Hawaii-based electric cooperative Kauai Island Utility Cooperative (KIUC) revealed this week it will begin issuing $2.5 million in 2018 patronage capital retirement bill credits to its cooperative members this June.
Patronage capital, sometimes called margins, refers to the overall money that covers the difference between a cooperative’s annual operating income and operating expenses. This includes all amounts received from sales of electric power or/and distribution services to members and other margins.
According to a report from Biz Journals, KIUC’s elected boards approved the said $2.5 million disbursements on April 23.
Allan Smith, chair of the Kauai Island Utility Cooperative (KIUC) board of directors, explained that their decision stemmed from the organization’s impressive annual result.
“We had excellent financial results in 2018, which allows us to exercise one of the fundamental benefits of being a not-for-profit cooperative that is owned by the members it serves,” Mr Smith said.
In an article published by The Garden Island, it was clarified that each member is expected to receive an amount based upon their individual usage during a year. For this year, the average amount to be returned is estimated to be around $34, based on usage of around 500 kilowatt-hours per month.
Members will be able to keep track of their retirement amount as a credit on their monthly bill. However, those who have inactive accounts with no less than $10 refund amount will receive a check instead. For those who have less than $10, the disbursement will remain in the member’s patronage account until it reaches $10, the report added.
Since becoming a cooperative in 2002, the Kauai Island Utility Cooperative (KIUC) has gained $116 million in equity, with a total return of $37.6 million to its members – this includes $32 million in patronage-capital retirements.