Tri-County Electric Cooperative 2014 Annual Report

ANNUAL REPORT

2014

Tri-County Electric Cooperative

Your Vote Counts Let Your

VOICE be Heard

Please attend the 2014 Annual Meeting.

Details inside.

…prizes, prizes, prizes

2013 truck winners, James & Linda Hesketh

September & October 2014 Vol. 18 • No. 1

A

please join us in taking action

Message from Board President Malcolm V. Page and General Manager Julius Hackett we rely on Every day electricity. On a

daily basis, we depend on the refrigerator to keep our food fresh, air conditioning and heating to keep us comfortable, and, of course, lights. We also depend on electricity to recharge our electronics. Whether it’s a phone to keep in touch with relatives, a tablet for students’ homework or the laptop on which we stream movies, these devices all have become integral Malcolm V. Page to our daily routine.

At work, we rely on electricity to power our computers, phones, lights and productivity. Without this consistent, reliable and affordable power source, businesses would relocate, jobs would be lost, and prices of goods and services would increase.

That’s why Tri-County Electric Cooperative is concerned about the latest proposed regulations on existing power plants from the Environmental Protection Agency (EPA). This round of rules impacts the power plants on which we rely every day.

Cooperatives are different from other electric utilities. We are owned by our member-consumers. When we look at our power options, we are not driven by profits. We strive to provide the most affordable and reliable electricity possible to our members.

However, these new regulations could endanger this independent supply of affordable electric power. Electric cooperatives, like TCEC, are small businesses. We’re not large utilities with several different power plants operating with a variety

of fuel sources.

The EPA has drafted a regulation that adversely and disproportionately affects electric cooperatives. That’s why we are telling the EPA that this regulation simply does not work for us.

When the EPA drafted regulations limiting greenhouse gases from new power plants, the agency received more than 500,000 emails opposing the regulation. Today we ask you— Julius Hackett once again—to please join us.

Visit www.Action.coop again and tell the EPA you cannot afford these new regulations.

Your voice was heard last time. The EPA took note of electric cooperatives, and our collective voice showed that co-op consumers were engaged.

That’s why we’re asking you to take action again. The EPA needs to understand the impact that these regulations have on the people at the end of the power lines. Electric cooperative members are uniquely situated to help the EPA understand that these regulations will cost Americans more money.

These regulations also will cost Americans jobs. These regulations will not work for rural Americans.

Please also ask your friends and neighbors to join us. Ask them to visit www.Action.coop and tell the EPA co-op members cannot afford regulation. We can balance environmental needs with affordability and reliability.

~ o Peach Shrimp Skewers Jalapen • • • • • • • • •

12 ounces (about 20) raw large shrimp, peeled, tails removed, deveined ½ teaspoon onion powder 1 teaspoon brown sugar (not packed) 2 tablespoons chopped seeded jalapeño pepper 2 cups canned peach slices packed in juice, drained and blotted dry ⅛ teaspoon salt ½ teaspoon garlic powder 1 teaspoon white wine vinegar 2 tablespoons grapeseed oil

If using wooden skewers, soak four in water for 20 minutes to prevent burning.

To make sauce, place ½ cup drained peach slices in a small food processor or blender. Add rest of the ingredients except shrimp and remaining peach slices, puree until smooth. Transfer half of the sauce to a small bowl and refrigerate until ready to serve.

Bring grill to medium high heat. Evenly thread shrimp and remaining peach slices onto skewers. Brush both sides with some of the sauce. Grill until shrimp are cooked through, 1 to 2 minutes per side, brushing with sauce as they cook.

Serve with the refrigerated sauce for dipping.

Courtesy of Pompeian

2

September & October 2014

1.

2.

ABANDONS ALL-OF-THE ABOVE

TECHNOLOGY GAMBLE

The Administration is reversing course: ditching our All-of-the-Above energy strategy for an All-But-One approach that bans new coal plants.

New regulations essentially require technology that’s not commercially viable and prohibitively expensive— leading to higher bills down the line.

TOP4FACTS ABOUT THE EPA’S NEW CLIMATE REGULATIONS

3.

LIMITS ACCESS TO AFFORDABLE, DOMESTIC ENERGY

By banning new coal plants, Americans forfeit a 236-year domestic source of energy with a historically stable price.

4.

HISTORY REPEATS: ALL-BUT-ONE DOESN’T WORK

A 1978 mandate prevented use of natural gas & forced utilities into coal or nuclear— before common sense prevailed and it was repealed 9 years later.

ACTION.COOP You can help stop the EPA by filling out the form which allows Tri-County Electric Cooperative to submit a message to the EPA and Congress on your behalf. The form can be mailed to us, dropped off at one of our offices or given to an employee at the annual meeting on Sept. 20.

September & October 2014 Page Page 3

Youth Tour 2014 over the past 50 years, the National Rural Every June, Electric Cooperative Association has hosted the

Electric Cooperative Youth Tour. Students apply and submit an essay and are selected by their co-op to participate in the week long trip touring our nation’s capital, Washington D.C. This year Tri-County Electric sponsored four local students; Anthony Carter and Ashley Wallace both from Taylor County High School, and Courtney Bailey and Deonte McGee from Madison County High School.

The Youth Tour gives students the opportunity to tour the capital, learn about the political process, meet their congressmen, and experience pieces of history as they explore museums, monuments and memorials.

The students enjoyed an event packed week. Fun filled days included a tour of the World War II Memorial, the Holocaust Museum, Arlington National Cemetery, and the American History Museum.

Mike Schlappi, four-time Paralympics medalist and two-time world champion wheelchair basketball player and Jo Ann Emerson the Chief Executive Officer of the NRECA were the guest speakers at the Youth Day Program Monday morning.

