|Paulding-Putnam to retire $1 million to members|
|Monday, December 16, 2013 4:58 PM|
PAULDING – Just in time for the holidays, Paulding-Putnam Electric Cooperative will retire $1 million in capital credits to its cooperative member-owners.
Paulding-Putnam’s board of trustees authorized the payment at its recent meeting based on the sound financial condition of the cooperative. Of the $1 million in capital credits, $330,000 will be paid out to the estates of deceased members and $670,000 will be allocated to the remaining members who received service in 1987 and/or 2012.
Current members will receive a credit on their December bills that will be mailed later this month, and past members will receive a check. The average refund for a member who had service in both 1987 and 2012 will be $53, but the exact refund is determined by the amount of electricity used during those years.
CEO George Carter pointed out, “The financial commitment of our members is recognized by our board of trustees, and is what distinguishes the cooperative business model from other utilities. This $1 million retirement will be a direct reduction in our members’ bills this month and will support our communities by putting money back into the local economy – and into the pockets of those we serve.”
The retirement of capital credits – so called because members provide capital to the cooperative for it to operate and expand – depends on the co-op’s financial status. Paulding-Putnam holds on to allocated capital credits to cover emergencies, such as a natural disaster or other unexpected events, and to expand and refurbish its electric system. This action decreases the need to raise rates or borrow money to pay for the infrastructure. After a number of years, if financial conditions permit, Paulding-Putnam may decide to retire a set amount of capital credits.
“The board of trustees is committed to fiscal responsibility for the co-op and when we are able to retire member patronage, we do so,” said board president John Saxton. “The cooperative has a long history of retiring capital credits and we are proud to do it again this year.”
If you or someone you know formerly had service with Paulding-Putnam, please call 1-800-686-2357 to update your address.
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