TCEC 2023 Annual Report

1,000 staking appointments with members building or expanding their service.

TCEC System Operations team dispatched crews and managed system wide smart devices to restore 1,378 outages.

3,000+ Reached a Meter Milestone of over 20,000 served!

monthly bills paid using TCEC auto-pay service.

40,742 calls answered and 270,547 payments processed by Member Services team in one year.

COUNTING ON Tri-County Electric Cooperative

2,850 members utilize TCEC E-Bill option, a paperless, convenient, and secure option to pay their bill. Resulting in 4,689 sheets of paper & envelopes saved per month!

Average outage restoration time77 minutes

551 144 energy audits were performed for members.

YOU CAN COUNT ON TCEC

Tri-County Electric Cooperative (TCEC) was born from a desire of area farmers and rural residents to own a piece of the American dream afforded to their big city counterparts. When electricity became mainstream it was available only to those populated areas like cities and larger towns. Our rural residents were left in the dark due to no existing electric utilities being interested in serving our area without the high probability of turning a profit.

When TCEC was founded, each member contributed an equal share to gain access to electricity that benefitted not only individual families but the whole community. Equal shares meant each member had an equal vote in cooperative matters. That same principle still holds true today. The co-op was not formed for personal gain, but simply to provide a service that would afford those who live here all the amenities that come with access to electric power.

To provide electricity

The first year of operation (1940 – 1941) TCEC had seven employees and approximately 493 members receiving electric service. The cooperative had one three-phase feeder line from a substation at the Georgia state line to Greenville, running west to the Aucilla crossroads and east to Cherry Lake. Today, 83 years later, TCEC’s 67 employees service 20,137 consumers and maintain more than 3,100 miles of line in Madison, Jefferson, Taylor, and a portion of Dixie counties.

To HELP provide rural broadband

TCEC was founded on the spirit of community, growth, and determination with a focus on our members and local communities. In April 2022, a new initiative was launched by the cooperative’s board and management to build a fiber optic internet to the underserved or unserved areas in north Florida. Your cooperative experienced another opportunity to make an advancement available to our area and to provide technology that in today’s world, has become a necessity, broadband internet service in partnership with Conexon.

Focused on a single purpose of allowing the average household to be able to complete schoolwork online from home; access educational websites for research; conduct bank transactions from home; shopping from home; participate in social media outlets; streaming entertainment; the ability to work from home; access to virtual healthcare; and keeping in touch with family and friends electronically.

To empower our youth

This past year, through our member sponsored Energizing Education Scholarship Fund, area high school seniors received scholarships totaling $52,000 to help them defer expenses as they pursue their secondary education at state colleges, universities, and technical schools. These scholarship recipients represented schools throughout each county in our service territory.

TCEC sponsors several juniors from area high schools to participate in the Electric Cooperative Youth Tour. Applicants submit an essay and interview in person before joining Youth Tour participants from electric cooperatives across the state to tour our State Capitol in Tallahassee. Students are provided an opportunity to participate in a mock bill on the floor of the Senate, hold a mock trial in the Florida Supreme Court and many other opportunities over a two-day period.

Of the applicants, 4-5 students are invited to participate in an all-expense paid trip in June to Washington, D.C. where they meet up with 1,500 students from across the country. Students spend the week meeting with state legislators, learning about government and American History. It’s a once in a lifetime opportunity to expand their knowledge and network and build their skills by introducing them to innovative ideas and cultures. The students return as ambassadors for their communities and advocates for rural electric cooperatives.

To meet needs of our community

Our mission is to provide services and create opportunities to enhance the quality of life for the people and communities we serve. We hope the people and communities we serve will be vibrant and healthy places to live, work, and raise a family. TCEC was built on a strong tradition of solid principles, determination, and dedication. So, the next time you hear TCEC use the phrase “we’re here to serve you,” we hope you know that we mean it. Service is deeply rooted in who we are. We continue to evolve with the times, and in return, we will look for additional ways to serve you and provide opportunities to power our communities.

Julius Hackett, CEO & Bobby Dodd, Board President

COUNTING ON

Reached a Meter Milestone of over

551 20,000

new electric services were added to the TCEC system in 2022.

144 energy audits were performed for members.

served!

1,000 staking appointments with members building or expanding their service.

3,000+ monthly bills paid using TCEC auto-pay service.

2,850 members utilize TCEC E-Bill option, a paperless, convenient, and secure option to pay their bill.

Resulting in 4,689 sheets of paper & envelopes saved per month!

40,742 calls answered and

270,547 payments processed by Member Services team in one year.

