Poudre Valley REA pays customers $6 million in capital credits this week
September 26, 2015
Poudre Valley Rural Electric Association paid out its largest capital credits retirement in history to its members last week, totaling $6 million.
Over 49,000 consumers received capital credits retirement. PVREA has paid out over $48.5 million of capital credits since its founding in 1939 and $18 million annually in the past five years alone.
PVREA operates as a consumer-owned organization and credits any margins to its 38,000 home and business cooperative members in Boulder, Larimer and Weld counties each year based on how much electricity they purchased. These funds — called capital credits — are used to help meet the expenses of the co-op, such as paying for new equipment to serve members and repaying debt, according to a news release from PVREA.
Capital credits help keep rates at an affordable level by reducing the amount of funds that PVREA must borrow to grow and maintain the electric system.
Every year the board of directors determines if financial conditions allow for the retirement of capital credits.
This year, the board approved retirement of credits for patronage capital allocated in 2000, 2001, 2002 and 2014. Members who received service from PVREA in those years — and have accumulated retired credits of $10 or more — will receive a check in the mail.
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"Paying capital credits to our members is one of the many factors that make electric cooperatives unique and differentiate us from investor-owner and municipal utilities," said Jeff Wadsworth, CEO of PVREA, in the release. "Since we are a not-for-profit organization with a 501(c)12 tax designation, we return capital credits as a tangible representation of our members' investment in PVREA."
For more information on capital credits, go to the PVREA website at http://www.pvrea.com/capital-credits or call (800) 432-1012.