Co-op Returning $3.2 million to members, former members
The CCEC Board of Directors has approved returning $3.2 million in margins to current and former members. The retired margins, what we call capital credits, are for the years 1992 through 2017.
Unlike an investor-owned company where stockholders receive dividends, CCEC and other electric co-ops operate at cost. CCEC maintains a portion of capital credits beyond day-to-day operations to offset the cost of debt to fund plant expansion.
When you pay your bill each month, you are contributing to the equity, or your share of ownership, of the cooperative. When capital credits are retired, that money is returned to co-op members based on their years of membership and annual energy use.
“The retirement of capital credits is one of the most important things we do as a co-op. It’s unique to the cooperative business model,” said CCEC Board President Deloria Irby. “Directors and staff work hard to carefully balance retiring capital credits to members with meeting capital needs and retaining equity at the co-op."
“Current members will receive a credit on their September bill. Former members will be mailed a check at the end of September