Mid-Rivers Telephone Cooperative, Inc. has mailed capital credit checks of approximately $1,025,000 to its members on Aug. 5. The 2011 distribution of capital credits represents 65% of the remaining balance of 1992 patronage allocation, as well as 15% of the 2010 patronage allocation.
Receiving capital credit checks is just one of the benefits of being a member of a cooperative. Any profits generated by the cooperative (the difference between income and operating costs for the year) are returned to members in the form of capital credits. A member’s capital credits are derived from the amount of business he or she does with the cooperative during a given year. Payment of capital credits can be made only if the financial condition of the cooperative permits.
Mid-Rivers Communications uses both the “first-in, first-out” and the percentage methods of distribution to allow present, as well as past members the possibility to share in the benefits of cooperative membership by receiving capital credit checks.
Including the 2011 payment, Mid-Rivers has returned approximately $31 million in capital credits to its members over the past 25 years.
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