The revenue that eventually becomes Capital Credits is accumulated and used for system maintenance. This helps to keep rates competitive by reducing the amount of funds that have to be borrowed by your cooperative.
Every year, you will receive a Capital Credits statement. The amount of Capital Credits on this statement is determined by the total revenue over expenses for the cooperative and your total billings for the year.
These Capital Credit refunds illustrate and emphasize one of the major differences between a member owned cooperative and an investor-owned power company or municipality.