Kem Electric Cooperative Inc

“Innovative energy alliance cooperative provides management services to rural electric cooperatives in the state of north dakota. Travis kupper and jason bentz serve in the role as co-managers for the cooperative, and both individuals work in excess of 40 hours a week for innovative energy alliance cooperative.”

“Individuals and entities receiving electrical power from the cooperative are members.”

“The members elect all board of directors at the annual meeting.”

“At the annual meeting, all bylaw changes must be approved by the members and the members may vote on motions concerning the operations of the cooperative.”

“A committee compiled of the board of directors chairman, vice chairman, secretary-treasurer will review form 990 each year before it is filed.”

“At each board metting, any director who actually or potentially is involved with a self-dealing matter, shall make full disclosure of the interest, shall not vote on the matter, and shall leave the board room during the discussion of the matter unless requested to stay in the board room during the discussion.”

“Ceo/executive director: a questionaire to review the performance of the general manager/ceo is completed by the board of directors each year, which is compiled by the attorney. Proper compensation is reviewed and approved by the board of directors and recorded appropriately in the board minutes each year. Other key employees: the board of directors set up a union negotiation committee compiled of 3 board members. The committee meets as needed and negotiates wages for the union employees. The board negotiation committee then presents their proposal to the full board of directors, who then approves or disapproves the wage increase, which is documented in the board minutes. All other non-union wages are generally based upon union raises. The board of directors are informed of all wage increases.”

“Bylaws & articles of incorporation are mailed to each new member of the cooperative and are available upon request. Conflict of interest policy is avilable upon request. Financial statements are published each year in the annual report and are available upon request.”

“Jason bentz, travis kupper and alex craigmile are employees of innovative energy alliance, a separate unrelated entity that provides management services to rural electric cooperatives in north dakota.”

“Included in the column "f" estimated amount of other compensation is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase is as follows for those listed in part vii: dale nagel - $29,788 austin ohlhauser - $14,691 martin messer - $16,582 kevin horner - $18,042 tyler schummer - $3,561 the current year expense for this defined benefit plan was as follows: dale nagel - $39,456 austin ohlhauser - $28,866 martin messer - $31,175 kevin horner - $31,175 tyler schummer - $13,809”

“Allocated capital credits 1,547,139. Retirement of capital credits -312,403.”

“There was no change in the oversight process in the current year. The full board meets with the auditor and reviews the audited financial statements.”

“The amount on this line is for patronage dividends. The cooperative has interpreted patronage dividends to mean the amount of capital credits that were allocated to members in the current year.”