United Power Inc

“Members are businesses and individuals which received electric service from the cooperative.”

“Candidates for the Board are nominated by petition. The service area is broken into several Board Representation Areas and each area has multiple Board seats. The candidate must live in the Board area they run for. While candidates represent geographic regions, they are elected by the membership at-large. The highest vote getter for each seat is declared the winner. Board members serve three year terms.”

“The draft Form 990 is provided to the Board. They are given time to review it and provide comments. The Form 990 would then be revised as necessary prior to filing with the IRS.”

“The Board has a conflict of interest policy that applies strictly to them. New Board members are required to sign the policy and the Board self-polices the policy. A separate conflict of interest policy applies to employees. All members of senior management are required to sign the policy.”

“The Board uses a compensation study information from NRECA, Pay Factors and Employers Council to review and determine the appropriate compensation level of the CEO. Other officers and key employees are evaluated compared to data from the same sources. The data is reviewed as part of the annual budgeting process.”

“United Power provides financial statements to the members as part of the annual report. Bylaws and annual reports are available on the Company's website. Articles of incorporation, bylaws, annual reports and the conflict of interest policy can be obtained at the Company's headquarters.”

“The instructions to the 2022 Form 990 indicate that organizations exempt under Section 501(c)(12) should report "patronage dividends paid" to their members in Part IX, Line 4 of the Form 990. The Cooperative has interpreted the words "patronage dividends paid" in the instructions to mean margins that are assigned or assignable to the members. The Cooperative assigns the operating margins and certain non-operating margins to its members each year. Therefore, the amount listed in Part IX, Line 4 represents the net margins assignable to the members for the calendar years ended December 31, 2022 and 2021.”

“Gain of retirement of capital credits 175,060. Operating margins and certain non-operating margins to be allocated 12,283,816. Patronage capital retired -4,866,921. Transfer of unclaimed capital credit checks 713,258.”