2008 Annual Report by SECO Energy

2008 ANNUAL REPORT

“It is the greatest scam in history. I am amazed, appalled and highly offended by it. Global Warming; It is a SCAM. Some dastardly scientists with environmental and political motives manipulated long term scientific data to create an illusion of rapid global warming. Other scientists of the same environmental whacko type jumped into the circle to support and broaden the “research” to further enhance the totally slanted, bogus global warming claims. Their friends in government steered huge research grants their way to keep the movement going. Soon they claimed to be a consensus.” — John Coleman, Founder of The Weather Channel

“We’re trying to build a 21st-century electric marketplace on top of a 20th-century electric grid, … no significant additions have been made to the grid in 20 years of bulk electric transmission, yet we’ve had significant increases in the amount of generation.” — Ellen Vancko North American Electric Reliability Council

“A PJM Interconnection study concludes that the leading legislative proposals of the 110th Congress to reduce carbon dioxide (CO2) emissions from fossil-fuel generation plants could increase wholesale electricity prices from $7.50 per megawatt hour (MWh) to $45/MWh in 2013. We recognize that legislation to reduce carbon emissions will have a significant impact on PJM, our members and their customers. This study was undertaken to help inform decisions of our members and the discussions in Washington and elsewhere. We’re not trying to influence or shape policy, but do believe as the largest grid in North America that we’re in a good position to demonstrate with how climate control proposals will affect wholesale market prices.” CEO Terry Boston PJM Interconnection (RTO) Coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

‘‘If present trends continue, a blackout enveloping half the continent is not out of the question.’’ — Roger Anderson Professor of Natural Sciences Columbia University

Cooperative Highlights 2008 SUMTER ELECTRIC COOPERATIVE Operating Revenue $ 313,900,724 Net Margins $9,608,186 Total Assets

$518,196,773 Patronage Capital Distributed $1,157,762 Kilowatt-Hours Sold 2,642,456,182 Miles of Energized Line 11,350 New Services 5,754 Number of Members 167,022 Full-Time Employees 391

Meet Our Dedicated The year 2008 was a most interest-

extraordinary guidance throughout the

Chief Executive Officer Joined SECO in 1979, named CEO in 1990

ing one for your cooperative. As one can

intervening years that the SECO Board of

imagine, the number of new members

Trustees has provided.

added to SECO’s lines slowed down con-

A democratically elected Board of

Duncan holds a Master of Business Administration and a Bachelor of Science in accounting from East Tennessee State University. His reputation as an outstanding communicator, strategist, and mediator has led to dozens of invitations to serve on a wide variety of boards nationally and locally. He has won numerous awards including the NRECA CEO of 2007 for his Leadership in Communication and in 2008 CCA’s Outstanding CEO Leadership Award.

siderably for the year due to a variety of

Trustees is a key component of the coop-

national economic woes. We added 5,754

erative business model. You’ll see photos

new members in 2008 as opposed to the

of your current board members in this re-

7,083 added in 2007.

port. We hope you’ll recognize them when

▼

JAMES P. DUNCAN

Still, while growth slowed down, SECO went from the fourth largest electric

they are out in the community and take the time to say hello.

cooperative in the state to the third largest

It is up to the board to establish, re-

co-op in Florida. And, we went from

view, and revise corporate policies so that

the eighth to the seventh largest

member satisfaction remains high and the

cooperative of the 900-plus

co-op maintains a strong financial position in the industry.

co-ops in the nation. Electric

It is highly unlikely that you know

Cooperative is a very

who is on the board of the other utilities

large

that serve you like the telephone or gas

be sure, but we have

companies. You certainly don’t get to pick

never lost sight of why

who represents you on those boards, and

we were created back

you can’t contact those board members if

in 1938, nor who it is

you happen to have a problem.

Sumter

cooperative

we serve. How have we

Like you, SECO board members

managed to retain our

are customers of Sumter Electric. They

focus on what is best for

are accessible and live, work, and play

our members? Well, in

right here in our communities, so they

large part, that is

are uniquely attuned to the needs of the

due to the

membership as a whole. And, you have the privilege of participating in an election every three years to determine who will

represent you on the SECO board. SECO ENERGY

Decision Makers Once elected, board members

The board works very closely with

work to complete the course work nec-

SECO’s CEO and General Manager who

essary to receive their Credentialed Co-

oversees the day-to-day operations of the

operative Director’s Certificate through

co-op and the CEO, in turn, works through

the National Rural Electric Cooperative

the senior staff and their dedicated em-

Association. This rigorous accreditation

ployees to make sure the cooperative’s

process insures that our board members

purpose — to provide exceptional service

have the enhanced skills and knowledge

to our customers, co-workers, and com-

needed to plan the co-op’s future.

munities — is continuously pursued.

In addition to regular monthly meet-

Is it working? Do SECO members

ings, there are also comprehensive board

think their co-op is well run? The answer

workshops on critical issues that must be

to both questions is a resounding yes

attended. And, board members are called

if you listen to SECO members. In

upon to attend and serve at meetings of

December the National Rural Electric

our power supplier, Seminole Electric Co-

Cooperative Association’s market

operative in Tampa, and the Florida Elec-

research

tric Cooperatives Association in Tallahas-

comprehensive telephone survey

see.

of SECO customers.

group

conducted

WILSON G. SHEPPARD

President District 8 – Sorrento Elected to the board in 1991

Mr. Sheppard is a third generation Floridian. Prior to retirement he worked as a certified public accountant. He also served as a Lake County School Board trustee and on the Lake County Planning and Zoning Board. Additionally, he served as a small claims and county court mediator.

All of the preceding things mean

A statistically valid sample

that you have a guiding body that is to-

of the co-op’s membership was

tally focused on what is best for our mem-

called and SECO members said

bers. It makes for a cohesive group that

their electric provider and community

is interested in the people’s agenda, not

partner was one of the best utilities in

the agenda of some far-off group of prin-

the nation.

cipal stockholders, Wall Street brokerage

▼

Members gave their co-

houses, or pork prone politicians. Watch-

op a mean overall satis-

ing out for the welfare of and retaining

faction rating of 8.93

the trust of SECO’s membership are the

on a 10-point scale.

prime directives for this board.

