CVEA is a cooperative and operates on a not-for-profit basis. As a member of this multi-million dollar organization, you are also part owner. Electricity is provided at cost. Each year that revenue exceeds the cost to provide electric service (net margin), it is assigned to the individual member/owners in the form of capital credits. Capital credits represent the ownership each member has in the Association. The amount of capital credits assigned is in proportion to the amount billed for electric usage during that year.
Member/owners are notified each year when capital credits are assigned. The capital is retained by the Association as working capital in order to maintain and improve our system until the Board of Directors declares a refund. Capital credits have been refunded to members through 1983. Should you leave our service area, please notify us of your new address so that we may locate you when a refund is declared.
Article VII of the Bylaws completely explains nonprofit operation under which the Association operates. Bylaws can be accessed by clicking the link above or copies are available at either CVEA office.
2019 Capital Credit Retirement
On November 21, 2019, the CVEA Board of Directors approved a capital credit retirement in the amount of $605,000, representing approximately three percent of total member equity.
All current members will see a credit applied to your electric bill on December 20, 2019.
Capital credits are the financial margins a cooperative achieves through business operations. Margins are the difference between the Cooperative’s income and expenses. At the end of each year, margins are allocated to members’ capital credit accounts, and periodically the Board of Directors may retire portions of capital credits.
2019 Capital Credit Allocation
Year end margins for 2019 have been allocated to the accounts for members from whom revenue was received during 2019; the amount was shown on the June 2020 bill for current members. Inactive members will receive individual statements.
Unclaimed Capital Credits
As noted above, in December 2019, CVEA made general retirements of capital credits. Some members did not receive a check because CVEA did not have a valid mailing address.
CVEA is currently noticing unclaimed capital credits from the 2019 retirement. The following list is in alphabetical order. If you find your name, call (907) 822-3211 or (907) 835-4301 to update your information.
Distributions which remain unclaimed after all noticing requirements have been met will revert to the CVEA Community Foundation.
Solomon Gulch Allocation
A non-refundable allocation notice was sent to members in July 2010. This allocation relates to the acquisition of the Solomon Gulch hydro project and the transmission line in 2011. View detailed information on this allocation.
Under IRC rules, interest earnings and annual depreciation increase or (decrease) the allocation below.
|2009 Allocation||$ 17,097,729|
|2010 Allocation||$ 652,310|
|2011 Allocation||$ (416,967))|
|2012 Allocation||$ (639,862)|
|2013 Allocation||$ (479,275)|
|2014 Allocation||$ (328,820)|
|2015 Allocation||$ 595,794|
|2016 Allocation||$ (220,172)|
|2019 Allocation||$ (909,182)|
If you have any questions regarding capital credits, or if you are interested in donating future capital credits to the CVEA Scholarship Program, please contact Mary Ellen Bedrick at (907) 822-3211, or email firstname.lastname@example.org.