Central Electric Issues $2.1 Million in Capital Credits
Central Electric Cooperative announced today that 12,893 current and former members are eligible to receive capital credits payments totaling $2,073,429. CEC members will begin receiving their checks this week.
Individual checks will average $117.00 and will be paid to those current and former CEC members who purchased power in the years 1995 and 1997. The amount of each member’s check is based on the amount of electricity purchased by that member in each of those two years. The payments total slightly over $1.5 million. All capital credits for 1996 were retired previously. Most of the difference between the current $2.1 million capital credit retirement and the payment total is funds due members but for whom CEC does not have a current address on file. The cooperative advertises their names in The Bulletin one time each June, July, August and September and lists those members on its website in an effort to reach them. Central Electric has made such payments every year since 2001 and in 34 of the past 37 years, totaling $26.6 million in retirements since 1958.
As a not-for-profit utility, Central Electric is limited to two options for raising capital, borrowing or raising capital from its members. By melding capital credits funding obtained from members with borrowed money on which CEC must pay interest, the cooperative is able to lower its cost of capital. A benefit of cooperative membership is they share in the margins that the cooperative earns annually. Members may receive annual refunds under the cooperative’s bylaws which authorize the board of directors of Central Electric to pay capital credits to members whenever the financial condition of the utility is not impaired by such payments.