Callaway Electric is returning more than $1 million to local co-op members

Thomas W. Howard, CEO/General Manager

The board of directors of Callaway Electric Cooperative has voted to return more than $1 million in capital credits to electric cooperative members this December. The return represents money allocated to cooperative members based on their electric billing in the years 2002-2022.

Anyone who signs up for electric service with Callaway Electric becomes a member/owner of the cooperative. Part of the benefit of cooperative membership includes receiving capital credits. At the end of each year, the cooperative’s accounting records are reviewed. Any money that is left after all expenses are paid and financial obligations are met, is allocated to each cooperative member based on their electric billing for the year. The allocated amount is recorded in a capital credit account for each member.

The money is then used to operate the cooperative and is returned to members when the cooperative’s financial condition allows. Each year, the board of directors reviews the finances and makes a decision on the ability to return capital credits and the amount to be returned.

In December 2023, 50% of remaining member capital credit balances from 2002 and ½% of the members’ total remaining capital credit balance for the years 2002-2022 will be refunded. The total refund will add more than $1 million to members living in and receiving service right here in our local communities. This illustrates the unique benefit of cooperative membership compared to other business models.

Active members who received electric service during 2002-2022 will receive the refund as a credit on their December electric statement. Any members who have moved outside of our electric system will receive payments by mail to their current address on file. It is essential for any member who relocates outside the service area to keep their address updated with Callaway Electric.

Many of you may not remember the day the lights came on for rural Callaway and southern Montgomery Counties. The effort began in 1936 and continues to change rural life in positive ways today. Our founding leaders banned together, going door to door to collect membership fees and start a cooperative business that would make rural residents lives flourish. The movement to electrify rural areas started at a time when larger electric utilities would not invest the money to extend service outside of cities.

Thanks to their dedication, Callaway Electric members continue to reap the benefits of those efforts. Annual capital credit allocations and refunds are not guaranteed, but they have been returned to members of Callaway Electric Cooperative for more than 30 consecutive years. We are proud to be a part of this cooperative business and serve our members, reporting positive news such as the return of capital credits.

May each of you have a blessed and merry Christmas.