NHEC to return $2 million in capital credits to members, former members

by | May 12, 2023 | Capital Credits, Uncategorized

PLYMOUTH, NH – The New Hampshire Electric Cooperative (NHEC) Board of Directors has approved the return of over $2 million in capital credit payments to members and former members.

The 2023 capital credit retirement will result in the payment of all remaining capital credits from 1984, all of 1985, and part of 1986. Approximately 10,000 current members who had service with NHEC during that time will receive a credit on their July 2023 bills. Former members who no longer take service from NHEC will receive checks for their patronage. This is the third consecutive year NHEC will be returning capital credits to its current and former members.

NHEC is a nonprofit electric cooperative, which means it is owned by the people and businesses it serves. When NHEC takes in more revenue than it spends in a given year, the cooperative builds equity. Unlike investor-owned utilities, however, nonprofit cooperatives return this equity back to the member-owners who created it.

The equity NHEC builds over time is used to fund capital projects, which keeps the electric distribution system safe and reliable, and helps keep electric rates affordable and stable. NHEC’s member-owners are allocated their portion of NHEC’s equity generated each year based on their electric usage. Members’ accrued equity in NHEC is represented by capital credits that are accounted for in NHEC’s financial records and returned to members when the NHEC’s finances allow. Following a Financial Soundness Review in 2023, the NHEC Board of Directors determined that NHEC is in a good position to return equity to members for the third consecutive year.

Current and former NHEC members have the opportunity to donate their capital credit payments to the NHEC Foundation or Project Care. Project Care and the NHEC Foundation are nonprofit 501(c)(3) organizations that provide bill assistance to NHEC members and support to local community nonprofit organizations.
DONATE YOUR CAPITAL CREDIT PAYMENT HERE

NHEC Board Approves Capital Credit Payments to Members

by | May 4, 2022 | Capital Credits, Uncategorized

PLYMOUTH, NH – At its April 2022 meeting, New Hampshire Electric Cooperative’s (NHEC) Board of Directors reviewed the Co-op’s financial standing and approved the return of $4 million of equity to members. Current NHEC members will receive their portion of these equity payments, called capital credits, as a credit on their July 2022 electric bills. This is the second consecutive year NHEC will be returning capital credits to its current and former members.

NHEC is a nonprofit, rural electric cooperative, which means it is owned by the people and businesses it serves. When NHEC takes in more revenue than it spends in a given year, the Co-op builds equity. A key difference between nonprofit cooperatives, like NHEC, and for-profit utilities, is that cooperatives return this equity back to their member-owners.

The equity NHEC builds over time is used to fund capital projects, which keeps the electric distribution system safe and reliable, and helps keep electric rates affordable and stable. NHEC’s member-owners are allocated their portion of the equity generated each year based on their electric usage. Members’ accrued equity in NHEC is represented by capital credits that are accounted for in NHEC’s financial records and returned to members when the Co-op’s finances allow. Last year NHEC’s Board approved the Co-op’s first-ever capital credit retirement, returning nearly $4 million to current and former members.

“Our members are not customers, but owners of their cooperative,” said NHEC Board Chair Jeffrey Morrill. “Returning equity to members is a hallmark of the cooperative business model and we’re pleased to again be able to share the success of the Co-op with our members. Cooperatives are a reflection of the people and communities they serve. NHEC is financially strong because we have good management and members who use our services to create thriving communities that support us all.”

In July 2022, NHEC members who received electric service in the year 2021 will see credits on their electric bills reflecting the return of their capital credits. Former Co-op members will receive checks based upon their portion of equity accrued between the years 1982 – 1984.

Current and former NHEC members also have the opportunity to donate their capital credit payments to the NHEC Foundation or Project Care. Project Care and the NHEC Foundation are nonprofit 501(c)(3) organizations that provide assistance to Co-op members having difficulty paying their bills and support local community nonprofit organizations.

Additional information about capital credits and how members can donate their payments can be found at www.nhec.com/capital-credits.

NHEC Board Approves First Capital Credit Payments to Members

by | May 5, 2021 | Capital Credits, Uncategorized

PLYMOUTH, NH – For the first time in New Hampshire Electric Cooperative’s (NHEC) 82-year history, the company will begin returning a portion of its equity back to current and former members. Current NHEC members will receive their portion of these payments, called capital credits, as a direct bill credit later this summer.

NHEC is a not-for-profit, rural electric cooperative, which means it is owned by the people and businesses it serves. When NHEC takes in more revenue than it spends in a given year, the Co-op builds equity that is used to fund capital projects, which keep the electric distribution system safe and reliable, and helps keep electric rates affordable and stable. NHEC’s member-owners are allocated their portion of the equity generated each year based on their electric usage. Members’ accrued equity in NHEC is represented by capital credits that are accounted for in NHEC’s financial records and are returned to members when the Co-op’s finances allow.

At its April meeting, NHEC’s Board of Directors carefully reviewed the organization’s financial standing and determined the Co-op can begin returning capital credits to members without negatively impacting its finances. The Board authorized the return of nearly $4 million of equity back to NHEC’s members, beginning in July 2021.

“Cooperatives are different than other organizations, we exist only to serve our member-owners,” said NHEC Board Chair Tom Mongeon, “and returning equity back to them is a tangible example of that difference. Because of the financial stability that NHEC has achieved over the years, we expect to be able to return equity to our members on a regular basis as we go forward.”

“This is a significant milestone for the Co-op and our members,” said NHEC President and CEO Steve Camerino. “Returning capital credits is one of the fundamental tenets of a nonprofit cooperative. It has taken years of careful management to reach the point where we can return equity to our member-owners.  I want to recognize the efforts of all NHEC employees today and over the last several decades in bringing us to this significant point in our history.”

In July 2021, NHEC members who received electric service in the year 2020 will see credits on their electric bills reflecting the return of their first capital credits. Past Co-op members will receive checks based upon their portion of equity accrued between the years 1971 – 1982. The Co-op’s goal is to continue to return capital credits to members on a regular basis. Each year, the NHEC Board of Directors will review the Co-op’s finances and determine whether to return additional capital credits at that time.

For additional information, please visit www.nhec.com/capital-credits.