No check from MEA, this year

Computer upgrade will postpone issuance of capital credits money

November 24, 2005

DAWN DE BUSK\Frontiersman reporter

PALMER - Butte resident Christopher Fowler had been looking forward to his capital credits check from Matanuska Electric Association. He counts on the money to help pay for Christmas gifts for his grandchildren, he said.

However, when he started calling Nov. 4 to see when the check would be mailed, he was told that the capital credits wouldn't be issued this year, Fowler said.

&#8220I would like to know why,” Fowler said. &#8220They owe me about $300. It sure would come in handy.”

Because it is a nonprofit cooperative, MEA's Web site states, the co-op does not issue stock or dividends. Any revenues over and above expenses belong to the co-op members who provided those margins by purchasing electricity, MEA General Manager Wayne Carmony said in the Web site article, adding that MEA has been returning the margins in the form of capital credit payments to its members annually since 1983.

MEA is in the process of completely upgrading and replacing its computer system, and that work won't be done until the first part of 2006, according to MEA spokesperson Michael Pauley.

The computer allows the Valley co-op to issue the checks, he said. &#8220So, the capital credits retirement won't be done until first quarter. The delay also gives us a chance to close our books for the year and to make sure our fiscal targets are accurate,” he said.

&#8220It was questionable whether we were reaching our financial targets at the beginning of 2005,” Pauley said, adding that the fiscal horizon looks better for MEA in the latter part of this year, but the co-op wants time to make certain that's the case.

Pauley says MEA will cut capital credits checks for 2005 in the first quarter of 2006.

&#8220The members will have the money in the new year to help pay for the bills after the holiday season,” he said.

Contact Dawn De Busk at 352-2252 or dawn.debusk@

frontiersman.com.