The SIEC Board of Directors has approved payment of patronage dividends during 2012 in the amount of $448,029; SIEC’s largest refund ever. The refund includes dividends allocated by SIEC to members for a portion of 1995, 1996 and 2011. The retirement of capital credits is the tangible demonstration our member’s ownership in Southern Iowa Electric Cooperative.
This refund will be distributed to our member’s on Dec. 1 in the form of a bill credit for all active members of the Cooperative. Former members will receive a check toward the end of December. Capital credit distributions from member-owned, not-for-profit utilities such as SIEC are somewhat similar to the dividends paid to share holders of investor-owned utilities. The difference is that a co-op’s “shareholders” are also the members that it serves and the “dividends” (capital credits) are distributed to the co-op’s member owners.
Even if you move off the Cooperative lines you will still receive the capital credits that you have earned; however, your check will be issued when the general refund is made to all the other members who have earned capital credits for that same period. Therefore, it is very important that you keep us updated with your current address so we can mail your capital credits to you.
Before distributing the capital credits, SIEC directors must consider the financial condition of the cooperative, the need for capital funds and the availability of loan funds. With this distribution, members will have received a total of $6,911,516 in patronage dividends and refunds over the past 73 years. SIEC directors and employees would like to thank our member’s for your continued support, and we look forward to serving you in the future.