2015-07-14T14:40:08-05:00 2014-12-31 631035228 Jackson Thornton & Co PC P O Box 96 Montgomery AL 361010096 990 2014-01-01 640169075 Coast Electric Power Association COAS 2283637000 P O Box 2430 Bay St Louis MS 39521 Robert J Occhi President & CEO 2283637000 2015-07-01 1 Patrick Cooper P00856177 3348347660 2015-06-15 2014 2016-02-25 16:41:14Z Robert J Occhi P O Box 2430 Bay St Louis MS 39521 207234170 0 X www.coastepa.com X 1937 MS To provide electricity to rural areas of Hancock, Harrison, and Pearl River counties. 9 9 292 0 0 0 0 0 191422921 204230870 198974 364219 2063614 2589684 193685509 207184773 0 0 12647928 14577072 1280064 1299329 0 0 0 179757517 191308372 193685509 207184773 0 0 335990497 341830060 184415486 177999029 151575011 163831031 We exist to provide our member/owners superior service and dependable electricity at the lowest possible price, and to improve the economy and quality of life in our community. 0 0 Utilizing 6,821 miles of electric distribution lines, Coast Electric Power Association provided 1,722,746,752 Kilowatt Hours of electric energy to approximately 79,000 residential, commercial and industrial members located in Harrison, Hancock and Pearl River counties (Mississippi). 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 66 0 1 292 1 0 0 0 0 0 198995928 5657828 0 X 9 9 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Robert J Occhi 2283637000 18020 Hwy 603 Kiln MS 39556 James Ginn Director/Chairman 11.00 X 39500 0 0 Gilbert Arceneaux Director/Vice Chairman 10.00 X 39900 0 0 Frank McClinton Director/Secretary/Treasurer 11.00 X 38100 0 0 James Baldree Director 10.00 X 38100 0 0 Richard Dossett Director 11.00 X 38100 0 0 Gordon Lee Director 6.00 X 32100 0 0 Charles Lopez Director 12.00 X 38900 0 0 William Mooney Director 11.00 X 38500 0 0 Gordon Redd Jr Director 10.00 X 37300 0 0 Robert J Occhi President & CEO 50.00 X 487095 0 18876 John Holston VP of Financial & Administration 43.00 X 221298 0 24305 Charles S Brown VP of Engineering 50.00 X 186135 0 21120 Steve Pitzer VP of Harrison County Operations 40.00 X 184159 0 19480 Louis Lee Jr VP of Pearl River County Operations 43.00 X 177856 0 -896 Newton G Johnson VP of Hancock County Operations 45.00 X 176561 0 12144 Clement Ladner VP of Safety 45.00 X 181941 0 11874 Marilyn Sefton VP of HR 50.00 X 177413 0 16235 2132958 0 123138 10 0 1 0 S&S Line Service Inc PO Box 485 Laurel MS 39441 Right of Way Contractor 2031246 Southeastern Data Coop 100 Ashford Center North Suite 500 Atlanta GA 30338 Software Provider 974994 Asplundh Tree Expert Co 1700 Solutions Center Chicago IL 60677 Right of Way Clearing 883247 DCL Construction LLC 26071 Highway 603 Kiln MS 39556 Line Locates 624418 Service Electric Company PO Box 277790 Atlanta GA 30384 Substation Builder 508340 12 Sales of Electricity 221000 198995928 198995928 Patronage Capital 221000 5234942 5234942 204230870 243979 243979 2580414 0 2580414 2580414 2580414 120240 0 120240 120240 120240 58667 49397 9270 9270 207184773 204240140 0 2944633 X 14577072 1299329 3885051 9201697 Cost of Power 142648321 Dist Exp - Maintenance 11188063 Admin & Gen Expenses 8023410 Dist Exp - Operations 7001483 9360347 207184773 1682652 1694980 22400521 20737715 20003 6189 1964360 2128041 505008 409435 308158278 75758791 228824223 232399487 59302293 63711266 21291437 20742947 335990497 341830060 25584002 20240710 103437685 101338251 55393799 56420068 184415486 177999029 X 470208 471998 0 0 151104803 163359033 151575011 163831031 335990497 341830060 X 0 12256020 X X 0 1 X 1 0 4274745 4274745 28594145 5004695 23589450 275289388 70754096 204535292 232399487 Patronage Capital - SMEPA 57499894 C Patronage Capital - NRUCFC 957316 C Patronage Capital - EPA's of Mississippi 556660 C Patronage Capital - Arkansas Electric 27324 C Patronage Capital - NRTC 4748 C Patronage Capital - SEDC 252683 C Captial Term Certificates 1965096 C Patronage Capital - CoBank 509740 C Patronage Capital - Federated Rural Electric Insurance 490133 C Investments in Economic Development Projects 1445661 C Other Investments in Associated Organizations 2011 C 63711266 Deferred Debits 970680 Regulatory Asset 15007467 Restricted Investments 4764800 20742947 Accumulated Postretirement Benefit Obligation 14600800 Fair Value of Swap Agreement 7575788 Go Zone Bonds Payable 32395000 Regulatory Liability 1848480 56420068 X 207184773 0 207184773 0 207184773 192607701 0 192607701 14577072 14577072 207184773 Part X, Line 2: The Association is exempt from income taxes under Internal Revenue Code Section 