On Tuesday all of the student representatives from cooperatives in Florida joined together to watch the U.S. Marine Corps Sunset Parade. A one hour performance, the Sunset Parade features the music of “The Commandant’s Own”, The United States Marine Drum and Bugle Corps and precision drill by the Marine Corps Silent Drill Platoon.

The 2014 Youth Tour ended on a musical note at the Kennedy Center Opera House’s production of the Lion King. TCEC is proud to contribute to our community through the Youth Tour. It is our commitment to our community and the cooperative difference.

TRI-COUNTY ELECTRIC COOPERATIVE, INC. OFFICIAL NOTICE OF ANNUAL MEETING The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, Sept. 20, 2014, at Van H. Priest Auditorium, located on the campus of North Florida Community College, in the city of Madison, Fla. Registration begins at 9:00 a.m. and the business meeting will convene at 10:00 a.m.

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 are to be elected from Districts 7, 8 and 9 to serve for a term of three (3) years. The following members have been nominated, pursuant to the Bylaws of the Cooperative, as candidates for Trustee of the districts indicated: District No. 7: Albert Thomas Jr. District No. 8: Malcolm V. Page District No. 9: Elmer Coker III. A number of valuable prizes will be given away at this meeting and all members are urged to attend this Annual Meeting of the Cooperative.

THIS OFFICIAL NOTICE OF ANNUAL MEETING DATED this 5th day of September 2014.

Albert Thomas, Jr., Secretary, Tri-County Electric Cooperative, Inc.

LUCKY ACCOUNT NUMBER Ashley Wallace, Deonte McGee, Courtney Bailey, and Anthony Carter (l–r), representing Tri-County Electric at the 2014 Youth Tour in Washington, D.C., visit Arlington National Cemetery.

Check each issue of Tri-County Rural Living to see if you are the lucky winner of an electric bill credit. This publication’s winning jackpot: $100.

If the account number on your monthly statement matches the number in any of the boxes below, call Carol Timmons at 850‑973‑2285, Ext. 203, from 8 a.m. to 5 p.m., Monday through Friday, to claim your credit. You must contact TCEC by the 20th of the month of this publication date in order to receive your credit.

This issue’s winning account numbers: 71004973003 These bright Youth Tour participants represented Florida electric cooperatives in Washington, D.C., in June.

4

4099002

80018003001

September & October 2014

Meet Your Board Of Trustees District 1 Junior Smith, Vice-President Mr. Smith is the Trustee from District 1, northeast Madison County. He resides in Madison with his wife, Beverly and was elected to Tri-County Electric’s Board of Trustees in 2006. Mr. Smith is the former Manager of Operations for the Cooperative, having retired in 2001 after 44 years of dedicated service. He currently serves as VicePresident of Tri-County’s Board of Trustees. Mr. Smith is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District 2 Robert A. “Bobby” Dodd Mr. Bobby Dodd is the Trustee from District 2, Steinhatchee area. Mr. Dodd is a lifelong resident of Steinhatchee and spent a successful career with the Department of Corrections for the State of Florida. He is a military veteran having served in the United States Army. Mr. Dodd has served on Tri-County’s Board of Trustees since 2012. He lives in Steinhatchee with his wife, Marlene. He is a Credentialed Director through NRECA and is a graduate of Florida State University.

District 3 Neal Brown Mr. Neal Brown is the Trustee from District 3, central and northwest Madison County. He resides in Greenville with his wife, Myrtle. Prior to his retirement, Mr. Brown worked with the Florida Department of Transportation. Mr. Brown was elected in 1992 and has served as past vice-president of Tri-County’s Board of Trustees. He also serves on the board of the Florida Electric Cooperatives Association. Mr. Brown is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District 4 Bobby Harper Mr. Bobby Harper is the Trustee from District 4, southern Madison county. He is a draftsman with Harper Graphics and former instructor at North Florida Community College. Mr. Harper resides in Greenville with his wife, Kristie. He has served on TriCounty’s Board of Trustees since 2006. Mr. Harper is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District 5 Catherine Bethea Mrs. Catherine Bethea is the Trustee from District 5, central Taylor County. She is a lifelong resident of Taylor County. Mrs. Bethea is a retired teacher having taught middle school in Taylor County. She resides in the Perry area along with her husband, Buddy.

Mrs. Bethea has served on Tri-County’s Board of Trustees since 2008. She is a is a graduate of Florida State University. Mrs. Bethea is a Credentialed Director and holds a Board Leadershp Certificate through NRECA.

September & October 2014

District 6 Gary Fulford Mr. Gary Fulford is the Trustee from District 6, northern Jefferson County. He resides in Jefferson County with is wife, Pam where he farms peanuts, soybeans, cotton and milo. Mr. Fulford became a trustee in 1990 and has served as past vice-president as well as secretary/treasurer of Tri-County’s Board of Trustees. In addition to serving as trustee for Tri-County, he serves as trustee on the Seminole Electric Cooperative Board. Mr. Fulford is a University of Florida graduate.

District 7 Albert Thomas, Secretary/Treasurer Mr. Albert Thomas Jr. is the trustee from District 7, southern Jefferson County. He has served on Tri-County’s Board of Trustees since 2004 and currently is the Secretary/Treasurer.