Our Pre-Pay program allows members to pay as they need, 888

participants manage their payments and usage as it best works for them. Making monthly, bi-monthly, or weekly payments while managing their account balance and kwh usage through the TCEC mobile app, website, or notifications.

899,808 miles driven and

129,786 hours worked by Operations to construct, restore, and maintain the electric grid.

92,926 feet of underground primary and secondary service installed.

9.6 miles of 3-phase service upgraded to increase system reliability.

553 miles of right-of-way managed in 2022. A crucial component to providing reliable electricity to our members.

9,848 service orders were completed across all departments.

624 new poles installed.

TCEC System Operations team dispatched crews and managed system wide smart devices to restore 1,378 outages with an average 77 minute restoration time.

Commitment to Community

$6,265 in TCEC donations invested back into the communities we serve in the form of donations and sponsorships to local schools, youth athletic organizations, community fundraisers, and more.

741 hours volunteered by TCEC employees at camps, school reading programs, and serving meals to students; an investment of their time to support those we serve.

$180,000 awarded to local students through the TCEC Energizing Education program since 2008, providing college scholarships to members and their dependents to further their education.

995 members participate in the Energizing Education program that rounds up their monthly statement to the next dollar.

In 2022, Tri-County Electric Cooperative (TCEC) announced a three-year broadband workplan to install 2400 miles of fiber optic cable to connect its five offices, 15 substations, and 100% of its membership. Through its partnership with Conexon, TCEC will bring affordable high-speed internet to the unserved and underserved areas of its service territory.

Conexon works with rural electric cooperatives across the country to bring fiber internet to the homes in communities that lack reliable high-speed internet access. Conexon works with the TCEC Board of Trustees and Management to analyze economic feasibility, offering support and oversight in the deployment and the operation of the fiber network build using TCEC’s infrastructure.

TCEC is responsible for determining where the fiber is built and for the engineering and construction of the fiber build to the outside of our members’ homes.

Conexon Connect is the internet service provider (ISP) arm of Conexon and was formed to operate and manage fiber networks like the one being constructed by TCEC.

Conexon Connect is responsible for network connectivity and offering internet services to TCEC members. When TCEC members sign up for internet service, they become a Conexon Connect customer which means Conexon Connect will manage their billing and account and is responsible for the box outside the home to the inside.

The entire project will take 2 – 3 years to complete. Phase I began in July 2022 and is projected to be completed in October 2023. The engineering, construction and make ready for Phase 2 are underway.

PHASE I

600 MILES constructed13 circuits completed

1,910 MEMBERS connected

2 circuits/ 163 miles remaining

BOARD OF TRUSTEES

Meet your newly elected trustee

to be seated at this year’s annual meeting

Mr. Benjamin White is the newest member of the TCEC Board of Trustees having been elected by the members during the District Meeting held in July 2023.

After previously being employed by Waukeenah Fertilizer, he now owns and operates WW Cattle and WW Drone Services based out of Jefferson County Fl. He is a graduate of the Florida Cattlemen’s Leadership Academy Class VIII and serves as the President of the Jefferson County Cattlemen’s Association. He looks forward to giving back to his community by serving as a trustee at his local electric co-op.

Benjamin White District 7 Trustee

Bobby Dodd President District 2

Donnie Waldrep Vice President District 3

Catherine Bethea District 5

Junior Smith District 1

Johnny Edwards District 8

George Webb Secretary/Treasurer District 4

Ann Herring District 6

Benny Bishop District 7

John Cruce District 9

ANNUAL MEETING OFFICIAL NOTICE

ANNUAL MEETING OFFICIAL NOTICE

The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, September 16, 2023, at the Madison County High School Gymnasium located on the campus of the Madison County High School, 2649 US 90, Madison, Florida. Drive-thru registration will take place from 8:00 A. M. to 9:30 A.M. Registered members will receive a $25 bill credit and registration gift.

Starting at 10:00 A.M. the business portion of the Annual Meeting will take place inside the Madison County High School Gymnasium. The meeting will also air live at www.tcec.com/annual-meeting and the TCEC Facebook page: Facebook. com/TriCountyElectricFlorida.

The following matters will be brought before and considered at this Annual Meeting:

I. II. III.

Any business listed in Section 8 of ARTICLE III of the By-Laws of Tri-County Electric Cooperative, Inc.

