Central Electric Cooperative announced today its board of directors returned $2.8 million in capital credits to current and former cooperative members who bought electricity in 1997 and 1998. On average, 11,482 members will receive a check for $170. CEC mailed the checks this week.
Central Electric has two options for raising capital as a not-for-profit utility: borrowing from a financial institution or raising capital from its members. The cooperative lowers its capital costs by melding capital credits funding from members with borrowed money at interest, which helps keeps members’ rates low.
The cooperating membership benefits from sharing in the margins earned annually. CEC’s bylaws authorize its board of directors to pay capital credits to members when the utility’s financial condition permits.
Central Electric Cooperative, Inc. Background
A member-owned, not-for-profit electric cooperative, Central Electric Cooperative (CEC) has provided electric utility services to its members in central Oregon since 1941. At the close of 2021, CEC served 36,400 accounts held by 29,396 members in its 5,300 square-mile service territory in Deschutes, Crook, Jefferson, and parts of Lake, Linn, Wasco, and Grant counties. CEC’s electrical system includes 24 substations and 4,045 miles of energized power lines, including 187 miles of transmission line, 2,262 miles of overhead distribution line, and 1,596 miles of underground distribution line.