Mr. Thomas lives in the Aucilla area with his wife, Celestine where he farms and raises cattle. He 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 also serves on the board of the Florida Electric Cooperatives Association. He is a graduate of Florida A&M. Mr. Thomas is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District 8 Malcolm V. Page, President Mr. Malcolm V. Page is the Trustee from District 8, northern Taylor County. He was elected in 1993 and currently serves as President of Tri-County Electric’s Board of Trustees. He is a retired educator. Mr. Page resides with his wife, Bettie in Perry where he raises a small herd of Angus cows. He holds many distinguished leadership positions which include serving on the Board of County Commissioners for Taylor County, a member of the board of the Florida Electric Cooperatives Association and President of the Seminole Electric Cooperative Board. Mr. Page is a graduate of Florida State University. He is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District 9 Elmer Coker Mr. Elmer Coker is the Trustee from District 9, southern Taylor County. He has served on Tri-County’s Board of Trustees since 2006. Mr. Coker attended North Florida Junior College, where he was elected the first Student Government President. He is a graduate of Florida State University. Prior to his retirement he was an educator and football coach in Taylor, Wakulla and Jefferson Counties. Mr. Coker resides in Perry with his wife Pat, and he enjoys hunting and fishing and spending time with his grandchildren. He has served as past vicepresident of Tri-County’s Board of Trustees. Mr. Coker is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

5

TRI-COUNTY ELECTRIC COOPERATIVE, INC. 73rd ANNUAL MEETING MINUTES • SEPTEMBER 21, 2013

The

73rd Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held Saturday, Sept. 21, 2013, in the Van H. Priest Auditorium on the campus of North Florida Community College in Madison, Fla. Registration began and the polls were opened for the District 6 Trustee election at 9:00 a.m. The Chapel Road Trio entertained while members were registering their attendance and voting was taking place on the District 6 Trustee candidates.

Mr. Michael Curtis, Madison Media Group, presented a short video titled “Our Promise,” introducing Touchstone Energy and the Cooperative difference. The video was customized to include messages from the Board President, General Manager and several Cooperative members.

The meeting was called to order by President Malcolm V. Page.

Mr. Page welcomed the members present and asked for a round of applause for the musical group, Chapel Road Trio.

Tri-County Electric Cooperative employee Mr. Troy Pickles, mechanic, opened the meeting with prayer.

Mr. Page led the membership in the Pledge of Allegiance.

Mr. Page introduced the guests present as follows: Mrs. Lisa Johnson, Mr. Jim Frauen, Ms. Jennifer Taylor, and Ms. Leigh Hester, Seminole Electric Cooperative, Inc.; Mr. Mike Bjorklund, Florida Electric Cooperatives Association; Mr. Brian Mimbs, Regional Director from Senator Marco Rubio’s office; Mr. Gary Calhoun, Madison Police Chief; Sheriff Ben Stewart, Madison County Sheriff ’s Department; Mr. Michael Curtis and Jacob Curtis, Madison Media Group; Mr. Tim Bennett, Madison City Manager; Mr. Rick Davis, Madison County Commissioner, District 5; Mr. Leroy Rutherford, former Tri-County Electric Cooperative General Manager; Mr. Delma Beck, former Tri-County Electric Cooperative Trustee; Mr. Halsey Beshears, Representative; Mr. John McHugh, Director, Aucilla Waste; Mr. John Nelson, Chairman of the Board, Jefferson County Commissioners; and Mr. Ronnie Moore, Madison County Commissioner.

Mr. Page introduced the Board of Trustees of the Cooperative as follows: Mr. Junior Smith, Mr. Bobby Dodd, Mr. Neal Brown, Mr. Bobby Harper, Mrs. Catherine Bethea, Mr. Gary Fulford, Mr. Albert Thomas Jr., Mr. Elmer Coker, and himself, Mr. Malcolm V. Page. He further introduced General Manager Julius Hackett and Attorney Jeff Wahlen.

Mr. Page asked for a round of applause for the guests and trustees.

Mr. Page addressed the gathering by taking them back to the days before there was electricity, when their rural ancestors were living in the dark, forced to rely on primitive means for lighting, cooking, keeping food cool, etc. He remarked that, back then, the investorowned utilities decided there was no profit to be made in extending power lines into the rural areas, but with the power of neighbors working together with a common purpose, cooperatives came into existence and the rural areas did receive electricity. Mr. Page stated that cooperatives are not focused on profit, instead they exist to meet community needs, bringing dreams to reality and giving youth a better future. Through the power of cooperation, the cooperative finds solutions to improve service to its members. He pointed out some of the new innovation and technologies that are helping to keep electric bills affordable, e.g., energy efficiency programs, home 6

energy audits, and smart meters, to name a few. In closing he thanked the members for attending the Annual Meeting and remarked that “we know we can do anything with the power of cooperation.”

General Manager Hackett thanked the members for taking the time to participate in the affairs of their Cooperative. He accredited the Cooperative’s success today on the original founding members’ vision of delivering affordable and reliable electricity when the investor-owned utilities refused because it was not profitable. He assured the membership that their Cooperative is still committed to powering up rural America, committed to delivering value and making life better, and putting the member first in everything.

This value is realized when the employees commit time and energy working with Cooperative members and community organizations to improve the quality of life. He pointed out that the Cooperative is interested in working with youth because they are the leaders of tomorrow and it is important to instill in them the importance of cooperative involvement at a young age.

One of the ways the Cooperative gets involved with youth is by selecting students in their junior year of high school to participate in the Rural Electric Youth Tour for an all-expenses-paid trip to the nation’s capital to learn about leadership, teamwork, electric cooperatives and the ideals on which our nation was founded.

Operationally, Mr. Hackett advised that the economy is gradually improving. The five-year decline in active meters is over and there is small load growth within the commercial and industrial sectors. Mr. Hackett remarked that the Cooperative’s financial strength allows the continued funding of activities to help storm harden the electric system in order to reduce power outages, i.e., pole replacements, line inspections and tree trimming. He advised that the Cooperative continues to support a full suite of programs and services focused on keeping the member informed about energy usage, using the prepay program as an example. Mr. Hackett announced that the Cooperative is in the final stages of releasing a smart phone app designed to display energy usage, bill pay, and at a later date, outage information.

