PRECorp announces capital credit refund

Powder River Energy has announced that it will be issuing almost $20 million in capital credit retirements this year.

The cooperative describes these credits as one of the major benefits of being a member and say they reflect one of the seven principles of a cooperative: member economic participation.

Each year, all revenue that has been received in excess of the expenses for that year is allocated to members as a capital contribution based on their power purchased.

The unretired amount in a member’s capital credit account represents the value of ownership in the cooperative and is returned to the membership over time.

The PRECorp Board of Directors reviews the financial condition of the cooperative annually. At that time, they may choose to approve a retirement of some capital credits.

This year’s capital credit retirement will be paid to individuals and businesses who were members and received electric service between 1993 and 2002. It will include $9.5 million received from Basin Electric Power Cooperative as a retirement of its own capital credits.

Checks for credits in excess of $50 will be mailed to members. Awards less than this amount will be applied directly to your bill as a credit.

Members who did not leave forwarding addresses with PRECorp must claim their capital credits within three years; until claimed with proof of legal interest, they will be posted on that member’s account as “unclaimed”. After three years, they will revert to the cooperative and will be used for the benefit of the membership in the form of scholarships, community grants and other such benefits.

A letter will also be included that gives members the opportunity to donate their capital credits to the Powder River Energy Foundation, which provides funds to non-profit organizations around northeast Wyoming and has provided almost $2 million in direct donations since it was founded in 2007.