Central Electric Issues $1.7 Million in Capital Credits
Central Electric Cooperative announced Dec. 8, that some current and former members are eligible to receive capital credits payments totaling $1,751,211.35. CEC members will begin receiving their checks this week.
Individual checks will average $118.51 and will be paid to 10,554 present and former CEC members who purchased power in the years of 1992 and 1993. The payments total slightly over $1.25 million. Most of the difference between the $1.75 million capital credit retirement and the disbursement total is funds due members from the two years of service for whom CEC does not have a current address on file. The cooperative advertises their names in The Bulletin and lists those members on its web site from June through the end of the year 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 the two years.
Central Electric has made such payments every year since 2001 and in 32 of the past 35 years, totaling $22.3 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 1941. At the close of 2015, CEC served 32,611 accounts held by 26,155 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 3,883 miles of energized power lines, including 187 miles of transmission line, 2,267 miles of overhead distribution line and 1,429 miles of underground distribution line.