ANNUAL REPORT 2020
Some historical photos provided by NRECA
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INTRODUCTION Power to the People: Electric cooperatives are service focused. They are dedicated to providing electricity to rural areas in order to improve the sustainability and well-being of their local and surrounding communities. As late as the mid-1930’s, nine out of ten rural homes were without electric service. Farmers milked their cows by hand in the dim light of a kerosene lantern, and women cooked on wood stoves and did laundry with a washboard. In 1940, shortly after filing the Tri-County Electric Cooperative, Inc.’s (TCEC) Articles of Incorporation with the Secretary of State, the founding fathers held their first meeting. At first all that was required was for 100 citizens to pay the membership fee and “sign up” to validate the Articles of Incorporation. The first try fell short with only 75 members being recruited. Perseverance paid off and within a couple of weeks, 100 members were recruited. The co-op made its way through the rural counties of Madison, Taylor and Jefferson with one three-phase feeder line from a substation at the Georgia line. Right-of-way was cleared and more lines were added. Fast forward to 2020, about 99 percent of the nation’s farms have electric service. Most rural electrification is the product of locally owned rural electric cooperatives like TCEC, created to provide service to its consumer-owners on a not-for-profit basis. Today there are more than 900 consumer-owned electric cooperatives spread across 47 states serving 42 million Americans. TCEC is one of those 900 co-ops and during the last eighty years we’ve grown from a single three-phase feeder line to 16 substations enabling state-of-art technology to carry power across 3,100 miles of line that serve nearly 19,000 meters. We are owned by our members and they are at the heart of every decision made by our Board of Trustees. Join us as we walk through time and see how far we have come over the past 80 years of service. Our founding fathers dreamed of bringing power to the people. We are proud to continue their mission of providing quality, safe, affordable electric service powered by members.
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To move forward, you have to give back. This quote from Oprah Winfrey reflects the special bond and obligation that ties Tri-County Electric Cooperative to the community we serve. As we are preparing for our 80th Annual Meeting, we can’t think of a better time to express how much we love this community and serving you, the members of the co-op. We know when our founding fathers helped to bring electricity to rural Madison, Jefferson and Taylor counties many years ago, the quality of life improved for all. Through the years, other issues needed to be tackled, and we have been at the forefront of helping to address some of those issues. We want to help meet the long-term needs of our community to ensure it continues to thrive – because just like you, we live here too.
Julius Hackett, CEO
While our top priority is to provide safe, reliable and affordable energy to you, equally important is our mission to enrich the lives of the consumer-members (that’s you!) that we serve. This focus to benefit the larger community is central to the way we operate as a cooperative. TCEC knows that electricity is a critical need for modern-day life, but it takes more than poles and power lines to make a community. Over time, our co-op has evolved to meet the changing needs of our community, thereby improving the quality of life for everyone. And that can mean many different things. It can mean programs for Florida’s youth, such as education scholarships or the Electric Cooperative Youth Tour, where we take our community’s brightest young people to Washington, D.C. for a week-long immersion to experience democracy in action. It means partnering with organizations like United Way of the Big Bend, Kiwanis, Rotary, Ability 1st, Senior Centers, as well as local food banks to help families in need and other worthy programs. Over the last eight decades, our community-focused programs and other giving projects have fed hungry families, enabled those in need to keep the lights on, built accessible ramps for members with mobility challenges, and so much more – and we couldn’t do any of this without you, our members. We all benefit from these programs because of you and your neighbors. You empower TCEC through your membership and through your participation in and support of these programs. As a local business, we are proud to power your life and bring good things to our community. We hope you will continue to guide our efforts by sharing your perspective as we plan for the future. The energy landscape is undergoing dramatic change fueled by evolving technology and consumer desires for more options. While the larger environment in which we operate is constantly changing, one thing remains the same. By working together, I’m certain that we can continue to do good things for our community. Now we face a new challenge with the Coronavirus outbreak. Early on, it was clear that the pandemic would change our perception of normal and as we are preparing for our 80th Annual Meeting, the health and well being of our members and employees remains paramount and we are excited to bring our members our very first drive-thru registration and virtual meeting. More information on registration and the virtual meeting can be found on page 16. We look forward to “seeing” you at the 2020 Annual Meeting! 5
Your Board of Trustees as of December 31, 2019
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 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).
