TCEC Annual Report 2026
Annual
Meeting Saturday, September 19, 2026
8:00 AM - Drive-Thru Registration 10:00 AM - In-Person Business Meeting
Madison County High School
Members receive a $20 bill credit & gift at registration. Register with your Quick Registration Card for a chance to win 1 of 40 Door Prizes, including a 2011 Ford F-150.
Member information booths, bingo, and more chances to win a door prize for those who attend the business meeting in person.
Tune in virtually on www.tcec.com/annualmeeting & TCEC Facebook page. 2 | 2026 ANNUAL REPORT
A Note From Our CEO and Board President Our Members: The Heart of Our Cooperative At the heart of every electric cooperative are the people we serve—our members. Your support, trust, and commitment are what make Tri-County Electric Cooperative strong, and we are grateful for the opportunity to serve you and our communities each day. During 2025 and into 2026, our cooperative has continued the important work of rebuilding and strengthening our electric system following Hurricane Helene. Our crews and employees have worked diligently to make permanent repairs and restore our infrastructure to the level of reliability our members deserve. Although this work can take time and progress may not always be visible, each repair is prioritized based on need and completed as resources allow. Step by step, we are making lasting improvements that will benefit our members for years to come. One of the highlights this year is seeing our new Perry District Office nearing completion. This longawaited project is an exciting step forward for our cooperative, and we are thankful to our Board of Trustees for giving us the opportunity to make it a reality. FEMA has also been instrumental in helping fund the rebuilding of the Perry District Office. Through our close work with FEMA, we received approval to proceed early this year, and construction began shortly thereafter. The new facility will provide a better environment for
Julius Hackett, CEO & Bobby Dodd, Board President
our employees, improve our ability to support the work of the cooperative, and reflect our commitment to investing in the future. It is a tangible reminder that while we continue addressing the challenges of the past, we are also building for tomorrow. At the center of everything we do are our members. Your support, trust and partnership are what make Tri-County Electric Cooperative strong and allow us to continue moving forward, even in the face of challenges. From rebuilding our system after Hurricane Helene to investing in facilities that will serve our cooperative for years to come, every decision we make is guided by our commitment to you and the communities we serve. Thank you for being an important part of our cooperative family. We are proud to serve you today and look forward to building a stronger, more reliable future together. 2026 ANNUAL REPORT | 3
BOARD OF TRUSTEES
Annual Growth
Bringing Your Account to Your Fingertips Over the years, TCEC has prioritized making life easier for our members and communities. Making a way for members to manage their account anywhere, anytime and reporting outages easily is one of our top priorities.
BILLED METERS
Bobby Dodd President
2014
2015
2016
17,716
17,830
17,932
2017
2018
2019
18,212
18,391
18,659
We offer many ways for members to do just that.
District 2
2020
2021
2022
19,081
19,493
19,918
2023
2024
2025
20,118
19,951
19,975
Ways to Report and Track a Power Outage Call 24/7 to 850.973.2285 Text OUT to 800.999.2285
As a cooperative, we are 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 margins for co-op programs, initiatives, capital investments, and supporting other activities approved by the Board of Trustees.
Donnie Waldrep Vice President District 3
Online at www.tcec.com Via the SmartHub Mobile App
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.
George Webb
On the TCEC outage map at outage.tcec.com
Managing Your Account
Secretary/Treasurer
District 4
DISTRIBUTED CAPITAL CREDITS TO THE MEMBERSHIP
Via Phone 800.999.2285 or 850.973.2285
Pay Stations Junior Smith
2014 – 2016
District 1
Pay with cash at any Vanilla Direct payment retailer (Dollar General, Family Dollar, CVS, or Walgreens locations). $1.50 service fee applies.
