The board of directors of Harrison REMC has approved paying capital credits in the amount of $1.5 million for portions of 1988, 1989, and 2018. The board is excited to return your investment in your electric cooperative with this capital credit retirement.
Capital credits are one of the benefits of membership with a not-for-profit electric cooperative like Harrison REMC. As a member of Harrison REMC during these years, you helped provide the funding to build and maintain the electric system. Since Harrison REMC is a not-for-profit cooperative, all funds not used to pay the wholesale power bill and operating expenses are invested in the cooperative’s electric facilities.
The capital credit check or bill credit you will receive reflects your portion of the margins (profit) made and invested during that time period. With this general retirement, over $12 million has been returned to members participating in the cooperative’s business. Unlike investor-owned utilities that pay dividends to their stockholders, who are often far removed from the service provided, cooperatives allocate and return their margins to the members who used the service and provided an important investment.
We believe this is just one of the cooperative differences that make serving you and our communities a pleasure.
Checks will be sent out in late June, and bill credits will appear on July statements.
If you are not familiar with capital credits, read on for a more detailed description of what they are, who gets paid, and how allocations are made. We will provide more information about the return of capital credits in future issues of Indiana Connection. If you have any questions regarding this announcement, please call our office at 812-738-4115 or 812-951-2323 for further information.
NOTICE OF 2023 CAPITAL CREDIT ALLOCATION
As a not-for-profit electric cooperative, Harrison REMC is obligated to allocate, by credits to a capital account, all amounts in excess of operating costs and expenses at the end of each fiscal year. This patronage capital is allocated to each member of the cooperative based on their contribution of patronage (revenue) for that particular year.
To determine your capital allotment as a member of Harrison REMC, first determine your electric bill amount for the year (your bill amounts, less tax, and less miscellaneous charges), then multiply this amount by the following allocation factor — 0.053392.