At this Annual Meeting, pursuant to the Bylaws of the Cooperative, Trustees elected during the District Meetings held in July 2023 will be seated to serve a term of three (3) years as Trustee of the districts as indicated below:

District No. 7.........................Benjamin White

District No. 8.........................Johnny Edwards

District No. 9…………………John Cruce

Several valuable prizes including a grand prize 2010 Ford F150 Pickup will be given away on Saturday following the business meeting. Members who register with their quick registration card 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.com and Facebook page: Facebook.com/TriCountyElectricFlorida.

Members are encouraged to register and attend or tune in to this Annual Meeting of the Cooperative.

THIS OFFICIAL NOTICE OF ANNUAL MEETING DATED this 1st day of September 2023.

George Webb, Secretary

Tri-County Electric Cooperative, Inc.

TRI-COUNTY ELECTRIC COOPERATIVE

82ND ANNUAL MEETING MINUTES - SEPTEMBER 17, 2022

The 82nd Annual Meeting of the members of TriCounty Electric Cooperative, Inc. was held Saturday, September 17, 2022, in the Madison County High School Gymnasium, on the campus of the Madison County High School in Madison, Florida. Drive-through registration began at 8:30 A.M. and the live in-person business meeting started at 11:00 A.M. and simultaneously cast on the Cooperative’s website and Facebook page. Registration began at 8:30 A.M. and by 10:30 A.M. 835 members had registered.

At 11:00 A.M. the meeting was called to order by President Bobby Dodd who introduced Jeff Brewer, Cooperative Vice President of Engineering who gave the invocation followed by the Pledge of Allegiance.

Mr. Dodd introduced the guests present as follows: from Seminole Electric Cooperative, Inc., Mr. Ryan Hart, Director of Communication and Energy Policy, Mrs. Leigh Holmes, Senior Communications Representative, and Mr. Steven Rybicki, Senior Regulatory and Energy Policy Analyst. From Conexon, Mr. Steve Thomas, Construction Project Manager.

Mr. Dodd then introduced the Board of Trustees of the Cooperative as follows: District 1 Mr. Junior Smith;

they chose to attend in person or virtually.

Mr. Hackett discussed the cooperative’s fiber-to-thehome project and provided a project update advising work is underway in three sections of the co-op’s service territory: Western Madison County, Eastern Jefferson County and Steinhatchee in Taylor County.

He discussed the rising cost of electricity due to instability in the global gas market, record breaking temperatures this summer, regional gas pipeline capacity issues and supply shortages.

Mr. Hackett shared with the members Seminole’s Electric Cooperative’s construction of a new high efficiency natural gas fired generation plant. Plans are for this new source of power to be in operation by early 2023. He remarked that Seminole’s plans to build four large utility solar projects has fallen behind schedule due to challenges in acquiring solar panels.

He thanked the Cooperative’s employees who he stated are always going the extra-mile for members.

Mr. Hackett advised that the Cooperative Attorney Mr. Dylan Rivers of the Ausley McMullen Law Firm in Tallahassee would be moderating the business portion of the meeting.

District 3 Mr. Donnie Waldrep; District 4 Mr. George Webb; District 5 Mrs. Catherine Bethea; District 6 Ms. Ann Herring, District 7 Mr. Benny Bishop, District 8 Mr. Johnny Edwards; and newly appointed District 9 Trustee, Mr. John Cruce, who was unable to attend the meeting. He further introduced CEO Julius Hackett and Attorney Dylan Rivers from the firm Ausley and McMullen in Tallahassee, Florida.

Mr. Dodd began his address by remarking that after two years of virtual meetings, it was a pleasure to be able to look in the faces of those members who were in attendance. He reminded the members how in April 2022 the Co-op announced its partnership with Conexon to build a fiber network to 100% of the co-op’s membership. He touched on the progress of the fiber-tothe-home project before introducing the Cooperative’s CEO, Mr. Julius Hackett

Mr. Hackett welcomed the members to the meeting and thanked the members for taking time out of their schedule to participate in the annual meeting, whether

Cooperative Attorney, Dylan Rivers then called the business session to order.

As the first order of business, Mr. Rivers announced that he had verified with Cooperative staff that as of 10:50 A.M. a quorum was established therefore the transaction of business can commence.

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 1, 2022, 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 2019, 2020, and 2021 Annual Meeting of the members of the Cooperative and their approval by the membership if the same were

Continued on pg 11-14

2022 Annual Meeting Drive-thru Registration

found to be in order. That in light of the virtual annual meetings held in 2020 and 2021, members were unable to approve the minutes by the making of a motion to approve. He announced the minutes of the 2019 annual meeting were published in the September 2020 edition of the Tri-County Rural Living Annual Report; minutes of the 2020 annual meeting were published in the September 2021 edition of the Tri-County Rural Living Annual Report; and the minutes of the September 2021 annual meeting were published in the September 2022 edition of the Tri-County Living Annual Report. Upon the motion duly made, seconded, and unanimously carried, the reading of the Official Minutes of the 2019, 2020, and 2021 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 2022, Tri-County Annual Report which was mailed to each member for examination prior to the Annual Meeting.

