ASHTON, Idaho (KIFI/KIDK) - Fall River Electric Cooperative has mailed checks totaling $1,013,000 to 6,500 owner-members under its patronage capital program.
Fall River operates as a nonprofit cooperative but is owned by the customers it serves. When revenues collected by the cooperative exceed operating costs, those extra revenues become patronage capital. Those funds are then disbursed to owner-members on a 20-year cycle. The process helps Fall River achieve its equity level, which is used to obtain low-interest loans for large capital projects.
The amount of cash back that a member receives is based on how much electricity they purchased during the years being retired. This year, members are receiving patronage capital earned in 1998 and a portion of 1999.
"Fortunately our staff and management continue to do an outstanding job of managing our financial and physical resources, so our equity has dramatically improved in recent years, which is a significant contributing factor to the board's ability to retire patronage capital to our owner-members," said Fall River CEO/General Manager Bryan Case.