Oregon Trail Electric Consumers Cooperative Inc

“There is only one class of membership for all residential, commercial, irrigation and industrial customers. Anyone that buys power from the cooperative is a member, unless they specifically decline membership when they sign up to receive service.”

“The cooperative is governed by a nine member board of directors. The Board of Directors appoints a nominating committee in each operating district of the cooperative. The members of the nominating committee in are published in local media in each district in a press release that includes the general qualifications to become a board member. In addition to those nominated by the committtee, members can be placed on the ballot if a petition is presented to the Board of Directors that contains 50 signatures of members (subject to time limitations as outlined in the bylaws of the cooperative).The directors serve three year terms. Ballots are mailed to all members prior to the annual meeting and are counted at the meeting.”

“The Board of Directors is elected from the members of the cooperative. All changes in bylaws, or a sale of the cooperative does require a vote of the membership.”

“The Form 990 is reconciled to the audited financial statements for the year. The answers to the governance, management policies, gross revenue test and compensation sections are reviewed in detail.”

“The cooperative has a board policy whereby each board member is required annually to complete a detailed disclosure statement and certification of compliance with the Conflict of Interest Policy. If any board member has a conflict with an issue, before the item is discussed, the board member leaves the meeting.Officers and Key Employees complete a detailed checklist annually documenting potential conflicts of interest, if any.”

“OTEC has had a compensation study completed by industry consultants that is updated annually. The consultant works with the Human Resourses Department to update job descriptions and job duties prior to the consultant updating the study.The Board of Directors has a compensation committee that is responsible for making a recommendation to the entire Board of Directors for adjustments to the CEO's compensation. As a part of the process, the Board of Directors set annual goals for the CEO. Based on those goals, the compensation committee prepares a performance review on which any pay adjustment is based.All employees have annual performance reviews prepared during the annual compensation adjustment process. The performance appraisals and compensation study are utilized in determining annual adjustments to Officers and Key Employees.”

“The Form 990 is available on Guidestar.org. Condensed financial statements are published in Ruralite Magazine prior to our annual meeting every spring. Selected policies are available on our Website at OTECC.com, additionally, policies may be obtained by coming into our Headquarters office.”

“Client Note 1 - OREGON TRAIL ELECTRIC CONSUMERS COOPERATIVE, INC.TAX YEAR ENDED DECEMBER 31, 2016FORM 990, PAGE 5, PART V, LINE 11b 93-0958642GROSS INCOME RECEIVED FROM OTHER SOURCES:INTEREST INCOME $ 131,186CAPITAL CREDIT DISCOUNTS TAKEN 74,570CAPITAL CREDITS REC'D - CFC 165,237CAPITAL CREDITS - OTHER 88,693OTHER NON OPERATING INCOME 1,500CONTRIBUTION IN AID OF CONSTRUCTION 838,647C&R DISCOUNT 983,745 TOTAL GROSS INCOME RECEIVED FROM OTHER SOURCES $2,283,578”

“Client Note 2 - ANALYSIS OF PLANT AND ACCUMULATED DEPRECIATION TOTAL ELECTRIC PLANT AS OF 12/31/2016 DATE COST ORPROPERTY ELECTRIC PLANT ACQUIRED OTHER BASISPRODUCTION 88-93 $2,531TRANSMISSION 88-16 $ 11,645,286DISTRIBUTION 88-16 $105,070,981GENERAL PLANT 88-16 $ 23,107,371INTANGIBLE PLANT 88-89 $ 370,520CONSTRUCTION IN PROGRESS 13-16 $ 400,703ACQUISTION ADJUSTMENT 88-89 $ 10,107,659COMPLETED CONSTR/LEASED PLANT 91-16 $ 4,931,084TOTAL PLANT $155,636,135 ANALYSIS OF CHANGES IN ACCUMULATED DEPRECIATION AS OF 12/31/2016ACCUMULATED DEPRECIATION TOTAL 1. BALANCE BEGINNING OF YEAR $50,838,378 2. ADDITIONS - DEPRECIATION ACCRUALS CHARGED TO: A. DEPRECIATION EXPENSE $ 4,607,109 B. CLEARING ACCOUNTS AND OTHERS $ 302,609 C. SUBTOTAL (A+B) $ 4,909,718 3. LESS - PLANT RETIREMENTS: A. PLANT RETIRED $ 3,170,762 B. REMOVAL COSTS $ 578,352 C. SUBTOTAL (A+B) $ 3,749,114 4. PLUS SALVAGED MATERIALS $ 583,436 5. TOTAL (2c-3c+4) $ 1,744,040 6. OTHER ADJUSTMENTS - DEBIT OR CREDIT $ 43,571 7. BALANCE END OF YEAR (1+5+6) $52,625,989 8. LESS RETIREMENT WORK IN PROGRESS $ 79,557 9. TOTAL ACCUMULATED DEPRECIATION $52,546,432”

“Client Note 3 - OTHER SELECTED DISCLOSURES FOR THE YEAR ENDED DECEMBER 31, 2016BECAUSE A UTILITY'S BOOKS AND RECORDS ARE NOT MAINTAINED ON A METHOD TO PROVIDE THE DISCLOSURES REQUESTED IN PART IX OF FORM 990, THE FOLLOWING DISCLOSURES ARE INCLUDED AS ADDITIONAL INFORMATION. AMOUNTS CAPITALIZED REPRESENT COSTS THAT WERE INCLUDED IN THE CONSTRUCTION OF ELECTRIC PLANT, RATHER THAN BEING EXPENSED DURING THE CURRENT PERIOD. SOME AMOUNTS MAY BE ESTIMATED.TOTAL SALARIES AND WAGES $7,672,816 CAPITALIZED PAYROLL INCLUDED ABOVE 1,461,814AMOUNTS LISTED BELOW INCLUDE BOTH EXPENSED AND CAPITALIZED AMOUNTS:PENSION CONTRIBUTIONS 2,196,871OTHER EMPLOYEE BENEFITS 1,792,525PAYROLL TAXES 657,896 LEGAL FEES 114,639ACCOUNTING FEES 29,430OTHER CONSULTANTS 283,070ADVERTISING AND PROMOTION 40,479”

“Current Year Net Operating Margins Allocated = $3265894”

“Decedent Retirement Discounts = $74570”

“Increase in Memberships and Donated Capital = $1081”

“Retirement of Patronage Capital = -$2698149”

“The amount included on this line, represents capital credits allocated to members for the current tax year (allocated after the end of the year the margins were earned). This amount also appears in form 990 part ix, line 4; form 990 page 12, line 9 to reconcile changes in net assets; and form 990, schedule d, section xii, line 4b as a reconciling item to arrive at expenses per audit. Current year margins $3,265,894. Capital credits retired during 2016 were $2,698,149.”