PRECorp returning member capital credits

Powder River Energy Corporation this month is issuing a capital credit retirement or “refund”. This retirement returns a portion of the money members paid for electric usage during select years.

Some Power River Energy members will receive a credit on their bill or a check in the mail.

Capital credits are a major benefit of being a member of an electric cooperative and reflect one of the seven cooperative principles: Member Economic Participation. At the close of each fiscal year, all revenue received in excess of expenses for that year are allocated to each member as a capital contribution based on patronage contributed through power purchases.

Members are apprised of their cooperative capital credit “allocation” on their billing statements each August.

The unretired amount in a member’s capital credit account represents the value of ownership in the cooperative. This value or capital contribution is returned to the membership over time in the form of capital credits.

Annually the PRECorp Board of Directors reviews the financial condition of the cooperative and may approve a retirement of a portion of allocated capital credits.

This year’s capital credit retirement is related to electricity used during 1989-1992 and portions of 1993-1995 and 2020.

Any member who had service with PRECorp in one or more of those years will receive a percentage of the capital credit retirement.

In total, PRECorp members will receive approximately $13.7 million through this 2021 retirement of capital credits.

Members who do not have a valid address on file with PRECorp will still receive their retirement, but it will be posted as “unclaimed” on their account. A member may claim their capital credit “refunds” by providing proof of legal interest.

Unless they are claimed within three years, the unclaimed funds will become a gift to the cooperative and may be retained as equity or used otherwise for the benefit of the membership.

PRECorp will not issue checks for active members if the total refund is less than $50. Those amounts will be applied directly as a credit to the member’s monthly bill.

Inactive members with less than $20 total unretired capital credits will receive their entire amount as part of this retirement.

Since 2011, PRECorp has provided the opportunity for members to help non-profit organizations in northeast Wyoming. To date, the membership has generously donated their capital credits to the PRECorp Foundation, which has supported local charities in PRECorp’s service territory with more than $1.5 million in direct and in-kind donations since its founding in 2007.

If you would like to donate retired or future capital credits, please contact PRECorp for a donation form.

Please direct any questions or concerns about capital credits to PRECorp Member Service Representatives at 1-800-442-3630.