The Co-op Way: Capital credit checks are in the mail

||| FROM KRISTA BOUCHEY for ORCAS POWER & LIGHT COOPERATIVE |||

Just in time for the holiday season, more than $1.1M in capital credit checks are going out to longtime OPALCO members this month, as they do each year. As a co-op, OPALCO does not earn profits.

Revenues over and above the cost of doing business are called “margins”. These margins represent an interest free loan for operating capital made to the cooperative by the membership and then returned in the form of capital credits to the member after 25 years.

This year, more than 6,000 members will get capital credit checks. Each year the co-op tracks how much you pay for power and determines how much of the margin you will receive in the form of capital credits. Capital credit retirements are paid to members after 25 years and the OPALCO Board of Directors assess the financial conditions and decide whether to approve the capital credit disbursements. The checks sent out this year are for members active in 1999 and 2000. The check amounts range from five dollars to thousands (for big energy users like grocery stores); most checks are for between $50 to $250.

More than $21,000 was donated through reoccurring capital credit checks donations to support Project Pal, one of OPALCO’s energy assistance programs. Project Pal offers a one-time grant (per year) to low-income members during the heating season. Members will have the option to donate their capital credits when they receive their check.

In 2018, OPALCO implemented a smoothing methodology to ensure general retirements are as even as possible from year to year, and to plan for bigger margins that occur. So, all of 1999 was distributed, plus about 46% of 2000. This helps OPALCO to budget for the cash required to pay capital credits and keeps co-op margins in the members’ hands. Members will continue to get their capital credits at 25 years, but distribution will be calculated based on a general rolling average. 

Please remember to keep OPALCO updated when your address changes so your capital credit distributions can find you! Learn more about capital credits:  www.opalco.com/account.

Orcas Power & Light Cooperative (OPALCO) is our member-owned cooperative electric utility, serving more than 11,400 members on 20 islands in San Juan County. OPALCO provides electricity that is 97% greenhouse-gas free and is generated predominantly by hydroelectric plants. OPALCO was founded in 1937.