GVEA Board Approves $9.3 Million in Capital Credit Refunds
November 1, 2018
FAIRBANKS – The Golden Valley Electric Association board of directors has authorized payment of $9.3 million in capital credits to members who had service in 1993 and 2017.
The co-op typically retires capital credits after 25 years. However, this is the second year that the co-op is retiring capital credits after one year. The board authorized an accelerated payout of 25 percent from 2017’s capital credits or $4.8 million. “The early retirement of the 2017 portion was due to significant operating margins in 2017, which totaled $20.1 million,” said Rick Schikora, chairman of the board.
GVEA is a member-owned, not-for-profit cooperative. Any revenue left at the end of each year is allocated to members based on the amount of power purchased throughout that year. These are known as “margins.” The co-op reinvests margins in projects and maintenance, such as building substations or replacing poles or lines. After a period of time, typically 25 years, these margins are returned to members in the form of capital credit refunds.
Active members can expect a check for payments over $100. Amounts under $100 will be reflected as a credit on their November electric bills. Former members will be issued checks if the refund exceeds $25. All refunds will be distributed by the end of November.
You can access more information on GVEA’s website, which has a page dedicated to the topic of Capital Credits. www.gvea.com/resources/capitalcredits