2012-05-MM

MAY 2012

Your share of $2 million in capital credits coming in May Thanks to a $2 million capital credits retirement approved by your board of directors, more than 53,000 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.

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 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’ve 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 growth and 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 customer 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 $35 million (including this year’s return) in capital credits has been returned to members.

Members qualifying for a capital credits refund of $25 or more will receive a check delivered separately from their electric bill. Those qualifying for a refund of less than $25 will receive a credit on their electric bill that they receive in May. BlueRidge-0512.indd 21

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 members of Blue Ridge Electric!

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We want members to be well informed about capital credits because it represents your ownership in Blue Ridge Electric. We also want you to be aware of the money coming back to you in this year’s $2 million capital credits retirement approved by your board of directors (see page 21 for details).

Capital credits may be an unusual term, but they’re a key member benefit. Until capital credits are returned to the members, they are invested in power lines, transformers, substations, and other assets that provide you with reliable electric service. Capital credits are the margins — the revenues minus expenses of the cooperative — allocated to each member based on your usage and purchase of electricity. About 75 percent of each year’s margins are retained for a period of time for use as capital to maintain the electric system. The remaining 25 percent is used to return capital credits to members.

And there’s even more to capital credits.

To assure your return of capital credits and the fiscal health of your cooperative, your board of directors has approved an equity management plan. The plan sets a goal for a member equity level of 35 to 40 percent of assets. It includes a schedule for the regular return of member equity in the

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An important benefit of your cooperative membership is having an electric service provider that works to provide you with good value. The capital credits program used by cooperatives is one of the best examples.

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Members benefit from capital credits

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n fficer form of capital credits. A cooperaDoug Johnso tive’s equity level is one of the best indicators of its financial health because it reflects the maintenance of an appropriate level of equity or member investment in the cooperative. Our members currently have just over 37 percent equity invested in the A key business principle of a cocooperative, which is $130.6 million out of operative is providing “at cost” $349.8 million in total assets. service to its consumers, which

The benefit of capital credits

The equity plan also guides your board in making decisions about key financial issues. It allows the cooperative to generate adequate capital to fund growth and operations without retaining member funds any longer than necessary.

Money to operate a cooperative comes from two sources: the amount members pay for electric service and long-term loans. Our goal is to maintain a balance of member equity and debt in order to give members the lowest possible rates over the long term. The equity plan determines how much of the cooperative’s investment in electric system assets will be covered through member rates and how much will be covered by loans. It also helps us meet financial requirements of our lenders.

Since the inception of Blue Ridge Electric, $35.9 million capital credits has been returned to members through annual capital credits retirements. We’re pleased to be sending money back to you this May. We think that’s something to celebrate as one of the ways Blue Ridge Electric provides good value to our members, now and in the future!

means cooperatives don’t exist to earn a profit. In a cooperative, there is no stock to be purchased or sold; the members are the owners of the business. Capital credits represent your ownership in Blue Ridge Electric and they’re one of the benefits of belonging to a cooperative.

What happens to my capital credits if I move or am no longer a member?

Your capital credits remain on our records in your name and member number until they are retired. To ensure you receive your capital credits refund, you should always alert Blue Ridge Electric of any address changes.

What happens to the capital credits of a member who dies?

The executor of a deceased member’s estate should contact the cooperative to request the capital credits. There are two choices: remain in the normal capital credits retirement schedule and receive a percentage each year or they may be paid immediately at net present value. The executor must submit a Certification of Entitlement form and a copy of the death certificate.

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More News Look for it in your mailbox mid-May!

Director elections include Internet and mail options One advantage of being served by a cooperative is the right to elect peers (other members) to serve on the board of directors that lead and guide your cooperative. Last year, a record number of members voted using the new convenient option to vote by mail. This year, voting for directors will be easier than ever as a second convenient option is added to vote by Internet.

While members may still attend and vote for direc-

a proxy for members to make selections will be inside, as well as information about how to vote online. In order to be valid when voting by mail, the form must be signed by the member, with selections clearly marked, and the form returned in the enclosed postage-paid return envelope by the date specified in the packet. The form must be mailed; it cannot be given to an employee or accepted at any Blue Ridge office due to proper election management procedures.

tors during the annual meeting, the new options to vote online or by mail are designed to provide the opportunity for more members to be involved in their cooperative.

Voting by mail saves your cooperative money, which helps us control costs for members, so we encourage members to try our new Internet voting option!

With a service area stretching from the foothills into the mountains and across seven counties combined with busy family schedules, voting online or by mail gives members who can’t attend the annual meeting a convenient way to vote for their board of directors.

To ensure the integrity of our director elections, a third-party election management firm was approved by the Credentials and Election Committee. Made up of members from across the cooperative’s service area, this committee is responsible for ensuring elections are properly conducted and for certifying results.

Look for more information on the cover wrap of this issue and in your director election kit coming mid-May.

Look for your director election kit to arrive in your mailbox in mid-May. Biographical information on all candidates and

An Appalachian Summer Festival

Outdoor Concert

featuring Creedence Clearwater Revisited with special guest Lee Brice Saturday, July 7 at 7:30 p.m.

Kidd-Brewer Stadium, Appalachian State University Gates open at 6:30 p.m.

Adult tickets with Blue Ridge Electric member discount - $27 (regularly $32) Children’s tickets - $5 *All tickets must be purchased through ASU

Sponsored by: Blue Ridge Electric Membership Corporation Carolina Country MAY 2012 23

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Members Only NEWS

~For Members of Blue Ridge Electric

MobilePay now free!

CORPORATE OFFICE PO Box 112 • Lenoir, NC 28645

CHIEF EXECUTIVE OFFICER Doug Johnson EDITOR Renée R. Whitener PRODUCTION SUPERVISOR Susan Simmons DISTRICT OFFICES Caldwell (828) 754-9071 Watauga (828) 264-8894 Ashe (336) 246-7138 Alleghany (336) 372-4646 Wilkes (800) 451-5474 (800) 448-2383 PowerLine® (PowerLine® is an automated account information and outage reporting system.)

Toll Free 1 (800) 451-5474 (for members outside the service area) To report an outage at any time, call one of the numbers listed above.

OFFICE HOURS 8:30 am - 5:00 pm, Monday - Friday Night deposit available.

Visit us on the Web: www.BlueRidgeEMC.com

To make it easier for members, we’ve done away with fees to use our convenient MobilePay option (although your cell phone carrier may charge you a standard text messaging fee, depending on your plan).

MobilePay makes it a breeze to pay your Blue Ridge Electric bill no matter where you are: at home, on the go, even while on vacation! Forget worrying about writing a check, keeping up with your bill, waiting in line — or even finding us online.

When you sign up for MobilePay, you simply reply to your monthly MobilePay text message with your four-digit PIN and you’re done! No worries, no hassle. All in a matter of seconds.

Call or visit us at bremco.mobi or BlueRidgeEMC.com to sign up.

Co-op Connections Card benefits just keep coming!

The Co-op Connections® Card program continues to expand member benefits with another new partnership. Coupons.com is now combining forces with Touchstone Energy’s Co-op Connections Card program to help Blue Ridge Electric members save even more money on items and services they use every day.

It’s simple! Go to BlueRidgeEMC.com and click on the Co-op Connections Card at the bottom of the page. Then click on Coupons.com and browse through thousands of great offers or narrow your search by choosing specific categories. You can also sign up for weekly coupon discounts and coupon alerts via email based on your personal preferences.

Check the website daily for new savings opportunities! Whether it’s $1 off any Robitussion® product or $1.50 off Starbucks® coffee — Coupons.com has you covered.

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