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Capital Credits
As a member, you are part owner in the equity of your cooperative. Revenues collected in excess of total expenses, that are not needed to maintain good business practices, are accumulated and returned to the members over the course of time. We call these refunds capital credits.
While members of the Cooperative are actively receiving service, they earn capital credits based on their monthly electric usage. Each year, CEC’s Board of Directors reviews the financial condition of the cooperative and makes a decision on an amount to be returned, if any, to the membership. To make the refund process as secure and convenient for members as possible, capital credit refunds are automatically applied to active members’ accounts in form of a credit. Inactive members who received electric service sometime in the past and are eligible for a refund are mailed a check.
Will I receive a capital credit return every year?
Not necessarily. The Board of Directors must authorize a retirement before you receive a refund.
What happens to capital credits once a member is deceased?
The capital credits of a deceased member may be paid without waiting for a general retirement. A representative of the estate must complete a request form and provide a copy of the death certificate. The retirement is then considered by the Board of Directors. If approved, a check will be issued and the account will be closed. If it is a joint membership, the estate will only be retired after both the member and spouse are deceased.
Step-By-Step
CEC tracks how much electricity you buy and how much money you pay for it throughout the year.
At the end of the year, CEC completes financial matters and determines whether there are excess revenues.
CEC allocates the excess revenues, called margins, to members based on their use of electricity during the year.
When CEC's financial condition permits, your board of directors decides to retire, or pay, the capital credits.
CEC notifies you of how and when you'll receive your capital credit retirements.
