CAPITAL CREDIT REFUNDING PROGRAM.ppt

1、CAPITAL CREDIT REFUNDING PROGRAM,Adams-Columbia Electric Cooperative,OUR HOWS & WHYS,STATISTICS,35,000 Electric Accounts 32,0000 Active Members 60,000 Capital Credit Accounts 41,800,000 Total Equity (36+%),HISTORY,2 Mergers (87 and 92) FIFO & Estates 1998 Percentage & Estates,Bylaws Authorize Board

2、of Directors to Develop Policy National Studies Regarding Capital Credits,HOWS,KEY QUESTIONS,What do you want to accomplish with capital credit refunds? What are pros and cons of current program?,Who should benefit from Capital Credit Refunds? What are the ramifications of making a change to refund

3、programs?,KEY QUESTIONS,Our Answers,Reach as many members as possible Improve the sense of value all members have of the cooperative,Our Answers,Consistency Equity PaymentsNewer member involvement,Our Answer,It is o.k. to change Tell the members Show justification Help them understand,What did we do

4、Percentage of total accumulation for general refundAllow estates choices,Percentage,Bylaws authorize Board to decide Policy decision if financial based Annual decision Since 1998 High 4.8% Low 3.1%,Procedure,Total CC x percentageCheck minimum $10Can be applied to current bill,Response,Extremely po

5、sitiveNew membersLarge newer services,Cooperative Perspective,Assists in Equity ManagementSimple administrationEasy for members to understand,Special Refunds - Estates,Familys convenienceProvide optionsAbility to close estate,Estate Settlement Options,Full value refund Same timing as all other membe

6、rs Checks to Designated Beneficiary,Estate Settlement Options,Present Value Refund Immediate settlement and payment Value based upon cost of money for the cooperative Older credits have higher value than recent allocations,Members Families Perspective,ChoiceCan get current value and close out estate

7、Cooperatives Perspective,Less discriminatory Does not penalize current members/ratepayers Preserves financial integrity Permanent Capital,Equity Management,Percentage method allows more flexibilityEstate refunds can be capped/limited,Works for Adams-Columbia,Utilities are fixed capital intensive Limited liquidity Depreciation base 30+ years,Works for members,Everyone gets somethingFair to all members No 15 year wait to get something,Questions Comments?,Thank you!,Marty Hillert, CEO Adams-Columbia Electric Cooperative Friendship, WI,