Message from CEO Julius Hackett

Tri-County Electric Cooperative faced extraordinary
challenges in 2023 and 2024 as three hurricanes
and one tornado caused widespread damage to
our electric system. Restoring power safely and as
quickly as possible has always been—and continues to
be—our top priority. Thanks to the dedication of our
employees and the support of mutual aid partners,
we worked tirelessly to restore service and protect our
communities during these unprecedented events.


Storm Recovery Costs and FEMA Reimbursements
The total cost to repair and rebuild damaged portions
of our electric system exceeded $125 million. As a not for-
profit electric cooperative serving predominantly
rural areas, Tri-County Electric Cooperative is eligible to
receive FEMA reimbursements for a significant portion
of these storm-related expenses. Unfortunately, the
reimbursement process has been extremely slow,
and the volume of documentation required has far
exceeded what we believe is reasonable for an agency
created to support disaster-impacted communities.

To date, the cooperative has received only $25 million
in FEMA reimbursements. As a result, we are carrying substantial outstanding debt along with
ongoing interest expenses that requires additional revenue to service this new short term debt.
Following the first hurricane in 2023, we reasonably expected reimbursements to be expedited—
especially since all the counties we serve are designated as fiscally constrained. That has not been the
case. These delays are occurring at a time when many of our members are already facing affordability
challenges due to rising costs for everyday goods and services. We recognize this burden and remain
committed to managing costs responsibly while continuing to provide reliable electric service.

Ongoing Advocacy and Federal Reform Efforts
Our members should know that we have an exceptional team of employees and consultants who
meet bi-weekly with FEMA to address ongoing requests for additional documentation and to advocate
on behalf of the cooperative. While this process has been frustrating and time-consuming, we are
encouraged by progress at the federal level—particularly with the FEMA Act of 2025, formally known
as the Fixing Emergency Management for Americans Act of 2025.

This legislation is designed to modernize and streamline FEMA’s disaster response and includes
several provisions that would significantly benefit electric cooperatives. The Act would accelerate
reimbursement timelines, allow recovery of loan interest costs incurred during rebuilding, expand
access to resiliency funding, and provide flexibility to rebuild stronger and more resilient systems
rather than simply replacing damaged infrastructure. These reforms could lower recovery costs,
improve grid resilience, and support faster power restoration following future storms.
We will continue to keep you informed of our progress throughout the year.

Perry District Office Rebuild
Members may notice slower-than-expected progress related to the rebuilding of our Perry District
Office, which was damaged during Hurricane Idalia. The decision to move forward with this project
followed extensive review and discussion by the Board of Trustees.

Importantly, the Perry District Office rebuild qualifies for FEMA assistance covering 75% of the
total project cost. However, FEMA requirements state that if we do not have a viable project with
significant progress by October 2026, we risk losing access to this reimbursement funding altogether.
Many members have asked why this process has taken so long. The answer is straightforward: FEMA
approval timelines are lengthy. For more than 24 months, our team has worked diligently with FEMA
representatives—responding to requests, submitting documentation, and verifying damages—
to meet every requirement necessary to move forward. We are currently awaiting FEMA’s final
authorization, and once it is received, we are prepared to proceed immediately.

We understand that increased rates and large capital projects impact our membership, and we do
not take these decisions lightly. Moving forward with the Perry District Office rebuild now allows us to
leverage significant federal funding rather than placing the full financial burden of the project on our
members—an outcome that would have a far greater negative impact.

We appreciate your patience, understanding, and continued trust as we work through these
challenges. Your cooperative remains committed to transparency, fiscal responsibility, and providing
reliable electric service today and for years to come.