CHELCO’s board of trustees has approved retirement of more than $2 million in capital credits, which will be returned to members this winter.
The utility provider will mail checks for amounts of $25 or more this month, while those with retirements under $25 will receive a credit on their December bills. The retirements are for those who were members in either 1996 or 2015 or both. In recent years, the board has retired capital credits that are 20 years old, plus a portion of some recent years.
CHELCO is a not-for-profit cooperative owned by the members it serves. After expenses are paid each year, funds remaining are called margins. These funds are allocated to the capital credits account of each member based on the amount of power they purchased.
These capital credits are the members’ ownership in CHELCO. The money is invested in capital items, such as electrical facilities, trucks or computers. By using the money as capital, CHELCO doesn’t need to borrow as much, which reduces interest costs. After a period, and as financial conditions allow, the board of trustees retires the capital credits. Over the years, CHELCO has retired more than $27 million in capital credits.
CHELCO serves more than 49,000 accounts in Walton, Okaloosa, Holmes and Santa Rosa counties.
This article originally appeared on Crestview News Bulletin: CHELCO retires more than $2 million in capital credits to members