This document is Wolverine Power Supply Cooperative's 2014 annual report. It provides an overview of Wolverine, including that it is a generation and transmission cooperative that supplies power to five distribution cooperatives. It discusses Wolverine's financial highlights for 2014, including operating revenue, purchased power costs, energy generated and sold. It also summarizes some of Wolverine's transmission projects completed in 2014 and discusses its efforts to increase renewable energy and meet Michigan's renewable portfolio standard.

1. portfolio
writing & design
JEANNINE TAYLOR

2. Wolverine Power Supply Cooperative, Inc. Annual Report 2014 3
2014 Annual Report
Foundation for a
Bright Future
Wolverine Power Supply Cooperative, Inc.
10125 West Watergate Road
Cadillac, Michigan 49601
Tel: (231) 775-5700
Website: www.wpsci.com
Wolverine Power Supply Cooperative, Inc. Annual Report 2014 01
CONTENTS
Wolverine - At A Glance
02 Who We Are. What We Do.
2014 Financial Report
29 Independent Auditor’s Report
30 Consolidated Financial Statements and Notes
46 Consolidating Financial Statements
A Solid Foundation
06 Message from Chairman and CEO
08 Member Cooperatives
10 Board of Directors
12 Member Management
13 Wolverine Management
14 Financial Highlights
16 Competitive Power Supply
17 Reliable Transmission
A Bright Future
20 for our Employees
Safety Culture
Workforce Training
Leadership Program
22 for our Communities
Wolverine Employees Give Back
Special Events
Community Involvement
24 for our Wolverine Family
Alpine Power Plant
New Headquarters
New Wind Power Agreement
Service Centers
Bright Future
Foundation for a
MISSION
To provide outstanding
service to our members
by delivering reliable,
competitive power supply.
CORE VALUES
MEMBER SERVICES
We exist for and strive to
provide an unsurpassed
level of service to our
members. We are
committed to cooperative
principles.
INTEGRITY
We adhere to the highest
ethical standards in all
our business interactions.
We are dedicated to
serving with honesty and
accountability.
ENVIRONMENTAL
STEWARDSHIP
We live in Michigan
and are committed to
the thoughtful use of
environmental resources in
our state. We manage our
cooperative in a manner
consistent with being a
good neighbor.
COMMITMENT TO
EMPLOYEES
We offer opportunities for
personal and professional
growth and support
family and community.
We are committed to a
robust safety program and
outstanding safety record.
We embrace challenge and
hard work and celebrate
creativity and innovation.
ANNUAL REPORT | Writing & Design

