The goal of most utilities is to provide a good return on stockholders' money.  But not electric cooperatives - we exist to provide electric service to our members, not to make a profit. 

Every year, when the books are closed, margins (profits) are divided up amongst the members based on the amount of electricity purchased that year.  These are called capital credits.

The cooperative holds the capital credits to cover certain operating expenses.  By holding the funds, we are able to avoid operating loans and the associated interest.  This practice helps keep your rates down.

Capital credits are retired (returned to members) on a blended LIFO/FIFO method (Last In First Out, First In First Out).  This way, both recent and long-term members realize this benefit of cooperative membership.  Each year, current members receive the capital credit retirement as a credit on their electric bill.  Former members receive the retirement as a check mailed to the last address on file with the cooperative. 

 When leaving the cooperative, members have the option to elect for a discounted retirement of the capital credit allocation.  The same applies for estates of deceased members.