Worked safely with no lost time accidents since November 7, 2005

Converted 6,700 meters to the new TWACS automated meter reading system

Enrolled over 1,200 units in the No Sweat Air-Conditioning program

Significantly reduced energy usage by implementing numerous conservation and efficiency efforts for all Tri-County facilities

Completed an addition to the Eatonton District Office

Recorded a new record winter system peak demand of 104 MW in January

Generated 132,509,703 kWh in Green Power EMC sales since the program began in 2001

Exceeded $610,000 in Operation Roundup contributions since the inception of the program in 2001

Signed contracts for participation in the construction of two new nuclear units at Plant Vogtle and a biomass renewable energy power plant

Received the 2007 Award of Excellence for Current Lines, the cooperative’s newsletter

Set a new sales record of 363,595,420 kWh sold in 2007

The past twelve months brought the following activities and achievements for your cooperative:

2008 Annual Report

“Are you committed to your energy future?

That question above any other defined the past year.”

Board of Directors

Tri-County EMC’s Board of Directors (L-R):Vice Chairman Brenda P. Green, Secretary/Treasurer Tommy Noles, Rev. Charlie Richardson, Chester Mercer, Chairman Tom Thompson, Jr., Marion Nelson, Sammy Hall, Dan Greene and Mike Rainey

CEO C. Hill Bentley and Board of Directors

Chairman Tom Thompson, Jr. at Plant Scherer. In the

next ten years, Georgia cooperatives must nearly

double the existing electric generation capacity.

Are you committed to your energy future? That question above any other defi ned the past year. In a year of dramatically

rising energy, transportation and material costs, your cooperative’s leadership has worked to minimize the impact on rates while seeking intel-ligent solutions for our pressing energy issues.

It’s no secret that the years of plentiful energy supply in Georgia are nearly over. In the next ten years, Georgia cooperative’s must double the existing electric generation capacity to keep up with growing energy needs. Tri-County’s staff and board of directors are actively working to ad-dress these needs. In fact, Tri-County has already elected to be a part of the two new nuclear generators at Plant Vogtle. And Tri-County is currently considering options for additional coal, natural gas and biomass generation projects.

But we do not see meeting this growth through generation alone. In fact, we’re convinced that changing attitudes and usage habits of electric-ity are critical. The average monthly usage for Tri-County’s residential customers has increased from 873 kWh in 1990 to 1,223 kWh in 2007. Tri-County has challenged all of our members to commit to conserving energy. And we’ve put tools in place for our members to take control of energy usage and future power costs. At

the center of these is No Sweat, a portfolio of demand-side management, rebates and energy audit programs. And we’ve recently restructured residential rates, sending proper price signals that refl ect increasing costs for higher energy usage.

Leading at home is important but so is providing leadership in Washington. Electric cooperatives from across the country are encouraging con-gress to wisely craft energy policy. We’re asking Congress to carefully consider how future legisla-tion will affect our ability to meet future needs. We know we cannot meet growing electricity needs with renewables, conservation and ef-fi ciency alone. But balancing energy needs and environmental goals is critical if electric rates are to remain affordable.

So we return to the question, “Are you commit-ted to your energy future?” Meeting the goals of affordable, reliable electricity will require a multi-pronged, team approach. As we always have, Tri-County EMC will work hard to address the challenges the future holds. We will continue to make tools such as conservation and energy-effi ciency products and renewable energy avail-able. We challenge you to commit to making a difference by utilizing these valuable resources to take control of your energy usage and to be a part of your energy future.

Executive Message

2008 In Review

Tri-County EMC was created to serve our members. The past year centered around developing new

generation resources for the future, work-ing to control costs and continuing to bring better service to our members through new programs and technological innova-tion. Meeting future capacity needs for a rapidly growing cooperative will prove one of our biggest challenges in the next few years. Work is well underway on securing

future capacity needs, including biomass and other renewable energy sources. And Tri-County is infl uencing change among our employees, our members, our elected offi cials and the general public in leading energy effi ciency and conservation efforts by example.

Like most everyone, rapidly increasing costs impacted the cooperative in recent months. The cooperative’s operating costs are about 16% of the budget, versus 66% for wholesale power costs. Compared to the fi rst fi ve months of 2007, transporta-tion costs for 2008 are up 36%. The costs of materials have increased 9% over the same period. In September, Tri-County announced increases in residential and commercial rates, outdoor lighting rates and service fees.

But in a continued commitment to deploy technology and increase service, Tri-Coun-ty continues to install new TWACS smart meters, upgrade our distribution system, and investigate new services. In March, Tri-County held a ribbon cutting to cel-ebrate the opening of an addition to the Eatonton district offi ce. The new facility will house a new control center and engineer-ing and operations offi ces. Putnam County is currently the fastest growing county served by the cooperative.

Tri-County’s service area continues to grow as new accounts are added and con-sumers continue to add electrical load in homes and businesses. In the past year, Tri-County was also selected to serve a new high school in Putnam County, an elementary school in Jones County and a new jail facility in Baldwin County.

