ANNUAL REPORT
2019
Introduction There’s a vibrant new energy taking shape across America; members like you are transforming rural and small communities.
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Tri-County Electric Cooperative is an electric cooperative, built by the communities we serve to deliver reliable, sustainable and affordable energy. And, because we answer to local members like you, rather than out-of-town shareholders, our electric cooperative has a unique understanding of our local needs. In fact, most of our employees live right here in the community. Your co-op is a community-focused organization, providing jobs and giving back to the community through Energizing Education Scholarships, the Youth Tour, strong employee volunteer programs and more. Being a member of a cooperative distinguishes you from other electric utility consumers, as well as other business relationships, in important ways.
• Co-op leaders are members of our local community.
Our nine board members live right here in our local area and are elected by co-op members just like you. Board members serve three-year terms and elections are held at our district meetings each summer.
• We belong to the communities we serve. Since we are
a cooperative, any excess revenue is shared back with members, over time.
• We follow the same seven cooperative principles that all cooperative businesses follow.
Though we are local and serve Madison, Jefferson, Taylor, and Dixie County we’re also part of something bigger. Across the country, electric cooperatives work together to restore power during major outages, deploy new technologies and build infrastructure that benefits us all. In addition to our pre-pay program, free home energy audits, and smart thermostat pilot program, we’re always looking for new ways to help our members save energy, save money and take advantage of the technology that’s changing the way we live and work. The opportunity to create something new here, while embracing traditional community values, has never been greater. It’s a passion we share with you, our members, for making our community a place we’re all proud to call home. That’s the source of our new energy at TCEC. 3
Tri-County Electric Cooperative
Saturday - September 21, 2019 Madison County High School Gymnasium
9:00AM Registration & Entertainment 10:00AM Business Meeting
Speaker: Leadership Coach
Entertainment:
Nanette Hitchcock Mercy Mountain Boys Free Refreshments
Kid’s Prizes & Special Guests 100 Door Prizes, including a pick-up truck Free gift for co-op members Community Information Booths School Supplies Drive www.tcec.com 850.973.2285 or 800.999.2285
See You at the Annual Meeting Most of us lead busy lives. We find ourselves multitasking, constantly checking phones and email to keep up with the demands of modern life. Thanks to technology, we can accomplish many tasks electronically and remotely to be more efficient. With so many pressing obligations, we like to protect our “spare” time. Invitations to attend in-person meetings and gatherings are weighed carefully as we decide whether or not our time and effort to attend is beneficial. The answer to the question, “what’s in it for me?” must be compelling. You may think attending Tri-County Electric Cooperative’s Annual Meeting would be easy to lump into the “no benefit to me” category. However, I’d ask you to think again. TCEC exists to provide safe, reliable and affordable energy to its consumer-members (that’s you!). Equally important is our mission to enrich the lives of all members and to serve the long-term interests of our local communities. This is where you can help. As a member of the community, you have a perspective that is valuable – and we invite you to share it with the co-op. At the annual meeting, co-op leaders will discuss priorities and challenges, and discuss the financial health and strategies for the coming years. Annual meeting is also the time to seat new board members who will represent you – the members of the co-op. Board members are local consumers, just like you. TCEC is one of the few local organizations that is uniquely positioned to bring together all members of the community. It is worth
noting that the health of the co-op and the well-being of the community are closely intertwined. Perhaps you may feel that you have nothing to add to the Julius Hackett, CEO discussion, so there is no need to attend the annual meeting. However, every energy bill you pay to the co-op helps ensure better service and reliability for the whole community. Your dollars are reinvested locally into improvements that impact the reliability and affordability of your energy, and we want to hear from you to be better informed as we make decisions that impact the future. While TCEC provides convenient electronic options for bill-paying and communication, there are times when there is no substitute for in-person engagement. When members of our community come together for a common purpose, we improve the quality of life for all in our corner of the world. If you’ve never attended our annual meeting, or if it’s been awhile, please stop by. Our co-op family looks forward to visiting with you! We’ll have food, fun and door prizes, so mark your calendar for this year’s annual meeting on Saturday, September 21, 2019 at the Madison County High School Gymnasium.
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Your Board of Trustees as of December 31, 2018
Junior Smith
District 1 Trustee
Mr. Junior Smith was elected to the TCEC Board of Trustees in 2006. He has extensive experience in the electric power industry, having worked more than 44 years at the Cooperative. He retired in 2001 as Manager of Operations for TCEC. Mr. Smith has served as former Vice President of the Board of Trustees. He has earned Credential Cooperative Director, Board Leadership and his Director Gold credentials through National Rural Electric Cooperative Association (NRECA). Mr. Smith lives in Madison with his wife, Beverly.
Bobby Dodd
District 2 Trustee – Vice President
Board Vice-President, Mr. Bobby Dodd was elected to the Board in 2012. He also serves on the Board of the Florida Electric Cooperatives Association which is a statewide organization representing 15 electric distribution cooperatives and two generation and transmission cooperatives serving over 1 million consumers in 53 of 67 Florida counties. Prior to his retirement, he was a warden with the State of Florida Department of Corrections. Mr. Dodd is a military veteran having served in the United States Army. He is a graduate of Florida State University. Mr. Dodd is a Credentialed Director and holds Board Leadership and Director Gold certificates through NRECA. Mr. Dodd lives in Steinhatchee with his wife, Marlene.
