|Paulding-Putnam to return $1 million to members|
|Thursday, December 20, 2012 9:33 PM|
PAULDING – The board of trustees at Paulding-Putnam Electric Cooperative approved the payment of $1 million in Capital Credit retirements for 2012.
Estates of deceased members will receive $490,000. Members who received service during 1986, 1987 and/or 2011 will have a retirement of $510,000. Current members will receive a credit on their December bill and former members, where applicable, will receive a check. The average retirement is $41; the actual amount received will be based on the actual patronage in the years being retired.
Cooperative CEO George Carter commented that “economic participation of the membership is a key cooperative principle and this is an example of how it works. The cooperative operates as a nonprofit corporation; any funds collected in excess of actual costs are returned to the membership.”
Because the members own the cooperative, the goal of the organization is not to maximize profitability but to cover only its costs. As a not-for-profit corporation Paulding-Putnam returns any revenues that exceed actual expenses. This return is called a Capital Credit.
Capital Credits are a major difference between cooperatives and other utilities. this retirement is another example of the benefits of being a member of the cooperative.
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