Pennsylvania Rural Electric Association

“Pennsylvania rural electric association (prea) does not employ or compensate any operating officers, key employees, or top management officials. All operating officers are employed and compensated by an unrelated management company.”

“An unrelated management company employs and compensates the persons providing services to pennsylvania rural electric association.”

“Prea, as a section 501(c)(6) membership organization, by definition, is composed of members. Since 1942, prea has served as the unified voice for electric cooperatives in pennsylvania and new jersey. These member-owned entities provide power and other services within their respective service territories. Prea is a non-profit, service organization headquartered in harrisburg, pa., and is governed by a 14-member board of directors - one director from each member cooperative. At the distribution member cooperative level, each cooperative has a process to elect a director from their own board to be a nominee to the prea board. The member delegates then vote to accept or reject the nominee.”

“Prea, as a section 501(c)(6) membership organization, by definition, is composed of members. Since 1942, prea has served as the unified voice for electric cooperatives in pennsylvania and new jersey. These member-owned entities provide power and other services within their respective service territories. Prea is a non-profit, service organization headquartered in harrisburg, pa., and is governed by a 14-member board of directors - one director from each member cooperative. At the distribution member cooperative level, each cooperative has a process to elect a director from their own board to be a nominee to the prea board. The member delegates then vote to accept or reject the nominee.”

“The board of directors has complete autonomy with respect to most decisions. Some items however are reserved for approval by the members. For example the decision to undertake new debt or financing or a decision to dissolve the organization are both reserved for a vote of the members.”

“The form 990 is prepared by a nationally recognized accounting and tax consulting firm. The draft form 990 is reviewed by prea's management and is then submitted to the governing body for comments and questions prior to its filing with the internal revenue service.”

“Directors - prior to a member delegate being sworn into the position as a prea director, the candidate takes an oath that addresses conflicts of interest and fiduciary responsibilities. The candidate receives the ethics policy at that time. All directors are required to complete and sign the disclosure of interest form every year. Officers and employees - all management company employees, including new employees, who work on prea matters receive a copy of prea's ethics policy, which addresses conflicts of interest. Prea also has a separate disclosure of interest policy and whistleblower policy. The management company employees who work on prea matters receive periodic reviews and updated ethics-related policies when they are amended. The management company employees with the ability to sign, control, or influence contracts are obligated to complete and sign the disclosure of interest form every year.”

“Prea does not make its governing documents, conflict of interest policy or financial statements available to the public.”

“DIRECTORY REVENUE - Total Revenue: 7558, Related or Exempt Function Revenue: 7558, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0;”