Sharing in the margins that remain after year's end is just another benefit of being a member-owner of your electric Cooperative. Your Cooperative temporarily uses the margins that remain after year's end, called Capital Credits, as equity capital until the capital credit dividends are returned to the membership after 15 years.
The amount of the individual patronage dividends just distributed depends upon the member-owner's electric usage 15 years ago, and how financially successful the Cooperative was at that time.
So, if you did business with the Cooperative in 2005, you will notice a bill credit on your July billing statement labeled "Capital Credits Retirement." This is your share of the $209,000 of capital credit retirements.
Additionally, your board of directors elected to return a portion of the capital credits dividends that were allocated in 2019 in a "Last-in, First-out" method. So, if you did business with Iowa Lakes Electric Cooperative in 2019, you will receive your share of the $700,000 of capital credits that were allocated in 2019 on July's billing statement.
As you may recall, Corn Belt Power Cooperative, one of our wholesale suppliers, also refunded a portion of the capital credits that your Cooperative was allocated in 2019 on a "Last-in, First-out" method. Your Cooperative received $1.77 million in capital credits dividends and directly passed on those refunded capital credits to our member-owners on their April billing statements.
To date, including this year's patronage dividend retirement, a total of $20,200,000 has been returned to Cooperative member-owners.
If you would like more information regarding patronage dividends/capital credits, please visit the Patronage page.