April 28, 2020 Board Book · A motion was made by Arleen Boyd and seconded by Ralph Lewis to accept the March 31, 2020 agenda as presented. Motion carried. Voting was unanimous. 5.Approve

BEC BOARD OF TRUSTEES

Julie Lindgren, President District 3—Roberts, Bearcreek [email protected] 406-671-1086

Bill Pascoe, Vice President District 6—Nye [email protected] 406-494-2075

Arleen Boyd, Secretary/Treasurer District 5—Fishtail [email protected] 406-328-6645

Dan Dutton District 1—Rockvale, MT, Clark, WY [email protected] 406-425-0897

Roxie Melton District 2—Boyd, Joliet [email protected] 406-426-0135

Richard Nolan District 4—Red Lodge [email protected] 406-425-2269

Ralph Lewis District 7—Columbus, Rapelje, Reed Point [email protected] 406-321-1768______________________________________

Kevin P. Owens, PE General Manager PO Box 1110 1306 Broadway Ave N Red Lodge, MT 59068-1110 [email protected]

Beartooth Electric Cooperative, Inc.

April 28, 2020Board Book

BEC Board Book April 28, 2020 | Page 1

Beartooth Electric Cooperative, Inc. Regular Board Meeting

Tuesday, April 28, 2020 | Noon ZOOM Meeting ID 989 1558 9589

Agenda

• Call Meeting to Order & Roll Call

• Pledge

• Visitor Comments

• Approve Agenda

• Approve Minutes

• March 31, 2020 Board Meeting

• Committee/Trustee/Attorney Reports• Finance Committee (Julie Lindgren)• Risk Management Committee (Arleen Boyd)• Bylaw Committee (Arleen Boyd)• Policy Committee (Roxie Melton)• Communication Committee (Richard Nolan)• Treasurer’s Report (Arleen Boyd)

CONSENT AGENDA (Items 7-9, shown in blue)

• Membership Connections and Cancellations, Capital Credit to Estates, Registers, Reports, andSummary of Disbursements

• Financials – Brad Prophet

• 2020—March Financial Statements• Summary of A/R; 2018 vs 2019• Payroll Protection Program• Governor Bullocks Directive


• Staff Reports• General Manager Report – Kevin Owens• Member Communication & Services Report – Kaaren Robbins• Line Superintendent Report – Eric Elton

• New Business

• Rate Design 30-Day Member Notice• Acceptance of 2019 USDA/RUS Financial and Operating Report (Form 7)• Board Resolution Authorizing the Assignment of the 2019 Operating Margins• Update Policy 637 PTO• Update Policy 638 Sick Leave• Update Policy 640 FMLA• Discussion Federal Care ACT

• Old Business

• BEC’s 82nd Annual Member Meeting Video Conference | Facebook LIVE- Rehearsal Thursday, April 30, 2020, 10:00 AM ZOOM- District 3 Trustee Applicants- Elections Committee

• Upcoming Meetings

• Rehearsal – Annual Meeting | April 30, 2020 | 10:00 AM ZOOM• BEC Annual Member Meeting | Historical Virtual Annual Member Meeting | May 2, 2020 |

8 AM Log in Opens | 9 AM Business Meeting• BEC Risk Management Committee Meeting | BEC Office | May 2020• BEC Regular Board Meeting | BEC Video Conference | June 30, 2020

• Executive Session

• Executive Action

• Adjourn


Beartooth Electric Cooperative Regular Board Meeting Tuesday, March 31, 2020 | Noon

Beartooth Electric Office Minutes

Beartooth Electric Cooperative will be referred to as BEC herein. The Glossary of Terms and Acronyms website link is http://www.BeartoothElectric.com/content/glossary.

1. Call to Order: Board President, Julie Lindgren, called the meetingto order at 12:00 p.m.

2. Pledge of Allegiance

Present via video conference: Presiding: Julie Lindgren, BillPascoe, Arleen Boyd, Daniel Dutton, Roxie Melton, Dick Nolan, andRalph Lewis

Staff:Kevin P. Owens, General ManagerEric Elton, Line SuperintendentBrad Prophet, AccountantKaaren Robbins, Member Communication & Services

Via telephone:Larry Martin, Legal Counsel

Visitors via video conference:Shar McComas, Bylaw Committee MemberFrank Willett, Finance & Risk Management Committee Member

3. Visitor CommentsShar McComas expressed much gratitude for the Proposed BylawAmendment presentation in this year’s vote-by-mail package.

4. Approve Agenda

MOTION A motion was made by Arleen Boyd and seconded by Ralph Lewis to accept the March 31, 2020 agenda as presented. Motion carried. Voting was unanimous.

5. Approve Minutes

MOTION A motion was made by Roxie Melton and seconded by Daniel Dutton to accept the minutes of the February 28, 2020, regular board meeting with edit. Motion carried. Voting was unanimous.


http://www.beartoothelectric.com/content/glossary

6. Committee/Trustee/Attorney Reports Finance Committee (Julie Lindgren & Arleen Boyd) Finance Committee Meeting, March 31, 2020

Attendees—Committee: Bill Pascoe, Frank Willett, Julie Lindgren, Jim Rodgers, Arleen Boyd. Board: Daniel Dutton, Richard Nolan, Ralph Lewis, Roxie Melton, Kevin Owens, BEC Counsel Larry Martin. Auditor Brian Van Steeland, Summers, McNea, and Company, PC, presented the 2019 audited financials. The committee approved for presentation to the board. MOTION A motion was made by Arleen Boyd and seconded by Roxie Melton to accept the 2019 audited financials as presented by Auditor, Brian Van Steeland, Summers, McNea, and Company, PC. Motion carried. Voting was unanimous.

Risk Management Committee (Arleen Boyd & Bill Pascoe) The Risk Management Committee did not meet in March and has scheduled a telephone meeting for April 2. The primary agenda item is a review of all Q&A documents and other communications issues relative to rate design member direct mail piece and presentation at the annual meeting. There are two questions for the board that require direction for our upcoming communications: 1. What dates are we going to communicate with the members in

the rate design brochure and annual meeting presentation? We will have a new bill statement showing the system charge as well as the break out of the transmission and energy charges in Fall 2020 (demand shown with no charge). Rates will change in April 2021.

2. What are we telling members regarding the system charge in

both the rate design brochure and annual meeting presentation? We have discussed both $1 and $2. We are not voting on the charge today. The board will vote on the considered rates 30-day member notice at the next meeting. However, what are we communicating now?

Board members stated by vote their preference for the system charge presentation in the direct mail piece to use $1 kW or $2 kW? Dan Dutton $2 kW, Ralph Lewis $2 kW, Dick Nolan $2 kW, Arleen Boyd voted against a $2 kW, Bill Pascoe – abstain, Julie Lindgren $2 kW, Roxie Melton $2 kW. The member message will incorporate the $2 kW system charge in the future communications. The next Risk Management Committee meeting is joint with the Communication Committee on Thursday, April 2, at 2:00 PM.


• Bylaw Committee (Arleen Boyd) The Bylaw Committee met on Monday, March 30, to develop the annual meeting presentation slides. Counsel Martin presented for discussion regarding the current COVID-19 statute regarding the six new leaves and reimbursement available for businesses employing over 50 employees. BEC is eligible to apply for an exemption, however, will abide by the provisions as presented. General Manager Owens stated that if we follow the statute, you are eligible for reimbursement. BEC has implemented the leave codes, posted the information, and are prepared for the policy adjustment for processing.

• Policy Committee (Roxie Melton) The Policy Committee will resume regular meetings following the Annual Meeting in May.

Communication Committee (Richard Nolan) Kaaren Robbins will provide a review during the Member

Communication and Services report. The next meeting is scheduled for Thursday, April 2, at 2:00 PM in conjunction with the Risk Management Committee.

• Treasurer’s Report (Arleen Boyd) Treasurer Boyd stated there was no Treasurer’s report for March

2020 due to the office quarantine. However, the audit provided useful, positive information about how BEC should and is handling financials. Treasurer Boyd recommended all trustees, as well as trustee candidates, read the opening pages of the Audit.

CONSENT AGENDA (Items 7-9, shown in blue)

7. Membership Connections and Cancellations, Capital Credit to Estates, Registers, Reports, and Summary of Disbursements

8. Financials—Brad Prophet

• Accountant Brad Prophet presented the February 2020 financials.

PG 15. Disconnect Non-Pay. General Manager Owens reviewed the delinquent process in place. Letters went to each delinquent account with a payment program to collect all past dues by October 1. Payment terms are full payment of the current bill and 1/6 of past due each month. He added, the Governor's recent


Statement was a unified agreement by all state cooperative’s to not conduct disconnects through April 10.

9. Staff Reports General Manager’s Report—Kevin Owens

• It has been an incredibly busy and stressful month, with several competing projects driving the workload. Staff is to be commended for their ability to adapt and be flexible in serving our members.

• I continued working with EES in conjunction with Bill Pascoe

and Kaaren Robbins on irrigation rate design analysis.

• Preparing for Annual Meeting and working closely with Kaaren Robbins, Bill Pascoe, and Arleen Boyd. Member letter and member Q&A are in progress to meet April 8 deadline.

• The office lobby was closed to the public on March 16 to reduce staff exposure to the COVID-19 virus. Line and engineering staff have made changes to their work practices to minimize contact with other employees and the public. Linemen are now traveling in separate vehicles to reduce exposure and abiding by the six-foot rule. Disinfectant and wipes have been installed in all BEC vehicles.

• All member services are now being conducted via phone and Web/SmartHub. Members are very understanding and being flexible with our new way of business.

• General Counsel is preparing temporary Sick Leave (PTO) and FMLA policies to be placed on employee Bulletin Boards so BEC will be in full compliance with newly passed federal legislation impacting employees during the COVID-19 pandemic.

• Board Meetings and the Annual Meeting have been changed to virtual meetings. Members will have numerous opportunities through different communication channels to participate in our meetings based on their tech-savvy personal skills. At the very least, members will have hard copy documents and phone access.

• General Counsel continues to work with the attorney representing the landowners of the East Columbus substation. We are getting very close to resolving a single issue at the moment.


• I had our first meeting with Morrison-Maierle and the Stillwater County Disaster Preparedness staff member to discuss our FEMA Pre-Disaster Grant application for the East Columbus substation.

• Bill Pascoe and I have been fully engaged in the NWE FERC Settlement discussions. The progress has been slow, but we are making good progress with NWE and the other Interveners.

• I worked closely with both CFC and CoBank in the last month to prepare loan refinancing options for BEC’s current loan portfolio. The virtual meeting was canceled the day before, pending the outcome of the NRECA effort to get the Administration to waive RUS penalties.

• BEC hosted a meeting at its offices on March 12 with representatives of NWE to discuss transmission reliability issues on the T-Line segment from Line Creek to Belfry. BEC presented a very clear message that the line needs immediate repair/reconstruction to improve service reliability to its members along the Beartooth Front. The risk of range fires due to the current state of disrepair of the transmission line to member’s property and the Custer Gallatin National Forest was a central point of the discussion. BEC requested a response to their requested needs by the end of the month.

Communication and Member Services Report—Kaaren Robbins

• April Rural Montana The April newsletter is planned to feature a Rate Design article, Linemen Appreciation, and Annual Meeting, supplemented with energy efficiency tips and other timely news. The content deadline is March 6.

• April Billing Insert

The April billing insert will feature the Annual Meeting, Website Know-How, and the April Calendar of events. The content deadline is March 20.

• March Billing Memo The trustee nomination deadline and Annual Meeting save the date.

• Member eNewsletter

- March 28/29

• Rate Design - Communications Plan Gantt Chart created and presented at the


January board meeting. This document will be edited as plans progress.

• Shares du Soleil

• The lobby monitor system is installed and operating. Thank you, Kevin, Eric, and Brad.

• Youth Programs - MECA Memorial Scholarship - Beartooth Electric Scholarship

o Candidate selection will occur at this month’s new business.

• NEW Billing Statement Development

- The new billing statement data flow from Aclara to NISC is completed.

- The new statement format, design, and programming can commence with the Rate Design direction upon board approval. Based on this timeline, the new statement launch is anticipated on the June statement (September billing).

• 2020 Annual Meeting - Date: May 2, 2020 - Location: ANIPRO Event Center - Sound: Stillwater Sound - Districts 1, 3, and 7 are up for election in 2020 - A near-complete Vote-by-Mail package is presented for

approval. The final will completed upon the close of Nominations on March 13.

Printing will commence the next week with mailing on April 3. - See Annual Meeting Calendar following report

• MECA

- Communication Committee The NEW Rural Montana magazine launched with the February

2020 edition. Beginning with the March issue, cooperative newsletters will be placed at the center of the magazine.

- Members Services Meeting February 24. An update will be provided at the board

meeting. • Electronic Forms Development

- A new, New Construction Application is in development as well as identifying other form needs.

• Facebook Content follows board meeting information, press releases, and RM.


• BEC Membership Application A new review is scheduled with the Policy Committee. Work will

be able to begin after the Annual Meeting and the approval/non-approval of updated and amended bylaws.

• BEC New Member Welcome (email & hard copy package)

Work in progress-awaiting membership application • Operation Round Up

Operation Round Up received $114.34 billed on 2/5/2020. 201 Accounts and 186 Customers.

• Residential Home Energy Assistance Program (formerly LISD/LIDD) - Total Energy Assistance (LISC/LID) Discount Accounts for

January 2020 billed 2/5/2020. WY: $85.33 and MT: $436.21 = Total $521.54. The total number of accounts is 46.

NISC Enterprise Systems Update New system capabilities are being implemented into processes as available. Installed Systems • ABS • Customer Information System (CIS) • CashRegister • Remitlus • SmartHub • Engineering & Operations (E&O) • Automated Meter Information (AMI) • Work Management Solutions (WMS) • Docuvault • Meter Data Management System (MDMS) Work in Progress • Mapwise-Mapping

- New BETA edition released. • Mapwise-Staking

- New BETA edition released. • EZRI GIS

- Installed with MapWise • OMS

- Kickoff was conducted in December. CIS/Mapping systems being set for OMS.

- Gus Behrent and Stephanie Fletcher are scheduled to attend on-site training at the NISC Missouri training center in the second week of February.

- Gus Behrent and Stephanie Fletcher attended NISC on-site training on February 11-13.

- Staff training is scheduled for the week of March 9.


• Prepay - Implementation 2020

OTHER • Billing Statement Programming

- The next steps will progress upon rate design board approval. Line Superintendent Report—Eric Elton CONSTRUCTION, OPERATIONS & MAINTENANCE

• The Red Lodge crew has been changing meters on the NYE substation. (To date they have changed 150 of the 550 left).

• We have had several broken poles from wind, snow, and car hits this month.

• Columbus Crew is still working on mapping and also helping with the meter changes at NYE.

• All the snow has become a challenge to work in the Red Lodge area. We have been using the tracked Ranger and the four-wheeler for outages and just getting around.

• Marty is starting to see some interest in new construction coming in the door.

• We installed two new services in January.

• There was a total of 9 outages system-wide in January.

• We had 264 individual consumers out of power at some point in January, having a duration of 1620 minutes.

EDUCATION, SAFETY & LOSS

• The next MECA safety meeting is March 17.

• No lost time accidents to report for January. TRUCK, TOOLS & EQUIPMENT

• The new cab and chassis came in for the replacement of the smaller bucket truck in Columbus. (We should have it in service in a month).

• Altec completed all the yearly DOT Inspections and dielectrics on the trucks and trailers. (No major issues to report).


10. New Business • 2019 BEC Financial Audit Acceptance

- The business was conducted under the Finance Committee Report.

• Risk Management April 2020 Member Mailer - The Risk Management/Annual Meeting mailer, containing a cover

letter, A Closer Look at Rate Design brochure, Annual Meeting participation guidelines and a copy of the hard copy presentation, are set to drop on April 17.

• 2020 Historical Virtual Annual Member Meeting - Presentation: Final edits are required no later than April 7.

This presentation will be included in the Rate Design direct mail package.

- District 3 Trustee: currently there is one candidate. Per the Bylaws, the Board will have 120 days after the Annual Meeting date, May 2, 2020.

- President Lindgren stated her support of Dan Dutton as President of the Board for the 20/21 year.

• COVID-19 BEC Member Relief Fund-Kevin Owens - General Manager Kevin Owens presented the idea to create a

COVID-19 Fund to assist affected BEC members with bill payment during this time. He requested the BEC board donate $2,500 to the fund. In addition, Owens has asked the Operation Round Up board to also donate $2,500.

A vote by the board was called by President Lindgren to donate $2,500 funding to match Operation Round Up’s $2,500 to form the BEC COVID-19 relief fund to assist affected BEC members with bill payments during these uncertain times. Motion carried. Voting was unanimous.

• No Person Left Behind (NPLB) General Deer & Elk Tag Donation

Request - In the past, the Board has stated their interest in

supporting the NPLB program. Now is the time to purchase your hunting licenses and turn them into Markus Urbanik for this year’s NPLB hunt season.

11. Old Business

• There is no Old Business.

12. Upcoming Meetings • BEC Risk Management Committee Meeting | BEC Office | April 2,

2020 | 2:00 PM Zoom


• BEC Regular Board Meeting | BEC Video Conference | April 28, 2020

• BEC Annual Member Meeting | Historical Virtual Annual Member Meeting | May 2, 2020 | 8 AM Log in Opens | 9 AM Business Meeting

13. Executive Session

• General Counsel, Laurence Martin

14. Executive Action

• General Counsel, Laurence Martin presented information. No action required.

15. Adjourn

` President Julie Lindgren adjourned the March 31, 2020, BEC Board of Trustees meeting at 2:44 p.m.

