June Bill Includes Your 2017 Capital Credit Allocation
How much of Otero County Electric Cooperative’s margins from last year will YOU receive? Your June 2018 electric bill lists the amount allocated to your capital credit account based on last year’s margins. The information will appear on the left hand side of the bill, above the kWh Usage History.
As an OCEC member, you have a share in the earnings of your not-for-profit electric cooperative. The allocation reflected on the bill represents your share of the operating margins (excess of income over expenses) realized by your cooperative for the year indicated. The margins are allocated to all members who received electric service from the cooperative in proportion to the amount each member paid for electric service.
The money represented by members’ capital credits (also known as patronage capital) is used by your co-op to repay long-term debt, maintain reserves for financing of plant replacements, storm damage, and other contingencies. Because patronage capital is used in this manner, it is not refunded immediately. Instead, the amount of capital credits is recorded on an account established in your name and made a permanent part of the cooperative’s records. Should the Board of Trustees determine that a refund of patronage capital credits be made, they will be refunded in accordance with the bylaws of the cooperative. Last year, OCEC retired Capital Credits for 1992 and a portion 1993, refunding $734,058 to members receiving allocations in those years.
Should you discontinue service in the future, please be sure to keep your address updated with OCEC. This will insure that you will receive future allocation information and a refund check if and when capital credits are refunded. Any unclaimed Capital Credit refunds are eventually escheated into the Otero County Electric Education Foundation, which provides educational scholarships for members and their dependents.
Capital credit allocations shown on your statement can not be applied to your energy bills.