Patronage (Capital Credits)

Patronage (Capital Credits)

Patronage (Capital Credits)

As a member owned and operated cooperative, one of the principles we follow is a commitment to returning part of your investment.

Patronage, or Capital Credits, represent margins credited to member-owners of a cooperative based on their purchases from the cooperative.  Each year, Grundy County REC’s Board of Directors reviews margins and may set aside excess funds.  These margins will be used to help keep the electric co-op financially sound and maintain a quality of service as high as possible.  The funds will also be used to retire debt and build equity in the co-op’s distribution system. 

Grundy County REC publishes a list of all unclaimed Patronage in the newsletter annually.  As provided by Iowa Statutes, the cooperative may deem any unclaimed dividends to be forfeited after three years.  The abandoned property can be used for education or economic development purposes deemed appropriate by the cooperative. 

 

When will member-owners receive this money?

Patronage allocations are returned to member-owners in the form of patronage retirement.  These are returned at a future date, if and when, approved by the Board of Directors.

How is patronage calculated?

The amount a member-owner earns in a given year is based upon the total dollar billing for that year.  The sum of the member-owner’s bills for the year is multiplied by a percentage to determine the allocation.

Can this be used to pay an electric bill?

No.  These funds are not available to the member-owner until a future date.

What if I move?

If a member-owner moves or no longer receives services from GCREC, it is important to keep their address current with the cooperative, so future patronage retirements are mailed to the former member-owner’s current address.