AT-Cost ELECTRICITY MEMBER CONNECTIONS
AT-Cost ELECTRICITY
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for your AND BUSINESS credit YOU get thehome (capital) WHAT ARE CAPITAL CREDITS? As a member of NEC Retail Electricity, you are a member of Nueces Electric Cooperative. When you signed up to receive electric service from NEC Retail, you became a member of the cooperative. While investor-owned utilities return a portion of any profits to their shareholders and investors, electric co-ops allocate any excess revenue to members as capital credits. We retire (or pay) these out to our members when the co-op’s financial condition permits. In the upcoming months, members will start receiving notices about their capital credit retirements. The amount of each allocation and retirement is based on how much the member paid the co-op for electric service during that period. Capital credits represent the most significant source of equity in NEC. Since a cooperative’s members are also the people the co-op serves, capital credits reflect each member’s ownership in the cooperative. This differs from dividends investorowned utilities pay shareholders, who may or may not be customers of the utility. It is time for the members who helped build and sustain this co-op to get the credit... through capital credits. WHERE DOES THE MONEY COME FROM? Member-owned, not-for-profit electric co-ops set rates to generate enough money to pay operating costs, make payments on any loans, 18
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and provide an emergency reserve. At the end of each year, we subtract these necessary operating expenses from the operating revenue collected during the year. The balance is called an operating “margin.” HOW ARE MARGINS ALLOCATED? Margins are allocated to members as capital credits each year based on their purchases from the cooperative—how much power the member used. Member purchases may also be called patronage. DOES AEP OR CPS ENERGY RETIRE CAPITAL CREDITS? No. Within the electric industry, capital credits only exist at not-forprofit electric cooperatives owned by their members. ARE CAPITAL CREDITS RETIRED EVERY YEAR? Each year, the Nueces Electric Cooperative Board of Directors makes a decision on whether to retire capital credits based on the financial health of the cooperative. During some years, the co-op may experience high growth in the number of new accounts, or severe storms may result in the need to spend additional funds to repair lines. These and other events might increase costs and decrease member equity, causing the board not to retire capital credits. For this reason, NEC’s ability to retire capital credits on a year to year basis reflects the cooperative’s overall strength and financial stability. The board alone decides whether to retire capital credits.
DO I LOSE MY CAPITAL CREDITS IN THE YEARS THE CO-OP DECIDES NOT TO MAKE RETIREMENTS? No. All capital credits allocated for every year members have been served by NEC are maintained until such time as the board retires them. HOW OFTEN DO MEMBERS RECEIVE CAPITAL CREDIT RETIREMENTS? The NEC Board of Directors makes a decision each year by October whether or not to retire capital credits. When the cooperative is strong enough financially and member equity levels high enough, the board directs staff to retire some portion of past years’ capital credits. HOW WILL THE RETIREMENT WORK? Inactive or former members who no longer purchase electricity from NEC (but who purchased electricity during the years being retired) will receive their share of the capital credits. WHAT IF I HAVE MOVED? If you move out of the service area or no longer have electric service with NEC, it is important that you inform the cooperative of your current address, so that future retirements can be properly mailed to you. If you purchased electricity during the years being retired, then you are entitled to a capital credit retirement, even if you move out of the NEC service area. If it has your current address, then the co-op will send your retirement check by mail. www.necretail.com
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This November, let your voice be heard
Low voter turnout has been a topic of conversation for the last several election cycles. Since the 1960s, voter turnout during presidential elections has seen a steady decline – with the occasional uptick here and there. In the 2016 primary election cycle, voter turnout in most states was only 21 to 30 percent, and this was a record year for primary voter turnout! In Texas, we saw a voter turnout percentage of 21.5%. Some speculate the reason for the decline is because the average American is not as engaged in politics as they have been in the past. And who can blame us really? Often times, we may feel like candidates are not speaking to the issues we care about. Or perhaps we don’t feel like we understand enough about the candidates’ stances on the issues, or even the issues themselves. But we can change this.
