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Boone REMC to retire $1M in capital credits

Electric cooperatives retired $1 billion in 2015; $13.8 billion since 1988One of the benefits of being a member of a cooperative is receiving capital credits. Boone REMC will return over a million dollars before the end of the year!

It’s time for you to get the credit — capital credits, that is — for helping build, sustain, and grow your local electric cooperative. In early December, Boone REMC will retire more than $1 million.

When you signed up to receive electric service from Boone REMC, you became a member of an electric utility. While investor-owned utilities return a portion of any profits back to their shareholders, electric co-ops operate on an at-cost basis. So instead of returning leftover funds, known as margins, to folks who might not live in the same region or even the same state as you do,  Boone REMC allocates and periodically retires capital credits (also called patronage dividends, patronage refunds, patronage capital, or equity capital) based on how much electricity you purchased during a year.

Member-owned, not-for-profit electric co-ops set rates to generate enough money to pay operating costs, make payments on any loans, and provide an emergency reserve. At the end of each year, we subtract operating expenses from the operating revenue collected during the year. The balance is called an operating “margin” and is returned to members when financial condition permits.

Boone REMC has received $622,065 in patronage from its wholesale power provider for 1994 and a portion of 1995. This amount will be returned to those who were members during this timeframe.

Additionally,  the Boone REMC board of directors has approved a retirement of $486,610 to former members from 1986-1997. 

Members and former members who are due to receive a retirement will be mailed a check.

To make a claim

For yourself: You will need to complete a Patronage Refund Agreement (available at the Boone REMC office) and provide a copy of a valid photo ID. If you return the form by mail, it must be notarized.

As a beneficiary (including spouse): Boone REMC needs a copy of the death certificate*, a copy of a valid photo ID, and a completed Patronage Refund Agreement (available at the Boone REMC office). If you return the agreement by mail, it must be notarized.

Checks for the claimed amounts should be issued within 4 to 6 weeks of receiving the appropriate documentation.

*Guidelines for requesting a death certificate:

You must contact the Boone County Health Department at 765-482-3942, option 2, to receive an application. Return the completed application to the health department, at 116 W. Washington St., Suite B202, Lebanon, IN 46052. You must also provide a clear copy of a valid photo ID. NOTE: It can take up to to two weeks to receive a death certificate.

For the remainder of 2016, certified death certificates are $10 each. As of Jan. 1, 2017, the cost will increase to $15. The health department accepts Visa, MasterCard, and American Express, along with cash, check, and money order for payment. Please be advised there is a $1 fee per transaction plus 2 percent of total purchase when paying via card.