2017 – 2019
2014 2015
$850,319.80 $1,011,577.39
2017 2018
$971,000.85 $935,156.98
2016
$1,196,591.80
2019
$1,203,254.98
Direct Mail 2862 West US 90 – Madison, FL 32340
Online
Ann Herring
www.tcec.com or on the SmartHub mobile app
District 6
2020 – 2022
2023 – 2025
• •
Benjamin White
2020 2021
$1,224,472.20 $1,210,220.93
2023 2024
$546,516 $542,571
2022
$721,396
2025
$461,316
District 7
TOTAL UTILITY PLANT $92,846,455
$97,119,357
$103,348,638
$108,702,966
$110,497,617
$114,151,499
• • • •
Johnny Edwards District 8
2014
2015
2016
2017
2018
$118,406,248
$122,940,864
$134,395,765
$206,178,291
$293,585,407
2019
$308,908,553
John Cruce District 9
2020
4 | 2026 ANNUAL REPORT
2021
2022
2023
2024
2025
Sign up for SmartHub to manage your account, anytime, anywhere Make monthly payments or enroll in AutoPay Track your monthly, daily and hourly usage Report an outage or sign up to receive outage notifications Address and phone number changes SmartHub makes updates easy Save time, money and trees by signing up for paperless!
In-Person At any of our four office locations: Madison Office
Monticello Office
2862 W US 90 Madison, FL 32340
700 South Jefferson St. Monticello, FL 32344
Steinhatchee Office
Perry Office - TEMPORARY LOCATION 3498-4 South US 19 (Byron Butler Parkway) Perry, FL 32348
14-15th St. SE Steinhatchee, FL 32359
2026 ANNUAL REPORT | 5
TRI-COUNTY ELECTRIC COOPERATIVE 85TH ANNUAL MEETING MINUTES - SEPTEMBER 20, 2025
OFFICIAL NOTICE OF ANNUAL MEETING The Annual Meeting of the members of Tri-County Electric Cooperative, Inc. will be held on Saturday, September 19, 2026, at the Madison County High School Gymnasium located on the campus of the Madison County High School, 2649 US 90, Madison, Florida. Drive-Thru registration will take place from 8:00 A.M. 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:
I.
Any business listed in Section 8 of ARTICLE III of the By-Laws of Tri-County Electric Cooperative, Inc. The following members were declared Trustee-Elect, having been
II. unopposed candidates for their respective districts, and will be seated at the Annual Meeting to serve a three-year term:
District No. 7.........................Benjamin White District No. 8.........................Johnny Edwards District No. 9…………………John Cruce III.
Several prizes including a grand prize of a 2011 Ford F-150 will be given away on Saturday following the business meeting.
Any member who registers with the quick registration card at the Annual Meeting will be included in the drawing for prizes. The Member must be present to win the grand prize. The drawing for prizes will stream live on the Cooperative’s webpage: www.tcec.com/annual-meeting and TCEC Facebook page: Facebook. com:TriCountyElectricFlorida. Members are encouraged to register and attend or tune into the Annual Meeting of the Cooperative. THIS OFFICIAL NOTICE OF ANNUAL MEETING DATED this 4th day of September 2026. George Webb, Secretary Tri-County Electric Cooperative, Inc. 2026 ANNUAL ANNUAL REPORT 66 || 2026
The 85th Annual Meeting District 8 - Johnny Edwards of the members of District 9 - John Cruce Tri-County Electric Cooperative, Inc. was held He then introduced the on Saturday, September Cooperative CEO, Julius 20, 2025, in the Madison Hackett, and Cooperative County High School Attorney, Dylan Rivers, Gymnasium, Madison, from the firm Ausley and Florida. Drive-through McMullen in Tallahassee, registration lliw .began cnI ,eatvi8:00 tarepooC cirtcelE ytnuoC-irT fo srebmem eht fo Florida. gniteeM launnA ehT A.M., and the business l o o h c S h g i H y t n u o C n o s i d a M e h t t a , 6 2 0 2 , 9 1 r e b m e t p e S , y athat drutime taSMr. noDodd dleh eb At meeting started at 10:00 turned SU 9462 ,loohcS hgiH ytnuoC nosidaM eht fo supmac eht no d etacthe olprogram muisanmyG A.M. over to Mr. Hackett, 3:9A.M., litnu .M .A 00:8 morf ecalp ekat lliw noitartsiger urhT-evirD .who adiwelcomed rolF ,nosthe idaM ,09 By 0 9:45 574 members had registered. .tfAt ig noitartsiger dna tiderc llib 02$ a eviecer lliw srebmmembers em deand retsnoted igeR .M.A 10:00 A.M., the meeting his appreciation for was called their Mr. ecalto p order ekatbylliw gniteeM launnA eht fo noitrop ssenisub eht .M .Aattendance. 