2016 Annual Report - Sept/Oct newsletter

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September & October 2016 Vol. 20 • No. 1

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The Cooperative Difference

Board President Gary Fulford

CEO Julius Hackett

We would like to personally extend an invitation for you to join us on Sept. 17 for the 2016 Tri-County Electric Cooperative Annual Meeting at the Van H. Priest Auditorium in Madison.

It makes sense as we prepare for this celebration that we take a moment to highlight some of the qualities that make your electric cooperative different from other types of utilities and businesses.

For starters, electric co-ops are owned by those they serve. That’s why those who receive electric service from us are called members, not customers. Without members, there would be no Tri-County Electric.

Members maintain democratic control of our co-op, which means they elect fellow members to represent them on the Board of Trustees at the Annual Meeting.

This year you have an opportunity to help determine how your co-op is run by helping choose trustees in Districts 3, 5 and 6.

Other bonuses: Co-op members receive special benefits through programs like our Energizing Education scholarships, Co-op Connections® Card, and complimentary home energy audits. We also return margins (“profits”) to our members annually in December in the form of capital credits.

One principle that sets us apart from other businesses is our concern for the

community. As a cooperative, we have a special responsibility to support the areas in which our members live and work.

From sponsoring a local school’s baseball team to supporting new jobs and industry through our economic development efforts, we stand as a driving force in our community. Our employees volunteer hundreds of hours to serve our fellow neighbors, and they contribute both their time and money to support causes like United Way of the Big Bend and Relay for Life to name a few.

Of course, co-ops span all industries, including credit unions, dairy operations, health care, housing, and much more.

There are more than 29,000 co-ops across the nation. And not all are small or rural.

Just look at nationally-known co-ops like Sunkist, Ace Hardware, and Land O’ Lakes.

Overall, co-ops are more accessible than other types of businesses. We give our members a voice, and we are local — living and working alongside those we serve.

That’s the cooperative difference.

So please join us on Sept. 17 at the Annual Meeting. You will hear a business update on your co-op and also have an opportunity to win one of several door prizes.

Registration is 9:00–10:00 a.m., with the business meeting beginning at 10:00 a.m.

We hope to see you there!

Trustee Elmer Coker Earns His Director Gold Certificate District 9 Trustee Elmer Coker was recently presented with his NRECA Director Gold Certificate. The Director Gold program recognizes trustees such as Mr. Coker and his commitment to continuing his education in the industry while serving on the board of trustees. The Director Gold Certificate is the latest professional accomplishment awarded to Mr. Coker in addition to his Certified Cooperative Director and Board Leadership Certification credentials.

We congratulate Mr. Coker on a job well done!

Board President Gary Fulford (left) presents the NRECA Director Gold Certificate to Trustee Elmer Coker, District 9 Trustee (right).

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September & October 2016

Vote Nov. 8 — www.Vote.Coop Keeps You Informed ence our state and federal leadership.

Whether it’s on issues related to the development of renewable energy, like solar, or the future of the clean power plan, how our elected officials represent us in Tallahassee and Washington D.C. will affect our ability to provide safe, affordable, reliable electricity. 4557002 Do you know who represents you in Tallahassee? Do you know who represents you in Washington D.C.? Too often the answer to these two important questions, is “No.” The General Election is on Nov. 8, and if you are looking for more information, electric cooperatives have a tool that can help: www. vote.coop.

Democratic member control is a crucial principle for Tri-County Electric Cooperative. It’s how we choose our leadership locally. By voting on Nov. 8, members of TCEC will help to influ-

Important Dates to Remember To register to vote in Florida for the Nov. 8 General Election: • If registering by mail, all voter registration forms must be postmarked by Oct. 11.

• If registering in person or online, registration will end on Oct. 11.

In addition to registering to vote, you should also: • Encourage family members and friends to register and vote.

• When you go vote on Nov. 8, take a friend or family member to

the polls to vote, too.

• Pledge to become a co-op voter by visiting www.vote.coop.

When you visit www.vote.coop, browse around for information on candidates, the voter registration process in Florida, and other key information. With 42 million members across the nation, electric co-ops are a powerful voice on national issues that have a local impact — an impact that is felt by all of us here at TCEC. It’s easy to criticize our elected representatives, but if you haven’t voted, you are walking away from an opportunity to make elected representatives accountable. Our voice is stronger when candidates understand that cooperative members care and are engaged in the voting process.

Join electric cooperatives across Florida and across the United States ... Vote on Nov. 8.

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Over 100 prizes to be won at your Cooperative’s Annual Meeting, Saturday September 17, 2016!

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You!

September & October 2016

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Meet Your Board of Trustees TCEC is committed to conducting business with a high level of integrity and in an ethical and responsible manner. TCEC members vote for trustees, each of whom represent a district.