Donnie Waldrep
District 3 Trustee
Mr. Donnie Waldrep just completed his first term on the TCEC Board of Trustees, having been elected to the Board in 2016. He is a lifelong resident of Madison County, following graduation from Greenville High School, he attended North Florida Junior College. Mr. Waldrep is a County Commissioner District 2 for Madison County. He is a Credentialed Director through NRECA. For nearly thirty years he has been the owner/ operator of FL-GA Wholesale Tire and lives in Greenville with his wife, Karen.
George Webb
District 4 Trustee
Mr. George Webb was elected in 2015 to the TCEC Board of Trustees. Prior to serving as Trustee, he was the former Manager of Member Service and Administration at the Cooperative and retired in 2014 after 41 years of service. He has earned his Credentialed Director Certificate from NRECA and is currently working to earn his Board Leadership certification. Mr. Webb lives in Lee with his wife, Marcia.
Catherine Bethea
District 5 Trustee – Secretary/Treasurer
Board Secretary and Treasurer, Mrs. Catherine Bethea was elected to the TCEC Board of Trustees in 2008. She is a graduate of Florida State University and former school teacher having taught middle school math in Taylor County. She is a member of the Board of Directors of Seminole Electric Cooperative, Inc. Mrs. Bethea is a member of the Taylor County Soil and Water Conservation and UF/IFAS Extension boards. She is a Credentialed Director and holds Board Leadership and Director Gold certificates through NRECA. Mrs. Bethea lives in Perry with her husband, Buddy. 6
Gary Fulford
District 6 Trustee – President
Board President, Mr. Gary Fulford was elected in 1990 to the TCEC Board of Trustees. Prior to retirement, he raised peanuts, cotton, soybeans and cattle in Jefferson County. He is a graduate of the University of Florida. In addition to serving as President of the TCEC Board, he is a member of the Board of Directors of Seminole Electric Cooperative, Inc. the wholesale power provider of TCEC. Mr. Fulford is a former member of the board of the Florida Electric Cooperatives Association. He is recognized as a Credentialed Cooperative Director through NRECA. He lives in Monticello with his wife, Pam.
Albert Thomas, Jr.
District 7 Trustee
Mr. Albert Thomas, Jr. has served on the TCEC Board of Trustees since 2004 and is the former Vice-President and Secretary/Treasurer of the Board. He is a current member of the board of the Florida Electric Cooperatives Association. Mr. Thomas is a retired educator, having served as Director of Vocational, Adult and Community Education and grant writer for the Jefferson County School Board. He is a graduate of Florida A&M University and holds a Master of Arts Degree in Romance Languages and Literature with the University of Washington. Mr. Thomas is a Credentialed Director and holds Board Leadership and Director Gold Certificates through NRECA. He lives in Aucilla with his wife, Celestine.
Johnny Edwards
District 8 Trustee
Mr. Johnny Edwards was elected to the TCEC Board in 2017. As one of the newest elected members of the board, he has dedicated himself to learning about the electric power industry and has earned his Credentialed Cooperative Director certification through NRECA. Mr. Edwards has worked for 29 years for Georgia Pacific at the Foley Mill where he serves as Mechanical Coordinator/Planner. He is a lifelong resident of Taylor County and lives in Perry with his wife, Victoria.
Elmer Coker
District 9 Trustee
Elected to the TCEC board in 2006, Mr. Coker is the former athletic director and head football coach at Taylor County. He has taught in Taylor, Wakulla and Jefferson counties. Although now retired from coaching and teaching full-time, he remains active in the Taylor County School System serving as a school mentor. He resides in Perry with his wife, Pat. Mr. Coker is a graduate of Florida State University. He is a Credentialed Director and holds Board Leadership and Director Gold Certificates through NRECA. He is a former Vice-President of TCEC’s Board of Trustees.
Meet Your Newest Trustee to be seated at this year’s annual meeting
Ann Herring
District 6 Trustee
Ms. Ann Herring is the newest member of the TCEC Board of Trustees having been elected by the members during the District Meeting held in July 2019. She is a lifelong resident of Jefferson County. Ms. Herring currently holds membership in the following organizations: Community Friends of Jefferson County, Inc. and the Jefferson County Educational Foundation, Inc. After more than 30 years of service, Ms. Herring retired from Florida State government in 2017. During her tenure with the state, she worked for the Department of Health and the Department of Children and Families. Prior to this, she worked with several private sector organizations and was employed as a teacher in the Jefferson County Public School System.
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Department Highlights At TCEC we are always looking to the future to ensure the electricity needs of our community will continue to be met. System reliability is a key factor in providing great service to our members, and TCEC is focused on moving this needle.
Operations
The continuous effort to replace aging copper lines with newer aluminum wire is a focus of the cooperative. There is a concerted effort to replace the aging wire throughout the system, TCEC is working on major projects through its territory to replace this aging infrastructure along its main trunk lines. These upgrades of hardening the system will increase reliability and will allow the cooperative to back feed and restore members during major outages. 10.5 miles of lines out of the Greenville substation along our Perry circuit were upgraded with the replacement of aging copper wire and old poles with larger aluminum wire and new poles. These upgrades will assist with voltage issues and reliability concerns. The process of creating new infrastructure or retrofitting existing infrastructure is sometimes referred to as “storm hardening� and is meant to improve a power system making it more capable of withstanding extreme weather events.
