NAEC returning $2.1 million in capital credits
North Arkansas Electric Cooperative (NAEC) will return $2,161,790 in capital credits to members in December. This marks the 37th consecutive year NAEC has refunded margins. NAEC has returned more than $51.5 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.
The capital is 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?
This year's retirement represents approximately 42% of the margins assigned for 2000 and approximately 10% of the margins assigned for 2022. Only members who were billed for electricity during these years will receive a refund in 2024.
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.
Nonactive 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.
Please call NAEC at (870) 895-3221 or visit an NAEC office during regular business hours with any questions about capital credits. You also can email info@naeci.com; please include your account number or service address.
Members' small change leads to scholarships, grants
If you would like to help fund scholarships for 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 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 are appreciated and tax-deductible.
Mammoth Spring Elementary School third grade students receive athletic shoes through North Arkansas Electric Cooperative's Sole Power Project. For 11 years, the co-op has given new pairs to third graders in the 12 public school districts in our service area. This is one way NAEC shows concern for community, one of the seven cooperative principles by which we operate.
Mammoth Spring Elementary School third grade students receive athletic shoes through North Arkansas Electric Cooperative's Sole Power Project. For 11 years, the co-op has given new pairs to third graders in the 12 public school districts in our service area. This is one way NAEC shows concern for community, one of the seven cooperative principles by which we operate.
MEL COLEMAN CEO
EPA’s power plant rule wrong for Arkansas’ future
Keeping the lights on is job No. 1 for Arkansas’ 17 electric cooperatives, which provide reliable, affordable and responsible power to more than 1.2 million homes, farms and businesses across our state.
The Environmental Protection Agency (EPA) is making our job more difficult.
In May, the EPA published its final power plant rule regulating existing coal and new natural gas-based power plants. EPA’s rule jeopardizes affordable and reliable electricity by forcing the premature closure of always-available power plants while also making it more complicated to permit, site and build mission critical power plants.
This rule couldn’t come at a worse time for Arkansas and our nation. Electricity demand is surging, meanwhile the EPA is forcing dramatic cuts to our energy supply and potentially our national security.
Data centers, new manufacturing facilities and our daily lives require more and more electricity. In fact, U.S. power consumption is expected to rise to record highs this year and next. National grid planners forecast that by 2028, demand for electricity will grow by an additional 38 gigawatts. That’s like adding another California to the grid.
Meanwhile, our supply of electricity is already decreasing as always-available power plants are being prematurely shut down. The North American Electric Reliability Corporation (NERC) has warned that 19 states — including Arkansas — could see rolling blackouts during times of high electrical usage over the next five years.
You might be wondering why electric cooperatives can’t just use more solar and wind energy. The answer is: We are. But solar and wind simply can’t meet our state’s needs alone when the sun doesn’t always shine and the wind doesn’t always blow.
Here’s just one example: Winter Storm Uri. In February 2021, for 58 hours, the five wind facilities we depend on produced no power. No electricity means no lights. No internet. And no heat. That can be deadly during winter storms.
When supply can’t meet demand — prices go up and the lights go off. These EPA rules will increase energy costs and reduce reliability for consumers everywhere, especially in rural America.
There still is hope that common sense will prevail. The National Rural Electric Cooperative Association (NRECA) — the association that represents nearly 900 of America’s electric cooperatives — immediately filed a lawsuit against the EPA to block the rule after it was finalized. That lawsuit is moving through the courts and a decision is expected by the middle of next year.
Arkansas electric cooperatives have one mission: To provide reliable, affordable and responsible electricity for our members. Unfortunately, the EPA’s power plant rule is standing in the way. It could lead to more blackouts, higher costs and greater uncertainty for Arkansans. That’s a future we’re working every day to avoid.
The Environmental Protection Agency’s power plant rule jeopardizes the future of affordable and reliable energy.