Bobby Dodd District 2 Trustee – President Board President, Mr. Bobby Dodd was elected to the Board in 2012. He also serves on the Board of Seminole Electric Cooperative, the wholesale power provider of TCEC. Mr. Dodd is a former member of the Florida Electric Cooperatives Association which is a statewide organization representing 15 electric distribution cooperatives and two generation and transmission cooperatives servinig over 1 million consumers in 53 of 67 Florida counties. He is a former 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 both a Board Leadership and Director Gold certificates through NRECA.
Donnie Waldrep District 3 Trustee – Vice President Mr. Donnie Waldrep was elected to the board in 2016. He was elected as Vice-President of the Board in 2019. He also serves on the board of Florida Electric Cooperatives Association. 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 for Madison County’s 2nd District. He is a Credentialed Director and recently earned a Board Leadership Certificate through NRECA in March 2020. For nearly thirty years he has been the owner/operator of FL-GA Wholesale Tire.
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. Mr. Webb is a Credentialed Director and recently earned a Board Leadership Certificate through NRECA in March 2020.
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 also sits on the Board of Seminole Electric Cooperative. She is a graduate of Florida State University and former school teacher having taught middle school math in Taylor County. 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 both a Board Leadership and Director Gold certificates through NRECA.
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Ann Herring District 6 Trustee Ms. Ann Herring was elected to the board in 2019. She is a lifelong resident of Jefferson County. In addition to serving on the TCEC Board, she holds membership in the following organizations: Community Friends of Jefferson County, Inc. and the Jefferson County Education Foundation, Inc. After more than 30 years of service, Ms. Herring retired from the 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. Ms. Herring is currently working on obtaining her Credentialed Cooperative Director (CCD) certification through NRECA which consists of intensive courses that focus on basic governance and skills required of cooperative trustees.
Albert Thomas, Jr. District 7 Trustee Mr. Albert Thomas, Jr. served on the TCEC Board of Trustees since 2004 and is the former VicePresident and Secretary/Treasurer of the Board and he served as a member of the board of the Florida Electric Cooperatives Association from 2012 - 2019. 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. Mr. Thomas made the decision to not seek re-election in 2020 and therefore a new trustee was elected during the District 7 members meeting held on July 24, 2020.
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.
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 also serves on the board of Florida Electric Cooperatives Association. Mr. Coker has taught in Taylor, Wakulla and Jefferson counties. He was inducted into the High School Coaches Hall of Fame in 2019. Mr. Coker is a graduate of Florida State University. He is a Credentialed Director, and holds a Board Leadership and Director Gold Certificates through NRECA.
Meet Your Newly Elected Trustee to be seated at this year’s Annual Meeting
Benjamin D. Bishop District 7 Trustee Mr. Benjamin D. “Benny” Bishop is the newest member of the TCEC Board of Trustees having been elected by the members during the District Meeting held in July 2020. Mr. Bishop was born and raised in Jefferson County. He is a farmer and he and his family are proud long-time members of TCEC. Mr. Bishop served 12 years on the Jefferson County Board of County Commissioners, he also served on the Jefferson County FSA Committee, the Aucilla Christian Academy Board of Directors as well as a Farm Bureau Director. His roots are deep in Jefferson County and the Aucilla community. Being a lifelong member of TCEC, it has taught him about the important impact a rural electric cooperative has on the citizens in our communities and guided him in his desire to serve as a Trustee of District 7.
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Department Highlights The makeup of the electrical grid since the inception of Tri-County Electric Cooperative has come light years ahead from the day the lights were first turned on. The goal of just delivering power to our members in the early days has shifted to delivering power with the highest reliability possible.
OPERATIONS Monthly, the Operations and Engineering teams meet for the purpose of reviewing and discussing reliability issues with a single focus of finding ways to improve service and reliability for our members. Valuable information is collected and analyzed and often results in action being taken by the Operations department. Some of the initiatives completed during the last twelve months include: Upgrades were made along seven miles of the Lovett circuit out of our Greenville substation. Larger poles and wire were installed on this circuit to increase reliability for our members Completion of Phase I of the replacement of damaged and/or aging wooden poles on the Cross City to Steinhatchee transmission line occurred in the fall of 2019. Phase II of this highly coordinated multicrew project will occur later in 2020. A large part of the Operations budget is designated for right-of-way maintenance. TCEC’s contracted right-of-way crews completed 600 miles of right-of-way maintenance in 2019. They are on pace to complete another 600 miles of cutting and trimming along the right-of-way coming from the Aucilla, Sonnie and St. Augustine substations in 2020.