TCEC has several linemen enrolled in the Georgia Statewide Lineman Training Program. This past year, five TCEC linemen have completed the comprehensive curriculum with a single goal of providing our linemen with the training and knowledge necessary to keep them safe on the job.
Engineering
An ongoing initiative is the constant implementation of technology upgrades to our electric grid system in order to create visibility and remote control of system devices. A project has recently been completed in the Monticello substation that allows the main cooperative control center to monitor and remotely control devices in the Monticello area. This allows the cooperative to quickly activate linemen to the outage as well as study data analytics in order to identify chronic areas of concern. Projects are then created to mitigate these areas in order to improve reliability to the membership.
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Finance
Your cooperative continues to work hard by controlling expenses and implementing technologies to increase productivity that ultimately minimizes upward pressure on electric rates. The financial strength of the cooperative allows access to both short-term and longterm low cost capital in the event of a major weather event. After three consecutive years of hurricanes impacting our system, we are still able to financially support all of our power line maintenance programs, rebuild aging infrastructure and attract and retain a quality workforce that help to deliver affordable and reliable electric services to our members.
Corporate Services
Storm preparedness continues to drive upgrades and resiliency for communications to our district offices, substations and members so that we can deliver both voice and data communications during extreme weather events. We continue to invest in cyber security measures to increase the protection of information and to defend against hackers accessing the cooperative’s mission critical systems.
In 2018-2019, 3 employees retired, with 100 years of service to the cooperative, collectively. Preparing our employees to continue to serve our members at the level they have come to expect from such experienced individuals, is key. We understand the importance of being prepared for the future and maintaining a knowledgeable and motivated workforce that keeps service to our membership a top priority. We frequently review our employee succession plan. Succession Planning is the process by which an organization proactively recruits and develops current employees to fill key roles within the organization that become vacated due to retirements or employee separations. TCEC is always looking for new teammates who are dedicated and committed to contributing to the highest level of service to our members.
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Preparing Our Community In addition to preparing for storm season, training our employees, and investing in infrastructure, we make it a priority to give back and build up the communities we serve. Through programs like the Electric Cooperative Youth Tour and Energizing Education Scholarships we are able to support the future of our communities by investing in our youth. Whether it is a local high school baseball game, on the soccer field, or in a mathematics and engineering class, TCEC volunteers can be found offering a helping hand, coaching, and teaching. TCEC’s partnerships with organizations such as Ability 1st, Rotary, Kiwanis, 4H, and more result in strong relationships between your cooperative and your community. This opens the door to endless ways we are able to prepare our community and our neighbors for the future.
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Connect to Your Co-op
Ways to Manage Your TCEC Account www.tcec.com
By signing in to your TCEC account online at www.tcec.com; your energy usage, bill pay options and more are right at your fingertips. Along with updates and reminders from the cooperative.
TCEC FL - Mobile App
An easy way to pay your bill, check on your energy usage, and report an outage while on the go. Download the app to get started.
800.999.2285 or 850.973.2285
Give us a call 24 hours a day, 7 days a week to speak with a Member Service Representative or to use our Interactive Voice Response System.
Text TCEC to 800.999.2285
Report your outage and receive outage updates all via text messages.
Ways to Pay
TCEC offers many ways members & consumers can make payments. All payment options are secure and free, so you can choose what works best for you.
E-Check or Credit Card
Pay by phone with electronic check by calling 1-800-999-2285. Have TCEC account number ready. For e-check, please also have checking account number and bank routing number ready. For credit card, have credit card number, expiration date, CVV code, and billing zip code ready. TCEC accepts Visa and MasterCard. E-Check & credit card information can be saved to your account profile for quick processing the next time you call.
Check or Money Order Mail a check to the headquarters office at 2862 W US 90, Madison, FL 32340. Make check payable to TCEC and include the bottom portion of your bill with the payment.
Auto-Pay
Auto-pay gives you the ability to choose a payment day that works for you for a one-time payment or reoccurring monthly. Sign up is through our secure online account management system. You no longer have to contact a member service representative to make changes to your payment options, putting YOU in control. Ways to pay include your Visa, MasterCard or checking account. With other benefits such as payment alerts and maximum payment amount options, you never have to worry about your account again.
District Office Locations
TCEC has five offices across our service territory that are staffed from 8:00AM-5:00PM Monday – Friday to serve our member’s needs. The offices in Perry, Monticello and Steinhatchee are closed from 1:00PM-2:00PM for lunch. Our Greenville office is open from 9:00AM-2:00PM Monday – Friday. Stop by any of our local offices to make a payment, or drop a payment in one of our night drop boxes. Members participating in the Pre-Pay Program: Payments made on our website, mobile app, or via the automated phone system at 1.800.999.2285 can be any dollar amount, 24 hours a day. However, payments made with a Member Service Representative either at a TCEC office or over the phone must be a minimum of $5, no matter the payment method.
