Patronage - sometimes referred to as capital credits - represents margins credited to members of a cooperative based on their purchases from the cooperative.
Each year Butler County REC's board of directors reviews margins and may set aside excess funds. These margins - retained as patronage capital - will be used to help keep the electric co-op financially sound and the quality of service as high as possible. The funds will also be used to retire debt and build equity in the co-op's distribution system.
This patronage allocation will be returned to members at a future date determined by the board of directors.
Patronage Allocation Update
June 2010 -- After reviewing the operating revenues for 2009, the board of directors at Butler County REC approved to set aside $449,525.39 in excess margins.
- What’s the member's share of this allocation? The member's share of this margin – or patronage allocation – is listed in the box directly below the account name on their June 2010 electric bill.
- When will members receive this money? Butler County REC is currently on a 19-year payback schedule, so this patronage allocation will likely be paid back in 2028.
- How was the patronage allocation calculated? The amount a member earns in a given year is based upon the amount of electricity used. The sum of the member's bills for a year was multiplied by a percentage to determine the allocation.
- Can a member use the allocation to pay their electric bill? No. Members may not receive this patronage allocation until 2028.
- What if a member moves? If a member moves or no longer receives services from Butler County REC, it is important to keep their address current with the co-op so future patronage disbursements can be properly mailed.
If members have questions about patronage allocation, please contact Butler County REC by phone at 319-267-2726 or 888-267-2726, or by email at butler@butlerrec.coop.
Patronage Refund Update
February 2010 -- Butler County REC made a refund of patronage dividends that totaled $130,401 to co-op members. After reviewing the operating revenues for 2008, the board of directors at Butler County REC approved the return of margins for 1991.
Anyone who received electric service from Butler County REC in 1991 should have received a check in February 2010. If you were a member then and have not received a check, please call our office in Allison at 319-267-2726 or 888-267-2726 or contact us by email at butler@butlerrec.coop.