3. Wolverine Power Supply Cooperative, Inc. Annual Report 2014 0302 Wolverine Power Supply Cooperative, Inc. Annual Report 2014
Wolverine - At A Glance
Who We Are. What We Do.
268,000MEMBER CONSUMERS
COAL
53.6%
OIL
3.5%
GAS
18.4%
HYDRO
3.2%
NUCLEAR
16.0%
RENEWABLES
5.3%
730 MEGAWATTSBASE LOAD | INTERMEDIATE | PEAKING
123EMPLOYEES
5DISTRIBUTION
MEMBERS
2ALTERNATIVE
ELECTRICSUPPLIERS
GENERATING
FACILITIES
6
Wolverine Power Supply Cooperative, Inc. is a
generation and transmission electric cooperative
headquartered in Cadillac, Michigan. We are a not-
for-profit member-owned cooperative that supplies
wholesale electric power to our members. We are
governed by a Board of Directors comprised of two
directors from each of our seven members.
Wolverine was formed January 1, 1983, resulting
from the merger of Wolverine Electric Cooperative
in Big Rapids, and Northern Michigan Electric
Cooperative in Boyne City. Both Wolverine Electric
and Northern Michigan Electric were originally
chartered in 1948.
MEMBER-OWNED
NOT-FOR-PROFIT
GENERATION &
TRANSMISSION
C O OP ERATIVE
Service areas of our five distribution
member cooperatives. Our members
have served rural areas of Michigan’s
Lower Peninsula for over 75 years.
MEMBER SERVICE AREAS
Our transmission system ensures
the reliable delivery of power to
our members. Along with our 1,600
miles of lines, the system includes
44 transmission stations and 140
distribution substations.
TRANSMISSION SYSTEM
Our peaking and intermediate
power plants are located in Tower,
Gaylord, Hersey, Vestaburg, Burnips,
and Belleville. We receive base load
supply from the Ohio Valley Electric
Corporation (OVEC) and Campbell
3 plants, and purchase renewable
energy from the Harvest Wind Farm
and Thunder Bay Hydro.
GENERATION LOCATIONS
TRANSMISSION
STATIONS
44
DISTRIBUTION
SUBSTATIONS
140
MILES
1,600
TRANSMISSION
LINES
FOUNDING
MEMBER
1998
ANNUAL REPORT | Writing & Design
Wolverine Power Supply Cooperative, Inc. Annual Report 2014 0504 Wolverine Power Supply Cooperative, Inc. Annual Report 2014
FoundationA Solid
The number of consumer-
members and businesses served
by electric co-ops in Michigan.750,000 The number of people employed
by electric co-ops in Michigan.770
The amount that Michigan’s
electric cooperatives pay in
property taxes annually.$14.5M
The number of miles of
energized line Michigan’s
cooperatives maintain.39,000
The old saying goes, “a building is only as strong
as its foundation”. For over 75 years, Wolverine’s
members have been the foundation we’ve built from
in order to provide outstanding service and reliable
transmission at an affordable rate.
Wolverine, its Board of Directors and members
continue to remain focused on achieving a five-point
power supply strategy that encompasses acquiring
and leveraging our generating assets and power
supply portfolio in order to deliver long-term price
stability and competitiveness, while demonstrating
environmental stewardship.
FIVE-POINT
POWER SUPPLY
STRATEGY
DIVERSITY
Fuel/Counterparty
ASSET
OWNERSHIP
LONG-TERM
PRICE
STABILITY
COMPETITIVE
RATES
ENVIRONMENTAL
STEWARDSHIP
In the early 1930s, only one in ten rural homes
and farms had electricity. President Roosevelt
established the Rural Electrification
Administration (REA) Act that was passed
in 1934, which provided federal assistance
to accomplish rural electrification. Today,
approximately 99% of the nation’s farms have
electric service.