And, with the energy management tools the Cooperative is making available, the members are using less electricity. He remarked that there are challenges ahead in advocating and fighting for common sense energy policies and limiting regulations that strike a reasonable balance between protecting the environment, guaranteeing a reliable supply of power, and keeping electric bills affordable. In closing, Mr. Hackett asked for a round of applause for the Cooperative employees who are instrumental in helping meet these challenges and are committed to putting members first.

President Page introduced the guest speaker, Mr. Charles Marshall, humorist motivational speaker.

Mr. Marshall entertained the membership with humorous stories using the theme, “Seven Powers of Success.”

Cooperative Attorney, Jeff Wahlen, called the business session to order. He recognized the sheriff and the sheriff ’s auxiliary for their assistance with the parking.

Mr. Wahlen inquired of the members whether there were any other members from District 6 who want to vote in the Trustee election for District 6 and no member responded, so Mr. Wahlen declared that the polls were closed and counting the ballots could proceed.

As the first order of business, Mr. Wahlen called upon Mr. September & October 2014

Albert Thomas Jr., Secretary-Treasurer of the Cooperative, for a report on the quorum. Mr. Thomas reported that the presence of 124 members of the Cooperative was necessary to constitute a quorum for the transaction of business and that at 10:00 a.m., 304 members of the Cooperative had officially registered their attendance. Mr. Thomas declared that a quorum was present for the transaction of business of the Cooperative.

The second order of business was the Official Notice. Mr. Wahlen 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 U.S. mail at Blountstown, Fla., on Aug. 30, 2013, 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. Wahlen then stated that the next order of business was the reading of the minutes of the 2012 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 motion duly made, seconded and unanimously carried, the reading of the official minutes of the 2012 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.

Mr. Albert Thomas Jr. was called upon to give the Treasurer’s report. Mr. Thomas reported that the Cooperative’s 2012 financial report was prepared by Nichols, Cauley and Associates, CPAs, with no instances of noncompliance reported. Mr. Thomas reminded the membership that the financial statements of the Cooperative were printed in the September 2013 Tri-County Annual Report, which was mailed to each member for examination prior to the Annual Meeting. Mr. Thomas pointed out the most significant financial highlights for 2012 reflects a slight decrease in revenues of $36.7 million, with a slight decrease in operating expenses of $238,000 and the net margins for the past year being up slightly from last year to $1.3 million. He reported that the Cooperative continues to make major investments in the electric utility plant that includes technology upgrades, poles, wires and substation equipment, resulting in a year-end balance of $74.8 million in total assets owned by the Cooperative. Overall, the financial condition of the Cooperative remains strong. As a display of this fiscal strength the Board of Trustees voted to retire $491,000 in capital credits last year and returned these dollars back to the membership.

Attorney Jeff Wahlen then stated that the next order of business was the election of Trustees from Districts 3, 5 and 6 to serve for a term of three (3) years or until the election of their respective successors.

DISTRICT NO. 3 Mr. Neal Brown being duly selected as the district’s official candidate at the duly called District Meeting of District No. 3 and no intention to make additional nominations from the floor for Trustee of District No. 3 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

September & October 2014

DISTRICT NO. 5 Mr. Catherine Bethea, being duly selected as the district’s official candidate at the duly called District Meeting of District No. 5 and no intention to make additional nominations from the floor for Trustee of District No. 5 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

DISTRICT NO. 6 Mr. Gary Fulford and Mr. Franklin “Jay” Brooks, being duly selected as the district’s official candidates at the duly called District Meeting of District No. 6 was placed in nomination as the official candidates for District No. 6 and no intention to make additional nominations from the floor for Trustee of District No. 6 being filed as required by the Bylaws of the Cooperative, were placed in nomination as the official candidates for Trustee for District 6.

The Inspectors of Election, appointed by the two candidates, then delivered to the Chair the results of the balloting; these results were then announced to the membership by Mr. Wahlen as follows: Mr. Gary Fulford . . . . . . . . . . . . 34 Votes Mr. Franklin “Jay” Brooks . . . . . 31 Votes Mr. Gary Fulford having received the highest number of votes cast for the respective district was declared to be the duly elected Trustee of the Cooperative from District 6.

Mr. Wahlen then opened the floor for any unfinished business of the Cooperative which should come before the meeting.

Mrs. Charla Chauncey, District 2, asked how capital credits are paid when a member moves from the Cooperative’s service territory. Mr. Wahlen provided an answer.

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.

Mr. Frank Vasquez, District 6, questioned the momentary power outages he had been experiencing. General Manager Hackett responded that there is a wide variety of reasons for this to happen and that the system is designed to blink if there is a fault on the line.

Mr. Elbert Sevor, District 3, asked for clarification on the bylaw that prohibits a member from running for Trustee because they are related to a current Trustee and expressed a desire to see this bylaw changed. Mr. Wahlen informed Mr. Sevor that prior to presenting a bylaw change to the membership it must be published in the meeting notice to the members. Mr. Sevor was referred to the General Manager for follow-up by him and the Board of Trustees.

The members with questions were encouraged to talk to the General Manager after the meeting.

There being no further 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 11:12 a.m., Saturday, Sept.

21, 2013.

Thereafter, a drawing for prizes was held.

Malcolm V. Page Albert Thomas, Jr. President Secretary-Treasurer 7

TRI-COUNTY ELECTRIC COOPERATIVE, INC. 73rd ANNUAL MEETING MINUTES • SEPTEMBER 21, 2013

The

73rd Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held Saturday, Sept. 21, 2013, in the Van H. Priest Auditorium on the campus of North Florida Community College in Madison, Fla. Registration began and the polls were opened for the District 6 Trustee election at 9:00 a.m. The Chapel Road Trio entertained while members were registering their attendance and voting was taking place on the District 6 Trustee candidates.

Mr. Michael Curtis, Madison Media Group, presented a short video titled “Our Promise,” introducing Touchstone Energy and the Cooperative difference. The video was customized to include messages from the Board President, General Manager and several Cooperative members.

