Once again, Indian Electric Cooperative is putting money back into the pockets of members! The Board of Directors approved nearly $1 million in Capital Credit retirements from 1992-93 margins at the October meeting.
IEC has given back $11.4 million to members over the last three years.
One of the biggest benefits of being a member of a cooperative is that you aren’t just paying a bill to a company for a service. A portion of your payment to IEC for usage is an investment, returned to you when the co-op is financially able.
What are Capital Credits?
1. It starts when you pay your bill
IEC tracks how much electricity you use and pay for throughout the year. Each payment you make is your contribution to the day-to-day operating costs of your cooperative.
2. Recording and reporting
Like all companies, at the end of the year, we calculate our annual margin (profit). But because we are a cooperative, which is not-for-profit, we divide the margin proportionally by the amount of electricity each member uses throughout the year. Then we allocate margins to each membership. This is called Capital Credit allocation.
3. Where is the money?
The money, called Capital Credits, is invested in equipment, operations and the workforce needed to meet the current demand for electricity. It is your equity in the cooperative.
4. Do I ever receive this money?
You do! The process is called retirement. Each year, IEC's Board of Directors reviews company finances. When our financial condition permits, the board will retire (pay) Capital Credits to our members based on their allocated share. In 2023, Capital Credits retired are from 1992-93. So members who were on IEC lines in those years will see their share of margins returned as a credit on their bill. Former members will be mailed a check to the address we have on file. This is why it's important to update your mailing address even after you move off IEC lines.