Thousands of past and long-term Chugach Electric members are receiving a share of a nearly $1.7 million retail capital credits retirement. The Chugach board of directors approved the retirement at its Nov. 19 meeting.

Chugach is an electrical cooperative owned by its member ratepayers. Capital credits are one of the benefits of being a member of a cooperative like Chugach. They are a member's share of the margins earned by the utility in a year in which revenues exceed expenses, and are in proportion to the amount the member paid for electric service. Capital credits are allocated annually, noticed to the member, recorded and eventually returned as a check or credit when the board of directors authorizes a retirement. This action is known as a "capital credits retirement."

Chugach began mailing checks Dec. 10 to members of record for a portion of capital credits earned in 1989. Most current members will receive credits on their accounts instead of checks.

Like most other electric cooperatives, Chugach uses a "first in, first out" (or FIFO) method for retiring credits. Under this system, the oldest margins on the books are retired first. Since 1985, Chugach has authorized the return of more than $66 million in capital credits to its members.

In a separate action, the board also approved retiring about $1.7 million in capital credits earned by wholesale customers in 1998. Homer Electric Association will receive $656,410, Matanuska Electric Association will receive $962,271 and Seward Electric System will receive $56,128. This retirement is on a different schedule due to a settlement agreement that resolved issues in a proceeding before the Regulatory Commission of Alaska in the late-1990s.

Members leaving the Chugach system should provide a forwarding address and keep Chugach updated on future moves until all of their allocated capital credits have been retired.

Current members may check the status of their capital credits accounts online at www.chugachelectric.com. Past and present members may receive information about their capital credits accounts by calling Member Services at 563-7366.

Chugach is the largest electric utility in Alaska, providing power for Alaskans throughout the Railbelt through retail, wholesale and economy energy sales.