The nine-member board represents all walks of life and resides in communities and neighborhoods throughout the service territory. Since 1940, TCEC employees, guided by the Board of Trustees, have made the highest effort to balance fiscal responsibility with the goal of improving the lives of those whom they serve.

District 1 — Junior Smith

Mr. Junior 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 service.

Mr. Smith is a Credentialed Director and holds a Board Leadership Certificate through NRECA. He has served as past Vice President on the TCEC Board.

District 2 — Robert A. “Bobby” Dodd

Mr. Bobby Dodd is the Trustee from District 2: Steinhatchee area. He was elected to the Tri-County Board of Trustees in 2012, and prior to that he was with the Department of Corrections for the State of Florida. Mr. Dodd lives in Steinhatchee with his wife, Marlene.

He is a military veteran having served in the United States Army. Mr. Dodd is a Credentialed Director and holds a Board Leadership Certificate through NRECA. He 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.

He was elected to TCEC’s Board in 1992 and served as past Vice President.

He has also served on the boards of Seminole Electric and Florida Electric Cooperatives Association. Mr. Brown is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

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District 4 — George Webb

Mr. George Webb is the Trustee from District 4: southern Madison county, and is the newest board member, having been elected in 2015.

Mr. Webb is the former Manager of Member Service and Administration for the Cooperative; he retired after 41 years of service. He lives in Lee with his wife, Marcia. Mr. Webb has been busy during his first year on the board — he has earned his Credentialed Cooperative Director Certificate through NRECA and is working on obtaining his Board Leadership Certificate.

District 5 — Catherine Bethea

Secretary/Treasurer 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 has earned a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District 6 — Gary Fulford

President Mr. Gary Fulford is the Trustee from District 6: northern Jefferson County. He resides in Jefferson County with his wife, Pam. He is a retired farmer. Mr. Fulford is the longest-serving Trustee on the Tri-County Electric Board, having become a Trustee in 1990. He is the current TCEC Board President and has served in the past as Vice President and Secretary/ Treasurer. In addition to serving as Trustee for TriCounty, he serves as Trustee on the Seminole Electric Cooperative Board. Mr. Fulford is a University of Florida graduate.

September & October 2016

District 7 — Albert Thomas

Vice President 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 Vice President. 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

Past President Mr. Malcolm V. Page is the Trustee from District 8: northern Taylor County. He was elected in 1993, and during his career has served as President of the TriCounty Board of Trustees. Mr. Page is a retired educator and resides with his wife, Bettie, in Perry, where he raises a small herd of Angus cows. In addition to serving on the Cooperative Board, he also serves on the Board of County Commissioners for Taylor County, is a Trustee of the Seminole Electric Cooperative Board, and is a former Trustee of the Board of the Florida Electric Cooperatives Association. Mr. Page is a graduate of Florida State University. He is a Credentialed Director and holds a Board Leadership Certificate through NRECA.

District Meetings Held in July Each year, Tri-County Electric Cooperative, Inc. holds member meetings in three of its nine districts for the purpose of nominating candidates for Trustees. Those candidates will then be voted on during the Annual Meeting on Sept. 17, 2016. Meetings this year were held in Districts 3, 5 and 6.

The District 3 meeting was held Tuesday evening, July 19, 2016, at Cherry Lake First Baptist Church in Madison, Fla. No business was conducted due to a lack of a quorum at the meeting. A candidate for trustee for the district may be made from the floor during the Annual Meeting pursuant to the provisions of the By-laws of the Cooperative.

The District 5 meeting was held Tuesday evening, July 26, 2016, at St. Johns Christian Fellowship Church, Perry, Fla. Mrs. Catherine Bethea was nominated without opposition.

The District 6 meeting was held Thursday evening, July 28, 2016, at Mt. Pleasant AME Church, Monticello, Fla. Mr. Gary Fulford and Mr. Lonnie Griffin were nominated as candidates for trustee.

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District 9 — Elmer Coker

Mr. Elmer Coker is the Trustee from District 9: southern Taylor County. He has served on TriCounty’s Board of Trustees since 2006. 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. He has served in the past as Vice President of Tri-County’s Board of Trustees. Mr. Coker is a graduate of Florida State University. Mr. Coker is a Credentialed Director, and holds Board Leadership and Director Gold Certificates through NRECA.

September & October 2016

Mrs. Catherine Bethea shares Cooperative information at the District 5 member meeting held on July 26, 2016.

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Tri-County Electric Cooperative, Inc. 75th Annual Meeting, Sept. 19, 2015 The 75th Annual Meeting of the members of Tri-County Electric Cooperative, Inc. was held Saturday, Sept. 19, 2015, in the Van H. Priest Auditorium on the campus of North Florida Community College in Madison, Fla. Registration began at 9:00 a.m. While members were registering their attendance, 50 Caliber Minivan, a local gospel group entertained.

