matters MEMBERSHIP
May 2016
Capital credits refunds coming in May! Money is coming back to members this May thanks to a nearly $4.8 million capital credits retirement approved by your Board of Directors! Checks begin mailing on May 6, so be sure to check your mailbox! Members qualifying for a $35 refund or more will be mailed a check separate from their electric bill.
reduce the need for loans, which helps keep your electricity rates lower. It also helps maintain a healthy balance between debt and equity to ensure Members qualifying for a refund of $35 or more will your cooperative’s financial health and stability.
receive a check in early May. Those qualifying for less will receive a credit on their electric bill received in May. Those qualifying for less will see it as a credit on their 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 revenues remaining after all expenses have been paid each year are considered “margins.” Margins are allocated to members each year and reflect your equity (ownership) in the cooperative. After being used for a period of years as capital to help finance major reliability projects, these funds are returned to members. This helps
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The percentage of equity to be retired and refunded to members is determined annually by your Board of Directors based on your cooperative’s financial condition. This year, the percentage is three percent. Over the history of Blue Ridge Electric, more than $51 million has been returned to members.
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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! We hope you agree that it also provides value to you as a member of Blue Ridge Electric. Members will receive nearly $4.8 million in capital credits refunds this year as approved by your Board of Directors. These funds go 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 $159 million out of over $389 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 $51 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 for giving to Operation Round Up! Members are generously donating to Operation Round Up® using an easy way to give we first began offering last year: by donating all or a portion of their capital credits refund. More than 1,500 members are now using this method to donate nearly $40,000 to this “member helping member” program. Due to your generosity, more 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
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. Included will be: biographical information for all candidates; a proxy for members to vote in every district; and instructions for voting online or by mail.
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.
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 postage-paid envelope by the date
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 BlueRidge EMC.com.
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!
Another Powerful Solution:
Save with rebates!
There’s something for everyone in our new Powerful Solutions family of programs rolling out this year! As your trusted energy advisor, we’re introducing rebates for home appliances and even larger home projects that will help you be energy efficient and reduce your electric bill. Available for Energy Star purchases made after May 1, 2016, for a limited time (some restrictions apply):
at by y to s reeasy what s all ng us
ers
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.
Appliance Rebates ENERGY STAR® Refrigerator (min. 15 cu. ft.) ENERGY STAR® Freezer (min. 10 cu. ft.) *High Efficiency Heat Pump (16 SEER or greater) *Geothermal Heat Pump (19 SEER or greater) MEMBERSHIP matters
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$25 $25 $150 $250
see “Rebates” on page 24
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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’s 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.
Sparta, NC Alleghany County
CHIEF EXECUTIVE OFFICER Doug Johnson
EDITOR Renée R. Whitener
These types of low-growing vegetation are ideal for 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. Members with heavily-wooded property near cooperative rights of way have an additional incentive and option: Blue Ridge Electric will pay onehalf of the cost, up to $500 per acre, to any member who converts woodland to cropland or permanent pasture. Members qualify for this monetary reimbursement only if they contact Blue Ridge Electric in advance and
receive approval prior to the start of clearing the woodland area. It’s Blue Ridge Electric’s responsibility to maintain the vegetation, poles and power lines in rights of ways so that electricity will continue to flow for all of our membership. Blue Ridge trims and removes trees and also applies Environmental Protection Agency (EPA) approved herbicides to hinder tall vegetation in rights of way. However, for rights of way in pastureland areas where no large trees and shrubs exist, planting wildlife seed offers an alternative vegetation management option. All Blue Ridge Electric members may purchase discounted seeds and receive free shipping from the White Tail Institute. To order, go to BlueRidgeEMC.com > Powerful Solutions > Environment > Purchase Discounted Wildlife Seed. When prompted, type coupon code “Blue Ridge EMC” to receive the discounted price.
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 Kiosk available 24/7 + Night deposit Visit us on the web: BlueRidgeEMC.com +
Rebates (continued from p. 23) Weatherization Rebates *Air Sealing up to $100 Duct Sealing or replacement up to $100 *Insulation up to $100 *Building an ENERGY STAR® home up to $500 *May qualify for a Federal Tax credit in addition to Blue Ridge Electric rebate. Whether you’re improving an existing home or building a new one, we offer rebates to help you save energy and money! Apply for the rebate and find qualifications information in our district offices or online at BlueRidgeEMC.com/Rebates. This institution is an equal opportunity provider and employer.
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MEMBERSHIP matters
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