Troy, Mo., May 13, 2020 – Cuivre River Electric Cooperative (CREC) is returning over $6.7 million of capital credits to its members this year, but is doing so sooner, with the distribution of refunds beginning the first week of June. Due to the Covid-19 pandemic which has placed a hardship on some CREC members, CREC’s Board of Directors approved an earlier than usual retirement of capital credits this year.
This year’s refunds, which are normally distributed in late July, include a portion of the cooperative’s 2019 and 2018 and 1997 margins – still a hybrid method of retirement but nearer to current years and members. They include 33 percent of members’ equity from 2018, 33 percent from 2019 and 33 percent of 1997.
“With the continuing challenge of the coronavirus in our local communities and around the globe, we continue to look for ways to help our members, so I am happy to announce the Board’s decision of an earlier distribution,” said General Manager/CEO Doug Tracy, “It’s another way we can carry out the cooperative principle of ‘concern for community.’”
Previously this year, CREC announced that members could have a choice of either receiving a check for their capital credits, or having it posted as a bill credit. However, because of this early retirement, checks will be issued to all recipients, with the only exception being those members with refunds of less than $15 or with a 60-day past-due balance—these refunds will be posted as energy bill credits to their account. Members can expect to see their refunds arriving around the first week of June.
Capital credits, similar to profit margins in other businesses, represent CREC 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 just over $100 million to current and former members.
For any questions about capital credits, please call us at 800-392-3709, or visit our website at https://www.cuivre.com/content/capital-credit-refunds.