Capital credits are now on the way for JREC members

The Jump River Electric Cooperative (JREC) board of directors recently approved the 2023 general retirement (return) of Capital Credits. Capital Credits are the tangible representation of how JREC members share in the cooperative’s financial success and operation as a member-owned, not-for-profit entity.

These credits are a unique benefit of being served by an electric cooperative.

Capital credits are the most significant source of equity for most cooperatives. This equity is required by lenders. Capital credits are like the dividends that investor-owned utilities pay to their shareholders (who may or may not receive service from the utility), except that cooperative “dividends” go back to the member-owners.

JREC tracks each member’s purchase of electricity and the patronage revenue that they have generated for the cooperative. At the end of the year, if there is excess revenue, called margins, the co-op allocates the margins to members, based upon their electricity use during the year.

Before Jump River’s nine-member board of directors decided whether a Capital Credit return could be made, they carefully considered a variety of data and economic conditions. Following this review, the board decided it was prudent to return $248,510 in capital credits, to active and former members.

Over $11 million in capital credits have been returned to JREC members since the first capital credits were allocated in 1955.

Current members of the co-op who are entitled to a return, will receive a credit on their November bill. For those entitled to a return, but who no longer receive service from Jump River, a return check will be mailed by the end of November. The minimum amount to be returned by check is $10.

Members are encouraged to call the cooperative if they have any questions about Capital Credits or check online, at jrec.com.