Last week, Fall River Electric Cooperative sent out cash back checks amounting to more than $2.2 million to its owner-members as part of its patronage capital program. Operating as a nonprofit, the cooperative is uniquely owned by its customers, referred to as owner-members. When the co-op’s revenues surpass its expenses, the surplus becomes patronage capital, which is then returned to the members over roughly a 20-year period.
This system not only helps the Cooperative maintain an optimal equity level for securing lower interest rate loans but also contributes to keeping electricity rates affordable for its members. Unlike investor-owned utilities where profits go to shareholders, in Fall River Electric, this capital is reinvested into infrastructure like generation facilities, poles, and transformers, directly benefiting the community.
The timing of these payments, particularly beneficial amidst ongoing inflation, acts as an economic boost for the area, especially with the Christmas season approaching. The amount each member receives is based on their electricity usage during the years the capital is retired, specifically from 2006 to early 2007 in this cycle.
Members who have moved out of the service area can also opt for an early, discounted payout of their equity. Over its 86-year history, Fall River Electric has distributed over $34 million back to its members. For more on the patronage capital program, visit Fall River Electric’s website.
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