This year our Board of Directors voted to retire $1 million in capital credits. Just just like in past years, we will be returning those to our members in the month of December. However, the Board also voted to return them as a bill credit, instead of via check. They have done this for several reason. Foremost, it’s to reduce postage expenses and administrative costs associated with preparing all those checks. And, it’s eco-friendly.
But there are even additional valid reasons. After checks are mailed, there is always additional administrative effort and cost to track and account for the checks. Many members just forget to cash the checks, or they may lose them. Or, checks are returned because a member has not updated a new mailing address with us. Too, there are the lost checks that must be reissued. That’s a lot of accounting!
This new process will also be better for newer members, because they will receive credits back much sooner. Past practice was to only send checks for credits worth $10.00 or more. But now, even pennies will be returned to eligible members once they are retired.
As a non-profit electric cooperative, we strive to keep your bills low, and one of those ways is to adopt efficiencies when they present themselves. This new process will have economic savings and simplify the process for all.
As always, the credit for each member varies and is determined based on your patronage (the amount of electricity purchased, plus years of membership). In total, over the last 28 years over $24 million in capital credit dollars have been returned to our members for a tremendous positive impact on our local economy. This year has not changed the process – it’s just become more efficient.
So, be sure to look for those bill credits in December. As always, they will be just in time to lighten the load for holiday gift buying. Enjoy!