Alaska Village Electric Cooperative

What are capital credits?

Each year that AVEC earns a margin (revenue collected that is not needed to cover the cost of providing service), it is assigned to members in proportion to the amount they were billed for electricity during that year. These funds, called capital credits, are retained by the co-op as a source of working capital for approximately 17 years and are refunded at the discretion of the Board.

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When are capital credits refunded?

The AVEC Board of Directors annually reviews the financial status of the cooperative to determine whether a refund is feasible and if so, how much. They strive to operate in a prudent business manner so that the member-owners will continue to have the very best electrical service possible at the lowest cost consistent with sound economy and good management.

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