FINANCE Your Cooperative Finance department has successfully complied with all regulatory agencies requirements over the past year. We remain watchful over the cooperative accounts with various banks we have relationships with and we are always on the lookout for fraudulent transactions to help minimize our exposure to cyber threats. Using best practices, your Cooperative’s Finance department has been able to obtain the maximum reimbursements from FEMA for all declared storms (Hurricanes Hermine, Irma and Michael) in conjunction with the 100% verification process implemented by the Florida Department of Emergency Management. These aforementioned achievements are all instrumental in maintaining the financial resources the cooperative needs to finance the numerous work plan projects and jobs required to provide affordable and reliable services to our members. We establish and maintain strong relationships with material and equipment vendors to ensure we are getting the best value for our purchases and the supply chain remains strong.
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The department remains focused on monitoring of the checks and balances of all financial activities that are reflected annually in clean audits at the end of each year. We stand ready and committed to maximize the utilization of financial resources to ensure all strategic objectives of the cooperative are fulfilled in an efficient and effective manner.
ENGINEERING The Engineering team is constantly analyzing and determining the areas of most critical need within the system to ensure system stability and reliability. Projects are constantly developed and implemented to remediate problem areas. A project that will be completed this year is a five-year effort of connecting all the Cooperative’s main circuits with full remote control from the centralized control center. With this remote control and data collection, the system control team can dispatch linemen and resolve outages in a much quicker fashion. The advances in technology have created the emergence of the smart grid or self-healing grid. This is an initiative to put electronic devices in key locations to isolate areas that have a problem and to immediately restore power to as many people as possible through automatic switching. Your cooperative continues to implement projects every year to automate the distribution of power using smart grid technology.
CORPORATE SERVICES Advances in technology have drastically changed the world we live in and the way we operate each day. The impact of technology on work has increased the rate of production and speed at which business occurs making our employees more efficient. What use to take hours now can take minutes. Messages and information can be exchanged instantly between co-workers. Today, TCEC members have their electric cooperative at their fingertips with online and mobile account management options. Although it creates a convenience for members on the go, members have not lost the face-to-face interaction that they have enjoyed in our offices or drive-thru locations over the years. Taking advantage of these advances in technology and implementing them throughout the co-op made the hurdles of the COVID-19 pandemic easier to manage. Thanks to online communication tools, technology enabled us to work more closely in some ways as we were required to work remotely. While employees were deployed to work distantly, with laptops, online phone systems, and other technology, there was little down time and employees were able to continue serving members, no matter their location. For a brief period, because of COVID-19, TCEC made the decision to close its lobbies, and members though not able to come into the office, were still able to manage their electric account in person through the drive-thru, online or on their mobile device. Member satisfaction and excellent customerservice remains the top priority of the Corporate Services department.
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TCEC Employees in
A.C.T.I.O.N. Over the last 80 years TCEC employees have often been found serving in the community. Having a passion for service to the communities we power is standard amongst employees here at the co-op. Local food drives, serving meals to young athletes, visiting nursing homes, building wheel chair ramps, raising money for charity, or donating blood; employees always find a way to give back. In 2019, a bright idea amongst employees was given full support by management and the A.C.T.I.O.N Fund was born. A.C.T.I.O.N – A Cooperative Team Investing in Our Neighborhood is an employee directed giving program to allow employees to have a payroll deduction or make single contributions to a charitable fund managed by a committee of TCEC employees. The fund is used to make charitable contributions on behalf of contributing employees to various 501(c)3 organizations in Madison, Jefferson, Taylor and Dixie County. The fund is also used to assist employees and community members in need. During the short time that TCEC employees have been in A.C.T.I.O.N – numerous organizations including Taylor County Special Olympics, United Way, Second Harvest Food Bank and Madison Farm Share program have all received A.C.T.I.O.N funds to help power the work they are doing for others in need.
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Connect to your Co-op Ways to Manage your TCEC Account
www.tcec.com
800.999.2285 or 850.973.2285
By signing in 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.
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.
TCEC FL - Mobile App
Text TCEC to 800.999.2285
The TCEC FL mobile app is 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.
Report your outage and receive outage updates all via text messages.
