north arkansas electric cooperative edition
NAEC returning $1.4 million in capital credits North Arkansas Electric Cooperative will return $1,410,086 in capital credits to members in December. This marks the 33rd consecutive year NAEC has refunded margins and brings the total returned to members to $40.9 million since the co-op’s founding in 1939.
Will I receive a refund?
What are capital credits?
How are refunds given?
NAEC is owned by the members we serve. At the end of each year, the co-op subtracts operating expenses from the amount of money earned through rates. The remaining balance is called margins. The margins left over at the end of the year are allocated, or assigned, to each member’s account based on the member’s electric usage. In the spring, each member receives a capital credit certificate detailing how much of the previous year’s margins was allocated to their account. The capital is then retained by the co-op to use as operating capital for a period of time and then returned as financial conditions permit.
How does NAEC decide how much to return?
Each year the NAEC Board of Directors evaluates the overall financial condition of the co-op and decides the amount of capital, if any, to refund.
This year’s retirement represents 23.2 percent of the margins assigned for 1997 and 5.19 percent of the margins assigned for 2019. Only members who purchased electricity during the years above will receive a refund in 2020. Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. Members with a refund of $50 or more will receive a check in the mail. Non-active members with a refund of more than $2 will receive a check as well.
How do I get more information on my capital credits?
Our lobbies remain closed to help limit the spread of the coronavirus. If you have questions about capital credits, please call 870-895-3221 or email info@naeci.com. We are open 8 a.m. to 4:30 p.m. weekdays. As a not-for-profit cooperative, NAEC abides by the seven cooperative principles, one of which is members’ economic participation. Refunding capital credits truly exemplifies this principle.
Principle 3 Members’ Economic Participation Please note: This is a sample statement to show where a capital credit refund of less than $50 will appear. Refund amounts vary. 22
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North Arkansas Electric Cooperative operates as a not-for-profit cooperative. That means you are not a customer. You are a member. You are an owner. Any margins we make are assigned to you and our other members based on the amount of electricity each used. Every spring, you receive a capital credits certificate that states your portion of the previous year’s margins that were assigned to your account. Every fall, the NAEC board evaluates the co-op’s overall financial condition and decides the amount of capital we can refund. In NAEC’s 81-year history, $40.9 million has been refunded to our members. This year’s refund of $1.4 million marks the 33rd consecutive year that NAEC has refunded margins. Capital credits are one of the differences that sets electric cooperatives apart from other utility business models. NAEC is proud of our financial accomplishments and delighted to give money back to you, our member. NAEC’s directors, employees and I hope you and your family are well and have a merry Christmas! — Mel Coleman
If you would like to help award scholarships to recent high school graduates, then please consider joining NAEC’s Operation Round Up® program. Members who join Operation Round Up agree to have their electric bill “rounded up” to the next even dollar amount each month. You can enroll by calling 870-895-3221 or completing the online form at www.naeci.com/operation-round-up. Some members support Operation Round Up by donating their capital credits refund. If you would like to donate your refund, then please endorse your check and mail it to NAEC at P.O. Box 1000; Salem, AR 72576. All donations to Operation Round Up are greatly appreciated and tax deductible.
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Help local students by enrolling in Operation Round Up program
Merry
Christmas!
North Arkansas Electric Cooperative offices will be closed Dec. 24-25 and Jan. 1. Crews will be ready to respond in the event of an outage. Report an outage by calling 870-895-3221 or using the app.
More co-op news on page 26 NORTH ARKANSAS ELECTRIC COOPERATIVE
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north arkansas electric cooperative edition
NAEC’s Sole Power Project provides athletic shoes
Line Superintendent David Martin’s granddaughter Kinsley McCord and other area third-graders received new shoes from NAEC.
Area third-grade students are playing in new athletic shoes courtesy of North Arkansas Electric Cooperative’s Sole Power Project. The service project began seven years ago as a way to help third-graders in local public schools. It demonstrates NAEC’s concern for community, which is one of the seven cooperative principles by which the co-op operates. Students in the following school districts received shoes in November: Calico Rock, Cave City, Cotter, Highland, Hillcrest, Izard County Consolidated, Mammoth Spring, Melbourne, Mountain Home, Norfork, Salem and Viola. Handing out shoes is a highlight for NAEC employees. To be safe in light of the coronavirus pandemic, though, NAEC left distributing the shoes to school personnel this year. Parents can share a photo of their third-grader wearing his or her new shoes on the Sole Power Project post at www.facebook.com/NorthARElectric.
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