2013-07-15T15:40:45-05:00 2012-12-31 990 2012-01-01 640367992 SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION SOUT 6012682083 PO BOX 15849 HATTIESBURG MS 394045849 RAYMOND HALEY 6012682083 2013-06-14 2012 2016-02-24 21:20:13Z JAMES COMPTON PO BOX 15849 HATTIESBURG MS 394045849 771868875 0 X HTTP://WWW.SMEPA.COOP/ X 1941 MS PROVIDE AND TRANSMIT THROUGH GENERATION AND PURCHASE OF ELECTRICITY, WHOLESALE ELECTRICITY TO 11 MEMBER OWNER COOPERATIVES, EACH SERVING RETAIL CONSUMERS. 22 22 405 0 0 0 0 0 766642929 771844531 40007 24344 0 0 766682936 771868875 101000 70000 29388000 42513099 34298536 35224299 0 0 0 702895400 694061477 766682936 771868875 0 0 1393255444 1893954393 1155530175 1613716025 237725269 280238368 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 MORE THAN 400,000 METERS IN MISSISSIPPI. SOUTH MISSISSIPPI ELECTRIC AND THE 11 MEMBER SYSTEMS ARE CONSUMER-OWNED, NON-PROFIT BUSINESSES. DURING 2012 SOUTH MISSISSIPPI ELECTRIC PROVIDED MEMBER SYSTEMS WITH 9,837,766 MWH OF ENERGY. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 405 1 0 0 0 0 0 754507654 17336877 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 39401 BILLY BERRY 5.20 X 16800 0 0 ROY C GRAFE 4.20 X 16800 0 0 WILLIAM H HARDIN 4.00 X X 22400 0 0 HARVEY LEE HEDEGAARD 4.30 X 18400 0 0 KEITH W HURT 7.00 X 17600 0 0 CHARLES A LOPEZ 3.00 X 8800 0 0 DON JORDAN 10.40 X X 24000 0 0 WA KENDRICK 2.80 X 12800 0 0 GREG KITCHENS 3.90 X 12000 0 0 MACK MAULDIN 2.60 X X 23200 0 0 PERCY MCCAA 6.20 X 22400 0 0 JOHN W MOSLEY 6.30 X 18400 0 0 BOB OCCHI 3.10 X 21600 0 0 GORDON REDD JR 2.90 X 9600 0 0 JOHN B REED 5.00 X 16000 0 0 RW ROBERTSON 3.50 X 18400 0 0 JOE SHELTON III 3.70 X 3200 0 0 CH SHELTON 5.20 X 20800 0 0 JERRY LAMAR SISCO 2.40 X 16000 0 0 RANDY SMITH 2.20 X 18400 0 0 WILLIAM D SMITH 7.00 X 18400 0 0 LOUIS S THOMPSON 4.00 X 18400 0 0 RANDY WALLACE 3.80 X 17600 0 0 HENRY C WATERER JR 9.50 X X 32000 0 0 JAMES COMPTON 50.00 X 772266 0 137587 RAYMOND HALEY 45.00 X 233790 0 82385 MARCUS WARE 50.00 X 276529 0 100039 NATHAN BROWN 50.00 X 264181 0 115242 TERRY LEE 45.00 X 198595 0 141421 JAMES B EDWARDS 68.00 X 185704 0 52172 BRAD WOLFE 40.00 X 182933 0 55930 ROGER SMITH 45.00 X 154435 0 90712 JERRY PIERCE 40.00 X 141577 0 43656 2834010 0 819144 27 0 1 0 BURNS & MCDONNELL ENGINEERING PO BOX 411883 KANSAS CITY MO 641411883 ENGINEERING & CAP PROJ MGT 12982487 MIDWEST UNDERGROUND TECHNOLOGY 2626 MIDWEST COURT CHAMPAIGN IL 61822 MICROWAVE NETWORK CONST. 