Mrs. Bethea reported that the Cooperative’s 2021 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 2021 reflected the year ending with net margins from operations of $1.5 million, revenues of $40 million and operating expenses of $37.2 million. There was steady growth in energized meters ending the year with 19,493 energized meters. She reported that $5.3 million dollars was invested in the power system during 2021.

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 $1,243,317 in capital credits last year and returned those dollars back to the membership.

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 District Meeting of District No. 5 held at St. Johns Christian Fellowship Church, Perry, Florida.

DISTRICT NO. 6

Ms. Ann Herring being re-elected as trustee of the district at the duly called District Meeting of District 6 held at Mt. Pleasant AME Church, 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.

Attorney Rivers then advised the members of the Cooperative present at the meeting that the Board of Trustees of the Cooperative had duly proposed an amendment to ARTICLE 1, MEMBERSHIP, SECTIONS 1, 2, 3, 4, 5, 6, AND 7; ARTICLE III, MEETINGS OF MEMBERS, SECTION 1, 3, AND 7; ARTICLE IV, OFFICERS, SECTION 8.; AND ARTICLE VII, NON-PROFIT OPERATION, SECTION 2 of the Bylaws of the Cooperative, and the proposed submission of such amendments to the members of the Cooperative at this meeting for their consideration, acceptance, or rejection. Mr. Rivers then reviewed the proposed amendments to the Bylaws and stated that the amendments had been set out verbatim in the Official Notice of this meeting mailed to the membership of the Cooperative, and were made available online at the cooperative’s website. Members were asked to vote by ballot appearing on the reverse side of the Quick Registration Card. Any member who did not have a Quick Registration Card at the time of registration was given one and signed by the member after voting either Yes or No to the proposed bylaw changes. He noted that the ballots were collected by designated cooperative employees and counted, and from the total ballots cast, there were 588 ballots voted Yes, in favor of the amendments to the bylaws and there were 55 ballots voted No, not in favor of the amendments to the bylaws.

With the passage of the amendments, ARTICLE I. MEMBERSHIP, SECTIONS 1,2,3,4,5, 6 AND 7; ARTICLE III. MEETINGS OF MEMBERS, SECTION 1, 3, AND 7; ARTICLE VI. OFFICERS, SECTION 8; ARTICLE VII, NON-PROFIT OPERATION, SECTION 2, of the Bylaws of Tri-County Electric Cooperative, Inc. were amended to read as follows:

ARTICLE I MEMBERSHIP

Section 1. Requirements for Membership. Any person, firm, association, corporation, or body politic or subdivision thereof may become a member in Tri-County Electric Cooperative, Inc., (hereinafter called the “Cooperative”) by:

(a) Filing a written application for membership therein;

(b) Agreeing to purchase from the Cooperative electric energy as hereinafter specified;

(c) Agreeing to comply with and be bound by

the articles of incorporation and bylaws of the Cooperative and any rules and regulations adopted by the Board of Trustees; and

(d) Paying the membership fee hereinafter specified; provided, however, that no person, firm, association, corporation, or body politic or subdivision thereof shall become a member unless and until the member has been accepted for membership by the Board of Trustees or the members. No member may hold more than one membership in the Cooperative, and no membership in the Cooperative shall be transferable.

At each meeting of the members held subsequent to the expiration of a period of six months from the date of incorporation of the Cooperative, all applications received more than ninety days prior to such meeting shall be submitted by the Secretary to such meeting and, subject to compliance by the applicant with the requirements hereinabove set forth, such applications or any one or more of them may be accepted by vote of the members. The Secretary shall give each such applicant at least ten days’ notice of the date of the members’ meeting to which the member’s application will be submitted and such applicant shall be entitled to be present and heard at the meeting.

Section 2. Joint Membership. A husband and wife may apply for a joint membership and, subject to their compliance with the requirements set forth in Section 1 of this Article, may be accepted for such membership. The term “member” as used in these bylaws shall be deemed to include a husband and wife holding a joint membership and any provisions relating to the rights and liabilities of membership shall apply equally with respect to the holders of a joint membership. Without limiting the generality of the foregoing, the effect of the hereinafter specified actions by or in respect to the holders of a joint membership shall be as follows:

(a) The vote of either separately or both jointly shall constitute one joint vote;

(b) A waiver of notice signed by either or both shall constitute a joint waiver;

(c) Notice to either shall constitute notice to both;

(d) Expulsion of either shall terminate the joint membership;

(e) Withdrawal of either shall terminate the joint membership;

(f) Either but not both may be elected or appointed as an officer or trustee, provided that both meet the qualifications for such office.

