What are Capital Credits?

Our members share in the benefits of being part of a cooperative. Unlike investor-owned utilities that return profits to shareholders, electric cooperatives allocate excess revenue, called margins, to members as capital credits based on the amount they paid for electric service during the year.

Example:

• Annual electric bills: $2,400
• Margin percentage: 1%
• Capital credits allocated: $24

Capital credits are allocated to members' accounts annually and may be retired (paid) to members as approved by the Board of Directors.

Capital Credits Retirement

• 1984 allocation: 100% retired
• 2004 allocation: 12.3% retired

In 2025, The Energy Cooperative returned $908,528 in capital credits to members.