3 20 08 ANNUAL REPORT

Accountability is Vital for The members gave very high marks

SECO’s ACSI score was 85, which

Vice President District 5 – Inverness Elected to the board in 1980

for having courteous and friendly employ-

is an astonishing, high rating on this in-

ees, having accurate and understandable

dex. In fact, it ranked higher than the

bills, supporting the local community,

average score for the country’s Touch-

Mr. Vick is the retired owner of Midway Construction, Inc. of Central Florida and an Honorary Lifetime member of the Citrus County Builders Association. He has served in the insurance industry for many years. Active in the Citrus County community at large, he now serves on the Board of Directors for HernandoPasco and Citrus Hospices. Additionally, he is a senior, active member of the Rotary Club of Inverness.

being environmentally sensitive, minimiz-

stone Energy co-ops, the ranked inves-

ing longer outages and restoring power

tor-owned electric utilities in Florida and

quickly after an outage, keeping mem-

the rest of the nation, and was 12 points

bers informed, and delivering good value

above the industry average of 73. We also

for the money, just to name a few of the

scored higher than Target Corporation;

categories.

Nike; PepsiCo; Verizon; DirectTV and oth-

▼

RAY F. VICK

Another measurement contained

ers who are not in the electric industry.

within the survey was a series of ques-

So, we can safely say the co-op

tions that compare SECO to

business model with its strong account-

other types of compa-

ability features, fiscal integrity, and mem-

nies who seek to rate

ber focus is working.

themselves on the nationally nized

The big question that arose in 2008

recog-

and continued into 2009, as this report

American

was being written, was what the Presi-

Customer

Sat-

dent, the Congress, and, yes, the Gover-

isfaction

Index

nor of Florida would do in formulating en-

(ACSI).

ergy policy at the federal and state levels.

The American Customer Satisfaction Index Sumter Electric Cooperative

Southern Company Public Service Electric and Gas Co.

Duke Energy

Consumers Energy Company

Southern California Edison Co.

INDUSTRY AVERAGE Florida Power & Light

73 72 NRECA Market Research

SECO ENERGY

America! It seems we now have the answer.

recently told a British audience that if we

On top of multiple federal bailouts, a

did not act right now, we’d soon be ty-

whopping stimulus package, and the larg-

ing boats up to the top of the Washing-

est federal budget ever proposed by any

ton Monument as ocean levels rise due to

government in the history of the world, we

global warming.

now must be very concerned about what

One needs to understand that car-

government will do to your cost of elec-

bon dioxide is not the major contributor to

tricity. The news does not appear to be

global warming that it has been portrayed

good.

to be. Our country faces a crisis as elec-

CO2’s effect as a greenhouse gas

tricity use increases faster than available

is miniscule when compared to methane

supply. And, the plain fact of the matter is

gas and other very significant

that relying on intermittent renewables like

factors like water vapor.

solar and wind energy to bridge that gap

In fact, James Koern-

sounds great, but is in reality simply pie-

er, meteorology pro-

in-the-sky thinking.

fessor at Plymouth

Left to their own devices, it appears

JERRY D. HATFIELD

Secretary/Treasurer District 9 – Umatilla Elected to the board in 2000

Mr. Hatfield has long been involved in education, having served as both administrator, principal and teacher, he is now a charter school consultant. He has served as a member of the Florida Department of Education Academic Accountability Panel and president of the Lake County Association of School Administrators.

State University,

that elected officials at both the state and

New Hampshire,

federal levels will enact energy/climate

recently said hu-

legislation which will have a dramatic and

mans are only

potentially catastrophic effect on Florida

responsible for

home and business owners.

.28 percent of

These same officials have been

▼

all

greenhouse

convinced that if we don’t curb carbon di-

gases produced

oxide (CO2) emissions further, it will have

during a year’s

an irreversible effect on our climate. They

time.

are being stampeded into enacting rules and legislation by climate alarmists. Chief amongst those alarmists is Al Gore, who

5 20 08 ANNUAL REPORT

Energy Policy Will Nevertheless, the single-minded

regard to whether the technology neces-

▼ DONALD W. SANTEE District 1 – Clermont

drive to reduce CO2 emissions dominates

sary to capture and deliver these resourc-

the energy discussions of politicians and

es is sufficiently developed or even exists.

Elected to the board in 2004

regulators in Washington and Tallahassee.

Cap and Trade – This is a system of

Consequently, there are three key

regulating greenhouse gases like carbon

issues that you need to know about that

dioxide where each source (like a power

will likely have the greatest impact on your

plant) has a limit placed on the amount

future cost of electricity. They are:

of gases it can release. This is the cap.

Renewable Portfolio Standards

Those who emit less than the cap can sell

(RPS) – These are laws that require elec-

their extra allowances to those who are

tric utilities to add a certain percentage –

not able to make reductions easily. This is

25% is mentioned most often – of

the trade. (Germany, one of the greenest

renewable fuels to their fuel mix

European nations, has had this in place

to generate electricity by a

for a number of years and the latest study

certain date. These RPS

indicates they have had no decrease in

developed

their country’s CO2 emissions as a result.)

without regard for the

Carbon Tax – A proposed tax on

actual availability of

energy sources that emit carbon dioxide,

these renewable re-

based on the carbon content of a particu-

sources in the states

lar fuel, meant to curb both carbon emis-

that must comply

sions and the consumption of coal, natu-

without

ral gas and oil.

167,022

147,503

2005

136,870

2004

126,833

2003

118,908

2002

113,017

2001

50,000

2000

100,000

107,040

150,000

2008

Membership Growth

200,000

163,641

and

2007

being

158,494

are

2006

Mr. Santee is a retired civil engineer and surveyor. In Ohio, he established Santee Associates Engineering. He was heavily involved in the construction industry, interstate highway and utility design. He is a past president of the Lions Club and Medina Chamber of Commerce.

SECO ENERGY

Impact Consumers... The politicians can dodge and

“It is a blatant lie put forth in the

weave, use double speak and misdirec-

media that makes it seem there is only a

tion, but the preceding three items are go-

fringe of scientists who don’t buy into an-

ing to cause American electric bills to go

thropogenic (resulting from man’s activity)

through the roof. Some families may even

global warming.” U.S. government scien-

find their electric bill will be higher each

tist Stanley Goldenberg of the Hurricane

month than their mortgage payment.

