TCEC 2025 Annual Report

A Note From Our CEO and Board President

Powered by Purpose

At Tri-County Electric Co-op (TCEC), every day offers an opportunity to say thank you to the member/owners who make everything we do possible and to reaffirm the values that guide our work.

As the CEO and Board Chair of TCEC, we see the power of that purpose in action every day. Unlike investor-owned utilities, whose priority is generating profits for distant shareholders, our cooperative exists to serve the people and communities right here at home. That’s why we were created, and it’s what drives every decision we make.

At its core, being a cooperative means being member-owned and locally controlled. That’s not just a phrase — it’s the center of our business model. Our members have a voice in how TCEC operates, and you elect board members who live in our service area and understand the unique challenges and opportunities facing our communities. Decisions aren’t made in distant boardrooms — they’re made here at home, by people who care about the same things you do.

This local accountability allows us to stay focused on what matters most: delivering reliable, affordable electricity and providing real value to the people we serve. We invest in infrastructure and new technologies that strengthen our system, and we work hard to manage costs because we understand how rising prices affect families and small businesses. When severe weather impacts our area, our crews are here and ready to respond because this is our home, too.

We are also preparing for the future. As electricity demand grows due to new technologies and economic development, we’re working to ensure those needs are met with a balanced and reliable energy mix. We know our members value affordability and dependability — and we are committed to providing both.

That is the power of the cooperative difference. That is what it means to be powered by purpose.

But our commitment extends beyond keeping the lights on. Cooperatives were created to meet community needs, and that commitment continues today. Whether we’re supporting local schools, sponsoring youth leadership opportunities, partnering with community organizations, or expanding rural broadband access, our goal is to help improve the quality of life in the communities we serve. Community support isn’t an extra — it’s part of our mission.

You are not just a customer — you’re an owner, a stakeholder, and a vital part of a shared commitment to keeping our community strong, connected, and energized.

We are honored to serve alongside one another — as CEO and Board Chair — and to work together with our dedicated employees to serve you. Every day, we are inspired by the strength, resilience and generosity of the people in the communities we serve. Thank you for allowing us to continue this work. We look forward to serving you for many years to come.

Julius Hackett, CEO & Bobby Dodd, Board President

Annual Growth

BILLED METERS

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.

DISTRIBUTED CAPITAL CREDITS TO THE MEMBERSHIP

Bringing Your Account to Your Fingertips

TCEC first launched the ability for members to make their payment online back in 2009. In March of 2025, after over a year of hard work by TCEC employees, we launched a new account management software for TCEC members. Bringing their TCEC account to their fingertips, online, on the go, and like never before.

The software upgrade has positively impacted employees co-op wide. Streamlining processes and connecting work in the field straight to a Member Service Representative. This allows for greater access to member information and more efficient service.

Members accessing their account via SmartHub, online or on the mobile app can:

Make a payment

Set up automatic or schedule future payments

Report an outage

Report a service issue

Monitor usage

Manage account alerts

Within the first 6 months of offering SmartHub:

7,818

Members are now managing their account online and on the go

5,161 Members have enrolled in Auto-Pay

6,015 Members activated paperless billing

974 Members enrolled in energizing education

TRI-COUNTY ELECTRIC COOPERATIVE

84TH

ANNUAL MEETING MINUTES - SEPTEMBER 21, 2024

The 84th Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held on Saturday, September 21, 2024, in the Madison County High School Gymnasium, Madison, Florida. Drive-through registration began at 8:00 A.M., and the live in-person business meeting started at 10:00 A.M., simultaneously broadcast on the Cooperative’s website and Facebook page.

By 9:45 A.M., 915 members had registered. At 10:00 A.M., the meeting was called to order by President Bobby Dodd, who introduced the Cooperative’s System

100% of the membership. He encouraged members to purchase fiber internet from the Co-op, as they own the fiber and its returns.

Before closing, Mr. Hackett stated that the co-op strives to provide high-quality service to the members and hopes they agree. He thanked everyone for their support.

Operations employee, Mr. Reggie Daniels, for the invocation, followed by the Pledge of Allegiance.

Mr. Dodd welcomed everyone in attendance and introduced the Board of Trustees of the Cooperative: District 1 - Junior Smith, District 3 - Donnie Waldrep, District 4 - George Webb, District 6 - Ann Herring, District 7 - Benjamin White, District 8 - Johnny Edwards, and District 9 - John Cruce. [District 5 Trustee, Catherine Bethea, was absent.] He then introduced the Cooperative CEO, Julius Hackett, and Cooperative Attorney, Dylan Rivers, from the firm Ausley and McMullen in Tallahassee, Florida.

