2021 ANNUAL REPORT
INTRODUCTION
A Co-op Culture Over the years, you’ve heard how Tri-County Electric Cooperative (TCEC) is different––because we’re a cooperative. Our business model sets us apart from other utilities because we adhere to seven guiding cooperative principles that reflect core values of honesty, transparency, equity, inclusiveness and service to the greater good of the community. Electric cooperatives, including TCEC, have a unique and storied place in our country’s history. We democratized the American dream by bringing electricity to rural areas when for-profit electric companies determined the effort too costly. Back then, cities were electrified, and rural areas were not, creating the original rural-urban divide. Newly established electric lines helped power economic opportunity in rural areas. Today, that spirit of equity and inclusion is a vital part of our co-op DNA. Equal access for all When our electric co-op was founded, each member contributed an equal share in order to gain access to electricity that benefited individual families as well as the larger local community. Each member had an equal vote in co-op matters. That sense of equity and inclusion is still how we operate today. TCEC was built by and belongs to the diverse communities and consumer-members we serve. Membership is open to everyone in our service territory, regardless of race, religion, age, disability, gender identity, language, political perspective or socioeconomic status. 2 | 2021 ANNUAL REPORT
Clean Up Madison Volunteers
for All We know members of our community have different needs and perspectives, and we welcome diverse views on all issues under consideration by the co-op. The more viewpoints we hear, the better we are able to reflect the needs of all corners of our community. Inclusion While our top priority is providing quality, safe, and affordable electric service, we also want to be a catalyst for good in our community. Because we are your local electric cooperative, co-op revenues stay right here in our community. In turn, we invest in our diverse community base through scholarship programs, charitable giving, educational programs and more. We strive to make long-term decisions that improve and enrich the communities we serve. While today’s world is radically different than it was when TCEC was founded, our cooperative values have stood the test of time and remain just as relevant today. We recognize that today’s co-op members expect more, and our pledge to you––the members we proudly serve––is to promote a cooperative culture of inclusion, diversity and equity for all.
2021 2021 ANNUAL ANNUAL REPORT REPORT || 33
4 4 || 2021 2021ANNUAL ANNUALREPORT REPORT
BY THE COMMUNITY, FOR THE COMMUNITY Cooperatives are different than other types of businesses. When the market declines to offer a product or service, or does so at a very high price, co-ops intervene to fill the need. Similar to how TCEC was built by members who came together to bring electricity to our community, cooperatives are conveners for the common good. As a co-op, we are well-suited to meet the needs of the community because we are locally governed. TCEC’s leadership team and employees live right here in the community. Our board of trustees, who helps set long-term priorities for the co-op, live locally on co-op lines. These board members have been elected to the position by neighbors like you. Learn more about your Board of Trustees on page 6 and 7. We know our members (that’s you!) have a valuable perspective. That’s why we are continually seeking your input. Whether through community events, our social media channels or the annual meeting, we want to hear from you.
Another feature that sets our co-op apart from a traditional utility is one of our core principles, “Concern for Community.” We partner with local schools and other organizations, 4-H clubs and other worthy programs. We participate in 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. Ultimately, the larger community benefits from these programs because of you and your neighbors. You empower the co-op through your membership and through your participation in and support of these programs. We hope you will think of TCEC as more than your energy provider, but instead as a local business that supports this community and powers economic development and prosperity for the people. We will continue to learn from our members about their priorities so that we can better serve you – because your electric co-op was built by the community, for the community.
“
It is our mission to enrich the lives of the members we serve.
“
Our close connection to the community ensures we get a first-hand perspective on local priorities, thereby enabling us to make more informed decisions on long-term investments, such as high-speed broadband, community solar programs, equipment and technology upgrades and electric vehicle programs.
