Central Rural Electric Cooperative patronage capital assignments are based on the cooperative’s revenues in excess of its expenses (margins). These margins are recorded as capital furnished by the members and are thus referred to as patronage capital.

For the year 2008, margins were $3,041,033. This value is not necessarily represented as cash, but as the cooperative’s equity interest in its distribution system.

We allocated by rate again this year, based on the cost of service study and how each rate contributes to the margins. This article serves as your notice regarding the assignment of patronage capital for 2008. This method of notification is being used to avoid the expenses of preparing, handling and mailing individual notices.

The 2008 patronage capital are assigned to the consumers as a book figure on the records of the cooperative. The patronage capital are payable to the consumers only when payment is authorized by the board of trustees. The allocated patronage capital cannot be applied as payments on your electric bill, only the retirements of patronage capital can. The retirement processed in 2009 was applied to your October bill if you had a balance and service in the years we retired funds.

Here’s What to Do

1. Add up your electric use for 2008.

2. Take the decimal factor for the appropriate rate schedule below and multiply it times the total kWh use for 2008.

This amount is your 2008 patronage capital allocation. Do this for each electric account you have.

Example: Total 2008 kWh = 15,000 kWh Total kWh x decimal factor for your rate for each account

Rate	Total
RES 1	0.0055881404
SMC 4	0.0064308637
GS 10	0.0014204511
OFFPK	0.0014204227
ONPK	0.0014203241
MP 12	0.0049564265
MP12D	0.0044205242
LP 13	0.0044492184
LP13D	0.0040839443
L13U	0.0047614380
L13DU	0.0040349398
SL 14	0.0116423195

These total factors are made up of three allocations called cooperative, generation and transmission and other patronage capital.