ATTEST: __________________________________ Arleen Boyd, Secretary


Risk Management Board Report March through April 2, 2020 Risk Management/Communications Committees Meeting April 2, 2020 – The Committees Convened at 2:00 P.M. Present in person, on the phone, and with input prior to meeting: Risk Management Committee, Communications Committee, BEC Board Trustees, Kaaren Robbins, Kevin Owens, Larry Martin. The combined committees focused on one agenda item with two objectives: to review the rate design mailer for message clarity and positioning and check the content of the Q&A section for accuracy. Participants were positive about the draft. They reviewed the approach and content of the mailer providing input that has been implemented by Kaaren Robbins effectively. One suggested addition featured the placement of answers to the what, why, impact questions as leads to the comprehensive information that follows. The most recent previous version of member questions reviewed by the committee reported the same primary questions. The committees and board members present agreed that comments and suggestions that surfaced during walk-through of the brochure were positive and the long piece was engaging and informative. The material clearly explains the need for rate design change and how the change the board is likely to recommend will work. The group left the meeting with recommendations for changes that have been entered in the brochure and reviewed by all parties including the board. Staff is positive and feedback seems to be that the communications piece makes complicated information understandable. Risk Management Committee -- April included multiple meetings of committee co-chairs and general manager with input from EES to examine assumptions, verify numbers, and review strategy. Bill Pascoe organized meetings and translated results into material for reports to the board and members. Committee members contributed questions and comments and their input will continue as the next steps for board approval and notice to members roll out. Next Steps -- The May risk management meeting will be scheduled for the week of May 11. The agenda will include rate design notice to members and next issues for committee review and analysis. The committee has noted the need to identify issues for in-depth examination in 2020 and 2021 after the rate design work rolls out with implementation and ongoing rate design review. Issues to consider and begin to prioritize at the May risk management meeting include identified requirements to examine: equity management, irrigation rates, budget and planning, financial forecast development, annual power supply reviews, COSA/rate design review and impact analysis, energy efficiency/energy services, and system resilience. The committee may identify additional issues for consideration. We have material on some of the items and are identifying more information that we expect to distribute for review over time leading up to scheduled analyses. At the May meeting we may do some scheduling, understanding that analyses and discussions may overlap if appropriate. Not every item has a deliverable with a deadline and items may be at various stages of consideration simultaneously.


Board Bylaw Committee Report – April, 2020 The committee reviewed the slides for the annual meeting presentation and has prepared for answering questions at the meeting. Arleen introduces, Mike Specht outlines what is in the bylaw changes, Larry Martin and Shalene McComas are available to answer questions. We have received calls – mostly asking if there is something that should get a hard look. Other comments: number of changes is daunting, good work on everything examined, is there anything with a hidden agenda from the co-op? A few people have expressed appreciation for the fact that BEC members have an opportunity and encouragement to read all the bylaws. Some answers that seem to resonate to the number of changes:

• Changes many relate to each other, so one requires another. • The communication with members requirement is repeated in several articles • Some clarity changes are necessary where requirements could easily be interpreted

differently by different readers or not in the way the bylaws intend. Arleen Boyd


ALTISOURCE SINGLE FAMILY INC BRAD & RAVIPAN NORMANBRIAN BLEAU ESTHER & TED PAYNESCOTT BRESTER CHRISTINE RAYMONDJAMES & DARLENE CASH KRISTEN ROBERTS & RAVEN MARTINPHILIP CHRISTOPHEL MIKE & ASHLEE RUPPRECHTCAROLINE DAVIS JEFF & CARLY SHIPPCINDY GROVER JACLYN THOMASJOSH & KARI HARRIS ALAN & SUSAN TOLLACKSONVICKI HATCH CORDELL & AMBER VAN VALKENBURGHBJARNE & USA IVERSON PAUL YENNY

DEAN BRUSCHWEIN CHAD NICOLCAPRA GROUP JESSE & BARBARA RAMONDINOHALLE CHRISTOPHEL DAVID ROWLANDJOHN DAVIS RUTH URBANMA DEATLEY CONSTRUCTION GREG & JULIE VANDEWARKMIKOL DEGELE HOLLY WALNOFERROBERT & CHERYL EVANS THOMAS WILLIAMSJOE & LIZ FOWLER/JOHN & JENNETA CONOVER ANDY WOLFEKELSEY LANG YELLOWSTONE BANK JIM HARRISROBERT & LUANA MOSS

MARY RINGER $2,698.03 $1,608.94 $1,089.09

APRIL 28, 2020MARCH 2020

MEMBERSHIP CONNECTIONS

MEMBERSHIP CANCELLATIONS

CAPITAL CREDITS Capital Credits Allocated

Discounted Refund to Member Retained by Co-Op

JOHN DAVIS $1,733.67 $758.45 $975.22TOTALS $4,431.70 $2,367.39 $2,064.31


OPEN BALANCE REGISTER04/21/2020 10:08:56 am Page: 1

Revision: 18847Beartooth Electric Co-Op.,Inc.

TotalAR Amt

CurrentAR Amt 30 Day 60 Day 90 Day

TotalBill Amt

TotalBill Past

CurrentBill Amt

566.87 15.03 65.72 254.60 231.52

Budget Amt Due

Total AR Amt

Current

90 Day

60 Day

30 Day

0.00

0.00

0.00

Tot ActiveDollars

ActiveAccts

0

0

0

0.00

0.00

0.00

0

0

0

Tot InactiveDollars

InactiveAccts

0.00

566.87

15.03

231.52

254.60

65.72

0

10

7

3

3

1

Grand Totals:

ActiveCredit $

ActiveCredit Accts

0.00

0.00

0.00

0.00

0.00

0.00

0

0

0

0

0

0

InactiveCredit $

InactiveCredit Accts

0.00

-135.85

-135.85

0.00

0.00

0.00

0

1

1

0

0

0

ActiveDebit $

ActiveDebit Accts

0.00

0.00

0.00

0.00

0.00

0.00

0

0

0

0

0

InactiveDebit $

InactiveDebit Accts

0.00

702.72

150.88

231.52

254.60

65.72

0

9

6

3

3

1

GRAND TOTAL SUMMARY INFORMATION

551.84566.87 15.03

0

/pro/rpttemplate/cis/2.47.1/OPEN_BALANCE.xml.rpt sfletcher28019

Accumulated provisions set aside for Uncollectable Write-Off accounts as of March 31, 2020 is $61,601.89.Capital Credits to be applied with General Retirements, if not paid.


DATE CITY DISCONNECTED RECONNECTED

March 2019 NO DISCONNECTS

April 2019 ROBERTS April 25, 2019 June 7, 2019

May 2019 GREYCLIFF May 28, 2019 May 28, 2019FISHTAIL May 28, 2019 May 28, 2019JOLIET May 28, 2019 May 28, 2019RAPELJE May 28, 2019 August 22, 2019RAPELJE May 28, 2019 August 22, 2019

June 2019 FISHTAIL June 24, 2019 June 24, 2019RED LODGE June 24, 2019 June 25, 2019ROBERTS June 24, 2019 June 24, 2019ABSAROKEE June 24, 2019 June 24, 2019BELFRY June 24, 2019 June 24, 2019

July 2019 RED LODGE July 30, 2019 August 5, 2019ROBERTS July 30, 2019 July 30, 2019POWELL July 30, 2019 August 12, 2019

August 2019 BELFRY August 22, 2019 August 23, 2019BRIDGER August 22, 2019 August 22, 2019GREYCLIFF August 22, 2019 still disconnected

JOLIET August 22, 2019 still disconnected

NYE August 22, 2019 August 26, 2019POWELL August 22, 2019 August 22, 2019ROBERTS August 22, 2019 August 22, 2019

September 2019 FISHTAIL Sept. 19, 2019 Sept. 19, 2019ROSCOE Sept. 19, 2019 Sept. 19, 2019ROSCOE Sept. 19, 2019 Sept. 19, 2019COLUMBUS Sept. 19, 2019 Sept. 24, 2019ROBERTS Sept. 19, 2019 Sept. 27, 2019BOYD Sept. 19, 2019 Sept. 24, 2019

October 2019 NO DISCONNECTS

November 2019 NO DISCONNECTS

December 2019 NO DISCONNECTS

January 2020 NO DISCONNECTS

February 2020 NO DISCONNECTS

March 2020 NO DISCONNECTS

Notices went out with Past Due Balances due 3/5/2020.Delinquent accounts were called 3/16/2020.

DISCONNECT NON PAY


According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMBcontrol number. The valid OMB control number for this information collection is 0572-0032. The time required to complete this information collection is estimated to average 15 hours perresponse, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

BORROWER DESIGNATIONMT0019

PERIOD ENDED FINANCIAL AND OPERATING REPORT March 31, 2020

BORROWER NAMEINSTRUCTIONS-See help in the online application BEARTOOTH ELEC COOP INCThis information is analyzed and used to determine the submitter's financial situation and feasibility for loans and guarantees. You are required by contract

and applicable regulations to provide the information. The information is subject to the Freedom of Information Act (5 U.S.C. 552)

CERTIFICATION

We recognize that statements contained herein concern a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious or fraudulent statement may render the maker subject to prosecution under Title 18, United States Code Section 1001.

___X___ All of the obligations under the RUS loan documents have been fulfilled in all material respects.

_________ There has been a default in the fulfillment of the obligations under the RUS loan documents. Said default(s) is/arespecifically described in Part D of this report.

4/21/2020 DATE4/21/2020 DATE

YEAR-TO-DATEITEM LAST YEAR THIS YEAR BUDGET THIS MONTH

(a) (b) (c) (d) 1. Operating Revenue and Patronage Capital................................... 2,525,099 2,388,115 2,440,193 778,895 2. Power Production Expense............................................................... 0 0 0 0 3. Cost of Purchased Power............................................................... 979,041 950,645 973,810 302,976 4. Transmission Expense..................................................................... 1,142 1,100 1,251 367 5. Regional Marketing Expense………………………………………….. 0 0 0 0 6. Distribution Expense-Operation...................................................... 251,779 338,718 270,528 113,550 7. Distribution Expense-Maintenance................................................. 83,008 93,307 90,271 26,895 8. Consumer Accounts Expense.......................................................... 85,784 74,837 76,498 24,844 9. Customer Service and Informational Expense............................... 33,607 30,433 34,906 9,67110. Sales Expense................................................................................. 1,910 2,606 1,858 70211. Administrative and General Expense........................................... 314,140 305,091 312,755 105,61012. Total Operation and Maintenance Expense (2 thru 11)................. 1,750,411 1,796,737 1,761,877 584,61513. Depreciation and Amortization Expense........................................ 266,697 279,109 275,959 92,99114. Tax Expense - Property and Gross Receipts.................................. 0 0 0 015. Tax Expense - Other......................................................................... 482 520 702 11216. Interest on Long-Term Debt............................................................ 152,758 139,600 141,387 46,78117. Interest Charged to Construction - Credit...................................... 0 0 0 018. Interest Expense - Other.................................................................... 383 355 300 11719. Other Deductions............................................................................. 450 450 450 15020. Total Cost of Electric Service (12 thru 19).................................... 2,171,181 2,216,771 2,180,675 724,76621. Patronage Capital and Operating Margins (1 minus 20)............... 353,918 171,344 259,518 54,12922. Non Operating Margins - Interest................................................... 32,752 22,084 21,637 7,51223. Allowance for Funds Used During Construction.............................. 0 0 0 024. Income (Loss) from Equity Investments........................................ 0 0 0 025. Non Operating Margins - Other................................................... 906 5,252 1,061 5,00026. Generation and Transmission Capital Credits............................. 0 0 0 027. Other Capital Credits and Patronage Dividends............................. 12,819 37,991 13,000 28,97428. Extraordinary Items.......................................................................... 0 0 0 029. Patronage Capital or Margins (21 thru 28)..................................... 400,395 236,671 295,216 95,615

Rev 2010

UNITED STATES DEPARTMENT OF AGRICULTURERURAL UTILITIES SERVICE

ELECTRIC DISTRIBUTION

We hereby certify that the entries in this report are in accordance with the accounts and other records of the

system and reflect the status of the system to the best of our knowledge and belief.

ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, RUS, WAS IN FORCE DURING THE REPORTING PERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES.

DURING THE PERIOD COVERED BY THIS REPORT PURSUANT TO PART 1718 OF 7 CFR CHAPTER XVII

(check one of the following)

DRAFT

BRAD PROPHET, ACCOUNTANTDRAFT

KEVIN P. OWENS, GENERAL MANAGER

PART A. STATEMENT OF OPERATIONS

RUS Financial and Operating Report Electric Distribution


USDA - RUS BORROWER DESIGNATIONMT0019

FINANCIAL AND OPERATING REPORT PERIOD ENDED

PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT YEAR-TO-DATE YEAR-TO-DATE

ITEM LAST YEAR THIS YEAR ITEM LAST YEAR THIS YEAR(a) (b) (a) (b)

1. New Services Connected 7 18 5. Miles Transmission 15.21 15.216. Miles Distribution-

2. Services Retired 11 21 Overhead 1,307.01 1,307.007. Miles Distribution-

3. Total Services in Place 6,663 6,706 Underground 501.72 500.764. Idle Services 8.Total Miles Energized (Exclude Seasonal) 445 414 (5 + 6 + 7) 1,823.94 1,822.97

PART C. BALANCE SHEET ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS 1. Total Utility Plant in Service.................................................33,969,025 30. Memberships................................................................... 0 2. Construction Work in Progress........................................... 28,350 31. Patronage Capital............................................................. 7,766,476 3. Total Utility Plant (1 + 2).......................................................33,997,375 32. Operating Margins - Prior Years...................................... 286,426 4. Accum. Provision for Depreciation and Amort.................. 16,711,599 33. Operating Margins - Current Year..................................... 171,344 5. Net Utility Plant (3 - 4)...........................................................17,285,776 34. Non-Operating Margins................................................... 657,296 6. Non-Utility Property - Net.................................................... 0 35. Other Margins and Equities............................................. 234,794 7. Investments In Subsidiary Companies............................... 0 36. Total Margins and Equities (30 thru 35)............................. 9,116,336 8. Invest. In Assoc. Org. - Patronage Capital....................... 448,016 37. Long-Term Debt - RUS (Net).......................................... 392,725 9. Invest. In Assoc. Org. - Other - General Funds................. 0 38. Long-Term Debt - FFB - RUS Guaranteed......................... 6,288,32010. Invest. In Assoc. Org. - Other -Nongeneral Funds.......... 283,452 39. Long-Term Debt - Other - RUS Guaranteed....................... 011. Investments In Economic Development Projects............ 0 40. Long-Term Debt - Other (Net).............................................5,094,72912. Other Investments.............................................................. 0 41. Long-Term Debt - RUS - Econ. Devel. (Net)........................ 013. Special Funds.................................................................... 0 42. Payments-Unapplied 1,424,58914. Total Other Property and Investments (6 thru 13)........ 731,468 43. Total Long-Term Debt (37 thru 41-42)...................................10,351,18515. Cash - General Funds....................................................... 378,623 44. Obligations Under Capital Leases-Noncurrent.................................... 016. Cash - Construction Fund - Trustee.................................. 1 45. Accumulated Operating Provisions................................... 017. Special Deposits................................................................ 0 and Asset Retirement Obligations18. Temporary Investments.................................................... 362,391 46. Total Other Noncurrent Liabilities (44+45)......................... 019. Notes Receivable (Net)...................................................... 0 47. Notes Payable.................................................................. 020. Accounts Receivable - Sales of Energy (Net).................. 864,639 48. Accounts Payable........................................................... 374,24021. Accounts Receivable - Other (Net)................................... (1,065) 49. Consumers Deposits........................................................ 38,37922. Renewable Energy Credits.......................................... 0 50. Current Maturities Long-Term Debt................................... 023. Materials and Supplies - Electric and Other.................... 307,071 51. Current Maturities Long-Term Debt-Ec.Dev...................... 024. Prepayments....................................................................... 126,370 52. Current Maturities Capital Leases..................................... 025. Other Current and Accrued Assets................................... 5,668 53. Other Current and Accrued Liabilities................................ 664,20626. Total Current and Accrued Assets (15 thru 25)............... 2,043,698 54. Total Current and Accrued Liabilities (47 thru 53)................1,076,82527. Regulatory Assets.............................................................. 387,890 55. Regulatory Liabilities...................................................... 028. Other Deferred Debits......................................................... 116,598 56. Other Deferred Credits................................................... 21,08429. Total Assets and Other Debits (5+14+26 thru 28)............20,565,430 57. Total Liabilities and Other Credits

(36+43+46+54 thru 56).......................................................20,565,430 PART D. NOTES TO FINANCIAL STATEMENTSTHIS SPACE IS PROVIDED FOR IMPORTANT DISCLOSURE NOTES TO THE FINANCIAL STATEMENT CONTAINED IN THIS REPORT.

(A SEPARATE SHEET MAY BE USED IF ADDITIONAL SPACE IS NEEDED.)

