Local company pays customers over $2 million
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The following is a news release from Fall River Electric.
ASHTON — Customers of Fall River Electric were collectively paid more than $2 million last week.
The payout was part of the company’s patronage capital program.
Since Fall River Electric operates as a nonprofit cooperative, it’s owned by the customers it serves. When revenues collected by the co-op exceed operating costs, those extra revenues become patronage capital, which is then disbursed to its owner-members over an approximate 20-year cycle. This retirement cycle helps the cooperative achieve its ideal equity level. It also helps the co-op obtain loans at lower interest rates, which helps to keep electric rates to members low.
Unlike investor-owned utilities that pay profits to stockholders, Fall River Electric’s patronage capital is a customer’s equity in the cooperative and is used in building new or maintaining existing infrastructure, including generation facilities, poles, wire, transformers, and substations. These cash back payments will be especially beneficial to members who are dealing with the continued effects of inflation.
Additionally, payments can be likened to an infusion of capital into our area’s economy just in advance of the Christmas holiday. It is one of the greatest benefits of belonging to an electric cooperative.
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 2006 through a portion of early 2007.
Members of Fall River Electric who have moved from the Co-op’s service territory can request an early discounted payout of their patronage capital equity.
Over the course of the Cooperative’s 86-year history, members have received over $34 million.
To learn more about Fall River Electric’s patronage capital program, click here.