Photo caption: With a recently completed Habitat for Humanity home in the background, Greg Kvasnicka, energy services manager, East Central Energy, presents a check to Judy Knudson, president, East Central Minnesota Habitat for Humanity. This donation resulted from ECE member donations of their 2005 capital credits refunds. With ECE's guidance, Habitat for Humanity will use the funds to implement high level energy conservation construction standards.


Capital Credits Choice program allows ECE members to direct their capital credits to one of four charities
BRAHAM, Minn. - East Central Energy (ECE) announces that its' members have donated $71,000 to the newly created program, Capital Credits Choice. ECE members can direct their refunds to one of four charities including the American Red Cross, Habitat for Humanity, Salvation Army Heat Share or ECE's Operation Round Up.

"The Capital Credits Choice program is obviously a big hit with our members," reports Garry Bye, ECE's president and CEO. "It is especially gratifying that the first year of this program is so successful and these very worthy organizations are getting additional resources to help those in need. We are also proud that we have carefully managed our operating expenses, keeping in mind that our goal is to keep electric rates as low as possible and return what profit remains to our members."

Capital credits result from income that remains after deducting ECE's operating expenses from revenue collected. Electric utilities are a capital intensive industry that requires large annual investments in right-of-way maintenance, equipment upgrades -- substations, poles, transformers, wires and the like -- needed to run the business and assure reliable service. Since cooperatives do not issue stock on a stock exchange, ECE cannot sell additional stock to meet cash needs. Instead, the cooperative has two other options: borrow from the bank or from members. The co-op uses a combination of bank and member financing. Therefore, ECE members share ownership of the cooperative with the bank. Capital credits represent the individual member's share of that ownership.

These capital credits (also called margins or equity) are one of the benefits of being a co-op member and owner. Annually these are allocated to each member according to the amount of electricity purchased. The more electricity purchased from ECE, the larger the share of profit allocated. The ECE board of directors also declares a pay out, the portion of capital credits to be refunded to members that year.

This year, given the choice to donate their refund, many members showed their generosity.

East Central Energy www.eastcentralenergy.com is a member-owned electric cooperative serving more than 55,000 homes, farms and businesses in east central Minnesota and northwestern Wisconsin. ECE also provides Internet and long distance services.