What are Capital Credits?

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Capital credits represent each member's ownership of the cooperative. Our excess revenues are called margins. Margins are what is left over after all bills are paid at the end of a particular year. In other words, when revenues exceed the cost of doing business. 

What Capital Credits are NOT

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Capital credits should not be confused with profits, which are a return on capital. Retirement of capital credits is a return of member-furnished capital. Cooperatives exist not to make a profit, but to provide low-cost electricity.

What's the Difference Between an Allocation & a Retirement?

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Allocations are made annually for each member, based upon the amount you paid to the cooperative the previous year. An allocation is the amount set aside into a separate account to be used as operating capital for reliability improvements and maintenance over a period of years. 

A retirement is the amount you receive back as a capital credit refund. It is a percentage of your total capital credit balance. The amount to retire is decided by the Board of Directors annually, based on the financial condition of the cooperative.

Can I Use My Capital Credit Allocation to Pay My Bill?

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No. Allocations are used as the operating capital of the cooperative. They are not available until a retirements is approved by the Board of Directors. They base their decision on the financial condition of the Cooperative. 

What Do We Do With Capital Credits?

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Capital credit funds are used for reliability improvements and maintenance, both of which are long-term investments; they help the cooperative remain financially sound, thereby ensuring a stable, reliable, electric service for the benefit of all the members we serve. 

What Happens to My Capital Credit Allocations Until I Receive Them?

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Capital credit allocations are pooled together and used as operating capital so that we can serve our members with reliable power. These funds pay for things such as replacing power lines or building substations. 

When are Capital Credits Refunded (or Retired)?

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When the Board of Directors has determined the financial condition allows a retirement of capital credits, they can approve a portion to be retired or refunded to the membership. Usually annually, but not always. 

How WIll I Receive My Capital Credit Refund?


Capital credits will be applied to your bill if you are still currently a member. For those who are no longer members, checks will be issued. 

Are You Paying Me Interest on My Allotment of Capital Credits


No. Instead, that money is to benefit members by helping keep rates as low as possible. This has allowed our rates to be competitive with surrounding utilities.