501(c)(12). Management has evaluated the Association's tax positions and concluded that the Association has taken no uncertain tax positions that require adjustment to the financial statements. With few exceptions, the Association is no longer subject to income tax examinations by the federal, state, or local tax authorities for years before 2011. Part XI, Line 2d - Other Adjustments: Reclassification of income items included in expense on financial statement Part XII, Line 4b - Other Adjustments: Assignment of Current Year Margins to Members 14,577,072. X X X 0 1 0 Robert J Occhi President & CEO 372458 0 79733 0 34904 0 1298 0 17578 0 505971 0 0 0 John Holston VP of Financial & Administration 180266 0 39126 0 1906 0 3061 0 21244 0 245603 0 0 0 Charles S Brown VP of Engineering 151226 0 33447 0 1462 0 -628 0 21748 0 207255 0 0 0 Steve Pitzer VP of Harrison County Operations 149898 0 32435 0 1826 0 -1584 0 21064 0 203639 0 0 0 Louis Lee Jr VP of Pearl River County Operations 144892 0 31008 0 1956 0 -8576 0 7680 0 176960 0 0 0 Newton G Johnson VP of Hancock County Operations 143656 0 31008 0 1897 0 -1605 0 13749 0 188705 0 0 0 Clement Ladner VP of Safety 146662 0 31008 0 4271 0 4611 0 7263 0 193815 0 0 0 Marilyn Sefton VP of HR 142280 0 31008 0 4125 0 -1047 0 17282 0 193648 0 0 0 Part I, Line 4b Robert J. Occhi - $25,236 Form 990, Part VI, Section A, line 4 Bylaws: Election of officers changed from the January meeting of the Board of Directors to the first meeting of the Board of Directors each year after the Annual Meeting in November. Officers will take office the first of June of the following year. Articles of Incorporation: Changed annual meeting to the first Thursday of November each year and changed the office of the corporation and the post office address from Bay St. Louis, MS to Hancock County, MS. Form 990, Part VI, Section A, line 6 Because Coast Electric Power Association is chartered and incorporated under Mississippi law as a not-for-profit cooperative, the charter requires that each person receiving electric service from the association be a member. Form 990, Part VI, Section A, line 7a At each annual meeting of the members, one-third (1/3) of the total number of directors shall be elected by ballot, by and from the members, to serve for a term of three (3) years as provided by law. If the election of directors shall not be held at the annual meeting, or if such annual meeting is not held, each director shall hold office until their successors shall have been elected and qualified. Form 990, Part VI, Section A, line 7b The business and affairs of the Association are managed by the Board of Directors which exercises all of the powers of the Association except such as are by law, or by the Certificate of Consolidation of the Association, or by the bylaws, conferred upon or reserved to the members. Form 990, Part VI, Section B, line 11 Once the Form 990 is completed, the VP of Financial & Administrative Services and the accounting department supervisor reviews the Form 990. After the Form 990 has been reviewed by these individuals, each member of the board of directors receives a copy of the form for his/her review. The VP of Financial & Administrative Services and the accounting department supervisor present a general overview of the forms' questions and answers. Once the presentation is complete, the board members are given an opportunity to ask questions. Once all questions have been satisfactorily answered, the President/CEO will sign the e-file authorization form allowing the Form 990 to be transmitted to the Internal Revenue Service. Form 990, Part VI, Section B, line 12c New vendors are reviewed for possible conflicts with directors/officers. Directors/officers are required to report any new affiliations they may enter into. Form 990, Part VI, Section B, line 15 An executive compensation review was presented to the Board of Directors. The following components were included in the review: (1) Compensation Strategy; (2) Total Executive Compensation Philosophy Statement; (3) Elements of a Compensation Program; (4) Detailed Market Data; (5) Form 990 Explanation; (6) Discussion of Goal Sharing Programs; (7) Review of Current Benefits and Incentives. A recommendation was made to the Board concerning the range movement for the CEO pay grade based on information from the detailed market survey. The CEO and top management pay is based on a pay for performance system where the performance evaluation "grade" is entered into a comprehensive spreadsheet. The spreadsheet