Research Division of NOAA

These same politicians are banking

“There is no convincing scientific

on the hope that the American consumer

evidence that human release of carbon di-

will not blame them for increases in pow-

oxide, methane or any other greenhouse

er bills. They are hoping consumers will

gas is causing or will cause in the future,

blame their respective power companies.

catastrophic heating of the Earth’s at-

Let’s hope the voters do not forget who is

mosphere and disruption of

really responsible when the bill comes due.

the

Thousands in the scientific commu-

Earth’s

▼

DILLARD B. BOYATT

District 2 – Bushnell Elected to the board in 1990

Mr. Boyatt has true hands-on co-op experience, having worked at AT&T, South Kentucky Rural Electric Cooperative, and over a decade as a SECO service technician. Today he is selfemployed and operates his own air conditioning, refrigeration, and electric service.

climate…”

– Joint Petition signed by

nity and elsewhere have harsh criticism

31,072 scientists from

for those who have tried to advance their

around the globe.

own extreme environmental agendas by marching under the banner of imminent global meltdown. Consider these statements: “I am a skeptic…Global warming has become a new religion.” – Nobel Prize Winner for Physics, Ivar Giaever Warming fears are the “worst scientific scandal in history…When people come to know what the truth is, they will feel deceived by science and scientists.” United Nations scientist Dr. Kiminori Itoh

7 20 08 ANNUAL REPORT

Bringing Down There simply is no consensus on

Crist, it seems, is also in lockstep with

▼ KENNETH JESSOP District 4 – Ocala Elected to the board in 2008

man being the guilty party where so-

the federal government when it comes

called global warming is concerned. Still,

to energy and climate policy. And, he ap-

Congress is already hard at work to push

pears determined, where energy issues

After spending four years in the Army, Mr. Jessop attended Ohio State University and followed that with a career in the aircraft industry. He was privileged to play a role in the manufacture of the space shuttle. In 1992 he retired from Boeing in Seattle, Washington.

your electric bill to unheard of heights in

are concerned, to model Florida after

the name of saving the planet. They are

California which is hovering on the brink

acting on seriously flawed science and

of bankruptcy.

being pushed into precipitous action by

The thoughtful, taxpaying citizens

ultra-environmentalists and an irrespon-

of this nation are in trouble. They are play-

sible media that would have you believe

ing by the rules, but Congress continues

that Planet Earth will be devastated if we

to throw additional burdens upon them.

don’t abandon all of our traditional fuel

If you polled the nation’s electric

sources and rely on wind, solar,

companies, you would find that people are

and such to generate the

already struggling to pay their power bills.

electricity that is essen-

We’ve seen that here at SECO. Our An-

tial for Americans.

gel Fund helps members who are having

Poppycock!

trouble paying their power bill through no

Florida

fault of their own. Requests for assistance

Governor Charlie

through our humanitarian fund are on the rise. It is an indicator of things to come.

SECO Distrbution of Revenue 70 .0% 1 .9% 4 .7% 5 .4% 11 .0% 6 .8% .2%

Purchase Power Cost Operating Margins Interest Expense Depreciation Operation & Maintenance Member Services & Administration Other December 2008

8 SECO ENERGY

Costs for Members As a not-for-profit co-op, we are

people are that represent you and routes

concerned about our members’ financial

the message to the appropriate legisla-

well-being. We will always act as a con-

tors. You can also customize your e-mail

sumer advocate on their behalf if we feel

with your personal thoughts if you wish. To help buffer what is coming down

their lifestyle and personal finances are being threatened.

the tracks where your energy costs are

The time to challenge Congress and

concerned, SECO launched a huge effort

your legislators here in Florida about the

in 2008 to educate members about how

true effect of their proposed climate ac-

they could reduce their energy consump-

tions, and what that is going to cost each

tion, thus lowering bills and helping con-

and every person in this country, is now.

serve resources.

▼

BARRY R. EVANS

District 3 – The Villages Elected to the board in 2005 Mr. Evans served as both a city and a county manager which included many aspects of government including authority over various types of utilities. He is the author of many articles for professional publications like “American City” and “Public Management.”

SECO’s small cadre of energy

We can achieve a thoughtful and balanced approach to our energy needs

services specialists fanned out

in this nation, but we must use some com-

across our 2,000-square-

mon sense in doing so. Yes, renewables

mile

can and should be part of the fuel mix we

and conducted 2,015

look to in future years. However, right now

on-site energy audits.

we are looking at a potential train wreck

These audits show

and only the American public can stop it.

home and busi-

The nation’s electric cooperatives

ness owners ex-

service

territory

have made it easy for co-op members to

actly where energy

express their opinions to Congress by es-

is being wasted and

tablishing a special web site. Any co-op

what they can do to fix

member in the country can go to www.

the problems identified.

ourenergy.coop and send a pre-scripted e-mail asking legitimate questions on affordability and other concerns to their representatives in Congress. The e-mail program automatically determines who the

9 20 08 ANNUAL REPORT

Remaining This same group of six individuals

▼ ROBERT G. GENTRY District 7 – Dunnellon Elected to the board in 1994

also made 106 community presentations

Mr. Gentry retired in 1983 from a distinguished career as an educator and as superintendent of schools in Illinois. He served thirteen years as a member of the advisory committee for Rainbow Lakes Estates and is very active in his church and community.

numerous stories aimed at helping members lower their power costs.

in SECO country to schools, homeown-

SECO’s corporate web site www.

er associations, service clubs, and oth-

secoenergy.com was updated and con-

ers. Their educational program initiative

tains more energy saving information, an

reached approximately 20,000 people

on-line energy store where customers

and covered a variety of topics including

can purchase energy saving products at

how to save energy dollars during sum-

a member discount, and a web-based

mer and winter months.

home energy audit tool that members

SECO’s free Home Energy Management Guide was widely distributed

can use themselves to generate savings in their households.

