DIRECTOR'S CORNER By Joanne Little, CCD, BL, DGC, District 8
ITS
ay our bills and ocated to
ERS
3
Joanne Little
AS A MEMBER, WHAT CAN YOU EXPECT?
Sharing excess revenue with our members is a core cooperative principle. Cooperative Principle #3 states that members will contribute equitably and democratically to control the capital of the Cooperative. Surpluses are allocated to the benefit of members in proportion to their transactions with the cooperative.
In June 2023, The Energy Cooperative Board of Directors approved retiring (paying out) of capital credits to electric members. The Board of Directors has chosen a hybrid method of retiring capital credits based on the allocated margins in the electric members' equity. Therefore, The Energy Cooperative will pay electric members the remaining amount of 1980, all of 1982, and a portion of 2002. Active members will see a credit on their electric bills in October, and inactive members will receive a check.
Your Board of Directors and management are pleased we can once again retire (payout) capital credits!
WHAT ARE CAPITAL CREDITS?
Margins are allocated to members based on the energy they purchased during the year. The federal tax law provides cooperatives with preferences and exemptions, such as tax-exempt status. This exemption requires us to run our cooperative "at cost," not charging more than what it costs us to bring our members safe and reliable energy. Every cooperative board decides how and when to retire (pay) capital credits to its members.
mbers.
WHY THE DELAY?
The Energy Cooperative retired (paid out) capital credits last year for the first time since 1999. Why? The Energy Cooperative's equity position fell below 20% in 2001. ly to each According to our mortgage, we could not pay capital e with the credits until the equity reached 20%. years' capital
G E T T O K N OW YO U R D I R E C T O R
WHAT IS THE PROCESS?
Graduate of Utica High School, Columbus Business University and Central Ohio Technical College
The Board of Directors considers the following factors will be paid atwhen this time determining how capital credits will be retired: aid at this time • Amount to be retired: Balancing the risk of harming the financial position by paying capital credits with the desire to return the credits to the electric members. • Age of capital credits: Must balance the desire to retire old capital credits with also including newer members. • Timing: Critical points when capital credits are retired (paid), the amount being retired, and ERCIAL MEMBER how to communicate this to our members. kilowatts
$$$$
Retired as the Treasurer of JohnstownMonroe, Newark City and Olentangy Schools and also worked at C-TEC and Licking County Education Service Center Served as an Interim Treasurer and Financial Consultant for many Central Ohio school districts
a year
Married her husband, Harry, in 1969 and have three children and eleven grandchildren
Retiring (paying out) capital credits are determined annually after the board of directors L CREDITS considers the above-mentioned factors.
ut capital
7
74 0 - 3 4 4 - 2 1 0 2
