Patronage dividends - sometimes referred to as capital credits - represent margins credited to members of a cooperative based on their purchases from the cooperative.
Each year Franklin Rural Electric Cooperative'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
May 2023 -- After reviewing the operating revenues for 2022, the board of directors at Franklin REC approved to set aside $551,723.17 in excess margins.
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What’s the member's share of this allocation? The member's share of this margin – or patronage allocation – is listed to the left of the circle at the top of your electric bill received in May.
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When will members receive this money? Franklin REC is currently on a 20-year payback schedule, so this patronage allocation will likely be paid back in 2043.
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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.
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Can a member use the allocation to pay their electric bill? No. Members may not receive this patronage allocation until approximately 2043.
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What if a member moves? If a member moves or no longer receives services from Franklin REC, the member and his or her heirs are still eligible to receive patronage. That's why it is important to keep address current with us so future patronage disbursements can be properly mailed. We rely on former co-op members to send us their new addresses for patronage disbursement mailings.
If members have questions about patronage allocation, please contact Franklin REC by phone at 641-456-2557, or by email at franklinrec@franklinrec.coop.
Patronage Refund Update
July 2023 Members received dividends for the balance of 2003, a portion of 2004, and a portion of 2022 -- After reviewing the operating revenues for 2022, the board of directors at Franklin REC approved the return of margins for the remaining balance of 2003, a portion of 2004, and a portion of 2022. A refund of patronage dividends that totaled $376,000 was returned to co-op members.
Anyone who received electric service from Franklin REC in 2003, 2004, and /or 2022, and is a current member, should have received a bill credit in July 2023. Checks were mailed to former members with inactive accounts.
If you think you should have received a refund and did not receive a check, please call our office in Hampton at 641-456-2557 or contact us by email at franklinrec@franklinrec.coop.