Madison Office
Perry Office
Monticello Office
2862 W US 90 Madison, Florida
1500 South Jefferson St. Perry, Florida
700 South Jefferson St. Monticello, Florida
@TriCountyElectricFlorida @tricountyelectricflorida
@TCECFlorida
Greenville Office
Steinhatchee Office
13796 West US 90 Greenville, Florida
14-15th Street SE Steinhatchee, Florida
@tricountyelectricflorida
Tri-County Electric Cooperative - Florida
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Capital Credits TCEC is a member owned electric cooperative. We do not earn profits in the sense that investor-owned utilities earn profits for their investors. Our focus is on delivering affordable, reliable power to our members at cost. Any margins or revenues related to the sale of electric service remaining after all expenses have been paid are returned to the Cooperative’s members in proportion to their electrical usage. These are called capital credits and are returned to you in the form of a check or a billing credit. When capital credits are returned to members, you are seeing the return on your investment. This is one of the benefits of being served by a non-profit utility. In 2018 the board of trustees authorized a distribution of $940,561 in capital credits to current and former members during the year 1992. Members either received a credit on their electric bill or a check in the mail.
Between 2013 – 2018 TCEC returned $5,483,227 to members in the form of Capital Credits:
$518,580.42
$1,011,577.39 $850,319.80
$971,000.85 $1,196,591.80
2013
$935,156.98
2017
2015 2014
2016
2018 POWER COSTS PER DOLLAR
WE’RE GROWING! BILLED METERS (2013 – 2018)
Cents Per Dollar:
17,655
17,716
17,830
2013
2014
2015
2016
2017
2018
17,932
18,212
58¢ Power Cost
18,391
15¢ Operating Maintenance
TOTAL UTILITY PLANT
8¢ Depreciation
2013
2014
2015
$88,809,468
$92,846,455
$97,119,357
7¢ Administration & General
2016
2017
2018
5¢ Interest
$103,348,638
$108,702,966
$110,497,617
4¢ Billing & Member Services 3¢ Operating Margins
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2019 District Meetings As a member-owned cooperative, we follow the Cooperative Principles. In particular, during July each year, we support Principle 2, Democratic Member Control, by holding member meetings in three of our nine districts. In 2018 TCEC members approved a change to the cooperative bylaws which now provide for the election of a Trustee during the district member meetings. This year, members of District No. 3, 5 and 6 elected a member as District Trustee to represent these districts for a term of three years. On July 23, 2019, a meeting of the members of District 3 was conducted at Concord Baptist Church in Greenville, FL. Mr. Donnie Waldrep was an unopposed candidate and was unanimously elected by the members to his second term as a Trustee of the Board. On July 25, 2019, a meeting of the members of District 6 was held at the Florida-Georgia Citrus plant in Monticello, FL. Two candidates qualified for the District 6 Trustee seat, Mr. Gary Fulford (incumbent) and Ms. Ann Herring. The Madison County Supervisor of Elections Office Staff oversaw the voting of the members and Ms. Ann Herring was elected as District 6 Trustee of the Board. Ms. Herring will be seated during the Annual Meeting to be held on September 21, 2019. On July 26, 2019, the members of District 5 met at St. Johns Christian Fellowship Church in Perry, FL. Mrs. Catherine Bethea was an unopposed candidate and was unanimously elected by the members to serve another term as Trustee of the Board.
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78th Annual Meeting Minutes The 78th Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held Saturday, September 15, 2018, in the Madison County High School Gymnasium, on the campus of the Madison County High School in Madison, Florida. Registration began at 9:00 A.M. While members were registering their attendance, the Michael and Jennifer McLane Band entertained.
Meeting and noted that this year’s meeting was different from the last year because the co-op’s linemen were in attendance today. He reminded the audience that Hurricane Irma had the linemen working during the 2017 annual meeting and once today’s annual meeting wrapped up, a crew of the co-op’s linemen were prepared to travel to North Carolina to assist with the power restoration efforts following Hurricane Florence.
Following the music, a short video was presented showcasing the 2018 NRECA Washington, D.C. Youth Tour delegates.
Mr. Hackett shared with the members that low natural gas prices, declining costs of solar power, and the emergence of lithium ion batteries to store electricity is creating a dramatic shift in future energy needs over the next decade.
