Claverack Returning $1.7 Million in Capital Credits to Members
Claverack Rural Electric Cooperative will return $1.7 million in capital credits to members and former members of the cooperative beginning in mid-May.
Current Claverack members will see their share of the capital credits retirement as a credit on their May electric bills, which will be mailed between May 15 and June 5 (please see specific information at bottom of this page.) Former Claverack members who are entitled to a capital credits refund will be issued checks for their portion of the retirement (it is very important that you always keep your mailing address updated with us even if you no longer have service with Claverack so any capital credits refund checks can be sent successfully.)
Because many cooperative members have been financially impacted by the COVID-19 pandemic, Claverack’s board and management team expedited the retirement process in order to get the capital credits refunds to members a month earlier than normal.
“I am pleased we are in a position to be able to return a substantial amount of patronage capital to cooperative members during these challenging financial times,” said Claverack President & CEO Bobbi Kilmer. “Our hope is that the bill credit will provide some help to those who are struggling to keep up with their monthly bill.”
Capital credits reflect margins the cooperative realizes at the end of each year. Margins are generated when income exceeds expenses. In other businesses, this excess revenue would be called profits.
Because cooperatives are member-owned, not-for-profit enterprises, margins are allocated back to the consumer-members in the form of capital credits.
The cooperative retains margins for a period of time to be used as working capital to assist in the financing of plant replacement and to build and maintain the electric system. When the co-op is financially able to do so, it retires margins by returning capital credits, also known as patronage capital, to members.
Each year, the Claverack board of directors evaluates the financial health and capital needs of the cooperative and determines whether a retirement is feasible. The cooperative has refunded approximately $12 million in capital credits to members and former members since 2011.
The $1.7 million in patronage capital being retired this month includes patronage allocations from 1987, 2008 and 2019, as well as discounted retirements to the estates of deceased members.
Charles Bullock, chairman of Claverack’s board of directors, said the board always considers the financial standing of the cooperative before approving the return of margins to members.
“Claverack experienced a very solid year in 2019,” he said. “Being able to return capital credits refunds to our members for the tenth consecutive year reflects very positively on the financial health of the cooperative.”
Bullock added that capital credits refunds are one of the many benefits of being a member of an electric cooperative.
“Co-ops exist to make sure the needs of their members are being met, not to make a profit,” he said. “When we have a positive financial year, the members are able to share in the profits through capital credits refunds.”
Claverack, with headquarters in Wysox, provides electric service to approximately 18,000 meters in Bradford, Susquehanna, Wyoming, Tioga, Lycoming, Sullivan, Lackawanna and Luzerne counties.
If the due date of your bill is:
- the 6th of the month, your capital credits refund will be applied to your bill dated May 15
- the 18th of the month, your capital credits refund will be applied to your bill dated June 2
- the 25th of the month, your capital credits refund will be applied to your bill dated June 5
Please note that the "Notice of 2019 Capital Credits Allocation" recently mailed to any member who had service with Claverack in the year 2019 is NOT the amount of the credit that you will see on your bill. It is the amount of patronage capital that has been allocated to your account for the year 2019 based on the amount of electricity that you purchased during that year.