Empire Electric Association, Inc. members received a patronage capital credit refund during May 2012. The size of the refund corresponded to a combination of the amount of money each member paid for electricity used between 1990 and 2011 and per-member benefits, like interest earned on cash investments, according to a written release from Empire Electric.
The cooperatives Board of Directors voted to refund $429,472.34 in patronage capital. Including this retirement, the cooperative has refunded $17,486,205 to its members since incorporation in 1939.
Patronage capital refunds are the method electric cooperatives use to return margins to members. These refunds differentiate cooperatives from other types of utilities who pay dividends to investors instead of members.
The electricity payments made by members above the cost of providing electric service is placed into a patronage capital account in each members name in proportion to the members contribution to the cooperatives margins. This capital, along with borrowed funds, can be used to finance improvements such as replacement and/or upgrades of electrical lines, poles, transformers and substations.
The cooperative invests the margins contributed by each member-owner back into Empires system. The margins build members equity to reduce the amount of money the cooperative has to borrow. This allows the cooperative to maintain system reliability at the highest level and helps keep rates reasonable.
Members of Empire choose how to receive their capital credit refund. They have the choice of donating to local organizations, receiving a credit on their bill, or being mailed a check. The selections can be changed at any time the member chooses. Active members receive a credit on their bill unless they chose a different option.
Capital credits are issued in the name of the person or business listed on the account. In some instances the person is deceased or has moved without leaving a forwarding address. Please notify the cooperative if you are aware of a similar circumstance.
If customers have questions about this capital credit refund, please contact the main office at 565-4444 or long distance at 800-709-3726. Empire Electric Association, Inc. thanks members for their patronage and for the opportunity to provide them with electric service.