Section 3. Conversion of Membership.

(a) A membership may be converted to a joint membership upon the written request of the holder thereof and the agreement by such holder and his or her spouse to comply with the articles of incorporation, bylaws and rules and regulations adopted by the Board of Trustees.

(b) Upon the death of either spouse who is a party to the joint membership, such membership shall be held solely by the survivor. However, the estate of the deceased shall not be released from any debts due the Cooperative.

Section 4. Membership and Service Connection Fees. The membership fee shall be five dollars. Upon the

payment of the membership fee and such service charge and deposit as may from time to time be set by the Board of Trustees of the Cooperative, the member shall be eligible for service.

Section 5. Purchase of Electric Energy. Each member shall, as soon as electric energy shall be available, purchase from the Cooperative all electric energy used on the premises specified in the member’s application for membership, and shall pay therefore monthly at rates which shall from time to time be fixed by the Board of Trustees; provided, however, that the Board of Trustees may limit the amount of electric energy which the Cooperative shall be required to furnish to any one member. It is expressly understood that amounts paid for electric energy in excess of the cost of service are furnished by members as capital and each member shall be credited with the capital so furnished as provided in these bylaws. Each member shall pay to the Cooperative such minimum amount per month regardless of the amount of electric energy consumed, as shall be fixed by the Board of Trustees from time to time. Each member shall also pay all amounts owed by the member to the Cooperative as and when the same shall become due and payable. Payment for electricity shall include for each member a subscription to a publication or newsletter published on a periodic basis and consisting primarily of matters pertaining to rural electrification and to matters of interest to members of rural electric cooperatives.

Section 6. Termination of Membership. Any member may withdraw from membership upon compliance with such uniform terms and conditions as the Board of Trustees may prescribe. The Board of Trustees of the Cooperative may, by the affirmative vote of not less than two-thirds of all the trustees, expel any member who shall have refused or failed to comply with any of the provisions of the articles of incorporation, bylaws or rules or regulations adopted by the Board of Trustees, but only if such member shall have been given written notice by the Secretary of the Cooperative that such refusal or failure makes the member liable to expulsion and such refusal or failure shall have continued for at least ten days after such notice was given. Any expelled member may be reinstated by vote of the Board of Trustees or by vote of the members at any annual or special meeting.

Upon the withdrawal, death, cessation of existence or expulsion of a member the membership of such member shall thereupon terminate. Termination of membership in any manner shall not release a member or the member’s estate from any debts due the Cooperative.

ARTICLE III MEETINGS OF MEMBERS

Section 1. Annual Meeting. The annual meeting of the members shall be held on the 3rd Saturday in September, or as determined by the Board of Trustees, another day falling during the months of September or

October of each year beginning with the year 2022, at such place in the County of Madison, Jefferson or Taylor of the State of Florida, as shall be determined by the Board of Trustees, as shall be designated in the notice of the meeting, for the purpose of announcing Board of Trustees, passing upon reports for the previous fiscal year and transacting such other business as may come before the meeting. Failure to hold the annual meeting at the designated time shall not work a forfeiture or dissolution of the Cooperative.

District present at such duly called district meeting shall constitute a quorum provided, however, that members casting votes during voting hours in an election of trustees shall be counted as present in person for the determination of a quorum as provided by law.

Section 3. Notice of Members’

Meetings.

Written or printed notice stating the place, day, and hour of the meeting and, in case of a special meeting, a district meeting or an annual meeting at which business other than that listed in Section 8 of this article is to be transacted, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) days nor more than forty-five (45) days before the date of the meeting, either personally or by mail, by or at the direction of the Secretary, or upon a default in duty by the Secretary, by the persons calling the meeting, to each member. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail, addressed to the member at member’s address as it appears on the records of the Cooperative, with postage thereon pre-paid. The failure of any member to receive notice of an annual or special meeting of the members shall not invalidate any action which may be taken by the members at any such meeting.

Section 7. Election of Trustees.

