Being a member of an electric cooperative is different in many ways compared to being a customer of a traditional, for-profit utility. At Bowie-Cass our members are also our owners. That means when the Cooperative is in a strong financial position, there are opportunities for our members to directly benefit. Capital Credits are one of those benefits.
What are Capital Credits?
“Capital Credits are another benefit of being a member of an electric cooperative,” said Mark Boyd, General Manager. “Since the Cooperative is not-for-profit, any revenue left after expenses is allocated back to our members based on the amount of electricity they purchased. This is called a Capital Credit.”
Capital Credits are an important part of how the cooperative business model works. Rather than being paid to outside investors or shareholders, these funds are reinvested into the Cooperative’s infrastructure, including building, upgrading, and operating our distribution system. When the Cooperative’s financial condition allows, Capital Credits are returned to the members who helped earn them. This cornerstone of the cooperative business model allows Bowie-Cass to provide members with safe, reliable, and cost-effective electric service.
This year, our Board of Directors approved the retirement of $1.8 million in Capital Credits from 1995.
If you received electric service from Bowie-Cass in 1995 and are eligible for this year’s retirement, you will soon see your portion as a credit on your September electric bill.
The amount will be different for each member because your share is based on the amount of electricity you purchased from the Cooperative in 1995.
For some of our members, that means seeing a benefit today from a membership they held more than 30 years ago.
It’s Part of Being in a Co-op
Since Bowie-Cass is not-for-profit, our goal isn’t to generate profits for shareholders. It’s to provide reliable electric service, operate responsibly, and serve the people and communities that make up our Cooperative.
This September, $1.8 million going back to our members is a great reminder of what cooperative membership is all about.