editorial The Cooperative Difference Marcy Svenningsen, Board Chair
“When can I expect to get paid for the Capital Credits I’ve earned?” In 2018, Cass County Electric paid back or retired the capital credits that our members earned in 1993 and 1994 “What are Capital Credits?” totaling $1.59 million. In 2019, we Capital credits are unique to will retire $1.78 million. If you were a cooperatives. As a cooperative, we member then and still a member today, belong to the communities we serve, you saw that payment in the form so any excess revenues are shared of a credit on your bill. For members back with the members. This is one who have moved away, they received way that cooperatives differ from a check in the mail. It’s imperative to investor-owned utilities, who pay out make sure Cass County Electric has dividends to shareholders, who may or your current address even if you move may not be customers of the utility. At because, at some point, we want to pay the end of the year, after we’ve paid you for your capital credits. In the case our bills, we have money left over, or of a death, the estate can apply for the One of the biggest challenges for the margin. It’s not profit because, in a payment of the capital credits. Board of Directors and the staff at Cass cooperative, we allocate the margin County Electric Cooperative is trying back to the members who bought “Why is there a Board of Directors?” to explain the cooperative difference. electricity from us during the year. The At Cass County Electric Cooperative, Here are some of the most common amount of electricity you purchased we are member-driven. Members questions I have gotten from other compared to other members like you lead us, they understand and members. determines your share of the margin listen to our community. Their primary and becomes your “capital credits.” duties are to watch over the financial “What’s this about being a member health of the cooperative for all or an owner? I’m just a customer who “How come I don’t receive Capital members, to hire and to hold the Chief buys electricity from Cass County Credits the year they are allocated?” Executive Officer (CEO) accountable Electric, right?” As a member, you can see the margin for operations of the cooperative, and At Cass County Electric Cooperative, each year at the annual meeting or to establish the electric rates. The we are owned by you, our members. when the amount is published in Board can make adjustments during When you signed up to receive electric Highline Notes. The margin at Cass the year to manage the margin – service from Cass County Electric County Electric has consistently been like we did this past November and Cooperative, you became a member $5 to $6 million for several years. December by lowering the rates of the of an electric cooperative. We are However, that money isn’t sitting in a members by a total of $750,000. This a community-focused organization bank account called “capital credits.” kind of flexibility is one of the unique working to efficiently deliver We reinvest these funds in building advantages about being a cooperative. affordable, reliable and safe energy a reliable power grid to continue to to you, our consumer-members. As a deliver reliable electricity to your If you have questions about your member, home, farm, and business. cooperative – please don’t hesitate to • You earn capital credits. ask and I hope to see you at the annual • You have a right to vote for the meeting! directors who make decisions about what happens at the cooperative. • You have a right to run for the board of directors.
2 Highline Notes March 2019
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