HENDERSON, KY. – Kenergy’s Board of Directors voted on Tuesday, March 8, to return nearly $3 million to its member-owners in the form of a capital credit retirement.
The difference between a cooperative such as Kenergy and an investor-owned utility is that a cooperative is a not-for-profit that is owned by those it serves. At the close of each fiscal year, margins are allocated back to the membership in the form of capital credits. This allocation is based on the dollar amount of electricity members purchased during the same year.
The 2016 retirement represents net margins allocated in 1986 (50 percent), 1987 (100 percent) and 1988 (75 percent).
For this year’s retirement, current members, who bought electricity from the cooperative between 1986 and 1988, can expect a credit on their June bills. Former members who are eligible will receive checks in the mail if their portion of the retirement is greater than $5.
At this time, Kenergy continues to calculate amounts to be paid to members. After bill statements arrive in June, members with questions may call the co-op’s office.
Regarding the estates of deceased members, capital credits are retired on a prorated basis upon notification of death. Therefore, some deceased members’ estates already received their retirement for the years 1986-1988.
Since 2012, Kenergy has returned more than $13 million to its members and former members in the form of capital credit retirements.