RUS Financial and Operating Report Electric Distribution Rev 2010

ELECTRIC DISTRIBUTION March 31, 2020

CFC Line of Credit Balance as of 3/31/2020 = $0CoBank Line of Credit Balance as of 3/31/2020 = $0Contributions-In-Aid of Construction received through 3/31/20 totaled approximately $18,888,607


BORROWER DESIGNATION BORROWER DESIGNATIONMT019

PERIOD ENDED RUS USE ONLY PERIOD ENDED RUS USE ONLYINSTRUCTIONS - See RUS Bulletin 1717B-2 INSTRUCTIONS - See RUS Bulletin 1717B-2

CONSUMERCLASSIFICATION SALES JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL

ANDREVENUE DATA (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (Contains a thru l)

a. No.Consumers Served 5,666 5,663 5,685 0 0 0 a.#Consumers 0 0 0 0 0 0 1. Residential Sales b. kWh Sold 5,885,882 5,538,805 5,274,821 0 0 0 1. Residential Salesb. kWh Sold 0 0 0 0 0 0 16,699,508

(excluding seasonal) c. Revenue 711,157$ 680,880$ 676,014$ -$ -$ -$ (excluding seasonal) c. Revenue -$ -$ -$ -$ -$ -$ 2,068,051$ a. No.Consumers Served a.#Consumers

2. Residential Sales - b. kWh Sold 2. Residential Sales -b. kWh Sold 0 Seasonal c. Revenue Seasonal c. Revenue -$

a. No.Consumers Served 0 0 0 0 0 0 a.#Consumers 0 0 0 0 0 0 3. Irrigation Sales b. kWh Sold 0 0 0 0 0 0 3. Irrigation Salesb. kWh Sold 0 0 0 0 0 0 0

c. Revenue -$ -$ -$ -$ -$ -$ c. Revenue -$ -$ -$ -$ -$ -$ -$ a. No.Consumers Served 479 482 483 0 0 0 a.#Consumers 0 0 0 0 0 0

4. Comm. And Ind. b. kWh Sold 946,791 894,994 856,734 0 0 0 4. Comm. And Ind.b. kWh Sold 0 0 0 0 0 0 2,698,519 1000 kVa or Less c. Revenue 97,460$ 93,513$ 93,524$ -$ -$ -$ 1000 kVa or Lessc. Revenue -$ -$ -$ -$ -$ -$ 284,497$

a. No.Consumers Served 1 1 1 0 0 0 a.#Consumers 0 0 0 0 0 0 5. Comm. And Ind. b. kWh Sold 183,600 113,100 102,000 0 0 0 5. Comm. And Ind.b. kWh Sold 0 0 0 0 0 0 398,700 Over 10000 kVa c. Revenue 13,801$ 9,778$ 9,286$ -$ -$ -$ Over 10000 kVac. Revenue -$ -$ -$ -$ -$ -$ 32,865$

a. No.Consumers Served a.#Consumers

6. Public Street and b. kWh Sold 6. Public Street and b. kWh Sold 0 Highway Lighting c. Revenue Highway Lightingc. Revenue -$


7. Other Sales to b. kWh Sold 7. Other Sales tob. kWh Sold 0 Public Auth. c. Revenue Public Auth. c. Revenue -$


8. Sales for Resale - b. kWh Sold 8. Sales for Resale -b. kWh Sold 0 RUS Borrowers c. Revenue RUS Borrowersc. Revenue -$


9. Sales for Resale - b. kWh Sold 9. Sales for Resale - b. kWh Sold 0 Others c. Revenue Others c. Revenue -$

10. TOTAL No. Consumers (lines 1a - 9a) 6,146 6,146 6,169 0 0 0 10. TOTAL No. Consumers (lines 1a - 9a) 0 0 0 0 0 0

11. TOTAL kWh Sold (lines 1b - 9b) 7,016,273 6,546,899 6,233,555 0 0 0 11. TOTAL kWh Sold (lines 1b - 9b) 0 0 0 0 0 0 19,796,727 12. TOTAL Revenue Received From Sales of 12. TOTAL Revenue Received From Sales of

Electric Energy (lines 1c - 9c) 822,418$ 784,171$ 778,824$ -$ -$ -$ Electric Energy (lines 1c - 9c) -$ -$ -$ -$ -$ -$ 2,385,413$

13. Transmission Revenue 13. Transmission Revenue -$

14. Other Electric Revenue 14. Other Electric Revenue -$

15. kWh - Own Use 46,808 52,133 38,057 0 0 0 15. kWh - Own Use 0 0 0 0 0 0 136,998

16. TOTAL kWh Purchased 7,665,124 7,300,974 6,833,144 0 0 0 16. TOTAL kWh Purchased 0 0 0 0 0 0 21,799,242

17. TOTAL kWh Generated 0 0 0 0 0 0 17. TOTAL kWh Generated 0 0 0 0 0 0 0

18. Cost of Purchases and Generation 332,263$ 315,407$ 302,976$ -$ -$ -$ 18. Cost of Purchases and Generation -$ -$ -$ -$ -$ -$ 950,645$

19. Interchange - kWh - Net 0 0 0 0 0 0 19. Interchange - kWh - Net 0 0 0 0 0 0 0 20. Peak - Sum All kWh Input (Metered) 20. Peak - Sum All kWh Input (Metered) o Coincident x Non-Coincident 15,827 15,395 13,453 0 0 0 o Coincident x Non-Coincident 0 0 0 0 0 0 15,827

RUS Form 7 (Rev. 6-94)

Line Losses 7.85% 9.61% 8.22% 8.56%Line Losses plus Transmission Losses 11.08% 12.78% 11.43% 11.76%

Red Lodge Heating Degree Days 1,118 1,168 1,054 3,340 Current Month YTD 1,118 2,286 3,340 3,340 3,340 3,340 3,340 3,340 3,340 3,340 3,340 3,340 +/- Percentage vs. 2019 History Current Month YTD -1% -11% -8% -22% -32% -35% -36% -37% -41% -49% -56% -62%+/- Percentage vs. 15 Yr. Ave. Current Month YTD -5% 2% 9% -10% -19% -21% -22% -23% -26% -35% -45% -54%Red Lodge Heating Degree Days History (2019) 1,132 1,437 1,067 625 660 240 79 75 329 944 1,032 1,091 8,711 Current Month YTD 2019 History 1,132 2,569 3,636 4,261 4,921 5,161 5,240 5,315 5,644 6,588 7,620 8,711 Red Lodge Heating Degree Days History (15 Yr. Ave.) 1,179 1,067 830 639 407 131 17 44 214 601 897 1,238 7,264 Current Month YTD 15 Yr. Ave. 1,179 2,246 3,076 3,715 4,122 4,252 4,270 4,313 4,527 5,129 6,026 7,264

December 31, 2020 PART R. POWER REQUIREMENTS DATA BASE

LINEITEM

NUMBER

USDA - RUS USDA - RUSFINANCIAL AND STATISTICAL REPORT MT019 FINANCIAL AND STATISTICAL REPORT

December 31, 2020


BEARTOOTH ELECTRIC COOPERATIVE, INC.

COMPARATIVE BALANCE SHEET

March 31, 2020

CURRENT YEAR LAST YEAR DIFFERENCE

ASSETS AND OTHER DEBITS

-----------------------

TOTAL UTILITY PLANT IN SERVICE $33,969,024.76 $33,211,577.46 $757,447.30

CONSTRUCTION WORK IN PROGRESS 28,350.24 410,302.87 -381,952.63

TOTAL UTILITY PLANT $33,997,375.00 $33,621,880.33 $375,494.67

-------------------- -------------------- --------------------

ACCUMULATED PROVISION FOR DEPRECIATION -$16,711,599.25 -$16,206,080.07 -$505,519.18

-------------------- -------------------- --------------------

NET UTILITY PLANT $17,285,775.75 $17,415,800.26 -$130,024.51

-------------------- -------------------- --------------------

INVEST. IN ASSOC. ORG.-PATRONAGE CAPITAL $448,016.10 $416,296.11 $31,719.99

INVEST. IN ASSOC. ORG. NON-GENERAL FUNDS 283,451.49 285,417.76 -1,966.27

-------------------- -------------------- --------------------

TOTAL OTHER PROPERTY & INVESTMENTS $731,467.59 $701,713.87 $29,753.72

-------------------- -------------------- --------------------

CASH - GENERAL FUNDS $378,622.52 $275,309.50 $103,313.02

CASH - CONSTRUCTION FUND - TRUSTEE 1.00 1.00 0.00

TEMPORARY INVESTMENTS 362,391.31 1,425,275.52 -1,062,884.21

-------------------- -------------------- --------------------

TOTAL CASH ON HAND $741,014.83 $1,700,586.02 -$959,571.19

NOTES RECEIVABLE $0.00 $0.00 $0.00

ACCOUNTS RECEIVABLE SALES OF ENERGY (NET 864,639.24 916,578.19 -51,938.95

ACCOUNTS RECEIVABLE - OTHER (NET) -1,064.92 14,540.47 -15,605.39

MATERIAL AND SUPPLIES - ELECTRIC & OTHER 307,070.98 260,057.90 47,013.08

PREPAYMENTS 126,370.14 128,569.91 -2,199.77

OTHER CURRRENT AND ACCRUED ASSETS 5,668.40 5,645.14 23.26

-------------------- -------------------- --------------------

TOTAL CURRENT AND ACCRUED ASSETS $2,043,698.67 $3,025,977.63 -$982,278.96

-------------------- -------------------- --------------------

OTHER DEFERRED DEBITS $504,488.16 $655,702.09 -$151,213.93

-------------------- -------------------- --------------------

TOTAL ASSETS AND OTHER DEBITS $20,565,430.17 $21,799,193.85 -$1,233,763.68

==================== ==================== ====================

LIABILITIES AND OTHER CREDITS

-----------------------------

MEMBERSHIPS $0.00 $0.00 $0.00

PATRONAGE CAPITAL 7,766,476.21 8,225,138.43 -458,662.22

OPERATING MARGINS- PRIOR YEAR 286,426.64 0.00 286,426.64

OPERATING MARGINS- CURRENT YEAR 171,343.89 353,917.90 -182,574.01

NON-OPERATING MARGINS 657,296.39 501,608.42 155,687.97

OTHER MARGINS AND EQUITIES 234,793.31 202,335.42 32,457.89

-------------------- -------------------- --------------------

TOTAL MARGINS AND EQUITIES $9,116,334.44 $9,283,000.17 -$166,665.73

-------------------- -------------------- --------------------

LONG-TERM DEBT -RUS (NET) $392,724.39 $420,223.90 -$27,499.51

LONG-TERM DEBT-FFB-RUS GUARANTEED 6,288,320.33 6,487,832.20 -199,511.87

OTHER LONG-TERM DEBT (NET) 5,094,729.37 6,115,885.35 -1,021,155.98

ADVANCE PAYMENTS UNAPPLIED-RUS LOANS -1,424,589.60 -1,854,618.26 430,028.66

-------------------- -------------------- --------------------

TOTAL LONG-TERM DEBT $10,351,184.49 $11,169,323.19 -$818,138.70

-------------------- -------------------- --------------------

NOTES PAYABLE $0.00 $0.00 $0.00

ACCOUNTS PAYABLE 374,242.47 620,785.64 -246,543.17

CONSUMERS DEPOSITS 38,379.00 105,495.00 -67,116.00

OTHER CURRENT AND ACCRUED LIABILITIES 664,205.85 563,447.82 100,758.03

-------------------- -------------------- --------------------

TOTAL CURRENT AND ACCRUED LIABILITIES $1,076,827.32 $1,289,728.46 -$212,901.14

-------------------- -------------------- --------------------

OTHER DEFERRED CREDITS $21,083.92 $57,142.03 -$36,058.11

-------------------- -------------------- --------------------

TOTAL LIABILITIES AND OTHER CREDITS $20,565,430.17 $21,799,193.85 -$1,233,763.68

==================== ==================== ====================


Financial Information March 2020

Actual Budget 2019 Actual Budget 2019

Operating Revenue $2,388,116 $2,440,193 $2,525,099 $778,894 $735,279 $816,149

Cost of Power $950,645 $973,810 $979,041 $302,976 $295,541 $319,282

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Revenue & Cost of Power - 2020

Actual Budget 2019 Actual Budget 2019

Admin. & Gen. $305,091 $312,755 $314,140 $105,611 $106,247 $115,189

Cust. Serv. $107,876 $113,262 $121,302 $35,217 $37,539 $36,171

Oper & Maint $433,127 $362,050 $335,929 $140,813 $136,832 $131,173

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Operating Expenses - 2020

YTD

MAR

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

YTD Cumulative Margins - 2020

Actual Budget 2019

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000


Monthly Margins - 2020

Actual Budget 2019

YTD

MAR


Financial Information Through March 2020

change date in header

Ratios: December 31, 2019 and March 31, 2019 & 2020YE

2019 3/31/19 3/31/20

Quick Ratio * 1.35 2.04 1.49

Current Ratio 1.67 2.35 1.90

Equity as a % of Net Utility Plant 51.15% 53.30% 52.74%

Equity as a % of Total Assets** 43.05% 42.58% 44.33%

Net TIER *** (YTD) 1.80 3.62 2.70

Jan-Sept 15Oct 14-Dec14 DSC **** 1.18 1.25 1.14

Modified DSC w/o COC Loan 1.71 1.92 1.66

719257.7 234820.8

Cash & Investments 730,226 1,700,587 741,015

437917.9 150497.7 Receivables 883,749 931,118 863,574

579696.8 1,613,975 2,631,705 1,604,589

582413.5 176335.9 Less Payables (584,138) (620,786) (374,240)

1037024 Liquidity 1,029,837 2,010,919 1,230,349

2.33 Other Payments Due: Due $

2.79 906045 RUS Loan Payment 4/30/2020 4,126 (from COC account)

FFB Loan Payment 6/30/2020 116,285 (from COC account)

CFC Loan Payment 4/30/2020 151,677

Note: Received are payments received through April 15, 2020 CoBank Loan Payment 4/20/2020 58,213

* Quick ratio=measures the ability of a company to use its cash and short-term/demand deposits to extinguish current liabilities immediately

** Equity Target - 40%*** Net TIER=Times Interest Earned Ratio (TIER) means the ratio of a

borrower’s net income (after taxes) plus interest expense,all divided by interest expenseNet TIER Target = RUS Covenant = 1.25 (met 2 of 3 years)

**** DSC=Debt Service Coverage is a measurement to generate sufficient funds

to cover principal and interest of long-term debt on an annual basis

DSC Target = 1.25 (RUS Covenant = 1.25, met 2 of 3 years)

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

7,500,000

8,000,000

8,500,000


Monthly kWh Sales

2020 2020 Budget 2019

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

30 Days 60 Days 90 Days Total Past Due

March Aged Past Due Accounts Receivable

2020 2020 Received 2019 2019 Received

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Apr 2020 Mar 2020 Feb 2020 Jan 2020

Delinquent Listing - Payments received thru 04/15/2020 - Over 30 Days

Customer Information System Payments Received Balance Due



SIMPLIFIED CASH FLOW

As of March 31, 2020

Black = creates cash

Red = uses cash

Thousands (000s) Actual Budget

CASH FROM OPERATIONS

Margins 236.6$ 295.2$

Add back Depreciation 279.1 276.0

Add back Regulatory Asset Amortization 35.3 35.3

Cost from retirement of assets (poles, etc.) (73.6) (39.1)

Cash from Operations 477.4 567.4

Uses of Cash in Operations

Change in Ending Receivable Balance 20.2 -

Change in Ending Inventory Balance (36.9) -

Change in Ending Prepaid Expense Balance (20.2) -

Reduction of (payment for) other Current Assets (6.5) -

Change in Ending Accounts Payable Balance (209.9) -

Accrual/(payment) of other Current Liabilities 97.8 -

Cash created by (used in) operations (155.5) -

Capital Spending

Utility Plant (147.7) (156.2)

Construction Work in Progress 62.4 -

Other Property & Investments 10.8 -

Cash (used in) Capital Spending (74.5) (156.2)

Increase of debt (borrowing) - -

New debt -

Pay down of debt (313.9) (313.6)

Advance Payments Applied (CofC) 109.6 128.7

Other creation (use of) cash (Estate Retirement) (26.5) (7.5)

General Retirement - -

Other Deferred Credit (5.8) (25.0)

Change in cash from all activities 10.8 193.7

Cash and Investments beginning 730.2 730.2

Change in cash 10.8 193.7

Cash and Investments ending 741.0 923.9

Payroll 395.4 384.5

Benefits 259.9 264.5

Total 655.3 649.0


Bank of Red Lodge/First Interstate Bank - Checking1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 Totals

Beginning Balance 260,323 193,048 219,981 376,817 149,877 (24,168) (90,627) (383,775) (356,328) (337,198) (576,095) (762,549) 260,323

Transfers In 200,000 50,000 250,000

Transfers Out - -

Receipts 847,595 795,969 862,562 742,312 686,654 666,136 712,641 799,114 733,812 654,990 631,385 704,162 8,837,331

- - - - - - - - - - - - -

PaymentPayroll Employees (76,282) (83,191) (76,562) (77,000) (77,000) (77,000) (115,500) (77,000) (77,000) (77,000) (77,000) (115,500) (929,752)

Taxes (38,218) (37,016) (36,625) (38,000) (38,000) (38,000) (57,000) (38,000) (38,000) (38,000) (38,000) (57,000) (453,642)

R&S/401k (56,288) (56,878) (55,826) (56,288) (56,288) (56,288) (56,288) (56,288) (20,000) (20,000) (20,000) (20,000) (474,143)

Loans RUS* - - - - - - - - - - - - -

CFC (151,664) - - (151,664) (151,664) (151,664) (454,993)

FFB* - - - - - - - - - - - - -

CoBank (58,219) (58,224) (58,218) (58,219) (58,219) (58,219) (58,219) (58,219) (58,219) (58,219) (58,219) (58,219) (640,417)

Insurance Group (65,027) (14,703) (14,715) (65,027) (14,703) (14,703) (65,027) (14,703) (14,703) (65,027) (14,703) (14,703) (312,717)

General - - - - - - - - - - - (83,000) (83,000)

WC (24,476) - - - - - - - - - - - -

A/P (230,919) (168,154) (150,468) (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) (220,000) (2,298,623)

Power (411,522) (345,603) (310,771) (292,153) (270,490) (266,384) (280,090) (305,456) (284,759) (261,976) (254,917) (282,767) (3,155,367)

Property Taxes - - - (8,900) (124,000) - - - - - (133,000) - (265,900)

New Truck - (53,122) - (53,122)

Other (2,254) (2,144) (2,541) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (2,000) (20,685)

Total Payments (1,114,870) (819,035) (705,727) (969,252) (860,700) (732,594) (1,005,789) (771,667) (714,681) (893,887) (817,840) (851,190) (9,142,361)

Ending Balance 193,048 219,981 376,817 149,877 (24,168) (90,627) (383,775) (356,328) (337,198) (576,095) (762,549) (909,577) 205,293

*Beg Sept 2018 Pd thru COC 1/31/2020 2/29/2020 3/31/2020 4/30/2020 5/31/2020 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020

First Interstate Bank - Savings

Beginning Balance 344,362 157,296 170,620 233,344 233,344 233,344 233,344 233,344 233,344 233,344 233,344 233,344 344,362

Transfers In - -

Transfers Out (200,000) (50,000) (250,000)

Receipts 12,933 63,325 62,724 138,981

Total Payments - - - - - - - - - - - - -

Ending Balance 157,296 170,620 233,344 233,344 233,344 233,344 233,344 233,344 233,344 233,344 233,344 233,344 233,344

All Other AccountsBeginning Balance 125,542 130,394 130,456 130,854 130,854 130,854 130,854 130,854 130,854 130,854 130,854 (313,197) 125,542

Transfers In -

Transfers Out - -

Receipts 4,852 63 398 5,313

Total Payments/Gen.Retire - - - - - - - - - - (444,051) - (444,051)

