OPALCO capital credit checks coming

  • Fri Dec 14th, 2018 4:50pm
  • News

In December, capital credit checks will be sent out to members who were active in 1993, plus some from 1994 as Orcas Power and Light Cooperative continues to smooth its 25-year cycle for capital credit distributions.

Capital credit allocations represent members’ equity in the co-op. Each year, the non-profit cooperative allocates any margins available at year-end to each members’ account to be paid back in the form of capital credits after 25 years. This year’s capital credit distribution total is about $1,003,000, which includes the remainder of 1993 (some were paid in 2017) and a portion of 1994. In the next 25 years, the margins we will be basing capital credit distributions on vary widely: from $121,000 to $3.1 million. Anticipating these larger margins, the board discussed smoothing out capital credit distributions based roughly on a 10-year rolling average. Smoothing helps OPALCO to budget for the cash required to pay capital credits and keeps co-op margins in the members’ hands. Members will continue to get their capital credits at 25 years, but distribution will be calculated based on a general rolling average.

Checks will mail by the end of December. The check amounts range from $5 to thousands (for big energy users like grocery stores); most checks are for between $50–250.