Delaware Electric Cooperative to Give $7.7 Million Back to Members in December
GREENWOOD, Del.- Delaware Electric Cooperative’s (DEC) Board of Directors has voted to return $7.7 million in capital credits to the Cooperative’s member-owners in December. Capital credits are also known as the Co-op’s profits or margins. Because DEC is a not-for-profit utility, margins are returned to the people the Cooperative serves.
To receive a billing credit or check from the Cooperative, you must have been a Delaware Electric Cooperative member in 1987, 1988, 1990, 1991, 2005, 2006 or 2007. If a member has eligible capital credits of $100 or higher, they will receive a check. If their allocated capital credits amount is less than $100, a member will receive a credit on their bill. Members who had an active account in 1987, 1988, 1990, 1991, 2005, 2006 or 2007, but are no longer served by DEC, will also receive a check for their portion of the retired capital credits.
According to Bill Andrew, President and CEO of DEC, “We return the money to members during the Christmas season because that’s when members need it the most. The return of capital credits is one of the many ways electric cooperatives are different from the for-profit utilities. We make decisions based on what’s best for our members and return any profits to those we serve.”
Over the past six years the Cooperative has returned nearly $35 million to members.
Newer members who were not served by DEC between 1987 and 2007 will also eventually receive capital credits, but it may take a few years. Capital credits are considered to be a return on the members’ investment in the system. Each month members pay their electric bill, they are helping to pay for improvements to the system that keep the lights on. The immediate payback is in the form of increased reliability and low rates.
After about 10 years, members begin seeing an even greater return on their investment in the form of either a yearly billing credit or a check from the Cooperative. Members don’t receive a refund the first few years because it wouldn’t be fair to the older members who have paid for the current electrical system.
Each generation of Cooperative members contributes, builds equity in the Co-op and then is rewarded with a capital credit refund. This system is unique to cooperatives.
Anyone with questions about their capital credit refund should call the Cooperative at 855-332-9090.
Delaware Electric Cooperative is a member-owned electric utility serving 98,000 member-owners in Kent and Sussex Counties. For more information, visit us on the web at www.delaware.coop or www.beatthepeak.coop or follow us on Twitter and Facebook.