Ending Balance 130,394 130,456 130,854 130,854 130,854 130,854 130,854 130,854 130,854 130,854 (313,197) (313,197) (313,197)

TOTAL ALL ACCOUNTS 480,737$ 521,058$ 741,015$ 514,075$ 340,029$ 273,571$ (19,577)$ 7,870 27,000 (211,897)$ (842,402)$ (989,430)$

1/31/2020 2/29/2020 3/31/2020 4/30/2020 5/31/2020 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020


BEARTOOTH ELECTRIC COOPERATIVE, INC.CFC SELECT NOTES INVESTMENTS

1/31/2020 2/29/2020 3/31/2020 4/30/2020 5/31/2020 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020480,737$ 521,058$ 741,015$ 514,075$ 340,029$ 273,571$ (19,577)$ 7,870$ 27,000$ (211,897)$ (842,402)$ (989,430)$

- - - - - - - - - - - -

480,737$ 521,058$ 741,015$ 514,075$ 340,029$ 273,571$ (19,577)$ 7,870$ 27,000$ (211,897)$ (842,402)$ (989,430)$


BEARTOOTH ELECTRIC COOPERATIVE, INC.Accounts Payable

Check Register

03/16/2020 To 04/15/2020

Bank Account: 1 - GENERAL FUNDCheck / Date Pmt Vendor Name Reference Amount

Tran Listed Type2052 3/18/2020 WIRE BEARTOOTH ELECTRIC COOPERATIVE, INC. FIB CHECKING TO BANK OF RL CHECKING XFER 305,000.00 2053 3/20/2020 WIRE NATIONAL RURAL ELEC COOP ASSOC CBA FLEX PAYMENTS TO EMPLOYEES 248.23 2054 3/24/2020 WIRE NATIONAL RURAL ELEC COOP ASSOC R & S PLAN 35,627.66 2055 3/24/2020 WIRE NATL RURAL ELECTRIC COOP ASSC 1ST QTR ADJUSTMENT GROUP BENEFIT PLAN 10.71 2056 3/24/2020 WIRE NATL RURAL ELECTRIC COOP ASSN 1ST QTR ADMIN FEEADJUSTMENT GROUP BENEFT 1.26 2057 3/25/2020 WIRE NRECA 401k PENSION PLAN 9,364.21 2058 3/25/2020 WIRE NRECA 401k PENSION PLAN LOAN REPAYMENT 942.26 2059 3/26/2020 WIRE BEARTOOTH ELECTRIC COOPERATIVE, INC. FIB CHECKING TO BANK OF RL CHECKING 250,000.00 2060 3/27/2020 WIRE INTERNAL REVENUE SERVICE FEDERAL WITHHELD & FICA TAXES 16,012.88 2061 4/3/2020 WIRE NATIONAL RURAL ELEC COOP ASSOC CBA FLEX PAYMENTS TO EMPLOYEES 393.65 2062 4/10/2020 WIRE US BANK MONTHLY CORPORATE CREDIT CARD STATEMENT 6,064.51 2063 4/8/2020 WIRE NRECA 401k PENSION PLAN 9,064.57 2064 4/8/2020 WIRE NRECA 401k PENSION PLAN LOAN REPAYMENT 942.26

Bank Account: 15 - BANK OF RED LODGE GENERAL FUND1 3/19/2020 WIRE TEST WIRE OF NEW BANK ACCOUNT TEST WIRE OF NEW BANK ACCOUNT - 2 3/19/2020 WIRE MORGAN STANLEY CAPITAL GROUP INC. POWER BILL 231,721.80 3 3/19/2020 WIRE DEPARTMENT OF ENERGY POWER BILL 13,208.79 4 3/19/2020 WIRE COBANK PRINCIPAL & INTEREST 58,218.19 5 3/25/2020 WIRE PAYROLL PAYROLL 37,350.65 6 3/27/2020 WIRE TEST WIRE OF NEW BANK ACCOUNT TEST WIRE OF NEW BANK ACCOUNT - 7 3/27/2020 WIRE NORTHWESTERN ENERGY TRANSMISSION BILL 65,840.57 8 4/6/2020 WIRE NATL RURAL ELECTRIC COOP ASSC 2ND QTR GROUP BENEFITS PLAN 1 27,737.28 9 4/6/2020 WIRE NATL RURAL ELECTRIC COOP ASSN 2ND QTR GROUP BENEFITS PLAN 1 ADMIN FEES 2,238.30

10 4/6/2020 WIRE NATL RURAL ELECTRIC COOP ASSC 2ND QTR GROUP BENEFITS PLAN 2 18,454.05 11 4/6/2020 WIRE NATL RURAL ELECTRIC COOP ASSN 2ND QTR GROUP BENEFITS PLAN 2 ADMIN FEES 1,512.93 12 4/8/2020 WIRE PAYROLL PAYROLL 1.00 13 4/8/2020 WIRE NRECA 401k PENSION PLAN - VOID OUT OF FIB CHECKING - 14 4/8/2020 WIRE NRECA 401k PENSION PLAN LOAN REPAYMENT - VOID FIB CHECK - 15 4/10/2020 WIRE INTERNAL REVENUE SERVICE FEDERAL AND FICA WITHHELD TAXES 15,281.28 20 3/27/2020 DD CARBON COUNTY CLERK & RECORDER EASEMENT FROM 2012 -

10001 3/20/2020 CHK VOID VOID - A/P TEST PRINT OF NEW BANK ACCOUNT - 10002 3/20/2020 CHK VOID VOID - A/P TEST PRINT OF NEW BANK ACCOUNT 6.09 10003 3/20/2020 CHK VOID VOID - A/P TEST PRINT OF NEW BANK ACCOUNT 6.09 10004 3/20/2020 CHK TRAVIS BARKER UNIT #63 BACKUP LIGHT REIMBURSEMENT 22.67 10005 3/20/2020 CHK BORDER STATES ELECTRIC SUPPLY MATERIAL 9,651.09 10006 3/20/2020 CHK DANIEL DUTTON BOARD FEE, MILEAGE & OTHER MEETING 421.00 10007 3/20/2020 CHK JULIE A LINDGREN BOARD FEE & OTHER MEETING 375.00 10008 3/20/2020 CHK ROXIE S MELTON BOARD FEES, MILEAGE, OTHER MEETING,REIMB 626.28 10009 3/20/2020 CHK MT ELECTRIC & TELEPHONE SYS 2019 WORKERS COMP TRUE UP 447.00 10010 3/20/2020 CHK WILLIAM A PASCOE JAN & FEB BOARD FEES, MILEAGE & OTHER MEETINGS 1,103.50 10011 3/20/2020 CHK SGRIG'S ELECTRIC LLC GUTTER HEATING 926.04 10012 3/20/2020 CHK TESTING WITH INTEGRITY/TRAINING LLC NON DOT & DOT TESTING 176.00 10013 3/27/2020 CHK ALTEC INDUSTRIES, INC UNIT #6 TRAILER HARNESS 46.94 10014 3/27/2020 CHK AMERICA FAMILY LIFE INSURANCE CO PAYROLL DEDUCTION INSURANCE 270.92 10015 3/27/2020 CHK BOBCAT OF BIG SKY, INC. UNIT #90 PARTS 83.45 10016 3/27/2020 CHK CENTURYLINK COLUMBUS SHOP, COLUMBUS SUBSTATION & RL FAX 368.19 10017 3/27/2020 CHK CHARTER COMMUNICATIONS RL INTERNET 254.28 10018 3/27/2020 CHK EES CONSULTING FEB RATE STUDY 1,450.00 10019 3/27/2020 CHK FELT, MARTIN, FRAZIER & WELDON, P.C. MONTHLY ATTORNEY STATEMENT 3,858.75 10020 3/27/2020 CHK GDS ASSOCIATES, INC. MARCH RATE STUDY 1,450.00 10021 3/27/2020 CHK GENERAL PACIFIC, INC. 100 METERS 15,725.00 10022 3/27/2020 CHK HORIZON COMMUNICATIONS CALL CENTER 649.22 10023 3/27/2020 CHK IRBY TOOL & SAFETY LINE HOSE 171.79 10024 3/27/2020 CHK JACK HENRY & ASSOCIATES ACH PROCESSING FEES 75.00 10025 3/27/2020 CHK JIM & TRACYS ALIGNMENT INC UNIT #4 R&R DRUMS & SHOES 1,306.86 10026 3/27/2020 CHK KITSFIRST.COM UNIT #7 REPLACEMENT KIT 73.50 10027 3/27/2020 CHK LITHIA DODGE OF BILLINGS UNIT #60 RADIATOR, TRANS SRVC, ROTORS 3,004.87 10028 3/27/2020 CHK LOCAL UNION 44 UNION DUES 1,199.16 10029 3/27/2020 CHK METLIFE PAYROLL DEDUCTION INSURANCE 25.00 10030 3/27/2020 CHK MONTANA CSED SDU MONTANA CSED 194.76 10031 3/27/2020 CHK MONTANA DEPT OF REVENUE MT WITHHELD TAXES 3,011.00 10032 3/27/2020 CHK MONTANA ELECTRIC COOP ASSN., INC. GENERAL & SAFETY DUES, RM & COMMUNICATIONS 7,995.44 10033 3/27/2020 CHK MONTANA MOBILE MONTHLY OFFICE SHREDDING SERVICE 157.20 10034 3/27/2020 CHK MORRISON MAIERLE SYSTEMS CORP NETWORK & HOSTED EMAIL, & 10 SUB SONICWALLS 3,706.00 10035 3/27/2020 CHK MSDSONLINE DBA VELOCITYEHS ANNUAL MSDS MANAGEMENT SUBSCRIPTION 499.00 10036 3/27/2020 CHK NISC AMS, ASP, H/W SUPPORT & MISC. 9,965.57 10037 3/27/2020 CHK ONE CALL LOCATORS, LTD BILLABLE TICKETS - MT & WY 1,771.35 10038 3/27/2020 CHK STELLA-JONES CORPORATION EIGHTY-SEVEN (87) POLES 29,939.00 10039 3/27/2020 CHK STILLWATER CO CLERK & RECORDER EASEMENTS 14.00 10040 3/27/2020 CHK CONSTANCE S TEACHOUT MILEAGE REIMBURSEMENT 29.90 10041 3/27/2020 CHK TITAN MACHINERY INC. UNIT #17 WINDOW 349.75 10042 3/27/2020 CHK TOWN AND COUNTRY SUPPLY ASSO. FUEL 1,605.33 10043 3/27/2020 CHK VERIZON WIRELESS SUBSTATION TWACS MODEMS 750.83 10044 3/27/2020 CHK MEMBER UNCLAIMED CAPITAL CREDITS 110.05 10045 4/3/2020 CHK BIG SKY LINEN SUPPLY RL & COLUMBUS RUG CLEANING 110.39 10046 4/3/2020 CHK CENTURYLINK RL FAX LONG DISTANCE 3.04 10047 4/3/2020 CHK COLUMBUS TIRE & SERVICE CENTER UNIT #63 TWO TIRES 534.26 10048 4/3/2020 CHK ECOLAB PEST ELIM DIV RL & COLUMBUS PEST CONTROL 181.26 10049 4/3/2020 CHK JACO ANALYTICAL, INC. ONE (1) OIL SAMPLE 12.50 10050 4/3/2020 CHK LINECO LINEMAN INSURANCE 14,703.00 10051 4/3/2020 CHK MAID IN COLUMBUS LLC CLEANING COLUMBUS SHOP 200.00 10052 4/3/2020 CHK NATIONAL RURAL ELEC COOP ASSOC MARCH & APRIL CAFETERIA PLAN ADMIN FEE 45.00 10053 4/3/2020 CHK NEMONT TWO SUBSTATIONS & NYE TWACS MODEM 151.07 10054 4/3/2020 CHK KEVIN P OWENS MONTHLY AUTO ALLOWANCE & EXPENSE REIMBURSEMENTS 789.05 10055 4/3/2020 CHK STILLWATER COUNTY TREASURER NEW UNIT #9 REGISTRATION 380.33 10056 4/3/2020 CHK TOWN AND COUNTRY SUPPLY ASSO. FUEL 879.13 10057 4/3/2020 CHK VERIZON WIRELESS MAP,GPS,TWACS,TRUCK,CELL PHONES&CUST.INF 395.70 10058 4/3/2020 CHK MEMBER FEB 2020 ESTATE RETIREMENT 28.15 10059 4/3/2020 CHK MEMBER FEB 2020 ESTATE RETIREMENT 689.09 10060 4/3/2020 CHK MEMBER REWRITE FOR CAPITAL CREDITS 129.98 10061 4/3/2020 CHK MEMBER FEB 2020 ESTATE RETIREMENT 85.03 10062 4/3/2020 CHK MEMBER FEB 2020 ESTATE RETIREMENT 23.10


Check Register

03/16/2020 To 04/15/2020

Bank Account: 1 - GENERAL FUNDCheck / Date Pmt Vendor Name Reference Amount

Tran Listed Type10063 4/3/2020 CHK MEMBER MR REFUND 262.00 10064 4/7/2020 CHK RED LODGE AREA COMMUNITY FOUNDATION DONATION 500.00 10065 4/10/2020 CHK ARLEEN M BOYD JANUARY BOARD FEES, MILEAGE & OTHER MTGS 934.00 10066 4/10/2020 CHK STEPHANIE FLETCHER MARCH FITNESS REIMBURSEMENT 24.79 10067 4/10/2020 CHK GDS ASSOCIATES, INC. RATE STUDY 2,465.00 10068 4/10/2020 CHK JAMES GROOMS MONTH 3 OF 3 MONTHS HOUSING STIPEND 500.00 10069 4/10/2020 CHK KEN'S I-90 UNIT #7 REPAIRS 659.97 10070 4/10/2020 CHK LANDIS+GYR TECHNOLOGY, INC. MARCH HOSTING FEE 749.97 10071 4/10/2020 CHK RALPH LEWIS JAN, FEB, & MAR BOARD FEES, MILEAGE & OTHER MEETING 1,322.00 10072 4/10/2020 CHK JULIE A LINDGREN BOARD FEE 250.00 10073 4/10/2020 CHK MONTANA CSED SDU MONTANA CSED 194.76 10074 4/10/2020 CHK MONTANA DEPT OF REVENUE MT WITHHELD TAXES 2,886.00 10075 4/10/2020 CHK RICHARD T NOLAN BOARD FEE 250.00 10076 4/10/2020 CHK ONE SMART CONFERENCE, INC. CONFERENCE CALLING 25.93 10077 4/10/2020 CHK ONLINE INFORMATION SERVICES MONTHLY EXCHANGE SERVICE 5.40 10078 4/10/2020 CHK P D Q JANITORIAL SERVICE INC RL CLEANING SERVICE 959.47 10079 4/10/2020 CHK WILLIAM A PASCOE BOARD FEE & MILEAGE 291.40 10080 4/10/2020 CHK PINE COVE CONSULTING TROUBLESHOOT LIFESIZE 1,125.00 10081 4/10/2020 CHK QUILL CORPORATION OFFICE SUPPLIES 164.38 10082 4/10/2020 CHK TERRELL'S OFFICE MACHINES, INC. KYOCERA MAINTENANCE 346.58 10083 4/10/2020 CHK UTILITIES UNDERGROUND LOCATE BILLABLE TICKETS 78.50 10084 4/10/2020 CHK MEMBER CHECK REWRITE FOR CAPITAL CRED 95.10 10085 4/10/2020 CHK MEMBER CHECK REWRITE FOR CAPITAL CRED 28.28 10086 4/10/2020 CHK MEMBER CHECK REWRITE FOR CAPITAL CRED 271.24 10087 4/10/2020 CHK MEMBER CHECK REWRITE FOR CAPITAL CRED 56.64

Total Payments for Bank Account - 1 : (114) 1,242,884.22 Total Voids for Bank Account - 1 : (2) 12.18

Total for Bank Account - 1 : (116) 1,242,896.40


Paste in A1 to N24

30.0%

32.0%

34.0%

36.0%

38.0%

40.0%

42.0%

44.0%

Jul-Dec 2017 2018 Budget 2018 YTD 2019 Budget 2019 YTD 2020 Budget 2020 YTD Mar 2020 Feb 2020 Jan 2020

37.4% 37.3% 37.0%

37.6%38.2% 39.7%

39.8%

38.9%

40.1%

40.4%

Power Costs as a Percentage of Revenue


April 2020 General Manager Report

Month/Year Energy WAPA Morgan Stanley Imbalance Transmission Total Cost Cost per mwh

19-Mar 8,079 $10,420 $245,420 $16,150 $47,293 $319,282 $39.52

19-Apr 5,714 $11,180 $181,115 ($3,242) $44,548 $233,601 $40.88

19-May 5,554 $9,041 $182,769 ($5,507) $44,436 $230,739 $41.54

19-Jun 5,385 $10,309 $166,776 $6,679 $46,803 $230,566 $42.82

19-Jul 5,983 $11,288 $177,870 ($419) $74,810 $263,549 $44.05

19-Aug 6,573 $11,681 $208,446 ($7,584) $69,834 $282,377 $42.96

19-Sep 5,139 $9,885 $164,383 ($6,725) $73,668 $241,212 $46.94

19-Oct 6,336 $8,973 $200,413 $7,204 $64,598 $281,188 $44.38

19-Nov 7,115 $10,977 $216,597 $4,552 $79,186 $311,312 $43.75

19-Dec 7,846 $12,579 $257,156 ($18,942) $78,022 $328,815 $41.91

20-Jan 7,943 $12,338 $259,396 ($15,766) $76,295 $332,263 $41.83

20-Feb 7,566 $13,209 $235,631 ($6,224) $72,064 $314,681 $41.59

20-Mar 7,081 $10,420 $225,051 ($6,455) $73,960 $302,976 $42.79

12 Month

Total 78,235 $131,881 $2,475,601 ($52,430) $798,225 $3,353,277 $42.86

Note: Imbalance adjustment for March is estimated as $6,000.00 credit from Morgan Stanley.

It has been an incredibly busy and stressful month, with several competing projects driving the workload. Staff is to be commended for their ability to adapt and be flexible in serving our members.

