Nearly 97 percent of Randolph EMC members received a check or bill credit for their share of the 2020 general Capital Credits retirement—about two months ahead of schedule.
With many facing hardships during this time, the Board of Directors voted to expedite our process to distribute money to members when they need it most.
Putting money back into members’ pockets with capital credits is just one unique difference that sets Randolph EMC apart from investor-owned utilities. “We’re very concerned about our local economy and truly care about our membership,” said Jerry Bowman, President of Randolph EMC’s Board of Directors. “Capital credits are usually distributed to members in early June and celebrated at the cooperative’s Annual Meeting. With so much unknown right now, we wanted to take this opportunity to return money as quickly as possible,” he added.
With so much unknown right now, we wanted to take this opportunity to return money as quickly as possible.
This year, the Randolph EMC Board of Directors authorized a general retirement of $2.5 million, with estate retirements estimated at $600,000. That’s a total of more than $3.1 million that’s flowing back to our members and into the local economy in the five counties we serve. This retirement will return remaining patronage capital from 1994’s allocation, 42 percent of 1995’s allocation and 32 percent of 2019’s capital credits allocation.
As a cooperative business, Randolph EMC doesn’t earn profits. Instead, any revenues remaining after all expenses have been paid each year are considered “margins.” They 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. “This is a representation of the board’s dedication to help our membership during this very trying time. I commend the board for their focus on keeping our members’ best interests at the forefront of all their decisions,” said Dale Lambert, Chief Executive Officer.
Capital credits are at the heart of the Cooperative Difference.