Poudre Valley Rural Electric Association Board of Directors is mailing over 37,000 capital credits checks, totaling $3 million, to its members on Sept. 1.
The PVREA Board of Directors approved earlier this year to retire capital credits the first part of September. Current and previous members who held membership in the Cooperative in the years 2002, 2003, and 2015 and have accumulated retired credits of $10 or more will receive a capital credits check in the mail. Over 37,000 members will receive a check in the mail from the local Cooperative.
As a member-owned utility that operates on a not-for-profit basis, PVREA members are allotted any margins from their cooperative each year, which is based on how much electricity they purchased, in the form of retired capital credits. PVREA’s ability to return capital credits is based on the co-op meeting financial performance goals as established by the Board of Directors.
The funds are called capital credits because it’s used as working capital to help meet the expenses of the co-op. PVREA utilizes member capital to maintain the infrastructure of the Cooperative and minimizes its reliance on outside lenders. Reducing the amount of funds that must be borrowed to grow and maintain the electric system also helps keep rates at an affordable level for members.
As working capital, the unretired capital credits keep members’ money local with projects that bring jobs to the area. Additionally, when members then receive these refunds and spend it, it again benefits the local economy. Also, members see a reduction in their electricity rate when they receive their capital credits retirement from PVREA.
“As a local, cooperative operating on a not-for-profit basis, returning capital credits to members is just another way we’re working on behalf of our members,” said PVREA Chief Executive Officer Jeff Wadsworth. “We’re not working to earn margins for shareholders, but rather work for each of our members. When our members get their capital credits check in their mailbox, they are receiving a tangible benefit from their membership.”
PVREA has paid out over $51.5 million of capital credits since its founding in 1939 and over $21 million of capital credits annually in the past six years alone.
More information and a video on capital credits is available on the Poudre Valley REA website at www.pvrea.com/capital-credits or by calling 800-432-1012.
Poudre Valley Rural Electric Association is a member-owned, not-for-profit electric distribution cooperative serving more than 40,000 homes and businesses in Boulder, Larimer and Weld Counties in Northern Colorado. www.pvrea.com