If you were a member of Kankakee Valley REMC during 2016, you can expect to see a credit — a refund — on your bill generated in November.
That credit is something we do from time to time, and it’s just one more benefit to being part of a cooperative organization.
Because a cooperative like ours is a non-profit, any margins the company earns over and above our expenses, maintenance or capital improvements of our distribution system, are returned to our members. This return is referred to as capital credits.
As a member of our cooperative, you’re actually a part-owner, and when we make those investments in equipment and technology, part of it belongs to you. You’re basically allowing us to use that extra money to ensure that our service stays reliable. We refer to your portion of that investment as equity.
When for-profit corporations build up more funds than they need, they distribute it to their owners — the people who own shares of stock — through what’s known as dividends.
When a non-profit cooperative like KVREMC finds itself with more capital credits than we need, we do something similar. Our board of directors can “retire” the unneeded capital credits by refunding them to our members.
This year, our board decided to retire $350,000 in capital credits to those who were members last year. That money will be distributed to everyone who was an REMC member in 2016. The amount of credit will be based on how much electricity you used.
Capital credits allow members to benefit directly from our commitment to prudent financial management.
If you have any questions about credits or how we determine how much you receive, please contact our office.