00:01 ta g nitratS President Bobby Dodd, Hackett remarked on e v i l m a e r t s l l i w g n i t e e m e h T . m u i s a n m y G l o o h c S h g i H y t n u o C n o s i d a M e h t who introduced Mr. the challenges the edisni Reggie Daniels, during CECTthedna gniteem-launna/moc.cect.www :egapbew s’cooperative evitarepofaced oC e ht no Cooperative’s Purchasing the past year a result of . a d i r o l F c i r t c e l E y t n u o C i r T / m o c . k o o b e c a F : e g a p k o o b ecaF Agent. Mr. Daniels Hurricane Helene, which delivered the invocation, days after the launnA siht ta deredisnoc dna erofeb thguorb eb lliw srstruck ettajust mg niwollof ehT asking for guidance and 2024 Annual Meeting. :gniteeM blessings upon each He noted the difficulties person who makes up the associated with recovering cooperative. from y t n u o C i r T f o s w a L y B e h t f o I I I E L C I T R A f o 8 n o i t c e S n i d e t s i l ssethree nisuhurricanes b ynA Mr. Dodd welcomed and tornadoes over a .cnI ,evitaretwo-year pooC c irtcewhich lE everyone in attendance period, and thanked the members resulted in more than $130 neeb gnivah ,tcelE-eetsurT deralced erew srebmemmillion gniwinodamages llof ehTto for their participation and engagement cooperative’s power ta detaewith s eb lliw dna ,stcirtsid evitcepser rieht rof setadidnathe cd esopponu the cooperative. He and fiber networks. He :mret raey-eerht a evres ot gniteeadvised M lauthat nnA ehthan t then discussed the more day’s agenda, which 1,900 personnel worked included a proposed on-site to restore power to bylaw amendment that members within nine days. he described as a way He described the effort as to improve how disputes herculean and credited are handled, making the the cooperative’s process easier and less employees for their expensive for everyone dedication and critical involved. He remarked, role in restoring service. “We believe this is a smart Mr. Hackett stated that move for the good of all he was grateful the our members the nevand ig e b lliw 051-F droF 1102 a fo ezirp dnarg a gnidulcnicooperative sezirp larwas eve S eligible co-op as a whole. It aligns . g n i t e e m s s e n i s u b e h t g n i w o l l o f y a d r u t a S n o y a w a to receive assistance from with our goal of keeping the Federal Emergency things fair, accessible, and gniteeM launnA eht ta drac noitartsiger kciuq eht htiw sretsigManagement er ohw rebAgency mem ynA member-focused, just like eht niw t tneserp eb tsum rebmeM ehT .sezirp rof gniward e(FEMA) ht ni dand edthe ulcFlorida ni eb lliw everything weodo.” Division of Emergency .e(FDEM) zirp dfor narg Mr. Dodd then proceeded Management to introduce the Board costs incurred in making :egapbew s’evitarepooC eht no evil maerts lliw se zirp rofsystem gniwrepairs. ard ehT of Trustees, Cooperative necessary CEO and Attorney date, .koinobecaF :egap koobecaF CECT dna gniteem-lauHe nnadded a/mothat, c.cto ec t.www attendance: $25 million .adirolFcapproximately ihas rtcbeen elEyreimbursed tnuo CirTto :mthe oc District 1 - Junior Smith, cooperative by FEMA and gDistrict nitee M launnA eht otni enut ro dnetta dna retsiger ot degarFDEM. uocnHowever, e era she renoted bmeM 3 - Donnie .evthe itareimbursement repooC eht fo Waldrep, that process was slow and complex, involving multiple layers District 4 - George Webb, of administrative review before eligible funds could be recovered. He expressed the hope shared by electric District 5 – Catherine Bethea, rebmetpeS fo yad ht4 siht DETAD GN ITEEM LAacross UNNA O ECthat ITOproposed N LAICIFEMA FFO SIHT cooperatives theFnation District 6 - Ann Herring, reforms would help expedite the delivery of much- .6202 needed disaster assistance. District 7 - Benjamin White,
