What are Capital Credits?
Capital credits are the “margin of profit” shown by the Cooperative at the end of the year. Any excess revenues, called margins, related to the sale of electric service that remain after all expenses have been paid are returned to the Cooperative’s members. This is done based on a percentage (%) applied to the member’s usage during those years and is the reason the amount for each member differs. Returning capital credits to our members is a sign of a fiscally healthy Cooperative.
How Do Capital Credits Work?
- Your Co-op tracks how much electricity you buy and how much money you pay for it throughout the year.
- At the end of the year, your co-op completes financial matters and determines whether there are excess revenues, called margins.
- Your co-op allocates the margins to members as capital credits based upon their use of electricity during the year.
- When the co-op’s financial condition permits, your board of directors decides to retire, or pay, the capital credits.
- Your co-op notifies you of how and when you’ll receive your capital credit retirements.
Capital Credit Questions?
If you have other capital credit questions, please call us at 575-483-2421 or 1-800-288-1353.