2016-08-08T14:31:34-05:00 2015-12-31 990 2015-01-01 640367992 SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION SOUT 6012682083 PO BOX 15849 HATTIESBURG MS 394045849 RAYMOND HALEY CHIEF FINANCIAL OFFICER 6012682083 2016-08-08 2015 2016-12-15 16:53:06Z JAMES COMPTON PO BOX 15849 HATTIESBURG MS 394045849 855950448 0 X WWW.SMEPA.COOP X 1941 MS PROVIDE AND TRANSMIT THROUGH GENERATION AND PURCHASE OF ELECTRICITY, WHOLESALE ELECTRICITY TO 11 MEMBER OWNED COOPERATIVES, EACH SERVING RETAIL CONSUMERS. 22 22 487 0 0 0 0 0 917619079 855892847 60233 57601 0 0 917679312 855950448 115000 146000 25058057 24654000 46145197 49947614 0 0 0 846361058 781202834 917679312 855950448 0 0 2049952594 1709665875 1712364169 1355032823 337588425 354633052 PROVIDE AND TRANSMIT THROUGH GENERATION AND PURCHASE OF ELECTRICITY, WHOLESALE ELECTRICITY TO 11 MEMBER OWNER COOPERATIVES, EACH SERVING RETAIL CONSUMERS. 0 0 PROVIDE AFFORDABLE AND RELIABLE ELECTRIC ENERGY TO MEMBER COOPERATIVES. THE 11 MEMBER COOPERATIVES PROVIDE SERVICE TO APPROXIMATELY 423,000 METERS IN MISSISSIPPI. SOUTH MISSISSIPPI ELECTRIC AND THE 11 MEMBER SYSTEMS ARE CONSUMER-OWNED, NON-PROFIT BUSINESSES. DURING 2015 SOUTH MISSISSIPPI ELECTRIC PROVIDED MEMBER SYSTEMS WITH 10,086,777 MWH OF ENERGY. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 487 1 0 0 0 0 0 757544085 98348762 0 X 22 22 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MS X RAYMOND HALEY 6012682083 7037 HWY 49 N HATTIESBURG MS 39402 MICKEY BERRY DIRECTOR 3.40 X 16000 0 0 KEVIN BONDS DIRECTOR 4.20 X 21600 0 0 O HOWARD DAVIS DIRECTOR 3.20 X 11200 0 0 JAMES GINN DIRECTOR 2.50 X 11200 0 0 ROY GRAFE DIRECTOR 2.70 X 8800 0 0 WILLIAM HARDIN DIRECTOR 6.10 X 22400 0 0 KEITH HURT DIRECTOR 10.00 X 20000 0 0 DON JORDAN DIRECTOR 5.30 X 26400 0 0 WAKENDRICK DIRECTOR 1.50 X 2400 0 0 MACK MAULDIN DIRECTOR 2.90 X 22000 0 0 ODELL MCKENZIE DIRECTOR 5.70 X 16000 0 0 JOHN MOSLEY DIRECTOR 4.70 X 20800 0 0 DAVID O'BRYAN DIRECTOR 2.50 X 12000 0 0 BOB OCCHI DIRECTOR 3.30 X 24000 0 0 GORDON L REDD JR DIRECTOR 2.60 X 7200 0 0 JOHN B REED DIRECTOR 4.70 X 16000 0 0 RW ROBERTSON DIRECTOR 2.20 X 7200 0 0 MICHAEL R SMITH DIRECTOR 4.30 X 19200 0 0 RANDY SMITH DIRECTOR 3.80 X 23200 0 0 WILLIAM D SMITH DIRECTOR 8.50 X 23200 0 0 WILLIAM K SMITH DIRECTOR 2.90 X 17600 0 0 LOUIS THOMPSON DIRECTOR 3.10 X 19200 0 0 RANDY WALLACE DIRECTOR 5.60 X 26400 0 0 LAWRENCE WARREN DIRECTOR 0.60 X 10400 0 0 HENRY C WATERER JR DIRECTOR 8.40 X 33600 0 0 RONALD WHITE DIRECTOR 3.90 X 20000 0 0 JAMES COMPTON GENERAL MANAGER/CEO 55.00 X 793426 0 103464 RAYMOND HALEY CHIEF FINANCIAL OFFICER 48.00 X 374584 0 114303 TERRY LEE CHIEF ENGINEERING OFFICER/ASST GENERAL MGR 46.50 X 282405 0 84466 NATHAN BROWN CHIEF OPERATING OFFICER 50.00 X 406370 0 103247 BRAD