Ways to Pay TCEC offers many ways that members & consumers can make payments. All payment options are secure and free, so you can choose what works best for you.
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.
E-Check or Credit Card
Pay by phone with electronic check by calling 1-800-999-2285. Have TCEC account number, checking account number and bank routing number ready. For credit card, Pay by phone by calling 1-800-9992285. Please have TCEC account number, 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 to pay.
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 with auto-pay include your Visa, MasterCard or checking account. With other advantages such as payment alerts and maximum payment amount options you never have to worry about your account.
District Office Locations TCEC has five offices across our service territory that are staffed from 8-5 Monday – Friday to serve our members 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 your 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
2862 W US 90 Madison, FL 32340
1500 South Jefferson St. 700 South Jefferson St. Perry, FL 32348 Monticello, FL32344
@TriCountyElectricFlorida
Monticello Office
@TCECFlorida @tricountyelectricflorida
Greenville Office
Steinhatchee Office
13796 West US 90 Greenville, FL 32331
14-15th St. SE Steinhatchee, FL 32359
@tricountyelectricflorida
Tri-County Electric
Cooperative – Florida
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District Meetings Held in July As a member-owned cooperative, we follow the Cooperative Principals. In particular, during July each year, we support Principal 2: Democratic Member Control, by holding member meetings in three of our nine districts. This year, the members of District No. 7, 8 and 9 elected a member as District Trustee to represent them for a term of three years. Due to the Coronavirus outbreak TCEC management faced new challenges and they looked ahead for ways to conduct the meetings in a safe and efficient way. From this was born the idea to conduct the meetings in an innovative format – hold a drive-thru meeting and allow our members to register and cast their ballots from the safety of their vehicles. From there plans were finalized – registration and voting times were extended, TCEC employees were stationed at registration stops and voting stops. When the meeting started, members could listen to the meeting being broadcast over FM radio or they could access the TCEC website or social media pages to view the election results. On July 21, 2020, a meeting of the members of District 9 was conducted at Blue Creek Baptist Church at Perry, FL. Mr. Elmer Coker was an unopposed candidate and was unanimously elected by the members to his sixth term as a Trustee of the Board. On July 23, 2020, a meeting of the members of District 8 was held at the Lake Bird Methodist Church at Perry, FL. Two candidates qualified for the District 8 Trustee seat, Mr. W. Kyle Rowell and Mr. Johnny Edwards (incumbent). Mr. Thomas R. “Tommy” Hardee, the Madison County Supervisor of Elections supervised the voting of the members and Mr. Johnny Edwards was re-elected as District 8 Trustee to serve his second term on the board. On July 24, 2020, the members of District 7 met at Salem AME Church at Monticello, FL. Two qualified candidates were on the ballot, Mr. Lee E. Plummer and Mr. Benjamin D. Bishop. The Madison County Supervisor of Elections supervised the voting of the members and Mr. Benjamin D. Bishop was elected as District 7 Trustee. Mr. Bishop will be seated during the September 19, 2020 Annual Meeting.
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TRI-COUNTY ELECTRIC COOPERATIVE, INC.
