Capital Credits

The Cooperative Difference

Being an REC member means that you are an owner of the company and share in its financial success. Your Cooperative works hard every day to keep your rates as low as possible and to ensure your needs are always met. Because REC is not-for-profit, when there is money left over after paying all expenses involved in providing safe and reliable electric service, your share of that money (margins) is credited back to you in the form of Capital Credits. This is just one of many differences between a Cooperative and an investor-owned utility. Our success is your success.

Uses of Capital Credits

REC must build and improve the growing electrical system and continue to meet its loan obligations. Capital Credits fund long-term capital projects and offset the need for the Cooperative to borrow money. REC's board of directors must approve all Capital Credit retirements including the amount returned to members and the amount retained to operate the Cooperative.

Understanding Capital Credits

Capital Credits are a member's share of the margins (revenue left over after all expenses are paid) and are assigned to an account in each member's name. The amount of Capital Credits assigned to a member's account is based on the amount of electricity purchased during the year. The total amount in the account represents the value of your ownership in the Cooperative.

General Retirement:

  • A percentage of your total Capital Credits account is returned to you
  • Active members receive a credit on the electric bill
  • Inactive members are mailed a check

Estate Retirement:

  • An estate representative must request the member's Capital Credits
  • Representative must submit a Certificate of Qualification or a Designation of Legal Payee
    and a death certificate
  • Forms are available at all four offices

Capital Credits

Timeline for Capital Credit Retirements

Not all Capital Credits can be returned in one year. If you move out of REC's service area, you will still be eligible to receive General Retirements of Capital Credits. Being a member of REC not only benefits you in the form of Capital Credits, but also in the future as improvements are made and as additional Capital Credits are retired.