7 0 T H A N N U A L M E E T I N G 2 0 1 4 A N N U A L R E P O R T

7 0 T H A N N U A L M E E T I N G 2 0 1 4 A N N U A L R E P O R T

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As I reflect on 2014, I am proud of what TCEC accomplished. We refreshed our brand, we started on our new facility and we completed several substations. We also reached energy sales of one billion kilowatt-hours. For the third year in a row, we retired millions in patronage capital to our members.

On the legislative front, we led the state in comments submitted to the Environmental Protection Agency regarding its proposed rules for coal-fired power plants. The comment period for the second rule closed December 1. Cooperative members across the nation submitted more than one million comments regarding both rules. Thank you for helping make our voice heard.

We completed the construction of three new substations in 2014 and plan to finish construction on two more in 2015. Today, we have nearly 60 substations serving our members. Building new substations improves safety and reliability for our members. We’re also standardizing the distribution voltages to reduce the inventory we must keep on hand to maintain our system.

In 2015, we will move into our new headquarters on U.S. Highway 54 in Hooker. We will also build a solar array that will sit on six acres just north of the new facility. We know our members are interested in renewable energy and we’re working to make it available to you. Our wholesale power suppliers already have wind energy in the mix. Now we’re adding a solar option that members can be a part of.

In 2014, we reached sales of one billion kilowatt-hours. Although we have many more residential meters than commercial and industrial ones, the largest energy consumers on our system are in the agriculture and oil and gas industries. While we continued to see the demand for power rise in 2014, the pace of our load growth slowed. This was largely due to lower oil prices that reduced the amount of drilling in our service territory.

We strive to be your trusted energy partner. We recently announced plans to construct a one megawatt solar array next to our headquarters in Hooker. Members will have the opportunity to purchase local renewable energy from this array at an affordable rate. If members choose to install their own renewable energy at their home, TCEC does offer net metering where the power you generate offsets your energy costs. The solar array we’re building benefits all our members as a whole because it reduces peak demand needs from our wholesale power suppliers. If you have questions about renewable energy, let us know. We’re looking out for you.

Jack L. PerkinsChief Executive Officer

C E O M E S S A G E T O T H E M E M B E R S

Jack L. Perkins

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TCEC’s promise is outstanding service to its members. This means we shall serve our members with integrity, innovation, accountability and commitment to our com-munities. We cannot fail to do so. Our promise gives us the opportunity to stand out as being exceptional, and we want everyone to know it.

Cooperative VisionWe strive to be a competitive cooperative that creates superior value for our members through the dedicated contribution of our Board of Trustees and employees and the expansion of the cooperative business model. TCEC is a member-owned business committed to delivering safe, reliable, affordable electric service by fulfilling our mis-sion to improve the quality of life for those we serve.

Cooperative Values

• Innovation

• Accountability

• Integrity

• Commitment to Community

C O O P E R AT I V E P R O M I S E

Our mission is to improve the quality of life for our members and the communities we serve.

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C.J. MouserDISTRICT 4

Ronny WhiteDISTRICT 3

Erwin Elms DISTRICT 2

Jimmie L. DraperDISTRICT 1

Larry HodgesDISTRICT 9

Cletus CarterDISTRICT 8

Shawn MartinezDISTRICT 7

Larry DunnDISTRICT 6

Joe MayerDISTRICT 5

B O A R D O F T R U S T E E S

T R U S T E D E N E R G Y P A R T N E RAttend your 2015 annual meeting

You’re invited to TCEC’s annual meeting of the membership. Enjoy a barbecue meal while hear-

ing an update on your electric cooperative. Plus, every member who attends will receive a free gift. Many members in

attendance will win door prizes with one winning a $500 grand prize.

What: Annual Meeting of Members of Tri-County Electric Cooperative

When: Thursday, September 4, 2014 Registration and Meal Begin at 5:30 p.m. Business Meeting Begins at 6 p.m.

Where: Texas County Activity Center 5th Street and Sunset Lane Guymon, Oklahoma

How: No RSVP needed! Bring the registration card below to speed meeting entry.

Questions? Contact TCEC at 580.652.2418 or info@tcec.coop.

See reverse side for agenda and official notice.

O F F I C I A L N O T I C E

Please take notice that on Thursday, September 10, 2015, Tri-County Electric Cooperative, Inc.,

will conduct its Annual Meeting of the Membership at the Texas County Activity Center in Guymon, Oklahoma.

The agenda is as follows:

• Registration & Meal Begin - 5:30 p.m. • Business Meeting Begins – 6:00 p.m.

In accordance with the bylaws, the purposes of this meeting shall be as follows:

• Quorum report

• Read notice of meeting

• Read minutes of previous membership meeting

• Reports

• Introduction of Trustees

• Unfinished business

• New business

• Adjournment

Dated this 18th day of August 2015.

