Capital credit distributions from member-owned, not-for-profit utilities like JNEC are somewhat similar to the dividends paid to shareholders of investor-owned utilities. The difference is that a co-op’s “shareholders” are also the members that it serves, and the “dividends” (capital credits) are distributed to the co-op’s members/owners.
Jasper-Newton Electric Cooperative (JNEC) Board of Directors has authorized the distribution of $1,500,000 in capital credits to current and former members of the Cooperative. Active (current) members will receive a credit to their primary electric account in September for the amount of their capital credit. This method significantly saves postage and labor costs for JNEC and its members. Also, by applying capital credits to the September bill, the Cooperative hopes to help offset the higher light bills many members see at this time of year.
Checks are mailed in October to inactive (former) members due a capital credit whose distribution amount is above the $5 minimum. Inactive account distributions of less than $5 will roll over to future years, and a check will be issued when the minimum amount reaches $5.
Your Cooperative’s rates are set to bring in enough money to pay operating costs, make payments on any loans and provide an emergency reserve. At the end of each calendar year, we subtract operating expenses from the total amount of money collected during the year; the balance is the “margin.” This margin is allocated to each member based on the amount each member paid for electricity.
Before distributing capital credits, the JNEC Board of Directors must consider the financial condition of the Cooperative, the need for capital funds, and the availability of loan funds.
Since 1956, your Cooperative has distributed members $22,418,553 in capital credits.