Capital Credit Refunds
Capital credit refunds top $5 million again
Capital credit checks to be mailed in early August
Cuivre River Electric Cooperative members will receive in excess of $5 million as part of the organization’s capital credit refund program.
A record amount of $5.27 million will be distributed in August, a decision reached by the organization’s Board of Directors. This is the second year in a row the refund amount tops $5 million.
The capital credits, similar to profit margins in other businesses, represent 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. Cuivre River has returned nearly $80 million to current and former members since 1976.
This year’s refunds include a portion of the cooperative’s 2016 and 1994 margins. They include 25 percent of members’ equity from 2016 and 100 percent of remaining equity from 1994 (a portion was refunded in 1995).
The average check amount for members who had service in 2016 is $39.65. For those members who also had service in 1994, the average refund is $128.31.
“Part of the cooperative difference is being not-for-profit and returning any excess margins back to our member owners,” General Manager/CEO Doug Tracy said. “The Cuivre River Board of Directors and I are committed to returning capital to our members, while also keeping our cooperative financially sound. We are pleased to once again this year return over $5 million dollars to our members.
The majority of current members will receive a check, to be mailed during the first week of August. The total number of active and inactive members who will receive a refund is 59,974.
Members with refunds of less than $15 or with a 30-day past-due balance will not receive a check. These refunds will be posted as energy bill credits to their account.
Capital credits are a unique benefit of being served by an electric cooperative and make Cuivre River very different from most Missouri utilities. Investor-owned electric utilities send their margins, or profits, to stockholders, and municipally-owned utilities keep their profits.
The cooperative is accountable to, owned and governed by the people it serves.
Things you should know:
- Your capital credits are reserved for you even if you discontinue Cuivre River service. Cuivre River will attempt to reach you when refunds are made if a current address is on file.
- Checks will expire after six months. Checks returned by mail are held while they remain valid. After six months they are applied as bill credits to their respective active accounts. By request, checks may also be donated to Operation Round Up for families in need.
- To claim a check returned by mail, you must provide valid identification.
- In accordance with Cuivre River Bylaws, if your check is unclaimed after two years, your name is published in two consecutive issues of a local newspaper in the county where you last received Cuivre River service. Checks unclaimed after 60 days of this publication requirement are assigned to the Cooperative.
- If you call to establish new service, tell us if you’ve previously been a Cuivre River member to help us keep past and current records up to date.
Questions? Call Kristen Turgeon or Roman Schuette at (800) 392-3709, ext. 4384 or email firstname.lastname@example.org.