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Fall River customers to receive cash back payments
ASHTON, Idaho (KIFI/KIDK)-Fall River Electric Cooperative has mailed just over $1 million in cash back checks to more than 6,200 owner-members this week.
The checks come from extra revenues collected by the co-op that exceed operating costs. Those revenues become patronage capital that is then disbursed to owner-members (customers) on an approximate 20-year cycle.
The retirement cycle helps Fall River achieve its ideal equity level, which helps the co-op obtain loans at lower interest rates. That, in turn, helps keep electric rates lower.
The amount of cash back that a member receives is based on how much electricity they purchased during the years being retired. This year, members are receiving patronage capital earned in 1999 and a portion of 2000.