Ravalli Electric Cooperative Inc

“Members are individuals and businesses which receive electric service from the Cooperative.”

“Each member of the Cooperative is entitled to vote in the election of the Board of Directors, who each serve three year terms. Elections are held every year at the annual meeting in March.”

“All bylaw changed recommended by the Board of Directors are approved and ratified by a majority of quorum membership at the Cooperatives annual meeting in March.”

“After the Form 990 has been prepared by an independent accountant, the General Manager and other managing staff review the Form for accuracy and completeness. Once any changes has been made per their recommendations, if any, the General Manager approves the Form and it is submitted to the Board of Directors for approval prior to its filing.”

“The conflict of interest policy is included in the bylaws. All trustees mustdisclose to the Board of Directors any situation or transaction in which the trustee is involved which violates, or could appear to violate, the intent of the conflict of interest policy.”

“Montana Electric Cooperative Association (MECA) and the National Rural ElectricCooperative Association (NRECA) performs an annual salary survey by job classification. The Board of Directors use these surveys to determine the salaryguidelines for the General Manager.”

“Montana Electric Cooperative Association (MECA) and the National Rural ElectricCooperative Association (NRECA) performs an annual salary survey by job classification. Management uses these surveys and the employment cost index todetermine the range of salaries for key employees.”

“All governing documents, policies and financial reports (including the RUS Form 7and Form 990) are available upon request at the Cooperative headquarter office. Inaddition, each new member is provided with a packet informing them that they areentitled to access all governing documents, policies, rules and regulations, and the Statement of Financial Condition is sent out yearly to all members prior to theannual meeting held in March of each year. Also, the Statement of FinancialCondition is published annually in the MECA magazine.”

“Equity in subsidiary earnings/losses: -435,152Other comprehensive gain/loss: -8,838Total: -443,990”