Capital Credits Defined

As a member of Callaway Electric Cooperative, you are part owner. Therefore, you have a share in the margins or capital credits remaining at the end of the year.

After all expenses of furnishing electricity to the membership have been satisfied, any money left over is set aside as capital credits. It is allocated to each member based on the amount of electricity that was used for the year.

The capital credits allocated to you can also be considered the cooperative's equity, or working capital. It allows the cooperative to secure loans for new construction and also maintain existing facilities and services.

Each year the Board of Directors reviews the financial status of the cooperative and determines if a portion of the capital credits can be returned to the membership. If a return is authorized it is mailed to eligible members in the form of a check, typically in September.

Any time the cooperative has capital credits to allocate, you will receive a notice of your portion of the allocation after the close of the fiscal year. These notices are typically mailed in March. They are not a bill and cannot be credited to your electric account.