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June Message from the Manager

 

You get the credit

Jerry King

Burke-Divide Electric Cooperative isn’t like other utilities—you, as a consumer and a member, own the business.

 

BDEC operates at cost— collecting enough revenue to run and expand the business with no need to raise rates to generate profits for distant shareholders.  Any money left over from revenues after all operating expenses are deducted are called margins by cooperatives.

 

Each year, these margins are allocated, or credited, to members receiving electrical service based on the amount of electricity purchased from Burke-Divide Electric Cooperative. In addition to co-op allocations, there may also be Generation and Transmission (G & T) allocations.  G & T allocations are the capital credits allocated to your account from the margins allocated to BDEC from our power supplier.

 

Money allocated back to you and other members is called capital credits.  These capital credits are put into a "holding account" for a number of years and used by BDEC to fund capital needs for items such as power line construction, transformers, trucks, inventory and other equipment. This is an underlying principle of the cooperative business model and is one more way we keep your electric rates as low as possible.

 

This "allocation" becomes your equity in the cooperative and is maintained in a separate account assigned to you.  When the co-op’s financial condition permits, the co-op retires, or pays, the capital credits to members.

 

At this year’s Annual Meeting, Burke-Divide Electric Cooperative will be retiring Cooperative capital credits allocated for the years 2002-2010 totaling $2,582,644.22.  G & T capital credits for these years will be retired later on when the Cooperative receives our retirement from the G & T.

 

As of 2017 year-end, Burke-Divide Electric Cooperative has retired $16,046,884 in capital credits to our member-owners since the Cooperative was formed in 1945.

 

Until next time,

 

Jerry King

General Manager

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