Members see capital credit refunds this month
HomeWorks Tri-County Electric Cooperative member-owners will see the benefits of cooperative principle #3 (Members’ Economic Participation) on May energy bills.
The board of directors authorized an allocation and retirement of capital credits after the audit was approved in March.
First, because we are operated on a not-for-profit basis, margins will be allocated back to members based on your purchases of energy during 2012. This includes the cooperative’s margins of $357,599; a $500,000 dividend paid to the cooperative by its subsidiary, Tri-Co Services; and $2,302,114, representing HomeWorks Tri-County’s share of Wolverine Power Cooperative’s 2012 margins.
These allocations are NOT cash, only an accounting of your share of ownership in the cooperative. The amounts allocated to your membership for 2012 will be printed in the top right message area of your May energy bill.
Your bill will also show your total unretired capital credits, which will be retired at a future date as determined by your board of directors.
Retiring Capital Credits
Retiring capital credits is a way of ensuring each generation of members provides its own equity.
The board’s philosophy is to pay most of a retirement from the oldest capital credits on account, and a smaller percentage from the most recent year.
We believe this achieves the purpose of recycling the cooperative’s capital, while also giving our newest members a chance to see one of the most fundamental cooperative principles in action.
This year’s general retirement totals $1,630,000, of which $1,210,000 retires capital credits allocated by Tri-County Electric in 1985, 1986 and 2012. Also being retired are $420,000 in power supply capital credits from 1988, 1989, and 2012.
Your retirement will be paid as a credit applied to your May energy bill. It will show as a line item under “Other Charges and Credits.”
The board also set aside funds for retiring capital credits to members’ estates, on a first-come, first-served basis. Estate retirements will include both Tri-County Electric and Wolverine Power capital credits. For more information about estate retirements, call Member Services at 1-800-562-8232.
(from the May, 2013, edition of Michigan Country Lines)