and offers literally dozens of ways to

In 2008, a team of SECO employ-

reduce power consump-

ees received training through the Flor-

tion and select energy ef-

ida Solar Energy Center in Cocoa and

ficient appliances. Our

passed the exams necessary for them to

customer newsletter

become certified green building inspec-

SECO News ran

tors. We are encouraging builders who want to construct truly green homes to

50% cooling & heating 8% misc 5% lighting

4% cooking 16% 7% laundry water 10% heating refrigerator SECO ENERGY

Vigilant is Important get the advice and legitimate certification

They are always impressed with the

that our inspectors can provide them. We

car’s capabilities, and it exposes them to

think this will be a very important function

hybrid technology and how it can reduce

in the future.

our dependence on foreign oil, conserve

At SECO, the environment is also a priority for us. In fact, the co-op has won

domestic supplies and, in general, help the environment.

a number of awards and notoriety for its

In 2009 we’ll continue to look for

environmental initiatives. So, it was only

innovative ways in which we can help

natural in 2008 that we would look at how

our members further reduce their cost of

hybrid vehicles might be useful in our fleet

energy.

and how we might raise awareness of hy-

The enormous effort to educate

brid potential amongst the general public.

people on how to reduce their energy

We purchased a hybrid vehicle and

even more critical for mem-

battery packs. This made it a truly plug-

bers when Congress fi-

in chargeable vehicle and allowed it to

nally comes clean with

achieve the equivalent of 100 miles per

what they are about

gallon under certain driving conditions.

to do to American

The vehicle has been in daily service since

consumers with an

last March. Its energy efficiency and low

energy policy and leg-

maintenance has indeed demonstrated

islation that panders to

that hybrids can be practical additions to

climate alarmists push-

the SECO fleet.

ing voodoo science and

a special, eye-popping graphic wrap that

EARL MUFFETT

District 6 – Belleview Elected to the board in 1990 Mr. Muffett is the retired owner of Earl’s Well Drilling & Pump Service, Inc., and has been a respected member of our community since moving here from Kentucky in 1968. He is the former owner and operator of a trucking company as well.

costs is ongoing. It will become

retrofitted it with the latest in lithium-ion

Equally important is that the car has

▼

the sensationalist news media.

has prompted hundreds of inquiries from people who see it on the road or at events like green fairs.

11 20 08 ANNUAL REPORT

Senior Management Barry Bowman

Director of Corporate Communications and Energy Services

Ben Brickhouse Director of Engineering and Information Technology

John Chapman Director of Accounting and Finance

Mickey Gauldin Director of Customer Service

Chris Green Sr. Executive Assistant

John LaSelva Director of Reliability and Operations

Alex Markley Director of Human Resources and Corporate Services

Independent Auditorsâ&#x20AC;&#x2122; Report

Board of Directors Sumter Electric Cooperative, Inc. Sumterville, Florida

We have audited the accompanying balance sheets of Sumter Electric Cooperative, Inc. (the Cooperative) as of December 31, 2008 and 2007, and the related statements of revenues and patronage capital and cash flows for the years then ended. These financial statements are the responsibility of the Cooperativeâ&#x20AC;&#x2122;s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Cooperative, as of December 31, 2008 and 2007, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States. In accordance with Government Auditing Standards, we have also issued our report dated February 19, 2009, on our consideration of the Cooperativeâ&#x20AC;&#x2122;s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance, and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and important for assessing the results of our audits.

Purvis, Gray and Company, LLP February 19, 2009 Gainesville, Florida

SECO ENERGY

BALANCE SHEETS December 31, 2008 and 2007

ASSETS 2008 Electric Plant Distribution and Transmission Plant Construction Work in Progress Total Electric Plant (Accumulated Provision for Depreciation and Amortization) Total Electric Plant - Cost Less Depreciation and Amortization Investments Investments in Associated Organizations and Other Special Funds Current Assets Cash and Cash Equivalents Accounts Receivable - Consumers (Less Provision for Doubtful Accounts 2008 - $642,053; 2007 - $632,725) Other Receivables Unbilled Electric Revenues Inventories Prepayments and Other Current Assets Total Current Assets Deferred Charges Total Assets

529,104,957 19,547,384 548,652,341

2007 $

493,522,764 27,201,660 520,724,424

(104,185,819 )

(95,648,064 )

444,466,522

425,076,360

26,553,427

23,948,915

4,418,486

2,188,064

12,044,397 1,767,405 11,907,237 13,199,340 3,499,308 46,836,173 340,651 518,196,773

12,014,746 1,436,924 9,393,531 8,341,201 174,167 33,548,633 198,121 482,772,029

724,069 128,596,536 2,632,933 131,953,538

711,585 120,146,112 2,632,933 123,490,630

332,952,323

309,109,685

8,512,513 27,651,304 8,752,627 7,457,835 52,374,279 916,633 518,196,773

7,864,719 19,135,909 8,005,502 14,071,746 49,077,876 1,093,838 482,772,029

EQUITIES AND LIABILITIES Equities Memberships Patronage Capital Other Equities Total Equities Noncurrent Liabilities Long-term Debt Current Liabilities Long-term Debt - Portion Due Within One Year Accounts Payable Consumer Deposits Other Current or Accrued Liabilities Total Current Liabilities Deferred Credits Total Equities and Liabilities

See accompanying notes.

13 20 08 ANNUAL REPORT

STATEMENTS OF REVENUES AND PATRONAGE CAPITAL December 31, 2008 and 2007 $

Operating Revenues Operating Expenses Cost of Power Transmission Expense Distribution Expense - Operations Distribution Expense - Maintenance Consumer Accounts Expense Customer Service and Informational Expense Administrative, General and Other Expense Depreciation Expense Taxes - Expense Other Expense (Total Operating Expenses)

2008 313,900,724

219,840,120 118,049 12,215,156 22,047,623 9,373,666 1,251,323 10,726,088 16,943,081 51,754 595,459 (293,162,319 )

2007 274,151,535

191,271,420 126,353 11,208,967 18,482,900 8,389,690 1,116,223 9,868,612 15,636,407 66,004 603,079 (256,769,655 )

Operating Margins Before Fixed Charges

20,738,405

17,381,880

Fixed Charges Interest on Long-term Debt

(14,659,237 )

(14,085,036 )

Operating Margins After Fixed Charges

6,079,168

3,296,844

Other Margins G&T Cooperative Capital Credits Other Capital Credits and Margins Total Other Margins

1,869,385 1,442,360 3,311,745

1,749,827 2,453,494 4,203,321

Net Operating Margins

9,390,913

7,500,165

Nonoperating Margins Interest Income Other Nonoperating Income (Loss) Total Nonoperating Margins

129,503 87,770 217,273

Net Margins Patronage Capital, Beginning of Year (Retirement of Capital Credits) Reallocated Capital Credits $

Patronage Capital, End of Year

240,313 (21,874 ) 218,439

9,608,186

7,718,604

120,146,112

113,421,371

(1,157,762 )

(1,004,965 )

11,102

128,596,536

120,146,112

See accompanying notes.