• Continued working with EES in conjunction with Bill Pascoe and Kaaren Robbins on final rate design and preparation of the 30-day Notice.

• Worked closely with Kaaren Robbins, Arleen Boyd, and Bill Pascoe on Annual Meeting materials and rate design brochure.

• The office lobby was closed to the public on March 16 to reduce staff exposure to the Covid-19 virus. We are beginning to contemplate opening the office on May 4 with limited access. Eric and I will assess ongoing practices with lineman post-May 4.


• All member services continue to be conducted via phone and Web/SmartHub. Members are very understanding and being flexible with our new way of business.

• General Counsel is preparing temporary Sick Leave (PTO) and FMLA policies to be placed on employee Bulletin Boards so BEC will be in full compliance with newly passed federal legislation impacting employees during the Covid-19 pandemic.

• General Counsel continues to work with the attorney representing the landowners of the East Columbus substation. We are getting very close to resolving a single issue at the moment.

• Molly Davidson (M-M) and I had a ZOOM meeting with Stillwater County Commissioners regarding the FEMA Pre-mitigation Grant. They appeared very interested and supportive of the project. They were reassured there would be no cost to the County.

• Bill Pascoe and I continue to be fully engaged in the NWE FERC Settlement discussions. The progress has been slow, but we are making good progress with NWE and the other Interveners.

• BEC is continuing conversations with NWE to improve system reliability on their transmission. April 24 correspondence is attached.

o Priority One deficiencies will be corrected this spring as well as Priority One maintenance and vegetation issues.

o NWE will analyze the Red Lodge to Line Creek survey and complete engineering for a permanent solution. Construction will be completed in 2021.

o The air break switches in Red Lodge Substation will be replaced, and SCADA controls added in 2020.

o NWE will complete engineering analysis of the Bridger Auto to Belfry “B” and complete an engineering assessment in 2020.

o Outage notification procedures will be improved so that unnecessary callout of BEC linemen will be reduced, saving dollars.

o They are working on a methodology to report customer minutes when they have a transmission outage affecting our members.




BEC Member Communication & Services Board Report

April 28, 2020

• May Rural Montana The June newsletter is planned to feature an Annual Meeting review, Co-op Facts, Board’s Member Notice, Vegetation Management, Energy Efficiency.

• May Billing Insert The April billing insert will feature the COVID-19 actions, Rate Design Mailing Follow-up, Member Notice, Website Know-How, and the May Calendar of events.

• May Billing Memo Member Notice in the Mail

• Member eNewsletter

- April 26 - April 30 Annual Meeting Reminder - May 23

• Board’s Member Notice

- May 8 final design - May 8 to Printer - Direct Mail to Members, May 15

• Website - Rate Design calculator in production

• Youth Programs

- MECA Memorial Scholarship winners announced April 17 Southwest Region Hannah Martin, Ravalli County Electric Cooperative Northeast Region Alexis Canen, McCone Electric Cooperative Southeast Region Wyatt Kittelmann, Southeast Electric Cooperative Northwest Region Amber Johnson, Sun River Electric Cooperative

- Beartooth Electric Scholarship

o Checks to mail in June

• NEW Billing Statement Development - The new statement format, design, and programming can commence with the Rate


Design direction upon board approval. Based on this timeline, the new statement launch is anticipated on the June statement (September billing).

• 2020 Annual Meeting- Date: May 2, 2020- Location: Video Conference-ZOOM- Districts 1, 3, and 7 are up for election in 2020. Two nominations were received, Daniel

Dutton, District 1, and Ralph Lewis, District 7. District 3 will be appointed by the Boardfollowing the Annual Meeting (120 days max per bylaws). Three candidates havesubmitted interest to date.

- See Annual Meeting Calendar following report

• MECA- Youth Tour

• The 2020 Youth Tour is cancelled.

• Electronic Forms Development- A new New Construction Application is in development as well as identifying other form

needs.

• FacebookContent follows board meeting information, press releases, and RM

• BEC Membership ApplicationWork will be able to begin after the Annual Meeting and the approval/non-approval ofupdated and amended bylaws.

• BEC New Member Welcome (email & hard copy package)Work in progress-awaiting membership application

• Shares du SoleilMonthly Report1,760 February 2020 = 22 kWh credit $1.95

• Operation Round UpOperation Round Up received $116.18 billed 4/7/2020. 203 Accounts and 187 Customers

• Residential Home Energy Assistance Program (formerly LISD/LIDD)Total Energy Assistance (LISC/LID) Discount Accounts for March 2020 billed 4/7/2020. WY:$81.91 and MT: $400.59 = Total $482.50. Total number of accounts are 47


• NISC Enterprise System Update March 2020 Process Reviews

• New system capabilities are being implemented into processes as available. Installed Systems - ABS - Customer Information System (CIS) - CashRegister - Remitlus - SmartHub - Engineering & Operations (E&O) - Automated Meter Information (AMI) - Work Management Solutions (WMS) - Docuvault - Meter Data Management System (MDMS)

• Mapwise-Mapping/Mapwise-Staking The new product was implemented this month. We are no longer in BETA testing. EZRI GIS - Installed with MapWise

• OMS - BEC went live with OMS the week of March 23. - Horizon (BEC’s after-hours dispatch service is testing an internet interface which allows them to enter right into the AppSuite system as they are not a MultiSpeak ready organization. Shelly at Horizon and I are working through processes to determine if this will work for all. Due to the overwhelming Horizon need to cover closed business phone calls-this is delayed. - A few loose ends are work in progress to be 100% operational.

• Prepay - Implementation 2020 has been delayed with kick-off now scheduled for June

2020. OTHER

• Billing Statement Programming o Next steps will progress upon rate design board approval.


official newsletter of the beartooth electric cooperative

beartoothelectric.com | May 2020

INSIDEthis issue...

Digging into some home improvement projects while social

distancing?

JOIN US!BEC’s 82nd Annual Member Meeting

May 2, 2020

Risk Management Committee

RATE DESIGN

COVID-19—A lot has changed. By Kevin P. Owens, PE, BEC general manager

T

coconnectsnnectsBEARTOOTHBEARTOOTH

6

5

General Manager’s Message

8

here isn’t much in my files that I have accumulated over the past 43 years that is labeled COVID-19. A pandemic such as this is certainly

new territory for all of us. Common sense should prevail and can be backed up with copious amounts of excellent information at our fingertips from local, state, and the federal government. The stay-at-home orders by the governor have allowed all of us to get ahead of this epidemic and work through our favorite recipe box a couple of times over.

We have taken proactive measures to protect our members and employees. Our office was closed to the public on March 16. The office staff has done an excellent job of serving members online and via telephone. Our line crews are now being dispatched from home with only one lineman is assigned per vehicle. They have been outfitted with disinfectants, masks and follow the 6-foot rule religiously, so don’t be offended. Our charge is to deliver safe, reliable, and affordable energy, and a pandemic isn’t going to change that.

The governor has issued several COVID-19 directives. We comply with those directives. The directive to discontinue disconnects during this period gives me pause and concern. I don’t think the message has been strong enough concerning members who are still responsible for accounts in arrears. I would encourage members having a difficult time paying their bills during this emergency period to reach out to your state Low Income Energy Assistance (LIEAP) program, BEC’s Residential Home Energy Assistance or Operation Round Up during these challenging times. Beartooth also just announced BEC Cares COVID-19 Emergency Assistance in partnership with Operation Round Up and concerned members to directly assist those members who have lost their income as a result of COVID-19. Check our website for details.

Digging into some home improvement projects while social distancing? It’s crucial to keep in mind the importance of keeping the public safe and connected to critical services in all situations. Calling 811 a few days before any planned digging project will prevent gas, water or other utility service outages, and possible serious injuries. It’s easy to enjoy DIY activities during social distancing while also staying safe. Always call 811 before digging, regardless of the depth or familiarity with the property, it’s the law.

Did you know there are both public and private lines on your property?Simply put, a utility company owns and maintains a public utility line or cable. While 811 locates are free to you, the utility pays for the service to locate public lines. Meanwhile, a property owner owns and maintains a private utility line. Beyond the meter and up to the building or home is considered a private utility, for which the property owner is responsible (the same for gas, telephone, etc lines). If you require a private locate (usually in addition to the public locate) call our recommended private locator, Last Call Locating at 406-698-9850.

Be Smart-Stay Healthy—,

www.beartoothelectric.com • Beartooth Electric Cooperative • 5BEC Board Book April 28, 2020 | Page 38

STATEMENT OF REVENUE & PATRONAGE CAPITAL

Amounts in $000

DECEMBER 31, 2019 DECEMBER 31, 2018

Amount% Of

Revenue Amount% Of

RevenueIncrease

(Decrease)

TOTAL OPERATING REVENUE $8,847 100.0% $8,577 100.0% $270

OPERATING EXPENSES

Cost of Power & Transmission $3,388 38.3% $3,187 37.2% $201

Distribution Operations & Maintenance $1,795 20.3% $1,581 18.4% $214

Admin, General & Consumer Expense $1,531 17.3% $1,523 17.8% $8

General Plant Maintenance $153 1.7% $139 1.6% $14

Depreciation $1,097 12.5% $1,016 11.8% $81

Interest Expense $597 6.7% $608 7.1% $(11)

Total Operating Expense $8,561 96.8% $8,054 93.9% $507

Net Operating Margin Before Patronage Capital Credits $286 3.2% $523 6.1% $(237)

Patronage Capital Credits $67 0.8% $50 0.6% $17

Net Operating Margin $353 4.0% $573 6.7% $(220)

Non-Operating Margins

Interest Income $117 1.3% $132 1.5% $(15)

Other Non-Operating Revenue $3 0.0% $(3) 0.0% $6

Total Non-Operating Margins $120 1.3% $129 1.5% $(9)

Net Margins $473 5.3% $702 8.2% $(229)

PATRONAGE CAPITAL—BEGINNING OF YEAR $8,463 $7,136

Refund Allocated to Prior Years’ Equities and Margins $0 $1,112

Less: Retirement of Capital Credits $(494) $(407)

Add/Less: Margins Transferred from/to Other Equities $(41) $(29)

Less: Non-Operating Margins Transferred to Other Equities $(129) $(51)

PATRONAGE CAPITAL—END OF YEAR $8,272 $8,463

2020 Annual Member Meeting—ZOOM Video Conference If you’ve opened these pages upon arrival of the Rural Montana magazine, we hope you will plan to join us

for the 2020 Annual Member Meeting on Saturday, May 2. The latest member direct mail package included instructions for numerous ways to participate in the meeting, including the hard copy presentation provided in the mailing with call-in audio, ZOOM video conference with both internet or call-in audio, and Facebook LIVE.

The primary purpose of our annual meeting is a business session when the members vote on proposed bylaw amendments and elect trustees to represent them. In addition, the board, committees, staff and auditor report on the previous years’ events. This year we have scheduled a one-hour meeting with the primary focus on election/proposed bylaw amendments, our 2019/2018 Audited Financials, and Rate Design.

A A financially healthy cooperative is by far, the most critical work for the board. On these next two pages are abbreviated 2019-2018 Revenue & Patronage Capital and Balance Sheet reports. Each year BEC shares this information in Rural Montana so members can be confident that your cooperative is in good

financial condition.

BEC’S 82nd ANNUAL MEMBER MEETING

PARTICIPATION GUIDE

Saturday, May 2, 2020

PARTICIPATION OPTION 1 INSTRUCTIONS1:

1. Hard copy presentation with call-in audio

• Have your hard copy presentation in hand (pre-

sentation pages follow these instructions).

• Call-in to one of the US numbers:

- +1 346 248 7799, or +1 669 900 6833, or

- +1 312 626 6799, or +1 929 205 6099, or

- +1 253 215 8782, or +1 301 715 8592

• Enter the Webinar ID: 916 3939 7710 (Personal ID: #)

• Meeting Registration: Provide your first and last name as it appears on your billing statement

by email at [email protected] or by calling 406-446-2310. You could WIN one of

several $100 electric bill credits.

Staying Safe—Being Healthy

ANNUAL MEMBER

BEC’s 82nd

MEETING

Historical Video Conference

May 2, 2020

Get ready to—

Staying Safe—Being Healthy

1

Also on FaceBook LIVE.

Go to the Beartooth

Electric page.

PARTICIPATION QUICK GUIDE:

Date:

Saturday, May 2, 2020

Time:

Login/Registration Opens 8:00 a.m. (please join

the meeting by 8:50 a.m.)

Business Meeting Begins 9:00 a.m.

Webinar Computer Link:zoom.us

Webinar ID:

916 3939 7710

Personal ID:

#

Webinar Call-in Numbers:

+1 346 248 7799, or +1 669 900 6833, or

+1 312 626 6799, or +1 929 205 6099, or

+1 253 215 8782, or +1 301 715 8592

Facebook LIVE:

www.facebook.com/beartoothelectric

Meeting Participation Options:

Registration and you could WIN one of several $100

electric bill credits

1. Hard copy presentation with call-in audio

2. Zoom Computer/Laptop/Tablet Devices

(Internet or Call-in Audio)

3. Zoom Mobile/Tablet (Cellular) Devices

(Internet or Call-in Audio)

4. Facebook LIVE Streaming (Video & Audio)

1. Register by providing your first and last name as it

appears on your billing account by email at bec@

beartoothelectric.com or call 406-446-2310*

2. Enter your first and last name as it appears on

your billing statement

3. Enter your first and last name as it appears on


4. Comment your first and last name as it appears on


*Registration by email or phone is available to all members.

6 • Beartooth Electric Cooperative • www.beartoothelectric.com BEC Board Book April 28, 2020 | Page 39

BALANCE SHEET

Amounts in $000

ASSETS EQUITIES, MARGINS, LIABILITIES & OTHER CREDITS

DECEMBER

2019

DECEMBER

2018

DECEMBER

2019

DECEMBER

2018

UTILITY PLANT (AT COST) EQUITIES AND MARGINS

Total Utility Plant $33,912 $33,066 Patronage Capital $8,272 $8,463

Less: Accumulated Depreciation $16,506 $16,213 Other Equities $631 $461

Net Utility Plant $17,406 $16,853 Total Equities & Margins $8,903 $8,924

OTHER PROPERTY & INVESTMENTS

Investments in Assoc Organizations $467 $450 LONG-TERM DEBT $9,345 $10,131

Investments in CFC $275 $277

Total Other Property & Investments $742 $727 CURRENT LIABILITIES

Note Payable Bank LOC $0 $0

CURRENT ASSETS Current Portion Long-Term Debt $1,211 $1,242

Cash & Temporary Cash Investments $730 $1,720 Accounts Payable $588 $453

Accounts Receivable & Note Receivable $884 $946 Consumers' Deposits $41 $97

Materials, Supplies, Prepayment & Other $426 $588 Accrued Taxes, Interest & Vacation $350 $384

Total Current Assets $2,040 $3,254 Total Current Liabilities $2,190 $2,176

DEFERRED DEBITS DEFERRED CREDITS

Unamortized Loan Fees $6 $8 Consumer Energy Prepayments $24 $21

Preliminary Surveys & Investigations $0 $10 Capital Credits Payable $212 $164

NorthWestern Transmission Deposit $60 $60 Other Deferred Credits Payable $3 $60

Southern Montana Prepayment $423 $564

Total Deferred Debits $489 $642 Total Deferred Credits $239 $245

TOTAL ASSETS $20,677 $21,476 TOTAL EQUITIES, MARGINS, LIABILITIES & OTHER CREDITS $20,677 $21,476

Thanks to the generosity of the Beartooth Electric Cooperative

and Operation Roundup Boards, and concerned members, through their donations a special COVID-19 Emergency Assistance program is now formed to

quickly mobilize electric bill payment credits to help ease the economic strain on

BEC members. Any active member who has been directly affected by the COVID-19 Emergency is encouraged to apply for assistance.

BEC Member applications are available on the BEC website, www.beartoothelectric.com COVID-19 page or call the office to request a mailed copy at 406-446-2310.

In addition to BEC Cares, there are many bill payment and home weatherization assistance programs available to our members including:

• BEC’s Residential Home Energy Assistance

• Operation Round Up

• Montana and Wyoming’s Low Income Energy Assistance (LIEAP) and Weatherization programs- Montana 800-433-1411- Wyoming 800-246-4221

Visit the BEC website or call the office for more information.

BEC CARES COVID-19 EMERGENCY ASSISTANCE

Saturday, May 2, 2020Annual Meeting registration opens at 8:00 a.m. Business meeting begins at 9:00 a.m.

Join us ! You could WIN a $100 bill credit

www.beartoothelectric.com • Beartooth Electric Cooperative • 7BEC Board Book April 28, 2020 | Page 40

Beartooth Electric Cooperative, Inc.PO Box 1110, 1306 Broadway Ave N

Red Lodge, MT 59068406-446-2310 ▪ 800-472-9821

email: [email protected]: www.beartoothelectric.com

f

connect with us !

POWERING UP A NEW DAY East Rosebud, Roscoe, MontanaPhoto By: Tyler Gronbeck, BEC journeyman lineman

Rate Design: How to bill members fairly and efficientlyArleen Boyd and Bill Pascoe, Co-chairs Risk Management Committee

In recent weeks we have sent a lot of information to the membership on rate design. This information included a 12-page brochure that explained the ins and outs of the rate design analysis that has been the focal point of the Risk Management Committee’s work since October 2018. The committee examined alternatives for how to optimize billing methods to collect projected revenue efficiently and charge members equitably.

Rate design was also featured prominently in the Annual Meeting presentation that was mailed to all members. These materials and much more on rate design can be found on our website at MyBEC/Rate Design.

The next rate design information you will receive is an official notice that the Board will be voting on rate design changes at the June 30 Board meeting. Our bylaws require that members be given notice 30 days in advance of any Board vote to adjust rates. With the proposed rate design changes residential and small commercial members would see a 3-part bill with a system charge for the first time. The proposal is revenue neutral for the co-op with BEC revenues from the system charge offset by reductions in the base and energy rates.

You can comment on the proposed rate design changes by contacting the General Manager or any of the Trustees or by attending the June 30 Board meeting.

For more information: contact General Manager Kevin Owens at 406-446-2310, or any Board trustee using the contact information on the website at MyBEC/Board of Trustees.