Mr. Dodd turned the program over to Mr. Hackett, who welcomed the members and thanked them for participating in the business of the co-op. He discussed the challenges faced since Hurricane Idalia in 2023 and the impact of Hurricane Debby this past August. He noted that TCEC employees were ready to work shortly after noon when the winds from Hurricane Debby dropped below 35 mph. He attributed the quick recovery and restoration to preparedness and constant improvements to the power grid.

Mr. Hackett mentioned that the fiber-to-the-home project, announced two years ago, is now wrapping up. All the fiber has been hung, with some splicing left to complete. The project is on schedule and under budget. He emphasized that while “Big Tel-Com” businesses claim rural fiber projects can’t be done, the Co-op took on the challenge to bring fiber to the area. The project currently has 5,700 subscribers and is available to

Mr. Dodd returned to the stage and called upon Cooperative Attorney Mr. Dylan Rivers to moderate the business portion of the meeting. Mr. Rivers called the business session to order and verified with Cooperative staff that a quorum was established as of 9:45 A.M., allowing the transaction of business to commence.

the financial statements were printed in the September 2024 Tri-County Annual Report. The 2023 Financial Report, prepared by Nichols, Cauley and Associates, CPAs, reported no instances of non-compliance. The year ended with net margins from operations of $3.9 million, revenues of $50.9 million, and operating

Mr. Rivers then opened the floor for any unfinished business. There being none, he opened the floor for new business. With no new business, the Annual Meeting was adjourned at 10:30 A.M., Saturday, September 21, 2024.

A drawing for prizes followed.

The second order of business was the Official Notice. Mr. Rivers announced that the Official Notice of the Annual Meeting was mailed to each member on September 1, 2024. No one objected to the form or timing of the notice, and the reading of the notice was waived by motion duly made, seconded, and carried.

Mr. Rivers then moved to the reading of the Minutes of the September 17, 2023, Annual Meeting. He announced that the minutes were published in the September 2024 edition of the Tri-County Rural Living Annual Report. Upon motion duly made, seconded, and unanimously carried, the reading of the minutes was waived, and the minutes were approved as published.

Next, Mr. George Webb, Board Secretary and Treasurer, gave the Treasurer’s Report. He reminded members that

expenses of $44.7 million. The cooperative continues to grow, ending the year with 20,168 energized meters and $73.8 million invested in the utility plant system. The Board of Trustees voted to retire over $546,516 in capital credits last year, returning those dollars to the membership.

Mr. Rivers returned to announce the election of three trustees during July District Meetings in Districts 1, 2, and 4 for a term of three years. The elected trustees are:

District 1: Mr. Junior Smith, re-elected at Pinetta Volunteer Fire Department, Pinetta, Florida.

District 2: Mr. Bobby Dodd, re-elected at Steinhatchee Community Center, Steinhatchee, Florida.

District 4: Mr. George Webb, re-elected at Lee City Hall, Lee, Florida.

Pat Harris and Carol Timmons

Willie Bell, Curtis Akins, Allen Welch, Arlie Webb

One of the first TCEC Annual Meetings

PROPOSED BYLAW AMENDMENT: ALTERNATIVE DISPUTE RESOLUTION

Why this change?

Your Board of Trustees want a faster, fairer, and less expensive way to resolve disputes between members and the cooperative without going to court. This amendment would require more disputes to be handled through binding arbitration with a neutral third party.

What kinds of disputes would this cover?

Disagreements about the bylaws or how they’re applied – issues involving patronage capital, capital credits, or payments to members under Florida Law, cooperative governance matters, land use, licenses, easements, or services (including broadband).

How would disputes be resolved?

Most disputes go to binding arbitration administered by the American Arbitration Association (AAA). Arbitration held in Florida, within our service area. Each side pays their own attorney fees and shares the arbitrator’s cost equally. A neutral arbitrator (not a judge or jury) makes the final decision.

No Group or Class Actions

Small Claims Court is Still an Option

If a dispute qualifies for small claims court in Florida, either party may choose that path instead of arbitration. Small claims cases must also be individual cases.

You Can Opt Out

If you do not want to be bound by this arbitration requirement, you can reject it by sending a written “Rejection Notice” to the cooperative:

Rejection Notice Department

Tri-County Electric Cooperative, Inc.

2862 West US 90 Madison, FL 32340

Send within 60 days of the annual meeting adoption OR 14 days of becoming a new member (whichever is later) include: full name, address, phone number, account number, and signature. Mail by return receipt requested

All disputes must be handled individually – no class actions or combined cases with other members.

