At its December 2023 meeting, the Board of Directors of San Miguel Power Association (SMPA) approved the return of $1 million in Member Dividends to the consumer-members. This move completes the process by which excess revenues get shared back with consumers over time.
In a typical year, SMPA has money left over after paying its expenses. As a not-for-profit cooperative, SMPA allocates the excess revenue, called “margins” to each consumer in proportion to their contributions for that year. These margins are used by the cooperative to finance operations and construction. This helps SMPA balance the need to turn to lenders for funds to maintain and enhance SMPA’s existing electric system. When the Board determines the time is right, allocations for a given year or combination of years are repaid to members as “Member Dividends.”
This month, many SMPA members are receiving checks in the mail. The dividends represent allocations from the years, 1994 and 1995. The majority of members received dividend checks between $20 and $250. Some large power users, including towns, counties, and schools received checks over $5,000. Members will have a full six-month period in which to deposit their member dividends.
“Giving member dividends back to you is one of the ways we distinguish ourselves from investor-owned, for-profit utilities,” said Board President, Rube Felicelli. “It’s a commitment that is absolutely foundational for an electric cooperative like SMPA.”
More information is available here.