News

11/3/2009

Midwest Electric returns $477,666 in patronage capital to members this month

Midwest Electric this month is distributing $477,666 in patronage capital payments to 6,600 current and former members. Eligible electric cooperative members will receive the refund either as a credit on their electric bill, mailed around November 23, or as a separate check, mailed early December.

Patronage capital is the cooperative's margins, or money left after all bills have been paid. Midwest Electric uses these margins for capital investments, such as building or replacing power lines, transformers and other electric system investment.

After being used as working capital, the money is returned to members as patronage capital refunds. It represents each co-op member's ownership -- or equity -- in their cooperative. Patronage capital is allocated to members in proportion to the dollar amount of electricity used.

This month's payment will be to those who used Midwest Electric service in 1994.

A typical residential customer who used 1,000 kilowatt hours per month that year will receive a patronage capital refund of about $83.46. Current Midwest Electric members who are receiving a patronage payment can view their individual patronage capital account on-line at www.midwestrec.com.

"This patronage capital retirement demonstrates that you're not just a customer...you are a member and part-owner of your electric cooperative," said Rick Gerdeman, manager/CEO. "You have equity ownership in our physical assets -- and you receive a financial return on those assets."

Since 1955, Midwest Electric has returned more than $19 million in patronage capital to its customers.

Based in St. Marys, Midwest Electric is the customer-owned electric cooperative for 10,500 homes, farms and businesses in Auglaize, Mercer, Allen, Van Wert, Putnam, Shelby and Darke counties.

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