ANNUAL MEETING OFFICIAL NOTICE

The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, September 20, 2025, at the Madison County High School Gymnasium located on the campus of the Madison County High School, 2649 US 90, Madison, Florida. Registration will take place from 8:00 A.M. until 9:30 A.M. Registered members will receive a $20 bill credit and registration gift.

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

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

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

Before Starting Arbitration

You must first notify the Board of Trustees in writing at least 15 days before the next regular board meeting so we can try to resolve the issue informally,

If Arbitration Isn’t Possible

If a case goes to court, both parties waive the right to jury trial

Key Benefits of Arbitration

Faster Resolution than court

Lower legal costs for both sides

Private and local process

Decision made by an experienced, neutral party

Register and cast your vote at the 2025 Annual Meeting using your Quick Registration Ballot. Ballots will be arriving in mailboxes in early September. Complete the perforated end and bring to drive-thru registration to claim your $20 bill credit, registration gift, and be entered to win 1 of 40 fabulous prizes.

At this Annual Meeting, Trustees elected during the District Meetings held in July 2025 pursuant to the Bylaws of the Cooperative, will be seated to serve a term of three (3) years as Trustee of the districts as indicated below: District No. 3.........................Donnie

No. 6…………………Ann

Proposed Amendments to the Bylaws of Tri-County Electric Cooperative, Inc.

Dispute Resolution UNLESS OTHERWISE PROHIBITED BY LAW, ANY ALREADY ACCRUED OR EXISTING CONTROVERSY OR CLAIM, AS WELL AS ANY FUTURE CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THESE BYLAWS, OR THE BREACH THEREOF, AND/OR ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO PATRONAGE CAPITAL AND/ OR TO ANY PAYMENT TO MEMBERS THAT IS REQUIRED OR ARGUABLY REQUIRED UNDER FLORIDA LAW, INCLUDING ANY CLAIMS RELATED TO MEMBER EQUITY AND/OR ARISING UNDER OR RELATED IN ANY WAY TO SECTION 425.21, FLORIDA STATUTES, AND/OR ANY CONTROVERSY OR CLAIM RELATED TO COOPERATIVE GOVERNANCE, AND/OR ANY CONTROVERSY OR CLAIM RELATED TO LAND USE, LICENSE AND EASEMENT RIGHTS, OR THE PROVISION OF COOPERATIVE SERVICES, INCLUDING THOSE RELATED TO BROADBAND SHALL BE RESOLVED AND DETERMINED BY BINDING ARBITRATION ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION IN ACCORDANCE WITH ITS ARBITRATION RULES AFTER ALL CONDITIONS PRECEDENT AS SET FORTH HEREIN, IF APPLICABLE, HAVE BEEN MET. THIS AGREEMENT INVOLVES INTERSTATE COMMERCE SUCH THAT THE FEDERAL ARBITRATION ACT, 9 U.S.C. §1, ET SEQ SHALL GOVERN THE INTERPRETATION AND ENFORCEMENT OF THIS ARBITRATION AGREEMENT. THE ARBITRATION SHALL BE HELD IN THE STATE OF FLORIDA, AT A LOCATION TO BE DESIGNATED BY THE PARTY NOT MAKING THE INITIAL DEMAND FOR ARBITRATION, WITHIN THE SERVICE TERRITORY OF THE COOPERATIVE. A JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATOR SHALL BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. EACH PARTY AGREES, TO THE FULLEST EXTENT ALLOWED BY LAW, THAT THE ARBITRATOR SHALL BE THE PERSON TO DECIDE ALL THRESHOLD ISSUES AND TO DECIDE ALL ISSUES OF ARBITRABILITY, SCOPE, VALIDITY, ENFORCEABILITY, UNCONSCIONABILITY, RETROACTIVITY AND/OR APPLICABILITY. EACH PARTY AGREES TO PAY THEIR OWN ATTORNEYS’ FEES AND COSTS AND EACH PARTY AGREES TO SHARE EQUALLY IN THE COST OF THE ARBITRATOR.

Terry Dobson & Claude Pickles

Opinion

INDEPENDENT AUDITOR’S REPORT

We have audited the accompanying financial statements of Tri-County Electric Cooperative, Inc., which comprise the balance sheets as of December 31, 2024 and 2023, 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, 2024 and 2023, 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.

Board of Trustees

Tri-County Electric Cooperative, Inc.