Tri-County EMC’s Senior Staff (left to right) Lee Marsh, Manager of Engineering; Dawn Haskins, VP/CFO; Beverly Smith, Administrative Assistant; Donald Appling, Manager of Construction and Mainte-nance; and Greg Mullis, VP of Energy Services.

What is Georgia’s fi rst fuel? Tri-County EMC contends it should be conservation and

energy effi ciency. “It’s cheaper to con-serve energy than to build new power plants,” says Tri-County EMC CEO C. Hill Bentley. ”That’s why we started the No Sweat Program.” Building one new kW of coal generated electricity, the capac-ity needed to power ten 100 watt light bulbs, costs around $4,000. If building a new nuclear power plant, the cost per kW rises to over $8,000. “So by reducing our system’s peaks for energy needs, we can save millions of dollars by delaying or eliminating the need for some new power plant construction.”

The cornerstone of the No Sweat program is an air-conditioning demand manage-ment system that briefl y pauses central air-conditioners and heat pumps on hot weekday afternoons from June to Sep-tember. Since June of 2008, about 1,200 of the No Sweat devices have been enrolled by our members for residences across Tri-

County’s service territory. And the system is already making an impact by reducing Tri-County’s 2008 peak demand.

“Since the air-conditioner is paused for only a few minutes at a time, and the indoor blower continues to run, most cus-tomers don’t know we’ve operated the system,” says Energy Services Representa-tive Jonathan Stewart. “And, participating customers get a $25 rebate every year and savings on future energy costs.”

The No Sweat Air-Conditioning program is operated using the cooperative’s modern TWACS (Two-Way Automated Commu-nication System) metering system, which communicates through the power lines. “No Sweat is one example of how we’re using technology to address future energy needs through conservation instead of the construction of new power plants,” says CEO Bentley. “It’s also an example of how we’re partnering with our members to ad-dress future energy issues together.”

Tri-County EMC’s Jonathan Stewart records data from a central air-conditioner with a newly installed No Sweat switch.

In 2008, Tri-County EMC introduced insu-lation rebates as a part of the No Sweat effi ciency program. Participating mem-

bers earn up to $150 in rebates toward the purchase and installation of attic insula-tion. Some of the fi rst participants were Tim and Sandra McKinney of Putnam County.

“We knew we needed to do something with our attic. We were weighing the op-tions when we heard about the Tri-County rebate program,” said Tim McKinney, who installed blown cellulose to bring his attic insulation up to R-30. “We can already tell a difference in the comfort level upstairs. We’re excited to see what a difference it makes in our bills.”

The McKinneys are part of a growing number of cooperative members taking steps to make a difference. “We’ve heard cooperative employees talk about fu-ture energy issues, and we’re concerned about it,” says Mrs. McKinney. “We were particularly impressed with the notion that there’s no one solution to the issue and that all of us have to take part.”

Conservation and energy effi ciency are two of the tools Tri-County EMC is using to ensure an adequate supply of energy for tomorrow. “These programs fi t together very well,” says Vice President of Energy Services Greg Mullis. “Conservation means changing habits to use less energy. Energy effi ciency means using new technology or better practices to use less energy to complete the same function.”

On a small scale example, energy ef-fi ciency might mean replacing incan-descent bulbs with compact fl uorescent lamps, which use 75% less energy to create the same amount of light. Conservation means turning those lights off when we don’t need them. “We’re trying to change attitudes about energy usage,” says Mullis. “We provide extensive training for our en-ergy professionals, participate in a national task force on energy effi ciency and make every possible tool available to assist our members. We need a commitment from our members to use those tools and to change usage habits.”

Tri-County EMC’s Michelle Scott inspects newly installed attic insulation at the home of Tim and Sandra McKinney (inset photo).

American Legion Auxiliary, Unit 523 $600Baldwin County 4-H Club 1,000Baldwin Co. Foster/Adopt Parent’s Association 750Boys & Girls Club of Baldwin & Jones Counties 2,000Changing Stations Ministry (2) * 6,690City of Gray Jones County Volunteer Fire Dept. 900Compassionate Care Clinic 1,500Dames Ferry Elementary * 1,000Eatonton Police Department * 4,000GC&SU American Democracy Project 1,000GCSU GIVE Center 2000Georgia Military College 3,000Habitat for Humanity of Putnam County* 3,000Haddock Baptist Church (2)* 5,000Holt’s School Inc. 1,250Hope Missions 1,500JACOR Foundation, Inc. 2,000Jones County 4-H (2) 2,600Jones County 4-H SAFE Shotgun Team 600Jones County DFCS* 2,500Jones County Fire Department - Station 5 1,000

