ATI IVVEE NNOORRTTHH AARRKKAANNSSAASS EELLEECCTTRRI ICC CCOOOOPPEERRAT
NAEC returning $2.1 million in capital credits North Arkansas Electric Cooperative (NAEC) will return $2,161,790 in capital credits to members in December. This marks 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.
Will I receive a refund? This year's retirement represents 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 will receive a refund in 2024.
How are refunds given? Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. Members with a refund of $50 or more will receive a check in the mail. Nonactive members with a refund of more than $2 will receive 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.
Members' small change leads to scholarships, grants If you would like to help fund scholarships for local high school graduates and grants to nonprofits, then please consider joining NAEC’s Operation Round Up® program. Members who join Operation Round Up agree to have their electric bill “rounded up” to the next dollar amount each month. Enroll by calling (870) 895-3221, visiting an NAEC office or completing the form at naeci.com/operation-round-up. Some members support Operation Round Up by donating their capital credits refund. If you would like to donate your refund, then please endorse your check and mail it to NAEC at P.O. Box 1000; Salem, AR 72576. You also can drop it off at an NAEC office. Donations are appreciated and tax-deductible.
22 ARK ANSAS ELEC TRIC COOPERATIVE 22 December DECEMBER2024 2024 NORTH NORTH ARK ANSAS ELEC TRIC COOPERATIVE