Refunds in double-digit millions for fourth straight year
The Intermountain Rural Electric Association Board of Directors has approved $15.3 million in capital credit refunds to its customers.
This marks the fourth year in a row in which IREA has returned capital credits in the double-digit millions. IREA has refunded $58 million to customers since 2014.
Most customers will see their capital credit refund payment as a line item on their March bills. A capital credit refund check is mailed in lieu of a bill credit, however, if the customer has opted out of the bill credit, is on budget billing, maintains multiple active accounts, or no longer has an active account.
As a member-owned cooperative, IREA does not operate for profit. We instead allocate to our customers shares of our net revenue remaining after all operating expenses have been covered each year, based on each customer’s patronage, or electricity usage . These allocations are not held by IREA as cash; our margins are reinvested in the infrastructure required to provide electric service. Part of the allocated capital credits are paid out annually based on the company’s financial condition.
The IREA Board of Directors is committed to returning capital to customers while also maintaining and improving the infrastructure needed to provide service, meeting financial requirements and maintaining low rates.
For more information about capital credits, visit www.IREA.coop/capital-credits.
An allocation is the share of IREA’s margin assigned to each IREA customer who purchased energy during the year. Allocations are retained by IREA to invest in infrastructure or are refunded; they are not held as cash. Allocations are known as “capital” credits because the funds not returned to IREA’s customers are used to make capital investments in the infrastructure needed to provide electric service and are a large part of the cooperative’s working capital.
A retirement is the amount of the allocation returned to you as a capital credit refund. It is a portion of your capital credit balance and is your share of the total annual refund authorized by IREA’s Board of Directors. A refund reduces your total assigned allocation by the amount of the refund.