KAIROS at Men’s State Prison 1,000Lockerly Arboretum Foundation Inc. 2,500Maranatha Outreach Inc.* 2,500Middle Georgia Community Action Agency 3,000Muscular Distrophy Association, Inc. 2,400New Corinth GG Baptist Church* 2,500New Damascus Baptist Church* 2,300New Salem Baptist Church* 1,000Northridge Baptist Church* 3,000Oconee Area Pregnancy Center (2) 2,500Operation Early Intervention 800Oconee Regional Chapter of Project Linus 1,500Putnam County 4-H Club 1,500Putnam Elementary Green Thumb Garden Club 1,500Santa’s Miracle Fund: GIVE Center 2,500Scholarships for eight students* 4,000Sincerity Lodge #430 Free & Accepted Masons 2,400Union Chapel UMC * 1,600Total $82,390

*denotes application on behalf of individual(s)

The following organizations received funds from the Tri-County EMC Foundation since September 2007:

We all sleep better knowing fi re-men are protecting us. Most of the communities served

by Tri-County EMC depend on volunteer fi remen. Those volunteers depend on local fundraising to provide equipment.

In 2008, the Gray Fire Department needed an infrared camera, and thanks to con-tributions from Tri-County members, the Tri-County EMC Foundation and Operation Roundup, funds were there to help.

“When the fi rst Gray Fire Department truck rolls, there’s an infrared camera on board,” says Kevin Milton, a volunteer fi re-man in Gray. “This infrared camera is the most expensive piece of equipment we carry. It’s there to protect us, to help us fi ght fi res and to help us fi nd victims.”

Infrared cameras see temperature dif-ferences, even through walls, fl oors or blinding smoke. The primary function is the fi refi ghter’s safety. “We can fi nd the fi re before we enter a structure, and we can see fi remen or civilians trapped inside.”

With an average contribution of just fi fty cents per month or six dollars each year, Operation Roundup raised $76,095 in the last year and $610,000 since the introduc-tion of the program in 2001. From purchas-

ing basic needs for house fi re victims, to ensuring that the fi remen who respond are properly equipped, Operation Roundup funds are an important and generous way cooperative members are making a differ-ence in our community.

Gray firemen Kevin Milton (background

with camera) and Teresa Milton

demonstrate an infrared camera.

Operation Roundup

1960 $7.60

1970 $11.78

1980 $41.43

1990 $72.28

2000 $91.05

2006 $118.52

2007 $119.86

1960 319

1970 576

1980 755

1990 873

2000 1,121

2006 1,229

2007 1,223

1960 3.50

1970 4.50

1980 5.60

1990 7.00

2000 7.84

2006 7.98

2007 8.05

2.391960

2.311970

5.551980

8.211990

8.122000

9.642006

9.802007

1960 3,055

1970 4,783

1980 8,090

1990 12,580

2000 17,185

2006 20,049

2007 20,751

OperatingCosts

MarginsPower Costs

14.5%

15.8%

4.1%

Interest &Depreciation

65.6%

Total Number of Accounts

Meters Per Mile of LineWhere Your Energy Dollar Goes

Residential Cost Per kWh (cents)

Average Monthly Residential kWh Usage

Average Monthly Residential Bill

Statistical Snapshot

Tri-County EMC is audited by the independent accounting fi rm of McNair, McLemore, Middlebrooks & Co., LLP. A complete fi nancial statement may be obtained by calling Tri-County EMC at (478) 986-8108 or 1-866-254-8100, ext. 8108.

Operating Revenue and Capital $36,120,250 $34,275,584 Operating Expense Cost of Power Purchased 24,133,217 22,600,462 Operating the Electric System 5,892,723 5,634,407 Depreciation 2,593,658 2,365,676 Interest on Loans 2,704,702 2,500,759 Total Cost of Electric Service 35,324,300 33,101,304 Patronage Capital and Operating Margins 795,950 1,174,280 Non-Operating Margins 33,932 6,798 G&T Capital Credits 352,095 331,543 Other Capital Credits 213,870 147,154 Total Patronage Capital or Margins $1,395,847 $1,659,775

2008 2007

Assets Total Utility Plant $86,812,107 $79,597,098Less Depreciation 13,094,919 13,067,306Net Utility Plant Book Value 73,717,188 66,529,792 Investments in Associated Organizations 9,063,173 8,560,420 Cash and Reserves 506,245 556,124 Owed to EMC on Account and Notes 1,700,448 1,825,775 Material in Inventory 431,590 501,569 Expenses Paid in Advance 27,210 33,184 Deferred Debits and Other Assets 348,399 370,163 Total Assets $85,794,253 $78,377,027 Equities and Liabilities Consumer Deposits $944,270 $860,520 Membership, Patronage Capital, Other Equities 26,059,679 25,089,520 Long-term Debt 51,719,399 45,097,518 Notes and Accounts Payable 5,993,658 6,279,569 Other Current and Accrued Liabilities 875,645 857,142 Non-current Liabilities 201,602 192,758 Total Equities and Liabilities $85,794,253 $78,377,027

20072008

Financial Summary

Balance Sheet(as of April 30)

Statement of Operations(for the years ended April 30)

P.O. Box 487Gray, GA 310321.866.254.8100478.986.8100www.tri-countyemc.com

Tri-County ElectricMembership Corporation