Capital Credits: Reaping the Benefits of Being a Co-op Member
When a person establishes service with us, they become a member and are eligible for capital credits.
Capital credits represent a member’s share of the co-op’s margins during the time they have membership.
Capital credits are earned by every member based on the amount of their electric use.
At the end of the fiscal year, any funds (margins) remaining after expenses have been paid are allocated to the member’s account.
The allocated funds are used as operating capital for system improvements and maintenance.
Every year in March, the board evaluates the financial condition of the co-op to determine if we can retire capital credits. When the board decides to retire capital credits, we calculate the amount owed to each member.
Current members who received electricity during the retirement period will receive a percentage of capital credits retirements through either a bill credit or check. If the amount is above $10.
Former members who received electricity during the time period being retired will be mailed a check if it is $10 or more.
As a member owned cooperative, we are a non-profit company and any excess revenue above costs is allocated back to the members as capital credits.
These capital credits are allocated based on patronage paid for electricity each year. The cooperative sends a capital credit update every year, with the most current year's information and all previous years' amounts. This usually gets sent by the May bill.
Capital is retained by the cooperative for a certain amount of time in order to finance new plant and to provide working funds. This helps forgo rate increases. When possible, the board of trustees determines some of the capital credits can be paid in cash. Every year since 1981 the cooperative has paid some capital credits on a first in, first out basis.
Capital Credit Retirement will be applied to member-owners March bill as a credit.