Capital credits coming for PRECorp members

Capital credit, or refunds, totaling about $16 million will be issued by Powder River Energy Corp. this month, according to a Dec. 14 press release from the company. 
 
“This retirement returns a portion of the money members paid for electric usage during select years,” the release says. “Some Powder River Energy members will receive a credit on their bill or a check in the mail.” 
 
According to the release, capital credits are a benefit of being a member of an electric cooperative and reflect one of the seven cooperative principles – member economic participation. 
 
“At the close of each fiscal year, all revenue received in excess of expenses for that year is allocated to each member as a capital contribution based on annual power purchased,” the release says. “A key part of PRECorp’s enduring value is reflected in capital credit retirements.” 
 
Each August, members are apprised of their cooperative capital credit “allocation” on their billing statements. This allocated credit is retained and used to provide “for the ongoing operation of the cooperative until the total allocation is retired.” 
 
“Annually the board of directors reviews the financial condition of the cooperative and may approve a retirement of a portion of allocated capital credits,” the release says. “PRECorp members will receive a total of $16.15 million through this 2023 retirement of capital credits.” 
 
“What matters most tends to last the longest. For decades, our cooperative model has centered on our membership and the enduring value we create through this relationship,” PRECorp board president Jim Purdy said. “While some power providers prioritize their P&L (profit and loss) for immediate returns, our cooperative’s enduring focus is on a different time of P&L, ‘people and legacy’.”
 
The capital credit being returned this year, according to the release, was generated during 2001 and 2004. Members who had services during this time will receive a percentage of the capital credit retirement of $8.09 million. 
 
Members without a valid address will receive their retirement, the release says, but it will be posted as “unclaimed” on their account. Those members may claim their capital credits by providing proof of legal interest. 
 
“Unless they are claimed within three years, the unclaimed funds will be returned to the cooperative for the general benefit of the membership in the form of education scholarships, community grants and other member-related benefits,” the release says. “Capital credit retirement awards of less than $50 will be applied directly as a credit to the member’s monthly bill.” 
 
Amounts of $50 or more will be mailed to the member through a check, the release notes. 
 
Members also have the option, since 2011, to donate their capital credits to the Powder River Energy Foundation. The money is then used to help nonprofit organizations in northeast Wyoming. 
 
According to the foundation’s website, the most recent round of donations through its annual Holiday giving program totaled $20,000 divided amongst 19 charitable organizations. 
 
These funds go directly toward the seasonal work of the selected local charities to help families in need. In Weston County, the organizations receiving donations this year were Newcastle Ministerial Association Holiday giving, Helping Hands Foundation of Weston County, B.R.E.A.D food pantry and the Weston County Peace Officers Shop with a Cop. 
 
“The Foundation’s mission is to demonstrate our commitment to nonprofit charitable organizations in northeast Wyoming by lending a helping hand to improve the quality of life or services in their community,” said Joe Roth, Foundation executive director, in the press release. “People in our communities are experiencing a variety of socioeconomic challenges. The charities that bring relief are also stretched. Our Foundation Board enthusiastically offers its support this Holiday season.” 
 
In addition to capital credit donations, the foundation raises funds through fundraisers, matching grants, and the PRECorp Operation RoundUp program. 
 

 
A rare utility decrease
 
In addition to the retirements, the corporation’s board has approved a cost of power adjustment for implementation in January 2024. 
 
“The COPA is a mechanism to recoup or return changes in the wholesale cost of power that PRECorp pays to Basin Electric Power Cooperative from the previous year and weave in anticipated changes in the wholesale power cost in the coming year,” another release states. 
 
This is a separate line item that appears on elective bills each month, it notes, and it is “calculated in addition or reduction to the base rate charges, which is related to the actual cost of purchasing wholesale power.” 
 
“PRECorp’s power cost was nearly 100% of forecast in 2023 and there is a small change to the cost of power expected in 2024, so the changes to the COPA will be negligible on members’ bills across the rate classes,” the release says. “A residential member using an average of 1,200 kWh per month, will see an average monthly decrease of $2.40 beginning with their February bill from January usage. Commercial accounts using a monthly average of 1,700 kWh per month will notice a decrease of $3.40 per month.”
 
Members can calculate their COPA impact by using the rate calculation at precorp.com.