FOR IMMEDIATE RELEASE: Wednesday, September 4, 2019
Poudre Valley REA Pays $3.2 Million to Members
(Fort Collins, CO) – Over 40,000 homes and businesses in Northern Colorado will see money back in their pockets this month from Poudre Valley Rural Electric Association (PVREA).
The PVREA Board of Directors approved paying $3.2 million to its members, bringing a total of over $30 million paid back to members in the past ten years alone. The local electric co-op is paying cash out to almost 30,000 members of the co-op, along with over 12,900 credits to inactive members who previously used PVREA for their electric provider.
When consumers sign up to receive electric service from PVREA, they become a member of the electric utility. While investor-owned utilities return profits back to their shareholders, PVREA operates on an at-cost basis. Instead of returning margins to stakeholders who might not live in the same region or even in Colorado, PVREA allocates and periodically retires member credits to its members in Larimer, Weld and Boulder counties.
This year, members from 1993, 2004, and 2018 will receive cash back through a bill credit or a check in the mail if over $100, reflecting their contribution of capital to, and ownership of, the cooperative during those years. These funds are used as working capital, and help PVREA keep the lid on rates, reduce the amount of money needed to borrow from outside lenders to build, maintain, and expand a reliable electric distribution system, and cover emergency expenses.
The Cooperative met its financial performance goals as established by the Board of Directors, allowing the payment of $3.2 million to members this year. Each members’ credit amount varies; the amount is based on the amount of energy each membership uses, and the length of their membership with the Cooperative. This means local businesses and school districts will receive reasonably large credits, lowering their overall cost of electricity.
“Many of the credits paid back are substantial dollar amounts and pumps money back into our local economy,” PVREA President and CEO Jeff Wadsworth explains. “Some of our largest energy users are local businesses, school districts, municipalities and large manufacturing companies who support our local community; the financial impact of those organizations’ credits is quite significant to them and our local community.”
More information and a video on credits are available on the Poudre Valley REA website at www.pvrea.coop/member-credits or by calling 1-800-432-1012.