The meeting was called to order by President Gary Fulford with the Jefferson Somerset Junior ROTC presenting the colors followed by the Pledge of Allegiance given by Mr. Jalen Sanders, 2018 Youth Tour Delegate. Miss Ellie Cherry, a participant in the 2018 NRECA Washington, D.C. Youth Tour, gave the invocation. Mr. Fulford introduced the guests present as follows: Ms. Mary Louise Hester, Regional Director of U. S. Senator Bill Nelson’s office; Mrs. Lisa Johnson, CEO of Seminole Electric Cooperative, together with her staff; Mr. Kurt Morris, Vice President of Electric Distribution for CoBank; Mr. Mike Bjorklund, Executive Vice President and General Manager of Florida Electric Cooperatives Association; and Mr. John Kimsey, Regional Vice President of CFC/National Rural Utilities Cooperative Finance Corporation. Mr. Fulford introduced the Board of Trustees of the Cooperative as follows: District 1 Mr. Junior Smith; District 2 Mr. Bobby Dodd; District 3 Mr. Donnie Waldrep; District 4 Mr. George Webb; District 5 Mrs. Catherine Bethea; District 8 Mr. Johnny Edwards; District 9 Mr. Elmer Coker and himself, District 6 Gary Fulford. He announced to the members that District 7 trustee Mr. Albert Thomas, Jr. was unable to attend the meeting today. He further introduced CEO Julius Hackett and Attorney Dylan Rivers from the firm Ausley and McMullen in Tallahassee, Florida. Mr. Fulford began his address to the members in attendance by recalling the story of electricity, describing experiments of Benjamin Franklin with lightning and Thomas Edison’s invention of the light bulb. He thanked the members for their continued interest and participation in their electric cooperative and attributed this participation in the co-op’s success over the last 78 years. He explained how the TCEC Board of Trustees is always looking to the future to ensure that electricity needs of the communities served by the co-op will continue being met. He stated that every decision in the boardroom is based upon the members, that the co-op was established to safely provide reliable electric service the member-owners and enhance the quality of life in the communities it served. He concluded his remarks by saying the co-op was established on this simple mission and it will continue to thrive based on the powerful belief of moving forward with powering members future. Mr. Fulford then welcomed to the podium, the CEO of Tri-County Electric Cooperative Mr. Julius Hackett. Mr. Hackett welcomed the members to the Annual
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He spoke of changes taking place with the cooperative’s wholesale power provider, Seminole Electric Cooperative, has plans to replace one of the two coal plants by the year 2023 and build a gas burning plant at the same location. Mr. Hackett discussed the proposed bylaw amendments that have been brought about by requests of the members to streamline the trust election process, and he revealed that voting hours will be expanded for the convenience of members. He thanked the members for their support of their cooperative, and reminded them that they have power in their voices and their votes to influence how their electric co-op is run. Mr. Fulford returned to the lectern to introduce the guest speaker, Commander Drew Brown, a former Navy pilot and motivational speaker. Commander Brown entertained the audience with inspirational stories of growing up in a disadvantaged neighborhood, making his way through college and joining the U. S. Navy where he went on to fly fighter jets and become a Top Gun pilot. He offered “11 Facts of Life” on how to live a better life, and encouraged everyone to “wake up, show up and pay attention to details.” Cooperative Attorney, Dylan Rivers then called the business session to order. As the first order of business, Mr. Rivers called upon Mrs. Catherine Bethea, Secretary-Treasurer of the Cooperative for a report on the quorum. Mrs. Bethea reported that the presence of 129 members of the Cooperative was necessary to constitute a quorum for the transaction of business and that at 9:38 A.M. 444 members of the Cooperative had officially registered their attendance. Mrs. Bethea declared that a quorum was present for the transaction of business of the Cooperative. The second order of business was the Official Notice. Mr. Rivers announced that a copy of the Official Notice of the Annual Meeting of the members of the Cooperative was mailed to each member of the Cooperative at the address of such member, as shown on the records of the Cooperative, by depositing such notice in the United States Mail at Blountstown, Florida, on August 29, 2018, postage prepaid. No one objected to the form or time of the notice and reading of the notice was waived by motion duly made, seconded and carried.
Mr. Rivers then stated the next order of business was the reading of the Minutes of the 2017 Annual Meeting of the members of the Cooperative and their approval by the membership if the same were found to be in order. These Minutes were published in the September Tri-County Annual Report and mailed to each member. Upon the motion duly made, seconded and unanimously carried, the reading of the Official Minutes of the 2017 Annual Meeting of the members of the Cooperative was waived, and the Minutes of such meeting as published in the Tri-County Annual Report, and as set out in the official records of the Cooperative were approved. Mrs. Catherine Bethea was called upon to give the Treasurer’s Report. She reminded the members in the audience that the financial statements of the Cooperative were printed in the September 2018, Tri-County Annual Report which was mailed to each member for examination prior to the Annual Meeting. Mrs. Bethea reported that the Cooperative’s 2017 Financial Report was prepared by Nichols, Cauley and Associates, CPAs, with no instance of non-compliance reported. She pointed out the most significant financial highlights for 2017 reflected the year ending with net margins from operations of $1.7 million, revenues of $38.5 million and operating expenses of $35.7 million. There was a slight increase in energized meters ending the year with 18,212 energized meters. She reported on the completion of a major line rebuild project south of Perry and along the Puckett Road area in Taylor County and current rebuild project underway along Old Blue Springs Road in Madison County. Each rebuild project was meant to provide a more reliable and efficient distribution system for members. She reported that almost $5 million dollars was invested in the power system during 2017. She