In May, more than twice as much as last year will circle back to members through either a credit on your bill or check thanks to a benefit called capital credits.
Capital credits are a unique benefit of belonging to a cooperative. You, and every member who receives electric service from us, owns part of Blue Ridge Electric. Your capital credits returns are a reminder of this benefit of being a member and an owner.
Blue Ridge Electric’s operations are being efficiently run, enabling us to return a record amount to member-owners in the form of capital credits. This is a testament to the commitment of Blue Ridge Electric, our management, and our members to balance the financial health of the cooperative with outstanding service and reliable electricity.
Capital credits are used in three specific ways:
These funds are invested in substations, power lines, poles and other infrastructure critical to the operation of an electric utility. Working capital is used to keep the cooperative financially sound and to provide highly reliable electric service.
Balancing equity and debt:
These funds balance equity and debt requirements as investments are made in the electric system. The longer you are a member, the more equity you build in the cooperative. Since returns continue to be made over time, it’s important you let us know your new address if you move from our service area.
Capital credit refunds:
Each year, your Board decides on a capital credits retirement based on the financial health of the cooperative and may distribute a portion of the capital credits balance back to members. These funds are based on the total amount of capital credits available and takes into consideration necessary working capital. Since its inception, your cooperative has returned more than $36.6 million to its members in capital credits retirements.