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North Arkansas Electric Cooperative is returning nearly $6 million in capital credits to its members this month, marking the 38th consecutive year the cooperative has issued refunds.
The $5,957,140 distribution brings the total returned to members to nearly $59 million since NAEC was founded in 1939.
“Returning capital credits sets NAEC and other electric cooperatives apart from investor-owned utilities,” CEO Mel Coleman said. “In our business model, the people we serve aren’t customers. They are member-owners, and NAEC was founded and continues to operate to provide them reliable, affordable electricity.”
Electric cooperatives operate on a not-for-profit basis. When annual revenues exceed operating expenses, the remaining margin is allocated to members based on how much electricity they used. The cooperative retains those funds as operating capital before eventually returning them to members, reducing the need to raise rates or borrow money for infrastructure.
The NAEC Board of Directors evaluates the cooperative’s financial condition each fall to determine how much capital to refund.
This year’s refund includes about 57% of margins from 2000, 78% of margins from 2001 and 17% of margins from 2022. Only members who were billed during those years will receive a refund.
Members owed less than $50 will see a credit on their December statement. Those with refunds of $50 or more will receive a check in the mail, as will inactive members owed more than $2.
NAEC serves almost 39,000 accounts in portions of eight North Arkansas counties. The cooperative is headquartered in Salem with offices in Ash Flat and Mountain Home.
Members with questions can call 870-895-3221, email [email protected] or visit naeci.com.
