matters MEMBERSHIP
May 2015
Capital credits refunds coming in May! Money is coming back to members this May thanks to a $4.6 million capital credits retirement approved by your Board of Directors!
revenues remaining after all expenses have been paid each year are considered “margins” that are returned to the members after being used Checks begin mailing on May 6 so for a period of years as capital to help finance major reliability projects. This be sure to check your mailbox! Those helps offset the need to borrow funds, qualifying for a $35 refund or more will be mailed a check separate from which helps keep your electricity rates their electric bill. Those qualifying for lower. It also helps maintain a healthy balance between debt Members qualifying for a refund of and equity to ensure cooperative’s $35 or more will receive a check in your financial health and early May. Those qualifying for less will stability.
receive a credit on their electric bill received in May. less will see it as a credit on the electric bill received in May. Those too new to the cooperative to qualify for a refund will build their account over time for future refunds. As a cooperative, Blue Ridge Electric doesn’t earn profits. Instead, any
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While each member’s capital credits refund is based on the amount of electricity purchased, the same percentage is used for each member.
(ownership) in the cooperative. This balance is communicated to members annually on a different billing statement. 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 $46 million has been returned to members.
Please note that before capital credits are retired and returned to members, they are first recorded as allocations. This is your accumulated capital credits balance and reflects your equity
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the
perspective From Blue Ridge CEO Doug Johnson
It pays to be a member Returning money back to our members is an important cooperative value and we hope you agree that it’s also a nice benefit of being a cooperative member. Your Board of Directors recently approved returning almost $4.6 million in capital credits to active members, estates and former members. You can find details about the checks and bill credits we’re issuing in May on page 21 of this newsletter. The name “capital credits” may sound complex but it’s a simple concept. Until they’re returned to members, capital credits are funds used as operating capital to invest in power lines, substations, and other electric system assets that provide you with reliable electricity. Capital credits are the annual margins — revenues minus expenses of the cooperative — which are allocated to each member based on your individual usage and purchase of electricity. After using the money for a period of years to finance investment in electric facilities, it is returned to members over time.
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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 uses an industry best standard goal of 40 percent of assets for member equity. It includes a schedule for the regular return of member equity in the form of capital credits. Our members have just over 40 percent equity invested in the cooperative, which is $152 million out of over $379 million in total assets. This year’s return of capital is three percent of member equity. The equity plan also determines how much of the cooperative’s investment in electric system assets will be covered through member capital and how much will be covered by long-term debt. Our goal is to balance member capital (equity) and debt in order to give members the lowest possible rates. Blue Ridge Electric has returned over $46 million in capital credits to our members, including the current retirement. It pays to be a member of a cooperative and we’re pleased to provide good value to our members!
Thank you!
Int you w co enc of
This year many of our members asked us to donate all or a portion of their capital credits refund to Operation Round Up®. I want to thank you for giving to this “member helping member” program for local residents. To date, 1,072 members have donated an estimated $27,187 — which is outstanding participation! Due to your generosity, many members will be helped with crisis bill support and through other quality of life assistance programs. Many of you told us that by providing the opportunity to donate your capital credits refunds, we offered you an easy way to help others. That’s what the cooperative spirit is all about! Thank you for joining us in Operation Round Up!
MEMBERSHIP matters
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Convenient options include online and mail
Director election kits coming mid-May
Voting via the Internet or by mail saves your cooperative money, which helps us control costs for members. We encourage you to try one of these voting options!
