Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1e · Government grants (contributions)

  $102,196

• 2a · Program service revenue: COST RECOVERY ADDER

  total $321,019,282 · related or exempt $321,019,282

• 2b · Program service revenue: FERC ASSESSMENT

  total $68,171,151 · related or exempt $68,171,151

• 2c · Program service revenue: ENGINEERING STUDIES

  total $20,810,199 · related or exempt $20,810,199

• 2d · Program service revenue: CONTRACT REVENUE

  total $448,830 · related or exempt $448,830

• 2e · Program service revenue: OTHER TARIFF REVENUE

  total $284,590 · related or exempt $284,590

• 2f · All other program service revenue

  total $2,277,275 · related or exempt $2,277,275

• 3 · Investment income

  total $46,348,071 · excluded $46,348,071

• 7b · Less cost or other basis and sales expenses

  other assets $884,680

• 7c · Gain or loss

  other assets -$884,680

• 7d · Net gain or loss

  total -$884,680 · excluded -$884,680

• 11a · Other revenue: REGULATORY CREDITS

  total $2,268,517 · related or exempt $2,268,517

• 11e · Other revenue, total

  $2,268,517

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $17,642,226 · program services $6,339,186 · management and general $11,303,040

• 7 · Other salaries and wages

  total $143,727,451 · program services $110,520,603 · management and general $33,206,848

• 8 · Pension plan contributions

  total $11,814,481 · program services $8,642,381 · management and general $3,172,100

• 9 · Other employee benefits

  total $20,757,998 · program services $16,528,529 · management and general $4,229,469

• 10 · Payroll taxes

  total $10,879,093 · program services $8,425,652 · management and general $2,453,441

• 11b · Fees: legal

  total $3,599,026 · program services $2,606,323 · management and general $992,703

• 11c · Fees: accounting

  total $186,897 · management and general $186,897

• 11g · Fees: other

  total $54,711,302 · program services $47,486,859 · management and general $7,224,443

• 13 · Office expenses

  total $6,560,638 · program services $4,710,882 · management and general $1,849,756

• 14 · Information technology

  total $28,948,339 · program services $26,990,427 · management and general $1,957,912

• 16 · Occupancy

  total $13,269,834 · program services $9,609,675 · management and general $3,660,159

• 17 · Travel

  total $4,647,727 · program services $1,567,785 · management and general $3,079,942

• 19 · Conferences, conventions and meetings

  total $768,944 · program services $480,256 · management and general $288,688

• 20 · Interest

  total $36,226,121 · program services $36,226,121

• 22 · Depreciation, depletion and amortization

  total $31,819,335 · program services $31,819,335

• 23 · Insurance

  total $3,122,328 · management and general $3,122,328

• 24a · Other expenses: FERC ASSESSMENT

  total $68,171,151 · program services $68,171,151 · management and general $0

• 24b · Other expenses: DUES AND SUBSCRIPTIONS

  total $2,025,501 · program services $1,246,518 · management and general $778,983

• 24c · Other expenses: REPAIRS AND MAINTENANCE

  total $821,086 · program services $594,609 · management and general $226,477

• 24d · Other expenses: HIRING/RETENTION COST

  total $421,269 · program services $421,269 · management and general $0

• 24e · All other expenses

  total $724,684 · program services $141,082 · management and general $583,602

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $27,453,751 · end of year $21,608,318

• 2 · Savings and temporary cash investments

  beginning of year $2,205,515,274 · end of year $3,305,071,352

• 4 · Accounts receivable

  beginning of year $32,951,141 · end of year $29,037,504

• 9 · Prepaid expenses and deferred charges

  beginning of year $19,554,621 · end of year $22,459,150

• 10a · Land, buildings and equipment: cost or other basis

  $612,663,071

• 10b · Land, buildings and equipment: accumulated depreciation

  $523,075,353

• 10c · Land, buildings and equipment, net

  beginning of year $86,587,217 · end of year $89,587,718

• 15 · Other assets

  beginning of year $73,944,700 · end of year $98,542,323

• 17 · Accounts payable and accrued expenses

  beginning of year $90,769,059 · end of year $113,638,448

• 19 · Deferred revenue

  beginning of year $15,821,203 · end of year $12,360,502

• 24 · Unsecured notes and loans payable

  beginning of year $274,317,852 · end of year $274,355,945

• 25 · Other liabilities

  beginning of year $2,065,098,590 · end of year $3,165,951,470

• 27 · Net assets without donor restrictions

  beginning of year $0 · end of year $0

The filer's explanations (Part III)

