December 2011

$1.352 Million in Capital Credits will be Retired in December

Dear Member:

Happy Holidays from all of us at Midstate Electric! The board of directors and employees renew our commitment to provide safe and reliable service to our members at the lowest possible cost in the upcoming New Year.

Midstate Electric is a not for profit electric cooperative owned by its members/consumers, unlike an investor-owned utility, which is owned by its shareholders or investors. Members’ ownership in the cooperative is reflected on the cooperative’s balance sheet as equity. Each member’s portion of this equity is represented by capital credits. Like equity in your home, capital credits do not represent money in a bank account, but are a representation of the value of your ownership.

Capital credits are the margins (the difference between the cooperative’s income and its expenses) which are allocated to members of the cooperative based on their electric energy purchases from the cooperative. Capital credits are used by the cooperative as working capital for a period of time, then paid back or “retired” to the membership on a rotating basis.

Retirement of capital credits is not automatic. Each year the board of directors determines whether the co-op’s financial position permits the return, or retirement, of capital credits and, if so, what amount of capital credits will be retired. I am happy to report that the board has authorized the retirement of 100% of 1995’s and 1996’s capital credits.

Members who purchased power during 1995 and/or 1996 will receive capital credit refund checks in proportion to how much they contributed to those year’s margins. A total of $1.352 million in capital credits will be retired during the month of December, just in time for the holidays.

1993’s and 1994’s capital credits were retired in December 2010 for a total amount of $1.050 million.

Our office will be closed December 26 and January 2 to observe the holidays. In case of an outage or electrical emergency, our after-hours outages/emergencies lines (541) 536-2165 or (800) 752-5935 will be open 24 hours a day to assist you.

Bill A. Kopacz
General Manager

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