In accordance with our bylaws, we must annually notify each Miami-Cass member if they were assigned a portion of margins realized in the previous year (2016). Capital credits are the assignment of margins, and we are required to have a permanent record of any credits assigned to you. Each year in the Electric Consumer, we explain how your assignment (if any) is calculated.
Miami-Cass REMC’s board of directors annually determines if capital credits will be refunded to members on record for the years being retired. Your board approved the retirement of older capital credits, which will be paid in 2018. The years being retired will be provided in the Electric Consumer in 2018, but will not include those from 2016.
Miami-Cass REMC is a nonprofit corporation within the state of Indiana. All of our operating expenses are paid from two sources — the membership fee paid when you applied for service and the payment from the monthly electric bill.
Capital credits occur when these payments exceed our operating costs. The majority of our operating expenses are power purchases, interest payments, taxes, and the cost of building and maintaining our distribution lines to each of our member’s meters. These margins are returned to you (our owners) as a capital credit.
Unretired capital credits are invested in building and upgrading our lines. Your credits are used for vehicles, to maintain and build the lines, and materials (poles, lines, meters, etc.). These are necessary expenses to ensure we provide members with a cost-effective, reliable, and safe source of power.
In 2016, Miami-Cass REMC had margins of $1,270,794 to allocate to our members. This amount is approximately 7.99 percent of total electric sales.
You can determine your 2016 capital credit allocation by totaling your electric energy purchases for 2016. Electric purchases do not include taxes, late fees, or other miscellaneous charges. To determine the credit, multiply your electric purchases by .0799247535.
If you do not have your electric purchases for 2016, you can contact us during regular business hours (phone 765-473-6668 or email firstname.lastname@example.org). Your electric purchases are also available on our SmartHub app.