East Central Energy returns $1.7 million to members
BRAHAM, Minn. - After reviewing East Central Energy finances and determining that the cooperative is in sound fiscal condition, the Board of Directors has approved a capital credit retirement for consumers who have been members of the cooperative for more than one year.
The board's action authorizes payment of three percent of the equity cooperative member-owners have invested through previously allocated margins.
"Capital credits are one of the special benefits that demonstrate the value of members owning their electric cooperative," says Garry Bye, ECE president & CEO. "Through the years, sound fiscal management policies and positive financial results have allowed East Central Energy to return nearly $45 million of owner equity through payments to past and present members—more than any other electric cooperative in Minnesota."
Most members are receiving a capital credit payment in the form of a credit on this month's electric bill. Designated as a "capital credit retirement" line item, the amount of the credit will reduce or eliminate the amount due.
Members receiving capital credit retirements greater than $250 will receive a check in the mail.
ECE customers with questions about capital credits may call toll-free, 1-800-254-7944 or visit the ECE web site at
www.eastcentralenergy.com.
East Central Energy's margins have been decreasing as the cooperative has held the line on rates while expenses increased. A merger and other cost-saving measures allowed ECE to cancel a summer energy charge increase that would have taken effect in June of 2003. The cooperative plans to try again to avoid a rate increase in 2004, but a severe storm or other financial setback could require a rate change. Rates are expected to go up in 2005 in order to maintain the reliability of electric service and the financial integrity of the cooperative.
East Central Energy is a member-owned electric cooperative serving more than 52,000 homes, farms and businesses in east central Minnesota and northwestern Wisconsin. In addition to electric service, ECE provides long distance and Internet access services.
