GVEA Board Approves $7.1 Million In Capital Credit Refunds
By the end of November, Golden Valley Electric Association (GVEA) will return $7.1 million in capital credits to members who had service with the cooperative in 1998 (and earlier). These funds, known as capital credits, are returned to GVEA members based on their electric service purchases.
An advantage of being a member of a cooperative is having service provided to member-owners at cost. Because GVEA is a not-for-profit cooperative, any revenue left over at the end of each year (known as margins) is allocated to members based on the amount of power purchased throughout that year. This is what is known as capital credits.
While the allocation of capital credits happens each year, the co-op typically retains this money for a period of 25 years. During this period, capital credits are reinvested in the system for projects and maintenance, such as building substations or replacing power poles or lines. GVEA’s board of directors specifically authorizes each retirement only after careful consideration of the financial impact to the co-op. When capital credits are retired, GVEA issues a refund.
Active members whose refunds are less than $100 will have a credit posted to their membership account. Active members with capital credit refunds of $100 or greater will be issued a check. However, active members with a past due or delinquent balance will have their entire capital credit refund applied to their membership account. Former members will receive checks if balances exceed $25 (or less than $25 and held for 5 years).
For more information about capital credits and a list of frequently asked questions, visit the Capital Credits page. Questions can be directed by emailing Capital Credits or by calling (907) 451-5625.
How It Works
- GVEA tracks how much electricity you use during the year
- Each year, after expenses are paid, GVEA calculates the leftover funds (margins).
- The margins are used to pay down any debt, invest in facilities and projects, and are allocated to members as capital credits based on how much electricity they use.
- Depending on financial conditions, GVEA retires (refunds) capital credits to members at a future date currently 25 years.