AN EXPLANATION OF PATRONAGE CAPITAL (CAPITAL CREDITS)
Empire Electric is a non-profit corporation formed as a membership Cooperative. As such, members are the shareholders and the stock is in the form of a "no fee" membership certificate.
Each year's margins (profits) are allocated back to the customers in the form of capital credits according to each customer's revenue for the year. These allocations are then paid back to the customers as the financial position of the Cooperative allows.
Since incorporation in 1939 through May 2012, Empire has retired over $17,486,205 in Cooperative and Generation & Transmission Capital Credits to Empire's customers. Empire's total assets as of June 2012 are $99,235,226 with a member equity of 59.46%. Empire does not pay allocated capital credits out of the normal rotation, other than to estates of deceased individuals. Interest is not paid on capital credits allocated and not yet retired.
Capital credit retirements to estates of deceased patrons (natural persons only) may be made as follows:
- The estate's legal representative must make a written request that capital credited to a deceased patron be retired before such capital would otherwise be retired under Empire's Bylaw provisions. Payments, if any, are prioritized by date of application.
- The Cooperative's financial condition will not be substantially impaired by making the refund and the aggregate amounts of deceased patron refunds does not exceed $30,000 in any calendar year. If refunds reach $30,000 within a calendar year, remaining applications will be considered in order of priority in the subsequent calendar year.
- Payment shall be made on a present value (discounted) basis assuming a 15 year rotation cycle and a present value percentage that corresponds to current interest rates on investments.
Click HERE to view a report on Empire Electric's Capital Credits for this fiscal year.
Click HERE for a list of Members who are owed Capital Credits from Empire Electric.