REDMOND, Ore. - Central Electric Cooperative announced Frida that some current and former members are eligible to receive capital credits payments totaling $1,417,600. CEC members will begin receiving their checks this week.
Individual checks will average $112.55 and will be paid to 8,894 present and former CEC members who purchased power in the years of 1988 and 1989. The individual payments being disbursed total slightly over $1 million. Most of the difference between the $1.4 million capital credit retirement and the disbursement total is funds due members from 1988 and 1989 without a current address on file with CEC.
The cooperative advertises and lists those members on its web site in an effort to reach them. The amount of each member's check is based on the amount of electricity purchased by members in each of those two years.
Central Electric has made such payments every year since 2001 and in 30 of the past 33 years, totaling $17.6 million in retirements since 1958.
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.
Central Electric Cooperative, Inc. Background
A member-owned, not-for-profit electric cooperative, Central Electric Cooperative (CEC) has provided electric utility services to its members in central Oregon since 1940. At the close of 2012, CEC served 31,685 accounts held by 25,042 members in its 5,300 square-mile service territory in Deschutes, Crook, Jefferson, and parts of Lake, Linn, Wasco, and Grant counties. CEC's electrical system includes 24 substations and 3,808 miles of energized power lines, including 183 miles of transmission line, 2,256 miles of overhead distribution line and 1,369 miles of underground distribution line.