It pays to be a co-op member
As a member, you share in the financial success of your cooperative, and capital credits are your slice of the pie. You will see your portion of the pay out reflected on your bill due in December.
When there is a margin over the cost to operate, a portion is allocated to you, based primarily on your energy use and cost of basic service charges. The money is placed in your capital credits account. We retain this member capital for up to 25 years, which is very common in the industry, and use it for infrastructure improvements, system maintenance, and emergencies. Capital credits are retired (paid back) to you over time if the financial condition of the co-op allows. This year’s retirement includes all accumulated capital credits from 1994 and a percentage of all other years allocated to members. If you receive a pay out it will be in the form of a credit on your bill. How do capital credits work?
It was our intent to retire $4 million in capital credits in 2019. Great River Energy (GRE), our power supplier, has not refunded capital credits since 1998, but this year GRE retired $2 million to ECE. We’re sharing this pay out with our members. The additional $2 million from GRE will provide funds to members who were on our system over 25 years ago.