is designed to compute a pay raise based on a matrix of four performance levels (average, good, excellent and outstanding) divided into the lower third, middle third and upper third of the pay range. Form 990, Part VI, Section C, line 19 Coast Electric Power Association's governing documents, conflict of interest policy, and financial statements are available to the public upon request at the main office in Kiln, Mississippi. Form 990, Part IX, Line 4 The instructions to the 2014 Form 990 indicate that organizations exempt under Section 501(c)(12) should report patronage dividends paid to their members in Part IX, Line 4 of the Form 990. Coast Electric Power Association has interpreted the words "patronage dividends paid" in the instructions to mean margins that are assigned or assignable to the members. According to Coast Electric Power Association's bylaws, the net margins of the cooperative are assigned and allocated to the members. Therefore, the amount listed in Part IX, Line 4 represents the entire net margins assignable to the members for the calendar year ended December 31, 2014. Form 990, Part XI, line 9: Change in memberships 1,790. Retirement of capital credits -4,008,507. Actuarial gain (loss) 716,300. Gain on retirement of capital credits 969,365. Assignment of Current Year Margins to Members 14,577,072. Form 990, Part XII, Line 2C Coast Electric Power Association has not changed its process of selection or oversight for the year ended December 31, 2014. Form 990 409A DOCUMENT CORRECTION UNDER IV.B, VII.C & VII.D OF IRS NOTICE 2010-6 STATEMENT REQUIRED UNDER XII.B OF IRS NOTICE 2010-6 Coast Electric Power Association (the "Taxpayer") hereby attaches to its 2014 Form 990 this statement containing the following information required by Section XII.B of IRS Notice 2010-6: (1)The name and taxpayer identification number of each service provider (hereinafter collectively referred to as the "Service Provider") affected by the document failure are: Ronald G. Barnes SSN: Available to the IRS Upon Request Jeremy L. Bond SSN: Available to the IRS Upon Request Steven L. Broussard SSN: Available to the IRS Upon Request Charles Scott Brown SSN: Available to the IRS Upon Request Russell C. Carothers, III SSN: Available to the IRS Upon Request Damali M. Clark SSN: Available to the IRS Upon Request John C. Holston SSN: Available to the IRS Upon Request Newton G. Johnson SSN: Available to the IRS Upon Request Clement L. Ladner SSN: Available to the IRS Upon Request Kendall T. Ladner SSN: Available to the IRS Upon Request Louis D. Lee, Jr. SSN: Available to the IRS Upon Request Bruce G. Marie, Jr. SSN: Available to the IRS Upon Request Eugene T. Moore SSN: Available to the IRS Upon Request Steven R. Pitzer SSN: Available to the IRS Upon Request Marilyn J. Sefton SSN: Available to the IRS Upon Request (2)The nonqualified deferred compensation plans with respect to which such failures have occurred are the Employment Agreements and Deferred Compensation Plans with each of the above-named Service Providers. (3)The document failures are eligible for the correction under the terms of Notice 2010-6 and are corrected under Sections IV.B, VII.C and VII.D thereof, as applicable. The Taxpayer has taken all actions required and otherwise met all requirements for correction of the document failures as of December 31, 2013, the last day of the Taxpayer's taxable year in which the correction is made. The date of correction of the document failures is September 30, 2014. No event causing the inclusion of an amount in income under Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), by the Service Provider has occurred. (4)The approximate present values of the amount involved in the document failures described in Sections IV.B, VII.C and VII.D of Notice 2010-6 as of September 30, 2014 are set forth below. No amount is required to be reported by the Taxpayer as includible in income under Section 409A(a) of the Code as part of the correction and no percentage of the amount involved in each document failure is required to be included in income under Section 409A(a) of the Code as part of the correction. Ronald G. Barnes $32,770 Jeremy L. Bond $7,758 Steven L. Broussard $36,020 Charles Scott Brown $17,716 Russell C. Carothers, III $8,696 Damali M. Clark $2,269 John C. Holston $115,508 Newton G. Johnson $46,419 Clement L. Ladner $40,806 Kendall T. Ladner $8,130 Louis D. Lee, Jr. $56,038 Bruce G. Marie, Jr. $8,061 Eugene T. Moore $8,789 Steven R. Pitzer $93,888 Marilyn J. Sefton $28,349