News

5/13/2010

Bluebonnet Members Receiving $2.8 million in Capital Credits

Bastrop – Bluebonnet Electric Cooperative this month began distributing $2.8 million in capital credits to its members. As a member-owned, nonprofit electric cooperative, capital credits represent the members’ return on equity in Bluebonnet.
 
“Each year Bluebonnet’s directors look at ways to return the largest amount possible to our members while maintaining competitive rates and a healthy balance sheet,” said Rick Schmidt, Bluebonnet board president. “Receiving capital credits is one of the many advantages our members have over consumers who get their electricity from an investor-owned or municipally owned utility.”
 
Bluebonnet’s members invest in the cooperative when they pay their electric bills. In turn, members share in the cooperative’s operating margins through capital credits. The retirement of capital credits ensures the cooperative maintains its exempt status by operating at cost.
 
Annually, Bluebonnet’s board of directors determines the amount to be returned to members. Typically, the directors retire 2 percent of Bluebonnet’s total equity, as well as any unplanned revenues, to be paid in capital credits.
 
“Bluebonnet has returned capital credits to its members for more than 37 consecutive years,” Schmidt said. “This year’s allocation brings that amount to more than $15 million. We will continue to provide reliable electricity at competitive rates and be good stewards of our members’ investment.”  
 
Members with active accounts will receive credits on their bills for their capital credit amount. Inactive members who had a credit of greater than $3 will receive a check by mail. Capital credits will be applied to active accounts in May and checks will go out in May and June.
 
Bluebonnet Electric Cooperative is one of the largest electric cooperatives in Texas and has been serving its members since 1939. Bluebonnet serves 80,000 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 down to Gonzales County. For more information about Bluebonnet Electric Cooperative go to www.bluebonnetelectric.coop, or follow us on Facebook and Twitter.

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