Capital credit refunds are one of the differences between a not-for-profit cooperative and an investor-owned utility. If we collect more than we need, we return it to our members!
Rates are designed to cover the cost to purchase and deliver power, maintain transmission and distribution systems, operating expenses and a level of margin that will enable the corporation to finance operations and construction of new electric facilities.
Capital Credits are created when margins (revenues minus expenses) are left over at the end of each year. If there are no extra margins, no capital credits are allocated. Excess margins are evenly distributed to members' capital credits accounts (separate from billing accounts) according to the dollar amount that a member spent with CEC during the year. Your capital credits represent your share of ownership in the corporation.
At the discretion of the Board of Directors, capital credits are refunded to members whenever they determine that returning capital credits will not jeopardize Citizens Electric's financial stability.
Over the past 13 years, CEC has returned more than $19.1 million in capital credits to our members.