DECEMBER 2023
THE MESSENGER A Publication for North Arkansas Electric Cooperative Members
NAEC returns record $5.7 million in capital credits North Arkansas Electric Cooperative will return $5,739,127 in capital credits to members in December. This is the largest retirement in co-op history and marks the 36th consecutive year NAEC has refunded margins. NAEC has returned more than $49.5 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. 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 the remaining approximately 36% of the margins assigned for 1998, 100% of the margins assigned for 1999 and approximately 7% of the margins assigned for 2022. Only members who were billed for electricity during the years above will receive a refund in 2023.
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 through 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. Please call (870) 895-3221 or email info@naeci.com with any questions about capital credits allocated to your account.
Co-op gives new shoes
Izard County Consolidated Elementary School third grade receives athletic shoes through North Arkansas Electric Cooperative’s Sole Power Project. For the 10th year, third-grade students at the 12 public schools in the co-op’s territory have new shoes.
POLE INSPECTIONS — NAEC has contracted with Osmose to inspect poles in areas of Baxter and Izard counties. Members might see Osmose employees in and around the following areas: Franklin, Horseshoe Bend, Lakeview, Lone Rock, Melbourne, Mountain Home, Norfork, Salesville and Violet Hill, among others. They will drive trucks and wear apparel with the Osmose logo. Work should be completed in April.
HOW ELECTRICITY GETS TO YOU step 1 Generation Electricity is generated from various sources.
step 5 Distribution Substation Voltage is lowered further for safe distribution.
step 2 Step-Up Transformer Voltage is increased to push the electricity over long distances.
step 6 Distribution Power Lines Electricity travels across these lines in your community. step 7 Final Stop A transformer reduces voltage a final time, and electricity is sent to your home.
step 3 Transmission Power Lines Lines carry electricity over long distances. step 4 Transmission Substation Voltage is lowered so electricity can travel across the local system.
MERRY CHRISTMAS — NAEC’s offices will be closed Dec. 25-26 for Christmas and Jan. 1 for New Year’s. A dispatcher will be on duty, and personnel will be on call in the event of an outage. Report an outage by using the NAEC app or by calling 870-895-3221.
ENERGY EFFICIENCY TIP OF THE MONTH Smart thermostats are Wi-Fi enabled and automatically adjust heating and cooling temperature settings in your home for optimal performance. Smart thermostats learn your temperature preferences and establish a schedule that adjusts to energy-saving settings when you’re asleep or away. Look for smart thermostat models with the ENERGY STAR® label. — U.S. Department of Energy
DAILY HIGHS & LOWS — OCTOBER 2023 Average Daily High: 69.94° compared to 72.67° in 2022
TEMPERATURE (°F)
Average Daily Low: 53.72° compared to 44.17° in 2022 Total Rainfall Amount: 6.13” compared to 1.81” in 2022 Warmest Day: Oct. 2, 85.37° Coolest Day: Oct. 31, 27.89°
DAYS
CONTACT NAEC
RIGHT-OF-WAY
ON THE FRONT
(870) 895-3221 info@naeci.com naeci.com
Midway area and Many Islands, Wirth, Hardy and Ravenden areas
Grace and her classmates at Viola Elementary School receive athletic shoes through NAEC’s Sole Power Project.
IMAGES: TORI MOSS; KEENAN/ADOBE STOCK; TORI MOSS; NRECA; JONI/ADOBE STOCK