Larry Dunn, Secretary, Board of Trustees

TCEC ANNUAL MEETINGREGISTRATION CARD

Thursday, Sept. 4, 2014Texas County Activity CenterRegistration and Meal Begin at 5:30 p.m.

To help speed the registration process, please BRING THIS CARD WITH YOU TO THE MEETING.

The first person or institution listed on this card is the official voting member for this meeting. If your

account is not in the name of a natural person, please complete the notice of voting delegate on

the reverse.

Det

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N O T I C E O F V O T I N G D E L E G AT E

Tri-County Electric Cooperative, Inc., please take notice that _______________________________,

a member of Tri-County Electric Cooperative, Inc., that is not a natural person, has in accordance with

its rules, regulations, Bylaws and laws of the State of Oklahoma, designated the person named below,

as its representative for voting purposes at the Annual Meeting of the Members to be conducted on

Sept. 4, 2014, at the Texas County Activity Center in Guymon, Oklahoma.

_________________________________________________________Person Designated As Voting Representative

Signed: ________________________________________________________an Officer, or Partner, or Owner

REMEMBER THE BYLAWS DO NOT PROVIDE FOR PROXY VOTING.

Detach here and bring this card w

ith you to the meeting.

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K A N S A SC O L O R A D O

Cimarron County

HansfordCounty

Keyes

Elkhart

Boise City

KerrickPerryton

Felt

Kenton

HoughOptima

Adams

Hardesty

Forgan

Beaver

ElmwoodBryan’s Corner

Balko

TyroneStraight

Hooker

Guymon

Goodwell

Texhoma

2

4

89

56

7

3

Beaver County

Texas County

1Hitchland

O K L A H O M A

T E X A S

NE

W M

EX

ICO

B O A R D D I S T R I C T S

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Members Economic ParticipationAs a member, you have a vested interested in your local electric cooperative. You accrue patronage capital based on your energy use which is later retired to you as a check.

Concern for Community: Cooperation Among CooperativesTCEC sometimes joins with PTCI, another local cooperative, to make charitable contributions to community organizations, like the YMCA.

Concern for Community: Co-op ConnectionsTCEC’s Co-op Connections program offers members discounts at local businesses and on prescriptions at participating pharmacies.

Education, Training and Information

T H E C O O P E R AT I V E D I F F E R E N C E

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Picture cutline info here

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C O N S O L I D AT E D B A L A N C E S H E E T

C O N S O L I D AT E D O P E R AT I N G S TAT E M E N T

2014 2013 Net Utility Plant 223,362,904.00 179,123,120.00 Other Property and Investments 31,805,576.00 36,646,368.00 Current Assets 13,147,822.00 13,847,575.00 Deferred Debits 21,758,388.00 24,205,960.00 Total Assets and Other Debits 290,074,690.00 253,823,023.00 Total Margin and Equities 77,973,689.00 73,912,558.00 Noncurrent Liabilities 172,027,173.00 165,201,550.00 Current and Accrued Liabilities 37,197,604.00 14,278,405.00 Deferred Credits 2,876,224.00 430,510.00 Total Equities and Liabilities 290,074,690.00 253,823,023.00

2014 2013 Operating Revenue 101,504,398.00 98,182,488.00 Total Operating Revenues 101,504,398.00 98,182,488.00 Cost of purchased Power 61,217,663.00 54,309,115.00 Transmission Expense 2,155,766.00 1,344,699.00 Distribution 7,033,780.00 5,819,466.00 Consumer Accounts 1,827,259.00 1,891,946.00 Administrative and General Expense 4,713,224.00 4,224,760.00 Depreciation Expense 7,332,796.00 6,911,562.00 Taxes 3,158,532.00 3,209,055.00 Interest 8,748,165.00 8,799,540.00 Total Operating Expense 96,187,185.00 86,510,143.00 Patronage Capital and Operating Margins 5,317,212.00 11,672,345.00 Non Operating Margins 299,932.00 650,840.00 Other Capital Credits & Patronage Dividends 3,032,048.00 3,514,882.00 Net Margins 8,649,192.00 15,838,067.00

Residential Sales 20%Irrigation Sales 2%Commercial/Industrial Small 16%Commercial/Industrial Large 61%Public Street and Highway Lighting 1%

% of Operating Revenue

Cost of Purchased Power 58%Transmission Expense 2%Distribution - Operation & Maintenance 7%Consumer Accounts and Customer Service and Informational 2%Administrative and General Expense 4%Margin 8%Depreciation 7%Taxes 4%Interest 8%

