PRECorp returning member Capital Credits

SUNDANCE, Wyo. - Powder River Energy Corporation (PRECorp) this month is issuing a capital credit retirement or “refund” of about $12 million. This retirement returns a portion of the money members paid for electric usage during select years. Some Powder River Energy members will receive a credit on their bill or a check in the mail.

Capital credits are a major 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.

A key part of PRECorp’s enduring value is reflected in capital credit retirements. Members are apprised of their cooperative capital credit “allocation” on their billing statements each August. This allocated capital credit is retained and used to provide for the ongoing operation of the cooperative until the total allocation is retired.

Annually, the PRECorp Board of Directors reviews the financial condition of the cooperative and may approve a retirement of a portion of allocated capital credits.

PRECorp members will receive a total of $12 million through this 2024 retirement of capital credits.

“For 80 years, our cooperative model has centered on our membership and the enduring value we create through this relationship,” said PRECorp Board President Jim Purdy. “We work to provide our members with an A-plus experience, great rates, and a trusted energy partnership. Returning these dividends to the membership is a key part of our cooperative way.”

This year’s PRECorp capital credit retirement is related to capital contributions generated during 2001. Any member who had service with PRECorp in 2001 will receive a percentage of the PRECorp capital credit retirement of $3.5 million. Since its inception, PRECorp has retired well over $140 million to its members.

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PRECorp’s wholesale power supplier Basin Electric has retired $8.4 million, which will be returned to those who were cooperative members in 2006 through 2008.

Members who do not have a valid address on file with PRECorp will still receive their retirement, but it will be posted as “unclaimed” on their account. A member may claim capital credit “refunds” 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. Capital Credit retirement awards of less than $50 will be applied directly as a credit to the member’s monthly bill.

Retirement amounts of $50 or more were mailed December 12 to the members through a check. Inactive members with less than $20 total unretired capital credits will receive their entire capital credit allocation amount – regardless of year earned - as part of this retirement.

Since 2011, PRECorp has provided the opportunity for members to help non-profit organizations in northeast Wyoming. To date, several members have generously donated their capital credits to the Powder River Energy Foundation, which has supported local charities in PRECorp’s service territory with more than $2.5 million in direct donations since its founding in 2007. A letter and donation form were enclosed with each mailed capital credit check.

Please direct any questions or concerns about capital credits to PRECorp Member Service at 1-800-442-3630.