BOARD APPROVED $709,000 FOR PATRONAGE REFUND!
The Southern Iowa Electric Cooperative Board of Directors approved returning capital credits (patronage dividends) to the Membership at the June 27, 2019 meeting. A total of $709,000 appears this month as a credit on electric bills received in September for August energy use to approximately 4,700 SIEC accounts from the years 1998, 1999, 2000, and 2018. The act of returning capital credits is what differentiates cooperatives from other organizations. Each Member is an owner with an investment in our electric distribution system as well as the community. Each year, the SIEC Board of Directors allocates any financial margin that exceeds the expenses of the Cooperative for the prior year. This is where the funds originate that enabled this month’s bill credit. In an effort to help our Members understand the Cooperative Difference, 51% of this year’s capital credits returned came from the year 2018 in which extraordinary weather conditions created higher than budget margins for your Cooperative as well as for utilities across the United States.
This provided $209,000 of “rate relief” from our power supplier that the Board of Directors has elected to return to you. The remaining 49% of the capital credits being returned are from financial margins created in the years 1998, 1999, and 2000.
Even if you move off of Southern Iowa Electric Cooperative lines, your membership and investment is not forgotten. You are entitled to receive capital credits, based upon your financial contribution, for the years of SIEC membership. If the Board of Directors elects to return capital credits from the year(s) that you were an SIEC Member, a check/deposit will be issued for the proportional amount of your cooperative investment. So stay in touch! Please let us know your current address and/ or contact information so we can efficiently return capital credit funds to you. In the event a Member of record passes, capital credits are refunded to the surviving spouse, heirs or estate in the same manner as former Members.
The Southern Iowa Electric Cooperative Board of Directors is tasked with closely monitoring the financial condition of the Cooperative. This includes analyzing the need for capital and understanding the cost of debt. These factors determine when and how many capital credits (patronage dividends) can be returned to the Membership each year. Since our origin in 1939, SIEC Members have built over 1,700 miles of electric distribution infrastructure serving our community all the while continuing to function as a not-for-profit organization that returns any available funds to the Members.
The Cooperative Difference for you our MEMBERS.