Following the music, a video commemorating TCEC’s 75th anniversary was presented featuring several members sharing their stories of life prior to electricity and the founding of the Cooperative.

The meeting was called to order by President Malcolm V. Page with the Taylor County High School Junior ROTC presenting the colors, followed by the Pledge of Allegiance.

Tri-County Electric Cooperative employee, Mr. David Allen, Staking Technician, gave the invocation.

Mr. Page introduced the guests present as follows: Mr. Ben Stewart, Madison County Sheriff; Mr. Dustin Hinkle, Taylor County Administrator; Mr. Bill Willingham, Florida Electric Cooperatives Association; Mr. John Kimsey, National Utilities Co-op Finance Corporation; Ms. Mary Thomas, Candidate for Congress; Mr. Thomas Hardee, Madison County Supervisor of Elections; Mrs. Lisa Johnson, Ms. Trudy Novak, Mr. Mark Sherman, Mr. Kyle Wood, Mr. Ryan Hart and Ms. Leigh Hester, Seminole Electric Cooperative, Inc.; and VIP members who participated in the Life Before Lights video: Mr. Fred Mitchell of Steinhatchee, Mrs. Naomi Cummings of Wacissa, Mr. Robert Agner of Madison, Mrs. Freddie Love Hires of Steinhatchee, and Mrs. Lucile Day of Greenville.

Mr. Page introduced the Board of Trustees of the Cooperative as follows: Mr. Junior Smith, Mr. Bobby Dodd, Mr. Neal Brown, Mr. George Webb, Mrs. Catherine Bethea, Mr. Gary Fulford, Mr. Albert Thomas, Jr., Mr. Elmer Coker, and himself.

He further introduced General Manager Julius Hackett and Attorney Dylan Rivers.

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

President Malcolm V. Page began his address by stating that it is the members who have ensured the cooperative’s success by being involved and actively participating in cooperative matters, and attending Annual Meetings. He compared members’ participation in the early days when they gave of their time and talents by clearing brush, digging holes, raising poles, stringing wire, etc. to bring electricity to their friends and neighbors to that of today when members contribute their time by serving on the board and as election judges, attending annual meetings and voting in elections, etc. He thanked the members for their involvement in the business of the cooperative and taking advantage of the opportunity to vote in the business portion of the meeting. Mr. Page further remarked that 6

member participation is crucial to the cooperative’s success, but the dedicated, professional employees really make it happen. He asked for a round of applause for the employees.

General Manager Julius Hackett thanked the members for participating in the affairs of their cooperative and said that today was all about them. He hoped everyone enjoyed the trip down memory lane with the video, Life Before Lights, and stories from members describing of what life was like before there was electricity. He expressed his appreciation of those early members who overcame obstacles with the founding of the cooperative. He challenged current members to be good stewards of the business of the cooperative, to continue to power our communities and to extend this legacy to the next generation. Mr. Hackett reported on emerging technologies that include upgrades to the electric grid, and new programs and services designed to help members better manage their electric consumption by using smart appliances, smart thermostats and smart phones. He spoke briefly of a two-megawatt community solar project Seminole Electric Cooperative is working on, and informed members they will see additional information on this opportunity in upcoming newsletters.

He spoke of the big challenges the cooperative faces with environmental regulations requiring electric utilities using coal fire generation to reduce carbon dioxide emissions by 26% below the 2005 rate by the year 2030. These regulations place a lot of uncertainty on Seminole Electric Cooperative’s coal plant which supplied more than half of the members energy needs in 2014. He stated that Seminole Electric has spent more than $530 million dollars in clean energy upgrades to its coal facility making it one of the cleanest coal plants in the United States, and premature closure of the plant will impact members financially. He asked for members’ support — for them to be aware of the issues and to call upon them when the time comes to make their voices heard by sending messages to elected officials to help protect their families’ budgets.

Mr. Malcolm V. Page introduced the guest speaker, Mr. Al Walker, motivational humorist.

Mr. Walker entertained the membership with humorous stories.

Cooperative Attorney Dylan Rivers called the business session to order.

As the first order of business, Mr. Rivers called upon Mr. 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., 295 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.

September & October 2016

The second order of business was the Official Notice of the Annual Meeting. Mr. Rivers announced that a copy of the Official Notice of the Annual Meeting of the members of the Cooperative was mailed to each member of the Cooperative at the address of such member, as shown on the records of the Cooperative, by depositing such notice in the United States Mail at Blountstown, Fla., on Aug. 30, 2015, 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.

