2019-11-13T11:08:10-06:00 2018-12-31 461498870 BMSS LLC 1121 RIVERCHASE OFFICE ROAD BIRMINGHAM AL 35244 990 2018-01-01 630238274 POWERSOUTH ENERGY COOPERATIVE POWE 3344273000 PO BOX 550 ANDALUSIA AL 36420 BETH WOODARD CFO / EVP 3344273000 2019-11-12 1 CHERION SIBLEY CPA P00090514 2059825500 74.254.230.2 2019-11-12 15:40:37 CS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 494511E470D73736F732AD8D9BBFD97D8B7E451B 2018 2020-04-17 16:48:07Z ELIZABETH C WOODARD PO BOX 550 ANDALUSIA AL 36420 621114877 0 X WWW.POWERSOUTH.COM X 1941 AL COOPERATIVE UTILITY SYSTEM - PRODUCING & DISTRIBUTING WHOLESALE ELECTRIC POWER TO & FOR COOPERATIVE MEMBERS UNDER THE PROVISIONS OF THE RURAL ELECTRIFICATION ACT OF 1936. 40 40 677 0 0 0 0 0 588641708 612556144 5119417 6225501 2108876 2240576 595870001 621022221 0 0 0 0 75306318 81262015 0 0 0 510942077 527687697 586248395 608949712 9621606 12072509 1731764417 1738635908 1376367366 1371166348 355397051 367469560 POWERSOUTH ENERGY COOPERATIVE IS AN ALABAMA COOPERATIVE CORPORATION PRODUCING AND TRANSMITTING WHOLESALE ELECTRIC POWER TO AND FOR ITS COOPERATIVE AND MUNICIPAL MEMBERS UNDER THE PROVISIONS OF THE RURAL ELECTRIFICATION ACT OF 1936. 0 0 POWERSOUTH ENERGY COOPERATIVE SERVES THE WHOLESALE ENERGY NEEDS OF 20 UTILITY DISTRIBUTION MEMBERS IN ALABAMA AND NORTHWEST FLORIDA. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 220 0 1 677 1 0 0 0 0 0 609340196 11682025 0 1 0 X 40 40 0 0 0 0 1 1 1 1 1 0 0 1 0 1 0 1 1 0 X ELIZABETH C WOODARD 3344273000 2027 EAST THREE NOTCH STREET ANDALUSIA AL 36421 CLAY CAMPBELL BOARD MEMBER 7.00 X 18903 0 0 ED SHORT BOARD MEMBER 7.00 X 19601 0 0 JAMES WILSON BOARD MEMBER 7.00 X 16703 0 0 RANDY BRANNON BOARD MEMBER 7.00 X 20403 0 0 GARY HARRISON BOARD MEMBER 7.00 X 18403 0 0 TOM STACKHOUSE BOARD MEMBER 7.00 X 19203 0 0 JAMES HALL BOARD MEMBER 7.00 X 16001 0 0 EARL JOHNSON BOARD MEMBER 7.00 X 12602 0 0 BRITT THOMAS BOARD MEMBER 7.00 X 19203 0 0 STACEY PARKER BOARD MEMBER 7.00 X 18403 0 0 JIM WINN BOARD MEMBER 7.00 X 11603 0 0 COOSA VALLEY ELECTRIC BOARD MEMBER 7.00 X 18100 0 0 VINCE JOHNSON BOARD MEMBER 7.00 X 16900 0 0 TALLAPOOSA RIVER ELECTRIC BOARD MEMBER 7.00 X 19603 0 0 THOMAS DUNCAN BOARD MEMBER 7.00 X 20003 0 0 MICKEY MURDOCK BOARD MEMBER 7.00 X 14101 0 0 RICKY JONES BOARD MEMBER 7.00 X 13703 0 0 TERRY MOSELEY BOARD MEMBER 7.00 X 20003 0 0 WILLIE SMITH BOARD MEMBER 7.00 X 18802 0 0 STEPHEN RHODES BOARD MEMBER 7.00 X 19203 0 0 JOSEPH COLEMAN BOARD MEMBER 7.00 X 22003 0 0 WIREGRASS ELECTRIC COOPERATIVE BOARD MEMBER 7.00 X 20803 0 0 VAN SMITH BOARD MEMBER 7.00 X 21203 0 0 RUSSELL DUNAWAY BOARD MEMBER 7.00 X 17803 0 0 JIMMY SHAVER BOARD