Powder River Energy Corporation (PRECorp) this month is issuing a capital credit retirement or “refund” of almost $20 million. This retirement returns a portion of the money members paid for electric usage during select years. Some Powder River Energy members will receive a credit on their bill or a check in the mail.
Capital credits are a major benefit of being a member of an electric cooperative and reflect one of the seven cooperative principles: Member Economic Participation. At the close of each fiscal year, all revenue received in excess of expenses for that year are allocated to each member as a capital contribution based on annual power purchased.
Members are apprised of their cooperative capital credit “allocation” on their billing statements each August.
The unretired amount in a member’s capital credit account represents the value of ownership in the cooperative. This value or capital contribution is returned to the membership over time in the form of capital credits.
Annually, the PRECorp Board of Directors reviews the financial condition of the cooperative and may approve a retirement of a portion of allocated capital credits.
PRECorp members will receive approximately $20 million through this 2022 retirement of capital credits.
This year’s capital credit retirement - which includes $9.5 million PRECorp received from Basin Electric Power Cooperative (BEPC) as a retirement of its capital credits - is related to capital contributions generated during 1993 to 2002. Any member who had service with PRECorp in one or more of those years will receive a percentage of the PRECorp and BEPC capital credit retirement. Since inception, PRECorp has retired well over $120 million to its members.
Members who do not have a valid address on file with PRECorp will still receive their retirement, but it will be posted as “unclaimed” on their account. A member may claim capital credit “refunds” by providing proof of legal interest. Unless they are claimed within three years, the unclaimed funds will be returned to the cooperative for the general benefit of the membership in the form of education scholarships, community grants, and other member related benefits.
Capital Credit retirement awards of less than $50 will be applied directly as a credit to the member’s monthly bill. Retirement amounts of $50 or more will be mailed to the members through a check. Inactive members with less than $20 total unretired capital credits will receive their entire capital credit allocation amount – regardless of year earned - as part of this retirement.
Since 2011, PRECorp has provided the opportunity for members to help non-profit organizations in northeast Wyoming. To date, several members have generously donated their capital credits to the Powder River Energy Foundation, which has supported local charities in PRECorp’s service territory with nearly $2 million in direct donations since its founding in 2007. A letter and donation form are enclosed with each mailed capital credits check.
Any members who would like to donate retired or future capital credits are asked to please contact PRECorp for a donation form.
Please direct any questions or concerns about capital credits to PRECorp Member Service Representatives at 1-800-442-3630.