What is Patronage?
Patronage dividends - sometimes referred to as capital credits - represents margins credited to members of a cooperative based on their purchases from the cooperative.
Each year Butler County REC's board of directors reviews margins and may set aside excess funds. These margins - retained as patronage capital - will be used to help keep the electric co-op financially sound and the 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. This patronage allocation will be returned to members at a future date determined by the board of directors.
Patronage Allocation Update
June 2020 -- After reviewing the operating revenues for 2019, the board of directors at Butler County REC approved to set aside $993,580.67 in excess margins.
- What’s the member's share of this allocation? The member's share of this margin – or patronage allocation – is listed in the box directly below the account name on their June electric bill.
- When will members receive this money? Butler County REC is currently on a 19-year payback schedule, so this patronage allocation will likely be paid back in 2038.
- How was the patronage allocation calculated? The amount a member earns in a given year is based upon the amount of electricity used. The sum of the member's bills for a year was multiplied by a percentage to determine the allocation.
- Can a member use the allocation to pay their electric bill? No. Members may not receive this patronage allocation until 2038.
- What if a member moves? If a member moves or no longer receives services from Butler County REC, the member and his or her heirs are still eligible to receive patronage. That's why it is important to keep address current with us so future patronage disbursements can be properly mailed. We rely on former co-op members to send us their new addresses for patronage disbursement mailings.
If members have questions about patronage allocation, please contact Butler County REC by phone at 319.267.2726 or 888.267.2726, or by email at email@example.com.
Patronage Refund Update
February 2020 Members receive dividends for 2001 and a portion of 2018 -- After reviewing the operating revenues for 2019, the board of directors at Butler County REC approved the return of margins for 2001 and a portion of 2018. A refund of patronage dividends that totaled $1,023,699.39 was returned to co-op members. The amount is based on usage in 2001 from Butler County REC and 2018 from Corn Belt Power Cooperative.
Anyone who received electric service from Butler County REC in 2001 and/or 2018 should have received a bill credit in February 2020. Checks were mailed to former members with inactive accounts.
If you should have received a refund and did not received a check, please call our office in Allison at 319.267.2726 or 888.267.2726 or contact us by email at firstname.lastname@example.org.