WOLFE CHIEF POWER DELIVERY OFFICER 43.00 X 255463 0 85928 JEFF BOWMAN CHIEF LEGAL OFFICER 45.00 X 355916 0 57315 BRAD EDWARDS DIRECTOR, GENERATION RESOURCES 52.00 X 261835 0 92259 STEVE MCELHANEY CHIEF COMPLIANCE OFFICER 48.00 X 191286 0 64043 SAM FARRIS PLANT SUPERINTENDENT 47.90 X 183021 0 12191 GARY HUTSON DIRECTOR OF OPERATIONS AND PLANNING 50.00 X 174658 0 44496 3736964 0 761712 60 0 1 0 SIEMENS ENERGY 4400 ALAFAYA TRAIL ORLANDO FL 32826 POWER PLANT MAINTT & REPAIR 9072309 SIEMENS DEMAG DELAVAL TURBOMACHINERY 840 NOTTINGHAM WAY HAMILTON NJ 08650 TURBINE PARTS 6690099 MIDWEST UNDERGROUND TECHNOLOGY 2626 MIDWEST COURT CHAMPAIGN IL 61822 MICROWAVE COMM NETWORK 6429951 JAY-VAN COMPANY PO BOX 15427 HATTIESBURG MS 39401 CONST OFFICE COMPLEX 3694456 BURNS AND MCDONNELL ENGINEERING 9400 WARD PARKWAY KANSAS CITY MO 64114 ENGINEERING & CAP PROJECT 3293819 89 REVENUE FROM MEMBERS 221000 757544085 757544085 REVENUE FROM NON-MEMBERS 221000 84442890 84442890 PROGRAM RELATED INVESTMENTS 221000 13905872 13905872 855892847 57601 0 57601 57601 57601 855950448 855950448 0 0 146000 24654000 2953492 32528896 6492653 4983542 2989031 1318278 207260 225768 603839 865558 2386749 723565 607102 50415566 75044635 3353430 PURCH. POWER FOR RESALE 385515697 COAL, NAT. GAS, NUCLEAR 164092715 GENERATION PLANT OPERAT 51928328 TRANSMISSION SYS. OPERA 35889351 8024993 855950448 23795228 9050142 274613 16063667 62234098 68621576 69662154 65828925 74056925 106966151 2314078815 939664303 1415196451 1374414512 404649984 68633438 83141 87464 2049952594 1709665875 136145795 149721667 40865000 35430000 1058266778 948862117 280428876 12853091 196657720 208165948 1712364169 1355032823 X 0 0 0 0 337588425 354633052 337588425 354633052 2049952594 1709665875 X 0 17044627 X X 0 1 X 1 1 1 39428767 39428767 323669835 178187492 145482343 1398711 959525 439186 1695682366 658778546 1036903820 253899136 101738740 152160396 1374414512 DEFINED MEDICAL PLAN FOR RETIREES 11097500 ASSET RETIREMENT OBLIGATIONS (ARO) 94896298 UNREALIZED LOSSES - NAT. GAS HEDGES 11766960 DEFERRED CREDIT - CAPITAL LEASE DISSOLVED 1105004 DEFERRED CREDITS - POWER COST ADJUSTMENT 31892406 DEFERRED CREDIT - ECONOMIC DEVELOPMENT GRANTS 3460570 POWER SUPPLY DEVELOPMENT FUND 35000000 DEFERRED CREDIT - DEPREC.& AMORT. FUND 10000000 MEDICAL INSURANCE CONTRIBUTIONS ACCOUNT 2563552 UNREALIZED GAIN DECOMMISSIONING TRUST 3417552 UNREALIZED LOSS FINANCIAL TRANSMISSION RIGHTS 172811 UNREALIZED LOSS ENERGY SALE DERIVATIVE 2793295 208165948 841986975 0 841986975 13963473 13963473 855950448 831296448 0 831296448 24654000 24654000 855950448 PART XI, LINE 4B - OTHER ADJUSTMENTS: INCLUDED ON SUPPLEMENTAL INFORMATION PART XII, LINE 4B - OTHER ADJUSTMENTS: INCLUDED ON SUPPLEMENTAL INFORMATION SCHEDULE D, PAGE 