NEWS RELEASE
Consumers Energy
2908 S. Center St.
Marshalltown, IA 50158
800-696-6552
Release Date: Immediate
Contact: Deb Borton
@ 641-752-1593
The Cooperative Difference: Patronage Checks To Be Mailed In December
December 13, 2002, Marshalltown, IA – One of the biggest differences
you will see between a member-owned energy cooperative versus an
investor-owned utility (IOU) is the method of financing investment.
An IOU must recover from its customer a component known as "Return
on Equity." This return on equity is the price paid to an investor
for their investment; this is what entices investors to invest in
the company. This component increases the IOU's cost of service,
or the rates they have to charge customers.
At Consumers Energy, instead of equity securities, we retain past
and current margins for a period of time before we return them to
our member-owners. These past patronage margins allow us to invest
in technology and physical plants enabling us to continue to be
productive and reliable in the future; and allow us to maintain
rates at a competitive level.
At the November meeting of the Board of Directors of Consumers
Energy the Board elected to retire $93,309.16 patronage allocations
from 1987 margins back to our member-owners. Patronage checks will
be mailed in December. Active members with a patronage dividend
of $25 or less will receive a credit on their January bill statement
(December usage). This year approximately 2800 members or former
members of Consumers Energy will receive either a check or bill
credit. We are pleased to return this money to our member-owners
and emphasize the Cooperative Difference.
Consumers Energy is a Touchstone Energy Cooperative, which is an
alliance of local, consumer-owned utilities serving millions of
businesses and homes across the country.
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