April 12, 2019 – Homer Electric Association, Inc. (HEA), a member-owned not-for-profit electric cooperative, is distributing $1.9 million in capital credits to its members. The capital credits will be distributed to approximately 8,500 members and former members the week of April 22, 2019.
The capital credit checks are being distributed to people who were members of HEA during 1988 and 1989. The amount of each check is determined by the quantity of electricity purchased during each of those years; the more electricity purchased, the larger the capital credit check will be.
The average check for someone who was a residential member in both 1988 and 1989 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. Capital credits are based on margins, which are 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.