Julius Hackett CEO
We look forward to seeing you at the 81st Annual Meeting on Saturday, September 18th. This year will be our second year of holding a drive-thru registration and it all starts at 8:30 a.m. Don’t forget to tune into our webpage or Facebook page for the live virtual meeting at 11:00 a.m. where we will report on the business of your co-op over the last year and we’ll hold our annual drawing for prizes! 2021 ANNUAL REPORT | 5
BOARD OF TRUSTEES Junior Smith
Bobby Dodd
District 1 Trustee
District 2 Trustee – President
Mr. Junior Smith was elected to the TCEC Board of Trustees in 2006 bringing his extensive experience in the electric power industry, having worked nearly 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).
Board President, Mr. Bobby Dodd was elected to the Board in 2012. He also serves on the Board of Seminole Electric Coopeative, the wholesale power provider of TCEC. Mr. Dodd formerly served on the board of Florida Electric Cooperatives Association which is a statewide organization representing 15 electric distribution cooperatives and two generation and distribution cooperatives serving over 1 million consumers in 53 of 67 Florida counties. He 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. Since 2019 he has served as Vice-President of the Board of Trustees. Also, he is a member of the board of Florida Electric Cooperatives Association. Mr. Waldrep is a County Commissioner District 2 for Madison County. He is the owner/operator of FL-GA Wholesale Tire. In 2020 he obtained his Director Gold certification through NRECA, this is in addition to his previously earned Credentialed Director and Board Leadership certfications.
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George Webb District 4 Trustee Mr. George Webb was elected in 2015 to the TCEC Board of Trustees. In 2014 he retired after 41 years of service to the cooperative having served as the former Manager of Member Service and Administration. Mr. Webb’s extensive knowledge of cooperative finance, budgeting and member service has been of great value to our board of trustees. He also is recognized by NRECA for his dedication to continuing his education in the industry and has earned his Credentialed Director certificate, Board Leadership certification and obtained Director Gold status in 2020.
Catherine Bethea
Ann Herring
District 5 Trustee – Secretary/Treasurer
District 6 Trustee
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 certificate through NRECA.
Benny Bishop District 7 Trustee Mr. Benjamin D. “Benny” Bishop was elected to the board in 2020. Mr. Bishop was born and raised in Jefferson County. He is a farmer and he and his family have always been members of TCEC. Mr. Bishop formally served on the Jefferson County Board of County Commissioners. 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 which he credits to motivating him to serve the members of District 7.
Ms. Ann Herring was elected to the board in 2019. In addition to serving on the TCEC Board of Trustees, 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. In 2020 Ms. Herring was recognized by NRECA for obtaining her Credentialed Cooperative Director (CCD) certification. She is currently working on acquiring her Board Leadership certification.
Johnny Edwards District 8 Trustee Mr. Johnny Edwards was elected to the TCEC Board in 2017. In 2018 he received his Credentialed Cooperative Director Certification through NRECA. He is now working to obtain his Board Leadership Certification. Mr. Edwards is employed at Georgia Pacific/Foley Mill and has worked there for 30 years as a 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.
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DEPARTMENT HIGHLIGHTS
ENGINEERING There has been continuous growth over the past few years as new members move into the TCEC service territory. TCEC staking technicians were able to maintain a safe work environment meeting with members throughout the COVID-19 pandemic while on a pace to set a record number of meters during 2021. The engineering team recently completed upgrades to the Aucilla substation that will allow the TCEC system control center to have visibility in the Aucilla area as well as remotely control the devices within the substation. This visibility allows the system control operators to activate linemen quickly and also allows for efficient restoration of the power to its members. There is a continued effort to improve system reliability using smart grid technologies which will allow critical areas to self heal when damage to the system occurs. Currently members have power delivered to their homes over 99.9% of the time.
2016
2014
$92,846,455
2013
$88,809,468
$103,348,638
2015
$97,119,357
2020
2018 2017
$110,497,617
$108,702,966
2019
$118,406,248
$114,151,499
TOTAL UTILITY PLANT The past year has been one of great change within the TCEC Operations department. A new Vice President of Operations, John Tuten, began leading the department in early 2021 and five new apprentice linemen joined the team and are quickly moving through their training programs. Work continues along the Keaton Beach Road circuit with upgrades to the conductor and replacement of older poles. TCEC is utilizing its contractor crews to complete this seven-mile project that will increase reliability for our members located in this area. Phase II of the Cross City to Steinhatchee transmission line project was completed in the fall of 2020 and included the replacement of 60 poles with steel structures that are taller to allow for better ground clearance and more reliability to members in Steinhatchee. Phase III of the project will be completed in the fall of 2021 with the replacement of 40 poles.