Attorney Dylan Rivers then stated that the next order of business was the reading of the minutes of the 2014 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 2014 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 2014 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 2015 TriCounty 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 2014 reflect a moderate increase in revenues to $40 million, which resulted in net margins of $2.9 million for the year, and a slight decrease in the number of active meters served. He reported that the cooperative continues to make major investments in the electric utility plant that includes technology upgrades, poles, wires and substation equipment that resulted in an increase in plant value, for a total value of $82.5 million in total assets owned by the Cooperative. Further, overall the financial condition of the cooperative remains strong. As a display of this fiscal strength the Board of Trustees voted to retire $850,000 in capital credits last year and returned these dollars back to the membership.

Attorney Dylan Rivers then stated that the next order of business was the election of Trustees from districts 1, 2 and 4 to serve for a term of three years or until the election of their respective successors.

DISTRICT NO. 1 Mr. Junior Smith, being duly selected as the district’s official candidate at the duly called District Meeting of District No. 1 and no intention to make additional nominations from the floor for Trustee of District No. 1 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

September & October 2016

DISTRICT NO. 2 Mr. Robert A. Dodd, being duly selected as the district’s official candidate at the duly called District Meeting of District No. 2 and no intention to make additional nominations from the floor for Trustee of District No. 2 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

DISTRICT NO. 4 Mr. George Webb, being duly selected as the district’s official candidate at the duly called District Meeting of District No. 4 and no intention to make additional nominations from the floor for Trustee of District No. 4 being filed as required by the Bylaws of the Cooperative, was elected by a vote of acclamation.

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

There being no unfinished business to come before the meeting, the floor was then opened for any new business of the Cooperative which should come before the membership of the Cooperative at this Annual Meeting.

Attorney Rivers then advised the members of the Cooperative present at the meeting that the Board of Trustees of the Cooperative had duly proposed an amendment to ARTICLE III, MEETING OF MEMBERS, SECTION 7. NOMINATION AND ELECTION OF TRUSTEES of the Bylaws of the Cooperative, and the proposed submission of such amendments to the members of the Cooperative at this meeting for their consideration, acceptance or rejection. Mr. Rivers then reviewed the proposed amendments to the Bylaws and stated that these proposed amendments had been set out verbatim in the Official Notice of this meeting mailed to the membership of the Cooperative. Mr. Rivers further stated that each member of the Cooperative who had registered for this Annual Meeting of the membership of the Cooperative had been given ballots setting forth the proposed amendments to the Bylaws of Tri-County Electric Cooperative, Inc. Mr. Rivers explained the ballot to be used and the procedure to be following when casting a vote.

Attorney Rivers opened the floor for debate from the membership on BALLOT NO. 1. ARTICLE III, MEETING OF MEMBERS, SECTION 7. NOMINATION AND ELECTION OF TRUSTEES of the Bylaws of the Cooperative regarding nomination and election of trustees. Following debate and discussion, the question was called and a voice vote was taken: Ayes — all, nays — none.

The amendment passed.

With the passage of this amendment, ARTICLE III, MEETING OF MEMBERS, SECTION 7. NOMINATION AND ELECTION OF TRUSTEES, of the Bylaws  Continued on Page 8 7

Find Your Hidden Account Number & Get a $150 Bill Credit!

Hidden somewhere in this issue of Tri-County Rural Living are two member account numbers. Look carefully, one might be yours. If you find your account number exactly as it appears on your bill for electric service, we’ll credit your bill up to the amount of $150!* You have until Oct. 31, 2016, to claim your credit by calling Carol Timmons at (850) 973-2285, Ext. 203 from 8 a.m. to 5 p.m., Monday through Friday. You must contact the TCEC representative before the deadline to collect your prize.

Congratulations to last issue’s winners: Norma Phelps Johnson & Keith W. Sever * Total credit on bill will not exceed $150.00. This one-time credit is valid only on the current balance. Any balance remaining after the $150.00 applied credit is the member’s responsibility.

2015 Annual Meeting Minutes Continued from Page 7

of Tri-County Electric Cooperative, Inc. was amended to read as follows: (a) Nomination at District Meetings. Not less than thirty days nor more than sixty days before any meeting at which trustees are to be elected, the Board of Trustees shall call a separate meeting of the members of each district at a suitable place in such district for the purpose of selecting candidates for trustee to represent the members located within such district. The notice of such meeting shall be delivered to each member located in such district as provided in Section 3 of this Article and shall indicate the district to which such member belongs. The notice shall state that nominations for trustees are to be made at the meeting. The meeting shall, however, be open for discussion of any other matters pertaining to the business of the Cooperative, regardless of whether or not such matters were listed in the notice of the meeting, and recommendations with respect thereto may be submitted to the Board of Trustees or the entire membership.

