ADVANCING CAPITAL CREDIT REFUNDS TO ALLEVIATE ECONOMIC IMPACT OF COVID-19
Due to the unique stresses be placed on our members because of the COVID-19 situation, Beltrami Electric Cooperative has opted to distribute Capital Credits earlier than in prior years. Typically, capital credits are retired annually and applied as a credit on member’s bill statements in late November or early December (depending on the billing cycle). However, in an effort to help those experiencing hardships as a result of the coronavirus pandemic, Beltrami Electric’s Board of Directors authorized a resolution to retire 50 percent of 2019’s capital credit allocation early.
How Much Is My Refund? Refund amounts are based on the amount of energy used during the period retired. Current members will have received a credit on their June bills. You can find your credit amount applied to your billing statement as “Apply Capital Credit Retirement” under the Detail of Charges section. Active members will see a credit on their June statement. Inactive members (those who’ve moved off the system) will be mailed a check in mid-June.
Receiving capital credits are just one of the benefits of membership in Beltrami Electric Cooperative. “As a not-for-profit cooperative we are required by our lender, the federal government, to make a margin, and maintain safe, reliable electric service for member-owners,” said CEO Jared Echternach. “Our goal is to provide member-owners with electricity at a price that is as close to cost as possible. Over time co-op margins are returned to members in the form of capital credits.”
Member equity, or capital credits, is created when any earnings (revenues minus expenses) are left over at the end of each year. This creates a margin. At the end of each year, the co-op assigns each member’s account a share of the margin, known as an allocation, based on their purchases from the cooperative – or how much power the member used. Capital credits are distributed when the board authorizes a retirement.
Before returning margins back to members, electric cooperatives use the capital to help offset the cost of debt for equipment and materials used for the construction and maintenance of the electric distribution system. This helps lower financing needs.
Beltrami Electric has returned more than $25 million in capital credits to members in the history of the cooperative. Anyone with questions about their capital credit refund may call the cooperative at 218-444-2540 or 800-955-6083.
