At its April 2022 meeting, New Hampshire Electric Cooperative’s (NHEC) Board of Directors reviewed the Co-op’s financial standing and approved the return of $4 million of equity to members. Current NHEC members will receive their portion of these equity payments, called capital credits, as a credit on their July 2022 electric bills. This is the second consecutive year NHEC will be returning capital credits to its current and former members.
NHEC is a nonprofit, rural electric cooperative, which means it is owned by the people and businesses it serves. When NHEC takes in more revenue than it spends in a given year, the Co-op builds equity. A key difference between nonprofit cooperatives, like NHEC, and for-profit utilities, is that cooperatives return this equity back to their member-owners.
The equity NHEC builds over time is used to fund capital projects, which keeps the electric distribution system safe and reliable and helps keep electric rates affordable and stable. NHEC’s member-owners are allocated their portion of the equity generated each year based on their electric usage.
Members’ accrued equity in NHEC is represented by capital credits that are accounted for in NHEC’s financial records and returned to members when the Co-op’s finances allow. Last year NHEC’s Board approved the Co-op’s first-ever capital credit retirement, returning nearly $4 million to current and former members.
“Our members are not customers, but owners of their cooperative,” said NHEC Board Chair Jeffrey Morrill. “Returning equity to members is a hallmark of the cooperative business model and we’re pleased to again be able to share the success of the Co-op with our members.
“Cooperatives are a reflection of the people and communities they serve. NHEC is financially strong because we have good management and members who use our services to create thriving communities that support us all.”
In July 2022, NHEC members who received electric service in the year 2021 will see credits on their electric bills reflecting the return of their capital credits. Former Co-op members will receive checks based upon their portion of equity accrued between the years 1982 and 1984.
Current and former NHEC members also have the opportunity to donate their capital credit payments to the NHEC Foundation or Project Care. Project Care and the NHEC Foundation are nonprofit 501(c)(3) organizations that provide assistance to Co-op members having difficulty paying their bills and support local community nonprofit organizations, including The Andover Beacon.
Additional information about capital credits and how members can donate their payments can be found at NHEC.com/Capital-Credits.
About New Hampshire Electric Cooperative
NHEC is a member-owned electric distribution cooperative serving 85,000 homes and businesses in 118 New Hampshire communities. Headquartered in Plymouth, NH, our mission is to provide Co-op members the ability to access affordable, reliable electric service options that support and simplify their lives. Learn more about NHEC at nhec.com.