Any member who intends to seek a nomination to be a candidate for trustee (including incumbent trustees) must notify the Cooperative in writing at its headquarters in Madison, Florida at least 21 days before the district meeting at which nominations for trustee are to be made. After receiving such written notice, the Cooperative will confirm that the member is a resident of the district for which he/she intends to be a candidate for trustee, and is otherwise qualified to be a trustee. In the event that the member is not qualified to be a trustee, the Cooperative will notify the member of this in writing prior to the district meeting at which nominations for trustee are to be made.

The district meeting shall be called to order by the 8

trustee representing the district or by another designated representative of the Board of Trustees, or, in his absence, by any member residing within the district. The members shall then proceed to elect a chairman, who shall be someone other than a trustee, and who shall appoint a secretary to act for the duration of the meeting. Fifteen members residing in the District present at such duly called district meeting shall constitute a quorum. Members of other districts present at the meeting may be heard but shall have no vote. Nominations for candidates for trustee shall be made from the floor at the meeting, and any member residing in the district shall have the right to nominate one candidate. The meeting shall remain open for nominations until no further nominations are forthcoming. Candidates must be members residing in the district and must possess the qualifications for trustee specified in Section 2 of Article IV of these bylaws.

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

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 11:11 a.m., Saturday, Sept. 19, 2015.

Thereafter, a drawing for prizes was held.

Gary Fulford, President Catherine Bethea, Secretary/Treasurer September & October 2016

Tri-County Electric Cooperative, Inc. Board Meeting Summary for June 13, 2016 With all trustees except one, key cooperative personnel, and guests present, the regular monthly meeting of the Board of Trustees of Tri-County Electric Cooperative, Inc. was held on Monday, June 13, 2016, in the Tri-County Electric Cooperative, Inc. headquarters office building located at 2862 West U.S. 90, approximately two miles west of the city of Madison, Fla. Reports to the Board included those of the Florida Electric Cooperatives Association June Board Meeting, Finance Committee, Policy Committee, Building and Land Committee, and General Manager. The Policy Committee recommended and the Board approved revised Policy 105, “Conflict of Interest and Related Party Transactions,” effective immediately. The Board was asked to take proposed revised Policy 503, “Personal Leave,” home for study for possible action at the July 2016 board meeting. Other action taken by the Board included the following: approval of the

June 13, 2016, Board Agenda and the May 16, 2016, Board Meeting Minutes; employee health insurance renewal for 2016-17; approval of Work Order Inventories (RUS Forms 219) for October–December 2015; and approval of items as written and recommended by the General Manager which included the WPCA for June 2016 as established by resolution; RUS Form 7 for April 2016; the list of new members for April 18–May 22, 2016; and the Safety and Accident Report for April 2016 along with the System Outage Report. Community Relations Specialist Kaitlynn Culpepper presented information on the scholarships awarded to eight high school seniors from Aucilla Christian Academy, Madison County High School and Taylor County High School.

Gary Fulford President Catherine Bethea, Secretary

Tri-County Electric Cooperative, Inc. Board Meeting Summary for July 11, 2016 With all trustees except one, key cooperative personnel, the attorney, and guests present, the regular monthly meeting of the Board of Trustees of Tri-County Electric Cooperative, Inc. was held on Monday, July 11, 2016, in the Tri-County Electric Cooperative, Inc. headquarters office building located at 2862 West U.S. 90, approximately two miles west of the city of Madison, Fla. Reports to the Board included those of the Finance Committee, Policy Committee, Building and Land Committee, CEO, and Attorney. Action taken by the Board included the following: approval of revised Policy 503, “Personal Leave;” the July 11, 2016, Board Agenda and the June 13, 2016, Board Meeting Minutes; a resolution adopting the Seminole Electric Cooperative 2016 Load Forecast; Consent Agenda Items as written and recommended by the

The regular monthly meeting of the Board of Trustees of Tri‑County Electric Cooperative, Inc. will be held the second Monday in each month at 3:00 p.m. in the central office building of the Cooperative located at 2862 West U.S. 90, approximately two miles west of the city of Madison.

September & October 2016

CEO which included the WPCA for July 2016 as established by resolution; RUS Form 7 for May 2016; the list of new members for May 23–July 11, 2016; the Safety and Accident Report for May 2016 along with the System Outage Report. Other action taken by the Board included authorization for the management to purchase Cyber Liability Coverage through Federated Rural Electric Insurance Exchange and authorization for the first quarter 2016 present uncollectible accounts for the appropriate accounting designation. The following item was presented for the Secretary’s signature: Certification of Mailing of District Meeting Notices for Districts 3, 5 and 6 on June 17, 2016.

Gary Fulford President Catherine Bethea, Secretary

This Publication’s

Inspirational Moment “But I say to you who hear, love your enemies, do good to those who hate you, bless those who curse you, pray for those who mistreat you.”