14 SECO ENERGY

STATEMENTS OF CASH FLOWS December 31, 2008 and 2007 2008 Cash Flows from Operating Activities Net Margins Adjustments to Reconcile Net Margins to Net Cash Provided by (Used in) Operations: Capital Credits and Patronage Dividend Certificates Assigned Depreciation Provision for Uncollectible Accounts Changes in Assets - Decrease (Increase) and Liabilities - Increase (Decrease): Accounts Receivable Prepayments and Other Current Assets Deferred Charges Accounts Payable Consumer Deposits Other Current Liabilities Deferred Credits Total Adjustments Net Cash Provided by (Used in) Operating Activities

9,608,186

2007 $

7,718,604

(3,311,745 ) 18,725,844 774,552

(4,203,321) 16,910,205 543,090

(3,648,390 ) (3,325,141 ) (142,530 ) 8,515,395 747,125 (6,630,972 ) (177,205 ) 11,526,933 21,135,119

(3,371,783 ) (69,515 ) 294,134 (2,405,733 ) 979,410 5,804,412 (80,858 ) 14,400,041 22,118,645

Cash Flows from Investing Activities Change in Inventory Contributions in Aid of Construction Received Proceeds from Disposition of Property Proceeds from Redemption of Patronage Capital Certificate Proceeds from Redemption of Other Investments Purchase of Other Investments Extension and Replacement of Plant Plant Removal Cost Net Cash Provided by (Used in) Investing Activities

(4,858,139 ) 4,186,574 90,117

476,001 8,614,250 100,705

673,549 50,745 0 (40,205,912 ) (2,186,785 ) (42,249,851 )

844,900 151,937 (90,000 ) (65,498,940 ) (2,068,345 ) (57,469,492 )

Cash Flows from Financing Activities Line of Credit (Net) Proceeds of Long-term Debt Payments on Long-term Debt Membership Fees Retirement of Capital Credits Reallocated Capital Credits Net Cash Provided by (Used in) Financing Activities

6,404,647 26,000,000 (7,914,215 ) 12,484 (1,157,762 ) 0 23,345,154

(46,085,875 ) 89,500,000 (7,550,834 ) 25,555 (1,004,965 ) 11,102 34,894,983

Net Increase (Decrease) in Cash and Cash Equivalents

2,230,422

Cash and Cash Equivalents, Beginning of Year

2,188,064 $

Cash and Cash Equivalents, End of Year See accompanying notes.

20 08 ANNUAL REPORT

4,418,486

(455,864 ) 2,643,928 $

2,188,064

STATEMENTS OF CASH FLOWS (concluded) December 31, 2008 and 2007 2008

2007

Supplemental Disclosures of Cash Flow Information Cash Paid During the Year for: Interest

14,659,248

14,057,028

9,604,716 2,186,785 (1,230,513 ) 10,560,988

9,073,613 2,068,345 (1,177,653 ) 9,964,305

Supplemental Schedule of Noncash Investing and Financing Activities The Cooperative Retired Certain Assets from its Plant Records as Follows: Cost of Assets Retired $ Plant Removal Costs Material Salvaged Net Reduction in Accumulated Depreciation $

See accompanying notes.

16 SECO ENERGY

NOTES TO FINANCIAL STATEMENTS December 31, 2008 and 2007

Note 1 - Summary of Significant Accounting Policies Sumter Electric Cooperative, Inc. (the Cooperative) is a nonprofit rural electric distribution cooperative organized under the Statutes of the State of Florida. The primary purpose of the Cooperative is to provide electricity to its members located in central Florida through wholesale purchase and subsequent distribution. The accounting policies of the Cooperative conform to generally accepted accounting principles as applied to utility cooperatives and are in accordance with the accounting requirements of the Rural Utilities Service (RUS).

Receivables Receivables are shown at anticipated realizable value. Bad debts are recognized by use of the allowance method. Receivables consist primarily of uncollateralized amounts due from the sale of energy to commercial and residential members of the Cooperative and other related items. Receivables may be considered delinquent after thirty days and are written off after approximately one hundred twenty days past due.

Revenue Recognition and Cost of Power Electric revenues are recognized when billed and are adjusted for unbilled usage through year-end. Power costs are metered and recognized during the period of use. The Cooperativeâ&#x20AC;&#x2122;s retail rates provide for recovery of all power costs incurred.

Utility Plant Electric plant is recorded at original cost with maintenance and repairs charged to expense as incurred. Additions to plant include costs of materials, labor and certain overhead expenses. Depreciable plant replaced or retired is removed from the appropriate asset at average cost; cost being determined by a moving average for identifiable units of property. Such costs, plus removal costs less any salvage values, are charged to accumulated depreciation when normal retirements are made.

Depreciation Provision for depreciation of utility plant in service is based on straight-line composite rates. Depreciation rates are applied by primary account within the plant accounts. Depreciation on general plant assets is based on straight-line rates for specific assets as outlined by RUS ranging from three to twelve years. No provision for depreciation is made for construction work in progress until the construction has been completed and the plant is placed into service.

Materials and Supplies Materials and supplies inventories are stated at weighted average cost.

Cash and Cash Equivalents For purposes of the statements of cash flows, the Cooperative considers all cash and highly liquid investments as cash and cash equivalents. Such investments generally have maturities of three months or less. The Cooperative maintains accounts with several banks in central Florida. As of December 31, 2008 and 2007, accounts at each bank are insured by the FDIC up to $250,000 and $100,000, respectively. As of December 31, 2008 and 2007, amounts on deposit in one or more accounts were in excess of the insured limits.

