Since 2008, your cooperative has returned more than $18 million dollars back to you, our members, in the form of capital credits. As you know, members are allocated a portion of cooperative profits (margins) each year based on a member’s contribution to total revenue. Your 2015 allocation appeared on your June 2016 bill.

These allocations are not cash. They are a simple notification of what each member will receive 20 or more years later when your board of directors approves a retirement of capital credits.

In the couple of decades between allocation and retirement, your dollars are hard at work at your cooperative. These margins are an essential source of operating capital that is used for line construction, maintenance, unforeseen events, like major storms, and allow the cooperative to reduce interest costs related to borrowing money.

When the cooperative board of directors determines that the financial condition of the cooperative is healthy enough to make a retirement of capital credits, members receive bill credits in most cases. Members without a current account and some large commercial members will receive an actual check. Regardless, this is the day when we “show you the money.”

Traditionally, we have returned money to members in October to celebrate National Cooperative Month. This year will be different. Wolverine Power Cooperative will be retiring capital credits to its members in December 2016. Cherryland is one of those members. Therefore, Cherryland will retire capital credits to its members in the same month. This allows us to do one retirement without borrowing money and increasing our interest expense for 60 days. We expect this pattern to continue for at least the next three to four years.

How much am I talking about? At their September meeting, your board of directors voted to retire $3 million back to you this December.

Will we ever go back to retiring capital credits in October? I don’t think so. I believe future retirements will continue to occur in December.

We are anticipating member questions such as, “Where is my money?” or more likely, “Why is my October 2016 bill so much higher than my October 2015 bill?”

December certainly isn’t cooperative month, but I am hopeful that we will “show you the money” in time to bring some relief before the Christmas holiday. It may be a small gift in the big picture of the giving season, but it is our mission as a not-for-profit electric cooperative to return as much of your money to you as our financial condition will allow.