On September bills, a capital credit retirement will be refunded to members that were active in 2019 and/or 2021. This refund is a special retirement of Hoosier Energy’s capital credits, totaling $1.1 million. The average refund for residential members that were on the BCREMC system in 2019 and 2021 is approximately $70. The amount of the member’s capital credit refund is based on the amount of kilowatt-hours each member purchased in 2019 and 2021, and the margins retired by Hoosier Energy at the end of those years.The board of directors approved a special capital credit retirement refunded on this bill. The refund is a special retirement of capital credits from our power provider, Hoosier Energy, totaling $1.1 million.
What Are Capital Credits?
When you purchase electricity from BCREMC, you become a member and owner. You then have a share in the capital that remains at the end of the year. After expenses for providing electricity are satisfied, money left over, called "margins;• are set aside for members in the form of capital credits. These credits are allocated among members, based on the amount of electricity purchased throughout the year.
Who Will Receive the Fund?
Current and former members who received electric service from BCREMC during 2019 and/or 2021 received this special capital credit retirement. Members that were active in 2019 and/or 2021 and still active now, will see the refund on this bill. Those who were active members in those years, but are not currently a member, will receive a check in the mail to the last known address.
Inflation, higher interest rates, and soaring prices at the gas pump are taking their toll on members, and we want to provide some financial relief. This is a special capital credit retirement, approved by the board of directors to help current members.
BCREMC has issued the capital credit refund as a bill credit on September bills to those who were active members in 2019 and/or 2021. It is listed as "Capital Credit Refund" on your bill in the details. If a member has multiple accounts, the account with the highest balance will be credited first, then any remaining credit will be put on the account with the next highest balance and so on.
Why Is This Refund Different?
Capital credits are normally retired on a 25 year rotation. This refund is different because it is being retired early to help members with the current financial strain from inflation. Capital credits are the cooperative's equity, and make it possible for BCREMC to invest in its system, secure loans, maintain facilities and operations, and provide service. The board of directors typically authorize a retirement of capital credits annually, if the co-op's financial position is sufficient. The last special retirement was in July 2020 to help members during the hardship of the COVID pandemic.
How Many Current Members Will Get the Refund?
Approximately 10,045 members of the 10,427 current members will receive refunds. If you were a BCREMC member in 2019 and/or 2021 you received the refund.