9680686 GENERAL ELECTRIC PO BOX 643449 PITTSBURG PA 15264 REPOWERING PROJECT EQUIP 7838837 THE SAXON GROUP 790 BROGDON RD SUWANEE GA 30024 REPOWER PROJ CONST SVC 6281481 URS CORPORATION PO BOX 201008 AUSTIN TX 787201088 ENG, PROC. CONST, PLANT UPGR 3811219 62 REVENUE FROM MEMEBERS 221000 754507654 754507654 PROGRAM RELATED INVESTMENTS 221000 11148334 11148334 REVENUE FROM NON-MEMBERS 221000 6031120 6031120 BYPRODUCT SALES & ROYALTIES 221000 157423 157423 771844531 24344 0 24344 24344 24344 771868875 771868875 0 0 70000 42513099 2353678 22564293 5032672 3053252 2220404 514760 254418 92877 693800 82175 1416516 575523 337091 43807572 47460780 2090366 POWER PURCH FOR RESALE 426055290 COAL, NAT. GAS, NUCLEAR 108088510 GENERATION PLANT O & M 31179085 TRANS SYSTEM O & M 24607554 6805160 771868875 2375884 19479282 30360985 2684384 62407533 64512604 65279626 97205836 94358451 70598245 2109278385 693689614 1083252313 1415588771 55126116 223696338 94536 188933 1393255444 1893954393 84350487 68209945 55605000 51125000 757012846 856839441 43725000 451562000 214836842 185979639 1155530175 1613716025 X 0 0 0 0 237725269 280238368 237725269 280238368 1393255444 1893954393 X 0 42513099 X X 0 1 X 1 1 1 35329436 35329436 298629170 151829223 146799947 6144442 2144038 4000404 1629427694 478626865 1150800829 139747643 61089488 78658155 1415588771 MISSISSIPPI POWER CO. KEMPER PROJECT DEPOSIT 162526390 C CAPITAL TERM CERTIFICATES 6250764 C ECONOMIC DEVELOPMENT PROJECTS 2795802 C DEBT SERVICE RESERVE 4844481 C NUCLEAR DECOMMISSIONING TRUST 43219731 F CAPITAL STOCK 1370784 C OTHER 2688386 C 223696338 CAPITAL LEASE OBLIGATION 2074599 DEFINED MEDICAL PLAN FOR RETIREES 8722600 NUCLEAR DECOMMISSIONING OBLIGATION (ARO) 53152305 DEFERRED CREDITS - GAS HEDGING 17153640 DEFERRED CREDITS - POWER COST ADJUSTMENT 21786477 DEFERRED CREDIT - ECONOMIC DEVELOPMENT GRANTS 3878495 DEFERRED CREDIT - CLEAN AIR ALLOWANCES UTILIZED 1289671 POWER SUPPLY DEVELOPMENT FUND 25000000 MEMBER ENERGY PREPAYMENTS 43343954 MEDICAL INSURANCE CONTRIBUTIONS 2422192 DEFERRED INTEREST INCOME-MISSISSIPPI POWER COMPANY DEPOSIT 6242169 UNREALIZED GAIN-DECOMMISSIONING TRUST FUND 913537 185979639 760696197 0 760696197 11172678 11172678 771868875 718183097 0 718183097 53685778 53685778 771868875 PART XI, LINE 4B - OTHER ADJUSTMENTS: INCLUDED ON SUPPLEMENTAL INFORMATION PART XII, LINE 4B - OTHER ADJUSTMENTS: INCLUDED ON SUPPLEMENTAL INFORMATION PART XI LINE 4 (B) DESCRIPTION: FORM 990 REVENUE INCLUDES NET GAIN ON ASSET SALES. AUDITED FINANCIALS INCLUDE THIS $24,344 AS A "CONTRA-EXPENSE". AUDITED FINANCIALS INCLUDE INTEREST INCOME AND PATRONAGE CAPITAL INCOME AS SEPARATE LINE ITEMS FOLLOWING OPERATING EXPENSES: FORM 990 INCLUDES THIS AMOUNT, $11,148,334, IN REVENUES. PART XII LINE 4(B) PART XIII DESCRIPTION: SEE EXPLANATION FOR PART XII ABOVE. ADDITIONALLY, 2012 ANNUAL NET MARGIN ON AUDITED FINANCIALS IS REPORTED AS EXPENSE ON FORM 990 SINCE THE MARGINS ARE ALLOCATED BACK TO MEMBERS AS PATRONAGE CAPITAL ($42,513,100). 