Patronage (Capital Credits)
As a member owned and operated cooperative, one of the principles we follow is a commitment to returning part of your investment.
Patronage, or capital credits, represent margins credited to members of a cooperative based on their purchases from the cooperative. Each year, Midland Power's Board of Directors reviews margins and may set aside excess funds. These margins will be used to help keep the electric co-op financially sound and maintain a 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.
When will members receive this money?
Patronage allocations are returned to members in the form of capital credit retirement. These are returned at a future date, if or when, approved by the board of directors.
How is patronage calculated?
The amount a member earns in a given year is based upon the total dollar billing for that year. The sum of the member's bills for the year is multiplied by a percentage to determine the allocation.
Can these monies be used to pay their electric bill?
No. These funds are not available to the member until a future date.
What if a member moves?
If a member moves or no longer receives services from Midland Power Cooperative, it is important to keep their address current with the co-op, so future patronage retirements are mailed to the former member's current address.