Capital credit refund exceeds $7 million
As part of Cuivre River Electric Cooperative’s (CREC) capital credit refund program, members will receive just over $7 million later this month.
A record amount of $7.3 million will be distributed, a decision recently made by the organization’s Board of Directors.
The capital credits, similar to profit margins in other businesses, represent members’ ownership equity. Credits are allocated after the close of a fiscal year, if funds remain after all expenses for providing electric services have been met. Member capital is used in place of commercial loans to make infrastructure improvements and lower borrowing expenses and operational costs.
The amount of each member's refund is based on a formula determined by the quantity and cost of kilowatt-hours (kwhs) purchased annually. Since 1976, CREC has returned nearly $94 million to current and former members.
This year’s refunds include a portion of the cooperative’s 2018 and 1996 and 1997 margins. They include 25 percent of members’ equity from 2018, 10 percent from 1997 and 100 percent of remaining equity from 1996.
The average check amount for members who had service in 2018 is $87.00. For those members who also had service in 1996 and 1997, the average refund is $120.20.
“Returning any excess margins back to our members is a part of the cooperative difference,” said General Manager/CEO Doug Tracy.
The majority of current members will receive a check, to be mailed during the last week of July. The total number of active and inactive members who will receive a refund is about 65,000.
Members with refunds of less than $15 or with a 30-day past-due balance will not receive a check. These refunds will be posted as energy bill credits to their account.
Capital credits are a unique benefit of being served by an electric cooperative and make CREC very different from most Missouri utilities. Investor-owned electric utilities send their margins, or profits, to stockholders, and municipally-owned utilities keep their profits.
Things you should know
- Your capital credits are reserved for you even if you discontinue CREC service. Cuivre River will attempt to reach you when refunds are made if a current address is on file.
- Checks will expire after six months. Checks returned by mail are held while they remain valid. After six months they are applied as bill credits to their respective active accounts. By request, checks may also be donated to Operation Round Up for families in need.
- To claim a check returned by mail, you must provide valid identification.
- In accordance with CREC bylaws, if your refund is unclaimed after two years, your name is published in two consecutive issues of a local newspaper in the county where you last received CREC service. Checks unclaimed after 60 days of this publication requirement are assigned to the cooperative.
- If you call to establish new service, tell us if you’ve previously been a CREC member to help us keep past and current records up to date.
Questions? Please call us at 800-392-3709.