The meeting was called to order by President Malcolm V. Page.

Mr. Page welcomed the members present and asked for a round of applause for the musical group, Chapel Road Trio.

Tri-County Electric Cooperative employee Mr. Troy Pickles, mechanic, opened the meeting with prayer.

Mr. Page led the membership in the Pledge of Allegiance.

Mr. Page introduced the guests present as follows: Mrs. Lisa Johnson, Mr. Jim Frauen, Ms. Jennifer Taylor, and Ms. Leigh Hester, Seminole Electric Cooperative, Inc.; Mr. Mike Bjorklund, Florida Electric Cooperatives Association; Mr. Brian Mimbs, Regional Director from Senator Marco Rubio’s office; Mr. Gary Calhoun, Madison Police Chief; Sheriff Ben Stewart, Madison County Sheriff ’s Department; Mr. Michael Curtis and Jacob Curtis, Madison Media Group; Mr. Tim Bennett, Madison City Manager; Mr. Rick Davis, Madison County Commissioner, District 5; Mr. Leroy Rutherford, former Tri-County Electric Cooperative General Manager; Mr. Delma Beck, former Tri-County Electric Cooperative Trustee; Mr. Halsey Beshears, Representative; Mr. John McHugh, Director, Aucilla Waste; Mr. John Nelson, Chairman of the Board, Jefferson County Commissioners; and Mr. Ronnie Moore, Madison County Commissioner.

Mr. Page introduced the Board of Trustees of the Cooperative as follows: Mr. Junior Smith, Mr. Bobby Dodd, Mr. Neal Brown, Mr. Bobby Harper, Mrs. Catherine Bethea, Mr. Gary Fulford, Mr. Albert Thomas Jr., Mr. Elmer Coker, and himself, Mr. Malcolm V. Page. He further introduced General Manager Julius Hackett and Attorney Jeff Wahlen.

Mr. Page asked for a round of applause for the guests and trustees.

Mr. Page addressed the gathering by taking them back to the days before there was electricity, when their rural ancestors were living in the dark, forced to rely on primitive means for lighting, cooking, keeping food cool, etc. He remarked that, back then, the investorowned utilities decided there was no profit to be made in extending power lines into the rural areas, but with the power of neighbors working together with a common purpose, cooperatives came into existence and the rural areas did receive electricity. Mr. Page stated that cooperatives are not focused on profit, instead they exist to meet community needs, bringing dreams to reality and giving youth a better future. Through the power of cooperation, the cooperative finds solutions to improve service to its members. He pointed out some of the new innovation and technologies that are helping to keep electric bills affordable, e.g., energy efficiency programs, home 6

energy audits, and smart meters, to name a few. In closing he thanked the members for attending the Annual Meeting and remarked that “we know we can do anything with the power of cooperation.”

General Manager Hackett thanked the members for taking the time to participate in the affairs of their Cooperative. He accredited the Cooperative’s success today on the original founding members’ vision of delivering affordable and reliable electricity when the investor-owned utilities refused because it was not profitable. He assured the membership that their Cooperative is still committed to powering up rural America, committed to delivering value and making life better, and putting the member first in everything.

This value is realized when the employees commit time and energy working with Cooperative members and community organizations to improve the quality of life. He pointed out that the Cooperative is interested in working with youth because they are the leaders of tomorrow and it is important to instill in them the importance of cooperative involvement at a young age.

One of the ways the Cooperative gets involved with youth is by selecting students in their junior year of high school to participate in the Rural Electric Youth Tour for an all-expenses-paid trip to the nation’s capital to learn about leadership, teamwork, electric cooperatives and the ideals on which our nation was founded.

Operationally, Mr. Hackett advised that the economy is gradually improving. The five-year decline in active meters is over and there is small load growth within the commercial and industrial sectors. Mr. Hackett remarked that the Cooperative’s financial strength allows the continued funding of activities to help storm harden the electric system in order to reduce power outages, i.e., pole replacements, line inspections and tree trimming. He advised that the Cooperative continues to support a full suite of programs and services focused on keeping the member informed about energy usage, using the prepay program as an example. Mr. Hackett announced that the Cooperative is in the final stages of releasing a smart phone app designed to display energy usage, bill pay, and at a later date, outage information.

And, with the energy management tools the Cooperative is making available, the members are using less electricity. He remarked that there are challenges ahead in advocating and fighting for common sense energy policies and limiting regulations that strike a reasonable balance between protecting the environment, guaranteeing a reliable supply of power, and keeping electric bills affordable. In closing, Mr. Hackett asked for a round of applause for the Cooperative employees who are instrumental in helping meet these challenges and are committed to putting members first.

President Page introduced the guest speaker, Mr. Charles Marshall, humorist motivational speaker.

Mr. Marshall entertained the membership with humorous stories using the theme, “Seven Powers of Success.”

Cooperative Attorney, Jeff Wahlen, called the business session to order. He recognized the sheriff and the sheriff ’s auxiliary for their assistance with the parking.

Mr. Wahlen inquired of the members whether there were any other members from District 6 who want to vote in the Trustee election for District 6 and no member responded, so Mr. Wahlen declared that the polls were closed and counting the ballots could proceed.

As the first order of business, Mr. Wahlen called upon Mr. September & October 2014

Albert Thomas Jr., Secretary-Treasurer of the Cooperative, for a report on the quorum. Mr. Thomas reported that the presence of 124 members of the Cooperative was necessary to constitute a quorum for the transaction of business and that at 10:00 a.m., 304 members of the Cooperative had officially registered their attendance. Mr. Thomas declared that a quorum was present for the transaction of business of the Cooperative.

