2019-11-15T13:12:12-06:00 2018-12-31 582475857 NICHOLS CAULEY & ASSOCIATES LLC 400 CORDER ROAD WARNER ROBINS GA 310887166 990 2018-01-01 580462070 THREE NOTCH ELECTRIC MEMBERSHIP CORPORATION THRE 8002395377 PO Box 367 Donaldsonville GA 31745 CARLTON THOMAS PRESIDENT/CEO 8002395377 2019-11-14 1 CAL BRANTLEY CPA P00636393 4789293888 2019-11-14 64.88.174.3 2019-11-14 15:25:40 US P 4E116D7761F75B94CD478FC68DE29D3D256BD88D 9E71DE3378439645A49070D36DEDF65FAD3B22EE 2018 2020-03-31 21:24:44Z CARLTON THOMAS PO Box 367 Donaldsonville GA 31745 31570216 0 X www.threenotchemc.com X 1938 GA TO PROVIDE MEMBERS PROMPT & EFFICIENT SERVICE & ELECTRICITY AT THE LOWEST POSSIBLE COST. 9 9 59 0 0 0 0 0 33392796 31437629 130971 132587 0 0 33523767 31570216 0 0 2698856 3870006 408538 421560 0 0 0 30416373 27278650 33523767 31570216 0 0 79185466 107812886 42522636 67703913 36662830 40108973 TO PROVIDE OUR MEMBERS WITH PROMPT & EFFICIENT SERVICE AND ELECTRICITY AT THE LOWEST POSSIBLE COST. 0 0 31570216 SALE OF ELECTRICITY TO APPROXIMATELY 8,300 COOPERATIVE MEMBERS LOCATED IN SOUTHWEST GEORGIA. 31570216 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 47 0 1 59 1 0 0 0 0 0 29967039 1603177 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 GA X CARLTON THOMAS 2295242450 116 W 2ND STREET DONALSONVILLE GA 39845 EARL PHILIP BUCKHALTER DIRECTOR 5.00 X 12485 0 0 STACY T COOPER DIRECTOR 5.00 X 28506 0 0 SAM HATTAWAY DIRECTOR 5.00 X 28756 0 0 JAMES VANN HORNSBY DIRECTOR 5.00 X 22375 0 0 KIMBLEY RENTZ VICE CHAIRMAN 5.00 X X 12985 0 3200 STEPHEN J HOLT CHAIRMAN 5.00 X X 16585 0 0 KENNETH MASSEY SECRETARY-TREASURER 5.00 X X 12685 0 0 WILLARD MIMS ASST SECRETARY-TREASURER 5.00 X X 12485 0 0 BARBARA MEANS DIRECTOR 5.00 X 16171 0 0 CARLTON O THOMAS PRESIDENT/CEO 40.00 X 198039 0 57288 361072 0 60488 1 0 1 0 LEE ELECTRICAL 12828 US 501 ABERDEEN NC 28315 CONTRACTOR 6453232 MASTEC NORTH AMERICA INC 800 S DOUGLAS ROAD 10TH FLOOR CORAL GABLES FL 33134 RIGHT OF WAY CLEARING 1885878 STORM SERVICES LLC 100 INDUSTRIAL DRIVE YORK AL 36925 CONTRACTOR 1795832 THE DAVEY TREE EXPERT 6925 GILLELAND LN NW ATLANTA GA 30360 RIGHT OF WAY CLEARING 1734598 VOLT POWER 2910 US 31 HARTSELLE AL 35640 CONTRACTOR 1156553 5 Electricity Sales 221000 29967039 29967039 Capital Credits 221000 1349193 1349193 Pole Rental 221000 121397 121397 31437629 132587 132587 31570216 29967039 0 1603177 X 3870006 421560 1508595 2313214 COST OF POWER 14625048 DISTRIBUTION MAINTENANC 4451852 DISTRIBUTION OPERATIONS 1916076 GENERAL & ADMINISTRATIO 1309193 1154672 31570216 1777607 1822854 2713128 2559169 3039856 2814770 345903 443337 16560 19365213 88018772 26319462 54229227 61699310 16775002 18824419 288183 283814 79185466 107812886 2077845 8841240 38469232 56879228 1975559 1983445 42522636 67703913 X 41550 40315 33522354 35833306 3098926 4235352 36662830 40108973 79185466 107812886 X 0 3446143 X X 0 1 X 1 0 227741 227741 87791031 26319462 61471569 61699310 CAPITAL CREDITS-UNITED UTILITY 1732 C CAPITAL CREDITS-OPC 7354431 C CAPITAL CREDITS-GTC 1556386 C GTC-CAPITAL CONTRIBUTION 528389 C CAPITAL CREDITS-GRESCO 1079005 C CAPITAL CREDITS-GSOC 1635 C SOWEGA ENERGY RESOURCES, LLC 800215 C THREE NOTCH HOLDING CORPORATION 1667146 C CAPITAL TERM CERTIFICATES-NRUCFC 709739 C CAPITAL CREDITS-NRUCFC 499919 C CAPITAL CREDITS-FEDERATED RURAL ELECTRIC INS 36874 C CAPITAL CREDITS-GEC 4077481 C CAPITAL CREDITS-CO BANK 23451 C CAPITAL CREDITS-SEDC 131103 C MEMBERSHIP FEES IN ASSOCIATED ORGANIZATIONS 3200 C USDA FEDERAL ECONOMIC DEV PRG 347900 C CAPITAL CONTRIBUTIONS-GEC 3700 C CAPITAL CREDITS-CRC 2113 C 18824419 DEFERRED CREDITS 91462 CUSTOMER DEPOSITS 774678 ACCR POSTRETIRMENT BENEFITS 1117305 1983445 X Part X, Line 2: THE ORGANIZATION'S CONSOLIDATED, INDEPENDENT AUDITED FINANCIAL STATEMENTS FOR THE TAX YEAR INCLUDED THE FOLLOWING FOOTNOTE THAT ADDRESSES THE ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48: "THE CORPORATION OPERATES UNDER THE INTERNAL REVENUE CODE, SECTION 501(C)(12), AS A TAX-EXEMPT COOPERATIVE. