Your Cooperative is excited to announce that our board of directors has approved rebates for member-owners who were in qualifying rate classes during 2016. The rebates, approved at the board's January meeting, totaling $658,000 will appear on the March bills.
Various rebates/credits are as follows:
- $200,000 load management rebate
- $100,000 revenue deferral credit
- $158,000 wholesale margin rebate
- $200,000 electric margin rebate
Load Management Rebate
As a means of sharing the savings with member-owners who participated in the Cooperative's 2016 load management program, a credit of $45 appears on your billing statement. The load management program goal is to pass on a portion of the wholesale power cost savings to our member-owners who participate in our program; therefore the rebate is only for those member-owners who have electric water heaters and/or air conditioning units that are automatically managed. To learn more about our load management program, please call the Cooperative office at 800-225-4532 during business hours of 8 a.m. and 4 p.m.
Revenue Deferral Credit
Iowa Lakes Electric Cooperative has a revenue deferral program in which revenues collected from member-owners in excess of operating expenses may be deferred to future periods when they will be recognized as revenues. By deferring electric revenues to future periods, this has helped your Cooperative mitigate rate increases from wholesale power cost increases over the years. Of the remaining $600,000 deferred electric revenue, your board of directors authorized the use of $100,000 as a deferred electric revenue credit. This credit will be based upon revenue and/or rate classification.
Wholesale Margin Rebate
Corn Belt Power received an unbudgeted bill credit of $158,000 from Basin Electric. Corn Belt Power, in turn, passed this credit through to Iowa Lakes Electric Cooperative and your board of directors, in turn, voted to return it to the members in the form of a bill credit. The wholesale margin rebate will appear on the March bill for member-owners in qualifying rate classes who used the Cooperative's electric service in 2016.
Electric Margin Rebate
Due to increases summer and fall sales, your Cooperative sold more kilowatt-hours and had a solid financial year. Your board of directors voted at its February 2017 board meeting to return $200,000 in electric margins as a rebate to the member-owners. Member-owners from qualifying revenue classes who utilized the Cooperative's electric service in 2016 should see a bill credit on the March 2017 billing statement.
While wind margins exceeded budgeted projections, your board of directors elected to defer $650,000 in wind margins to future periods to help mitigate the impact of future replacement of aging or defective wind turbine equipment such as gearboxes and blades. In addition, the Iowa Wind Energy Production Tax Credit (476B) of 1 cent/kilowatt-hour of wind generation is set to expire in the next few years. This tax credit has been an additional source of revenue for the wind project.
Since the margin rebate program was initiated in 1994, your Cooperative's board of directors has returned approximately $7.5 million to member-owners. This is just another benefit of being a member of your electric Cooperative.