Investments Investments in capital term certificates are carried at cost, with cost determined by specific identification. Investments in associated cooperatives are accounted for at original cost plus patronage capital assigned less capital credits received.

Patronage Capital Accumulated net margins are credited to patronage capital. The net margins are assigned to individual cooperative membersâ&#x20AC;&#x2122; capital credit accounts based upon their contribution to total patronage capital for the year. Such amounts are assignable to members at year-end; the assignment of capital accounts takes place in subsequent years. Capital credits are returned to members in accordance with the Cooperativeâ&#x20AC;&#x2122;s policies and bylaws. 17 20 08 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2008 and 2007

Income Taxes The Cooperative is a nonprofit organization exempt from income taxes under the provisions of Internal Revenue Code Section 501(c)(12). Accordingly, there is no provision for income taxes in the financial statements.

Compensated Absences Vacation is accrued monthly as it is earned and sick pay is expensed as it is taken.

Accounting Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

Collective Bargaining Approximately 47% of the Cooperativeâ&#x20AC;&#x2122;s work force is covered by a collective bargaining agreement that expires in September 2010.

Note 2 - Electric Plant and Depreciation Rates The following is a summary of the major classes of electric plant and depreciation rates as of December 31, 2008 and 2007: Depreciation 2008 2007 Rates Transmission Plant $ 7,900,363 $ 7,508,168 2.75% Distribution Plant 462,666,982 436,009,055 3.20% Intangible Plant 317,909 317,909 N/A General Plant: Land and Land Rights 1,485,463 1,485,463 N/A Structures and Improvements 20,041,723 14,866,596 2.0% Office Furniture and Fixtures 7,235,399 6,668,152 10.0%-20.0% Transportation Equipment 15,876,365 14,139,507 10.0%-20.0% Shop Equipment 1,904,239 1,651,442 8.4% Laboratory Equipment 1,214,204 1,203,580 10.0% Communications Equipment 2,737,023 2,602,107 4.2% Stores Equipment 462,306 436,200 5.9% Surge Protection Equipment 3,218,225 3,049,210 10.0% Miscellaneous Equipment 895,857 749,486 10.5% Software 3,148,899 2,835,889 20.0% Total Electric Plant in Service 529,104,957 493,522,764 Construction Work in Progress 19,547,384 27,201,660 Total Electric Plant - at Cost $ 548,652,341 $ 520,724,424 Depreciation expense of $16,943,081 (2008) and $15,636,407 (2007) is net of $1,782,763 (2008) and $1,274,452 (2007) charged to clearing accounts, some of which is capitalized.

18 SECO ENERGY

NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2008 and 2007

Note 3 - Investments in Associated Organizations and Other Special Funds Investments in associated organizations and other special funds consist of the following: 2008 Seminole Electric Cooperative, Inc. Patronage Capital Assigned $ 16,742,506 National Rural Utilities Cooperative Finance Corporation (CFC): Patronage Capital Certificates 1,307,373 Capital Term Certificates 4,407,436 Investments in Other Associated Organizations 3,961,575 Special Funds 134,537 Total Investments in Associated Organizations and Other Special Funds $ 26,553,427

2007 $

14,873,121

1,265,313 4,458,181 3,234,825 117,475 $

23,948,915

CFC Capital Term Certificates are purchased as a condition of the mortgage agreements with CFC. At December 31, 2008 and 2007, they consist of the following: 2008 2007 Certificates, 5% (Maturing 2070 to 2080) $ 1,902,010 $ 1,902,010 Certificates, 3% (Maturing 2020 to 2030) 471,400 471,400 Certificates, 0% (Maturing at Variable Dates) 2,034,026 2,084,771 Total $ 4,407,436 $ 4,458,181

Note 4 - Accounts Receivable All of the Cooperativeâ&#x20AC;&#x2122;s consumer accounts receivable are due from consumers in the central Florida area. Each new consumer pays a membership fee and may make a deposit when becoming a consumer. The membership fees and deposits can be retained by the Cooperative in the event of nonpayment of a billing for services. Once a residential consumer establishes a satisfactory credit history, the Cooperative may return the memberâ&#x20AC;&#x2122;s deposit. In addition, accounts receivable at December 31, 2008, includes an estimated reimbursement of $1,000,000 from the Federal Emergency Management Agency for costs associated with Tropical Storm Fay. Other receivables at December 31, 2008 and 2007, include approximately $499,718 and $413,432, respectively, relating to pole rentals due from other utility companies.

Note 5 - Return of Capital Under provisions of the long-term debt agreements, unlimited patronage capital distributions to members are allowed provided equities and margins equal or exceed 30% of total assets after distribution. Effective with the 1991 year, the Cooperative suspended for five years the general capital credit retirements. During 1995, the suspension was lifted and the Cooperative began making general retirements of patronage capital. The equities and margins of the Cooperative represent 25.46% and 25.59% of the total assets at December 31, 2008 and 2007, respectively. Capital Credit retirements in the amount of $1,157,762 and $1,004,965 were paid in 2008 and 2007, respectively.

19 20 08 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2008 and 2007

Note 6 - Detail of Patronage Capital Assignable Assigned (Retired in Current Year) Reallocated Capital Credits (Cumulative Amount Retired in Previous Years) Total Patronage Capital

2008 9,608,186 144,326,983 153,935,169 (1,157,762 ) 0 (24,180,871 ) 128,596,536

2007 7,718,604 136,608,379 144,326,983 (1,004,965 ) 11,102 (23,187,008 ) 120,146,112

Note 7 - Detail of Other Equities 2008 Operating Margins (Prior to 1957) Nonoperating Margins (Prior to 1964) Capital Gains and Losses (Prior to 1964) Donated Capital Discount on Retired Capital Credits Total Other Equities

32,092 19,371 10,533 626 2,570,311 2,632,933

2007 $

32,092 19,371 10,533 626 2,570,311 2,632,933

Note 8 - Noncurrent Liabilities The Cooperative has the following unsecured lines of credit: 2008 CoBank, ACB. Credit Line of $40,000,000, Variable Interest, 3.17% at December 31, 2008, Payable on Demand Bank of America, Credit Line of $40,000,000, Variable Interest, 2.14% at December 31, 2008, Payable on Demand Total Lines of Credit

13,800,000

0 13,800,000

2007

7,395,353 7,395,353

The Cooperative also has an available line of credit with CFC of $12,000,000 in 2008 and 2007. The line of credit with Bank of America expired on December 31, 2008, and was not extended. On January 22, 2009, the Cooperative received notice of approval of long-term loan funds in the amount of $68,500,000. The Cooperative also had approved, but undrawn long-term loan funds available in the amount of $26,000,000 as of December 31, 2007. In accordance with Statement of Financial Accounting Standards (SFAS) Statement No. 6, the line of credit has been classified as long-term debt in an amount not exceeding the undrawn loan funds. The amount, if any, in excess of undrawn loan funds is classified as a current liability.

