Your piece of the pie
As a cooperative, SLVREC does not operate for a profit. Rates are determined by periodic cost-of-service studies designed to evaluate the cost of doing business for each rate class served. Money collected in excess of actual expenses is retained by the cooperative as a type of operating loan. This loan from members to the cooperative provides a ready cash flow and keeps the cooperative financially stable.
Each year, the cooperative's board of directors reviews the company's financial status and determines if there is enough working capital on hand to return a portion of this "borrowed" money back to members. These capital credits are paid out to members in direct proportion to a member's use for the years in which the credits are being returned.
Members who no longer have active accounts with the cooperative, but who are entitled to receive capital credits for these years will receive a check in the mail. For more information or if you believe you are owed capital credits, contact SLVREC customer service.
SLVREC currently returns most capital credits in the form of a bill credit for members with active accounts. Members who move from the co-op's service territory are encouraged to keep a current address on file at SLVREC so a check can be mailed to you when capital credits are paid out for the years in which you received service.
If a member passes away before capital credits are paid, the cooperative will return credits to the estate of that member at a reduced rate. Contact SLVREC if you have additional questions regarding estate payouts.
COOP: San Luis Valley REC: The capital credits allocated to your account as recorded by this notice are margins from normal operations.
G&T: Generation & Transmission: The capital credits allocated to your account as recorded by this notice are margins allocated to San Luis Valley REC from our power suppliers.
Capital Credit Allocations
As a cooperative, San Luis Valley REC is owned by its members. As member-owners, each member is assigned a portion of the margins (revenues in excess of expenses) that the cooperative has accumulated during the year. The process of determining what portion each member is assigned is called an allocation. Once the board approves the total amount of the margin to be allocated for the year, a member is allocated their portion of margin based on the amount of money they were billed for electric services during the year. Each member then receives an Allocation Statement (This Form) that shows the total billing and the amount allocated.
ATTENTION: It is important to note that when an allocation takes place, it DOES NOT represent money that is currently avaiiable for a member to have. Instead, following the bylaws of San Luis Valley REC, this amount is recorded as patronage equity on the financial statements of the cooperative. Over time, the amount allocated to each member may be paid out (Upon Board Approval) as funds are available. Once the board designates that a particular year is to be paid out, or a portion thereof, the process of paying the allocated capital credits to the members is called a retirement.
Because allocated capital credits are not yet available to the member, capital credits shown on this statement cannot be applied to your energy bill and cannot be used as payment for any other services provided by San Luis Valley REC.
Should you cease to purchase energy from San Luis Valley REC, please keep us informed of your address in future years. This will enable us to forward payment(s) when the capital credits are retired for the year or years of your membership.