What are Capital Credits? Capital credits are an extension of the cooperative philosophy and are in concert with the spirit in which your cooperative was formed. Article I and Article IX of the Cooperative By-laws discuss capital credits.
Your cooperative’s electric rates are designed to bring in enough money to pay operating costs, meet loan payments, and provide a reserve for emergencies. At the end of each calendar year, we subtract our operating expenses from the collected revenue for the year; the balance is our “margin.” Every year that the cooperative produces a margin, member’s shares of that margin are credited or allocated to individual capital credit accounts.
In the past margins have been typically returned on a twenty year rotation. Each year the board of directors determines if the financial condition of the cooperative will not be impaired by the return of this investment.
Each capital credit allocation is based on the amount the individual paid for electric service during that specific year. They do not include service charges, deposits, membership fees, or any other payments made to the Cooperative during that year.
If you move or no longer have service with NPEC, your address needs to be kept current with the Cooperative in order for you to receive your Capital Credit allocation or refund, if applicable.