May 24, 2010
Central Virginia Electric Cooperative announced that many of its 30,000 Cooperative member-owners will receive a nice surprise during the month of June, a credit on their electric bill or a check from CVEC in the mailbox.
Earlier this year, the CVEC Board of Directors voted to return to its members $1.6 million invested in the distribution system in previous years.
Unlike for-profit utilities that pay annual dividends to stockholders, an electric cooperative allocates any remaining revenue (margins) to each member. CVEC first calculates the member’s share based upon his or her power consumption and then the Cooperative notifies each member during the month of May that his or her patronage capital credit account has been updated.
CVEC Board Chairman Jace Goodling described the cooperative business model. “CVEC not only provides great service and competitive energy rates, but the cooperative business model ensures that every customer owns a portion of the utility. With the investment of annual margins, member equity accounts for 30% of all CVEC assets, including the poles, wires and transformers that carry electricity to our homes.”
Refund amounts below $50 will be received as a credit on the CVEC electric bill and refunds greater than $50 will be sent in the form of a check to members at their mailing address.
Details are available in the CVEC Annual Report.