Midwest Electric this month is distributing $543,675 in patronage capital to about 5,800 current and former customers in west central Ohio. Eligible electric cooperative customers will receive the refund either as a credit on their electric bill, mailed around November 25, or as a separate check mailed the same time.
Patronage capital is the cooperative’s margins, or money left after all bills have been paid. Midwest Electric uses these margins for capital investments, such as building or replacing power lines, transformers and other electric plant investment.
After being used as working capital, the money is returned to customers as patronage capital refunds. It represents each customer’s ownership — or equity — in their cooperative. Patronage capital is allocated to customers in proportion to the dollar amount of electricity used.
“This patronage capital retirement demonstrates that you’re not just a customer...you are a part-owner of your electric cooperative,” said Rick Gerdeman, manager/CEO. “You have equity ownership in our physical assets — plus, you receive this financial return on those assets.”
Since 1955, Midwest Electric has returned about $12.4 million to customers.
This month’s payment will be to those who used Midwest Electric service in 1988, and the payment reflects 50 percent of the allocated patronage capital from that year. Last year, the cooperative returned the other 50 percent of patronage capital from 1988.
A typical residential customer who used 1,000 kilowatt hours per month that year will receive a patronage capital refund of about $62.
Based in St. Marys, OH, Midwest Electric is the customer-owned electric cooperative for 10,000 homes, farms and businesses in Auglaize, Mercer, Allen, Van Wert, Putnam, Shelby and Darke counties.
