{"id":38587,"date":"2022-12-05T14:22:20","date_gmt":"2022-12-05T21:22:20","guid":{"rendered":"https:\/\/www.ravallielectric.com\/?page_id=38587"},"modified":"2023-03-03T12:21:06","modified_gmt":"2023-03-03T19:21:06","slug":"capital-credits","status":"publish","type":"page","link":"https:\/\/www.ravallielectric.com\/member-center\/capital-credits\/","title":{"rendered":"Capital Credits"},"content":{"rendered":"\r\n\r\n\t\r\n\t<div class=\"nav-tiles row align-center\">\r\n\r\n\t\t\r\n\t\t\t\r\n\t\t\t\t\r\n\t\t\t\t<div class=\"nav-tile col large-12\">\r\n\r\n\t\t\t\t\t<a class=\"cta-link \" href=\"https:\/\/www.ravallielectric.com\/member-center\/capital-credits\/unclaimed-capital-credits\/\" \t\t\t\t\t   title=\"View Unclaimed Capital Credits Here\" >\r\n\r\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"cta-icon-box\">\r\n\t\t\t\t\t\t\t<div class=\"cta-icon\">\r\n\t\t\t\t\t\t\t\t<img class=\"img\" src=\"https:\/\/www.ravallielectric.com\/wp-content\/uploads\/capitalcredits2-piggy-bank-coin-dollar-money.svg\" alt=\"\" role=\"presentation\">\r\n\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t\r\n\t\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t<div class=\"cta-label\">\r\n\t\t\t\t\t\t\t\t<p>View Unclaimed Capital Credits Here<\/p>\r\n\t\t\t\t\t\t\t<\/div>\r\n\r\n\t\t\t\t\t<\/a>\r\n\r\n\t\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\t\t\r\n\t<\/div>\r\n\r\n\n<h2>What are Capital Credits<\/h2>\n<p><a href=\"https:\/\/www.ravallielectric.com\/wp-content\/uploads\/CCinfographic-1.pdf\" target=\"_blank\" rel=\"noopener\">How Capital Credits Work Infographic (PDF)<\/a><\/p>\n<p>In a perfect world, a not-for-profit business could write a budget on January 1st to cover all expenses and end the year with a profit of exactly zero. In the real world, we must always budget a bit more than projected costs because we can\u2019t predict the weather or big, expensive storms.<\/p>\n<ul>\n<li>Every year leftover profits may amount to as little as $10,000 or as much as $400,000 or more<\/li>\n<li>All those profits are gradually returned to consumers in the form of Capital Credit payments<\/li>\n<\/ul>\n<h3>Capital Credit Returns<\/h3>\n<p>Every year the Co-op\u2019s Directors look at the Co-op\u2019s financial health and decide how and when to return Capital Credits.<\/p>\n<ul>\n<li>Some years the profits are too small to warrant payments<\/li>\n<li>In other years when the profits are greater, the board has a few options:\n<ul>\n<li>The board may decide to retain some of the profits to be used as working capital or to upgrade a portion of the electric system<\/li>\n<li>Some Credits are returned to members in cash<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h2>How are Capital Credits Paid<\/h2>\n<p>Historically, Ravalli County Electric Cooperative has paid Capital Credits in order of \u201cfirst in, first out.\u201d<\/p>\n<ul>\n<li>The 1930\u2019s were paid, then the \u201940\u2019s, the \u201950\u2019s, the \u201960\u2019s, 1970, 1971, 1972, 1973 and so on<\/li>\n<li>Ravalli Electric has paid off all Credits due for all years up to and including 2002<\/li>\n<li>Most Co-ops around the country are similarly still paying Credits from approximately 25 years ago<\/li>\n<\/ul>\n<h3>Changes to the Formula<\/h3>\n<ul>\n<li>From 2009 to 2016 the board of directors chose to pay only the older years<\/li>\n<li>In 2017, the board of directors elected to change the formula for payments so the Co-op paid a portion of the oldest year on file and a portion of the new year<\/li>\n<li>This change resulted in thousands of newer consumers getting a Capital Credit check for the first time<\/li>\n<\/ul>\n<h3>Capital Credits are Hard Assets<\/h3>\n<ul>\n<li>Some consumers assume that Capital Credits are like savings accounts with cash set aside for each member<\/li>\n<li>Capital Credits are actually in the form of hard assets \u2013 poles, wire, trucks, and buildings<\/li>\n<li>It would make no sense for the Co-op to pay back large Capital Credit payments and then borrow money from the bank to replenish working capital<\/li>\n<li>Interest payments for borrowed money would be passed on to the consumer<\/li>\n<\/ul>\n<h3>Keeping Rates Low<\/h3>\n<ul>\n<li>Returning Capital Credits is a balancing act<\/li>\n<li>No one wants to raise electric rates in order to raise revenue available to pay back Credits<\/li>\n<li>It\u2019s better to keep rates as low as possible and pay back Credits slowly but surely<\/li>\n<\/ul>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are Capital Credits How Capital Credits Work Infographic (PDF) In a perfect world, a not-for-profit business could write a budget on January 1st to cover all expenses and end the year with a profit of exactly zero. In the real world, we must always budget a bit more than projected costs because we can\u2019t [&#8230;]\n","protected":false},"author":22,"featured_media":0,"parent":38569,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"_links":{"self":[{"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/pages\/38587"}],"collection":[{"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/comments?post=38587"}],"version-history":[{"count":23,"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/pages\/38587\/revisions"}],"predecessor-version":[{"id":39630,"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/pages\/38587\/revisions\/39630"}],"up":[{"embeddable":true,"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/pages\/38569"}],"wp:attachment":[{"href":"https:\/\/www.ravallielectric.com\/wp-json\/wp\/v2\/media?parent=38587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}