W H E R E M O N E Y C O M E S F R O M

P AT R O N A G E C A P I TA L R E T I R E D O V E R F I V E Y E A R S

K I L O W AT T- H O U R S S O L D O V E R T E N Y E A R S

W H E R E M O N E Y G O E S

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02010 2011 2012 2013 2014

MIL

LIO

NS

DOLLARS RETIRED

2%

2%

58%8%

7%4%

4%

8%

7%

20%

16%

2%

1%

61%

0

200000000

400000000

600000000

800000000

1000000000

1200000000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

KWH SOLD

Taylor Abel – Apprentice LinemanArmando Alvarez – Manager, EngineeringB. J. Appleton – GroundmanJamie Arnold – DispatcherDonovan Austin – Service TechnicianGary Barnes – Service TechnicianGerald Baugh – Meter TechnicianZak Brouhard – Apprentice LinemanEric Brown – Journeyman ElectricianMike Burge – Construction ForemanTamara Cappellucci – Billing SpecialistClaudia Cardenas – Member Service RepresentativeMandy Chavez – Senior Network AdministratorMarci Cotter – Member Service RepresentativeRay Damron – Service TechnicianTroy Daves – Staking CoordinatorJohn Elston – Line Locate SpecialistAdam Garrison – Journeyman LinemanJared Garrison – Apprentice LinemanDavid Gibler – Field Services SupervisorJeremy Gibson – AMI OperatorChris Giles – Manager, Regulatory Policy and ComplianceJuliAnn Graham – Communications CoordinatorBill Greenfield – Service TechnicianGreg Grounds – System EngineerBuddy Grubbs – Relay ForemanNate Hanan – SCADA TechnicianDan Heil – Engineering AssistantBrent Herald – Journeyman LinemanKeith Herald – Mechanical TechnicianArmando Hernandez – Shop CoordinatorDustin Hill – GroundmanGlenna Hise – Executive Assistant and Human Resources

Louis Hise – Facility ManagerJody Hodges – Accounts Payable SpecialistKevin Hofferber – Accounting AdministratorTravis Holdeman – Manager, Metering and SCADAGina Horner – SCADA TechnicianJosh Hussey – Construction ForemanAmanda Huxman – Member Service SupervisorPaul Kearns – Meter TechnicianAllen Keene – Apprentice LinemanLeslie Kraich – Community and Member Relations CoordinatorEric Leisher – Service TechnicianTrey Long – Service TechnicianRobert Marshall – Mechanical TechnicianJuan Martinez – GroundmanLyle Mathis – Vice President, OperationsRyan Mathis – Apprentice LinemanJulie Maytum – Billing SupervisorDaniel McCann – Mechanical TechnicianNuvia Medina – Member Service RepresentativeBrenda Merkle – Vice President, Information TechnologyDebbie Miracle – Administrative AssistantWade Morrison – Substation ForemanCody Myers – Staking CoordinatorAlan Newman – Service TechnicianJay Nunley – Key Accounts and En ergy Use CoordinatorJeanne Oehlert – Billing SpecialistL.J. Ogden – Service TechnicianDewaine Osborn – Substation Technician ApprenticeKyle Osborn – Apprentice LinemanAndrea Paden – Member Service RepresentativeBill Paden – Construction ForemanRobbie Paden – Service Technician

Bill Pauda – Mapping TechnicianMike Peacock – Manager, AccountingYolanda Perez – Receptionist - CashierJack Perkinsv – Chief Executive OfficerZac Perkins – Chief Operating OfficerBarbara Pritchard – Vice President, AdministrationChris Purdy – Vice President, Member SolutionsCharlie Ratliff – WarehousemanKiley Rice – Relay TechnicianPamela Richardson – Billing SpecialistFrancisco Rodriguez – Electrical AssistantTammy Romero – Accounting SpecialistRuben Sanchez – Metering SupervisorDavid Sheets – Service TechnicianShellie Shorb – Safety and Loss Control CoordinatorTrevor Smith – Apprentice LinemanRobert Sprenkle – Help Desk and Network AssistantJeff Stebbins – Vice President, EngineeringMatt Stokes – Service TechnicianTyrel Stokes – Maintenance ForemanCaleb Stover – Journeyman LinemanBillie Stump – GroundmanKimberly Taylorv – Member Service RepresentativeMatt Taylor – Manager, MaintenanceReese Thompson – Staking CoordinatorBrent Ukens – DispatcherVictor Valdez – WarehousemanRick Wayman – Manager, ConstructionKyle Weber – Journeyman LinemanMatthew Wilkinson – Apprentice LinemanCayce Williams – Substation Technician ApprenticeBrandi Wilson – Financial Analyst

T C E C E M P L O Y E E S A S O F J U LY 1 5 , 2 0 1 5

P.O. Box 880, Hooker, Oklahoma 73945www.tcec.coop