4. Wolverine Power Supply Cooperative, Inc. Annual Report 2014 1514 Wolverine Power Supply Cooperative, Inc. Annual Report 2014
2014 Financial Highlights
ITEM 2014 2013 % DIFFERENCE +(-)
Assets $667,751,734 $685,248,608 (2.6%)
Operating Revenue $402,574,248 $376,583,576 6.9%
Purchased Power $292,963,378 $268,184,642 9.2%
Fuel $10,419,257 $12,364,941 (15.7%)
Depreciation/Amortization $23,259,135 $22,020,087 5.6%
Interest Expense $21,210,026 $15,871,290 33.6%
Net Margins $16,802,921 $21,337,449 (21.3%)
Equity, % of Assets 27 25 8.0%
Full Time Employees 123 117 5.1%
Energy Purchased (MWh) 5,080,761 4,932,925 3.0%
Energy Generated (MWh) 177,481 200,007 (11.3%)
Energy Sold to Distribution Members (MWh) 3,149,276 3,116,140 1.1%
Line Loss % 3.0 2.3 30.4%
Bundled Rate to Distribution Members ($/MWh) 81.18 78.88 2.9%
PEAK DEMAND
for Distribution Members (MW)
BUNDLED RATE
to Distribution Members ($/MWh)
ENERGY GENERATED
(MWh)
ENERGY SOLD
to Distribution Members (MWh)
OPERATING REVENUE
($ Millions)
OUTSTANDING
LONG-TERM DEBT
($ Millions)
Wolverine Power Supply Cooperative, Inc. Annual Report 2014 1716 Wolverine Power Supply Cooperative, Inc. Annual Report 2014
TRANSMISSIONSTRUCTURE/EQUIPMENTREPLACEMENT
This project included replacement of old or damaged
poles, line modifications for upgrades to road/
highway crossings, and other joint use requirements
(distribution underbuild). The pole replacement
program consists of replacing poles identified
for removal during testing and other inspections.
Wolverine’s poles and insulators were upgraded
to prepare for future 138 kV operation. Wolverine
completed work on approximately 250 poles in 2014.
KARLIN TO COPEMISH (REBUILD 11 MILES)
This 69 kV transmission line segment required
additional capacity due to load growth on the
Wolverine transmission system. This project was a
complete replacement of the line, designed and built
to Wolverine’s new transmission standard. The larger
conductor and increased ground clearance of this
new design increased the capacity of the line by over
a factor of seven. Additionally, the new transmission
standard includes spacing and line insulation that
will allow a future increase in operating voltage from
69 kV to 138 kV, doubling the capacity of the line at
that time. The completion of this project finished the
Grawn to Copemish breaker-to-breaker line rebuild,
providing accurate coordination of the protective
relaying.
PORTLAND TO NORTH SHADE (REBUILD 28 MILES)
In addition to needing more transmission line
capacity, this 69 kV transmission line was built to
1950’s code and is located in a high density farming
area. The age and condition of this conductor made
it susceptible to outages due to contact by farming
equipment or ice and wind events.
In 2001, Wolverine began a five-year planning
process to assess the construction needs of its
infrastructure in order to continually provide reliable
power supply. It is a coordinated effort where
Wolverine’s member-cooperative engineers and
operations personnel provide significant input and
review the final recommendations for all distribution
and several key transmission upgrades.
In 2014, transmission construction continued to
be the primary component of Plan spending as
Wolverine continued implementing its long-term
commitment to the Board of Directors and members
to update aging transmission infrastructure.
Approximately $22 million was allocated for 2014
transmission expenditures in the Plan for 39 miles
of transmission line rebuilds and modifications to
several transmission stations.
WOLVERINE'S FIVE-YEAR
CONSTRUCTION WORK PLAN IS
A CULMINATION OF MONTHS
OF ENGINEERING WORK AND
COMPREHENSIVE NEEDS
ASSESSMENTS WITH MEMBER
COOPERATIVES.
Michigan’s Renewable Portfolio Standard requires
that all electric providers generate or purchase at
least 10% of their energy from renewable resources
by 2015. In 2014, 5.3% of Wolverine’s energy came
from renewable resources, including wind, solar,
biofuels, biomass, solid waste incineration, and
wood.
Competitive Power Supply
A Diverse Energy Portfolio
Within the past 18 months, Wolverine has signed
two additional wind energy Purchase Power
Agreements (PPA) in order to meet this Standard
and further diversify its portfolio. One project, the
Deerfield Wind Energy Project, will bring Wolverine’s
renewable resource level to 15% in 2017, exceeding
the requirement of 10%. The second project will
increase this level to over 20%.
2017 Projected
Fuel Mix
One Wind Energy Project
Coal
OilGas
Hydro
Nuclear
R
enewables
2014 Fuel Mix
Coal
Oil
Gas
Hydro
Nucle
ar Renewables
2017 Projected
Fuel Mix
Two Wind Energy Projects
Coal
Oil
GasHydro
Nuclear
Ren
ewables
Reliable Transmission
ANNUAL REPORT | Writing & Design