further stated the overall financial condition of the Cooperative remains strong. As a display of this fiscal strength the Board of Trustees voted to retire over $971,000 in capital credits last year and returned those dollars back to the membership. Mr. Rivers then stated the next order of business was the election of trustees from Districts 1, 2 and 4 to serve for a term of three (3) years. He reminded the membership that according to Article 3 Section 7(a) of the Tri-County Electric Cooperative Bylaws, district meetings were held in July for the purpose of nominating candidates for trustee and that Article III Section 7(b) provides an additional method for nominating a candidate for trustee. Under Section 7(b) a member can indicate his or her intent to nominate a candidate for trustee from the floor during the annual meeting by filing their intent at least fifteen days prior to the annual meeting. DISTRICT NO. 1 Mr. Junior Smith being selected as the district’s official candidate at the duly called District Meeting of District No. 1 and no intention to make additional nomination from the floor for Trustee of District No. 1 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation. DISTRICT NO. 2 Mr. Bobby Dodd being selected as the district’s official candidate at the duly called District Meeting of District No. 2 and no intention to make additional nomination from the floor for Trustee of District No. 2 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation. DISTRICT NO. 4 Mr. George Webb being selected as the district’s official
candidate at the duly called District Meeting of District No. 4 and no intention to make additional nomination from the floor for Trustee of District No. 4 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation. Mr. Rivers then opened the floor for any unfinished business of the Cooperative which should come before the meeting. There being no unfinished business to come before the meeting, the floor was then opened for any new business of the Cooperative which should come before the membership of the Cooperative at this Annual Meeting. Attorney Rivers then advised the members of the Cooperative present at the meeting that the Board of Trustees of the Cooperative had duly proposed an amendment to ARTICLE III, MEETING OF MEMBERS, SECTION 1. ANNUAL MEETING, SECTION 7. NOMINATION AND ELECTION OF TRUSTEES, AND SECTION 8. ORDER OF BUSINESS, ARTICLE IV, TRUSTEES. SECTION 2. QUALIFICATION AND TENURE of the Bylaws of the Cooperative, and the proposed submission of such amendments to the members of the Cooperative at this meeting for their consideration, acceptance or rejection. Mr. Rivers then reviewed the proposed amendments to the Bylaws and stated that these proposed amendments had been set out verbatim in the Official Notice of this meeting mailed to the membership of the Cooperative, the proposed amendments were made available online at the cooperative’s website and set out in the program handed out during member registration. Mr. Rivers instructed members to use the voting paddles given to each registered member and the procedure to be followed when casting a vote. Attorney Rivers opened the floor for debate from the membership on proposed amendment to ARTICLE III, MEETING OF MEMBERS, SECTION 1. ANNUAL MEETING, SECTION 7. NOMINATION AND ELECTION OF TRUSTEES, AND SECTION 8. ORDER OF BUSINESS of the Bylaws of the Cooperative regarding nomination and election of trustees. Hearing none, the question was called a vote was taken: the vote appeared to be unanimous or close to unanimous. The amendment passed. With the passage of this amendment, ARTICLE III, MEETING OF MEMBER, SECTION 1. ANNUAL MEETING, SECTION 7. ELECTION OF TRUSTEES, SECTION 8. ORDER OF BUSINESS AND ARTICLE IV. TRUSTEES SECTION 2. QUALIFICATION AND TENURE, of the Bylaws of Tri-County Electric Cooperative, Inc. was amended to read as follows: ARTICLE III MEETINGS OF MEMBERS Section 1. Annual Meeting. The annual meeting of the members shall be held on the third Saturday in September of each year beginning with the year 1941, at such place in the County of Madison, Jefferson or Taylor of the State of Florida, as shall be designated in the notice of the meeting, for the purpose of announcing Board of Trustees, passing upon reports for the previous fiscal year and transacting such other business as may come before the meeting. Failure to hold the annual meeting at the designated time shall not work a forfeiture or dissolution of the Cooperative. Section 7. Election of Trustees. (a) Election at District Meetings. Not less than thirty days nor more than sixty days before the annual meeting of the members, the Board of Trustees shall call a separate meeting of the members of each district at a suitable place in such district for the purpose of selecting one
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person as trustee to represent the members located within such district. The notice of such meeting shall be delivered to each member located in such district as provided in Section 3 of this Article and shall indicate the district to which such member belongs. The notice shall state that an election of their trustees to represent their District is to be made at the meeting. The meeting shall, however, be open for discussion of any other matters pertaining to the business of the Cooperative, regardless of whether or not such matters were listed in the notice of the meeting, and recommendations with respect thereto may be submitted to the Board of Trustees or the entire membership. (b) In order for a member to be nominated at a district meeting for the position of trustee (including incumbent trustees) his or her name and intent to run for such position must be received by the Cooperative in writing at its headquarters in Madison, Florida at least 21 days before the district meeting at which nominations for trustee are to be made. After receiving such written notice, the Cooperative will confirm that the member is a resident of the district for which he/she intends to be a candidate for trustee, and is otherwise qualified to be a trustee. In the event that the member is not qualified to be a trustee, the Cooperative will notify the member of this in writing prior to the district meeting at which elections for trustee are to be made. The Secretary of the Cooperative shall, prior to the district meeting, certify the names of all prospective candidates who shall satisfy the said requirements. The district meeting shall be called to order by the trustee representing the district or by another designated