{"id":115330,"date":"2019-03-23T08:30:29","date_gmt":"2019-03-23T13:30:29","guid":{"rendered":"https:\/\/www.thevwindependent.com\/news\/?p=115330"},"modified":"2019-03-23T08:30:52","modified_gmt":"2019-03-23T13:30:52","slug":"midwest-electric-gives-back-to-members","status":"publish","type":"post","link":"https:\/\/thevwindependent.com\/news\/2019\/03\/23\/midwest-electric-gives-back-to-members\/","title":{"rendered":"Midwest Electric returns $$ to members"},"content":{"rendered":"\n

VW independent\/submitted information<\/em><\/p>\n\n\n\n

ST. MARYS — After paying back nearly $1.5 million to members late last year, Midwest Electric is returning another $1 million in patronage cash back to members in late March due to having a strong financial year. Checks will be mailed March 21, with the average residential member receiving a $71 check. <\/p>\n\n\n\n

Last November\u2019s $1.5 million was paid out to members in the form of bill credits via the cooperative\u2019s general patronage retirement — the margin between income and expenses that is paid back to members. This is what makes the not-for-profit cooperative business model different from other utilities. But this month\u2019s extra payment is separate, resulting from high margins (the cooperative word for profit) in 2018. <\/p>\n\n\n\n

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According to CEO Matt Berry, the cooperative budgeted $2.6 million in margins for 2018, but due to high sales and lower expenses, the actual margins came in at $3.6 million. As a not-for-profit electric provider, Midwest Electric needs to generate a small margin to help fund electric system reliability upgrades (such as replacing poles and lines), but the cooperative\u2019s strong position allows it to do both — invest in the future and give back to members.<\/p>\n\n\n\n

\u201cThose margins still belong to you, the member-owners,\u201d Berry said. \u201cComing in over budget, we could\u2019ve just kept it at that and returned the $3.6 million to members at a later date. But since we have a healthy equity position and returning a portion of that now will not impact electric rates, we decided to go ahead and return $1 million now rather than run our 16-year patronage cycle and wait until the year 2034.\u201d<\/p>\n\n\n\n

Berry noted that 2018\u2019s margins resulted from sales being much higher than expected due to weather and expenses being lower. The cooperative has not had a rate increase since 2010. <\/p>\n\n\n\n

This month\u2019s special payment is for those who were members in 2018 and is based on the amount of electricity used in 2018.<\/p>\n\n\n\n