It’s that time of year for you to get the credit you deserve for sustaining your local electric cooperative. This year, we will issue capital credit refunds to members who received electric service during 1993-1994 and 1996-1997.
Bartholomew County REMC will retire $743,000 from 1996 and 1997. This refund also includes $323,940 retired from Hoosier Energy, our wholesale power provider from 1993 and 1994. These capital credits are a return of your patronage (investment) in BCREMC.
Current active members will receive capital credits from these years in the form of a bill credit. If you receive your bill mid-month, the refund was on your November bill. Those that receive their bill at the first of the month will see the refund on your December bill. Inactive members with capital credits from these years will receive a check sent to the address on file on Dec. 9.
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 issue capital credits to our member-owners. 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.
When cooperatives take in revenue above operating costs, those margins are kept as working capital for approximately 25 years to run the cooperative before being paid out to members. All members who purchase power from Bartholomew County REMC provide funds to help finance our operations. 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 member’s most tangible indications of true ownership in the cooperative.
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.
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.