At the November 20, 2017, GVEA Board meeting, the decision was made to retire all capital credits from 1992 plus 25 percent from 2016, which totals $7.2 million. All refunds will be distributed by the end of December 2017.
Why is a portion of the 2016 capital credits being refunded?
- This was approved by your Board due to the delay of the Electric Rate Study (currently before the RCA) and is intended to reflect our lower cost of service. The Board decided to try something new this year and went with a hybrid approach of retiring capital credits on schedule (i.e. 1992), along with a portion of the allocated 2016 capital credits (i.e. 25 percent).
What about the balance of the 2016 capital credits?
- The partial (25%) 2016 refund is unique, as each refund is approved by the Board based on the financial needs of the cooperative. The remaining 75% will retain its normal 25-year schedule. If it is retired earlier than that, it would be at a discounted rate.
How will the capital credits refunds be rolled out?
- Checks will be issued to members whose refunds are greater than $100.
- Members with refunds of less than $100 will see a credit posted to their December bill.
- The line description on the bill will indicate which year the refund ties to, along with an associated account / service location tracking number.
- Former members will receive checks if balances exceed $25.
- It’s very important GVEA has a current mailing address on file, so the capital credit refunds reach you.
If you have capital credits questions, you can call 907-451-5625 (or 1-800-771-4832) or email firstname.lastname@example.org.
You can access more information on GVEA’s website, which has a page dedicated to the topic of Capital Credits. To go to that page, click here.