The second order of business was the Official Notice. Mr. Wahlen 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 U.S. mail at Blountstown, Fla., on Aug. 30, 2013, 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. Wahlen then stated that the next order of business was the reading of the minutes of the 2012 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 motion duly made, seconded and unanimously carried, the reading of the official minutes of the 2012 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.

Mr. Albert Thomas Jr. was called upon to give the Treasurer’s report. Mr. Thomas reported that the Cooperative’s 2012 financial report was prepared by Nichols, Cauley and Associates, CPAs, with no instances of noncompliance reported. Mr. Thomas reminded the membership that the financial statements of the Cooperative were printed in the September 2013 Tri-County Annual Report, which was mailed to each member for examination prior to the Annual Meeting. Mr. Thomas pointed out the most significant financial highlights for 2012 reflects a slight decrease in revenues of $36.7 million, with a slight decrease in operating expenses of $238,000 and the net margins for the past year being up slightly from last year to $1.3 million. He reported that the Cooperative continues to make major investments in the electric utility plant that includes technology upgrades, poles, wires and substation equipment, resulting in a year-end balance of $74.8 million in total assets owned by the Cooperative. Overall, the financial condition of the Cooperative remains strong. As a display of this fiscal strength the Board of Trustees voted to retire $491,000 in capital credits last year and returned these dollars back to the membership.

Attorney Jeff Wahlen then stated that the next order of business was the election of Trustees from Districts 3, 5 and 6 to serve for a term of three (3) years or until the election of their respective successors.

DISTRICT NO. 3 Mr. Neal Brown being duly selected as the district’s official candidate at the duly called District Meeting of District No. 3 and no intention to make additional nominations from the floor for Trustee of District No. 3 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

September & October 2014

DISTRICT NO. 5 Mr. Catherine Bethea, being duly selected as the district’s official candidate at the duly called District Meeting of District No. 5 and no intention to make additional nominations from the floor for Trustee of District No. 5 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

DISTRICT NO. 6 Mr. Gary Fulford and Mr. Franklin “Jay” Brooks, being duly selected as the district’s official candidates at the duly called District Meeting of District No. 6 was placed in nomination as the official candidates for District No. 6 and no intention to make additional nominations from the floor for Trustee of District No. 6 being filed as required by the Bylaws of the Cooperative, were placed in nomination as the official candidates for Trustee for District 6.

The Inspectors of Election, appointed by the two candidates, then delivered to the Chair the results of the balloting; these results were then announced to the membership by Mr. Wahlen as follows: Mr. Gary Fulford . . . . . . . . . . . . 34 Votes Mr. Franklin “Jay” Brooks . . . . . 31 Votes Mr. Gary Fulford having received the highest number of votes cast for the respective district was declared to be the duly elected Trustee of the Cooperative from District 6.

Mr. Wahlen then opened the floor for any unfinished business of the Cooperative which should come before the meeting.

Mrs. Charla Chauncey, District 2, asked how capital credits are paid when a member moves from the Cooperative’s service territory. Mr. Wahlen provided an answer.

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.

Mr. Frank Vasquez, District 6, questioned the momentary power outages he had been experiencing. General Manager Hackett responded that there is a wide variety of reasons for this to happen and that the system is designed to blink if there is a fault on the line.

Mr. Elbert Sevor, District 3, asked for clarification on the bylaw that prohibits a member from running for Trustee because they are related to a current Trustee and expressed a desire to see this bylaw changed. Mr. Wahlen informed Mr. Sevor that prior to presenting a bylaw change to the membership it must be published in the meeting notice to the members. Mr. Sevor was referred to the General Manager for follow-up by him and the Board of Trustees.

The members with questions were encouraged to talk to the General Manager after the meeting.

There being no further 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 11:12 a.m., Saturday, Sept.

21, 2013.

Thereafter, a drawing for prizes was held.

Malcolm V. Page Albert Thomas, Jr. President Secretary-Treasurer 7

TRI-COUNTY ELECTRIC COOPERATIVE, INC. BOARD MEETING NOTES - June 9, 2014

With

all trustees, key Cooperative personnel, guests, and the attorney present, the regular monthly meeting of the Board of Trustees of Tri-County Electric Cooperative, Inc. was held on Monday, June 9, 2014, in the TriCounty Electric headquarters office building located in Madison, Fla. Reports to the Board included those of the Florida Electric Cooperatives Association Board Meeting, Finance Committee, Policy Committee, Building and Land Committee, General Manager, and Attorney. Action taken by the Board included the following: approval of the June 9, 2014, Board agenda; the May 12, 2014, Board Meeting minutes; and Consent Agenda items as written and recommended by the General Manager which included the WPCA for June 2014 as established by resolution; RUS Form

7 for April 2014; the list of new members for April 28–May 26, 2014; Work and Accident Report for April 2014 along with the System Outage Report. Other action taken by the Board included 2014 first quarter charge offs; employee health insurance renewal for 2014-15; establish July 14, 2014, as the cutoff date for voting at district meetings; established Sept. 8, 2014, as the cutoff date for voting at the Annual Meeting; and establish the persons to accept notices for additional nomination for Trustee from the floor (Carol Timmons and George Webb). The attorney updated the Board on a pending legal matter.

Malcolm V. Page Albert Thomas, Jr. President Secretary-Treasurer

TRI-COUNTY ELECTRIC COOPERATIVE, INC. BOARD MEETING NOTES - july 14, 2014

With

all trustees, key Cooperative personnel, guests, and the attorney present, the regular monthly meeting of the Board of Trustees of Tri-County Electric Cooperative, Inc. was held on Monday, July 14, 2014, in the Tri-County Electric headquarters office building located in Madison, Fla. Reports to the Board included those of the Seminole Electric Cooperative Board Meeting, Finance Committee, Policy Committee, Building and Land Committee, General Manager, and Attorney. Action taken by the Board included the following: the July 14, 2014, Board agenda; the June 9, 2014, Board Meeting minutes; and Consent Agenda items as written and recommended by the General Manager which included the WPCA for July 2014 as established by resolution; RUS Form 7 for May 2014; the list of new members for June 2014 and June 30–July 14, 2014 (cutoff date for voting at district meetings); and the Work and Accident Report for May 2014 along with the System Outage Report. Two of the youth tour participants expressed appreciation

DISTRICT MEETINGS HELD IN JULY Each year, Tri-County Electric Cooperative, Inc. holds membership meetings in three of its nine districts for the purpose of electing Trustees to serve three-year terms.

