News

Capital Credit Refunds To Be Issued in August -- Every Member Will Get a Piece of the Pie

August 03, 2011

United Power is retiring $3.5 million in capital credits to customers in August, and members will be getting their "piece of the pie" in this distribution. Because cooperatives do not earn profits in the sense that other businesses do, any margins remaining after all expenses have been paid are returned to the members in the form of capital credits. Your share of capital credits is determined by your electric usage and years of service with United Power. The decision to retire capital credits was made by the United Power board of directors who carefully assess the financial condition of the cooperative to determine if retirements are feasible. Capital credits represent a member’s investment into the cooperative, and are used over time to make capital improvements to the electric system.

"The Board of Directors is pleased to be able to return such a substantial amount of capital credits to our customers," said Ron Asche, CEO. "Our customers are a valued and important asset at United Power, and being able to retire capital credits is an exciting way to say thank-you for your unwavering support."

The retirement will be by the percentage method, which means all current members will share in proportion to their usage for those years when operating margins were positive. Anyone who had service prior to 2011 will receive either a check or a bill credit as part of their capital credit retirement. Checks will be issued to any member who has a capital credit retirement of $5 or more, while smaller amounts will appear as credits on your August or September bill. An informative insert will be included in the retirement checks and bill statements that should help to explain how capital credits work.

"The credits and checks will arrive during a month when electric use is traditionally pretty high, so we think the timing of this retirement is good for our members’ pocketbooks," said Asche. "Capital credits allow your cooperative to make the necessary system improvements and enhancements we need to provide reliable service, while helping to keep rates economical."

Information about Capital Credits can be found here or by calling 303-637-1300. Capital Credits are just one of the many ways cooperative membership pays!