For immediate release:
2:00 p.m. – Thursday, September 18, 2019
For the first time in the co-op’s 80-year history, San Isabel Electric is offering its members a chance to cash out their power supplier capital credits early at a discounted rate.
Members who choose to cash out their power supplier capital credits early will receive their discounted power supplier capital credit checks in mid-December of 2019.
The discounted amount being offered is a flat rate of 25 percent of the total balance of unretired power supplier capital credits. This percentage represents the cash value today of the member’s total balance of unretired power supplier capital credits to be paid to the member throughout a 25-year retirement cycle.
For example, John and Jane Doe have been San Isabel Electric members for 20 years. Their current unretired power supplier capital credits balance is $100. The discounted amount the Doe’s are eligible to receive early is $25.
Typically, a percentage of that amount would be paid out to the Doe’s throughout 25 to 30 years. If the Doe’s chose to opt into the discount offer and cash out their power supplier credits early, they would receive a check for $25 in mid-December.
The amount of the difference, $75 in the Doe’s case, also known as the discount, would be maintained in an equity account in the Doe’s name and would not be redeemable, unless the co-op dissolved as a corporate entity.
What is the difference between San Isabel Electric capital credits and power supplier capital credits?
There are two different types of capital credits – San Isabel Electric capital credits and power supplier capital credits.
Each type of capital credits may be retired at the discretion of San Isabel Electric’s Board of Directors when the cooperative has met certain financial requirements and other obligations. Capital credits checks were mailed September 6 for San Isabel Electric capital credits retirements from 1989, 1990, and 2018.
San Isabel Electric capital credits are based upon the amount of electricity the member purchased from the co-op in a specified year.
Power supplier capital credits are based upon the amount of electricity purchased by San Isabel Electric from the co-op’s power supplier, Tri-State Generation & Transmission Association, Inc. When Tri-State sends San Isabel Electric a check for retired power supplier capital credits, San Isabel Electric allocates the capital credits back to the members based on how much power they purchase during that specified year.
What should you do?
In October, members will receive an opt-in letter in the mail with details of their total balance of unretired power supplier capital credits and the total discounted amount the member is eligible to receive in 2019.
San Isabel Electric cannot advise you to act in one manner or another. Participation in the discounted capital credit retirement program is voluntary. Opting in allows you to receive one single payment at a lower face value, as opposed to a series of smaller payments throughout a period of 25 to 30 years that add up to a larger sum.
To opt in and cash out their power supplier capital credits at the discounted rate early, members must complete the opt-in form and return the original form to San Isabel Electric via mail or by returning to one of the co-op’s three office locations no later than November 1.
###
As a not-for-profit cooperative utility, San Isabel Electric provides affordable, reliable electricity with exceptional service to communities throughout southern Colorado. Serving nearly 20,000 member-owners and 24,000 meters, San Isabel Electric has been keeping the lights on since 1938. We don’t just serve communities. We are part of communities.
Recent Comments