Putting money back into members’ pockets with capital credits is just one unique difference that sets Randolph Electric apart from investor-owned utilities. This year, the Randolph EMC Board of Directors authorized a general retirement of $2.5 million. With this year’s estate retirements estimated at $550,000, that’s a total of more than $3 million flowing back to our members and into the local economy in the five counties we serve.
This retirement will return 100 percent of the remaining patronage capital from 1993, 45 percent of 1994 and 29 percent of 2017’s capital credits allocation.
As a cooperative business, Randolph Electric doesn’t earn profits. Instead, any revenues remaining after all expenses have been paid each year are considered “margins” that are returned to the members after being used for a period of years as capital to help finance major long-term reliability projects, including substations and power lines and poles.
Each year, the board of directors decides on a capital credit retirement based on the financial health of the cooperative. The amount of capital credits allocated to a member’s account is based upon the amount of capital they contribute to the cooperative through payment of their monthly bills. The more electricity a member buys, the greater their capital credit allocation. Capital credits are allocated on a continuous cycle: the cooperative collects for current needs to deliver reliable electricity while returning funds collected in previous years. This helps offset the need to borrow funds, thereby helping keep your electricity rates lower.
Capital credit checks were mailed out to members in early June. Refund amounts less than $20 were issued as a bill credit.