You probably have heard of capital credits, maybe even cashed a check each year. But, have you ever wondered what this check from your cooperative means?
Under the cooperative business model, earnings are calculated at the end of the year. Anything left over after operating costs, loan payments and other expenses, is called a margin. Over time, these margins are retired, or paid back, to every member that has received electricity from Clark County REMC. This is known as a capital credit.
Since you are a member-owner of Clark County REMC, you own a share of your co-op’s assets. That means you own a piece of the business. Upon approval from the directors, the REMC returns retired margins in the form of a check. Often, this occurs annually. Our commitment to returning profits back to our members is a key element of the cooperative difference.
The amount allocated back to members is based on the amount of electricity that each member paid during the year. Clark County REMC holds onto allocated capital credits for a while to invest in the co-op’s electric system and to cover emergencies, such as natural disasters and other unexpected events, all of which may require new construction of power lines including poles and wire. This helps us provide reliable service at a low cost.
This year, our board of directors will refund approximately $1 million to those who were members of Clark County REMC from 1990-2000. Look for your check early this month.
It is always nice to receive money back for just being a member, especially this time of year. On behalf of all of our employees and directors, I would like to thank you for being the most important part of our electric co-op. We look forward to serving you in 2019 and in many years ahead. From all of our employees, myself and the board of directors: we wish you a safe and joyous holiday season!!
DAVID A. VINCE