Homer Electric Association is refunding $2 million in capital credits to its members.
Anyone who was a member in 1985 and/or a member in 2008 will be receiving a check from the cooperative.
The reimbursement plan, which was determined by the board of directors, will distribute $600,000 among HEA members for the year 1985 and $1.4 million to 2008 members.
The average check for a 1985 member will be approximately $25. Members during 2008 will receive an average check of $40 and for residents that were members both in 1985 and 2008 will receive a check for $65 on average.
The amount of each check is determined by the amount of electricity purchased during each of those years; the more electricity purchased, the larger the capital credit check will be.
Checks will be mailed out next week.
HEA spokesman Joe Gallagher said each year the board decides how to address capital credits. This year they decided to redistribute that money to the membership.
"The board determined that it was financially responsible to do this. When they can be given back and still keep the cooperative financially healthy, that's what happens," Gallagher said.
Capital credits represent HEA members' share of equity in the co-op. Capital credits are based on company margins, which are the difference between total expenses and total revenues.
Because HEA is a member-owned cooperative, members are entitled to a portion of the margins.
Prior to refunding capital credits, HEA uses its margins to maintain, improve and upgrade its electrical system along with adding new member services.
Each of the excess margins are refunded to members based on the annual budget adopted by the board of directors.
Mike Nesper can be reached at firstname.lastname@example.org.
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