Luke 6:27–28 (NASB) 9

TRI-COUNTY ELECTRIC COOPERATIVE, INC.

TRI-COUNTY ELECTRIC COOPERATIVE, INC.

FLORIDA 28 MADISON

FLORIDA 28 MADISON

Balance Sheets

Statements of Revenues

December 31, 2015 and 2014

Years Ended December 31, 2015 and 2014

2015 2014 ASSETS Electric plant: In service - at cost $ 93,977,473 $ 89,580,920 Construction work in progress 3,255,023 3,376,866 97,232,496 92,957,786 Less - Accumulated provisions for depreciation and amortization 25,852,522 24,801,088

71,379,974 68,156,698 Other investments: Investments in associated organizations 7,603,873 6,915,448 Current assets: Cash and cash equivalents: Cash 1,110,119 1,772,296 Temporary investments 2,044,629 2,000,000 Accounts receivable (less allowance for accounts of $169,299 in 2014 and $94,731 in 2013) 1,556,676 1,519,893 Unbilled electric revenue 1,450,000 1,450,000 427,975 477,289 Materials and supplies (at avg. cost) 71,278 201,825 Other current assets

6,660,677 7,421,303 681,318 53,182

Deferred debits $ 86,325,842 $ 82,546,631 Total assets

2015 2014 ASSETS $ 40,174,355 $ 40,063,147 Operating revenues Operating expenses: Cost of power 24,147,096 24,425,563 Transmission 6,080 11,974 Distribution operations 2,265,276 2,239,804 Distribution maintenance 3,162,978 3,139,704 Consumer accounts 1,476,617 1,498,799 General and administrative 2,506,307 2,208,161 Depreciation and amortization 2,789,202 2,659,953

36,353,556 36,183,958 Operating margins before interest expense 3,820,799 3,879,189 Interest expense 1,775,574 1,790,612 Operating margins after interest expense 2,045,225 2,088,577 G & T and other capital credits 784,973 742,752 Nonoperating margins

60,554 89,797 Net margins $ 2,890,752 $ 2,921,126

EQUITIES AND LIABILITIES Equities Membership fees $ $63,195 $ 63,660 Patronage capital 33,725,848 31,990,273 605,130 462,245 Other

34,394,173 32,516,178 Long-term debt, net of current maturities: Mortgage notes 44,821,158 42,935,956 Capital leases 195,677 128,339

45,016,835 43,064,295 Current liabilities: Current maturities of long-term obligations 2,196,832 2,114,055 Accounts payable 2,034,556 2,458,538 Consumer deposits 1,124,276 1,142,551 Other 1,413,818 1,221,238

6,769,482 6,936,382 145,352 29,776 Deferred credits

$ 86,325,842 $ 82,546,631 Total equities and liabilities 10

Nichols, Cauley and Associates, LLC, from Warner Robins, Ga., audited the financial statements of Tri-County Electric Cooperative, Inc. as of and for the years ended Dec. 31, 2015 and 2014, and the related statements of revenues, changes in equities, and cash flows for the years then, and the related notes to the financial statements. The auditors have issued their report thereon dated March 14, 2016.

The audit was conducted in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require the auditor to perform the audit to obtain reasonable assurance about whether the Cooperative’s financial statements are free from material misstatement.

The opinion of the auditor report states, “In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of TriCounty Electric Cooperative, Inc. as of Dec. 31, 2015 and 2014, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.”

September & October 2016

TRI-COUNTY ELECTRIC COOPERATIVE, INC. FLORIDA 28 MADISON Statements of Cash Flows Years Ended December 31, 2015 and 2014

2015 2014 Cash flow from operating activities: Net margins $ 2,890,752 $ 2,921,126 Noncash income and expenses included in net margins: Depreciation and amortization 3,028,594 2,881,803 G & T and other capital credits (784,973) (742,752) Provision for losses on accounts receivable 69,800 50,055 Loss (gain) on disposal of plant 1,805 (21,795) Decrease (increase) in: Accounts receivable and unbilled 158,662 electric revenue (106,583) Temporary Investments Other current assets 130,547 (113,162) Deferred debits/credits (628,136) 11,142 Increase (decrease) in: Accounts payable (423,982) 33,142 Other current liabilities

192,580 (230,291)

115,576 — Deferred credits Cash flows provided by operating activities 4,485,980 4,947,930 Cash flows from investing activities: Construction and acquisition of plant (5,760,092) (5,135,973) Plant removal costs (383,114) (291,556) Materials salvaged from retirements 54,269 33,584 Increase in materials and supplies 49,314 118,803 Proceeds from disposal of plant 12,422 64,154 Proceeds from retirement of associated organizations patronage

