Homer, Alaska – Homer Electric Association, Inc. (HEA), a member-owned not-for-profit electric cooperative, is distributing $3,580,000 in capital credits to approximately 8,800 members and former members. Members with an active HEA account will receive a credit on their May energy bill statement. Those members who do not have an active account will receive a check by mail to their address on file with HEA.
The capital credits are being distributed to people who were members of HEA between 1984 and 1987. The amount is determined by the quantity of electricity purchased during each of those years; the more electricity purchased, the larger the capital credit amount will be.
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. As a reminder, it is critical for HEA to have a good address on file for all members to ensure delivery of future capital credits.
While the allocation is done annually, the return of margins 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 2021, HEA has returned over $37 million in capital credits to members of the cooperative.