79th Annual Meeting Minutes September, 21, 2019 The 79th Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held Saturday, September 21, 2019, 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 Mercy Mountain Boys Band entertained. Following the music, a short video was presented showcasing the 2019 NRECA Washington, D.C. Youth Tour delegates. The meeting was called to order by Vice President Bobby Dodd with the Taylor County High School Junior ROTC presenting the colors followed by the Pledge of Allegiance given by Miss Gracie Galbraith, 2019 NRECA Youth Tour Delegate. Miss Jadyn Gore, a participant in the 2019 NRECA Washington, D.C. Youth Tour, gave the invocation. Mr. Dodd introduced the guests present as follows: from Seminole Electric Cooperative, Inc., Ms. Lisa Johnson, CEO/General Manager, Ms. Trudy Novak, Vice President of Member Services and External Affairs, Ms. Jo Fuller, Vice President and CFO, Mr. Charlie Huguenard, Vice President of Power Production, Mr. Ryan Hart, Director of Communication and Energy Policy, Ms. Leigh Holmes, Senior Communications Representative, Mr. Steven Rybicki, Senior Regulatory and Energy Policy Analyst; Ms. Alisha Houndshell, Director of Communications and Statewide Services with Florida Electric Cooperatives Association and Mr. Thomas Demps, Taylor County Commissioner District 5. Mr. Dodd introduced the Board of Trustees of the Cooperative as follows:
newly elected District 6 trustee Ms. Ann Herring; District 1 Mr. Junior Smith; District 3 Mr. Donnie Waldrep; District 4 Mr. George Webb; District 5 Mrs. Catherine Bethea; District 8 Mr. Johnny Edwards; and District 9 Mr. Elmer Coker. He further introduced CEO Julius Hackett and Attorney Dylan Rivers from the firm Ausley McMullen in Tallahassee, Florida. Mr. Dodd began his address to the members in attendance by stating since 1940, sixty-nine men and women have served on Tri-County Electric Cooperative’s Board of Trustees and during the cooperative’s 79 years of operation, the board has been comprised of co-op members using electricity in their homes supplied by TriCounty Electric Cooperative. He added that because of having the distinction of being governed by members residing in the community, it has created a strong local consumer perspective in the boardroom. Making sure the board pays close attention to member satisfaction, with emphasis on making investments into the electric grid to improve reliability, implementation of technology upgrades to the electric grid system to help get the lights back on following storms. He concluded his remarks by reminding members of the importance of being prepared for the future and maintaining a knowledgeable and motivated workforce that keeps service to the members a top priority. Mr. Dodd then welcomed to the podium, the CEO of Tri-County Electric Cooperative Mr. Julius Hackett. Mr. Hackett welcomed the members to the meeting and noted that due to the meeting schedule falling within the peak of hurricane season, weather seems to provide plenty of conversation 13
Minutes continued –
during annual meetings. He discussed the trend of stronger storms and more extreme weather patterns experienced over the last few years. He asked the question of whether this is a natural occurring weather cycle or reaction to the effects of carbon emissions and other greenhouse gasses in the atmosphere? Mr. Hackett described the largest sources of carbon emissions (power generation and transportation) and the changes underway in the power generation business to lower those emissions levels. He discussed how the cooperative’s wholesale power provider is moving forward with replacing coal power with cleaner alternatives using natural gas and solar energy. Mr. Hackett shared with the members that over the past 10 years energy use sales remained flat except for unusual weather occurrences and this is attributed to the use of energy star appliances, smart thermostats, insulating of homes and installing more solar systems. He spoke of electric cars and trucks and explained the cost of charging an electric vehicle is about one-half the cost of gasoline. Mr. Hackett shared that the trend in electric vehicles is expected to pick up steam as more charging stations are added along major roadways and in rural areas. Another benefit of these vehicles is they have zero carbon emissions. Mr. Hackett complimented the board in recognizing the benefits of maintaining a modern electric grid and making resources available to help the cooperative prepare for the future and thanked the employees for working hard on behalf of the members. In closing he spoke of the importance of not only providing power to the members but the significance of empowering the communities served by the cooperative. Mr. Dodd returned to the lectern to introduce the guest speaker, Mrs. Nanette Hitchcock, a motivational speaker. Mrs. Hitchcock spoke on how our 14
influence matters in the lives of others and each day we should focus on the success of others by being a positive influence. 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 132 members of the Cooperative was necessary to constitute a quorum for the transaction of business and that at 9:42 A.M. 462 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 September 7, 2019, 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 2018 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 2018 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 2019, Tri-County Annual Report which was mailed to each member for examination prior to the Annual Meeting. Mrs. Bethea reported that the Cooperative’s 2018 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 2018 reflected the year ending with net margins from operations of $1.9 million, revenues of $39.8 million and operating expenses of $36.6 million. There was a slight increase in energized meters ending the year with 18,391 energized meters. She reported that $5.3 million dollars was invested in the power system during 2018. 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 $940,561 in capital credits last year and returned those dollars back to the membership.
District Meeting of District No. 5 held at St. Johns Christian Fellowship Church, Perry, Florida. DISTRICT NO. 5 Ms. Ann Herring being elected as the district’s official candidate at the duly called District Meeting of District No. 6 held at the Florida-Georgia Citrus plant, Monticello, Florida. 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. 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 11:31 A. M., Saturday, September 21, 2019. Thereafter, a drawing for prizes was held.