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Here at NEC Retail Electricity, we want to see civic engagement in our communities increase. We want to give you what you need to make informed decisions about candidates at all levels of government, not just the presidential race. And we want you to know about the issues that could impact our local communities. America’s electric cooperatives are doing their part by informing co-op staff and members through Coops Vote, a non-partisan campaign with one simple goal: increase voter turnout at the polls this November. By visiting vote.coop, you can learn about your candidates, access voter registration information and more. The future of rural economies depends on their ability to keep up with today’s global economy, which is why access to broadband internet is a key topic of discussion this election season. Just 55 percent of rural
Americans have broadband at home. Quick access to information is crucial in finding a job, getting a better education and even gathering the information needed to make major health decisions. But there is a barrier: expensive costs. With the right state and federal policies, broadband technology can become available to all Americans, allowing families and businesses to communicate in new and faster ways. Electric cooperatives are already committed to providing affordable electricity to our communities, so helping provide affordable broadband access is a natural next step. We encourage you to visit vote. coop and take the pledge to learn more about the issues that impact us locally. Let’s work together to improve our communities by increasing voter turnout and changing our country, one vote at a time.
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Ramiro De la Paz Memorial
SCHOLARSHIP The Cooperative awards high school seniors of cooperative members scholarships each year. This year, there are three different types of scholarships that will be awarded. Students planning to attend a 4-year college or university in Texas are eligible to apply. Two Grand Prize scholarships of $4,000 and ten $1,000 scholarships will be awarded. Students planning to attend a 2-year college or vocational school in Texas for a career related to the electrical industry (GIS mapping, communications, engineering, etc.) are eligible to apply. Ten $1,000 scholarships will be awarded. Students planning to attend a Texas lineman’s college are eligible to apply. Two $5,000 scholarships.
nt s e r a r p bers u o , If y e mem o - op ar he C win d o f t co u l s h i p ! r yo u h o l a c as
Applicants must reside in the home with a parent or legal guardian who has been a Nueces Electric Cooperative member for a minimum of six months as of the application deadline date.
Two $5,000 scholarships and
Two $4,000 scholarships and
Ca hig llin hs ga se ch ll nio oo rs! l
For Applications & Details: www.necretail.com
Application deadline: February 10
Twenty $1,000 scholarships
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2017
Youth Leadership Tour Win the trip of a lifetime!
The Govenment-in-Action Youth Leadership Tour 2017 is an all-expense-paid trip for high school students to learn about different aspects of the government, meet their members of Congress and visit historical sites. Each year, NEC sends four delegates from the cooperative to participate. This year’s trip will begin in Austin, Texas on Wednesday, June 7 and continue on to tour sites in Washington D.C. before the trip concludes on Friday, June 16. The travel package, valued at $3,000, includes air transportation to and from Washington D.C., hotel stay, meals, admission fees, and $250 cash for extra expenses.
Essay Topic: Choose one of the Seven Cooperative
Principles and explain how NEC embodies that principle.
Application Deadline: January 31, 2017
Complete the 2017 Nueces Electric Cooperative Youth Leadership Tour Application form which can be found on both nueceselectric.org and necretail.com. Submit a 400-600 word essay on the topic “Choose one of the Seven Cooperative Principles and explain how NEC embodies that principle.” Finalists will interviewed to determine the final four winners that will take this Youth Leadership Tour trip of a lifetime. Applicants must have consent of and reside in the home with a parent or legal guardian who is a current Nueces Electric Cooperative member. www.necretail.com
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Apply Today!
How to apply:
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We will be closed for
Thanksgiving Thursday & Friday November 24-25
CHOOSE THE RIGHT BULB FOR THE RIGHT JOB There are three primary types of lighting: ambient (general lighting), task lighting and accent lighting. As lighting technologies continue to advance, consumers should be open to trying new shapes and types of bulbs. The check marks below indicate appropriate locations for different types of bulbs on the market. Happy shopping!
BEST BETS FOR HOME LIGHTING Ambient Lighting Common Bulb Types
Pendant Fixture
Ceiling Fixture
Recessed Cans
Accent Lighting Ceiling Fan
Wall Sconce
Task Lighting Spot Light
Table or Floor Lamp
Spiral Globe A-Shape Candle Reector
Source: energy.gov
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