4, PART XI, LINE 4B: INTEREST INCOME IN THE AMOUNT OF $12,882,327, NET GAIN ON THE SALE OF ASSETS IN THE AMOUNT OF $57,601, AND PATRONAGE INCOME IN THE AMOUNT OF $1,023,545 ARE SHOWN AS NON-OPERATING MARGINS IN THE AUDITED FINANCIALS, BUT INCLUDED AS REVENUE ON FORM 990. SCHEDULE D, PAGE 4, PART XII, LINE 4B: PART XII, LINE 4B- 2015 NET MARGIN OF $24,654,000 IS REFLECTED AS EXPENSE ON THE FORM 990 SINCE THE MARGIN IS ALLOCATED TO THE 11 MEMBERS AS PATRONAGE CAPITAL, THOUGH NO PAYMENT WAS MADE TO THE MEMBERS IN 2015 FOR THIS ALLOCATED PATRONAGE CAPITAL. 1 MAGEE CHAMBER OF COMMERCE PO BOX 60 TAYLORSVILLE MS 39168 640243969 501(C)(12) 15000 ECONOMIC DEVELOPMENT FOUNDATION FOR PUBLIC EDUCATION PO BOX 156 BATESVILLE MS 38606 640792542 501(C)(3) 10000 FIRE DAMAGED ELEM. SCHOOL ECON DEV AUTHORITY JONES COU PO BOX 88 LAUREL MS 394410088 640183177 501(C)(12) 25000 ECONOMIC DEVELOPMENT NRECA INTL FOUNDATION 4301 WILSON BLVD ARLINGTON VA 22201 521409279 501(C)(3) 20000 ELECTRICITY IN DEV. NATIONS BROOKHAVEN-LINCOLN COU ECO PO BOX 5 LORMAN MS 39096 640244325 501(C)(12) 25000 ECONOMIC DEVELOPMENT EPA OF MISS FOUNDATION PO BOX 3300 RIDGELAND MS 39158 203033260 501(C)(3) 11000 LINEMAN SCHOOL COMPETITIVE EDGE PARTNERSHIP 1 CONVENTION CNTR PLAZA HATTIESBURG MS 39401 205162135 501(C)(3) 10000 ECONOMIC DEVELOPMENT HARRISON COU DEV COMMISSION 18020 HWY 603 KILN MS 39556 640169075 501(C)(3) 15000 ECONOMIC DEVELOPMENT HANCOCK COU PORT & HARBOR DEV 18020 HWY 603 KILN MS 39556 640169075 501(C)(3) 15000 ECONOMIC DEVELOPMENT 6 3 PART I, LINE 2: THE SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION BOARD OF DIRECTORS EVALUATES REQUESTS, SUBSEQUENT TO SCREENING BY MEMBER SYSTEM BOARD OF DIRECTORS, FOR PROJECTS THAT WILL ENHANCE OR STIMULATE ECONOMIC GROWTH IN MEMBER SYSTEM AREAS. THE SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION BOARD APPROVES THESE REQUESTS PRIOR TO DISBURSEMENT. PART II, ITEMS 1,3,5,8,9 SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION ISSUED PAYMENT TO MEMBER DISTRIBUTION COOPERATIVES. THE MEMBER DISTRIBUTION COOPERATIVE IN TURN ISSUED PAYMENT TO ENTITIES DENOTED IN COLUMN 1 (A). EIN, ADDRESS, AND IRC SECTION REPORTED IN PART II ARE THOSE FOR THE MEMBER DISTRIBUTION COOPERATIVE. X 1 1 X X X 0 0 0 JAMES COMPTON GENERAL MANAGER/CEO 709036 0 79324 0 5066 0 86464 0 17000 0 896890 0 0 0 RAYMOND HALEY CHIEF FINANCIAL OFFICER 355530 0 13927 0 5127 0 97410 0 16893 0 488887 0 0 0 TERRY LEE CHIEF ENGINEERING OFFICER/ASST GENER 269368 0 10355 0 2682 0 68531 0 15935 0 366871 0 0 0 NATHAN BROWN CHIEF OPERATING OFFICER 383416 0 14889 0 8065 0 86347 0 16900 0 509617 0 0 0 BRAD WOLFE CHIEF POWER DELIVERY OFFICER 241580 0 9850 0 4033 0 70273 0 15655 0 341391 0 0 0 JEFF BOWMAN CHIEF LEGAL OFFICER 335378 0 13670 0 