20 SECO ENERGY

NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2008 and 2007 The following is a summary of the Cooperativeâ&#x20AC;&#x2122;s long-term debt payable to RUS and CFC: 2008 RUS Mortgage Notes 1.875% Notes $ 1,802,143 2.125% Notes 4,782,796 2.375% Notes 1,781,722 2.500% Notes 0 2.550% Notes 26,000,000 2.750% Notes 9,451,011 3.000% Notes 9,239,311 3.125% Notes 7,003,848 3.250% Notes 2,560,359 3.500% Notes 13,058,982 3.625% Notes 13,343,699 3.750% Notes 27,588,880 3.875% Notes 1,433,718 4.000% Notes 3,469,200 4.125% Notes 33,230,901 5.000% Notes 33,728,905 5.070% Notes 44,000,000 5.500% Notes 5,066,854 Total RUS Mortgage Notes 237,542,329 (Current Portion) (5,013,885 ) Long-term Portion $ 232,528,444 CFC Mortgage Notes 3.550% Notes 4.250% Notes 4.550% Notes 4.950% Notes 5.150% Notes 5.250% Notes 5.300% Notes 6.028% Notes 6.150% Notes 6.198% Notes 6.250% Notes 7.000% Notes Total CFC Mortgage Notes (Current Portion) Long-term Portion

0 217,654 461,534 1,072,271 2,171,417 1,443,754 8,522,088 20,668,134 28,170,211 595,191 26,800,253 0 90,122,507 (3,498,628 ) 86,623,879

2007 $

0 3,867,297 1,830,816 1,853,619 0 9,681,266 7,893,066 8,738,907 2,616,844 13,312,974 14,630,745 28,184,481 1,471,534 3,550,849 33,778,691 35,299,165 44,000,000 5,188,484 215,898,738 (4,306,913 ) 211,591,825

147,662 383,683 615,627 1,267,812 2,433,967 1,566,233 9,013,503 20,892,646 28,731,453 683,285 27,840,683 103,759 93,680,313 (3,557,806 ) 90,122,507

RUS mortgage notes are payable to the United States of America for thirty-five-year periods each. Principal and interest are due in monthly or quarterly installments. Certain notes have provisions for interest rate changes at future dates.

21 20 08 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2008 and 2007

Note 8 - Noncurrent Liabilities (concluded) CFC mortgage notes are payable to the National Rural Utilities Cooperative Finance Corporation for thirty-five year periods each. Principal and interest are due in quarterly installments. Certain notes have provisions for interest rate changes at future dates. Certain notes included above are serviced by CFC but have been sold to Farmer MAC. At December 31, 2008 and 2007, the balance of these notes was $21,263,324 and $21,575,931. There were no unadvanced CFC loan funds available to the Cooperative as of December 31, 2008 and 2007, respectively. Interest on long-term debt, all of which was charged to expense, follows:

2007 1,131,302 7,532,648 5,421,086 14,085,036

Long-term debt maturing within each of the five years subsequent to December 31, 2008, is as follows: Mortgage Notes December 31 RUS CFC 2009 $ 5,013,885 $ 3,498,628 $ 2010 5,764,027 3,494,052 2011 6,017,976 3,560,219 2012 6,259,217 3,561,464 2013 6,554,533 3,773,824 Thereafter 207,932,691 72,234,320

Total 8,512,513 9,258,079 9,578,195 9,820,681 10,328,357 280,167,011

Lines of Credit RUS Mortgage Notes CFC Mortgage Notes Totals

Total

237,542,329

2008 419,742 8,880,113 5,359,382 14,659,237

90,122,507

327,664,836

Substantially all assets and revenues of the Cooperative are pledged as collateral for these notes. RUS debt covenants require the Cooperative to maintain certain ratios including a Times Interest Earned Ratio (TIER) of 1.25 and a Debt Service Coverage (DSC) Ratio of 1.25 in two out of the last three years. As of December 31, 2008 and 2007, the Cooperative achieved a Times Interest Earned Ratio of 1.67 and 1.60, respectively and a Debt Service Coverage Ratio of 1.84 and 1.77, respectively.

Note 9 - Employee Benefit Plan The group pension plan for employees was merged into the Retirement and Security Program of the National Rural Electric Cooperative Association (NRECA) effective July 1, 2003. The Retirement and Security Program administered by the NRECA is a defined benefit, multi-employer plan qualified under Section 401 of the Internal Revenue Code and exempt from federal income tax under Section 501(a) of the Internal Revenue Code. The transferred net assets have been recognized in the accounts of the NRECA Plan as of July 1, 2003. The Cooperative incurred past service costs in the amount of $9,191,107 due to the transfer to the NRECA Plan. The total past service cost has been fully amortized. The Cooperative incurred pension expense totaling $2,307,240 and $2,037,217 related to the NRECA Plan during 2008 and 2007, respectively. All employees of the Cooperative meeting age and service requirements can elect to participate in a 401(k) savings plan of the National Rural Electric Cooperative Association. Employees may make contributions to the plan up to the maximum percentage outlined in the plan and the Cooperative will match the employee contributions up to 4.0% of the employeeâ&#x20AC;&#x2122;s salary. Both employee and employer contributions to the plan are funded biweekly. The Cooperativeâ&#x20AC;&#x2122;s contributions to the plan were $800,202 and $697,851 in 2008 and 2007, respectively.

