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Members to receive capital credits checks soon
Posted on: September 19th, 2014
It’s not every utility that returns margins to its members every year. Many utilities are for-profit corporations that make profits only for shareholders. One of the benefits that GreyStone members enjoy, since they are owners of the not-for-profit cooperative, is a capital credits check. Checks are sent to GreyStone members by the first week in October.
Each year, GreyStone returns a portion of prior years’ margins to members. Capital credits checks represent a portion of the margins from the most recent year and the oldest previous year(s).
GreyStone has returned $73.7 million in capital credits to members since 1936, including the latest installment amount of $4.6 million to be returned to members this year.
“This capital credits check gives our members an annual return on their investment in GreyStone Power and reminds them of the difference between getting power from us or from an investor-owned utility that operates to pay dividends to stockholders. As a nonprofit cooperative, our only reason for existence is to serve our members,” said GreyStone Power President/CEO Gary Miller.
Revenues exceeding the cost of service to individuals and businesses that purchase energy from the co-op are credited to a special account in each member’s name. This year, members are receiving a return on their investment in GreyStone from the years 1995 and 2013. Only those receiving power from GreyStone in those years will receive checks.
The amount of money members receive is determined by how much electricity they used during the years for which capital is being retired and the co-op’s cost of distributing the power during that time. GreyStone does not immediately distribute the full amount of surplus capital at the end of each year; some of the member capital is put in reserves in order to keep rates as low as possible and to deal with unforeseen challenges and rising costs.
Checks are sent to each member’s last known address, so it is important to leave a forwarding address with the co-op if you move. If a check is not claimed after five years, the money is used through the GreyStone Power Foundation, Inc. to assist charitable nonprofits.