Co-op Ownership: You Own Us

Electric cooperatives are not like other utilities. You, our member, own a portion of the business. Many people associate ownership with money, which is no different from your co-op ownership. As a member, a portion of what you pay on your electric bill is returned to you. This return is called a capital credit.

In addition to the financial part of ownership, there is the aspect of power and control. Your membership in the cooperative provides you with both. You are in control of who runs your co-op. Every year you have the chance to vote for who will represent your cooperative on the board of directors. Your cooperative is locally controlled by a board of co-op members who live and work in your community. And every member, including you, has the opportunity to run for the board.

As a member and owner of your cooperative, you not only have ownership of your local electric cooperative, but you also have ownership of your cooperative’s regional Generation and Transmission cooperative and your cooperative’s power supplier, Associated Electric Cooperative. This means you have ownership in generating assets such as coal and gas plants and the transmission lines that bring power to your local co-op and, ultimately, to you.

Capital Credits: We Pay You Back

What Are Capital Credits?

If you were able to purchase everything you want or need at cost, would you consider that a good deal? Of course! Unfortunately, most goods and services are marked up so that a company can make a profit. However, electric cooperatives operate at cost, collecting enough revenue to run and expand the business, but with no need to raise rates to generate profits for distant shareholders.

At the end of each year, if your cooperative has excess revenue, that money is allocated (assigned) to you and all other members in the form of capital credits. The amount of capital credits allocated to you is based on the electricity you paid for that year. And your cooperative pays those allocated capital credits back to you as an annual check or credit on your utility bill when it’s financially possible. For those who are no longer cooperative members, you may receive a check in the mail.

In the meantime, your cooperative holds onto allocated capital credits to cover emergencies, such as a natural disaster or other unexpected events, and to safely expand our electric system. All of which may require large-scale construction of poles and wires. This decreases the need to raise rates or borrow money to pay for the infrastructure. And when financially possible, your cooperative will retire (pay) a set amount of capital credits back to you.

Information About Unclaimed Capital Credits

If you’re unsure if you’ve received a capital credit, contact your local electric cooperative. They will work diligently to help you determine if you have unclaimed credit and what you need to do to receive the benefits you’re entitled to.

Advantages of Cooperative Membership

Learn more about cooperatives and the value of electric co-op membership.

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