In an attempt to provide financial relief to its members for the holiday season, the Homer Electric Association will be returning capital credits to its members and reducing their electricity bills for December.
“This past year has presented unprecedented challenges for our membership,” a Tuesday press release from HEA said. “In the spirit of giving back this holiday season and to help make the end of the year a little brighter for our communities, HEA will retire $3 million of 2019 margins to over 25,000 members.”
Members will be issued credits based on the amount of electricity they purchased in 2019, which will be reflected in their December energy bill statements. Melissa Carlin, communications specialist for HEA, said in an email Wednesday that HEA’s profit margins in 2019 were just under $5.5 million.
This is the second time in 2020 that HEA’s Board of Directors have authorized capital credit distributions. Earlier this year $1.9 million in credits was returned to 8,700 current and former members for their electricity usage in 1989. The Board of Directors decides the year they want to retire for each capital credit disbursement, and 1989 represented the “oldest unretired margins,” according to Carlin.
“The retirement of recent year margins was a way for the Board to recognize and help current members during challenging times,” Carlin said in the email.
HEA has issued capital credits to its members since the 1960s, Carlin said, and before this year that last capital credit retirement occurred in April of 2019.
The credits will be distributed automatically and require no action from HEA members. The credits will be posted to each member account on the day of billing, Carlin said.
Reach reporter Brian Mazurek at firstname.lastname@example.org.