Patronage capital to be retired

Posted on Nov 28 2017 in Noble REMC

The board of directors of Noble REMC has authorized the return of patronage capital to members. The cooperative is returning a total of $771,300, of which about 35 percent comes from Wabash Valley Power (our power supplier). Checks* will be mailed in early December to members who received electric service from Noble REMC in 1987 and in portions of 1996 and 2016.

Cooperatives follow a unique consumer-focused business model led by a set of seven principles. The third cooperative principle, “members’ economic participation,” requires that members help pay a share of building distribution infrastructure — poles, wires, substations, and other equipment — to ensure everyone gets a steady supply of power. This amount is included in the monthly electric bill.

Members then also share in the margins or patronage capital. On an annual basis, any funds remaining after expenses have been paid, goes into a patronage account for each co-op member. The amount of money each member receives depends on electricity use in the calendar year being retired. For a period of time, normally 20 to 30 years, these patronage credits are invested in the cooperative.

As a not-for-profit cooperative, our goal is to provide members with electricity at a price that is as close to cost as possible. Our rate structure, and the return of patronage capital, helps us to meet this goal. Returning patronage is one of the most tangible indications of true ownership and is just one way we are different from other utilities.

If you have any questions about patronage capital or your refund, contact Noble REMC at 800-933-7362.

*Checks will not be issued for amounts below $10. Patronage will accumulate over time and be returned when the balance reaches at least $10.