Did you notice a credit on your ICL&P bill this month? If you were a member during 1994 & 1995, you should have. Your board of directors approved returning over $500,000 back to the membership on the bills that went out on June 1st.
As a not-for-profit electric cooperative, ICL&P shares excess revenue back with the members over time. All revenue exceeding the cost to provide electric service (if any) is allocated back to you in the form of capital credits. The amount of capital credits you are allocated each year is based on how much electricity you used during the previous year. Once allocated, your capital credits are held by ICL&P as a resource to replace aging infrastructure, increase capacity, maintain reliability and to operate your cooperative.
Here’s how it works:
- Money comes in from members when they pay their electric bills. Electric bills can be thought of as each member’s fair share of the funds needed for ICL&P to operate.
- Money goes out to pay co-op expenses. Member’s dollars are pooled together and used as operating capital so that ICL&P can provide reliable service and pay co-op expenses.
- Cash left over after paying co-op expenses is used to fund infrastructure projects and is allocated to the members as capital credits.
- Any funds left over are returned to members at a later date (typically 25-30 years). Capital credits are allocated to members based on their energy purchases. When the financial condition of ICL&P allows, capital credits are then retired or refunded to each member in the form of a check or a bill credit.
- Rather than waiting, eligible members may choose to participate in ICL&P’s Early Discounted Capital Credit Program (EDCC). By participating in this program, active members receive the discounted amount of their capital credits as a bill credit on their November billing statements. Inactive members will receive a check in the mail.