Lincoln County, Mo. - Cuivre River Electric Cooperative distributes capital credit refunds to active and inactive members, the ammount of funds this year is $7.7 million.
This year’s refunds include a portion of the cooperative’s 1997 and 1998 and 2020 margins.
“Returning any excess margins to our members is a part of the cooperative difference,” stated General Manager/CEO Doug Tracy of Cuivre River Electric Cooperative in a press release.
The majority of current members will receive a check or a credit to their account, to be mailed or posted around the end 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 $25 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,” said Mary Willson, Manager of Communications for Cuivre River Electric Cooperative.
“Investor-owned electric utilities send their profits to stock-holders, and municipally-owned utilities keep theirs.
As a cooperative, members are the benefactor of these profit margins which represent members’ ownership equity.”
Willson said that these margins or profits 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,” said Willson.
The amount of each member’s refund is based on a formula determined by the quantity and cost of kilowatt-hours (kwhs) purchased annually.
Counting this year, since 1976, CREC has returned almost $118 million to current and former members.
“In general, capital credit retirement is usually done at the end of July/early August annually,” Willson said.
“Last year, however, because the Covid-19 pandemic placed a hardship on some CREC members, we retired them early (May) to help members out.”