|$746,570 in patronage to Midwest Electric members this month|
|Tuesday, November 05, 2013 9:13 PM|
Midwest Electric this month is distributing $746,570 in patronage capital payments to 6,771 current and former members. Eligible electric cooperative members will receive the refund either as a credit on their electric bill, mailed around Nov. 21 or as a separate check in December.
Patronage capital is the cooperative’s margins or money left after all bills have been paid. Midwest Electric uses these margins for capital investments, such as building or replacing power lines, transformers and other electric system investment.
After being used as working capital, the money is returned to members as patronage capital refunds. It represents each co-op member’s ownership — or equity — in their cooperative. Patronage capital is allocated to members in proportion to the dollar amount of electricity used.
This month’s payment will be to those who used Midwest Electric service in 1997. It represents the final half-year from 1997.
A typical residential member from 1997 will receive a payment of about $83.
“This patronage capital retirement demonstrates that you’re not just a customer…you are a member and part-owner of your electric cooperative,” said Manager/CEO Rick Gerdeman. “You have equity ownership in our physical assets — and you receive a financial return on those investments.”
Since 1955, Midwest Electric has returned nearly $25 million in patronage capital to its members.