The Committee’s extensive library of Rate Design documents is available on the BEC website www.beartoothelectric.com, click the Rate Design icon on the home page, or the link at MyBEC/Rate Design.

The Committee’s, “A Closer Look at Rate Design,” brochure and library of Rate Design documents are available on the BEC website.

8 • Beartooth Electric Cooperative • www.beartoothelectric.com BEC Board Book April 28, 2020 | Page 41

FOR IMMEDIATE RELEASE

April 23, 2020

Contact: Kaaren Robbins, Communication & Member Services, 406-446-2310, [email protected].

BEC Cares COVID-19 Emergency Assistance Program Launched to Assist Members

(RED LODGE, MT) – Thanks to the generosity of the BEC and Operation Round Up Boards and generous member donations, the BEC Cares COVID-19 Emergency Assistance program is now formed to quickly mobilize electric bill payment credits to help ease the economic strain on BEC members.

The BEC Cares program is available to active BEC residential members who recently became unemployed, partially unemployed, or cannot work due to the COVID-19 emergency. Bill payment assistance is also available through numerous other assistance programs, including BEC’s Residential Home Energy Assistance program, Operation Round Up, and Montana and Wyoming’s LIEAP programs for income-eligible customers. BEC continues to offer payment plans for those members who may need additional assistance.

“We know this pandemic is deeply affecting many of our members, and we have been working since its start to ensure no one is without electricity, heat or hot water during this time,” said BEC General Manager Kevin P. Owens, PE. “We are in unprecedented times, and it will take continued partnership and creativity to help as many people as possible.”

For more information on this program and other program offerings, visit www.beartoothelectric.com/covid19/.

###


mailto:[email protected]

http://www.beartoothelectric.com/covid19/

BEC CARES COVID-19 EMERGENCY ASSISTANCE

Thanks to the generosity of the BEC and Operation Round Up Boards and generous member donations, a special COVID-19 Emergency Assistance program is now formed to quickly mobilize electric bill payment credits to help ease the economic strain on BEC members. Bill payment assistance for primary home residential accounts is available beginning with April 2020’s bill (March usage). Any active residential account member who has been directly affected by the COVID-19 Emergency is encouraged to apply for assistance.

________________________________________________________________ _______________________________BEC Member First Name Middle Last Name BEC Account #: __________________________________ ___________________________________________________________Primary Contact Phone Number Email

________________________________________________________________ _______________________________Current or Most Recent Employer Employer Phone

BEC Service Location: _____________________________________________________________________________ Street Address

_______________________________________________________________ ______________ ______________City State Zip Code

_______________________________ ______________________________________________________________Spouse/Partner Primary Phone Email

_______________________________________________________________ _______________________________Spouse/Partner Current or Most Recent Employer Employer Phone

Housing Situation: Own Rent ________# adults in household ________# children in household

Please briefly describe how the COVID-19 Emergency has affected you or your household use separate sheet if required0:

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

Have you lost income as a result of contracting the COVID-19 virus or being quarantined by a medical professional or yourself? Yes No

When was your last day of work as a result of the COVID-19 Emergency directives? _______________________

Have you filed a State Unemployment or Federal Paycheck Protection (PPP) claim as a result of COVIFD-19? Yes No

Have you filed a State Unemployment or Federal Paycheck Protection (PPP) claim as a result of COVIFD-19? Yes No

Please attach a copy of your State Unemployment or Federal Paycheck Protection (PPP) approval.

____________________________________ __________ ____________________________________ __________BEC Member/Primary Contact Signature Date Spouse/Partner Signature Date

Please mail or application and supporting documents to Beartooth Electric Cooperative, PO Box 1110, Red Lodge, MT 59068. The BEC Cares COVID-19 Emergency Assistance team meets every Friday to review complete applications (if you are mailing an approval form copy, your application will be reviewed once all paperwork is received). You will receive notice immediately upon review. Thank you!


BOARD REPORT

By: Eric Elton, Line Superintendent

April, 28 2020

CONSTRUCTION, OPERATIONS & MAINTENANCE

• We are still working on keeping the crews separated because of the Covid 19. They are all mapping and working on some line maintenance. The crew installed more bird diverters on the Belfry North Feeder, this is in anticipation to the return of the pelicans.

• The Columbus crew is also working on mapping and a few new services. The mapping is going very well and to date we have mapped 59% of the total system. Just in the past couple weeks the crew has mapped almost 6% of the system.

• Asplundh Tree was chosen for the tree contract this year and will be starting around the first of May. (This is the third consecutive year they have worked for us).

• We installed 5 new services in the month of March. • There was a total of 17 outages system wide in the month of March. • We had 136 individual consumers out of power at some point in the month

of March for a duration of 1935 minutes. Northwestern Energy did have two of our substations out of service on 3/8/20. (Please see attached breakdown sheet).


EDUCATION, SAFETY & LOSS

• Next MECA safety meeting is May 27th. • No lost time accidents to report for the month of March.

TRUCK, TOOLS & EQUIPMENT

• The bucket truck cutover is going very slow because of the Covid and its looking like the 1st of May before we get it back.


MARCH 2020 OUTAGE SUMMARY D

ate

Du

ratio

n (

Min

)

Nu

mb

er

of

Cu

sto

me

rs

Aff

ec

ted

RU

S

Co

de

Ke

y

Cause of Service Interruption (RUS

Designation 1730A-119)

Su

bst

atio

n

OH

/ U

RD

Cu

sto

me

r

Min

ute

s o

f

Inte

rru

ptio

n

03/03/20 90 1 300 Broken jumper Roberts OH 90

03/04/20 180 1 490 Tree through line Nye OH 180

03/04/20 45 10 090 Pole blown over/wind Columbus OH 450

03/04/20 50 7 300 Fuse link pulled apart Edg/From OH 350

03/05/20 60 1 090 Broken jumper /wind Belfry OH 60

03/12/20 135 10 090 Fuse blown/snow Belfry OH 1350

03/12/20 315 6 500 Fuse blown/bad transformer Edg/From OH 1890

03/12/20 85 4 090 Snow loading Belfry OH 340

03/25/20 75 2 090 Snow loading Reed Point OH 150

03/25/20 110 1 090 Snow loading Columbus OH 110




03/27/20 45 2 690 Fuse blown/horses rubbing guy wire Absarokee OH 90

03/30/20 110 7 690 Fuse blown/birds Edg/From OH 770

03/31/20 100 7 090 Fuse blown/snow Nye OH 700

03/31/20 25 37 090 Fuse blown/snow Belfry OH 925

TOTALS 1935 136 15705

03/08/20 35 775 000 Northwestern Energy/bad insulator Belfry OH/URD 27125

03/08/20 35 935 000 Northwestern Energy/bad insulator Red Lodge OH/URD 32725

TOTALS 70 1710 59850

RUS CODE KEY March YTD Substations

000 Transmission 2 8 1 Absarokee

090 Weather 11 17 5 Belfry

110 Planned Outage 0 0 2 Columbus

300 Equipment 2 7 3 Edgar/Fromberg

490 Trees 1 10 2 Nye

500 Transformer 1 1 1 Red Lodge

690 Animals 2 3 4 Reed Point

790 Public Caused 0 2 1 Roberts

Unknown 0 2

{Member Minutes } NWE Major Event Planned All Other Totals

MONTH - March 59,850 0 0 15,705 75,555

YTD 391,200 0 0 244,020 635,220


BEARTOOTH ELECTRIC COOPERATIVE

RED LODGE , MT Kevin Owens, Manager Safety Meeting Report

April 8, 2020 1. TOPICS: Job Briefing, Lockout Tagout and Bear Safety. 2. VIDEOS SHOWN: Power point presentations and videos relating to the topics. 3. REPORT OF ACCIDENTS: Accidents and near miss incidents were discussed during the safety meeting. 4. RECOMMENDATIONS AND COMMENTS: The meeting began with a discussion on the near misses in the surrounding areas. We then went over Job Briefings using a power point presentation. We discussed why we use job briefings as well as ways to possibly improve on the current procedures used. Next, we covered LOTO using a power point presentation and video. We then discussed the policies and procedures that are being used at Beartooth Electric. Lastly, we discussed Bear Safety utilizing a power point presentation as well as videos related to the topic. Thank you again for the opportunity to present at your safety meeting using the Zoom platform. The meeting went well due to the participation of all employees. Thank you for placing safety as a priority during these unusual times. # of Class Hours: 4.5 # of Field Hours: 0 # of Personnel Present: # of Board Members Present: 0 Manager Contacted: Yes Manager Present: Yes Thanks for your help and involvement. Troy Kamps MECA S/LC


EMPLOYEE NAME ATTENDANCE TRAVIS BARKER

JAMES PIHL

JAKE WRIGHT

BILL COLGROVE

MARKUS URBANIK

CONNIE TEACHOUT

MARTY TOMLIN

GUS BEHRENT

BRAD PROPHET

ERIC ELTON

JIM AVENT

SAM WALKOWIAK

MIKE FERGUSON

HUNTER BOOS

LINDA DUKART

KARREN ROBBINS

KEVIN OWENS

STEPHANIE FLETCHER

TERESA NEWCOMER


Delivery Point AnalysisFinal March 2020 Days in month 31

Load FactorDemand Energy Demand Energy Purchased Demand Energy Energy Energy Demand Energy

kW kWh kW kWh % kWh kWh kW kWh Line Loss Line Loss Line Loss Line LossLast Year Last Month 2 Months Past

2020 2019 Mar 2020 Mar 2019 Feb 2020 Jan 2020Absarokee 1,976 1,020,882 2,825 1,181,696 69.4% -30.1% -13.6% 953,309 1,102,936 6.6% 6.7% 8.7% 6.6%Belfry 1,835 924,260 2,703 1,062,664 67.7% -32.1% -13.0% 835,200 973,418 9.6% 8.4% 11.0% 8.6%Columbus 2,322 1,203,361 3,161 1,349,332 69.6% -26.5% -10.8% 1,078,803 1,197,419 33.20 9,960 9.5% 10.3% 10.3% 8.9%E. Rosebud 54 24,545 62 23,398 61.7% -13.0% 4.9% 21,040 19,635 14.3% 16.1% 15.2% 10.5%Edgar 1,151 556,860 1,670 633,422 65.1% -31.1% -12.1% 504,561 573,837 9.4% 9.4% 10.8% 9.7%Luther 738 376,962 946 385,589 68.7% -22.0% -2.2% 349,448 351,934 7.3% 8.7% 9.2% 6.9%Nye 1,172 610,831 1,553 719,271 70.0% -24.5% -15.1% 551,844 652,392 9.7% 9.3% 10.0% 8.1%Red Lodge 2,095 1,025,723 2,740 1,140,046 65.8% -23.5% -10.0% 930,227 1,031,434 126.00 28,097 6.6% 6.6% 5.7% 7.3%Reed Point 644 324,627 891 368,645 67.7% -27.7% -11.9% 297,339 324,889 8.4% 11.9% 10.5% 7.9%Roberts 1,466 765,095 1,991 841,098 70.1% -26.4% -9.0% 711,784 754,443 7.0% 10.3% 11.4% 6.5%

Totals 13,453 6,833,144 18,541 7,705,161 68.3% -27.4% -11.3% 6,233,555 6,982,337 159.20 38,057 8.22% 8.77% 9.61% 7.86%

Note: Above represents kWh purchased information received from NWE based at the new loss percentage rate. It is not clear yet whether they corrected the Sold to BEC kWh to reflect the new loss percentage number or the old loss percentage number.Chart reflects Distribution losses only. NWE charges 2.8% transmission losses for delivery over their system plus. Metering takes place on the low side of all substation transformers with the exception of Columbus Substation. 1% transformer losses are added to all low-side metering, 3.8% cumulative transmission losses at all delivery points except Columbus which is 2.8% transmission losses.

Load Factor = It can be derived from the load profile of the specific device or system of devices. Its value is always less than one because maximum demand is always more than average demand. A high load factor means power usage is relatively constant. Low load factor shows that occasionally a high demand is set. To service that peak, capacity is sitting idle for long periods, thereby imposing higher costs on the system. Electrical rates are designed so that customers with high load factor are charged less overall per kWh. This process along with others is called load balancing or peak shaving.

Purchased Sold Own Use

2020 2019 2020 vs. 2019 2020


TOTALS YTDFeb Apr May Jul Sep Dec

Light & Heavy Duty Trucks 27,097 25,055 0 0 0 0 0 0 0 0 010,845 13,685 0 0 0 0 0 0 0 0 0

2.50 1.83 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!847 1,075 0 0 0 0 0 0 0 0 0

12.80 12.73 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Backhoes, Trailers & Chipper 4,451 2,929 0 0 0 0 0 0 0 0 021 5 0 0 0 0 0 0 0 0 0

211.95 585.82 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!159 55 0 0 0 0 0 0 0 0 0

0.13 0.09 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

2020 FLEET TOTALSFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec31,548 27,984 0 0 0 0 0 0 0 0 0

2019 FLEET TOTALSFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec28,675 36,873 27,303 29,905 29,841 31,882 26,493 28,760 29,605 27,465 30,112

2018 FLEET TOTALSFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec42,363 33,162 28,214 27,305 29,151 30,267 26,469 26,391 26,341 26,808 28,265

2017 FLEET TOTALS YTDJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

32,170 33,652 30,919 27,090 26,658 24,831 27,059 26,864 28,942 28,665 37,678

2016 FLEET TOTALSFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec26,493 27,256 24,639 24,154 23,896 27,516 26,877 25,866 23,664 29,801 33,964Total: 24,995 319,120

Total: 32,540 357,069

YTDJan Total

YTDJan Total

Total: 37,243 361,978

YTDJan Total

Total: 26,138 353,052

YTDJan Total

Total: 29,288 88,820

Gallons of Gas 160 374HPG 0.0 0.2

Hours 33 59Cost Per Hour 136.5 201.4

MPG 9.1 11.3

Total: 4,504 11,884

Cost Per Mile 2.05 2.10Gallons of Gas 1,327 3,249

Total

Total: 24,784 76,936Miles 12,068 36,598


Fleet ManagementExpense TotalsMARCH 2020

Jan Mar Jun Aug Oct Nov


The Beartooth Electric Cooperative (BEC) Board of Trustees hereby notifies co-op members that it will be voting on proposals to adjust rates for all customers classes at the June 30, 2020 Board meeting.

These proposed rate adjustments are the result of a rate design review process conducted by the Board and BEC’s Risk Management Committee that has been underway since October 2018. The proposed rates are not intended to generate additional overall revenue for BEC. Rather, the proposed rates are designed to produce the same amount of revenue from each customer class as the current rates assuming normal weather conditions.

Current and proposed rates for all classes are shown in the following table. The proposed rates would be effective beginning April 1, 2021.

Beartooth Electric Cooperative Member NoticeMay 7, 2020

Rate Class Current Rates Proposed Rates

Residential

Base Charge ($/month) $33.50 $30.00

System Charge ($/kw) $0.00 $2.00

Energy Charge ($/kwh) $0.092384 $0.083868

Small Commercial




Large Commercial- Option l




Large Commercial- Option 2

Base $150.00

System Charge $11.83

Energy Charge $0.051131

Large Commercial- Option 3

Base Charge $174.52



Industrial- Option 1

Base Charge $218.25 $218.25

System Charge $12.40 $15.50

Energy Charge $0.059360 $0.051131


Base Charge $1000




Base Charge $2121.05



Irrigation- Option 1

Base Charge ($/month)* $121.80* $121.80*


Energy Charge ($/kwh) $.054327 $0.051131

* 6 months Base Charge


BEC Bylaws, Article X-Financial Transactions, Section 5: Change in Rates, require notice to be given to Members at least 30 days before a vote by the Board to approve any change in BECs rates. The BEC Board of Trustees hereby notifies co-op members that the board will vote on these proposals at its June 30, 2020 monthly meeting. During the notification period, members may comment on this proposal via USPS at BEC Member Services, P.O. Box 1110, Red Lodge, MT 59068; email at [email protected]; or at the monthly regular board meeting on June 30, 2020.

For additional information, call Kevin Owens, General Manager at (406) 446-2310, or contact any member of the BEC Board of Trustees. Please see the May 2020 Rural Montana, BEC newsletter pages 3-6, for a detailed article on this Member Notice. Also, this notice and documents related to BEC’s Rate Design process are available on the BEC website, www.beartoothelectric.com, under MyBEC/ Member Notices and MyBEC/ Rate Design.

Beartooth Electric Cooperative, Inc. PO Box 1110 1306 Broadway Ave N Red Lodge MT 59068 406-446-2310 www.beartoothelectric.com


RUS Financial and Operating Report Electric Distribution Revision Date 2014

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0572-0032. The time required to complete this information collection is estimated to average 15 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE

FINANCIAL AND OPERATING REPORT ELECTRIC DISTRIBUTION

BORROWER DESIGNATION

PERIOD ENDED

BORROWER NAME INSTRUCTIONS - See help in the online application. This information is analyzed and used to determine the submitter’s financial situation and feasibility for loans and guarantees. You are required by contract and applicable regulations to provide the information. The information provided is subject to the Freedom of Information Act (5 U.S.C. 552)

CERTIFICATION

We recognize that statements contained herein concern a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious or fraudulent statement may render the maker subject to prosecution under Title 18, United States Code Section 1001.

We hereby certify that the entries in this report are in accordance with the accounts and other records of the system and reflect the status of the system to the best of our knowledge and belief.

ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, RUS, WAS IN FORCE DURING THE REPORTING PERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES DURING THE PERIOD COVERED

BY THIS REPORT PURSUANT TO PART 1718 OF 7 CFR CHAPTER XVII (check one of the following)

All of the obligations under the RUS loan documents have been fulfilled in all material respects.

There has been a default in the fulfillment of the obligations under the RUS loan documents. Said default(s) is/are specifically described in Part D of this report.