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Next, Mr. Hackett discussed ongoing projects benefiting the membership, including the completion of the cooperative’s fiber network build in late 2024. He encouraged members who had not yet subscribed to the fiber service to consider purchasing their internet service from the cooperative and keeping their dollars local. In closing, Mr. Hackett thanked the membership for its support and trust. He stated, “That although the cooperative had faced some of its most challenging times, it emerged stronger, wiser, and better prepared for future events.” He concluded by saying, “The best days for Tri-County Electric and its members were still ahead.” At this time, 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 had been established as of 9:45 A.M., allowing the transaction of business to proceed. Mr. Rivers announced the Official Notice of the Annual Meeting had been mailed to each member during September 2025 and published in local newspapers throughout Dixie, Jefferson, Madison, and Taylor Counties. He asked whether any members objected to the form or timing of the notice. There being no objections, the reading of the notice was waived upon motion duly made, seconded, and carried. Mr. Rivers then moved to the reading of the Minutes of the September 21, 2024, Annual Meeting. He announced the minutes had been published in the September 2025 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.
Annual Report. The 2024 Financial Report, prepared by Nichols, Cauley, and Associates, an independent firm of certified public accountants, reported no instances of non-compliance or other issues requiring disclosures under Government Auditing Standards. The year ended with net margins from operations of $4.1 million, revenues of $56.2 million, and operating expenses of $46.9 million. The cooperative experienced a slight decline in energized meters, which was attributed to homes damaged by Hurricane Helene. The year concluded with 19,951 energized meters and $90.5 million invested in the utility plant and fiber network assets. The Board of Trustees voted to return $541,271 in capital credits during the year, returning those funds to the membership. Mr. Rivers then announced the election of trustees during the July District Meetings for threeyear terms in Districts 3, 5, and 6. The elected trustees were as follows: District 3: Mr. Donnie Waldrep, reelected at Concord Baptist Church, Greenville, Florida. District 5: Mrs. Catherine Bethea, re-elected at St. John’s Christian Church, Perry, Florida. District 6: Ms. Ann Herring, re-elected at Mt. Pleasant AME Church, Monticello, Florida. Mr. Rivers then opened the floor for unfinished business. There being none, he opened the follow for new business. Mr. Rivers then advised the members of the Cooperative present that the Board of Trustees of the Cooperative had duly proposed an amendment to the bylaws with the addition of ARTICLE IX. ALTERNATIVE DISPUTE RESOLUTION. Mr. Rivers then opened the floor for debate from the membership on proposed addition of ARTICLE IX. ALTERNATIVE DISPUTE RESOLUTION. Hearing none, the ballots were tallied, the proposed bylaw amendment was adopted by a vote of 446 to 128. With the passage of this amendment, the addition of ARTICLE IX. ALTERNATIVE DISPUTE RESOLUTION to the Bylaws of Tri-County Electric Cooperative, Inc. reads as follows:
ARTICLE IX
Alternative 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, any/or any controversy or claim arising out of or relating to patronage capital and/or 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 attorney’s fees and costs, and each party agrees to share equally in the cost of the arbitrator. The parties also agree to waive any right to: (I) pursue a class action arbitration and/or seek a remedy on behalf of any other member or person, or (II) have an arbitration under this agreement consolidated with any other arbitration or proceeding. The parties agree that any dispute to arbitrate must be brought in an individual capacity, and not as a plaintiff or class member in any purported class or representative capacity. If any part of this arbitration clause, other than waivers of class action rights, is found to be unenforceable for any reason, the remaining provisions shall remain enforceable. If a waiver of class action and consolidation rights is found unenforceable in any action in which class action remedies have been sought, this entire arbitration clause shall be deemed unenforceable. It is the intention and agreement of the parties not to arbitrate class actions or to have consolidated arbitration proceedings. Should the parties have a dispute that is within the jurisdiction of the Small Claims Courts of the County Courts of the State of Florida, such dispute may be resolved at