TRUSTEES RETIRE $1.4 MILLION IN PATRONAGE CAPITAL in 2011
Margins of the cooperative are assigned back to Central Rural Electric Cooperative members annually based on their electric purchases from the cooperative.
Margins, known as patronage capital, are retired each year and this process is what allows CREC to be classified as a nonprofit. Patronage capital is used as working capital for a period of time and then is paid back to the members when financially possible.
This year, the board of trustees approved the retirement (return) of $1,312,833 in general patronage capital to the cooperative’s members. Another $87,166 is estimated to be retired throughout the year to the estates of deceased members.
CREC returns patronage capital to members who have been both customers of the cooperative for the longest period of time and to those who have been members the shortest period of time. For this year’s retirement, a portion of the balance of those who received electric service from CREC in 1985, 1986, 1987 and 2010, will receive patronage capital. Certain rate categories will not receive a retirement from those years.
For those who are current CREC members, the retirement appeared as a credit on your September 2011 electric bill. Those who are not current members will receive a check. It is important for you to know that you are a member-owner of the cooperative and receiving patronage capital is a member benefit. Patronage capital is an investment in CREC and represents your share of ownership in the cooperative.
If you have questions about your patronage retirement, please contact a CREC Advantage Representative at 405-372-2884 or 800-375-2884.
Written By: jjoiner62
Date Posted: 1/16/2012
Number of Views: 92
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