Meetings this year were held in Districts 7, 8 and 9.

The District 7 meeting was held Tuesday evening, July 22, 2014, at Salem AME Church, Aucilla, Fla. Albert Thomas Jr. was elected without opposition.

The District 8 meeting was held Thursday evening, July 31, 2014, at Lake Bird Methodist Church, Perry, Fla. Malcolm V. Page was elected without opposition.

The District 9 meeting was held Monday evening, July 28, 2014, at Blue Creek Baptist Church, Perry, Fla. Elmer Coker was elected without opposition.

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for having the opportunity to visit Washington, D.C.; a representative from Foley Timber and Land Company made a presentation; Finance Manager Wendell Williams presented a mid-year financial review; and Engineering Manager Jeff Brewer presented a mid-year reliability review. The following item was presented for the Secretary’s signature: Certification of Mailing of District Meeting Notices for Districts 7, 8 and 9 on July 7, 2014. The attorney updated the Board on legal matters.

Malcolm V. Page Albert Thomas, Jr. President Secretary-Treasurer

BOARD MEETINGS The regular monthly meeting of the Board of Trustees of Tri‑County Electric Cooperative will be held the second Monday in each month at 7:00 p.m. in the central office building of the Cooperative located at 2862 West U.S. 90, approximately two (2) miles west of the city of Madison.

Energy Efficiency

Tip of the Month

When it’s hot outside, appliances and lighting can actually heat up our homes more than we think. To save energy, minimize the activities that generate additional heat, such as burning open flames, continuously running a computer, or using hot-hair devices like curling irons. This will ultimately keep your house cooler.

Source: U.S. Department of Energy

September & October 2014

member RESOURCES Dedicated to Serving You

Flexible Payment Options

Capital Credits

Bi-monthly Publication

Tri-County Electric offers several convenient payment and billing options, including cash or check in the office; online payments; automatic bank drafts; and automatic credit/debit card payments and e-checks.

Since we are a cooperative, we are owned by you–the member-owners we serve. Each year, based on our financial condition and the amount of electricity you’ve used, we allocate margins (excess of income over expenses) back to you. We return a portion of that allocation back to you as a capital credit payment.

As a member-owner of Tri-County Electric, you will receive a complimentary subscription to the Tri-County Rural Living magazine.

Levelized Billing/Round Up Billing The levelized billing plan is designed to keep your monthly costs consistent, so you pay close to the same amount each month.

Pre-paid Advantage Program You control how much you pay, when you pay it with our Pre-paid Advantage Program. Plus, you can avoid large deposits with this program.

Co-op Connections Card Program All Tri-County Cooperative memberowners are automatically part of this free program that offers discounts at local business and national online retailers.

In addition, you can receive discounts on prescription drugs and other medical related services.

Youth/School Programs The Washington Youth Tour is awarded to selected high school juniors and provides an all expense paid trip to our nation’s capital each year.

Safety Program

Home Energy Audits Our certified energy advisors are available to help you with all of your energyrelated questions or concerns. They will visit with you at your home to answer your questions. This service is offered at no charge.

Powerful Solutions on Your Schedule We all lead busy lives. In addition to viewing and paying your bill online, our website, located at www.tcec.com, features money saving tips and energy efficiency ideas designed to help you live more comfortably. You can also find energy calculators, renewable energy information, and heating and cooling costs comparisons.

ELECTRICIT Y WORD SEARCH Can you find all of the words associated with electricity?

Use the word box below for help, and circle each word when you find it!

Appliances Circuit Cord Danger Electrician

Energy Fire Fuse Light Meter

Outlet Pole Power Shock Switch

Substation Transformer Utility Voltage Watts Wire

Our Electrical Safety Program is best suited for grades 4–6 and offers students an interactive look at electricity and how dangerous it can be if not restricted.

All of our youth programs are offered at no cost!

Scholarship Programs Our Energizing Education Scholarship program is awarded to eligible part-time and full-time students of North Florida Community College.

Community Speaking Engagements Representatives from Tri-County Electric are more than happy to speak at any community event. Topics include energy efficiency, electrical safety, renewable energy and more.

September & October 2014

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financial report TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Balance Sheets December 31, 2013 and 2012

TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Statements of Cash Flows Years Ended December 31, 2013 and 2012

2013

2012 ASSETS Electric plant: In service - at cost $ 87,492,274 $ 84,886,031 Construction work in progress 1,325,099 556,651 88,817,373 85,442,682 Less - Accumulated provisions for depreciation and amortization 23,258,924 22,596,669 65,558,449 62,846,013 Other investments: Investments in associated organizations 6,364,504 5,981,928 Current assets: Cash and cash equivalents: Cash 4,620,111 1,136,037 Temporary investments — 1,000,000 Accounts receivable (less allowance for doubtful accounts of $53,378 in 2013 and $67,173 in 2012) 1,728,610 1,682,893 Unbilled electric revenue 1,450,000 1,300,000 Materials and supplies (at average cost) 596,092 624,870 Other current assets 88,663 166,769

8,483,476 5,910,569 Deferred debits 64,324 14,886 Total assets $ 80,470,753 $ 74,753,396

