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GEC Board of Directors Refund Over $182,000 in Capital Credits
Just one of the rewards of Cooperative Membership

The board of directors for Grundy Electric Cooperative has authorized the distribution of $182,525.17 in capital credits to current and former member-owners of the cooperative. The board voted to retire twenty-five percent each of the years 1980 and 2006 to the membership.

When our members signed up for electric service from Grundy Electric, the co-op agreed to provide the best possible service at the lowest possible cost. Electric utilities are a capital-intensive industry requiring a large investment in plant and equipment and each member of Grundy Electric contributes to the equity of the cooperative through the margins of the utility. Member equity is the essential tool for Grundy Electric to build, maintain, and upgrade the facilities necessary in providing members with reliable, economical electric service. This investment is also necessary to keep up with construction during periods of growth and implement the latest necessary technology.

At the end of each operating year, any excess revenue is allocated back to the members (or former members) on a basis directly proportional to the amount of kilowatts used in a given year. In other words, capital credits are to a cooperative what shares of stock are to a for-profit company. When a person owns stock in a for-profit company, their stock may pay dividends based on the performance of that company.

If you are a customer of an investor-owned utility, you have no equity to show for the bills you pay and regardless of how much you spend or how many years you contribute to their operation, you’re only a customer and draw no return on your investment unless you also buy stock in the company. Members of Grundy Electric are owners of the cooperative and have democratic control of the cooperative and every time they turn on a light, watch TV or use their electric stove, members add to their equity in the co-op and accumulate capital credits. At Grundy Electric, members accumulate dividends based on their total electrical costs for that given year.

The capital credit refund checks were presented to members during the Cooperative’s Holiday Open House events held in Bethany, Princeton and Trenton. The remaining checks were mailed to those members who were unable to attend any of the open house events.

Grundy Electric Cooperative began returning capital credits as part of a general retirement in 1990 and to date, Grundy has refunded over $5.5 million in capital credit allocations to current and past members.

If you were a member of Grundy Electric Cooperative during 1980 or 2006 and have had a change of ad-dress, please notify the Cooperative’s business offi ce by calling toll free 1-800-279-2249 or 660-359-3941.

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