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One advantage of being served by a cooperative is the right to elect peers (fellow co-op members) to serve on the Board of Directors that guides your cooperative. Voting online or by mail has enabled a record number of members to be involved in their cooperative in recent years, although members may still attend and vote for directors during the annual meeting. Director election kits will be sent to members in mid-May. Biographical information for all candidates and a proxy for members to vote in every district will be included as well as information about voting options which include an easyto-use online portal. If voting by mail, in order to be valid, the form must be signed by the member with selections clearly marked and the form returned in the enclosed postagepaid envelope by the date specified in
the packet. Please note that the form cannot be given to an employee or accepted at any Blue Ridge office in order to comply with proper election management procedures. To ensure the integrity of director elections, a third-party election management firm is approved each year by the Credentials and Election Committee (committee names available at BlueRidgeEMC.com). This committee is comprised of members from across the cooperative’s service area and is responsible for ensuring elections are properly conducted and for certifying election results. Look for more information on the cover wrap of this issue of Carolina Country, in your director election kit coming mid-May and on our website at BlueRidgeEMC.com.
An Appalachian Summer Festival Outdoor Fireworks Concert featuring
Kacey Musgraves Saturday, June 27, 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 - $33 (regularly $38) Children’s tickets - $5 *All tickets must be purchased through ASU. Find a direct link to your discounted tickets at: BlueRidgeEMC.com/appsummer MEMBERSHIP matters
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Sponsored by: Blue Ridge Electric Membership Corporation
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Responsible vegetation management benefits wildlife
Discounted wildlife seed available To encourage wildlife habitat and enhance the scenic beauty of cooperative rights-of-way on member property, Blue Ridge Electric is partnering with the Whitetail Institute to offer members a 20 percent discount on purchases of wildlife seed such as clover, chicory, chufa, winter peas and more. These types of low-growing vegetation are ideal to plant in these open corridors and can provide a food source for many species including rabbits, deer, wild turkey and birds. It’s also the perfect option to enhance appearance of rights-of-way where large trees and shrubs are a threat to power lines and poles.
Sparta, NC Alleghany County
CHIEF EXECUTIVE OFFICER Doug Johnson
EDITOR Renée R. Whitener
PRODUCTION SUPERVISOR Susan Simmons
DISTRICT OFFICES Caldwell Watauga Ashe Alleghany Wilkes PowerLine®
(828) 754-9071 (828) 264-8894 (336) 846-7138 (336) 372-4646 (800) 451-5474 (800) 448-2383
Toll Free
(800) 451-5474
(PowerLine® is an automated account information and outage reporting system.)
(for members outside of 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: BlueRidgeEMC.com +
While Blue Ridge Electric members own the rights-of-way on their property, it’s the responsibility of the cooperative to maintain the poles and lines
as well as to manage the vegetation in these areas in order to keep electricity flowing for all of our membership. Blue Ridge trims and removes trees and applies environmentally safe herbicides to hinder tall vegetation in rights-of-way. However, for rights-ofway in pastureland areas where no large trees and shrubs exist, planting wildlife seed offers an alternative vegetation management option. All Blue Ridge Electric members can purchase discounted seeds and receive free shipping from the White Tail Institute. To order, go to BlueRidgeEMC.com > GreenSmart > Environment > Purchase Discounted Wildlife Seed and type Coupon Code “Blue Ridge EMC” when prompted to receive the discounted price.
Co-op Connections Card Program business spotlight Blue Ridge Electric welcomes Vintage Bella Antiques in Lenoir to the Co-op Connections® Card family. We also want to express our appreciation to the following businesses for their continued support of the Co-op Connections Card Program. We encourage you to shop at these and other fine retailers across our service area. • •
Blue Ridge Woodcrafters: 10% off small woodcraft purchases (Sparta, NC) Becky & Company: 20% off any non-sale health & beauty item (Jefferson, NC)
•
Kelley’s Sports & Awards: 10% off entire retail purchase. Some exclusions may apply. (Hudson, NC)
•
Chetola Resorts: 10%-15% off daily room rates. Some exclusions may apply. (Blowing Rock, NC)
For a complete list of local and national businesses and the discounts they offer, go to BlueRidgeEMC.com/coop-connections-card. See how this little card can save you money while you support our local economy. *Misplaced your card? Contact your local Blue Ridge Electric office for a replacement. This institution is an equal opportunity provider and employer.
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MEMBERSHIP matters
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