representative of the Board of Trustees, or, in his absence, by any member residing within the district. The members shall then proceed to elect a chairman, who shall be someone other than a trustee, and who shall appoint a secretary to act for the duration of the meeting. Fifteen members residing in the District present at such duly called district meeting shall constitute a quorum. provided, however, that members casting votes during voting hours in an election of trustees shall be counted as present in person for the determination of a quorum as provided by law. Members of other districts present at the meeting may be heard but shall have no vote. Only those persons who have been certified by the Secretary as provided in Section 7 (b) hereof, shall be considered nominated and eligible for election at the meeting. Candidates must be members residing in the district and must be certified as required by paragraph (b) of this section and possess the qualifications for trustee specified in Section 2 of Article IV of these bylaws. (c) Voting shall be by ballot. Each member may vote for one candidate. The candidate receiving the highest number of votes shall be declared the trustee of the district. The minutes of such district meeting shall set forth, among other matters, the name of each person nominated at the meeting and the number of votes received by each, and shall specify the trustee of the district. A certified copy of the minutes, signed by the secretary and the chairman of the district meeting, shall be delivered to the Secretary of the Cooperative within five days after such district meeting. (d.) Not less than ten days before an annual meeting of the members, the Secretary of the Cooperative shall mail to each member a list of the trustees elected at all district meetings, the names to be arranged by districts. This list may be included with the notice of the meeting. (e) In the event the election of a trustee does not occur on the day designated herein for the district meeting due to being unable to establish a quorum at the district
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meeting, the election of those qualified candidate(s) for trustee shall occur at the annual meeting of the members. (f) Additional candidates for trustees for a particular district may be elected at the annual meeting; provided, no trustee was elected during a district meeting causing the district to be without a trusteeelect. In order for a member to seek election at the annual meeting his or her name and intent to run for such position must be received by the Cooperative, at least fifteen (15) days prior to the Annual Meeting of the members at which a trustee will be elected. After receiving such written notice, the Cooperative will confirm that the member is a resident of the district for which he or she intends to be a candidate for trustee, and is otherwise qualified to be a trustee. In the event that the member is not qualified to be a trustee, the Cooperative will notify the member in writing. The Secretary of the Cooperative shall, prior to the annual meeting, certify the names of all prospective candidates who shall satisfy the said requirements. Election of trustees shall be by printed ballot. Each member of the Cooperative present at the meeting shall be entitled to vote for one candidate from the district in which he receives service. The candidate from each district receiving the highest number of votes at this meeting shall be considered elected as trustee. Section 8. Order of Business. The order of business at the annual meeting of the members and, so far as possible at all other meetings of the members, shall be essentially as follows: a. Report as to the number of members present in order to determine the existence of a quorum. b. Reading of the notice of the meeting and proof of the due publication or mailing thereof, or the waiver or waivers of notice of the meeting, as the case may be. c. Reading of unapproved minutes of previous meetings of the members and the taking of necessary action thereon. d. Presentation and consideration of reports of officers, trustees and committees. e. Announcement of trustees. f. Unfinished business. g. New business. h. Adjournment. ARTICLE IV TRUSTEES Section 2. Qualification and Tenure. The persons named as trustees in the articles of incorporation shall compose the Board of Trustees until the first Annual Meeting or until their successors shall have been elected and shall have qualified. If the election of trustees shall not be held on the day designated herein for the District Meeting, or at any adjournment thereof, the Board of Trustees shall cause the election to be held at the annual or a special meeting of the members as soon thereafter as conveniently may be. Trustees shall be elected by ballot at each District Meeting of the members beginning with the year 2019, by and from the members, to serve the established term of office or until the next Annual Meeting of the members or until their successors shall have been elected and shall have qualified. There being no new business to come before the meeting, upon a motion duly made, seconded and unanimously carried, the Annual Meeting of the membership of Tri-County Electric Cooperative, Inc. was duly adjourned at 11:22 A. M., Saturday, September 15, 2018. Thereafter, a drawing for prizes was held.
Annual Meeting Official Notice The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, September 21, 2019, at the Madison County High School Gymnasium located on the campus of the Madison County High School, 2649 US 90, Madison, Florida. Registration begins at 9:00AM and the business meeting will convene at 10:00AM. The following matters will be brought before and considered at this Annual Meeting: I. Any business listed in Section 8 of ARTICLE III of the By-Laws of Tri-County Electric Cooperative, Inc. II. At this Annual Meeting, Trustees elected at the District Meetings of the members from Districts 3, 5 and 6 to serve for a term of three (3) years will be seated. The following members have been elected, pursuant to the Bylaws of the Cooperative, as Trustee of the districts indicated:
District No. 3.........................Donnie Waldrep
District No. 5.........................Catherine Bethea
District No. 6…………………Ann Herring
III. A number of valuable prizes will be given away at this meeting and all members are urged to attend this Annual Meeting of the Cooperative. This Official Notice of Annual Meeting dated this 7th day of September, 2019. Catherine Bethea, Secretary, Tri-County Electric Cooperative, Inc.