OPERATIONS 8 | 2021 ANNUAL REPORT
Right-of-way maintenance continues to be a priority for TCEC as it is essential to the reliability and safety of members and employees. TCEC’s contracted right-of-way crews completed 650 miles of rightof-way maintenance in 2020 in the Jefferson and Taylor County area.
CORPORATE SERVICES Corporate Services has a mission to support the operational work of TCEC while enhancing its ability to function as a best-practice service-oriented company, as well as create and sustain a pleasant and appreciative working environment. Our responsibilities include member services, key accounts, community relations, billing, administration, human resources and facilities management. When you establish new service, come into one of our offices, request an energy audit, call on the phone during working hours, you are most likely speaking to a member of the Corporate Services team. The second largest department of the co-op, with 17 individuals motivated to deliver the best customer service experience to each of our 13,000+ members. During 2020, at the height of the Covid-19 pandemic, more than 50% of the department transitioned to working remotely while a small core group remained in our offices to continue assisting members in-person. In September, TCEC successfully conducted its first ever drive-thru Annual Meeting and in November, Eileen Herndon was appointed the new Vice-President of Corporate Services.
BILLED METERS In 2020, TCEC reached a big milestone after years of steady growth throughout the communities served by the cooperative and after a surge in new developments in 2020, we quickly surpassed 19,000 billed meters.
17,655
17,716
17,830
17,932
2013
2014
2015
2016
18,212
18,391
18,659
19,081
2017
2018
2019
2020
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DISTRIBUTED CAPITAL CREDITS
CAPITAL CREDITS As a cooperative, we are also motivated by service to the community, rather than profits. Members contribute equitably to, and democratically control the capital of TCEC. At least part of that capital remains the common property of the cooperative. Members allocate surpluses for co-op programs, initiatives, capital investments, and supporting other activities approved by the membership. Because we are guided by seven cooperative principles, it’s not just about dollars––it’s about opportunity for all and being fair when engaging with our members. The cooperative way is a values-based business model.
$518,580.42
$850,319.80
2013
2014
$1,011,577.39
$1,196,591.80
2015
2016
$971,000.85
$935,156.98
2017
2018
$1,203,254.10
$1,224,472.20
2019
2020
FINANCE “Small but mighty” the TCEC Finance department is made of just five employees, dedicated to the financial health and security of the cooperative. The Finance department keeps the co-op’s financial affairs in line with established objectives, policies, and goals. Including general accounting, financial planning, risk management, internal auditing and procurement, and reviewing and approving operating procedures to maximize the effective and efficient utilization of financial resources Months after a hurricane has passed through our area, the Finance department’s work continues with FEMA reporting to achieve full reimbursement in the best interest of TCEC and our members.
POWER COSTS PER DOLLAR Power Cost
0.56
Operating Maintenance
0.15
Depreciation
0.08
Interest
0.05
Billing & Member Services
0.04
Operating Margins
0.03
0.00
.1
0.20
.3
0.40
.5
0.6
Finance employees took on the challenges of Covid-19 head on; monitoring the financial impact the pandemic had on not just the cooperative, but members as well. TCEC is more determined than ever to provide quality, safe, affordable electric service to our members. 10 | 2021 ANNUAL REPORT
Connect to your Co-op www.tcec.com
@TriCountyElectricFlorida
TCEC FL - Mobile App
@TCECFlorida @tricountyelectricflorida
800.999.2285 or 850.973.2285
@tricountyelectricflorida
Text TCEC to 800.999.2285
Tri-County Electric
Ways to Manage your TCEC Account By signing into 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. 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.
