$4.5 million in Capital Credits Refunded in April
Umatilla Electric Cooperative members who received power in 2017 received a Capital Credits refund in April.
UEC’s Board of Directors approved a total of $4.5 million to be returned to members, which represents a portion of the cooperative’s 2017 margins. Each member receives a portion of the amount they spent on energy received from UEC during 2017. If the amount is $10 or greater, a check is mailed. Amounts under $10 get held until future retirements bring the aggregate up to $10.
The Capital Credits refund is paid to you as a member and owner of Umatilla Electric Cooperative. UEC is operated on a not-for-profit basis. When you pay your electric bill, you also are accumulating equity in your cooperative.
The equity you earn comes from UEC’s remaining funds once all the bills have been paid. This equity, called margins, is annually earmarked for members based on the amount they contributed to previous year margins.
Whether this refund is taxable depends on whether you claimed your electric bills as a business expense. Most refunds for residential bills are not taxable; check with a tax accountant if you are in doubt.
If you have questions regarding your refund, please call Umatilla Electric at 541-567-6414 in Hermiston or 541-481-2220 in Boardman.