96,548 106,694 Cash flows used by (5,930,653) (5,104,294) investing activities Cash flows from financing activities: Retirements of patronage capital credits (1,012,292) (660,745) Redemption of — 85,114 capital term certificates Proceeds from long term debt 4,000,000 2,000,000 Payments on long-term debt (2,005,292) (2,031,320) Payments on capital lease obligations (136,551) (116,570) Increase (decrease) in: Membership fees (465) 215 Consumer deposits (18,275) 31,855 Cash flows provided by financing activities

827,125 (691,451) Net change in cash and cash equivalents (617,548) (847,815) Cash and cash equivalents beginning of year 3,772,296 4,620,111 Cash and cash equivalents $ 3,154,748 $ 3,772,296 end of year September & October 2016

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. 17, 2016, at the 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 3, 5 and 6 to serve for a term of three years. The following members have been nominated, pursuant to the Bylaws of the Cooperative, as candidates for Trustee of the districts indicated: District No. 3........... No Nominee* District No. 5........... Catherine Bethea District No. 6........... Lonnie Griffin District No. 6........... Gary Fulford *A candidate was nominated but due to not having a sufficient number of members present to make a quorum, no official business was conducted during the district meeting.

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 29th day of August 2016.

Catherine Bethea, Secretary, Tri-County Electric Cooperative, Inc. 11

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DISTRICT 2 BOBBY DODD

TAYLOR COUNTY

DISTRICT 3 NEAL BROWN

MADISON COUNTY

DISTRICT 4 GEORGE WEBB

MADISON COUNTY

DISTRICT 5 CATHERINE BETHEA

TAYLOR COUNTY

DISTRICT 6 GARY FULFORD - VICE PRESIDENT

JEFFERSON COUNTY

DISTRICT 7 ALBERT THOMAS, JR - SECRETARY - TREASURER

JEFFERSON COUNTY

DISTRICT 8 MALCOLM PAGE - PRESIDENT

TAYLOR COUNTY

DISTRICT 9 ELMER COKER

TAYLOR COUNTY

Taylor County is the Co-op’s second largest service area. It covers 923 miles of energized line and has 6,910 energized meters.

12,616 Members

938 kWh June average residential use

CROSS CITY

MADISON COUNTY

DISTRICT 1 JUNIOR SMITH

Madison County is the Co-op’s largest service area. It covers 1,330 miles of energized line and has 6,894 energized meters.

STEINHATCHEE

DISTRICT MAP

Jefferson County service area is 680 miles of energized line and has 3,480 energized meters.

Dixie County covers 111 miles of energized line and has 585 energized meters.

$144 June average residential cost

1,237 June total online payments

September & October 2016

The Madison County Boys Choir is this Year’s Annual Meeting Entertainment!

Young men from across Madison County contribute their voices to the choir, with a musical focus on contemporary gospel. These young men are no stranger to the stage. The group has performances three to four times a month, traveling from Miami to North Carolina, and then back home to Madison. The choir is directed by Daniel Graham and Desmond Roberson. Mark your calendars for the TCEC Annual Meeting, Sept. 17, 2016. The Madison County Boys Choir takes the stage at 9 a.m.

Cinnamon Pecan Coffee Cake Ingredients Pecan Streusel: ½ c firmly packed brown sugar ½ c all purpose flour 1 tsp ground cinnamon ¼ c butter ¾ c chopped pecans Cake Batter: 1 c finely chopped pecans 1 c butter, softened 2½ c granulated sugar 6 lg. eggs 3 c all purpose flour ¼ tsp baking soda 1 8 oz container sour cream 2 tsp vanilla extract ¼ c firmly packed brown sugar 1½ tsp ground cinnamon Directions Preheat oven to 325 degrees.

Prepare Pecan Streusel: 1. Combine first 3 ingredients in a bowl.

2. Cut in butter with pastry blender (or fork) until mixture resembles small peas.

3. Stir in ¾ c pecans and set aside.

Prepare Cake Batter: 1. Beat butter at medium speed

September & October 2016

until creamy.

2. Gradually add granulated sugar, beating until light and fluffy.

3. Add eggs 1 at a time until just blended after each addition.

4. Stir together flour and baking soda.

5. Add to mixture alternately with sour cream beginning and ending with flour mixture.

6. Beat at low speed until just blended after each addition.

7. Stir in vanilla.

8. Pour half of batter into a

greased and floured 10" tube pan.

9. Combine pecans, brown sugar and cinnamon and sprinkle over top of batter.

10. Pour remaining batter over top.

11. Sprinkle pecan streusel over top of batter.

Bake 80–90 mins. or until toothpick inserted into center comes out clean. Cool in pan on wire rack 10–15 minutes. Remove from pan to wire rack and let cool completely.