Mr. Rivers then stated the next order of business was the announcement of the three trustees elected during July District Meetings in Districts 3, 5 and 6 to serve for a term of three (3) years and according to Article III, Section 7 (a) of the Bylaws, District Meetings were held for the purpose of electing a person as trustee to represent members located within those three districts. DISTRICT NO. 3 Mr. Donnie Waldrep being re-elected as trustee of the district at the duly called District Meeting of District No. 3 held at Concord Baptist Church, Greenville, Florida. DISTRICT NO. 5 Mrs. Catherine Bethea being re-elected as trustee of the district at the duly called 15
Annual Meeting Official Notice The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, September 19, 2020, on the campus of the Madison County High School, 2649 US 90, Madison, Florida. Due to safety precautions surrounding the Covid-19 pandemic the Annual Meeting business meeting will be presented virtually. Drive-thru registration will take place between 8:30 A.M. to 10:30 A.M. and drive-thru registration lanes will be set up in the parking lot at the high school. Members who register using their Quick Registration cards at drive-thru registration will receive a $40 bill credit and registration gift. Beginning at 2:00 P.M. a pre-recorded business meeting will be streamed on the cooperative’s webpage: www.tcec.com/annual-meeting and Facebook page: facebook.com/TriCountyElectricFlorida 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 7, 8 and 9 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. 7.........................Benjamin D. Bishop
District No. 8.........................Johnny Edwards
District No. 9…………………Elmer Coker
III. Five grand prizes and a 2001 Ford F250 will be given away on Saturday following
the business meeting. All members registered at the Annual Meeting will be included in the drawing for prizes. The drawing for prizes will be streamed on the cooperative’s webpage: www.tcec.com/annual-meeting and Facebook page: facebook.com/ TriCountyElectricFlorida Members are urged to register and tune in to this Annual Meeting of the Cooperative. THIS OFFICIAL NOTICE OF ANNUAL MEETING DATED this 4th day of September, 2020. Catherine Bethea, Secretary Tri-County Electric Cooperative, Inc. 16 16
Treasurer’s Report The Cooperative’s 2019 Financial Report was prepared by Nichols, Cauley and Associates of Warner Robbins, Georgia, which is an independent firm of certified public accountants who specialize in electric cooperatives, banking and other industries. A copy of this report can be found on pages 18 and 19 of this Annual Report. The results of this audit disclosed no instances of non-compliance or other matters that are required to be reported under Government Auditing Standards. Some of the most significant financial highlights for 2019 included: Catherine Bethea TCEC ended the year with a net margin from operations of $1.8 million with revenues of $40.0 million, and with operating expenses of $36.9 million at the end of 2019. We had a slight increase in energized meters with a year-end balance of 18,659. Generating positive margins places Tri-County Electric Cooperative in a very good position for the future. We continue to invest in technolaogy upgrades, poles, wires, substation equipment and fully fund right-of-way clearing and herbicide spraying under power lines in order to provide a reliable and efficient distribution system. The amount invested in the power system in 2019 was $5.1 million dollars. Overall the financial condition of your cooperative remains strong. As a display of this financial strength, the Board of Trustees authorized the retirement of $995,414 in capital credits last year and returned those dollars back to the membership. Continuing to make investments that will benefit the membership and managing our costs are extremely important to the Board of Trustees and Officers and employees of your cooperative. On behalf of your Board of Trustees, we thank you for the opportunity to serve you.
