Were you a member of OPALCO in 1987? If so, you may get a check from OPALCO later this month as capital credits are distributed. Once a year, as OPALCO’s finances permit, the co-op returns capital credits to its members on a 25-year cycle. The decision is made annually by the board after an examination of their financial position.

What are capital credits? OPALCO is a not-for-profit cooperative – it does not retain profits. Instead, any revenues over and above the cost of doing business are considered “margins.” These margins are allocated to members as capital credits at the end of the year.  Islanders receive a statement in their bill each summer that indicates the amount of capital credits allocated for the previous year. This member capital allows OPALCO to finance operations and some construction projects, with the intent that this capital will be repaid in later years.

The amount of capital credits members earn in a given year is based on the amount of capital contributed to the cooperative through payment of monthly bills in a formula that compares each member’s ratio of usage to the rest of the co-op. The more electric service a member buys, the greater their capital credits allocation. The total amount being distributed this year is $628,146 with check amounts ranging from $5 to thousands of dollars (large users like schools and grocery stores). The majority of the checks are in the range of $100 – $250.

Visit www.opalco.com/members/capital-credits or the bylaws (Article VIII, Section 2) for full details. For questions, call 376-3500.