Chugach Outlet
November/December 2001, Number 195
Board approves $3 million retail capital credit retirement
Thousands of past and present Chugach members will receive a share of a
$3 million retail capital credits retirement approved by the board. In December,
Chugach will mail checks to more than 22,700 members of record from 1985.
Another 7,700 current members will receive credits on their accounts.
The board approved the retirement at its Nov. 14 meeting. The retirement
will return about 37 percent of the retail capital credits earned by retail
customers in 1985. Capital credits from earlier years and about 19 percent
of the retail margins earned in 1985 have already been retired. Active
members who are due less than $75 from the retirement will receive a credit
on their accounts. Checks will be sent to inactive members and members who
are due $75 or more, or members who have more than one sub-account or are on
Chugach's LevelPay program. These checks will range from a few dollars to more
than $100,000.
Capital credits are one of the benefits of being a member of a cooperative
like Chugach. Each member receives a share of the margins (or "profits")
earned by the utility in a given year in proportion to the amount they paid
for electric service. A member's individual share of the margins is accounted
for (or allocated) annually, noticed to the member, recorded and eventually
returned as a {194912 Ra} check or credit when the board of directors authorizes
a retirement.
Chugach uses margins to offset the cost of borrowing money to finance new
construction and other expenses.
Members separating from the Chugach system should leave a forwarding address
and keep Chugach updated on future moves until all 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 also receive
information about their capital credits accounts by calling customer service
at 563-7366.
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