Capital Credit Retirement to Distribute $4.5 Million to Members in August
Even if you’re new to the cooperative world, you’ve probably heard membership has its benefits. Maybe you’ve already heard how consumer membership works or you understand the ability to participate in annual director elections. Perhaps someone you know ran for a seat in a previous election. But you may be confused in the coming weeks when you receive a check in the mail from United Power with your name on it — your little “piece of the pie.”
When you make a payment to United Power, a portion of that payment goes directly toward your investment in our electrical system through capital improvements. These improvements help maintain our system, provide reliable energy to you and your neighbors and propel us into the future.
However, capital improvements aren’t always necessary, leaving the cooperative with a surplus of funds earmarked for these projects. So, each year, the Board of Directors assesses the cooperative’s financial condition and determines if a “capital credit retirement” period is feasible. This year, the board approved a $4.5 million retirement, to be distributed to members in August.
Capital credit retirements are the refund amounts members receive during this period. United Power establishes a capital credit account for every member, and uses it to record their investment. Each year funds remaining after expenses are allocated to these accounts. Upon board approval, a percentage of these funds may be retired. This year’s retirement represents the 12th consecutive year United Power has retired capital credits.
Your capital credit amount is determined based on two factors: how much electricity you use and how long you’ve been a member. The longer you are a member and the more power you use, the larger your share of each retirement.
“United Power has a commitment to providing reliable energy to our members, but we also prioritize doing so at an affordable rate,” said John Parker, United Power’s Chief Executive Officer. “While we talk a lot about the benefits we provide to our members both individually and in the community, receiving something you can hold in your hands is a meaningful benefit, and one that differentiates cooperatives from other utilities across the country.”
This year, more than 80,000 checks will be issued to residential and business members. Anyone who had service in 2017 or earlier will be eligible for this year’s capital credit retirement. While many members will receive a check, anyone who is refunded an amount less than $10 will receive it as a credit on their bill. Look for this credit on your bill in August or September.
United Power issues checks because it’s important for members to see the real benefit of membership, and handling a check achieves that goal.
“We know some checks won’t pay the rent, but it does provide a little extra cash to tide someone over until their next paycheck,” said Parker. “For our larger users, like local businesses, municipalities, farms and school districts, these checks may have a substantial impact.”
Capital credit retirements have returned a steady stream of money back to members in recent years. During the past decade, United Power has been able to retire millions of dollars back to its members.
Frequently asked questions about capital credits can be found online at www.unitedpower.com, or you can call a member services representative at 303-637-1300.
Important Reminders:
- If you move, please be sure to leave your new address with us so we can continue to refund any capital credits you are eligible to receive in the future.
- Upon death, the deceased member's capital credit account is available for estate retirement. The representative of the estate should contact United Power to settle the capital credit account.