Granby, Colo. – This month, Mountain Parks Electric will be returning $2.2 million to its consumers. As a not-for-profit utility (a co-op), on a regular basis, MPE returns its profits based on margins earned from the sale of electricity. In the co-op world, this is known as capital credit retirement. MPE’s margins are not refunded in the year they are earned due to the co-op’s significant start-up costs. To construct its grid and electrify its rural service area 76 years ago, MPE borrowed a significant amount of money. If MPE were to fully repay its debt from retail energy rates, the price of electricity would be unaffordable for many, if not most.
“By returning these capital credits now, we are demonstrating in a very tangible way that Mountain Parks Electric is owned by those it serves,” said Mark Johnston, MPE General Manager. “This retirement will infuse cash into our communities just in time for the Holidays.”
The refund will be issued the first week of December in the form of mailed checks if the amount is $50 or greater or as a bill credit for anything less than $50.
In other good news, recently, at its November board meeting, MPE’s Board of Directors approved the 2023 operating budget. Based on that budget, for the seventh consecutive year, MPE will hold electric rates stable.
“In these inflationary times, despite the rising costs of everything, Mountain Parks Electric’s efforts to reduce operating costs has allowed us to avoid a rate increase in 2023,” said MPE General Manager Mark Johnston. According to Johnston, 2022 year-to-date electric sales through September are up 6 percent over 2021. However, as costs continue to rise, including the cost of wholesale power, it will create increasing rate pressure on MPE in the future.
For more information about your MPE capital credits, email: email@example.com.