Central Electric Cooperative's board of directors recently approved a $1.25 million capital credit general retirement, refunding past margins back to cooperative members. The total retirement includes $600,000 of Central Electric capital credits and $652,027 of East River Electric and Basin Electric Power Cooperative capital credits.

Any profits earned by a not-for-profit cooperative are allocated to the cooperative’s member-owners. These excess profits, also referred to as margins, are allocated to members as capital credits in proportion to the amount of electricity billed during the year. Because capital credits are based on electricity purchases, each member's refund is different.

Capital credits are fundamental to the cooperative business model and a financial benefit to the membership. Capital credits/margins are retained by the cooperative to maintain cash flow and ensure good financial standing.

Members with active Central Electric accounts receive their refund as a credit on November bills received in December, saving the cost of printing and mailing paper checks. Inactive members are mailed a check to the current address on file. Former co-op members should contact Central Electric to ensure capital credit payments are sent to the correct address.

Please keep a copy of capital credit retirements for your records. If you have questions, contact our office or visit www.centralec.coop/capital-credits to view a list of frequently asked questions. Thank you for being a valued member-owner!