Check Your Dividends
How would you like to receive a check from Consumers Energy just
for being a member? You can if you are a co-op member!
Every year Consumers Energy issues hundreds of thousands of dollars
back to its members in the form of what is known as patronage dividends.
These dividends are our way of thanking you for supporting our business!
Consumers Energy is a nonprofit energy delivery and energy management
cooperative, which means we are owned by our members and not private
investors. Our main focus is to provide quality service to those
who use our services.
The following Q&A will help explain the patronage dividend process:
What are patronage dividends and why do I receive them as a co-op
member?
As a nonprofit energy delivery and energy management cooperative,
Consumers Energy needs only to cover the cost of yearly operations.
Any capital over and above that cost (net profit) is collected and
allocated back to our members.
As a co-op member, you share in the profits of your cooperative.
The longer you use the service, the more monetary equity you accumulate.
We call this equity allocations, which is the total sum of annual
capital (equity) accrued by the member during their prior year of
service with Consumers Energy. Allocations are similar to, but not
the same as, dividends earned by shareholders of a for-profit company.
The actual cash amount (refund) each member receives back is determined
by the cooperative's Board of Directors and is usually a percentage
of your total allocation amount from a previous year of service.
Who is eligible to receive a patronage dividend?
If you are currently a member or were formerly a member
of Consumers Energy, you are entitled to receive a dividend as part
of your membership agreement.
When will I receive a patronage dividend?
Because all members and former members are eligible to receive
dividends, it is necessary to properly budget for this expense.
Each year the co-op Board of Directors approves a percentage of
a prior year's allocations for repayment to the membership. By refunding
only a portion at a time, the co-op is able to maintain a stable
financial structure.
Why does the co-op hold patronage allocations?
The co-op holds allocations for the following reasons:
- To maintain adequate cash flow to meet current expenses
- To preserve enough equity in the cooperative to meet bank's
debt to equity requirements and lower the co-op cost of borrowing
money
- To reinvest millions
of dollars in system improvements, new services and the capital
budget
I received a financial statement from Consumers Energy in the
mail. What is it and what does it mean?
Each year Consumers Energy issues every member a statement outlining
the total amount of monetary equity their account has accumulated
during the prior year of service. This is called an allocation statement
and is sent as a courtesy so that you may be kept informed of your
vested interest in the co-op.
The following terms and definitions will help you better understand
how to read your allocation statement:
Allocations: the total sum of annual capital accrued by
the member during their prior year of service with Consumers Energy.
Can also be viewed as your share of equity in the cooperative.
Refund (Retired Amount): the actual percentage of your allocation
(accrued amount) approved by the co-op Board of Directors for repayment
to the membership.
If I should decide to move, what can I do to ensure I receive
a patronage dividend?
If you are currently a member and have plans to discontinue doing
business with Consumers Energy, you need to make sure our finance
office has your social security number and a forwarding address.
This will allow us to send you a yearly allocation statement notifying
you of your entitled amount and a check when it is retired.
What if I had a joint account and am now divorced or separated,
do I still receive a dividend?
If you previously had a joint account with another person through
marriage or other living arrangements, you are entitled to make
a claim. The first party to make the claim will receive the check.
That person is then responsible to give half of that amount to the
other member listed on the account if they know their whereabouts.
Consumers Energy will not be held responsible or liable for difficulties
resulting from the failure of one party to notify the other.
How may I check to see if I have unclaimed capital credits?
Unfortunately, many members discontinue doing business with Consumers
Energy without notifying us of their social security number and
a forwarding address. As a result, we are unable to contact them
when their checks come due and have thousands of dollars in unclaimed
capital credits each year.
Consumers Energy publishes a list of all unclaimed patronage dividends
in our newsletter each year. As provided by Iowa law, Consumers
Energy may deem any unclaimed dividends to be forfeited after three
years. The abandoned property shall be placed in a reversion fund
to be used for educational or economic development purposes.
If you suspect you may have unclaimed dividends with Consumers
Energy, please call a customer service representative at 800-696-6552
or e-mail Gail Hull at ghull@consumersenergy.coop.
Be sure to include your name and current address in your correspondence.
If you are making a claim on behalf of a deceased individual, please
call our office and speak with Gail Hull.
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