Ways to Pay TCEC offers many ways for members & consumers to 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. Pay by phone with credit card by calling 1-800-999-2285. 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 payment. 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 Jefferson County 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
2021 ANNUAL REPORT | 11
DISTRICT MEETINGS HELD IN JULY As a member-owned cooperative, we follow the Cooperative Principles. In particular, during July each year, we support Principle 2: Democratic Member Control, by holding member meetings in three of our nine districts. This year, the members of District No. 1, 2 and 4 elected a member as District Trustee to represent them for a term of three years. On July 22, 2021, a meeting of the members of District 1 was held at the Pinetta Volunteer Fire Department at Pinetta, FL. Two candidates qualified for the District 1 Trustee seat, Mr. Junior Smith and Mr. Mack Primm, III. Mr. Heath Driggers, the Madison County Supervisor of Elections oversaw the voting of the members and Mr. Junior Smith was re-elected as District 1 Trustee to serve another term on the Board.
Junior Smith, District 1
On July 26, 2021, the members of District 4 met at Lee City Hall at Lee, FL. Mr. George Webb was an unopposed candidate and was unanimously elected by the members to his third term as Trustee of the Board. On July 29, 2021, a meeting of the members of District 2 was held at the Steinhatchee Community Center at Steinhatchee, FL. Mr. Bobby Dodd was an unopposed candidate and was unanimously elected by the members to serve his fourth term as Trustee of the Board.
Bobby Dodd, District 2
George Webb, District 4 12 | 2021 2021ANNUAL ANNUALREPORT REPORT
TRI-COUNTY ELECTRIC COOPERATIVE, INC.
80th Annual Meeting Minutes September, 19, 2020 The 80th Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held Saturday, September 19, 2020, on the campus of the Madison County High School in Madison, Florida, utilizing drive-through registration and virtual business meeting hosted on the cooperative’s website and Facebook page.
was comparable to the rate of growth not experienced since 2007. He spoke of the generous payment arrangements and suspension of late fees for members financially impacted by the pandemic.
Registration began at 8:30 A.M. with 936 cooperative members registered by 10:30 A.M.
Attorney Rivers then called the business session to order. He announced that due to this being a virtual meeting without an opportunity to experience real time interactions with members, typical motion and action items would be temporarily postponed until the members could reconvene in an in-person meeting.
At 2:00 P.M. streaming of a prerecorded annual meeting and business meeting was hosted on the Cooperative’s website and Facebook page. Board President, Robert “Bobby” Dodd spoke during the online virtual meeting and introduced the Board of Trustees as follows: newly elected District 7 trustee Benjamin “Benny” Bishop; District 1 Junior Smith; District 3 Donnie Waldrep; District 4 George Webb; District 5 Catherine Bethea; District 6 Ann Herring; District 8 Johnny Edwards; and District 9 Elmer Coker. Mr. Dodd gave recognition to outgoing District 7 trustee Mr. Albert Thomas, Jr. for his 16 years of dedicated service and wished him well in his retirement. Mr. Dodd then introduced CEO Julius Hackett. CEO Julius Hackett started off thanking the employees who adapted to the challenges and adjustments to the workplace due to COVID-19. He discussed the changes in the way business was managed during the previous six months in an effort to maintain the health and safety of members and employees. He stated the rate of the growth of new members
Mr. Hackett then introduced Cooperative Attorney Mr. Dylan Rivers of the Ausley McMullen Firm in Tallahassee, Florida.
The first order of business was the report of a quorum. The presence of 134 members of the Cooperative was necessary to constitute a quorum for the transaction of business and Cooperative staff has confirmed that at 10:30 A.M. a quorum was met. He 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 Tallahassee, Florida, on September 4, 2020, postage prepaid. The Official Notice was also published in newspapers circulated in Dixie, Madison, Jefferson, and Taylor counties. Due to the absence of a live audience, action related to the Official Notice of Minutes of the 2019 Annual Meeting would be 2021 ANNUAL REPORT | 13
Minutes continued –
deferred until members can reconvene in person. Mr. Rivers then introduced Cooperative Secretary/Treasurer Mrs. Catherine Bethea. Mrs. Catherine Bethea proceeded to give an overview of the 2019 financial report for the Cooperative as prepared by Nichols, Cauley and Associates of Warner Robbins, Georgia, CPAs, with no instance of non-compliance reported. She stated a copy of this financial report was published in the 2020 Annual Report. She pointed out the most significant financial highlights for 2019 reflected the year ending with net margins of $1.8 million, revenues of $40 million and operating expenses of $38.8 million. There was strong growth in new members and energized meters ending the year with 18,659. She reported on the continued investment in the power system during 2019 which lead to an increased value of the power system which grown to $114 million. She further stated the overall financial condition of the Cooperative remains strong and as a display of this fiscal strength the Board of Trustees voted to retire over $1.5 million in capital credits during December 2019 and June 2020 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 7, 8 and 9 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. 7 Mr. Benjamin “Benny” Bishop being elected as trustee of the district at the duly called District Meeting of District No. 7 held at Salem AME Church, Monticello, Florida.
