More than $4 million in capital credits returned to Chugach members
December 03, 2024
Spreading some holiday cheer, Chugach Electric Association, Inc., (Chugach) is issuing capital credits to thousands of current and former members as part of a more than $4 million retail capital credit retirement. The Chugach Board of Directors approved the retirement at its Oct. 15, 2024, board meeting.
Over 93,000 current and former Chugach members are receiving their share of the capital credit retirement in the form of a bill credit or a check in December. Chugach is retiring approximately $2.8 million of capital credits for the year 1992; over $900,000 for the year 2023; and has allocated $300,000 for the retirement of retail capital credits on a discounted basis for estates and former members no longer receiving electric service.
This is the first time since acquiring Municipal Light & Power (ML&P) in 2020 that Chugach has completed a hybrid retirement, paying 75% of the oldest allocation year on record, and 25% of the newest allocated year on record. The hybrid approach was part of the discussion and commitments made by Chugach during the acquisition process. The capital credit retirement reflects the cooperative spirit with members of record from 1992 and 2023 with one account receiving a bill credit on their December bill. Members with more than one active account, or who are receiving more than $600, will receive a check. The returns range from just a few cents to $161,000, which is being returned to the Municipality of Anchorage. The average amount a current or former member will receive is $88.
One of the advantages of being a member of a not-for-profit electric cooperative is you are an owner and share in the financial success of the cooperative through capital credits. Each year, Chugach allocates annual margins (revenues remaining after expenses) to members based on the amount of electric service a member purchases. The allocated amounts are called capital credits, and they are used by Chugach to keep the cooperative financially sound and able to support critical infrastructure investments, ensuring safe and reliable electric service. Capital credits are a vital funding source until the cooperative’s financial conditions allow their return.
Members leaving the Chugach system should leave a forwarding address and keep Chugach updated on future moves until all their outstanding allocated capital credits have been retired. Members needing information on their capital credits can call member services at (907) 563-7366.
Over 93,000 current and former Chugach members are receiving their share of the capital credit retirement in the form of a bill credit or a check in December. Chugach is retiring approximately $2.8 million of capital credits for the year 1992; over $900,000 for the year 2023; and has allocated $300,000 for the retirement of retail capital credits on a discounted basis for estates and former members no longer receiving electric service.
This is the first time since acquiring Municipal Light & Power (ML&P) in 2020 that Chugach has completed a hybrid retirement, paying 75% of the oldest allocation year on record, and 25% of the newest allocated year on record. The hybrid approach was part of the discussion and commitments made by Chugach during the acquisition process. The capital credit retirement reflects the cooperative spirit with members of record from 1992 and 2023 with one account receiving a bill credit on their December bill. Members with more than one active account, or who are receiving more than $600, will receive a check. The returns range from just a few cents to $161,000, which is being returned to the Municipality of Anchorage. The average amount a current or former member will receive is $88.
One of the advantages of being a member of a not-for-profit electric cooperative is you are an owner and share in the financial success of the cooperative through capital credits. Each year, Chugach allocates annual margins (revenues remaining after expenses) to members based on the amount of electric service a member purchases. The allocated amounts are called capital credits, and they are used by Chugach to keep the cooperative financially sound and able to support critical infrastructure investments, ensuring safe and reliable electric service. Capital credits are a vital funding source until the cooperative’s financial conditions allow their return.
Members leaving the Chugach system should leave a forwarding address and keep Chugach updated on future moves until all their outstanding allocated capital credits have been retired. Members needing information on their capital credits can call member services at (907) 563-7366.
Contact:
Julie Hasquet, Communications Manager
julie_hasquet@chugachelectric.com, (907) 762-4489
