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Capital Credits

What are capital credits? Capital redits reflect the non-profit nature of our Cooperative. Capital Credits are actually the amount of money that is “credited” to a member’s account at the end of each year. This amount is based on revenue remaining after expenses have been paid. Investor-owned utilities return this margin (profit) to the stockholders through dividends. In the case of a member-owned non-profit cooperative. . . like Douglas Electric Cooperative . . . the margin is credited to the member owner on a pro-rata basis as capital credits.

 
Capital credits are allocated annually to each member based upon the amount of revenue received from members divided by the coop’s margins. 
 

The Coop retains these capital credits for two reasons:

1. As working capital to keep the Coop financially sound and to allow for emergencies such as storm damage.

2. To retire debt and build equity in the Coop.

 
As capital credits accumulate, the Coop still retains the amount needed for financial strength, but distributes an amount determined by the Board of Directors and within RUS regulations to their members in a general retirement of capital credits.
 

At times, despite our best efforts, the Coop may be unable to contact former members or their next of kin to distribute retired capital credits. Please follow this link to determine if you or a family member has unclaimed capital credits.

 

Need Further Information On Capital Credits?

Contact Douglas Electric Cooperative at 541-673-6616 or toll-free at 1-800-233-2733