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Tri-County Electric Cooperative, Inc. Florida 28 Madison Balance Sheets Dec. 31, 2019
2018
$111,969,085 2,337,542 114,306,627
$109,334,482 1,312,676 110,647,158
32,893,243 81,413,384
31,187,660 79,459,498
9,848,557
9,306,902
1,541,039
1,726,135
2,236,844 1,450,000 414,024 83,063 5,724,970 554,220 97,541,131
2,719,377 1,450,000 422,948 83,203 6,401,663 596,042 95,764,105
$66,530 36,121,478 1,672,327 37,860,335
$65,555 35,654,507 1,353,290 37,073,352
47,232,907 417,556 47,650,463
47,517,640 422,456 47,940,096
2,448,342 3,776,533 2,614,423 1,179,667 1,895,715 11,914,680 115,653 97,541,131
2,423,030 2,737,530 2,451,734 1,150,222 1,872,488 10,635,004 115,653 95,764,105
Dec. 31, 2019
2018
$40,028,165
$39,757,362
23,180,714 24,860 2,240,835 3,556,940 1,629,184 2,923,206 3,344,417 36,900,156
23,180,605 13,617 2,356,632 3,681,574 1,473,846 2,656,370 3,259,832 36,622,476
Operating margins before interest expense
3,128,009
3,134,886
Interest expense
1,916,188
1,908,134
Operating margins after interest expense
1,211,821
1,226,752
604,331
598,201
Assets
Electric plant: In service - at cost Construction work in progress
Less - accumulated provisions for depreciation and amortization
Other investments Investments in associated organizations Current assets: Cash and cash equivalents Cash Accounts receivable (less allowance for doubtful accounts of $164,913 for 2019 and $171,271 for 2018) Unbilled electric revenue Materials and supplies (at average cost) Other Deferred debits Total assets
Equities and Liabilities Equities: Membership fees Patronage capital Other
Long-term obligations, net of current maturities: Mortgage notes Capital leases Current liabilities: Current maturities of long-term obligations Lines-of-credit Accounts payable Consumer deposits Other Deferred credits Total equities and liabilities
Tri-County Electric Cooperative, Inc. Florida 28 Madison
Statements of Revenues Operating revenues Operating expenses: Cost of power Transmission Distribution operations Distribution maintenance Consumer accounts General and administrative Depreciation and amortization
G & T and other capital credits Non-operating margins Net margins
18
11,884
85,452
$1,828,036
$1,910,405
Tri-County Electric Cooperative, Inc. Florida 28 Madison
Statements of Cash Flows Cash flow from operating activities: Net margins Noncash income and expenses included in net margins: Depreciation and amortization G & T and other capital credits Provision for losses on accounts receivable (Gain) loss on disposal of plant Decrease (increase) in: Accounts receivable and unbilled electric revenue Other current assets Deferred debits Increase (decrease) in: Accounts payable Other current liabilities Cash flows provided by operating activities Cash flows from investing activities: Construction and acquisition of plant Plant removal costs Materials salvaged from retirements Decrease (increase) in materials and supplies Proceeds from disposal of plant Proceeds from retirement of associated organizations patronage Cash flows used by investing activities Cash flows from financing activities: Retirements of patronage capital credits Proceeds from long-term debt Payments on long-term debt Payments on capital lease obligations Advances on lines-of-credit, net Increase in: Membership fees Consumer deposits Cash flows used by financing activities Net change in cash and cash equivalents Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year
Dec. 31, 2019
2018
$1,828,036
$1,910,405
3,595,229 (604,331) (30,380) 43,969
3,500,433 (598,201) (64,984) (30,300)
512,913 140 41,822
(387,141) (1,255) 41,822
162,689 23,227 5,573,314
(33,035) 100,282 4,438,026
(5,132,687) (326,653) 6,282 8,924 40,851
(3,119,537) (271,046) 9,262 (36,794) 130,573
62,676 (5,340,607)
67,982 (3,219,560)
(1,042,028) 2,004,452 (2,259,449) (190,201) 1,039,003
(787,397) 1,781,000 (2,152,157) (151,255) 398,543
975 29,445 (417,803) (185,096) 1,726,135 $1,541,039
685 175 (910,406) 308,060 1,418,075 $1,726,135
$1,916,188
$1,908,134
Supplemental disclosures of cash flow information Cash paid during the year
Interest
Supplemental schedule of noncash investing and financing sources:
Increase in other equities resulting from discounting capital credit retirements
$319,037
$275,631
Electric plant financed by capital lease
$180,877
$243,194
Auditor’s Report The independent accounting firm of Nichols, Cauley and Associates, LLC, Warner Robins, Ga., audited the financial statement of Tri-County Electric Cooperative, Inc. which comprise the balance sheets as of Dec. 31, 2019 and 2018 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. 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, 2019 and 2018, 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.
19
2862 West US 90 Madison, FL 32340
TCEC Staff
Tri-County Electric Cooperative Rural Living,
Publication Team
the voice of your member-owned electric Jeff Brewer, Vice President of Engineering
cooperative, is published bimonthly — more
Eileen Herndon, Executive Assistant
Stephanie Carroll, Vice President of Corporate Services
if necessary — at no subscription cost to
Kaitlynn Culpepper, Community Relations Director
the membership. The publication team is
Publisher
comprised of TCEC employees.
Joanna Forrester
Eileen Herndon, Executive Assistant Darrell Tuten, Vice President of Operations Wendell Williams, Vice President of Finance
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1-800-999-2285 www.tcec.com