SALEM, AR (KAIT) - It was a very productive year for an area utility cooperative, with money being returned to its members.
Officials with North Arkansas Electric Cooperative announced Dec. 7 that the group returned $5,149,337 in capital credits to its members in December.
“The refunding of capital credits sets NAEC and other electric cooperatives apart from investor-owned utilities,” CEO Mel Coleman said in a media release. “We want those we serve to know they are not customers. They are members. They are owners.”
Officials said that any margin that the cooperative makes is assigned to members based on the amount of electricity they use. In turn, members get a capital credits certificate each spring that shows their portion of the previous year’s margins that have been assigned to the customer’s account.
The margins are used as operating capital for a certain period of time and the utility’s board looks at its financial condition each fall, with the cooperative’s board determining how much capital it can refund to customers.
Members who purchased electricity from the cooperative in 1995, 1996 and 2017 were eligible for the refund, officials said. Anyone with a refund under $50 will have a credit on their December bill, while anyone with a refund over $50 will see the refund in the mail the first week in December.
Anyone with questions on the credits can call NAEC at 870-895-3221 or visit their offices in Salem, Mountain Home or Ash Flat.