the election of either party in Small Claims Court rather than through arbitration and the Cooperative and member agree that in Small Claims Court, other members may not be joined as a party (other than a joint member) nor can relief be sought on behalf of any other member. Any member may reject this agreement to arbitrate by sending to the Cooperative at 2862 West US 90, Madison, Florida 32340, a notice (“Rejection Notice”) within sixty (60) calendar days of the date of the Annual Meeting where this arbitration agreement was added to the Bylaws or within fourteen (14) calendar days of applying for service with the Cooperative as a new member, whichever date is longer. Rejection Notice must include your full name, your current address, your current telephone number, and the account number, and be signed by you. The Rejection Notice must be mailed with return receipt requested to: Rejection Notice Department. In the event of any dispute concerning whether a member has provided a timely notice of rejection, the member must produce the signed receipt for mailing the Rejection Notice. In the absence of the signed receipt, the Cooperative’s received date stamp on the Rejection Notice shall be conclusive evidence of the date of receipt. These instructions constitute the only method that a member can use to exercise the right to reject this arbitration provision. Condition precedent to filing an arbitration action: No member may pursue an action in arbitration, and no member who has opted out of Article XI may file a lawsuit of any kind, with respect to member equity or the allocation or retirement of capital credits, or file any claim for payment of any amounts allegedly due to a member from the Cooperative, until the member has first provided written notice to the Board of Trustees at least fifteen (15) calendar days in advance of the next scheduled regular monthly Board Meeting to provide the Board of Trustees with a reasonable time to investigate and respond to the matter in hopes that any issues can be resolved without the need for formal proceedings. If the arbitration clause is deemed unenforceable or the parties otherwise litigate a dispute in court, the parties agree to waive any right to a trial by jury in any proceeding brought in court.
There being no further new business, the 85th Annual Meeting of the Members of Tri-County Electric Cooperative, Inc. was adjourned at 10:26 A.M. on Saturday, September 20, 2025. A drawing for prizes followed.
Next, Mr. George Webb, Secretary-Treasurer of the Board of Trustees, presented the Treasurer’s Report. He reminded members that the financial statements were printed in the September 2025 Tri-County Rural Living
8 | 2026 ANNUAL REPORT
2026 ANNUAL REPORT | 9
CELEBRATING A LEGACY OF SERVICE After 18 years of dedicated service, we extend our sincere appreciation to Catherine Bethea, District 5 Trustee, who recently retired from our Board. Mrs. Bethea was elected to the Board in 2008 and served in numerous leadership roles throughout her tenure. From 2015 through 2022, she was a member of the Board’s Executive Committee, serving as secretary/treasurer Catherine Bethea while also chairing the Finance Committee. In addition to her service on TCEC’s Board, she represented our cooperative on the Florida Electric Cooperatives Association Board of directors. A lifelong resident of Taylor County, Mrs. Bethea has always demonstrated a strong commitment to her community and to the co-op’s members. During her years on the Board, she earned several accreditations through the National Rural Electric Cooperative Association (NRECA), which reflected her commitment to continually expanding her knowledge of the electric cooperative industry. For many years she could be counted on to actively participate in cooperative activities and advocacy efforts. Several times her service took her to Capitol Hill in Washington, D.C. where she met with members of Congress and other officials to discuss legislative issues affecting electric cooperatives and the members we serve. We are grateful for Mrs. Bethea’s 18 years of leadership, dedication and service. Her commitment to TCEC and our members has made a lasting difference, and we wish her all the best in this next chapter.
