Dec. 20, 2024
North Arkansas Electric Cooperative (NAEC) returned $2,161,790 in capital credits to members in December. This marked the 37th consecutive year NAEC has refunded margins. NAEC has returned more than $51.5 million since the co-op’s founding in 1939.
What are capital credits?
Unlike investor-owned utilities, NAEC operates as a not-for-profit cooperative and is owned by the members we serve. At the end of each year, the co-op subtracts, on a taxable basis, operating expenses from the amount of money earned through rates. The remaining balance is called taxable margins.
Taxable margins left over at the end of the year are allocated, or assigned, to each member’s account based on the amount of electricity for which each was billed.
The capital is retained by NAEC to use as operating capital for a period of time. This decreases the need to raise rates or borrow money to build, maintain and expand a reliable electric distribution system.
Every fall, the NAEC Board of Directors evaluates the overall financial condition of the co-op and decides the amount of capital, if any, to refund.
Did I receive a refund?
This year's retirement represented approximately 42% of the margins assigned for 2000 and approximately 10% of the margins assigned for 2022. Only members who were billed for electricity during these years received a refund in 2024.
How were refunds given?
Refunds were distributed after Dec. 1. Members with a refund of less than $50 received a credit on their December statement. Members with a refund of $50 or more received a check in the mail.
Nonactive members with a refund of more than $2 received a check in the mail as well. That is why it's important to maintain a current mailing address on file with NAEC if you ever move off of co-op lines.
Please call NAEC at (870) 895-3221 or visit an NAEC office during regular business hours with any questions about capital credits. You also can email info@naeci.com; please include your account number or service address.
