OCR Text |
Show Moon Lake Electric capital credit In a few days the members of Moon Lake Electric will receive in the mail, a notice telling them how much electricity elec-tricity they purchased during 1980. Moon Lake Electric is a non-profit corporation which is operated for the benefit of its members who also own it as a result of using its service. This means that no stock is sold, there are no dividends declared, and any excess of revenue over expenses (net margin) belongs to the members who provided that margin by purchasing electricity. Each year this margin is credited to a capita account for each member in proporation to the amount of electricity purchased. Since the cooperative must maintain a sound financial condition to assure its members always having good electrical elec-trical service, the capital credits are not returned to the members until such time, when in the judgement of the board of directors, the financial condition con-dition of the cooperative would not be impaired. Generally speaking, the concept of captital credits is a means by which the member-owners invest in their own business. The board of directors have set as their goal, the refunding of capital credits on a fifteen year rotation. The last capital credit payments were made in December of 1979 for year 1959. |