IREA customers will receive a total of $16.375 million in capital credit refunds this month.
This is the sixth straight year in which IREA’s board of directors has voted to issue capital credits in the double-digit millions. Since 2014, IREA has refunded nearly $90 million to customers.
Most customers will see their capital credit refund payment as a line item on their March bill. A capital credit refund check is mailed in lieu of a bill credit 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 based on each customer’s patronage, or electricity usage. These allocations are not held by IREA as cash; our margins are instead reinvested in the infrastructure required to provide electric service. Some of the allocated capital credits are paid out annually based on the company’s financial condition.
Our board of directors is committed to returning capital to customers while also meeting financial requirements, maintaining low rates and supporting infrastructure that provides reliable electric service.
For more information about capital credits, visit www.IREA.coop/capital-credits.
Allocations & Retirements
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 for 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. A refund reduces your total assigned allocation by the amount of the refund.[/vc_message]