CORINTH, TEXAS – June 15, 2020 – The CoServ Electric Board of Directors has approved a record Capital Credit retirement of $27 million for CoServ Members. Of the total amount, about $12 million comes from CoServ and $15 million comes from Brazos Electric Power Cooperative, CoServ’s power supplier, with $7 million of the retirement being accelerated into 2020 to provide additional relief for CoServ Members affected financially by COVID-19.
Since 2003, more than $172 million has been returned to Members. CoServ President and CEO Donnie Clary said this is a timely reminder of the value that the cooperative business model brings to the utility industry.
“Electric cooperatives return margins to their Members, not shareholders” he said. “The Board expedited this Capital Credit retirement because of the financial hardship so many are facing due to the COVID-19 pandemic.”
Under the cooperative business model, margins from each calendar year, called Capital Credits, are allocated to Members who purchased energy from CoServ in that year. After the margins are allocated, they may be retired (paid), at the discretion of the CoServ Board.
Beginning in mid-June, current Members will see their individual retirement amounts applied to their monthly account statements. Because of multiple billing cycles, some Members may not see the retirement reflected until sometime in July.
Former CoServ Members who still have unretired Capital Credits will receive a check, as long as the retirement amount is $5 or greater – unless this is their final check and closes out their account with CoServ, in which case they will receive a check regardless of the amount.
For more details about Capital Credits, please visit CoServ.com/CapitalCredits.
CoServ is an electric and natural gas distribution company serving North Texas. Incorporated as Denton County Electric Cooperative in 1937, CoServ Electric is one of the largest electric cooperatives in the country, serving more than 250,000 electric meters across Denton, Collin and four other North Texas counties. CoServ Gas was established in 1998 and serves more than 130,000 gas meters in Denton, Collin and Kaufman counties. CoServ’s mission is to deliver excellent service to our Members and Customers by providing safe and reliable energy solutions.