6868 0 40683 0 16632 0 413231 0 0 0 BRAD EDWARDS DIRECTOR, GENERATION RESOURCES 247386 0 9791 0 4658 0 76513 0 15746 0 354094 0 0 0 STEVE MCELHANEY CHIEF COMPLIANCE OFFICER 178671 0 7958 0 4657 0 49537 0 14506 0 255329 0 0 0 SAM FARRIS PLANT SUPERINTENDENT 156916 0 6392 0 19713 0 0 0 12191 0 195212 0 0 0 GARY HUTSON DIRECTOR OF OPERATIONS AND PLANNING 167995 0 6663 0 0 0 30197 0 14299 0 219154 0 0 0 PART I, LINE 1A: AS PART OF AN INITIAL EMPLOYMENT AGREEMENT, SAM FARRIS WAS PAID A TEMPORARY HOUSING ALLOWANCE OF $9,621, WHICH REPRESENTS A MONTHLY PAYMENT OF $1,000 PER MONTH, GROSSED-UP FOR TAXES, FOR A PERIOD NOT TO EXCEED 6 MONTHS. THE ALLOWANCE WAS SUBJECT TO TAX AND ACCORDINGLY REPORTED ON THE W2 EARNINGS STATEMENT. A MISSISSIPPI BUSINESS FINANCE CORPORATION 640679132 60528BAP7 2008-10-08 24530000 SEE PART VI 0 0 0 B MISSISSIPPI BUSINESS FINANCE CORPORATION 640679132 60528BAN2 2008-10-08 11890000 SEE PART VI 0 0 0 A 24530000 309794 76276 24143930 2009 1 0 1 1 B 990000 11890000 150161 36972 11702867 2009 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 0 0 1 LEHMAN BROTHERS SPEC 30.000000000000 0 1 0 0 0 B 0 0 0 0 0 1 LEHMAN BROTHERS SPEC 30.000000000000 0 1 0 0 0 A 0 B 0 PART I (F)PURPOSE THE PURPOSE OF THE BOND ISSUE IS FOR SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION TO CONSTRUCT AND INSTALL APPROXIMATELY 2.3 MILES OF NEW 115KV POWER LINES AND SWITCHING STATIONS IN YAZOO CITY, MS AND 2.8 MILES OF NEW 115KV POWER LINES AND SWITCHING STATIONS IN ADAMS COUNTY, MS. BOND PROCEEDS HAVE ALSO BEEN USED FOR THE PURPOSE OF CONSTRUCTION AND/OR PURCHASE AND INSTALLATION OF FIXED IMPROVEMENTS IN CONNECTION THEREWITH OF THE FOLLOWING PROJECTS LOCATED AT THE FOLLOWING ADDRESSES: 1. HEADQUARTERS EXPANSION LOCATED AT 7037 US HWY 49, HATTIESBURG, MS 2. FIELD OPERATIONS CENTER LOCATED AT 3492 HWY 42, HATTIESBURG, MS 3. PLANT MORROW FACILITIES, BUILDING AND OFFICE RENOVATION LOCATED AT 304 OLD OKAHOLA ROAD, PURVIS, MS FORM 990, PART VI, SECTION A, LINE 2 THE BOARD OF DIRECTORS OF SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION CONSISTS OF 2 DIRECTORS FROM EACH OF THE 11 MEMBER NONPROFIT DISTRIBUTION COOPERATIVES THAT OWN SOUTH MISSISSIPPI ELECTRIC POWER FOR A TOTAL OF 22 DIRECTORS. ONE OF 2 DIRECTORS SERVING ON SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION'S BOARD OF DIRECTORS IS THE GENERAL MANAGER OF THE MEMBER COOPERATIVE AND THE OTHER IS A DIRECTOR SERVING ON THE BOARD OF DIRECTORS OF THE MEMBER COOPERATIVE. THUS THE GENERAL MANAGER AND DIRECTOR FROM EACH MEMBER COOPERATIVE HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER WHILE SERVING AS DIRECTORS FOR SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION. FORM 990, PART VI, SECTION A, LINE 6 SEE RESPONSE TO PART VI SECTION A QUESTION 2 ABOVE. FORM 990, PART VI, SECTION A, LINE 7A SEE RESPONSE TO PART VI SECTION A QUESTION 2 ABOVE. