Tipton, Mo. (April 29, 2020) — As a part of the Covid-19 response effort by Co-Mo Connect Powered by Co-Mo Electric Cooperative, the cooperative’s Board of Directors decided during the April board meeting that Co-Mo would distribute $4.273 million to members during the months of May and June.
“For many, this pandemic has resulted in economic hardship,” said Co-Mo CEO Aaron Bradshaw. “We are extremely grateful to our Board of Directors who have made this choice to benefit our members. As a cooperative, we exist to improve the quality of life for the region we serve, and the distribution of these funds in response to Covid-19 is another way we are working to achieve that goal.”
The funds being distributed come from the Board of Director’s decision to retire $2 million in capital credits early this year, and from $2.273 million in funds received through the CARES Act.
This capital credit retirement marks the 16th straight year the cooperative has returned money via a credit on members’ electric bills. Since the cooperative was formed in 1939, the board of directors has authorized the return of more than $58 million to members.
When a Co-Mo electric consumer signed up to receive electric service from Co-Mo, they became a member-owner of an electric utility. While investor-owned utilities return a portion of any profits to their shareholders, electric co-ops operate on an at-cost basis. So, instead of returning leftover funds, known as margins, to people who might not live in the same region or even the same state as those paying for service, Co-Mo allocates and periodically retires capital credits based on how much electricity members purchased during a year.
The $2 million in early capital credit retirements will be distributed in May to active members who were using electric service before the end of 2018. This retirement will take the place of the traditional end of year capital credit retirement. Any decisions by the Board of Directors regarding retirements for inactive members will occur later this year.
Co-Mo recently received support funding through the CARES Act. The co-op received a total of $2.273 million, all of which will be distributed to the electric cooperative membership. These funds will be distributed during June to all current members who had electric service with Co-Mo from January to March of 2020.
“We are proud to be able to provide these funds to our members during these unprecedented times,” said Bradshaw. “The distribution of these funds allows our cooperative to benefit our members and reinvest in the communities and the local economy via those we serve.”