Energy and Utility Accounting & Business Seminars
Capital Credit Strategies for Electric and Water Co-ops
December 1, 2010
Excalibur Hotel
Las Vegas, NV
$570 1-day course
CPE Credits: 6
Who Should Attend?
This course is designed for cooperative managers and accountants. Outside CPAs and tax advisors who have advanced co-op experience should attend the Annual Advanced Co-op Tax Forum.
What You'll Learn
Fair allocation and redemption to members, as well as the effective management of capital credits, should be key goals for all utility cooperatives. In the face of changes brought about by technology, industry competition and a shifting national economy, cooperatives want capital credit policies that ensure their financial health and are responsive to their members' needs.
For electric and water cooperatives, concerns include the measurement of current patronage, and how to prepare for known rate increases as a new plant is acquired. Where does the cost of “green energy” fit in? Who should benefit from “green tags” awarded? What kind of reserves may be retained? What are the recordkeeping requirements for any reserves retained? Also, how should capital credits received from other cooperatives be allocated and redeemed to a cooperative’s members?
Other topics will include:
- Overview of cooperative exemption and taxation
- Legal issues related to capital credits
- Goals for capital credit strategies
- Corporate structure alternatives for new services
- Member (including multiple classes) vs. nonmember, patrons vs. subsidiary allocation strategies
- Revenues included in computation and alternative allocation methods
- Pros and cons of not allocating non-operating margins
- Treatment of competitive cooperative and subsidiary services
- Payment strategies including FIFO, percentage of all equities, and hybrid methods
- Payment strategies for patronage and non-patronage allocations
- Discounting capital credits and determining the proper discount rate of the cooperative
- Issues related to a cooperative’s permanent capital
- Using a basis other than current patronage for allocating non-operating margins
- Allocation on the basis of gross receipts vs. net margin
- Strategies for implementing change for member, board, and management approvals
- Required member and other patron notifications
Areas of special emphasis:
Instructors
Julie Desimone
Moss Adams LLP
Tom Strait
Washington Utility Group
Energy And Utility Seminar Contacts
Registration Information
Diane Howe
509-777-0123
Course Content Information
Cheri Burnham
509-777-0122