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE 2015 FORM 990 WAS REVIEWED WITH THE BUDGET AND FINANCE COMMITTEE AND REPORTED TO THE BOARD OF DIRECTORS. ON THE BUDGET AND FINANCE COMMITTEE'S RECOMMENDATION, THE BOARD AUTHORIZED THE EXECUTION AND FILING OF THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY ENFORCEMENT - DIRECTORS, OFFICERS, AND KEY EMPLOYEES ANNUALLY COMPLETE, AND SIGN, A QUESTIONNAIRE RELATIVE TO INDEPENDENCE, BUSINESS RELATIONSHIPS, ETC. FORM 990, PART VI, SECTION B, LINE 15 DURING 2015, AN EXECUTIVE COMPENSATION SURVEY WAS PERFORMED BY A CONSULTANT FOR OLD DOMINION ELECTRIC COOPERATIVE. THE SURVEY INCLUDED ELECTRIC COOPERATIVES (INCLUDING SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION) FOR THE FOLLOWING POSITIONS-CEO, CFO, AND SR. VP, POWER SUPPLY. AS A PARTICIPANT IN THE SURVEY, SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION RECEIVED RESULTS OF THE SURVEY. THE GENERAL MANAGER/CEO UTILIZED THIS SURVEY FOR DETERMINING SALARIES FOR THE EXECUTIVE TEAM. THE CONSULTANT'S INFORMATION RELATIVE TO CEO COMPENSATION WAS SENT TO THE BOARD BUDGET AND FINANCE COMMITTEE. THE SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION BOARD DETERMINES THE SALARY FOR THE GENERAL MANAGER/CEO. ADDITIONALLY, THE GENERAL MANAGER/CEO ADVISES THE BOARD OF AVERAGE ANNUAL SALARY INCREASES AS PART OF THE ANNUAL BUDGET APPROVAL PROCESS. APPROVAL OF THE ANNUAL BUDGET IS DOCUMENTED IN THE BOARD MINUTES. FORM 990, PART VI, SECTION C, LINE 19 RECEPTIONISTS HAVE BEEN INFORMED THAT THE FORM 990 WILL BE MADE AVAILABLE. A FORM IS UTILIZED FOR PARTIES REQUESTING A COPY OF THE FORM 990. THIS FORM ADVISES REQUESTING PARTIES THAT PHOTOCOPIES WILL BE MADE AVAILABLE UPON RECEIPT OF COPYING FEES (ALSO SPECIFIED IN THE REQUEST FORM). FINANCIAL STATEMENTS ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE. FORM 990, PART XI, LINE 9: OTHER CHANGES IN NET ASSETS 17,044,627. FORM 990, PART XI, LINE 9 - OTHER CHANGE IN ASSET OR FUND BALANCE EXCESS OF REVENUES OVER EXPENSES, OR NET MARGIN OF $24,654,000, IS ALLOCATED TO THE 11 MEMBER COOPERATIVES BASED ON SALES. THIS IS ONLY AN ALLOCATION OF PATRONAGE CAPITAL. NO ACTUAL PAYMENT IS MADE TO THE MEMBERS. THIS ALLOCATION OF PATRONAGE CAPITAL IS SHOWN AS A FUNCTIONAL EXPENSE IN PART IX, NUMBER 4, PER FORM 990 INSTRUCTIONS EFFECTIVE FOR 2012 REPORTING. SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION DOES NOT INCLUDE THIS ALLOCATION OF PATRONAGE CAPITAL AS AN EXPENSE FOR FINANCIAL REPORTING. DURING 2015, PATRONAGE CAPITAL AMOUNTING TO $7,609,373 WAS RETIRED. FORM 990, PART XII, LINE 2C: THERE WERE NO CHANGES IN THE PROCESS FOR THE 2015 TAX YEAR.