MEMBER 7.00 X 25373 0 0 KAREN MOORE BOARD MEMBER 7.00 X 17303 0 0 DOUG BIRMINGHAM BOARD MEMBER 7.00 X 7502 0 0 ANDREW CALLAWAY BOARD MEMBER 7.00 X 10802 0 0 DAVID BAILEY BOARD MEMBER 7.00 X 20003 0 0 BECKY BRACKE BOARD MEMBER 7.00 X 16003 0 0 ISABELL BOYD BOARD MEMBER 7.00 X 15202 0 0 TIM JOHNSON BOARD MEMBER 7.00 X 25193 0 0 JACK BAILEY BOARD MEMBER 7.00 X 4900 0 0 JOHN BARTLEY BOARD MEMBER 7.00 X 18403 0 0 GERALD EDMONDSON BOARD MEMBER 7.00 X 20003 0 0 ALAN SCHOTT BOARD MEMBER 7.00 X 1100 0 0 HOWARD DAUGHERTY BOARD MEMBER 7.00 X 12302 0 0 LEE PETERS BOARD MEMBER 7.00 X 12103 0 0 AARON WHITE BOARD MEMBER 7.00 X 19602 0 0 TRACY REEDER BOARD MEMBER 7.00 X 19603 0 0 LELAND FULLER BOARD MEMBER 7.00 X 1501 0 0 BRUCE BOSWELL BOARD MEMBER 7.00 X 20403 0 0 RANDY BUSH BOARD MEMBER 7.00 X 20803 0 0 TY PEEL BOARD MEMBER 7.00 X 1100 0 0 STEVEN SHEFFIELD BOARD MEMBER 7.00 X 4500 0 0 JAMES SIKES BOARD MEMBER 7.00 X 4801 0 0 EDWARD JONES BOARD MEMBER 7.00 X 10102 0 0 GARY SMITH CEO/PRESIDENT 50.00 X 1281654 0 237059 SETH HAMMETT VP OF BUSINESS DEVELOPMENT 50.00 X 340557 0 81953 HORACE HORN VP OF EXTERNAL AFFAIRS 50.00 X 531782 0 94975 DAMON MORGAN COO 50.00 X 715500 0 159849 ELIZABETH WOODARD CFO 50.00 X 423491 0 118990 LEIGH GRANTHAM VP OF MEMBER SERVICES AND 50.00 X 319268 0 103664 RICK KYLE CFO 50.00 X 1035278 0 37511 JOHN MATHESON VP OF POWER PRODUCTIONS 50.00 X 230028 0 68901 RON GRAHAM VP OF POWER SUPPLY 50.00 X 241002 0 76827 ART BRUNSON VP OF LEGAL AND COMPLIANCE 50.00 X 254198 0 81746 TERRY WILSON DIRECTOR OF T&D OPERATIONS 50.00 X 213372 0 67684 JJ FARRINGTON MANAGER OF PLANNING, COMPLIANCE & REGULATORY 50.00 X 181991 0 62231 DAVID WYATT CENTRAL GENERATION PLANT MANAGER 50.00 X 183087 0 52631 TIM HATTAWAY ENERGY SERVICES MANAGER 50.00 X 179589 0 60928 JOE ARMSTRONG DIRECTOR OF ENGINEERING 50.00 X 194198 0 56858 7066860 0 1361807 180 0 1 0 PARKER TOWING COMPANY PO BOX 20908 TUSCALOOSA AL 35402 BARGE SERVICES 7253211 BLACK & VEATCH CORPORATION 11401 LAMAR AVENUE OVERLAND PARK KS 66211 ENGINEERING SERVICES 1740656 ASPLUNDH TREE EXPERT CO 2011 HWY 87 ALABASTER AL 35007 TREE CUTTING SERVICES 869137 BURNS & MCDONNELL ENGINEERING CO INC 9400 WARD PARKWAY KANSAS CITY MO 64114 ENGINEERING SERVICES 803163 CDG ENGINEERS PO BOX 278 ANDALUSIA AL 36420 ENGINEERING SERVICES 678387 22 SALES OF ELECTRICITY 221000 612556144 612556144 612556144 6150310 6150310 167847 92656 75191 75191 75191 CAPITAL CREDITS 221000 1281912 1281912 AFUDC 221000 793080 793080 OTHER MISCELLANEOUS INCOME 221000 165584 165584 2240576 621022221 614796720 0 6225501 7176099 55786014 13262886 906431 4130585 1699019 396316 74945 6009685 670424 3190945 