2013

2012 Cash flow from operating activities: Net margins $ 1,499,472 $ 1,296,271 Noncash income and expenses included in net margins: Depreciation and amortization 2,779,561 2,603,568 G & T and other capital credits (488,987) (352,024) Provision for losses on accounts receivable 24,549 19,173 Loss (gain) on disposal of plant 1,904 26,288 Decrease (increase) in: Accounts receivable and unbilled electric revenue (220,266) 88,478 Temporary Investments Other current assets 78,106 69,219 Deferred debits/credits (49,438) (14,886) (Decrease) increase in: Accounts payable 129,359 135,848 Other current liabilities 35,751 35,488 Cash flows provided by operating activities 3,790,011 3,907,423

EQUITIES AND LIABILITIES Equities Membership fees $ 63,445 $ 63,210 Patronage capital 30,063,586 29,205,668 Other 128,551 5,376

30,255,582 29,274,254 Long-term debt, net of current maturities: Mortgage notes 42,941,249 38,423,392 Capital leases 118,719 225,176

43,059,968 38,648,568 Current liabilities: Current maturities of long-term obligations 2,137,806 1,982,501 Accounts payable 2,425,396 2,296,037 Consumer deposits 1,110,696 1,106,482 Other 1,451,529 1,415,778

7,125,427 6,800,798 Deferred credits 29,776 29,776 Total equities and liabilities $ 80,470,753 $ 74,753,396 Nichols, Cauley and Associates, Warner Robins, Georgia audited the financial statements of TriCounty Electric Cooperative, Inc. as of and for the years ended Dec. 31, 2013 and 2012, and have issued their report thereon dated March 5, 2014. The audits were conducted in accordance with auditing standards generally accepted in the United State of America and

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Cash flows from investing activities: Construction and acquisition of plant (5,185,327) (3,510,991) Plant removal costs (368,146) (538,979) Materials salvaged from retirements 53,759 14,900 Increase in materials and supplies 28,778 (93,995) Proceeds from disposal of plant 5,813 41,048 Proceeds from retirement of associated organizations patronage 106,411 55,320 Cash flows used by investing activities (5,358,712) (4,032,697) Cash flows from financing activities: Retirements of patronage capital credits (518,379) (491,475) Proceeds from long term debt 6,581,937 3,951,000 Payments on long-term debt (1,896,728) (1,923,562) Payments on capital lease obligations (118,504) (104,192) Advances on lines-of-credit 8,683,383 10,440,870 Payments on lines-of-credit (8,683,383) (10,440,870) Increase (decrease) in: Membership fees 235 265 Consumer deposits 4,214 56,981 Cash flows provided by financing activities 4,052,775 1,489,017 Net change in cash and cash equivalents 2,484,074 1,363,743 Cash and cash equivalents beginning of year 2,136,037 772,294 Cash and cash equivalents - end of year $ 4,620,111 $ 2,136,037

the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

As part of obtaining reasonable assurance about whether Tri-County Electric Cooperative, Inc.’s financial statements are free of material misstatement, tests were performed of the Cooperative’s compliance

with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.

The results of their tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

September & October 2014

Power Cost Per Dollar TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Statements of Revenues Years Ended December 31, 2013 and 2012

Operating revenues

2013

2012 $ 37,119,147 $ 36,781,501

Operating expenses: Cost of power 22,914,341 22,916,469 Transmission 38,282 5,436 Distribution operations 2,195,459 2,132,795 Distribution maintenance 3,006,169 2,732,608 Consumer accounts 1,396,176 1,420,554 General and administrative 2,344,122 2,579,705 Depreciation and amortization 2,571,338 2,412,697

34,465,887 34,200,264

Operating margins before interest expense 2,653,260 2,581,237 Interest expense

1,713,130 1,676,203

Operating margins after interest expense

940,130

905,034

G & T and other capital credits

488,987

352,024

Nonoperating margins

70,355 39,213

Net margins

$ 1,499,472 $ 1,296,271

www.facebook.com/TriCountyElectricFlorida

To Report Electrical Problems or Outages, Please Call:

850-973-2285 or

1-800-999-2285 24-HOUR SERVICE THANK YOU

September & October 2014

Operations Maintenance

Admin. & Depreciation Interest General

Billing & Operating Mbr. Serv. Margins

This Publication’s Inspirational Moments “Jesus saith unto him, ‘I am the way, the truth, and the life: no man cometh unto the Father, but by me.’”

John 14:6 (KJV)

Tri-County Rural Living Vol. XVIII No. I September & October 2014 TRI-COUNTY RURAL LIVING, the voice of your member-owned, taxpaying electric utility, is published bimonthly—more if necessary—through the auspices of Tri-County Electric Cooperative, Inc. as a service to its member-owners. Postage is paid at Blountstown, FL.

BOARD OF TRUSTEES Junior Smith Vice President, D-1 Bobby Dodd D-2 Neal Brown D-3 Bobby Harper D-4 Catherine Bethea D-5 Gary Fulford D-6 Albert Thomas, Jr. Secretary-Treasurer, D-7 Malcolm V. Page President, D-8 Elmer Coker D-9

EDITORIAL OFFICES 2862 West US Hwy. 90 Madison, FL 850-973-2285 PUBLICATION COMMITTEE Julius Hackett General Manager Eileen Herndon Executive Assistant Michael Curtis, Madison Media Group Writer STAFF Jeff Brewer Manager – Engineering Darrell Tuten Manager – Operations George L. Webb Manager – Administration Wendell M. Williams Manager – Finance

Send CHANGE OF ADDRESS NOTICES to: Tri-County Electric Cooperative, Inc. 2862 West US Hwy. 90 Madison, FL 32340

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“Welcome to the 2014 Annual Meeting” Mark your calendars: TCEC Annual Meeting, Sept. 20, 2014

Tri-County Electric Cooperative, Inc. 2862 West US Hwy. 90 Madison, FL 32340