north arkansas electric cooperative
NAEC returning $1.5 million in capital credits to members North Arkansas Electric Cooperative will return $1,547,409 in capital credits to members in December. This marks the 34th consecutive year NAEC has refunded margins and brings the total returned to members to $42 million since the co-op’s founding in 1939.
What are capital credits?
Will I receive a refund?
The retirement represents the remaining 19.37 percent of the margins assigned for 1997, 6.81 percent of the margins assigned for 1998 and 4.48 percent of the margins assigned for 2020. Only members who were billed for electricity during the years above will receive a refund in 2021.
NAEC is owned by the members we serve. At the end of each year, the co-op subtracts, on a taxable basis, operating expenses from the amount of money earned through rates. The remaining balance is called taxable margins. The taxable margins left over at the end of the year are allocated, or assigned, to each member’s account based on the amount of electricity for which each was billed. Each member receives a capital credit certificate annually detailing how much of the previous year’s margins was allocated to his or her 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 are refunds given?
How does NAEC decide how much to return?
NAEC operates as a member-owned not-for-profit cooperative. Refunding capital credits exemplifies the cooperative principle of members’ economic participation.
The board evaluates the overall financial condition of the coop and decides the amount of capital, if any, to refund.
Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. (See below.) 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 from 8 a.m. to 4:30 p.m. weekdays.
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 will vary. 22
DECEMBER 2021
NORTH ARKANSAS ELECTRIC COOPERATIVE