Board returns capital credits to HEA members for the second time in 2020
Homer Electric Association, Inc. (HEA), is a not-for-profit electric cooperative with members who share in the ownership, construction, maintenance, and success of the cooperative. Members of HEA receive capital credits, representing their share of the cooperative’s equity. Capital credits are based on margins, which are the difference between total expenses and total revenues of the cooperative each year. These are later returned to members at the discretion of the HEA Board of Directors and is one of the many unique differences that set cooperatives apart from other utility business models.
For the second time this year, the HEA Board of Directors authorized capital credit distributions to the membership. This past year has presented unprecedented challenges for our membership. In the spirit of giving back this holiday season and to help make the end of the year a little brighter for our communities, HEA will retire $3 million of 2019 margins to over 25,000 members. This capital credit retirement will be shown as a credit on the December energy bill statements. The amount will vary based on each member’s patronage, which is the amount of electricity purchased from HEA last year.
Earlier this year, HEA distributed $1.9 million in capital credits to 8,700 members and former members from their 1989 patronage. To date, HEA has returned over $32.1 million in capital credits to members of the cooperative.