Central Electric Cooperative (CEC) announced some current and former members are eligible to receive capital credits payments totaling $1,383,482.
Individual checks will average $102.98 and will be paid to 9,713 present and former CEC members who purchased power in the years of 1991 and 1992. The payments total slightly over $1 million. Most of the difference between the $1.3 million capital credit payments and the disbursement total is from funds due members from the two years of service for whom CEC does not have a current address on file. The amount of each member’s check is based on the amount of electricity purchased by members in each of those two years.
Central Electric has made such payments every year since 2001 and in 32 of the past 35 years, totaling $20.3 million in payments since 1958.
As a not-for-profit utility, Central Electric is limited to two options for raising capital, borrowing or raising capital from its members. By melding capital credits funding obtained from members with borrowed money on which CEC must pay interest, the cooperative is able to lower its cost of capital. A benefit of cooperative membership is they share in the margins that the cooperative earns annually. Members may receive annual refunds under the cooperative’s bylaws which authorize the board of directors of Central Electric to pay capital credits to members whenever the financial condition of the utility is not impaired by such payments.