Capital Credits Electric Cooperative

Capital credits represent each member s ownership of the cooperative.

Capital credits electric cooperative.

Throughout the year we track how much electricity you buy and how much money you pay for it. The amount earmarked in your name depends on your energy purchases. Each year the otec board of directors determines what portion of capital credits can be returned to our membership. So rather than earning profits oregon trail electric cooperative invests a portion of that money toward strengthening the operations that power your life and assigns the rest to you.

It is allocated to each member based on the amount of electricity that was used for the year. These funds are called capital credits. When do you return capital credits. Capital credits are your return on investment in cass county electric cooperative.

They are used by capital electric for operating funds and paid back to our. These margins revenue in excess of expenses are allocated using a proportional ratio using the dollar amount of electric service that each member purchases in a year compared to the total electric service purchased by all members and are called capital credits. They are the margins credited or allocated to the members of the cooperative based on their purchases from the cooperative the previous year. These margins are used by the cooperative as capital to operate the business for a period of time.

What are capital credits. Retirement of capital credits is a return of member furnished capital. At the end of the year we complete our financial matters and determine whether there are excess revenues called margins. Capital credits represent your share of the cooperative s operating income operating revenue remaining after operating expenses.

Every member who bought electricity from berkeley electric cooperative during the years of service that are being retired. The more electricity you buy the more capital credits you earn. They are margins credited or allocated to members of the cooperative based on their electric service purchase from the cooperative the previous year. These margins are used by the cooperative as capital to operate the business for a period of time.

Capital credits may not be returned every year. Capital credits which are based on the dollar amount of electricity each member purchases vary from member to member and year to year. What are capital credits. As a nonprofit electric cooperative capital electric allocates our annual operating margins or profits to members receiving service during the year.

To calculate this we divide your annual energy purchase by the cooperative s operating income for the year. Capital credits accumulate in an account in your name. Capital credits are created when the cooperative has earnings income minus expenses. The amount of each allocation and retirement is based on how much individual members paid the co op for electric service during that period.

Each year berkeley electric s board of trustees evaluates how much to pay taking into consideration such factors as the impact on electric rates and financial strength of the co op. At the end of each year these earnings are spread proportionately to all active cooperative members according to the amount of money each member spent at oakdale electric cooperative that year. Capital credits represent each member s ownership of the cooperative. People and organizations who were members of mckenzie electric cooperative during the selected retirement years receive their capital credits earned for those years.

Your capital credits are paid to you as a percentage each year usually in october. The size of the percentage is determined by oakdale electric cooperative s. How is my refund amount determined.