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DISTRICT NO. 8 Mr. Johnny Edwards being re-elected as trustee of the district at the duly called District Meeting of District No. 8 held at Lake Bird Methodist Church, Perry, Florida. DISTRICT NO. 9 Mr. Elmer Coker being re-elected as the district’s official candidate at the duly called District Meeting of District No. 8 held at the Blue Creek Baptist Church, Perry, Florida. Mr. Rivers then opened the floor for any unfinished business of the Cooperative which should come before the meeting Mr. Rivers then stated he was unaware of any unfinished old business of the Cooperative which should come before the meeting. He encouraged any member who had questions regarding the information shared during the business portion of the meeting to email the Cooperative staff with their questions or concerns. Mr. Rivers then closed the business portion of the Annual Meeting of the membership of Tri-County Electric Cooperative, Inc. was duly adjourned at 2:23 P. M., Saturday, September 19, 2020. Thereafter, a drawing for prizes was held.
ANNUAL MEETING OFFICIAL NOTICE The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, September 18, 2021, 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 $25 bill credit and registration gift. Beginning at 11:00 A.M. the business portion of the meeting will 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.
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 1, 2 and 4 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. 1.........................Junior Smith District No. 2.........................Bobby Dodd District No. 4…………………George Webb
III.
Ten door prizes and a grand prize 2010 Ford F150 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 immediately following the business meeting.
Members are urged to register and tune in to this Annual Meeting of the Cooperative.
THIS OFFICIAL NOTICE OF ANNUAL MEETING DATED this 3rd day of September, 2021. Catherine Bethea, Secretary Tri-County Electric Cooperative, Inc. 2021 ANNUAL REPORT | 15
Cooperative Principle #7- Concern for Community TCEC employees mentor the Madison County High School Power and Energy Class, pictured here visiting a TCEC job site and learning first hand about power line construction. 16 | 2021 ANNUAL REPORT
TREASURER’S REPORT The Cooperative’s 2020 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 noncompliance or other matters that are required to be reported under Government Auditing Standards. Some of the most significant financial highlights for 2020 Catherine Bethea included: TCEC ended the year with a net margin from Secretary operations of $1.4 million with revenues of $39 million, and with operating expenses of $36.3 million at the end of 2020. We continue to experience a growth in energized meters and ended 2020 with 19,081 energized meters. Generating positive margins places TCEC in a very good position for the future. We continue to invest in technology 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 2020 was $5.2 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 $1,224,472.20 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.
