OTEC To Distribute $3 million in Capital Credits To Member-Owners
By Mindy Gould on Tuesday, November 9th, 2021 in Eastern/Southeast Oregon News Eastern/Southeast Oregon Top Stories Northeastern Oregon News Northeastern Oregon Top Stories
BURNS, JOHN DAY, LA GRANDE, & BAKER CITY – (Release from OTEC) Oregon Trail Electric Cooperative (OTEC) is excited to announce it will return $3 million in capital credits to its member-owners this year. The 2021 distribution was approved at the October Board meeting after a thorough review of the cooperative’s fiscal health.
Capital credit retirements are one of the more visible benefits of membership in an electric cooperative. Capital credits are each member-owner’s share of OTEC’s margins earned during the year. Each year, after all operating expenses have been paid, remaining margins are allocated to each member’s capital credit account based on the amount they were billed during previous years. Since OTEC first began retiring capital credits in 1996, the co-op has returned $49 million to its members.
“Positive financial conditions allowed for us to return these funds to our members,” OTEC Chief Financial Officer Heidi Dalton said. “Our financials are strong, and we’re proud to demonstrate the power of the cooperative business model through capital credit retirements.”
Members can expect to receive their checks in mid-December. Returns are applied directly to the member’s account if the amount is less than $15, or if the member has a past due balance. Members with returns greater than $15 and no past due accounts will receive a check in the mail.
OTEC members who may be leaving the cooperative are encouraged to provide OTEC with a current mailing address so that capital credits can be returned as they are retired.
Please visit www.otec.coop/capital-credits for more information, including a video that further explains the capital credit program.
If you’re interested in donating your capital credit check to the OTEC Member Foundation to support local charitable programs, please visit www.otec.coop/member-foundation or email communications@otec.coop.
