March 19, 2018 – Homer Electric Association, Inc. (HEA), a member-owned not-for-profit electric cooperative, is distributing $1.72 million in capital credits to its members. Distribution of capital credits will be to approximately 8,400 members and former members the week of April 16, 2018.
HEA will distribute capital credit checks to people who were members of HEA during 1987 and 1988. The amount of each check is determined by the quantity of electricity purchased during each of those years; the more electricity purchased, the greater the capital credit check will be.
The average check for someone who was a residential member in both 1987 and 1988 will be approximately $65.00.
Capital credits represent HEA members’ share of equity in the utility and is one of the benefits of being a member of an electric cooperative compared to an investor owned utility. Capital credits are based on a margin, which is the difference between total expenses and total revenues of the cooperative. Each year, HEA allocates margins to its members in proportion to the amount they paid for electric service.
While the allocation is done annually, the return of margins in the form of a capital credit check occurs at the discretion of the Board of Directors, based on the financial health of the cooperative.
Prior to refunding capital credits, the cooperative uses its margins to maintain equity and fund long-term capital projects to improve and upgrade the electrical system.
From 1960 through 2018, HEA has returned over $20.62 million in capital credits to members of the cooperative.