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Tag: Membership Equity

Trico Members to receive record $5.4 million


Trico Members to receive record $5.4 million

December 1, 2023

There are many benefits that come with cooperative membership, but perhaps one of the best benefits is Membership Equity – formerly Capital Credits.

For the 14th straight year, the Trico Board of Directors has approved the retirement of Membership Equity in the amount of $5.4 million, which is a record-high amount. As a Trico Member, you are automatically enrolled in Membership Equity.

Look for your Membership Equity refund as a credit on your December bill. If you would prefer to receive your Membership Equity by check in future years, email us at MembershipEquity@trico.coop or call us at (520) 744-2944, ext. 1510. To receive a check, your refund must be over $10 for both active and inactive accounts.

Trico has been a not-for-profit electric cooperative for more than 75 years. When Trico’s revenues exceed its cost of operations, a profit (margin) is created. Trico allocates its profits to its Members in the form of Membership Equity. Annually, when the Cooperative’s financial condition permits, Trico pays, or retires, a portion of the allocated Membership Equity.

We work hard to provide service in a cost-effective manner so we can return Membership Equity to our Members. We changed the name to Membership Equity to highlight the fact that it is your equity in the Cooperative and you are an owner of Trico. It is one significant way we show you are not just a customer you are a Member.

If you would like to donate your Membership Equity to the Trico Foundation, visit our website at www.trico.coop/membership-equity.

We hope this enhances your holiday season. On behalf of the Trico Board and employees, thank you for being a valued Member of Trico. We are here to serve you.

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Membership Equity is Your Share of Trico


Membership Equity is Your Share of Trico

November 2, 2023

Member economic participation is vital to a cooperative. I am excited to announce that for the 14th straight year, the Trico Board of Directors has approved the retirement of Membership Equity – formerly Capital Credits – in the amount of $5.4 million. That’s money that stays here in our local communities.

You may be wondering why we changed the name of this Member benefit program. We feel Membership Equity better describes how our Members share in the financial success of our cooperative.

Membership Equity is your share of Trico. Trico is not-for-profit – which means we need to raise money to operate, but we don’t seek to make extra revenue to satisfy shareholders. When there’s money left after all the co-op’s bills are paid, it’s returned to Members.

In general, here’s how Membership Equity (ME) works:

When Trico’s revenues exceed its cost of operations, a profit (margin) is created, and these amounts are allocated to Members’ ME accounts. These credits accrue in the Members’ accounts until the Board approves what is called a “retirement.” That’s when Members who bought electricity from Trico during a certain year will receive a distribution based on the credit applied to the Member’s account, the amount retired by the Board, and the amount of power the Member used. This distribution may be in the form of a bill credit or a check.

Co-ops perform a balancing act – they have to retain enough money to operate and be prepared for emergencies, like storm damage – but they also want to give Members their share of the margins. That’s the basis of a cooperative; it’s owned by the people who use its service or buy its product, so they share in the “margins” – the co-op equivalent of “profits.”

We often get asked why Members can’t receive all the Membership Equity they have accrued. The Membership Equity of all Trico Members builds up over time and is used to fund the maintenance and improvement of Trico’s system. To maintain fairness, Members need to contribute equitably to the continued operation of the co-op. If Members were able to withdraw all of their allocated ME, there would not be funds to maintain and improve the system. By retiring allocated ME on a proportionate and regular cycle, we balance the need to fund the co-op with returning ME to Members. 

ME cannot be returned to Members all at once because doing so would negatively impact the Co-op’s finances and cause increases in electric rates. ME funds are used to keep the electric system safe and reliable and keep electric rates as affordable as possible. When Trico’s finances permit, ME is returned to the Members who paid the rates that created the ME.

Members will see their Membership Equity Retirement on their December bill. Active accounts will see a Membership Equity Retirement posted as a credit on their bill. If you would prefer to receive your Membership Equity as a check, contact us at memberservices@trico.coop or 520-744-2944. To receive a check, your refund must be over $10 for both active and inactive accounts. If a Member moves or no longer has service, Trico must have their current address to send ME notices and retirements in the future.

Thank you for being a valued Member of Trico Electric Cooperative. Membership Equity is one of the many benefits of being a Member of a co-op, and it represents your share of the co-op’s profits. Visit here for more information on Membership Equity.


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