A Return of Your Investment: Capital Credits Were Distributed in September
October 10, 2022
Paying your electric bill isn’t just payment for service—it’s an investment in your cooperative. As a member providing a share of our capital, you’re building equity in the co-op, and capital credits are your return of that investment.
Each year, any margins (revenues in excess of expenses) generated by Union Power are proportionally allocated to you as capital credits and are held in an account in your name. Those margins are then reinvested into the cooperative for capital expansion, system improvements, and ongoing operations and maintenance activities.
Once the cooperative has met its financial requirements, and after a period of time, capital credits are returned (paid) to you.
Based on the continued financial strength of the cooperative, the board of directors approved a capital credit retirement of approximately $3.7 million to be distributed in 2022. This year’s capital credit retirement was comprised of 100% of the unretired allocation balance from 2004, as well as 53% of the unretired allocation balance from 2005. This means that if you had service with us during the years of 2004 or 2005, you received a payment in September.
Those members who were eligible for a payment saw a credit on their September electric bill. Former members who moved off of our system should have received a check in the mail.
Capital credits are one of the tangible benefits of being a member of an electric co-op and a big part of what makes us different from other utilities. You can visit union-power.com to learn more about capital credits.