Your September bill this month shows a credit representing your share of $4.6 million the co-op is returning to active and former CCEC members.
Capital credits are unique to the cooperative business model. Unlike other types of companies, CCEC and other cooperatives do not have shareholders who expect to make money from the company’s profits. We are not-for-profit businesses that exist solely to provide electric service to our members.
When you pay your bill each month, you are contributing to the equity, or your share of ownership, of the cooperative.
The funds allocated to each member’s account are used to fund capital needs for items such as power line construction, transformers, trucks, inventory and other equipment. Capital credits also help keep rates at an affordable level by reducing the amount of funds the co-op borrows to maintain and grow its electric distribution system.
When the co-op’s financial status allows, the board of directors will vote to return a portion of capital credits to the membership through a capital credit retirement.
“It’s an exciting time for us at the co-op,” said Tara Alderman, director of accounting at CCEC. “Being able to return capital credits is a direct reflection of the financial strength and stability of your cooperative. We can all take pride in this accomplishment.”
This year’s retirement is for the years 1993 through 2018. Current members will receive a credit on their September bill. Former members will be mailed a check at the end of September.