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 An important distinction between a
cooperative and any other business model is that consumers of
the cooperative receive a financial benefit from the business by
receiving a share of the profits. If you purchase your
electricity from an investor-owned utility, profits go to the stockholders, many of whom are not customers.
However, at Mecklenburg Electric Cooperative any funds, or
margins, remaining at the end of the year over and above the
Cooperative’s cost of operations are allocated to the consumers
in proportion to their patronage and assigned to the members as
capital credits.
Margins are initially retained by the Co-op
for operating funds, system renovation and improvements, and
loan repayment. When the financial condition of the Cooperative
permits, the board of directors authorizes a return of these
margins, and the members reap the benefits in the form of
capital credit refunds. To date more than $28 million has been
returned to the member/owners of Mecklenburg Electric
Cooperative.
Each consumer served by the Cooperative is
a member and actually owns part of the Co-op. In contrast, an
investor-owned corporation, only stockholders have an ownership
interest and can expect a return on their investment. With a
co-op, every consumer can expect a return of his capital credits
over time.
The Co-op is quite proud to maintain a
financial condition that will allow it to put this amount of
money back into the community and into the hands of our
member/owners.
In 2010 a total of $1.6 million was
returned to Mecklenburg Electric Cooperative (MEC) members who
received service from the Cooperative during a portion of 1995.
Active MEC members who had an electric account in 1995 received
a credit on their November bill statement. Applying returns as
a credit on the bills rather than mailing checks allows MEC to
save thousands of dollars on printing, postage, and other
production costs associated with the mailing of checks.
Those savings mean more capital credits for our members!
Checks are mailed to
individuals who no longer have an active account with the
Cooperative.
Click here for unclaimed capital credit
information
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