CVEC Refunds $1.6 Million to Cooperative Members : 5.25.10

Lovingston
Nelson County, Virginia
Central Virginia Electric Cooperative announced that many of its 30,000 Cooperative member-owners will receive a nice surprise during the month of June, a credit on their electric bill or a check from CVEC in the mailbox. Earlier this year, the CVEC Board of Directors voted to return to its members $1.6 million invested in the distribution system in previous years

The source of the member investment was from margins, the revenue remaining after CVEC expenses. Unlike for-profit utilities that pay annual dividends to stockholders, an electric cooperative allocates any remaining revenue (margins) to each member. CVEC first calculates the member’s share based upon his or her power consumption and then the Cooperative notifies each member during the month of May that his or her patronage capital credit account has been updated.

CVEC Board Chairman Jace Goodling described the cooperative business model. “CVEC not only provides great service and competitive energy rates, but the cooperative business model ensures that every customer owns a portion of the utility. With the investment of annual margins, member equity accounts for 30% of all CVEC assets, including the poles, wires and transformers that carry electricity to our homes.”

While CVEC traditionally operates with very low margins compared to other utilities, the Cooperative Directors look to return or “retire the member investment” whenever possible. CVEC will refund 100% of the capital credits to people who were member-owners during the 1983 calendar year and CVEC will refund 20% of the capital credits to those where were members in 2009.

Refund amounts below $50 will be received as a credit on the CVEC electric bill and refunds greater than $50 will be sent in the form of a check to members at their mailing address.

Goodling thanked CVEC members for their support throughout the year and encouraged member-owners to attend the CVEC Annual Meeting on June 23 and as well as participate in a series of District Meetings to be held during the first two weeks of June.

CVEC on the web: http://www.forcvec.com