— from Suzanne Olson —
Were you a member of OPALCO in 1988? If so, you may be among the 4,192 people who will get a check from OPALCO later this month as capital credits are distributed. This is one of the distinctions that make an electric co-op unique: it is truly member owned and operated and we each have a “stake” in the utility. Once a year, as OPALCO’s finances permit, the Co-op returns capital credits to its members on a 25-year cycle. The decision is made annually by the Board after a thorough examination of the Co-op’s financial position.
What are capital credits? Because OPALCO is a not-for-profit cooperative, it does not retain profits. Instead, any revenues over and above the cost of doing business are considered “margins.” These margins are allocated to members as capital credits at the end of the year. We all receive a statement in our bill each summer that indicates the amount of capital credits allocated for the previous year. This member capital allows our co-op to finance operations and some construction projects, with the intent that this capital will be repaid to us in later years.
The amount of capital credits members earn in a given year is based upon the amount of capital each of us contribute to the cooperative through payment of our monthly bills in a formula that compares each member’s ratio of usage to the rest of the co-op. The more electric service a member buys, the greater their capital credits allocation. The total amount being distributed this year is $707,381 with check amounts ranging from $5 to thousands of dollars (large users like schools and grocery stores). The majority of the checks are in the range of $100 – $250.
Because OPALCO distributes capital credits on a 25-year cycle, it’s important to keep OPALCO updated with your current address—even if you’ve left the area and are no longer a member. The capital credits of a deceased member may be paid, on a discounted basis, upon approval of the Board. See www.opalco.com/members/capital-credits or the bylaws (Article VIII, Section 2) for full details. If you have specific questions about your capital credits, please call member services at 376-3500.
For the latest information, go to OPALCO’s webiste: www.opalco.com/; sign up for our email newsletter (https://www.opalco.com/about/email-signup/); and follow us on Facebook (Orcas Power & Light Cooperative) and Twitter (@orcaspower). OPALCO is our member-owned cooperative, powering more than 11,000 members on 20 islands in San Juan County since 1937.
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The way capital credits are handled has long been a scandal. I have long felt that if you move away you should get your credits at once. I belong to a number of coops that all return your money when you leave. Now these credits may not matter to those who have a lot but there are older people who have to drop out because they have to go to move off island to a nursing home. These people can use their money now. IF approved the board will cash them out at a discount, which in and of itself is a scandal. This is an expropriation of funds. I have long held that just because you can do something doesn’t mean you should. Opalco is not a private business. We own it. Maybe they should put how to handle capital credits to a vote of the membership and quit behaving like cell phone companies or other large monopolistic businesses who treat their customers like dirt, because they can.
I don’t often agree w/ Harvey, but in this case, it seems to me he raises a compelling argument…especially in this day and age of computerized billing and accounting. I’d be very interested to know whether or not OPALCO has a compelling reason for maintaining what seems to be an archaic practice.
This is not a matter of computers but policy. Opalco is borrowing our money for 25 years with no interest. I have no problem with that as we own the coop. My problem is the fact that even if you leave the coop they hold your money. All former members should get their credits at once. This is doable. There is no excuse or rational for using the money of those who are no longer members for the benefit of the coop and I am pretty sure most members would agree.
25 years? How many older people actually live long enough to receive their refund? Geez, this seems quite unreasonable and unfair. Who even remembers 25 years ago? I don’t!