In a recent decision to provide financial relief during this uncertain time, the Central Electric Cooperative board of directors approved the early retirement of approximately $750,000 in capital credits to members.
Central Electric initially budgeted to return $550,000 in capital credits to members in December of this year. However, in an effort to relieve financial stress on members, the board has activated the equity return five months in advance plus an additional $200,000 in capital credits. The total capital credit amount will include equity retirement from Central Electric, East River Electric Power Cooperative, and Basin Electric Power Cooperative.
“We know because of the pandemic, many of our members have suffered a loss of income, through no fault of their own,” says Ken Schlimgen, General Manager. “We are actively looking into ways to help our membership through this critical time, including the early retirement of capital credits.”
For active electric members receiving service, the funds will be retired as a credit on their electric bill sent in July. This provides convenience for the membership and significantly saves on postage and printing costs. For inactive members, checks will be mailed in early July. The amount received is based on the amount of electricity purchased during the retirement year.
When someone signs up to receive electric service from Central Electric, they become a “member” of the Cooperative, not a customer. Electric co-ops operate on an “at-cost basis” and return profits to their member-owners. Central Electric annually allocates capital credits, or equity in the cooperative, and retires this equity in the form of capital credits to its members when financially able.