Capital Credits

Capital Credits: A Return on Your Investment

HR Co-op is a not-for-profit cooperative.

Our members own us and share in the construction, operation, maintenance, and prosperity of the co-op.

When you get electric or internet service from us, you become a member of our co-op.

We track revenues and expenses separately for electric and internet service. At the end of each year, any funds (margins) remaining after all of a service’s expenses have been paid are allocated to the members who bought that service during the year.

If you purchase electric service from us, we record an electric service capital credit allocation for you. If you purchase internet service from us, we record an internet service allocation.

We send you an allocation statement each spring to help you keep track of your capital credits.

Capital credits represent your share of the margins, or net income, the co-op earns while providing service to all members each year.

The size of your share is based on your proportional share of the services provided to all members.

We save the extra money for a few years in case there’s an emergency or system improvements needed. And then in the fall of each year, our Board of Directors decides how much to retire.

We retire these credits and return the funds to members in November. We call this process capital credit retirement.

March 2024 Capital Credit Allocation

In February 2024, the Hood River Electric & Internet Co-op Board of Directors authorized allocation of capital credits based on our financial performance in 2022. Allocation notices were mailed to members on March 21.

The 2023 capital credit allocation includes:

$170,272 for the electric division
$72,778 for the internet division

Capital Credit Retirements

Why Don’t We Return Extra Funds Right Away?

We never know when a storm, fire, or other emergency might strike our community. We also have to invest in our system, replacing poles and upgrading systems to keep power and internet flowing reliably.
To help cover costs when a big investment is needed, we hold on to capital credits for a few years. The funds are used to pay for system improvements and maintenance.
When the funds are no longer needed, we return them to members. Your capital credit retirement is the amount you receive back as a refund.

The Board of Directors Decides When to Retire Capital Credits

Our Board of Directors decides how much of the fund to retire each year. They make separate decisions for each service.

When the board votes to retire capital credits, we calculate the amount to pay each member. The oldest capital credits, from earlier years of operation, are paid off first.

Internet Service

Operating since about 2005, and first began returning capital credits to members in 2020.

in November 2023, we are retiring 50% of the remaining 2017 allocation, or $92,100, and 40% of the 2022 allocation, or $102,092, for a total internet division retirement of $194,192.
In November 2022, we retired 50% of the 2017 allocation, totaling $184,395.
In November 2021, we retired the remainder of the 2016 allocation, totaling $91,838.
In November 2020, we had our first capital credit retirement for the internet division. We retired 50% of the 2016 allocation, totaling $91,913.

Electric Service

Operating since 1945, and usually returns some capital credits in November of each year.

Here are some recent retirements:

In November 2023, we are retiring the remainder of the 2012 allocation, totaling $746,690.
In November 2022, we retired the remainder of our 2011 allocation and 20% of our 2012 allocation, totaling $887,093.
In November 2021, we retired 100% of our 2010 allocation, and 25% of our 2011 allocation, totaling $827,749.
In November 2020, we retired 100% of our 2009 allocation, which is $859,944.
In April 2020, we did a special springtime retirement for the remaining 50% of our 2008 allocation, which was $367,999.
In November of 2019, we retired the balance of our 2007 electric service allocation, and 50% of our 2008 allocation, for a total of $514,968.

When Will You Get Your Refund?

Once the amounts are calculated, checks are mailed to members.
The checks are void after 90 days, so cash them promptly! If not, you’ll need to contact us to request a new check.

Apply Credits to Bill

If you prefer not to receive a check in the mail, you may request that your capital credit refunds be applied to your HR Co-op bill.

Apply Credits

Donate Your Credits

You can donate your credits to HR Co-op’s member assistance fund.

Donate Credits

Moving or Need an Early Retirement?

Unclaimed Credits

If you move out of our service area, it’s important to keep your address updated with us, so we know where to send your capital credit retirement checks.

Sometimes we lose track of former members and aren’t able to give them their retirements. Unclaimed capital credits are forfeited after four years and are donated to our energy assistance fund.

Unclaimed Capital Credits

Early Retirements

If a member passes away and there are no living joint members, the member’s estate may request a discounted early retirement of capital credits.

These early retirement requests are reviewed and approved by the Board of Directors on a case-by-case basis.

For more information about early retirements, contact Accounting & Member Services Manager Jamie Leiblein at (541) 436-5102 or email us.