Page 3
The ElectraLite 2012 Capital Credit Allocation Formula
CVEC capital credit assignments are based on the co-op’s revenues in excess of its expenses. These numbers are recorded as capital furnished by the members and are referred to as capital credits. In 2012, this amounted to $1,838,860.99. This amount is not represented as cash, but as the co-op’s equity interest in its distribution system. Canadian Valley also receives capital credits from its generation and transmission cooperative, Western Farmers Electric Cooperative, from whom we purchase electricity. For 2012, WFEC paid CVEC capital cred- its in the amount of $1,351,247.78.
This is your notice regarding the assignment of your 2012 capital credits. This method avoids the expense of printing and mailing individual notices. You can request specific information about your account by contacting the co-op. The 2012 capital credits are assigned to consumers as a book figure on the co-op’s records. They are payable to the member- ship only upon dissolution of the co-op after all indebtedness is paid. Any remaining balance will be retired on a prorated basis at the time, provided the board of trustees makes a partial retirement prior to such event after determining the financial condition of the co-op won’t be impaired. Capital credits are not cash and cannot be applied as payments on electric bills. Here is how to determine your capital credit: 1. Add up the amount of your 2012 electric bills. 2. Locate your rate code on a recent electric bill. 3. Match the rate code in one of the classifications below. 4. Take the classification’s decimal factor times the total of your 2012 bills. 5. This amount is your 2012 capital credits. 6. Do this for each CVEC account you have. Example: 2012 total billing - $1,000. Rate code - 2
Find Your Hidden Account Number and Win $25
If you find your account number hidden in this issue of The Electralite, you could win $25.
Classification Residential
Small Commercial & Irrigation Large Power Large Power - 2
Rate Code 1-4
10-18 24, 26 30-39
CVEC Factor 0.042414502 0.052216333 0.023313627 0.008766524
By George Continued from page 2.
these expenses. There is reason to believe that together we could do better at managing our member’s dollars. Even though CREC and CVEC are both in the top ten of the 26 electric cooperatives in Oklahoma, combined we still would not be the largest co-op in Oklahoma. Nationwide, there are electric co-ops that serve several times the number of mem- bers that the consolidated cooperative would serve. The point is that we are trying to “build a better servant cooperative” by combining our efforts and resources for the benefit of our member-owners. As you can see we are not creating a “mon- ster” electric cooperative. Finally, any consolidation of CREC and CVEC will not happen without the approval of the co-ops’ member-owners. If the boards of both CREC and CVEC decide after the stud- ies and reviews are completed that combining the operation of the two cooperatives is in the best interest of the member- ships, then member meetings will be held by both co-ops to vote on whether or not the members approve proceeding. At both meetings, quorums must be present, and a vote held with 2/3 of those voting approving a consolidation. We are being careful and deliberate with this process. However, we do not intend to unnecessarily drag out the decision. If the studies and
WFEC Factor 0.021237497 0.019086734 0.025824794 0.029318449
In order to win, the account number
must be your own. You need to report finding the number to us by the 15th of the month. And you need to report finding it by phone, mail or in person. Good luck!
considerations indicate a benefit in proceeding for the members, the best estimate would be that these meetings of the members to consider the issue of a possible consolidation of CREC and CVEC would be held during the year 2014. A saying I have often heard is, “If you always do what you have always done, you will always get what you always got.” In many ways that proves true. I don’t believe that applies here. Whether or not a consolidation occurs, electric utilities or all ilks are being required to rapidly change to meet the ever changing and increasing requirements being placed on electric utilities by federal regulations and the expectations of their customers. Continuing to “do what you have always done” will put us out of business quickly in today’s environment. These required changes cost money.
I fear electricity will become
a luxury as prices go up to meet the changing requirements. Let’s be as efficient as we possibly can. We will provide more information for you to consider as the studies are finished and well before we ask you to meet and vote and decide the future of your electric cooperative. Just like some very progressive people in our area got together and formed these electric cooperatives more than 75 years ago, we truly are “Building our Energy Future Together.”
December 2013
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146