How Do Capital Credits Work?

Because electric co-ops operate at cost, any excess revenues, called margins, are returned to members in the form of capital credits.

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/trustees decides to retire, or pay, the capital credits.
Your co-op notifies you of how and when you’ll receive your capital credits retirements.