(b) In order for a member to be nominated at a district meeting for the position of trustee (including incumbent trustees) the member’s name and intent to run for such position must be received by the Cooperative in writing at its headquarters in Madison, Florida at least 21 days before the district meeting at which nominations for trustee are to be made. After receiving such written notice, the Cooperative will confirm that the member is a resident of the district for which the member intends to be a candidate for trustee, and is otherwise qualified to be a trustee. In the event that the member is not qualified to be a trustee, the Cooperative will notify the member of this in writing prior to the district meeting at which elections for trustee are to be made. The Secretary of the Cooperative shall, prior to the district meeting, certify the names of all prospective candidates who shall satisfy the said requirements.

The district meeting shall be called to order by the trustee representing the district or by another designated representative of the Board of Trustees, or, in their absence, by any member residing within the district. The members shall then proceed to elect a chairman, who shall be someone other than a trustee, and who shall appoint a secretary to act for the duration of the meeting. Fifteen members residing in the

Members of other districts present at the meeting may be heard but shall have no vote. Only those persons who have been certified by the Secretary as provided in Section 7 (b) hereof, shall be considered nominated and eligible for election at the meeting. Candidates must be members residing in the district and must be certified as required by paragraph (b) of this section and possess the qualifications for trustee specified in Section 2 of Article IV of these bylaws.

Voting shall be by ballot. Each member may vote for one candidate. The candidate receiving the highest number of votes shall be declared the trustee of the district. The minutes of such district meeting shall set forth, among other matters, the name of each person nominated at the meeting and the number of votes received by each, and shall specify the trustee of the district. A certified copy of the minutes, signed by the secretary and the chairman of the district meeting, shall be delivered to the Secretary of the Cooperative within five days after such district meeting.

In the event of a tie vote, the winner of a coin toss shall be declared Trustee-elect.

(d) If only one qualified Trustee candidate is nominated or accepts nomination for a Trustee position, the Cooperative will dispense with balloting, no quorum will be required, and the candidate will be declared the Trustee-elect at the District Meeting.

In good faith, inadvertent, and unintended failure of a member to receive notice of the District Meeting does not affect an action taken at the District Meeting. The Cooperative’s attorney shall have authority to rule upon all questions that may arise relating to member voting and the election of Trustees.

(e) Not less than ten days before an annual meeting of the members, the Secretary of the Cooperative shall mail to each member a list of the trustees elected at all district meetings, the names to be arranged by districts. This list may be included with the notice of the meeting.

(f) In the event the election of a trustee does not occur on the day designated herein for the district meeting due to being unable to establish a quorum at the district meeting, the election of those qualified candidate(s) for trustee shall occur at the annual meeting of the members.

(g) Additional candidates for trustee for a particular district may be elected at the annual meeting; provided, no trustee was elected during a district meeting causing the district to be without a trusteeelect. In order for a member to seek election at the annual meeting, the member’s name and intent to run for such position must be received by the Cooperative,

at least fifteen (15) days prior to the Annual Meeting of the members at which a trustee will be elected. After receiving such written notice, the Cooperative will confirm that the member is a resident of the district for which the member intends to be a candidate for trustee, and is otherwise qualified to be a trustee. In the event that the member is not qualified to be a trustee, the Cooperative will notify the member in writing. The Secretary of the Cooperative shall, prior to the annual meeting, certify the names of all prospective candidates who shall satisfy the said requirements. Election of trustees shall be by printed ballot. Each member of the Cooperative present at the meeting shall be entitled to vote for one candidate from the district in which he receives service. The candidate from each district receiving the highest number of votes at this meeting shall be considered elected as trustee.

ARTICLE VI

OFFICERS

Section 8. Chief Executive Officer The Board of Trustees may appoint a Chief Executive Officer (CEO) who may be, but who shall not be required to be, a member of the Cooperative. The CEO shall perform such duties and shall exercise such authority as the Board of Trustees may from time to time vest the CEO

ARTICLE VII

NON-PROFIT OPERATION

Section 2. Patronage Capital in Connection with Furnishing Electric Energy. In the furnishing of electric energy, the Cooperative’s operations shall be so conducted that all patrons, members, and nonmembers alike, will through their patronage furnish capital for the Cooperative. In order to induce patronage and to assure that the Cooperative will operate on a non-profit basis the Cooperative is obligated to account on a patronage basis to all its patrons, members and non-members alike, for all amounts received and receivable from the furnishing of electric energy in excess of operating costs and expenses properly chargeable against the furnishing of electric energy. All such amounts in excess of operating costs and expenses at the moment of receipt by the Cooperative are received with the understanding that they are furnished by the patrons, members and non-members alike, as capital. The Cooperative is obligated to pay by credits to a capital account for each patron all such amounts in excess of operating costs and expenses. The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each patron is clearly reflected and credited in an appropriate record to the capital account of each patron, and the Cooperative shall within a reasonable time after the close of the fiscal year notify each patron of the amount of capital so credited to his account. All such amounts credited to the capital account of any patron shall have the same status as though they had been paid to the patron in cash in pursuance of a legal obligation to do so and the patron had then furnished the Cooperative corresponding amounts for capital.