DATE

PART A. STATEMENT OF OPERATIONS

ITEM YEAR-TO-DATE

LAST YEAR (a)

THIS YEAR (b)

BUDGET (c)

THIS MONTH (d)

1. Operating Revenue and Patronage Capital 2. Power Production Expense 3. Cost of Purchased Power4. Transmission Expense 5. Regional Market Expense 6. Distribution Expense - Operation 7. Distribution Expense - Maintenance 8. Customer Accounts Expense 9. Customer Service and Informational Expense 10. Sales Expense 11. Administrative and General Expense 12. Total Operation & Maintenance Expense (2 thru 11) 13. Depreciation and Amortization Expense 14. Tax Expense - Property & Gross Receipts 15. Tax Expense - Other 16. Interest on Long-Term Debt17. Interest Charged to Construction - Credit 18. Interest Expense - Other 19. Other Deductions 20. Total Cost of Electric Service (12 thru 19) 21. Patronage Capital & Operating Margins (1 minus 20) 22. Non Operating Margins - Interest23. Allowance for Funds Used During Construction 24. Income (Loss) from Equity Investments 25. Non Operating Margins - Other 26. Generation and Transmission Capital Credits 27. Other Capital Credits and Patronage Dividends 28. Extraordinary Items29. Patronage Capital or Margins (21 thru 28)

MT0019

(Prepared with Audited Data)December 2019

Beartooth Electric Cooperative, Inc.

X

Kevin Owens 4/2/2020

8,577,258 8,847,356 8,631,900 816,348

3,175,631 3,378,434 3,248,628 328,815

11,551 10,052 8,853 356

966,566 1,104,026 1,035,393 103,810

614,084 691,279 696,264 43,921

331,930 323,609 392,952 26,119

115,535 113,417 142,978 10,105

6,966 10,809 5,488 2,717

1,205,931 1,233,105 1,151,308 105,844

6,428,194 6,864,731 6,681,864 621,687

1,016,306 1,096,707 1,092,359 92,869

2,011 2,111 2,811 204

605,310 594,079 600,739 48,143

1,192 1,502 1,200 121

1,800 1,800 1,800 150

8,054,813 8,560,930 8,380,773 763,174

522,445 286,426 251,127 53,174

132,512 117,384 98,218 8,107

(3,219) 2,821 (548) (1,293)

50,232 66,865 50,600 9,017

701,970 473,496 399,397 69,005





PERIOD ENDED

INSTRUCTIONS - See help in the online application.

PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT

ITEM YEAR-TO-DATE

ITEM YEAR-TO-DATE

LAST YEAR (a)

THIS YEAR (b)

LAST YEAR (a)

THIS YEAR (b)

1. New Services Connected 5. Miles Transmission

2. Services Retired 6. Miles Distribution – Overhead

3. Total Services in Place 7. Miles Distribution -Underground

4. Idle Services(Exclude Seasonals)

8. Total Miles Energized (5 + 6 + 7)

PART C. BALANCE SHEET ASSETS AND OTHER DEBITS LIABILITIES AND OTHER CREDITS

1. Total Utility Plant in Service 30. Memberships 2. Construction Work in Progress 31. Patronage Capital 3. Total Utility Plant (1 + 2) 32. Operating Margins - Prior Years4. Accum. Provision for Depreciation and Amort. 33. Operating Margins - Current Year 5. Net Utility Plant (3 - 4) 34. Non-Operating Margins 6. Non-Utility Property (Net) 35. Other Margins and Equities7. Investments in Subsidiary Companies 36. Total Margins & Equities (30 thru 35) 8. Invest. in Assoc. Org. - Patronage Capital 37. Long-Term Debt - RUS (Net) 9. Invest. in Assoc. Org. - Other - General Funds 38. Long-Term Debt - FFB - RUS Guaranteed 10. Invest. in Assoc. Org. - Other - Nongeneral Funds 39. Long-Term Debt - Other - RUS Guaranteed11. Investments in Economic Development Projects 40. Long-Term Debt Other (Net) 12. Other Investments 41. Long-Term Debt - RUS - Econ. Devel. (Net)13. Special Funds 42. Payments – Unapplied

14. Total Other Property & Investments (6 thru 13) 43. Total Long-Term Debt

(37 thru 41 - 42) 15. Cash - General Funds 44. Obligations Under Capital Leases - Noncurrent

16. Cash - Construction Funds - Trustee 45. Accumulated Operating Provisions and Asset Retirement Obligations

17. Special Deposits 46. Total Other Noncurrent Liabilities (44 + 45) 18. Temporary Investments 47. Notes Payable19. Notes Receivable (Net) 48. Accounts Payable20. Accounts Receivable - Sales of Energy (Net)

49. Consumers Deposits 21. Accounts Receivable - Other (Net) 22. Renewable Energy Credits 50. Current Maturities Long-Term Debt

23. Materials and Supplies - Electric & Other 51. Current Maturities Long-Term Debt- Economic Development

24. Prepayments 52. Current Maturities Capital Leases25. Other Current and Accrued Assets 53. Other Current and Accrued Liabilities

26. Total Current and Accrued Assets(15 thru 25) 54. Total Current & Accrued Liabilities

(47 thru 53) 27. Regulatory Assets 55. Regulatory Liabilities 28. Other Deferred Debits 56. Other Deferred Credits

29. Total Assets and Other Debits(5+14+26 thru 28) 57. Total Liabilities and Other Credits

(36 + 43 + 46 + 54 thru 56)


MT0019

December 2019

87 91 15.21 15.21

10 35 1,310.83 1,306.89

6,664 6,705 499.74 499.94

452 439 1,825.78 1,822.04

33,821,340 0

90,705 7,799,818

33,912,045 0

16,506,107 286,426

17,405,938 591,969

0 225,167

0 8,903,380

456,903 371,520

0 6,134,478

285,418 0

0 4,373,031

0 0

0 1,534,232

742,321 9,344,797

256,926 0

1 0

0 0

473,299 0

0 584,138

869,292

14,45741,219

0 1,210,667

270,192 0

106,167 0

2,849 566,425

1,993,183 2,402,449

423,153 0

112,882 26,851

20,677,477 20,677,477



FINANCIAL AND OPERATING REPORTELECTRIC DISTRIBUTION


MT0019

INSTRUCTIONS - See help in the online application. PERIOD ENDED December 2019

PART D. NOTES TO FINANCIAL STATEMENTS

RUS Financial and Operating Report Electric Distribution Revision Date 2014BEC Board Book April 28, 2020 | Page 55




MT0019


PART D. CERTIFICATION LOAN DEFAULT NOTES





PERIOD ENDED

INSTRUCTIONS - See help in the online application. PART E. CHANGES IN UTILITY PLANT

PLANT ITEM BALANCE

BEGINNING OF YEAR (a)

ADDITIONS (b)

RETIREMENTS (c)

ADJUSTMENTS AND TRANSFERS

(d)

BALANCE END OF YEAR

(e) 1. Distribution Plant 2. General Plant3. Headquarters Plant 4. Intangibles5. Transmission Plant 6. Regional Transmission and Market

Operation Plant 7. All Other Utility Plant 8. Total Utility Plant in Service (1 thru 7) 9. Construction Work in Progress10. Total Utility Plant (8 + 9)

PART F. MATERIALS AND SUPPLIES

ITEM BALANCE

BEGINNING OF YEAR (a)

PURCHASED (b)

SALVAGED (c)

USED (NET) (d)

SOLD (e)

ADJUSTMENT (f)

BALANCE END OF YEAR

(g) 1. Electric 2. Other

PART G. SERVICE INTERRUPTIONS

ITEM AVERAGE MINUTES PER CONSUMER BY CAUSE

POWER SUPPLIER (a)

MAJOR EVENT (b)

PLANNED (c)

ALL OTHER (d)

TOTAL (e)

1. Present Year 2. Five-Year Average

PART H. EMPLOYEE-HOUR AND PAYROLL STATISTICS 1. Number of Full Time Employees 4. Payroll - Expensed2. Employee - Hours Worked - Regular Time 5. Payroll – Capitalized3. Employee - Hours Worked - Overtime 6. Payroll - Other

PART I. PATRONAGE CAPITAL

ITEM DESCRIPTION THIS YEAR (a)

CUMULATIVE (b)

1. Capital Credits - Distributions a. General Retirements b. Special Retirements c. Total Retirements (a + b)

2. Capital Credits - Received a. Cash Received From Retirement of Patronage Capital bySuppliers of Electric Power

b. Cash Received From Retirement of Patronage Capital byLenders for Credit Extended to the Electric System

c. Total Cash Received (a + b) PART J. DUE FROM CONSUMERS FOR ELECTRIC SERVICE

1. Amount Due Over 60 Days $ 2. Amount Written Off During Year $


ENERGY EFFICIENCY AND CONSERVATION LOAN PROGRAM1. Anticipated Loan Delinquency % 4. Anticipated Loan Default % 2. Actual Loan Delinquency % 5. Actual Loan Default % 3. Total Loan Delinquency Dollars YTD $ 6. Total Loan Default Dollars YTD $

MT0019

December 2019

27,868,195 1,931,681 888,217 28,911,659

2,912,647 11,995 2,924,642

1,320,599 238,307 1,558,906

0 0

426,133 426,133

0 0

0 0

32,527,574 2,181,983 888,217 33,821,340

538,608 (447,903) 90,705

33,066,182 1,734,080 888,217 33,912,045

423,987 1,109,117 5,330 1,276,600 8,358 270,192

0 0

104.254 119.488 20.000 149.767 393.509

109.672 141.904 41.610 102.877 396.063

17 959,906

37,090 270,782

1,088 309,666

404,409 3,391,289

89,607 1,071,993

494,016 4,463,282

50,265

50,265

21,929 7,343





MT0019

INSTRUCTIONS - See help in the online application PERIOD ENDED December 2019

PART K. kWh PURCHASED AND TOTAL COST

No ITEM

(a)

SUPPLIERCODE

(b)

RENEWABLEENERGY

PROGRAMNAME

(c)

RENEWABLEFUEL TYPE

(d)

kWhPURCHASED

(e)

TOTALCOST

(f)

AVERAGECOST

(Cents/kWh)

(g)

INCLUDED INTOTAL COST -

FUEL COST ADJUSTMENT

(h)

INCLUDED INTOTAL COST -

WHEELINGAND OTHER

CHARGES (i)

1 Western Area PowerAdmin

27000 5,722,000 187,948 3.28

2 Morgan StanleyCapital Grp Inc(NY)

12917 71,712,220 3,190,486 4.45

Total 77,434,220 3,378,434 4.36





MT0019

INSTRUCTIONS - See help in the online application PERIOD ENDED December 2019

PART K. kWh PURCHASED AND TOTAL COST

No Comments

1

2





MT0019


PART L. LONG-TERM LEASES

No NAME OF LESSOR(a)

TYPE OF PROPERTY (b)

RENTAL THIS YEAR(c)

TOTAL





PERIOD ENDED

INSTRUCTIONS - See help in the online application. PART M. ANNUAL MEETING AND BOARD DATA

1. Date of Last Annual Meeting 2. Total Number of Members 3. Number of Members Present at Meeting 4. Was Quorum Present?

5. Number of Members Votingby Proxy or Mail

6. Total Number of Board Members 7. Total Amount of Fees and Expensesfor Board Members

$

8. Does Manager HaveWritten Contract?


MT0019

December 2019

5/4/2019 4,536 85 Y

643 7 65,610 Y





MT0019


PART N. LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS

No ITEM BALANCE END OFYEAR

(a)

INTEREST(Billed This Year)

(b)

PRINCIPAL(Billed This Year)

(c)

TOTAL(Billed This Year)

(d)

1 Rural Utilities Service (Excludes RUS -Economic Development Loans)

371,520 22,335 27,181 49,516

2 National Rural Utilities Cooperative FinanceCorporation

2,625,923 189,758 421,464 611,222

3 CoBank, ACB 1,747,108 113,993 596,091 710,084

4 Federal Financing Bank 6,134,478 267,992 197,344 465,336

5 RUS - Economic Development Loans

6 Payments Unapplied 1,534,232

7 Principal Payments Received from UltimateRecipients of IRP Loans

8 Principal Payments Received from UltimateRecipients of REDL Loans

9 Principal Payments Received from UltimateRecipients of EE Loans

TOTAL 9,344,797 594,078 1,242,080 1,836,158





PERIOD ENDED

INSTRUCTIONS - See help in the online application. PART O. POWER REQUIREMENTS DATABASE - ANNUAL SUMMARY

CLASSIFICATION CONSUMER SALES & REVENUE DATA DECEMBER

(a)

AVERAGE NO. CONSUMERS SERVED

(b)

TOTAL YEAR TO DATE

(c) 1. Residential Sales (excluding

seasonal) a. No. Consumers Served

b. kWh Sold

c. Revenue

2. Residential Sales - Seasonal a. No. Consumers Served

b. kWh Sold

c. Revenue 3. Irrigation Sales a. No. Consumers Served

b. kWh Sold

c. Revenue

4. Comm. and Ind. 1000 KVA or Less a. No. Consumers Served

b. kWh Sold

c. Revenue 5. Comm. and Ind. Over 1000 KVA a. No. Consumers Served

b. kWh Soldc. Revenue

6. Public Street & Highway Lighting a. No. Consumers Served


7. Other Sales to Public Authorities a. No. Consumers Served

b. kWh Sold

c. Revenue

8. Sales for Resale - RUS Borrowers a. No. Consumers Served

b. kWh Sold

c. Revenue 9. Sales for Resale - Other a. No. Consumers Served


10. Total No. of Consumers (lines 1a thru 9a) 11. Total kWh Sold (lines 1b thru 9b) 12. Total Revenue Received From Sales of

Electric Energy (lines 1c thru 9c) 13. Transmission Revenue

14. Other Electric Revenue 15. kWh - Own Use 16. Total kWh Purchased

17. Total kWh Generated18. Cost of Purchases and Generation19. Interchange - kWh - Net20. Peak - Sum All kW Input (Metered)

Non-coincident___ Coincident____


MT0019

December 2019

5,664 5,642

56,163,190

7,242,376

0 61

2,629,906

371,248

479 480

9,945,429

1,063,241

1 1

1,670,400

143,071

6,144 6,184

70,408,925

8,819,936

27,421

382,031

77,434,220

3,388,486

X 18,541





PERIOD ENDED

INSTRUCTIONS - See help in the online application. PART P. ENERGY EFFICIENCY PROGRAMS

CLASSIFICATION

ADDED THIS YEAR TOTAL TO DATE No. of

Consumers (a)

Amount Invested

(b)

Estimated MMBTU Savings

(c)

No. of Consumers

(d)

Amount Invested

(e)

Estimated MMBTU Savings

(f) 1. Residential Sales (excluding seasonal) 2. Residential Sales - Seasonal 3. Irrigation Sales4. Comm. and Ind. 1000 KVA or Less5. Comm. and Ind. Over 1000 KVA 6. Public Street and Highway Lighting 7. Other Sales to Public Authorities 8. Sales for Resale – RUS Borrowers9. Sales for Resale – Other 10. Total


MT0019

December 2019

49 77,500 227 49 77,500 227

49 77,500 227 49 77,500 227




INVESTMENTS, LOAN GUARANTEES AND LOANS

BORROWER DESIGNATION MT0019

PERIOD ENDED December 2019

INSTRUCTIONS - Reporting of investments is required by 7 CFR 1717, Subpart N. Investment categories reported on this Part correspond to Balance Sheet items in PartC. Identify all investments in Rural Development with an 'X' in column (e). Both 'Included' and 'Excluded' Investments must be reported. See help in the onlineapplication.

PART Q. SECTION I. INVESTMENTS (See Instructions for definitions of Income or Loss)

No DESCRIPTION

(a)

INCLUDED ($) (b)

EXCLUDED ($) (c)

INCOME OR LOSS ($) (d)

RURALDEVELOPMENT

(e)

2 Investments in Associated Organizations

NRUCFC CAPITAL TERM CERFIFICATES 275,318

FEDERATED,NISC,TRIANGLE,NRTC,MAU 171,889

NRUCFC MBSH, COBANK MBSH 1,000

NRUCFC PAT CAPITAL CREDITS 212,616

BASIN CAPITAL CREDITS 48,203

COBANK CAPITAL CREDITS 33,295

Totals 171,889 570,432

6 Cash - General

1ST INTERSTATE BANK - CHECKING 256,375

WELLS FARGO BANK - CHECKING

BANK OF RED LODGE - CHECKING 1

BEC - WORKING FUNDS 550

Totals 256,926

8 Temporary Investments

1ST INTERSTATE BANK - SAVINGS 344,362

WELLS FARGO BANK - SAVINGS

BANK OF RED LODGE - SAVINGS 128,937

CFC SELECT NOTES

Totals 473,299

9 Accounts and Notes Receivable - NET

EMPLOYEE PAID INSURANCE, OTHERRECEIVABLES

0 14,457

Totals 0 14,457

11 TOTAL INVESTMENTS (1 thru 10) 171,889 1,315,114

RUS Financial and Operating Report Electric Distribution - Investments Revision Date 2014BEC Board Book April 28, 2020 | Page 65







PART Q. SECTION II. LOAN GUARANTEES

No ORGANIZATION

(a)

MATURITY DATE

(b)

ORIGINAL AMOUNT ($) (c)

LOAN BALANCE ($) (d)

RURALDEVELOPMENT

(e)

TOTAL

TOTAL (Included Loan Guarantees Only)

RUS Financial and Operating Report Electric Distribution - Loan Guarantees Revision Date 2014BEC Board Book April 28, 2020 | Page 66







SECTION III. RATIO

RATIO OF INVESTMENTS AND LOAN GUARANTEES TO UTILITY PLANT [Total of Included Investments (Section I, 11b) and Loan Guarantees - Loan Balance (Section II, 5d) to Total Utility Plant (Line 3, PartC) of this report]

0.51 %

SECTION IV. LOANS

No ORGANIZATION

(a)

MATURITY DATE

(b)

ORIGINAL AMOUNT ($) (c)

LOAN BALANCE ($) (d)

RURALDEVELOPMENT

(e)

1 Employees, Officers, Directors

2 Energy Resources Conservation Loans

TOTAL

RUS Financial and Operating Report Electric Distribution - Loans Revision Date 2014BEC Board Book April 28, 2020 | Page 67

Board Agenda Item

Item: 2019 Patronage Allocation to Membership Background: Beartooth Electric Cooperative, Inc. (BEC) allocates its annual

operating margins to its members on an annual basis. Non-member operating margins are held in reserve to be used against losses.

