East Central Energy (ECE) members will see a benefit of ownership in their cooperative when their 2011 Capital Credits refund is applied to their account.
The ECE Board of Directors recently announced that the co-op is returning over $1.1 million to members this fall in the form of Capital Credits refunds. Eligible members will see a bold blue line on their next billing statement that says, “Capital Credits Refund,” designating the amount of their refund. The bill will be reduced by the amount shown on this line.
As a cooperative, ECE operates on an at-cost basis by annually allocating to each member, based on their kilowatt-hour use, operating margins remaining at the end of the year. These allocated amounts are called Capital Credits. They are allocated in a way that retains working capital for the cooperative while also reflecting the members’ ownership in their co-op.
Each year, the board of directors determines if there will be a refund, and if so, what portion of a member’s Capital Credits can be refunded. The Capital Credits refund is based on the total amount a member paid for electricity.
Members of ECE for more than one year will receive a Capital Credits refund. Members who have moved off the ECE system may receive a Capital Credits refund check, which will be mailed to the address ECE has on file.
Former members should call ECE, 1-800-254-7944, if they believe the co-op does not have their current address.