La Plata Electric Association customers who have paid an electric bill since 2016 will share nearly $4 million in dividends, according to a news release issued Thursday.
Every year, LPEA sends back to its customers “capital credits,” which represents the amount of money that remains after the association pays all its bills.
According to LPEA spokeswoman Indiana Reed, customers who qualify will receive capital credits totaling $3,925,000 during the November cycle. LPEA has more than 30,000 members, with more than 42,000 meters in Archuleta and La Plata counties.
The LPEA board of directors in October approved the disbursement, which will be credited to electric bills. Amounts larger than $100, however, will be mailed as checks beginning Nov. 1.
“Capital credits represent our members’ investment in La Plata Electric Association,” Mike Dreyspring, LPEA CEO, said in a prepared statement.
Dreyspring said because LPEA is a nonprofit corporation, it is required to allocate margins in the form of capital credits to members annually, with the amount determined by the board of directors.
“Retiring capital credits to our members is one of the many things that make electric cooperatives unique,” he said.
LPEA noted that additional capital benefits were received from Tri-State Generation and Transmission, LPEA’s wholesale supplier.
“We have received $1 million from Tri-State that we are directly passing on to our members,” Dennis Svanes, LPEA CFO, said in a prepared statement. “The distribution will be a FIFO (first-in, first-out), so those who were members in 1995 will get the extra retirement.”
Since LPEA was incorporated in 1939, it has sent nearly $64 million back to its members, the release said.
jromeo@durangoherald.com
