$1 Million in Patronage Dividends to be Paid in June
A Million Advantages to Being a Midland Power Member
Board authorizes $1 million in patronage dividends to be paid in June
Approximately 9,100 member-consumers of Midland Power Cooperative will receive patronage dividends on their power bill in June. Recognizing the economic hardship some member-consumers are facing due to the COVID-19 pandemic, the Midland Power Board of Directors approved the co-op’s 2020 patronage retirement to take place much earlier in the year. To further support the membership, the retirement funds will primarily consist of dividends from 2019 business activities.
“This patronage retirement comes at a time when many of our members face uncertain situations due to COVID-19, and we hope this will provide some relief for those who are struggling financially,” – CEO Bill McKim.
Patronage Allocations for Members
As a member-consumer of Midland Power, you are accumulating equity in the co-op through your monthly purchases from the co-op. In fact, each member-consumer has a patronage dividend (also known as capital credits) allocation account on file which tracks the member’s credit or equity accumulated each year. The cooperative is a not-for-profit organization, so when we experience additional income over expenses that money is allocated to the member-consumers. These allocations are returned to you over time, when the board determines that it is financially feasible to do so. You should receive a patronage allocation notice from Midland Power on your bill in May. It will detail your portion of the 2019 allocation, which is typically retired back to the membership several years after the allocation.
2020 Patronage Dividend Retirement
2020 is proving to be a unique year, and your board of directors has approved modifications to the 2020 patronage retirement in support of the needs of the membership. Instead of making the patronage retirement in the final quarter of 2020, your board has approved the retirement to take place in June. Additionally, a larger portion of the funds retired will come from the current year (funds allocated for 2019) and a smaller percentage of the funds retired will come from the oldest allocation (the remainder of funds allocated for 2004). For operational efficiency and member convenience, all current members will see this patronage retirement in the form a of a bill credit on the bill they receive in June. Former members, no longer served by the co-op, will receive a patronage retirement check in the mail if they are due $20 or more or if they are due to receive the final payment from their patronage account.
As an electric cooperative, Midland Power truly belongs to the local communities we serve, and any profits are shared back with our member-consumers over time.
To ensure receipt of future patronage dividend payments, keep your co-op informed of your mailing address, especially when you are no longer served by the co-op.