5. DIGITAL NEWSLETTER | Writing & Design
www.WolverinePluggedIn.com

6. WEBSITE | Writing & Design

7. WEBSITE | Writing & Design

8. WEBSITE | Writing & Design

9. SECURITY POSTERS | Writing & Design

10. LOGOS | Design

11. NEWSLETTER | Writing
Behavior a Key to Safety
The ultimate goal of Wolverine’s Safety Department is to have a zero-injury culture. The best way to
accomplish this is to provide safe working conditions, ample safety training, and the highest safety
standards. These are all key elements that Wolverine can control. The one element that can’t be
controlled, however, is individual behavior.
Recently, there have been several near misses and recordable incidents on Wolverine property. While
these incidents cannot be erased, they can be evaluated to understand the what, how, and why in order
to prevent them from happening again.
The majority of incidents boil down to individual behavior. One behavioral safety study says that “80 to
95 percent of all accidents are triggered by unsafe behaviors, which tend to interact with other negative
features inherent in workflow processes or present in the working environment” (Psychology of
Behavioral Safety). The study also says that unsafe behavior often occurs because most people have
never been hurt, so they continue to do the job the same way they always have.
Another theory linking behavior and safety
incidents comes from H.W. Heinrich, an
industrial safety pioneer from the 1930s
who developed what is known as
Heinrich’s Law. This law states “that in a
workplace, for every accident that causes a
major injury, there are 29 accidents that
cause minor injuries and 300 accidents that
cause no injuries”. Heinrich proposed that
88% of workplace accidents were caused
by unsafe acts, 10% were the result of
unsafe equipment or conditions, and 2%
were unavoidable.
Wolverine is committed to the safety of every employee. Please take the time, both at work and at
home, to evaluate the safety of your activities and practices. Hazard recognition is a skill that helps
prevent incidents from occurring in the first place. We strongly encourage you to look out for one
another and speak up when something doesn’t seem right. This will go a long way in accomplishing a
zero-injury safety culture.
The safety pyramid represents Heinrich’s theory that all safety incidents
are linked in some way; unsafe acts can lead to near misses, which can
lead to minor injuries, which can lead to severe injuries or even death.

12. NEWSLETTER | Writing
Guatemala Suitcase Project
The locals in the small community of Buena Vista recently
received approximately 450 pounds of donated items sent
over in nine suitcases with the Partners for Power team.
Wolverine’s Engineering Assistant, Laurie Millen,
spearheaded the project, coordinating with the Michigan
cooperatives to collect suitcases and items. “I consider it a
true privilege to have helped coordinate the humanitarian
suitcases for the international trip! I loved working with the
scouting group on creating the list of what was needed and
then working with the co-op families to fill the suitcases,”
stated Millen.
The suitcases were filled with items donated by Cherryland,
Great Lakes, HomeWorks, Midwest, Wolverine, and
Cloverland. Items included: school supplies (scissors,
markers, glue sticks, paper, pens/pencils, pads of paper,
pencil sharpeners, colored pencils, etc.), flip flops/crock
shoes, string bags/sling backpacks, toothbrushes,
toothpaste, dental floss, mouthwash, stuffed animals,
sweatshirts/t-shirts of all sizes, small sewing kits, stocking caps, baseball hats, soccer balls, a basketball,
a football, several air pumps, extra needles for the air pumps, soccer nets, and basketball nets. “It was
like filling an “Operation Christmas Child” shoebox for Samaritan’s Purse – only much larger”, said
Millen. “There are so many small things, like crayons, markers and glue sticks that we take for granted
that mean a lot to kids and families that don’t have regular access to those items. You never know what
impact or meaning a pair of shoes, a small sewing kit, a sweatshirt, or a stuffed animal will have on
someone’s life. I feel that the suitcases were our way of letting the people of Buena Vista know that we
care about them.”
A shipping box was also delivered to Guatemala with larger construction items, and Millen was able to
include a basketball backboard, rim and hardware, along with individual pieces of plexiglass, glass
cutters, and caulk to replace broken school windows in the village. “I can’t wait to hear the stories and
see the pictures when the team returns – it’s an amazing opportunity for all of us to experience whether
we are in Guatemala doing the actual work, or back home praying for the safety of our team and the
families impacted by the electrification.”

