Rea Energy Cooperative Inc

“Rea energy cooperative is goverened by a nine member board of directors. Members of rea energy cooperative elect the directors to four year terms. According to the by-laws of the rea energy cooperative, "in the event of the dissolution or liquidation of the cooperative, after all outstanding indebtedness of the cooperative has been paid off, outstanding capital credits shall be returned without priority on a pro-rata basis before any payments are made on account or property rights of patrons."”

“Members of rea energy cooperative elect the board of directors to staggered, four year terms.”

“According to the by-laws of rea energy cooperative, "the cooperative may sell, lease, lease-sell, exchange or otherwise dispose of all or substantially all of its assets only when authorized by the affirmative vote of two-thirds of all members of the cooperative."”

“The ceo of the cooperative will review and approve the form 990 prior to signing the form 990 and filing with the internal revenue service. The form 990 is provided to the board of directors for review, prior to filing.”

“As fiduciaries of rea energy cooperative, inc., the directors and employees owe a duty of undivided loyalty and fidelity to rea. Directors and employees have the responsibility of administering the affairs of rea, both honestly and prudently and of exercising their best care, skill, and judgement for the sole benefit of rea. Those persons shall exercise the utmost good faith in all transaction involved in their duties and they shall not use their positions with rea or knowledge gained there for their personal benefit. The interests of rea must be the first priority in all decisions and actions. All directors and employees are required to fill out and sign the form detailing possible conflicts or stating that none exist. These forms are reviewed by the board of directors. Disclosures should be made to the executive committee of the board of directors, who shall bring the matter to the attention of the board of directors. The board shall then determine whether a conflict exists. In the minutes, the board will document the names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the interest, any actions to determine whether a conflict was present, and the final decision as to whether a conflict in fact existed. The decision of the board on these matters will rest in their sole discretion.”

“The compensation for the ceo of the cooperative is reviewed annually by the board of directors, using what other general managers and ceo's employed by electric cooperatives within the state of pennsylvania earn, as a guide. The compensation for key employees of the cooperative is reviewed annually by the ceo.”

“The by-laws of rea energy cooperative are available for review on the rea energy cooperative website. The form 990 is available to the public upon request. Financial information is presented in the "penn lines magazine." penn lines magazine is a monthly magazine distributed by our state-wide organization.”

“Donated capital, memberships, 2,863. Other equity change -2,077.”

“There has been no changes to both, the manner in which the committee oversees the audit and the selection process used.”