1 SOU DELTA PLANNING & DEV PO BOX 1776 GREENVILLE MS 38702 640466158 501(C)(3) 5000 LINEMAN TRAINING SCHOOL COMPETITIVE EDGE 1 CONVENTION CENTER PLAZA HATTIESBURG MS 39401 205162135 501(C)(3) 10000 ECONOMIC DEVELOPMENT STRINGER'S INTERNATIONAL & CROP P PO BOX 250 CLARKSDALE MS 38614 640134798 501(C)(12) 15000 ECONOMIC DEVELOPMENT BF SMITH FOUNDATION PO BOX 257 STONEVILLE MS 38776 640146265 501(C)(3) 25000 ECONOMIC DEVELOPMENT AREA DEVELOPMENT PARTNERSHIP PO BOX 751 HATTIESBURG MS 39403 640219645 501(C)(12) 15000 ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT 2 3 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 - ITEM 3: SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION ISSUED PAYMENT TO COAHOMA ELECTRIC POWER ASSOCIATION, A MEMBER DISTRIBUTION COOPERATIVE. COAHOMA ELECTRIC POWER ASSOCIATION IN TURN ISSUED PAYMENT TO THE ENTITY DENOTED IN COLUMN 1(A). EIN, ADDRESS, AND IRC SECTION REPORTED IN PART II ARE THOSE FOR COAHOMA ELECTRIC POWER ASSOCIATION. PART II - ITEM 4: SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION ISSUED PAYMENT TO DELTA ELECTRIC POWER ASSOCIATION, A MEMBER DISTRIBUTION COOPERATIVE. DELTA ELECTRIC POWER ASSOCIATION IN TURN ISSUED PAYMENT TO THE ENTITIES DENOTED IN COLUMN 1(A). EIN, ADDRESS, AND IRC SECTON REPORTED IN PART II ARE THOSE FOR DELTA ELECTRIC POWER ASSOCIATION. PART II - ITEM 5: SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION ISSUED PAYMENT TO PEARL RIVER VALLEY ELECTRIC POWER ASSOCIATION, A MEMBER DISTRIBUTION COOPERATIVE. PEARL RIVER VALLEY ELECTRIC POWER ASSOCIATION IN TURN ISSUED PAYMENT TO THE ENTITIES DENOTED IN COLUMN 1(A). EIN, ADDRESS, AND IRC SECTON REPORTED IN PART II ARE THOSE FOR PEARL RIVER VALLEY ELECTRIC POWER ASSOCIATION. 1 X X X 0 1 0 JAMES COMPTON 463943 0 51266 0 257057 0 122684 0 14903 0 909853 0 0 0 RAYMOND HALEY 218405 0 10703 0 4682 0 68853 0 13532 0 316175 0 0 0 MARCUS WARE 263847 0 10861 0 1821 0 85675 0 14364 0 376568 0 0 0 NATHAN BROWN 249828 0 11356 0 2997 0 101464 0 13778 0 379423 0 0 0 TERRY LEE 185239 0 8099 0 5257 0 128383 0 13038 0 340016 0 0 0 JAMES B EDWARDS 174094 0 6559 0 5051 0 39492 0 12680 0 237876 0 0 0 BRAD WOLFE 173018 0 7604 0 2311 0 43106 0 12824 0 238863 0 0 0 ROGER SMITH 146394 0 4993 0 3048 0 78158 0 12554 0 245147 0 0 0 JERRY PIERCE 136799 0 2768 0 2010 0 36342 0 7314 0 185233 0 0 0 SUPPLEMENTAL INFORMATION PART III SEE 409A DOCUMENT CORRECTION STATEMENT ATTACHED TO RETURN 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 2012 FORM 990 WAS REVIEWED WITH THE AUDIT COMMITTEE AND REPORTED TO THE BOARD OF DIRECTORS. ON THE AUDIT 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 