Rappahannock Electric Cooperative

“Any person or other legal entity who is able to enter a legally binding contract will become a member of the cooperative upon receipt of electric service from the cooperative.”

“In any election for board of directors, each member shall have the right to vote for the duly nominated candidate of their choice in person at the annual meeting or upon a proxy form.”

“Certain decisions of the governing body are subject to approval by the members of the cooperative as provided for in the by-laws.”

“Before form 990 is submitted to the irs, the board of directors receives a copy of the form. The cooperative's management answers any questions brought to their attention by the board.”

“The governing board of directors along with members of management complete annual conflict of interest statements.”

“The cooperative utilizes an independent compensation consultant to review market trends and conduct an analysis of compensation. This information is utilized by the cooperative's board as part of the ceo's annual review for merit evaluation.”

“Other officers and key employees are reviewed by direct supervisors for merit evaluation. Market adjustments are determined through human resources using an independent compensation consultant review of current market trends and comparable compensation data.”

“Governing documents and policies, audited financial statements along with the form 990 are available upon request. By-laws and other governing documents are also available on the cooperatives web site.”

“990 part vii section a column f the cooperative participates in the nreca group defined pension plan. As part of this plan, participants are required to recognize the actuarial increase in the value of their account on the form 990. The contribution rate for participants in the plan is the same for all individuals in the plan. The change in actuarial value for each participant, however, varies with age. In other words, the older a participant is, the greater the increase in that individual's change in actuarial value with all other things being equal. 990 part vii section a column d directors are compensated for attending meetings and training. Out of total compensation reported in part vii, section a, column d, the following amounts were paid for director training: board member meetings training total eric paulson 30,900 6,500 37,400 christopher g. Shipe 35,500 2,500 38,000 eugene l. Campbell, jr. 30,900 6,500 37,400 linda r. Gray 30,500 6,500 37,000 jesse r. Thomas, jr. 30,400 5,500 35,900 j. Mark wood 30,600 6,500 37,100 sanford reaves, jr. 29,800 500 30,300 darlene h. Carpenter 30,600 5,000 35,600 michael w. Lindsay 30,800 9,500 40,300 total 280,000 49,000 329,000”

“Form 990, part ix, line 4 benefits paid to or for members patronage dividends are paid to members' accounts in accordance with the pre-existing obligation in the cooperative's by-laws. The cooperative is obligated to pay by credits to a capital account for each patron all such amounts in excess of operating costs and expenses. Irs instructions for line 4 changed in 2011 to include patronage dividends paid by section 501(c)(12) organizations to their members. Accordingly, these amounts are now reported on line 4.”

“Non-cash patronage allocations not rev per irs 4,296,372 pat div paid to members' accts not exp per gaap 16,997,013 net change in oci 829,078 contributions in aid of const not rev per gaap -75,601,487 net retirement of capital credits -1,574,888 loss on equity investment -343,572 total -55,397,484”