March 2023 Capital Credit Allocation
In February 2023, 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 15.
The 2022 capital credit allocation includes:
- $401,082 for the electric division
- $255,286 for the internet division
2022 Special Allocation
Learn more about our 2022 Special Allocation of 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.
The co-op tracks revenues and expenses separately for electric and internet service.
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 year to help you keep track of your capital credits.
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.
Capital credits represent your share of the margins, or net income, the co-op earns while providing service 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.
The Board of Directors meets each year to decide how much of the fund to retire. Then we return the funds to members. We call this process capital credit allocation and retirement.
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 Decide 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.
Operating since about 2005, and first began returning capital credits to members in 2020.
- 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.
Operating since 1945, and usually returns some capital credits in November of each year.
Here are some recent retirements:
- 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?
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
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 Controller Jamie Leiblein at (541) 436-5102 or email us.