A SALARY SURVEY WAS CONDUCTED IN 2012 BY AN INDEPENDENT ENTITY. FIVE SIMILARLY SIZED GENERATION AND TRANSMISSION COOPERATIVES WERE SURVEYED. THE FOLLOWING POSITIONS WERE SURVEYED: GENERAL MANAGER/CEO, ASSISTANT GENERAL MANAGER, CHIEF ENGINEERING OFFICER, CHIEF FINANCIAL OFFICER, CHIEF OF TRANSMISSION, AND CHIEF OPERATING OFFICER. THE BOARD OF DIRECTORS WAS PROVIDED THE SALARY SURVEY RESULTS. THE BOARD DETERMINES THE SALARY FOR THE GENERAL MANAGER/CEO. THE GENERAL MANAGER/CEO UTILIZED THE SURVEY FOR KEY EMPLOYEES. ADDITIONALLY, THE GENERAL MANAGER/CEO ADVISES THE BOARD OF AVERAGE ANNUAL SALARY INCREASE AS PART OF THE ANNUAL BUDGET APPROVAL PROCESS. APPROVAL OF THE ANNUAL BUDGET IS DOCUMENTED IN 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 XII, LINE 2C: THERE WERE NO CHANGES IN THESE PROCESS FOR THE 2012 TAX YEAR. OTHER CHANGE IN ASSET OR FUND BALANCE FORM 990, PART XI, LINE 9 - EXCESS OF REVENUES OVER EXPENSES, OR NET MARGIN, 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. STATEMENT REQUIRED UNDER SECTION XII.B OF IRS NOTICE 2010-6 409A DOCUMENT CORRECTION UNDER SEC. IV.B, VII.C & VII.E OF NOTICE 2010-6 SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION (THE TAXPAYER)HEREBY ATTACHES TO ITS 2012 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 THE SERVICE PROVIDER (HEREINAFTER COLLECTIVELY REFERRED TO AS THE SERVICE PROVIDER) AND THE DOCUMENT FAILURES AFFECTING THE SERVICE PROVIDER ARE: JAMES N. COMPTON IV.B, VII.C AND VII.E (2) THE NONQUALIFIED DEFERRED COMPENSATION PLANS WITH RESPECT TO WHICH SUCH FAILURES HAVE OCCURRED ARE (A) THE EMPLOYMENT AGREEMENT AND DEFERRED COMPENSATION PLAN WITH JAMES N. COMPTON, EMPLOYEE (FAILURES CORRECTED UNDER SECTIONS IV.B, VII.C AND VII.E); AND (B) THE SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION DEFERRED COMPENSATION PENSION RESTORATION PLAN (FAILURE CORRECTED UNDER SECTION VII.E). (3) EACH DOCUMENT FAILURE IS ELIGIBLE FOR THE CORRECTION UNDER THE TERMS OF NOTICE 2010-6 AND IS CORRECTED UNDER SECTIONS IV.B, VII.C AND VII.E THEREOF, AS APPLICABLE. THE TAXPAYER HAS TAKEN ALL ACTIONS REQUIRED AND OTHERWISE MET ALL REQUIREMENTS FOR CORRECTION OF EACH DOCUMENT FAILURE AS OF DECEMBER 31, 2012, THE LAST DAY OF THE TAXPAYER TAXABLE YEAR IN WHICH THE CORRECTION IS MADE. THE DATE OF CORRECTION OF EACH DOCUMENT FAILURE IS APRIL 3, 2012. 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 COMBINED PRESENT VALUE OF THE AMOUNT INVOLVED IN EACH DOCUMENT FAILURE DESCRIBED IN SECTIONS IV.B, VII.C AND VII.E OF NOTICE 2010-6 IS APPROXIMATELY TWO HUNDRED FIFTY-ONE THOUSAND TWO HUNDRED THIRTY-ONE AND 80/100 DOLLARS ($251,231.80) AS OF APRIL 3, 2012. 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.