The Enlightener

December 2006

$1.2 Million in Capital Credits Returning to Members

Blue Ridge Electric is pleased to announce that at the November 16 board meeting, the board of directors approved a capital credits retirement of $1.2 million. The retirement represents 20 percent of the cooperative’s 2005 margins and will be paid to members in December 2006.

Members due $15 or less will receive a credit on their bill if they have an active account, while members receiving $15 or more will receive a check which will be mailed separately from their December electric bill.

Capital credits benefit the member-owners of cooperatives like Blue Ridge Electric.

One of the advantages of a cooperative is providing “at cost” service, which means cooperatives don’t exist to earn a profit. At a cooperative, there is no stock to be purchased or sold; the members are the owners of the business.

The capital credits structure allows cooperatives to benefit members by returning a portion of excess funds left over at the end of the year after all operational expenses have been covered. Each year, the board of directors carefully considers the financial condition of the cooperative and makes the decision to authorize a capital credits retirement.

Capital credits represent each member’s ownership of the cooperative. They are the margins allocated to the members of the cooperative based on their purchases from the cooperative. These margins are retained for a period of years and used as capital to operate the business. Until capital credits are returned in the form of a cash refund or credit on your bill, they are invested in power lines, transformers, inventory and other necessary items to provide members with reliable electric service.

For 2006, capital credits refund represents 20 percent of the company’s margins from the 2005 fiscal year. The amount includes $554,268 in capital credits the cooperative has paid throughout the year to estates of members who passed away this year.

“Our members trust the cooperative and its board of directors to maintain the health, efficiency, and viability of Blue Ridge Electric,” said CEO Doug Johnson. “Every time we award capital credits, it is an opportunity to demonstrate the power of the cooperative form of business.”

Members Only News
- For Members of Blue Ridge Electric

Holiday Electrical Safety

The Electrical Safety Foundation International (ESFI) is reminding those at home and in the workplace to keep electrical safety in mind when decorating for the holiday season:

Before decorating, read and follow the manufacturer’s instructions concerning installation and maintenance of all decorative electrical products.
Use lights and other electrical decorations certified by a recognized independent testing laboratory such as CSA, UL, or ETL.
Outdoors, use lights and other electrical decorations certified for outdoor use.
Carefully inspect each decoration before plugging into an outlet. Cracked, frayed, loose or bare wires, as well as loose connections can cause electrical shock or start a fire. Replace damaged items.
Always unplug electrical decorations before replacing light bulbs or fuses.
Do not mount or support light strings in a way that might damage the cord’s insulation.
Never nail or staple light strings or extension cords.
Do not connect more than three light string sets together.
Light strings with screw-in bulbs should have no more than 50 bulbs connected together.
Do not overload extension cords – they can overheat and start a fire. Keep all outdoor extension cords and light strings clear of snow and standing water.
Never use electric lights on a metallic tree. The tree can become charged with electricity from faulty lights.
Do not allow children or pets to play with electrical decorations. Even small light decorations can produce a fatal shock if they are misused.
Turn off all electrical decorations before leaving home or going to bed.

Statement of
Nondiscrimination

Blue Ridge Electric Membership Corporation is the recipient of Federal financial assistance from the Rural Utilities Service, an agency of the U.S. Department of Agriculture, and is subject to the provisions of Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1973, as amended; the Age Discrimination Act of 1975, as amended, and the rules and regulations of the U.S. Department of Agriculture. In accordance with Federal law and U.S. Department of Agriculture’s policy, this organization is prohibited from discriminating on the basis of race, color, national origin, age, or disability. The person responsible for coordinating this compliance effort is Julie O’Dell-Michie, Vice President of Human Resources and Administration. To file a complaint of discrimination, write to: USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue, SW, Washington, DC 20250-9410, or call (202) 720-5964 (voice or TDD). Both USDA and Blue Ridge Electric Membership Corporation are equal opportunity providers and employers.

The Perspective

An Editorial by Chief Executive Officer Doug Johnson

The Cooperative Advantage

Many Americans do business with a cooperative every day. Member-owned cooperatives exist in almost every industry from energy to agriculture to healthcare. Cooperatives are a huge part of the economy of the United States and serve some 120 million members, or 40 percent of all Americans.

While cooperatives resemble for-profit companies in some ways, they are very different in other ways. One of the most important differences is that cooperatives are not driven by profit. For-profit companies exist to return a profit to their shareholders.

A cooperative’s mission, on the other hand, is to meet its members’ needs for goods or services. Electric co-ops became active in 1936 to ensure access to electricity for the nation’s rural areas. Cooperatives in general have a long history dating back to 1752 when Ben Franklin started the first cooperative in Philadelphia.

A cooperative’s main focus is to efficiently manage costs to benefit its member-owners. Examples of this include our ongoing efforts to improve operating efficiencies and our work to secure favorable wholesale power contracts. Our employees also work with members to make sure you have the information you need to use energy wisely. But if we find it necessary to pass along cost increases to our members, you can trust that the decision was based on keeping the business financially strong on behalf of all members. We are not driven by the profit motive to make money for outside investors, but rather to benefit our member-owners.

At a time when Americans’ energy bills are going up around the country, the cooperative model and way of doing business has proven to be very effective in keeping member costs affordable.

We are not profit-driven and we don’t exist to impress Wall Street every quarter. Rather, we are service-driven and operate at cost for the benefit of those we serve. You can bank on the cooperative difference and our commitment to you, our member-owners.

Holiday Closing

Blue Ridge Electric offices will be closed
Monday, December 25 and
Tuesday, December 26
in observance of Christmas,
and Monday January 1, 2007, in observance
of New Year’s.

Have a blessed holiday season!

Published monthly by Blue Ridge Electric Membership Corporation for its 52,766 members