In stark contrast to a doom and gloom economy, a successful electric cooperative returns $7.5 million to members in October

GreyStone Power returned its largest capital ever to members the first week of October. During a year when the stock market is uncertain and finances are strained, people who receive electricity from GreyStone Power, known as member-owners, will receive a total combined solid return of $7.5 million for their investment in the cooperative. The return is especially timely since the cooperative is celebrating its 75^th anniversary at its annual meeting of members Oct. 8.

            GreyStone has returned more than $55 million in capital credits to members since 1936, with the latest installment of $7.5 million to be sent out to 123,386 members during the first week of October.

            “We are thrilled to send out the largest amount ever at the same time we are celebrating our 75^th anniversary,” says Gary Miller, President/CEO of GreyStone Power. “During this slow growth time, we are pleased to have been able to build equity in the corporation, enabling us to benefit our members in this way.

            “Some of our members don’t realize we’re a nonprofit electric cooperative, owned by everyone who receives power from us,” says Miller. “This capital credits check gives our members an annual return on their investment in GreyStone Power and reminds them of the difference between getting power from us or from an investor-owned utility that operates to pay dividends to stockholders. As a non-profit cooperative, our only reason for existence is to serve our members.”

            GreyStone Power Board Chairman Calvin Earwood echoed Miller’s remarks. “Since the co-op’s beginning in 1936, GreyStone has been successful due to its dedication to fiscal conservatism and efficient management of members’ funds. Ever since we began in 1936, our members have entrusted their money to us, and had faith in us to use it wisely. I am pleased to say that everyone from the board of directors to each employee takes their trust in us very seriously. We are determined to serve members in the best way we know how. Surpassing members’ needs and expectations is our focus every day,” he said.

            Revenues exceeding the cost of service to individuals and businesses that purchase energy from the cooperative are credited to a special account in each member’s name. Whenever financially feasible, a portion of the money is returned to members in the form of capital credit checks. In 2011 members are receiving a return on their investment in GreyStone Power from the years 2010, 1990, 1991, and 1992. Only those receiving power from GreyStone in those years will receive checks.

            Checks can range anywhere from $5 to several thousand dollars for commercial members, whose businesses consume much larger amounts of electricity. The amount of money members receive is determined by how much electricity they used during the years for which capital is being retired, and the co-op’s cost of distributing the power during that time.

            While most members do not choose their power supplier, some large businesses moving into the service area may have the option to select between GreyStone Power and other power suppliers, depending on their size. One of the unique advantages GreyStone offers these businesses is capital credits.

            Education gets the highest overall return on their investment in GreyStone Power. “School systems really benefit from capital credits,” says Miller. “GreyStone Power is able to give money back to the schools each fall. That’s the power of receiving electricity from a nonprofit cooperative!”

            GreyStone Power does not immediately distribute the full amount of surplus capital at the end of each year; some of the member capital is put in reserves in order to keep rates as low as possible, and to deal with unforeseen challenges and rising power costs. Annually the Board of Directors reviews the cooperative’s financial health, government restrictions and fluctuating power costs to determine if money can be released to members or if it needs to be kept in reserves to handle fluctuating market costs.

            Checks are sent to each member’s last known address. Since some members may have moved from GreyStone’s service area who had service during those years, it’s important to leave a forwarding address with the cooperative. If a check isn’t claimed after five years, the money is used through the GreyStone Power Foundation, Inc. to fund scholarships for deserving students and assist members and the public through charitable organizations in the community.