Tri-State announces return of capital to its membership for 2019
Tri-State Generation and Transmission Association announced it has completed payment of approximately $30 million in patronage capital refunds to its members for 2019, and allocated an additional $45 million patronage capital to its members, according to a press release from the energy provider.
Tri-State says the move demonstrating the value of the cooperative business model and its strong financial position. Through the cooperative business model, patronage capital is each member’s share of the net margins earned by the cooperative and allocated to its members. Allocated patronage capital is refunded to cooperative members over time, according to Tri-State.
Tri-State returned $30 million in patronage capital to its members for 2019, and has returned $100 million over the past four years.
“The allocation and return of capital is one of the significant benefits of cooperative membership and a hallmark of the cooperative business model,” said Rick Gordon, chairman of the Tri-State board and director of the Mountain View Electric Association in Limon, Colo. “The allocation and payment of patronage capital contributes to each members’ financial health by strengthening their balance sheets and providing an inflow of cash.”
Tri-State has allocated patronage capital to its members from its net margins each year, and has returned patronage for 37 straight years.
“The return of patronage capital provides our member distribution systems with the opportunity to return capital directly to their consumer-members, or address other needs that will allow them to continue to provide reliable, affordable and responsible energy services,” Gordon said.
Tri-State’s wholesale rates have not increased in the past four years, and are forecast to remain stable or decrease over the next decade. Through 2050, Tri-State forecasts rate changes to be below the rate of inflation, according to the press release.
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