KEYSTONE HEIGHTS, Fla. – On January 23, Clay Electric Cooperative’s board of trustees approved a $5 million Capital Credits refund to current and former members of the co-op who received service between 1987 and 2012. This will be the cooperative’s 40th consecutive refund of Capital Credits.
Current members of the cooperative who are entitled to a refund will receive a credit on their March bills. A member’s actual share of this year’s refund is based on the amount he or she was billed for electricity during the years included in the retirement period (1987-2012).
Former members of the cooperative who are entitled to a refund will be mailed a refund check around mid-March.
General Manager/CEO Ricky Davis said the trustees considered a variety of financial data and economic conditions before deciding to make this year’s refund.
“The refund of Capital Credits is a tangible and unique benefit of receiving service from a not-for-profit electric cooperative,” Davis said. “Investor-owned utilities that have margins left over after expenses are paid return these funds to stockholders as dividends. Municipally-owned electric utilities return their margins to the city coffers.”
What are Capital Credits? Clay Electric is a not-for-profit cooperative, so any profits (margins) left over at the end of the year after expenses are paid are assigned to members on a pro-rata basis, to be refunded at a later date as Capital Credits. These refunds also help lower the cost of power for members of the cooperative.
Capital Credits are a source of equity for cooperatives. Capital Credits enable cooperatives to reduce the amount of money they must borrow for a variety of projects and purchases. This means less borrowed money and fewer interest payments.
The average amount of Capital Credits returned in 2013 to current members was $16.22. The average return for former members was $30.86. Average return numbers for 2014 will be available in mid-February.
Capital Credits are one of the benefits of being served by an electric cooperative. In addition to members actually owning their cooperative, they accrue Capital Credits. Members also get to vote on who represents them on the co-op’s board of trustees. Clay Electric’s managementand employees work hard to offer members professional service, competitive electric rates and reliable power.