Capital Credits

Capital Credits

What are capital credits? 
A&N Electric Cooperative is a non-profit business. Each year, revenues that exceed expenses (margins) are allocated to members in the form of capital credits. 

Will I receive notification of capital credits earned each year? 
Yes. If you are an active member, information concerning capital credits allocation is printed annually on your billing statement after the financials for the previous year are completed. If you are an inactive member, you will be mailed a separate notice. 

How is the capital credits allocation calculated? 
The amount of capital credits you earn in a given year is based upon the amount of electricity purchased. Each member receives a credit based on a percentage for each dollar of electricity purchased.

Can I have all my capital credits now? 
Capital credits cannot be returned to you immediately as A&N Electric Cooperative uses these funds to help reduce the amount we would have to borrow to invest in our electric system. These credits are not like a savings account, but rather a form of equity in your cooperative. 

How will my capital credits be returned to me? 
Each year, the A&N Electric Cooperative Board of Directors reviews the financial condition of the Cooperative to determine if a retirement of capital credits can be made. Capital credits are retired using a percentage method that distributes a portion of the approved retirement amount to all members. 

Beginning in 2011, refunds will be shown as a credit on active members' bills. Refund checks will be mailed to inactive accounts. Refunding capital credits in this manner not only saves many dollars in postage and printing expenses, but also helps the environment by using less paper.