Capital credits are a benefit of membership in a member-owned utility.
Members of an electric cooperative have some very special advantages. One of these is capital-credit refunds.
The cooperative uses the annual revenues that exceed operating costs to build equity. These funds, along with borrowed capital, allow Blue Ridge to continue to expand electric service to growing areas, as well as to employ new technologies for the improvement of power quality. At a later time, as the financial position of the cooperative permits, the assigned margins are returned to the members who originally paid them as part of their electric bills.
On April 6, 2020, Blue Ridge Electric Cooperative will refund $1,000,000 in capital credits to its members. Checks will go into the mail on that date and will represent margins earned by the cooperative in previous years of operation. Each check amount represents that member's pro-rata share of the net earnings during the years covered by the payment.
In each of the last 38 years, Blue Ridge has returned capital credits to its members. Through the years, more than $27 million has been forwarded to recipients.
According to Blue Ridge President and CEO Jim Lovinggood, refunding patronage capital is a key element of the cooperative business model. "As a member-owned organization, we believe it's good business practice to employ regular rotations of capital credits. These payments represent the return of a portion of the investment members have made in the cooperative through their purchases of electricity. We take pride in fulfilling this responsibility."
If you should move to a new location, be sure to leave a forwarding address with Blue Ridge so that we can continue to send your capital credit check to you in the years to come.
"Regular retirements of capital credits are just one of the many benefits cooperative members receive," said Jim Lovinggood, Blue Ridge Electric President and CEO. "As a member-owned organization, we also place a strong emphasis on service. Our reason for existing is to serve our members."
When you hear about reward programs, remember this one. There's no action you need to take, and the concept is simple. The cooperative provides reliable power at the lowest possible price, AND we return money to you. This is a principle that has been around since the day Blue Ridge Electric Cooperative was established.