Once again, Indian Electric Cooperative is putting money back into the pockets of members.
And this time, that amount totals $5.1 million in Capital Credits, the largest amount IEC ever has retired at once.
One of the biggest benefits of being a member-owner of a cooperative is that you aren’t just paying a bill to a company for a service. A portion of your payment to IEC for usage is an investment, which is returned to you when the co-op is financially able. With that in mind during its Oct. 26 meeting, the IEC Board of Trustees deemed the co-op in good financial health and voted to retire $5.1 million in Capital Credits. Credits from 1984, 1985, 1986, 1987 and 1988 are a part of a collective retirement, so members who were on the IEC lines during those years saw their share of IEC’s margins as a bill credit or check last month.
IEC has returned $20 million in Capital Credits to members since its incorporation in 1939.
“Discussions in the board room were positive toward changing our approach and cutting down on the number of years and amount of Capital Credits we maintain,” IEC General Manager Todd Schroeder said. “We’re proud to return credits to members.”
In addition to the $5.1 million return of Capital Credits, IEC Trustees approved a separate 2021 Special Rebate, totaling $1 million, which will be given to all current members on the lines. The decision to offer the one-time, million-dollar rebate is a result of increased revenue over the last year. Each member will receive a bill credit based on percentage of revenue.
“We balanced operating expenses, margins and our future planning, and still we were able to provide the largest capital credit retirement in our history,” Schroeder said. “The board also ensured we had an opportunity to provide a special rebate to current members, too.”
The special rebate will come in December, which IEC hopes will be a big boost to its members during the Christmas season.