1164131 56631597 69424322 POWER PRODUCTION - FUEL 177024644 PURCHASED POWER 110686706 TRANSMISSIONS - OPERATI 36843088 POWER PRODUCTION - MAIN 30524120 33347755 608949712 58817543 72705855 6020802 3584863 60709460 63050314 104429383 73495160 72436940 64824789 2411063158 1062615630 1353896540 1348447528 18098160 18601568 19366438 19058092 37989151 74867739 1731764417 1738635908 94982598 93301983 14116723 32600000 98621829 95099625 856452954 930842148 229695956 115460998 82497306 103861594 1376367366 1371166348 X 110 110 0 0 355396941 367469450 355397051 367469560 1731764417 1738635908 12072509 0 X X 0 1 X 1 0 18859508 18859508 150802048 86817053 63984995 2203941892 956391100 1247550792 37459710 19407477 18052233 1348447528 FMV OF INTEREST RATE SWAPS 30128097 ACCUM PROV FOR PROPERTY INSURANCE 5207307 ASSET RETIREMENT OBLIGATIONS 35378477 REG. LIAB. DEFERRED GAIN ON INTEREST RATE SWAPS 31862 ACCRUED POST RETIREMENT BENEFIT COST 27590397 FMV OF GAS HEDGES 5525454 103861594 620784022 0 620784022 238199 238199 621022221 608720034 8523 8523 608711511 238201 238201 608949712 PART XI, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL STATEMENT NETTING OF EXPENSES IN INCOME 238,199. PART XII, LINE 2D - OTHER ADJUSTMENTS: CONSOLIDATED FINANCIAL STATEMENT LOSSES ON WHOLLY OWNED SUBSIDIARIES 8,523. PART XII, LINE 4B - OTHER ADJUSTMENTS: FINANCIAL STATEMENT NETTING OF INCOME IN EXPENSES 238,201. X X X 0 1 0 GARY SMITH CEO/PRESIDENT 1101018 0 0 0 180636 0 220261 0 16798 0 1518713 0 0 0 SETH HAMMETT VP OF BUSINESS DEVELOPMENT 306025 0 0 0 34532 0 77616 0 4337 0 422510 0 0 0 HORACE HORN VP OF EXTERNAL AFFAIRS 348056 0 0 0 183726 0 85736 0 9239 0 626757 0 0 0 DAMON MORGAN COO 715500 0 0 0 0 0 143051 0 16798 0 875349 0 0 0 ELIZABETH WOODARD CFO 423491 0 0 0 0 0 102192 0 16798 0 542481 0 0 0 LEIGH GRANTHAM VP OF MEMBER SERVICES AND 319268 0 0 0 0 0 86866 0 16798 0 422932 0 0 0 RICK KYLE CFO 120791 0 0 0 914487 0 31912 0 5599 0 1072789 0 0 0 JOHN MATHESON VP OF POWER PRODUCTIONS 230028 0 0 0 0 0 53909 0 14992 0 298929 0 0 0 RON GRAHAM VP OF POWER SUPPLY 241002 0 0 0 0 0 61241 0 15586 0 317829 0 0 0 ART BRUNSON VP OF LEGAL AND COMPLIANCE 254198 0 0 0 0 0 65832 0 15914 0 335944 0 0 0 TERRY WILSON DIRECTOR OF T&D OPERATIONS 213372 0 0 0 0 0 52684 0 15000 0 281056 0 0 0 JJ FARRINGTON MANAGER OF PLANNING, COMPLIANCE & RE 181991 0 0 0 0 0 47572 0 14659 0 244222 0 0 0 DAVID WYATT CENTRAL GENERATION PLANT MANAGER 183087 0 0 0 0 0 44435 0 8196 0 235718 0 0 0 TIM HATTAWAY ENERGY SERVICES MANAGER 179589 0 0 0 0 0 46346 0 14582 0 240517 0 0 0 JOE ARMSTRONG DIRECTOR OF ENGINEERING 194198 0 0 0 0 0 42615 0 14243 0 251056 0 0 