10 | 2026 ANNUAL REPORT
2025 FINANCIAL REPORTS
As we look back on 2025, we’re pleased to share a few key financial highlights with you. Your Board of Trustees is committed to being good stewards of our cooperative’s resources and keeping our members informed about our financial health and progress. Our 2025 financial statements were audited by Nichols Cauley and Associates, a firm of independent certified public accountants. Their full report can be found on pages 12-15 of this Annual Report. Tri-County Electric Cooperative ended the year with a net margin of $2.0 million. Total revenues for the year were $61.3 million, with operating expenses of $49.7 million. By the end of 2025, we had 19,975 energized meters. We also continued investing in the future of our co-op, putting $26.6 million into our utility plant system in 2025. These investments help us maintain safe, reliable, and dependable service to our members in the years ahead. Reflecting on our strong financial position, your Board of Trustees approved the retirement of $461,316 in capital credits, with those funds being returned directly to our members.
We’re proud of the progress we made in 2025 and remain committed to making smart, future-focused investments while keeping costs in check. Most importantly, we will continue to make responsible financial decisions with the best interests of our members in mind. We appreciate your ongoing involvement in your cooperative and look forward to keeping your informed as we move ahead.
Mrs. Bethea and other Electric Cooperative representatives meeting with Senator Rick Scott in Washington, D.C. In the spring of 2019.
2026 ANNUAL ANNUAL REPORT REPORT || 11 11
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. 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, 2025 and 2024, 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. of Trustees In Board our opinion, the financial statements referred to above present fairly, in all Tri-County Electric Cooperative, Inc. material respects, the financial position of Tri-County Electric Cooperative, Inc. as Madison, Florida 32340 of December 31, 2025 and 2024, and the results of its operations and its cash flows forReport the years thenofended in accordance with accounting principles generally on the Audit the Financial Statements accepted in the United States of America.
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 concern for a reasonable period of time.
Opinion
Basis for Opinion Weconducted have audited the accompanying financial statements of Tri-County Electricstandards Cooperative, Inc., which We our audits in accordance with the auditing generally comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of revenues, accepted in the United States of America (GAAS) and the standards applicable in equities, and cash flows for the years then ended, and the related notes to the financial tochanges financial audits contained in Government Auditing Standards (GAS) issued statements. by the Comptroller General of the United States. Our responsibilities under those standards arethe further described the Auditor’s Responsibilities for the Auditthe of the In our opinion, financial statements in referred to above present fairly, in all material respects, Financial Statements section of our report. We are required to be independent financial position of Tri-County Electric Cooperative, Inc. as of December 31, 2024 and 2023, and the of results of itsElectric operations and its cash flows forand the years then ended in accordance accounting Tri-County Cooperative, Inc. to meet our other ethicalwith responsibilities, generallywith accepted the United ethical States of America. in principles accordance theinrelevant requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate for Opinion toBasis provide a basis for our audit opinion. We conducted ourofaudits in accordance for withthe the Financial auditing standards generally accepted in the United Responsiblities Management Statements
States of America (GAAS) and the standards applicable to financial audits contained in Government
