LIGHT READING INLAND POWER AND LIGHT inlandpower.com
Why Cooperative Membership Matters
W
e are often asked why we call those who purchase electricity from Inland Power “members” and not “customers.” The answer is simple. Just like some people are members of Rotary, Lions, or Kiwanis clubs, you are a member of Inland Power. Service clubs have a common principle–standing together, we are stronger and can accomplish more than an individual could. The same holds true for other types of memberships; they pool resources and work together to help each other succeed. Membership at Inland Power offers many of the same benefits as clubs do, but with a big extra. You and the rest of our nearly 41,000 members own the co-op! That means we answer to you, not investors who have never visited with neighbors or spent time in our schools. This structure harkens back to our origins. Inland Power was organized by farmers and rural residents from this area in 1937, with support from the federal Rural Electrification Administration (REA). At that time, investor-owned utilities said there wasn’t enough profit to be made to warrant the expense of building power lines into the rural countryside. REA offered low-cost loans for bringing electricity to unserved homes and farms. So, folks began forming electric co-ops to meet the need. A membership fee of $5 was collected from each family–making them co-op members and owners–to generate capital for borrowing. From those basic roots, the rest is history. Best of all, every co-op operates on a not-forprofit basis. Inland Power doesn’t offer profits to investors. We return money over and above operating costs to you, our valued members, based on electricity consumption. Inland Power is pleased to announce that for the 39th year we will be giving cash back to our members. The board of trustees has approved refunding of $1.5 million in capital credit checks in December. Cooperative membership remains as important today as it was in the late 1930s. We appreciate your business and look forward to serving you in the years to come. We wish you a safe, healthy and joyous holiday season.
Q: How is Inland Power different from other utilities? A: Inland Power is a cooperative, owned by its members who receive electric services. Municipal utilities are public governmental agencies. Investor owned utilities (IOUs) are owned by stockholders earning a return on their investment. Most customers of IOUs are not owners of the IOU. Inland members are owners, which distinguishes cooperatives from all types of utilities. Q: How does Inland Power raise capital for operations and improvements? A: Cooperatives usually obtain capital in two ways borrowing and retention of capital supplied by members.
DECEMBER 2018
What are Capital Credits? Q: When will I receive my capital credits check? A: The board of trustees of Inland Power has approved refunding $1,500,000 in capital credit checks in December. Watch for your capital credit checks to arrive in midDecember.
Q: Do I accumulate shares of stock in Inland Power that can be traded or sold? A: No, capital credits are not issued and traded like publicly traded Q: When do members supply capital stock. However, you still build your to a cooperative like Inland Power? ownership interest every time you A: Inland Power is operated on use Inland Power’s electric system. a not-for-profit basis. Year-end margins remaining after deducting Q: Do my capital credits earn operating expenses from utility interest or dividends? revenue are allocated to members’ A: No. If that were the case, higher capital credit accounts. These electric rates would be needed to amounts are called capital credits. generate the interest or dividend They reduce the need for borrowed fund. funds and payment of associated interest expense. Q: Does the size of my capital credit account affect voting rights in Q: What affects the level of margins Board of Trustee elections? Inland Power earns? A: No, in a cooperative every A: If all other things remain equal, member has one vote. the following can result in more margins and capital credits: 1) Q: Are capital credits paid out to lower utility operating expenses, 2) members when they move away higher service availability charges, from the service area? or 3) increased energy used by A: No, members who move from members. Inland Power’s bankers the service area are not entitled to establish minimum margin goals accelerated payments but should as security for their loan. Finally, keep Inland Power informed of their the board of trustees establishes current address so future payments polices regarding the capital can reach them. credit retirement cycle and the cooperative’s equity level.
inland powe r is my coope rat iv e
WE ARE A MEMBER-OWNED ENERGY COOPERATIVE COMMITTED TO SAFE, RELIABLE SERVICE AT COMPETITIVE RATES. - i n l a n d p o w e r m i s s i o n stat e m e n t
ENERGY EFFICIENCY TODD AND LINDSEY, YO U R E N E R G Y E F F IC IE N C Y T E A M (5 0 9 )7 8 9 - 1 8 0 1 | C O N S E RVAT I O N @ I N L A N D P OW E R . C O M
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INLAND POWER WINTER-THEME PHOTO CONTEST!
CALLING ALL SHUTTERBUGS! Don’t miss out on this year’s photo contest! Grand prize will win a $100 gift card! Email your winter-themed photos to Andy Barth at andyb@inlandpower.com. Deadline to enter is Thursday, March 7, 2019 at 5 p.m.
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SPOKANE, WA 99224
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