As a member of Grand Valley Power, you participate in our cooperative's financial success with every electric bill you pay. Your payments are used to pay for wholesale power and other operating expenses. Revenues over and above these expenses, which are called margins, are allocated back to members each year as capital credits. The allocations are based on the amount paid by each member. These capital credits provide operating capital to the cooperative that is used to build and maintain our electric distribution system. When its financial status allows, Grand Valley Power will refund, or retire, capital credits that have been allocated in previous years. These retirements are made at the discretion of the cooperative's board of directors. Retirements checks are typically mailed in December.

Capital Credits are generally mailed in December for the prior years allocated capital credits. The years refunded are decided on by the board of directors each year and may vary. 

An electric cooperative operates on an at-cost basis annually "allocating" to each member, based upon the member's purchase of electricity. This is simply a notice of what was allocated to your Member Capital Account and varies each year based on the electricity you use. Later, as financial conditions permits, these allocated amounts are retired and paid out as CashBack Credits to members in the form of a check that is payable to the member listed on the account.

Member-owned, not-for-profit electric co-ops set rates to generate enough money to pay operating costs, make payments on any loans, and provide an emergency reserve. At the end of each year, we subtract operating expenses from the operating revenue collected during the year. The balance is called an operating "margin."

Margins are allocated to members as Member Capital and are based on the total revenue that was collected from your energy use. Member purchases may also be called "patronage". GVP strives to return member CashBack Credits to consumers on a 20-year cycle, with the oldest member capital accounts paid out first.

Each year, the GVP Board of Directors makes a decision on whether to retire member capital based on the financial health of the cooperative. During some years, the co-op may experience high growth in the number of new accounts, or severe storms may result in the need to spend additional funds to repair lines. These and other events might increase costs and decrease member equity, causing the board to reduce the member capital retired in a given year. For this reason, GVP's ability to retire capital reflects the cooperative's strength and financial stability. The board alone decides whether to retire or payout, capital accounts and the percentage.

The GVP Board of Directors makes a decision each November whether or not to retire member capital. When the cooperative is strong enough financially and member equity levels are high enough, the board directs staff to retire some portion of past years' member capital accounts. 

Member Capital is a significant source of equity for most electric cooperatives. Equity is used to help meet the operating expenses of the co-op, such as paying for new equipment to serve members and reduces the amount of money needed to borrow from outside lenders to build, maintain, and expand a reliable electric distribution system. 

If you move or no longer have electric service with GVP, it is important that you inform the cooperative of your current address, so that future retirements can be properly mailed to you. If you purchased electricity during the years being retired, then you are entitled to a CashBack Credit check, even if you move out of the GVP service area. If we have your current address, then we will send your check by mail. 

The minimum amount a member will receive is $15.00. Members traditionally receive a check in December. Due to the expense involved in processing printed checks, $15 is the minimum amount that will be issued to members. CashBack credit checks less than $15 are accumulated year-to-year until the sum is equal to or greater than $15.

Please contact our main office at (970) 242-0040, or stop by at 845 22 Road, Grand Junction, Colorado. We can help you further with these situations.