TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
OMB No. 1545-0047
2019
Open to Public
Inspection
Inspection
Name of the organization
NEW HAMPSHIRE ELECTRIC COOPERATIVE INC
Employer identification number
02-0172119
02-0172119
| Return Reference | Explanation |
|---|---|
| Form 990, Part VI, Section A, Line 6 | New Hampshire Electric Cooperative, Inc. ("the Cooperative") has members. Any person, firm, corporation or body politic may become a member in the Cooperative by: a) making an application for membership and service; b) agreeing to purchase goods or services from the Cooperative as specified in the bylaws; and c) agreeing to comply with and be bound by the Certificate of Organization of the Cooperative and the Code of Bylaws and any amendments thereto and such rules and regulations as may from time to time be adopted by the Board of Directors. No person, firm, corporation or body politic may own more than one (1) membership in the Cooperative. |
| Form 990, Part VI, Section A, Line 7a | The Cooperative's eleven (11) member Board of Directors is chosen by and from the membership. At each annual meeting to which ballots are returned, directors are elected for three-year staggered terms, with at least three to be elected each year. |
| Form 990, Part VI, Section A, Line 7b | The following items are subject to the affirmative vote of at least two-third (2/3) of the members voting by mail ballot: a) disposition of property that exceeds, in any one (1) year, ten percent (10%) of the value of the Cooperative's "Total Utility Plant" as stated in the most recent Annual Report of the Cooperative; b) disposition of any one item of a damaged property valued (at depreciated book) at more than $25,000; c) acquisition of generation, transmission and/or distribution facilities for which the purchase price exceeds twenty-five percent (25%) of the value of the Cooperative's "Total Utility Plant" as stated in the most recent Annual Report of the Cooperative; d) the sale of the Cooperative's entire system or the dissolution of the Cooperative; e) the alteration, amendment or repeal of the Cooperative's Code of Bylaws; and f) the amendment of the Certificate of Organization. |
| Form 990, Part VI, Section B, Line 11b | The Cooperative's Form 990 is reviewed by the Audit Committee with a recommendation to the full governing body. |
| Form 990, Part VI, Section B, Line 12c | Annual review of all policies by the Board of Directors and board committee; annual review of ethics policy which also includes conflict of interest are disclosed to Board of Directors. |
| Form 990, Part VI, Section B, Line 15 | The Cooperative has an independent compensation consultant provide a CEO compensation analysis to the Vice Chair of the Board of Directors for review with the Board of Directors. To ensure the wages of the CEO and non-union employees are within the salary ranges that are reasonable yet competitive in the marketplace, NHEC engages an outside consultant who specializes in compensation and is highly knowledgeable about rural electric cooperatives. Every few years the consultant issues a report to the NHEC Board of Directors establishing a fair market value range for the CEO position based on operating criteria. This operating criteria includes number of members served, total utility plant and operating revenue. For non-union employees, the consultant has built a compensation model which includes salary grades and pay ranges. The salary grades are based on job descriptions which are evaluated on the factors of job knowledge, leadership, organizational effect, complexity, and communication. The internal grade values are merged with external salary survey information (reflecting comparable pay for similar positions in comparable organizations). This modeling and optimization of internal equity and external market data is the basis of the established NHEC pay ranges. |
| Form 990, Part VI, Section C, Line 19 | Fully audited financials, current 990 filing, all policies and policy on ethics & conflict of interest are posted on NHEC's website. |
| Form 990, Part IX, Line 4 | The Cooperative's tax exempt purpose is to provide electricity to its members and to do so, on a cooperative basis. Tax law defines "Operating on a cooperative basis" as subordination of capital, democratic control, and operation at cost. The Cooperative operates at cost through the allocation of true patronage dividends (also referred to as allocations of patronage capital) to its members. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transactions done with or for members, and (3) in a fair and equitable basis on the basis of patronage (i.e. purchases). Additionally, the allocation of patronage dividends should be made within a reasonable time period after the close of the Cooperative's year-end of December 31. The amount reported on this line represents the amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of electricity from the Cooperative for the 2019 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of electric energy to the members and are done pursuant to the obligation that existed in the bylaws prior to the Cooperative providing electricity to the members. Therefore, these amounts meet the definition of the term "Patronage Dividends Paid". Patronage dividends allocated for 2019 are reported on line 4 in the amount of $7,045,650. There were no patronage dividends physically paid in cash during 2019, and no retirement of prior year's allocation were paid. Please note, however, that because patronage dividends is the process by which the Cooperative operates at cost with its members and thereby a key component to accomplishing its exempt purpose, the Cooperative has reported in line 4 the amount of its 2019 margin that has been or is to be allocated to the members subsequent to year-end. Such amount is an expense for Form 990 reporting and is not an expense for financial statement prepared in accordance with Generally Accepted Accounting Principles. As a result, the difference between the Cooperative's GAAP basis financial statement and the revenue less expenses reported on Part I, line 19 is the amount of patronage dividends reported as benefits paid to members. |
| Form 990, Part X, Line 10a | Land, Building and Equipment Section 1.263(a)-3(n) election: New Hampshire Electric Cooperative, Inc. 579 Tenney Mountain Highway Plymouth, NH 03264-3147 EIN 02-0172119 New Hampshire Electric Cooperative, Inc. is electing to capitalize repair and maintenance cost under Regulation Section 1.263(a)-3(n) |
| Form 990, Part XI, Line 9 | The amount reported on this line represents the amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of electricity from the Cooperative for the 2019 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of electric energy to the members and are done pursuant to the obligation that existed in the bylaws prior to the Cooperative providing electricity to the members. Therefore, these amounts meet the definition of the term "Patronage Dividends Paid". |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2019
Additional Data
| Software ID: | 19009572 |
| Software Version: | v1.00 |