Peninsula Light Company

“We are a mutual/cooperative where the recipients of our utility services are the owner/members”

“Members all the same class - receive utility service from company”

“A by-law change requires vote of the membership.”

“There are no committees that have the authority to act on behalf of the governing body so the question is not applicable.”

“Copies of the 990 will be included in the board packets distributed prior to their monthly meeting. Any questions will be discussed and answered at the board meeting and discussion will be noted in the board minutes. Copies of the 990 will be distributed to senior staff and any questions will be discussed and answered at the senior staff meeting.”

“Human resource (hr) director monitors and administers the policy.”

“Ceo - an independent consultant was hired to conduct a market salary study for the ceo position - the hr director was assigned as project manager to work with the consultant and report directly to the president of the board and the chairman of the board goals/long-term planning committee. The ceo had no contact or interaction in any way with the consultant or hr director or board regarding this project. - the consultant reported his findings to the entire board of directors with the hr director present. A question and answer session followed where the consultant and hr director answered specific questions from the board about the comparability of data presented. - the hr director and consultant were excused and the entire board deliberated before reaching their decision as to wage placement for the ceo. - the following morning the chairman of the board goals/long-term planning committee informed the hr director of the compensation change and effective date for the ceo. - in a separate meeting, the board president and chairman of the goals/long-term committee informed the ceo. Cfo - an independent consultant was hired to conduct a market salary for all exempt management positions - the consultant reported his findings to the hr director; they discussed the data comparables and substantiation behind it. - the hr director presented this information to the ceo and discussed it. - an internal equity compensation committee was formed consisting of a manager from each division of the company. Training was provided by the consultant. This committee provided independent recommendations as to position placement in a salary schedule. - the hr director and ceo discussed the committee and the consultant recommendations and the financial ability of the company to support the data. - following deliberation, the pay range for the cfo position was determined - following the market study, a minor pay adjustment was made for the cfo incumbent.”

“These documents are available upon written request at the company's main office.”

“Net increase in memberships 60,475.”

“The amounts for compensation in the statement of functional expenses do not include all wages for peninsula light company. The amounts on lines 5 & 7 are only for wages pertaining to general and administrative employees. All other wages are integrated throughout other expenses, such as power expense, distribution, etc.”