Central Electric Cooperative announced Tuesday that some current and former members are eligible to receive capital credits payments totaling $1,054,238. CEC members will begin receiving their checks this week.
Individual checks will average $89.86 and will be paid to 8,342 present and former CEC members who purchased power in the years of 1987 and 1988. The amount of each check is based on the amount of electricity purchased by members in each of those two years.
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.