Management is responsible preparation and fair presentation of the Auditing Standards (GAS) issued by for the the Comptroller General of the United States. Our responsibilities financial statements accordance with accounting principles generally under those standards arein further described in the Auditor’s Responsibilities for the Audit of the Financial accepted in theofUnited States ofrequired America, and for the design, Electric implementation, Statements section our report. We are to be independent of Tri-County Cooperative, Inc. maintenance and to meet our other ethical responsibilities, in accordance withpreparation the relevant ethical requirements and of internal control relevant to the and fair relating to our audits. We believe that the audit that evidence havefrom obtained is sufficient and appropriate presentation of financial statements arewefree material misstatement, to providedue a basis our audit whether toforfraud or opinion. error. In Responsibilities preparing the financial statements, is required to evaluate of Management for the Financialmanagement Statements whether there are conditions or events, considered in the aggregate, that raise Managementdoubt is responsible the preparation and fair presentation of Inc.’s the financial statements in substantial aboutforTri-County Electric Cooperative, ability to continue accordance with accounting principles generally accepted in the United States of America, and for the as a going concern for one year after the date that the financial statements are design, implementation, and maintenance of internal control relevant to the preparation and fair available to be issued. presentation of financial statements that are free from material misstatement, whether due to fraud or
error. 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 12 | 2026 ANNUAL REPORT
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 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 9, 2025, on our consideration of issued the Tri-County Electric In accordance with Government Auditing Standards, we have also our report dated May 15, 2024, Cooperative, Inc.’s internal control over financialInc.’s reporting and on our of our consideration of the Tri-County Electric Cooperative, internal control overtests financial its provisions laws,provisions regulations, contracts, and grant and andcompliance on our testswith of certain its compliance with of certain of laws, regulations, contracts, agreements other matters. The purpose of that to describe agreements andand other matters. The purpose of that report is toreport describeis the scope of ourthe testing of scope of our testing of internal over reporting and compliance control over financial reporting and control compliance andfinancial the results of that testing, and not to provide and theonresults of control that testing, and not to provide opinion on opinion internal over financial reporting or onan compliance. Thatinternal report iscontrol an integral over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Trian audit performed in accordance with Government Auditing Standards in Cooperative, Inc.’s internal control over financial reporting and compliance. considering Tri-County Electric Cooperative, Inc.’s internal control over financial reporting and compliance.
Nichols, Cauley & Associates, LLC Warner Robins, Robins, Georgia Warner Georgia April 24, 2024 2026 May 15, 2026 ANNUAL REPORT | 13
December 31, 2025 and 2024 - Balance Sheets ASSETS
December 31, 2025 and 2024 - Statements of Changes in Equities
2025
2024
$215,325,823 89,362,033 304,687,856
$186,886,664 106,698,744 293,585,408
50,822,285 253,865,571
45,724,847 247,860,561
16,562,313
15,220,577
3,407,997
2,746,002
2,570,448 14,253,954 431,708 2,383,518 4,699,420 58,137 27,805,182
2,620,898 373,952 1,950,000 2,329,917 43,371 10,064,140
289,134
319,420
$298,522,200
$273,464,698
$71,280 45,514,817 3,523,234 49,109,331
$71,010 43,832,201 3,267,424 47,170,635
LONG-TERM DEBT AND OTHER NONCURRENT LIABILITIES Mortgages (less debt issuance costs of $97,007 in 2025 and $181,208 in 2024) Financial leases Lines of credit Total long-term debt and other noncurrent liabilities
99,319,715 461,417 71,750,000 171,531,132
102,820,534 750,545
CURRENT LIABILITIES Current maturities of long-term debt Lines-of-credit Accounts payable Consumer deposits Other Total current liabilities
3,956,463 66,564,003 3,755,886 1,218,412 2,385,475 77,880,239
3,860,640 53,960,214 60,707,158 1,215,367 2,228,107 121,971,486
1,498