In the event of dissolution or liquidation of the Cooperative, after all outstanding indebtedness of the Cooperative shall have been paid, outstanding capital credits shall be retired without priority on a pro rata basis before any payments are made on account of property rights of members. If, at any time prior to dissolution or liquidation, the Board of Trustees shall determine that the financial condition of the Cooperative will

not be impaired thereby, the capital then credited to patrons’ accounts may be retired in full or in part. Any such retirements of capital shall be made in order of priority according to the year in which the capital was furnished and credited, the capital first received by the Cooperative being first retired.

After September 17, 2022, and thereafter, the Board of Trustees shall determine the method, basis, priority, and order of retirement, if any, for all amounts thereafter furnished as capital.

Capital credited to the account of each patron shall be assignable only on the books of the Cooperative pursuant to written instruction from the assignor and only to successors in interest or successors in occupancy in all or a part of such patron’s premises served by the Cooperative unless the Board of Trustees, in its discretion and business judgment, shall determine otherwise. In the event that a non-member patron shall elect to become a member of the Cooperative the capital credited to the account of such non-member patron may be applied by the Cooperative toward the payment of a membership fee on behalf of such non-member patron.

Notwithstanding any other provision of these bylaws, the Board of Trustees, at its discretion, shall have the power at any time upon death of any patron, if the legal representatives of his estate shall request in writing that the capital credited to any such patron be retired prior to the time such capital would otherwise be retired under the provisions of these bylaws, to retire capital credited to any such patron immediately upon such terms and conditions as the Board of Trustees, in its discretion and business judgment, and the legal representatives of such patron’s estate shall agree upon; provided, however, that the financial condition of the Cooperative will not be impaired thereby.

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 17, 2022.

Thereafter, a drawing for prizes was held.

AUDITOR’S REPORT AND FINANCIAL STATEMENTS

Opinion

NICHOLS, CAULEY & ASSOCIATES, LLC

400 Corder Road

Warner Robins, Georgia 31088

478-929-3888 FAX 478-923-7896

warnerrobins@nicholscauley.com

INDEPENDENT AUDITOR’S REPORT

Board of Trustees

Tri-County Electric Cooperative, Inc.

We have audited the accompanying financial statements of Tri-County Electric Cooperative, Inc., which comprise the balance sheets as of December 31, 2022 and 2021, 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.

Madison, Florida 32340

Report on the Audit of the Financial Statements

Opinion

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, 2022 and 2021, 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.

Basis for Opinion

We have audited the accompanying financial statements of Tri-County Electric Cooperative, Inc., which comprise the balance sheets as of December 31, 2022 and 2021, 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, 2022 and 2021, 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.

Basis for Opinion

We conducted our audits in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Tri-County Electric Cooperative, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsiblities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

We conducted our audits in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Tri-County Electric Cooperative, Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Tri-County Electric Cooperative, Inc.’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Auditor’s Responsiblities for the Audit of the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether d ue to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Tri-County Electric Cooperative, Inc.’s ability to continue as a going concern for one year after the date that the financial statements are issued.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Governmental Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Tri-County Electric Cooperative, Inc.’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Tri-County Electric Cooperative, Inc.’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 13, 2023, on our consideration of the Tri-County Electric Cooperative, Inc.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Tri-County Electric Cooperative, Inc.’s internal control over financial reporting and compliance.

Other Reporting Required by 7 CFR Part 1773

In accordance with 7 CFR Part 1773, Policy on Audits of Rural Utilities Service (RUS) Borrowers, §1773.33 and clarified in the RUS policy memorandum dated February 7, 2014 (the regulatory requirements for electric borrowers), we have also issued our report dated March 13, 2023, on our consideration of Tri-County Electric Cooperative Inc.’s compliance with the terms, covenants, provisions, or conditions of its loan, grant, and security instruments as set forth in the regulatory requirements for electric borrowers, insofar as they relate to accounting matters enumerated therein. The purpose of that report is to describe the scope of our testing of Tri-County Electric Cooperative, Inc.’s compliance with the regulatory requirements for electric borrowers and the results of that testing, and not to provide an opinion on Tri-County Electric Cooperative, Inc.’s compliance with the regulatory requirements of electric borrowers. That report is an integral part of an audit in considering Tri-County Electric Cooperative, Inc.’s internal control over financial reporting and compliance.