PART I, LINE 1A

MIDCONTINENT INDEPENDENT SYSTEM OPERATOR, INC. USED CHARTER TRAVEL DURING CALENDAR YEAR 2022. NON-QUANTITATIVE FACTORS, AS WELL AS THE COST BENEFIT, WERE CONSIDERED FOR EACH TRIP. ALL EMPLOYEES ARE ABLE TO USE CHARTER TRAVEL. IT IS NOT INCLUDED IN TAXABLE INCOME AS IT IS A BUSINESS EXPENSE. RESIDENCE (APARTMENT) IN CARMEL IS AVAILABLE FOR OFFICERS THAT DO NOT LIVE IN CARMEL, IN LIEU OF A HOTEL, AFTER A COST-BENEFIT ANALYSIS WAS DONE WHICH REVEALED IT WAS MORE COST EFFECTIVE. HOUSING IS NOT INCLUDED IN TAXABLE INCOME AS IT IS A BUSINESS EXPENSE.

PART I, LINE 4A:

UNDER AN INVOLUNTARY TERMINATION DUE TO POSITION ELIMINATION FROM A JOB RESTRUCTURING, REDUCTION IN FORCE, OR REORGANIZATION, AN EMPLOYEE IS ELIGIBLE FOR SEVERANCE BENEFITS INCLUDING, SALARY CONTINUATION, PAYMENT OF COBRA, AND OUTPLACEMENT SERVICES. SEVERANCE PAYMENTS ARE DETERMINED BY A BASELINE SEVERANCE, I.E., THE EMPLOYEE'S GRADE AT MISO AS OF THE SEVERANCE DATE, AND YEARS OF CONSECUTIVE SERVICE. THE EMPLOYEE IS REQUIRED TO SIGN A RELEASE IN ORDER TO RECEIVE THE SEVERANCE COMPENSATION AND BENEFITS. SEVERANCE PAYMENTS WERE MADE DURING CALENDAR YEAR 2022 TO THE FOLLOWING LISTED PERSON IN PART VII: KEVIN CARINGER - $147,085

PART I, LINE 4B:

THE CONTRIBUTIONS CREDITED TO A PARTICIPANT'S SERP ACCOUNT FOR A GIVEN PLAN YEAR SHALL BE EQUAL TO THE FOLLOWING AMOUNTS: A. THE AMOUNT OF EMPLOYER CONTRIBUTIONS CREDITED TO A PARTICIPANT'S ACCOUNT FOR A GIVEN PLAN YEAR SHALL BE EQUAL TO 15% OF THE PARTICIPANT'S PLAN YEAR COMPENSATION. B. EMPLOYER MAY, AT ITS SOLE DISCRETION, MAKE ADDITIONAL CONTRIBUTIONS FOR ANY ONE PARTICIPANT OR ALL PARTICIPANTS. C. THE CONTRIBUTION FOR CEO COMPENSATION SHALL BE 20% OF PLAN YEAR COMPENSATION. FOR THE PURPOSE OF DETERMINING THE EMPLOYER CONTRIBUTION, THE PARTICIPANT'S PLAN YEAR COMPENSATION SHALL BE PRORATED FOR A PARTIAL PLAN YEAR OF ACTIVE PARTICIPATION. THE EMPLOYER MAY, AT ITS SOLE DISCRETION, MAKE ADDITIONAL CONTRIBUTIONS FOR ANY ONE PARTICIPANT OR ALL PARTICIPANTS OF THE PLAN YEAR FOR WHICH THE CONTRIBUTIONS ARE MADE.

PART I, LINE 7:

EVERY REGULAR FULL TIME EMPLOYEE HAS THE OPPORTUNITY TO EARN AN INCENTIVE AWARD BASED ON THE ACHIEVEMENT OF CORPORATE GOALS. WHEN ELIGIBILITY IS ESTABLISHED, A TARGET PAYOUT FOR SHORT TERM INCENTIVE PERFORMANCE IS ESTABLISHED FOR THE EMPLOYEE. THIS TARGET MAY DEPEND ON A NUMBER OF FACTORS INCLUDING THE EMPLOYEE'S ROLE IN THE ORGANIZATION, THE EMPLOYEE'S IMPACT ON ACHIEVING THE LONG TERM GOALS, OR MARKET FACTORS. THESE TARGETS MAY BE ADJUSTED FOR INDIVIDUAL EMPLOYEES AT THE DISCRETION OF THE BOARD OR THE CHIEF EXECUTIVE OFFICER FOR NON-OFFICER PLAN PARTICIPANTS.