KILN -- Coast Electric Power Association will retire $5.1 million in capital credits -- the largest retirement in company history -- to its member-owners, board chairman Gil Arceneaux announced.
Checks will be mailed Friday to eligible current and former members.
Coast Electric is a cooperative organization owned and governed by the customers it serves. The company's not-for-profit status allows it to return earnings to its members in the form of capital credits. The amount each member receives is based on the years they have been served by Coast Electric and the amount of electricity purchased during that time.
Capital credit checks represent the portion of the electric bill not needed for current operating expenses for the year. Each Coast Electric member has a capital credit account that is kept up to date with the amount of contributed capital.
Only a percentage of the margins (or profit) are returned to members. The remainder funds future plant investment or serves as capital for borrowing additional money for necessary improvements.
Coast Electric has returned more than $50 million in capital credits to members since 1961.