In a co-op, everyone gets a piece of the pie, and beginning in August United Power will be dishing up $5.5 million in capital credit refunds to members. Upon review of cooperative’s financial position, United Power’s Board of Directors authorized the refund to members for 2019—the largest retirement in United Power’s history.
“United Power has a commitment to providing reliable energy to our members, but we also prioritize doing so at an affordable rate,” said John Parker, United Power’s Chief Executive Officer. “While we talk a lot about the benefits we provide to our members both individually and in the community, receiving something you can hold in your hands is a meaningful benefit, and one that differentiates cooperatives from other utilities across the country.”
This year, nearly 90,000 checks will be issued to residential and business members. Anyone who had service in 2018 or earlier will be eligible. While many members will receive a check, members receiving a refund amount less than $10 will get a credit on their bill. Look for your checks and bill credits to arrive beginning in mid-August through September.
Your capital credit amount is determined based on two factors: how much electricity you use and how long you’ve been a member. The longer you are a member and the more power you use, the larger your share of each retirement. Capital credit retirements have returned a steady stream of money back to members in recent years. During the past decade, United Power has been able to retire millions of dollars back to its members.
More About Capital Credits:
You might not realize it, but when you signed up to receive electric service from United Power you became a member—and owner—of an electric utility. While investor-owned utilities return a portion of any profits back to their investors, electric co-ops operate on a not-for-profit basis. So instead of returning leftover funds, known as margins, to investors who might not live in the same region or even the same state, we periodically issue capital based on how much you paid the co-op for electricity during a specified time period. Learn more here.