Coast Electric Power Association

“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.”

“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.”

“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.”

“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.”

“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.”

“New vendors are reviewed for possible conflicts with directors/officers. Directors/officers are required to report any new affiliations they may enter into.”

“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.”

“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.”

“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.”

“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.”

“Coast Electric Power Association has not changed its process of selection or oversight for the year ended December 31, 2014.”

“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”