Co-op Members Receive $380,000 in Capital Credits
It’s time for you to get the credit —capital credits, that is― for helping build, sustain, and grow your local electric cooperative. This December, Broad River Electric Cooperative retires – or pays by cash or credit –$382,772.81 to thousands of members like you that are served by the co-op.
When you signed up to receive electric service from Broad River Electric Cooperative, you became a member of an electric utility. While investor-owned utilities return a portion of any profits back to their shareholders, electric co-ops operate on an at-cost basis. So instead of returning leftover funds, known as margins, to folks who might not live in the same region or even the same state as you do, Broad River Electric Cooperative allocates and periodically retires capital credits (also called patronage dividends, patronage refunds, patronage capital, or equity capital) based on how much electricity you purchased during a year.
This year, members from 1993 and 1994 receive capital credits retirements through either a bill credit on your December 2013 bill (active members) or a check in the mail (inactive), reflecting their contribution of capital to, and ownership of, the cooperative during those years. That may seem like a long time ago. However, those funds helped us keep the lid on rates, reduced the amount of money we needed to borrow from outside lenders to build, maintain, and expand a reliable electric distribution system, and covered emergency expenses.
For more information on this part of the cooperative business, watch the video below or read the following Q & A.