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TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Balance Sheets December 31, 2018 and 2017
TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Statements of Cash Flows Years Ended December 31, 2018 and 2017
2018 2017 ASSETS Electric plant: In service - at cost $ 109,334,482 105,038,829 Construction work in progress 1,312,676 3,731,516 110,647,158 108,770,345 Less - Accumulated provisions for depreciation and amortization 31,187,660 29,334,656 79,459,498 79,435,689 Other investments: Investments in associated organizations 9,306,902 8,776,683 Current assets: Cash and cash equivalents: Cash 1,726,135 1,418,075 Accounts receivable (less allowance for accounts of $171,271 in 2018 and $206,684 in 2017) 2,719,377 2,267,252 Unbilled electric revenue 1,450,000 1,450,000 Materials and supplies (at avg. cost) 422,948 386,154 Other 83,203 81,948 6,401,663 5,603,429 Deferred debits 596,042 637,864 Total assets $ 95,764,105 $ 94,453,665
2018 2017 Cash flow from operating activities: Net margins $ 1,910,405 $ 1,707,261 Noncash income and expenses included in net margins: Depreciation and amortization 3,500,433 3,415,382 G & T and other capital credits (598,201) (706,135) Provision for losses on accounts receivable (64,984) (35,000) Gain on disposal of plant (30,300) (12,020) Decrease (increase) in: Accounts receivable and unbilled electric revenue (387,141) (852,730) Other current assets (1,255) (53,013) Deferred debits 41,822 5,662 Increase (decrease) in: Accounts payable (33,035) (93,934) Other current liabilities 100,282 112,948 Deferred credits — (29,699) Cash flows provided by operating activities 4,438,026 3,458,722 Cash flows from investing activities: Construction and acquisition of plant (3,119,537) (6,408,950) Plant removal costs (271,046) (391,601) Materials salvaged from retirements 9,262 20,913 Increase in materials and supplies (36,794) 15,276 Proceeds from disposal of plant 130,573 95,666 Proceeds from retirement of associated organizations patronage 67,982 79,531 Cash flows used by investing activities (3,219,560) (6,589,165) Cash flows from financing activities: Retirements of patronage capital credits (787,397) (842,262) Proceeds from long-term debt 1,781,000 4,000,000 Payments on long-term debt (2,152,157) (2,209,126) Payments on capital lease obligations (151,255) (127,869) Advances on lines-of-credit, net 398,543 2,338,987 Increase in: Membership fees 685 1,110 Consumer deposits 175 11,861 Cash flows (used) provided by financing activities (910,406) 3,172,701 Net change in cash and cash equivalents 308,060 42,258 Cash and cash equivalents beginning of year 1,418,075 1,375,817 Cash and cash equivalents end of year $ 1,726,135 $ 1,418,075
EQUITIES AND LIABILITIES Equities Membership fees $ 65,555 $ 64,870 Patronage capital 35,654,507 34,807,130 Other 1,353,290 1,077,659 37,073,352 35,949,659 Long-term debt, net of current maturities: Mortgage notes 47,517,640 47,974,875 Capital leases 422,456 367,557 47,940,096 48,342,432 Current liabilities: Current maturities of long-term obligations 2,423,030 2,299,912 Lines-of-credit 2,737,530 2,338,987 Accounts payable 2,451,734 2,484,769 Consumer deposits 1,150,222 1,150,047 Other 1,872,488 1,772,206 10,635,004 10,045,921 Deferred credits 115,653 115,653 Total equities and liabilities $ 95,764,105 $ 94,453,665
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Supplemental disclosures of cash flow information – Cash paid during the year for – Interest $ 1,908,134 $ 1,915,654 Supplemental schedule of noncash investing and financing sources: Increase in other equities resulting from discounting capital credit retirements $ 275,631 $ 269,229 Electric plant financed by capital lease $ 243,194 $ 178,716
TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Statements of Revenues Years Ended December 31, 2018 and 2017
2018
Operating revenues
$ 39,757,362 $ 38,583,804
Operating expenses: Cost of power Transmission Distribution operations Distribution maintenance Consumer accounts General and administrative Depreciation and amortization
2017
23,180,605 22,553,935 13,617 12,111 2,356,632 2,323,465 3,681,574 3,641,574 1,473,846 1,433,743 2,656,370 2,603,168 3,259,832 3,165,606
36,622,476 35,733,602 Operating margins before interest expense 3,134,886 2,850,202 Interest expense
1,908,134 1,915,654
Operating margins after interest expense 1,226,752
934,548
G & T and other capital credits
706,135
598,201
Nonoperating margins
85,452 66,578
Net margins
$ 1,910,405 $ 1,707,261
Auditor’s Report The independent accounting firm of Nichols, Cauley and Associates, LLC, Warner Robins, Ga., audited the financial statements of Tri-County Electric Cooperative, Inc. which comprise the balance sheets as of Dec. 31, 2018 and 2017 and the related statements of revenues, changes in equities, and cash flows for the years then ended, and the related notes to the financial statements. The Auditors reported “In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tri-County Electric Cooperative, Inc. as of December 31, 2018 and 2017, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.”
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2862 West US 90 Madison, FL 32340
TCEC Staff Julius Hackett, Chief Executive Officer Jeff Brewer, Vice President of Engineering Stephanie Carroll, Vice President of Corporate Services Eileen Herndon, Executive Assistant Darrell Tuten, Vice President of Operations Wendell Williams, Vice President of Finance Tri-County Electric Cooperative Rural Living, the voice of your member-owned electric cooperative, is published bimonthly — more if necessary — at no subscription cost to the membership. The publication team is comprised of TCEC employees in partnership with Curtis Media. Postage is paid at Blountstown, Fla.
Publication Team Julius Hackett, Chief Executive Officer Eileen Herndon, Executive Assistant Kaitlynn Culpepper, Community Relations Director
Publisher Curtis Media Michael Curtis & Staff 1-800-999-2285 www.tcec.com