Tri-County returning $250,000 in capital credits to members

MANSFIELD (June 30, 2005) — Tri-County Rural Electric Cooperative is in the process of returning $250,000 in capital credits to members and former members of the cooperative.

The co-op board of directors recently approved the retirement of $250,000 worth of capital credits allocated to members’ accounts in 1982. That means those who were members of the cooperative in 1982 will be receiving either a credit on their July electric bill or a paper check.

Current co-op members will receive a credit to their Tri-County account instead of a paper check.. Paper checks will be issued to those who received electric service from the cooperative in 1982 but are no longer on-line with the co-op, as well as to any current member whose account location has changed since 1982.

Capital credits reflect margins the cooperative realizes at the end of each year. Margins, a cooperative’s equivalent to “profits,” are the excess of income over expenses.

Because cooperatives are member-owned, margins are allocated back to members in the form of capital credits. The amount of the allocation to a member’s account is based on that member’s energy consumption for the retirement year.

The cooperative retains margins for a period of time — historically about 20 years — to be used as working capital to assist in the financing of plant replacement and to build and maintain the electric system. When the co-op is financially able to do so, it retires margins by returning capital credits, known as patronage capital, to members.

“I am extremely pleased we are able to return capital credits to members again this year,” said Craig Eccher, Tri-County’s executive vice president and chief operating officer. “2004 turned out to be another positive financial year for the co-op, which enabled us to return margins back to our members.”

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