Central Electric Issues $4 Million in Capital Credits
REDMOND, Ore. – Central Electric Cooperative announced today that its board of directors returned $4 million in capital credits to current and former cooperative members who bought electricity in 1996. Eligible members will receive, on average, a check for $279. CEC mailed the checks this week.
As a not-for-profit utility, Central Electric has two options for raising capital, borrowing or raising capital from its members. The cooperative lowers its capital costs by melding capital credits funding obtained from members with borrowed money on which CEC must pay interest.
The cooperative membership benefits from sharing in the margins earned annually. CEC’s bylaws authorize its board of directors to pay capital credits to members when the utility’s financial condition permits. CEC has issued Capital Credits to members in 38 out of the last 41 years.
Central Electric Cooperative, Inc. Background
A member-owned, not-for-profit electric cooperative, Central Electric Cooperative (CEC) has provided electric utility services to its members in central Oregon since 1941. At the close of 2020, CEC served 35,659 accounts held by 28,722 members in its 5,300 square-mile service territory in Deschutes, Crook, Jefferson, and parts of Lake, Linn, Wasco, and Grant counties. CEC’s electrical system includes 24 substations and 4,009 miles of energized power lines, including 187 miles of transmission line, 2,260 miles of overhead distribution line, and 1,562 miles of underground distribution line.