Chugach Electric mails capital credit statements
Chugach Electric Association began mailing capital credits allocation statements this week to members of record from 2001. The statements show members their share of more than $5.5 million in margins Chugach earned last year. Retail consumers shared nearly $4.5 million while wholesale customers were allocated more than $1.0 million.
Chugach is a member-owned, not-for-profit cooperative. When revenues exceed expenses, margins (what another business might call "profits") are allocated to the individual members for that year.
The allocation is a percentage determined by the relationship of margins to revenues. For 2001, retail members are being credited with about 4 percent of their total bills. In other words, customers will receive credits equal to about a half-month's worth of electric service. The average residential customer who used 700 kilowatt-hours of service a month will receive a credit of about $35.
Chugach also sent allocation statements to its wholesale customers. Seward Electric System was allocated $40,187, Homer Electric Association received an allocation of $430,638 and Matanuska Electric Association received an allocation of $614,507.
Allocation statements are not checks. Capital credits are only returned as cash to members of record when the board of directors authorizes a "retirement" of specific credits. The Chugach board has authorized the retirement of all capital credits earned through a portion of 1985's credits. The board normally considers retiring capital credits from previous years in December.
Chugach is the largest electric utility in Alaska, providing power for Alaskans throughout the Railbelt through retail, wholesale and economy energy sales.