$1 million paid-out to Fall River Electric Company
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The following is a news release from Fall River Electric Company.
ASHTON This month, Fall River Electric Cooperative mailed cashback checks to more than 6,200 of its owner-members (customers) totaling just over $1 million dollars as part of its patronage capital program.
Because Fall River Electric operates as a nonprofit cooperative, it is in fact owned by the customers it serves which the co-op refers to as owner-members. When revenues collected by the co-op exceed operating costs, those extra revenues become patronage capital, which is then disbursed to its owner-members on an approximate twenty-year cycle. This retirement cycle helps the Cooperative achieve its ideal equity level which also helps the co-op obtain loans at lower interest rates which helps to keep electric rates to members lower.