Madison, Florida 32340

Report on the Audit of the Financial Statements

Opinion

Basis for Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tri-County Electric Cooperative, Inc. as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

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

Responsiblities of Management for the Financial Statements

are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and GAS, we:

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

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

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

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

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

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

Responsibilities of Management for the Financial Statements

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

Auditor’s Responsiblities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2024, our consideration of the Tri-County Electric Cooperative, Inc.’s internal control over financial and on our tests of its compliance with certain provisions of laws, regulations, contracts, and agreements and other matters. The purpose of that report is to describe the scope of our testing of control over financial reporting and compliance and the results of that testing, and not to provide opinion on internal control over financial reporting or on compliance. That report is an integral an audit performed in accordance with Government Auditing Standards in considering TriCooperative, Inc.’s internal control over financial reporting and compliance.

In accordance with Government Auditing Standards, we have also issued our report dated June 9, 2025, on our consideration of the Tri-County Electric Cooperative, Inc.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Tri-County Electric Cooperative, Inc.’s internal control over financial reporting and compliance.

Nichols, Cauley & Associates, LLC

Warner Robins, Georgia June 9, 2025

Warner Robins, Georgia May 15, 2024

December 31, 2024 and 2023 - Balance Sheets

UTILITY PLANT

Utility plant in service

Construction work in progress

Less - accumulated provisions for depreciation and amortization

Total utility plant

OTHER PROPERTY AND INVESTMENTS

Investments in associated organizations

CURRENT ASSETS

Cash and cash equivalents

Accounts receivable (less allowance for credit losses of $153,098 in 2023 and $160,314 in 2022)

Other receivables

Accrued utility revenue

Materials and supplies

Other

Total current assets

DEFERRED CHARGES

TOTAL ASSETS

EQUITIES

Memberships

Patronage capital

Other

Total equities

LONG-TERM DEBT AND OTHER NONCURRENT LIABILITIES

Mortgages (less debt issuance costs of $181,208 in 2024 and $78,902 in 2023)

Financial leases

Total long-term debt and other noncurrent liabilities

CURRENT LIABILITIES

Current maturities of long-term debt

Lines-of-credit

Accounts payable

Consumer deposits

Other

Total current liabilities

DEFERRED CREDITS

TOTAL

December 31, 2024 and 2023 - Statements of Revenues

OPERATING

Cost

Transmission

Distribution

Consumer accounts

General

Depreciation and

Total

BALANCE AT DECEMBER 31, 2022

Membership issued, net

Net margins

Retirements of patronage capital

BALANCE AT DECEMBER 31, 2023

Memberships issued, net

Net margins

Retirements of patronage capital

BALANCE AT DECEMBER 31, 2024

December 31, 2024 and 2023 - Statements of Cash Flows

CASH FLOW FROM OPERATING ACTIVITIES

Net margins

Noncash income and expenses included in net margins:

Depreciation and amortization

Amortization of debt issuance costs

Reduction in provision for credit losses

G & T and other capital credits

Gain on disposition of utility plant

(Increase) decrease in:

Accounts receivable and accrued utility revenue

Other receivables

Other current assets

Deferred charges

Increase (decrease) in:

Accounts payable

Other current liabilities

Consumer deposits

Deferred credits

Cash flows provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

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

Net change in materials and supplies

Returns of equity from associated organizations

Purchase of membership in associated organization

Cash flows used by investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt

Payments on long-term debt

Payments for debt issuance costs

Payments on financial lease obligations

Proceeds on lines-of-credit, net

Net change in memberships

Retirements of patronage capital

Cash flows provided by financing activities

NET CHANGE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS - END OF YEAR

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES

Increase in

815 3,918,273 (389,467) 43,478,925 (1,125) 4,097,863 (405,028) $47,170,635 $4,097,863 6,109,275 58,037 (857) (2,328,994) (12,138) (329,613) (131,610) 62,173 36,715 49,710,112 104,945 (2,860) 750,000 58,123,048 (90,509,629) 7,349,150 247,037 (10,000) (82,896,442) 20,000,000 (3,305,978) (160,343) (340,949) 8,968,553 (1,125) (405,028) 24,755,130 (18,264) $2,764,266 $2,764,002 $319,054 $586,862 $8,117,345 $3,918,273 4,963,715 47,342 (702) (1,642,715)52,909 (8,813) 9,369 121,905 5,618,519 152,041 (18,080)13,213,763 (73,781,905) (4,040,936) 85,798(77,737,043) 30,000,000 (2,917,514)(300,100) 37,865,288 815 (389,467) 64,259,022 (264,258) 3,028,524 $2,764,266 $331,932 $184,435 $4,095,907 2024 2023

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

Publication Team

Eileen