About $1.5 million in capital credits will be going back to certain members of Homer Electric Association next month.
Checks for the capital credits will be sent out during the week of April 17 to people who were members of HEA during 1986 and 1987, HEA stated in a release.
That totals about 10,000 current and former customers who are expected to receive approximately $75 each, depending on how much electricity they purchased during that two-year span.
The credits are part of the equity retirement plan for HEA. Since the association is a cooperative, members receive shares of the equity.
The credits are determined by the difference between expenses and revenues of the co-op each year of operation.
Although those differences, or “margins,” are distributed annually, capital credit checks are sent out at the will of the board of directors, HEA noted. That’s based on how the association is performing financially at any given time.
For that reason, the board may prioritize using what would be the capital credit money to maintain equity and fund long-term capital projects, like upgrades to the electrical system, HEA stated.
According to the release, HEA has returned nearly $19 million worth of capital credits to co-op members since 1960.