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN MADE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE SUBSIDIARY IS A TAXABLE CORPORATION WITH NO DEFERRED TAX ASSETS OR LIABILITIES AS OF DECEMBER 31, 2018 AND 2017. THE CORPORATION AND SUBSIDIARY BELIEVE APPROPRIATE SUPPORT EXITS FOR ANY TAX POSITIONS TAKEN, AND AS SUCH, DO NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2018 AND 2017." X 0 0 0 CARLTON O THOMAS PRESIDENT/CEO 188573 0 9466 0 0 0 38745 0 18543 0 255327 0 0 0 SPECIAL NOTE FOR 2019 The Corporation's electric distribution system was severely damaged as a result of Hurricane Michael, and it incurred significant expenditures for resulting damages and costs. The Corporation expects to receive substantial FEMA reimbursements during 2019. As a result of current tax laws, the Corporation may fail the 85% member income test for 2019. If it fails this member income test, the Corporation will have to file Form 1120 for 2019 and will not be filing Form 990 for 2019. In any event, the Corporation expects to meet the 85% member income test for 2020 and will file Form 990 for 2020. Future tax legislation may change the Corporation's expectations for 2019. Form 990, Part VI, Section A, line 6 INDIVIDUALS AND ENTITIES REQUESTING SERVICE ARE REQUIRED TO PAY A ONE-TIME MEMBERSHIP FEE. Form 990, Part VI, Section A, line 7a THE CORPORATION HAS NINE MEMBERS OF ITS BOARD OF DIRECTORS. A BOARD ELECTION IS HELD ANNUALLY IN CONJUNCTION WITH THE CORPORATION'S ANNUAL MEMBER MEETING. THE MEMBERS ARE THE ONLY ONES ALLOWED TO VOTE IN THE ANNUAL ELECTION OF BOARD MEMBERS. Form 990, Part VI, Section A, line 7b CERTAIN DECISIONS, SUCH AS BY-LAWS CHANGES, MUST BE APPROVED BY THE MEMBERS. Form 990, Part VI, Section B, line 11b FORM 990 WAS REVIEWED WITH THE BOARD OF DIRECTORS AND CERTAIN MEMBERS OF MANAGEMENT BY THE CERTIFIED PUBLIC ACCOUNTING FIRM THAT PREPARED THE FORM 990. Form 990, Part VI, Section B, line 12c AN ANNUAL DISCLOSURE OF ANY CONFLICTS OF INTEREST IS REQUIRED BY ALL OFFICERS, DIRECTORS AND KEY EMPLOYEES, AND THE BOARD OF DIRECTORS REVIEWS THE DISCLOSURES. Form 990, Part VI, Section B, line 15a THE GENERAL MANAGER'S ANNUAL COMPENSATION IS BASED ON VARIOUS CRITERIA THAT ARE REVIEWED BY THE BOARD OF DIRECTORS IN APPROVING SUCH COMPENSATION. ANNUAL COMPENSATION FOR CERTAIN OTHER EMPLOYEES IS INITIALLY SET BY THE GENERAL MANAGER AND IS THEN SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS. Form 990, Part VI, Section C, line 19 SUCH INFORMATION IS AVAILABLE TO THE PUBLIC UPON RECEIPT OF A REASONABLE REQUEST. Form 990, Part IX, line 24e CONSUMER ACCOUNTS 1,154,672. Form 990, Part XI, line 9: BENEFITS PAID TO MEMBERS 3,870,006. DECREASE IN MEMBERSHIPS -1,235. RETIREMENT OF MEMBERS' PATRONAGE CAPITAL -387,904. INCREASE IN OTHER EQUITIES 29. OTHER COMPREHENSIVE INCOME -34,753. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS AND ITS DESIGNEES ASSUME RESPONSIBILITY FOR OVERSIGHT OF ITS FINANCIAL AUDITS AND THE SELECTION OF ITS INDEPENDENT AUDITORS. THE ANNUAL AUDIT IS PERFORMED ON A CALENDAR YEAR BASIS. THIS PROCESS HAS NOT CHANGED SINCE THE PRIOR YEAR. SOWEGA ENERGY RESOURCES 1499 HIGHWAY 84 CAIRO GA 39828 582538051 ELECTRIC POWER GENERATION GA 0 0 THREE NOTCH HOLDING CORPORATION PO BOX 367 DONALSONVILLE GA 39845 061683848 ELECTRIC POWER GENERATION GA N/A C 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0