Members receive capital credits
It’s time once again for you to get the credit—capital credits, that is for helping build, sustain and grow your local electric cooperative. Starting in December, REC will retire – or pay by cash or credit – more than $814,000 to members like you across portions of the six counties served by the Co-op.
When you signed up to receive electric service from REC you became a member of an electric cooperative. While investor-owned utilities return a portion of any profits back to their shareholders, electric co-ops operate on an at-cost basis. So instead of returning leftover funds, known as margins, to folks who might not live in the same region or even the same, REC allocates and periodically retires capital credits (also called patronage dividends, patronage refunds, patronage capital, or equity capital) based on how much electricity you purchased during a year.
This year, members from 1988 -1989 will receive capital credit retirements through bill credits, reflecting their contribution of capital to, and ownership of, the Cooperative during those years. While this may seem like a long time ago, those funds helped us keep the rates low; reduced the amount of money we needed to borrow from outside lenders to build, maintain and expand a reliable electric distribution system and covered emergency expenses.
Each year, the Board of Trustees makes a decision on whether to retire capital credits based on the financial health of the cooperative. It is important for inactive members or members who have moved to keep their information up-to-date with REC so future retirements can be properly mailed.
If you have any questions about capital credits please contact our office at 405-756-3104.