north arkansas electric cooperative
NAEC returning $2.9 million in capital credits to members North Arkansas Electric Cooperative will return $2,911,193 in capital credits to members in December. This marks the 35th consecutive year NAEC has refunded margins and brings the total returned to members to more than $44 million since the co-op’s founding in 1939.
What are capital credits?
Unlike investor-owned utilities, NAEC operates as a not-for-profit cooperative and 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. 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 NAEC to use as operating capital for a period of time. This decreases the need to raise rates or borrow money to build, maintain and expand a reliable electric distribution system. Every fall, the NAEC Board of Directors evaluates the overall financial condition of the co-op and decides the amount of capital, if any, to refund.
Will I receive a refund?
The retirement represents 57.3% of the margins assigned for 1998 and 16.01% of the margins assigned for 2021. Only members who were billed for electricity during the years above will receive a refund in 2022.
How are refunds given?
Refunds will be distributed after Dec. 1. Members with a refund of less than $50 will receive a credit on their December statement. 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 in the mail as well. That is why it's important to maintain a current mailing address on file with NAEC if you ever move off of co-op lines.
How many refunds will be given?
NAEC will mail approximately 20,000 checks to current and former members and apply approximately 22,000 bill credits.
How do I get more information?
Email info@naeci.com or visit naeci.com/capital-credits. You also may call 870-895-3221 or visit an NAEC office in Salem, Mountain Home or Ash Flat. We are open from 8 a.m. to 4:30 p.m. weekdays.
Members' small change creates scholarships, nonprofit grants If you would like to help fund scholarships to local high school graduates and grants 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, visiting an NAEC office 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. You also can drop it off at an NAEC office. Donations to Operation Round Up are greatly appreciated and tax deductible. 22
DECEMBER 2022 NORTH ARKANSAS ELECTRIC COOPERATIVE
Hillcrest Elementary School third graders show off their new athletic shoes provided through NAEC's Sole Power Project.
NAEC gives shoes to third graders
Tyler Ochoa of NAEC presents shoes to Cherokee Elementary School Principal Joni Gaskins.
Winston Nelson of ICC opens his new shoes.
POLE INSPECTIONS — NAEC contractor Osmose is inspecting poles in Henderson, Viola and surrounding areas through December. Employees will drive trucks and wear apparel with the Osmose logo. Inspections help prevent future outages. More co-op news on page 26
NORTH ARKANSAS ELECTRIC COOPERATIVE
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Kadance Brewer of Viola receives new shoes.
Local third-grade students are playing in new athletic shoes courtesy of North Arkansas Electric Cooperative’s Sole Power Project. The service project began nine years ago as a way to help third graders in local public schools. It demonstrates NAEC’s concern for community, which is one of the seven cooperative principles by which NAEC and other cooperatives operate. Students in the following school districts received shoes in November: Calico Rock, Cave City, Cotter, Highland, Hillcrest, Izard County Consolidated, Mammoth Spring, Melbourne, Mountain Home, Norfork, Salem and Viola. More photos from this year's shoe deliveries are posted on NAEC's social media. See them at twitter.com/ NorthARElectric and facebook.com/ NorthARElectric.
north arkansas electric cooperative
North Arkansas Electric Cooperative's offices will be closed Dec. 23, Dec. 26 and Jan. 2. Personnel will be on call. In the event of an outage, please report by entering your information into the NAEC app or Outage Viewer at naeci.com. You also can call 870-895-3221.
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22 26 DECEMBER 2022 NORTH ARKANSAS ELECTRIC COOPERATIVE