22 SECO ENERGY

NOTES TO FINANCIAL STATEMENTS (continued) December 31, 2008 and 2007 Effective January 2006, the Cooperative adopted an executive compensation plan that allows eligible participants to defer compensation under Internal Revenue Code Section 457. There is no matching employer contribution. This plan is administered by the Cooperative and plan assets are subject to the Cooperatives creditors in the event of bankruptcy or insolvency. Plan assets totaled $134,537 and $117,475 at December 31, 2008 and 2007, respectively.

Self-insured Medical Benefits The Cooperative provides a self-insured medical benefits plan for active and retired employees, trustees and their dependents. Active employees that select dependent or additional coverage are required to pay a premium to cover part of the cost of the coverage they select. Retired employees and trustees are required to pay a premium to cover the full cost of the coverage they select. In connection with the plan, the Cooperative maintains specific excess insurance for claims that exceed $150,000 for any covered individual up to the maximum lifetime reimbursement of $1,850,000 and $1,000,000 aggregate excess insurance for claims that exceed $3,594,512 in the plan year. Based upon the results of a prior actuarial review the Cooperative does not have a liability related to its coverage of retired employees.

Note 10 - Related Party Transactions The Cooperative is one of ten members of Seminole Electric Cooperative, Inc. (Seminole), an electric generating and transmission cooperative. Seminole is the sole supplier of electricity to the Cooperative and has entered into an agreement to supply power to the Cooperative through 2045. Seminole has pledged the power supply agreement of its members to secure certain of its notes and mortgages. The following is a summary of all significant transactions between the Cooperative and Seminole:

Purchased Power Cost Accounts Payable - Power Cost, December 31 Patronage Capital Assigned Patronage Capital, December 31

$ $ $ $

2008 219,840,120 21,033,088 1,869,385 16,742,506

$ $ $ $

2007 191,271,420 13,313,625 1,749,827 14,873,121

Note 11 - Deferred Charges and Credits A schedule of deferred charges and credits are as follows: 2008 Deferred Charges Unamortized: Dues Deposits on Sales and Use Tax Other Total Deferred Charges Deferred Credits Unclaimed Capital Credits Special Equipment Installation Costs Unpaid Billings for Contribution in Aid of Construction Other Deferred Amounts Customer Benevolent Fund Total Deferred Credits

$ $

2007

147,411 194,581 (1,341 ) 340,651

568,790 0

3,109 211,452 133,282 916,633

58,089 148,384 (8,352 ) 198,121 52,889 295,072 35,209 583,645 127,023 1,093,838

Amortization Deferred charges are amortized over periods of one or more years. 20 08 ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (concluded) December 31, 2008 and 2007

Note 12 - Financial Instruments In accordance with SFAS Statement No. 107 of the Financial Accounting Standards Board, the following is a summary of the book and current values of the Cooperative’s financial instruments: Book Current Financial Instruments Value Value RUS Long-term Debt $ 237,542,329 $ 221,844,333 CFC Long-term Debt 90,122,507 77,079,534 CFC Subscription Capital Term Certificates and Interest-bearing Loan Capital Term Certificates 2,373,410 1,433,554 CFC Loan Capital Term Certificates 1,466,654 744,588 Lines of Credit 13,800,000 13,800,000 Total $ 345,304,900 $ 314,902,009

Discount Rates RUS Loans: ■ 5% loans discounted at the RUS insured loan rates for the corresponding maturity dates. The rates range from 4.25% to 5.125%. ■

The RUS variable rate loans are discounted at the RUS insured loan rates as of January 1, 2009, for the corresponding maturity date. The maturity dates range from 1 year to 33 years and the rates range from 1.125% to 5.125%.

CFC Loans: ■ Fixed rate loans discounted at January 1, 2009, CFC fixed rate using corresponding maturity dates for each loan. The maturity dates range from 1 year to 28 years and the rates range from 5.85% to 8.10%. CFC Capital Term Certificates (CTC’s): ■ Loan CTC’s are discounted based on the corresponding maturity dates of the CFC long-term fixed rates. The rates range from 7.15% to 8.05%. ■ Subscription CTC’s were discounted using the thirty-year long-term rate of 8.10%.

Note 13 - Contingency The Cooperative has been identified as a potentially responsible party in a transformer superfund site. While it is not possible to predict the outcome of this matter, its resolution is not expected to have a material effect on the accompanying financial statements.

24 SECO ENERGY 20 0 8 ANNUAL REPORT

“Failure to recognize the need for additional base load power plants will jeopardize the regional economies of parts of this country because reliability will suffer. I am asking you to streamline the permitting process for new nuclear generators and to adequately fund research into clean coal technologies, so we can use our vast reserves of coal in an environmentally friendly fashion. We also have concerns about the proposed carbon cap and trade legislation. As you are aware, this sort of program has the potential to double or triple the cost of electricity generated from coal fired plants.” — Robert Heinz General Manager Dawson Public Power District Nebraska Cooperative Letter to President Obama

“Environmental organizations are fomenting false fears in order to promote agendas and raise money.” — Michael Crichton Best Selling American Author

“The average temperature of Earth’s atmosphere has declined over the last 10 years… the fear mongering hysteria about human-caused global warming is completely unjustified and is totally counterproductive to our nation’s essential needs and security.” — Dr. Martin Hertzberg Retired Navy Meteorologist “Not only is the Kyoto approach to global warming wrong-headed, the climate change establishment’s suppression of dissent and criticism is little short of a scandal. The IPCC should be shut down... In Europe, where climate change absolutism is at its strongest, the quasi-religion of greenery in general and the climate change issue in particular have filled the vacuum of organized religion, with reasoned questioning of its mantras regarded as a form of blasphemy.” — Nigel Lawson Baron Lawson of Blaby, PC British Conservative Politician Former Chancellor of the Exchequer

“Billions of dollars of grant money is flowing into the pockets of those on the man-made global warming bandwagon. No man-made global warming and the money dries up. This is big money, make no mistake about it. Always follow the money trail and it tells a story.” — James Spann, Meteorologist ABC Birmingham, Alabama

Customer Service Center Eustis 50 West Ardice Avenue (352) 357-5600

Groveland 850 North Howey Road (352) 429-2195

Inverness 610 South US Highway 41 (352) 726-3944

Ocala 4872 SW 60th Avenue (352) 237-4107

Sumterville 330 South US Highway 301 (352) 793-3801