OPALCO News

Posted December 13, 2018 at 5:40 am by

Cap­i­tal Cred­it Checks Com­ing – Your Co-op Dividend!

In Decem­ber, cap­i­tal cred­it checks will be sent out to mem­bers who were active in 1993, plus some from 1994 as OPALCO con­tin­ues to smooth its 25-year cycle for cap­i­tal cred­it distributions.

Cap­i­tal cred­it allo­ca­tions rep­re­sent mem­bers’ equi­ty in the Co-op. Each year, our non-prof­it coop­er­a­tive allo­cates any mar­gins avail­able at year end to each mem­bers’ account to be paid back in the form of cap­i­tal cred­its after 25 years. Every sum­mer, mem­bers get a state­ment in their bill that indi­cates the amount of cap­i­tal cred­its accrued under the account and then, the cap­i­tal cred­it dis­tri­b­u­tions – actu­al checks in the mail – are typ­i­cal­ly made each Decem­ber, with Board approval based on Co-op finances.

This year’s cap­i­tal cred­it dis­tri­b­u­tion total is about $1,003K, which includes the remain­der of 1993 (some were paid in 2017) and a por­tion of 1994. This is what the “smooth­ing” prac­tice is all about. In the next 25 years, the mar­gins we will be bas­ing cap­i­tal cred­it dis­tri­b­u­tions on vary wide­ly: from $121K to $3.1M. Antic­i­pat­ing these larg­er mar­gins, the Board dis­cussed smooth­ing out cap­i­tal cred­it dis­tri­b­u­tions based rough­ly on a ten-year rolling average. 

Smooth­ing helps OPALCO to bud­get for the cash required to pay cap­i­tal cred­its and keeps co-op mar­gins in the mem­bers’ hands. Mem­bers will con­tin­ue to get their cap­i­tal cred­its at 25 years, but dis­tri­b­u­tion will be cal­cu­lat­ed based on a gen­er­al rolling aver­age to bal­ance the spikes in our cap­i­tal cred­it forecast.

Cap­i­tal cred­it checks will be mailed by the end of Decem­ber to mem­bers who were active in 1993 and 1994. The check amounts range from $5 to thou­sands (for big ener­gy users like gro­cery stores); most checks are for between $50 — 250. Please remem­ber to keep OPALCO updat­ed when your address changes so your cap­i­tal cred­it dis­tri­b­u­tions can find you! Learn more about cap­i­tal cred­its www.opalco.com/join-opalco/capital-credits/.

Orcas Pow­er & Light Coop­er­a­tive (OPALCO) is our mem­ber-owned coop­er­a­tive elec­tric util­i­ty, serv­ing more than 11,000 mem­bers on 20 islands in San Juan Coun­ty. OPALCO pro­vides elec­tric­i­ty that is 95% green­house-gas free and is gen­er­at­ed pre­dom­i­nant­ly by hydro­elec­tric plants. OPALCO was found­ed in 1937. Fol­low OPALCO @OrcasPower on Face­book and Twitter.

You can support the San Juan Update by doing business with our loyal advertisers, and by making a one-time contribution or a recurring donation.


Categories: Energy

No comments yet. Be the first!

Leave a Reply

Your email address will not be published.

By submitting a comment you grant the San Juan Update a perpetual license to reproduce your words and name/web site in attribution. Inappropriate, irrelevant and contentious comments may not be published at an admin's discretion. Your email is used for verification purposes only, it will never be shared.

Receive new post updates: Entries (RSS)
Receive followup comments updates: RSS 2.0