13. ARTICLE/COVER STORY | Writing
Plus!Ficabo. Alitae labo.
Ficabo. Alitae labo.
Ficabo. Alitae labo.
MICHIGANCOUNTRY LINES
February 2016
Great Lakes Energy Cooperative
Keeping
Soil Healthy
Gypsum’s Role In Agriculture
And Electricity

14. ARTICLE/COVER STORY | Writing
W
e can grow more food, but we can’t grow
more land. So, how do we protect our
planet and get the most out of every acre?
It starts with healthy soil. Soil is everything to a
farmer. It houses the nutrients, minerals and water
for crops to grow. Essential nutrients like nitrogen,
phosphorus, potassium, magnesium, calcium and
sulfur are the life-blood of every plant and are
crucial to their survival. When the soil is lacking any
of these key nutrients, a farmer’s crops will know it.
Brian Stratton knows this all too well. Stratton is
a third generation farmer in Vestaburg, MI, and
a member of HomeWorks Tri-County Electric
Cooperative. His family began farming the area in
1909, and Stratton continues to cultivate the soil—
over 800 acres of it. His crops, mainly white winter
wheat, dry edible beans and corn, help feed people
in the United States, but also in places like Italy,
Spain, China and Pakistan.
Stratton leases 80 acres of farmland from Wolverine
Power Cooperative near its Vestaburg Power Plant.
He started farming this ground in 2010, planting
his rotation crops as well as rye and switchgrass
wildlife plots. After testing the soil, he found that
it was low in calcium and sulfur. “With low calcium
Keeping
Soil Healthy
Gypsum’s Role In Agriculture
And Electricity
By Jeannine Taylor
Brian Stratton is a third generation farmer in
Vestaburg, MI, and a member of HomeWorks
Tri-County Electric Cooperative.
14 FEBRUARY 2016

15. ARTICLE/COVER STORY | Writing
and sulfur levels, you aren’t going to be able to take
advantage of the nutrients that are there,” Stratton
explains. “You’ve got to have all these things
balanced as much as possible for the whole system
to work efficiently.”
So, why was the soil lacking sulfur? A big reason is
because coal-fired power plants have greatly reduced
sulfur emissions into the air. When the Clean Air Act
Amendments were passed in 1990, coal-fired plants
were required to reduce their sulfur dioxide emissions.
Over time, new rules continued to decrease sulfur
dioxide emission limits, ultimately requiring coal-fired
plants to install environmental control equipment,
such as scrubbers, to meet the new limits.
An unintended result is that crops are no longer
receiving sufficient sulfur from the atmosphere.
Coal-fired plant owners, such as the Ohio Valley
Electric Corporation’s (OVEC) Kyger Creek
and Clifty Creek Plants, of which Wolverine is a
partial owner, have spent over $1 billion installing
environmental controls to capture and remove
sulfur dioxide emissions. A process known as flue
gas desulfurization (FGD) scrubs the sulfur dioxide
from the power plant exhaust by using a limestone
slurry that contains calcium. The sulfur and calcium
react to produce calcium sulfite, and then oxygen is
added to create calcium sulfate, otherwise known
as synthetic gypsum.
This high-quality gypsum is becoming a hot
commodity for beneficial reuse in everything from wall
board to soil amendment fertilizers. For a by-product
like synthetic gypsum to be considered for reuse, it
must provide a functional benefit to end users and
meet or exceed the specifications of the virgin
material that it is replacing.
Continued on page 18
In fact, the Michigan Department of Environmental
Quality (MDEQ) is a strong supporter of beneficial
reuse programs. Duane Roskoskey, with MDEQ’s
Office of Waste Management and Radiological
Protection, said they promote the beneficial reuse
of industrial by-products such as FGD, coal ash,
cement/lime kiln dust, foundry sand and paper
mill sludge. “Since 2009, the amount of industrial
by-products reused in Michigan has more than
doubled to over 900,000 tons per year,” Roskoskey
explains. “The MDEQ recognizes the benefits of
adding FGD to agricultural soils—FGD contains both
calcium and sulfur, which are needed micronutrients,
for most crops.” Over 36,000 tons of FGD were
reused in Michigan in 2014.
Gabe Coriell, OVEC’s senior environmental
specialist, and a part-time farmer, did a great deal
of research on synthetic gypsum and its potential
for beneficial use. He contacted professors at Ohio
State University, who had performed studies on
synthetic gypsum and its role as a soil amendment,
to learn about their findings. He also contacted ag
professionals that were using synthetic gypsum and
learned that it was successfully conditioning the soil
by adding the level of sulfur and calcium needed for
better plant growth. Finally, Coriell talked to several
companies who market synthetic gypsum products
and found an established one which had a set of
specifications required for its products.
Coriell decided to work with Charah, a company
based in Louisville, KY, that provides coal
combustion product management and power
OVEC's synthetic gypsum being loaded for transport to Charah to
make SUL4R-PLUS Fertilizer.
Caption: OVEC’s synthetic gypsum used to manufacture soil
amendment fertilizer.
15MICHIGAN COUNTRY LINES

