north arkansas electric cooperative
NAEC returning $1.5 million in capital credits to members North Arkansas Electric Cooperative will return $1,547,409 in capital credits to members in December. This marks the 34th consecutive year NAEC has refunded margins and brings the total returned to members to $42 million since the co-op’s founding in 1939.
What are capital credits?
Will I receive a refund?
The retirement represents the remaining 19.37 percent of the margins assigned for 1997, 6.81 percent of the margins assigned for 1998 and 4.48 percent of the margins assigned for 2020. Only members who were billed for electricity during the years above will receive a refund in 2021.
NAEC is owned by the members we serve. At the end of each year, the co-op subtracts, on a taxable basis, operating expenses from the amount of money earned through rates. The remaining balance is called taxable margins. The taxable margins left over at the end of the year are allocated, or assigned, to each member’s account based on the amount of electricity for which each was billed. Each member receives a capital credit certificate annually detailing how much of the previous year’s margins was allocated to his or her account. The capital is then retained by the co-op to use as operating capital for a period of time and then returned as financial conditions permit.
How are refunds given?
How does NAEC decide how much to return?
NAEC operates as a member-owned not-for-profit cooperative. Refunding capital credits exemplifies the cooperative principle of members’ economic participation.
The board evaluates the overall financial condition of the coop and decides the amount of capital, if any, to refund.
Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. (See below.) Members with a refund of $50 or more will receive a check in the mail. Non-active members with a refund of more than $2 will receive a check as well.
How do I get more information on my capital credits?
Our lobbies remain closed to help limit the spread of the coronavirus. If you have questions about capital credits, please call 870-895-3221 or email info@naeci.com. We are open from 8 a.m. to 4:30 p.m. weekdays.
Principle 3 Members’ Economic Participation Please note: This is a sample statement to show where a capital credit refund of less than $50 will appear. Refund amounts will vary. 22
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Operation Round Up: Small change with big impact for community
A MESSAGE FROM MEL COLEMAN, NAEC CEO
The Cooperative Difference
Internet | Television | Phone Proudly built for NAEC members mynextfiber.com More co-op news on page 26
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As we have for decades, North Arkansas Electric Cooperative operates as a not-for-profit cooperative. That means you are not a customer. You are a member. You are an owner. Any margins we make are assigned to you and our other members based on the amount of electricity for which you were billed. We inform you of that amount in the capital credits certificate mailed to your home or business each year. Every fall, the NAEC board evaluates the co-op’s overall financial condition and decides the amount of capital we can refund. This year’s refund of $1.5 million marks the 34th consecutive year that NAEC has returned margins. In our 82-year history, an astonishing $42 million has been refunded to our members. Capital credits are just one of the differences that sets electric cooperatives apart from other utility business models. NAEC is proud of our financial accomplishments and our ability to give money back to you, our member. NAEC’s directors, employees and I hope you and your family are well and you all have a merry Christmas!
If you would like to help fund scholarships to local high school graduates and donations to nonprofits, then please consider joining NAEC’s Operation Round Up® program. Members who join Operation Round Up agree to have their electric bill “rounded up” to the next even dollar amount each month. Enroll by calling 870-895-3221 or completing the form at naeci.com/operation-round-up. Some members support Operation Round Up by donating their capital credits refund. If you would like to donate your refund, then please endorse your check and mail it to NAEC at P.O. Box 1000; Salem, AR 72576. Donations are greatly appreciated and tax deductible.
north arkansas electric cooperative
LIHEAP can help members pay electric bill in winter months The federal government’s Low Income Home Energy Assistance Program provides help for qualifying members with their energy costs during the summer and winter months. LIHEAP is administered by community action agencies. In NAEC’s service area, those are Ozark Opportunities (ozarkopp.org) and Northcentral Arkansas Development Council (nadcinc.org). Regular winter assistance should begin in December. Applications are accepted on a first come, first served basis, so NAEC encourages members needing assistance to reach out to the agency serving their county now for more information. Ozark Opportunities serves residents in Baxter and Marion counties. Northcentral Arkansas Development Council serves residents in Fulton, Izard, Sharp and Stone counties. The amount of help available for regular assistance varies based on a member’s income, number of people in the household and other factors. Crisis assistance, when available, is a payment of up to $500 that depends on the amount of help a household presents as being necessary, according to the Arkansas Department of Energy and Environment website. NAEC tries to work with members who are experiencing financial hardships. Members needing an extension may email info@naeci.com or call 870-895-3221. A member service representative can answer any questions or make an extension during business hours of 8 a.m. to 4:30 p.m. weekdays.
Northcentral Arkansas Development Council Fulton County 870-895-3628 Izard County 870-368-4329 Sharp County 870-994-7353 Stone County 870-269-4381
Ozark Opportunities Baxter County 870-425-5118 Marion County 870-449-6250
North Arkansas Electric Cooperative offices will be closed Dec. 23-24 and Dec. 31. Personnel will be ready to respond in the event of an outage. Report an outage by calling 870-895-3221 or using the NAEC app.
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