In 2019 BEC margins were as follows: Patronage Capital $ 473,496.31 Less Non-Member Margins (120,204.36) 2019 Assignable $ 353,291.95 0.00 2019 Patronage Allocation $ 353,291.95

Recommendation: It is recommended that the 2019 margins are allocated to the Beartooth Electric Cooperative, Inc. membership in the following manner.

BEC Allocation $ 353,291.95 Non-Operating Reserve $ 0.00

Total Allocation $ 353,291.95

Reviewed by: by Kevin _____________ _4/3/2020_____ Kevin Owens Date _okayed per Brian via email _4/3/2020_____ Brian Van Steeland Date


Notes: Non-member allocations are the following accounts. 415.0, 415.11, 416.0, 416.11, 419, 421.1 & 421.2 For 2019: 415.0 38,097.44 Rev from Merchandising - MT 415.11 2,597.64 Rev from Merchandising - WY 416.0 -37,411.41 Costs from Merchandising - MT 416.11 -463.32 Costs from Merchandising - WY 419 117,384.01 Interest Income 421.1 0.00 Gain on Sale of Asset 421.2 0.00 Loss on Sale of Asset Total 120,204.36


RESOLUTION

AUTHORIZING THE ASSIGNMENT OF THE

2019 OPERATING MARGINS WHEREAS, Beartooth Electric Cooperative, Inc. is a member owned cooperative which is exempt from

Federal Income Taxes Under section 501 (C12) of the Federal Income Tax code. and

WHEREAS, Beartooth Electric Cooperative's assignable margins from operations for the calendar year 2019 totaled $353,291.95. BE IT RESOLVED, that Beartooth Electric Cooperative, Inc. elects to allocate the 2019 Operating Margins

to the Cooperative's Members on a patronage basis for the year 2019 in the amount of $353,291.95.

CERTIFICATE OF SECRETARY I, Arleen Boyd, certify that I am Secretary of the Board of Trustees and that the above is a true excerpt

from the minutes of a regular board meeting of the Board of Trustees of Beartooth Electric

Cooperative, Inc., held on the 28th day of April 2020 at which a quorum was present and the above

portion of the minutes has not been modified nor rescinded.

IN WITNESS WHEREOF, I have set my hand and affixed the seal of Beartooth Electric Cooperative, Inc. this

28 t h day of April, 2020.

(Seal) ____________________________________

Arleen Boyd, Secretary


ADMINISTRATIVE POLICY NO. 637 1. SUBJECT: PAID TIME OFF (PTO) 2. OBJECTIVE:

To establish PTO practices and procedures for Beartooth Electric Cooperative, Inc. (BEC).

3. POLICY:

3.1. PTO provides a bank of hours in which BEC pools sick days, vacation days, and personal days that allows employees to use as the need or desire arises. Employees are entitled to take a certain number of days off with pay, called Personal Time Off (PTO), in accordance with this Policy.

3.2. PTO days should be scheduled at least seven (7) days in advance by submitting a

request on the iVue Employee Self Service (ESS) on which the employee designated the PTO dates requested. The reason for requesting PTO may be provided on such form, but if not, the employee will provide such reason at the Cooperative’s request to avoid scheduling conflicts, to prioritize PTO, or to meet the Cooperative’s needs. If an emergency or unexpected situation arises, employees should give as much advance notice as possible of the need to take a PTO day. The Cooperative will make a reasonable effort to accommodate the employee’s desire. PTO requests shall be answered within seven (7) days after receipt of a request unless exceptional circumstances require a delay.

3.3. PTO can only be taken as it accumulates. 3.4. Each pay period, employees will be credited with 3.846 percent of their annual PTO

entitlement. Employees can then schedule that portion of accumulated PTO required up to a maximum of 80 consecutive work hours unless longer periods are authorized in extreme situations.

3.5. An employee may carry over from one calendar year to another one hundred percent

(100%) of the employee’s yearly hourly accrual based on the schedule below up to a maximum of 400 hours. If an employee accrues more unused PTO hours than the maximum allowable amount on September 1, of each year the Cooperative shall pay such employee within 15 days after September 1, the employee’s hourly wage rate for any accrued, unused PTO hours in excess of the 400 hour maximum allowable.

3.6. Upon termination of their employment, an employee will be paid for all accrued,

unused PTO. 3.7. Employees will accrue PTO at the following rates:

PTO Schedule


Period of Service

Days (8 hours PTO

per day) 0-6 Months 5* 6-12 Months 5

1 Year 18 5 Years 23 10 Years 25 15 Years 27 20 Years 29 25 Years 31 30 Years 33

Max Accrual 400 hours Paid Holidays 9.5 Days

* PTO limited to sickness or accident 3.8. The number of days PTO which an employee is entitled to receive shall be

determined from his/her period of service at the last preceding anniversary date of his/her employment.

3.9. If a holiday falls within an employee’s PTO period, the employee shall be granted

an additional day of his/her regular PTO with the regular pay, or, at the discretion of management, he/she may be required to work and receive an additional day’s pay.

4. Break in Service When an employee leaves the service of BEC for a period of not more than 60 days,

he/she may choose to return to BEC if there remains a vacancy. The former employee may be rehired and their service bridged at the discretion of the General Manager. After 60 days, the former employee may elect to apply for any future job openings at BEC.

5. State and Federal Compliance

To the extent that any state or federal law provides for leaves in addition to the leaves described above, the provisions of such law will be incorporated by reference as if fully set forth herein.

5. 6. RESPONSIBILITY: General Manager shall ensure that the provisions of this policy are followed.

Adopted: 02/22/2013 Attest: /s/ Arleen Boyd


Revised: 06/30/2015; 03/26/2019 Secretary/Treasurer Reference: LV Policy 638, 640, BEC Policy VI-A-35 Review Date: March 2021 Attest: /s/ Julie Lindgren

Board President


Beartooth Electric Cooperative, Inc. ADMINISTRATIVE POLICY NO. 638 1. SUBJECT: SICKNESS, ACCIDENT OR INJURY 2. OBJECTIVE:

2.1. To define the administrative procedures for Beartooth Electric Cooperative, Inc. (BEC)

employees who are absent from work due to sickness, accident or injury. 3. POLICY:

3.1. All employees shall be entitled to Paid Time Off (PTO) on account of sickness, accident or injury as follows:

3.2. As protection for the employee and BEC, employees who have been absent from work

because of illness or injury may be required to obtain a doctor’s release specifically stating that the employee is capable of performing his/her normal duties or assignments. A medical release to return to work will be required of any employee who is absent from work due to illness or injury which may limit the employee’s ability to perform the employee’s regular job duties and functions.

3.2.1. If the cause of the employee’s illness or injury was job related, BEC may consult the

Workers’ Compensation carrier to facilitate the return to work process. A doctor’s written release to return to work may be required.

3.2.2. Upon receipt of a medical release to return to work, BEC shall make reasonable accommodations to return employee to work pursuant to the Americans with Disabilities Act.

3.3. Family Medical Leave (FML):

3.3.1. FML may be available to employees pursuant to Policy AP 640. 3.3.1.

4. Federal and State Compliance

To the extent that any state or federal law provides for leaves in addition to the leaves described above, the provisions of such law will be incorporated by reference as if fully set forth herein.

4. 5. RESPONSIBILITY:

General Manager shall ensure that the provisions of this policy are followed.

Adopted: 02/22/2013 Attest: /s/Arleen Boyd Revised: 06/30/2015, 06/25/2019 Secretary/Treasurer Reference: LV Policy 602, 637 , BEC Policy VI-A-16, 36


Review Date: Attest: /s/Julie Lindgren Board President


Beartooth Electric Cooperative, Inc. ADMINISTRATIVE POLICY NO. 640

1. SUBJECT: FAMILY MEDICAL LEAVE/ MATERNITY LEAVE 2. OBJECTIVE:

To define family medical leave (FML) eligibility and procedures for Beartooth Electric Cooperative, Inc. (BEC) and to meet the obligations of Montana’s maternity leave statute.

3. POLICY:

3.1. FML Leave. BEC believes it should provide an extended unpaid medical leave subject to an employee’s meeting the conditions of the FML policy and approval of the General Manager.

3.2. Employee Eligibility:

3.2.1. The minimum requirements for an employee to be eligible for FML are:

3.2.1.1. Worked for BEC for at least 12 months.

3.2.1.2. Worked at least 1,250 hours in the 12 months prior to when the leave will commence.

3.2.1.3. Has not used all available FML leave in the 12 months prior to the date the

requested leave will begin.

3.2.1.4. There is a medical event which the General Manager determines qualifies for FML.

3.3. Qualifying Events:

These are examples of qualifying events which may result in approval of FML:

3.3.1. The birth and care of the employee’s newborn child.

3.3.2. Placement of a child with the employee for adoption or by the state for foster care. 3.3.3. To care for the employee’s spouse, child/foster child or parent with a serious health

condition (this does not include in-laws). 3.3.4. The employee’s own serious health condition that prevents him or her from performing

the essential functions of the job, including workers’ compensation leave.

3.4. Amount of Timing of Leave:


3.4.1. Eligible employees may be approved to take up to 12 weeks of leave during a rolling twelve-month period. The twelve-month period is determined by measuring backward from the date an employee takes any FML leave. If the leave is for birth, adoption or foster placement of a child with the employee, the leave must be taken within 12 months of the birth or placement. If the leave involves a serious health condition, it can be taken on an intermittent or reduced schedule basis if medically necessary. However, the employee may be temporarily transferred to another position that better accommodates the need for leave.

3.4.2. An extended FML beyond 12 weeks may be approved for any employee to care for an employee’s spouse, son, daughter, parent or next of kin who is a service member in the regular Armed Forces, including National Guard or Reserves, who is undergoing medical treatment for a serious injury or illness.

3.5. Employee Notice:

3.5.1. If the reason for requesting FML is foreseeable (such as planned surgeries or normal

births), the employee must give 30 days’ written notice to the General Manager. If the need for leave is unexpected, the employee must notify the General Manager as soon as possible, and, in no event, more than two days after knowing of the need for leave.

3.5.2. If the reason for leave involves a serious health condition, the employee may be given a certification form that must be completed by the employee’s physician and returned to BEC within 15 calendar days.

3.6. Pay and Benefits During Leave:

3.6.1. FML is unpaid, and BEC requires the employee to use all earned PTO concurrent with

FML during the absence. Employees, who qualify for long-term disability, will receive pay in accordance with the terms of the plan. Employees who qualify for workers’ compensation benefits will receive pay continuation according to the requirements of state law and BEC’s insurance plan. All BEC benefits which operate on an accrual basis will cease to accrue during any period of FML unpaid leave.

3.6.2. The employee’s health, dental and vision insurance coverage will be maintained during

the leave under the same conditions as if the employee had continued to work. This means that the employee must continue to pay the portion he or she normally pays toward the premium or risk cancellation of health, dental and vision benefits during the leave. If the employee has enough PTO, the premiums will be deducted from the employee’s PTO pay. If some or all of the employee’s leave will be without pay, information on how and when to make premium payments will be provided to the employee at the beginning of the leave. If allowed by BEC’s health benefit plans, the employee will be allowed to discontinue coverage and be reinstated into the plans if the employee returns to work on or before expiration of the FML leave. Other BEC paid benefits such as retirement, 401k and life insurance, will also be maintained during the leave under the same conditions as if the


employee had continued to work. An employee on FML leave is not eligible for holiday pay.

3.6.3. Employees requesting a leave to care for a covered family member with a serious

health condition may be required to provide medical certification from the family member’s physician attesting to the nature of the serious health condition, probable length of time treatment will be required, and the reasons that the employee is required to care for this family member. Employees may also be required to provide additional physician’s statements at BEC’s request. Further, the family member may be required to submit to a medical examination by a physician designated by BEC at BEC’s expense.

3.6.4. During the period of leave, an employee may also be required to provide BEC with

additional physician’s statements on request from BEC or BEC’s insurance carrier at reasonable intervals, attesting to the employee’s continued health condition and inability to work. The employee may also be required to submit to medical examinations by physicians designated by BEC at its discretion and at BEC’s expense, at the beginning of, during, or at the end of the leave period, and to provide BEC with access to the employee’s medical records as required.

3.7. Return To Work:

3.7.1. An employee must notify BEC of their intent to return to work, two weeks prior to the

anticipated date of return or of any medically necessary changes in the date of return. Before an employee will be permitted to return from leave, the employee will be required to present BEC with a note from the employee’s physician indicating that the employee is capable of returning to work and performing the essential functions of the employee’s position, with or without reasonable accommodation. Where required, BEC will consider making reasonable accommodation for any disability the employee may have in accordance with applicable laws.

3.7.2. If the employee returns to work on or before the expiration of available FML, the

employee will normally be returned to their former position or a reasonably equivalent job if one is available. If, however, the employee does not return prior to or on the expiration of FML, there is no guarantee of reinstatement. If the employee is medically released to return to work and fails to either report to work or call in with a satisfactory explanation, BEC will treat this as a voluntary resignation.

4. Maternity Leave. BEC will abide by the provisions of Montana’s maternity leave law which

provides a female employee a reasonable leave because of pregnancy and reinstatement to the employee’s original job or an equivalent position unless circumstances have so changed to make it impossible or unreasonable to do so.

5. Federal and State Compliance


4. To the extent that any state or federal law provides for leaves in addition to the leaves described above, the provisions of such law will be incorporated by reference as if fully set forth herein.

65. The General Manager will be responsible to see that the provisions of this policy are followed.

Adopted: 02/22/2013 Attest: /s/ Arleen Boyd Revised: 06/30/2015; 06/25/2019 Secretary/Treasurer Reference: LV Policy 637, 638, BEC Policy VI-A-35 Review Date: March 2021 Attest: /s/ Julie Lindgren

Board President


EMPLOYEE RIGHTSPAID SICK LEAVE AND EXPANDED FAMILY AND MEDICAL LEAVE

UNDER THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT

WAGE AND HOUR DIVISIONUNITED STATES DEPARTMENT OF LABOR

WH1422 REV 03/20

For additional information ��1-866-487-9243

TTY: 1-877-889-5627dol.gov/agencies/whd

1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;

2. has been advised by a health care provider to self-quarantine related to COVID-19;

3. is experiencing COVID-19 symptoms and is seekinga medical diagnosis;

4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);

► ENFORCEMENT

The U.S. Department of Labor’s Wage and Hour Division (WHD) has the authority to investigate and enforce compliancewith the FFCRA. Employers may not discharge, discipline, or otherwise discriminate against any employee who��proceeding under or related to this Act. Employers in violation of the provisions of the FFCRA will be subject to penaltiesand enforcement by WHD.

5. is caring for his or her child whose school orplace of care is closed (or child care provider isunavailable) due to COVID-19 related reasons; or

6. is experiencing any other substantially-similar��Health and Human Services.

The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide their ��These provisions will apply from April 1, 2020 through December 31, 2020.

► PAID LEAVE ENTITLEMENTS

Generally, employers covered under the Act must provide employees:Up to two weeks (80 hours, or a part-time employee’s two-week equivalent) of paid sick leave based on the higher of their regular rate of pay, or the applicable state or Federal minimum wage, paid at:

• 100% for qualifying reasons #1-3 below, up to $511 daily and $5,110 total;• 2/3 for qualifying reasons #4 and 6 below, up to $200 daily and $2,000 total; and• Up to 12 weeks of paid sick leave and expanded family and medical leave paid at 2/3 for qualifying reason #5

below for up to $200 daily and $12,000 total.A part-time employee is eligible for leave for the number of hours that the employee is normally scheduled to work over that period.

► ELIGIBLE EMPLOYEES

In general, employees of private sector employers with fewer than 500 employees, and certain public sectoremployers, are eligible for up to two weeks of fully or partially paid sick leave for COVID-19 related reasons (see below). Employees who have been employed for at least 30 days prior to their leave request may be eligible for up to anadditional 10 weeks of partially paid expanded family and medical leave for reason #5 below.

► QUALIFYING REASONS FOR LEAVE RELATED TO COVID-19

An employee is entitled to take leave related to COVID-19 if the employee is unable to work, including unable totelework, because the employee:


http://www.dol.gov/agencies/whd

04/15/2020

Beartooth Electric Cooperative PO Box 1110 Red Lodge, MT 59068

Dear Beartooth Electric Cooperative,

Thank you, thank you, thank you!

You made our day and changed the lives of people by caring! Thank you for your generosity and support of our community during the COVID-19 pandemic. Your thoughtful donation of $500.00 made on 04/07/2020 is greatly appreciated.

100% of your donation will provide funding to assist nonprofits working on the front lines providing direct services, individuals with emergency needs, and other emergent community needs as they are identified. I am appreciative of those serving on the front lines. They do so every day and are on the ready when people need them the most.

We are working cooperatively with Disaster Emergency Services and engaged a group of volunteers to create the Carbon County COVID-19 Relief Fund advisory committee. The committee consists of people located throughout our cities and county, who are in a position to be familiar with local needs. They are making the fund recommendations for the funds you have entrusted the Foundation with.

One of the inspirational parts of my job is the number of people who act selflessly during times like these. People like you who donate their resources selflessly, whether it’s time, money or connections that will make a difference in the lives of people facing unthinkable emergencies. Especially at a time like this, you turn your focus away from your own challenges and instead, focus on those who are experiencing an even deeper crisis. An 88-year old secluded woman included a note with her recent donation, “I hope this small check will help in your efforts to defeat this awful virus….my admiration for you and your colleagues on the front lines is sincere and endless”.

During our year end communications, we celebrated by sharing this message with you, “There is no power for change greater than a community discovering what it cares about”. Margaret J. Wheatley. The message is even more important today!

Thank you for caring and doing something with it. You are my inspiration!

Thank you,

Tracy Timmons

Executive Director

The Foundation is a registered 501(C)3 organization, Tax I.D. 20-0192255. No goods or services were provided in return for this donation.

122 Hauser Avenue S. • P.O. Box 1871 • Red Lodge, MT • 59068 406.446.2820 • www.rlacf.org • [email protected]


mailto:[email protected]

Documents

April 28, 2020 Board Book · A motion was made by Arleen Boyd and seconded by Ralph Lewis to accept the March 31, 2020 agenda as presented. Motion carried. Voting was unanimous. 5.Approve