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Think Mosquito Control It only takes a bottle cap of water for some mosquitoes to breed and multiply, so all Florida residents and visitors are asked to “Drain and Cover” to help keep our families and neighbors safe. Eliminate sources of standing water which can rapidly become mosquito breeding sites. Always protect against mosquito bites in and around homes and community.

To protect against mosquitoes, the Florida Department of Health urges the public to take the following steps.

ELIMINATE breeding sites and DRAIN standing water.

• Drain water from garbage cans, buckets, pool covers, coolers, toys, flowerpots or any other containers where sprinkler or rainwater has

collected.

• Discard old tires, drums, bottles, cans, pots and pans, broken appliances and other items that aren’t being used.

• Empty and clean birdbaths and pet’s water bowls at least once or twice a week.

• Protect boats and vehicles from rain with tarps that don’t accumulate water.

• Maintain swimming pools in good condition and appropriately chlorinated. Empty plastic swimming pools when not in use.

COVER your skin.

• Clothing - If you must be outside when mosquitoes are active, cover up. Wear shoes, socks, long pants and long sleeves.

• Repellent - Apply mosquito repellent

to bare skin and clothing. Always use repellents according to the label. Repellents with 10-30 percent DEET, picaridin, oil of lemon eucalyptus, and IR3535 are effective.

• Use mosquito netting to protect children younger than 2 months old.

COVER doors and windows with screens.

• Repair broken screening on windows, doors, porches and patios.

For more information, contact your local county health department.

Jefferson: (850) 342-0170 Madison: (850) 973-5000 Taylor: (850) 584-5087 Dixie: (352) 498-1360

Stop mosquitoes from breeding Mosquitoes breed by laying eggs in & near standing water.

EGGS

PUPA LARVA

As little as one teaspoon or bottle cap of water standing for more than one week is enough for mosquitoes to breed and multiply.

At your house or business:

Put away items that are outside and not being used because they could hold standing water.

In your garden:

Keep flower pots and saucers free of standing water. Some plants, such as bromeliads, hold water in their leaves—flush out water-holding plants with your hose once a week.

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www.cdc.gov/features/StopMosquitoes

Around all buildings:

At least once a week, empty, turn over or cover anything that could hold water: tires buckets toys pools & pool covers birdbaths trash, trash containers and recycling bins boat or car covers roof gutters coolers pet dishes

September & October 2016

Do you know you can save energy every day in your home? By turning off appliances that are not in use, you have the power to save energy! For example, while the sun is shining, windows can allow sunlight into your house without having to turn on a lamp or a light switch.

FLIPPING THE SWITCH

WORD SCRAMBLE

Unscramble the letters to reveal the names of common appliances and electronics that you should turn off when not in use. Use the pictures below for clues.

Did you know you can save energy every day in your home by turning off appliances that are not in use? Unscramble the letters to APPLIANCES: reveal the names of common appliances and electronics that you should turn off when not in use. Use the pictures below for clues.

1. GLEICIN NAF 2. HTATOSMERT 3. HGTIL HCTWIS 4. ONSILEETVI 5. EWROP PRTIS 6. MGAE NOESCLO Answer Key: 1. CEILING FAN 2. THERMOSTAT 3. LIGHT SWITCH 4. TELEVISION 5. POWER STRIP 6. GAME CONSOLE

Vol. XX No. I September & October 2016 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, Fla.

Consider insulating your water heater tank, which could reduce standby heat losses by 25 to 45 percent and save you about 4 to 9 percent in water heating costs. You can find pre‑cut jackets or blankets available from around $20.

5. POWER STRIP 6. GAME CONSOLE

Tri-County Rural Living

Answer Key: 1. CEILING FAN 2. THERMOSTAT 3. LIGHT SWITCH 4. TELEVISION

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

EDITORIAL OFFICES 2862 West US Hwy. 90 Madison, FL • (850) 973-2285 PUBLICATION COMMITTEE Julius Hackett CEO Eileen Herndon Executive Assistant Kaitlynn Culpepper Community Relations Specialist Michael Curtis, Madison Media Group Writer STAFF Jeff Brewer Manager – Engineering Stephanie Carroll Manager – Corporate Services Darrell Tuten Manager – Operations Wendell M. Williams Manager – Finance

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

September & October 2016

Source: energy.gov

To Report Electrical Problems or Outages Please Call:

850-973-2285 or 1-800-999-2285 24-HOUR SERVICE THANK YOU

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Your co-op thinks mosquito control TCEC Crew Leader Ellis Anderson, TCEC Apprentice Lineman Bailey Stewart, TCEC Journeyman Lineman Josh Thomas and TCEC Lineman Chad Mitchell.

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