At the Crow Wing Power 2019 Annual Meeting CEO Kraemer was asked about the Emily mine royalty agreement. Kraemer indicated the agreement wasn’t in effect. I reviewed the document and talked with other signers. The royalty agreement is still legal and in effect. Signing for CWP members, Kraemer was awarded a 1% royalty, along with a 1% royalty to then CWP executives Don Nelson and Doug Harren. An additional 2% royalty is undesignated. A 1% royalty could yield $8 million or more to each. Royalty for what? Doing their jobs? Are Kraemer’s CEO decisions in CWP member’s best interest or his 1% royalty? Conflict of interest is illegal in government and against most industry bylaws. Is CWP management, with board approval, operating a venture investment group for their own benefit using member’s money and credit? Kraemer received another $1.9 million for the sale of CWP businesses, $70,000 bonuses were paid to seven of nine board members (two members didn’t accept payment). The board supported payments and kept them secret for 10 years. CWP managers are public servants to the membership and employees. IRS 990s show Kraemer’s CWP compensation is over $373,000 per year. This is more than twice what the Brainerd School District superintendent makes, at least $120,000 more than a four star general makes. Board member Martin states CWP pay is consistent with other power co-ops. Examining power co-ops total revenue, number of members, population and average member income, I believe the board needs to do its homework. Board sanctioned conflict of interest practices and unethical gain of personal wealth, if found true, demands termination of long standing board members and other self-enriching managers. Aggressive criminal and recovery investigations must be completed. The royalty agreement must be rewritten, awarding CWP membership this 5% royalty.

Paul Cibuzar