751,498
$298,522,200
$273,464,698
UTILITY PLANT Utility plant in service Construction work in progress Less - accumulated provisions for depreciation and amortization Total utility plant
CURRENT ASSETS Cash and cash equivalents Accounts receivable (less allowance for credit losses of $122,655 in 2025 and $149,812 in 2024) FEMA receivable Other receivables Accrued utility revenue Materials and supplies Other Total current assets DEFERRED CHARGES TOTAL ASSETS
EQUITIES AND LIABILITIES
DEFERRED CREDITS TOTAL EQUITIES AND LIABILITIES
103,571,079
December 31, 2025 and 2024 - Statements of Revenues OPERATING REVENUES
$61,738,745
$56,242,927
OPERATING EXPENSES Cost of power Transmission Distribution operations Distribution maintenance Consumer accounts General and administrative Depreciation and amortization Total operating expenses
28,160,175 42,316 4,078,785 5,116,152 2,255,919 4,181,882 5,916,504 49,751,733
27,086,525 37,442 3,908,367 4,502,633 1,993,153 3,667,325 5,703,504 46,898,949
OPERATING MARGINS BEFORE INTEREST EXPENSE INTEREST EXPENSE OPERATING MARGINS (LOSS) AFTER INTEREST EXPENSE G & T AND OTHER CAPITAL CREDITS NON-OPERATING MARGINS
11,987,012 12,631,048 (644,036) 2,137,899 909,560
9,343,978 8,246,118 1,097,860 2,328,994 671,009
NET MARGINS
$2,403,423
$4,097,863
14 | 2026 ANNUAL REPORT
Patronage Capital
Other
Total
72,135
40,458,420
2,948,370
43,478,925
(1,125) -
4,097,863 (724,082)
319,054
(1,125) 4,097,863 (405,028)
$71,010
$43,832,201
$3,267,424
$47,170,635
270 -
2,403,423 (720,807)
255,810
270 2,403,423 (464,997)
$71,280
$45,514,817
$3,523,234
$49,109,331
BALANCE AT DECEMBER 31, 2023 Memberships refunded, net Net margins Retirements of patronage capital BALANCE AT DECEMBER 31, 2024
OTHER LONG-TERM ASSETS AND INVESTMENTS Investments in associated organizations
EQUITIES Memberships Patronage capital Other Total equities
Memberships
Memberships issued, net Net margins Retirements of patronage capital BALANCE AT DECEMBER 31, 2025
December 31, 2025 and 2024 - Statements of Cash Flows 2025
2024
$2,403,423
$4,097,863
5,916,504 415,282 84,201 (180) (2,137,899) -
5,703,504 405,771 58,037 (857) (2,328,994) (12,138)
(382,888) (57,756) (14,766) 30,286
(329,613) (131,610) 62,173 36,715
(56,951,272) 3,045 157,368 (750,000) (51,284,652)
49,710,112 104,945 (2,860) 750,000 58,123,048
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
(26,590,750) (2,369,503) 680,963 (28,279,290)
(90,509,629) 7,349,150 247,037 (10,000) (82,896,442)
CASH FLOWS FROM FINANCING ACTIVITIES Redemption of Capital Term Certificates 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
115,200 (3,434,753) (343,572) 84,353,789 270 (464,997) 80,225,937
20,000,000 (3,305,978) (160,343) (340,949) 8,968,553 (1,125) (405,028) 24,755,130
NET CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR CASH AND CASH EQUIVALENTS - END OF YEAR
661,995 $2,764,002 $3,407,997
(18,264) $2,764,266 $2,764,002
SUPPLEMENTAL SCHEDULE OF NONCASH ACTIVITIES Construction work in process transferred to FEMA receivable Increase in other equities from retirement of patronage capital Utility plant financed by finance lease
$14,253,954 $255,810
$319,054
-
$586,862
CASH FLOWS FROM OPERATING ACTIVITIES Net margins Noncash income and expenses included in net margins: Depreciation Charged to expense Charged to clearing accounts 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
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash payments for interest
$12,642,718
$8,117,345
2026 ANNUAL REPORT | 15
TCEC Staff
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Tri-County Electric Co
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2862 West US 90 Madison, FL 32340
Tri-County Electric Cooperative Rural Living, the voice of your member-owned electric cooperative, is published bimonthly — more if necessary — at no subscription cost to the membership. The publication team is comprised of TCEC employees. Postage is paid at Tallahassee, Fla.
TCEC Staff Jeff Brewer, Vice President of Engineering Eileen Herndon, Vice President of Corporate Services John Tuten, Vice President of Operations Gabby Morgan, Vice President of Finance
Publication Team Eileen Herndon, Vice President of Corporate Services Kaitlynn Culpepper, Community Relations Director
Publisher Joanna Forrester 1-800-999-2285 www.tcec.com