2021 ANNUAL REPORT | 17
Tri-County Electric Cooperative, Inc. December 31, 2020 and 2019 Balance Sheets
2020
2019
$116,242,614 2,163,631 118,406,245
$111,969,085 2,182,416 114,151,501
35,160,770 83,245,475
32,738,117 81,413,384
10,334,028
9,848,557
1,561,613
1,541,039
1,573,106 282,706 1,550,000 523,959 85,447 5,576,831
1,424,108 812,736 1,450,000 414,024 83,063 5,724,970
519,999
554,220
$99,676,333
$97,541,131
Equities Membership fees Patronage capital Other Total equities
$68,390 36,199,996 1,969,142 38,237,528
$66,530 36,121,478 1,672,327 37,860,335
Long-term debt and other noncurrent liabilities Mortgages Capital leases Total long-term debt and other noncurrent liabilities
46,078,541 491,694 46,570,235
47,232,907 417,556 47,650,463
Current liabilities: Current maturities of long-term debt Lines-of-credit Accounts payable Consumer deposits Other Total current liabilities
2,578,580 6,537,344 2,512,557 1,202,672 1,921,764 14,752,917
2,448,342 3,776,533 2,614,423 1,179,667 1,895,715 11,914,680
Deferred Credits Total equities and liabilities
115,653 99,676,333
115,653 97,541,131
$39,043,701
$40,028,165
21,942,428 23,228 2,456,867 4,139,769 1,695,636 2,580,975 3,463,931 36,302,834
23,180,714 24,860 2,240,835 3,556,940 1,629,184 2,923,206 3,344,417 36,900,156
2,740,867 1,922,983 817,884 602,333 60,527
3,128,009 1,916,188 1,211,821 604,331 11,884
$1,480,744
$1,828,036
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 Accounts receivable (less allowance for doubtful accounts of $158,914 in 2020 and $164,913 in 2019) FEMA and other receivables Accrued utility revenue Materials and supplies Other Total current assets Deferred Charges Total Assets
Equities and Liabilities
Operating revenues Operating expenses Cost of power Transmission Distribution operations Distribution maintenance Consumer accounts General and administrative Depreciation and amortization Total operating expenses Operating margins before interest expense Interest expense Operating margins after interest expense G & T and other capital credits Non-operating margins Net margins
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Statements of Revenues
Tri-County Electric Cooperative, Inc. December 31, 2020 and 2019 Statements of Cash Flows 2020
2019
$1,480,744
$1,828,036
3,739,082 (602,333) (25,000) (8,194)
3,595,229 (604,331) (30,380) 43,969
(233,998) 530,030 (2,384) 34,221
123,096 389,817 140 41,822
(101,866) 26,049 23,005 4,869,356
162,689 23,227 29,445 5,602,759
Cash flows from investing activities Additions to utility plan, 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
(5,232,834) (109,935) 70,012 (5,272,757)
(5,412,207) 8,924 62,676 (5,340,607)
Cash flows from financing activities Proceeds from long-term debt Payments on long-term debt Payments on capital lease obligations Proceeds on lines-of-credit, net Net change in memberships Capital credit retirements Retirement of capital term certificates Cash flows provided (used) by financing activities
1,214,548 (2,290,302) (204,381) 2,760,811 1,860 (1,105,411) 46,850 423,975
2,004,452 (2,259,449) (190,201) 1,039,003 975 (1,042,028) (447,248)
Net change in cash and cash equivalents Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year
20,574 1,541,039 $1,561,613
(185,096) 1,726,135 $1,541,039
$1,923,069
$1,916,188
Increase in other equities from retirement of patronage capital
$296,815
$319,037
Utility plant financed by capital lease
$330,145
$180,877
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 uncollectible accounts receivable (Gain) loss on disposition of utility plant (Increase) decrease in: Accounts receivable and accrued utility revenue FEMA and other receivables Other current assets Deferred charges Increase (decrease) in: Accounts payable Other current liabilities Consumer deposits Cash flows provided by operating activities
Supplemental schedule of noncash investing and financing activities Cash payments for interest Supplemental disclosures of cash flow information
Auditor’s Report The independent accounting firm of Nichols, Cauley and Associates, LLC, Warner Robins, Ga., audited the financial statements of Tri-County Electric Cooperative, Inc. which comprise the balance sheets as of Dec. 31, 2020 and 2019 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, 2020 and 2019, 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.
2021 ANNUAL REPORT | 19
Wende Financ
John Tu
Eileen Corpor
Jeff Br Engine
TCEC S
Presorted Std. U.S. Postage P A I D Tallahassee, FL Permit No. 706
2862 West US 90 Madison, FL 32340
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.
Publication Team Eileen Herndon, Vice President of Corporate Services Kaitlynn Culpepper, Community Relations Director
Publisher Joanna Forrester 1-800-999-2285 www.tcec.com