With the holidays just around the corner, there’s no better time to show our commitment to our members than through the disbursement of patronage capital.
Longtime members of Noble REMC have benefited from receiving cash back over the years. For our newer members who aren’t as familiar with our cooperative principles, let me help explain one of the most tangible ways we set ourselves apart from other utility companies.
What is patronage capital?
As a not-for-profit business, patronage capital is our way of returning our profit back to you over time. Some years, we’re left with a margin, or a difference between the money collected from our members and our operating expenses. Since we belong to the members we serve, this margin is invested in the cooperative, and then returned to our members with the board of directors’ approval.
Which members are receiving patronage capital this year?
Members from the following years will receive cash back: 1988, 1996, 1997, 1999, 2000 and 2017. More than 11,700 checks will be sent out — totaling approximately $789,000 — and the amount each member receives is based on how much power the member used in those years.
How will it be disbursed?
Members will receive a check for the amount allocated to them. Due to the expense of processing printed checks, members will only receive a check if the amount is $10 or more, but patronage capital will accumulate over time and be returned when the balance reaches the $10 threshold.
Why is patronage capital important?
There are a few reasons why patronage capital matters to you as the member:
- Patronage capital reflects each member’s stake in the cooperative and shows the positive difference from investor-owned utilities, which pay dividends to their shareholders, who may or may not be customers of the utility.
- It follows our cooperative principle of “members’ economic participation,” which requires members to help pay a share of building infrastructure but also receive any margins the cooperative generates.
- The ability to return these margins to our members shows our strength and financial stability.
- It’s money in your pocket.
Want more information?
Contact our office at 800-933-7362 with any questions you may have regarding patronage capital.