO has been successful. Each year the Manager of Human Resource proposes a percentage increase to salaries as part of VEC's budgeting purpose. The increase percentage amount, once approved, is the same for the CEO as it is for all other non-union employees. The Board of Directors does an assessment of the CEO's performance and awards the appropriate percentage of increase, which does not exceed the salary budget or the salary range.
Schedule J, Part I, Line 4
4. a. Jeffery Wright, Chief Operating Officer ended employment with Vermont Electric Cooperative, Inc on 11/11/16 and was given a severance amount equaling $13,067.20 in 2016. 4. b. The Cooperative has an executive retirement plan that is designed in accordance with Section 457(b) of the Internal Revenue Code. The plan became effective on June 1, 2014 and is administered by NRECA. The plan is available to highly compensated employees who are not a current participant in the RS Plan. The funds remain assets of the Cooperative until such time as the participant, or the participant's beneficiary, withdraws the funds in accordance with plan provisions.
Form 990, Part VI, Section A, Line 6
Vermont Electric Cooperative, Inc. (VEC) is a member owned utility; therefore, does not have stockholders.
Form 990, Part VI, Section A, Line 7a
VEC has members who vote to elect a director to represent their district.
Form 990, Part VI, Section A, Line 7b
Yes, the organization needs approval from the members to make changes to bylaws or articles of incorporation.
Form 990, Part VI, Section B, Line 11b
The form is prepared in detail by VEC's Assistant Controller, then reviewed in detail by VEC's Controller. After the Controller's review is complete, the Form 990 is sent to VEC's independent audit firm for their review. Copies are also provided to the CEO, CFO and VEC's Board of Directors for their review, prior to submission.
Form 990, Part VI, Section B, Line 12c
Board Policy B.4 was initially approved on 1/25/2000 and was reviewed and revised on 6/24/14. The policy covers all Board Members of Vermont Electric Cooperative, Inc.. Additionally, all members of the Board are provided an IRS Form 990 questionnaire annually for completion. Responses are reviewed by VEC's Finance department for completeness. The Board is responsible for enforcement of this policy on an ongoing basis. The Board's policy provides all the requirements to be met by Directors and the process by which a violation will be handled. All Directors are required to sign this policy. VEC also has a Management Policy for Conflict of Interest that was approved 4/16/14 and reviewed by the Board of Directors on 5/12/14. The policy covers all employees of Vermont Electric Cooperative, Inc.. All officers, highly compensated employees and key employees complete the IRS Form 990 questionnaire annually. In addition, Human Resource does provide a copy of VEC's Conflict of Interest Policy to employees during the on-boarding process. We review the details of the policy and obtain the employee's initials that we've reviewed the information. Previous to the formal policy adoption, VEC posted the Conflict of Interest policy for employees on the Intranet. The Chief Executive Officer is responsible for the administration and enforcement of this policy.
Form 990, Part VI, Section B, Line 15
VEC's Human Resource Department works with a third party to conduct a formal market assessment of all positions every three years. All non-union positions were assessed by Gallagher, Flynn & Company, LLC in December, 2015. In the off years, periodic assessments comparing gathered data from the New England Salary Survey, NRECA Compensation Survey, SHRM Compensation Data, VHRA Compensation and our own compilation of local utility data are used to assess increases to salary. Salary brackets are increased by 2/3rds of the average non-union increase to salary annually. The comparisons mentioned above are made when preparing the headcount and salary budget, and again months later when calculating the increase pool. All employee officers, key employees and remaining non-union employees fall under the same assessment. This information is shared with the VEC Board of Directors and they use this information for determining the CEO's compensation.
Form 990, Part VI, Section C, Line 19
VEC Bylaws are posted on our Web Site. Governing documents are available upon member request. VEC Financial Statements are available on our Web Site, in the lobby at the annual meeting or upon request.
Form 990, Part X, Line 16
On January 1, 2016 the Cooperative changed its method of accounting for debt issue costs to conform with ASU 2015-03, effective for fiscal years beginning after December 15, 2015. The change was adopted retroactively. Under the new accounting method, the Cooperative must now report their debt costs net of debt issue costs, increasing the effective interest rate. As a result, the cumulative effect of applying the new method, the following amounts increased (decreased): 2015 - Deferred Charges (257,308) / 2015 - LTD (257,308) / 2016 - Deferred Charges (223,000) / 2016 - LTD (223,000). VEC's audited balance sheet for 2015 (prior year) is reflective of this change.
Form 990, Part X, Line 34
On January 1, 2016 the Cooperative changed its method of accounting for debt issue costs to conform with ASU 2015-03, effective for fiscal years beginning after December 15, 2015. The change was adopted retroactively. Under the new accounting method, the Cooperative must now report their debt costs net of debt issue costs, increasing the effective interest rate. As a result, the cumulative effect of applying the new method, the following amounts increased (decreased): 2015 - Deferred Charges (257,308) / 2015 - LTD (257,308) / 2016 - Deferred Charges (223,000) / 2016 - LTD (223,000). VEC's audited balance sheet for 2015 (prior year) is reflective of this change.
Form 990, Part XI, Line 9
Other changes in net assets or fund balances of $3,847,692 is a net of the following: VEC's 2016 net income of $4,297,658, less patronage retirements in the amount of $449,975, plus donated capital in the amount of $9.