May 2011
Your Share of $2 Million in Capital Credits Coming in May Thanks to a $2 million capital credits retirement approved by the board of directors, 52,000 active members and 16,000 past members will receive capital credits refunds in May. Members qualifying for a capital credits refund of $25 or more will receive a check mailed separately from their electric bill. Those qualifying for a refund of less than $25 will receive a credit on their electric bill received in May. Capital credits are a unique benefit for members of cooperative businesses and represent your ownership in Blue Ridge Electric.
M mb Me mberrs qu qual alif al ifyi if yiing g for or a capi ca piita t l crre ed dit its s re efu fund n of nd $25 $2 5 or mor o e wi w ll re ec ceiive e ac ch hec ck de deli live li v re ve ed se epa par te ra ely y from ro om th thei e r el ei elec ecttrriic ec c b ll bi ll.. Thos Thos Th o e qu qualliffy yiing g for a re fo for r fu fund nd of le es ss s th ha an $2 25 w wiilll rec ecei cei eive ve v e a crre edi edi dit on n th he eir ele lect lect ctri ric c bi billll tha at th hey ey recei ec e cei eive v in M Ma a ay. y. y.
As a cooperative, Blue Ridge Electric doesn’t earn profits. Instead, any revenues remaining after all expenses have been paid each year are considered “margins” that are eventually returned to the members after first being used for a period of time for the electric system. Each member’s share of annual margins (which is based on the amount of electricity they used and purchased) is assigned to a special account in their name. The funds then become known as “capital credits.” Capital credits are used over the years as capital to help finance major long-term reliability projects. This helps offset the need to borrow funds, thereby helping keep your electricity rates lower. It also helps maintain a healthy balance between debt and equity to ensure your cooperative’s financial health and stability as well as to ensure you receive reliable electricity delivered with outstanding member service. Each year, your board evaluates the return of a percentage of capital credits to members based on the cooperative’s financial condition. Over the history of Blue Ridge Electric, more than $33 million (including this year’s refund) in capital credits has been refunded. Look for your capital credits check or bill credit this May. We’re pleased to be sending these funds and providing value directly to those who use our services: the local members of Blue Ridge Electric!
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