Nichols, Cauley & Associates, LLC

Warner Robins, Georgia

March 13, 2023

ASSETS

UTILITY PLANT

Utility plant in service

Construction work in progress

Less - accumulated provisions for depreciation and amortization

Total utility plant

OTHER PROPERTY AND INVESTMENTS

Investments in associated organizations

CURRENT ASSETS

Cash and cash equivalents

Accounts receivable (less allowance for doubtful accounts of $160,314 in 2022 and $162,213 in 2021)

Other receivables

Accrued utility revenue

Materials and supplies

Other

Total current assets

DEFERRED CHARGES

TOTAL ASSETS

EQUITIES

Memberships

Patronage capital

Other

Total equities

EQUITIES AND LIABILITIES

LONG-TERM DEBT AND OTHER NONCURRENT LIABILITIES

Mortgages (less debt issuance costs of $126,244 in 2022 and $-0 in 2021)

Financial leases

Total long-term debt and other noncurrent liabilities

CURRENT LIABILITIES

Current maturities of long-term debt

Lines-of-credit

Accounts payable

Consumer deposits

Other

Total current liabilities

DEFERRED CREDITS

TOTAL EQUITIES AND LIABILITIES

OPERATING REVENUES

OPERATING EXPENSES

Cost of power

Transmission

Distribution operations

Distribution maintenance

Consumer accounts

General and administrative

Depreciation and amortization

OPERATING MARGINS BEFORE INTEREST EXPENSE

INTEREST EXPENSE

OPERATING MARGINS (LOSS) AFTER INTEREST EXPENSE

G & T AND OTHER CAPITAL CREDITS

NON-OPERATING MARGINS

BALANCE AT DECEMBER 31, 2020

Membership issued, net

Net margins

Retirements of patronage capital

BALANCE AT DECEMBER 31, 2021

Memberships issued, net

Net margins

Retirements of patronage capital

BALANCE AT DECEMBER 31, 2022

December 31, 2022 and 2021 - Statements of Cash Flows

CASH FLOW FROM OPERATING ACTIVITIES

Net margins

Noncash income and expenses included in net margins:

Depreciation and amortization

Amortization of debt issuance costs

Proceeds from contributions for long-term purposes

Provision for uncollectible accounts receivable

G & T and other capital credits

Gain on disposition of utility plant

(Increase) decrease in:

Accounts receivable and accrued utility revenue

Other receivables

Other current assets

Deferred charges

Increase (decrease) in:

Accounts payable

Other current liabilities

Consumer deposits

Deferred credits

Cash flows provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to utility plant, net of salvage and cost of removal

Net change in materials and supplies

Returns of equity from associated organizations

Cash flows used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt

Payments on long-term debt

Proceeds from contributions for long-term purposes

Payments for debt issuance costs

Payments on financial lease obligations

Proceeds on lines-of-credit, net

Net change in memberships

Retirements of patronage capital

Cash flows provided by financing activities

NET CHANGE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS - END OF YEAR

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES

Increase in other equities from retirement of patronage capital

Utility plant financed by finance lease

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash payments for interest

706 2862 West US 90 Madison, FL 32340

Publication Team Eileen Herndon, Kaitlynn Culpepper, Publisher Joanna Forrester 1-800-999-2285 www.tcec.com

2862 West US 90 Madison, FL 32340

TCEC Staff Jeff Brewer, Vice President of Engineering

Eileen Herndon, Vice President of Corporate Services

John Tuten, Vice President of Operations

Wendell Williams, Vice President of Finance

Tri-County Electric Cooperative Rural Living , the voice of your memberowned electric cooperative, is published bimonthly — more if necessary — at no subscription cost to the membership. The publication team is comprised of TCEC employees. Postage is paid at Tallahassee, Fla.

Tri-County Electric Cooperative Rural Living, the voice of your memberowned electric cooperative, is published bimonthly — more if necessary — at no subscription cost to the membership. The publication team is comprised of TCEC employees. Postage is paid at Tallahassee, Fla.

TCEC Staff

Jeff Brewer, Vice President of Engineering

Eileen Herndon, Vice President of Corporate Services

John Tuten, Vice President of Operations

Wendell Williams, Vice President of Finance

Publication Team

Eileen Herndon, Vice President of Corporate Services

Kaitlynn Culpepper, Community Relations Director Publisher Joanna Forrester

1-800-999-2285 www.tcec.com

...for many more years of quality, reliable, affordable electric and broadband service.