BLUEBONNET ELECTRIC TO RETURN CAPITAL CREDITS TO MEMBERS

  

Next month Bluebonnet Electric Cooperative will return a total of $3.9 million to its members. The money, called capital credits, is similar to dividends that for-profit companies pay their investors.

Capital credits are excess revenue above what it takes to run the co-op. Bluebonnet’s Board of Directors unanimously voted to approve the $3.9 million capital credits payment during its April meeting. When determining how much to return to members, the directors consider the impact the amount returned to members will have on electric rates and the co-op’s financial strength.

“This is one of the easiest votes the directors cast and one we look forward to each year,” said Ben Flencher, Bluebonnet’s Board chairman. “Paying capital credits is one of the most important differences between co-ops, investor-owned and city-owned electric utilities. Bluebonnet’s excess revenue goes directly back to where it came from – our members – rather than to investors or transferred to a city’s general fund.”

From 2005 to 2014, Bluebonnet returned $28.6 million to its members.

“The ability to return millions of dollars to our members year after year is a testament to how well-run and financially strong their co-op is,” Flencher said.

The amount each member gets back depends on how much electricity they used in previous years and how long they have been a Bluebonnet member. Current members will receive a credit on their May electric bill for their share of this year’s capital credits retirement. Former members who are still owed a capital credit will receive a check in May or June.

Bluebonnet Electric Cooperative is one of the largest electric cooperatives in Texas and has been providing power to its members since 1939. Bluebonnet serves nearly 87,000 meters and owns and maintains 11,000 miles of power lines, located across more than 3,800 square miles within 14 Central Texas counties. Bluebonnet’s service area stretches from Travis County to Washington County, and from Milam County to Gonzales County. For more information about Bluebonnet Electric Cooperative, go to bluebonnet.coop and follow the co-op on Facebook and Twitter.