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 recover the costs of purchasing and delivering power, maintaining the Corporation's transmission and distribution systems, operating expenses, and maintaining a level of margin that will enable the Corporation to finance its operations and construct new electric facilities.
Capital credits are created when margins (revenues minus expenses) are leftover 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 the Corporation 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 the Corporation's financial stability.
As of December 2020, the Corporation has returned more than $42.5 million in capital credits to our members.
At its April 23, 2015, annual meeting, the Corporation's shareholders approved a change to its by-laws that enables the Board of Directors, at its discretion, to retire capital credits to the estate of a deceased member who is a natural person prior to the time such capital would otherwise be retired if the legal representative of the deceased member's estate requests so in writing by filling out an affidavit. Any early retirement of capital credits under this provision of the by-laws will be on a discounted present value basis using as a ratio multiplier such percentage as shall be set annually by the Board of Directors. For more information, please call us at 877.876.3511.