16. ARTICLE/COVER STORY | Writing
plant support services for the coal-fired electric
utility industry. While Charah has been around
since 1987, they just recently began manufacturing
a product called SUL4R-PLUS®
Fertilizer, a patent-
pending pelletized calcium sulfate product
made from synthetic gypsum. “Charah may be
new to gypsum,” Coriell says, “but they’ve been
in business a long time and have an innovative
product that is very attractive. They have a newer
process in the market and it is working.”
Stratton agrees. He has been using SUL4R-PLUS
Fertilizer on his crops and is currently participating
in a yield study with Charah to gather data and
measure its effectiveness on the property he leases
from Wolverine. “I like the pelletized product
because it’s a much friendlier product to handle,”
Stratton says. “It spreads more evenly and you don’t
have the dust to contend with.” Results from the
first year’s use are coming in and, despite a heavy
dose of rain that caused root rot to his cranberry
beans, the yield results look promising.
With the new products on the market today, like
SUL4R-PLUS, Stratton says his crops are getting
the same sulfur they used to from the atmosphere,
but now it’s through a different route. The key is to
replenish the nutrient levels in the soil so plants can
achieve maximum growth. “With farm crop plants,
it’s the same as with our own bodies,” Stratton
explains. “The more attention you pay to your own
nutrition, the healthier you’re going to be. It’s no
different for a plant.”
Jeannine Taylor is communications and member relations director
for Wolverine Power Cooperative.
Continued from page 15
Keeping Soil Healthy Five Benefits Of Gypsum
1. Source of calcium and sulfur for plant nutrition.
Plants are becoming more sulfur-deficient, and
the soil is not supplying enough of it. Gypsum
is an excellent source of sulfur for plant nutrition
and improving crop yield.
Meanwhile, calcium is essential for most nutrients
to be absorbed by plant roots.
2. Improves acid soils and treats aluminum
toxicity. One of gypsum’s main advantages is its
ability to reduce aluminum toxicity, which often
accompanies soil acidity, particularly in subsoils.
Gypsum can improve some acid soils even
beyond what lime can do for them, which makes
it possible to have deeper rooting with resulting
benefits to the crops.
3. Improves soil structure. Soil needs a certain
mass to give it a favorable structure for root
growth and air and water movement. Gypsum has
been used to improve this aggregation in soils.
Soluble calcium also enhances soil aggregation
and porosity to improve water infiltration.
4. Improves water infiltration. Gypsum also
improves the ability of soil to drain and not
become waterlogged due to a combination of
high sodium, swelling clay, and excess water.
Adding gypsum also allows water to move into
the soil to stimulate plant growth.
5. Helps reduce runoff and erosion. Agriculture
is one of the major contributors to water quality,
with phosphorus runoff the biggest concern.
Gypsum helps to keep phosphorus and other
nutrients from leaving farm fields.
Charah's pelletized SUL4R-PLUS Fertilizer.
Below: Charah's state-of-the-art manufacturing facility.
18 FEBRUARY 2016

17. JEANNINE TAYLOR
2521 East 26 Road
Cadillac, Michigan 49601
231.920.4998
j9taylor67@gmail.com