0 PART I, LINE 4B THE FOLLOWING PERSONS PARTICIPATE IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN. GARY SMITH CEO/PRESIDENT SETH HAMMETT VP OF BUSINESS DEVELOPMENT HORACE HORN VP OF EXTERNAL AFFAIRS DAMON MORGAN COO ELIZABETH WOODARD CFO LEIGH GRANTHAM VP OF MEMBER SERVICES AND COMMUNICATIONS RICK KYLE VP/CFO DURING 2018, THE FOLLOWING PAYMENTS WERE MADE TO EMPLOYEES FROM A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN: GARY SMITH $180,636 SETH HAMMETT $34,532 HORACE HORN $183,726 RICK KYLE $914,487 A INDUSTRIAL DEV BD TOWN OF CHATOM SERIES 2007A 636003963 162296AA5 2007-04-06 50000000 GO ZONE BONDS - PROJECTS 0 0 0 B INDUSTRIAL DEV BD TOWN OF CHATOM SERIES 2010A 636003963 16229PAB1 2010-09-29 74645000 GO ZONE BONDS - REFUNDING 0 0 0 A 2009 0 0 1 1 B 3540000 2009 1 0 1 1 A 0 0 1 1 1 0 0 0 1 B 0 0 1 1 0 0 0 0 1 A 0 B 0 SCHEDULE K PART IV, ARBITRAGE, LINE 2C: ADDITIONAL INFORMATION (A) ISSUER NAME: INDUSTRIAL DEV. BD. TOWN OF CHATOM SERIES 2007A DATE THE REBATE COMPUTATION LAST WAS PERFORMED: 04/01/2017 (A) ISSUER NAME: INDUSTRIAL DEV. BD. TOWN OF CHATOM SERIES 2010A DATE THE REBATE COMPUTATION WAS LAST PERFORMED: 09/30/2015 SCHEDULE K PART III - OTHER QUALIFIED PRIVATE ACTIVITY BOND INFORMATION PART I, ROW A IDB OF TOWN OF CHATOM SERIES 2007A - GO ZONE BONDS PART I, ROW B IDB OF TOWN OF CHATOM SERIES 2010A - GO ZONE BONDS FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS 20 MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER HAS THE POWER TO NOMINATE TWO TRUSTEES TO THE BOARD. FORM 990, PART VI, SECTION A, LINE 7B UNDER POWERSOUTH'S BYLAWS, CERTAIN ACTIONS ARE VOTED ON BY THE MEMBERS INCLUDING THE SALE OF SUBSTANTIALLY ALL OF ITS PROPERTY, EXPULSION OF A MEMBER AS WELL AS MATTERS DEALING WITH MERGERS AND OTHER ISSUES. FORM 990, PART VI, SECTION B, LINE 11B THE PRESIDENT/CEO REVIEWS THE FORM 990 WITH THE EXECUTIVE COMMITTEE WHO THEN REPORTS TO THE BOARD OF TRUSTEES. THE BOARD MEMBERS RECEIVE A COPY OF THE FORM 990 FOR REVIEW. ONCE THE FORM 990 HAS BEEN REVIEWED BY THE GOVERNING BODY, THE RETURN IS FILED WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, LINE 12A THE ORGANIZATION DOES NOT HAVE A FORMAL CONFLICT OF INTEREST POLICY HOWEVER INTERNAL PROCEDURES AND OTHER POLICIES PROVIDE THE ORGANIZATION WITH GUIDANCE ON CONFLICTS OF INTEREST. FORM 990, PART VI, LINE 14 THE ORGANIZATION DOES NOT HAVE A FORMAL POLICY HOWEVER INTERNAL PROCEDURES PROVIDE THE ORGANIZATION WITH GUIDANCE ON DOCUMENT RETENTION AND DESTRUCTION PER THE USDA GUIDELINES FOR RURAL UTILITY SERVICE. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION PROCESS: POWERSOUTH'S SYSTEMATIC SALARY COMPENSATION PLAN FOR MANAGEMENT, SUPERVISORY, TECHNICAL AND CLERICAL EMPLOYEES WAS DEVELOPED BY THE HAY GROUP AND HAS BEEN USED SINCE THE 1980'S. THE HAY METHODOLOGY EVALUATES JOBS ON THREE MAJOR FACTORS: (1) REQUIRED JOB KNOWLEDGE AND SKILLS (2) THE DEGREE OF THINKING AND PROBLEM SOLVING REQUIRED FOR DECISION MAKING AND (3) THE DEGREE OF ACCOUNTABILITY FOR ACTIONS AND THE CONSEQUENCES OF THOSE ACTIONS. AFTER EVALUATION, EACH JOB IS ASSIGNED A POINT VALUE AND A SALARY RANGE. EACH YEAR, HAY REVIEWS THE SALARY RANGES OF OUR JOBS AND COMPARES THEM TO THE MARKET TO DETERMINE WHERE WE RELATE TO OTHERS IN OUR INDUSTRY. FROM THE INFORMATION OBTAINED THROUGH EXTENSIVE SURVEYS CONDUCTED BY HAY (HAY GROUP ENERGY INDUSTRY AND LOCAL AREA SURVEY DATABASES), IT WILL DETERMINE IF OUR MIDPOINTS ARE BELOW, ABOVE OR EQUAL TO THE MARKET AVERAGE. THIS ENSURES INTERNAL EQUITY AND EXTERNAL COMPETITIVENESS. IF NEEDED, HAY MAKES A RECOMMENDATION TO ADJUST OUR PAY STRUCTURE (SALARY RANGES) BASED ON THE MARKET AND ITS MOVEMENT. POWERSOUTH'S BOARD OF TRUSTEES IS INFORMED OF THIS INFORMATION AND HAS THE FINAL DECISION AS TO WHAT ACTION IS TAKEN. WE PROCEED AS THE BOARD OF TRUSTEES ADVISE. FORM 990, PART VI, SECTION C, LINE 19 FORM 990 AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. CERTAIN GOVERNANCE DOCUMENTS ARE AVAILABLE VIA ALABAMA SECRETARY OF STATE WEBSITE AS WELL AS POSTED TO EMMA OPERATED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD. FORM 990, PART XII, LINE 2C THERE WAS NO CHANGE IN THE AUDIT OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE YEAR. SECTION 1.263(A)-1(F) DE MINIMIS SAFE HARBOR ELECTION POWERSOUTH ENERGY COOPERATIVE P.O. BOX 550 ANDALUSIA, AL 36420 EMPLOYER IDENTIFICATION NUMBER: 63-0238274 FOR THE YEAR ENDING DECEMBER 31, 2018 POWERSOUTH ENERGY COOPERATIVE IS MAKING THE DE MINIMIS SAFE HARBOR ELECTION UNDER REG. SEC. 1.263(A)-1(F). SECTION 1.263(A)-3(N) ELECTION POWERSOUTH ENERGY COOPERATIVE P.O. BOX 550 ANDALUSIA, AL 36420 EMPLOYER IDENTIFICATION NUMBER: 63-0238274 FOR THE YEAR ENDING DECEMBER 31, 2018 POWERSOUTH ENERGY COOPERATIVE IS MAKING THE ELECTION TO CAPITALIZE REPAIR AND MAINTENANCE COSTS UNDER REG. SEC. 1.263(A)-3(N). ANDALUSIA AND CONECUH RAILROAD CO INC PO BOX 550 ANDALUSIA AL 36420 630844945 RAILROAD AL POWERSOUTH ENERGY COOPERATIVE C -1900 283147 1.00000 1 POWERSOUTH DEVELOPMENT CORP PO BOX 550 ANDALUSIA AL 36420 721361165 ECONOMIC DEVELOPMENT AL POWERSOUTH ENERGY COOPERATIVE C 1657667 1.00000 1 COOPERATIVE SERVICES INC PO BOX 550 ANDALUSIA AL 36420 631236941 HOLDING COMPANY AL POWERSOUTH ENERGY COOPERATIVE C -6623 101951 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0