Thousands of past and long-term Chugach Electric Association members are receiving a share of over $4 million retail capital credits retirement. The Chugach Board of Directors approved the retirements in two meetings; December 16, 2015 and November 30, 2016.
Chugach is mailing checks or giving credits on accounts to 58,795 members of record from the year 1990 and a portion of 1991. Active members who are due less than $600 from the retirement will receive a credit on their account. Checks will be sent to members who are due $600 or more, members who have more than one active account, and inactive members. Checks range from a few dollars to $179,000. The average residential customer credit/check is $61.00.
Most current members will receive credits on their accounts instead of checks.
Capital credits are one of the benefits of being a member of an electric 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 annually, noticed to the member, recorded, and eventually returned as a check or credit when the board of directors authorizes a retirement. Until the capital credits are retired, Chugach uses those margins to partially offset the cost of new construction and other expenses.
On the same dates, in a separate action, the board also approved retiring capital credits earned by wholesale customers in 1993, 1994, and part of 1995. Matanuska Electric Association will receive $1,802,760, while Seward Electric System will receive $179, 923.
Like most other electric cooperatives, Chugach uses a “first in, first out” method for retiring credits. The oldest margins on the books are retired first. Since 1985, Chugach has authorized the return of more than $80 million in capital credits to its members.
Members will receive their credit or check in December 2016. Members leaving the Chugach system should leave a forwarding address and keep Chugach updated on future moves until all of their allocated capital credits have been retired.
Past and present members needing information on their capital credits accounts can call customer service at 563-7366.