Mission statements are useful in focusing an organization’s activity. Empire Electric Association’s mission statement was thoughtfully written to ensure we remember what we do and for whom we do it. Our primary mission is to meet the electrical energy needs of our member-owners in a safe, responsible, and reliable manner. But the focus is always on you, our member-owners. Profit is not a part of the picture at your cooperative.
Spring is here and service requests are growing as the days get longer and the temperatures climb. When an engineering technician presents their estimate for a new service, they sometimes get asked “Can you do any better on the price?” The answer is always no. As a not-for-profit cooperative we only charge what it costs. The cost is driven by the service type and size, which, by code, requires a minimum equipment size to ensure safety and reliability. Location also plays a factor — new service requiring a line extension or system improvement will be more costly.
EEA’s cost for new service also includes labor, installation equipment, and overhead, like all businesses, plus a small markup to collect additional working capital to ensure we have the revenue needed to operate in a cost-efficient manner. Additional revenue is also collected in EEA’s rates for the same purpose. Any revenue collected that exceeds our cost is called margin and reduces the amount of financing EEA requires. Reducing interest expense helps keep rates low.
Any margin EEA has at the end of a fiscal year is allocated to member-owners who purchased power during that year. The allocations are called capital credits and represent each member-owner’s investment in EEA. Capital credits are paid back to member-owners through what’s called the retirement process.
Each year, EEA’s board reviews the cooperative’s financial position and will retire a portion of capital credits if possible. EEA’s board performed an annual financial review at its January 2025 meeting and approved a capital credit retirement of $1.82 million. Roughly half of this retirement will be from EEA capital credits. The remaining amount is from retirements EEA receives from Tri-State Generation and Transmission Association, and other cooperatives EEA holds membership in.
Economic participation is a cooperative principle and fundamental to the cooperative business model where we put people first. Look for your capital credit retirement payment this month on your bill or by check, based on your preference. We appreciate your support as we work to provide the energy to power your life.
Empire Electric Association’s primary mission is to safely, responsibly, and reliably meet the electrical energy needs of our member-owners.
