Co-op returns over $2 million in patronage capital

GETTYSBURG, PA: Over the holiday season, Adams Electric Cooperative retired just over $2 million in patronage capital (the highest amount ever) to more than 38,000 current and former members.

The 2011 retirement of $2,054,000 marks the 38th consecutive year the cooperative has retired patronage capital, raising the total amount to $31.5 million returned to the local economy by Adams Electric. Retirements have exceeded $1 million each year since 1994.

As a non-profit cooperative, Adams Electric uses patronage capital from its members as necessary working capital, and to qualify for loans to upgrade and expand its electric distribution system.

“The ongoing solid financial condition of the cooperative has allowed it to retire patronage capital over the long term,” says Steve Rasmussen, CEO/general manager. “In an investor-owned utility, this money would go to stockholders instead of to local consumers.” The amount received is based on the amount of electricity each member uses.

In a December 19 letter to members, the Adams Electric board of directors noted that members have the option (under deregulation) to purchase their power supply from any licensed electric generation supplier (EGS) that chooses to serve the cooperative’s service territory. However, no EGS has chosen to do so.

In the meantime, Adams Electric continues to successfully control its distribution costs and deliver electricity to its members at rates that are lower than the state and national averages. The electricity distributed by Adams Electric comes mainly from nuclear and hydroelectric facilities that have less exposure to rising wholesale power supply costs.

Do we owe you money? There is still a list of current and former members of Adams Electric who have not yet received their 2010 Patronage Capital returns. See if we still owe you money by checking the list of Unclaimed Patronage Capital.