It’s that time of year for you to get the credit you deserve for sustaining your local electric cooperative. Within a few days, we will be printing capital credit checks to members who received electric service during the years of 1994 and 1995.
Bartholomew County REMC will retire $360,280 from 1994. You will also receive a separate check that includes $323,940 retired from Hoosier Energy, our wholesale power provider from 1994 and 1995. These capital credits are a return of your patronage (investment) in BCREMC.
Inactive and active members, with capital credits from these years will receive a check sent to the address on file on Dec. 10. Due to the expense involved in processing printed checks, the minimum check that will be written will be $5.
You might not realize it, but when you signed up to receive electric service from Bartholomew County REMC you became a member — and owner — of an electric utility. While investor-owned utilities return a portion of any profits back to their investors, electric co-ops operate on a not-for-profit basis. Therefore, instead of returning leftover funds, known as margins, to investors, we can issue capital credits to our members. The amount you will receive is in direct proportion to the amount of electricity you used during the years being retired. Detailed records are maintained to show how much capital each member is allocated during the years of service.
We are grateful that our board of directors authorized a special retirement of 2019 capital credits in July to help our members. This was a one-time retirement, during this challenging year. Our annual capital credit retirements occur at the end of the year if the board of directors determine it is financially feasible for the cooperative.
Capital credits remain one of the members’ most tangible indications of true ownership in the cooperative.
When the cooperative takes in revenue above operating costs, those margins are kept as working capital for approximately 25 years to run the cooperative before being paid to members. All members who purchase power from Bartholomew County REMC provide funds to help finance our operations.
If you move or no longer have electric service with BCREMC, it is important that members keep their address current with us, so that future disbursements can be properly mailed. Capital credits are reserved for members even if they move out of our service territory. Always contact BCREMC to provide updated address information. We will make a diligent effort to send a check by mail. If the check is returned, the member will be marked undeliverable and no future checks will be sent.
If a member has passed away, all capital credits allocated from BCREMC can be paid in full to the spouse (if not listed jointly on the account) or heirs of the member. BCREMC needs a copy of the death certificate and will (if available) to make an estate payment.
Bartholomew County REMC is proud to report that your cooperative is financially stable and proud to return capital credits back to you, our members. Wishing you and your family a safe and happy holiday season.